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tv   Bloomberg Markets Americas  Bloomberg  February 16, 2018 2:00pm-3:30pm EST

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we are live in bloomberg world headquarters in new york over the next hour. move.r's u.s. special counsel robert mueller unveils the details of a widespread and coordinated campaign by russians to influence the u.s. presidential election in favor of donald trump. that is our leading story right now. let's get more on the breaking story. mueller has announced a guilty plea for a california man, that is the latest development. we want to bring in kevin cirilli, our chief washington correspondent from our washington bureau. tell us a little bit more about the washington men who pleaded guilty? kevin: this was announced in juxtaposition with the indictment that came out against the 13 individuals from russia as well as the three businesses. we do not know, for example, which this individual, who has
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announced a plea deal with the u.s. authorities, is in fact someone who worked to rapidly -- workeda, as it directly with russia as a russian actor, or who considered himself an american. we will bring you those details this get them, but bombshell indictment. republicans seething on the fact that they feel there was nothing in here to to directly assess whether president trump nor his campaign was aware of the involvement of russia meddling, but the indictment be on the politics of this, president trump has been briefed on the indictments and we are awaiting some kind of statement from the white house. fors said to be in florida the holiday weekend. that is the politics. on the policy front, from a broader, historical perspective, this is building on the government's case against russia for their meddling in very clear terms. this is something that began at the end of the obama administration and that the u.s.
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intelligence community has seized upon in the early year of president trump's first term in office. on a broader policy front, there is without question, time and time again here, critics -- questions about how social media companies, most notably, facebook, twitter, and instagram , and how they were able to be utilized by russians to essentially divide americans through social media on everything from race, religion, and greed. -- creed. inie: whether or not those the ministrations were aware of what was going on, obviously the attempt was to have an effect on the election. the question going forward is what do we do about it? and have we heard anything from the white house or from congress as of yet? this is all breaking moment butnt -- moment by moment, have we gotten any reaction is to actions to take? kevin: i have been speaking with
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several sources who work with president trump, who work on the inside with this administration. all of them are seizing on the notion that there is nothing to see here, as one source put it, in terms of any possible evidence of collusion. immediately, republicans seizing on the word unwittingly in this more than 50 page indictment about those who were discussing the election with these russian folks. on the flipside of that, to your point exactly, reading this indictments -- russians are organizing through facebook groups and instagram accounts, rallies across the country, anti-hillary clinton rallies, anti-hillary clinton sentiments, lock her up sentiments. immediately following the election day, they had a "trump is not my president" rally. clearly they are trying to divide americans among any way they see fit. there was no question they were very much against hillary during, spreading that
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the campaign, that type of rhetoric. mr. roden sign -- mr. rosenstein saying moments ago that there is directly no evidence that any trump campaign official new -- knew they were talking with anyone from russia. according to the sentiments, russians were using false identities both in how they paid for their account on social media platforms, and also in their one-on-one meeting as far back as 2014. so you have that happening, and mr. rosenstein also saying at this press conference that this ,s a warning to americans particularly political folks, that not everyone is who they say they are. i don't really know how else to put it. this is like a political frill or -- thriller russian spy novel run amok. julie: just to be clear, there is nothing in this indictment about actual physical meddling with ballots, for example. it seems like it is difficult to
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unpacked what effect -- clearly, this could have had an effect on the election, right? difficult to empirically prove one way or another what that affect was. kevin: exactly. there is no evidence that is presented in either of these investigations on capitol hill or by the intelligence community that there were any votes that were impacted by this. mr. rosenstein going out of his way to say that at the press conference, when he laid out these cases. that is point number one. point number two becomes how do we answer your question directly? how to you define this and how you address it moving forward. president trump, at least until now, is yet to endorse the findings of the intelligence community. this narrative and this case against russia and their involvement in this has been something that has been thisulated both now with current justice department and also at the end of the obama administration.
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look, the investigations and the hearings on silicon valley are going to continue. republicans, most noticeably senator lankford, an ultraconservative and someone who very much supports the trump policy agenda, has really gone after the justice department to do something, and think back the other week. there was criticism that the treasury department did not go after russian financial institutions aggressively enough . how will russia respond and how will the president communicate what the latest results of this -- we just don't know. scarlet: we will get a perspective from russia shortly, but i want to end with you here on what you discussed in regards to social media. facebook, twitter, those companies have started to see a lot more pushback from congressman in washington -- en in washington. now according to this finding, that not only did russians try to support donald trump, they were against hillary clinton,
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and trying to bolster senator bernie sanders as well. what support is there from the democrats and republicans when it comes to forcing facebook, forcing the likes of twitter to do more? now you have both sides of the aisle looking at the damage that has been done. kevin: i spoke with a source earlier this week who works frequently as a lobbyist with the tech community who said essentially -- first and foremost, facebook, instagram, twitter just don't get it, this sense of urgency and the regulatory kitchen sink that could be thrown at them over the span of the next decade as folks are really sifting through this. the second point is that look, there is no evidence that any vote was directly impacted by this, but the notion in terms of disclosure for how these types of political attack ads were being published is just so opposite of the regulatory structure set up for american candidates that have to disclose their own political
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advertisements. when you look at an instagram accounts, whether it is against trump, pro-sanders, pro-trump, no matter what, the notion that a foreign actor was paying for that post, for that political ad and not disclosing it is the bedrock of the political disclosure debate, the foundation of it that we are headed towards. lots of questions for facebook. indeed, and we will keep asking them and so is congress. evans a really in washington. as we said, we will give the russian perspective. for more on this developing story, let's bring in our guests, on the phone from moscow. what isto start with the russian reaction. are we hearing anything from the ministrations their? >> we are hearing some official reactions. the foreign ministry spokesperson has just posted on facebook her response.
