i'm oliver renick. in this week's special double issue on cities, why there is an overflow of bicycles in beijing. in sanng lot experiment francisco and mapping the underground of new york city. all of that ahead on bloomberg businessweek. ♪ oliver: we are here with bloomberg business week editor in chief. megan, let's talk about the story in japan. there is quite a bit of potential turnover and tension within the political structure. >> shinzo, the prime minister of japan, a man of her small --cination to me, people people underestimate the challenges facing him. of corruption, the battle just got steeper. we can't overemphasize how steep the economic challenge has been. he is famous for his three arrows -- he has reduced unemployment, but low deflation and low inflation continues to hobble the japanese economy on anas you know depends elder situation that creates a social security bill. to take care of those people as they get older. is facing challenges on that. things he has done to jolt the economy

oliver: and i'm oliver renick. m today's nba stars are looking to score in that appeared rex -- carol: while donald trump is busy in the white house, his sons are running the white house a lot like dad. oliver: all that ahead on bloomberg businessweek. ♪ carol: we are here at the editor in chief megan murphy. take a look at some of the states as he has taken against democracy, donald trump. can democracy survive? guest: we have moved into a new level with the president in terms of rhetoric. we have always had the attacks on immediate and establishment in the wake of charlottesville and some of the racial which used. we are seeing some explicit stuff on apartheid and seeing how far the damage can go and what are the experiences of other countries and what we are taking a look at. things may seem in a nonpolitical way, that in a sense of traditional establishment edifices being ripped down. if you look at expenses of other countries whether it is the philippines or hungry under similar style of leadership, in some cas

i'm oliver renick. still ahead, what automaker bosch must do to free itself. london and new york. parking lot challenges. still ahead on "bloomberg businessweek." ♪ oliver: we are back with "bloomberg businessweek" editor-in-chief megan murphy to talk about must reads in the magazine. german engineering automotive's fraught in the past couple years, let's talk about bosch. megan: this is a tale about the german diesel in missions scandal. this company is not well known to some in the u.s. and asia -- it is, at the heart, an engineering marvel. it controls many things in cars. in the internet of things, appliances, the way this world is moving forward in terms of how we interact with the wider array of things we use on an everyday basis. what has happened is, the issue surrounding them is, were they involved? did they know, about the devices that vw was installing into its cars to beat admissions tests? were they complicit in it? how much did they know and when did they know it? they are facing a slew of lawsuits, some of them serious, racketeering charges, tha

>> welcome to bloomberg businessweek, i'm oliver renick from new york. some of the most dynamic cities across the globe and how they are addressing unique challenges. we will also look at moscow's massive renewal program and how refugees are flowing into the amazon. all that ahead on bloomberg businessweek. ♪ oliver: we are here with megan murphy to talk about the special focus on cities and this week's is this week. i love it and you guys love it. there is so much great work here. why the focus on cities? >> cities are a microcosm of the demographic changes that are happening. we see this entrenchment at the national political level and not just in the u.s.. cities are becoming the petri , the drivingvation force of this re-urbanization for many areas. or coming back to dilapidated areas. connected megacities, you see that in various areas. these hotbeds of innovation. also some of the biggest challenges that we are confronting environmentally as well. we want to dive deeper look at these ideas and look at the success stories and some places that are st

i'm oliver renick. you can find us online at bloomberg.com and the mobile app.sively on the mobile app, russia is being prepared to be walled off from foreign capital and technology for the foreseeable future. >> we were trying to look at how the sanctions are different than before. the reality is, the measures are the same pretty much, they have tightened them slightly but the real important development here is that the president no longer has the authority to remove the sanctions without congress approval. what that means is any hope russia had that these punitive measures against it would be temporary has evaporated. the reality has sunken now in moscow that they are looking at years or possibly decades. >> does this essentially adjust the point of the potential shift in relationships between the u.s. and moscow that people speculated could potential he happen or to the sanctions put that to rest or is there still potential here for a potential reset of how washington, d.c. deals with moscow? >> i would argue no, the sanctions bill has buried those hopes. hop

