Skip to main content

tv   Bloomberg Markets Americas  Bloomberg  June 13, 2017 2:00pm-2:31pm EDT

2:00 pm
scarlet: we are live in bloomberg world that quarters in new york over the next hour. here are the top stories we're covering from around the world and on the bloomberg. attorney general jeff sessions facing senators this hour in highly-anticipated testimony. he will be grilled by the senate intelligence committee on his role in the firing of fbi director james comey as well as his own contacts with russian officials. the scope of russia's intervention in u.s. elections more widespread than previously known. russian hackers hit voting systems in a total of 39 states, as first reported by bloomberg. in corporate news, shakeup at uber amid a slew of workplace scandals. is planningalanick to take a leave of absence without a specified return date. julia? julia: thanks so much, scarlet.
2:01 pm
you are looking at a live shot of the room where u.s. attorney general jeff sessions will testify before the senate intelligence committee, expected to kick off in less than 30 minutes. pressers are expected to him on president donald trump's role in the investigation into russia's interference with the u.s. election and get his side of the story on the firing of ai director james -- fbi director james comey. we will bring his full testimony as soon as it begins. in the meantime, let's go to the west coast for another bloomberg scoop on uber. ceo travis kalanick will be taking leave from the ridesharing company after a slew of workplace scandals. eric, great to have you on. welcome again to it feels like we say this to you a lot. he is going to be leaving, the ceo, and indifferent defendant about the time away, it seems. >> right. initially there have been this
2:02 pm
question of the three-month leave of absence. now it is indeterminate how long. it comes right after his mother's funeral on friday, and during this really hard time for the company. it is a bit of a mixture of the personal struggles that he is facing and the challenges he has had as a ceo turning around the company's culture. scarlet: and i just want to read a part of the statement that he gave to his employees. this is part of the memo that he wrote. tor uber to point out succeed from there is nothing more important than dedicate my time to build up a leadership team. but i also need to work on travis 2.0 to become the leader this company needs and you deserve." when we look at the leadership of uber, eric, who is in charge of the company now that travis is stepping life for 2 -- stepping away for two months? where does this leave the leadership team? eric: there is definitely a
2:03 pm
vacuum. we have the head of hr, who has had a very big role. there are 3 key operations people, including rachel holden andrew mcdonald, that are important here. daniel grafton weston running product. there are key executives who got promoted amidst the chaos. they will surely take a key role. i think what really matters is who the new chief operating officer is. i don't think they have a candidate locked down. but they needed to find someone and give that person a really big role of the company. that is what they are trying to do at the moment. -- one is thatts even when he comes back from he will be stripped of some of his powers and they will be added to the ceo. -- coo. that is why the role is going to be critical. they have been actively trying to recruit someone for the coo role, and they haven't been able to do that. why would someone choose to come
2:04 pm
to uber at this point? it goes back to a question scarlet was asking earlier on about the company itself. why uber now? eric: the promises that you that this usual at what could be a once in a generation company. a global footprint. on the other hand, right, you don't want to be under the thumb of a questionable ceo who seems to get getting that seems to keep getting in trouble. -- questionable ceo who seems to keep getting in trouble. role is more defined and you are running more of the day-to-day operations command travis is going to step away from the company. the more the ceo feels more like a coo, the more they will be able to recruit the top talent they want. the independent board director, also one of the recommendations, could surely help. great help that a coo is empowered and that travis can not just push them out, like we
2:05 pm
saw the departure of jeff jones, the company's president. stuff like that could be a bad sign to a coo. they would have to have the real support of the board of directors. scarlet: eric, i wonder, does this affect uber's financials? does it need to raise cash? or is the valuation now under question? eric: they should have at least $6 billion, if not $7 billion, in cash. they have a lot of money. emil michael, who has been ousted, help the company raise $10 billion. if you are at the company, you are going to be relieved you have all that money. certainly there are going to the questions about the company's valuation. hard to imagine they make any moves towards the public offering with so many question marks. let's use the resources we have right the ship. i wouldn't be surprised if they
2:06 pm
raise money, but it is a company that always raises money so i never bet against it. julia: eric come is there a huge opportunity for competitors? daniel michael has stepped away and he was seen as key for relationships and raising funds for the company. challenging them operationally in terms of the business. if you have the ceo absent for a number of months, is there an opportunity for competitors to perhaps fill a void and even poach talent? eric: lyft is definitely seizing the opportunity. they struck a crazy partnership that was unexpected, big, big deal. gm is one of the largest shareholders. they are working on things with them. they just announced something with jaguar. lyft as that used to this moment guy,y, we are the good people like us, let's work together and figure out how we can figure out the autonomous future.
