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tv   Bloomberg Markets  Bloomberg  January 20, 2016 11:00am-12:01pm EST

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london. we are hitting session lows here in the u.s.. oil below $27 a barrel. what is going on in europe? mark: we are hitting session lows. the rout continues. the lowest close in over year. the european close starts right now. ♪ betty: we are going to take you from new york to london and the next hour. what is going on? mark: we are at the lowest level since october 2014. this is the biggest daily plunge since august 24 last year. we know what dominated the markets in august. that is when china devalue to its currency. today isoving story of
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the ftse 100. it is down by 3.9%. it is not the biggest decline. italy down by 5.2%. france is down by 4%. what is substantial and significant is that the ftse 100 has entered the bear market. it declines from april through over 20%. it is the usual suspects that a falling could -- that are falling could find court down by 8%. anglo american down by a percent as well. the bloomberg commodity index is at its lowest level since 1991. one great technical step for you is that the stock 600 has fallen below its 200 week moving average. for traders, that is a big bearish signal -- this is a day of red. a year of red. betty: a day of reckoning perhaps as well.
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u.s., as we are watching, stocks are hitting the session lows. big tex companies are leaving some of these declines. in the meantime, i know that back in the u k, you had some employment data and economic numbers. mark: the numbers were strong. we had unemployment falling to 5.1%, the lowest in a decade. pay bonuses rose 1.9% from the three months from november, above expectations of 1.8% to pay growth is slowing but not as much as forecast. real pay is stripping down inflation. that has been supporting domestic demand. the jobs market essentially is continuing to strengthen, but do not expect the rate hike anytime soon. betty: not a lot of weight growth. mark, back here in the u.s., we are seeing red across the screens as well.
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ramy has more the markets desk. at theet's take a look numbers could the s&p 500 is down by nearly 3%. the dow is down 2.7%. the nasdaq is the biggest more than 3%. couple of superlatives i want to talk to you about -- all 30 stocks are now down and in the red. the order of loss of more than 400 points. it turns that anything on the order of more than 300 points, we have hit that for the fourth time this year. i want to go into i bloomberg terminal and show you that it's not just the u.s. that is getting hit. it is around the world. looking at this, the msci world index -- we are now in a bear market, ladies and gemma. gentleman. we are 355 points on the msci downon may 2015 to now
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over 20%. all of this or much of it has to do with what is happening with crude. let's take a look at see what we are at. we are at session lows down by more than 5%, by 5.25%. this is a low that we have not 2003.ince may 7, we are now several months back on top of that. looking ahead to thursday, we are talking about expected u.s. inventory that might show a continued global glut. i want to show the s&p energy sector index. lows, down session 4.4%. this involves equities like the likes of energy down 11% and console also down 10%. betty: the worst performer in the s&p. a flight to safety is going on. ramy: we are talking about currencies and gold and bonds.
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let us go over to currencies first. the japanese yen right now is actually strengthening a little 16, but gold 1 futures are up 1.2%. the 10 year yield, look at this. it's down 10 basis points here below the 2% mark to 1.96%. amazing superlatives that we are talking about. betty: thank you at the markets desk could let'.. let's continue this big story about selloffs gripping the markets. turmoil returning to the global markets as oil plunges. as mark mentions, european stocks at the lowest level in 13 months. oil is once again the colber cu. mark: oil continuing its downward dissent. we have the ftse 100 in a bear
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market today. global stocks in a bear market. simon french is the chief economist here to try to make sense of it all. does it at all reflect this market turmoil and or could it tip economies over? simon: it's the latter. when you look at the labor market in the u.s., the macro data has completely to topple. you have provided the explanation for the august turmoil. the december turmoil is around the uncertainty of the fed rate rise. this is difference. it is macro conditions that would of driven equities to this point. ifh more possible the commodity selloff has reached its second wave where countries that have massive budget deficits have to get rid of assets they have built up over the last two years.