vonnie: oliver renick illuminating as always. thank you. that is oliver renick, stocks reporter.our team on bloomberg. the bloomberg technology sucked -- has kicked off. they exchange ideas and expertise in an educational and empowering for. we caught up with a steph curry under iguodala of -- and andre iguodala of the golden state warriors and asked what are trying to achieve. >> a nice opportunity and environment to bridging the gap between sports and attack and -- tech and the resources plaintiff silicon valley's backyard. andre and die, he has a little bit more experience in the space. to be able to bring these athletes and influences and a vcs and attack ceos to create that networking and to see how many ideas will flow seems awesome. >> when you are thinking about coming to golden state and talking to other people, they said in the bay area was interesting in you because you were thinking about post-playing in investing? >> as an athlete, you try to find markets where the athletic part is appealing and i saw the promise in basketball players who i felt i could hope and it h

oliver renick joins me. we heard a brief summary of this from julie hyman a moment ago. up to speed on what's going on here. oliver: this could potentially be a pretty big deal. this is bloomberg reporting on friday that it's moving the market this morning. this is a deal that could be potentially very large, one of the biggest in the industry. the last big one we saw was warned buffett's berkshire hathaway around $37 billion. this is $95 billion united technologies and another 21 billion. we are crossing the $100 billion mark when you combine the two. it looks like it could be upwards of $140 a share, a pretty big boost from where we are for rockwell collins, which is at a pretty good year so far. david: are there deal words in the situation like this? how rockwell looks against its peers? oliver: rockwell does look pretty good. it's one of the best functions on the bloomberg, relative value correlation. this is a great way to compare the peers. this is profit margin versus sales growth, looking pretty good for sales growth. the blue circle right here is rockwell collins

joining us now is oliver renick. oliver: you may want to stick with the little folk. of things that will be read through here, huge companies have a lot of things to parse through. we want to see what is happening with spending, the infrastructure element. let's look at what they need in terms of the stock. beats. at the earnings check out the red on the supplies column. the shares move down, it's been several quarters. it hasn't been where investors wanted it to be. they have overall been good on that and this will be very good about it. joe: not surprised that analysts are bad at estimating berkshire. berkshire trade with financials and industrials? some people called it a glorified hedge fund? what is it most similar to? oliver: there is something interesting right now about what they will do with their money. the companyge how is viewed fundamentally. that is the big takeaway. it is roughly $33 billion in cash. and i willreal quick click through on the cash flow. it's a nice little chart. it goes up. they want to put in more investment. it looks more like a big in

on the: for more insight dow and what it means, let's bring in oliver renick. ant is this when it comes to the internals? oliver: significant in terms of what it changes fundamentally, not a lot, however a nice, big number. it is the optics and whenever you get to high index prices, people think about what got you there and whether you belong there. to what extent are stocks overvalued? which pockets are the most overvalued? which companies deserve to be traded at higher prices, and which ones even after doing well and earnings don't justify their valuations? that is the story today. joe: the markets are doing pretty good, but there are ,ockets of frailty, transports semiconductors, some of those thoughts that despite doing well aren't living up to investor expectations. oliver: it feels like there is tension where strategists are bullish on the rest of the year, but not complemented by some of the data. industrials breaking down. is a chart looking at industrial stocks in the s&p 500 and dow jones transportation average. a little downturn. , but thesefred about

here to discuss with happening is oliver renick.ssions >> finally some decent news for snapchat investors. this doesn't have much to do with donald trumps america. adopt snapchat as his go to social media instead of twitter. this is kind of a double-edged sword. on the one hand we've got some decent -- kept the target price the same. one of the few investors on the streets thing to buy the stock. they are saying there's going to continue to be adoption. there is still room to grow in terms of looking at the visitor ship on snapchat. continue to drive through the market. especially getting people to watch the vertical videos. , cameras started weren't ready for it. people are now adopting that more. if snapchat the number of millennial's who use it, they will try to drive revenue by getting people to watch shows and various things that pop up when you are using snapchat. julia: the basic problem is facebook keeps adopting their technology. the argument would be they do it better. why are they gaining market share? is it because their

we will get updates throughout the afternoon and oliver renick joins me now.nk we are at number 13 this year. >> on of the things about the geopolitical tensions that have cropped up is they are hard to navigate from a trading perspective. the defense element is one of the us areas where it has been a reliable move in markets. we see that today with the stock of the hour. it's happening for boeing. it's happening take united technology. they get a boost when we think about tensions around the world. who's going to be supplying the artillery missiles. this is a great way to get an assessment of how much people are trading these companies. this is the average volume function. this is a 10 day average here in the blue. if we actually look at not just the 10 day but the 30 day you are going to see a line right above that. pastverage volume in the has actually been quite elevated. the last time we were talking about this pre-much every time we get some sort of move from north korea this happens in the market. is this somehow different because of the fact missile wa

