tv Bloomberg Markets Americas Bloomberg December 6, 2017 10:00am-11:00am EST
brand-new headquarters in the city of london, i'm mark barton. welcome to "bloomberg markets." vonnie: here are the top stories we are covering from the bloomberg and around the world. more dissent in the republican rank-and-file over tax reform. president trump is set to make an historic announcement, claiming the u.s. organizes jerusalem as the capital of israel. we have the latest from washington. in moments, an interview with carson block. he will reveal his latest short and discuss the overall trends we are seeing in this interesting market. and crude oil falling hard ahead of key inventory data later this hour. a preliminary report showing stockpiles gaining. that and lots, lots more. we are 30 minutes already into the wednesday trading session in the u.s., and we are heading towards the year-end.
abigail doolittle is with us. lots going on in the market. on indeed.at's going investors are not taking to pick up commitment. small move for the major averages. doubt, s&p 500, and nasdaq, flipping between gains and losses. this is due to the choppy, jittery trading we have seen with intraday reversals to the downside. investors are trying to make sense of what is happening with ,axes and other issues in d.c. plus the yield curve flattening. what is the effect of that on the overall market the head of technical analysis at oppenheimer is saying stay the course. he believes we are in the second year of a bullish market trend. let's hop into the bloomberg, because there is another view always. 53, thisok at g #btv 20 is the long-term chart of the price to sales ratio on the s&p 500. typically we look at the price-to-earnings ratio, but this is more cyclical
industries. it does not measure taxes and other issues. it is considered by some to be a pure measure evaluation. what we're looking at is the fact that the sales above s&p 500 above 2.2 times, relatively high. we are reaching levels we thought in 1999. some investors are taking a look at this valuation and send that perhaps the bull market we have had, second-longest in history, is a bit extended. the potential rotation out of technology -- if we look at what is happening at the tech sector today, we are going to see green. we are seeing a bit of a rebound. these are some of the big winners including paypal and facebook and now for that. down, theret apple is a report out of the nikkei, saying that the camera lens maker has taken a hit as apple
has cut the iphone quarters and that is way -- the iphone x orders and that is weighing on the supply chain. here is a pocket of weakness in the tech sector. mark: down by 1.3% as an industry group. onemain gauge, stoxx 600, third of 1% lower today. this is a big decline, shares a record 72%. the chief executive resigned amid accounting irregularities. this is a company that owns a furniture chain, french firmture chain -- mattress in the united states, should i say. southng turnaround for africa's fourth richest man and the biggest shareholder in this company. those shares are getting
hammered today. the shares are up by 16% today. u.k. ideal that values the , 4.4 billion pounds. 2.539 pence per share. it would create a real estate investment trust of roughly $21 billion of assets. the company is expected to sell about 2 billion pounds of property if the deal goes ahead. of a month -- prime minister theresa may reportedly facing rebellion from all sides, the next move for sterling. thatys it is probable there is a french commitment on the irish border. fudged commitment on the irish border. he says you can kick the can down the road.
the low volatility holiday season, breaking up to the highest levels we have seen in more than a year. one half of 1% lower. be givingd we will and i, mark. it is time for a bloomberg exclusive. it connected ramifications. the next guest knows a thing about that. erik schatzker. erik: i'm here with carson block, the cofounder of muddy waters capital. good to see you. you have a new short position. it is and what stock? carson: osi systems, which most people would better know as the maker of the airport scanners and scanning equipment. erik: what is the issue with this company? carson: we think this company is run to the core. erik: ok -- [laughter] erik: not mincing words.
