david: and i am david gura. ere inside the new york headquarters of "bloomberg businessweek." david: why tech companies are on a hiring spree for economists. lisa: we will look at materials of the future. david: and the first american manufacturing factory in cuba. lisa: all that ahead on "bloomberg businessweek." ♪ lisa: we are here with the editor of "bloomberg businessweek," ellen pollock. there are so many must reads in this issue. in technology you asked a question whether the pentagon can really learn to be more flexible. can you talk to us a little bit about what that means? ellen: they opened an innovation office in silicon valley with the hope that they can learn about silicon valley and partner with startups and other companies on a variety of projects. the idea was they would develop the contracts and work together. and it would move things along. david: sounds so easy. ellen: it sounds so easy, but whenever you work with government, not everything is easy. lisa: really? ellen: it turned out getting th

i am david gura. vonnie: and i am vonnie quinn. alkedhael froman, about all things tpp as well as china and what a >> it vote would mean for local trade negotiations. obviously, it is up to the british people to decide, but we think a strong and unified eu is in everyone's interests. in terms of a unified view, how are they focused and in gauging? provide strong voice when it comes to trade negotiations when it comes to a larger community, and the concept of >> it would be a law of negotiation, both with the u.k. relationship with the west -- rest of the eu and others. something that, but it's your job if it goes that way, if the u.k. leaves the eu? the u.k. is the second largest economy in europe. it is generally very open and pro trade as an economy, and it could complicate our negotiations, but we will have to wait and see what happens. david: one person is making that case on capitol hill. congress is in session for a few days more, and then they leave in august and come back in september. how are you making that case to lawmake

david: and i am david gura. we are inside the magazine's headquarters in new york. this addition, the real-life consequences of takata's recall. david: canada's fire from hell. all of that up ahead on "bloomberg businessweek." ♪ david: here is ellen, our editor-in-chief at "bloomberg businessweek." let's start with the opening remarks section. a lot of people who do not like donald trump have analogized him to fascists of old. and you have someone taking that argument apart this week. ellen: yes, we are saying he is less like mussolini than the berlusconi. david: former prime minister of italy. ellen: yes. over the last 10 years, democracy has waned all over the world after it being on the upswing. if you look at freedoms, freedom is on the downswing as well. more and more, you see leaders describe him as having a blow torch manner. but leaders like trump who are a little bit more in that mold coming to the fore. david: using the media in the way that berlusconi did. ellen: right. right. and we talk about thailand and turkey, where you have leaders that maybe have be

carol massar and david gura.can find us on the radio on sirius xm channel 119 and a.m. 1130 in new york and a.m. 1200 and boston, sm 99.1 in washington, d c and a.m. 960 in the bay area. a look at the century old rivalry between mercedes-benz and bmw. here's reporter sam grobart. sam: we have a century-old rivalry. the two competitors are mercedes-benz and bmw. this is the year where bmw is actually celebrating its 100th anniversary. so, that is 100 years of two of the top german automakers going toe to toe and always trying to outdo each other in the luxury car market. sheelah: they have been tracking one another in terms of their developments. what aspect have the companies had on one another? has it been motivating? sam: it's a competition that has benefited all of us because luxuryng about carmakers, is they are the ones that often pioneering a lot of ultimatelyogies that filter down to the mainstream. that is important when it comes to safety systems. the first antilock brakes were on a mercedes. bmw pushed

david: i am david gura. ie: we will speak about the biggest story of the day, the s&p cutting the u.k.'s top credit writing -- rating by two notches. david: from aaa to aa. matt, you are in london. talk about the ramifications of how that ripples out in the united kingdom. matt: as mark barton told us from westminster, it was not unexpected, but the ramifications of course could be large. managers onlyund allowed to own aaa debt forced to sell because of that. let's talk right now to s&p's chief sovereign ratings officer, mauritz cramer in frankfurt. he joins us first on boomer television following the downgrade. thank you for your time. let me ask you why you decided to go two notches here, not just one. is this, in your view, such a serious matter that it could go further? mauritz: good evening. yes, indeed. we think this is a major event that has just occurred, and if -- havefollowed what followed what we have been saying over the last months and quarters, you will know that we and other people expected th

