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tv   Whatd You Miss  Bloomberg  July 29, 2019 4:00pm-5:00pm EDT

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one is really expecting them to sit down at the table this week at all. things can fall apart and things romaine: you hear the closing bell. the dow jones about 0.1%. s&p down about 0.2%. nasdaq down about 0.4%. caroline: we didn't have bad volumes. 20 day average, up about 8%. nasdaq pre-much flat. keeping an eye on it today. the forecast is really trailing. romaine: i think there is just a much concern about the earnings picture for the small caps and how the rate picture will shake out. let's dive into the action with our market reporters. at the close, looking at tradefalling 3% later in
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all because of an announcement that it will cut 400 jobs from its marketing unit, one third of the marketing department globally. this happened according to an email from the ceo earlier today. is also falling close to about 4%. the coo is leaving. said theyders of lyft would not ira replacement ends -- not higher a replacement and instead delegate the responsibilities. largely expected the fed will cut rates. there's a 20% chance they could cut by 50. let's look at a pretty interesting chart that goes back
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five years. in blue, the fed funds future yield. in white, the s&p 500. correlatedtwo were until this year with the fed's pivot. we also see the fed funds future yield also possibly bottoming out which suggests jay powell has a delicate task ahead to keep both bond and stockholders happy. you see the big divergence there, that if yields were to should backup, it may take a bite out of the rally. romaine: beyond meet, one of the most popular companies, reporting earnings. it looks like it did beat on its quarterly numbers. it also raised its full-year outlook. the shared gaining about 5% here after hours. the stock is up about 800% since
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the ipo back in may. caroline: many felt that their overall outlook for the year had relatively conservative. they want to hear positivity from the ceo, to hear about the new joint ventures. bloggingt bloomberg is moment by moment the shares, it kind of says it all. some of the overall earnings-per-share numbers not looking quite so pretty. romaine: still with us is jason bloomberg'sand sarah ponczek beyond meat, risk assets in this market. with regard to the broader risk appetite or risk sentiment, do you think that will continue
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after we get this rate cut everyone thinks we will get. what happenedike in japan, with the rates so low, it forces the hands of institutions and individuals to risk assets, sometimes into the stratosphere of buying securities like beyond meat. individuals to act on it quickly, i think there will be a fair amount of appetite. caroline: it is such a crazy ride that beyond meat has had. the --n't look as though it does look as though the ceo remains relatively positive. launch new innovative products and invest in infrastructure and capabilities. the loss is still significant
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but they are now seeing full-year adjusted earnings positive rather than rate even -- than breakeven. flows thatsee the are currently shorted get hit? sarah: it has been a painful ride up for anyone who has been shorting beyond meat. however, you think about this newly public company heading into this earnings report. expectations were incredibly high and people were looking to see what they would do in terms of guidance. i'm sure there are plenty of investors at their breathing a sigh of relief. people keep saying, yes, there is a lot of hype, potential opportunity. they need to show that they can
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keep living up to these numbers. when you look at the valuation, it is unbelievable. it is unbelievable the scale that this company has reached. romaine: devaluations really matter anymore -- do valuations really matter anymore? inflation expectations still low, there's not a lot of faith that the fed will be able to raise those expectations materially. that would seem to sort of augur the idea that some of these aren't as rich as they seem to be. jason: in a low rate environment, where there are few alternatives, they get stretched. investors get dumb all over again even of a have history as though theyin even have history as a guide.