carson: we have what we think is smoking gun proof that this company got a turnkey contract a few years ago in albania can work $159 to $250 million top line, that they paid a bribe, kickback almost half of that concession. to me this is damning evidence. then we also look at major, major contract is guys have is the turnkey contract in mexico. that is up for renewal next year possibly in the early part of the year. the pricing on that appears to be egregious. a lot of investors don't understand the economics of this, because the company has not been very forthright about it. we estimate that one contract in mexico is worth about 50, 55% of 's event off of the last fiscal year. bitda for the last fiscal
year. we estimate that the ebitda margin on that contract is 55% plus ebitda margin, whereas the rest of the company's business is 7.5% margin. if you own oocyte right now, -- if you own osi right now, you own it for this one company in mexico that is up for renewal and should be looked at closely. erik: let's be clear, you think you have found evidence of bribery or kickbacks in albania, and if i understand you correctly, the pricing on the mexican contract suggests -- is suggestive of something similar? carson: we have albania in terms of what we think is a smoking gun. we have spoken to a number of former employees who have painted a picture of a company as just within this division anyway constantly breaking rules and crossing the line. if you take a company that does and you in that way
look at the contract in mexico, 15% of revenue, but then 50 to tda, you have to ask yourself, mexico, massively fat contract white is the contract so fat -- what is the context so fat? it should be scrutinized on renewal. you look at this as market-based prosecution. what is the motive here? this company has a real business. erik, it is money. companies lie. companies do bad things. it is about the bottom line. erik: what is it -- what i'm getting at is, if you are right and they bribed somebody in albania, and it is possible that something similar went on in mexico, it is because if they
didn't drive and somebody didn't receive a kickback, they would have lost the contract to someone else? carson: i don't know. if you look at albania, what happened was they set up a company in albania that owns the concession. they are awarded the concession and then they transferred 49% of the companies away to come anomaly -- two, nominally, a doctor -- he runs this hospital in toronto -- they transfer the concession to $4.50. $4.50 for half of the economic value of a contract worth $250 million? carson: yes. i can't think of a good explanation of the than this is a kickback of some sort of that type of transaction. erik: we have no nuisance or
call on sino forest. you said that was zero and it proved to be zero. how much conviction do you have on osi systems compared to sino forest or anything else you are since? in the period carson: osi systems is a company engaged in corruption, 100% convicted on that. we have smoking-gun evidence. a lot of this has to do with mexico. mexico got renewed on the same terms, you will not see the bottom fallout of it is the if there is scrutiny of the contract and the prices lowered a decent bit, that will obviously washed through and our estimates are anywhere near correct in a big way. almostsi certainly is going to sue you. any reason you could be wrong? carson: well, i mean come on albania? no. give me a better expedition and tell me why you did it announced this years ago.
if they want to sue, we will accept service. it is not hard to do it. if they sue, we are going to open these guys up. i'm confident there are a lot of skeletons in the closet. erik: what do you know about the ceo deepak chopra -- not the one everyone is familiar with. another one who happens to be called deepak chopra, whose background seems to go back to the early days of the semiconductor industry in california. carson: look, he is a real entrepreneur, he has built a real business, and he is not that deepak chopra. one of the things that is a little bit concerning about the company, the picture that has been painted for us is that within the senior executive ranks, there is a tighter inner circle of mr. chopra and another executive who has signed the power of attorney authorizing the sale of the 49% in helping you -- erik: do you think it is
possible to deepak chopra we are talking about doesn't know what is going on? carson: look, i don't know. litigation would probably answer that question. the picture that has been painted for us is that he is very involved in all aspect of the business. erik: what any public company, osi systems has an auditor. i checked on their filings. where is the auditor here? number one, i'm never impressed when somebody says "oh, we are audited by xyz," because we can point to a litany of audit failures. but in a company and you are not audited by big 4 -- i don't know the assad of stability in albania -- if there capability in albania is rockstar. maybe i'm missing something. but it used to be audited by big for 10 or 15 years ago. there is a question as you grew in the post-9/11 world and you and overseas, why take a step