david: and i am david gura. carol: the real-life consequences of takata's recall. david: canada's fire from hell. all of that up ahead on "bloomberg businessweek." , our: here is ellen editor-in-chief at "bloomberg businessweek." a lot of people who do not like donald trump have analogized him to fascists of old. ellen: yes, we are saying he is less like mussolini than the former prime minister of italy. over the last 10 years, democracy has waned all over the world after it being on the upswing. if you look at freedoms, freedom is on the downswing as well. more and more, you see leaders describe him as having a blow torch manner. leaders like trump, coming to the fore. david: using the media in the way that berlusconi did. ellen: right. we talk about thailand and turkey, where you have leaders who have been elected and act like -- david: mike autocratic, yeah. say, democracy has not made the situation that much better, so maybe they will try something different. ellen: exactly. the connection between democracy and growth, it feels like it is breaking down, even if

david: i'm david gura with vonnie quinn. some perspective on the political market followed, i'm joined by william janeway, a longtime venture capitalists. last week carmen reinhart spoke about de-globalization as a phenomenon. i wonder if you are seeing evidence of that. extent to which the free movement of people and capital has reached possibly an unsustainable limit. first was evident in 2008 when the subprime housing problem in the u.s. triggered the biggest global financial crisis since 1931. now the consequence of upheavals inom the the middle east but also more broadly, a recognition of the potential for free movement. and people have also clearly contributed not just to political tension and stress in the u.k. but across europe and even here in the u.s., where as you know, net migration from mexico has been zero in recent years. as many mexicans have been leaving as have been coming in. immigration has been made an issue in the u.s. these stresses are clearly and expressed politically and they spill over into the fin

in hong kong. >> welcome to bloomberg markets. ♪ >> from bloomberg's world .eadquarters, i am david gurad i'm vonnie quinn. : and i am vonnie quinn. the biggest u.s. airlines got burned on oil prices. they missed their chance to lock in the cheapest energy costs in years. david: regaining control of viacom. who is running the company? vonnie: we are one hour to the close of trading. >> we're talking about the s&p of 1%.t losing down 2/10 the worst performer has seen the nasdaq 8/10

from world headquarters in new york, i am david gura. vonnie: and i vonnie quinn. david: u.k. vote is going to the polls to cast their votes on eu membership. we will be following all the action throughout the day, special coverage. vonnie: warning signs from the fed. 2% gdp growth. it appears to be speaking the market. congressional democrats hold a sit-in to demand gun control legislation, and across the street, the supreme or devotes a for affirmative action and against president obama's immigration laws. markets close in two hours. let's get the latest from remy. remy: stocks are up, and the pound is also up. u.k. bans as from talking further about the referendum, that this is a snapshot of what the markets look like. .9% of for the dow, as well as the s&p 500. the nasdaq up the most, 1.1%. let's look at what is happening with the s&p over the course of the day so far. we are basically trading within a fairly narrow band, about 20 points or so. 2103 right here, about 27 points away from a record high, basically flying high. let's look in my bloomberg with the s&p 10 sector

mark: david gura in beijing. coming up, we are going to be speaking budget, banks, bonds, with the poor and it -- portugal finance minister, mario centeno. ♪ vonnie: live from london and new york, i'm vonnie quinn. mark: i am mark barton. this is the european close on bloomberg television. portugal is the only bond market to lose money in the euro region. that is according to the bloomberg world bond indices. the yields have risen since october election to spread with greece, whose bonds do not qualify for the ecb's bond buying program. they have been narrowing to qe lows. vonnie: joining us is mario centeno. obviously said is true. of portugal and greece are narrowing. do you look for more relief from europe? mario: that is not in our plan. we are very much focused on a competition that targets we had for a fiscal deficit for this year. we presented a very demanding but ambitious stability program. the diamond trends we saw in 2014, we think that is the way to go and we will be very strict in our execution in te