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i would caution people against throwing valuation out the window. stocks follow earnings. caroline: romaine mentioned te chs. alternative assets, is it time to look there given that you have $13 billion of bonds with negative yields? jason: for sure. when we are deploying capital now, we do it cautiously. sure, we have equity exposure. having 5%, 10% in alternative investments make sense. private equity as a general statement is getting pretty crowded, so you have to be careful where you deploy capital. hedge funds have risen to the occasion, everyone chasing the same trades. but i still think there is opportunity there. for sophisticated investors,
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structured solutions like that give youcd's some participation in the market with principal protection. romaine: it is going to be an interesting week, probably an interesting year. jason katz, great to have you here. alwaysse, sarah ponczek, with us and always smart. yeard meat with a full expected forecast above expectations. revenue forecast above expectations as well. we will talk about that more when we get to "what'd you miss? " this is bloomberg. ♪
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caroline: live from bloomberg's world headquarters in new york, i'm caroline hyde. romaine: i'm romaine bostick. joe weisenthal is off today. caroline: just off of record highs in the s&p and nasdaq. on an earningses beat. mylan, and a bloomberg exclusive, mexico's president amlo says rates are too high but he respects the central bank's independence. a deal that will reshape the pharmaceutical industry. theer, home to some of
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biggest brand names, will combine with generic drug maker mylan. one of our next guests save the deal will be a win for those companies. joining us now, bloomberg health care reporter and bloomberg columnist. your opinion is that this kind of is a win-win? >> yes, that is what i came away thinking. with pfizer, they get to disassociate themselves with medicine that has begin to drag on their growth. on growing in the future instead of always looking to be like a few years of sluggish growth. land -- on the mylan side, they have had a series of
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run-ins with congress on investigations of everything from price-fixing. looking to diversify internationally in terms of their product profile. the mylan side, three of the drugs, lipitor, xanax, viagra, aren't they already generic in some way? to expands looking its portfolio. about a year ago this month, the company announced a strategic review of its business. it lost three quarters of its value over the last few years. evaluateny needed to its businesses. meanwhile, it is also dealing with $13 billion in long-term
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debt. caroline: the executive leadership and how that falls, is that music to mylan's years? riley: it is a complicated one to explain and describe. be actingairman will as the executive chairman of this new entity. i think there are some questions that remain about how that is going to shake out. ceo, his strategy has been, for the last few years, to really focus on innovative medicine. they are rolling this off the balance sheet and cory is going to take control of this new entity. romaine: i thought it was interesting how they structured
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this deal. i wonder if other companies in the space will look at what they did and say, maybe we should follow suit. we have seen other companies selloff individual businesses. a big example, eli lilly. what is unique here is that it is actually selling off drugs that they develop. the question is, if you do that, you might get a return on them, but you are also losing substantial cash flow. merck, they do have a subset of kind of interesting older branded drugs that are dragging on sales. if they get rid of those, they are almost entirely dependent on one medicine. that is a pretty scary proposition and i think why they
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might not follow pfizer even though you hear some analysts saying they should move on. caroline: the hope is that you can just concentrate on earnings. how is it looking to you? time: it is an interesting to be covering the sector. i think a lot of eyes are looking toward washington. we are seeing legislation being proposed out of the senate, bipartisan legislation. it is specific to drug prices and that would be a headwind for the industry at large. alsong forward, we are china,g about trade, growth opportunities. romaine: going back to the m&a for a second, even prior to the
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pfizer deal, there was talk about m&a activity. do we see more of that, particularly with the mid tier companies the biotechs, will that continue? pfizer has said that will continue. but this focus on cancer therapy. the bristol deal was a cancer deal. eli lilly made its own play their. there is a trend here that we specificg with m&a for high-growth, high-margin cancer therapy that we likely will see play out further. is bloomberg health care reporter riley griffin. caroline: we want to bring you up-to-date with some of the exclusive headlines we are
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getting from mexico. amlo saying that the oil company won't get emergency funds. also talking about migration, saying that migration flows won't improve without a development plan. mexico can't accept the third country deal. shouldo trump, trump tone down his rhetoric toward mexico. mexico is not growing as expected but no recession is inside. make sure to catch our interview with the president of mexico later today.
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caroline: time for a look at what stories are trending.
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terminal users are reading about that hired unit individuals convicted of crimes. allegedly, they didn't screen $1.25 millione a fine. , a shadow of jeffrey epstein two-decade reign as the right-hand man to l brand ceo les wexner. tictoc on twitter is reporting that a survey found 30% of u.s. hitnts -- u.s. student debt 1.6 trillion in the first quarter of 2019. parents say they will not limit their child's school choices payment.
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romaine: the earnings for beyond meat are out and the company is raising its forecast for full-year revenue. it had previously seen a range of about 210. 2q numbers also coming in slightly above average. we are bringing in bloomberg analyst jennifer from princeton. the numbers seem pretty decent but the expectations that have been built into the share price, they were so high we could expect some kind of negative reaction, right? jennifer: when you look at what the results came out with, obviously they did well with revenue. the question of whether they will have positive -- the fact that they will have positive,
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that is good news. whether it can be sustained going forward. caroline: talk to us about where you want to hear growth being talked up. in particular, plenty of partnerships being announced, most lately with blue apron and the like. what do you want to be hearing? jennifer: what i want to be hearing is that the -- docturing capabilities they have the ability to fulfill that demand? the cost, the protein, and the cost of the manufacturing itself. romaine: probably one of the reasons why the stock is down, the company will offer 3.2 5 million more shares of common stock into the market. making that announcement as it announced its earnings today.
