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tv   Bloomberg Markets European Close  Bloomberg  February 26, 2018 11:00am-12:00pm EST

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quinn. this is the european close on "bloomberg markets." ♪ nejra: here are the top stories we are covering from bloomberg and around the world. stocks rise globally as the dollar declines and the benchmark of treasury yields retreat further below 2.9%. then we will get inside on mining from the ceo of newmark mining as it looks to expand margins. world congress underway, new talk about a major deal in the telecom industry with the ceo of gtt line one of europe's biggest cyber networks. let's have a look at where european equities are trading right now just under 30 minutes to the close of equity trading. we are largely in the green and
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seeing broad-based gains here. the cac 40 in france up 4/10 of a percent. the dax in the green as well. the ftse 100 up higher by 6/10 of a percent. italy's ftse underperforming slightly. it is pretty much flat. overall you are seeing a lot of green on the screen. assetshave a look across at how this is shaking out. a lot of green with the equity space. space, we were seeing dollar weakness earlier, but it has recouped some of those losses. what that means is that sterling is on the back foot having gained earlier. the euro has also given up some of the games from earlier, trading flat at 12288. it has not moved much despite the fact that mario draghi have been speaking before the european parliament, answering questions as well. he did say that the fx market did warned some attention, but overall he has been treading a
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neutral stance when it comes to growth and inflation in the eurozone. lowerlds generally move in italy outperforming more than the corporate in the metal space -- more than the core. let's take a look at the euro. i said it was trading pretty flat when you look at the spot price. when you look at euro-dollar, two-week risk reversals. there is some bearish positioning there, but it's not quite as much going into the italian election on march 4 as what we saw in the first and second round of the french elections. a little bit more and you could call it complacency or something else heading into the italian vote than what we have got going to the french vote. that's interesting to keep an eye on and see if it continues. we have been keeping an eye on the ruble as well, nearing a ten-month high after it was
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upgraded to investment grade. now trading at 55.96. minutes into the trading session here and the u.s. and we have stocks backing off their highs a little bit. andl gaining on the session technology still gaining the most among the groups in the s&p 500. telecoms also participating in a rally. interesting comments from goldman sachs having to do with the theoretical scenario. take a look at the bloomberg. we have a goldman sachs economist writing that the base case is for the tenure to be a 3.25%, but if you have a stress test where you saw the 10 year yield spike is highs 4.5%, that would be ok for the economy but could cause stocks to tom tumble. well above where we are right now, but it could cause a 25% pullback in stocks according to goldman sachs. toking about a range of 2155
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2298 for the u.s. stock market for the s&p 500. an interesting thought-provoking note coming out today even if it does not necessarily paint what goldman believes is indeed going to happen. here andof rates something that has been affected by rising rates, we are talking home sales. homesales of new unexpectedly falling in january to the lowest level since august and it was the second month that that number missed estimates. we have weakness among the homebuilders today. aboutant to talk mortgages, general electric. according to an analyst over at rbc, the company could face in its cash charge investigation into the legacy some private mortgage business. -- subprime mortgage business. this opinion coming on the day
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that ge says it will make changes to its board as shares are down by nearly 3%. one area of strength today is airlines as warren buffett is reiterating he would not rule out the possibility of owning an entire airline. he owns stakes in these companies listed here -- american, delta, southwest, all of which are rising today. vonnie: a fascinating weekend for buffett watchers. president trump is speaking at a meeting with the nation's governors. most of the governors are in attendance. some aren't, but more than three dozen are. some headlines coming out of the meeting already is that one is just now on school shootings . trump saying we must turn grief into action on school shootings. earlier the president was saying we will see what happens with north korea talks and he made some comments on trade, saying the wto makes fair trade almost impossible. we also should get some playback from this, with the governors as that meeting kicks off.
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we will bring that to you in just a few moments. gtt communications has acquired london-based into route for $2.3 billion. it is one of europe's largest independent cyber networks and cloud networking platforms. joining us with more on the deal is gtt ceo rick colder. so great to have you with us and congratulations. what does this mean for gtt? rick: it's a fantastic combination for us. it is one of the premier platforms to provide cloud networking in europe. we have an almost parallel business in the united states with a combination of one plus one, which we think will be three or 45. nejra: how competitive was the asset? was the price attractive or relative to the market given all the interest in telecoms in europe? rick: it was a long process and we do not find out we wanted to friday. -- one until friday.
