Skip to main content

tv   Bloomberg Markets European Open  Bloomberg  November 6, 2019 2:30am-3:59am EST

2:30 am
anna: welcome to "bloomberg markets: the european open. i am anna edwards live from the city of -- london. the market says time to confront the data. asian stocks higher in the absence of trade developments but europe septa sold -- open software as we await -- softer as we await services pmi data. stock trading woes. generale revenue misses estimates and made 20% decline in equity revenues. >> due to the global uncertainty
2:31 am
quotenment, we can project, etc. if you have a nine months or you looking at this quarter, the equity franchise remains solid and keeping market share. anna: softbank's miss. the firm posted first quarterly losses with staggering write-downs from huber and -- uber and wework. a top diplomat tells of a quid pro quo in ukraine as china sets its price for an interim trade deal. the u.s. must drop tariffs. less than half an hour until the start of european equities. all of those headlines, having an impact on the markets. let's look at what we've got. this is what futures tell us will be happening in europe. dax and cac, a little flat.
2:32 am
ftse futures, looking more negative. futures, fairly unchanged at this point of the trading day, drifting after we saw decent gains at the beginning of the week. generally speaking, not moving that far on the u.s. futures, global futures and if we show you the gmm, fairly confused about the asian session. waiting for new lines around trade. the heard talk about the conditions the chinese want to impose on signing phase one of the trade deal in the u.s. will they require a rollback of the tariffs to get them over the political hurdles to do that? that is part of the narrative but we needed new information. the asian market is adrift. add to that good data out of the seems to be bad data for the markets when it came to expectations around what the fed would do. interesting what has been going
2:33 am
on with oil prices come down .5% on brent but in the commodities space the last six months, a rising tide for commodity markets. at six-month highs on the bloomberg commodity index. the trade narrative, lifting assets. we see interesting narrative around strength on the commodity markets. let's get to the markets with mark cudmore, who joins us live from singapore. good morning to you. it seems the risk on rally fizzled out in the asian session. the decent data out of the u.s. yesterday, not enough to drive things higher. what are we waiting for? news lines on trade, i guess. mark: absolutely. people are nervous at the moment because this is a theme that has ended and float, but we are short-term price for extreme optimism. some think we will have a set action.
2:34 am
it should be emphasized the broader trend has been positive since august-september. talk about a setback is retracement from the optimism we've got, not a breakdown in talks. wave.a two-frequency the broader wave was negative all from last year until the start of september and has turned positive, and then the higher frequency rave around aen we get headlines back, pullback, about to sign, a delay. when they both matchup, it is good for stocks. now, people are worried the higher frequency wave of ending and flowing might produce a negative -- ebbing and flwoing might produce a negative headline but earnings are behind us and that means the risk environment is pretty positive at the moment. anna: where does that leave us for an end of year rally? you have been negative of late in equity markets and where they go from here, but the mliv team have been throwing around the
2:35 am
question, which stocks would lead a year-end rally? the view is a year-end rally is coming. we are all battered from the fourth quarter, around the christmas trading last year. mark: absolutely. we have different views on the team, but as you know, i've been in the camp and suspicious of the equities rally until this week. i have conceded on that view that the tactical reasons are there for equities to do quite well into year-end and the start of next year. then we can return to your term the facthat is there, we are suspicious of a grand deal of the china-u.s. trade deal. team is more bullish now than they were a week ago. as to which stock market will lead us, having only recently come around to the bullish camp, i haven't led this analysis but some colleagues have done
2:36 am
excellent work on the asian market. india and it will be korea that lead us and on the smaller ones, it will be indonesia that leads us. there are some people who think the u.s. has underperformed asia stocks the last two months and this might be an environment where u.s. stocks can out, form especially given -- outperform, especially since they have shown they can be supportive and the u.s.-china trade optimism. i have sympathy very idea that u.s. stocks cap perform. anna: let me ask where the euro is heading. germany's factory orders, better than expected. a little glimmer of hope, but one month's worth of data. there seems to be narrative around manufacturing, maybe we seen the bottom, maybe we seen some of the data started turn and there is the contagion from manufacturing into services. maybe that is supported for the
2:37 am
