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tv   Bloomberg Markets Americas  Bloomberg  March 22, 2017 10:00am-12:01pm EDT

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vonnie: we are going to take you from new york to london in this hour and cover stories out of australia and ireland area we will get to those in a moment. we have breaking economic data. existing home sales. here is abigail doolittle. abigail: for existing home sales, we are looking at 5.5 million. that was the survey. the actual number came in at 5.4 8 million. it turned out to be a 2.7%. this is not entirely surprising to the bloomberg intelligence team. they thought there was some downside risk based on housing scarcity, plus we have had rates rising. this number coming in a little lighter than what the survey had been calling for. not entirely surprised. it does not appear to be
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weighing too much on the averages. we are a bit lower than where the averages opened, but this happened before the housing report. modest declines after yesterday's big selloff, the worst of the year. downve the russell 2000 about 0.3%. 9e worst since the september last year. it will be interesting to see if this is the tone for today after yesterday's big selloff. ,ne of the big drags on the dow nike shares are down about 5%. the reason is not so much the earnings report, but the fact that future orders are down at 9% relative to the expectation of down 1%. that is dragging on the shares of nike. taking it a bit cross-asset class. it does appear to be a risk off day. we have the 10 year yield trading by three basis points
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down. this tells you that even bonds are rallying. we have the yen up six days in a row, shown in red. it tells us that the dollar is falling against the yen. the haven assets are trading higher. stocks are trading mildly lower. plus, these risk assets. 1% aheadown more than of inventory. that is a risk asset typically. that completes this risk off day. is the reflation trade starting to end? when we hop into the bloomberg and take a look, this is out of the election. in white, we had the s&p 500. in orange, the commodity complex . the commodity index is up less than 1% after rallying in a big way. the s&p 500 is clearly off the highs. the declines we are starting to see may be a tell ahead of what could be ahead for stocks. mark: it is a big question.
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is it a blitz? is it a correction? sector rising. we are down by 0.6%. we are falling for a third day. this is europe's fear index. ,fter falling to a record low it has risen for three days. the biggest three-day move since june 14. it has risen by 29%. below theis 69% closing level. the brexit referendum, the highest level since august 2015. that day on an intraday basis, it touched 42.2. onare of from record lows the european fear index. last friday, we hit record highs.
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shares are repeating from extreme levels last month. the ratio above standing euro stocks tumbled to the lowest level since august relative to bullish calls down from a inyear high reached february. the blue line is the euro stocks 50. fascinating chart. helping push the equity gauge up for a third week last week. just continuing on from the theme that abigail was discussing, where is the money going today? there he clearly it is going into fixed income. this is the yield on the italian, spanish, french, u.k., german yields. italy, less than 10 basis point s. spain is lower. france about seven basis below
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an 18 month level. money moving into the fixed income and out of the equity market today. vonnie: fascinating. another day of that. investors worried about the global rally. they still have one big reason to keep on partying. why don't you give us the kernel of your thesis? >> this is my slightly contrarian take. for all of the fears about fed rate hikes, ecb tapering, suggestions that liquidity in china is tightening, when you look at the projections for interest rate adjusted for inflation, you actually have a lower real rate compared to last year. so, what you are saying is the fact that the global real interest rate is projected to
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end the year and 0.5% compared currently and that will provide some cushion for asset valuations and help to provide some liquidity to try to cushion against event risks or if trump doesn't an act is progrowth policies in the way that markets currently expect him to do. vonnie: true, but markets don't seem to have been operating on this ample liquidity story for quite a while. yes, when they found out the fed would be rising or raising rates , that is when rallies started in earnest, right? , so you've had may be progrowth liquidity. , but ateen inflation the same time, nominal interest rates have not advanced to the same extent that inflation has,
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but it delivers in real terms a stimulus to global markets. liquidity is extremely strong and you are seeing that not just in the u.s. or europe, but you are seeing it through the emerging markets. loosening of financial conditions in the u.s. despite the fed has raised rates two times since december. how long is that phenomenon going to remain? >> that is a very good question. conditions, that will arise from the strength and the dollar. they have been on a tear since december. conditions you could say have been loosening since the december rate hike and the rate increase last week. that is a real question about how long this will last four.
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it will be depended on whether trump will be able to enact his agenda. we see an uptick in trade. that is the chart we have shown. >> economic policy uncertainty is high. that is not necessarily a bad thing for markets. it could just be a range of bullish outcomes. it is not always the case that markets dislike uncertainty. they might find it difficult to trade for lack of knowledge, but we have actually seen markets shrug off that risk. not least good economic data. not had anyave blowup in the emerging markets like we did the last time the fed started making noise. why is that and should we continue to be vigilant? >> current account positions in
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emerging markets improved. compared to the taper tantrum of 2013, emerging markets are less dependent on external financing environments. at the same time, as i say, there has been a pick up in trade. the amount of dollar liability has risen in absolute terms, but the extent to which interest rate increases and fluctuations of that variety will cause problems, well, there has been a lot of improvement in terms of balance sheets for bonds, bond markets. mark: they have high real rates, so that is beneficial. rise,l rates start to chinese credit growth plummets, if central banks tied to policy more than markets think, your theory might crumble. >> completely. risk at the time will really be
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imperiled. at the same time, israel rates are rising as an improvement in economic growth and of credit , buth in china falls growth in china stays strong because investment is strong, that provides -- if central banks are increasing nominal interest rates because output gaps are closing, labor markets are improving, then you've got a lot of good economic data to trade off. a lot of positive technical. mark: should we call you a contrarian? is that fair? what is your moniker? a i would like to be contrarian, but not a self-conscious contrarian. it a contrarian, but not a self-conscious contrarian. vonnie: i think you need to find something in little bit shorter, mark. maybe we will get a few tweets
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and we will update a little bit later. emma: in europe, president trump's former campaign manager reportedly worked for a russian billionaire to advance interest of russian president putin, that is according to the associated press. the ap says paul manafort said he would influence news coverage in the u.s. and the former soviet republics. he tells the ap his work has been unfairly portrayed as inappropriate. tokey has asked to the u.s. remove it from the places covered by the new electronic band. passengers from several muslim majority countries cannot take laptops or other large electronic devices on board when they fly to the u.s. turkey says it should not be part of the band because it applies -- complies with international security rules. south korea plans to punish north korea after kim jong un's missilead a failed
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test. south korean and american authorities reaffirmed their tomitment to push can -- kim drop his nuclear weapons program. more attacks on the republican proposal to repeal and replace obamacare. a group investing major medicaid insurers says it has real concerns. some republicans are concerned the bill would blow holes in state budgets. the house is expected to vote on the bill tomorrow. global news toy four hours per day. this is bloomberg. mark: thanks a lot. coming up, west texas crude dropping ahead of u.s. inventory data due later. oil futures will be in focus. ♪
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vonnie: live from new york, i'm vonnie quinn. barton.m mark this is "bloomberg markets p a oil dropping for a third day. joining us from the cme to geouss this, phil from our rgo futures. how are investors positioned ahead of the key piece of data? >> you would expect this to be another build. we should be a build around 2.7 million barrels, the fifth consecutive week of building. plenty of oil to go around. we have the wells continuing to rise every week on that friday inventory data. it comes out here at about 631
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active rigs. we are at a 1.5 year high. a lot of pressure has been on as a result of the equity prices starting to fall over the last 48 hours and also you have libya, they are back online producing about 70,000 barrels per day on exporting. i would target $45 on the downside. it is not at all impossible for us to see some kind of washout go on here today. mark: $47.52 is where we are. $47.34, theclose, lowest since november 2009. dissentld stop crude's from these levels? you have thes that raising rates right now, so credit is going to start to get tighter for some of these well operators. if you fast forward down the line, you are going to start to see some wells shut in.