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paid a proximally 11 times their trailing ebitda. we think it will be a better ebitda purchase for us. -- ination with combination with gtt, we think it will be great for investors. vonnie: what is the longer-term growth strategy? more acquisitions or would you like to be acquired yourself? rick: i have been here for 11 years and we were and $50 million company in 2007. we are about one billion standalone and we think we can grow significantly from their both are incremental acquisitions as well as very strong growth. we have one of the best value propositions to go after the heart of the abundant telecom monopolists. we think we really have an opportunity to shift share in a
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very large market from their platform to gtt's platform moving forward. vonnie: vodafone is a customer already and at&t is a customer already. how will you compete with the likes of malone and liberty global for example? rick: we clearly compete and sell to all of them. about a third of our business is to carriers. at the same time, we have an opportunity to attack the largest multinational firms in the world who need more opportunity to connect your people across the organization around the world. aen a firm like bloomberg has tremendous opportunity to move away from the incumbents to a platform gtt. , orher it's vodafone, att orange, we think we have the disruptive platform to take share from them to us. nejra: are you looking at anymore potential acquisition targets in europe and specifically southern europe? a very nicee have platform throughout western
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europe and we think there is incremental ad on opportunities for we have been very inquisitive. we have seen opportunities that are very nice and commensal add-ons to this great platform we have today. nejra: any countries in particular you might be looking at? italy for example? rick: we have had a presence in italy for the past eight years. we think it's a fantastic market to sell in. likewise, france, germany, spain, the nordics. we think there is a tremendous opportunity here in the united kingdom as well. worldwide we think we have become the disruptive player for enterprises anywhere in the world to take their networking needs to gtt. vonnie: explain a little more the disruption. why are you the disruptor? i would imagine many ceos would like to claim that title. rick: true. we actually own and operate one of the world's largest global backbone networks. we are one of the top five internet backbones.
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we have some of the deepest fiber assets around the world. we have points of presence that are all must in every country in the world and we trade with over 2000 last mile players to get access diverse and securely to any location in the world. as a function of that, the only thing we have to fight against is friend reckon it's appeared we have significant opportunity -- reckon mission. we have significant opportunity to raise the profile of gtt so corporate ceos could say why i'm still using the incumbent? why not use gtt? vonnie: you're in the speedy trading infrastructure as well and that's a small part of the business. i'm wondering what you see as the future in the u.s. given that europe's 5g is pretty much standard. in the u.s., it seems to be going the other way and people may be losing access to broadband in the next 18 months and other actions by ajit pai. what do you see as the future of internet traffic and cable
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watching in the u.s. in the next 12 to 18 months? rick: we love the trend in our industry simply because the utilization of traffic and the incremental utilization of bandwidth continues to grow. we see growth on our network north of 20% for traffic flow that if you were in a cio shoes, regardless of what technology you are using today, you need more bandwidth and that's a perfect situation for us to be and to go into any cio and say you need more bandwidth? why stay with the incumbent? why not come to us where you can get generally twice as much bandwidth for much less cost for a provider that's driven to deliver a great client experience? nejra: a question on the industry in general. inlowing more consolidation telecom and fiber, where does the growth come from? is cloud the primary driver? rick: as enterprises move applications out of their own offices into cloud service
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providers, they see opportunity to rearchitect their network. we clearly see growth there. we see growth simply in the utilization of an internet. we see corporations everyday with challenges for how to provide more internet bandwidth for video, application, and file size. there's tremendous needs to grow the sites. ceos have tremendous pressure to keep budgets the same. we compete generally in a market that we think is 300 to 400 billion in size that is dominated by incumbents. even at 2 billion, we have less than 1% market share. our opportunity to grow through acquisition and tremendous selling is right before us. nejra: small growth ahead. thank you so much to rick calder , gtt communication ceo. vonnie: let's check in now on the first word news. taylor riggs is here in new york with us. taylor: the supreme court has handed the trump administration a defeat on so-called dreamers
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at least for now. justices turned away an appeal to deportation protections for young undocumented immigrants. that buys them time while congress tries to work out a political solution, but the case could end up back before the supreme court after an appeals court rules on it. home sales in the u.s. unexpectedly fell last month. almost a percent to an annual rate of 593,000 . that was the second straight monthly decline. forecasters predicted a rebound after harsh weather. n has orderedo daily humanitarian causes. this announcement comes two days after the u.n. approved a resolution demanding a 30 day cease-fire across serious. it has been bond by syrian government forces for weeks. china has been taking steps that would allow the president to stay in power indefinitely.
