tv Bloomberg Markets European Close Bloomberg November 29, 2019 11:00am-12:00pm EST
bmw in joins audi and announcing big job cuts. and the u.k. pie minister says the u.s. president -- u.k. prime minister says the u.s. president should stay out of the u.k. election. is trump johnson's biggest worry? live from london, i'm guy johnson, with romaine bostick in new york. we are now counting you down to the european close on "bloomberg markets." ♪ romaine: let's get a quick check onwhat is happening here what is effectively a half-day. still up on the week and on the month. that is pretty much the story across all of the headline indexes here in the u.s..
typically on the day after thanksgiving. a little bit of a selloff in the treasury market. yields a little bit richer across the curve. we've been seeing this all week, even as equities did rally on monday, tuesday, and wednesday come over to those record highs. the dollar has been heading for its ninth straight day of gains. the dollar still setting up for its best month since july. and we want to take a look at crude. this is a pretty interesting reversal. he came in pre-much flat on the day on wti, now down almost 4%. a lot of concerns about opec and their commitment to production cuts. market not quite buying it. you can see that selling off a little bit as we head into the middle of the day. let's talk about what is happening in london. we are expecting an update from the metropolitan police within the next few minutes. when that happens, we will bring
you the headlines from it. a number of people have been stabbed on london bridge. we will bring you the detail. in terms of the market reaction, the pound has actually risen this afternoon, as you can see. probably more on what is happening with the political story or broadly, and it is worth remembering that a terrorist incident also in 17 election. nevertheless, we have seen a significant selloff in crude, and a pickup in the british pound. let's focus now on what's been happening with u.k. and european economies today. germany is firmly in focus. earlier, we saw an unexpected drop in employment. the number of people out of work sliding by 16,000, compared to estimates of an increase of 6000. at the same time, we also saw daimler coming out and confirm it was going to be cutting jobs,
joining the end of you and audi in similar stories. joins us now, global equities economist from commerzbank. how should i think about this? peter: generally, the labor market has been a pretty strong buffer against downturns. it was the case in 2008, 2 thousand nine. i think that will be the case this time around. obviously we are certain to see a situation where corporate germany will have to think about how to restructure this cost in order to remain competitive. at a time when the auto industry in particular needs to face up andng up addition in china the switch to electric cars, i think they will be at the forefront of restructuring. guy: the data at the moment out of germany is ok. it is not great, but it is ok. -- there seemsbe
to be this belief that in order to get berlin to deliver on fiscal policy, the data needs to get significantly worse. do we get to that point in the near future? peter: i don't think we do. as you said, the economy is doing ok. it will continue to do ok. rose above the zero line would be all right. the economy will continue to stumble along. it is really going to be interesting to see how christine lagarde plays this because, as we all know, she's been knocking on european doors say and we would like more fiscal stimulus, please. think it is going to be interesting to see how her political skills play out because there's general recognition that europe needs to do more fiscally. germany has a lot of firepower to do so. if it can do that, it can certainly invest in areas like green technology, climate proofing the economy, a lot of
things that need to be done which haven't been over the course of recent years. unfortunately, i don't think we are going to get there anytime soon. romaine: when you look at the global story that we seen this year, this has been a bit of an imbalance between what we are seeing on the consumer side of the equation and what we are seeing with regards to business spending and business confidence. do ucs having a bit more of a balanced economy heading deeper into 2020? peter: i think the balance might come as the consumer slows down a little bit. we are in a situation now where corporate have really done all the investment they wanted to do. when you look at the u.s. in particular, the benefit of those tax cuts which are clearly beginning to wear off, and europe, a lot of other global headwinds are beginning to mount . we are starting to see now indications that the consumer is losing a bit of momentum.
