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tv   Bloomberg Markets Americas  Bloomberg  November 15, 2019 1:30pm-2:00pm EST

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denigrated her diplomatic career on social media. the president criticized marie yovanovitch's work in somalia and wrote that ukrainian leader volodymyr zelensky spoke about her unfavorably. it hisnt trump called absolute right to appoint ambassadors. the house intelligence committee leader adam schiff asked the witness about the president wheat. >> it is very intimidating. >> it is designed to intimidate, is it not? >> i cannot speak to what the president was trying to do, but i think the effect is to be intimidating. mark: yovanovitch also said she asked the state department for a public statement of support while false stories were being spread about her work in ukraine, but the department official told her that would not happen because "the president may issue a tweet contradicting that." roger stone has been convicted of lying to congress,
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obstructing a congressional probes and witness tampering. the guilty verdict comes after deliberations began yesterday. the case against stone included evidence that president trump that president trump knew about wikileaks plans to release emails that were damaging to hillary clinton. prosecutors said stone live to congress to protect the president. he will remain free pending his sentencing in february. he faces 20 years in prison. able morales could face jail time for election fraud if he returns home. the ousted leader told the associated press in mexico that he is still president and claims to have won a fourth term in office. in pro football, myles garrett has been suspended indefinitely for his actions during and on field brawl last night. at the end of the game, he
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ripped the helmet off of steelers quarterback mason rudolph, and hit him with it. two others were given lesser suspensions and each team has been fined $250,000. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. >> live from bloomberg world headquarters in new york, i am vonnie wayne. amanda: i'm amanda lang in toronto. welcome to bloomberg markets. we are joined by our bloomberg and bnn bloomberg audiences. >> larry kudlow says the u.s. and china talk every day and it is down to the short stroke.
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the troubles are not ending for wework. the company is drawn scrutiny from the sec about whether the company violated financial rules in the run-up to its sale ipo. and let's three home buyers are finding global cities less welcoming. why london, vancouver, new york, and hong kong are losing cache with wealthy international buyers. the willow bay, want a trade war takes another turn. the trump administration signaling that negotiations with china are entering the final stages. larry kudlow told reporters we are coming down to the short strokes. and in communication with beijing every day. that does not mean another breakdown will not happen or be averted. tom orlik is with us with the latest. course feels
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hourly at this point. we know there are daily conversations, so when we talk about what could bring down, do we begin to feel that we are on firmer footing? tom: the signals coming out of the white house, both from larry kudlow, and from commerce , suggestswilbur ross we are closing in on a phase one deal. that is certainly how the markets are interpreting the remarks, u.s. equity markets touching fresh highs today. the important thing to keep in mind, as i'm sure you know, amanda, we have been here before, and not just once but multiple times. music looks mood positive for a phase one mini deal between china and the u.s., but as others have said, the devil is in the details. there is huge uncertainty still. we will have to wait to see if
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the two sides can get this over the line. vonnie: most people we speak with say a deal will get done eventually. what kind it is almost doesn't matter. but will it involve rollbacks? it feels like we will not get a deal if we do not get some rollbacks. tom: that is a key question. edew weeks ago, it looks like the phase one deal was china by more commodity imports from the u.s., the u.s. agreeing to not escalate tariffs. now the idea of the rollback of some of the u.s. tariffs is on the agenda. tomed like the u.s. agreed it, now it seems like they have not, or at least there is some uncertainty there. one thing to look at if we get a deal is how much substance is there there. is it just a repackaging of things that we all knew about,
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or is there incremental progress in terms of some of the tariffs being rolled back? vonnie: tom orlik, thank you. for more insight, we welcome william reinsch from washington. does it matter how long this goes on, is the relationship irreparably damaged? bill: it is probably irreparably damaged. the important thing that has happened in the u.s. is the public debate has shifted. you don't find many people defending china, you don't find many people arguing about constructive engagement or operation. the debate seems to be who can be tougher on china. in that sense, there is a lot of damage that's been done that will be difficult to repair. forget it is easy to because we have had some decent numbers, but damage continuing to be done by tariffs, damage
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that the president likes to portray as funds in the federal coffers. it is doing real harm to business. is that being lost in the rhetoric? bill: temporarily, if he imposes the september 15 tariffs, it will not be lost. that will cover a lot of consumer items and people will notice the adverse impact in a big way, much bigger than on the previous tariffs. you are right, it has been a little bit submerged. it is what they are arguing about with the chinese, the chinese want some of the tariffs lifted. the united states wants tougher enforcement provisions, specifically to have in writing an agreement that if the united states unilaterally decides the chinese are cheating, we can take action. that is the same thing we argued about last may. the chinese did not want to