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sent tounist party is repeal presidential term limits that keep the head of state from serving more than two consecutive terms. that would do with the orderly succession system china adopted after mao zedong's chaotic rule. global news 24 hours a day powered by 2700 journalists and analysts in more than 120 countries, i'm taylor riggs. this is bloomberg. nejra: thank you so much. ucb president mario draghi is still addressing the european parliament. we have got some more headlines coming through on the bloomberg from the q&a session. mario draghi saying that ecb guidance for interest rates is "very important." sos is what the ecb has said far is that rates will remain low well past the end of net purchases. nobody has defined yet what well past means. the market pricing in the first rate hike to come in march 2019, but that is something we are looking for clarity on from the ecb. that guidance very important. he says the possible expansion
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of qe has not been discussed. that the head of the march a policy meeting where they plan to have a discussion about discussing forward guidance. has addressed a lot of nasty talks about growth and inflation and traded a fairly neutral line on that. he also said that u.s. tax reform will reshape the global tax landscape. this is bloomberg. ♪
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nejra: live from the city of london, i'm nejra cehic counting close.n to the european vonnie: i'm vonnie quinn. industry leaders are gathering today for the global metal of mining conference.
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has taken place in hollywood, .lorida danielle is live with a top mining executive. gary goldberg is mike' my guess right now. miramonte really seems to be on a roll right now. become thee posed to world's largest gold miner in the world. what is the single biggest risk right now that keeps you up at night? gary: i really don't have any major risk that keeps me up at night. gold price is one of the things keeping an eye on really the overall geopolitical events driving things like oil price up and some of the things we don't control. in terms of things that we do control, the team is doing a great job and continues to demonstrate that having a rigorous approach looking at all operational details really does deliver better value. danielle: certainly you have been rewarded by shareholders.
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it's interesting to look at how quickly things can change. if you look at your closest rival, in 2016 they were really rewarded for cutting debt. last year they were absolutely punished for not being more aggressive about production. is there a risk or a danger that shareholders turn on you guys for not being a little more acquisitive because your debt is so low? gary: meeting with investors here at the conference and i'm not hearing a lot of pressure to go out and do things that don't make sense for the business. c growtha good organi pipeline and continue to invest in our own internal projects. we will look externally and keep look at those things, but we have a great organic pipeline that helps sustain about a 5 million ounce production rate out past what we have given guidance out seven years. danielle: you do risk the portfolio quite a bit by getting out of indonesia, which was a high-risk environment. looking back on that, any advice for minors like straight port
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still embroiled in that situation? gary: they have a different situation than what we had at the time. i think we did what made more sense for us and our shareholders by making an exit to a party that is indonesian and they continue to run the operation well. danielle: there is though a rise in resource nationally because you're not seeing it just in indonesia and other parts of the world. are there lessons that the industry needs to learn as a result of that about country risk? gary: the key thing is making sure first of all communities know what's going on and you communicate clearly to them about what the value proposition is and what you will be delivering, making sure you've got like what we do in ghana, agreement to work with a government that certain amounts of revenues will come back and royalties and taxes to the national government and then getting the right set up with the local community so they feel the benefit and see the benefit from your operations. danielle: you have said before
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that you are worried about attracting investors away from etf's to by newmont stock. you have been increasing the dividends. what other tools are there any available to you to get those investors? gary: just delivering what we say we are going to deliver has been pretty helpful. being consistent in that delivery has been important. raising the dividend yield should be more attractive versus those that invest in the same gold etf. they can get a yield on top of just owning the gold and you get the opportunity as we look to grow with our margins and our reserves and resources. danielle: one of the things that he said many times at these conferences is that you would which youy category are an operator with. given that you guys cannot agree on a price and given how hard it is to try to really get good assets, why not just come down a little bit and make that deal happen? gary: it is really something that rests with them.