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they are starting to dispose of that and that is leading to panic selling. mark: how does this all affect central-bank actions? i'm talking the bank of england .nd the fed and ecb and the boj how does that affect the thinking of 2016 if it continues? simon: the first is mario draghi with the ecb. the big problem is that five-year points is plummeting. what source does he have left? you find two of the three bullets back last year. what has he got to come back with? i think we have been asking too much throughout the cycle of central banks. governments have to start. mark: we have some breaking news on barclays. barclays says their cutting investment banking jobs in new york and london. many of these foreign banks in the u.s. have been struggling in competition with regulatory
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.urdles, the environments barclays cutting investment banking jobs in new york but also in london. that is all we have right now. at the same time, we have another headline here. toclays is also said consider cutting their bonus pool by at least 10% and that the job cuts are part of a wider restructuring at barclays. this tough macro environment is bad news for all global banks. i want to toss a question out to simon. that central-bank theme, do you think that this means the fed should pay attention to what is going on in this macro environment and that they should perhaps delay any further rate increases? has for rated rises in 2016. that's not going to happen. they also have a. plot going into 2018. there is no way the u.s. economy
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in the current environment can le.ails of your -- detopp services very strong and the labor market is strong, but there's no compelling case. what janet yellen will be talking about next week's the risks are asymmetric. there is a lot of risks. there is near no risk of maintaining the status quo and sitting tight. betty: what would that do if you hear something like that? would that sparked a buying opportunity there? simon: [laughter] over the cycle, it certainly has been. we have had central bankers driving equities higher just based on their narrative. the question is whether that will be enough. in the case of mario draghi, he says he will do whatever it takes. what point does the accident narrative start to decouple?
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there is the selling of assets to bridge those budget deficits and a lot of emerging markets that are commodity revenue dependent. uplso think that will throw some buying opportunities at this point in the cycle. for a great investor, that's a good chance. mark: when we talk about the narrative with the declining oil price in this leg of the style -- cycle, it is been doom and gloom. investment said it could damage companies. but to quote him, he said the reality is 4 billion human beings are going to have cheaper energy. why aren't we focusing more on that angle? simon: because the impact in the short run, it's very much a hockey curve. you can see the immediate impact in corporate and states where effectively as revenue leaving the table on their budgets. the carpets revising earnings down. households need to stop u.k. thatthat in the
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gasoline will be cheaper for longer. they will go out and spend that dividend. retail sales in the u.s. and the u.k. start to move up the value chain. i think that's going to be there for longer, but now we have the nervousness. that will start to dampen consumer sentiment could i think the markets are calling it right, but we have to allow that to come to the rescue market. mark: thanks for sorting everything out for us. good to see you. do stay tuned to bloomberg's coverage of that big ecb decision. it starts tomorrow at 7:45 a.m. new york time and 12:45 p.m. here in london. stay tuned to bloomberg television. we have a market selloff. stay with us. ♪
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mark: welcome back to "bloomberg markets." this is the european close. i am mark barton. betty: i'm betty liu and stocks are down all around the world. let's get back to this swiss alps were global leaders are tackling this pressing issue and the pressing challenges facing the world in the euro ahead. david westin is standing by with the ceo of jpmorgan asset management. david: thanks for joining us. it's good to have you here in the cold swiss alps. it has been a tumultuous day again in the markets. you are managing a lot of assets for a lot of people. what are you hearing from them and what are you telling them? mary: it has been so fast with this correction that we are in the middle of. ways, that is more helpful and more cathartic than
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if it were slow are painful. -- and painful. that is alone people to hope that it's just an asset price recovery and not something more to do with the fundamentals of the economy. that can actually be quite helpful with all the cash that is on the sidelines in many portfolios. as you begin to find better entry levels, perhaps we can get back to more normal asset allocation. what you do not hear our clients panicking. you do have money coming out, not a lot of money jumping in at any particular point in time. but a lot of clients asking, let's start looking at this and what about the conversations we were having before where i was hesitant? i think it's just going to depend on what happens here with how prolonged this is and whether or not this is going to spill over into ceo and investor psyche. if it does, that can and of itself be a pretty downward
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negative spiral. that is what we are hoping to avoid. david: let's follow-up on that question of looking back on things we have talked about. you have rebalance portfolios all the time. that you seeming that is causing you to rethink that shift between asset classes or geographically? mary: sure. every day we think about it. that is what clients feel comfortable with and maybe that is why the normal panic calls that you would expect to get in this market environment are not happening as much. you have seen a real shift in investors going from particular individual stock selection or even asset class selection to multi-asset solutions. ere, let me give you my whole portfolio and you run the entire asset allocation. you decide on one to make the tax flows in and out. that is a great deal of faith that they can put in someone very smart in the asset allocators of the world.