david: i am david gura. you can also find us on the radio.ction, white tech companies are on a hiring spree for economists. lisa: we spoke to patrick clark. patrick: if you are an economist and want to learn about the world, a tech company is a great place to go. david: what is the demand like 40 economists? it is often not just one guy on board. patrick: amazon did not tell me how many they have on staff but i heard anywhere from 60 to 80 now from friends who have worked there or have been interviewed, and they have another 30 some jobs posted. perspective, ao was cause to believe they might have a big bank like wells fargo. according to the national association for business economists, 20 to 25 is a big number for a big team so amazon is triple or quadruple. lisa: i understand from the economist point of view, they get more money, a trove of behavioral economic data they can derive theories from. from the company standpoint, what are they looking for? better add placement? a better way to target potential customers? patrick: it could be any

i am david gura.rtin scholz with his reaction to this historic day. ♪ jonathan: this is bloomberg." joining us now is jacob kirkegaard. rates have you with us on the program. us onat to have you with the program. the conversation is what is next . i want you to put that in some context for us. his next even a conversation worth having? jacob: no. i do not believe it is. we have so many floating variables at the moment. we just heard that the scottish nationalist party is going to onk another referendum scottish independence. we had the resignation of the prime minister. we are likely to see the ouster of the leader of the british labour party. what point theat u.k. government will launch the article 50 process to actually leave the european union. we may have an early election in the u.k. we still do not know what the rest of the eu will do. guy: should this be negotiated quickly or slowly? judging by political reaction, the u.k. seems to want to go for the slow approach. we have already heard from an

david: from bloomberg world headquarters in new york, i'm david gura. vonnie: i'm vonnie quinn. oking at a live shot of hillary clinton. she speaking on the economy. if you want to watch the speech, go to live go on the bloomberg. david: let's head to the markets desk where ramy inocencio is standing by. ramy: i'm looking at gas and oil prices off the latest data for weekly inventories. let's take a look at what is happening with wti crude. we hit our session lows in just the past half hour or 20 minutes, but up slightly off of that, 1.5%. the reason for these slide that we saw was new u.s. supply data 900 out seeing a drop of 17,000 barrels. the forecast was for 1.5 million barrels. the reason for this was a jump in exports, which rose to its highest level since december 2012. i want to show you what is happening with the change in crude oil inventories through october 2015 all the way through to today. for the past five weeks in a row, this has been a weekly fall, but the most recent weekly fall is the most -- is the smallest in the past five weeks. natural gas also falling, se

my colleague david gura sat down with ambassador susan rice for an exclusive interview. began by asking her about the potential national security risks that could stem from this historic decision. susan rice: we respect the decision of the british people. and this is not going to change fundamentally the special relationship between the united states and britain which has endured historically for generations and generations. nor will it change the nature of our relationship, the united states' relationship, which is a -- with the european union, which is a critical economic and security partner for the united states. so we have every interest in supporting the european union as -- and britain as they work to affect an orderly process of separation. we have every interest obviously also in maintaining the strong security relationship that we have within nato which includes not only many of the countries of the european union but of course of the united kingdom, and that will endure. so i think the security implications need not be particularly significant, assuming that br

david: from bloomberg world headquarters, i am david gura. vonnie: i am vonnie quinn. your is what we are watching. david: president obama, justin trudeau, and tenured yet to are etang to speak -- an pena ni will speak live soon. vonnie: stocks are driving high. how brexit has impacted the thinking for the fed, taking rate hikes off the table until 2018. are awaiting a joint news conference following the american leaders summit. president obama, prime minister justin trudeau, and president pena neita will be speaking. vonnie: stop hovering around session highs. we will see another day of big gains. let's check in with ramy inocencio ramy:. ramy:we are at session highs of 1.5% or more across the board with the major indices. ever since the brexit, markets to 2.5% since 2% june 23, right before brexit actually happened. the dow is up 1.5%. nasdaq is up nearly 2%. let's take a look at the intraday chart. the s&p, we see we have been on the up and up for the whole entire day. up for0, getting a leg the dia inventory. we have been higher. will show you the imac function, the

i am david gura. vonnie: i am vonnie quinn.hatzker sat down with the ceo of barclays in london, and started by asking whether barclays needs to raise additional capital. >> the amount of capital we free up by selling a stake in africa is quite significant. we have all the capital and liquidity we need, and we will free up more capital. we don't need more capital. we are fine. and we have the profitability in our core business to generate significant returns for our shareholders. you know, the challenge that this whole referendum faces for us is, we have settled on consumer, corporate, and investment bank, and what these measures will do in terms of the u.k. economy will impact our u.k. retail bank. the whole issue of how the european union will deal with the u.k. in terms of not putting up protections between the financial industries. how do we react, as a major bank in london, to that? that's a new strategic challenge for us, but it will not deter the core approach we are taking, and will not deter the timing of getting the st