euro? mark: i'm not getting too enthusiastic on european growth yet, but i sympathize with the idea that the second derivative -- the speed of that growth is declining, slowing down. we are not seeing the collapsing growth we were seen before. it is important to emphasize that when it comes to trading the euro, the currency, growth is not the dominant driver and going into q4, i was a list the euro even though i was negative european growth. might view on european growth hasn't shifted massively and i think north -- short-term, the euro will we can against the dollar. the dollar will get a benefit from inflows. there are equity inflows with the s&p playing catch-up and what the fed communicated last sing itsterms of pau easing cycle so front-end yields won't come lower, but we won't get the long and rise to much,
2:38 am
means that that overall flattening theme over the last week or two is supportive to the dollar. euro-dollar can weaken a little in the short-term term but year-end, euro might do ok. you, good to speak to mark cudmore, bloomberg's market live managing editor. to join the debate on today's discussion, which stocks will be leading the sector? reach out to us on bloomberg tv and the markets live team. ib + tv is the function to use on bloomberg. let's get a first word update. setback in the impeachment inquiry for president trump. two of the president's top envoys were troubled by the actions of his personal lawyer. they outlined a quid pro quo for 82 ukraine in exchange for tf
2:39 am
announcing it would investigate joe biden's son. sondland said his role began as perplexing but got more insidious. u.k., where former chancellor philip hammond is quitting parliament. this after an expulsion from the conservative party for voting against boris johnson's strategy. he will step down on the 12th. he hit out at johnson for not allowing a wide range of using the 40 party. lebanon's credit rating has been cut into junk by -- further toward junk by moody's. it increases the likelihood of default as protests roil the nation. demonstrators have been on the streets for weeks in lebanon, demanding a chang in the situation that has led thee -- left the country on the verge of bankruptcy. global news 24 hours a day, on-air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.
2:40 am
i'm oanh ha. this is bloomberg. anna? anna: next, adidas reports third according -- third-quarter earnings that beat estimates. this is bloomberg. ♪
2:41 am
2:42 am
anna: welcome back to the european open. 18 minutes until the start of equity trading in europe.
2:43 am
in tokyo, the ceo of softbank is speaking about the results the revealing aorted, $6.5 billion loss from hoover wework turmoil. they have had to defend investments. we heard from him that they are suspending the opening of any new wework buildings for the next 24 years. annmarie hordern -- two to four years. annmarie: a tough morning for softbank. its first quarterly offer a loss in 14 years and this chart really says it all. the loss of more than ¥700 billion was bigger than the most bearish estimate of $448 billion -- ¥448 billion. this stems from the right down the chinese -- japanese
2:44 am
conglomerate took from wework and uber. wework in particular had a spectacular implosion after raising money at a $47 billion by wishing january, was said to be valued at less than $8 million. andbank is bailing it out the ceo is paying the price personally for bold bets. his net worth went down 30% since july. one asset manager said they didn't -- don't know if wework is just the tip of the iceberg for softbank's trouble. likeion fund holds others guardian health and they have been down more than 35% in last three months. the vision fund had an unrealized loss of more than ¥1.1 trillion. that's $10.3 billion. it was going to be a tough quarter for softbank, tim culpan says these are arendt's numbers for the company this morning. anna: amazing chart, putting in
2:45 am
context the travails of softbank versus the profitable history. annmarie hordern with the softbank story this morning. in other corporate reporting, a deed is reported earnings that beat estimates. -- sports were maker sportswear maker sales pick up after months of supply issues. also, more promising return to growth. joining us, the ceo of the does. let me ask you about the north american business. you seem to be reporting momentum in north america, so do you finally put behind you the issues of the supply chain? as you saw, lieber grew double digits in the u.s. and online in china. the u.s. is accelerating and that is indicative of the fact that our supply chain issues are coming to the end. increasing growth on the fourth quarter so we group 2.5 times the market and were happy
2:46 am
with the performance in the third quarter and overall. are you having supplier parol from asia into north america? what impact of we see from the supply chain issues in the set of numbers? kasper: on the set of numbers, you can see a slight impact on the growth margin. you can see very little impact on the growth rate. in the fourth quarter, you will not see impact on the growth rate. in the fourth quarter, you will see the first indications of the european championship in football in 2020 that we look forward to. anna: let me get another topic around tariffs. in august, you said the threat of u.s.-china tariffs wasn't a big problem for a deed has and perhaps you still have my view -- adidas but can you update us on the story, the actual tariffs for adidas? kasper: we do 23% of our
2:47 am
