tv Bloomberg Markets European Close Bloomberg May 12, 2016 11:00am-12:01pm EDT
four betty liu. mark: i am mark barton. you are watching the european close on bloomberg markets. we are going to take you from london, from brazil and washington in the next hour. here is what we are watching -- central bank decisions out of denmark, norway, and the u.k. today. how are monetary policy decisions dealing with the challenge of a slowing euro area economy, and the upcoming brexit vote? vonnie: donald trump and speaker paul ryan met face-to-face this morning, and the meeting went "great. will they" did on the same page? -- will they get on the same page? a new government set to take command of latin america's largest economy.
fact, on brazil, we have a new finance minister already. it is 90 minutes into the trading day in the u.s.. let's head to the markets desk were julie hyman has the latest. -- whenell, when list we last talked an hour ago, things started to turn down. that has continued with the nasdaq waiting the decline can we have a selloff in technology leading the decline there. tech is the biggest drag on the major averages. health care also down. each down about .5%. you have a split up about half. in the groups that are up and down, materials and consumer staples remain higher. one of the moves we have been watching has been monsanto after bloomberg news reported buyer will explore a bid for the company. there is also talk of a bidding
war. basf have been reports might be interested in bidding for monsanto. the stock is surging 9%. that is boosting the materials. on the downside, the biggest drags -- we were talking about the apple declined. nikkei reported that semiconductor chips shipments from june to december could fall 78 -- 70% to 80%. that has been weighing on apple, as well as suppliers. ge down, after j.p. morgan called it an underweight. gilead sciences sliding. if you look at the u.s. dollar ,ersus some of the commodities the bloombergs dollar index, if you can call that appear -- it is up slightly. up about the same amount we are
seeing the commodities the client today. mark: we turn to lower here. the stock 600 is now .5% lower. .elecoms of the best performers basic resources on the worst performers. it is a day of three tales from the european insurance industry, starting firstly with zurich insurance,'s switzerland biggest insurer. it reported first-quarter profits that beat the smith. the chief officer continues the overhaul. the shares up as much as 6.9%. earlier, they were up as much as 8.3%, the most since august, 2011. mr. greco came from this company a decline ofted 14%. that was larger than expected on lower income from its life insurance business, and after record capital gains from last year were not repeated.
chiefli appointed a officer in may, replacing mary el greco, who, as i said cap -- mario greco, who as i said, went to zurich. drop since 2009 -- the company that owns the u.s. insurer transamerica. it reported a big drop in traffic today -- profits today. , thee of three insurers egon. off, a vonnie: let's check on the first word news. taylor riggs has more from the newsroom. taylor: the first take on the long-awaited meeting between house speaker paul ryan and donald trump. rents previous said it went great, called today positive step toward party unity.
so far, ryan has refused to endorse the likelihood -- likely nominee. another attack in baghdad following bombings that killed 93 people. a twin suicide bombings hit a police station, killing at least five policeman. another 12 policemen were wounded. no word on who was responsible. islamic state said it carried out yesterday's attack. relations has two more pieces of debris -- malaysia says two more pieces of debris are most certainly from the missing boeing 77 flight. it is more than two years since the crash is believed -- the flight was believed to have crashed in a remote session of the indian ocean. i am taylor riggs. mark? mark: taylor. i am going to throw to vonnie. vonnie: thank you.
we are going to talk should near energy, because they found a new ceo. the company had been led by interim ceo near shares -- neil shares. joining me is my poly, alix steel, who is joined by charif souki for an exclusive interview. alix: good to see you. what is your take on the new ceo? mr. souki: well, i am delighted that the search is over, and i sco, but from. fu what i hear, he is a great guy, and nuts and bolts operator who has been very successful, and all of those things are exactly needs for the next eight months. i wish him the best, and i hope he puts the company back on track. mark: nuts -- alix: pets and bolts, operational -- that is what i'm hearing. what kind of vision what a nuts
and bolts guy have from the vision you had just six months ago? mr. souki: the first thing we need to correct is this emphasis on vision at this point of the situation. i think the most important thing that was facing cheniere in december was to transition from a development stage company to a company that would become an operating company. to put it in context, over the next three years, the revenues will increase two almost nonexistent -- $5 billion to $6 million a year. we would become, by a very just acant factor -- not part -- the largest purchaser of natural gas in the country, and we would be selling to cargoes every day of the year. these are enormous efforts required to transition from development stage to operating stage. we will end the process of doing this in december.