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will see the growth rate activity start to slow down, so the supply data should be a little cramped more. i would start looking at the upside of crude oil and i think we should pushback back above the $50 level. , seems the opec meeting far out, but you could play the call options of the upside just beyond that. do you think opec has used up its arsenal a verbal weapons to support the market? meeting is concrete, concrete actions probably, can it verbally support the market through may or not? >> how many times can you cry wolf? they are constantly doing this. they have said this so many times. it seems to work. it causes the shorts to run for the hills and it seems to get the active long investor back long, but i would not be surprised to see the investor back.
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it seems like there is a ceiling just in the mid 50's. i don't think we can get farther than that unless something really dramatic happens to the sleight-of-hand structure. to see you.great we will have the weekly oil inventory numbers at the bottom of the hour. 13 minutes to go. vonnie: exactly, mark. looking forward to see whether oil moves on those or not. it is time to look at some of the biggest business stories in the news. ge is responding to pressure from shareholder triumph. ge is lowering its target to base costs i $1 billion to about $24 billion. has been inrian talks with ge over the past month. whether warning about they can stay in business. they have lost $10 billion in recent years. sears added growing concern language. its comeback plan may help fix
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its problems. american airlines is an advanced talks to buy a $200 million stake in advanced southern -- china southern. has a marketn value of about $10 billion. that is your latest bloomberg business flash. mark: still ahead, in a post-brexit world, where wilbanks move as they leave london? many are looking across the irish sea. this is bloomberg. ♪
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vonnie: this is bloomberg markets. i'm vonnie quinn. mark: i'm a mark barton in london. as prime minister theresa may prepares to trigger brexit, eu banks are beginning to dust off
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contingency plans. dublin seemingly the best destination in the eu for london-based bankers forced to move after brexit? >> right, so this is one survey that was done from a perspective of an employee. if you are moving from london, you want people to speak english, low tax rate, low cost of living, and they factored all , plusthings in restaurants, cocktails, things like that, and they came up with dublin as number one. the banks are taking other factors. mark: cocktails are good in dublin? it is the cost of an evening cocktail, not just the quality. amsterdam following on from dublin. frankfurt in sixth place. you would think frankfurt, given its home for the ecb and deutsche bank that it would be
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higher up the list. , butis is just one measure certainly frankfurt seems to be popular among the banks, but if you think about the reasons why a lot of them are institutional. the ecb being there, a lot of other banks being there, and perhaps not so much on the social or cultural side. vonnie: michael, tell us about numbers. every time i read some of these announcement, it seems like the numbers are pretty paltry. that is not to say that you are not the lucky one if you are one of the 300, but we are not talking about the thousands or tens of thousands. >> right, so it seems like what most banks are at least thinking of doing at this point is doing a little bit in stages. on the initial front, moving somewhat depending on the size of the banks, a few dozen people or a couple hundred people to the continent and then seeing how the brexit deal really plays
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out and going from there in terms of the total number of the move. we are seeing a lot of banks make contingency plans to dip their toe in a little bit and just move a few hundred people at first. vonnie: is the english-language a major factor? it does seem like if that is the case, some countries are absolutely out. is certainly something that comes up a lot, especially when you were talking about paris. the paris lobbying group was here a couple months ago. english is still the language of business across europe. i think it is something that is a major issue. of abanks have natives certain amount of countries and have natural people to move back to that country, but if you are looking at a bigger pool, it becomes a bigger issue. mark: there is a huge disparity
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thaten how many jobs london could lose. the spread is 4002 242,000. that is a fast spread. one is going to become clearer? the big pieceink of that is a u.s.. people have their own reasons for saying one number rather than the other. i think the spread will start to narrow maybe in late 2018 because i think it is going to take up until then when we will have real clarity on what type of deal and what type of access the u.k. has to the eu. begins nextocess wednesday. as soon as theresa may triggers it, the process arts. >> the question is how quickly, if at all, does the finance industry get a transition deal?
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they want to not have the two your clock ticking, but to have a longer period of time. mark: michael, thanks for being here. great to see you. theking of brexit, commodities seeing a six day winning streak. the best since the u.k. referendum. still ahead, how strong is the u.s. housing market? existing home sales numbers falling 3.7% in february. this is bloomberg. ♪
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mark: live from bloomberg's world headquarters in new york and london, i'm mark barton. vonnie: i'm vonnie quinn. his is "bloomberg markets."
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we are waiting for u.s. weekly oil inventories. crude as been hovering around its november lows. the skepticism over opec cuts has traders thinking the glut is here to stay. we are looking for a bill, a bigger build than forecast, 4.9 million barrels from the u.s. crude oil inventories in terms of pushing crude inventories, that was also a bigger bill than forecast. draw an estimated, down 1.9 million. gasoline inventories, a bigger draw than estimated. with that said, we are not seeing too much of a difference, perhaps adding to losses, down another 0.6% or so.
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adding to concerns. data.o had housing abigail doolittle is here with some numbers of just how strong homebuilding has been. abigail: they have been extremely strong. a have been looking at decline in home building. leading the declines of the s&p 500. part of this could be the fact that we have the possibility of the reflation trade reversing on fears that the health care bill may not be passed tomorrow. drew redding, a bloomberg intelligence analyst says the reason this is heading the homebuilding index so much, the homebuilding sector, 100% exposure to the u.s., so we do see these big declines over the last two days. a little bit of stabilization after those existing home sales. we are looking at weakness, including the three components.