david: live from new york, i'm david gura. this is a special edition of "bloomberg markets." an: just to get some breaking news very quickly, and eu officials speaking to reporters in brussels not expecting high minister david cameron to trigger article 15 exit clause this tuesday. the ukip prime minister to outline the situation tuesday night as to why he will not activate the exit. the leaders are determined to keep the eu together. the article 15 exit clause the only way to leave the eu. expect the prime minister to outline the situation, but do not expect him to trigger the exit clause. let's wrap up all the other news happening with first word news with mark crumpton. u.s. reaction to the brexit vote continue today. senate majority leader mitch mcconnell said people in u.k. got tired of being dictated to i unelected dealer crafts in brussels. itis

david: from bloomberg world headquarters in new york, i am david gura. vonnie: i'm vonnie quinn. david: government bond yields around the world sinking to record lows. where should investors be putting their money? vonnie: oil and commodities also declining today. we will hear from the ceo harold resources hamm. move to rare bipartisan help puerto rico. .e will hear from judd gregg let's head to the markets desk where shery ahn has more. shery: stocks retreating for a second day. after pressing given global stocks have announced their biggest two-day decline in a month. the s&p 500 down 1%. the nasdaq down more than 1%. we are seeing those attempts for a new rally, but they are not holding on to those gains. take a look at the s&p 500 intraday chart. we are not getting to that high we saw in may of last year. right now, trading below that 2100 level. lower, losing 1%. for the entire week already in negative territory. the s&p 500 reversing three weeks of gains, down .3%. the dow still clinging onto those gains of .1%. says there is -- the scrutiny from stock down more than 2%. tha

we go live to beijing and check in with david gura, who spoke exclusively with jack lew. erry is pushing hard for a resolution. pushing for some movement on currencies. hoping to get more clarity from the government. there is a lot of concerns about the government. if you look over the last 6-9 months, a lot of china's intervention has been to defend .he r&b to keep it from depreciating. what we worried about for many years is forcing down to value. very much made clear that we need to make sure that the commitment to moving in an orderly way towards a market to determine the exchange rate will as there ispolicy up and down pressure and that it not become a one way policy in the future. i think compared to where we ago, west a few years have seen real progress. he said that the intervention was not problematic. his word, of course. congress will be keeping a close look on the currency, going forward. david: one of the things that jumped out from your interview is the suggestion that there may be a division between the economic policy with the chinese government and the pol

>> from bloomberg's world .eadquarters, i am david gura funny bank and i'm vonnie quinn. : and i am vonnie quinn. the biggest u.s. airlines got burned on oil prices. they missed their chance to lock in the cheapest energy costs in years. david: regaining control of viacom. who is running the company? vonnie: we are one hour to the close of trading. >> we're talking about the s&p of 1%.t losing down 2/10 the worst performer has seen the theaq 8/10 down -- seen nasdaq down 8/10 of 1%. the nasdaq holding near a four-week low. talking about tech, talking about health care. if you look at the function on the bloomberg, you can see that health care just leaving -- just leading that decline while tech is being led down by apple and some of its patent issues in china. we are seeing some weakness throughout the year in the sector. now that we have a potential brags it next week that could affect the industry, not to mention a sentence hearing on drug pricing next week. we are seeing some uncertainty growing in the sector. we are now seeing the dollar weakening for a third consecutive day and that i