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an officialseen as russian response. she is calling the allegations completely absurd and is saying how can the u.s. alleged that just 13 people were able to change the outcome of the elections in the u.s.? 13 people against billions of dollars in the situation, the services in the u.s.. she said that these allegation is -- allegations are completely absurd and nonsense. scarlet: do we know anything about the 13 russian asset nationals or three russian entities? do they ring a bell in any way? i believe we do not have her with us. we will try to get her back. she is joining us from moscow, so maybe they've fixed the phone line there. mention sending that our assignment desk sent to me, that one of the individuals named in the indictment was a st. petersburg businessman
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dubbed "prudence chef," because his restaurant and catering chef,sses once -- putin's because his restaurant and catering businesses once hosted prudence embassy. he said americans were impressionable people. they see what they want to see. i have great respect for them. i am not at all upset that i ended up on this list. if they want to see the devil, let the the end. -- let them see it. scarlet: in the meantime, let's get a check on how the markets are faring and moving on these developing stories. abigail? bombshelln these indictments, let's take a look at facebook. these are the shares of the social media giant, down one point 6%. it has been down all day, but we see around the time of the announcement, 13 russians and three companies for hacking and lower,a sharp leg facebook lower, because the idea
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of facebook being used by those russians for some of the hacking administration of the elections for the purposes. these shares lower, and a reversal for the major averages. gains, the dowe now up just one quarter of 1%, and the tech heavy nasdaq, being weighed on by the likes of facebook now down slightly, just a bit of a reversal after this big week of gains. speaking of gains on the week, let's hop into the bloomberg and take a look at what is happening for the s&p 500. we see over here the s&p 500 after two massive down weeks, the worst week since the beginning of january 2016, the s&p 500 up 4.6%. it's best week going all the way back to 2013, but we see swings like this sometimes, it suggests more of the same could be ahead
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either for the upside or the downside. this trading action is very similar to 2011, one of the possible triggers for the selloff we saw two weeks ago. showing the s&p 500 had been well above the 200 day moving average by about 15%, touching down almost -- almost touching down to the 200 day moving average. this is something similar that happened in 2011, touching down, bouncing higher, and going back overboughtese conditions and violent moves. the s&p 500 both -- moved below by 200 day moving average almost 50%. that is something to keep in mind. -- 15%. that is something to keep in mind. the vix has been on pace all day, and we see it is now a little bit higher, up 2.5%, and reflecting some of the uncertainty about these headlines, the indictment in washington, these big investors
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perhaps positioning, especially ahead of the long holiday weekend in the u.s.. we have had -- if today ends uprising, six straight sessions of gains for the major averages, so that is a context here. thank you, abigail. let's check on the first word news with mark crumpton. mark: as we have been reporting, special counsel robert mueller has unveiled the details of a widespread and corrugated campaign by russians to influence the u.s. presidential election in favor of drawn old donald trump. the deputy attorney general rod rosenstein described the sweeping, years long, multimillion dollar conspiracy by hundreds of russians aimed at criticizing hillary clinton and supporting senator bernie sanders and mr. trump. >> this indictment serves as a reminder that people are not always with a appeared to be -- who they appear to be. alleges thatt
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russian conspirators want to promote discord in the united states and undermine public confidence in democracy. we must not allow them to succeed. mark: the charges are the most direct allegation today of the legal russian meddling in the 2016 election -- of the illegal russian meddling in the 2016 election. the first funerals are being held today for the victims of the parkland school shooting. two students. another service is scheduled sunday for 14-year-old jamie gutenberg. senator bill nelson told reporters outside the high school that he is continuing to work for changes in gun laws. senator nelson says that the florida legislature also bears some responsibility, adding "lawmakers could outlaw assault weapons in the state." >> maybe this will be the turning point. maybe the students speaking out so boldly, as they have on
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national tv, maybe the parents crying out and speaking so boldly, as they have, that maybe this will be the turning point. because, in fact, enough is enough. calledenator nelson also on president trump, who is traveling to florida today. the national legislation will be hard to pass unless the president supports it, and changes his position on assault weapons and background checks. germany, in israeli prime minister benjamin netanyahu met with the yuan secretary general at the meat -- you and security general -- secretary -- un security council -- secretary general. thate prime minister said israel captured from syria in 1967 will stay in israel he hands forever.
