tv Bloomberg Markets European Close Bloomberg April 4, 2016 11:00am-12:01pm EDT
european close on bloomberg markets. we will take you from new york to london to paris in the next hour. here's what we are watching. stocks remain higher in europe. the stoxx 600 rebounding from the lowest level since february sixth. still not finding too much of a direction area gains in health care shares upsetting decline among consumer companies. betty: alaska airlines beating out jetblue to buy virgin america for $2.6 billion. latest in a wave of consolidation in the airline industry. mark: after months of negotiation, orange and stage push to buy the phone business of bouygues. what it means for the telecom industry.
90 minutes into the trading session. julie hyman has the latest. julie: we are seeing stocks pull back a little bit today. some disappointing economic data that we highlighted at 10:00 a.m. having to do with factory orders and stocks have gone to war their lows of this early session ever since with the nasdaq leading declines down 4/10 of 1%. if you take a look at the bloomberg we can see the groups that are doing the worst here. this pause comes after a rally we had seen and stocks that took them to positive for the year. it does look like it is at least a pause right now. pretty mixed picture here with health care and energy leading. consumer discretionary materials industrials and tech. awaiting the s&p 500. i've been watching the u.s. dollar. it's worst quarter in more than three years in the first quarter
. today, little change versus a basket of currencies but in terms of its future performance, some investors are looking at history. for that, this is the trade weighted dollar going all the way back to 1973. in past rallies that we have seen in the dollar it has lasted quite a long time. going back to the early 1980's after paul volcker was named fed chairman, we saw a six the seven month rally in the u.s. dollar -- 67 month rally in the u.s. dollar. in the mid-1990's amid a strong dollar policy we saw an 81-month gain. right now the gain has been 57 months. if we are going to see continuation of the dollar gains it would not be out of step with what we have seen historically. mark: it has been a choppy session for oil on the back of the biggest weekly drop since late january. julie: investors still try to weigh what is going to be coming
for the oil market after saudi arabia said it is not going to freeze production unless everyone in opec does. iran is not prepared to do so until it increases its production to some degree. as investors try to way that and way the action of the dollar and elsewhere in the market, we are seeing a drop. at the moment in oil prices. what is interesting is we are seeing a decrease in bearish bets. an increase in bullishness for the first time in quite a long time. let me reverse myself. an increase in bearish bets for the first time in eight weeks. the cftc report on shorts in the market, net longs going down. after that big down week it looks like investors, traders think there might be more to come. mark: a bit of raising in european stocks. we fell early in the day and finished up by about a quarter of 1%. the interesting sector industry
group to keep an i on, telecoms down by 1.24%. a majority of industry groups basic health care, resources and media led the advance. orange and bouygues, look at the .ovement in bouygues shares biggest decline since 1999. shares falling by 14%. all the other telecom players and france getting absolutely hammered as well. another stock we're keeping an eye on, media set. mr. berlusconi, the former italian prime minister, it chief executive of the board. vivendich media company is nearing an agreement to get full control of media set's paid television unit in a stock swap. the aim is to challenge rupert murdoch's sky in europe. so say people familiar with the
matter. it is all about greece. christine lagarde says the imf is "a good distance away from an agreement that would allow for additional loans to greece o." lagarde, weand miss will not going to that because we will cross to athens. the concern is come are we getting a rerun of what happened this time last year? will greece exit the euro area? will the bailout unravel? the two year yield has risen, the most in two weeks. 10.68%. that can -- back in august for the third bailout came to reality, the yield was 30%. if our way from 10% to 30%. yields are rising the most in two weeks. i'm not going to mention the g word.