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inse are relatively small terms of the components, but we have the home builders, lynn art and d.r. horton down for days in a row. this is that same index over the last six months. buckhorn, typically this. -- typically this period is the hold period. the point to be made here is that the rally after january 31 is that much bigger, up 16% over that time the word. that last point is that we have seen this consolidation, this uncertainty, and it appears that this bit of consolidation could in fact break to the downside. who knows? this potential reversal of the reflation trade hitting the home
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builders hard, could have more to go. vonnie: thank you for that, abigail. a comprehensive look at the homebuilders. after rising in january to the highest level in a decade, median home prices jumped nearly 8% from last year. joining us now is a closer look at the state of the u.s. housing market as we head into the buying season of the year, the spring season, is the truly a chief economist -- trulia chief economist. what does it all even out to for the first quarter of the year? >> really, the take away here is that we have a supply problem. ,f we look at inventory inventory dropped year-over-year by 5%. using different measures, lows,ory is near historic especially when controlling for the size of the u.s. population. even though sales are down, we don't think it is because demand
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is down, but you can't sell homes that are not on the market. vonnie: prices are clearly off. actually at 3.8%. why are we so stuck for inventory when it seems like there is so much building going on and so much land available? >> i wish we had a silver bullet answer for this. there are many different things leading to the inventory shortage. elephant in the room is homebuilding. we are not building homes like we used to. but that said, only about one out of every 10 homes on the market is a new home at a given time. most homes on the market our existing homes. existing homeowners are not selling because many home spot during the foreclosure crisis turned into rental units. there are still some homes underwater.
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we are not all clear there. , price increases in some markets are preventing existing owners from trading up. if you are interested in buying another home, if that other buy is getting more expensive, you might choose to stay put. the same problems we have had since the financial crisis in various forms. they went back into a bubble. would you say new york is a bubble? >> i would not say new york is a bubble. there in a situation where fundamentals explain why prices are high because inventory is low. that is really the big head scratcher about this recovery. if you look at previous recoveries, usually demand picks up and so does supply, but during this recovery, we are seeing the opposite. drop whileng supply
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prices rise and that is leading to a snowball effect. prices rise, prevents people from getting into the market. inventory falls further. vonnie: a lot of people thought there would be major structural changes in u.s. housing and that it would no longer be a seminal part of the u.s. dream to own a home. is that the case? are we seeing a structural change in the percentage of people that want to own a home? we have in our work done, the youngest pool of potential homebuyers, the biggest pool are the young households, those under 35, more of them tell us that they want to own a home than any other generation. that has fallen a little bit over the last year. it is down to 72%. still, 72% of young households want to buy a house. we think that there are fundamental economic challenges that these potential homebuyers are facing, which is wage growth and also finding solid employment. vonnie: there were several money
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managers that had the vast tracts of housing, that were underwater. are these featuring at all in numbers or other still small of a group to make a difference on things like existing home sales and prices? >> probably not affecting the market at all. it is a very small share. there may be small examples where there is a lot of homebuying activity in very isolated geographic areas and there may be some effect on those markets. from a macroeconomic perspective, we think they are too small. do we get stronger? >> yes. vonnie: mark, you have been looking at oil in the meantime. mark: brent crude dropping below $50 a barrel. the month that opec announced its big deal to cut down. we did momentarily drop below $50. 1.65% lower today.
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we did have the stockpile inventories rise more than expected. oil down for a third day, lower since november. u.s. stockpiles keep expanding at record levels. 1.55% lower today. momentarily since november. let's check in on first word news. more from our newsroom in new york. day: in the u.s., it is three of confirmation hearings for supreme court nominee neil gorsuch. he says he would not hesitate to roll against president trump if the law required it. testified he made no promises to the president about how he would decide any future case. republicans predict he will win confirmation. in europe, french presidential candidate macron is edging ahead of far right candidate marine le pen. is that 26% in a first-round matchup against marine le pen.
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british prime minister theresa may is rejecting calls for scotland to have a say on brexit. she says she is negotiating for the entire united kingdom. >> what we want to ensure is that we get the best possible deal for this european union, for all the people of the united kingdom, including the people of scotland. because, at heart, we are one people. vonnie: meanwhile -- emma: meanwhile, the scottish parliament is expected to back nicola sturgeon's call for a second referendum on scottish independence. king felipe was among those taking part in the commemoration of attacks a year ago in brussels. global news in more than 120 countries. this is bloomberg. mark: thanks a lot. coming up, the state of the
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american health care balance -- the fate of the american health care act hanging in the balance and if it fails to pass, it could have far-reaching ramifications for president trump's agenda. ♪
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vonnie: you are watching bloomberg. i'm vonnie quinn. mark: i'm mark barton. this is your global business report. here is what we are following. bankers are fleeing the city following the brexit vote. where are they going and why is this one city in particular more esirable than any other? vonnie: 10 sent out with -- tencent is out with earnings. north korea's nuclear
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weapons program. the country has defined the international community with the missile tests. will anyone take action to retaliate? dublin is the best destination for european union accordinge to brexit to a european firm. of renting an apartment is much cheaper than in paris, frankfurt, or luxembourg. mark: the chief executive of the bank of cyprus says his company is making progress in reducing nonperforming loans. recoveryouted economic on the island. he spoke to bloomberg. >> cyprus has gone down and come back up, we lifted capital controls, we have the economy growing at the second fastest in the eurozone. we have a broad-based recovery
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underway. cyprus is an example of how to get an economy back up. tencent posted fourth-quarter profits that missed estimates. it is facing competition in the mobile gaming market. meanwhile, the company is revving up its battle with alibaba and advertising. it is adding more space to lou were brands onto its messaging service. brazil's state-controlled oil company has posted its biggest profit in almost two years. emerging from a massive corruption investigation. earnings have been hurt by the crash in oil prices are you shares are up more than 60% from a year earlier. vonnie: time now for our bloomberg quick takes where we provide context and background on issues of interest. north korea is not your regular totalitarian dictatorship. it has plenty of corruption and human rights abuses, but there are chilling characteristics
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that set it apart, including a nuclear weapons program. north korea's military is capable of an effective north strike, thatear question is up to debate. here is the situation, kim jong-nam defied the -- kim jong un defy the international community with the fourth and fifth tests in a decade. he said the country was nearly ready to test fire and intercontinental ballistic missile. president trump disputed the claim and criticized china. kim's military fired a missile that flew 310 miles. oal imports for a year. but more missile tests fired. rex tillerson said the u.s. would not rule out a preemptive strike. here is the background, north
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korea has been on a roar since the nation was founded after decades of japanese domination. -- occupation. north korea esko related and lower tensions -- escalated and lowered tensions to win diplomatic concessions. here is the argument. neither the carrot nor the stick approach of halted the nuclear program. a collapse of the government might pump an influx of refugees and create a well armed u.s. allies on its border, that is china's fear. a senior north korean defector says that as long as kim is in power, the country would never give up nuclear weapons, even if it is offered $10 trillion in rewards. that is your global business report. had to for more stories. mark: the fate of the american health care act is hanging in