2:07 pm
#deleteuber was good for lyft's market shows. newcomer, you will keep us posted. thank you for that stupid. in terms of mark -- for that scoop. in terms of markets, markets close in two hours time. let's check with julie hyman. julie: the bounce is intact. necessarily the case earlier in the session but right now gains are holding steady. after steep losses can we are seeing a rebound today, as the fed meeting gets underway with a decision due tomorrow. if you look at technology specifically, when i say that gains were in jeopardy earlier, you see the group fault of the lows of the session, 11:00, before rebounding up. there was at the very least a paring of gains. just about the losses in
2:08 pm
perspective, take a look at the bloomberg. tech is still a monster in terms of performance. on the top we have the s&p index in white versus s&p in blue. this goes back to the bubble of 1999, 2000. on the bottom, we have the performance as a ratio. the dotted line here is the average over the past 10 years. we are still about 25% above that typical performance level relative to each other. despite the declines we have seen the past couple days, tech is still a big outperform are here. elsewhere, in terms of movers, we have casinos on our radar. las vegas and mgm are all higher. we have analysts at credit suisse saying that macau's june gross gaming revenue will be up 30% on the year. we are seeing casinos rise on that optimism surrounding macau. julia: thanks so much, julie. let's check on the "first word" news with mark crumpton.
2:09 pm
mark: later this hour it will be attorney general jeff sessions' turn in the spotlight. the senate intelligence committee will question sessions about his role in the firing of james comey at the fbi. you are looking at a live shot of the hearing room now. they also will ask about contact that sessions and other associates of president trump had with russian officials. stay with bloomberg for live coverage of attorney general jeff sessions' testimony, beginning in about 20 minutes at 2:30 wall street time. house speaker paul ryan is responding to reports that president trump is considering firing robert mueller as the special counsel investigating ties between the president campaign and russia. i think the best thing to do is to let robert mueller do his job and to let the investigation go on independent answer really. that is the smart thing to do, the best thing to do, and what i think hopefully will happen. mark: christopher ruddy, ceo of
2:10 pm
longtime friend of mr., told pbs news that the president was considering terminating mueller. the white house has pushed back, saying only the president's attorneys are authorized to comment on the matter. the u.s. refugee agency is calling for better access to a northern syria province, where it says close to have a million people are said to be in need of assistance. u.s.-backed forces are trying to drive islamic state out of raqqa, which militants claim as their capital. >> those fleeing the fighting, taking shelter in a numerous locations company have been periods ofor long time. tens of thousands passing through the camps and quickly moving on to other areas or returning to places of origin. mark: the u.n. has managed to of $153ly $29 million, million is budgeted to meet
2:11 pm
humanitarian needs in raqqa province. jurors in the bill cosby sexual assault trial are drilling down on phrasing as deliberations continue into another day. they asked about the wording "without her knowledge," for the judge did not define it for them. cosby is charged with driving and listing andrea constand in 2004. the jury is deliberating indecent assault to the third count covers cosby's alleged use of pills to impair constand. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. scarlet: once again, as mark just mentioned, attorney general jeff sessions' testimony to the senate intelligence committee is set to begin performance from now -- 14 minutes, i should say. giving you a preview. you want to staging for details of new revelations about russian
2:12 pm
hacking as well. from new york, this is bloomberg. ♪
2:13 pm
2:14 pm
julia: this is "bloomberg markets.' i am julia chatterley. scarlet: i'm scarlet fu. julia: let's get to washington, where attorney general jeff sessions will testify before the senate intelligence committee. lawmakers are expected to ask about his role in the firing of james comey and the russia investigation. meanwhile, in a bloomberg exclusive, we have learned that the russian hacking of the 2016 u.s. election was far more widespread than previously reported. from our d.c. bureau, a cybersecurity reporter from bloomberg news. joining us from capitol hill is
2:15 pm
chief washington correspondent kevin cirilli. and tim o'brien, executive editor of bloomberg view. you to spellwant it out for us. what are we expecting in terms of fresh information today from jeff sessions? live outside i'm the senate intelligence committee hearing, where lawmakers will begin to be filing into the room behind me. of course, attorney general jeff sessions will be testifying. what i am told a secret faced significant questions on whether or not he had undisclosed meetings with russian officials, ,articularly russian ambassador reportedly after former fbi director james comey publicly testified last week he then had a private briefing with members of the committee and reportedly alluded to as much. the big thing here is whether or not he had any undisclosed meetings, and of course, another key point to keep your eye on is whether or not there is any distance between the president and the attorney general
2:16 pm
himself. close toto 2 sources the attorney general who say that the relationship between the attorney general as well as the president remains strong, but there have been reports that the attorney general offered his resignation at one point as a result of having recused himself from the russia investigation. scarlet: michael riley, cybersecurity reporter for bloomberg, i want to get to you on this bloomberg scoop in which it appears that russian interference now encompasses the actual mechanics of the voting, or at least is moving in that direction, and is no longer limited to hacking of individuals' emails and party emails and spreading fake news stories. tell us what you learned in your reporting. michael: it is important to make the distinction, there are 2 different missions of russian hackers and russian intelligence agencies. one is the influence operation, to change the narrative around the campaign. they did that by hacking the dnc and clinton aides and releasing the emails to wikileaks, according to u.s. intelligence agencies. but they were doing something