business in china and have 19 percent of infection capacity in china. it is a level where we don't mention it in our quarterly report because we don't see it. what we worry about and i mentioned the second quarter result, the volatility that could come into the currencies with a sizable chinese business but from an overall reporting standpoint, we do not seen impact in the u.s. numbers at this stage. our concern in the u.s. is spend less money on our product but reportedly, we will not see an impact worth mentioning in the numbers. anna: what you see from the u.s. consumer, a lot of people are looking at contraction in manufacturing, and saying how long can the consumer thing remain robust? is the u.s. consumer on good form? kasper: the third quarter was the best quarter for us this
2:48 am
year in the u.s. with double-digit growth and they are leading us to a record year so we confirmed the outlook for the year. right now, we are not seeing a substantial contraction in the consumer market and we expect above market growth for the fourth quarter and going into 2020. we remain bullish on the u.s. market, even though you might see a slight contraction, but we don't see that as an inhibitor to our growth globally at this stage. anna: china on your growth plans saw arrivals light nike last year being caught up in the culture war going on between the u.s. and china, finding themselves speaking out in favor of democracy and taking a stand. do you see a role in sports brands for talking about democracy? that something sports brands should be doing? kasper: i don't think sports brands -- and i speak -- should only be a political brand. we are present in 75 countries
2:49 am
around the world with different political systems. frankly, i don't know -- our role is to make sure the people conduct sport have a healthier products,g the best whether that is in china, america, denmark, or germany. regarding the chinese market, we grew double digits in the chinese market. and ournue to invest building integration into china and our growth in china in the first nine months is the same size of our total adidas business. china remains important going forward. anna: something else that is growing is the speakers and plastics and using the way the indian the ocean. you take this -- end up in the ocean. do you recycle it out of the ocean but it is a small part of the business. how big can that innovative use
2:50 am
of recycled plastics get? kasper: that will become very large. next year, we will announce two very large extensions to the recycled plastic business. we will take as much plastic out of the world as we put into the world. by 2024, we will only use recycled polymer. recycled ocean plastics is probably the biggest strategic drive into new project innovation in the future and we see consumers globally resonate to that, in the china, u.k., and u.s. anna: thank you for your time. kasper rorsted, the ceo of adidas to talk about the numbers and the momentum they see in north america and growth in china. minutes from the open and we will get your stocks to watch including socgen. the equity trading revenue stopped 20% as it grapples with negative rates and a smaller investment banking division. this is bloomberg. ♪
2:51 am
2:52 am
2:53 am
anna: welcome back to "bloomberg markets: the european open." 7:53 in london. stocks to watch with six and a half minutes to go until the start of trading. anden, the latest from bmw, &s on the retail side. thearie: call higher and
2:54 am
key takeaway is food is point cap clothing, -- .9% and clothing seems to be a drag on the business while they are trying to turn it around. it is called up higher on the food sales numbers. anna: let's continue on bmw, beating the highest estimates. tom: indeed, and vehicle sales -- revenue growth really exceeded their vehicle sales game so overall, the positive story at the moment. the cfo last month said they are planning to increase and double sales next year, their highest in suvs and sedans and sports cars. looking atill be what management says about improving carmaker profit margins because they have to spend a lot of money developing new electric cars. m&a we havethe seen.
2:55 am
on socgen, the latest on equity trading there? >> as you said, a big hit. 20% drop in equities trading, especially structured products, a combination of one or more products. part of the shrinkage is from them changing the investment bank but these are important areas they have tried to refocus on. this should be pretty negative for the stock. some mitigating factors are they have expected a cautious market in this period. that may have been priced in somewhat. anna: thanks to the team. thank you for joining us. you can get the stocks the team is watching by typing first go on bloomberg and the mobile app. into, the property management business in europe, keep an eye on this one. it could be weak at the start of trade, the beleaguered u.k. shopping mall landlord has conceded it may need to raise
2:56 am
fresh capital after being hit by retail around cuts and closures. dialog semiconductor could be active this morning. the open is next and futures point to a mixed-negative start. this is bloomberg. ♪
2:57 am
2:58 am
2:59 am
anna: a minute until the start of cash equity trading this wednesday. welcome back to the european open. let's get ready for the open of european equity markets by looking at a few assets that could be of influence. one common the asia-pacific session and we are flat on the msci asia-pacific. in aoing anywhere hurry in the asian session. we saw the risk on appetite this time yesterday fizzle out there yesterday and into asia, partly to do with a lack of news flow around trade, partly to do with the strength of the services data. people are no longer expecting support to the extent they were from the fed.