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the balance with a vote in the house expected tomorrow. kevin's a really joins us now -- li joins us from capitol hill. how is the boat looking? kevin: it is going to come down to the wire. the sources on both sides of the me that they are not sure if president trump and house speaker paul ryan have the votes. one senior aide to a republican senator who is against the legislation told me that they are anticipating that the vote could even be delayed. i put that to a senior leadership aide who is telling me that there are no plans to delay the vote right now. house freedom caucus members, the tea party conservative members in the republican party, really doing all they can to stop this vote. vonnie: kevin, are all of their seats safe? is there anything to stop a couple of the freedom caucus members from defecting from their caucus line, if you like? whip mobile is in
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full display, if you will. president trump visited capitol hill, saying they would lose the majority potentially of the bill does not pass. that said, the house freedom caucus chair is holding strong still opposing this, as is representative jim jordan, another prominent member of the freedom caucus. all opposing. they feel this is not conservative enough. this is where it gets interesting. they view this as the defining moment for the new republican party. they think that this is the moment they will be able to craft moving forward and other legislative agenda. however, look for a huge policy , atle, to say the least fight coming from this administration against the freedom caucus if this fails because this was one of the top campaign promises that then candidate trump campaigned upon. more importantly, he cannot get any other legislative items that he first passes health care. -- if he does not first pass health care. vonnie: kevin on capitol hill,
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thank you. i believe we have breaking news. mark: shots have been fired outside the u.k. parliament in london. at least one person has been treated. one person has been held at gunpoint by police. reporters see two people on the ground outside parliament. people on the ground and within the precincts of parliament in london and westminster, police have closed the streets around london's parliament square and another development is the house of commons, the sitting in the house of commons has been suspended. we will continue to monitor this. the breaking news is shots have been fired outside the u.k. parliament in london. stay with us. this is bloomberg. ♪
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mark: breaking news in london. shots have been fired outside
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parliament in london. one person has been treated and held at gunpoint by police. bloomberg reporters at the scene see two people on the ground outside the houses of parliament. arepeople on the ground within the precincts of parliament within london and westminster. police closing the streets around parliament square and the house of commons sitting has been suspended, as well. a message from the police. they are aware of reports of the incident at the houses of parliament in london. we will continue to monitor the development and try to get our man on the scene in just a few minutes. let's break away. i want to bring our man, our oil man, mr. kennedy, to get some perspective on oil. so when you record climb today, causing crude and brent to trade lower. here to put it all in context. belowmomentarily broke $50. it is all very symbolic now
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because it broke below $50 for the first time since opec announced the historic output cut deal. what is going to stop oil falling even further given these record stockpiles in the u.s.? will: the stockpiles are not behaving like opec wanted them to and like many analysts predicted. as those cuts came into effect, there is a lag because production -- people thought that now it is a few months since the cuts started at inventories of dropped, but clearly, that has not happened. big bills, bigger than we were expecting, bigger than analysts were expecting, as we say, a record high, and that is really putting pressure on the price. mark: if you want to follow this , this is brilliant. everything you need to know about the crude inventories. at what point is it prohibitive, the price of oil? this is the obvious question for all of those shale producers. will: yes, are they going to
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become victims of their own success? we have seen steady gains in production in the u.s. most people have been basing that on $50 oil and now it is nearer $47. if it continues to fall from here, we may see that rebound in shale start to slow, but it has to be when there are signs of it and there have been no sign of it yet. the rebound in shale production has really surprised opec and thrown their policy into disarray. vonnie: put it into context for us, will. rig count is at 631. how much of a build in rig count is that? will: it is very significant. it is not back to where it was during the height of the shale boom, but it is an awful lot higher, several hundred rigs higher than during the slump a year ago and it is building week after week after week.
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so, yes, it is hugely significant. i said to mark, it is really significant. vonnie: what is more interesting at the moment for opec? brent prices were wti prices? there is always a fairly similar spread or a three dollar spread. what influences the international market more? will: brent is the benchmark for two thirds of the world's oil. brent is the key benchmark here. wti is clearly the market. it is the benchmark for the u.s. we look at opec's key markets in europe and asia, it is brent that matters. it is psychologically, symbolically important to see it below $50. what is really important is that oil has now given up its majority gains since opec agreed to cut production last year. you soill kennedy, thank
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much. reiterating the breaking news, shots have been fired outside the houses of parliament in london. bloomberg reporters see two people on the ground outside parliament, within the precincts of the parliament in london. police of close to the streets around parliament square. the sitting in the house of commons has been suspended. the prime minister theresa may took questions. police said it is aware of reports of the incident. parliament does continue to watch bloomberg to hear developments on this already, we will continue to monitor this story very closely, you are watching bloomberg television. stay with us. ♪
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mark: breaking news here in london, shots have been fired out side parliament in. at least two people are being treated.
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the shootings took place along the road inside the gates of parliament leading on to parliament square. police have closed the street around the area. work in the house of commons has been suspended. wednesday is traditionally pft use when prime minister -- pfq 's. one person on the ground appears to have been shot by a plainclothes police officer, according to a witness account. we are endeavoring to get rob hudson on the phone. we will continue to monitor the story. vonnie: keep you abreast of all the headlines. it is 90 minutes into the trading day. abigail: we have some green on the screen, finally looking at gains for the s&p 500 and the nasdaq. up until today the s&p 500 was down four days in a row.
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there is mixed trading action as investors continue -- consider yesterday, what the worst stock selloff of 2017 mean. fears the health care bill may not be passed tomorrow and that stimulus will not come to help the reflation, only time will tell. , small gain for the s&p 500 and the averages are flipping between small gains and losses. this is that big selloff, the worst selloff of the year. we have the s&p 500 up slightly but over the last two days, down 1%. it will be interesting to see if investors decide to buy the dip where if there is more pain ahead. nike a big drag, having its worst day since june 2012, orders declining 9% relative to expectations.
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american airlines down more than 1%. they are said to be in advanced talks to buy china southern stake, and shares of morgan stanley were downgraded. sears holdings down more than 14% after they said they have " "growingal doubt" and concern." shares are trading just above one dollar. we first had oil inventories out today, big bills, much bigger than what investors were looking for. wti, brent trading lower. both down more than 1.5%, a big slide for oil, clearly hurting some of the oil names like exxon and chevron. let's just show a quick chart. this is a longer-term chart of oil. in pink we have the 50 day
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moving average, in yellow the 200 day moving average. what has been buying support, but right now we have wti below the 200 day moving average, perhaps suggesting more declines are ahead. mark: just want to keep you updated on this raking story, if you just joined us. shots fired outside the houses of parliament in london, at least two people are being treated, according to a bloomberg reporter at the scene. the shootings took place on the road inside the gates of parliament known as parliament square. police have closed streets around the area and work in the house of commons has been suspended. one of the people on the ground appears to have been shot by a plainclothes police officer. this is live pictures, that is the view from westminster bridge.