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it is our duty to make those moves. when we see that some of these are selling off, some of it may not be done. we may want to start legging and. others may have the patience to wait. they rely on us to have the wisdom to know the difference between the two of those issues. david: how much of this is china? how much is oil and how much is something else? mary: there's a lot of conversation here about china, oil, is this going to cost the next global recession? those two things alone, unless you have a very strange event, will not cause a global recession. that's not it. this is years of quantitative easing at work and being very successful. level, quantitative easing allowed people to have deflated asset prices, which allowed them to have money to put back into the markets. they could spend and they could invest. at some point, that disconnected , but the stock market valuations state the same. we're going to have to find that level where those to me.
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markets will figure that out. the faster they figure out, the better. david: ultimately, you want to have growth in demand. the shortest we have right now is demand. there is a limit to how much the central banks can do with that. what can come into start stimulating that demand? mary: j.p. morgan chase, the retail side of the bank is about half of the households in united states. we have one of the most successful and largest credit card businesses. we see an enormous amount of data that we can siphon through and figure out what is really happening to th. the u.s. consumer continues to be strong. not as strong as we would like on wage growth and coming back to the job market, but very strong on debt levels for . this double of the 20% that we have seen in 2000. they have been the lowest levels that we have seen in 35 years. we have consumer confidence and very high readings.
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they are much higher than average. you have high zinc prices continuing to rise. -- housing prices continued to rise and asset values that have risen quite nicely since the crisis, about 59% in bastad values and household debt. even if you look back to pre-crisis, it is 29% above those levels. you have got a lot of cushion here for people to think about where markets can take you, think about corrections, and think about new entry points. david: one way to look at it is cushion and sitting on the sidelines. a lot of the benefit that they've got out of low gas prices actually went into savings. is the u.s. consumer the ultimate hope right now as you look around the global economy? mary: it is the ultimate hope, but our data shows that 80% of the savings that should have been accrued from the oil price decrease, which is now 50% of the levels that would, has gone back into spending. there are spending in on restaurants and other things. that is a good sign.
