tv Bloomberg Markets European Close Bloomberg April 6, 2016 11:00am-12:01pm EDT
watching the european close. mark: we will take you from new york to london to washington over the next hour, here's what we're watching today. off the $116 billion plan to phase off pressure from the united states and to avoid the tax emergence. what is next? betty: the latest minutes from the fed in just a few hours. while the european stocks are losses and minor dances of health care companies. mark: glencore agrees to sell a minority stake to canada's
largest pension fund. -- the price is $2.5 billion. minutes into the trading day, let's get to the markets. we are seeing a little bit of an extension in early gains. up .5 of 1%. that isally health care leading the gains we are seeing today. pfizer trading higher as they cancel their deal. higher and no analyst investors trying to figure out where these two companies go from here. do they go elsewhere? we're seeing other health care companies today as investors tried to investigate the landscape. have a mixed bag. gettingand microsoft
higher with a lower ge. are providing a counterbalance to the increase we're seeing in health care shares. mark: i feel he julie has been speaking for an hour on this conference tour. what are the highlights so far? abigail: i am -- julie: i'm watching it as he gets the big highlight. the big timeline has been his discussion of valued pharmaceuticals. among other things, there are a handful of ceos. mike peterson, and his leadership during the transition said his leadership lost confidence but, they can have full confidence in the 10k. so, those shares are dropping as he talks. other holdings and investments, herbalife reiterating that the stalk is a pyramid scheme with no upside.
the company is making progress under the new ceo. he said it has been shattered by overall rail volume weakness. norfolk southern has until now rejected the potential deal. way, companies, by the have not done too badly, unless you look at value, it has dragged down the portfolio for the year. his holdings for the publicly traded company and the netherlands is. you can see the year to date down 32%. accent open the call by saying it has been a tough order. the drug's stick with thing. check out the stoxx 600 industry group. in the sectorocks are up 2.2%. of thehe scattering
pfizer deal. it has many people scratching their head and asking who is next? game has includes shiite and astrazeneca. so, health care stocks are driving they stoxx 600 higher today. nokia is up 710 above the percent. it will reduce 40% of the workforce. that could be in the region of 10-15,000 employees. it is part of a plan to save $1 billion annually. another big story today is glencore, canada's biggest pension fund. they will buy a 40% stake in glencore's agriculture unit. i have done a lovely job for you.
this is the big aspect of this world. how the miners performed since january the 20th. that is an they fell to a 13 year low in the industry group. check it out. this is normalized. the hp is up by 25%. the big to mining companies in the world. glencore will be sitting on a gain of 93%, look at this, anglo-american, if you forward shares from january 20, you'd be sitting next to a game next to 131%. betty: if only. i feel like that is a prelude to your batter of the sharks and nader. let's check in on first word news this morning. vonnie quinn has more from the news desk. the primary here is april 19. ted cruz and bernie sanders
added the winners and was casas primary. 48% to 35%. for democrats, is sanders beat hillary clinton 67 to 43%. he could so have a potentially for delegates. 748 the sanders 1058. trump is still on top of the republican race. he has 740 delegates to cruises 514 and 143 for john kasich. former coal executive don blankenship will be sentenced today for the deadliest u.s. mine disaster in four decades. he was ceo of the energy company went one of the mines exploded in 2010. the blast killed 29 people. he was convicted on thursday of violating mine safety standards. public safety safety officials are outlining safety measures for the boston marathon. security has increased since the terror attacks in 2013. three people were killed.
more than 200 60 injured when the two bombs exploded near the finish line. a warning from the americas transportation chief. protecting subways, trance, and roadways from terrorism is complex. business centers are open to the complex. tsa administrators said his agency develops the bulk of its budgets to aviation. his son was a marine in afghanistan, now, stephen kellen is planned tuna $75 million to form a network of free mental health clinics for veterans and their families. a 25 of these claims by the a 2020. i am vonnie quinn. mark: thank you. as we have been saying, we have had a roadblock for the m&a space. the two farm giants are ending their $160 billion merger.