the vision thing, if you will, was for further down the road, 2018, 2019, when the company would generate free cash flow and the question was what to do with that cash flow. usco has a couple of years, and from everything i hear in the street, and people that know him, i expect he is qualified to do this, and i wish him the best of luck. alix: talk about what happened in just -- december when you are let go from cheniere. carl icahn claimed responsibility, calling your ideas harebrained, talking about your longer-term vision of the companies expanding to oil. what is your response to those kind of comments? thatouki: well, i am sure a company that is almost 2010, that wants to actually start a program where you would invest $25 billion,
and become one of the largest exporters of natural gas in the world might seem hair-brained, but at the end of the day, mr. carl icahn was prepared to value the company at $15 billion when he made his investment. but notwas harebrained, harp -- maybe it was harebrained, but not harebrained enough to make them from making the investment back in august. alix: he bought into it, so basically, what changed? those are strong words coming from him, right? mr. souki: it was unfortunate. i do not think it was called for. i think we both agree on the fact that he caused my departure. he wanted me fire, and i got fired. i think we agree on that score. alix: [laughter] no point inhere is being called harebrained or not harebrained. it is a fact of life. we disagree on fetish -- strategy for the future, and he prevailed. good look for him and the
company. i am rooting for him. i'm still a shareholder. not quite as large as he is. alix: he owns a little over 13%. you told me you all over 3 million shares and you will hold -- to five years. mr. souki: i wish the company best. when we last spoke, you mentioned that perhaps cheniere &a target. good m sco has experience with buyouts. you think his appointment makes cheniere a more likely buyout? mr. souki: no, i don't think so. what makes cheniere a more likely buyout is the fact that it is cheaper, but at the same
-- it30% of the company would be very difficult to acquire the company. the potential for cheniere is there. the first and we have to do is make sure the operations keep up and cheniere, for the last three years was voted repeatedly one of the best companies to work for in houston. unfortunately, with this organization of the last six months, that sentiment has abated, so i think the first co would beor mr. fus to reestablish the attraction of cheniere as an employment place, and to continue to make sure that all the operational things required would be put in place, and i think from his track
record, he seems very well-equipped to do this. alix: charif souki, good to see. thank you for joining us in london. charif souki, the former ceo of cheniere. vonnie: fantastic interview. it will be interesting to follow the cheniere story and see which strategy wins or what have won the day. that is cheniere founder, charif souki, current shareholder of cheniere. ♪
called the conversation a great conversation, the same words that rents previous, the rnc chairman used about the conversation. just to bring us the critical parts of the statement, they are saying it is why it is critical republicans unite around shared principal's, advance a conservative agenda, and do all they can to win this fall. they are totally committed to working together to achieve the goal and they recognize there are important areas of common ground, even though there are few diseases. that is how they characterize this. bank of england governor mark carney's warning of the repercussions of a potential brexit on the u.k. economy. our next guest says there are things impacting rockets much more than brexit feels -- fierce. joining us, robin kelly. there might be things dominating the market, but brexit fears play a huge row, with mark carney taking an hour out of his
press conference to talk about it, right? ms. kelly: certainly. we had a lot of influential economist getting behind the main vote, but none so more influential than mark carney. you cannot say he has a political bias, he has his year -- year to the ground, and yes to deal with the fallout of any breaks out -- brexit that might come about in june. looking at the last couple of years, there has been softness in the u.k. economy, and we fell into industrial recession just recently, and of course, growth is looking softer. you can blame brexit to some extent for that, but ultimately, to say he was very pessimistic about the outcome of a brexit is one thing, but then i think it was a little too optimistic to think everything would be rosy if, in fact, the u.k. decides to remain. at this moment in time, i think we could be looking at rate cut further down the line in any scenario. --nie: it was a unanimous