betty: your chart is a great illustration of kicking the can down the road. let's check in with the bloomberg first word news. remy innocency of has more. shockwaves from a report about hidden fortunes felt around the world. of report says a number world leaders used shell companies to hide their wealth. journalists obtained millions of documents from a panamanian law firm that creates shell companies. the report links 12 current and former leaders to offshore companies including russian president vladimir putin. the head of a russian state-owned bank told bloomberg tv the allegations are nonsense. >> nobody said mr. putin was involved. that is not his name registered anywhere. putineople who know mr. have certain offshore businesses. what is wrong about this? ramy: shell companies can be legal but they can also be used to hide wealth.
saudi arabia is planning the biggest economic shakeup since the country was founded. mohammed bin solomon outlined the provisions with bloomberg news. the measures are aimed at raising an extra $1 billion a year by the year 2020, more than tripling nonoil revenue coming at a time when oil revenue a shrinking. more flights scheduled to leave the brussels airport one day after it reopened. only three flights departed yesterday. flights scheduled to the u.s. and africa today because of because of damage the airport can handle less than 20% of its normal passenger load. hillary clinton and bernie sanders are sniping at each other. sanders says clinton must be getting nervous after she criticized him for not fund-raising for other democrats. sanders leading clinton in tomorrow's wisconsin primary. woodrow wilson's name will remain on princeton university's
public-policy school. there have been calls to remove it because the former president was a segregationist. a group of students raise questions about wilson's racist views and their impact on his policies. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. inocencio. mark: thank you. while euro area unemployment continued its slow decline to the lowest level since 2011, inflation is nowhere near the ecb's goal of just under 2%. a moderate economic recovery has been able to counteract oil price. joining us on the phone is brenda kelly, head analyst at london capital group. thank you for joining us today. brenda: good afternoon. the euro, highest level against the dollar since october 14th. is that more dollar weakness and euro strength? the unemployment rate fell to the lowest levels since 2011 but
it is still stubbornly above 10%. that is a huge divergence between the member countries of the euro area, aren't there? the ecbobviously minutes quote said light on the question of whether the ecb will increase stimulus. i sent in the market that there is a feeling that while the ecb could act again there is really general consensus that we are not going to see additional cuts to rates. i think ultimately looking at what we have been seeing from the eurozone, it has been reasonably good. we have seen unemployment remain above the 10% mark but if you look at the likes of retail sales down an annualized basis, the fact that services pmi as been diverting positively away from that of the u.k., expected to remain unchanged at 54 tomorrow. we could see the euro bill on the actual games it's our last week. i would sense the 115 level
would not be a difficult one to attain in the near term. certainly the cautious approach from janet yellen in respect of global headwinds would leave the markets to believe there will be no rate hike until november of this year. while we might be consolidating for the time being in terms of where the euro-dollar remains and where it is trading at, there does seem to be a bend to the upside. mark: my colleague julie brought up a chart about the dollar run. it showed the last two dollar bull runs. 1979 and 1995. if you compare this one to those other two it means that this one could go on longer. and it has further upside. are we done with a dollar bull run or is there further to go? brenda: there certainly is a bit of room for the u.s. dollar to move a bit higher. it is the only central bank in
town that is on a path to hiking interest rates. you have to bear in mind the other factors. anytime you see decline in oil prices it tends to give the german bunds a lift. you look at this year so far, appetite for risk has been dictated by oil prices. that is what we have seen in the beginning of the year in terms of equity prices. that does tend to underpin the euro against other currencies. the japanese yen for example. we could see a boost higher from here. i sense that for the time being as long as the global headwind continues and oil prices remain reasonably subdued and nobody really expecting the fundamentals to change anytime soon, it will be a sideways sort of move for that particular trade wind. it is a long charge. butrobably still has legs that could be six to 12 months down the line before we see those legs materialize. betty: when you expect us to get