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obviously taking a little bit of advantage of the run-up in share price. itself,at the business this is a company that has pa tties and sausage-type links. at the end of the day, this is a food company and there's only so much you can do with these, right? jennifer: yes, but they said they are doing a bacon replacement one of those ingredients that most people love. don't forget, they are also improving the existing product's, how they taste, how they feel in your mouth, to keep generating that interest from consumers. caroline: we are seeing beyond meat falling after hours. the company will be offering a
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quarter of a million more shares for sale. in terms of how long this company has to be lossmaking, does anyone worry about that or is it all about revenue, revenue scaling, partnerships, and global growth? jennifer: that is a great question. right now, the focus is really on revenue, the march, the expansion of product sales. everyone understands that they will not be profitable but as long as they continue to edge their way toward profitability, so they show they are being cognizant of cost control, i think investors will give them some leeway. romaine: obviously, impossible foods seems to be there most direct competition. what are you seeing? jennifer: definitely impossible
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foods is a direct competitor. you see the management team kind of making, -- making comments that indicate that. the larger food companies, tyson, nestle, they are coming out with alternative based meats as well. landscape fore this sector is only going to get increasingly competitive as we go forward into the end of the year and next year. romaine: thanks for joining us. a quick check of your latest business flash headlines. consumers are looking forward to a $125 settlement check from equifax. however, hackers are using the claims as another opportunity to steal personal information. the federal trade commission warning twitter users to be wary of fake websites. billions of dollars writing on
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apple's third-quarter results. the iphone maker is the second largest holding across u.s. etf's behind microsoft. tesla is stepping into the streaming game. ceo elon musk announced drivers will soon be able to stream netflix and youtube from an-car displays. the option would only work if the car is not in motion. caroline: one to debate. coming up, mexico's president says interest rates are too high for the country's slowing economy. this is bloomberg. ♪
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mark: i'm mark crumpton with bloomberg's first word news. the trump administration says the government employee health plan will tighten rules on opioid painkillers starting this fall. they's -- it is the world's largest job-based health plan, covering an estimated 9 million people. under the new policy, the initial prescription will be for a seven day supply instead of up to 30 days. the president this weekend issued a blistering attack on elijah cummings, calling the black maryland democrat a bully and calling his district a
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"disgusting, rat and rodent infested mass in which no human being would want to live. the comments came in a series of three twitter messages this weekend. a prominent defender, the reverend al sharp, traveled to baltimore to hold a press conference. sharpton: donald trump have known each other for years. he can say what he wants. calling me a troublemaker, yes, i make trouble for bigots, i made trouble with him for central park, i made trouble with him for birther is him. if he really thought i was a con man, he would be nominating me for his cabinet. mark: marilyn governor larry hogan, a republican, the new
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chairman of the republican governors association, announced the president's comments. he said, "i think enough is enough. the shooter who attacked a northern california food festival used an assault style weapon and opened fire on three local police officers who returned fire and killed him. manilled a boy, girl, and in his 20's. at least 15 other people were wounded. bridgeville, -- northern brazil, 50 prisoners were killed in a riot. betweens say a fight criminal groups erupted early today. no members of the prison staff were injured. was in defense minister washington today for meetings with the new defense secretary mark esper's. he said it was fitting that
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egypt is the first foreign delegation he is hosting in his new role, "given the long-standing ties between the two militaries. >> i especially welcome your insights today on how we can expand our counterterrorism cooperation. more broadly, i'm looking forward to hearing your views on regional security. mark: he also offered his condolences for the recent losses sustained by egyptian forces. global news 24 hours a day on powered tictoc on twitter by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. bloomberg editor-in-chief john micklethwait sat down with mexico's president, andres manuel lopez obrador in mexico city. amlo discussed the country's
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economy. he said rates are too high but he respects the central bank's independence. >> one thing is what is desirable. the other thing is what is possible. i would like that the bank of mexico not only take care of inflation, but also think about growth as well. what the talking about bank of mexico is doing. they are more cautious. they are more cautious about inflation. that is not a bad thing. this is not the wrong thing to do. i'm not saying that. but, it is important to lower rates to encourage growth. this is an issue that i'm leaving for the bank of mexico to decide, because we trust we
