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tv   Bloomberg Markets Americas  Bloomberg  August 28, 2018 10:00am-11:00am EDT

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>> we are going to be talking trade and whether canada will join the new u.s. mexico trade deal. -- let's get and to abigail doolittle. >> we are looking at the consumer confidence board -- index or consumer confidence, a leading indicator for the month of august coming coming in at 136 versus july, 127.4. , loss of positive rating their apparently the headlines around political uncertainty and trade not bothering the u.s. consumer relative to companies. that is a leading indicator. at to major averages we are looking for small gains -- looking at small gains. of all times highs for the s&p 500 and the nasdaq. investors continue to be
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enthusiastic. the trade deal between the u.s. and mexico yesterday. we have some retail movers. let's take a look at tiffany, up 2.7%. they put up a strong quarter, same-store sales up against the estimate. those shares being rewarded, best buy down 6.8%. their third-quarter earnings missed the mark, investors not liking that. take a look at dsw, up 40%. -- some of that might have to do with a 12% their shortage. coming in up 9.7% versus the estimate of up to percent. they raise the full-year view. lots of strength coming from the women's shoe line. let's take a look at the shares of out of it. this is a 2 -- alphabet. look at the drop we have today, down half a percent. this does come as president trump is accusing google of rigging search results only
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display negative stories about him, saying this is a very serious situation. it is hard to see how this could affect the bottom line, so perhaps the declines we are seeing may reverse. finally, one of the other big stories, the dollar down eight of the last nine days. this is a longer-term chart of the dollar index. forex analytics share this with us and bake spec to the dollar when it was strong to decline. we have that. ther periods of time with dollar has been extended above the 50 day moving average, very strong momentum, it has tended to consolidate. that has happened this time. the consolidation tends to be relatively brief. of weakness is certainly helping stocks and commodities but may be short-lived. an interesting chart to take a look at, remain. romaine: thank you, abigail. the u.s. and mexico are pursuing a new trade deal.
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the pressure is on canvas to ton the deal soon -- canada join the deal soon or be left out. steve mnuchin hopes canada joins the deal. >> this is a complicated agreement. there are lots of things in it that are new. i would think that canada would be very much on board with stronger intellectual property, stronger protections, modernizing the agreement. i'm hopeful the issues of canada can be resolved quickly. romaine: canada's board is due in washington today for talks. joining us from washington is u.s. policy editor sarah mcgregor. i'm going to start out, what is the current status of nafta and what is likely to be the new look of a nafta only get through all of this? >> what we heard yesterday from the trump administration is that the deal they reached with mexico very much resolved one of the top issues, the auto rules of origin. the u.s. had demanded a much
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higher content requirement for vehicles to get duty-free access, it looks like they are willing to compromise. they got higher wages and there, 40 to 45% of a vehicle needs to come from $16 an hour or higher wages which was to alleviate u.s. concerns about low-cost production, mexico taking away u.s. jobs. canada is the real outlier. we have the foreign minister coming in. we will have to see if this deal is going to work for them and what they might ask for in order to join it themselves. >> when looking at what was the deal there, at least the handshake agreement that was struck with mexico, what exactly is different in terms of the core fundamentals of that deal versus what we already had in nafta? >> autos was the big change. practically i think everyone is trying to figure out how it will affect their supply chain. i am sure there is a lot of companies crunching the numbers right now to figure out how they can work within the numbers and
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not disrupt business. we also had changes which will be a big one to canada on the investor -- settlements. aixa: agreed to weaken or soft thishis chapter -- soften chapter 19 which settles anti-dumping disputes. justin trudeau has said he wants to keep that. that will be something we will look at. vonnie: does canada have leverage at all? the canadian dollar is stronger today. the market thinks canada will join. what leverage does canada have over the u.s.? are -- they are major trading partners and allies. we have seen tension between trump and trudeau coming out of the g7 in quebec city in june. there are going to be some tensions that emerged when nafta was first announced of a revamped, it was only supposed to be tweaked with canada and it looks like the tables have turned and canada is on the back
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foot. this is still a three-way deal and there is a lot of debate over whether the -- whether trump has the authority to move ahead with this deal with mexico. there is still a lot of questions about whether the u.s. can move forward without canada. canada's opinion is that it cannot so i think it will use that as a leverage point. vonnie: if there is a deal and canada seems shortchanged because it was forced into it, what are the ramifications in terms of other things the u.s. and canada agreed on at whopper radon? -- cooperate on? >> trump said with canada it is this auto terrorist probe on national -- auto tar riff pro. trump dangled that as a threat. saying if canada does not agree to nafta there is this auto import probe and the possibility of tariffs.