we are getting that rebalancing, but not necessarily in the right direction. guy: the last couple of times -- romaine: the last couple of times we had a midcycle slow down, assuming we are midcycle right now, a big part of the rebound globally was because of china. are we going to get that this time around? peter: i think you've hit the nail on the head there. no we are not. i think we are in a situation now where the chinese economy is slowing anyway because demographics have been running against it. we are also at the stage now when the authorities are not willing to stoke the fires in china the way they have been in the past because they realize that that will simply exacerbate the existing imbalances. china is also struggling in the wake of the trade conflict with the united states. i think you put those factors together and you are looking at
a chinese economy which is going to be lucky to get at 6% growth next year, and we could even see a 5% handle for the first time in many a decade. chinese,he particularly the industrial sector, doesn't recover soon, can i assume that german manufacturing pmi's are going to continue to look pretty grim, or potentially worsen into 2020? peter: i think if you go down come of the german manufacturing numbers don't start to look better. i think there are some hopes that maybe we bought a man stabilized. might start to see the pmi's take up a little bit, but the fact of the matter is -- guy: ok, but if they stay where they are, we are starting to see evidence leaning into services. does that continue? peter: i think there's very strong chance there is. that is consistent with the story of the german economy, which is going to be bouncing around the zero line. we are just hoping we are going
to be on the right side of it. i think clearly there are significant risks, and i do whether we are being too optimistic with regards to hopes that a trade deal will list us out of this mire. guy: when you look at bmw, mercedes, audi cutting thousands of jobs at those businesses, there has been a supply chain that feeds off of that. how do you calculate and look at the impacts and ripple effect of how that works? peter: it's become even more complex over the past few years because supply chains have lengthened and extremely difficult to keep track of. so we are stepping around in the dark a little bit, but i think the fact that we are starting to see the headline, the kingpins, as it were, begin to cut production a little bit, suggests we will see some big effects down the chain. just don't know how big those
multiplayer effects will be. but i think it will probably be significantly larger than in the .ast guy: a very nice supply chain function on the bloomberg. just want to point out when out. dixon -- peter dixon from commerce bank is going to stick with us. romaine: let's check on what is happening with the global markets. taylor riggs is here with more. taylor: we hit all of those record highs on wednesday, and today taking a little bit of a breather. we know that it is a light trading session, see you are seeing stocks fall, certainly here in the u.s. the stoxx 600, we were getting more concerned reports that there was some police activity on the london bridge of a stabbing come of that they are treating as a terrorist activity. so you have a little bit of risk off their, at least over there in london. as we know, generally today is a
pretty light volume trading day. if you come pick a look at a chart that i am showing here inside my terminal, it really shows that trading volumes overall have dropped about 40%. some of the big losers continue energytilities, seeing some of the latest trading volumes. that is almost to be expected. let's go across asset and take a look at yields. 10 year yields rising a little bit, now up to 1.79%. that is good for the financials. financials really get a boost from rising yield. energy is the story we have been talking about all morning. crude is pushing down the energy index more than 1% to be the worst performer today. we did hear that u.s. september crude output rose to a record according to the eia.
rising output means falling prices. for me, it is all about black friday. i cannot wait to rush to the stores. take a look at the winners and losers for some of these retailers. we came off of third-quarter earnings with a very clear picture of who is winning the we tail war -- winning the retail war. target and walmart continue to be some of the best performers. a report says that target and best buy had that really strong foot traffic activity overnight. ,eally good, convenient pickup curbside delivery options, so that is really going to help those stores continue to outperform. kohl's and macy's on the losing front with some merchandise and inventory issues, all pressuring margins. guy: thank you very much indeed. let me bring in the latest on what is happening here in london. you're looking at a live shot of new scotland yard, a little further down the river from the incident that has taken place on london bridge.
romaine: live from new york, i'm romaine bostick. guy: from london, i'm guy johnson. stick a look at the bloomberg first word news. here with the details, courtney donohoe. courtney: british police are treating a stabbing on london bridge as terrorism. several people were injured, and police shot one man. johnsonnister boris broke away from the election campaign to rush back to his offices.
