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tv   Bloomberg Markets  Bloomberg  July 13, 2021 1:00pm-2:00pm EDT

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such as moderna or pfizer may not need an additional booster shot for years. the team found the shots presented a strong persistent immune response against covid-19. however, they say there is a concern about possible new variants that may turn up. more than half of all adults in the european union are now fully vaccinated. that is from a tweet by the european commission president ursula von der leyen. enough doses are set to have been delivered to vaccinate 70% of adults in the eu. white house national climate advisor gina mccarthy tells bloomberg that rebuilding the u.s. economy should include government and private investment in clean energy. >> we are not just going to be delivering electric vehicle charging stations. we are here to fundamentally reinvigorate the economy in a way that will make sense from a
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climate perspective, but makes sense from a people perspective. mark: mccarthy made the climates during the bloomberg sustainable business summit. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ >> it is 1:00 in new york, 6:00 in london, 1:00 a.m. in hong kong. welcome to bloomberg markets. here are the top stories we are following for you from around the world. the treasury yield curve narrows after hot june cpi data boost bets on fed tightening in 2023. more on the markets and results from a 30-year treasury auction.
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and we will recap what we learn from today's bank earnings and take a look at how president biden's executive order on competition will affect the industry with charles myers. and battery maker ses is set to go public in a spac that will value the company at around $3.6 billion. we will speak to the founder, qichao hu. quick check on the markets, we are sitting at record highs. the s&p 500 is up .1%. the nasdaq 100 is outperforming. the laggard is financials, the worst performing sector in the s&p, after results from j.p. morgan and goldman sachs were a mixed bag. traders did not do as well. the other highlight from today was the hot cpi print coming in ahead of expectations, jumping 4.5% on a year on year basis. on the back of that, we get a flattening of the curve.
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speaking of the bond market, i want to check on the 30-year yield, sitting at 1.99%, after a $24 billion auction moments ago. let's get more on this auction now. your take on the supply and the takedown we are getting? >> a little bit of a reversal that we saw this morning. you saw the long and get bid. it looks like that has been reversed a little bit as we see a little bit of good demand coming out for the 30-year auction. of course, this follows a pretty solid at three and 10-year auction. no surprise that we would get a pretty decent bid for 30-years. 61% to indirect bidders.
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bid to cover ratio at 2.2%. the direct bid was 16.6%. arrest going to primary dealers. pretty solid reaction. kailey: what do you make of the curve flattening today? were you surprised by the way the market reacted to that hot cpi print? >> it looks like there's a lot more positioning coming ahead of chairman powell's testimony tomorrow. there is a little bit of a surprise about why there is not such -- more of a positive reaction on the inflation front, especially given the positive auction we saw it early in the week. here we are talking about the fact that inflation is not good for the bond market. this is in line with the conversations we've been having. a lot of this will be positioning ahead of tomorrow. chairman powell's testimony, seeing if he will stick to his party mantra. these inflation transitory? kailey: will be interesting to
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see if he stays on message or begins singing a different tune. does the bond market believe that transitory messaging? when you look at breakevens, farther out, do they think these inflation pressures will abate? >> if you had asked me five months ago, i would say absolutely, the bond market is fine. now you are seeing a reversal in that trade. the 10-year yield reflation bets have turned around since the start of april. you do start to see this movement downward, continues to drop, even today. the immediate reaction on that print, yields higher, but then you saw the pairing back. you start to see people buy back into treasuries because that is the safety trade. then yields become anchored to the front line flattening of the curve. kailey: thank you so much. yields are picking up after that 30-year auction.