any kind of buy signal from the dollar this year? perhaps when the fed possibly raises rates? is going think the fed to look for pce to exceed the 2% mark. we have seen that rise by .1% month on month and 1.7% year-over-year. i pick it is the most preferred inflation measure. the most important implications for policy. it needs to exceed that 2% target mark for the federal reserve to start to normalize interest rates. i think global headwinds are one thing but they will want to see an extension on that target before they move too quickly. i think they are probably maybe not as late as november i think the markets might be delayed in when they are expected to happen. we could see it within the next six months. on the basis of pce data in my opinion. betty: brenda kelly, head
mark: live from london and new york, i'm mark barton. betty: i'm betty liu. time for the bloomberg business flash. a look at business stories in the news right now. tesla says 276,000 people have put down a 1000 dollars deposit for the new model 3 electric car. the car will not begin -- elon model 3s the average
will cost about $42,000 with options. the supreme court has rejected appeals by walmart and wells fargo of multimillion dollar class action judgment. walmart objected to a judgment .f more than $150 million wells fargo had appealed a $203 million judgment for charging customers to much in overdraft fees relating to debit card purchases. that's global market is making its second attempt at an ipo. at $2.1 billion, more than twice the expected valuation in its first attempt. ipo.withdrew its that is your bloomberg business flash for this hour. -- inwe are about 80 days an exclusive interview on
bloomberg television, u.k. ambassador to the u.s., kim darroch made the case against a so-called brexit. the financial risks of leaving the eu are very real. sir kim: there are strong positive arguments for staying in and the top line is the prime minister believes we are stronger, safer, and better off inside the european union. there is no question there are risks to leaving. the chancellor and governor of the bank of england have said this is the biggest single toancial risk stability in the future. there are possible reasons to stay and there are risks around leaving. stephanie: what you believe? sir kim: personally i'm strongly in favor of staying with the european union. i was investor of the eu for five years. -- i was an ambassador of the eu
for five years. jon: you say you look at it from both sides. thepolitical spectrum, with steel issue at the epicenter of globallyssues , the left may turn around and say we could do something about what is happening in china. some of the dumping of steel. do you believe in that at all? sir kim: i believe we are much stronger in terms of trade negotiations, in terms of forming international trade deals, and in terms of protecting ourselves against dumping if we are part of a single market of 450 million people. i think it is a straightforward case for being stronger inside. david: in your new role you're the keeper of the so-called special relationship. i think referred to by winston churchill originally. what happened to that relationship between the u.s. and the u.k. if you actually left the eu? sir kim: the special relationship was coined by
winston churchill 70 years ago last month. a good moment to bring it up. a very strong and genuinely special relationship across a range of areas, including security, trade and investment, and culture. i spent the weekend supporting royal shakes your company here in brooklyn. sold-out 27 performances. huge success. -- shakespeare company here in brooklyn. sold out what h -- sold-out 27 performances. potentially we could be less influential in the world if we are not part of the european union. stephanie: culture matters but you mention trade. business really matters. super important for us here especially as it relates to the election. if brexit happens, what will things look like in terms of free trade between england and the united states? sir kim: if brexit happens, and that is not the plan, the plan is that we stay, that the
british people vote on the 23rd of june to remain in the european union. that triggers treaties and 82 your process in which you have to negotiate the terms of exit and presumably whatever other arrangements you want to make in terms of trade deals around the world. that is inevitably a period of uncertainty and risk. mark: u.k. ambassador to the united states speaking with bloomberg go's stephanie ruhle, david westin and jonathan ferro on the financial impact of a brexit if it does happen. still ahead, after the failed french telecoms merger between orange and two weeks, bouygues shares are on call for their biggest fall in 17 years. why did the deal fail? that is coming up next. ♪
mark: you're watching bloomberg markets. with betty in london liu in new york. investors feel the impact of the orange -- the failed orange bouygues merger. the four worst performers on the stoxx 600 price index. the slump widening more than 8 billion euros off the company's combined market value area and was behind the deal's collapse? i want to bring in marie mawad. thank you for joining us. what caused this deal to stumble ? : it was a complicated deal to start off. four companies sitting around a table discussing how one of the smallest carriers, the third biggest carrier in france, is going to be split up between orange buying it and selling assets. four companies around the table and the french government joins