we will continue our coverage of this for you. a couple of thanksgiving day surprises from president trump. first he flew to afghanistan to have dinner with u.s. troops. the president also met with the afghan president. he said peace talks with the taliban have resumed. the president is pushing taliban to agree to a cease-fire and says the u.s. will keep reducing troop deployments in the region. the big question now, how will china hit back at the u.s. over hong kong? aboutg is unhappy the bill back in hong kong protesters. china has threatened the u.s. and the pass over various issues, and not much has really happened. as we've been reporting, it is make or break for america's retailers. black friday kicks off the traditional holiday shopping season. for department stores like more ofr kohls, 1/3 or
their annual revenue is captured in the fourth quarter. rose 1.3% fores the first weeks of november. 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. i'm courtney donohoe. this is bloomberg. romaine: thanks, courtney. we are back now with peter dixon, global equities economist at commerzbank. peter, let's talk a little bit about the rates situation here. we are starting to get a lot of conflicting forecasts. some folks think be lower for longer rate environment is going to persist. some folks saying we could actually see ourselves pulling out of that negative territory in europe, asia, and elsewhere. where do you think we are going to land? peter: i think lower for longer is here to stay. extent, a lot depends upon the extent to which european governments in particular will step up to the plate with the guard to fiscal
policy. but because they are not going to do that anytime soon, the likelihood is that interest rates here in europe and in japan will remain in negative territory for quite some time to come. unfortunately, the negative side evident,re become more and the longer we stay here, it is incumbent for policymakers to this soon ast of possible, but it won't be any in 2020. romaine: the peak of this global do you think we start seeing the peak of this global easing we seen over the past decade or so? peter: we are still stuck in low gear, as it were. the federal reserve made you a rate cut next year. be could argue that we may past the peak in terms of rates
for a number of central banks. other central banks are probably going to ease anyway. global conditions are likely to be rather easier than they are now. guy: is there going to be enough to continue to drive equity forward? this year has been driven by multiple expansion. you look at what happened with rates. haven't got earnings coming through. next year, how different is next year look relative to this year, even with the scenario painted for rates? peter: i've been saying that this multiple expansion is overdone. markets are probably due for correction. and i've been proved wrong. i think there will come a point when the investor will think, there are a lot of risks around this situation. the china story is one of them. the length and strength of the u.s. economy the another one. i think we are in a position now where equity investors are probably more susceptible to bad
views -- susceptible to bad news. if we start to see signs of slowing momentum, that could impact the wider markets. i think over the course of the , deeper intohs 2020, maybe we will start to see a re-think. i am not inspecting a crash. guy: but you don't sound like you are expecting the eased to pick up. the earnings picture is not going to be improving anytime soon. peter: that's right. the economic environment you've itcribed is not one in which will move very far. perhaps we could see more cost-cutting, but that is a slow going process. i don't think that is going to happen. so i think we struggle to maintain the pace of the moment and we have seen is late -- we have seen of late. we've seen less
pessimistic commentary from a lot of ceos, and a lot of them seem to be at least making the case that some of the worst case scenarios we have been back in the summer and spring in the u.s., that that is not going to materialize. what is being forecast now by corporate linetives is relatively in with what economists see is the outlook for the economy? peter: as you said, they are beginning to price out the worst case scenarios. they are shifting a bit further out than they were. but just because the worst case doesn't happen doesn't mean that bad things can happen. so i think we are going to remain cautious. also, is there any good news to factor in? that's the real question. if there isn't any real good news, the economy doesn't really pick up.
it's ok, but you are buying equities for the dividend yield rather than for the capital ga in. romaine: what about something like sentiment in general? when we talk about the trade deal, we are not really talking about how many soybeans china is going to buy. we are talking about shifting the sentiment among business leaders and investors, and even the consumer. could that be a positive catalyst? peter: i think that's consistent with our view that you will see in the first quarter of first half of 2020, markets will perhaps continue to improve on the back of the fact that there is no bad news. but you need good news to keep rolling forward. guy: is good news going to come liquidity?central banks
around the world are providing a lot of liquidity at the moment. traders like liquidity. they think it is good for equities. iter: it probably is, but think there's a limit of how much liquidity they can provide. you keep providing liquidity, what are you going to do with it?you can keep flipping equities and driving the values higher, but you're not really adding significant value to the market. at some point that may stop. i know i sound like a pessimist economist here, but this is a market which has been moved by liquidity and sentiment, but that is not a very sustainable position. guy: let's talk about whether or not we get better performance relative outside of the united states next year. his next year the year in which you want to exit the united states, or do you want to -- which youend
not exit the united states, or do you want to continue a trend of money flowing out of the united states? helps i think it arguably europe more because the likes of germany have been badly hammered as a result of the backwash from these trade problems. theink that will drag european markets along with it. guy: thank you, peter. i want to take you to the news conference currently being delivered at new scotland yard. >> police came to a stabbing east of london bridge. emergency services attended, including officers from the city of london police and metropolitan police. a male suspect was shot by officers from the city of london police, and the suspect died at the scene. a number of other people
received injuries during this incident. as soon as we can provide further updates on their condition, we will. our heartfelt some of these give out to everybody who's been involved in this and is anxiously awaiting for the condition of their loved ones. as soon as we can get that information, we will get it to you. due to the nature of the incident, we have responded as though this was terrorist related. i am now in a position to confirm that it has been declared a terrorist incident. we are working jointly with the city of london police as we continue to respond. officers from the met's counterterrorism command are now leading this investigation, but we retain an open mind as to any motive. it would be an appropriate to speculate further at this time. due to reports that the suspect may have had an explosive device , officers also attended the are innd wide calls place to make sure there is no danger to the public. i can confirm at this time that we believe a device was strapped
to the body of the suspect, a hoax disposed -- a hoax explosive device. officers continue to search the area to make sure there is no outstanding threat to the public. this extensive cordons will remain in place, and i will ask the public to please continue to avoid the area. public safety is obviously our top priority. we will be enhancing police patrols both in the city and across london. i would ask anyone with information, image, or footage of the incident that can be shared with our investigation to do so on the u.k. police image appeal website. i would also ask the public to continue to remain vigilant and report any concerns they have to the police. i know i would ordinarily take questions. i am not going to take questions at this time. the prime minister has asked for a personal briefing. i will be heading with the commissioner of the met to downing street immediately.