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if they want to move forward with the sale, we would be interested in talking to them about acquiring it, but it's not something we have been actively talking to them about. we more recently agreed to an agreement where we process the twin creek's operation. we completed that last month and it's a seven-year agreement that helps to underpin the expansion that we both agreed to finance. danielle: do you see them as partners or rivals? gary: definitely a partner when it comes to the joint venture. at the end of the day, we are all competing. we can see for access to resources, talent, and capital. danielle: gary goldberg, thank you very much. vonnie: wonderful interview and thanks to daniel boko's reeking with -- danielle speaking with gary goldberg at the conference in hollywood, for florida. nejra: mario draghi still addressing the parliament talking about volatility as well.
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he says ecb guidance about interest rates is very important. this is bloomberg. ♪
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nejra: live from the city of london, i'm nejra cehic and the european closes just moments away. vonnie: live from new york, i vonnie quinn. time for a look at the bloomberg business flash. it's a clear sign that qualcomm is open to a takeover by broadcom. the chipmaker has invited broadcom to sign a non- disclosure agreement to come to an agreement about price. qualcomm has rejected a $117 billion offer. consumer product maker spectrum brands are taking over the majority stockholder in a deal valued at $10 billion.
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investors from hr geo group will become the new entity. spectrum will become a new independent coming with no controlling shareholder. productsmakes like black flagged and quickset locks among many others. that is your bloomberg business flash for this hour. what our markets doing in europe? nejra: let's take a look at where european markets are trading. stocks have hit a three week high on the session. we have seen quite a few games in equities. this is bloomberg. ♪
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nejra: from bloomberg's headquarters in europe, i am bearish change. region ons the
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bloomberg and you can see green pretty much across the screen with the dax up. the ibex and spain one of the leaders of 9/10 of a percent. ftse 100 up higher. it was unchanged earlier. those are italian stocks up to tens of a percent. has hit ae stoxx 600 three week high in the session. we are up 7/10 of a percent for the second day and pretty much every industry group gaining as well. real estate seems to be lacking a little bit, but you have consumer staples, health care, and i.t. outperforming on the upside. let's take a little bit of a deeper dive into u.k. stocks. we see the tenure gilt yield lower by a basis point. what it's showing is the ftse 100 best dividend yield over the u.k. 10 year yield.
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spread for the ftse 100 has been narrowing and it has been coming up a little bit lately. that has been coming down. the u.k. mean dividends and stocks are losing some of their appeal? that's an open question. let's take a look at what sterling is doing. we saw cable hire earlier and it was above 140 earlier in the session following slightly hawkish comments. it was supported perhaps by comments from labor leader jeremy corbyn. offttle softer on the day by 1/10 of a percent. questionable how much of this is down to sterling and how much of it is down to the dollar recouping its losses. this will be a trade to watch this week as there is volatility around brexit as we will hear from prime minister theresa may from the end of the week as well. that's a look at your european markets. vonnie: some interesting dynamics here at play in the united states.
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we have a little countdown vix today. i would not say calm. we were used to levels at or below 10. still interesting to note that the move index has not been becoming like the other index. up, butty is still that's making equity investors nervous although we are not seeing it so much today. the yen is a little stronger. again and 107 once the canadian dollar is interesting as nafta negotiations get underway this week. 1.2 684 on the back of canadian data as well. i thought i would point out that the 10 year yield is back to 2.85%. we are coming up to the end of the month as well so positioning is taking its part in the drama as well. wm go fork at world markets. the european session was nice and green.
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we also had a green session in asia as well. so far it is bleeding into the u.s. session. we will see if that holds throughout the day. nejra: all right, let's get more on the markets now. mike bell, global market strategist with jpmorgan, is with me here in london. let's start off with treasuries as they drive everything that happens in global markets. the 10 year yield pulling back a little bit. is this just a little pullback before yield start to head higher again? look at short positioning on u.s. treasuries, it has been quite extended. we were short treasuries as they have been moving upwards. yields have been rising higher. from the short positioning on a technical basis, you could see consolidation. we would be tempted to be more neutral at the moment. we still think on the 12 to 18 month view that the direction is higher. you get an unwound of this sort of technicals.