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to the left is the houses of comments. you can see the police cars, the cyrus, flashing lights -- sirens, flashing lights in the middle of your picture. clearly the area has been cordoned off. armed police with pistols drawn have been seen entering u.k. parliament. two ambulances are now within the precinct of the u.k. parliament. from bloomberg reporters that people are being treated on the westminster bridge. that is a shot from westminster , according toople bloomberg reporters, are being treated. to the left is the houses of comments and to the forefront, which you cannot see, that is a standpoint from westminster bridge. we will continue to bring you updates, and the house of
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commons, just to reiterate, the chamber has been advised by police to remain in lockdown. the commons will remain suspended until further notice. we will keep you updated on the latest developments. vonnie: let's hope that that is the extent of it. let's stick with the market. european shares fall over skepticism on the trump trade. joining us is head cio of short-term investment opportunities at ubs. have your services bay, so much more -- become so much more in asd over the last few months people are maybe holding onto extra cash because they do not know what happened? vinay: yes, indeed. into uncertainty last year it cap selling in spite of the large cash balances. they want to understand what the new administration is about so yes. vonnie: what do you tell them,
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what should they do? vinay: basically three point. valuation has supported risk assets for some years since the crisis but that is just a number. unless there is a capitalist to subtract that value, because the world economy is basically in rehab and is being helped along by policy. we need very helpful policy -- powerful policy across monetary and fiscal, and that is what we have been getting. world growth is picking up in response. you have to be very careful that if something interrupts the progress of policy, that is a reason for concern. i do not think it is going to be short-circuited anytime soon, so basically we are trying to get people to stay invested and he is opportunities and dips to add to assets. if i can cut to the chase,
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the question that we are asking everyone today, especially abigail and myself, is this a blip or a correction, the moves we have seen and the stock market in recent days? vinay: nothing goes in a straight line. we have been up for many weeks. this is an interruption but is it unprovoked? i would not say that because the market is rightly concerned about getting the tax cuts that we hope to get over the next year. cuts, is not just the tax which i do not think are necessarily what is driving the market because growth is picking up all around the world. it is a very important part of ,he story so yes, i think it is we just need to see progress on the legislative front. had a guest on earlier
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who said there is still an abundance of liquidity which suggests -- and he admits he was being a bit contrarian -- on that basis alone even though central banks like the fed are raising rates and the ecb is less dovish, there is an abundance of liquidity which likerts risk assets equities, which tells us this rally still has legs. is that in argument you would use? vinay: absolutely, i would agree. policy support, china has been very powerful to the global economy, not just china itself. whether it is japan or peripheral europe or the change in policy in the u.k. or canada or the u.s., it has been a policyent message that support is here, balanced across monetary and fiscal, and that is the key. vonnie: what are the short term investment opportunities you are liking?
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vinay: to buy risk assets and hedge obvious risks. on a cheery policy overshoot, if monetary policy makers decide -- monetary policy overshoot. i do not think the u.s. market is priced -- vonnie: when you say risk assets, do you mean the typical ones? -- emerging at us markets too risky? or anything but treasuries. vinay: anything but treasuries of developed countries. you have to hedge against an overshoot of short-term rates. risk,against geopolitical which is not that easy, that volatility is depressed so when you have a chance to own volatility at depressed levels, you must do that. assets that develop from uncertainty in the world light gold, which we think is underpriced, these are the sort
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of things that you need to own and keep a close watch on what is happening. vonnie: thank you very much. to bring you up to speed on this developing story in london, shots fired at the houses of parliament in london in westminster. at least it does go people are being treated according to a bloomberg reporter on the ground -- at least two people are being treated, according to a bloomberg reporter on the ground. you can see that police cars, you can see an ambulance. clearly the area has been cordoned off to an extent. there is a limit to what we can see. shootings know, the took place along the road inside the gates of parliament leading onto the square. you cannot see that there. police have closed streets around the area and work in the house of commons has been
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suspended. typically the prime minister takes questions from her fellow members and that has only happened. one of the people on the ground appears to have been shot by a claim close -- plainclothes police officer. we are hearing from the bbc there are reports of a vehicle mowing down several people on the bridge. that is the bridge, that is westminster bridge. from the bbcage showing people lying injured on westminster bridge. ambulance,n police, fire service presence is on westminster police as well. that is something we should be aware of, two ambulances and now within the u.k. parliament precinct. let's bring in our reporter rob hutton. what can you tell us? : from our window overlooking
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parliament square, a few minutes ago one of my colleagues was astonished to see someone running in and then being shot. there now appear to be two people on the ground who are being treated next to ambulances . a helicopter air ambulance has landed in parliament square. parliament square is shut off to all traffic. it is possible there is someone else being treated on a bridge but i cannot see, and we are not allowed to leave our offices at the moment. we are in a total security lockdown. we see a large number of armed police come running into the building. whether that is just a security precaution i am unable to tell you. mark: we are just hearing from the house of commons leader mr. letting 10 that a policeman was apparently stabbed and an assailant was shot.
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we are also hearing from the police but this major incident has been declared in the met police area of london. the police is calling it a major incident. they have made comments to lawmakers in the house of commons. we are hearing from the bbc it is possible people were mowed down. are you able to see any evidence of that on westminster bridge or not? rob: i have heard that report too, that something happened on westminster bridge. about -- trying to lean out the window -- i can see at least two ambulances on westminster bridge which runs next to big ben. my view is from big ben past westminster abbey. itan see two ambulances so does not look like people have been injured on the bridge but i am unable to tell you more. vonnie: we know they have been
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debating things like the scotland vote or potential scotland vote with brexit. do we know where all the members of parliament are, where theresa may is? rob: it is prime minister's questions here so there is always a full chamber for that. suppose about an hour and a half ago. mps won't have been and the chamber but a lot of them will be on the premises. we don't know where theresa may is at the moment. there are lots of ways of getting her safely back to downing street. it is quite common for prime minister's after prime minister's questions to stay in the building and talk to mps and do business, but she did have a half past 3:00 appointment to see a polish politician. i can see somebody is being
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lifted onto a stretcher. i can see they are doing cpr down there. the prime minister did have an appointment in downing street this afternoon so probably she had already gone back. vonnie: it does appear that these incidents are at least multiple, do we know if they are separate incidents? i guess the police have not figured that out. rob: i am afraid we just do not know. as we know, one of the features of modern terrorism, if that is what this is, is the multiple, simultaneous attacks, but this is real speculation. mark: given that this is the home of u.k. politics, and extremely secure area, these incidents are extremely rare, aren't they? rob: they are. in a way we have always been
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expecting an attack on parliament, and over the years over the decade i have worked here, a feature has always been the increasing levels of security. there is the visible security. this is one of the few places in britain where you will see a policeman with a submachine gun. there are ways they have built the gates and build barriers around the place that you would not necessarily notice if you did not look for them, built deeply into the ground to prevent people from driving trucks or whatever at the building. i suppose we have always expected that someone would make an attempt one day. it is still shocking when it happens. mark: we are seeing pictures, rob, of a car and a number of police officers around the car, seems to be a person lying on , possibly the emergency services surrounding that person.