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steel and aluminum tariffs have hit canada, a major seller of all of those things to the u.s.. that will be hanging over talks. it has had an impact on the relationship and sentiment in canada towards the u.s. government and trade. that was bloomberg's sarah mcgregor reporting from washington. thank you. vonnie: i investors digest the latest about on global trade. joining us now is kathy fisher at alliancebernstein. what are the main concerns of your clients right now, is it old trade or other thing starting to prevent? -- other things starting to creep in? >> trade is the largest thing we are worried about that also certainly inflation because tariffs can raise the prices on goods. the u.s. market has gotten much more attractive relative to other markets'recent quarters
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but that is causing some concern. the u.s. getting too expensive relative to other markets. i want to put something a little provocative on the table which is that we are finding that clients with a long-term horizon are looking more seriously at investing particularly in a-shares. the a share market began to open up to foreign investors. we have a fund that is combining a-shares and offshore finding shares as well. when you think about all the concerns people have about china, the market has become cheap. chinese stocks are trending at about 10 times earnings. we think that captures a great deal of the bad news, the risk of people -- the risk people think they see in the chinese environment. when you think about all that is going on in the local economy in china, a focus on environmental theovement, a focus on consumer in things like health care, there are a lot of companies that are well-positioned for the domestic
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growth in china but it has nothing to do with trade. romaine: did that trend start before the recent trade flareups? is there no concern that what is going on between the u.s. and china could potentially change the economic picture there? >> our interested start in the chinese a share market before the trade wars. we want to see what kind of impact that will have. this is something for long-term investors. we know the volatility of a short run can be quite high. given how much the market has already sold off and given that the local market still have a lot of good growth potential because the government is indeed beginning to focus more on those domestic industries we think there is a real opportunity for patient and long-term investors. particulare there industries are sectors within china that clients are gravitating towards? >> as an investor we are focusing on health care, consumer services, consumer products.
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you look at the offshore chinese market is very much dominated by the big tech names, alibaba, and tetra. local markets where you can pick up more companies that are serving the local chinese consumer. we think there is a lot more opportunity there. vonnie: outside of china, where else are you focused? >> all i was saying about china is, when you look at emerging-market china has become the dominant weight in the emerging market benchmark. 30% of theut emerging market benchmark if the a-shares move into the index it will be a 42% weight. we always do recommend geographic diversification. certainly people have wanted to be u.s. only given how strong the u.s. has been. we really do continue to remind that having brought diversification is critical. war or trade discussions become more favorable as we have seen in the
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past two days, you can see what that does to non-us markets. vonnie: geographic diversity on the table, what other emerging markets? we have seen so many warnings about brazil. a mini crisis which could play out in turkey. >> the thing about emerging markets is that every country is different and it is clear that turkey's problems are very idiosyncratic as our argentina's and brazil's. we'll have the contagion risk we had an prior cycles because each country has become much more unique in how it is managed, and what it does. looking at the companies in those emerging markets, whether it is in korea, india, russia, they are looking at the company's, you are not buying the countries. that is where asset managers come in. vonnie: so you don't buy the index for example. >> we are looking at active management to figure out which companies are well sufficient
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independent of what is happening with trade talks and other factors. toaine: it is interesting use the word unique because for the last few years we were sold on the idea of global synchronized growth and that was a big part of the gain built into the market. is the market going to handle a global economy that is more fractured, where you have a lot more divergence between the individual countries and markets? >> one thing to remember, even though it is not the global synchronistic growth we were talking about a year or two ago, all the oec countries will still have positive growth this year. it is not as robust as it was but it is still positive. the country that are having bigger problems are not large in the global economy. , brazilertainly isn't is bigger but their problems are better understood and more easily fixable. there are lots of issues to think about here. the clarity that each of the emerging markets has its own unique characteristics, that is something i think people are understanding more and more. romaine: when you look at risk,
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taking trade out of the equation, are there other risks you are seeing that you are preparing clients for or guarding against? >> yes. let me step back and say what we look ahead we simply don't see a recession in the near term. the u.s. economy is very strong. other non-us economies are still in positive territory. unless there is a really significant trade war brewing, which right now, who knows, but it doesn't look that bad, it is hard to see anything a seller in the past towards a recession. positives we are in a gross territory and companies continue to do a very good job with earnings it is hard to see something terrible happening. we do want people to expect more volatility. there is no question with all the things going on out a you should expect volatility. from the active management in emerging markets, what else are you recommending for clients? >> when you think about public markets you have stocks and bonds, clearly investing in
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diversifiers, alternatives of different sorts, whether it is hedge funds, private credit, private equity, lots of different things to offset the risk of stocks and bonds. with rates rising we may be in a situation where stocks and bonds work together more than they have historically so you want to have other diversifiers. vonnie: kathy fisher, head of wealth and investment strategies at alliancebernstein come our thanks to you. we are sticking with trade. going to be sticking with mexico's economy minister. this is bloomberg.
