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tv   Countdown  Bloomberg  February 16, 2016 1:00am-2:31am EST

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with the biggest two-day gains in years. merkel prepares to report earnings. and france, david cameron is not able to persuade the french president, who pushes back on some of the reforms.
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>> welcome to counts down. >> let's talk about what is happening. you see the balance in the price and people tell bloomberg that has some a little excited. >> this is what we have and this is the brent rally. suggests that they would not be surprised to have spikes at the highest level. -- bear in mind they have been talking and they have been here before. manage to get that.
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it appreciates the oil price. there is a little bit of the radar. the koreans not having done anything. market the low and the with the moving. it is japanese currency you can see and there is the unwinding of that case. keep an eye on gold. it is that. this is the biggest time maker and the net profit has come and it was ahead.
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and there was the mining industry. and it builds more vehicles. +++ costs that go to making it. >> it is 2.7, versus a year ago at 2.5. the benchmark was for an estimate of about 3%. >> it tells you a lot about the global economy.
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>> good morning. >> it is above $34 a barrel. they say they will cooperate to increase output. discussed thehey era wasets and the .ueled by abenomics there has been a positive return for each of the 10 years. the asset management says they have stabilize and they can plow back in two corporate debt. magnetismys that the of the yields will draw it back. departure with the u.k. trade. news came after they called on working towards the deal.
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>> this is a critical moment and time they start listening to each other and it is natural. time andoser to crunch andrisk of breakup is real it is very fragile. handled with care, the broken cannot be mended. threelor swift got grammys, including album of the year, edging out kendrick lamar. the 26-year-old also got pop vocal album and has transformed into one of the most powerful stars in the world.
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>> thank you very much. we will have more on the numbers. number isttom line coming shy of expectation. and the operating profit, for example, it increased in 2016. >> let's talk about the markets and the extension of the rally. there is a crude oil story. we will look at equities in this part of the world. and it served -- surged to a
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record, suggesting more money and effort. it is something investors wanted to see. is optimism with china it is a decentnd performance. seeing developers rising among the leaders. check out the bank of east asia. they should start an auction areess with sales and they watching. it is nice. of korea.e bank
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you are seeing modest gains. and the fourth quarter earnings. a big pop for that stock. sending it back to you in london. we ensure the monetary policy reaching the economy if it is threatened. we are anticipating a andning of the stimulus here is a recap of what they had to say. >> we have had concerns about the prospects of the global economy and the activity and
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trade data have been weaker than expected. turbulence in financial markets has intensified and commodity prices declined. turmoil, we will analyze the state of the transmission of our monetary impulses and the banks. either goes down, we will not hesitate to act. amplified by the perception that the banks may have to do more to adjust this miss models and lower the interest rate environment with the regulatory framework that was put in place since the crisis. economist at chief
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portfolio solutions. good morning, price and early. what are your expectations around the stimulus. they failed to deliver and he is doing so with that i towards the march meeting. he is raising the expectations. sure at this point in time. let's see. need aest said that we coordinated response and massive infrastructure spending. is what he watches or tells us all to watch. how do you break that?
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recognizeue is to that quantitative easing and negative deposit rates are on the banks and they are part of the problem these days. and both of the policies are meant for extreme stress. the global and european economy are not that much in the way of weakness. the central bankers should be reinforcing the positive taking place and they are trying to restore confidence with monetary policy. showshave a chart that euro area debt yielding a lower level and the ecb cannot go down
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and buy that. and it is easing. >> it is improving with the exiting last year. in contrast to other parts of the world, you saw managing indices and i think that central bankers should be reassuring the markets about the stories and europe and north america to reinforce the sense. >> this is the economic you can see that
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it is not exactly inspiring a great deal on the backend with functions. and ite is a great deal began to unfold in the middle and proceeded ever since. there are surprises in production and trade with invices and household income the surprises are not negative. when you think about these, they are in services and in the final demands of the household sector. a quick story and we talk about the negative yield
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curves. are feeling so gloomy that they are looking out at the recessions and it is not rule will note apply anymore. do you think the yield curve tells us anything? if you take the short end, it is anchored at zero and you go with that and by that with the defunct model. we used to call this the new normal and i suppose it is the new abnormal and it says that we operate with the curve when the front end is negative.
