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tv   Bloomberg Markets European Close  Bloomberg  May 10, 2016 11:00am-12:01pm EDT

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european close on bloomberg markets. support, students with dyslexia can survive. womansay i am a better because of this journey and joslin is an amazing woman with much to give the world. >> i get to ask questions first. you talk about how your daughter -- it was a stupid test and she didn't want to do it. all of these children will say there is this anxiety, etc.. but she read adequately so she was not identified as needing intervention. intervention,he she went from the 16th percentile to the 75th percentile. she could go around
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in the middle never being recognized. it was only the concerned parent that was able to do so. would you elaborate on that? younce julie: energy and financials are doing well. part of this does have to do with earnings. we don't have the same pace of earnings that we did over the past several weeks. that is coming up by five percentage points. earnings beat estimates.
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international flavors and fragrances are up 1% in that was enough to beat estimates. we are talking about stocks rising in this is recovery. there are a number of new records for stock. stocks were at new highs today. this, someally like of these large caps are meeting those milestones. of a talk about oil prices today. it is now hanging onto those gains after 2%. that is helping energy stocks as well. takeover,n we saw oil we saw this increase. julie: flip that. that is what we were seeing earlier in the session. oil was languishing. we saw everything flip around.
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gold is now lower. the 10 year yield is rising. prices are going down and the dollar is rising against the yen. that was the key relationship between that and oil. rise, dollar started to -- now i am getting confused, that he. -- any. index,look at the dollar we saw it go down as oil higher. here you have the mix. -- fixed. -- we've seen the fix move lower. we have been seeing a lot of investors predict a return to volatility. that has not materialized. mark: we haven't got what you are experiencing, 17 of the 19 industry groups are rising on the stoxx 600.
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it was 1.4% higher. it's a busy day. profit targetss to include restructuring charges and its primary insurance unit. their losses on the investments. that caused earnings to miss estimates. shares are down by 2.3%. that's the most since early february. it's now trading higher. it's up by a half of 1%. what a turnaround for the german steelmaker. what happened earlier was it cut its profit forecast. there is a glut of chinese exports. it beat estimates. there are trying to turn around and make it a more diversified industrial group producer. they have been hurt by cheap chinese steel.
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that caused cut prices in american. we turned around there. we finished with the big employment companies. we spoke to the chief executive earlier. that companies in the u.k. are increasingly sensitive about hiring highly skilled workers in the finance industry in the lead up to the referendum next month. the biggest ebbing company has not experienced the material impact. it reported a source of revenue in alignment with expectations. there is a slow recovery in france. companies are hiring. that is interesting, that companies are reluctant about hiring highly skilled workers, particularly in the finance industry ahead of briggs.
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-- brings it. they are hesitant. betty: we're going to talk to the head of the u.k. company later on to talk about brings it. it.brex taylor. parliament of france has extended a state of emergency. police have more power to make arrests. it will cover the tour de france. for the first time since the end of the cold war, germany will expand its germany. they will add 14,000 troops. moreny has been taking a ambitious goal in mobile crises. president obama will travel to japan.
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he will diversity president to visit hiroshima. a white house aide says mr. obama will not apologize for the bombing. he is going for the g-7 summit. hillary clinton and donald trump are in a tight race in three swing states. clinton leads trump in florida and pennsylvania, trump leads in ohio. statistically, they are too close to call. no one has been elected president without winning two of those three states. the brazilian impeachment processes back on track. the lower house had changed his mind. there will be sessions against the brazilian president. the senate votes tomorrow. illegallyused of using state banks to plug a hole in the budget.
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dayal news 20 for hours a powered by our 2400 journalists. thanks a lot. we have much more coming up on bloomberg targets, the european close. we are looking at the bloomberg dollar index. this is a five-day winning run it. it has come to an end. it is falling today. what a run it's been. it has risen by 1.5 percent.
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mark: i am mark barton. you've got some, we've got rain. lucky you. betty: i am betty liu. this is the european it's time for the bloomberg business flash u.s.job openings in the have risen for the second highest level on record. the number of jobs waiting to be filled rose to almost 5.8 million in march. demand for workers has remained steady. lockheedhas told martin to fix quality control measures in ships. delivery ofayed the a ship. secretary has reduced the rope ships that will be built from 40. a springtime come back has not come back. salesn -- same-store
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fell. comparable sales were down 10%. gap is the largest apparel retailer in the united states. that is your bloomberg business flash for this hour. mark: is slow global growth the new all? -- new normal? there were prospects for higher interest rates. says global gdp growth will be around 3%. that is below the imf projections. high. how are you feeling? how are you feeling about the global economy? neil: i think the global economy
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is going to be more of the same this year. not too cold.ot, there are side risks. the imf and the world bank have enunciated those risks that may commodity prices and the oil price slumping again, there are a range of things. china was the primary concern at the start of the year. i think we've moved away from that. price unwound this cycle. had the ecb come through with some measures in march. we had a very devilish speech from janet yellen -- dovish
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speech by janet yellen. think the markets are saying we are back to a new mediocre. whatever you want to call it. the global economy is still uncertain. no real areas of the world economy that are he sitting major growth. i guess more of the same. the unknowns is the referendum. mark: the economic body said the economy is going to grow less this year. , getid if we see a brexit rid of growth. you are pro-brexit. vote out. going to why would you want to sign up to
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that onion and/or union any criteria is an economic disaster. it has produced low economic group -- growth and high unemployment. their massive social problems in many countries. i think it's down to the way the monetary union works. it's not creating jobs are economic growth. to the itselfing out of this. once you sign up for that, the argument is the u.k. manage its an affairs or be subject to economic scenario. it said that we are facing an economic armageddon if we pull out.