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you can continue to expect that. but the u.s. consumer needs is a little more confidence that there is not something they are missing. you have the 10 year treasury rate hit 10% figure back and you get the general public to say, is the market telling you something i don't know? what am i supposed to be worried about? the same thing is happening when the fed is questioning whether they should continue to raise rates. they are to do the right thing by looking at data. they are very data dependent and trying to figure out how to get back to normal interest rates -- not tightening but normalizing interest rates. in doing that, whenever they pause, they give the market's as to what it is that they see that might give them some concern in the future. david: is there law diminishing returns with quantitative easing and the easing of monetary policy if we reach that point? mary: there's definitely diminishing returns on the psychological effects. you get to a point in which you
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then say, maybe i should not keep spending all this money that i have and i should start saving a little bit more. that is what we saw. we saw that basic break happen and about may 2012 and it happened to coincide with the treasury hitting 1.5%. david: talk about your business. you are in the hotspot it feels like right now. asset wealth management is a hotspot as regulatory and other factors have made inks pullback. after announcement announcement of competitors saying we're going to double down and asset management. how much more competitive is that business becoming? mary: basset management businesses always competitive. we have competitors large and small all over the world. one of the things that people forget is that asset management is a fiduciary business. it takes years and years of work and earning the trust of your clients and figuring out how different families have done different things and bringing bad advice to their current generations into future generations. to think that you can just hire
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tons of people and give advice necessary to have wealth ,ustainability over centuries we have clients that celebrate 100 year anniversaries with us, that is something not made overnight. we fight for the position we have every day in our clients continue to rely on us to lead them, especially during times like this. that is why we have not seen as much panic. people have been through a lot with us and we continue to be a port in the storm and help them in good times and bad. this is when they need the courage and conviction of people have been in the markets for decades. david: when you talk about personal relationships with the bankers and people out there, i think about robot advisers. and yet some of your big competitors are moving into that space. are you in that space? rowboat advisory is very important. it's very important to give people advice however they can get it. if they cannot have a face-to-face conversation or do not want a face-to-face conversation or not going to do
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anything about their wealth, please let's get some questions asked and get you got it to a portfolio that may be helpful than sitting in cash, which is basically a symbol of shorting the markets, which you do not want to do for a long time. robot advisory and our business will not help you through times syria'ss i don't think going to hold her hand and keep you invested in the markets today. i do not think syria is going to give you the conviction to go in and get all the market sentiment when you need to be contrarian in the marketplace. that is what smart advancement -- investment advisors do and that is why the come to jpmorgan. david: last question -- etf's. there's been such a shift and there's so much money going in there. that's an alternative to having somebody actively manage your portfolio. will that continue to grow? mary: there's no limit to it. we have done a lot of portfolios and it's not the only way to get access to the markets.
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i would just say that at times like this when you have wholesale selling, you have indiscriminate selling of good stocks with the bad stocks. and then you by the same amount of those good stocks and bad stocks. what you really want is more those good stocks. now more than ever is the time where you really need to pick through and find those great things that have now gone on and maybe want some now, maybe you want some later, but you definitely want to be very particular about the things that you want and you don't want. this is why i think active management is so important and portions of people's portfolios. david: thank you so much for joining us. we are now going to go back to betty liu in new york. betty: thank you so much, david erdos.speaking with mary a lot more ahead of our coverage of the 2016 world economic forum. that continues tomorrow. we will speak with the biggest names influencing global markets, including john rice,
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walgreens booth alliance ceo, the reserve bank of india governor, and peterson institute president adam pozen. also, nasdaq ceo, citigroup ceo, and morgan stanley ceo and chairman james gorman. chairmancola ceo and is also on board tomorrow in davos. back here, we have settled at the lows of the sessions. oil continues to slide. up this chartade for you. check out the price of crude oil. this is the crude price going back 12 months. right now, we have fallen below $27 a barrel. crude is down by 5.5% today. sincet the lowest level 2003. the full year to date for crude -- is now -- wait for it
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27%. a new psychological low, down below $27 a barrel. betty: incredible. that is having a big impact on the currency markets. let's get back to the world of currencies. hitting a newble record low, plunging against the dollar as the slumping oil prices hinders russia's recovery. the currency is reaching a threshold last seen in the crisis of december 2014 for joining us is the emerging markets reporter in moscow. tell us about this renewed panic over the ruble. >> it has been a really interesting day. we have been waiting for the ruble to hit a record low this week. it has finally happened today. oil, as you mentioned, is trading below $28 a barrel. most russian officials did not expect that to happen and many traders did not either.