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second, it seems that the effects of quantitative easing and the policy rates with the yields are the point of these sorts of policies and there is less information content in the business cycle. >> thank you. stay with us a little longer. >> that is at 9:30 and then we get germany. addressesameron leaders in brussels about the terms he wants. >> we will hear from the person at the federal reserve bank. >> absolutely. they are thinking about the oil price. russia and saudi arabia are said theold talks amid
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speculation of what that could deliver. we will have that next.
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>> welcome back. you are watching countdown. let's get the latest. >> they have agreed to combine the mobile in the netherlands and it will create revenue synergies with integration costs. a cash payment has local valuations of the unit. copyhis is according to a with another notice. the american credit rating
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reduced debt and sell assets. and we will be speaking right here in bloomberg. star wars episode eight follows the force awakens. toro willof the el join the cast. slated toght is release in 2017. thank you. ubs utility cutting 1.25 and this comes this will ben and
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a positive year, in terms of the breaking. theme with the utility area. ministers are measuring the prospects that the biggest exporters are discussing cuts. on this.s are rising we do not know any details. right. is brokered and they will take place behind closed doors. also, a venezuelan will be there, fresh from tors of
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boostls and trying to prices with countries really suffering from these and venezuela. the top oil exports in there and there is always a possibility that one assumes it is going to be and we see prices go higher. this with a lot of meeting and it is likely with the deal. and there arealks heavyweights with the saturdays and the russians to the top to exporters and they hope that they could discuss things and
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things would go forward before things got up too much. sucker not want to be a sitting around the table and being the first one. they will only cut if everybody agrees to. even if they decide it is in their national interests, they cannot do so easily or quickly. some of the oilfield -14 celsius drop to in the winter and you have things that could cause damage if they are cut off with production and let's say they keep producing. where will they keep storing? there is finally an issue of trust. everyone will honor this and
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they are cutting and the russians are failing to do so. we should not get our hopes up too much. hathaway.et to larry he is with us. for the to your hopes global economy hinge on a higher oil prices? are you happy to see the benefits unfold? as the economist, i think the benefits are clear to see and the general story is that the transfer is a net positive and we have seen a lagging structure of production. it hurts things like trade asring and
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things are beginning to spend for december. in general, it is a positive. >> in terms of the volatility, it makes it harder. spiteis a little bit of a in oil that could deliver the installation. we need this for debt reduction, don't we? >> it reflects uncertainty around potential deals and a relatively small cap with production and demand with surpluses their. it could stabilize prices and push them higher with the world welcoming higher inflation
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everywhere and rather seeing it with prices and not just energy. >> it is a lovely way of balancing the difference between the demand with the supply side. what do they need to take out? we will look out and see rising production and it will be offset by declines in north it will get some of the drilling. >> stay with us and we will get china and other parts of the world a little later on in the program. >> up next, it has been more than seven years and we will one million.
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>> welcome to bloomberg with first word news. >> is above $34 a barrel among speculation that producers will reduce output. the saudi plans to meet with a russian counterpart about the oil markets. the era of easy gains in the japanese stock markets are over. the hedge fund posted a positive return and markets became more volatile.
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and waitingagement for a sign the situation has -- me and -- segmentaccording to the of research. is to reward the block. >> this is a critical moment and it is time that we listen to arguments more began to our own. and the position has hardened as we get closer to crunch time.