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global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. scarlet? scarlet: thank you, mark. what a week. u.s. stocks looking to cap their best week since 2013. if you look at the industry groups in the s&p 500, all 10 are higher for the last five days. turnaround after a violent selloff the week before. technology, finance roles -- financials, and industrials up by 4.5%, even though the worst performers were the bond proxies, gaining at least 1.5%. for the s&pest week 500, going back to january 2013. this is the best since december 2011. torlet: we will continue monitor. there are almost two hours of trading left. this is bloomberg.
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♪ scarlet: this is bloomberg markets. i'm scarlet fu. julie: i'm julie hyman. u.s. equities have recouped their losses, and are on pace for the best week in five years. at the moment. at one point, it was as much as 2011. if you look at the next, it has come back down to below -- or should i say right around 20. still up on the day, but at that 20. how long can this relative calm last? joining us with more is lori cal guests, and her end of the year pro target is -- seeut she does seem sustained higher volatility is a risk to that. talk about the outlook for volatility. are we in a new volatility regime? >> we have to get used to a
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little bit more volatility than we have had in the past. i would expect to see traditional spikes in the vix this year, and 25 is the threshold you have to watch. going back over time. if the average level of the mix for a given year is above 25, markets do not go up. if you stay above that, you tend to see pretty solid gains. the question is will the volatility be sustained at the high level? we think you will see more ups and downs. rates andhat about stocks? it has been a confusing few weeks. you had the wage inflation sign that stents -- sent stocks down, and we had cpi and stocks went up. what are you chewing off of? moree way to potential is about the potential hit to margins. the issue with rising rates are gains in the equity market are more dependent on earnings growth. you see them flattened out or compress a bit, so you do not get multiple expansions when rates rise. stocks can still go up, but only as much as earnings growth permits it.
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and people shrug off the cpi itself. scarlet: talk a little bit about what it means if we do get more sustained volatility? how do people go about protecting or hedging themselves? you would have thought that they could go to treasuries as a haven, but during the initial part of the selloff that was not really coming to fruition for them. they had to look elsewhere for ways to hedge. you see that changing as a result of this new era in which volatility spikes will be more frequent? lori: i think the most exciting conclusion about the higher volatility in the equity market markets a better for active managers. it is better than buying passive vehicles to get you through those rough times. julie: we have to leave it there, unfortunately. of rbc capital markets. a lot of breaking news today. we will have you back soon. from new york, this is bloomberg. ♪
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♪ we continue with our top story.
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u.s. counsel robert mueller unveiled the details of a widespread and related campaign by russians influence the u.s. presidential election in favor of president donald trump. let's bring in whitney o'kelly, executive editor of financial investigations. tell us a bit more about what we learned here, because this came as a surprise to many people. whitney: not much of a surprise. veryve been looking closely at the u.s. special counsel and what russians did during the campaign. the sweeping nature of this and the details, i am trying to work through them myself. sweeping conspiracy by the russians to influence the presidential election, laid out in extraordinary detail. one of the things that strikes me is they misused a lot of american companies. companies like facebook and instagram and paypal and twitter were unwittingly used with fake accounts, fake personas or whatever else. merlet: what has also struck
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is how the russians seemed to target minority voters in particular. allegedly there were efforts to suppress minority voters, force example, fake accounts that were black lives matter or black activist accounts, but it seems like it was a pretty pervasive effort into what is being painted in this indictment. whitney: hundreds of people engaged in a variety of actions. it includes social media, actual activities on the ground, and thosere set up, continued after the campaign, even after trump won the election. they were still trying to drum up support. so i think the fact that this continues is one of the most startling things. in recent days, we have heard intelligence officials talk about how russia is already getting ready for the midterm elections, and this shows what is going on and what we need to be thinking about. scarlet: no response yet from silicon valley companies like facebook or twitter on what has been found in this indictment. we will monitor.
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bloomberg executive editor whitney o'kelly, thank you. let's get a quick check on the markets, which did see a bit of a letdown after the headlines came down. littley are trading, changed. remember, with the exception of the tax cuts, we have not seen much of a reaction over the past year or so in u.s. stock markets to political headlines. julie: and this threatens to jeopardize the five-day rally that we had coming into today, so right now it looks like we will and without that six-day advance. scarlet: you know everything can change in 90 minutes. julie: it is so early. from new york, this is bloomberg. ♪
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♪ bloomberg -- scarlet: from bloomberg world had orders in midtown manhattan, i'm scarlet fu with julie hyman.