3:00 am
s&p, fairly flat and european futures fairly flat. currency, trading stronger against the dollar for another day. we will last questions about whether that will be part of a trade deal that comes from the u.s. and china. europeanres are flat, futures are fairly flat apart from ftse futures, which accessed downside at -- suggest downside at the start of trade. the gmm function, the ftse 100, true to the futures expectations, is trading weaker, down .2%. perhaps of europe -- will look a little firmer. the euro, a little firmer this morning. we had factory orders data from germany better than expected. the pound is almost entirely flat as we watched the earlier stages of the election campaign really kicking off in earnest today. let's have a look at a sector perspective. fairly mixed on the sectors.
3:01 am
health care is a big area of red. financials, substantially in the green. numbers from socgen will be part of the story. elsewhere, utilities looking negative. information systems and technology looking negative. looking for individual moves of interest. let's get to the mov screen. up over 4%.cer's, interesting in the context of what annmarie was talking about. society general, socgen up despite the weakness in the equities trading story. stocks go higher. let's drop to the negative side. we've got glaxosmithkline, the biggest faller, down 3.75%.
3:02 am
we heard from the astrazeneca ceo overnight. glaxosmithkline shares halted in london, which is interesting. pandora is an early faller, down 2.2%. i can tell you dialogue semi is down .3%. i mentioned socgen, that stock moving to the upside. waiting for an opening price on into properties, possibly having to raise. markets to the settle into their opening pattern and talk about the broader trade narrative because china is setting its price for interim trade deal with the u.s. him a drop the tariffs. beijing has asked to withdraw the threat of a new tariffs. the question is whether the president trump will agree to give up his weapon of choice. joining us to talk about this,
3:03 am at know some of what china is asking from the u.s. in return for maybe president xi signing on u.s. soil. what are you expecting on the trade narrative? is all the mood music for you suggesting this will be done soon? at least phase one? >> phase one for me is not about the trade war. it is phase one of the trump reelection campaign. that is what this is all about in my eyes. trump is trying to orchestrate everything to line up all the stars that he can secure the reelection. is of the key parts of that reducing the tension between the u.s. and china, and i think the real turning point was the job of the imf, coming out strongly
3:04 am
on a number of occasions, we may go into a recession. let's turn the ship around. it ashas tried to keep close to the edge as possible before coming up with some sort tensionstion of these so he can avoid a spiral into recession. anna: what is going to be the u.s. request in exchange? we know a little about what china is asking. you have been focused on the chinese currency and where that goes, and we know president trump doesn't like weakness in other currencies. the yuan has been strong last couple of days, hasn't it? gregory: good luck trying to weaken the dollar. the greenback is strong and there will be industry differentials to support the dollar going forward. we are bullish on the yuan and i don't think it will be overtly be part of negotiations but more covertly. as the yuan appreciates, that is a way of giving the americans
3:05 am
had little bit of leeway in terms of taking some of the air out of the tensions, so i do think the currency will feature but not on the headlines. more on the underlying. anna: global stocks are not far from records, very near records. do we go onward and upward from here for the year-end or are you turner this -- to nervous thinking about last december? gregory: i'm not afraid to take the view, and the view i've got is that everything trump is doing is about his reelection and in order to get reelected, stocks have to be green because americans are obsessed with their 401(k) plans. our best venture would be stocks continue on their trajectory over the coming months up until the reelection campaign. anna: we are asking this on our aiv blog, which stocks --
3:06 am
broad improvement in risk sentiment as phase one trade deals get signed or will it be a sector narrative to focus on health care, financials? gregory: there will always be sector dispersion, and we have been banging the table on semis for some time. that story is becoming well telegraphed. it was the weakening demand and oversupply and that sector tends to badly. the whole narrative will be about pricing in, what if trade goes back to normal? maybe not perfectly normal but maybe that is the new normal and we can start to put some of those bearish manufacturing information and data points behind us, because that is the narrative i am focusing on. anna: we will pick up on what that means for central banks closely. -- shortly. gregory perdon of stays with us. stocks on the move, including iss.