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the risk of breakup is severe and it is very fragile. it will not be -- >> the mission may ultimately case has been unpredictable all the way through and there are 239 on board with no further clues. shows that -- atening employees the research is carried out with losing money. 35% in people who are offered money if they hit the target. global news is powered by journalists in news bureaus
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around the world. >> thank you very much. we will go to the breaking news. let's get to the business. stated the earnings were higher and they say that the cost-cuttinground and they delivered more. iny have a new entrance thent years and they say talks started recently in that it has taken time to please all parties with the ongoing talks. we have our shows and you see
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the bodies and how the business with the demands. they say they net orders have come from asia and he goes on to talk about having had a very it has grown tremendously in asia and china. these are fairly popular comments coming through and they will drive wide to manned with comments coming through. >> let's get the update. we have more details. oil and theeen asia-pacific index in the light
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is picking up and you see brent start to jump and they are leaping to $34 and the asian stock market. it is the best rally since 2009 understandicymakers that it will help to meet the oil markets. will they cut the production? draghi helps that mario was talking about a commitment to support the economy and the governor was talking confidently about the economy and started to galvanize the mentality with the equity markets. and we havee spike hit over 2.5 trillion for the
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month of january. and we about 290 million are starting to see the backrate finance taking up and it drove of the liquidity. he knows a thing or two about these and he says that the andamentals remain positive you pick a bargain. ands look at the selloff with out what will happen gold and goldman sachs. yesterday, on presidents' day, there was a quote from a former president and franklin roosevelt said there was nothing to fear but fear itself.
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goldman sachs recommends shorting gold over the next three months and we will come all the way down here when it comes to gold prices. gold will be lower on the back of this. >> eight of the european biggest banks have paid billions and there are hundreds of billions in market value. roberson wrote about the banking nightmare and he is with us still. let's go to you. define the banking crisis, if one.ould and if this is it feels nerve-racking. >> last week felt like a banking crisis and you saw plunges in
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stock prices and you saw massive spikes in the credit default swaps and you saw fear in the market with a lot of irrational argue that i would was a short-term deal last week and credit suisse has come back a bit. inare seeing the next step the transformation of the industry and we were talking about that part of the transformation and the attack on the very capital that was created from nothing and it sheets.oost the balance
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you questioned the validity of some of these mechanisms. >> i agreed that the selloff seems to be excessive with the underlying earnings and you looked for the other potential areas of risk and it seems to be around the conversion of the bond holders and the common equity. in these scenarios, there is a bit of a self-fulfilling prophecy and something worth far less or may be worth less in total. from that perspective, the resolution may be feeling the perspective. crisis, weds in the have a new asset class that we did not have before and it adds a complicating layer, comparing
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this with the last. we are making sure you are comparing like for like and with equities. >> it was a flashpoint when it came out and suggested the possibility they may not make the coupon payments and it set off a short-term run. signpostsook at the of how we got to this, i look back to last may, when deutsche bank went up and they gave a vote of no-confidence at the core of it was the that. that is not just going to work. there is something more radical it has to be done.
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that is what the market said to the european banks at that time. and i think it fed into last and, they are like, you and it willa plan take years to execute the plan. so, you have the process going whend china slows down and the markets get turbulent, they throw fuel on the fire. >> this comes back to the ability with the lovely line in the bankst is from not unbundling. this goes back to what was said and everything doesn't work anymore. truesuspect that that is
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and diversified revenue streams are helpful. institutions that hold a better come up and offset some of the weakness with the investment banking. >> to what extent is this something that was crafted by the regulators and the perpetual crisis? of thee come out financial crisis and a number of businesses take this away and it is to capital intensive. it seems to be out of favor right now and we are dealing with changing regulations imposed on the market with the collapse. u.s. is instructive to the , with that regard and the banks were kicking and screaming about -- -frank and >> they got rid of toxic assets. >> it happened fast and
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dodd-frank started to impose the rules and regulations and they got back to business and they seem to be alive and well in the u.s. with record earnings. >> we will leave it there. tosays that he would love run wells fargo. >> thank you. thank you for joining us. >> we will talk about china and ceok to the chairman and about the business and the brands and if they get to stay.
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>> welcome back. you are watching countdown.
