why ge? they've been trying to transition since 2001. since mr. imelt took the helm and haven't been able to execute quite as effectively and they've had an activist investor as well. >> it hasn't moved ge because they haven't stated what their plan is for the future, so i do agree that the pressure from trio forn, from the street is affe and the way they can clear the deck sos the state which businesses they want to invest in. but most importantly, as investor, what should i be looking at in terms of progress? >> do you own anytime your funds and would you add to it if you did. hold.do and we would consider our guidance has been it's not moving down or up. it's just kind of ceo takes pla until the new plan takes place. you're right. you've waited ten years to take action on ge. at this point, the light is at the end of the tunnel. i want to give him an opportunity to see what the plan plooks like. >> he was in one of the most successful arm as of ge. and it has been able to execute in that division. i guess the question is, can he take what he was

why did he do that? i think that is one of the big questions for ge. ch aggressive standards in trying to push yourself to meet these hurdles that look impossible? master they had aggressive organic -- last year they had or guess if -- aggressive organic roast targets, but that is what people are -- roast targets, but -- growth targets, but that is what people are looking for with flannery. they are looking to move toward different accounting standards, whatever that might be. vonnie: brooke sutherland, be sure to pick up her column on the bloomberg. coming up, how are democrats reacting to the controversy surrounding president trump? the ranking member of the senate usance committee tells earlier about markets. and more reaction to the news that sean spicer has resigned as press for terry. anthony scaramucci -- press secretary. now pressaramucci director. and you can watch all of our pieces on tv . this is bloomberg. . . vonnie: from bloomberg's world headquarters in new york, i'm julia. kevin: and i'm kevin cirilli. you're the top stories we are w

chairman and ceo and they pretty much put a lot of color around what was going to happen with regard to why ge being more closed lipped about what's happening in the future because of the transition plan they spoke on the call, specifically john flannery speaking take a listen to what he said with regard to the transition plan being put in place for general electric. >> as you know my official start date is august 1st and we indicated earlier that i'll be doing a full review of the company and will be back with my views. we're on track with this process. i'm in the middle of a series that dives into each of the businesses looking at everything you would expect what is the market outlook where can we grow? where can we improve margins what returns are we getting on investment. >> now this plan of attack, at least plang out and forecasting and taking stock of ge is going to happen all through the next few moss back over to you. >> selling this stock is a mistake. you're betting that john flannery doesn't know what he's doing. that's been a not great bet according to my sources at ge. real bad be

. >> honeywell has had a bigger move i hate to say this this is why ge is at 25. they did not have organic growth i think it's going to end up being -- do i wish i had never heard of it? no and the free cash flow for ge is still -- >> it's anemic. >> thank you very much i have to get the roge out remember before google >> we'll get to google. >> ge should be at 23. if honeywell will be at -- >> simple multiples or -- >> in the end, what's so unnerving about ge, i'm sorry to do that. >> the ge is interesting then you see how little they make and then you see this turbine. david you and i could go into turbines in terms of sales unnerving. power. the combination of power, locomotives and health care, what the hell? >> i know. turbine sales are important, too. they also generate a service fee over a long period of time unless you choose to pull in that service fee as a one-time payment. >> who would do that >> i don't know. >> that's something for investors to look at. >> that would be ill advised way to be able to break a quarter. honeywell, so far, it's caterpillar

we'll tell you why huge downgrade for ge. why one analyst urges you to sell that stock and answers our question of what is the biggest mistake ge has made. >> thanks. i'm michelle caruso-cabrera. here's what else is happening. microsoft officially announce being it's cutting 3,000 jobs. >>> liberty media buying the rest of hsn. $2 billion deal brings the nation's two best known home shopping outlets, qvc and home shopping network >> and despite a soft first half for auto sales the outlook remains strong >> welcome i'm tyler mathison we begin with the president's big overseas trip a very consequential one. he spoke early this morning point land and a short time ago landed in germany and his first face to face meeting with russia's vladimir putin. eamon javers is live in hamburg with the very latest >> reporter: that meeting with vladimir putin will come tomorrow here in hamburg but today president trump has landed in air force one and just met with angela merkel, the chancellor here in germany that meeting so much anticipation

until there's a management change, i think it's a difficult stock to own >> that's why you don't own ge> who said it was a quick fix >> tim, nobody said there was a quick fix. i'm saying the stock has been punished because of the management that was there. and at some point, the reward will be b there. this is not a trade. this will be an investment >> i think ge is a great company and have made some poorly timed bets into energy and chased emerging market, but when i think about ibm, this is a massive company. they had to reinvent themselves and it's taken a long time no quick quick fix at ge wu i think the way they allocate capital could be different over the next couple of years ie, fewer buybacks >> they have some incredible assets they could sell off because i think part of the problem is that management got too wide they're in everything. there's nothing ge doesn't do it seems and that's mostly their problem. they don't do anything great >> shift gears, jpmorgan snapping its streak, but some are betting the bank's run isn't done yechlt hey, mike. >> reporting next week, normally j

boeing, ge, titans of industry. whyhey find private lenders to finance the deals, not using exim loans. export subsidies may boost the profits of the corporations that get them. it's bad for the economy because it shifts capital economic growth and jobs from unsubsidized firms to subsidized once, also known as politically connected ones. even hurts some of our own domestic companies. delta can't buy boeing planes with subsidized exim loans, while foreign airlines like airindia can. prompting illegal lobbying battle between delta and boeing over the fate of ex-im. hanging onto it is nothing more than big fat corporations hanging onto their handouts, handouts that working americans pay for. here's the good news, in a bold move, president trump just nominated former congressman scott garrett to head the ex-im bank. here's garrett on the house floor two years ago. >> they are resurrecting this fund for corporate welfare. you see, the export-import bank transformed the role of government from a disinterested referee into a b