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it is interesting compared to december 2014 when the ruble was last trading at these record low levels. the russian market was facing a real financial crisis. there were sanctions and falling oil. right now, we do not see such an extent and level of panic as we have seen in 2014. the is due to the fact that economy is doing slightly better than it was back then. the current accounts surplus has come out for 2015 -- toy 16 and analysts -- for 2015 and analysts are accounted for 2016. we are converting rubles into dollars and euros. they do not have as many savings left. they can do that anymore. traders are saying that there is not such a level of panic this time around. the ruble is simply moving with oil. betty: so does that mean then
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that we may not see as much intervention as we did back then either? ksenia: yes, that's also really interesting. we spoke to the bank of russia governor today exclusively and she said that she is not concerned. the ruble is reaching its fundamental levels relative to oil. the central bank will only thervene when they see economy and the banking sector facing a real financial crisis. they do not think we are there yet. she was very encouraging and also, the finance ministry said last week that they are not concerned about current ruble levels. it's also important to understand that russia receives about half of its budget revenue from oil and natural gas sales. the weaker the ruble, the better
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for those exports because then russia is able to fill its budget holes. betty: thank you so much. that's bloomberg news reporting from moscow for us on the record low of the ruble. mark, european markets are close to finishing the trading session . where are we here? mark: pretty close to the lows of the day, which means we are looking to finish the biggest of lastsince august 24 are good it looks like we are going to finish the lowest in over 12 months for the stoxx 600. this shows you the industry groups that are falling. every single industry group fell on the stoxx 600 today. all 19 led by the usual suspects. oil and gas down by 5.3%. cannot forget the stoxx 600 oneady entered a bear market
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friday. the msci all country world index entered a bear market today. the stoxx 600 -- only 10 stocks rising today. basic resource companies have sunk by 21%. they fell 35% last year. in the last 13 or so months, they have lost half their value. oil stocks falling another 18% in 2016. we mentioned their markets, while we cannot forget about the biggest it was not the declining benchmark across the european arena today, but look at italy today down by 4.8%. by 4.3%.s down the ftse 100 is a 3.6 decline. it sent it into a bear market. the highs from last april 2 today are 20%. it is usual suspects that have left that decline. the ftse 100 is full of oil companies.
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it is full of mining stocks as well. glencore down by 10%. anglo american down by a further 7.8%. down as it falls to the lowest level since 1991. another astonishing day in an astonishing month. thing falling as the u.k. unemployment rate, falling to a decade low. does this change the view at all of when we might see a rate hike in the u.k.? not, but what it does do is tell you about a tightening labor market. the unemployment rate has fallen to a decade low of 5.1%. pay excluding bonuses rose by 1.9%. pay growth is slow, but strip out inflation, which is close to zero, consumers have a lot of spending power. this is boosting the domestic economy. the jobs market continues to strengthen. the key is productivity.
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, canbor shortages emerge companies squeeze more out of their workers or are they going to have to hire more workers, which could boost inflationary pressures? as carney said yesterday, now is not yet the time to raise interest rates. it is good data today on the u.k. jobs market. betty: it is indeed could get a loo. let's get a look at how u.s. markets are trading. we are at the lows of the session, but we have come off slightly. abigail doolittle has more light on the nasdaq where the nasdaq is taking the biggest brunt of the selling. at nasdaq big selloff and netflix reported and blew away subscriber numbers. off context and selling, it is down sharply, continuing its more than 20% decline from early december as