decision, but from what you are saying, it may be a mistake -- do you think there should have been a different decision than maintaining rates where they : i think it is a good idea to keep the rates when they are at the moment. i think to cut rates were to vote to cut rates at this juncture might have created a spiral that we might not have been able to escape from. i think it is more about a wait and see. you would like to think that mark carney's words would carry a lot of weight with the voters. higherd see a bigger pop in cable as we had toward the referendum and people look at the new term or from -- ramifications. i agree nobody can tell what the long-term or medium-term ramifications of brexit could be, the shorter term is easier to forecast, and mostly affected by that where it matters, in the wallet. swaps indicating
there is a 40% chance of a rate cut this year, no chance of a rate hike. is that similar to what you are thinking? ms. kelly: i think so, and certainly it has become more challenging for mark carney if we do see britain leave the eu because you will be met with higher inflation rates and lower growth rates, and you would have to make a decision as to which one is the worst scenario. i would imagine that lower rates are going to be coming in some way, shape, or form. i would expect to see votes to that extent, even if the u.k. designs to remain. thank you for joining us. brenda kelly, analyst at london capital group. vonnie: time for the latest bloomberg business flash, a look at the biggest business stories in the news. the obama administration has issued new limits on gas emissions that are tougher than those proposed last year, aimed at reducing methane lakes --
leaks from oil wells. it will cost the company 25% higher than called for in the original version. methane is said to be 25 more warmer thanes carbon dioxide when it comes to warming the commissary. jealous claims -- jobless claims went through 294,000. the highest they have been in more than a year. increase signals a more modest recovery lies ahead. copies have been adjusting headcounts after a first-quarter slowdown in demand. seven months ago, blackstone said it was expanding into online consumer spending. now it is pulling back. according to people familiar with the matter, several executives at blackstone finance have left. they are reorganizing to focus on the original mission, real estate financing. and that is your bloomberg business flash for this hour.
vonnie: live from london and from new york, i am vonnie quinn. mark: i am mark barton. this is the european close on bloomberg television. we are roughly eight minutes away from the end of the thursday session. we'll were up. we are now down. it has been a topsy-turvy day, a ,ay dominated by central banks earnings from a number of insurers. the stock 600 is .5% lower. the ftse, the dax, and the cac 40 are all down. there are other stories today.
to suspendnate voted dilma rousseff. michel temer is now acting president, inheriting the worst economy brazil has seen in decades and has announced he gonzalez.henrique we are joined by julia leite, can you give us details? julia: he is showing a big cut in the number of ministries. 30 ministries. now 20 are expected. the main ones were expected. very in line with what we have seen in papers for the past week or so. turned stocks have around. the real is weakening even
further. not that that means much. it could be selling on the news. what we know about the finance minister -- a harvard graduate and also a kkr person? yes, morales was the longest serving central bank president we had. he was very spectre, and he has made statements that he will try and thatize the debt is the most important thing, stabilize and the dead trajectory, and making sure everybody knows that brazil can pay its debt and getting it growing again, gradually. mark: -- vonnie: how is he proposing to do that -- has he come up with policy statements, or when it -- would it have been indiscreet to do that? julia: not yet. he has given broad strokes, but no actual measures. he might speak this afternoon. news dilma rousseff gave a
conference the nation. it sounds like she is in fighting spirits. she is. she spoke to journalists inside the presidential palace and then walked outside to speak to supporters along with former president lula, her mentor, and most popular politician, and basically said she would fight every step of the way, reiterated this is a coup and continued with the same speech she had been giving for a while. vonnie: are you hearing anything yet from investors, julia, please with these announcementsd -- pleased with these announcements? julia: not yet, but there are positive,. positive comments about meirelles, but what investors shy to keep in mind is brazil is in a rough spot. the economy is doing terrible, and he will not have an easy job, no matter who he is. leite, thank you so much. that is our sao paulo bureau chief there, bringing us up