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we just saw a helicopter on parliament square. is there any suggestion -- as you say parliament business has been suspended -- is there any suggestion for how long given an incident like this, that business will be suspended? rob: there is not. there are two competing priorities, to create business as usual, to make the point that britain continues in the face of these things. on the other hand the major priority will be the major priority will be to securing and making safe of parliament. i can see someone is now being loaded, one of the people is being loaded into an ambulance. vonnie: rob, take us through again exactly what happened the first yunel of whatever kind of attack this was, how it was communicated to the media. rob: because it is taking place
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in parliament square, we can all see it out of our windows because the press gallery tosically runs from big ben what you would think of as the main part of parliament. unfortunately, we have had a ringside seat for this appalling incident. i suppose about half hour ago one of my colleagues game running in and said someone has been shot. we could see two people on the ground in the courtyard outside parliament, outside the great hall of westminster. and very rapidly, the square was sealed off. an air ambulance arrived shortly afterwards and since then, the main thing we have seen his large numbers of armed police, some with pistols, some with submachine guns. the new location of scotland
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yard is actually right next to parliament so they are extremely close, and many of them were in plain clothes summoned to get down here, some carrying will approve shields. -- bulletproof shields. we have been watching as the square is sealed off. to help these people that are on the ground in front of us in the square. mark: what we are hearing from ap as i said earlier, these are the house of commons, a police officer has been stabbed outside parliament. that is the latest we are hearing. rob: while we were looking at this, and the chamber in westminster, david letting 10, the leader of the house of commons gave a brief statement in which he said a police officer had been stabbed and someone else had been shot. only official
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statement we have had in parliament, and parliament is now extended. as the world's attention is on westminster 29,d of wednesday, march this now of course completely overshadowing that the world's attention was leading up to either the triggering of grexit,'s -- brexit, something that many have waited since the referendum in june. rob: yes, it has. -- this will completely overshadow all of that. it just goes to show how much events can run out of control for a prime minister. i have just been shown some pictures by a colleague of westminster bridge, which i could not see, which has been
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stopped. stationary buses and a stationary truck stopped, and a police -- police and an ambulance appeared to be helping people on the ground. mark: we have an aerial shot. we can see big band and the entirety of the house of commons , all sorts of activity, emergency services to the side of the houses of parliament up to westminster bridge. we have probably got a better -- rob: you may have a better sense of what is going on than we do. mark: can you see crowds of people? the whole area is cordoned. rob: all of parliament square is now closed off and it looks like whitehall has not been cleared -- now been cleared. whitehall is the street that downing is on.
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police are telling people to go back inside their offices. station,ad to victoria there is a crowd of people being held back by police tape. parliament is right in the center of london, so this is a major traffic intersection. there is a lot for people trying to go through here on their way to places. it looks like victoria street, all of the cars have been cleared out so they are obviously taking this extremely seriously. they do have plans for these incidents. they prepare for these things. we all know that one of these things might happen. i canst comparable thing recall is in 2005, the second attack on the london underground when i was caught in a locked down in downing street. on that occasion, a tourist approaching the gates was nearly shot because he failed to
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understand what was going on. so police have studied these things extremely carefully and made serious plans. mark: it is made all the more difficult by this is the center of london, the center of political power here in london. this is an area which one can access from many sides, so there will be many people who have been held back by the emergency services. rob, please stay on the line and do what you need to do. we will come back to you. emma ross thomas, our london bureau chief is here. emma: rob is down there witnessing this from the very beginning, so he is certainly your best source. police are not giving any indication whether this is one incident or two, what exactly is going on. it is pretty fast moving.
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it is also true that we have all been waiting for something like this for quite a long time. mark: as rob cited, 2005 was the last incident we all remember. since then there have been many other incidents in france, brussels. vonnie: how could something like this happen if security is as tight as everybody makes out is to mark -- makes out? how could somebody with a car out of control or knife or firearm get past all of that heavy duty security at a time when we are expecting this? emma: westminster bridge is a public bridge so there would not be any sort of restrictions on westminster bridge. vonnie: where does the security come in? after meet the security westminster bridge at which point you are already by parliament? emma: maybe rob is down there
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and can answer that question with her detail. -- more detail. it is not clear if anything has happened inside of parliament, all of this seems to have happened outside. it appears security has done its job, as it were, by stopping anyone from going into parliament. mark: you can see the gates, this shot highlighted perfectly -- highlight it perfectly. in those gates that surround the house of our lament, -- houses of parliament, there obviously is constant police present on a daily basis. that is the area which one would say has the most heightened presence of police. if you just walk around parliament square, you see a constant presence of police and emergency service personnel. vonnie: the president in the u.s., donald trump, has just had
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an update on london. he was speaking at the white house at a health care event and has had an update. ,s it obvious that parliament at least the area around parliament, was the target? mark: i want to bring in some more breaking news, theresa may's office has confirmed the prime minister is safe. that is just coming through now theresa may is safe after this incident in parliament. we were unaware. we have also seen an image of the actual chamber where the mps are all sort of sitting and locked down and have been advised remain, so we know they are safe as well. mark: parliament is suspended. vonnie: it is no coincidence that this happened in parliament square. to createearly trying a nuisance around parliament square if not get into
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parliament, can we say that much? emma: i think that much is clear. mark: it is important to stress this is very rare, given this is the home of politics. rare butdent is very as you have said, emma, and rob as well, waiting to happen. emma: many thwarted attacks over the last decade or so. vonnie: we will recap in a moment. we are still gathering details of what looks to be maybe several incidents, maybe each slightly different, slightly separate. let's bring in rob hutton, our parliament reporter. any updates? rob: the main update we have had here as you are saying is we have been told the prime minister is safe. one of the ambulances that was treating one of the people on the ground has now left. the other ambulance is still
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here. it appears that they have stopped treating the person who is on the ground here, though the ambulance is still here. on the bridgee approach that runs alongside parliament, there is a car crashed into the wall, it seems. next of parliament square. as i was saying earlier, these are stonewalls but they are even stronger than they look. they are buried it deep into the ground because there has long been a fair that someone would attempt -- a fear that someone would attempt to drive some sort of vehicle into parliament, try and break in, in that way. a lot of thought has gone into how to prevent that. i think you asking earlier
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whether it is possible to simply cut the square off for traffic permanently, the problem is that london is a living city and it was not designed that way. parliament square is a route from and to a lot of places. it is a home of democracy but also a four lane roundabout. simply to cut it off would require years of thought and work, and i think that is presumably why it has never been done. we can now see more police on the move around out here, but things seem to have reached a moment of, i do not think calm is quite the right word but no change. mark: we are seeing an aerial picture of westminster bridge on the south side and there is a lot of activity. there are emergency services personnel clearly treating somebody or some people.