oliver renick joins a with more on this story. on you may have expected, perhaps not to this degree. oliver: i guess not a huge surprise in that sense, defense companies rallying again today. overall, this is a company that is good for investors, maybe not ningthe rest -- what's happe is a big move to a 52 week high that also happen to be an all-time high. it's also of course in raytheon. their fundamentals also looking pretty good right now. i think what's important to focus on, on the day today, whether doing in terms of reacting to some of the political dialogue that comes out but also the fundamental picture, it looks pretty good since we reported earnings about two weeks ago. david: how much is this company -- the work it has done changed? >> that's a big part of it. that's part of the thing investors and analysts are looking at right now. overall, if we jump into financial analysis, we can actually look at some of the elements, the segmentation for the revenue. let's just look. not a lot of companies have this description for

oliver renick: a slow day. get the trends helping media companies will especially those with a political edge, to outperform and give a boost to what a lot of investors were worried about, subscriber rates, looking at fees, ad revenue. this is getting a bump from fox. not a huge jump but it is the first and the shares have been up in the past five days. i think it is important that not only are they doing well in subscriber fees, but it is important because there has been a lot -- they are dealing with the departure of their biggest show's toast, bill o'reilly, the overhang of sexual harassment allegations throughout the past year. a lot of things that could have made the situation a lot worse than it is for investors in this company right now. they are probably breathing a sigh of relief. david: i sat down with mark thompson, the head of the new york times company, and asked him if the performance was with -- in line with what we saw with the election. he was adamant it is not. are we here in similar argument

by oliver renick. mark, great to have you on the show. date confirmed. mark: this will be a significant day for apple. this will be a big splash. they will frame it as a new beginning for the iphone given how big of a revamp of this new model will be. lisa: we've been hearing about this for a long time. the iphone is apple's most important product, generates two thirds of all sales. meanwhile, you have growing competition and a market that could potentially be saturated at this point. at this point, the stock is really anticipating a lot. are there signs that stock traders aren't to spinning too much -- are anticipating too much? oliver: that's exactly my take on it. there aresigns that high expectations. on therun down bloomberg, you will see a lot of green on the beat side. when you look at the price change, it doesn't always work like that. investors need to see a lot from the company to get excited and pay up. six of the last 7 -- seven of the last eight, beat, beat, beat. that doesn't always mean price reaction. this function shows you the relative

oliver renick, thank you for that. the indian government taking a gamble when it when cash would no longer be accepted as legal tender. what has been the payoff? we have the answers. this is bloomberg. ♪ > ♪ julia: "what'd you miss?" inflation cannot break above the 2% no matter how you look at it. take a look at the chart, we had inflation this morning from the eurozone and we do have mario draghi next week said to give hints on what is going on as far as the millis is concerned -- as stimulus is concerned. we are looking at the blue line, core inflation. excludesve cpi, that packaged holidays. you can see it goes a little bit bit nape the core level -- beneath the core level. and we have the purple line, five-year swap. i made the point earlier in the week and i wanted to illustrate it again. we have the ecb looking at this, below where it was when they initially announced qe. for all those people borrowing the euro and arguing for mario draghi to do more, we do not have the numbers. joe: here are some not so pleasan

still with us is steve wood of russell investments and bloomberg's oliver renick. ship between crude, the dollar, and what is not happening in the equity market? steve: it is an interesting chart. -- oliver: i think it is an interesting chart. waiting tot of it is see how long things hold and what habits around the world. we are seeing a little bit of weakness today in the euro. we do not really know what will happen is a lot of the global geopolitical we'll skip turning -- geopolitical wheels keeps turning. what is important to the energy sector right now include the financial earnings story, and i think it is also the fact that -- i should clarify, earnings are not great, but they are now at a point where analysts can get a handle on where they are. alix: depends what you look at. oliver: that is true. you have a rebound coming from companies making money. oil in a range for the better part of the year, allowing investors and executives to get a handle on what they can produce, where they can do it, and i think that will be important. jonathan: i have heard a lot

jonathan: brian jacobsen alongside oliver renick. break to find out what they really think. coming up next week on "bloomberg daybreak," we will catch up with bill simon. from new york, you're watching bloomberg tv. ♪ ♪ this is bloomberg. i am david westin. a wild week in washington. trump came under fire for his comments about charlottesville. ceos fled his counsel. and senator bob corker says the president has not shown stability or competence in the job. public policyf joined us yesterday on what a tax policy reform will now. >> look like>> the best you get now is tax reform lite. at the end of the day, it is more like a tax cut. that we do not think it is a powerful enough to affect the economy. david: joining us now is grover norquist. great to have you here. care about this deeply. where are you on what you think can actually get done this calendar year or in 2018? a couple of things did you will see significant rate reduction on the corporate side the goal of the white house is 15%. i think you're looking at something between