3:07 am
this company is slumping in copenhagen after a profit warning. details on that shortly. down 16% this morning. this is bloomberg. ♪
3:08 am
3:09 am
>> perspective, is there a huge trust deficit right now globally, and exacerbated by the uncertainty that the trade war has caused and the uncertain
3:10 am
prospects of security violations potentially in 5g? >> yes, there is a trust deficit. the question is why? remarkable is a very on the one, with hand, clearly we are seeing this remarkable new technology arrive on the scene. 5g, that is going to transform the world, make the human condition better, but it arrives at a moment of history -- anna: bringing you live pictures, stephen engle moderating a panel with guests including the huawei ceo. i think that will run for quite a while this morning. it is live from shenzhen and will go on for more than an hour. watch the whole thing on live go on bloomberg. let's talk about the fed right now. robert kaplan isn't a fan of negative rates.
3:11 am
he says they are an indication of growth slowing and should be a red light for policymakers. goldman sachs's ceo david solomon told bloomberg this week history would not remember the policy favorably. >> i think when we look back on negative rates, when the book is written, it will not look like a great experiment. i don't think negative rates are bringing that benefit we would like to see. there is no question growth in this part of the world has been lagging and negative rates have not allowed in the solution of growth, in my opinion. that was from our interview with goldman sachs' ceo this week in berlin. gregory perdon, co-cio of arbuthnot latham is still with us. two american perspectives on negative interest rates, the european phenomenon. your thoughts on whether we will say negative interest rate is worth it. kaplan was saying the ecb has tried to do extraordinary things.
3:12 am
europe might be better served if the ecb tried to do less. gregory: i have a slightly different opinion from the goldman ceo. too broadbit of a brushed stroke. i think the ecb deserves more credit for what they have done. in the past 200 years, most of the crises have had to do with shocks, whether it is a price shock, inflation shock, oil shock, credit shock, and quantitive easing has done a good job of insulating global markets from those shocks, which has enabled us to recover a little bit. when we do write the history books and read them later on, i think the central bankers like mario draghi will get some credit for giving economies some breathing room to recover and also, and one of the things many of the commentators don't give him credit for is the fact he
3:13 am
helped get the transition mechanism going again. it is easy to quickly had out -- without at the policymakers. negative rates are kind of coming to the end of their -- anna: there is something cultural worth exploring a bit. it is often said quantitative easing and negative interest rates boost those already owned assets. when we look at the german economy, a guest reminded us there is less homeownership than other parts of the developed markets. perhaps it doesn't have the same effect and makes germans about out and save in ways others might go out and borrow. this is an interesting cultural experiment, i suppose, taking place in a number of cultures at the same time. gregory: my response would be what did christine lagarde say?
3:14 am
she says you should be happy you have a job. anna: i don't think she used those words exactly. gregory: that was the implication. anna: because unemployment is coming down. rsegory: you go back four yea and one of the main criticisms of the european economy was youth unemployment was skyrocketing and it was impossible to be corrected. we've seen youth and regular unemployment continue to grind down year on and that is a great accomplishment. it is too easy to criticize. anna: point well made. gregory perdon, cio of arbuthnot latham stays with us. later today, we will bring an interview with chicago fed president charles evans at 1:00 p.m. u.k. time. let's get into the conversation in shenzhen. stephen engle is hosting a panel. -- i think they are talking about trade tensions.
3:15 am
anything. ask me security, thison issue will always remain important. shield and like the the spear. example, for encrypted key, even if you have the most safe it, with quantum computers, will only take seconds to break that key, maybe in the past it would take dozens of thousands of years to break that encryption. i think information security is a relative term, not absolute term. people talk about blockchain and how great that technology is, but in front of quantum computer, blockchain may be easy
3:16 am
to be broken. actually, the paper money we use is part of the -- anna: apologize. we had a problem with the feed. huawei, coffee with ren, go to live go and they will continue to talk about -- quantum computing and blockchain is what they were talking about. they were also talking about the trade narrative, i am assured. hordern, to annmarie looking at the movers this morning and there are a few. annmarie: in the heart of earning season europe, m&s is the biggest gainer on the stoxx 600, up more than 6% and you can thank the sales in the food section driving prices. food is outshining clothing. up. .9%. estimates were for .3%. iss, down 18% in copenhagen.