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let's get a check on the first word news with mark crumpton. starting with the developing story with russia. mark: deputy attorney general of rosenstein says the goal 13 russians and three entities charged today was spreading distrust of the 2016 presidential candidates and the u.s. political system. the indictment, brought by the office of special counsel robert mueller, alleges that russians used bogus social media postings and advertisements possible -- fraudulently purchased in the name of americans to sway political opinion between a race of donald trump and hillary clinton. it fbi today disclosed that fails to follow-up on a tip about the 19-year-old suspected onman in wednesday's attack a florida high school. a statement from the bureau says that a person close to nikolas cruz contacted the public access tip line on january 5 two report tocerns -- january 5 report concerns about him.
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antonio guterres called on policymakers to not miss out on peaceful resolution in the korea's over north military program, saying that a military solution would have catastrophic consequences. >> i believe the united states is ready to do so. it is absolutely essential to keep the pressure on north korea and convince north korea it is vital for them to come to the table and be able to find a way for these these peaceful agreements to be possible. --k: and nato secretary nato's secretary-general warned that all allies are within the range of north korean missiles. european'sliament -- parliament president says that italy's right-wing party has changed its stance on the euro and the european union. the comments came days after the head of the northern league called the euro a "german
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indicated italy would be laying the groundwork to follow the u.k. out of the eu. we were spoken to exclusively in rome. >> it is possible to leave europe, the european union. the opposition is not the same as five years ago. now they are looking for a better europe, not for leaving the european union, leaving europe, because it is possible to leave. mark: he also said that leaving the eu would make italy are relevant in europe and globally, and cause "massive harm to with economy." the prime minister has identified him as a potential candidate to be his successor. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg.
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julie? julie: thank you, mark. commodity markets are closing in new york, so here is some of today's biggest movers. oil here is closing with a little bit of a gain. a bit of a volatile session, up about two quarters of a percent at the close, seeing those gains rebounding from last week's selloff. member the dollar sliding most of the week, so that contributing to some of the gains for oil prices. coffee, seeing its steepest decline since last october as deliveries for may dropped. also the crop in tanzania expanded and the brazilian royale was also a factor. that boosted incentives were being exports from that country. and a big story for what happened in aluminum. it gained on news that the commerce department has recommended the president trump that he apply significant tariffs and quotas on steel imports with very high tariffs on imports from china, russia, venezuela, and vietnam. scarlet: we will pick it up
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right there, because shares of u.s. aluminum and steel producers are rising today. you are looking at century aluminum company core, and -- , those aluminum, nucor companies closing higher by 2%. the commerce department recommending that the president pose -- impose a range of restrictions on steel, including tariffs and quotas. joining us now is our metals and mining reporter. talk about the numbers that are being proposed. even though this is what the commerce department came up with, the president has leeway to use them or not? disclaimer on all of this -- what the president decides in two months is what happens. we have all of these numbers that came out today, markets often trade on speculative information that is how you can view what happened today. what they laid out for aluminum and for steel were very similar. three different steps. across-the-board tariffs. across-the-board tariffs for
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steel and aluminum. the second was we are actually targeting higher tariffs to certain countries. for aluminum, for countries, steel, 12 different countries. everybody else wondering what about us? you can only export to the u.s. equal to the amount that you did last year in 2017. in the last one, it is an across-the-board quota. every country can only export x amount into the united states that they did compared to last year. with aluminum, it was equivalent to 86%. steel, equivalent to about 63%. that was on the quota side. it is really in the weeds stuff, but people who are trading these markets, these are the numbers they were really looking for. scarlet: i'm curious -- does the u.s. based industry have enough capacity to make up for if there is a decrease in imports from these various other places? joe: they do not right now have
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the capacity. point of the commerce secretary was that we want to get capacity utilization up to about 80% for aluminum and 80% for steel. her seems to be an understanding that we cannot just go ahead and produce everything that we need to be self-sufficient. of our importslf -- excuse me, half of our consumption comes from imports from canada. that was a big thing left out of your too. many thought that canada would be exempt from any of these tariffs, especially on aluminum. they did not get that. julie: is this going to make u.s. manufacturing more expensive? abigail: the -- joe: the argument of manufacturers is that they will have to pay more for their metal, steel, and raw aluminum. they have been angry about this june, and about it in is part of the reason why the trump administration, when they had wanted to expedite this
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process, did not pass it initially. they are still there. these are recommendations, and there is still time for those people, who, as you mentioned, are angry, to put in these complaints. scarlet: and that manifested itself with seven or public and railingman or senator's against action that would spark retaliation from other countries. have they made any indication or given any indication or taken any steps as to what that might be? oncks we do not, based today's recommendation, but we have gotten information from china and various others -- canada as well -- to say that essentially, they do not think terrazas -- tariffs and quotas are the right answers. they are worried this could cause bigger problems for them, and then you get into other speculation. with this caused some retaliatory measures? they were asked that on the media call as well. we are not rolling