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nejra: where does this leave the fed? the market is awaiting testimonies from jerome powell this week. the: i think you will see start to shift toward a narrative whereby actually the risk is for rate rises rather than close to three being price. and bond yields has been justified and they are going to deliver at least three and a good chance they will before. the markets not pricing anywhere near for rate rises for next year. you could see more in 2019 as well. vonnie: why is it really only the treasury market that is showing these jitters? we have seen a pretty stable u.s. dollar for example. mike: i think that the dollar recently it's being driven primarily by the notion of the twin deficits. classically you would expect in a world where bond yields are moving higher in the u.s. and the interest rate differential and u.s. relative to the rest of
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the world, you would think the dollar would move higher. because of these concerns about the widening out in the fiscal deficit and what that means to the twin deficit when you include the current deficit as well, that put downward pressure on the dollar. there are views that in the medium-term that you could get further downward pressure on the dollar. vonnie: how does a global market strategist like yourself think about things if correlations are breaking down like they seem to be? mike: i think the key thing for us is when we are advising clients about how to think about where they are putting their money at the moment is to not rely too much on having a negative correlation between equities and bonds. as we have seen several times over the last few years, just when you need it, you cannot rely on the negative correlation. that was not the case early on in february. looking on evidence not just by buying long treasuries, but put options and long vix as a way of diversifying.
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nejra: i want to talk more about european equities in just a second. i also want to ask you about mario draghi. we have been hearing him testify before the european parliament. when it comes to growth and inflation and monetary policy, he has traded a fairly neutral force as you would expect his final appearance before march 8. what are you expecting this year in 2018? are you expect in the hawks to come out more enforce? not really. if you look at what has happened to the euro, that will put quite meaningful downward pressure on inflation. the notion that the ecb is full hawks will parade sometime this year is misguided. you will see downward pressure on core inflation, particularly the imported inpatient -- inflation in the eurozone. they are in no rush to raise rates at all th this year. nejra: i have a chart and that does point to what jpmorgan is
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saying, that the outperformance of cyclicals have not yet peaked. how are you investing in europe sector wise? mike: even though base rates in the eurozone are going to remain at these low levels come i think you're probably going to see further steepening in the yield curve as bund yields with higher. yes steepening in the curve and it's beneficial for financials both and the insurance space and the retail bank. we are overweight financial in the eurozone. where bond yields move higher, that tends to benefit the cyclical stocks at the expense of more defensive bond prophecies. that is how we are viewing the market at the moment. vonnie: i know i'm on the theme of correlation, but how correlated is europe with the united states when it comes to stock markets? how does exit and british stocks factor in tall that? -brexit and british stocks
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factor into all that? mike: it's very rare that you would see stocks rising and falling and vice versa. you have got still pretty heavy growth in the u.s.. we saw last week and a conference board meeting that the outlook for the u.s. economy remains quite healthy. and europe you are seeing some rollover and the pmi data, but it is still consistent with growth some 3% year on year in real-time. european and u.s. stocks will move higher from here. the u.k. on the other hand is the one major equity market where we want to be new jewel at the moment and not take big positions either way. i would not be shorting u.k. equities because there is a good chance what we see is real wages start to improve as inflation goes down, but you have this political uncertainty and u.k. and it makes sense to be neutral on u.k. stocks. vonnie: talk to us about burning seasons in both jurisdictions. have we seen peak pe ratios and
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peak upgrades to analyst forecast? mike: if you look at earnings season, they are coming through very strong. what is fascinating is how long it has taken for the upgrades in the u.s. to come through. he would think given the passage of the tax bill that took place before the start of the year you would have had those numbers come through their analyst raised expectations. the only started to see that coming through in the last month or so. the u.s. has had a pretty significant earnings of great. -- earnings upgrade. you are getting double-digit year on year earnings growth coming through. , wee head into this year are probably looking at earnings growth for 2018 and the eurozone around the 8% to 10% level. that's still pretty healthy . nejra: i showed a chart of the u.k. dividend yield losing appeal over the 10-year gilt yield. we talked about where it has to
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.it for to hurt equities are there specific yields you are targeting in the u.s., europe, or u.k. where the equity starkly come less attractive? mike: you need 10-year gilts historically near 4% to cost correlation between equities and bonds to turn in a way that you would worry about rising bond yields starting to impact the equity market in a bad way. now i do not think he will get to 4% yield on the 10 year yield of the cycle probably. i would be less focus on what happens on the 10 year part of the curve and bas more on base rates. we have industries of the upper bound of fed funds. once that is above three, we start think more carefully about what that means for the u.s. economy. even if we get for rate rises this year, i think we are safe for this year. year 2.5,starting the we will have to look forward to next year and question if that will start to become a problem in the second half of 2019 or early 2020. nejra: thank you so much to