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agree to it then, i don't think they will agree to it now. there are still issues on the table, despite what larry kudlow has to say. vonnie: i want to play some sound from a gala that ray dalio attended. i want your impression of what we should think when we think hear something like this. war,ere is a trade technology war, geopolitical war, and there could be capital wars. that is the nature of the environment. how that is approached will determine what our future is like. it thathow scary is somebody who is so responsible for capital flows, is so good at doing what he does, so vocal about it, that he thinks there could be capital wars? bill: i think he is right to be worried, particularly, i look at
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it from the standpoint of capital investment. there has been a significant decline in chinese outbound investment everywhere but particularly the united states. the reality is, this administration's policy to businesses has been, stay here, don't invest abroad, invest in the united states. not everybody pays attention to that, but it has a chilling encouraged it will the new buzzword, which is a decoupling of our two economies. amanda: how quickly do you think that might show up, how might it already be happening? we talk about supply chains shifting because of enlightened self-interest. bill: it is already happening anecdotally. this is sand leaking out of the bag. companies that have heavy
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capital investments in china now are not going to leave, they will service their chinese and asian market from there because there is no tariff issue. if there are supply chains involved, i think they're looking for alternative sources of supply, vietnam, thailand, probably malaysia. you will see that over time, i think, grow. amanda: good to have your thoughts, appreciate it. work's to montrose takes another turn. why regulators are taking another look at the companies actions ahead of its failed initial public offering. this is bloomberg. ♪
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amanda: this is bloomberg markets. i'm amanda lang in toronto. vonnie: i'm vonnie quinn in new york. time for the bloombergquint take. america is set for another big up all weekend. unfortunately, there is almost certain to be a number of those hits that make the highlight reel that sends players up to the hospital. a growing concern for players leagues that face lawsuits. chronic trauma can lead to aid to dinner to brain disease found in autopsy with people with a history of head injuries. a big issue for military veterans. years,last six participation in tackle football has fallen 19%, to 2.9 million. a study of u.s. high school athletes found girls soccer had the highest rate of concussions. girls basketball was second.
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all 50 states passed laws in the last decade in dealing with head injuries in youth sports. pro leagues for football, hockey, basketball, and hockey have short out there policies in the past years, but lawsuits could force more action. that is your bloomberg quick take. now onto a bloomberg school. exodus point capital management which launched last year with 8 billion in assets is hoping to collect more. obviously, this comes at a time when rival competitors are returning capital. what does this say about its strategy, where it things we are in the cycle? point raised more money than any launch last year, $1 billion. the idea is that even though they had not even put all that money to work, if people want to give them money, they will take it. they will try to raise another $2 billion next year.
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even though they have not deployed the $8 billion they have picked up, they want to deploy 2 billion more. what is the strategy they are proposing? have multi-manager, multi-strategy plan arms, and that can manage a lot of money. they have been trying to hire a lot of people. they have hired 400 people in the past year, and they already have 60 teams now. as manyt need to hire people as possible to deploy the capital. that is why they have not been able to put it all to work. amanda: obviously, they are going to market here. do we know what they are targeting for this raise, on top of what had been a record amount long ago -- not long ago? >> at least $2 billion. curious to know whether
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there is any market buzz about them raising that additional amount, having not deployed some of the capital they are sitting on. >> that will be interesting because their returns have lagged some of their peers, but some of their peers are also close to investment. it will be hard to tell whether they end up getting the next money or not. vonnie: the hedge fund has been deploying capital throughout the year. where and what are the successful strategy being deployed by managers? 400 employees is a huge amount. >> it is a lot but there are multiple teams, so each team has maybe four or five people working on them. mostly, they have been in fixed income, which is why the returns have not been as strong. they are working rapidly to build out their equity teams. that is where a lot of the performance has been this year. that is why they have liked a little bit. -- lagged a little bit.
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vonnie: thank you for the update. we will continue to follow this. now to another bloomberg school. wework drawn scrutiny from the sec about whether the company violated financial rules in the run-up to the failed ipo. that is according to people with knowledge of the matter. alan hewitt was part of the team that broke the story for bloomberg. she joins us from san francisco. i guess this must have been expected. do we know anymore about the details of what the sec is investigating? >> we don't know the details of what exactly is prompting this preliminary inquiry from the sec. we know it is from their enforcement division, that in has hired awork former head of the enforcement division who now works as an attorney. they have him on retainer.