thank you for your patience. we will update you again when we can. you've been listening to a briefing at new scotland yard following the now declared terrorist incident that took place at london bridge a little bit earlier on, confirming within that briefing that a man has been shot dead, the assailant. they apparently injured a number of people before being tackled. wasnderstand, though this now confirmed, from civilians that he was shot on the scene. how thoseting to see affected by the incident are at this time, but we will get a further briefing a little later on. we will continue to monitor the situation. financial markets reacting -- well, not reacting to the incident that we have seen.
but we continue to monitor what has been happening here in london. unfortunately feels very familiar. london bridge was the scene of another terrorist incident back in 2017. pony 17 also the last year that we saw a general election in the united kingdom -- 2017 also the last year that we saw a general election in the united kingdom. romaine: still with us right now come appear dixon, global equities economist at commerce now, peterh us right dixon, global equities economist at commerzbank. let's get back to what is happening with the global economy. when we look at not only monetary policy support, but the renewed calls for more fiscal support to support the economy, to support the markets, did you think that we will start to see a little more political willpower to embrace the fiscal stimulus side of the equation a little bit more?
peter: to some extent, it is going to depend upon changes in the political makeup of various countries. if you look here in the united kingdom, we are in the midst of a general election campaign. hasopposition labour party a very comprehensive fiscal expansion plan. are thes put forward current government are much less fiscally stimulative. so i think in this situation, we are in a position where the u.k. and other european countries are going to need a change of government before we get a change of will with regard to the fiscal stamp. romaine: we obviously have the big election over the u.k., and we are heading into the big elections here in the u.s.. we've seen the political climate follow theseobe
policies that could be considered a little more on the spending, nofiscal matter what the party's. do you think those sort of political forces, at least as they are being driven by the public, could put more pressure on some of thepeter: yes. we are in a situation where we do need to see more action from governments and i think it will be incumbent upon the electorate to make that happen. we are not there. to a large extent, many electorates, particularly in europe are saying we would like to see more fiscal stimulus but we are not prepared to pay the price. not prepared to pay the higher taxes required to fund it. governments are in a default position of wanting to do something but not wanting to do something because they are concerned about the potential backlash they may face. it is an place to be.
ironic place to be. david: peter dixon is staying with us. guy? guy: let's talk about the close in europe. we are wrapping up the week. gray telling you at the headline level we have not seen much taking place today. equity markets in neutral. we are seeing a shortened session in the united states. volume has been spectacularly low. let's take a look at what the session chart has delivered. we have been fading this afternoon. maybe there is a relationship between what is happening in london with the terrorist incident and equity markets. i am not sure we can draw that connection. we have seen a significant downdraft in the price of crude. i find it difficult to make the connection. sterling has risen this afternoon rather than gone the opposite direction. as we look at the session, we are down .3%.