halliburton is being sued by the u.s. antitrust who claim its plans takeover the vacancy. both companies this morning about to quote vigorously fight the charges. let's bring in jeff mccracken. let's start with halliburton. what is the justice department worried about? >> this is the deal were they are trying to take oil services the number of people competing it from three very large players. that is what halliburton is trying to do. that is something that usually the doj and the regulators will resist. i do not think anybody is really surprised by the announcement. said that thisas deal was in crisis. yearit has been probably a or more that the obama administration has just got more
aggressive. it anyt any old deal, deal where competitors are coming together and taken it down. scrutinying a lot of and often getting block. >> i do not think they will. usually, companies will say that and then in 48 hours, they will white their hands and walk away. if you're halliburton, you probably knew for weeks or more that the deal was going to get block, and we're going to have to write a check for the termination fee that they will have to give for baker hughes, that is not money they wanted to depart with. i think a lot of the investors are not surprised, their shares are up today. now that news is out and features are. i wouldn't be surprised to be so halliburton and baker hughes. allegan has the breakup
fee, there will no longer be joined up with pfizer. brent iser from allegan talk about the future of the company and, let's listen to what he said. >> we will look at anything that is a growth oriented asset. we will look at growth by company. that will include r&d assets as well as market courts. everything is on the table. everything is possible. it will always be true to her growth profile and assets. >> they are not getting what baker hughes is getting. they have rusty -- roughly 150 million and it ends his. somebody on the pfizer side had good foresight. the rookie contract that said if they have to leave the deal or that the irs and the treasury did something that would impact the deal, they would only pay up to $140 million in expenses. therer, that being said,
were probably sit on 30 billion or more once they close the deal. so, i when i be surprised if 3-6 months from now, they are inquisitive and going after companies. valeant is on its back. we should expect that they are going to be out there acquiring the way they used to. the fact is if you are allegan, which saunders used to run is a very attractive asset. i would not be surprised if they went in and picked up some assets and a look at other companies. it would be interesting if they started thinking about that. i think he escapes the dead deals. we'll check back and at bloomberg news. much more ahead, what does tina brown think about the primary season? will talk with her in a moment. ♪
mark: i am here is betty liu. time for the business flash. we will cut 10-15,000 job. part of the plan to save more than $1 billion per year. double one fits of the 18 takeover for august self. to be a major player in the phone market. now, he concentrates on networking infrastructure. the rules will require brokers
who recommend for retirement say they meet the new standard hearing billions of investment dollars are involved. he reminds viewers to watch by putting their stars on facebook. for the recent episode of abc's agents of shield, the show started live on facebook to ask question from fans. fox and the discovery channel have had similar effects. that is your business flash for this hour. betty: ted cruz and bernie sanders victories in wisconsin goes under unpredictability. the madefter disparaging comments after chris's wife heidi. our next test -- guest is tina brown. the seventh annual women in the world summit is having this week in new york city.
fact, it opens. >> it will be incredible. megyn kelly, carol street, diana washington, talkinge lagarde very about breakfast and europe to what is happening in brussels. >> i visited them before. and, i remember christine , he asked a lot of questions at the summit. one of the hot topics will be politics. with cecile richards coming. megyn kelly coming. it'll be interesting. betty: what you think of wisconsin? huge surprise. bernie sanders was expected to have a ton of money. he has won a rash of states.
still, he has not caught up to hillary. it just shows that she will have to slug it out to the end. point thethat at some valley of experience will be understood. what we are seeing with bernie sanders is that he is appealing it cang people because be done. you cannot declare that we will give every kid -- kid free college. will break up the big banks, we're starting to ask him now, i feel badly with the daily news interview, how are you going to do it? betty: we are hearing those questions were trump as well. >> when these guys can turn off the hot air balloon and answer question, people start saying wait a minute, he starts sounding disorganized. clinton,w come hillary they say she is a woman's the problem.
she is popular among women over the age of 65. she is having a hard time coalescing young women. >> i think for young women, it is good that they feel the same way. young people like his message. it sounds great. the great thing about being young is that you feeling things can be done. listen, i know a lot of young women who love hillary clinton. they are giving fundraising to hillary clinton. you think should be in trouble the questionchoed is by how much? a victory is a victory. you know, i think her campaign has had a tough time. it has been hard for her. i think it is frustrating for her that she cannot just focus on the republicans. betty: that is the problem.
she has been having to fend off bernie sanders. you know, let's move to your homeland. the u.k.. you mentioned breakfast, we are only a few months away. on whether thend u.k. should stay or not stay in the eu? >> i think sharing intelligence is very important. globalismetend that is something you can separate yourself from, but i think that ship has sailed. i don't think it is a victory. betty: why are they so split on this? >> i think people are in the mood to just reject, the same way scotland wanted to be independent. the sense that big stuff just slows you up. i understand that feeling.
it is clue in any corporate situation. i think there is a huge amount of bureaucracy with europe. feelure it makes everybody that there is this sort of large foot over them. the same time, i do not think isolation is a 21st century decision that is viable. betty: thank you for stopping by. congratulations on your women's in the world conference. bloomberg users can now check out our new function. brexit go which enables users to monitor the latest news, polls, and indicators of how you feel about staying in the eu, next, glencore shares take a slide. a $2.5 billion stake in the agriculture unit, more on those details coming up.