. >> for my purposes, right, what's the down side of risk in ge at this point, 2 bucks, 3 bucks? >> not necessarily. >> more? >> why couldn't it go lower? >> i don't think ge's -- see, to me risk/reward ratio, yes, you may have to wait two years, two months hopefully in your case it's two days 3 and a half% in the stock is one of the essential components of the economy a 3.5% yield on a $28 stock, could it go to 20. >> year to date down 15% you think it could go two to three bucks lower? >> look where it was three years ago. $18 stock. >> but if you buy at a 30 your risk is a hell of a lot more than 3 bucks risk/reward wise i'd rather buy the stock at these levels if i'm going to buy something and it may be dead money for a while, okay i know my risk is this, you know maybe i do it where i buy stock and buy, you know, the 22.5 against it and collect the income. >> there you go. >> you know what i'm trying to say? but i'd much rather buy it here than buy it at 31. >> by the way, i don't think it's a huge risk to buy it here. i'm talking about -- i'm talking about being in a bull market and focusing on stocks that ar

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>> why exit then you will just alienate a whole constituency. >> and business leaders from chevron to apple to geling him not to do it. >> right. >> his own family. >> absolutely. the smart political move would be to say take your best guide, take the vice president -- he is right out of central casting. the best thing about the vice president is you don't need a food taster. this is a man who is loyal, dedicated, smart and on the president's program. take a blue ribbon commission, leonardo dicaprio, senator feinstein, let them analyze and don't pay anything. come up with a conclusion. if you don't want to be there then, it will look like it is more considerate, thoughtful. he said, no, i will contribute to climate change. $2 trillion wasted funds. he looks at it like a unique contract. let's sit down and we will slowly negotiate. close the hotel, it is over. come back to the table and we will talk about something else. >> we know this is a deal negotiated by 195 countries. nicaragua did not think the deal was tough enough. you think that, in a union contract, this is like going into a collective

ge, which will likely be awful. the reality is that around them it will be so much more and people expect it to be bad >> this may be why the dow does not perform as well as the s&p and swm and nasdaq. >> does anyone really think of what will happen if ge shows positive cash flow >> sorry, jim. that one we'll disagree on >> if anything, jim, based on ge and the changes happening, this could be the kitchen sink type of thing, right? >> a lot of peopleare talking about that we're going to discuss nelson peltz. it's kind of a wells fargo board feel, if you know what i mean. >> uh-huh. >> the places that you want to be this week, so microsoft gets called out positively. morgan stanley raises the price target. >> apple >> brings it all back to big tech we started with microsoft and now apple and some others. >> yes and technology has been strong it continues to be strong. and anybody who has any part of the cloud -- >> it is cloud cloud is adoption and it used to be thin and now it's retail. health care is adopted and these are really big secular trends i come back to j & j the stock got slammed. look at what it does by the

vonnie: why would jeff ml to be a good match -- jeff immelt be a good match? he doesn't seem to have found any success with ge that's true. he did not have the same reputation as his predecessor -- he'sch, but he's still a respectable ceo who ran a 200 plus billion dollars market cap company, and they are really looking for somebody with a lot of experience who can restore confidence in the business, prepare the company for an ipo, and then take it public. so they are looking for titans of industry, as we said, to do that. vonnie: it seems so odd to be talking through traditional ceo names for a company like uber. we appreciate it. bloomberg tech reporter, mark milian. up, electric cars affordable for more households is pivotal for tesla to reach the mass market. we discuss, next. this is bloomberg. ♪ vonnie: tesla shares up 1%. we will be getting on to that topic in a moment. first, our latest lumbered business flash, a look at some of the biggest business stories in the news right now. sales of cancer drugs you to double from a year ago. according to people familiar with the matter, merck is taking merck ba

ge and uber this career, pay is still great. accord to the research firm, ceo pay rose 6% last year. the highest it's been in three years, so why then things seem to be shaky for ceos? jp eggers, professor at new york university joins us to talk about that. welcome back. nice to >> thank you. >> tell me how you see this picture. maybe it is the size of the companies we've seen the turnover office? i'm not sure why do you think we're seeing so many ceos recently any way get booted out of the corner office? >> so, we have seen some very big high profile turnover events recently. the numbers look like they're profile nature of this is catching everyone's attention. these are big name companies who have been around for many, many years and many who have been mightily changes that have been going on in the environm solut and the performance has just not been there. >> how much of the change, jp, is traceable to the fact that some of these company's stocks have been b targeted by activists? >> so, certainly, one of the big things that can break the typical inertia would be an outsider coming in, buying up enough shares and pushing fo