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now onto something that caught my eye today. the boe announcing britain's biggest banks will be able to increase shareholder payouts, after it removed restrictions at the height of the pandemic to make sure lenders could whether deep losses. but the move compares to a much more cautious approach by the ecb, which has cap payouts through september. a top official said it could take steps to ensure lenders avoid paying excessive dividends later this year. coming up, we will keep the conversation on banks. what we learn from j.p. morgan and goldman sachs earnings results, and how biden's executive order will impact the industry, with charles myers. this is bloomberg. ♪
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kailey: this is bloomberg markets, i'm kailey leinz. u.s. bank earnings tiktok today. j.p. morgan and goldman sachs both falling after their results. a bit of disappointment. we knew treating was going to not be as good in the second quarter but maybe we were surprised by how well the dealmakers did. >> we knew investment banking fees would prop up these investment banks, but that trading would be lower. that said, investors want something to latch onto. loan growth is so elusive. there are bright spots in that. for example, loans to high net worth individuals are moving higher. that should be a good sign for morgan stanley reporting on thursday. goldman sachs is also giving investors another reason to expect margins getting better, more fee revenue coming in, less
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market dependent revenue. it looks like a wait and see story. at j.p. morgan, you see costs arising as they look to pay people competitively, dealing with elevated volumes. but where is that profitability going to come from in the second half of the year? kailey: you mentioned the potentially positive read through for morgan stanley. shares are in the green while others are under pressure. what is the readthrough for other companies we will see tomorrow? >> it will all be about market share, fixed income trading, equity trading revenues. morgan stanley is the number one equities trading shop on wall street. we saw goldman sachs bring in more than morgan stanley before, so can they bring themselves back up? citibank and bank of america, we know the investment numbers are
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less. can they bring in more money from equity underwriting, debt underwriting and m&a fees, while still struggling with this net interest income environment? there are also the regulatory challenges, reshaping of the bank. kailey: we know that you'll be here to take us through all of it tomorrow. thank you so much. staying with the banks, how will president biden's recent executive order aimed at boosting competition affect an industry that's already done $47 billion worth of deals this year alone? with us to discuss is charles myers, signum global advisors chairman. before we get to bank mergers, i want your take on the broader m&a environment. the investment bankers did well in the second quarter. goldman sachs m&a revenue was up 83%. if the biden administration is cracking down on competition more broadly, how hard is a repeat performance of that going
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to be? charles: i think this executive order that the president signed on friday certainly calls into question the future of m&a activity on a large scale. meaning every new large m&a transaction will face greater scrutiny, whether it is the banking sector or any other sector. that may put a damper on m&a activity. if you are in the c suite, and you are about to make a major transaction, you may have to think twice, vet it from a regulatory point of view to make sure it passes muster. kailey: when it comes to bank mergers specifically, how much do you anticipate activity will slow, especially for some of the regionals which had been combining like crazy? charles: what the regulators
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will want to look at is, will it stifle competition? crowd out competition and therefore hurt the consumer, especially communities that are either less served by banks or communities of color. that is where regional banks will have to spend more time thinking about mergers. another area that banks made a huge amount of fees was in spac issuance. that is on hold because the sec is looking at some miceli practices. i would also argue that after the didi disaster, you will not see any more chinese ipos on u.s. markets for a while. that is not connected to the executive order. in totality, altogether, the second half fee outlook on both ipo and secondary offerings, as well as m&a, could be slower.
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kailey: interesting you mentioned the chinese ipo thing. huawei is looking to move its listing from the u.s. to hong kong because of those new rules. when it comes to the rules in the u.s., how quickly could this come to fruition? at one point does it start to make a difference? charles: executive orders in a way our directives. what biden did was very far-reaching, one of the most sweeping executive orders, with 72 different initiatives, directing a dozen federal agencies to look at the competitiveness of the u.s. economy across many sectors. it will take time for some of these changes to happen in terms of rulemaking, but in terms of actual activity, if you are a ceo thinking about any kind of acquisition or merger, you will already start to factor in what is being directed in this executive order before you make that decision.
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it could impact behavior relatively quickly. in terms of room making, it takes anywhere from three to six months or longer. i think it could dampen activity . kailey: when you look at regulatory risk in the financial sector, is this the greatest one, this focused on antitrust and competition, or is there something that is a far greater threat? charles: for the financial services industry, this is probably one of the top two regulatory risks. the other one is what is being done especially in the fintech part of financial services which has taken off because of covid. we have seen this acceleration of the digitization of financial services because of covid. we have all kinds of lot forms, retail trading platforms, other fintech platforms that are not tightly regulated.
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i think we will see more scrutiny in that space as well, especially -- kailey: it looks like we have lost charles. talking all things banking on this earnings day as well as what the picture going forward will look like. that was charles myers, signum global advisors chairman. battery maker ses is set to go public in a spac merger with ivanhoe. we will speak to the ceo qichao hu. this is bloomberg. ♪
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kailey: this is bloomberg markets. i'm kailey leinz. it is time for the bloomberg business flash. a look at some of the business -- biggest business stories in the news right now. pepsi report the fastest growth
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in years. others loaded up on ships and other snack foods. pepsico's second-quarter revenue rose 13% and the company raised its forecast. citigroup will let retail customers bent on stocks without paying fees. the bank is trying to expand its wealth business in the face of competition from silicon valley, discount brokerages, and peers. citi will make its products available for checking account holders before marketing it to other people. the cofounder of apollo management was passed over for the top job earlier this year. now he is laying the groundwork to start his own fund. he is meeting with recruiters to help build a team. the fund has a loose target of $5 billion. that is your business flash update. ev battery maker ses is set to go public by merging with ivanhoe capital acquisitions that will value the company at a
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combined $3.6 billion. qichao hu, as founder and ceo joins us. thank you for being here. why is now the time to go to the public market? qichao: the global megatrend is quite exciting. every major car company is moving away from internal combustion engines to ev. in order to compete, we have to have a big platform. now is the time to do this spac. kailey: where'd you put the capital to work, how do you do that? qichao: we have several projects with car companies like general motors, hyundai. the funding will go into building preproduction facilities in boston, shanghai, seoul, also hiring talent and building a much more complete ecosystem and supply chain. kailey: you mentioned the partnerships you have.