. ♪ oliver: oliver: welcome back to bloomberg businessweek, i'm oliver renick. nd us online at his newsweek.com. oliver: and on mblue apron is lh lesson. it is expensive to acquire new customers. carol: it is often a challenge to keep them. >> there are 2500 companies in the u.s. that sell subscription boxes through which you sign up , you put your credit card down. >> all kinds of products. common are cosmetics and meal kits. carol: in this story you outline how pricing on blue apron boxes or other subscription models is tricky. netflix, who like seems to have figured it out. why is it tricky for others like blue apron? inherent overhead cost like server bandwidth. they don't have to deal with ths through the mail. since they split off their separate dvd business. at a certain there is a lot more profitable -- for netflix to turn off their service on and off as opposed to shipping meal kits or clothes. numbers, bluee apron spending, again, you say they are conservatively spending $94 a customer and that person cost continues to about some subscription-based se

i am oliver renick.lso give us on sirius fm and in boston. -- catch us on sirius fm and in boston. and in london and in asia on the bloomberg radio plus app. in the politics section, as president donald trump's legal woes deepen, he has yet to put together a functional team. >> right now, their legal team is still in flux. in some ways, unfocused, which, compared to robert mueller, who now just tired his 16th lawyer, trump's legal team is trying to get it self-centered. bringing on washington veteran lawyers assuming to lack sort of one key resource that they might need to face off against bob mueller and that is a private law firm. oliver: so, when you look at the list of folks on mueller's team and the crack squad he is putting together, it is pretty expensive. i am looking at the story and i look at the folks on the other side defending from and his team, it looks -- trump and his team, it looks lopsided. do we know why they are not assembled a team quicker to mark -- quicker? >> trump initially turne

i'm oliver renick.s special double issue on cities, why there is an overflow of bicycles in beijing. in sanng lot experiment francisco and mapping the underground of new york city. all of that ahead on bloomberg businessweek. ♪ oliver: we are here with bloomberg business week editor in chief.

. ♪ ♪ oliver: welcome to "bloomberg businessweek" i'm oliver renick.s special double-issue on cities, why there is an overflow of bicycles in beijing, a parking lot experiment in san francisco, and mapping the underground of new york city. all of that ahead on "bloomberg businessweek" ♪ oliver: we are here with "bloomberg businessweek" editor-in-chief megan murphy. megan, let's talk about the story in japan. the

joining us to discuss this farther is bloomberg's oliver renick. t the stock move that he was great for expedia and now there is a gap that needs to be filled? oliver: oliver: i think that is -- oliver: i think that is always the case when you have a ceo that has been there, for a very long time. vonnie: it took them a well to get started. oliver: it is true, but it is a nice ascent upwards. at least one of the major minds behind that could be departing and that gives investors all little bit of cause -- a little bit of pause. market, it the whole is causing a bit of a rift among investors, but at the end of the day, this is still a stock that is in the middle of a correction, down about 10% from its high. it has otherwise been up in a way and the fundamentals underpinning the business have helped carry it a long way and will still be there. has there been some kind of strategy turnaround or anything like that because it would appear that that is what is going on. oliver: this is what uber once and for, they want to take some -- this is not too much

let's bring in oliver renick. oliver: we're seeing a bit of strength in the markets. up this at 2015, mayorok of 2015 to mid 2016. this is an important time in the market that could explain some of the longevity we have seen so far this year. this was a time in which we had to corrections of 10%. the august selloff on chinese growth concerns. we have brexit later on in 2016. the worst start to a year -- of an entire bull market. period inns here is a which there are a bunch of companies, roughly 270 that went through their own bear market. everyone is waiting on a bear market in the actual index which is a 20% decline. maybe we were looking in the wrong place. here are the individual bear markets that we talked about. 260 nine companies dropped at least 20% and did not recoup those losses. 2011, the last time we had a bear market. in 2011. hair under you had the exact same number. at the end of the day, it feels very similar. ont to try to put the icing the cake is the idea that this also happened during an earnings recession that rebounded. time, 15, 16.e seven quart