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it out as a possibility. they made that very clear. scarlet: your timeline is two months. you said he has two months? joe: mid april, he said he had until april 19 i think? muchet: joe, thank you so on this story. let's get you a check of the markets. we have stocks in the red. julie: in the green again. scarlet: a bit of a change here in the s&p and dow, now higher. we still have an hour and a half to go in trading. this is bloomberg. ♪
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♪ scarlet: this is bloomberg markets. i'm scarlet fu. i'm julie hyman. staying with our top story, u.s. special counsel robert mueller unveiling the details of a widespread and corrugated campaign by russians to influence the u.s. presidential
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election in favor of donald trump. we are now joined by marty shanker, our chief content officer. shere were 13 russian named in the indictment, and as of now there is no talk of collusion in this indictment? fact, the indictment specifically says any unnamed americans involved in this activity were unwitting participants. there is absolutely no evidence in this indictment of a direct link to, for instance, anyone in the trump campaign. scarlet: so this would be a victory lap for the white house if it were to go by what happens today? marty: i think it would be wise for the white house to not completely feel they have been vindicated here. air is always the possibility that mueller could, sometime in the future, do a superseding indictment, name additional defendants. he is obviously lining up many cooperating witnesses. there is indications that there
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are more to calm, so i do not think you can say that the white house is completely out of the woods yet. julie: what do we know about the cooperating witnesses? we have michael flynn, robert gates, do we know anything about the interplay between what they have been telling mueller and this indictment today? marty: no. there is very little connective tissue, very little reporting out of the mueller special prosecutor's office. he has been extraordinarily tightlipped. there have been no leaks. there was some indication that the flint indictment was so relatively minor that it was kind ofing, just what information flynn had to give. and there are reports today that a trump campaign advisor, gates, is soon to do a plea agreement himself. he was a key advisor to the campaign. there is more to come on this. julie: to switch gears for a moment, because they headline is crossing now on a separate matter entirely.
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comments coming up from the governor of florida, rick scott, saying the director of the fbi should resign. this is tied to the shooting at the school in parkland florida -- parkland, florida, being revealed today that the fbi did get several tips regarding one shooter, and then there was youtube as well. scarlet: and not acting on it. marty: they did not, according to christopher wray, they did not use the proper procedures for such things. it must have been extraordinarily painful thing for christopher wray to admit. you can give him some credit for coming out and saying it as soon as he found out. this is a tremendously tragic thing for the fbi in the sense that it comes amid a full-scale attack on the fbi as an institution by top level people in the white house. who wants to use an excuse to remove chris wray, you can probably do that. have made the
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point that this indictment dropped right around the time that the criticism against the fbi heated up. what is the special counsel's link to the fbi? is he working on behalf of the fbi? marty: yes. the special counsel uses the fbi as an evidence gathering at their that is complete disposal. i do not know if these events are connected, but obviously in fbi that is in disarray is not a great thing in the midst of this serious investigation. that said, chris wray was hand-picked by donald trump. he has the confidence of the white house, as far as we know, even though there were some difficult comments. finding a never fbi director at this point and getting him approved -- another fbi director at this point in getting him or her approved by the senate might be extraordinarily difficult. i think chris wray will probably weather the storm, but this is a tragic chain of events at the fbi. marty shanker,
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bloomberg's chief content officer. thank you so much. we'd to switch gears here, because you have industry leaders in sports media and technology coming together on the west coast in beverly hills, california, for the all-star tech summit. cory johnson spoke exclusively with l.a. clippers owner steve balmer. >> i love the energy of the games. i want the place pulsing. i wanted to be a place that is a little fearsome for an opponent to come play. i wanted to be a place where our players and fans can get enthused and excited, and where we can make a lot of money. it will not look like cameron arena, for example, but if you think of some of the great places -- i was at the old mac court of the university of oregon. i love that. cory: but you are tied up there. what do you think? >> up and
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tied, utah is good, memphis is good. i have not is it in every arena, but there are great arenas that i would love, because they are good for a little bit more leisurely casual -- leisurely, casual fans. i would like to privatize -- cory: the more energetic fans. is so the 49ers, there much looks really going on it is almost terrible. the fans up in the game, it is a huge experience in sports. >> i think centurylink is the kind of experience we love to have. centurylink -- if you go to you stand up the whole game. i get to an age where i always stand up, but i love what it means in terms of the juice it provides. cory: you worked at the harvard football team as a manager right? >> yes. cory: how was that? >> i was the stats guy for the
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first year, but the first verse of the game, down the field, harvard does not have quite the crowd that we like to have for hoa,clips, but it is like w the game is starting. and you are not a player, but you get some energy, and a different kind of energy. you are more involved but you are not playing. it is like being an owner, you are a super fan. this is such a confusing thing to a lot of fans. not a lot -- not terribly confusing, ultimately, but it is different the way you manage this team. do you want to be a big free agent spender? is that how you think of bringing a new team to a stadium and how you compete? for nbant to compete championships. it is great when 50 plus games a year to compete for an nba championship. we decided we needed to retool.