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are you looking to expand to other carmakers? qichao: yes. currently it is gm, hyundai, also working with chinese and japanese and german oem's. definitely it is a global megatrend. we plan to work with all the major car companies. kailey: i will get back to your business in a moment. i want to ask why you picked a spac, and why do you think ivanhoe picked you? it was looking at a number of battery makers. qichao: on our side, we didn't really want to do a spac but there was a lot of serendipity when ivanhoe showed up. they are different from other spacs. ivanhoe is a leader in the supply of copper and nickel, very important raw materials for the battery industry. there is a lot of strategic fit with ivanhoe. in terms of why they picked us,
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it's very simple. they asked us to send the samples to third parties and we came out on top in terms of third-party tested data. we came out as the best. kailey: let's talk about the product you made that may be made you attractive to ivanhoe, lithium metal batteries. how are they different? qichao: today's batteries in ev are lithium-ion, and they don't have lithium metal. they use a mix of carbon and silicon as the material. we replace that carbon and silicon with a lithium metal. lithium metal is the lightest metal on the periodic table. that makes the battery much lighter and smaller. kailey: how do you think that positions you to compete? the ev and battery market are growing but it is also getting more crowded. qichao: yes. we have a strong capability.
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one, among all the next-generation battery technologies, we are the only one that has demonstrated third-party testing data. fast charge, discharge, safety, all of that. all of that has been validated. number two, we have strong partnerships with key global carmakers, gm, hyundai, more down the road. that gives us confidence that it is not just an idea in a lab, but we can actually compete with others. kailey: how much marketshare do you think you'll eventually be able to capture? qichao: as much as possible. we are working with american car companies, korean, japanese, german, all of the leading companies in those geographies. i think we will capture a large portion of the market. kailey: i want to ask you a question about inflation.
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we got a really hot cpi print here in the united states. when it comes to your supply chain and the cost of raw materials, are you facing any issues with that? qichao: yes. in the ev battery industry, it eventually comes down to cost and the supply chain. there is a lot of volatility. that is why we partner with ivanhoe, companies on the lithium side. definitely things that we are sensitive to. we have teams in china and korea to manage the supply chain. kailey: is that going to lead to higher prices for your product? qichao: not necessarily. also at higher scale, the cost can come down. kailey: we have to leave it there. thank you so much for your time today, qichao hu, ses founder
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and ceo. i want to go back to the treasury and equity market following that 30-your auction. yields are reacting accordingly, how your. the 10-year yield is at 1.39%. the short and moved the most off of the cpi data. up three basis points on the two-year. four basis points on the five-year. the 30-year yield is sitting at 2.01%. the equity market, interestingly, we are still at record highs on the nasdaq 100, although it has retreated from the highs of the session, up .3%. the s&p 500 was at a record earlier on, now in negative territory by .1%. leading the losses in the s&p 500 is financials. that index is down about 1% after mixed bag results from
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j.p. morgan and goldman sachs. dealmakers doing quite well in the second quarter, traders not so much. jp morgan got a boost from releasing loan reserves which will only be something that will boost them for a limited amount of time. interesting to see financials underperforming here. of course, getting results from citi, wells fargo, morgan stanley on thursday. we had the curve flattening after that cpi print. now steepening as the dollar moves higher. coming up, we will dig into today's inflation print more and preview chairman powell's testimony with kathy botti and church with oxford economics -- kathy bostjancic with oxford economics. this is bloomberg. ♪
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mark: i'm mark crumpton with bloomberg first word news. the biden administration is set to warn american companies of
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the risks of operating in hong kong. bloomberg has learned those risks include china's ability to gain access to data that foreign companies store there. another concern is a new law that lets beijing impose sanctions on anyone who enables foreign penalties to be implemented against chinese groups. senate democrats are trying to find consensus on president biden's $4 trillion spending plan. the president met with budget committee chair bernie sanders who said "i think we're on the same page." democrats are divided on the size and scope of the president's proposal. it's intended to include a number of social spending and tax like provisions. the united kingdom's international trade secretary is downplaying the hopes of getting a trade deal between the u.s. and the u.k. before the end of the year. liz truss spoke with bloomberg. >> i have never set a deadline for any trade negotiation
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because the important thing is to get the right deal that works for both countries. i think there's a huge amount we can do together. the u.s. is the u.k.'s largest single country trading partner. i'm interested in getting the right deal that suits both of our countries rather than being in a hurry to do it. mark: she also said she would like to see easier travel from the united kingdom to the united states. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ amanda: i'm amanda lang. welcome to bloomberg markets. kailey: i'm kailey leinz.