. ♪ oliver: welcome to "bloomberg businessweek" i'm oliver renick.ecial double-issue on cities, why there is an overflow of bicycles in beijing, a parking lot experiment in san francisco, and mapping the underground of new york city. all of that ahead on "bloomberg businessweek" ♪ oliver: we are here with "bloomberg businessweek" editor-in-chief megan murphy. megan, let's talk about the story in japan. there is quite a bit of

. ♪ >> welcome to bloomberg businessweek, i'm oliver renick from new york.dynamic cities across the globe and how they are addressing unique challenges. we will also look at moscow's massive renewal program and how refugees are flowing into the amazon. all that ahead on bloomberg businessweek. ♪ oliver: we are here with megan murphy to lk

president donald trump can take some credit for that, i want to bring in bloomberg stocks reporter oliver renick. the president just now when he was unveiling the new immigration legislation along with a couple of senators abovened -- said it went 32,000 and it would go higher -- 2200 and would go higher. oliver: here's the thing that if i wish i were trump's advisor, i would advise him, timing your success of this document is a risky endeavor. if you play with fire, you might get burned by fire. there is so much that goes into what happens in the equity market and why. of journalists like myself to figure out every day and investors to figure out. i think the thing that trump runs into trouble with, with the stock market high is because it could flip on a dime. it could also go higher. vonnie: anything could happen, but some of the trade has been the hope of the fewer regulation, hope of tax reform which means tax cuts with this administration and the gop. it could, but as long as this help is out there, it might not. oliver: right now it is putting some floor under markets and specific sectors

we approach the stock symbolically this afternoon. .e analyze what it represents to discuss is oliver renickbeen watching the market and twitter. >> we have got to watch twitter. donald trump loves to watch the equity markets. a 22 thousand level which does not change much fundamentally for the stock market. we celebrated 20,000 together. oliver: a milestone is a milestone. win the presidency is a new high on the market coming love to take advantage of it and say here is gratis what -- with what is going on in america. if you were only to see donald trump's commentary during the stock market, it would paint an interesting picture of who he is and his honesty. i say this because it is something that is really hard to nail down. nothing he says about the market has been really wrong. could hit an all-time high. the question is how it got there and why. has to dogest answer with trump. i'm in the financial analysis now. back 20hart this thing quarters because this gets interesting. thisant to look at the way dips. recession that lasted for a year. the upswing out of it, that is why you would sa

oliver renick joins us now. what's going on. >> they did miss earnings, not where they wanted to be with the bottom line but also not where they wanted to be with the outlook. this is weighing on their peers. this company has a lot of things going on. at the end of the day, it is one of these consumer staples. they don't typically trade at higher valuations, often a safety play. focusing on the fundamentals today, let's look at the disappointment. earnings history here. a bit of a changing story. the stock had a pretty nice run until 2016, and has come off significantly from its highs. look at the past earnings results. this is what we are looking at in terms of the beats or misses. there was a lot of green in 2016. this is now the fourth quarter they have missed an here on a price reactions. down. investors are not liking this. part of it may be a temporary thing, talking about their home food products having some trouble. at the end of the day, they have one of the higher margins. some of that is starting to t

we are joined by oliver renick. results,retty good adding to a series of good results.eat earnings estimates on third-quarter eps -- it was roughly one cent above, so a pretty solid beat. better thanooking expected by a couple basis points. they also updated their guidance. it was above expectations. that is the thing everybody loves. just to give some perspective, this is a company that is used to beating. earnings history -- this is a great landing page for earnings season. the percent surprise column on earnings for each of these quarters -- about 10%, 22% last quarter. that is a lot of green. that is a company that has basically beaten every quarter of earnings for a couple of years. the stock price reflects that. another positive day here for investors in analog devices. julia: we have the acquisition of linear technology spinning into the numbers as well. is, given thethat consistency we are already seeing. oliver: that is a good point. i will say that anytime you have a transaction like that, it is good to be able to still show a number that is ahead of expectati