♪ mark: a beautiful afternoon. this is bloomberg martin -- markets. glencore is moving forward plans to sell out their debt burden. fund wentargest hedge off $2.5 billion. joining us now is bloomberg news reporter who broke the story. it is an underwhelming reaction to this deal in some quarters. it is a great deal for glencore. they are bringing a large pool of capital. they are looking at organic and in organic growth.
they have agriculture business in north america. mark: who else is interested? some: we understand that asian companies are interested in the fund. also are some of the saudi's. on that point, it is interesting to note in a statement today that glencore said there is a further 20% stake in the business. it is possible, we do not know that there is the potential. we have a large statement. >> week of the ipo in years and years. it is all about that. the fears that glencore's debt hit their peak in december when shares fell. dissipating?ls have a dissipating? jesse:
they're definitely dissipate with every deal we do. there are trying to reduce their debt by 9 billion this year, we will go some way to that. we do have a few other assets sales. the company has been in the pipeline for about six months. >> that is a critical ratio of new companies. this is quite unusual. net that will fall by 2.5 billion. we're not out of the woods yet. have a long way to go. as you said, the share prices fell 140 p. let's look at the shares. this is a beautiful shot. mark: this is semi-true. i said they, the big four in foron, is january the 20th their 2013 low, they have more
than doubled. they have all had a good run. what is the feeling out there allabout this go they've had a good run off a low base. the feeling there is at the not underpinned by the fundamental. copper prices been under pressure we could have the market deficit prices. mark: well done. bloomberg news we should mention peak ground. the parents of bloomberg news. he is a senior independent nonexecutive director. very quickly, take a look at the european stocks as the european close is minutes away. stocks are rising. stay with us.
the market action. since about 3:00 london time, shares have been on an upward trajectory. groupg moving industry was the health care industry. this is our chart of the hour. all i've had to do is replicated, stick it up there so you could admire it. it shows who possibly is in the firing line now that the pfizer, allergan deal has been possibly terminated. xo is the purple line. we normalized it at zero. roughly 5%. up by the other two are down by roughly 10%. are they in play now that the pfizer-allergan deal imploded? this is one for betty.
10%es of by as much as earlier. it phased out it's less lucrative contract. this is a less known company that makes a quarter of the world's chocolate. it supplies you know ever with the chocolate for its ice cream. shares are up by 8% today. before i throw it back to you, betty, this is from earlier in the day. and highlights, how investors in , are worried by brexit concerns. the valuation of the ftse 350
relative to the value of the stoxx 600, this line is the highest since 2005. the ftse 350 is stacked with energy and mining stocks. declining is the sterling. 350 has fallen this year, but fallen less by the stoxx 600. the ftsechmexit for 350 constituents. betty: we should not be shrugging off the minutes for the march fomc meeting. they are out a little over two hours from now. time whens is at a the overall power of central banks to boost markets and the economy has been called into question. joining us for more perspective is the director of asset management services at oxford economics.
what do you expect out of the fed minutes today? guest: we know that nothing happened. it would be interesting to see how divided they were in their discussions. what we have seen recently is that janet yellen has come out and made some pretty strong comments which must be interpreted in some ways as slapping down hawks, the india fomc. her recent speech was extremely dovish, of course. it will be interesting to see how the divisions are. that being said, markets have moved towards what has for quite a while been the oxford economics view, namely two hikes this year. we stick to that. betty: how does that make sense, then?