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>> thank you. vodafone and liberty global have agreed to set up a venture with businesses in the netherlands and the transaction will result in revenue synergies with vodafone making a cash payment to reflect different valuations of local units and the credit rating was cut to junk. ability to the reduce debt. speak tothe ceo will us. disney announced that filming eight.un on episode the force awakens was the fastest movie to take in $1 billion. benicia odell tauro and laura
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dunn will join the cast. avoiding one billion pounds in taxes by a controversial deal. transactions were revealed in public filings and they took advantage of generous credits. your bloomberg flash. >> thank you very much. this is the latest piece of data with the state of the economy. >> for more, we are joined by a chairman and ceo. larry is also with us. of course, it is great to see you. and it wasnversation about china last week and it
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disappointed some. what you are seeing is weakness. i see the macroeconomic environment under pressure and numbers are there to show it. the fundamentals are strong and you have an emerging middle class in china and the fundamentals are strong. in the short-term, there is pressure. >> the issue discussed was graft versus reality and if we have graft and there a reality with those liking your band brand -- brand. there is the export driven shifts,and, like all
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there are challenges and we are in the middle of that and retail ands are growing in china the fundamentals are perfectly in line with last year and there is softness in the markets. in the medium, we remain confident. >> talk about seeing things with the chinese new year and things performing in the most recent time. >> the new year's was last week and it is too early to tell. we will have numbers. it is too early. >> this is a man who runs a business on the ground and we talk about the rebalancing act and to what extent we are in and of people in a short span of
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time. saidecho a lot of things and that it is true that things in the investment space with has household income strong and there is possible consumption in real terms that approaches rates and the growth of services have been related to financials and other areas and they are now the engine of job creation. it is not necessarily a smooth and easy story of transformation. there are supporting factors. >> you talk about china growth as somewhat known. >> in real economic data, there
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is a doubt and most believe the genuine growth is slower than the statistics. one has to say that the credit creation and financial stress .tory is difficult >> thank you. david cameron failed to win over the french president on european reform. u.k.ance does not want the to have a veto over euro-area legislation. he has called on the confidence leaders to work of the deal. and it is timeal that we listen to each other more and not to our own. it is natural that positions
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harden as we get closer to crunch time. severek of breakup is and the process is fragile. handle with care. what is broken cannot be mended. get a little bit more with alex and larry. you do business and run business here and britain is integral. how concerned are you about a level of debate with this animosity between france and the u.k.? we expected full-fledged flight. pro-europeanrally and we all want a strong and
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withnt european union great britain as a strong trade partner that ways in all of the and we want a strong europe. >> how does the math work out? what would this mean for a business like yours? there is currency and i will let you do the math, because it can go anyway. from the fundamental view, being united in the world. carla you have your forecast. wholeheartedly put your hand on your heart and say that china will come down? why are you confident about the business? a third of the business is
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american, european, asian. markets are 37% of are global andwe we benefit from the positive we manage the with operations. >> a challenging environment where we see countries that rely on a higher oil price. you see parts of the world threatened because of the weakening oil price? >> we have then growing
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consistently in africa with double-digit growth and, again, for the first half of the year. that said, you see pressure on some economies and on some currencies. company to grow organically through market share, that is what we are doing . >> thank you for joining us. that is the chairman and ceo and larry was the guest host this morning. next, we are a moment away junk at moody's. ofl we see a fourth year metal prices collapse? >> we have equity futures indicated as higher and a nice
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carryover with a rally in the u.s. futures equity and london is indicated up and europe is set for a higher opening. stay with countdown.
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sores crude climbs, brand above $34 per barrel. a bloomberg sources saudi's oil minister plans to meet his russian counterpart today. anna: asia extends the advance. stocks have for the biggest tuesday gain in six years. we will have the latest from hong kong. manus: plus, more mining misery prepares torican report earnings that will downgrade the credit rating to junk. anna: and failing in france. david cameron is unable to swing along hollande as he pushes back on his eu reform plans. manus: welcome.
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i'm manus cranny. anna: i'm anna edwards. breaking news coming out of anglo american. year underlined earnings coming in at 800 usd.ion came from them, targeting $1.9 billion usd of cost and production improvements in 2016. this is the ambition for anglo american, as the strategic focus is for positive cash flow. all of this as the stock was moved to a junk status last night by one of the ratings agencies. anglo american is targeting $1.9 million in terms of earnings for this year. the underlined earnings came in at $800 million and the adjusted earnings, just above the
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original estimates, $.64 per share. the market was estimating $.63 per share. still, a lot of work to be done in how they get there. it will be one of the fascinating conversations. anna: you mentioned what they said yesterday, the company now facing the highest business risk due to commodities market conditions. they sent an e-mail last night that they had strong liquidity with only $1.6 billion of bonds maturing this year, defending their corner in terms of their ability to meet those debts. the stock fell as much as 5.8% in johannesburg on that listing. we will be speaking later to their ceo. he joins us here at bloomberg, 8:15 u.k. time. manus: let's get out the hans nichols with auto sales for the whole of europe. break this down. is it another victory for the car owner? hans: it is a victory for the
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car owner, in part because we see huge growth in the periphery. overall, numbers up for the month of january compared to last january. 6.2%. let's take a look at some of the regional breakdowns. we do see a story between the core of europe and the periphery. namely, they are still selling a lot of cars in spain. take a look. -- spain came in more than 70% increase italy, 12% -- itally, 12%. u.k., 3.12%. when we look at these numbers, lkswagenly after the vonnie crisis -- what is happening with market share? is down to about 24.2%. before it was about 25%. they are still losing market share. but compared to the month of december, volkswagen is creeping up just a little bit.