david: oliver renick with our stock of the hour.ton post reported that north korea is now able to make miniaturized nuclear weapons that can fit ballistic missiles. that is a key step for north korea in becoming a fully fledged nuclear power. ise with some analysis michael mcdonough. global director of economic research and chief economist at bloomberg intelligence. we hear all of this rhetoric from the president in particular about the need for china to do more. how has china done? what kind of muscle hasn't been able to help us flex? >> 90% of north korea's exports are consumed by china. one of the biggest commodities is cold. -- coal. it looks like at least officially they are doing quite a bit already on this. david: we had this latest round from the united nations to the tune of about $1 billion. like au.s. that sounds rather insignificant figure. how big a deal is that for the north korean economy? north korea's total exports are $3 billion. they're saying this will take about $1 billion off the table. chinese coal imports alo

oliver renick is here to talk about her murder. that was a bad pun. about what is happening with stormtrooper. this is a bit of a reversal. this is a bit of a reversal. i guess it depends on the time range. the top panel looking at the price, the bottom panel showing us the rsi. this is a pretty steep move as you get very steep selling, now in the oversold territory. this, i problem with will look at the actual moving averages. 200-daveee over here, moving averages, it has blown through all of them. the stock price is not great and this is coming after earnings. david: i used to cover the firearms industry. firearms is one of the most durable goods, you have manufacturers getting people to buy more than one gun. when you look at what is happening here you would think this is where the politicking comes in. when you have a president or somebody campaigning for ,resident who is more pro-gun which donald trump was during his campaign, you would think this of being a good thing when he wins. however, what spurs the short-term demand is when buyers of guns

economist and stocks reporter oliver renick. aal yields have inched up little faster in the last day or two then we might have been anticipating given how they happen moving, but still sluggish. >> still very low by historical standards, absolutely. will we search? probably not. ,e heard from the fed chair stanley fischer delivered an excellent speech on real interest rates and why could they be so low. there are some temporary factors, and there are some much more permanent factors such as growth and-- trend low investment in the economy. vonnie: let me turn to you. alan greenspan suggesting investors have been better off worrying about the bond market. that's fine. if you invest in the equity market -- yourr: it's hard to duck head if everything starts falling apart at once. this is a really good interview by my colleague, liz mccormick. she talked to greenspan and asked him about bubbles in the equity market, and whether or not the levels we are seeing in stocks are worrisome. his response is, what you need to be thinking abo

here to discuss his oliver renick. how did they beat? er: they beat on pretty much everything that counts. they had a next occasion for fourth-quarter profits and revenue that exceeded what the street wanted. when it comes to earnings, it's about the future. when you have guidance that goes up, it gets people excited. they are making semiconductors that people need for basically everything. it's another boost on top of that. not only did the earnings do well, but analysts got really excited. chart whichded the is looking at the number of buys in green. the bars represent how many buys there are. the reds are sell, yellow is hold. today, we're getting upticks. let's get our forecast even higher. stocks people pay a lot of attention to semi's. sorry, that wasn't meant to be -- you have this outside role in understanding the tenor of the market? oliver: i'm giving you a hard time. that's totally correct. we talk about being swap using one or two companies. the fundamentals are pretty good because they signify what companies in this field can

david: oliver renick joining the onset in new york.continue what happened in charlottesville, virginia and another protest turned violent -- secretary of state rex tillerson was on the show with chris wallace. doubtsn't believe anyone the american people's values or the commitment of the american government, or the government agencies to advancing those values and defending those values. >> and the president's values? >> the president speaks for himself. >> are you separating yourself from that? comments to our values and this feature again to the state department this week. david: another example of the divide growing starker between several members of his individual circle. start with that exchange, i said it was extreme area. what does that tell you about the relationship between secretary of state and the president right now? not great. secretary tillerson is meeting with donald trump at the white house today for a working lunch. there is an increasing divide in this administration between donald trump and the people who work for h

oliver renick there from new york. this is bloomberg. ♪ new york.00 p.m.elcome to "bloomberg markets." ♪ >> we're live over the next hour in new york. here are top stories around the world. in politics, president donald trump signing a sanctions bill the limitserns on placed on him by congress. lloyd blankfein telling bloomberg what changes the bank plans to make. in corporate news, results at the road after the bell today. investors will be keeping and i on the revved up production schedule and we will bring you the numbers. with have got a check on markets with julie hyman. back. yes, i am all three major averages perk up a little bit. the s&p 500 down as was the nasdaq. both clawed their way back to dow holds above 22,000. the s&p 500 earlier today touched a record of closing basis. we will see what happens in the last hour or so of trading. we continue to see them push or pull and have a big effect. we have got apple of course, the biggest influence today. after the second quarter revenue forecast, sent shares higher, you have got the maker of gene seq