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thatve heard from sky news people on westminster bridge are laying down on the ground. we did see that in this aerial picture does highlight that. we heard that at least five people have been hit from this vehicle, traffic coming to a complete standstill on westminster bridge. rob: i can see someone on a gurney being run across westminster bridge. on the other side of the bridge is st. thomas's hospital so this is very close to the headquarters of police and one of london's largest hospitals. people aren see the being treated and you can see that bridge is be cut off. -- be cut off. cut off. vonnie: how far are we from 10 downing street, and do we know
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if theresa may has been ushered away to some other location? i would imagine she is at 10 downing street because that is the closest, safest place in london. we are less than a 10 minute walk, a quick jog really across the road to downing street. in his early days david cameron used to do the walk to prime minister's questions. they do not do that anymore. i am told there are tunnels that run underneath whitehall so the prime minister can move actuallyy unnoticed, practically the way the prime minister tends to arrive is why car with a heavy as worked. -- by car with a heavy escort. that is the best way to get her from downing street to parliament. this is the hub of the british government so it is not just downing street, the ministry of
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defense is on whitehall, every major government department is within a 10 minute walk of where i'm sitting. mark: thank you for joining us. we will get back to you very soon, rob hutton. emma ross thomas is also our london euro chief. think we should say that we do not know that this was an attack on parliament, but we know it is incident around the perimeter of parliament. that is probably not a coincidence. following that breaking news, let's head back to the market, equities dropping across the globe as investors question president trump's ability to enact global growth. emerging-market talks halted an eight-day winning streak. are we overreacting? is the market still trading euphoric that the president to
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enact mls is taking a breather? john: i think it is just taking a breather, and the way we see it is the market was celebrating that haveundamentals really been getting increasingly better over the last few years on the back of all the work that our central bank and central banks around the world were doing. we have a global economic recovery, fairly undeniable, and a sustainable global economic recovery in the united states. the trump bump was a bit of a breeze under the wings of a bull market, how is that for a mixed metaphor? the effects of what is going on in washington on a day-to-day basis concern the market but not much compared to the positives that outweigh that s that washington -- mess that washington is in. 500f last friday, the s&p
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come at mid-cap s&p 400 and small caps were up respectively 29.5% is.1%, and effectively in the last 12. we would think the market right now is looking for any kind of a catalyst to take profits that would justify it because in an upward moving market when you have enough momentum, people have just hate to take profits -- eight to take profits if they feel like they might miss the next leg up. 400, and the s&p 500, russell were still up. vonnie: the dollar index is up. below 100, making a big difference to this market. we have to wonder if we are going to see more drops. a 1% drop is nothing in relation
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to the data you have given. john: we think the market remains vulnerable because it is had an extremely good first quarter thus far. it has been good. we had fourth-quarter earnings came in decidedly better than expected. i think they were up over 6% for the s&p 500 overall, so when we look at it we have got to think we are in a good stent. any questioning could provide a reason for the market to pull back. mark: i have forgotten this stat , if you miss the last leg of a bull market you are missing on a lot of percentage gains potentially. do you remember what that is? john: off the top of my head i am not sure but it was substantial double digits that one would this. we say staying in the game, especially when fundamentals are good, make sense. mark: i just want to come back
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to this incident that is taking place in london, police have confirmed it was a terror attack. multiple shots were fired near the houses of parliament today during an incident that saw people hit by a car on westminster bridge. police have said it was a terror attack. we have seen images of people on the bridge, on the sidewalk near parliament, treated by medical staff. at least 10 people have been injured while video footage showed a crashed car nearby. if i can just come back to a question relevant to this incident, it is remarkable how resilient the market are, isn't it? it has been proven again and again going back to 911 and the terror attacks in london in 2005, back to the attacks in france brussels. -- france and brussels.
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markets have proven very resilient. have,they most certainly and it is the recognition by the market that even with this insidious problem that exists today with terrorism, business does go on. people get married, buy homes, go to school. vonnie: we have to jump in because president trump will be speaking in just a moment. he was attending a women in health-care panel and made some comments on london. i want to mention the london police say they are treating the incident around the perimeter of parliament as a terrorist incident, treating it as a terror incident. we have a moment before we get to president trump. john: indeed, life goes on is what is proven. time and time again one just has to look at israel, a very successful economy and yet they have been living with terrorism for years. mark: sorry, john, do continue.
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john: and in that light, the markets reflect that. i think if anything when we look historically, if you look at geopolitical events like when the russians were putting missiles into cuba during the christian era, and when -- khrushchev era, and when jack kennedy face them down, the markets faced volatility but overall they were higher after that event, and they rebounded from a slight pullback. the resilience of business, the size of economies moving forward -- both singular trends cyclical trends and secular trends, it makes sense that the markets are resilient. vonnie: if we don't get for example, a successful health care vote tomorrow, does not
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push the markets sq? -- askew? john: it is a problem for the markets to deal with and can sitter but i do not think that consider, that i do not think it would cause any significant pullback. administration barely two and a half months into the process, the professional politicians in washington are getting used to a highly unconventional president the. -- presidency. nots near term, but i do think one that derails the market. say they arepolice treating this parliament attack as a terror incident. the metropolitan police saying the terror attacks at or near parliament are being treated as terrorism. scene.s remain on the
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we are treating this as a terrorist incident until we know otherwise. aremetropolitan police asking people to avoid the following areas -- parliament square, whitehall, westminster , and theictoria street victoria embankment. vonnie: that does sound like aree an area and they taking every precaution, treating this as a terrorist incident. we will hear more from the police in london as soon as they know more. i think treating as is definitely some kind of language that police departments tend to use when they are not quite sure of the need to be very careful about what measures they take in investigating anything like this. mark: we are seeing an air ambulance lifting from parliament square that was stationed on parliament square from the entirety since we started covering this developing
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story. that air ambulance has left parliament square, multiple shots have been fired near parliament on wednesday in london during an incident which has also seen people hit by a car on westminster bridge. the lease say this is a terror -- police say this is a terror attack. charles litchfield is with us. you give us your thoughts? charles: it does seem like it is a terrorist attack because the car ramming the car into individuals on westminster bridge, and then an attack on the police man seemed very much intentional and as far as we know, conducted by the same person. as far as government reaction, we do not expect too much. , closeery close to home to where the mps were debating at that moment and the prime
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minister was in the building as well. we do not expect a very substantial political response just because i think this government is mostly preoccupied by brexit. it has been clear it has a tough line on here to. -- on security. i think it is quite difficult to do much more, apart from bolstering police presence. we do not really expect much of a reaction from the government. vonnie: according to the language we get from the police, they are treating this as a terrorist incident until we know otherwise. is this typical protocol? charles: i think so. when it seems fairly obvious the attack was intentional and that loss of life was the goal of the assailants, i do not think there is any point in saying we don't