today -- up to date with all the happenings in brasilia. speaker paul ryan is set to give a news conference in just a few minutes. they are giving up there. donald trump, ryan, and the republican national committee .hairman met this morning trump continues with meetings. we will bring you comments from paul ryan and the post-meeting next. you will be able to watch the event at a bloomberg live go. just type in live go on your terminal. ♪
he just had a meeting with donald trump and the national committee chairman. they all met this morning and paul ryan and donald trump issued a joint statement saying they would be working toward beating hillary clinton so there were not before years more of an obama white house. they act knowledged differences but we will bring you comments next. you can watch the event live as well. the secondis consecutive decline for the european equity market. the stoxx 600 was up slightly but from around mid take, the downward trajectory began finishing with another decline, the second dissected of -- the second consecutive drop. switzerland's biggest posted a
loss in zurich insurance -- posted a gain. generali reported a larger than estimated drop in profit on low income from its life insurance business and after record capital gains from last year, shares are down by 4%. aegon is down by 11% in the the owner of is transamerica and reported a 50% drop in profit with alternative assets and hedging backfired on volatility. what a day for the bank of england. his colleagues warned about the risks if britain votes to leave the eu. the bank of england cut its growth forecast for this year and next year and the year after with an inflation forecast in place. he gave a detailed assessment of the risks that could emanate
from a rex it -- briggs it -- xit saying itre could cause lower growth and hurt capital inflows and may result in higher funding costs. rateis our lovely interest probability function for december. we will come back to this because paul ryan is just about to speak. >> every year from drug overdoses than car accidents. we have got more of our fellow citizens dying every year from drug overdoses than they die of car accidents. today, the house continues to work on legislation to address the heroin and opioid epidemic across this country. who were at the press conference yesterday, you heard from susan brooks and bob all authors of two of these missions. all told, by the end of this week and we are acting on 18 bills to deal with this. i will sign one of them today. the transnational
drug trafficking act which allows prosecutors to go after drug traffickers in foreign countries and we believe their drugs will make it to our shores and that's going to the president desk today. the reason we call this is an epidemic is because it cuts across all demographics. it affects families everywhere in america. athletes, they get injured and then they are prescribed medication. before they know it, they are in the path to dependency and addiction. we passed a bill yesterday introduced by pat meehan of pennsylvania to help students and parents deal with these dangers. you can be born with a dependency. this is the saddest story of the mall. that happens every 25 minutes in this country. these babies struggled to eat or breathe. yesterday, we passed a bill introduced by evan jenkins of west virginia to help protect infants and make sure they get a healthy start. the next step here is that we
will take all of these bills where passing out of the house and go to a conference committee with the senate and then we intend to send the bill to the president's desk. i hope the gym every one of you -- i hope that each and everyone of you will be back here when we sign the bill. we have to get on top of the opioid epidemic and i'm proud of the republicans and democrats that of come together to address this situation because it's about people's lives. it's about whole communities being torn apart and i believe we can win this fight and we must. questions -- jointe been reading the statement that you and donald trump put out a few minutes ago. what we can divine is that you want to beat hillary clinton. >> that is true. >> that cannot be the only point of unity. you are having trouble passing the budget on the house so how can you get on board with some of the rings donald trump is talking about? >> i think we had an encouraging meeting.