in. questions about antitrust that made this deal complicated. big egos around the table that you also have to keep happy throughout. when you ask people in the industry and around it and people who observe it today what went wrong, a lot of the fingers are pointing to the french government. which in the last phase of the deal imposed some very tough conditions on how long bouygues would have to keep orange chairs , what price it would get them at. that sort of brought the deal to an end and brought talks to an abrupt end after multiple months a back-and-forth. mark: did the french phone industry need this deal? did it need consolidation? look at what the shares are doing it appears obvious investors wanted this consolidation. the french phone industry, since a fourth carrier came into the market in 2012 with discounted offers, it has been the scene of
multiple price wars since then. that is what investors are worried about. that more of these price wars going forward will continue destroying value in the french market. if you ask some of the players and we -- consolidation would have health but we have plans anyway. our plans are to turn consumer attention away from low-cost pricing and turn it to premium networks, premium service and to innovation to try and pull phone bills up in the country. mark: who is best placed to cope with what many are calling a destructive price war which was preempted by iliad's entry into the market? marie: some plans have made massive investments in next-generation networks. that is bound to help them. that is the case for orange, the biggest in the country. question really will be
going forward, what are bouygues' plans and the company has said it can go on and standalone. it does not need a deal to continue. going into talks for four months and hoping for those talks to end with a deal really puts bouygues in a weak position and they will need to show the market how they can keep going forward as standalone. a deal is off the table for at least a year at this point. mark: tags a lot. marie mawad who covers global tech in paris. european equities are faring. about four minutes away from the monday session. stocks have risen today. a look like they will finish the monday session high. ♪
thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. mark: you are watching the european close, i am mark barton with betty liu. let's take a peek at how the
session that it. this is the intraday chart for the stock 600. it showed up about .5%. after falling through three consecutive weeks along losing thisch, we talked about until we're blue in the face. we can't not talk about it, because the big decline in equities today were all in the french telecoms space after orange pulled out of the deal to buy bouygues. the biggest fall since 1999. they finished the day down in near 13.75%. is another deal unraveling as well? shares, theilip's lighting company and health company as well. u.k. investment company millrose has dropped out of the running lightingilips
division. oft increases the likelihood an ipo for the business. or concerted millrose have -- what concern did millrose have? the lack of data. the offering they are -- deadline has been pushed back to april 18. company sayinghe the unit can fetch as much as 5 billion euros. coming back to its happening in greece, bond deals arising today right across the curve. officials once again meeting in athens to hammer out a bailout deal. we have european officials theng greece could face threat of being pushed into default or being pushed out of the euro area, rewind 2015. we had christine lagarde saying the imf is a good distance away from an agreement that would
allow for an additional loan degree. when i wanted to show you, betty, was greece going back to 2009. this is the 10 year yield. we have an inverted yield curve, by the way. the two-year yield is higher than the 10 year yield, showing us investors are worried about greece's ability to pay its short-term debt, more worried than they are about long-term inflation. the yield today on the 10 year is 8.94%. back in the crisis peak in 2012, we were 34%. last august, at the time of the third bailout, we were at 11%. so yes, betty, yields are rising today. but nothing like august, and nothing at all like 2012. but betty, a lot can change in just a few months. because, betty, we need a deal in greece. we said that last year. it really is déjà vu. betty: it is, but we are not hitting the panic button just
yet. european markets, as mark was to showing are also paying attention to any news coming out from the fed in the u.s.. thehtened anticipation for minutes which come out on wednesday, investors hoping to get more insight on just how dovish the young fed is going to be, mark. is anotherng us now potential risk to your portfolio, richard demeo. we have the minutes to look former fed we have chairman meeting on thursday, that's going to be incredible if you were in that room. still onwo rate hikes the cards? fed is the right place to start, which is where the currency markets are taking their cue from. dollarough to drive the from the five-and-a-half outflows, -- month lows.
the market is still very comfortable with the shift. i think we been surprised by this dovish turn, to quit the extent they have been dovish, and she's been joined by a fair few of her committee members as well. volcker,you could ask greenspan, bernanke and yellen one question, what would it be? richard: i would love to understand the relevance of u.s. data. we are talking about the shift in stance from december, they were talking about four interest rate hikes. now the only thing that's happened is the condition for integrates -- interest rate hikes have improved. it's very clear that the u.s. is looking at international conditions right now. and regardless of how good u.s. data is, the key is going to be can we see financial markets stabilize? richard, do you think they should stop saying to dependent? -- data dependent?
that was ast week, strong set of data. the six-month averages around 235,000. it was a slight increase in the implement rate, partially offset by an increase in the participation rate. these are good numbers, head of forecast. we are not seeing traders adjust their excitation as regards to u.s. interest-rate hikes as a result. for the moment, it's also case of however from the date is, until we see a shift in tone from janet yellen and the fed, we are unlikely to see any major position taking. perhaps, betty, this wednesday will be an opportunity to see that. , could theyraders do no wrong if they just followed what janet yellen says and forget about all this other noise? earnings in oil prices and whatever, just follow what the fed does? all prices are: higher than now, it's not quite
as binary as that. but it is very important to follow that. market shifts, sometimes it's complete we driven by the tone for macro data, other times it's very much about the fed's stance. we are in a moment right now where what's most relevant, if you look at what the market is reacting to is absolutely janet yellen in the fed. at some point, they're going to call time on this and will declare the markets ready to then recommence their tightening cycle. for the moment, we are not there yet. talk about the ecb. we door stepped to peter prada. strategy, we are permitted to reese 2% in its pursuit will future. -- to reach 2% in the perceivable future. i think the measures we've taken are quite forceful. and would produce the desired effect. you see the ecb reaching the 2% target, and to use his words, the foreseeable
future? richard: more important is the market reaction. markets are liking the signal they are getting from the ecb. if you look at the strength of the euro, after close to six-month highs -- mark: is that dollar weakness or euro strength? richard: accommodation of both. the euro was performing very well. mark: brexit? on euro pound was above 80 p friday, how low the sterling go ahead of the referendum? what we said was 80 days. richard: we are only six weeks or so into this. if you look back to the intensity of the speculation when they announced the dates, so i hate to join the course of negativity. but it is difficult to buy the pound at the moment and go long sterling. it lightens the uncertainty we're going to see.
i think things are reshuffling what felt like a foregone conclusion, what was going to be a formality has gone badly wrong in that sense, depending on which bowls you read. the one guarantee is uncertainty in sterling weakness in the coming months. mark: today was the first day that i used the g word, greg that -- grexit. are we having a repeat of 2015 again? richard: this is how it all started, talking about yields earlier, it could be the start of something. i don't believe this is a story that's going to go away. i hope that we are not go to get we kind of brinkmanship's had from last year in the year before. i think it's bad timing as well if you think this sort of loan expiry and repayment do will coincide nicely with the june referendum date. i would expect to start to see some euro weakness being priced in. it still looks better than with those risks emerging. mark: richard demeo, managing
director at phoenix partners. betty: using comfortable using that word, grexit. we are following along in terms of the nervousness outside here in the u.s. and abroad as well. the dow is trickling down a little bit as well as the s&p and the nasdaq. abigail doolittle has more from the nasdaq and stocks are moving today. abigail: we do have the nasdaq trading modestly down. theof the worst drags on nasdaq 100 is viacom, shares her lower after moffett nathanson has downgraded the stock to a neutral from a by after years of recommending viacom, senior partner and analyst michael nathanson is moving to the sidelines. he says the double-digit earnings growth is probably over for a number of reasons, including the possibility of weakening affiliate fee growth. a big posture change your on viacom from often nathanson. that's one of the biggest
rags. what else is weighing on the nasdaq? abigail: the nasdaq 100, after deutsche bank's rob sandler issued cautious comments, saying he expects the stock to trade down to the company's first-quarter report on april 20, but they are suggesting the company could infect fact missed slightly, this will pressure shares. from a technical standpoint, this is running through right now today. the stock is below near-term moving average, the 10 day moving average. the last few times this is happened, the stock declined anywhere from 5% to 23%. we could see more downside, long-term, he really likes facebook. rating, this is the tactical bearish call on the near term for facebook, betty. betty: abigail, thank you. let's check in now on bloomberg first word news with ramy inocencio has more from the news desk.