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last month they were down to 22%. the other story i see it here -- renewal had a very good month in december but it looks like they are going back down to their pre-numbers. they are down to 9% in terms of market share. month, north of 11% last and they had been touched with the potential of a diesel-like scandal for their vehicles as well. we are always monitoring market share. looks like volkswagen is worse than they were a year ago, better than last night. don't know if there is light at the end of the tunnel. we will keep looking at it. and we look at their investment in china, volkswagen is planning $4 billion investment in china this year, second place behind general motors. yes, they are cutting costs, but they are clearly looking to china as well. anna: hans, thank you very much. hans nichols with the latest on the auto sector. you mentioned china and that is my segue.
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china is set to be cutting the minimum bad coverage ratio, the amount of constraint on chinese banks imposed by the authorities in terms of the amount of capital they have to set aside. manus: there is analysis coming through -- we spoke to the power bank in terms of what this means. this one boost your profitability. we have seen the profitability in 10 percentage point cuts. loans coverage ratio boost profit by 7%. data -- theynpl jumped by 51%. to $196hina rose by 7% billion in december. that is the slowest quarterly increase in two years. are we coming to a moment of change in china? those bad loans are the highest number of the decade. anna: authorities are trying to
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get a handle on that at a time when new credit is surging on record. let's get a look at the futures. we're still set for the -- hans: yeah. i'm rounding up for the sake of convenience. paris up by 4/10 of 1%. dax up at 92.49. oil rallying, the asian market carrying through, money coming out of goldman and em. anna: let's get the first word news of caroline hyde. caroline: thank you. above $34 pernced barrel amid speculation that some of the world's biggest crude producers will cooperate to reduce output. minister,ia's oil plans to meet with his russian counterpart to discuss the oil market. the era of easy gain the japanese stock market is over, according to a positive return each of the past 10 years. it says the market has become more volatile and people will
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pull money. sachs asset management says the worst of the credit market selloff is probably over. it is now waiting for a sign that the situation is stabilized, but could throw cash back into other corporate debt. that oncesays sentiment becomes less negative, it will draw investors back. a british departure from the european union that could risk 466 million pounds in u.k. trade, according to a report from the center of economic and business research. that came after the eu president called on the continent's leaders to talk toward a deal to keep britain in the bloc. >> this is a critical moment. it is high time we started listening to each other's arguments more than to our own. this is natural and negotiation, that positions harden. as we get closer to crunch time.
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but the risk of break up is real. -- what is care broken cannot be mended. caroline: and taylor swift won three grammy awards last night, including her second album of the year. won bestar-old also pop album for "1989." day.l news, 24 hours a anna, manus. anna: thanks. let's talk more about the anglo-american business we had earlier. just to recap, anglo american adjusted to $.64 per share. of course, it is the biggest rock sure long-term picture, all
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of interest to investors. caroline: another headline -- manus: we have jesse ross bury here. optionstalking about for their mines in south africa, including a spinoff or exiting. this is about radically overhauling anglo american. we thought it was hit hard in terms of its credit rating and equity fighting. what have you made of the numbers so far? they expect capital expenditure to be cut further. they are making all the right noises. >> exactly. is that criticism they have been too slow, but today they came out with more details on a new plan, net debt target of $6 billion, almost half of where it is now. i think it is a fairly significant chunk of debt.