economists expect rate hikes. janet yellen is talking like a real dove. how does that make sense? gabriel: even for a real dove, for whom clearly unemployment is the big traumatic issue, if you want, unemployment continues to fall. the participation rate is edging up. pay is edging up. is not blooming as we would like but doing reasonably well. withdrawalcontinued of accommodative policy is the right thing to do. janet yellen is not stupid. she approaches things in a different way, but she's not stupid and she knows it takes a long time for monetary policy to work, and even the dovish central bank manager may need to take some steps towards
tightening or less loosening. central bank governor that has been in the headlines is the swedish central bank manager. he did a speech earlier titled " time to rethink." he outlined a series of potential changes, inc. looting switching the inflation target from headline price growth to measure the factor out interest harmonized measure. he's thinking of reintroducing a target interval. he has been severely criticized, hasn't he, by a number of people including paul krugman. it shows what is going on inside the heads of central bankers. things: there are two that he did. the first is, he is laying a claim to regulation.
the second thing is what they are showing is, they are open to of differentlot things. clearly it is a problem for them, but they have not reached their inflation target. sweden's economy is booming, but their inflation target has not reached. reached. there's a real issue there. they are not going to raise the inflation target as some people have suggested. they might change it to a target they think is better. mostnk perhaps the important change would be to reintroduce the interval, having a point target -- lovely piece on helicopter money, it's all the rage. you wrote an extensive piece on
what are the options. very briefly, are we heading in that direction? our global central banks really heading toward telecopter money? gabriel: i think there is a child balloon from the bank of look at thef you academic and public debates, it is being mentioned more and more. a lot of people mean a lot of different things when they talk about helicopter money. mean is thed ministry of finance borrows in the central bank and buys something from households and nonfinancial companies. that should work well, and i think we will see a change towards that. don't know when. probably japan first, maybe eurozone. mark: nothing's out of the question, it seems these days.
betty, that's what's happening here. how does it look on your side of the pond? betty: the fed minutes will be out at 2:00 p.m. eastern time. we will have full analysis on "bloomberg markets." the st. louis fed president jim on bloombergbe television and bloomberg radio. now we seem to be solidly higher among the three indexes. abigail? the s&p 500 and dow, the nasdaq has been trading higher all day largely due to strength in the biotech sector. a huge surge. this comes in the sector's big bear market from its peak last july. a pretty predictable,
consistent downtrend. maybe we feel more bullish trading action ahead. the more likely possibility is a continuation of that era market in the weeks or months ahead. -- bear market in the weeks or months ahead. betty: what is taking the biotech's higher? il: all the big names are participating. bloomberg biotech analysts told me also what could be happening here is allergan is saying they want to focus on r&d acquisition in the wake of the pfizer breakup. betty: thank you so much. abigail doolittle at the nasdaq. vonnie quinn has more from our news desk. the obama administration has speeded up so-called surge operations for resettling syria.
end of september ever, president obama wants to bring 10,000 syrians to the u.s. organization predicts it will contract 1.9% due to low oil prices and international sanctions. skepticism about the european union may affect the outcome of a referendum in the netherlands. nations -- many in the netherlands oppose it, saying it is a precursor to allowing ukraine to join the eu. the prime minister of belgium is trying to reassure belgians and foreigners the city of brussels is safe again. the city subway system and airport are getting back to normal operations after last month's terrorist attacks. the police and army are out in
to fighting terrorism, it is a combination of military intelligence and civilian intelligence. border control, civilian intelligence is not nato's responsibility, but we are reaching out to our nato allies and urging them to include the way they are sharing civilian intelligence. isk: to secretary-general meeting with lawmakers on capitol hill to discuss defense spending. countries pledged to spend at least 2% of their gdp on defense. in that interview, the secretary said it is an important pledge as global needs are expected to grow. working with nato allies to make sure they are making good on their pledged to meet that 2% goal. first, to stop the cuts.