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we are not rebooting, going to the bottom, we have a very competitive team. but we have a team in which we have more options on how to get for a and go compete championship. the salary cap is complicated, like the tax code. you have a rate, but at the end of the day, it is not that simple because there are all .hese little perturbations i like what we have done with our team. it has given us more flexibility. i would like to win a championship next year, but i'm really enthused by the idea of getting where we need to be over the next two or three years. and obviously it helps to have that when you come out in a new arena. it helps golden state. suitesu can charge for when you have a championship team? i am not saying i'm doing it for the business purpose -- but on the other hand, a championship floats all boats economically.
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not winning a championship. we did analysis on what is good for ticket sales. the number one draft pick -- i want to get that -- i do not want to be that bad, but a number one draft pick helps. and the nba championship has a halo effect that last tens of years. and that is good for morale, it is what we want, but parenthetically it is good for business as well. scarlet: that was cory johnson, speaking with los angeles clippers owner the always enthusiastic steve ballmer. and tune in for more of our exclusive coverage when we speak with dallas mavericks owner mark cuban, coming up at 4:00 p.m. eastern, only on bloomberg. let's check on the markets. we have stocks recovering a little bit from the lows of the session. the nasdaq still slightly in the red, the dow and the s&p are higher. the s&p being buoyed by interest rate business groups, like telecoms, real estate, utilities. health care is also on the rise.
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from new york, this is bloomberg. ♪
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♪ scarlet: this is bloomberg markets. i'm scarlet fu. i'm julie hyman. for more on this developing story about robert mueller and this indictment being unfurled oury, let's bring back in reporter from moscow. we were talking about the russian response to this. perhaps not surprisingly there has been some pushback. ksenia: absolutely. this was very much expected. the russian government officials have been saying pretty much the same thing for more than a year now, that these allegations of any kind of election meddling are absurd, and that is what the foreign ministry soaked bowman -- spokeswoman posted on her
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facebook page. she also had a pretty emotional comment, where she said how could mueller allege that 13 people intervened in the elections in the u.s. and the quote is "13th against -- 13 against billion-dollar budgets and special services? there is no way they are going to bit -- admit there was any kind of meddling in the u.s. election. 13 russian nationals, three russian entities -- are these known quantities that have any link to the federal government, to vladimir putin or his known associates? ksenia: this is very interesting. there has been several investigations in the independent russian media about the so-called troll factory, internet troll factory, which is mentioned in the mueller allegations. it is a faster he -- factory based in st. petersburg that use
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about 100 people, a huge budget, and these people were internet trolls who were supposed to swing the vote in the u.s. and supposed to impact the voters in the u.s., and these are the people that are mentioned in the mueller document. the most known person who is mentioned is a wealthy businessman, pretty close to put in. he is called "putin's chef," because he owns the catering company that caters to the kremlin, which obviously is a pretty big deal and brings in a lot of money to his business. comment,ave a responding to the mueller allegation. he said jokingly that americans are very impressionable people, they see what they want to see, and if they want to see the devil, let them see it. he has been denying any kind of
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involvement with this troll factory for a while. scarlet: that is a pretty colorful quote there. i want to ask you here, we found out through this indictment that these russian individuals and entities favored donald trump and bernie sanders, they were against hillary clinton. why are they against hillary clinton, or do they favor donald trump more? what was the turning point their? what do they -- turning point there? was it anyone but hillary clinton? ksenia: it is very hard to interpret their logic. we have obviously no way of knowing exactly what they were after. the general understanding is that the kremlin felt that hinge hillary clinton -- hillary clinton would continue the policies of the obama administration, which were pretty critical of the putin .egime the obama administration did impose sanctions on russia in 2014, 2015, so the relations
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were not good at all. there was hope that trump, with his rhetoric of breaking these improvings and relations with putin and russia, that trump would be a safer choice for russia. if this logic was true, it has completely failed. scarlet: good point. thank you so much for joining us by phone from moscow. we have almost one hour to go before the end of the trading session, and it looks like for now, u.s. stocks can extend their five-day event -- advance, but i do not want to speak too soon here. the nasdaq is negative. from new york, this is bloomberg. ♪ retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered.
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comcast business outmaneuver. . >> i am scarlet fu. julie: i am julie hyman in for julia chatterley get welcome to
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"bloomberg markets." ♪ julie: we are live at bloomberg world headquarters in new york over the next hour. here are the top stories we are covering. thert mueller unveils details of a widespread and coordinated campaign by russia to influence the u.s. presidential election in favor of donald trump. it has been for markets. stocks might have the best week since 2013. there is still an hour left in the session. let's talk about what we see and this week. abigail doolittle is here. abigail: we were down for the major averages. the s&p 500 up a tense of 1%.