y: the kremlin reacted harshly linking vladimir putin to offshore transactions. lease files from a panamanian law firm reportedly show at transactionsion in involving people and companies with ties to vladimir putin. saidort -- the report companies used shell companies to hire their wealth. there will be tighter security on french trains, armed marshals will be patrolling some passenger trains, they will be allowed to shoot if necessary. a team of profilers will survey security camera footage in train stations, looking for suspicious behavior. wave of suicide bombings as guilt several dozen people, six soldiers were killed in attack on the security checkpoint in a baghdad suburb. another attack killed 14 people in a restaurant popular with shiite militia fighters. more than 200 and 40 refugees arrived in turkey today from greece. that's part of the european
union plan to limit the amount of migration to europe. refugees who reached greece illegally from turkey when i be sent back, unless they qualify for asylum. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. i'm ramy inocencio. mark? in battle of the charge, a face-off with the man himself, matt miller. we're going to be looking at the performance of middle-class stocks, can't wait. ♪
christine lagarde says the organization is a good distance away from the deal to lend more money to greece, which has europe's largest debt. do not miss our exquisite interview with christine lagarde tomorrow at 4:30 eastern, 9:30 london time. bloomberg television, radio, and bloomberg.com. fedex hopes to sell 3 billion euros of songs in its first non-dollar debt sale. it will help the company pay for its planned exposition -- acquisition of tnt express. thex is taking advantage of lowest boring cost and 10 years for foreign companies. two of the world's fastest growing airports, dubai, and chicago o'hare, but to each o'hare ishree spots, at 4%. the busiest airport in the world is still atlantic. beijing is number two.
that is the latest business flash, betty. let's do it. our global now for battle of the charts, we take a look at some of the most talented charts of the day and what they mean. you can access all of these charts by running the function featured at the bottom of your screen. matt miller. mets: i have brought a truly global chart today, unlike mark. decoupling, and it's number 796, you can i type in my name on the bloomberg edible auto fill with our library. here in world index yellow, over the past decade we have normalized the united states components, and the entire world ex u.s. component based on a level world index here. you can see the two indexes or
components and entire world ex u.s. has been moving together for a long time, after the great recession, in this recovery, the u.s. has well outperformed the rest of the world. the question is, will this continue, is the u.s. a safe haven for equity investors to go to, or is it time for that to turn around? betty: the cleanest shirt in the laundry, the best house in the neighborhood. i'm not going to rise to matthew miller's bates, because sometimes in life, betty, biggest better. if you look at miller and me, i'm slightly taller. let's talk about bigger and better. let's talk about bigger not being better. in the equities space, this is very much the case. this is a lovely chart going back to the lows of march 2000. , he'se i love matt miller
a live in germany, of course. what's interesting about the midcap versus large-cap space, the midcap space has outperformed at a european level and a german level. i look at how the midcap stocks in germany have way outperformed the dax since 2009. i normalize this chart at 100. since then, the german indexes up by 380 6%. the dax is up by 166%. it's a similar trend, betty, of the european level. why is that? the dax is focused on more export oriented companies, and these midcap stocks are more to messick focused. you learn something every day when he listened to mark barton on bloomberg television, and to #metveven more, betty, g 790. v 790.