as we've been discussing, the signal to noise and all of this is very low. if we look at what the individual markets look like, the london market down .7%. it was significantly softer earlier on in the session and what i think has driven it to the downside this afternoon has not been what is happening on london bridge but the acceleration to the upside in the price of sterling. the ftse 100 trading at 7362. the dax flat. mixed things coming out of germany. better unemployment numbers at the headline level but further news from the auto sector we are seeing significant layoffs. this time it was daimler. earlier in the week it was audi and bmw. in paris, absolutely flat. the market down .1%. you the white line is where we are today, the blue line is the average over the last 30 days. we are down 30% today in volume. a light session in the united
states in terms of the duration of the session and here in europe that is being reflected. not exactly a great deal of signal in the noise. some individual stocks are worth focusing on. let's look at some of the individual names. out, doinghat stands a deal in japan. this is a grocery delivery company. it is basically a technology company. fulfillment centers in terms of deliveries. another company joining its long rest of companies. -- its long list of companies. ocado up 10%. daimler is likely to lay obscene of people. from thelt of the ship combustion engine to the electric motor. they are significantly easier to put together, plus these companies need to generate cost savings in order to provide the cash flow to make that transition.
i think that is part and parcel to that story. eon trading to the upside. it will be absorbing customers from one of the other utilities that have effectively struggled in the u.k.. eon up 3.61%. a very light session in terms of volume. romaine: the s&p 500 down .2%. we close about an hour and a half from now. the bond market closing two and a half hours from now. this is the last trading day of the month. we have 11 record highs on the s&p in november. no matter what happens, we were up 3% for the month, 4% for the dow, 5% on the nasdaq. a little bit of the selling in the treasury market. the dollar you can call flat. still in a day when street cap today and you can see the nasdaq 100 also a little bit lower but
still up on the month, as are the transports. the retailers coming to keeping a close line what they will do. a lot of folks will wait until we have the data on monday about how black friday shopping weekend went. a lot of positioning, a lot of what is going on ahead of the thanksgiving holiday. not a lot of sectors in the green. you are seeing a lot of the consumer staples moving a little bit higher. you can see the main index tracking the s&p 500 food and staples index up .3%. guy? guy: thank you very much, indeed. let's talk about what is happening with the british election. a number of moving parts worth monitoring. next week we do see president trump arriving in the u.k. that will be a factor we will be paying attention to. he is here for the nato summit. that potentially provide some risk for the boris johnson reelection story. >> we have very close
relationships and friendships with united states at every level of government. traditionally do, , as loving allies and friends, what we do not do is get involved in each other's election campaigns. the prime minister on lbc radio early on. edward evans still with us, as is peter dixon. i have to start with the news evolving over the last few hours, a terrorist incident on london bridge. in 2017, when we last had an election, we saw terrorist incident taking place. it is so early to get a thorough understanding of what is happening, but nevertheless, as you look at what happened then, didn't have any effect on the election? >> it is very early days with
what happened on london bridge. theresa may would've benefited that if she was stronger national security issues. it did not turn out that way. the effects the last time around was to remind voters their much graver national security issues out there that did not benefit either party. guy: next week the president will arrive, we will see the nato summit. in the past the president has injected himself into british politics. he seems to favor boris johnson over jeremy corbyn. he had a spat with the mayor of london at then there's the issue of the nhs. how big of a risk is this for boris johnson? edward: this is an enormous downside risk which is why johnson is coming out and saying quietly do not try to interfere in my election. the big issue is brexit and getting a trade deal and the rest on the nhs part in any trade deal? conservative mps have to
open the nhs up to u.s. companies? labor has been making much hey with that. what johnson wants from trump is a period of silence. the chances of that happening are low given his propensity to tweet in the early hours of the morning. romaine: building on what edward just referenced, there is a sense that once we do find out the outcome of this election and the outcome of brexit itself, there is a very long process to work out these trade deals between the u.s. and the eu and whomever else might be inclined to do so. what type of economic uncertainty does that throw into knowix, given we do not how favorable these trade deals are going to be for the u.k.? peter: we are talking about a period of relative calm in the early months of 2020. the expectation in the market is