3:17 am
with a profit warning and it is failing to live up to what the ceo said work overly ambitious gold. properties, down more than 12% this morning. the you came all landlord says they need to sell assets and may need to raise liquidity to address short-term and medium term liquidity needs. on top of that, this has to do with the fact they are facing much more expensive rental cuts -- retail rental cuts and closures. anna: the travails having an effect. on the program, a blip. the turnaround of socgen takes a hit as revenue slumps. hear from our interview with his deputy, coming up next although the share price of socgen this morning, up 3.9%. this is bloomberg. ♪
3:18 am
3:19 am
3:20 am
anna: welcome back to the european open. 20 minutes into your trading day and the stoxx 600, fairly five. some downside in london -- fairly flat. some downside in london. socgen's third-quarter earnings missed the lowest estimates. the french banking gia has seen a 20% decline in equities trading in that period.
3:21 am
the ceo spoke to bloomberg and discussed the impact of negative rates on banks, french retail, and the lender's recent cost cuts. as you know, our franchise is more geared, more driven by stricter products and the client demand has been slow. due to the global uncertainty. you can quote tariff war's, brexit, so on. ,f you have a nine months view our equity franchise remains solid and is keeping its market share. are you struggling to gain more market share compared to peers? as we announced at the beginning of the year, we are forecasting being first, investment products, cross
3:22 am
andts, financing solutions third, what we call advisory activities. we are refocusing that. if you take the market on those three segments, our intention is to gain market share. we are not competing to have a global market share. we are focusing on segments where we have those factors. of these external factors, such as the trade war, such as brexit, should continue weighing into 2020. severin: i have an expectation to see the brexit could be in hand at the beginning of next year. in our case, if i may make a comment on that situation, from have taken thewe worst-case scenario to adjust our position, which is hard brexit, no deal brexit.
3:23 am
whatever is the outcome, we are prepared for that. discussion isthis really creating more uncertainty and at the end, a lack of investor appetite in some european assets. >> are you following the events in the u.k. very closely? are you interested in the day-to-day brexit saga? severin: i am following it. whether i am interested is another point. i have to follow it because it is a business issue. >> the ecb, christine lagarde took over at the central bank last week. there is a lot of discussion about the impact of negative rates on banks. we spoke with a cio who said he believes negative interest rates are not constructive. do you agree or disagree? severin cabannes depending on the perspective you take.
3:24 am
the aim of the central bank is to support the global european , and theno bolster raise inflation rates. issue is, the results are there is air, but significant part which is the impact on banking revenue. we have clearly to take into account this situation. in our assumption, this negative interest rate will last long. we are taking that as an assumption and we are adjusting our operational set and business models. anna: that was the deputy ceo of societe generale, severin cabannes, speaking to carolyn. gregory perdon is still with us. he gave insight into his thinking on u.k. assets or the extent to which he is watching the brexit story. he has to watch it. you've described it as a
3:25 am
contrarian call on sterling. what is your thinking on sterling at this point? gregory: our investment committee a few weeks ago concluded that hard brexit from an investment perspective, leaving politics to the side, as investment managers, politics are not relevant. it is all about the price. weeks ago, it was a 50-50 between a hard brexit and not a hard brexit. expressing a view didn't make a lot of sense because that is not what we do. we manage the risk. is believingham the risk of a hard brexit is not 50-50 anymore. it is less than that. what is the best for -- best barometer? sterling. position to take and it is interesting to note that going into the 31st of october deadline, we saw sterling begin to rally and when the deadline wasn't met, sterling held its gains which for me is confirmation they are -- there is potentially a floor.
3:26 am
a contrarian trade worth considering, which we are in the process of putting on, his long sterling versus the euro. anna: this is something we talk about lock him up somewhat we do with sterling -- a lot, what we do with sterling. mortgage markets, will the consumer market stay strong? what in the mortgage market? gregory: it to the playbook of donald trump's reelection campaign. he wants to give as many tax cuts to the american consumer as possible because consumption is more important in manufacturing. one of the covert ways he can do that is essentially by giving the cost of servicing on a monthly basis to reduce that. he does that by pushing the fed into lowering rates and we see u.s. 30-year mortgage rate climb from 5% to 4% over the 12 -- past 12 months. that is a tax-cut. anna: great to see you this morning. gregory perdon, co-cio of arbuthnot latham.