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not so long ago, we had small declines for the major averages. indicting 13r is russians and three companies for meddling in the united states election. some uncertainty created. what will ultimately come out of that. we saw volatility for the major averages. the three major averages up 46 state in a row. for the dow, the best major winning streak of the year. the vix, up slightly. here is we -- where we are seeing the pressure from the mueller indictment. facebook is down 1.4%. , facebook, mentioned relative to the indictment. facebook was used by metallers.
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maybe there wasn't enough regulation? that could be ahead. we are looking at huge weekly gains. let's hop into the bloomberg. the worst week for the major averages since early 2016. the nasdaq in white, up more than 5.5%, on pace for the best week since 2011. a big rebound rally. when you see violent moves like oft, it suggests more the same is ahead. this is a combined weekly flow analysis of jnk and hyg, two junk bond etfs. they tend to be on the far end
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of the spectrum of risk continuum. very illiquid. we see three big weeks of selling. of the junk bond etf's last week. more than $6 million in outflows last week. movers on the day worth paying nucor,on to, alcoa, and we had the news perhaps the was commerce department is going to recommend they propose an aluminum tariffs on all imports, that would provide a premium, and give a bid to the entire industrial-mental space. scarlet: let's get you to bloomberg first word news. special counsel robert mueller has unveiled the details of a widespread and coordinated campaign by russians to
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influence the u.s. presidential election in 2016 in favor of donald trump. it was described by deputy u.s. attorney general rod rosenstein of a sweepingein conspiracy multimillion dollar to supportussians bernie sanders and mr. trump. >> this indictment serves as a , that the russian conspirators, want to promote discord in the united states and undermine the confidence. we must not allow them to succeed. mark: the charges are the most direct allegations to date of the illegal russian meddling in the 2016 election. fbiida gov. rick scott says director christopher wray should resign the following reports the bureau received tips about niko
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january,'s behavior in but failed to report it. reportedclose to cruz a tip. he has been charged in connection with the murders of 17 people at a florida high school. says the latest whole shooting in his state is "the worst of all possible outcomes." today,g to reporters senator nelson said "each time these mass shootings occur, we say enough is enough, and it happens again." is hard to pass legislation unless the president will support it so he gets the support among the republican senators. president, to the change your position about assault weapons.
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change your position about background checks. these are two common sense things. mark: nelson added the senate added the senate couldn't even pass legislation that would prevent people on the terrorist watch list from buying a gun. angela merkel said her country's position on brexit is one of toret, but her country wants keep a constructive relationship with united kingdom after it leaves the european union. the british prime minister echoed the desire to maintain strong business ties with germany. have referred the for a bold and him bishop's economic partnership once the european union. and ambitious economic partnership once britain leaves the european union. the eu onain departs
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march 29 of next year, but negotiations must be concluded this fall to allow time to ratify any deals. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. we are going back to that story you begin with, our coverage on a particular -- r obert mueller's indictment. read through this 37 page indictment. what did it show? this graphic detail ingenious plot by a group of russians to use social media to basically drive momentous discord and activate people in favor of trump and against hillary clinton.
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also for marco rubio and bernie sanders. they were trying to defeat hillary but also so discord among the populace -- sew discord among the populace. paul ryan is saying it underscores why we need to follow the facts and protects the -- and protect the integrity of future elections. what is anyone going to do about it? we still have not heard from president trump. he is at andrews air force base. he will then depart for florida, where he will spend the holiday weekend.
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type of white house statement within the next couple of hours. no word from president trump himself as he left aboard the helicopter to travel to florida. the hearings have gone on, we have seen the representatives from silicon valley come in, testimony from intelligence officials. coats even saying whether or not they knew they would be: first by russian officials at the time. i have spoken with several sources in the last hour or so since this indictment has made public. from a political standpoint, they feel there is nothing that could hurt him politically. broader question becomes we are several months out from the midterm elections.
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from a policy standpoint, facebook is announcing regulatory policing. the question is really from a disclosure standpoint is, why do being elected for office for united states after the close when they are paying for an advertisement, but when a hostile foreign power chooses hate speech advertisements, why aren't they disclosing it? from a source that i -- expect that to be the crux of the debate, domestically. >> will there be a refiling? greg: there are a number of
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instances in this indictment with trump's importers, -- trump supporters, trump campaigners, trump indication supporters knew they were dealing with a russian agent. it is unwitting cooperation between the campaign. this is only be social media part. the investigation is not over. do prosecutors only charge what they know. the investigation continues. there is a charge brought in a complicated case, when an indictment can come with new charges.
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>> this lays out the kate for what the russians did in 2016. -- the case for what the russians did in 2016. scarlet: thank you so much, greg and kevin. ising up, how mueller's move hitting the tech sector. we are live from san francisco, next. this is bloomberg.
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julia: this is "bloomberg markets." scarlet: robert mueller's indictment is affecting tech.