it's no secret the donald trump and i have had our differences. we talked about those differences today. that is common knowledge. is it weion is, what need to do to unify the republican party and all strains of conservative wings in the party? we had a very good and inter urging -- and encouraging conversation on how to do that. it was important we discussed the differences but it's also important we discussed the core principles that ties together. principles like the custom to think, separation of powers, the fact that we have an executive going way beyond the boundaries of the constitution and how it's important to us that we restore article one of the constitution. it's the principle of self-government. we talked about life and how strongly we fear about -- feel about this or principle. we talked about the supreme court. i was encouraged with what i heard from donald trump today. i believe we are now planting the seeds to get ourselves unified to bridge the gaps in
differences and from here, we will go deeper into the policy areas to see where that common ground is and how we can make sure we are operating off of the same core principles and yes, this is our first meeting and i was encouraged by this meeting but this is a process. it takes a little time. you don't put it together and 45 minutes of that is why we had a very good start to a process on how we unify. i read that statement as well and i'm still a little confused. are you endorsing donald trump? if you are not, what is holding you back? do you really have a choice? of unifying the republican party which just finished a primary about a week ago, perhaps more of the most divisive primaries in memory, takes some time. who are forople donald trump or ted cruz or john
ch so it's important we don't fake unification that we truly unifies aware. in the fall. i don't want to have a fake unification process. i want to make sure we really, truly understand each other and are committed to the conservative runcible's that make the republican party and built this country. i am very encouraged. i heard a lot of good things from our presumptive nominee and we exchanged differences of opinion on a number of things that everybody knows we have. there are policy disputes we will have. there is no two ways about it, plenty of republicans disagree with one another on policy disputes. on core principles, those are the things we discussed and i am encouraged. i think this is going in a positive direction and i think this is a very encouraging meeting. in 45 minutes, you don't litigate all of the process and
the issues and principles we are talking about. will he moderate his tone? >> it's important that the kind of conversation we had is between the two of us and no offense, but i don't want to litigate our conversation through the media. when you begin to get to know someone, you have a good conversation of trust between each other. i want to keep the things we discussed between the two of us because they are important and they are personal in some senses. that means we talked about what it takes to unify, where our differences were and how we can bridge these gaps so that we are strong as a party in the fall. [indiscernible] i am the speaker of the house and i am happy to serve in this capacity as the chair of our committee if the presumptive nominee wants me to.
the delegates would make that decision but i would honor the decision of our presumptive nominee and he expressed that interest. to what extent would you be prepared to endorse him? he has a good personality. he is a warm and genuine person. i met him for like 30 seconds in 2012. we really don't know each other. we started to get to know each other. i had a very pleasant exchange with him. there are things we really do leave in as conservatives like limited government, the constitution, we believe in the proper role of the differences and the separation of powers. we believe in things like life. not everyone is pro-choice and our party and we accept all comers but we are a majority pro-life party and these are things that are important to us so we had a good exchange on these kind of issues.
he is having the same conversation with the senate right now. our leaders met with him and everybody expressed opinions and exchanged ideas and the point is that we are off to an encouraging start. it's important we get ourselves to full strength so we can win in the fall because the stakes could not be higher. it takes more than 45 minutes. >> [indiscernible] issues inussed those great detail. >> you have defined the modern conservatism as pro-choice and pro-trade and immigration. when you say few problems, are you going over these rather sizable differences? represent a wing of the conservative party, you could say. he's bringing a whole new wing to it, voters we have not
had for decades which is positive -- which is positive. can we agree on a common core principles that unite all of us? we will have policy disputes. there is no two ways about it. mitt romney and i did not agree about everything in 2012. i'm not interested in litigating the past. i'm interested in going forward and seeing where the common ground exists to major we can have a unified republican party. there will be different republicans would different views on various policy ideas. can we unify on common core principles that make our party? the principles that built this country -- i am very encouraged that the answer is yes. >> [indiscernible] >> one more over here. sorry, the lady first. >> [indiscernible] you just mentioned millions of new voters he is bringing in. how do you interpret his success?