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investors continue to sell last year's big winners. that has taken netflix bearish leak through its 200 day moving average, something that mesa just that selling is likely to continue. take a look at another stock down sharply. apple is down after ubs came down saying the december quarter is likely to be worse than expected. raymond james cut estimates for the second time in two months. all this is part of the iphone concerns that have been behind the 20% decline since early november. apple is the biggest member waiting in the composite index and helps determine the direction of the broader markets. a big important question that is whether or not apple can hold its intraday low from last august or not? it could be an important tell for what is ahead for the nasdaq overall. betty: thank you, abigail new doolittle from nasdaq . vonnie quinn has more from our
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news desk. vonnie: a gunman stormed a pakistani university campus and opened fire. 20 victims were killed. the victims included students and teachers. the military says for attackers were also killed. revise memories from a school attack were more than 100 students died in navtech. the u.s. and russia are looking for a breakthrough today on an upcoming syria peace talks. secretary of state john kerry and the russian foreign minister met in zurich. they are trying to agree on which syrian opposition groups should be labeled as terrorists and barred from peace talks next week. the senate will debate a bill that will block syrian refugees from the u.s. until security measures are taken. the house already passed this after paris attacks. the influx of refugees will give an immediate boost to europe's economy. according to a report out today,
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germany says its profits could rise 3/10 of a percent next year. the germans have taken in around one million refugees. for global new study for our news play for hours today from 2400 journalists and 150 news bureaus around the world. i am vonnie quinn. gave axel weber keen insight on his forecast of output out of the middle east. we are not getting there in 2016 for central banks or in 2017 because basically you have a continued slide in oil prices. even if you look at core inflation, there is no closing of output gaps. there is no strong demand. everything we are seeing for example with the industrial revolution is adding to global supply capacities. it basically means that prices will continue to go up. many of the products that you now by for example and the
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services you get on applications are for free. many prices do not really move fast. on the other side, the global industrial production is changing because the force industrial revolution's conductivity improving massively, authorization, everyone on a single platform. it will mean that there is a five location on what will benefit from the cost. the ritual benefit a lot more than the poor. industrial countries will benefit a lot more than emerging markets. you see a rebound and return of the growth in the industrial world, but it will be one where savings will still be abundant --ause rich have much tire higher savings rates. there'll be lowflation pressures for your to come. francine: when will oil find a bottom? how important is it that it finds the floor. ? ] if it gets too low, it could spike up. oil, i trywe look at
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to look at from the metals. i'm not in the game of looking into a glass ball and tell you when it starts. >> so far, it's been pretty clear we should say t. axel: if you look at who is making revenue on oil, it is basically saudi arabia and middle east countries like to wait in particular. now we have the lifting of sections in iraq. the rest of the country's used to have profitable oil production at $50. we are seeing a price that is pretty low. the lifting of iran sanctions will continue to add supply. i do not see a bottoming out of oil prices anytime soon. i think there is a potential as some of these conflicts of the middle east will get sorted out. francine: do you think we could touch $10 a barrel? axel: i talked to the former ceo of shell and he said he cannot exclude anything coulg. he thinks trading around current
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prices because there are no other supplies that could be added at the stage. heard on exchange rates and oil that the best forecast is that it will stabilize current levels. [laughter] >> eventually that will be true. axel: where we are now, i do not think we will a lot -- see a lot of additional supply that will drive it further down. the past is seen that the nature of countries including saudi arabia did not want to change their expenditure profile. continuing to pump oil in order not to lose market share was a big motive for them to remain. that has not gone away. i do not see a lot of additional supply hitting prices further. hans nichols joins us now. i listen to it all, well done. 50 minutes of pure tv goal. you spent a lot of time on china. is doublingt u.s.