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we welcome our bloomberg and bnn bloomberg audiences. here are the top stories we are following from around the world. we will discuss the economy with positive boss and church -- kathy bostjancic. pepsi sales jumping the most in a decade. we will discuss the surge in sales as the economy returns to normal. and we will hear from the bp ceo on the company's plans for a cleaner future. amanda: we are watching stocks, perhaps reacting to the bond market. we had seen equities led by tech in positive territory across the board. that was the subgroup of the s&p 500 leading the way higher. you can see a turn to the negative in the nasdaq. financials were weak on the day today. the culprit perhaps a tepid demand to the 30-your auction
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today. we are seeing a bit of movement at the front of the curve. there is your 30-year. we are seeing the same on the 10-year. while investors try to read the tea leaves on the cpi data, what that says about the transitory inflation, perhaps the bond market is weighing in. that cpi above expectations, both on the core and headline number. you have to go back to 2008 to see these kinds of numbers on the core. that may be partly what is being priced into treasuries. kailey: for what it's worth, commodity prices have been playing a role in the inflationary pressures within economies across the world. lumber was one of those economies that have skyrocketed on a year-to-year basis. that has come back to earth, erased all of its 2021 gains. at one point, lumber futures were as high as $1700.
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today they are at $640. i wonder if we will see that across more of the commodity complex and what that will mean for some of these pricing pressures. amanda: so interesting to see, as we always say about commodities, the cure for a high commodity price is a high commodity price. we have seen demand changing. we have also seen the supply side change. let's bring in kathy bostjancic, oxford economics chief u.s. economist. we keep having a similar conversation but it evolves as we go.
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felt like a disconnect between what the bond market is signaling on inflation and what the data shows. are we seeing a coming back together today with the bond market acknowledging this is really inflation here, it may be transitory, but it is real? kathy: great point, amanda. up to this point, markets priced in a little bit of inflation in the spring but then they eased off. today, we are seeing some trouble digesting supply yields going higher. this was a surprising number this morning. we had expected, most of us, some moderation, still a high number but moderation. now we have four months in a row, the highest increases of inflation since 1980. kailey: when we look at the forces going into these prints, used cars up warty 5.2% -- 45.2%. people say that will not last forever. are there other points in the data that you look at and say this pricing pressure may be more persistent? kathy: i think the service side of the economy we expected prices to bounce back as the economy reopens and you get the shift from goods to service consumption.