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mighke bell of jpmorgan asset management. vonnie: let's check in on the bloomberg first word news. taylor riggs has that. a legal victory for the lgbt community and its corporate supporters over the trump administration. a federal appeals court in new workersed that firing over their sexual orientation is a form of sex discrimination. that makes it part of the when mark civil rights act. the trumpy says that administration's changes to obamacare will double payments. payments to insurance plans will drop in average 18% and 43 states. those are the states where there are not limits for copperheads of coverage that the initiations, four. benjamin netanyahu says his visit will focus on the status of jerusalem and iran. he will personally think
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president trump for his plan to move the u.s. embassy to a facility in jerusalem and may. jeremy carbon is putting pressure on theresa may. he was a new customs union with the eu after the split. that put labor on the side of most businesses and a week may and the mercy of rebels in her own conservative party who want a similar deal. global news 20 for hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. nejra: thanks so much. coming up, i'm heading to germany right now. tomorrow i will be bringing you an interview with the president of georgia bundesbank and a member of the ecb governing council. this is bloomberg. ♪
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vonnie: in new york, i am vonnie quinn. this is "bloomberg markets." it is time now for our stock of the hour and we are looking at the shares of the food and beverage company at the lowest since 2011 on a disappoint quarterly report. abigail doolittle is with us now. abigail: the stock is getting hit on this report. dean foods has 31 brands that they own or have relationships with. it was not huge, but it's more part of the trend. let's look at the earnings function in the bloomberg because this is the fifth quarter that they have missed in a row and we see this here in the terminal in the bloomberg. but ones lines represent the actual etf put up so they are
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dismissing time after time. if we open up this graph, we going to see that this is the stock and white. these are the earnings projections. the company cut the forecast last year in a big way. interestingly the stock has been falling off more recently. the earnings estimate for this quarter that was just reported already kind of flatlining. the stocks have been telling the story and a big piece of this is consumers moving away from dairy and moving more toward soy and allman built -- almond milk and those products. brandon nooks not as popular some not surprising so companies are having a tough time. vonnie: how does dean turn this around or what is the strategy? abigail: they have to get back to a point of growth. they are treading water in terms of cutting costs. they have a 150 million dollar cost-cutting program in place to achieve those cost cuts by 2020. it could come down to an acquisition by maybe if they acquire seneca foods and focus
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on foods and veggies to get away from dairy or life house probiotics. they could bring some expansion. last year they did receive interest from a chinese entity. it seems they either have to buy or be bought to get out of the spiral that they have been in more recently. vonnie: fascinating how the world turns. abigail doolittle, thank you for that wonderful stock of the hour. to china now, the communist party is set to repeal presidential term limits in a move that would allow she's in king to rule beyond 2023. that would complete the country's departure from a political system based on collective leadership. tom mackenzie sent this report from beijing. move confirms what has long been suspected that he plans to continue ruling china well beyond the end of his second term in 2022. it also up ends in almost four decades old system of collective leadership at the top of china's ruling communist party in favor
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of centralized rule with xi calling all the shots. the definitiveness of this decision to rewrite the constitution and the timing points to his accumulation of power. china's state media says the country needs continuity and stable leadership. some analysts warn that too much power in one man's hands points to significant future risks. tom mackenzie, bloomberg, beijing. vonnie: up next, we are talking trade, brexit, and much more. we speak with the european union ambassador to the united states, david o'sullivan. this is bloomberg. ♪
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vonnie: in new york, i vonnie quinn. this is "bloomberg markets." trade has become the central issue in brexit negotiations and
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u.k. politics and just generally globally right now. it is clear from theresa may's government, which is ruled out membership in the single market are custom -- or customs union for months or years to come. we have a special guest to talk trade now. the eu ambassador to united states and former director , and he joinsade us from our washington, d.c. bureau. thanks for joining. when we talk trade in washington dc, what is your primary objective given that you are speaking with an administration that has set explicitly it does not like multilateral deals. david: my first messages to emphasize just how important the transatlantic economic corridor is for both the united states and the european union. we are each other's most important trading and investment partners by far.