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its headcount and china tells us everything we need to know about axel weber's long-term view on china right now. in ithe clearly believes and he is putting people there as a growth market. that does not mean that his views on it are entirely antiseptic and he's looking at it entirely clear. he is quite optimistic that china eventually will return to they want to be there on the investment banking side in part because they can get to know a lot of these high net worth individuals and really focus on wealth management, which is clearly ubs's future. one of the things that we talked about is where the dollar is going. it looks like out weber is diverging from ben bernanke . ben bernanke talking about the dollar strength may be petering out. mr. axel weber thinks that we could be happening euro parity yet again. here's my advice. we always have practical advice
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-- low oil prices, low dollar markets, time for you to buy a ford pickup truck and drive around the countryside. it is clearly the smart play. that is what everyone wishes they were talking about. mark: i will take that advice home. i will tell you what my other half things. you also quizzed him on the ecb. of course, he has a previous form when it comes to the ecb. it meets tomorrow. he is not confident the ecb will meet its goal this year or next year. he is also not thinking the ecb will have to do too much more on the stimulus front coming is he? more, but he much thinks they will do a little bit on lowering that negative deposit rate and bring it down further into negative territory . it must be said that axel weber 's crystal ball is pretty good. people make outrageous
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predictions about the price of oil, but they do not come to pass. with axel weber, they have come to pass. ecb wouldthat the come nowhere near their 2% goal of price stability. in 2016 anding that 2017 they will not reach it. it's not that although a call because it does not differ that much from the ecb's own internal forecast. mark: we look forward to that tomorrow. hans nichols, two men to that coverage. it starts tomorrow at 7:45 a.m. new york time in 12:45 p.m. in london. you can tune in on bloomberg television, radio, and bloomberg.com. betty: i know you will be ready for that t tomorrow. coming up, we stay in the european banking world. jobs and theirg bonus pool. more details on that news after
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the break. ♪
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mark: welcome back to "bloomberg markets." this is the news of the last few minutes. being confirmed. the ftse 100 has entered at bear market, falling by over 20% from its one-year high in april last year. the ftse 100 following the stoxx 600 on friday and the msci all country world index on entering a bear market. betty.r of 3, betty: japan entered a bear market as well. time now for the bloomberg business flash. looking at the biggest business stories outside of the market.
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medicine is working with advisors and has reached out to potential buyers. the company's revenue was hurt last year when it's blood patent protection. shares of medicines arising on the news. audi is trying to move past the diesel and emissions scandal of its parent volkswagen. audi says that it will start building its first all electric suv. a plant in brussels will make both the vehicle in the batter. that positions it to make power systems for other vw cars as well. barclays is cutting jobs at the investment bank, affecting staff in new york, london, and asia. that is according to a person familiar with the matter. no word yet on how many people will be affected. this comes as the ceo tries to shrink the securities unit further. meanwhile, the bonus pool for the investment bank may be cut by at least 10% from the prior year. that is the latest bloomberg business flash. mark, this is another sign.
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news is more trouble for the european banks and mark noble banks in general. mark: stephen morris joins us. idea -- by the way thanks for joining us. do we have any idea how money job cuts there will be at the ?nvestment bank gekko stephen stephen: this will be about their investment banks and ceo in a hong kong and singapore. there will be cuts as the bank is trying to prioritize those two. mark: will the bonus pool be affected? stephen: down at least 10%. they may not fall as follows last year where it fell by almost a quarter, but it certainly looking like it will be a painful year for the investment banking stuff. betty: could this have reverberations to the other bank? stephen: certainly.
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barclays maintains one of the largest investment banks in arope and is a bit of bellwether. the fact that it is choosing to shrink back all that operations to where it is strongest in the u k in u.s. is really an end to its ambitions of being a true global banking player. betty: what's the future for barclays after this restructuring? what's it going to look like in five years? stephen: barclays's want to be a lot smaller as a bank. it will call itself a transatlantic bank these days. it also has a big decision to make about the banks it owns in africa. it owns a majority of the bank out there. we her all this discussion about the future of this. mark: when are we going to hear more? we have a big update in the next month or so. is that when all the plants will be revealed by the new chief executive? stephen: they have their annual results in march.
