Agenda: Fiscal Showdown, Bank of America, Twitter

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Oct. 16 (Bloomberg) -- The ‘Bloomberg Surveillance” team engages in an in-depth discussion of the big stories of the day with Richard Haas, president at Council on Foreign Relations. They speak on Bloomberg Television’s “Bloomberg Surveillance.”

Forecast at yahoo!

Fell short of estimates, short for the.

, that was the average analyst estimate.

The shortfall comes as yahoo!

Loses market share and advertising dollars to google and facebook.

Time for the agenda where we look at the stories that are going to shape the day.

As the chief default correspondent, i get to tell you that the fiscal showdown is the agenda for the day.

Congress is scrambling to come up with a last-minute deal.

The senate is meeting, the house is waiting, hopefully the senate will come up with the deal and it is up to john boehner whether he rings it to the floor or not.

The president meeting with the treasury secretary as well.

And he gets to make the final decision about how you spend money, so it will be an interesting decision.

Speaker boehner brings it to the house for a yes or no, then it has to go back to conference?

No, they will send over one bill and they will vote yes or no.

The idea is up or down by one vote and it is a question of whether or not he will bring it to the floor.

Richard haas, no one knows civics better than i do, this is the american process.

Are you optimistic that we return to normalcy by next week e no.

My hunch is that we probably have until november 1 until we get to the crisis.

We may use quite a few of those days.

There is no normalcy coming out of this.

Even the most optimistic case means that in december and january we will repeat this conversation.

They are rich with what i would say any topic, 4, 5, 6 true experts.

What have you learned?

We think of you in syria, egypt, shannon o'neil and that great work in south america, what have your experts said about washington in the last few days?

Increasingly this is central to our capacity to lead the world and, more important, the rest of the world is looking at this not just as a domestic issue, but they are all going home and saying -- can we continue to afford to rely on the united states?

You see those japanese and chinese comments, the rest of the world is recalibrating.

Feeding into the narrative.

You see this in the headlines this morning from denmark and brazil.

All you have to do is go to the international monetary fund meeting, where the u.s. was in the penalty box the entire time.

For the most parts the markets have not reacted.

Is the lesson here that we can just keep doing this?

We will get through this, probably, but pay a long-term financial rice.

This will hasten the day when there is an alternative to the dollar, people diversifying for not following our model politically or economically.

The council of foreign relations office, there is an apolitical set.

Directors and republicans as well.

What part of that republican party really remains?

The traditional republican party is in remission right now.

You have this new bunch, the tea party.

They are not following the rules of cfr, though.

Wax the real question, though, is the intensity of the center.

My hunch is that republicans really are uncomfortable with this.

What does this do for our future?

Are we going to elect leaders who can only deal with domestic politics without looking past our borders?

We do not have that luxury.

No matter why we elect them, they have to govern and their decisions will affect the world and will be affected by the world.

Is it minor enough that we just grown once we get out of this?

Or do we still spend another year spinning our wheels?

We are growing what, 1.7%? we should be growing much faster than that.

Plus it is part of a larger disease.

We will not be able to tackle corporate tax reform.

This sequester is not isolated, it is part of a larger pathology . as you have brought up so many times, the debate on immigration?

Opportunity cost are piling up that and write.

You wonder who the winners and losers are going to be.

Should the speaker of the house stay or go?

Will he be a winner or a loser?

The first one -- stay.

I do not know if he is being ironic or sarcastic.

How about this one -- time to go?

Referring to the tea party.

Let's suggest that there are no winners.

The president does not win, the congress does not win, there is no upside to this.

Bring back the other twitter answer, if you would tom a this is the heart of it, is it not?

His time is up.

Who can whip the caucus into shape?

Douglas will push us against this consensus.

Stronger?

That is one view.

On my agenda this morning, corporate earnings.

We have got to get back to that, bank of america cutting expenses, improving results and when it all came down to it, adjusting earnings here, $.20 up over the break from one year ago, but there are a lot of one- time items to deal with.

Net interest margins held steady, which was a bit of a surprise.

Fill us in on gdp.

Nominal gdp, the banks, pepsico learn earlier with betty liu, this is part of the animal spirit, and it?

They are not finding the loan demand.

You talked about this earlier with america letting people go.

Nobody is refinancing anymore.

Is there not the chance that it will further depress the demand for loans?

That was an interesting debate from yesterday, pushing against and calling it the signal of a better economy.

I go to the immediate effect, where you are.

You hear it from the banks all the time, that the low interest rate policy has shaved their margins to nothing.

And there is a real difference between higher rates coming from a better economy and higher rates coming from foreign concerns on american reliability . something more fun on my agenda this morning, twitter.

I love being on twitter, it is a cool site.

Doubling, the social media giant announced that they would be listing on the new york stock exchange.

That is a big win.

Did we play the video enough?

How tough a decision was that?

I do not think it was that tough.

This goes to their effort to be a non-facebook ipo in every way they possibly can.

Richard hoss, thank you so much for joining us this

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change