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vonnie: live from new york i am
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vonnie quinn. romaine: i am romaine bostick. vonnie: let's check in on bloomberg first word news. >> president trump is accusing google of rigging search results against them. in a tweet the president said only negative stories about him come up in a google search for it he called it a very serious -- search. he called it a very serious situation which will be addressed. larry kudlow says the white house is looking into the matter. north korea has warned the u.s. that denuclearization talks are at risk again and may follow far. that warning came in a letter to after he was scheduled for pyongyang on friday. pyongyang canceled the trip. that paul report manafort was hoping for a deal before the former trump campaign chairman's second trial next month. the wall street journal says his lawyer help talk with prosecutors but could not settle the charges. manafort was convicted of bank
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fraud last week. in the u.k., theresa may is signaling a no deal brexit is in the end of the world. she told reporters on a plane heading to africa that the u.k. can still make a successful brexit if the european union will have a deal. dealp hammond said a no brexit woodcut economic output and add to government borrowing. news, 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts. vonnie: thank you. president trump goes after google. he said the company rigs results to show negative stories about him. this is bloomberg. ♪
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vonnie: live from new york i am vonnie quinn. romaine: i am romaine bostick and this is bloomberg markets. taking aim at google in a tweet
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today, president trump accuses operating search results against them. the president says the search only displays negative stories about them. white house adviser larry kudlow says the administration is looking into the company. let's bring in bloomberg opinion columnist alex webb live from our london bureau. talk to me about what the complaint is specifically against google as well as some of these other social media companies. president trump is suggesting they filter out results which are positive. google has been through some of this process before where there was some concern about the nature of the stories being displayed. -- in respective president trump. when there was a terrorist attack results service from unverified sources and news outlets that are not well known.
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google placed quite strict controls on what news was or was not displayed based upon what it deemed trustworthy media. , you canver reason guess yourself why donald trump might be complaining about that. one thing that might be problematic is it doesn't differentiate between opinion and news. that is something that is hard to do in modern media. somene: when i think about of the controversy we have had over these social media sites, they seem to be squeezed on both sides. we have conservatives that say they are being filtered out, you have liberal saying there is not theyh to filter out what seem to be antagonistic voices. i wonder how these social media companies became the arbiters of what is right or wrong to say and is there on a path for them to get out of being a middleman? >> the problem a missed all of this is that it is automated. it is how these companies have scaled so rapidly and so
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profitably, they don't have human editors deciding what is or is not trustworthy news. efficiently,g it they have human editors running apple news deciding which stories will be display. this is how these platforms make their money, serving as a middleman between people putting an information and a consumer or customer on the other end. clearlywith that affect their investment game but it might even be less preferable if there are active human editors involved telling people what is valid news, that can be a source of complaint. ultimately there are not people stories whichring might be in donald trump's favor. it is done by an automated algorithm which will see what other people are reading and pull that to the top of the results. vonnie: how transparent are
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these companies about how these algorithms are made? it is slightly different than talking about fake news, this is the order of news. saw at least the european union had told search engines what they could and could not do about ordering news. asthis is an ordering it much as making a decision as what should be put here. news has to be, the nature of a search engine is such that it will automatically display the results it deems the most useful for the terms you enter. there is going to be a hierarchy of search results, how much do we know about how that hierarchy decides those results? >> we don't at all really. google givingd be away a secret source, exactly the code for how they come up with search results. it is not something they would be willing to diebold.