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pey're talking about the key illars, so bulk commodities seem to be there. iron ore and coal, looks like they are willing to sell those assets. we don't have huge amounts of detail they will sell. anna: they are saying that they are reviewing options, an exit possible, including a spinoff. what kind of waiting in the business do these assets have? are they talking about selling off small parts or large li mbs? >> large limbs. one of the key assets they mineoned is the iron ore in brazil, which many people see is the one that is dragging them underwater. they spent $10 million on one asset, more than the entire company. that has been a complete disaster.
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they bought it at a time when iron or price was in the doldrums, absolute disaster. that seems to be under review, but no specific lines on whether they want to sell. manus: if they are selling, glencore is trying to dispose, rio. who's in the market to buy these assets? it is not a good time to sell it. >> it's an awful time. but although we saw some positive news yesterday, they s sold a 13% stake in a copper mine. that was interesting from the perspective of -- -- does thatody's set it down another like, or is it good news we already knew being reflected in the credit rating? >> is exactly as you put it. they put out a statement last night, saying it didn't affect that much. manus: what's ironic, one of the last interviews i did with
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cynthia carol -- is this going am, this is yes, i a good deal. where is she now? >> would be great to get her on the show. manus: let's make the call. >> [laughter] anna: thank you. the saudi and russian oil ministers are said to be meeting today, raising the prospect that the world's two biggest oil makers will reduce production. elliott gotkine has the story. this has really shifted the gear for the oil market, and we don't even have the agenda for the meeting it, do we? elliott: according to a person familiar with the talks, they will talk in the qatari capital behind closed doors. it will involve the saudi oil minister, his russian counterpart, and the venezuelan oil minister, fresh from a
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rather unsuccessful tour of various oil capitals, trying to plead the case of production cuts to boost oil prices. but as you say, we don't have an agenda. i think it is pretty safe to assume that the possibility of production cuts is something that will be discussed while the oil market is latching on. the market thinks it knows what is on the agenda. how likely is that the agenda in any sort of deal? we have been here before to some extent with opec and non-opec talking about production. elliott: we have been here before, and the likely answer is no. the caveat for that pessimism -- first of all, the saudis said they would not cut unless everybody else cuts. they will not cut production only to see someone else take up and the saudi market share decline. they can't cut easily, and they
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certainly can't be so quick. it could cause damage their fields, to their pipelines were they to cut production. they don't have room for additional storage if they carried on pumping. finally, there is the issue of trust. even if some kind of oil production deal is made, will everyone honor it? history suggests not. for those reason, it is a good idea not to get helps out too much the city the pot -- vis-a-vis the possibility of oil cuts. manus: trading futures are heading such an absolute record high, it is what draws people to the market. let's give you the day ahead. first up, u.k. inflation data. then it's the german economic survey. anna: also today, david cameron is in brussels on the reforms he wants in terms of britain's eu membership.
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how much common ground can you find with the french, particularly around the banking sector? manus: and if that is not enough for you, get ready for the fed interpretation. we will hear from the president of the federal reserve bank ,hiladelphia, minneapolis, and boston. anna: we speak to the u.n. commission dinett financial director. that is coming up next. ♪
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anna: welcome back. 7:18 in london. let's get to bloomberg business flash. caroline: thank you. vodafone has agreed to set up a 50-50 venture to combine their mobile and broadband business in the netherlands. the transaction will cost in revenue synergy of 3.5 billion euros. vodafone will make a cash
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payment to reflect the different valuations of their local unit. disney has announced that filling has begun on "star wars" episode viii. it follows "star wars: the force awakens." disney has revealed two new cast members. is slated for release in december, 2017. the royal bank of scotland avoided when billion pounds in taxes by investing in controversial financing deals, including films like "harry potter." this allowed them for generous tax credits. this is your bloomberg business/. caroline: thank you -- manus: thank you. of europe's biggest banks have announced mass layoffs, billions and legal penalties, and lost hundreds of billions in
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market value. anna: e robinsond has written about what he calls europe's banking nightmare, and he joins us now. good to see you. how much distance from a financial crisis do we need before we can label it as such? can we look back at what happened over the last few weeks and call it a crisis, or is a premature? >> in the short term, it felt like a crisis. but i think it is indicative of a much deeper event, and that is the transformation of these european banks into new types of organizations. imanus: if we look at what you have written -- some of the analogies are quite phenomenal. john cryan has exceeded power at deutsche bank, which you say is most recent in defining the change. the ice cold housekeeper. this is a man who wants to change the structure of