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hotels, motels, rental cars, restaurants. they are also facing supply constraints, both on the product and labor market. if we see supply come on and demand moderate, that should start to ease lower and be transitory. amanda: one of the conundrums for equities is, there is certainly pricing pressure, we can see it through the spectrum. the question for businesses is to they absorb it, and for how long before they have to go to higher wages, or higher prices because of other higher input costs? if they absorb the blow and keep inflation in check, profit margins suffer. kathy: there can be a sweet spot where businesses start to regain a little bit of pricing power, but we don't have runaway inflation, we don't have runaway wage increases. if you can keep that sweet spot,
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that will be positive for equities. if you don't get runaway inflation, the it doesn't have to be overly aggressive, interest rates don't have to rise in a meaningful way. all of that could be positive and still give us room for the bull market. kailey: i want to pick up on something amanda hinted at, wage pressures. we got data early this morning and early 9% of small businesses said they raised compensation because they have openings they are trying to fill. do you think that will become a greater inflationary force as we move forward? kathy: we don't think so. similar to the product market, we think that wages will rise in the labor market, but eventually as the supply of labor comes back online, somewhere around the ball that should happen with children going back to school, some of the benefits rolling off, hopefully, some of the health conditions remaining
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under control, although that is a risk. that the wage growth will moderate and not be a big problem for businesses or consumers. amanda: if we are watching for this question of the transitory nature of all of this, at what point would you expect to see these prices moderate? jay powell acknowledged things like used cars, lumber, which is already over. before the next fed meeting, one of his data points has showed to be transitory. are we talking about a month, two months? what are economists calculating in this post-pandemic environment? kathy: in our view, inflation will remain sticky and uncomfortable certainly through the summer and probably into 2022. we think inflation stays above 2%, a multiyear event. but we will ees from the 5% pace we have seen today. as you said, lumber prices have come down, and used car prices, which have accounted for over
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40% of the increase in core inflation, we are seeing some moderation. that said, we will still see some upward pressure as things normalize. hotel prices, owners equivalent rent, rental prices will catch up. we will have upward pressure from the service side of the economy. hopefully, the goods prices start to moderate any meaningful way. kailey: put it all together, what does it mean for the fed? will they have to act sooner rather than later? kathy: that is the key question. as you know, there's been a split at the fomc. core members have been more dovish, including jay powell, who will hear from tomorrow. then there are regional fed presidents who are much more hawkish. even the san francisco president daley, who is more dovish, said they may have to pair back qe by the end of the year. our view is they pulled back on
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the qe probably early 2022, may be the end of this year, but they don't start to raise interest rates until 2023. they will be dovish and cautious. kailey: thank you so much to kathy bostjancic, oxford economics chief u.s. economist. tune in tomorrow at 12:00 eastern time for special coverage of jay powell's testimony before the house financial services committee. i want to check back on the markets. after weak demand for that $24 billion 30-year auction, we are seeing yields shoot across the curve. back above 1.4%, nearing 1.41%. we are seeing it across the equity markets. the nasdaq 100 about to approach negative territory after being as much as .7% higher earlier in the session. the dow, s&p, and nasdaq each
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lower by a quarter of 1%. this is bloomberg. ♪
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kailey: this is bloomberg markets. i'm kailey leinz. i want to check back on the markets. we keep tabs on the action we have seen post 30-year bond auction. $24 billion being met with tepid demand. that has had a strong reaction in the bond and equity markets. s&p 500 down .2%. the nasdaq 100 also well off session highs, approaching flat territory. only up about nine points. in the treasury market, we have seen yields on the long and shooting higher on the 10-year yield.
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1.41% is where we sit. one stock bucking the trend in the equity market is pepsico, up 2.3%. dave wilson is here to tell us why. it has to do with earnings. dave: pepsico is actually the best performer on the day in the s&p 500. they came out with results for their second quarter. we should point out, does not quite follow the calendar. 21% growth in sales for the quarter. even if you back out currencies and dealmaking, you are still left with what they call organic growth of 13%. that revenue, as well as earnings, beat average estimates by the most in more than a decade. it was driven by a rebound in the beverage business, here in north america, and also by growing demand in the rest of the world. let's face it, at least in the
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u.s., people are going out, going to bars and restaurants, sporting events, concerts. as a result, that away from home business, which is a big piece of pepsico's beverage operation, you are seeing the recovery there. not so much for quaker, the serial maker. relatively small piece of the business, 3% of sales, but people are eating out more and therefore not so quick to make their cereal at home. at the same time you are seeing this growth, you are seeing profitability hold up. that is an issue for a lot of companies given higher costs, but you are talking 12% of sales in terms of the profit margin for the latest quarter. analysts looking for more into the next quarter, 13% growth. put that together and it is the best of all possible worlds. pepsico has been trying to cut
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costs. they have extended that program for three years and will throw more money at it, too. put it all together, things are looking up, especially the way the stock is doing today. amanda: dave wilson, thank you for that. when we come back, bp's ceo on his comments on the company's push for sustainability. we will bring you that conversation, next. ♪
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amanda: this is bloomberg markets. i'm amanda lang. the bloomberg sustainable business summit is underway this week. earlier, alix steel had a chance, about the company's transition to a greener future.