2:17 pm
else, where they were hacking into the voting infrastructure of u.s. elections. it doesn't look like what they were trained to do is change the vote. but the obama administration was pretty convinced and very worried that what they were trying to do was undercut the election by creating a lot of chaos. they were attacking voter registration rolls, databases, they were attacking local election officials who run systems where the votes are counted and transferred up to the state. if you can imagine, if you showed up at the polls and suddenly your information to be able to vote was gone or changed and your address was different, you would feel pretty disenfranchised, that was the real fear, that there was going to be some major effort to do that on election day. julia: michael, can we just be clear when we talk about russia, that a going to the nsa document we are talking about, this is hackers working for russian military intelligence? am i right there? michael: that's right. nsa document -- you
2:18 pm
remember when the u.s. government first pointed its finger at the russian government, they pointed to the dnc hack and delete emails, but they did not say anything about the election system hacks. there was a leak nsa document that came out last week that was very specific -- this is the gru, russian military intelligence doing this, not some criminal hacker. julia: we should make that clear. scarlet: yes, we should. as we sit through the details of this recording and away jeff sessions' testimony, for the president and this was supposed to be the week of, i believe, workforce development? last week was infrastructure week. >> another one down the drain. scarlet: well, they lost control of the narrative. we are being facetious because the president said infrastructure week would take off like a rocket. >> they are metaphors for the problem they are facing. scarlet: thank you. >> this russia investigation looms over everything.
2:19 pm
infrastructure week, workforce development week, important policies like tax reform, deregulation, a new health care bill -- all of these things have gotten subsumed into the maelstrom of the russian investigation and mismanagement at the white house and it overshadows everything they do. julia: kevin come i want to bring you back and because i know you have been speaking to movers and shakers in washington this morning, including a member of the senate intelligence committee. what are they going to be asking today? what is critical here? kevin: i think there has become an increasing divide between republicans. all of them are in agreement that russia did have some type of hacking in the 2016 presidential election. but how to respond to that, there has been an increasing divide. people like senator rand paul, who we interviewed earlier this month, suggesting that bolstering cybersecurity would be better than having russia sanctioned. you have a bipartisan group of whotors like mike crapo, put together a proposal with
2:20 pm
senator graham and senator cardin calling for tougher sections on the russians that would codify the sanctions under the obama administration and give congress the final approval should president trump try to refute that come to lock them back. i spoke with senator wyden, a democrat on the intelligence committee, earlier today, and he was what he had to say about the matter. what is especially important to me are the circumstances with respect to his refusal. as you know, in the open hearing, i asked mr. comey about that. mr. comey said that he could not give a full answer because he responded to me there were problematic matters that he could not discuss in public. it,n: so there you have democrats still pressing the administration on the notion of obstruction of justice and the ongoing investigation. but right now, no republicans i'm speaking with our suggesting that there is standing for such
2:21 pm
a charge. julia: i just want to talk about one thing here, tim, how we tie the comments james comey made last week that as far as he was concerned, there is no evidence that one vote changed as a result of russian interference in the u.s. election. with what we are seeing here in terms of illinois, with the data involved here, suggesting that people were trying to tamper with the data. tim: but it does appear, based on mike's great reporting on this, that they got into the system but did not change voter registration rolls or change votes. that would be consistent with what comey said. i think the issue is that they got into an individual state's voting technology and that would be a problem in the future. scarlet: james comey said that the russians are coming -- tim: they'll be back. scarlet: mike, let's and here with you. said thatporting you the obama white house confronted russia over the hacking
2:22 pm
incidents by contacting the government directly. that is unusual on its own. to what extent do we know if the trump white house has reached out to russia at all on this topic? michael: i don't think we know. i don't think the white house has said anything about it. the obama administration did use for the first time what is colloquially known as the cyber red zone. we know there's the nuclear red zone, to defuse a growing crisis that might escalate with nuclear weapons. they created this red phone, secure system that starts with teletype and moves into this digital era. in 2011 they created a version of this for cyber. the key point to note is that you are really supposed to you this only when you see an aggressive act has taken place. the obamatober, administration was so worried about what the russians were trying to do around the election and the hacking of election infrastructure that they for the first time used this cyber red phone and send a bond of -- sent
2:23 pm
a bunch of evidence and a message saying this is dangerously aggressive and risks are greater conflict. the response for the russians was chile -- "thanks for the information, we will look into it." julia: fascinating. michael, great scoop. great to talk to you. michael riley, cybersecurity reporter for bloomberg news. tim o'brien, executive editor of bloomberg view. and kevin cirilli, staying with us from capitol hill. scarlet: we are moments away from attorney general jeff sessions' testimony before the senate intelligence committee. we will bring it to you live when it begins. from new york, this is bloomberg. ♪
2:24 pm
2:25 pm
scarlet: in just moments, attorney general jeff sessions will be facing the senate intelligence committee.