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here to discuss is bloomberg technology anchor, emily chiang. significant implications for facebook. i am here with our senior executive editor for bloomberg tech and our reporter who covers facebook and twitter. what have we learned here and what are the implications? confirmsndictment there were russian actors who weaponize to social media. -- weaponized social media. one had 100,000 followers. facebook ads called hillary clinton satan. urged african-americans not to vote. social networks had gotten a lot of heat for allowing this kind of activity. what we learned in this indictment is that the conspiracy was a little bit more sophisticated.
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separate plea deal with un-american in county who sold these conspirators identities they used on paypal accounts. hard of this activity was to find and more sophisticated than we anticipated. been: as someone who has covering this, what is the most surprising part of this indictment? sarah: these efforts were things that facebook could not have even if theycted, had flagged at purchases and a addonger policies -- purchases and stronger policies. these were multiyear campaigns that tried to hold up identities and purchased advertisements through paypal. are is the first time we
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saying paid -- saint paypal in the picture. do companies not bear much responsibility or culpability? they deal. this is a reminder that people could they appear to be on the internet. these social networks are based on trust. you establish mobile identity online. -- your real identity online. all of these social networks are going to look at whether they have to sacrifice their principles for growth. their entire identity can be hacked in this way. are speaking in relation to a government probe. this cuts be very core of the business model through these companies. the whole of digital advertising is based on it you being able to
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know if someone is on their advertisement, if they liked, shared, commented. this shows us internet activity is so easily faked. are already seeing advertisers start to question the value of their digital campaign. emily: you also want to know who you are showing the advertisement to. sarah: you can target very specific audiences. what can they do now and in the future to combat something like this? sarah: it is going to be similar to what we have seen in cybersecurity. wheres going to be a game these companies are trying to figure out how to deal with the threat that already occurs, that already took place. bad actors are already working on the next way to take advantage of these networks. of like how facebook uses
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the media algorithm. the same thing is happening with these foreign actors. they are being very strategic about it, and hitting at weaknesses. we will hear about this game for a long time. clearly, there has to be a moral awareness on behalf of voters and americans, they can trust everything they see online. we are seeing a return to authorized new sources. are muchd facebook more willing now to work with big media companies. we are seeing a return to people news. for all of this that might contain the wild west that has been on the internet. emily: is regulation the answer? sarah: there are efforts in washington. even if you have more
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transparency and advertising, are these advertisements bought by the people who say they bought them? we are still not fixing that problem. this is going to be a much larger effort. it will come back to the trustworthiness of sources, and americans have to learn how to determine what is real and what is fake. the neutralityt these platforms had, that every piece of content has the same value and looks the same when you see it on the social that was a big editorial decision on their part. they are going to have to reconsider. thanks soah and brad, much. scarlet, back to you. chiang. that was emily the president's lawyers have now, dated -- commented on the
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mueller indictment. the moyer says mueller -- teh he lawyers said his team did a good job in statements. equities are higher, barely. what i am focusing on is the etfs of washington stocks. they lost their gains during these headlines. they are down about 1.2%. from new york, this is bloomberg. ♪
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scarlet: the president is reacting to robert mueller's indictment. here is a teweet -- is a tweet.
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while the mueller indictment said there was no collusion found, it is by no means clear it didn't affect the election. there were very russian -- various russian agents involved on the grassroots level, some of the rallies, with paid people. scarlet: we will continue to monitor for this developing story. julie: in the meantime, it is time for "options insight." did see stocks come off the highs a little bit when the indictment headlines crossed. how much are you guys talking about this or paying attention when it came to trading? dan: they were certainly paying attention.
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there was such a strong run out early this morning. it definitely change the dynamics of the markets. we are definitely off the highs of the day. the market has had a nice run off from last friday. the best for the s&p 500 since 2013. you are looking at the etf that tracks the nasdaq 100. what are we looking at in terms of its recent actions and behavior? dan: you saw most of the major averages go down. up with its 50k day moving average. outperformed the other major averages moving into the end of this week. julie: where does the risk reversal trade position you? qqq toam looking at the get put out a better level.
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-- put at a better level. at the cost of that call, i connect -- collect a premium on that sale. that 50 dayops moving average, i get put at a better level. julie: thank you so much. the ndx, underlying the qqq 5.9% onp 5.9 -- qqq up the week. the bloomberg dollar hopping a bounce after a little bit of a losing streak. this is bloomberg. ♪
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mark: special counsel robert mueller today delivered on his initial mandate by the justice department related to the russian meddling in the 2016
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u.s. presidential election. >> a grand jury in the district of columbia returned an indictment presented by the special counsel. brush on nationals and three russian companies with committing federal crimes while seeking to interfere in the united states political system. mark: president trump sent out a tweet in the last few minutes which reads in part, "russians started the campaign in 2014 up long before i announced i would run for president." chef was among those u.s. prosecutors. he says "americans are very impressionable." his restaurants and catering businesses once hosted presidents -- president


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