3:27 am
gregory continues the conversation on bloomberg radio at 8:45 a.m. u.k. time. setserman finance minister out a plan for a deeper european banking unit. he says being dependent on the u.s. or china is not an option. ♪ the game doesn't end after that insane buzzer beater.
3:28 am
3:29 am
because with nba league pass on xfinity you can watch the out of market games you want- all season long. and with the all-new xfinity sports zone, you get everything nba all in one place- even notifications about your favorite teams. watch the dropped dimes, monster blocks, and showstopping dunks. plus get instant access to your teams with the power of your voice. that's simple, easy, awesome. say nba league pass into your voice remote to upgrade for a great low price - or go online today. anna: 30 minutes into the
3:30 am
trading day, here are your headlines. societe generali revenue misses estimates after a decline in equity. but gains as the lender else its cet1 ratio. loss in posts its first years. speaking now in tokyo, masayoshi son says he regrets overlooking adam neumann's negative traits. and the heat on president trump rises. a donor and top dipper met tells of a quid quote pro in ukraine. quid quote pro a
3:31 am
in ukraine. welcome to "bloomberg markets." i am anna edwards in london. matt miller is off today, preparing another project. let's look at the trading day. we are up just a touch but fairly flat. in fact, 200 90 stocks going up and 290 down. we are pretty undecided. is 6.7%micals business higher in germany. their numbers beat estimates and listed -- lifted the stock. talks ofdespite the the negative or challenging consumer environment, is going higher. the food seeds to be benefiting. alstom numbers. societe generale up by 3.5 percent, numbers from them out as well.
3:32 am
we have banking names and a bit of a bounce for siemens. let's look at the downside. we are really undecided on which way we are headed. 17.4%t of denmark down by , blaming overly ambitious targets. -- semi, at chipmaker, down 2% on the back of their numbers. weaker.n is i am looking for a read into the property story. that is down 2%. keep an eye on the automakers. i saw a downgrade to dobler. -- daimler. let's get a first word news update. the world has gone mad with free money according to billionaire investor ray dalio. hea post on linkedin, decried the current policies leading to rising gaps in wealth and opportunities.
3:33 am
he says that money is essentially free for those who have money and is essentially unavailable to those who don't. looking at a potential deal to take the company private. it could become the largest buyout deal in history. it recently held informal talks with private equity firms. the drug company has a market value of around $55 billion. walgreens and kkr declined to comment. softbank is disclosing the damage from its bets on we work uber, leadingnd to the investment powerhouse's first quarterly loss in 14 years. it comes as they try to raise a successor to its measure -- megavision fund. to the u.k., where philip hammond is quitting parliament after his expulsion from the conservative party for voting against boris johnson.
3:34 am
he will stand down at the elections on december 12. he hit out at johnson for not allowing a wide range of you within the tory party -- of views within the tory party. global news, 24 hours a day on air, on tictoc, and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna? anna: thank you very much. let's talk about germany. the german finance minister olaf scholz says he will consider and enhance european banking union framework that would include a common insurance mechanism. this would ensure the eu is less dependent on the u.s. or china for its financial services. writing in the financial times he set out a four step plan to complete the banking union. eu-wide insolvency and resolution procedures, measures to reduce risk, a european deposit reinsurance scheme, and uniform taxation of
3:35 am
banks. joining us from berlin is our government reporter. help us untangle the meaning of all of this. is this quite a big little change of heart -- political change of heart we are seeing? or is it just of the thoughts of olaf scholz? give us the context. patrick: you could say it is a big step to take for a german finance mr. -- minister. years, germany has been at the vanguard in blocking or slow walking a euro area deposit insurance scheme. this is one of the biggest pieces of the puzzle to close the banking union to really make the currency whole. countries have consistently blocked it because they do not want to be holding the bag for poor countries in southern
3:36 am
europe where failing banks could have to be potentially bailed out by the north. ana: as you say about this is big step for the german finance mr.. no doubt -- minister. no doubt, he will meet resistance. or is there a sense that the deadlock has to end? as he says, you want to be reliant on neighbors and not others from outside. thisck: a scheme like certainly meets a lot of ,pposition from the banks possibly from chancellor merkel's christian democratic union and bavarian allies. we will see what opposition he gets here. among the public, there tends -- this tends to be an abstract issue but not necessarily a political winner. in theholz himself is leadership race for the social