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i think that's incorrect. the truth is the opposite. for a whole range of reasons. not just economic. betty: there are people say you are training one dysfunction for another. you may as well go with the one and try to fix that. this is by leaving. neil: why would it be dysfunctional? i would it be? betty: why do you think so? neil: you have control of your own affairs instead of unelected officials. explainaghi does not his interest-rate policy. clearly, the monetary union has been an economic disaster. why sign up for that? it's not just u.k. that is thinking this.
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there is a poll that said a number of countries, they want a referendum. countries like france and italy, there is a growing percentage of people who want out. they feel detached from the eu. they feel they have gotten a bad deal. looking greece. look at other countries, italy, france, spain. they have had low growth and high unemployment. why would you want to sign up for that? the alternative has got to be better. betty: ok. i didn't want to turn this into a brexit conversation. i'm sure mark is comfortable with that. the boe and the government, what would they do differently? what you think they would significantly do differently to steer the economy that they cannot do right now being part
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of the union? neil: we are semi detached. europeanhave the courts. i think that for a number of it's ases, they tell you customs union. it's a free tape area -- trade area. the analysis done by the shown britaine would be better off outside. matterortant thing is no what the economic out come, it's controlt that you take of your own policies. at least u.k. voters have the opportunity to get rid of those
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people. the eurozone, it's difficult to get rid of european commissioners. it's difficult to get rid of mario draghi. this is why spread concern across -- widespread concern across the eurozone. the understandable given youth unemployment problems. betty: this is behind us. mark: 41% don't know. the probability crunch is still in favor. it's the bloomberg machine. it's numbercrunching. neil: i think you need to check youfuses in the machine
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think the percent to remain as much too high? i do follow it. it's very useful. that includes the president and everyone else. be a disasteruld during how come the probability is 77% that we will stay? betty: we will come back and debate more. we have more economists like yourself going for brexit. it's good to see you. hotels, shares are jumping on the london trading debut. investors so interested? ♪
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mark: you're watching bloomberg markets. i am mark barton in london. betty: this is the european let's talk chocolate. mark: shares her story today on the london trading debut. thestock rose 33% on investment target. is $322e of the country million. 33%. the jew expect that? did you underprice it -- did you expect that? did you underprice it? in the morning i am going up to our chocolate factory. i am getting back to basics. that's we're trying to focus.
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it's a nice warm welcome. betty: did you leave some money on the table? intention, it still to remain as major shareholders. we have a potential equity stake in that respect. we are line the new investments. we are happy. mark: what other assets do you have? i was reading about your chocolate bars. he raised 7 million pounds. how do they work? a box of chocolate as interest payments? are not going to cash out or anything like that we have a phenomenal loyalty rate. upon holders are plowing back their investments each year.
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they seem to be very happy with it. goodll put your money to use inside the company. we will pay you a return in chocolate. mark: what a wonderful idea. i'm sure that he would love that idea. betty: i'm waiting. mark: i want to talk about the referendum. we were just talking about why we should leave the eu. are you for or against? it decides to leave the eu, what impact will it have on your business? angus: we are independent as a brand. we want to keep people happy with our chocolate. follow theire to hearts.
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i don't think it would impact our business. we are mostly u.k. focused at the moment. mark: what you going to be in the u.s. of ready can taste your -- so petty can taste your chocolate? angus: anything can be arranged. the plan is to be ambitious. we've got a long development path ahead of us. that's the least risk root for us to grow. we are warming up her international skills and copenhagen. later, he can apply our skills to large markets. mark: i've got to leave it there. shares are up 28%. ♪
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mark: you're watching the european clothes. i am mark barton.