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we trade 1.6 7 billion euros a day, 80% of foreign direct investment in the united states comes from the european union, and together we create 50 million jobs across the transatlantic. i think this is really the fundamental point to underline just how vitally important the european union is for u.s. trade investment and how important for us american trade investment is. vonnie: how will your member countries respond that to something like steel tariffs or tariffs on other commodities? what tools do you have to respond with? david: we don't know what is going to be decided. we understood the options which have been put fo before the president. we share the united states's concern about chinese overinvestment in steel and aluminum. address those to issues and also with china or with japan.
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what i will find very regrettable is if european companies were to be caught in the crossfire so to speak. european steel exports are not the problem. the problem is overcapacity in china and we hope whatever the president decides will reflect that. vonnie: speaking of european companies, mr. ambassador, how do you see job creation coming forward if you like when europe and certain countries in europe were so dependent on u.s. companies bringing jobs there? now tax regimes are coalescing an ecb u.s. bring down its corporate tax rate to meet some of the rates and the same could potentially happen in the united kingdom post-brexit. david: i think the european prospects are extremely good. we are growing slightly faster in the u.s. and unemployment is down in the single digits and the european economy is doing well. when you talk of jobs, yes, american investment in europe
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creates many jobs, but the same is true in reverse. is crucialvestment for job creation here in the united states. i think we both benefit from this process of investment and i'm absolutely sure that our companies will go where they see the prospects for economic benefits. europe is a good place to invest these days as the financials and new york never stop telling me. vonnie: you will need more details on that when you're in the city. institutional reform for the euro area with maybe a small bit derailed by brexit. where do you see the motivation coming from to a new the effort for institutional reform and have more countries join the currency union? are very much aware that in spite of all the progress we made over the last five or 10 years since the start of the financial crisis, putting in place some of the missing elements of the economic and monetary union, there is still more work to be done.
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the banking union needs to be completed and weenies a look at transforming the european stability mechanism into a european monetary fund and there are other institutional changes that are needed. i think there's a strong determination on the part of the 27 to take these forward. this is independent of what happens with brexit. changeswe need those and people are well aware of the agenda and it's known. we are starting to work on it and i've no doubt that within the next year or so that those decisions will be taken. vonnie: we just have a few seconds left, but i would love you response on your primary foreign-policy objective as eu ambassador to the united states. where do you want help or coordination from the united states? what are you pushing, which geography of the world for example? david: it's difficult to single out one place, but i would say the most -- the two most immediate crises that we are facing is undoubtably syria.
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this is the greatest humanitarian catastrophe in a generation. we are working very closely with the united states and the international community and trying to bring about a cease-fire and start the political process, which will enable syria to rebuild. we will hold a very important conference on the 20th of april in brussels looking at the humanitarian situation in syria and how we can think about reconstructing the post cease-fire. vonnie: david o'sullivan, thank you for joining us. coming up, we are staying in washington and going to bring you highlights from president's meeting with some governors . this is bloomberg. ♪ mom, dad, can we talk?
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sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one.
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seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. mark: i am mark crumpton with first word news. the supreme court has handed the trump administration and defeat on the so-called dreamers at least for now. justices turned down an appeal aimed at ending deportation
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protections for undocumented immigrants. that buys them time while congress tries to work out a political solution, but the case could end up back before the high court after an appeals court rules on it. warns that the trump administration's changes to obamacare will boost premiums by double digits. the urbanto institute, payments were obamacare insurance plans will go up by an average 18% in 43 states. those are the states where there are not limits on less comprehensive coverage the administration is calling for. russian president vladimir putin has ordered daily humanitarian pauses in the fighting in the rebel held eastern syria city of ghouta. the cease-fire will be arranged by nin night :00 a.m. and 2:00 p.m. every day beginning tomorrow. it comes after the un security council approved a resolution demanding a


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