we get brexit done, to use boris johnson's phrase, but that we have 11 months grace before the transition period ends and the u.k. has to notify the eu whether it wants to extend that transition through the middle of the year. despite the fact that the u.k. has that it will not extend of the transition period, the reality is the u.k. is unlikely to get any form of trade deal with the eu by the end of next year. what we are talking about is possibly postponing the cliff edge brexit from january until december, and we all know how that panned out politically over the course of the past few years and it has continued to weigh on the economy, particular with regard to investment. i do not see the clouds with regard to brexit lifting significantly in the early months of next year, certainly not toward the end of the year. romaine: do you think the u.s. has significant incentive to go
along with what johnson might want with regard to the trade deal? peter: if it is in the u.s. interest, that is what they will do. this is about realpolitik and that is one of the things which british supporters of brexit have failed to realize. a trade deal with the u.s. or china or the eu will be conducted on the basis of the economic power of the largest party, and that will be the u.k. if the nhs has to be offered up to the u.s. as one of the conditions for getting a trade deal done, that will have to be the case. the u.k. will have to take it or leave it. that is the position we find ourselves in today. guy: we will leave it there. thank you very much indeed. edward evans joining us on the election story and peter dixon joining us on everything this afternoon. be a dixon joining us from commerzbank. romaine: from toy stores to
electronics outlets, it is the moment retailers have been preparing for all year long. breck friday is underway in the u.s. -- black friday is underway in the u.s. and the national retail association expects 100 5 million shoppers this year spending a thousand dollars over the season. joining us is fashion designer and chief creative director of a retail holding companies for stores including men's warehouse in jos. a bank, thanks for joining us. i do not think there is a man in america that does not have one of your suits in his closet. we talk a lot about toys and electronics this time of year. what about fashion? is this something people gravitate to? black friday is so key for retailers, and for us it is important to have that experience inside our stores where people are shopping, giftgiving, and it is key. it is the beginning of the holiday season and is an important month as we approach christmas. guy: as we talk about --
romaine: as we talk about the changing landscape of retail, everyone wants to buy it online, pick it up in the store. how are you the stores you work with to adapt? joseph: it is important for the experience. people can shop online. why is brick-and-mortar so important? there is service, there is quality, and that is a key factor. in the apparel business it is touch and feel, which is not what you are able to do online. guy: can i ask you a big picture question? what is your sense of how strong the consumer is? are we still continuing with the strong consumer, are people spending freely, or are they starting to think the good times are in the rearview mirror? joseph: the way i see the consumer right now is they are buying relevant product. if product makes sense to them, they are shopping, they are
smarter spenders than they have ever been. that is key, because those people to create better products and more quality for the right price will win. it is no longer about the price only, but the price value proposition. i think people will spend if they think there is value. guy: we have always thought that the younger generation is more tech savvy, and it certainly is. you get a sense younger people are starting to gravitate toward stores because of the experience you talk about provided by retailers. joseph: i look at the millennials and see how they investigate brands and how they look behind the label. it is not just letters anymore. the young guy, especially in menswear, is buying more custom-made suits. it is interesting they are looking at quality but they are looking at who is the competition, who should they shop with, and one of our distinct advantages as they have a distinct -- we have a
custom-made suit business we can get to the customer in 10 days. there is value added to that. guy: are you seeing -- romaine: are using differences in the way shoppers here in the u.s. behave versus over where guy is? , as you know the heart of menswear has been in the u.k., savile row and german street. i think london as a city is a great shopping experience for men, and i think americans are now starting to learn why are european counterparts have dressed so well over the years. it is interesting to see the merging of the two cultures, but still london and great britain is the heart of menswear for all of us in the menswear business. guy: what about the strength -- romaine: what about the strength of brand names? people just want disposable items and do not care as much if your name is attached to it or not? joseph: i think that is changing.