still with us, david lafferty, and here is oliver renick. calm, despite the surface. a lot of turmoil going on. as of right now, we are setting a new record, nine straight days . hard to find much pain in the market, but you are finding it. oliver: things are starting to break down a little bit. part of it comes from what julie was talking about. >> the story with individual securities and of the market over all. all the: -- oliver: people are talking about the subdued nature, the activity in single stocks that are offsetting each other in creating a low volatility environment. you can see it on a broader scale, the equal weight versus the market cap rate, that breakdown starts to happen when fewer stocks are keeping up with the bigger winners. that is what we see right now. i have another picture of this. we are looking at the green mine, a large -- line, the large caps. they are up here, 10%, this is normalized. incaps in the hill and small warned. you can see the variation taking place where it is not all games happening at the same time.

oliver renick joins us to discuss this further. what are we looking at? er: we are looking at the effects of every quarter. this will be an important moment. today, the stock is up a little bit. they have done pretty well. however, there is also a little bit of news today in terms of at&t reaching a deal to include cbs programming. directv andnto online streaming service. that is the piece of news today. it is all about earnings tomorrow. there will be stuck to look at. >> how did they differentiate themselves? oliver: i think there is this believed that they will differentiate themselves. we had semi-numbers come through from some of their peers. we had outlooks moved down from time warner, sinclair drug test. the numbers will be important. i looking at the financial analysis page. what i want to call your attention to is the advertising. i will shut the advertising on a quarterly basis. if you look at the trend, this is the fourth quarter, you can see that is continually coming down. it is not so hot. this will obviously be very important. we what's the

. ♪ ♪ oliver: welcome to bloomberg businessweek, i'm oliver renick in new york.t dynamic cities across the globe and how they are addressing unique challenges. we will also look at moscow's massive renewal program and how refugees are flowing into the amazon. all that ahead on bloomberg businessweek. ♪

joining us with maurice oliver renick. what is happening here? : this comes after what seems like moody's is determining to be did eurasian and fundamentals, looking at competitive pressures as well as best deterioration in feminist, looking at competitive pressures. not completely negative, but the highest graded debt to get downgraded. they are setting energy as well as industrial infrastructure units that have cleared out the backlog. there are delays involved in what they want to get done. since. the downtrend joe: infrastructure can meet a lot of different things. a lot of infrastructure companies are energy companies. is this the kind of company that would theoretically love to see one truly dollars of government spending? this is a recent debate the stock -- it is one of the top 10 gainers the election. it is after getting pretty much obliterated, down double digits. it is one of the top 10 industrial camesa the more clarity you get in any respect on infrastructure, it could put a bit of a floor -- joe: floor underfloor. oliver: didn't even

oliver renick joins us to discuss further. always been the credit side of the story, the debt holdings of this company. oliver: it has, and now more than ever that they have been solely divested and selling loss in their business to try to get things unto an even keel, stocks of a little bit, quite a bit and the morning and has since come down overall, positive day here in a row. we are looking at long-term stock here, the chart doesn't look much worse than it is. it seems like today and in the past couple of months, the stock is up. investors are potentially trying to look more positively on the company, and perhaps a little bit bullish in terms of getting cash around to pay over that debt. through a lot of the businesses. they've had to find a way to come up with money, to get through this wall of debt that's coming up, and that's what i want to pull up on the terminal here because the visual is quite striking. i'm looking at the didi i.s. function, debt distribution. here's the big wall of worry they have here. this is the

joining us is oliver renick .scarlet: i'm scarlet fu. .mpanies that is quite a bit, but not for apple. lover: i know that you prime tv content, so i am excited about this news. apple usually does things pretty well, so they will put $1 billion into producing original content that will launch them into the same vein as netflix and amazon prime. i think there are many people who go home and they throw on their smart tv's and if you have amazon and netflix that we must take care of it all, but if apple produces original content what they want to do is position themselves to compete with obviously those big purveyors of content. scarlet: and all three of us, we are huge "game of thrones" fans. oliver: this is going to be exciting. back to apple. i want to put this in perspective on why this is so important to them. we talked about yesterday. we jump into my terminal, i am on the financial analysis screen looking at the services elements. they have been continually growing this part of the business, it is important for them. about $25 billion r