. ♪ ♪ marketshis is bloomberg , i am david gura. is time for the insight with ramy inocencio.e have the chief market strategist at bull's-eye options, joining me from the cvo week in chicago. very good to speak with you. markets are up, session highs, seeing a lot of rallying and optimism. we are not allowed to talk about the u.k. and the referendum because of their laws, so let's avoid that. i want to push ahead what might be the next milestone event you are looking ahead to to see what to get tape -- what could dictate the markets. >> the next event, the earnings obviously. we have two weeks, so it is important to talk about what the market didn't do as opposed to what it did. in the last week we saw a spike since vix, the highest february. and then, in reverse. we had a reversal of volatility, gold, new highs, and personal treasuries. that is optimism in the marketplace, and you have got to trust what the tape tells you. that is a positive. market selloff last week and they ended up going 1%. there is more this week. ramy: you are looking at eem, and emerging shares market,

i'm vonnie quinn along with david gura. buying linkedin for $26.2 billion, one of the largest tech deals on record. david: joining us now at the conference in montreal is the man who knows a thing or two about big deals in the tech sector, glenn hutchins. good to have you with us. amiga your reaction to this deal. i wonder from all of your experience -- let me get your reaction to this deal. what could make these two companies work together? i don't know anything about the economics of the deal. strategically, because i'm not involved with it, it looks like linkedin fits nicely. think of them as the social platform for business. it is what facebook is to consumer activity. this looks like a strategically smart thing to do. vonnie: you are at a conference called shaping a new era of prosperity and i wonder what advice you gave to the mexican finance minister on how to achieve returns in a world where the new york state retirement system just reported at a less than .2% return? : the mexicans are doing some very smart things,

i'm david gura. vonnie: and i'm vonnie quinn. we are seeing a huge pop in gold and silver off the brexit boat ramy vote. futures in settling 4.7% higher -- futures in settling 4.4% higher. we did push past the 1362 marker. ahead, bloomberg areysts that were surveyed saying this may be the very beginning. the median forecast for gold could rise even higher by as much as $100 an ounce by the end of this year. .bout a 7.8% rise there silver also rising by 6.5%. the biggest jump since december of 2014. a high not seen since the past year and a half. let's look at commodities with energy and the bti crude. -- wti crude. 5%.e down by nearly it had been down as much as 6.8%. its worst day in the past nine months. saying across global markets, we are seeing this risk off mood reflected in the stronger dollar. corn futures are falling right now. just a couple days since we had an 11 month high. down by 12% here. corn having its worst week in the past three years because of brexit and the weather here in the u.s. more rain than expected. t

. ♪ david: from bloomberg world headquarters, i am david gura. vonnie: i am vonnie quinn. hing. david: president obama, justin trudeau, and tenured yet to are etang to speak -- an pena ni will speak live soon. vonnie: stocks are driving high. how brexit has impacted the thinking for the fed, taking rate hikes off the table until 2018. are awaiting a joint news conference following the american leaders summit. president obama, prime minister justin trudeau, and president pena neita will be speaking. vonnie: stop hovering around session highs. we will see another day of big gains

i am david gura along with bonnie and matt miller. : i want to welcome mark sebastian over at options. david: always good to speak with you. i want to ask you a little bit about the markets right now, hovering near session highs. trillion,e about $1.7 what is your noteworthy take away from this? at the ballook smash over the last couple of days. we did see a little bit of a weird close in the complex yesterday, but over the last couple of days, the vix has come back below 20. still 90 points lower from where we started. while we have reset were the s&p 500 is going to be trading around, we have also reset volatility. reasons.of we have the long weekend coming up. traders are looking to go on vacation. take away is that now that we have the jolt out of the system, traders are looking around and saying, unless another big shoe drops, which i don't think is going to happen in the next month or so, it may be hard to hold a 25-30 vix because there is not a cataclysmic, immediate risk in front of the markets face. that's my they take away of

david: and i am david gura. we are inside the magazine's headquarters in new york. takata's recall. david: canada's fire from hell. all of that up ahead on "bloomberg businessweek." ♪ david: here is ellen, our editor-in-chief at "bloomberg businessweek." let's start with the opening remarks section. a lot of people who do not like donald trump have analogized him to fascists of old.