that -- take a step down? erik: i want to raise another point. you chose this short to do some thing you have not done before, raise concurrence with this video. carson: second class certification regarding anti-bribery laws. there is very little specificity as of the type of training you have to provide. don't see any schedule to this agreement that lays out what the agreement is. there's talk imitation around how not to bribe officials. erik: in the video we see you doing a lot of that. we see you talking to your team, we see you in a car, and a cell phone, talking about what you believe to be the nefarious osi systems and the contractual partners. why do a video? we're used to seeing bestie tilde reports. carson: we do have a detailed
written report we are putting out. aree are two reasons we doing the video, and this is an experiment. number one, we think it is important to try to expand the people who consume this kind of content. people are throwing money into the etf's that are passively allocating it. it is important to educate a larger swath of the population here. there are reasons why you don't just want a closer rise and by. up thisrying to open .ther world of financing there is a lot of general interest appeal in the shorts that we do -- maybe not when we a, but takingebitd a happier concession and giving it to some doctor in albania for no good reason. those sorts of things have appeal. it is important to expand the audience --
erik: you want people in mexico to know. carson: but also people in america to say, you know what, if i'm just throwing money blindly at companies, are they doing things with it that they shouldn't be doing? the other thing is a little more defensive. ago, i was onrs your show for the first time, and during that time, human attention spans have not gotten longer. we are being programmed by the pda's, and i used to think that the average investor read the .irst three pages of the report i think it would be wildly optimistic now. delivering the content in a way that is more suited to the brain function is something i wanted to try. erik: great to see you. thank you for joining us. that is carson block, managing editor of muddy waters capital,
tapping into video to reach the world of shorter attention spans. i want to add 2 things. his record is a short seller speaks for itself. we have not contacted osi systems, and of course we will for, and subsequent to this conversation. vonnie: thank you. that was a great interview. i want to know who were those characters in the movie with carson. it's checked in on -- let's check in on "first word" with taylor riggs. taylor: as political decisions go, it is not too much of a shock. russian president vladimir putin announced he will run for a fourth term in march. he will be a heavy favorite to win a new six-year cap. president trump makes it official today -- he will officially declare jerusalem to be israel's capital and will order that the u.s. embassy be moved there from tel aviv. it is an historic shift in policy that will likely anger key muslim allies such as turkey and saudi arabia. the white house says the actual move would take years.
british security forces have broken up a plot to kill prime minister theresa may. according to multiple reports, police believe they kind of to at downingbomb street offices. chances of getting a breakthrough on brexit this week are receiving. the northern irish political the is resisting a deal on border of northern island in the republic of ireland. news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. mark: thanks very much indeed. coming up on "bloomberg markets ," oil futures lower ahead of inventory data. the numbers show a surprise gain? the vti oil down by 1.5%. this is bloomberg. ♪
vonnie: live from new york, i am vonnie quinn. mark: and i'm mark barton from bloomberg's new european headquarters in the city of london. this is "bloomberg markets." let's get to it. futures in focus, oil retreating . u.s. gasoline stockpiles group for the first time in four weeks. joining us this device president of blue light futures. how are we position ahead of inventory data? >> at think a lot of the pullback to start the week is on the back of last week's opec decision. we saw the blitz headlines press towards the psychologically significant $60 level, and this week we have not gotten the bullish headlines and the
markets have stalled out ethnically -- technically. friday's report showed that the long position increased by about 59,000 contracts. this is one of the bigger long positions in recent memory. 398,000, a record. the lack of bullish news and the technical failure to break out has led to long liquidation, and we could see that continue and press prices closer to favored $55.30 -- $54.30, opec does put a little bit of a floor on the market. u.s. production is what we are keeping an eye on, and they these production as we approach the 10 million barrels a day level. this is a great opportunity to be the trader between the $50 and $60 level. mark: what about gold? we are new the bottom end of the three-month range, the moving average. what is the catalyst to take gold higher?