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are not just going to be able to grow, but also to develop. not only growth, but development , because growth, that is what we want to change, and to create a new paradigm. growth is creating wealth but not necessarily distributing wealth. development is growing and distributing, so our administration, our government, what it is trying to do better than before is distributing income. scarce,ough growth is little growth, there is better distribution of wealth, more well-being. bloomberg'st was
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john micklethwait speaking exclusively to mexico's president, andres manuel lopez obrador this was -- andres manuel lopez obrador. this was an interesting discussion. i was there last year when he won election. there was a huge groundswell of support. since then, you have seen him wrestle with these challenges with the economy, dealing with corruption. it is kind of interesting to see -- it is always easy to sort of rile people up but, at some point, you have to deliver. caroline: we are expecting data out of mexico later this week. we will see him call upon the central bank to ease his woes to
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a certain extent. trying to fend off trump in terms of rhetoric against mexico, saying they won't accept third country deal with the united states. romaine: hugely important country obviously to the u.s. and really too much of the trade here in north america. we will have more of that interview. check out more on bloomberg daybreak australia and daybreak asia. president trump renewing his attack on the federal reserve this week declaring a small rate cut is not enough. they are expected to announce a rate cut by a quarter percentage point. , aning us, tom dooley bloomberg opinion columnist and university of oregon professor. much of the market has sort of looked already to july 31 and beyond it. they are looking for 25 basis
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points on wednesday, maybe even 50. do you think that the fed will sort of meet the market where it wants it to be. >> the economy has actually been doing fairly well this last quarter. of the kind of signs widespread distress we would think of is consistent with a recession. the fed is viewing this as largely an insurance cut, not the beginning of a large-scale easing cycle. caroline: should we hear that tone coming from the leader of the fed on wednesday or do you think jay powell needs a more subtle approach to the market.
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>> i do think it will have to be a subtle approach, dealing with the communication here. reason wepart of the are seeing some buoyancy in financial markets in the last six months is the expectation we will get some easing going forward. disruptl not want to that soon. they would rather watch the data .atch up a little bit let the data do the talking rather than force an opinion that they are not ready to hear. you do want to see a message where they are prepared to cut more if circumstances require it. romaine: it seems like the messaging we have gotten from the fed has done part of the job
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that maybe they want to do. itself, of the rate cut cost of capital really hasn't been an issue here. points going to cause businesses to start revving up spending more than they have already? tim: to think back where we were in september, financial markets can tight, mortgage rates much higher. the expectation that the fed was going to ease was enough to start putting into play a certain amount of easier financial conditions. i think they have to follow through on that. it might seem like 25 basis points, that's not a lot. i think if the fed didn't do that, we would see a tight ofugh -- a tightening financial conditions.
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caroline: does the fed care so much about re-anchoring inflation right now? tim: they care about it but they are not worried about being inflation to hide. inflation has remained fairly low. the fed has really been wrongfooted on that issue for a number of years now. if financial markets were tighten by the end of last year, they would be airing on a two -- on a too tight policy and withoutng recession, the reason to do that. maybe being easier on policy is the less costly option. caroline: tim duy, thank you. another key central bank this week, the bank of england.
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the pound, its lowest level in two years. boris johnson and his cabinet stepping up preparations for a no deal brexit. we see the know and to the pressure on the british -- the no end to the pressure on the british pound. one phrase amuses me. a leading business chief ward trying to get ready for a new deal was like driving at a wall at 100 miles per hour and preparing by fastening your seatbelt. romaine: you see a lot of worry, but comparing it to what we saw around the referendum, it is a little bit more subdued. it will be interesting to see as they get closer to that october 31 deadline. it looks like at least today that we will be falling out of the eu. caroline: coming up, all new
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debit card, a return to the gold standard. more on u.s. gold backed debt card rollout, next. this is bloomberg. ♪
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caroline: they say that all that glitters is not gold. in this case, it is. anew debit card and app from u.k. based fin tech company called glint. -- today, 50,000 app downloads. let's welcome the founder and ceo of glint. what sparked the idea?