why we have to look at these sectors. see it like industrials, too, we have to account for ge for amazon when you look at a sector of like discretionary equally weighted, you realize the influence amazon and netflix have had on overall -- it's not as good under the surface. tjx rolling over certainly, the auto names, o'reilly auto owned, so we need to focus on what's working, what's not and there's a couple of missing piece es with the sector >> chris, so, you have that s&p chart. obviously, we look at a one-year basis, looks like it just broke out. look at like that trend line is getting pretty steep and like you said, you haven't had more than a three and a half percent pullback all year. does it make you nervous that when it does break the tend line, you may get something unexpected >> here's why i'm reluctant. yesterday and today, we had new highs from russell 200 that is not the environment for bear markets i can't rule out summer weakness, but i think we have to do it opportunistically in the context of what is a good trend. >> you have this argument on the desk do buy the leaders wha the better plain on a market l

it will be over 10% if you exclude ge because it's such a wait on the growth rate. why do you have a negative stock reaction look how negative it is. the one-day response in the company's reporting so the companies that have beat earnings, you're seeing less than a 1% first-day gain in the stock price, and today you're actually seeing some of that in a decline when you have it beat if you miss earnings you are punished almost 5% average first day beat and if you're in line you still lose and all eps, all companies reporting, have seen an average of a 1% decline. what does this all mean? it suggests to a large degree of good was priced in and was expected and at the second half of this year the stikes are a little higher in terms of year over year growth rates because it's expected to grow and the second half of last year was stronger than the first half so i think that's our takeaway. i will point out, guys, this is not that unusual for earnings season very noisy in terms of the response and sometimes you get a tale of two earnings season so next week we have a lot of h

why are you such a big trump. >> did see what happened? i was listening. that is amazing, that is what we're looking for. that is what he delivers, the last geid these jobs are never coming back. that is not the message. but president trump has the message, he is delivering, i am as pumped for wisconsin as i was last night. liz: is this why you voted for president trump. >> absolutely, he gave us -- he didn't just talk about hope and change. he said, here is why your jobs left, and here is how we get them back. this is amazing, we see it today, you could have not have written this script for me last night, he is an amazing man, we're going to have a very great country again. liz: do you feel that democrats abandoned you, why? >> for the as long as i can remember, we steel mills closed, they said we'll fight for you and bring good jobs. they said we will get to washington, send me there i'll get there, we had a congressman there 16 years, and passed 3 bills, two are naming highways after heroes, what are you doing? president trump has been there 6 months, and he already making differences. it is amazing, he is an amazing man. >> the shirtz sh

which is what boeing is based on on the validation of why investors are rewarding it and even from a valuation perspective. look at honeywell and ge the mega caps, boeing goes higher so as the services group ramps up, we see plenty of runway in boeing and fully support a $300 price target and potentially above that as they execute. >> historical valuation, it is elevated, but it sounds like it's a mix of execution in the cycle. >> definitely elevated i will agree that these aerospace, the industrial conglomerates group are a favorite, but that doesn't mean that -- that they haven't already accounted for a lot of the good news, so that's what you never really know. look, boeing is at 56% year to date i think that that probably represents people recognizing a lot that have margin story and a lot of the other things people are pretty sure will happen over the next couple of years. >> we immediate to go. before crowded out for obvious reasons. josh, john, thank you both would love to talk more about it, but we've got to move on at this point. >> did we introduce mike >> yeah. >> you're mike stoly >> i felt introduced. >> always great

why is apple not one of the f.a.n.g. names and the tech sector is really an eclectic mix of business. amazon is what gen the 1960s and '80s where it's more of a conglomerate, consumer discretionary and apple is much more product oriented and google and facebook are much more web-oriented so you can't look at the entire sector through one lens you have to look at it through a variety of different perspectives i don't have strong expectations or any strong opinions on apple. i'm a little bitter about the fact that they are getting rid of the shuffle i was about ready to upgrade i think mine is 12 years old now and maybe i'll have to find one on ebay instead. >> i had a shuffle with a little clip those were great could put like 150 songs on them never had to worry about dropping it. >> i don't want to wear jewelry when i'm working out or carry phone when i'm working out i think people have somewhat lower expectations because people are waiting for the product upgrade, right waiting for the next iphone. i don't really have high expectations i'm not sure if investors have high expectations, and i don't thin

think about going back and -- >> i agree >> ge is widely -- >> i'm -- >> it's the same thing >> finally agreeing. your joints... or your digestion... so whymething for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. at where instead of payinging a befor middlemen,em. we work directly with family farms to deliver higher quality ingredients for less than you pay at the store. get $30 off at blueapron.com/cook you totanobody's hurt, new car. but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do? drive three-quarters of a car? now if you had liberty mutual new car replacement™, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. with liberty mutual new car replacement™, we'll replace the full value of your car. liberty stands with you™. liberty mutual insurance. >>> welcome back, everybody. home renovation website sweetene