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know, we will have to wait and see if it is a terrorist attack or accident. this is being treated as a terrorist attack until proven otherwise. mark: we have seen evidence of multiple terror attacks in cities like paris in the last 18 where or so, periods there have been not just one but two or three attacks. is there any suggestion that this could be the first of a number of attacks? could you say that this is an confinedthat is just to the area around parliament square? charles: we clearly don't know at this stage. i think the reaction of the police will be one of caution. easiest tohat it is create a sense of panic, which
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is the terrorist' goal by attacking many people in a staggered fashion. this happened on at least two occasions in paris in the last three years. they will assume that is possible, and that is why westminster has been locked down. from what i know not only in parliament but various ministerial buildings, people are not allowed to leave or move between the buildings. they will try to gradually bring the situation back to normal as soon as they can work out whether other attacks are planned. the assumption will be that that is highly likely. jurisdiction, is that the local metropolitan police, and at what point does that moved to another agency? they are treating it as a terror attack but that has a whole variety of meetings -- meanings
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that the has to treat everything as a terror incident until a no more, to the idea that they have to take seriously but they are not litigating this. even if it was some kind of "terror attack," there is nothing to suggest it was not a domestic attack, right? charles: indeed. the assumption will be if this is a terror attack it will more likely be motivated by radical islam than any kind of domestic political motivation, although everything is possible. jurisdiction, the metropolitan police have a counterterrorism unit which will be in charge of the moment. i think it will take a meeting of the covert committee before it is passed on to any other authority, but the metropolitan police will remain in charge of the initial investigation and managing what goes on, on the streets of london, the commuter
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flows and whether there are any threat. you remind us of the current threat level in the u.k. and the overall threat level in europe right now? charles: the current threat level is assessed as severe by mi five, the british counterintelligence. severe means that an attack is highly possible and probable. is one threat level that is higher than that, critical, which i assumed the u.k. will be passed into in the coming hours. the threat level has been extremely high in the u.k. for i think three or four years on the basis of intelligence the u.k. has been getting about people forting the middle east isis and other forces coming back to the u.k. in europe, it is very much the
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same situation. the government assumes terror attacks are likely and as we have seen the past few years, their assessment has been correct. vonnie: at what point will we -- wille in the sense they keep everything running smoothly and london at least for now, talking public transit, all schools remain open? will it be treated as an isolated incident around parliament until we get more information? charles: yes, as far as terrorist attacks go, all of them are extremely unfortunate but the scale of this one does not seem to have been huge. i think old public transport facilities will remain open. london didnts and not involve schools are offices closing the next day so i do not think that will happen. some trains and tube lines were
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closed, but the terrorist attack was smaller and did not involve transport i think at the moment people should be able to get home. mark: i just want to read a statement by the london metropolitan police, asking people to avoid the following square, parliament whitehall, victoria street to the junction with broadway and the victoria embankment of two embankment tube to allow emergency services to deal with the ongoing incident. police were called at approximately 2:40 p.m. london time for a report of an incident on westminster bridge. police said officers including firearms officers remain on the scene. they are treating this as a terrorist incident until they know otherwise. that is the latest statement from the metropolitan police.
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eurasia group stern lichfield there, thank you, charles. you are watching bloomberg. ♪
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mark: breaking news here in london, multiple shots fired near parliament on wednesday during an incident that also saw people hit by a car on westminster bridge. you are watching live pictures of the area around the houses of parliament and westminster in london. police say it was a terror attack. we have seen images by bbc showing people on the pavement lying down the ground, being treated by medical staff. at least 10 people have been injured, video footage showing a crashed car the shooting taking place along the road beside parliament. police have closed the roads around the area.
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house of parliament building has been put into lockdown. we will continue to monitor this developing story. vonnie: rob hutton is still inside parliament. equities are dropping around the world. the ftse 100 has not really changed since we heard of the attack, down two thirds of 1%. the british pound is slightly weaker today by about 1/10 of 1% . we are back with john stoltzfus. traditional challenges to the market, have they lost their fight? have because they we have had so many challenges of the last eight or nine years. when we look at it, it does not matter whether it is economic or geopolitical or regionally political or country specific.
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the markets are going about their own thing and working things out, and it is because the size of the global economy, the dissemination of information, the ability to discount dramatic changes relatively quickly all produce an overall different tone than we might have seen in another era where news was 24 hours delay or longer. a previous guest has had a short-term securities at ubs wealth management and says clients are very concerned about keeping a lot of their assets liquid and looking for short-term opportunities, but all risk opportunities are short-term. john: events that occurred that create volatility remind one that the market has various levels of focus. there is the short term, the intermediate short-term, intermediate, and longer-term investors. weakness speaking,
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looking back historically on a broad basis has been an opportunity to buy rather than sell. similarly when markets get richly valued, it is an opportunity to take some profits. this is why yesterday's move we were not particularly concerned about. vonnie: what about currencies? have seen major fluctuations and in bond yields. what are you advising your clients to do in terms of currencies? john: we thought in the fourth quarter last year that the dollar had become considerably overvalued on expectations of stimulus, producing some kind of results rather quickly. we also thought the bond market has been oversold so we are not surprised to see that the dollar has weakened and bonds have rallied modestly. john, we are coming to the end of the first quarter pretty soon and will be getting into the new earnings season.
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do we continue to see more and more modest profits? what do companies do companies due to buy back shares? can, but even then it is modestly more expensive when you look at it. it is a quarter basis point increase on the fed funds rate, does not have that much of a dramatic effect on borrowing costs for corporations. are the most part the economy is getting better so many companies are experiencing improvement in so profit isrofit, at least not a problem for companies this soon into a fed funds hike cycle. oppenheimer, john, chief analyst. we are getting comments from angela merkel's spokesperson, commenting on twitter. mr. sievert says merkel's thoughts are with our british friends. just to reiterate, we will show
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you live pictures, multiple shots had been fired at the houses of parliament in london. metropolitan police say the assault happened near parliament and are being treated as terrorist incidents. in a reconstruction of the timeline, the bbc says that is into appears the car ran the main building wielding a knife, attacked a police officer, and was shot. we will continue to monitor the latest developments on bloomberg television. ♪ show me academy of country music awards.
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and an exclusive encore performance by kelsea ballerini following the show on xfinity x1. the acm awards. live on sunday, april 2nd 8/7 central on cbs. mark: breaking news, we are continuing to monitor the incident near the houses of parliament in london where multiple shots of been fired. richardson -- metropolitan police say they are treating the
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incident as a terrorist attack. it also saw people hit by a car on westminster bridge. his are live pictures of the area. the entire area has been cordoned off. the assaults are being treated as a terrorist incident until we know otherwise, that was a statement released at 3:31 p.m. in london, roughly 30 minutes ago. the bbc has reconstructed the timeline. a vehicle drove into the fence outside parliament and a man ran into the main building wielding a knife, attacked a police officer, and was shot. let's bring in rob hutton who has been beside the scene. can you reconstruct the timeline of the events for us? rob: as best i can, yes. a little bit before 3:00 it seems somebody drove across the


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