i think the customer is looking for value. it is not price anymore. the value proposition becomes important. as i look at customers and see how they shop, and i spent a lot of time in our stores to understand what they are looking for, the story telling, what is behind the label is more important, especially with the millennial concept in terms of how they are shopping. guy: how do you see 2020 working out? give us your best prediction. joseph: i look at 2020 as stabilization and limited growth. i look at the guy still shopping and as i focus on menswear, understanding how they dress professionally as the job market is better. younger guys are getting dressed again. it feels like we are on a positive trend and i'm looking forward to a great 2020. romaine: thanks for joining us. joseph: thank you for having me. romaine: our thanks to joseph abboud, chief creative director of tailored brands. guy: let's talk about where we
have settled in europe. the final scores for the week. a negative session, underperformers from london. we did see a little bit of a blip in the last couple of minutes as we have come off of our lows, but for most of the afternoon we have been selling south. the pound is a factor. the pound has been gaining traction this afternoon despite the terrorist incident we have seen on london bridge, very close to where i am sitting now. elsewhere, light volumes and to be honest not very much action. the dax and the cac 40 exactly where they were at the end of the session as to where they started. a very light volume session. withu want more coverage what is happening in the market and what is happening on london bridge, be sure to tune into the cable showed live on air at the top of the hour on dab digital radio. this is bloomberg. ♪
guy: 49 minutes past the hour. that means it is time for shock of the hour. shares of utility company pg&e still low. taylor riggs, over to you. taylor: we are taking a look at shares of pg&e, falling after its is temped to escape a california policy that has settled its with billions of dollars in liabilities and pushed into bankruptcy that strategy failed. sided withptcy judge wildfire victims saying pg&e is subject to a doctrine known as inverse condemnation that holds utility strictly liable for covering the costs of all of these blazes, whether or not they were negligent. that is the key phrase. pg&e had blamed that inverse
condemnation ruling for its downfall. that policy has been cited as some of the big reasons warned buffett's berkshire hathaway energy and other put to -- another potential pg&e buyers are not making bids for the company. let's take a look at the equity in the bond price action here inside my terminal. in blue, the equity market on the left now down to seven dollars a share or so. bond prices acting differently. we are rising. we want to see how that ends up settling. our analyst are saying this inverse condemnation ruling, which was expected, this does remain the key hurdle for this company exiting bankruptcy. romaine: taylor, this puts pressure on pg&e to do more about preventing fires in the future. what do we know about the way they have been shutting off power in california over last few weeks? taylor: there was a lot of controversy about them shutting down power in anticipation of they quite and a lot of buyers and hoping that would prevent
some of the outbreak. people in san francisco had mixed out -- had mixed reactions, but they are defending their stance, saying it likely prevented 190 instances since late october where there could have been hazards. they are defending that decision this morning. guy: taylor, thanks very much, indeed. taylor riggs on pg&e good coming up, our global battle of the charts. that is next. this is bloomberg. ♪
suggested conservatives will win -- if that happens it is european shares set to gain more because of a brexit deal that u.k. shares. that is because the pound is a major driving force in u.k. equities relative performance. eurohite line is the stopped relative to the -- from 2013 relative to the referendum in 2016, the lines broadly tracked each other. post referendum, the pound took a plunge and so did european equities relative performance u.k. shares. that is because the export heavy ftse 100 got a boost from a weaker pound. it is impossible to say what will happen with brexit. the quick turn out of ing is one of the strategist predicting the pound will appreciate week against the euro in the wake of a brexit deal. my chart suggests that if that does happen european shares could be an indirect beneficiary. you can check out my chart on gtv .
romaine: thanks. the -- i aming at looking at the energy world and the debt world. the white line is high-yield returns for the energy sector. the blue line is crude futures. what i am watching is how correlated they have been for the majority of the year. nationally it makes sense as oil drops. you will see drops in those returns as you see in may and again in august off of those trade tensions. what i want to break your attention is what has been going on in the last few months. you see the diversions, which is strange, because as food has the pickup, the debt seems not to be responding, which is i what i want to highlight in the chart, just cap distressed the energy actor is, telling us we need higher sustained oil price to bring life back into those bonds. you can take a look at my chart and others like it on gtv . romaine: two great charts, two
great competitors. we will give it to you on this --nksgiving edition to >> where is my prize? guy: tough choice. u.s. equities closing. the close is coming up next. charles o'shea will be joining the program to discuss what has been happening with this black friday and what it means for the consumer. european markets finishing big. the london market a little softer, but u.s. equity softer. it is a light volume session. from romaine and me, this was bloomberg. ♪
several people wounded. metropolitan police said the attack has been declared an open quote terrorist incident." a police representative described how the situation unfolded good authorities say the suspect -- how the situation unfolded. authorities say the suspect to died was wearing a vest. boris johnson is calling the situation appalling and saying he's being kept updated. more on the story coming up. after returning to his office after the bridge incident, or as johnson got back to other business. he is promising tougher rules on foreign takeovers as well as state aid to help british companies in his election base. warnsnservative leader voters against complacency, saying he still needs their vote and says johnson's -- and says jeremy corbyn could still form a coalition government. the calls come despite paul's showing johnson with a clear lead over labor. while shoppers lined up