will it mean the fundamental realignment of the party? >> it's really unparalleled. he has gotten more votes than any republican primary nominee in the history of our country. this is not over yet. he has not gone to california yet. it's a remarkable achievement. whatuestion is -- this is we can be a party to helping -- how do we unify at all? it's a big and growing movement. how do we keep adding voters while not subtracting any voters? to me, that means a positive vision based on core principles, taking those and applying them to problems facing our country today in offering people positive solutions and speaking to people where they are in life and addressing their anxieties and showing we have a better plan. a hillary clinton presidency
would be a disaster for this country and it's effectively a third over, term. the other thing we all know is most americans do not like where this country is headed. thinkout of 10 americans america is on the wrong track. we agree with that. unifyestion is, can we around our common principles to offer the country a compelling and clear choice an agenda going forward so the men and women of this nation get a real and honest choice about how to fix this country and get us on a better track? i am encouraged we can put that together. i will go one more in the back. yes. you got here late. >> [indiscernible] you said donald trump is not ready to support your agenda. did he change his mind today? >> we talked about all of the issues. our policy teams are meeting to
walk through details. this is a process. we just began and i'm very encouraged at the first meeting of this process. going forward, we will go deeper into the policy weeds to make sure we have a better understanding of one another. thank you very much, everybody. that was speaker of the house paul ryan. let's go to our congressional reporter who was in washington, d.c. and has been listening everybody was wondering what paul ryan would say about this apparent 45 minutes with donald trump meeting. they agreebout how on certain things including separation of powers and the supreme court. he did not quite say how exactly they were going to iron out small things like the details of hollis a. >> -- of policy. the staffend, he said
will meet and iron out these policy differences. the gap is huge. the donald trump advisor sam about yesterday talked the donald trump economic policy creating a $7 trillion service -- surplus. most experts think they will cause a $10 trillion hole in the deficit. paul ryan has made his name by proposing to partially privatize medicare and partially privatize social security. there are huge differences on those basic items. donald trump has gone back-and-forth on whether he would increase taxes for the wealthy. paul ryan has always been consistent in talking about dropping the top marginal tax rate as part of an overall comprehensive tax reform. there are huge differences that remain but paul ryan was very up heat in saying he is encouraged by the conversation with donald trump saying he wants him to be the convention chair. it looks like they are making a push to unify at the november
election. vonnie: he said donald trump is bringing voters that the conservatives have not had in decades and called him genuine. take to come it out with a set of policies? former speaker john boehner is saying that paul ryan is being cautious to meet with donald trump and will mold his policies. will donald trump allow him to do that? >> he might to a certain extent. we are seeing him back off about a complete and total ban on muslims entering the country. paul ryan was among the first in the republican party to oppose that and now donald trump says it was a suggestion and may be short-lived. donald trump is showing some willingness to compromise. the real deadline for all of this will be the convention in the middle of july in cleveland
where the party will work on its platform. there will be an opportunity to debate that platform among the delegates. interestingises an point that donald trump bringing new voters into the republican tent and when you expand, it becomes harder to be ideologically pure on issues. they need to find out where the common ground is and what it means to be a republican or is the party changing completely from an internationalist wrote choice party to a populist one that donald trump might represent. how much does it play into paul ryan himself might be contemplating his own presidential bid in 2020? does that play into events right now? >> i definitely think it does. if donald trump or to lose big, paul ryan would immediately become the favorite in 2020. he has a very strong following.