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the risk would be if they were to do so it would be easier to game it. whichg results to the top -- vonnie: the white house has said it is looking into this, those were the words that larry kudlow used earlier, what can it do? ask google politely to tell us about the other rhythm? -- algorithm? >> it can only exert political pressure by being vocal about it in the public forum. from a regulatory perspective, i don't think the president has regulatory power on that front. he can try to have legislation toroduced or he can suggest regulatory authorities that maybe they should have a look at something, but they have no obligation to follow him. it seems like there will be a lot of bluster with the huge amount of opinion. word are just receiving
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from google on all of this. that google has responded to the president's tweet in a statement to a cnn reporter and said this. when users type queries into the search bar our goal is to have them receive the most relevant answers in a matter of seconds. search is not used to set a political agenda and we don't buy is results towards any political ideology. i guess, the most relevant answer is the answer to that question, how that is decided we will have to figure out. this is bloomberg. ♪
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vonnie: we have some breaking news on google. google's trump saying top news results will be addressed. we have news from google itself,
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saying that there is no bias and i political agenda is not used to set the results of the search. this is from a cnn reporter and i'm going to quote now. " when users type queries into the google search bar our goal is to make sure they received the most relevant answer in a matter of seconds. search is not used to set a political agenda. show hundreds of improvements to our algorithm to ensure they serve high-quality content and response to user's queries. we never rank search results based on political sentiment." that was a response to a cnn reporter. president trump saying google's trump's results will be addressed. romaine: let's check in with bloomberg first word news. that white house says president trump and canada's prime minister agreed to continue productive conversation on trade. they spoke after the president
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announced a new trade agreement with mexico that would replace nafta. mr. trump called on canada to join the deal soon or risk being left out. itsu.s. is defending position of sanctions against iran as a legal and justified national security adviser. a state department pfizer urged judges at the international court of justice to reject iran's request to suspend the sanctions. germany is examining options for helping turkey avoided and economic meltdown. a government official says direct financial aid is not one of them. be discussed when german and turkish economic and finance ministers meet next month. turkey already has -- housing demand in the u.s. appears to be cooling in states with higher mortgage rates. home prices in 20 cities rose in june as the slowest month for two years. prices increased just 1/10 of 1%.
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mortgage rates are near a seven-year high. global news more than 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in 120 companies. this is bloomberg. vonnie: i'm going to recap that news. bloomberg has learned from a google spokesperson that it does not biased search results. togle is responding president donald trump and it says it's search is not used to a statement released to bloomberg. >> google share is down about .5. vonnie: exactly. as a part of your big stories ,hese days from brexit to trade bloomberg's caroline connan is which has a 750,000 member companies. carolyn is a special guest. >> i am very happy to be joined by dieter kempf, the president
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of the federation of german industries representing 100,000 german companies. the onou for bloomberg tv today. >> banks for the patient. -- thanks for the invitation. today you more concerned after the summer than you were before the summer that trade tensions and the impact this could have on germany? >> not more than at the beginning of the summer because i think the visit of president with the president of the united states has settled new ground or at least given me the hope that we will be able to reach a compromise on the most important and most crucial issues. >> do you think germany and france will have zero tariffs? >> that would be an ideal
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situation anyhow. being a strong believer in exchangeade and global , not just goods but services, i think that would have been -- would be a good idea. what we need is an agreement on the basis of rules and regulations of the wto, which is not just dealing with trade of goods and straight of services, but also cultural goods for example. >> this is obviously something the french president macron also wants to see. this is also something that german chancellor, angela merkel has been talking about. europe should be more independent from the united states in order to avoid these kinds of impact from trade decisions unilaterally from the u.s.? >> i think these are two different things.
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what europe needs is a strong europe and a strong european union. in therance and germany lead to do that and redefine a new european union. i am still a strong believer on transatlantic connections. careful when we , we willrds saying just concentrate on the current trump administration. the trump administration makes quite a lot of things a bit more difficult than they used to be. that within the terms of the trump administration that could get better, we have convincing arguments even for the current u.s. side. a contingency plan in case the donald trump changes his mind and does include some tariffs on automakers?