oliver: really just a firefight. we have got -- fire strike. we have not gotten a catalyst to get us about that psychologically significant level. we are lucky bottom end of the three-month range. we have the 200-day moving average, and it will be very, very significant on the closing basis. if we see the close below that, not a lot of technical support until the 1200 level. that said, january has been a good month for gold over the past two years, with asset allocation. end of thet lower to year, there will be a buying opportunity to start 2018. lot. oliver, thanks a still ahead, the decision that could unleash a new wave of security challenges in the middle east. president trump will proclaim that the u.s. recognizes jerusalem as the capital of israel. that is coming up. this is bloomberg. ♪
mark: this is "bloomberg markets ." i am mark barton, from bloomberg's new european headquarters in the city of london. vonnie: and from new york, i'm vonnie quinn. time for the biggest business stories in the news right now. the owner of saks fifth avenue and load and taylor's is reeling from retail slumps. down 14% in canada trading today after a loss much larger than analysts were looking for. also fell.sales ironically, e-commerce efforts were hurt by job cuts which had been meant to reduce costs. the world's largest home improvement chain, home depot, plans to live back $50 billion with of shares, and confirmed its guidance for fiscal year sales. home depot stock was up 36% for
the year. the asset management industry has entered what mckinsey is calling the new abnormal. the consulting firm says that for the next two decades, as it managers face a number of challenges. among them, long-term investments, pressure on fees, and aging clients. that is your latest bloomberg "business flash." we are moments ahead from the release of weekly u.s. crude inventories. he was oil ahead of the data. crude oil down about 1.5%. this is bloomberg. ♪
quinn. this is "bloomberg markets." we are awaiting oil inventories. an average drawdown of 2.8 million barrels. oil is trading lower ahead of the released by 1.5% for a barrel of crude. and the guilty little is with us now as the numbers come out. abigail too little is with us now as the numbers come out. abigail: a much bigger drawdown than what the survey had been calling for, 5.6 million barrels relative to the survey calling for a drawdown of 2.8 million barrels. that is bullish, a bigger drawdown than expected. main inventories is bearish. a build of 627 million barrels of gasoline relative to the survey calling for a build of closer to 2 million barrels. trading sharply lower, down 1.3% near the lows. it often takes investors little time to digest the report.
bloomberg's commodities strategist thinks we are going to continue to see inventories will come even though that is not what we are seeing today. if we hopped into the bloomberg and look at cheap #btv -- g #btv, this is the intraday oil and we are well off the lows. taking a little bit of an effect here. down about 1%. it will be interesting to see if that reverses as the day goes on. bigger picture, if we look at the longer-term chart, this is g , and what we're looking at is around the time of the oil crash, oil is going sharply lower and inventories starting to build. more recently this year can we have seen inventories drop down. that is helped the price of oil recover. however, funny, the bloomberg commodities strategist thinks there is reason to believe inventories will move higher again and that could weigh on oil. we're looking at a relatively bullish apartment of energy oil
inventories report. that is helping oil recover off of the lows. vonnie: fantastic stuff, abigail. thank you for reporting that out for us. to a potentially massively historic decision today from president donald trump. in a speech at the white house, the president will declare that the united states recognizes the capital of israel to be .erusalem, not tel aviv the president will also say he is planning to move the u.s. embassy to jerusalem, although the timeline for that particular move is uncertain. the whole thing could flare tensions in the volatile region. joining us now from tel aviv is bloomberg's michael arnold, bureau chief for israel and the palestinian territories. , the head of the national security team at bloomberg news. michael, let's start with you. how is this news being received in israel? michael: people here are on tenterhooks waiting to see what
the president will say. we know he is likely to declare that he recognizes jerusalem as the capital and he intends to move the embassy, but that is a very ambiguous statement. intending to move the embassy could mean next week, next year, 10 years. the exact content of what he says will be crucial. also for the palestinians, because record i think jerusalem as the capital does not necessarily mean he is invalidating palestinian claims. the wording of what he says will be key. vonnie: exactly commend a similar sum is also more interesting than the actual substance of what he says -- exactly, and the symbolism is almost more adjusting than the actual substance of what he says. there was only two countries and the whole world that recognize jerusalem as the capital. it is the purview of the united nations, right? >> for almost 20 years, presidential candidates have during their campaigns vowed to move u.s. embassy from tel aviv to jerusalem, and then once in power, they generally realize