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betty liu is in new york. the tuesday session looks like we will finish the day higher bying the stoxx 600 is up eight tenths of a percent. this is the stoxx 600 bank index. this the best way of showing the for banks that reported earnings today. -- credit these suisse was better than expected. it was not as bad as expected. deliveringnfident in plant cost cuts. he may wind down on market assets than originally planned. drop inorted a 29% profit. that was narrowly ahead of estimates. --y had a loss on the market
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financial markets division. look at the worst former. the french lender had a big fall today. that's larger than forecast. theet turmoil is curving asset management business. they are down by 2%. there is a stronger than forecast profit in the third order. net income fell by 21%. the bank report. there was something from the easyjet airline. they had a narrower than forecast t loss. there was a europewide capacity glut. that is weighing on fares. shares are up by 2.7% today. let's finish with pandora. not the music service, the
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danish maker of charm bracelets. it raised its forecast. still, revenue growth was 30% in that is decelerating from 40% last year. the industry is slumped from weakening economic growth. what a day for pandora. shares are up by 11.2%. should we talk retail? betty: let's continue to talk about the consumer. specifically, gap. did you own any gap jeans? it's hard to get back to that heyday. they came out with their preliminary results. you can see the chairs are falling quite a bit. that come back has not serialized.
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dropped 7%. old navy sales dropped 10%. he said he would turn around the company. you would start to see things materialize by this time. that hasn't been the case. there might be some consumer sentiment on retail. -- sellerses including macy's will report tomorrow. in the meantime, european markets are done. be heading fory a day of gains as well. abigail doolittle has more. we looking atail: a rally for the nasdaq. monster beverages on the best performing stocks today. they are buying back to million dollars of outstanding stock.
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this will be a modified dutch auction. on june 8.s this is near the stocks record high. we look at a chart of monster beverage. there is a slow-moving trending range. at some point this year, the could be some downside or bearish action. betty: nasdaq is up slightly. the index is rallying. tell us what is going on. abigail: ahead of monster cap adviser is the top for me a stock today. we also have priceline and expedia up. news, we of any real have a lot of internet names
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rallying with amazon hitting a record high earlier. we see the stock is range bound. this is something fundamentally specific. betty: thank you, abigail doolittle the nasdaq. taylor has more from the newsroom. finance have come up with their most detailed transport greek debt release. they're trying to get the imf to take part in the rescue. it calls for extra austerity measures of the country mrs. budget projections. greece is said that is impossible. the british trade deficit has not been this large since 2008. it widened to $19 billion in the first order. of aneinforce the picture economy driven by domestic consumption. the pound has fallen 6% this year. that should lead to exports in
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the coming months. to germanybassador has joined the chorus of americans calling for the u.k. to stay in the european union. fromoke to caroline hyde berlin. >> we don't know really what the impact would be. the unwindingwhat of the u.k. from the eu would be. it would be significant and there are a lot of unknowns to that process. that is not reassuring to markets. what we do know is we are all better off with a strong transatlantic alliance. we're better off with a strong u.k. in the eu. is junethe referendum 23. saudi arabia will pump more oil. the ceo of saudi remco says they will have out what this year.
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they will boost capacity by 33% in the next couple of weeks. they are leaving opec -- leaving fight forns in the market share. i am taylor riggs. betty: thank you. credit squeeze shares are jumping -- credit suisse shares are jumping. the plant cost cuts may wind down unwanted assets at a faster pace. they are the second largest bank. check out this chart. this is the chart of the hour on your bloomberg right now. clicking on right now. see how those earnings were split in profitability. mark: it's a great chart. it says that international wealth management, these are the areas that are the heart of
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strategy. they produce profits that the average estimates. that's a big plus. we spoke to the ceo earlier. france been -- prancing traveled to zurich. >> look what we are trying to achieve. international and asia-pacific have a good quarter. increasing margins periods not only did we grow, we had good assets. we generated one billion swiss francs. that's a big number. i don't think we have worse conditions then q1. billion targets.
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that does not seem so crazy anymore. is progressinget at ace. -- pace. we have savings already. we have the new structure that is working. we have the exit and we are very happy with it. that is a very pleasing result. icbm is a bright spot. m&a revenues have double. in revenue and we are number four in m&a. that is all very good.
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the capital position has been preserved. thea quarter where we had losses, i said we had to pull managed capital. show a been able to total loss of about half $1 billion. francine: it will sell 30% of the swiss unit? >> if you look at the swiss unit, it went from 14% to 16%. that is one of our top performers. we were able to increase profits by 12%. francine: you are confident you don't need to raise capital other ways? >> we are in a good position.
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we are in a reasonable, predictable scenario. we are in good position. we came from 10 point 00%. this is the highest we have ever had. francine: what does that mean for your dividend? we distribute about 40%. have very we attractive investments. in a country where interest rates are negative, 16% is very good. 24% international is very good. we are relocating capital.
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that is value creating. they're very keen to return. it's important that we continue to invest in very attractive global commodities. with: he was talking francine lacqua. they are returning capital to shareholders. i want you to take a quick look inside my bloomberg. we've got a chart on credit squeeze. -- credit suisse. over the last several years, pay attention to what happened in this the shares have fallen by 40%. that's compared to the other banks. they were also on the restructuring half they are kind of right in the middle. they are in line with deutsche bank.
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barclays is outpacing them by far in terms of the less bad scenario. there are fewer declines we see in share prices. they are all restructuring. it looks like what we saw today, they seem to be pulling ahead. my chart follows absolutely perfectly from that. this is our function on the bloomberg. it shows you management history. you can look at all the positions within credit squeeze. -- credit suisse. you can see the chief executive officer highlighted in yellow. he started his job on june 1 last year. you've got to look at this. 43% in theeturn is red.
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the industry is down by 16%. byis lagging the industry almost 30% since he took over. really quickly, i want to show you a lovely chart that shows the return on tangible equity. this basically measures the rate of return. the red light is the swedish letter. the white line is ubs. bank goingh deutsche back to what you were saying. is only marginally better. both deutsche bank and credit suisse have a long way to go to be more efficient at generating profits.
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i think we just had an ad hoc battle of the charts. mark: who won? betty: we both did it. mark: no comment. coming up, stocks could be headed for a downturn. how should people respond to a stronger dollar? that's next. ♪
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betty: it is time now for our global battle of the charts. we take a look at some of the most telling charts of the day. we just had our own battle. you can access these. off, danny is
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coming on again for us. >> when investors start to get concerned about low-quality companies, we are going for loss in the market. at the risk of sounding too pessimistic, we might be in the midst of that now. this is tracking a goldman sachs basket of pork belly companies. but what's happened every time before we have seen a market correction. we get this downward sloping line. that means they are underperforming and a correction. the red circle at the end, this is the past week. we have had declines of two percentage points. it doesn't necessarily mean we are going toward a correction, it means that investors are worried about if these companies can pay off their debt or not. ok.y:
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are you going to give something more positive, mark? mark: how can the bank of china respond to the strong dollar? the blue line is the bloomberg dollar index. i have normalized this. this pegs the question, if the dollar keeps rising, what's the pboc going to do? devaluationear of a you risk further destabilizing outflows. you can see the white line. this has been drifting low. this is at the same performance. asian currencies about performed them both. the pboc has been helped by the dollar's weakness. it's enabled them to weaken against other currencies. it does but a big issue on the
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heart of the idiocy. investors are uncertain. predictions could be against the basket for the rest of this year. there could be a drop of 12%. it to positive, i gave you. betty: you did. you get the win today, mark. finally. day losing streak comes to an end. betty: we've got a lot more ahead. pursuings done with big m&a deals. ♪
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betty: live from new york and london, i am betty liu. mark: this is the european close. allegan is getting its own injection.
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news -- stocks are up. they are buying back $10 billion in stock after they sold their generic business. betty: sales have declined 13% since pfizer walked away from the takeover. why buy back instead of merger? what else could they have done without money? it's a good question. why not another merger. >> they have been one of the most prolific acquirers out there. they are with these pharmaceutical giants. i think they are taking a pause right now. they are going to continue to pay down debt. i think they are also going to see me to focus on the company. there has been a ton of growth through m&a that they have done. it's an opportunity to take some the cash and i think they looked
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around the landscape. they reported results. betty: that can't be overlooked. we mentioned this earlier. they are so large at this point. the type of asset they would have to buy, every time you do one of these things, the next thing has to be huge. they didn't rule out doing a transformational deal. there is a limit to how big you can get through deals of the certain point unless you're going to get taken out by pfizer. mark: could they be taken out by some deals? drew: that they were willing to get the pfizer deal one point suggest they might be willing again. there are now so large that a potential acquirer has to be
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truly massive. pfizer was the only company out there with the ability to do this kind of deal. mark: how is the underlying business. through. through: a lot of the assets they have are focused on consumer medical products. botox is one of their top products. that's been growing for them. they are not as at risk of price pressure is other companies and products out there. they really focused on cash pay. that is a big advantage that they have. betty: are they a target at all? drew: he did say that he did not
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rule out a transformational deal. they were willing and ready to do this with pfizer. everybody was on board. it suggests they would be on board again if they had the right partner. betty: thank you. a quick programming. tomorrow, we are at the alternative conference in las vegas. we have an all-star lineup of guests. david weston is going to interview t boone pickens. don't miss those interviews. ♪
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scarlet: welcome to bloomberg
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good afternoon. i'm scarlet fu. alix: here is what we're watching at this hour. stocks are up around the world are in real story is emerging markets. they and in a seven-day losing streak arian scarlet: disney's red hot of the business will be in the focus when they report earnings. alix: the victims of a made up ponzi scheme are fighting to get their money back. scarlet: we are halfway through the trading day. let's head over to julie hyman.


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