speakerof being house is rife with possible pitfalls as john boehner knows all too well. paul ryan is having trouble passing a budget right now. the fiscal bills brought out once bigger and paul ryan has to find a way to hang on. if he does, he would be the favorite. to closelyciates with donald trump and he is repudiated by the voters, that could hurt his career and the republican party to patch itself together if donald trump goes down in flames in november. vonnie: thank you. apparently, donald trump has left the capital. boehnerer speaker john is speaking in las vegas at the salt conference. we haven't bringing you coverage of that. he claims that paul ryan was being cautious in meeting with donald trump. he said paul ryan will help change the donald trump policies and he says thank god that guy
from texas did not win. john boehner in las vegas. mark: let's get back to the issue of central banks with the bank of england. could it be that the next policy move is similar. norway is expected to cut in september and investors have priced in the next moving u.k. rates as a cut. this is what the governors at both banks had to say today. >> i vote to leave the european leave the vote to european union could have economic effects on exchange rate and demand and the economy. these are artifacts that could affect the appropriate setting a monetary policy. >> [indiscernible] rates are not excluded and is based on the experiences are countries have. >> there is a possibility of a negative spillover to global financial conditions because of
uncertainty generated in this country. that is a possibility. >> we are not very concerned about inflation prospects. presently, the inflation numbers are above the target of 2%. >> material slowdown in growth and notable increase in inflation is a judgment not taste on -- it is not based on a whim. it's based on rigorous analysis and careful consideration. it is the judgment of the independent mpc and all members. ofcourse, there is a range possible scenarios around those directions. that could possibly include a technical recession. the bank of england bases its inflation projections on britain staying in th eu but it bases its projection on it yield curve which takes into account that the u.k. could
either leave the eu or stay in the eu. he was stepping on eggshells today but the autumn line was that they cut their growth forecast for the next three years but the cap or inflation forecast. this is the reason why the growth forecast was cut. quarter, this is pmi data which has been flowing in the construction, manufacturing, and services industry. manufacturing here is contracting. the hope is that if we did slow down this quarter, we will then regain the growth we lost if great britain votes to stay in the you well -- in the eu. these are the key metrics -- it's all the more poignant today because these are the metrics the bank of england is looking 5% but it expects inflation to hit that target in two years. first rateths to the
hike, it is at 40 months. we were at eight months at the beginning of the year. you are looking at the norwegian central bank. norway came in better than forecast which is different. the central bank did not have to do anything. it cap interest rates at .5%. you have the norwegian rate of 50 basis points. the other scandinavian countries like sweden would be here. the governor said they would not rule out interest rates that are negative but cpi is still 3% in norway so they have not had to do it. they have the benefit of a massive oil fund, $900 billion they are taking some money
out of that fun for the first time in nearly two decades. at least it takes pressure off of the central bank and other countries could take a lesson there. also the krone, it's important to keep it week. mark: it was the biggest insider trading case in the u.k. and today, former deutsche bank broker was sentenced to 4.5 years. it is one of the longest prison terms ever handed down for insider trading. wereefendants in the case found innocent. to break it down as our enforcement and investigations reporter. thanks very much for joining us. it's the end of a long-running case. in you explain for us straightforward terms what has happened question mark >> today was the culmination of an 8.5 your investigation by the financial authority.
they started in 2007 and arrested seven men in a series of raids and charges proceeded from there. the focus of this case has been that the sec alleged certain insiders who were corporate rocher's working on potential takeovers and were passing tips. alleged to have made about $10 million together as a group. today is the culmination of that. we had a conviction monday and this sentence was handed down. mark: what does this mean for the regulators? >> it's significant because this was the verdict, they have five out of eight conditions -- convictions. pro -- prosecuting
in 2009 so it's a relatively short time where they grew quite a profile. these cases were incredibly complex and are based on circumstantial evidence. a smoking guny and it can take a long time to get to court. vonnie: the conviction rate holds up and how to the sentences compare with other convictions? one of them got the longest sentence for insider trading. two previous individuals got four years but i think it's a message being sent that this behavior will not be tolerated. a dim view ofken the insiders because it's a breach of trust element. this judge made that clear today when handing down the sentence. mark: thank you very much.
take a look at where european markets are. it was a choppy day and we had gains and losses but a loss at the end of the session for the second consecutive day. the europe stocks 600 was down and the leaving -- leading sectors, we had insurers releasing results today. zurich insurance was one of them aegon was another one. utilities were up and energy was up and that's it, the european bloomberg markets continues after this. ♪
>> from bloomberg world headquarters in new york, good afternoon. alix: here is what we're watching at this hour. zillow ushers in a new government after months of turmoil. in the acting governor turnaround worst recession we've seen in decades? scarlet: paul ryan taking steps toward party unification. casting doubt on the candidate's integrity. sitdown.us, a rare we're joined live in just a few moments. scarlet: we are halfway through the trading day and the u.s. lowss index are at their right now. julie hyman, second day in a row. julie: yes, and it has been accelerating here.