that it wasn't a productive way of getting these stocks moving forward to -- getting peace talks moving forward. it has never actually happened. president may be the first sitting president to declare jerusalem to be israel's capital. but as michael said, there will be a lot of parsing of his his speech at 1:00 p.m. today. does he say that jerusalem should be undivided capital of israel? does he said he would move the embassy to west jerusalem? those of the specific things people will be listening for when trump speaks today. mark: michael, does this trigger instability in the region? riots, targeting of american embassies, protests in the west bank because of this? would expect is a protest of possible violence in the palestinian areas and jordan, which has a majority palestinian population. but the interesting question
wide theo see how protests are and how they belong. it used to be that the israeli-palestinian conflict was seen as the heart of the middle east, but in recent years what we are seeing his concerns about iran are coming to the fore. there is a sense that for the more distant arab countries, saudi arabia, the united arab emirates, the israeli-palestinian conflict isn't that important anymore, and this will be a litmus test to see that. , how does, -- bill this yield domestic political dividends for president trump? bill: it does allow the president is a he fulfilling another campaign promise, like the iran nuclear deal and the key issues he campaigned on. the question people in washington will be asking and all of the middle east capitals come is what does the u.s. get from this, besides fulfilling a domestic political goal of the president?
does it bring the middle east peace process closer step two final negotiations? we are reported that jared kushner has been working on a grand a deal, a grand bargain of the middle east. is this part one of that, step one of that process? or is it, as some analysts think, making it much harder for the u.s. to pursue middle east peace? vonnie: michael come with had some responses. jordan's king has been in the u.s. trying to convince the president an not to do this. he has taken it upon himself to be the minder of the main , which is thes temple mount, i guess. mahmoud abbas has warned this could imperil efforts to stop today we are hearing from turkish president eric oberon -- turkish president erdogan.
how might relations change in europe and the middle east over this? michael: it is a difficult question to answer, because it has been more than 20 years that congress has had this law on the books that the embassy should be moved, but no president has actually done it. on the other hand, that is not brought peace any closer, either. there may be a sense that the old patterns have not been working and it is time to move the embassy and create fait accompli and go from there. perhaps the peace plan that the president is preparing is going to require a lot of our compromise is from israel, so perhaps he is trying to lay the groundwork to say, look, i'm your friend, move the embassy, you cannot complain about the peace plan. vonnie: how might benjamin netanyahu's approval ratings change? michael: i think for netanyahu this would have to be seen as kind of a coup. yes make this a key issue. it is interesting to note that there is a fair amount of
opposition in his real to this move. if you read "haaretz," one of the leading liberal newspapers, it is wall-to-wall against the move, thinking that it will create instability and is unfair to the palestinians, etc. it will strengthen his supporters but also his detractors. vonnie: our thanks to michael arnold and bloomberg's national security reporter bill flowers from washington. "et's check in with "first word news and a taylor riggs. taylor: u.s. secretary of state rex tillerson says the top russia's europe is aggression in ukraine. he will have a chance to bring up ukraine tomorrow when he meets with russia's foreign ministers in vienna. the u.s. is ready to talk to north korea, but only if it agrees to stop testing nuclear devices and missiles, according to u.s. a messenger to china. got northloomberg
korea's push for nuclear weapons is "the biggest threat to humankind right now." in southern california, giant wildfire has spread and forced new evacuations. almost 30,000 people have fled their homes since the fire broke out monday northwest of los angeles. at least 150 buildings have they destroyed. he was known as the elvis presley of france. singer johnny holliday has died. yet been -- he had been battling lung cancer. he made rock 'n roll popular in france. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am taylor riggs. this is bloomberg. mark: the age of automation -- how the rise of robots will impact your job. this is bloomberg. ♪