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this would have a huge impact on the german car industry. >> of course. on cars wouldfs be a crucial thing for the moment. we shouldn't forget that the biggest car exporting company in the u.s. is a german brand name, bmw. they are exporting more cars than any other u.s. brand. i think global trade is a bit more difficult than just imposing tariffs on one piece of like vehicles or light trucks. the duty burden on light trucks from the american side is much higher than the european side. includingre others turkey, according to the wall
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street journal, the german government is thinking about providing financial assistance to turkey. the you agree that turkey should crisis could spill over and destabilize germany and the whole region? it's crisiselieve in turkey could destabilize the european union. i am a strong believer and i think it is pretty similar to what my crown -- president macron expressed, we should think about helping the turkish society in the trouble they are. there are some conditions. government turkish put on quite a lot of positive efforts. about 10 years ago. going back to democracy. that is kind of a precondition for help from the european side. >> so germany should stand ready
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to provide these financial assistance to turkey? >> not just germany alone but us in the european union. turkey is still an important partner. as an eastern border of europe. >> the french finance minister is coming here tomorrow to speak finance german minister. they are trying to take the lead in terms of eurozone reform and also working together on financing solutions to sidestep u.s. sanctions against countries like iran. we can actually fight the u.s. sanctions? >> the important thing is that they meet together. here where theet french industry has a very
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important meeting. that is really important to do. with the chairman french access being able to get a bypass to the u.s. sanctions is difficult to say. europe to tellg the trump administration that we are not without any idea about reactivity. we want to globalized world with free trade. that is something we should go back to with our u.s. partners. there will be so much to talk about but i think we have to go. presidentso much, the of the federation of german industries. vonnie.france, vonnie: back to business after
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nearly a month up will they are one thing, tesla hits the brakes on plans to go private. investors are refocusing on things like production and free cash flow. this is bloomberg. ♪
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>> live from new york i am vonnie quinn. romaine: i am romaine bostick. tweets taking a backseat over at tesla as investors put the go private saga in their rearview. attention now turning to the model three production. joining us with more is bloomberg auto reporter craig for dell. are we really putting this all
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behind us? is the focus really on the production of model threes, where does production stand? >> sec inquiries and the investor lawsuits are nowhere near past us, but the attention will be turning back to some familiar subjects. the model three and how that interrelates with tesla's caste position which remains precarious in the grand scheme of things. the bloomberg model three tracker that was built earlier this year by tom randall, a reporter here, does show that over the last few weeks somewhere in the range of 4000 to 6000 model threes are being built a week. that shows that the momentum that tesla built up at the end of june when it crossed that 5000 threshold that it targeted for so long and struggled to hit , they have been able to maintain some semblance of momentum which is very
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significant. romaine: how many of those cars are getting into the hands of customers? >> that is important and one challenge with this tracker is that it relies on registration s which can be submitted by the company in big batches. there are concerns with short-sellers who were almost excessive with the way they have tracked the launch of this car. and allphotos on reddit over the place of cars parked and lots outside of the factory. of those carsay getting into the hands of consumers but i would caution against reading into all the attention here. you can go to any plant in the country, drive-by g.m.'s flint assembly plant and you would see a giant parking lot full of chevy silverado pickups waiting for delivery. not unusual. vonnie: are people generally happy with model threes?
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>> it has been a bit of a next picture. is similar to what we have seen with model asked and model x -- model s and model x. early buyers are fervent fans of the company and want to support the brand. have serious issues with the cars, there have been reports of bumpers falling off or black interior door on one side and white on the other side, that is problematic and with take off a lot of car customers. so many people are huge fans of tesla. onnie: the longer this goes the less tesla is a competitor in this space. other companies are getting it together. how long does it take to fix the production line? >> that is a key question. once you get past the diehard fans of tesla and into more normal consumers, people who fan't necessarily elon boys, they are definitely going
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to be tougher to please and less accepting of some of these embarrassing issues that you are seeing with early bills. vehicles,our to 6000 is that enough to get them over the hump? they are still running a significant deficit, right? >> you have to see for thousand to 6000 sustained over the course of the quarter and for them to be in the range of 50,000 or 55,000 they said they would be producing in this quarter to remain cash flow positive and remain -- they have to pull out a lot of leverage. vonnie: let's get a quick check of the markets. about an hour and 15 minutes into the session. can see we made highs, the dow is up 26 102. the s&p 500 is up a 10th of a percent. the best performer up 10%. rise but they did .2 -- best buy down 7%.