2:26 pm
he will likely be bombarded with questions about what he knew about the firing of former fbi director jim comey, as well as his own meetings with russian officials. whether he will answer them is a different matter. he could very well invoke executive privilege. we are joined by cambridge halley, the former republican attorney general of the commonwealth of -- ken cuccinelli, former republican attorney general of the commonwealth of virginia. what you expect to hear from mr. sessions? what you want to hear from mr. sessions? ken: there is an so much i want. it says a lot that he asked for this and wants it to be open. he wants to get by everyone's speculation and lay out the timeline of his own interaction, including his meeting with the russian ambassador, which he of course already told people about. and put a lot of the other questions that are swirling around to rest. as much as there was interesting things in comey's testimony, many things were really dampened by his testimony, and i think
2:27 pm
that is what you can expect attorney sessions to be aiming for as well. think the high do you risk is for president trump in terms of the revelations we get from jeff sessions today? ken: yeah, i actually think the risk is very low for the president. i think things were much more uncertain with respect to james comey than they are with respect the attorney general. i think the risk is very low for the president today, and i think when this is all said and done, today many people may feel is kind of boring. and that is probably the goal of the attorney general and the hope of the president. julia: i'm sure you are right. i also want to ask a little bit, given your background as an attorney general in virginia, just in terms of what we have heard over the last week, when the president allegedly asked at that dinner for jared kushner and the attorney general jeff sessions to leave the room, should the attorney general at that point have said no, given
2:28 pm
your experience? and when james comey apparently complained to him afterwards and said, "please don't leave me alone with the president again," how should the attorney general have responded at that point? kevin: you -- ken: you know, he is the attorney general -- james comey is an adult and a responsible position, and the president is board, ifd of this you will pick he is the loss of all of them in the executive branch and he has the right to have individual conversations. i don't think it was reasonable of comey to make that request. he may have felt uncomfortable, but he should have said that. one of the great failings of james comey and all of these conversations, the nine that he recited, was he mentioned feeling uncomfortable. the one person he didn't tell that to was the president. look, he has a history of rushing to the bedside of john ashcroft back in the bush administration to stand up to the white house counsel.
2:29 pm
well, where was all that? where was that james comey? where was the simple -- call it an education -- for a president who had never been in government about what james comey thought was an appropriate form of discussion? he never drew those lines. you cannot just assume a president that comes out of beeness, who has never involved in investigations before, certainly never had anything like a department of justice before, should just automatically know where the boundaries are. scarlet: wait, so it's james comey's responsibility to teach the president what the boundaries are? shouldn't that be jeff sessions, the attorney general, in charge of the department of justice, to oversee that, or at least to be in the same room or same space to make that clear? you are taking, my language and making it like lessons. these aren't lessons. things pop up and you have to respond to them. i expect if that pops up with
2:30 pm
attorney general sessions in the room, he would address it. i expect if james comey is in the room and the president is making the request, for instance, that comey testified about, "can you lay off michael flynn," they might be more appropriate for james comey to say, "mr. president, we have to let that take its records and it is not appropriate for you to make a request like that." come onple would say the constitutional side of this says, that the president can fire james comey, as he did. he can order investigations to be commenced or stopped. and the consequence for that is in the impeachment realm. ask for -- all he asked for the day after michael flynn was fired or forced out was, hey, can we lay off the guy now? comey, to his credit, notice that michael flynn is not in the center of this russia investigation. he has his own problem. but he is not in the center of the russia investigation. comey went on to say that there


info Stream Only

Uploaded by TV Archive on