mark: live from bloomberg's new european headquarters in the city of london, i'm mark barton. vonnie: and i'm vonnie quinn, and i'm in new york, and this is "bloomberg markets." stock of the hour now -- shares of the veto rising today at the new york health group says it would buy it. united health is helping to pull this growing business of clinics and physician practices. we should mention a disclaimer -- the chairman of bloomberg lp, parent company of bloomberg news, is a member of davita's board. joining us with maurice taylor riggs. you what thee tell
business is. 300 clinics, five urgent care, here.tpatient centers a lot going on, but for them, davita is a side business. their focus is on treating kidney patients and dialysis. this is getting back to basics. part of the reason the shares are rising. they are using the money to repurchase shares. it is something existing shareholders always like. operates -- they are seeing this really as a way to compete. we heard that cvs is eventually trying to buy aetna. that is another example where you have the health insurer going to the front line care of patients. this is a way for them to better compete as well. and they have done that in the past in terms of adding certain units to bulk up. 's segmentt davita
into perspective for us. taylor: it depends on what section of the business is profitable. they are 25% margins. when you go down to the other businesses, margins have been falling. 15% to 5.6%. analysts have said it has been the biggest threat, the drop in those margins. perhaps another reason they are going back to the kidney business. stable profit margins for them. vonnie: taylor riggs, thank you for the stock of the hour. mark: great stuff. time for the bloomberg "business flash," the biggest business stories in the news right now. in the u k, consolidation. buy stone has agreed to properties in a deal that values the copy at $4.6 billion debt -- intuerson has agreed to buy riv
properties in of deal that values the copy at $4.6 billion. a chief executive great in the midst of accounting irregularities. it is controlled by a south african billionaire and owns land in the u.k. and it owns a mattress firm in the united states. bitcoin has soared over $12,000 for the first time. the largest group of currency by market value was selling for less than $1000 at the start of the year. now there is a growing chorus of warnings that there is an asset bubble ready to bust. that is the latest bloomberg "business flash." vonnie: now to something a little different. the bad news, robots are coming for your job. the good news, you will find another one. this is according to a report by mckinsey global institute. -- 800red million million could be lost to
automation globally by 2030, but it creates extra demand for workers to offset the losses. the co-author of the report joins us now. michael, thank you for joining. how different is this particular move from historical moves when it comes to things like the industrial revolution? michael: in many ways it is a similar scale, which is quite large. in others it is any set of activities that can be automated. we see artificial intelligence being able to automate activities not only of frontline workers, but increasingly workers such as lawyers, .octors, and mba's we are seeing this be widespread in terms of its impact. --re are the better games there are the predictions of the robot apocalypse, and when we look at how long it takes for the technologies to be adopted and for the demand to be generated by different factors can we did find there is probably enough work for people to do, but it will be a
tremendous retraining challenge to get people from the jobs of today to the jobs of tomorrow. vonnie: you speak with the labor secretary every month, particularly during the last administration. we are putting a lot of money back into retraining. programs all over the country. and yet we found it was difficult for people to switch occupations. the coal miners are having a difficult time. how does that get done? michael: it is a grand challenge, one of the grand challenges of the next couple decades. as someone who lives in california, i have an optimistic view on things. we have been able to do that when people move from farm the factory. that was a huge change. non that began, there is universal secondary schools. movement was a social movement. the question now is not only for business leaders and the policy realm, but the fact that you continued to have people work because there will be enough people --enough work for people
to do. mark: what occupations will be createdcreated that do not exisy as a result of automation? michael: we are limited in our ability to know and predict ahead of time what the occupations might of -- new occupations are generated. even though the occupations exist today, they changed activities they do. vonnie: i have to jump in and say you are not saying that twitch is the new occupation and people learn how to participate in 24-hour video games? michael: i'm giving that as an