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there will be a strategic update from the new ceo. it will be the first that we hear from jeff staley. he is the former jpmorgan banker trying to stand his vision on the banks. we will hear more about what barclays will look like in 2020 and what his vision for this institution is. mark: extra joining us today. andick peek at the ftse 100 barclays is a constituent member of the ftse 100. it did finish in a bear market . the msci on country world index also. the ftse 100 down by 20% from last april highs. betty: we are going to take a break though from watching these markets. we are going to look at super luxury cars in the next segment. a new american-made supercar is coming. who makes it and if it has got a chance with competing with european mainstays like aston martin and porsche. ♪
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mark: in today's pursuit, the americans are coming. it is called the force one. it is geared towards american men. it debuted at last week's north american auto show in detroit. ofis got a price tag $268,000. it's a design that some say it is quite similar to a certain aston martin model. let's get to new york now. hannah elliott, should the carmakers ber the quivering in their boots? hannah: i do not know if quivering is quite the right word. this is something to look at and to know. it is certainly competitive on
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paper i'm not sure this is going to take any market share from q neither. mark: who is the buyer of this car? it says that it's geared to american men. why is that ? henry: if you ask pfister, they say there is no option for an american sports car. the closest thing is a model s, but it's not like this. pfister would say the american male that wants to buy m&a can --e car, this car is a made and american-made car, made in detroit, will want this force one. betty: what are the strong points? hannah: the engine is of the 10, a very powerful engine. it will go to 60 miles per hour in about three seconds, which is very competitive with other supercars on the market today. betty: tell us about the competition. hannah: you could start with
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even the california, but this is an entry-level ferrari. i think you would consider this against the force one. aston martin is an interesting one because henry who designed --s car come a designed designed this car, too. there are strong similarities in the look, but not in the dry spell. -- the drive style. betty: do they really have a chance though of competing with porsche and ferrari and aston martin? hannah: i do not think they're going to take away market share. they said they do not have to sell that many cars to break even. they know they're not going to make millions and millions of dollars on this car, but if we sell 100 or so in the first year, it will pretty much make even. they're using a lot of technology that the car company
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had used previously. they do not have a lot of extra costs. they are making this in the factory that is already standing. they can pretty much break even and not have to sell so many of them. mark: i gather he is a busy man right now because he is venturing into electric cars and yachts and all sorts of things. hannah: he is quite prolific. i asked him why? he's already a celebrity designer and already designed some of the most people cars. why are you doing this now? why are you doing these electric endeavors? his answers just basically because i can. he has the time and the inclination. he has the talent. he is a very busy man. this is one of his many ventures. betty: just on another note on cars -- there was a new story out that jerry seinfeld is selling some of his coveted porsches. we know he's a big luxury car collector, but why stop them now? hannah: seinfeld is typically
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very cagey with how many cars he owns and which ones he owns. has aes porsche and he youtube show, comedian in cars getting coffee. the question is why right now? we don't really know. it seems like a great strategy on his part to have the car show run for a couple of seasons and now he begins to slowly start selling off some of his collection because of show creates the hype for the cars and he sells them. it is really smart on his part. these cars are worth well over a million dollars. they will be debuted in scottsdale at the scottsdale auctions. it will go on sale with gooding later this year. betty: hannah elliott, thank you so much. can read much more about luxury sports cars at bloomberg pursuits, your destination for the finer things in life including dining, property, and cars. go onk check before we how stocks are trading.
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we are down to the lows of the session. 455 pointsoff by now. we are basically at our levels from 2014 as crude oil continues to drop. mark: i want to show you my chart of the day. it was the day of the bear market. we had the msci all country rolled index, the japan nikkei and check out the ftse 100 index. it's the benchmark here in the u k. from the highs in april, you can see it earlier last year. we are come all the way down, down by 20%, led by minors and oil companies. that is it for "bloomberg markets." the route of 2016 continues. we will see you tomorrow. ♪
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>> it is noon in new york and 1:00 a.m. an in hong kong. >> welcome to bloomberg markets.
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scarlet: good afternoon. alix: here's what we're watching . another selloff in global stocks. the dow down more than 400 points to read the dow and s&p recording their biggest drop in 4.5 months. scarlet: legal bills take a bite out of goldman sachs' bottom line. profits drop 55%. alix: crude oil falling below $27 a barrel, touching lowest levels since 2003. scarlet: first we need to get a check of where the markets stand and for that we had over two ramy inocencio. ramy: right now we are hitting session lows. take a lat

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