3:37 am
democrats. if he wins, there is a better chance that a grand coalition stays together. if you loses, you could see a breakup of the coalition if the social democrats pull out. so there is a lot of german politics going on here. anna: interesting context. ,atrick, thank you very much bloomberg's government reporter in berlin. really fascinating thoughts from scholz. no doubt something we will be picking up on over in berlin. donald trump's assertion that hise was no quid quo pro in dealings with ukraine has been undermined in the latest transcript from the impeachment inquiry. a trump donor serving as ambassador outlined attempts are the personal -- by trump's lawyer to push investigations into joe biden and his son's
3:38 am
business activities. giuliani played a quote insidious role in dip a medic relations. our senior -- in diplomatic relations. our senior international editor joins us. how does this undercut the line from the white house? >> well, that's right. 700 from this impeachment -- pages released on the impeachment inquiry. show is that the new trump administration and mr. giuliani played a role in getting that message to the new ukrainian government. ,hat they wanted to pressure wanted them investigate hunter biden. the son of the former vice
3:39 am
president who is running for president in 2020. this does undercut the message that the phone call was routine that everything. . about this was routine. the 700 pages of testimony indicate that there were concerns by the envoys. that it kept getting more insidious. so it really does raise questions and undercut the case that this was a routine kind of thing for the president to be doing. amount to aot political dealings. -- two political dealings. so it does raise questions. anna: it raises questions about the no quid quo pro argument. does it get close enough to the president to have real implications for the house impeachment inquiry? does it change the dynamic at all? >> that is the real question,
3:40 am
and we will have to see. the inquiry is continuing at three committees are looking into this -- and three committees are looking into this. what the house has voted to do thatntinue the inquiry so they are hoping the white house will have to participate in won't be able to call it a witch hunt. undercut another political argument the white house has been making that this is just a political exercise by the democrats. have 700 pages of testimony from these two men that create a case. meanwhile, also in , thedent trump's intrigue standoff on trade seems to continue. negative jibesn from the president and china.
3:41 am
we understand more about what china is asking for in exchange for signing a phase one deal. >> that's right. china wants there to be no more tariffs. they want the tariff threat removed before president xi jinping will agree to ago to the u.s. for a signing ceremony on this phase one deal that president trump wants. so they are waiting to see what they can get. anna: thanks very
3:42 am
3:43 am
>> we grew double-digit in the u.s. and china. the u.s. is accelerating, indicative that the client issues are coming to an end. that is why we expect a substantial increase in growth. overall, we grew 2.5 times in the market rate and were happy the performance not only in the u.s. but overall. anna: that was the adidas ceo speaking to bloomberg earlier on this program. 2% stock trading down now by in this morning's session. let's get your stuff movers elsewhere. -- stock movers elsewhere. annmarie: investors are
3:44 am
digesting a host of earnings. i wants to start with socgen, up even though they are trading equities and not eat estimates -- beat estimates. the stock is being pushed higher. ahold are both higher and confirmed their outlook and guidance which is why we are seeing them tick higher. looking at ans is potential deal to go private. it could be the largest by a deal in history with the company having an enterprise value of more than $70 billion. they recently held informal talks with private equity firms. , pei is the road hosting an event called women in private markets. our reporter dani burger is there with the private debt head of one of europe's largest direct lending firms.
3:45 am
the coheadhere with of pan-european debt. thank you so much for joining us. i wants to pick up where anna left off about the potential leverage buyout of walgreens. we continue to see it grow in size. are you concerned the private markets are looking at frothy? --looking frothy? >> yes. this is a sign that investors are more and more interested in private markets. therefore, deals like that are allowed to happen. debt side,e private is it looking less concerning than private equity? >> definitely. we believe we are active in an all weather asset class because we are in the safest part of the capital structure.
3:46 am
3:47 am
3:48 am
3:49 am
3:50 am
3:51 am
3:52 am
3:53 am
3:54 am
3:55 am
3:56 am
3:57 am
3:58 am
3:59 am


info Stream Only

Uploaded by TV Archive on