that as we continue -- illustration that as we continue to evolve, we will see more occupations. i'm not saying that professional video game playing will be for everyone, but people actually do that and that was not predicted. we had not predicted app developers for mobile phones 25 years ago. we seek new occupations, but more importantly, existing occupations what changed activities that they do. things that machines do worse or don't do as well, such as interacting with people, understanding creativity, we will see more of that happened. vonnie: got to leave it there. michael chui, fantastically interesting report. million may need to switch our commercial categories fight 2030. mark: fascinating stuff. still ahead, are investors mispricing allocation from tech into banks? two reasons the recent selloff may not be what you think. this is bloomberg. ♪
vonnie: live from new york, i am vonnie quinn. mark: from bloomberg's new european headquarters in the city of london, i am a mark barton, and this is "bloomberg markets." investors are wondering how long the distaste for technology stocks will last, might be asking the wrong question. selling text, piling into names that will benefit from u.s. tax cuts. our next guest will throw cold water on the idea that it is rotation. stocks reporter, and as you say in your great piece, --ny qamar ask danny, are investors asking the wrong question? little contrarian
view. you have to look at the contours of the selloff stop it is not just about tech, it is not just about banks. -y is all about factors, quant way of looking at stocks. you break down stocks by now cheap or expensive they are, how fast they been moving up or moving down. if you break it up by the characteristics of the stock, no matter what sector it is in, you can predict how it has moved to the past week, which would seem to say that the reason it is selling off is because of those factors, not necessarily for any fundamental reason like tax reforms or banking or something like that. mark: so what does it tell us about the future performance of the likes of the technology sector, which of course has suffered, and the financial sector, which has benefited? dani: in looking at how long it is going to last, you have you look at the reason it would sell off. because it is maybe algorithmically driven it is
about flows, it is not about a rotation, which means that it doesn't last. it is not a fundamental shift. one example i will give you -- value, looking at how cheap it is -- it was very concentrated in the u.s. this is not a global phenomenon. a lot of times when receiver occasions happening where cheap stocks come back into favor, it happens throughout stocks globally, and we only saw it in the u.s. once the funds are done and the knock on effects are done of people using it as an excuse to take similar moves, it will likely resume back to normal, how it was before. , good to see you, first of all, but i want to point to a chart -- there have been a lot of moves at the end of the day, and this is the last five days of tech stocks, but what about investors who really want to stay away from the investing in anything in my influence? is there any way i to protect themselves? dani: the most important thing
is to know what you own. there is a great tool of putting your portfolio in and seeing what factors you own. you really have to know, do i own momentum? if you have been taking on a lot of tech exposure, you likely hold a lot of momentum, and you would have been heard last week as momentum sold off. what unheard earlier in the year when it happened again. it is about knowing what risks you are taking. doesn't mean a void it, but be cognizant so you understand what is going on. mark: a few heavy hitters are dumping positions. interestingly come something happened in june which we can really do when we look at what happened in the last week. dani: right, it is really interesting because the conversation was similar. tech sox sold off and people said, finally -- mark: it is all over. dani: these things are so expensive, we have been waiting forever. within the next month, tech was
doing fine again. that selloff when he brokered it down by momentum, regardless of sector, it did not just happen in tech. momentum was destroyed, which seems to indicate that it was a fund unwinding its position. one that does happen, it bounces back fairly quickly. mark: great story. rger withger -- dani bu that fantastic story. 25 minutes away from the end of the wednesday session. we have the ftse higher, dax lower. this is bloomberg. ♪ retail.
under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. mark: it is 11:00 in new york, midnight in hong kong. 30 minutes left in the trading day in europe. from bloomberg's brand-new european headquarters in london, i am mark barton.
vonnie: in new york, i am vonnie quinn. this is the european close on bloomberg markets. ♪ mark: here are the top stories we are following. stocks twisting around as traders swing between -- the latest move simply a sector rotation for something to be more concerned about? politics, another day another setback to from minister theresa may's brexit agenda. she is getting more pushback from northern ireland pushing -- propping up a government. in the u.s., with the tax overhaul being considered by the u.s. house and senate tax over --