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a quick look at the dollar index, at 9458, weaker by 2/10 of 1%. we do have a strengthening canadian dollar among some other currencies. this is bloomberg. ♪
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>> live from new york i am vonnie quinn. romaine: i am romaine bostick this is bloomberg markets. vonnie: google is saying their search is not used to set a political agenda, this after the president criticized the company. let's bring in our opinion columnist rate google saying that alabama sums -- algorithms give you the most relevant results. what does that mean, what is relevant to one person is not necessarily to the other person. >> what the president is responding to is something that is hard to address, the concern by the president and his allies that news sources like nbc news or cnn are a legitimate news
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outlets or less believable news outlets. as the president and his allies believe that they are going to see claims of bias in whatever news google turns up from those news outlets. vonnie: what can google do? clearly it is feeling a need to respond. the white house says it is looking into it. have askedgulators them to be more transparent about certain things. is there anything else that can be done? will we see the nuts and balls of how these results are arranged? >> there is a germ of truth to what the president is saying. the algorithms of facebook and other companies are largely black boxes. we don't know why these links get surfaced over those other links. the companies have not been transparent about how the computer systems order news and information and that has led to calls most recently by the right
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that they cycle conservative outlets. i can understand why there is that widespread belief. romaine: i know that silicon valley loves these algorithms. -- without rhythms i feel like you are trying to do find something that is not clearly defined. -- with algorithms i feel like you are trying to define something that is not clearly defined. are these companies just sort of falling into this track where they are trying to define human sentiment which can't really be defined? >> what you have seen with google and facebook they have been more reluctant to make editorial decisions about what gets serviced high up either in the facebook newsfeed or in google search results or youtube search results. a lot of these decisions are squishy news judgments. they are falling a little bit into this trap of making decisions about what is
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legitimate and what is not legitimate. candacethis -- >> escalate and hurt google? -- can this escalate and hurt google? >> you have seen internet executives getting called before congress, they have had to spend time and resources responding to these claims of cycling conservative viewpoints and that is harmful to business. an am sure there will be opinion piece on this. it is time for futures in focus. but dollar dipping to its lowest point in months. tim, talk to us about this a dip for the dollar, you must have anticipated this. i think the job owning from the administration, the city's economic surprise index has been negative for the u.s., germany
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had a nice higher-than-expected figure. i think it came at a very timely point, this dollar weakness. for china and the em currencies, namely turkey. it is a pullback from the highs. office it hasok been pretty much down. we're barely halfway from the decline. i am a little surprised, i would've expected the dollar to be stronger. i also think the market is a dovish on the fed going forward and we have the italian budget in september. the pullback in the dollar index, using it as a proxy, 9250 is a good support level. vonnie: talk to us about the treasury market. you think the market might be discounting some dovishness that will be there. >> from the job owning and the jawson hole tax money --
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boning and the jackson hole, the fed is going to get back to neutral. with that, three more rate hikes probably coming for sure. i wouldn't be so easy to dismiss the fed's rate hike, they are not hawkish, they are accommodative because we have a negative real funds rate. then we start talking about the impact of the yield curve and what they do next. i think the straight path just clearly towards -- is clearly towards neutral. >> our thanks to tim mulholland. buy is the latest retailer to be punished by investors even as quarterly results outpaced projections. shares are calling the most in a year as growth looks to be cooling off. joining us with more is taylor riggs with our stock of the hour. i am surprised best buy is still around. their current sales never matter, it is always about future growth and expectations. they are still here and in many
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cases on the call they were seeing some good things. analysts are having a hard time justifying the evaluation at least today. growth,l about future seeing some earnings per share coming in at 79 or $.84 per quarter. they really wanted $.91. a lot of this comes down to profitability. they are ticking on amazon so a lot of what they are trying to do to get back some of the market share they want is to create a bigger support tech team on the ground. for an annual fee you can go in and get gadgets fixed no matter where you bought it. this is weighing on profitability going forward. a lot of it comes down to same-store sales, that is declining in the future, to an a half and three and a half percent. second quarter sales this -- aboute: shares are down 7%, looks like they got weaker as the day went on. what happened on the conference call? >> there wasn't a lot said that
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reassured analysts. closuresed about store that hurt revenue and the ceo only aabout tariffs, marginal effect and they are in conflict communication with the u.s. administration to work on tariffs on electronics and consumer sentiment are the big ones. romaine: that is taylor riggs with our stock of the hour. vonnie: let's check on markets. i want to have a quick look at the turkish lira. it is weaker by 2%. there was a report in the wall street journal earlier that germany was considering offering turkey financial aid. that has not materialized into much so far. this is bloomberg. ♪
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vonnie: there are 30 minutes left in the trading day in europe. from bloomberg's world headquarters in new york, i'm vonnie quinn. romaine: and i'm romaine bostic.
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this is the european close on "bloomberg markets." ♪ vonnie: here are the top stories from around the world. u.k. prime minister teresa mays suggests the failure to reach a deal may not be the end of the world. talking trade. as the u.s. announces a new deal with mexico, we get the latest from mexico's economy minister. an exclusive interview. and u.s. stocks are hitting new highs as investors react to the trade deal announced by u.s. and mexico. now it is 19 minutes into the trading day in the united states. so let's get to abigail doolittle. >> we are looking at very, very small gains for the major averages. the s&p,


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