but when it comes to height, you know who is better. betty: i have to hand it, mark, to our friend, matt miller. this is a really awesome chart. yours is great, but mats is a little more global. there you go. that's my justification today. thanks, guys. still ahead on the european close, alaska air has struck a deal to buy richard branson's virgin america for $2.4 billion. will this market new wave of consolidation in the airline industry? we will find out. ♪
takes flight again in the airlines business. today, alaska air agrees to buy virgin america for $2.6 billion. the 47% premium to return america stock price since bloomberg first reported that richard branson's packed airline was looking for a buyer. told kush has just bloomberg news is unlikely the u.s. government will seek to investors. he also added that jeff lu did not bid significantly below alaska air. joining us is jeff mccracken. hugely -- the jetblue bid was not as bad as we thought. it could have been either/or. jeff: alaska air was just willing to pay more, however many more dollars more per share. alaska air is the whole reason this got started. when we are making our thanks giving plans, the ceo made the approach to virgin america, and
they had to listen because it was a very significant premium. at that point, virgin hired a record shop themselves around. the only other potential buyer was jetblue. they went back and forth, but it became pretty clear that alaska air was willing to pay more. theyare a bigger company, have the wherewithal, and they really have a desire to do this. morehad been unable to get dates in new york, at laguardia or jfk rmb see, the wanted gates their reagan. virgin america gives them access to that. it also helps their cachet. whatever you can save a richard branson, he's really good at creating cachet and brand recognition. betty: it's enjoyable to go into one of his airplanes. virgin,eryone knows everyone has a pleasurable experience. retrace get there faster, the seeds feel nicer. -- your drinks get there faster, the seats field meister.
buying the right to use the virgin brand. that's important. have never flown and alaska air line before. most people who fly in and out of jfk or laguardia don't really recognize or no alaska air. the big four players in the united states are delta, southwest, united, american. they had 80% of the market share in this country. alaska's trying to maintain the number five spot. that also, they are pushing a bit against delta, who has made life hard on alaska airlines last couple of years. mark: can they really compete with the big four? in the virgin alaska combined entity compete with those four? jeff: they can try and cement themselves as number five. they want to be the preeminent west coast flyer. they're going to have more flights in and out of san
francisco, more flights in and out of los angeles. they're based in seattle, they're going to do with they can to support or build up their reputation on the west coast. betty: what happens to jetblue? jeff: there aren't a lot of airlines out there. that's part of why alaska airlines is playing -- paying so much. you don't see that much, maybe in the pharma bio space. perhaps jetblue could look at frontier or spirit or some of the smaller airlines. but there aren't a lot of big deal to can get done in the airline space. regulators are all over it. as i said before, there are four big airlines with 80% of the market share. you're not going to see many. maybe spirit or frontier. this is when the last deals that will happen for a long time. mark: jeff, things for joining us. jeff mccracken there. take a look at how the european equities finished the monday session. it was a day of gains, gains all 600, afterthe stock
three consecutive weeks of declines, the big decline group was phone companies. i'm going to quickly show you the phone companies that sell today, essentially the deal was orange saying we are not interested in bouygues telecom anymore. look at those declines. that's it for the european close tomorrow, 11:00 eastern time, 4:00 p.m. london, don't miss our exclusive interview with u.s. secretary of state john kerry. betty: also at noon on bloomberg markets, we're going to be chile'sto chili's -- energy manager. that interview is just minutes away. ♪
scarlett: good afternoon. alex: i'm alix steel. look at the returns risk asked good -- asset. scarlet: saudi arabia faces a shakeup, can the country triplets non-oil income and balance the budget by 2020? alix: we speak with the chilean energy minister. it's renewable energy ambitions, are they sustainable? first, we were halfway through the u.s. trading day. we need to head over to the markets desk, were julie hyman has been tracking the latest. the dollar is gaining but stocks