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in that hydrocarbon base because it is core to our strategy. without those hydrocarbons, we don't get to transition. the hydrocarbons provide the cash flow that is necessary to make sure that our investors get the return they deserve. they have been patient, it's time for them to get the return they deserve, make sure we have a strong balance sheet, and that we can invest in the transition. this will evolve over time, it is not an overnight switch that some people would wish it were. this is a complex transition but is one that i think our plan is hopefully very clear on, and that will play out over the coming years. >> do you think that oil majors like yourself that are making these tough calls on where to invest money, are you setting the oil market up for a super cycle, or do you think you can stay flexible enough to prevent that from happening while also spending capital and time into other investments? bernard: a lot of people are talking about our commitment to
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reduce production by 40% by 2030. that is 20% by 2025. even by reducing our volume, we will still grow our earnings and cash flow from that business through that period. why? we don't want to run the biggest oil business, we want to run the best oil and gas business. as you well know, that means you focus relentlessly on your portfolio, value, not volume. we focus religiously on margins. they will go up 20% on a unit basis over the next five years. this is a strategy of focusing on value creation, and that means we don't worry about volume, we focus on value. i think there is a good chance that oil prices will be robust and high over the coming years. i think there's a good possibility they will be volatile.
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we are not planning on them being high. we are building a company that is resilient to a low price. but i can assure you, if they are high, we have a portfolio that will absolutely benefit from that. because we have the share buyback program we have that says 60% of excess free cash is used for buyback purposes, that could result in material share buybacks over the coming years, if prices remain at the levels they are at today. alix: if you needed to, though, could you pick up the pace and produce more oil and gas if we needed to prevent a super cycle, or will discipline be the discipline? bernard: the discipline will be the discipline, in your words. we would do this 40% with or without an energy transition. we believe this is the right way to run a hydrocarbon portfolio, focus on value, focus on margin, take costs out of the business,
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digitize everything we can. i just came out of a meeting on digital and agile. we have what we think is the largest organization working in an agile way in the energy sector. 7000 people working in a structured agile way. decisions are being made 30% quicker. that is what running a good oil and gas business means for us. that means we can grow cash flow from that business over the coming years, even as we shrink volume. kailey: that was bp ceo bernard looney. you can catch more of that conversation as a part of the sustainable business summit which is underway this week. amanda: interestingly, a survey of canadians showing or than half of them think government focus should be on sustainable energy. one there think they should equally prioritize -- 130 think they should equally prioritize traditional energy. elon musk in court for a second
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day of testimony related to the solarcity acquisition going back to 2016. tina davis is with us for the latest. there was some drama in the courtroom today. give us an update. >> everyone has been watching the trial to see how elon musk reacts to this kind of questioning. he is in his second day on the stand. he is approaching the eight-aramark in terms of how much talking he's been doing about this case. he is really at the center of this trial. a trial was brought by a group of investors who said he forced through a purchase of solarcity, and he was a large shareholder, and essentially it was a bailout of that solar panel holder. getting some questions initially from his own attorney and then the past day from the opposing attorney, trying to figure out how much control he has over the board of tesla and whether he forced deal through. kailey: what is at stake for elon musk?
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he could be forced to pay that $2 billion back that they paid for solarcity. when you have 187 billion dollars, that is a drop in the bucket. why does it matter? tina: it is important for the idea of governance at tesla. elon is so important to the company, he is the face of the company. a lot of people would suggest the company doesn't exist without him. it is looking at whether or not his reputation is at all atrred by -- tarred by showing that he was not allowing the board to serve their independent function. amanda: given the fact that this seems to be adding to the argument for the acquisition, does this end in elon musk's favor? tina: he is speaking to a single judge, this is not a jury trial. this is a pretty obscure part of the legal world, but this is a
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court that handles a lot of corporate cases because so many people are incorporated in delaware. the judge -- he needs to basically impress he is not the sole person in charge of the company, that he has to respond to shareholders and is responsible to the board. we will see if the judge buys the case. amanda: thank you so much for being with us, tina. fascinating. we continue to watch markets here, including tesla selling off. a turn for the worst after that tepid 30-your auction. more on that through the afternoon. stay with the network. ♪
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mark: i'm mark crumpton with bloomberg's first word news. senate democrats have put
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legalizing marijuana on the legislative agenda. bloomberg has learned that majority leader chuck schumer, the finance committee chairman, and cory booker of new jersey would release a draft of their marijuana bill tomorrow. it would remove marijuana from the federal list of controlled substances. that could be a difficult vote for some democrats from more conservative states. texas democrats flight out of state temporarily blocked republican efforts to tighten ballot access, increasing national focus on an issue that is led by gop led legislatures. it denied governor abbott the quorum to vote on legislation in a special session he called after democrats walked out on the regular one in may. >> we took a solemn oath to protect the constitution of the united states and to protect the constitution of the state of texas, and that is why we stand united before you here today in preserving not only the democracy in texas but the democracy in the united states.


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