erik: that was david gura with susan rice.the ambassador wants us to, at least to a degree, to believe not much will change. i'm not so sure. i'm asking what does this mean for multilateralism? what does it mean for nato and military alliances? what does it mean to the commitment to free trade? what does it mean to the efforts, for example to relieve , poverty? what does it mean for the fight against climate change if nations like britain turn inward? clive: i don't see it as a case of written turning inward. i know that is one possible interpretation, but britain is very internationally minded. something the lead campaign stressed is they want closer relations with non-eu countries. i think it is wrong to worry too much about a breakdown of the spirit of internationalism. i think it is much more about discontent with europe, with the european union, with the europe arrangement. i agree with what susan rice said. there are so many common interests when it comes to national security that i would be surprised if, you know nation

i'm david gura. lisa: i am lisa abramowicz. in for carol massar. genes to fight disease. david: all that is ahead on "bloomberg businessweek." ♪ david: here with ellen pollock, editor-in-chief of "bloomberg businessweek." let's start in the global economic section. you have a nice graphic showing how folks in the uk and outside feel about the oncoming referendum. it seems like e

i'm david gura. lisa: i am lisa abramowicz. the hunt for genes to fight disease. on "bloomberg businessweek." david: here is ellen pollock, editor-in-chief of "bloomberg businessweek." let's start in the global economic section. you have a nice graphic showing how folks in the uk and outside feel about the oncoming referendum.

david: from bloomberg world headquarters in new york, i am david gura. vonnie: i'm vonnie quinn. bond yields around the world sinking to record lows. where should investors be putting their money? vonnie: oil and commodities also declining today. we will hear from the ceo harold resources hamm. move to rare bipartisan help puerto rico. .e will hear from judd gregg let's head to the markets desk where shery ahn has more. shery: stocks retreating for a second day. after pressing given global stocks have announced their biggtw

david: and i am david gura. we are inside the magazine's headquarters in new york. eal-life consequences of takata's recall. david: canada's fire from hell. all of that up ahead on "bloomberg businessweek." ♪ david: here is ellen, our editor-in-chief at "bloomberg businessweek." let's start with the opening remarks section. a lot of people who do not like donald trump have analogized him to fascists of old.

." ♪ david: from bloomberg world headquarters in new york, i am david gura. . david: factors driving the markets. vonnie: a major shakeup is underway in a campaign. did trump wait too long to make a move? david: at speaking of donald trump, his opposition to trade deals has been a big part of his campaign. what about brexit? i will talk to representatives froman. reporter: we are up at least 1% or higher, and that is because brexit fear

david: from bloomberg world headquarters, i am david gura.in today's trading and are on pace to end the week firmly in the red. the global economy and brexit weighing on the minds of investors. the st. louis fed president admits he worries about a spillover and and about race and is now the most dovish member of the fomc, calling for one rate hike over the next two and a half years. david: utility stocks are soaring. what is its outlook? pseg.k with the ceo of let's go to the markets desk. again in negative territory,

from world headquarters in new york, i am david gura. vonnie: and i vonnie quinn. david: u.k.e polls to cast their votes on eu membership. we will be following all the action throughout the day, special coverage. vonnie: warning signs from the fed. 2% gdp growth. it appears to be speaking the market. congressional democrats hold a sit-in to demand gun control legislation, and across the street, the supreme or devotes a for affirmative action and against president obama's immigration laws. markets close in two hours. let's get the latest from remy.

for moore david gura is standing by with the chairman and ceo of ge capital. thank you for being here. what are the immediate applications of these sheds. what does that mean for you as a company in the near term? >> we are no longer supervised by the federal reserve. we had agreements with the federal reserve and had a lot of requirements from the federal reserve those will fall away. we have enhanced standards for capital levels and liquidity. what we have been shedding is 14%, i ge capital and we going to reevaluate now based on the risks that we have in the portfolio. we will bring that down. as a result of that we are not going to have to do as much regulatory oversight work in the firm, so we will start to downsize. we will start accelerated dividend returns. we have a capital plan this year to return a $2 billion in dividends to the parent. we will pay more in the second quarter and accelerate through the second half as we bring the risk-weighted assets down. david: they have been asking for you to take on more debt at ge, your vice chairman there. with

." ♪ >> from bloomberg 's world headquarters in new york i am david gura. . we will take you from san francisco to mexico city to london. david: we see broad-based gains at the end of the quarter. vonnie: moments away from the rate decision in mexico, the most divided in years on whether we will see a rate hike. david: is the brags it -- brexit the end of britain 's revival? let's go to the markets desk with breaking news on the central bank decision. ramy: 4.25% is the rate coming out. the survey from bloomberg had a median of 4%, so we see a 0.25%