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remuneration. hasas canceled bonuses and laid out his roadmap for big change, hasn't he? >> yes. he has set out to change not only the economics of deutsche bank, but it seems the culture as well. survive, atws will least a few for fills the values he has made -- the vows he has made. he is trying to preserve the investment bank, preserves the core dna -- accuse -- they have an investment banker running deutsche bank, than the retail bank running barclays -- you can't win. >> right. it is such turmoil -- there is so much turmoil. what these banks have to do is mix and match new businesses. they can't be universal. they can't be in every geography, in every product area. they have to decide which ones they are going to -- anna: it can't be universal,
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because if you look at the contrast between what is happening in europe and the u.s. -- in the u.s., they are in a different page. the universal bank script looks different. >> they took the pain early. the rules and regs were implemented on a much faster basis, and a lot of it has to do with how tidy the u.s. is on a government basis compared to the eu. it wasn't until 2012 that they had a banking union in europe. they are just a bit behind on that score. manus: ed, thank you very much. great piece, if you get a chance, you have to read it. anna: we are now joined by the european commission director for financial stability and services, olivier, great to have you on the program. we set out the backdrop of the current level of turbulence in the banking sector. you're trying to craft capital market unions across europe, diversify the
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sources of funding business es have access to. is that harder or easier if the banks are struggling? >> i think that makes the case for the capital market. with other independent financing in the eu, especially on the continent, 70% of the financing -- we need to diversify. 2009 that each time the banks are sick, the overall economy is in trouble. this is why we need to grow the financing. manus: and that also means changing culture, doesn't it? culture and infrastructure. if you are so used to one process of getting your financing -- you've got a lofty ambition, to set up this reform by 2019. my question is this -- given the hubris in the commercial market, given the lack of, at this moment in time, unity, between
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cameron at hollande -- are you really going to deliver by 2019? >> i think so. you should not mistake two things -- one is, for the time being, we are in a market failure. we have more liquidity in europe than ever. investments have not met. it's more acute on the continent that in the u.k. place the to put in right incentives for the market to work and right now they do not. that we can do by 2019. then the market will have to appropriate. we willon't try to -- not make the finance income. we will simply try to have better regulations so that the markets can work more effectively. anna: before we get to 2019, we have to deal with a vote taking
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place in this country. how does this couple take your conversation? one big source of capital markets sits right here in london, and if that particular source of funding is cut off from the rest of europe, that changes the dialogue quite a lot, doesn't it? >> well, that is true. a win-winmu is situation. they need capital financing, and it's available for the city as well. anna: does europe need to keep britain in the eu to make the most of cmu? >> the reasons we would like to keep britain in the eu -- and i think this is also -- it's not my call, really, as a technocrat to tell people what they should do. manus: what is the biggest obstacle to getting this fully up and running, fully operational. what is the biggest challenge?
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>> i think it will be to keep -- right now, everyone thinks it is a great idea. but it's not a simple, short-term project. putting a variety of things in a variety of places. it will take time to materialize. protect thesteps to situations -- people prefer relationships, even within europe. so we know we will face difficulties, and the biggest issue for me is that, along the road, the enthusiasm will fade. the appetite is not there politically anymore. anna: thank you very much. good to see you on the program. joining us this morning on "countdown." manus: let's leave you with a shot about what is going on in
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nymex crude and brent. nymex is up 4.5%, foreign markets turning around. we have the anglo american. stay tuned for "on the move." ♪
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guy: good morning, everybody. we are counting it down to the european open. i'm guy johnson. here is what we're watching. the equity rallies on. yesterday, we were really speeding through. the reason for that is because central banks seem to be getting a grip of the situation. plus, oil is very much on the move. brent is surging this morning. wti is surging this morning. i will show you the numbers in a moment. prices up nearly 6% right now. it's because we could have a meeting between the russians and saudis. and staying in the commodities space, the anglo ceos coming up later on. the key questions for him.

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