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realization in the last financial crisis that -- the dollar in the pound have lost 80% of their value in my lifetime. a burger in 1971 would have bought you $.55. a gram of gold in 1951 would have bought you two burgers. 12.y, it buys you the ability for gold -- everyone tells me, gold always holds its value. romaine: part of the appeal of gold is the physical nature. i'm holding it, it is mine, and when the apocalypse comes, i have my bag of coins ready to go. essentially, the customers are putting trust in your business to be able to essentially borrow
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against their holding. is that how it works? jason: there is no credit involved. you can buy one sent worth of gold or millions of dollars in gold. more access in the market. you have allocated legal ownership of that gold. it is stored in a vault in switzerland run by brinks, one of the most reputable custodians of gold in the world. we are partnered with people like mastercard, lloyds. those companies, the auditors. they all want to make sure that the gold is there, that the amount of gold that we say is there is there. it is solid as well. with somee a problem of the digital currencies. gold is trusted all over the world. caroline: you are speaking to a man who collects gold coins, by
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the way. you said earlier that gold never loses its value but if i had bought it in 2011 and sold in 2015, i would have lost 40%. that's not true, it goes up and down. do you expect people to go in and out or use this as a long-term store of value. money is something you save and spend. we want to give people choice. in the app, you can hold dollars as well. with your card, our plastic card and solid gold card. caroline: people will be carrying it around with them? jason: you want to feel it. you have the choice. you can move into whatever currency you want, the dollar or the gold. i see gold as the golden
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constant. it is the confidence in the paper dollar or the paper pound that is fluctuating over time, generally down. thank you very much, founder and ceo of glint, jason cozens with his gold card, literally. london stock exchange jumping to a record high after the company confirmed talks to acquire refinitiv. the company says it will issue holdersith refinitiv receiving about one third. bloomberg lp competes with that company. citigroup is preparing to cut hundreds of jobs that it's trading division as revenue falls. . jobs acrossslash fixed income and stock trading
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business. 100 jobs in its equity unit, which would amount to almost 10% of that division. executive shakeup at lyft. jonathan neil is leaving, according to people familiar. before joining lyft, he was a deputy to elon musk at tesla where he served as president of global sales and service. caroline: coming, another weekend of teargas and violent clashes in hong kong. china warning that the unrest has gone far beyond peaceful protest. this is bloomberg. ♪
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asia.e: now, to hong kong had another weekend of violent protests with at least 40 people arrested on sunday. the hong kong and macau affairs office, china's top agency
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overseeing the former british colony, responded in a statement today, condemning acts committed by radical elements. >> they crossed the redline of the principle of one country, two systems, and cannot be tolerated. romaine: bloomberg's shery ahn joined us right now. is this really widespread or apples stirring things up? shery: the strategy is very different from what we saw five years ago during the umbrella movement protest. first, these protesters wearing black shirts moved east toward the central business district. then they started moving west and then they started splitting up in two.
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it is really overwhelming, the police force, where they can look ahead to where these protesters will be. makeve already seen them appearances in these areas famous for chinese tourists. it has taken unprecedented shape and form. caroline: very high-profile response. we already sound clip from beijing. they haven't really seen a foreign press briefing. shery: that is really interesting because this was the first briefing from china macau and hong kong affairs office since 1997. it was a pretty historic briefing there were lots of jitters going into this, what will they say? what was really interesting was also what they did not say. they didn't talk about military intervention.
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when the official was asked the question, he sidestepped it and said there are clear rules and kong'sic law, hong constitution. that really gives great latitude to the chinese government. still, there were no open calls for government and -- government intervention or any huge policy proposals. we did get more support for chief executive carrie lam which was in itself surprising. romaine: let's talk about the market reaction. it was down 1%, the hang seng index, but it pared back some of those losses when they reiterated the one country, two systems in hong kong. of course, when we talk about
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expectingy, we are quarter gdp numbers out on wednesday. we have already seen the economy fall below that 1% growth level for quite some time now. caroline: we have actually heard appeals to the u.s. from hong kong. shery: appeals this time around from a superstar from the umbrella movement government to stop selling riot gear to the city. caroline: many hope for peace. we will see how it unfolds
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tonight. thank you. don't miss this. apple first reports earnings after the bell tomorrow. romaine: eli lilly and merck report second-quarter earnings. bloomberg technology is up next in the u.s.. this is bloomberg. ♪ this is bloomberg. ♪
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♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." a bloomberg scoop, a bumpy ride for lyft. why the company coo is leaving and why the founder plans to split up the job. trade commissioner joins us to tell us why she voted against the fcc -- the ftc's


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