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we also have sourcing that suggests there is a primary inquiry from the sec, but we don't know what exactly that could be focused on. amanda: in cases like this, we see the regulators following a rash of lawsuits. stand in termsrk of anybody that could claim harm , other than existing investors. has anybody put their hand up to say that we think there is a grievance here as well? ellen: not yet in terms of investor lawsuits. wework has been peppered with lawsuits from former employees. in fact, one from a few weeks ago from adam neumann's former chief of staff who claimed that she had been discriminate against for going on maternity leave, that adam neumann had called her maternity leave a vacation or retirement. they faced lawsuits before, a little bit different than what
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different than what you might expect leading up to an sec inquiry. given all the media attention on , it is somewhat expected , it is somewhat expected that the sec would be kicking the tires on a company like this. wework has a lot of attention on it, rumors and whispers about maybe there was something here that has gone wrong. it, rumors and whispers about maybe there was something here that has gone wrong. i think we understand that this is probably just part of the enforcement division doing their job. we don't know if it will lead to anything more formal, but we understand there is an inquiry in process. vonnie: remind us as well, being private does not necessarily shield you from sec violations or penalties. can you give us any president here?- precedent ellen: there are nose is a good example. face penaltiess from the sec for misleading
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investors in the process, even though the company was not public. this is something the sec pays attention to. people think that if you are private you can do what you want with your financial information but that is not always the case. we pay attention to when sec officials say they think they should be, as an organization, paying more attention to financial workings in the her. of course, it was the company's own perspectives that raised eyebrows, including accounting metrics that are unknown to any other business, as well as some strange jargon. should this have been caught before everything unraveled? ellen: if you look back at the draft s1 filings on the sec website, and intimate metric that wework used in his early documents was the term community of thed ebitda, which same means the profitability of an individual office location that wework uses.
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nobody has ever used that before. they ended up cutting it from the s1. you can see it in early versions, and that it dropped out around may or june, and does not make it into the final prospectus. it is clear they have spent some time trying to figure out how to present themselves the best way in the s1, but it may have been something that drew the attention of the sec. it was something that was closer looked at, kind of controversial. amanda: great to have your thoughts on this, ellen huet. coming up, wealthy house hunters are not looking to new york, london, or even vancouver. why the big apple could be losing its luster. this is bloomberg. ♪
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vonnie: luxury home buyers are finding it harder to say sold in some major cities. house hunters in london, new
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york, and vancouver are finding those cities to be hostile. for more on the trend, let's welcome craig giammona. why is this happening in all of these major cities? >> it feels like a product of all of the economic uncertainty. london, brexit in mansion taxes, and it's becoming harder to move the money out of some of these markets. in russia, it's more difficult to move the money out, boosting the price in moscow. the chinese are trying to keep the money in their country. you have the problems in hong kong. vancouver, new york, and london are down because it is more difficult to buy homes. all these governments have taken steps to go after these foreign wealthy buyers to generate more tax revenue. amanda: also to avoid distortions in the domestic market. there is so much global capital around. one thing that jumped out to me
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was this notion that there be developers that began projects predicated on a stronger market. are we going to see some real dislocation out there? craig: we are already seeing it in new york. these products get announced and it takes several years to build them. in new york, you are seeing a bunch of luxury condos that were announced in 2013, 2014, now coming online in a very different market for luxury real estate. that is a big thing. you announce a project, several years later, you build it, and things can change. amanda: we know real estate is a massive portion of most of our economic wealth. are we looking at data that starts to point to concerned, we need to worry about a slowdown, or just a cooling of what happened hot? craig: just a cooling of what had been very hot. we are talking about the upper crust, luxury buyers. global it to the
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economic uncertainty and how the flow of global capital around the world has changed when you think about things like brexit, what is going on in hong kong, efforts in new york to tax these people, so the interesting thing to me is how capital is moving around the world and how that has changed. amanda: thank you for that. appreciate it. if you missed any of the interviews that you see on the television, you can catch it on your bloomberg, the function is tv . from new york and toronto, this is bloomberg. ♪
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mark: i am mark crumpton with the first revenues. the trust investigation into google will expand beyond its focus on the advertising. bloomberg has learned a 48 state
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coalition welded into its operations in mobile software. the probe deepens as google is the subject of a competition investigation by the justice department. the leaders of russia, ukraine, germany, and france will need in paris, seeking a settlement for the conflict in eastern ukraine that has killed 13,000 people. troop withdrawals and prisoner exchanges will be among the points of negotiation. french president emmanuel macron's office announced the meeting today after months of efforts to get all sides to agree on top. a senior u.s. coalition commanders as the partnership with. kurdish forces remain strong. the associated press, despite an expanded offensive to areas under kurdish control. u.s. forces reportedly have completed their withdrawal from the border region where the partnership


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