then to gradually increase , then to aim at 2% in a decade. the cuts havehat stopped. after many years of decline in that declineing, has stopped. now we have to take next steps, to gradually start to increase. emerging all nato allies who spend less than 2% to increase defense spending, and this has been an important issue in my meetings in washington this week. you sympathetic to those who say the organization is too reliant on the u.s. in terms of funding and troops? nato is about the close transatlantic bond. for theimportant security of north america, but also the security of europe. together, when we
are united, we are the strongest military alliance in the world. and i welcome that more and more european allies are now stepping up, providing the forces to our new -- forces in europe. of thee providing 1/3 forces in afghanistan. afghanistan is the biggest military operation we have ever conducted. i think afghanistan also proves that european allies are stepping up for the united states when that is needed. nato taking foresee a bigger role in afghanistan, perhaps to save the syria -- doing the same things in syria? >> i don't see any nato role in the combat operations in iraq a
nd syria. i see the opportunity for nato to do more when it comes to building capacity in the region. jordan and tunisia, we are working with them, make sure they continue to be stable countries in the region. partly also to work with iraq, and we have just started training of iraqi officers, enabling them to step up their efforts to fight isil. nato can do much more of this. in the long run, it's a much more sustainable solution that we enable local forces to stabilize their own countries and to fight isil themselves. capacity is very high on the nato agenda. >> you seem to have a good relationship with the current president. how do you make sure your relationship, nato's
relationship with the u.s. into your's no matter who wins the presidential election in november? of --o is an alliance democracies. we have always been able to work together regardless of different elections in now -- in nato all ied countries. and what i would like to do is say what nato is doing. is making sure that both united states and europe stand together, and together we are strong and protecting each other and that is good for the united states and europe. >> what is the latest on nato expansion? process ofow in the inviting montenegro to join the alliance. we are aiming at making the decision at our summit and to have montenegro becoming the
29th member of the alliance. showing that we are continuing natork for peace, and enlargement has been a very important contribution to stability and peace in europe. that is of course important for europe, but also important for the united states. hasworld wars in europe shown that security in europe is also important for the united states. mark: the nato secretary-general talking with bloomberg's david gura. coming up in battle of the charts, i face of with joe weisenthal, taking a look at the yen today. ♪
papers and offshore tax havens has spread to canada. the world bank of canada says it has been this -- been investigating the bank's role in the manager. document suggested a number of politicians and celebrities use offshore accounts to hide their fortunes. thousands of doctors in the u.k. have gone on a strike. the doctors object to language in a new contract with the government having to do with extra pay for working weekends. as many as 1200 jobs may be cut. er has said it wants to steer customers to online banking, which is more popular than having branches. hillary clinton is speaking live right now in philadelphia. this is after being defeated in wisconsin last night by bernie sanders. she's going to be in the
northeast, rallying in her campaign. watch her remarks at liv.go. of the a look at some most telling charts of the day, what they mean for investors. you can access these charts by running the function feature at the bottom of your screen. kicking things off is joe weisenthal. of the bigw that one stories in markets this year so far has been the surprise rally in emerging markets across the board. we have seen currencies like the brazilian rail rallying contrary to the expiration -- expectations of a lot of people. and boj pushing back expectations of rate hikes. this is the emerging markets composite tmi. for manufacturing and services. if you combine them all and you
look at the emerging markets one, we are starting to see some gains. in march the emerging markets composite pmi jumped to its highest level in 10 months. while it is true that there has been some help, it would seem from central banks being in easing mode, there might also be rumblings of an economic comeback that would suggest this recovery is sustainable, not just something financial but something going on in the real economy. betty: mark? is the bank of japan close to intervening in the currency markets for the first time since 2011? it has been discussed by strategists. the yen has strengthened from 125 to 109 against the dollar. a 9% rally this year. many say, could the boj intervene?
we've got a brilliant bloomberg strategist who says, don't look at dollar yen. yen index, boj's that's far more interesting. it suggests japan will tolerate another 35% appreciation before authorities intervene. this is the boj index. 2011, itsee back in was about 130. today we are at 100. the average over the last 10 years is 104. we have not been at that average since june 2013. listen to what our bloomberg man is saying. the bloomberg yen index could rise another 35% before the boj intervene straight when it comes to intervention, who better to listen to than shinzo abe, who reportedly on tuesday told "the thatstreet journal" countries must avoid devaluation
of their currencies. if you want to find this of duty on the bloomberg, #btv832. betty: you don't know this, but i did not hear part of it because my earpiece went out. i'm going to give you the win. it would be unfair to go against mark if i didn't hear everything. that does it for "the european close." you're up, mark. there you go. are at 2:00 p.m. eastern time. mike mckee will be in washington breaking it down. don't miss our exclusive interview at 3:00 p.m. with the st. louis fed president. ♪
>> from bloomberg world headquarters in new york, good afternoon. i'm scarlet fu. alix: i'm alix steel. pfizer and allergan officially walk away from their 160 billion dollars merger, a major turning point for the justice department. after gold's biggest advance in a week, the precious metal is retreating. good news and bad news from one of wall street's most watched bank analysts. an ugly first-quarter anticipated. scarlet: we are halfway into the u.s. trading day, so we need to head over to the markets markets desk, where julie hyman is keeping track of the recovery rally in stocks before the fed minutes come out in two hours. julie: