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tv   Bloomberg Markets  Bloomberg  August 11, 2016 10:00am-11:01am EDT

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bloomberg television. vonnie: we are going to take you from washington to london and cover stories that of france and china. here is what we are watching. oil trading lower after the iaea addicts global markets will continue to rebound this year and pickup in demand from refiners as they absorb record output. howlooko -- we lookout commodity is going on global assets. nejra: strategies and paying off and investors are warding the shares. the commerce business streaming entertainment and growth in the crowd and streaming revenue at alibaba. clinton lays out her economic plan for america's future. she will have a plan to grow the labor market by highlighting content but to interviews and donald trump.
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-- between her views and donald trump. let's head to the markets desk with julie hyman. fore: we have one record the moment today. that is the nasdaq, trading at least on the record on a closing basis at the moment. it did not touch the intraday record, but the number to beat -- actually, not quite at the level, but the numbers 55220 5.48. thes&p 500 also touched record on the closing business and came back down and the dow jones a little ways away, but coming back, fairly broad-based rally, consumer discretionary and energy shares leading the way after turnaround in oil prices. also watching a lot of individual stocks. this has been the story over the past month. not a lot of movement overall on major averages but dick stockton moves. let's talk about alibaba. the company has been
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diversifying, so on one hand, in thef 40% -- 47% boost e-commerce business but that only accounted for 72% of revenue. it has been building their cloud business, just like amazon in the u.s., and also building their entertainment business, shares of more than 4.5% and yahoo!, which has the alibaba stay, up more than 3%. macy's out with numbers that beat analyst estimates. the company also said they will be shedding about -- shedding locations. they will also do stock buyback to conserve cash and revenue came in ahead of estimates. l's also beating estimates. gross margin expanding as the company says they are managing inventory better. comparable sales telling about withlling about in line
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1.8%. we will hear from other retailers in the coming days, any arising. nordstrom reports they are higher. jcpenney later in the weekend we do not hear from the sears until september 1, but they have been rising. chesapeake energy agreed to give lloyd their barnett shareholdings to private equity and theyer operators will be escaping almost $2 billion in onerous pipeline contracts. they have generally been carrying down and doing asset sales to conserve cash. though shares up a little better than 2%. nejra: thanks. we are about 90 minutes away from the european close. let me show you the big picture on the gmm function on bloomberg. ftse 100 putting much unchanged. we did see it earlier snap five days of game, the longest stretch of gains since the rally pre-brexit in the runner-up to the u.k. referendum. a look at stirling, off by
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.201%, and we are seeing a euro-dollar pretty much unchanged. if we look at the long end of the guild curve, the 38 yield without six basis points on that and we know that this would give has hit a record low. let me show you what the stoxx 600 is doing. we are seeing stoxx 600 rise to a seven-week high, approaching .41% onbrexit high, up the stoxx 600. i went to talk about the dax because this has gone into bull this week.itory the big question is asked the rally gone too far, too fast? this is the relative strength index. we saw that go up above 70, suggesting that the dax was overbought. the last time it hit that measure and reached that level in november, tumbled 14% in the following three months. a lot of questions about this five day rally that propelled it
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into a bull market. i won tonto the dax, talk about a couple of stocks. two of the been -- the biggest gainers, one of 4.6%, so better than estimated profits. to exceedit outlook the 16.5 percent gold and the second quarter margins beat expectations. rwe, we will hear the second quarter loss, and it narrowed by 22% after an improved performance in the powerplant business and also cost cuts and one time lower tax rates. they have risen the most in one month, up 3%. let's check in on first word news with elisa parenti. elisa: hillary clinton is expected to play upper talks on job development and tech policy, when she outlines her economic plan today, it will be at a
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plant in michigan and she would try to make the case that donald trump's agenda would benefit him and his wealthy friends. bloomberg will have live coverage of the speech at 1:15 p.m. eastern. the white house is not commenting on donald trump's greatest accusation. the republican nominee said "you can blame president obama for the islamic state." donald trump: isis is honoring president obama. he is the founder of crisis. he is the founder of isis. he is the founder. thea: trump has blamed president and hillary clinton for creating a power vacuum in iraq that was exploded by islamic state, and ukraine is warning that russia's trying to escalate the conflict over crimea. ukrainian troops along the border have been put on high alert. vladimir putin is accusing the ukraine of engaging in terror tactics and has vowed to respond. russia annexed crimea in 2014.
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partsres flipping through of southern france and portugal. several homes have burned and hundreds of people have been evacuated. the airport in marseille had to reroute incoming flights so firefighting planes could take off and land. every on huffington will step down as editor in chief of "the huffington post." she is turning her attention to her startup after attracting investors in hiring staff. "the huffington post" was acquired by aol for 350 million dollars in 2011 and now part of verizon communications. news 24 hours a day, powered by more than 2600 journalists, and analyst, and more than 120 countries. this is bloomberg. vonnie: thank you. turning to the hunt for yield now, not exactly a new subject but the continuing subject. and an option of 10 year
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treasury yesterday. there is still interest. 2671 chart in the library. even though it u.s. debt is at the lowest since 2012, buyers include foreign and central banks with their records. the so-called indirect bidders [indiscernible] roughly 54% in june. for more on the foreign demand for treasuries, we are joined by ben mandell. trillion dollars in assets under management. this is a pretty phenomenal chart. it shows just how interested foreigners still are. is it because they have to be? we looked at earlier in the week out real-year-old in the u.s. are negative. ben: several factors drive that hunt for yield. one is the fact that in the world we are living in, the u.s.
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bond yield is actually a pretty decent yields, even though it is low in absolute terms, and they save a lot of interest with search for yield from foreign buyers. another factor driving that is the fact that pretty much ubiquitously, we are going through a. whenoing through a period monetary policy has been pretty easy, so look at all central banks across developed markets, .0% of them have cut rates the one that has not is the fed, where we expect to raise hike, so everyone is moving in the same direction on that keeps you relatively low. vonnie: what is so fascinating about this? it looks like there is no difference in u.s. yields in the world, but if you have to head to point -- to currency exchange, it does not look attractive. ben: another back to a look at is thatding upside risk u.s. inflation has actually come back.
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there is this idea that u.s. inflation is low and will always below. about 2%, and the fed preferred is 1.6% and rising. raisese wage and a tiny market comes the u.s. yields are a balancing act. you have foreign demand and policy pushing them down, but you have stable u.s. growth, if not gangbusters, plus, recovering inflation. i see a two-way risk when you think of u.s. treasury. nejra: talking about this hunt for yield, i want to shave a chart on my bloomberg, the berkeley high yield spread, showing the average oaf at the tie this in one year. we know the spread between high-yield then benchmark bonds. that coming down. mind, is going
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after high-yield worth the risk? ben: we think it is. youring where you express attitude toward risk is a more nuanced endeavor. wherenot as if we are in growth is so high that all risk assets perform. you have to choose what part of the capital structure do you want to reside in, so we like credits and high-yield credit under reasonable assumptions you are getting mid single-digit returns this year, even at current valuations. in the background, we assume overall default risks remained detained within the energy theor, in particular, and valuations do not seem overstretched given that in those factors. energylooking at the sector and oil, i want to shift this to emerging markets because i believe your view has changed a little. we had a strong rally over the
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past few days and has come off of it for emerging market assets . this is a nuanced conversation. what are you looking at that changes your view? : the big risk is global economy and at the center of year hasin the past been china, so you have seen some stabilization on the macro friends and people are no longer running today said in terms of capital flight from china, and ethics reserves have been stable, so i think that anchors the view or at least removes some downside risk from that. across the complex, you have seen a little bit of improvement. we are ambivalent in that sense very do have stabilization but not enough to overlook the fundamental factors and persistent drags on emerging market economies, so it is the type of thing when the tide
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proceeds, you will see u.s. been swimming naked and we like the higher-quality markets like the u.s. versus emerging markets. vonnie: even though we are at records are equities? think that europe is a good example, where you see some upside risk equities this year. if only they could fix what is theg on with the bank, so banking sector is the key to unlocking what is otherwise a decent scenario for european equities given the solid macro supported policy. those are what we typically like. nejra: what about european evaluations? they are rising quite sharp it the moment. ben: that is right. that is reflective of the fact that they have been doing reasonably well. ofhink there are a lot hedgers in europe to keep in mind that spillover risk from brexit, which has been contained
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so far, so these are things, in addition to valuation, we did cast a little aspersion on overall performance, so europe is another example where we see upside risk that also a lot of downside risk, so there is an ambivalence there. mandell, thank you so much. asing up, alibaba surges cloud computing and digital media initiatives show solid growth. we will hear from the cofounder and executive, next. you can see that alibaba is searching on that earnings beats. this is bloomberg. ♪
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live from london and new
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york. i am nejra cehic. vonnie: i am vonnie quinn. time for our latest bloomberg this is flash. more than 2000 southwest airlines flights last month will cost the carrier an estimated 54 million dollars according to the dallas morning news. southwest blamed a rather failure for the july 20 outage and the days of delays that followed. macy's posted second-quarter earnings that beat estimates. the largest u.s. department store company will close about 728 stores. macy's is facing sluggish traffic and the strong dollar is keeping foreign tourists from buying. bill miller is leaving mason after more than three decades. he is best known for beating the s&p 500 index for 15 straight years when the random mason like
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value trust. now he is buying legg mason as part of the $1.2 billion legg mason opportunity to rest. the miller income opportunity trust. that is your business flash. corporate news, alibaba is jumping after reporting quarterly revenue that beat estimates. the company's sales growth accelerated to 59% of investments in cloud computing and digital media and started to bear fruit. shares of 7.8%. up,aba's business held despite china's economic slowdown. alibaba'sspoke about home market lost our on "bloomberg ." >> there are $4.6 trillion of savings on the balance sheet of chinese households. this is because over the last
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two years, they have had real wage increases, not a lot of mortgage debt on the books, and this is all going to provide the foundation for a very, very strong gross of consumption. -- growth of consumption. nejra: i have drawn up alibaba shares looking at relative strength. what this shows is that the 17% jump in alibaba shares over six weeks has actually pushed the rsi to dover board level. you can see above that 70 line, saying that perhaps this is that some tipping point, but another thing i found interesting is that you can see the tips if you go along that blue line -- dips along that blue line in august and february, when there was concern and china and the yuan and the stakes whether investors as a proxy forba the chinese economy, so something to watch. chinese economy, alibaba and the
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relative strength index. still ahead, etf, talking gold and on fire this year. which one is approaching triple digit percentage gains. this is bloomberg. ♪
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you are watching bloomberg markets. i am vonnie quinn in new york. nejra: from london, i nejra cehic. tracking gold and silver and has been on fire, many posting triple digit percentage gains thanks to you -- low bond deals. joining us is julie hyman and michael reagan. take it away. julie: thanks. it has been interesting that we have seen this outperformance of some of the funds, especially since stocks and gold and precious metal do not go up to the same time but they have been this year. when you look at the etf and tracking precious metals, what
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are some of the better performing ones and how do you differentiate? few,el: there are quite a a lot of choices. the main distinctions are, a, if you want to lever up with one of or risky, most etf's, and then there was a breakdown between small caps, which they tend to call junior miners. and large caps, so to give you one that is both levered up and a small cap, junior miners, which may be double or triple the risk, basically, risk in the bottle, but it is jnug, the triple leverage up for the year. the best-performing etf that we are tracking up bloomberg, but really the abortive etf's this year is dominated by these --
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julie: so this is the best-performing, not just precious metal etf but etf, period? 900 something percent, but to give you perspective, it was higher in 2013, so it is down 8070% from that level very that is how volatile the funds can be. especially when you are triple leverage. for the last sort of them just among this, they do not want the triple faster, even the regular non-leveraged ones are doing very well. j is up 707, the gdx 170% and the junior silver miners is up 280%, so across the board, they had done very well. they done --ve obviously, the leverage ones are multiplying the underlying move, but particularly some of the junior miners, why have they perform so well? goldel: the most basic is
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and silver prices of the commodities themselves are doing well this year. it is interesting, the investment thesis for precious metals is depending on what date is and what people tell you what the reason is for buying them. this year, a lot is centered around super low bond yields, negative in many cases across the world and people looking at precious metals as a way to park their money where their chances of losing money is thanived to be less negative bonds and you are guaranteed to lose money, but at least in these, there is the chance of more price appreciation. days, and on the other the inflation had has not been necessary. what are the risks associated with these? etf was down from the peak couple of years ago. michael: the more leverage to add, input risk in a bottle without that leverage. these things are pretty risky
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anyway. there volatile, even the ones that are not levered, and to me, if interest rates are the reason, then that is one risk. in forecasting the price of precious metals, it is difficult. forecasting anything is difficult, but the precious metal forecasts, if you look at the ones we track and bloomberg, there's not much left in the rally in gold for the coming quarters and years. if you look at the forecast last year, they are about $200 below were gold is trading now, five dollars below were silver is so difficult to say. fore: thank you so much walking us through the precious metal etf. vonnie: thanks. still ahead, shares of valeant falling, down more than 7% following a report that it is the target of a criminal probe. this is bloomberg. ♪
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from bloomberg in new york and london, i am vonnie quinn. nejra: i am nejra cehic and you are watching "bloomberg markets."
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at first word news. alisa parenti has more in new york. hillary clinton release or 2015 tax returns. they told the associated press that she will release them in the coming days. clinton has hit republican nominee donald trump for not releasing his returns. trump said he will not release them until in iris audit is complete. democratic candidates for the house are in better shape financially than they have been in years. democrats competing for 40 open house seats have raised more than 635 housing dollars on average. that compared to a little over 300 68,000 for republicans, according to an analysis by the campaign finance institute. 30 will need to change chance for democrats to take majority. more than 30 people were hurt in a large explosion and fire at an apartment building outside washington, d.c. in silver springs, maryland,
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they had to rescue people from upper floors and some residents tossed their children from windows. several people remain missing. they are searching through the rubble. battle has won a legal over if they are responsible for tweets from islamic states. they may have led to an american death in jordan but they're protected from being treated as the publisher of information put forth by another content provider. in sweden, prosecutors will be allowed to question [indiscernible] about rape allegations and will take place in ecuador embassy in lauren -- in london. that is our he has been holed up since 2012. he says he thinks he will be as she guided to the u.s. if the ghost to sweden. recently released e-mails stolen from the democratic national committee. global news powered by more than 2600 journalists and analysts in more than 120 countries.
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this is bloomberg. vonnie: thanks. shares of valeant cleansing today. it is a real cease all right for valeant. ride for valeant. prosecutors are investigating whether they product insurance by hiding ties to a mail-order pharmacy, according to "the wall street journal." we are joined by cynthia with the latest. didn't we just hear from valeant saying it would be fine? cynthia: with the purpose of how restructure the process, he did give enough be called earlier this week. that was largely because he reiterated earnings guidance and there has been a lot of expectation that the company would not actually make their earnings guidance. what was positive was not negative, if that makes any sense. they basically converted more bad news earlier this week that there was a little relief in shares earlier this week and now
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ongoing investigations, which we knew were around, but the magnitude and how they could impact valeant is haunting them. criminal probehe that is the official and so forth, but are shares dropping on that or more on the conversations that valeant is trying to have with bondholders? if you look at my bloomberg, you showsat the function exactly what down in tabs on principles, loans, and he said it is a $1.7 million payment. cynthia: they paid 1.7 billion annually in interest payments. that is their expense to carry that much debt. you need to pay some of it and not carry all of it indefinitely any to show progress. they say they will pay $1.7 billion of debt this year and they outlined a plan to potentially pay as much as $5 billion in the next 18 months. the problem with these investigations, be them criminal
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ofcivil, is the magnitude fines and where the money comes from and then what happens? are bondholders and government trying to get a piece of it? but they are renegotiating debt agreements now to make it or give them a little more flexibility if they are not able to make earning numbers they promised. this is part and parcel when a company is in a tough spot that they try to a good bondholders, and they said they would do that earlier this week. question is whether bondholders will use this information to push back and say, give us more assurance that we will be getting our money back eventually. nejra: some analysts you have been speaking to have said that the latest news could hurt those that negotiations, but to get , it to the financial hit valeant with toulouse, how much money are we talking? cynthia: i have seen estimates up to $1 billion in fines and it is impossible to know because
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the reality of what needs to come out over the course of the investigation is the extent to which we were doing anything that may have been abusive and we just do not know that. that is what we have to understand better and i think that is what investigators are focused on. yes, was the relationship to cozy and perhaps what was philidor doing and how is that impacted insurance? that is the interplay and the extent of the interplay that needs to be determined, that would been written -- that within determined that binds they are looking at. nejra: this is not the only area where valeant faces scrutiny. cynthia: there are several investigations. to be clear, i think what has to happen is to prove that valeant was party to that, to what philidor was doing and valeant's relationship to that. ability in that, so there are a number of investigations and this has been
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unknown thing. they said they put the forecast cap guidance and standard accounting guidance, specifically because litigation was an issue and they had ongoing investigations that could cost money along the way, so that has an percolating. just lookedhat we at, $1 million, even if it were that much, doesn't seem like all that much. cynthia: it depends. it depends on how the earnings grow and if they can accelerate earnings in order to use their own cash to pay the debt. it depends on what they're able to sell to pay the debt. if you look at what they have to, it is about three to $3.5 billion in 2018, which is that that you would usually talk to your holders around 2017 and do it about one year out, so they orneed to do substantial -- to really show that they can drive their earnings growth, so one billion may not sound like a lot of money, but in terms of
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what and how everything is balanced, it could be a problem. vonnie: cynthia, thanks. coming up, democratic presidential nominee hillary clinton will outlined a plan for the u.s. economy at 1:15 new york time. we will have live coverage, coming up. you will get a preview of what she is expected to announce. this is bloomberg. ♪
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nejra: you are watching bloomberg. i am nejra cehic. vonnie: i am vonnie quinn and this is your global business report. nejra: it has been a roller coaster year for that u.n. after china's surprising devaluation of currency. there are still questions. vonnie: tight race in the luxury
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car market. mercedes takes a slight lead over bmw in the final quarter. nejra: the u.s. presidential candidates have conflicting ideas on what to do with the estate tax, abolish it or raise it? we will show you both sides. vonnie: it has been one year since china shocked the financial world by devaluing the yuan. it is about capital fixes, controls and increased interventions. it was controversial, but they say the yuan will appreciate. >> we do not agree with those who are panicking about chinese growth and flows. this concerns are relevant in the second half of last year, but by now, they have stabilized and capital flows are turning much less negative and they will be stronger in the quota and they will be in that demand in the coming few months and it
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will re-appreciate. not massively but it will not be as weak as most of the markets are saying it will. in earnings, alibaba posted quarterly sales that rose 59%, beating estimates. the court e-commerce business held that, despite china's slowing economy, and revenue from cloud computer services soared. like amazon, alibaba is positioning cloud as one of their fastest-growing businesses. second quarter profit rose on most on percent and give the credit to the u.s. unit t-mobile, where sales have merged -- have been merging. buriede has been subscribers from other carriers without squeezing the company's bottom line. mercedes-benz is on track to reclaim luxury car title from bmw. mercedes deliveries rose 12% in the first once of the year and a bmw sales grew slightly less than 6%, giving mercedes at
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30,000 vehicle lead over bmw. the ends of view has been that luxury car sales leader since 2005. -- pm deb you has been the luxury car sales leader since 2005. vonnie: time for our bloomberg critic. the guy by the name of john rockefeller, a whole industry counselingit was taxpayers and how to play the game. now the presidential race gives americans a, abolish the tax or make it tougher? the 40% currently applies to $10.9 millione for couples. those were sent as part of a 2000 10 deal between president barack obama and congressional republicans. hillary clinton has called for rolling the rules back, to where they said the deal with the $.5 million for individuals or $7
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million for married couples. once to repeal the tax altogether. here's the background. the with the individual who wants to avoid estate tax can choose from a handful of legal maneuvers based on the tax code. one called the sold -- one called the so-called [indiscernible] toows extremely rich people use tax as errors. another includes the jackie o trust. it sprang went the great war raved in europe and president woodrow wilson needed cash for an arsenal. there were concerned that the fortunes amassed during the 19 century gilded age might sponsor permanent american plutocracy and some supporters today cite the same fear. any americans are considered the money to be an unjust wording on families in the form of double taxation. many republicans would like to abolish the tax altogether. while obama, and clinton, has
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argued for increasing the rates. you can read more about the tax -- the estate tax on ni quick on the bloomberg. had to for more stories. nejra: breaking news about the dow jones average rising 105 points to top the record set on july 20. i wonder if we can get a chart up to see where we are with the dow jones? at 18,5985 of 1%, approaching that level and we have to s&p 500 moving toward a record as well. staying with the candidates plans for the economy, hillary clinton is set to outline her plan today at 1:15 new york time and we will have live coverage. the proposals are expected to include investments in job creation, tuition free college for the middle class and making the wealthy and wall street pay
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their fair share. for more on what clinton will say about her plan and donald trump, let's bring in bloomberg's porter from washington -- reported from washington. are we expecting to hear anything new today? >> not necessarily. i think we will hear the contrast. she will describe the economic contrast in the way she has not done before and she will try to sharpen it, but she will paint donald trump as a candidate whose economic policies benefit people like himself, millionaires, and people in the financial industry and she will characterize herself as a candidate working to help the middle class, and i'm sure she will mention the minimum wage about trying to help families pay for the kids college, so she is using the obama playbook against mitt romney from 2012, where he characterized him as working for the wealthy. found another aspect i
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interesting is that hillary's fiscal prudence has come under criticism from economists. perhaps not directly but in terms of comments made previously. sahil: that is very true. her policies are in line with those who want to be fiscally prudent and pay for the things they propose, and there is a school of thought amongst progressive economists, and it is a mainstream on within the progressive economic world, just that currently, the united states can borrow at low interest rates. the 10 year treasury note plays , you would know, but the point is that many aggressive economists believe that the united states should borrow to pay for a big public works program and in the search of program that would not only build the nation's crumbling infrastructure. trump has called for doing, but that would create jobs in the process and they see an opening to do that, given the low interest on the 10 year treasury
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notes. vonnie: she is going to talk about the so-called trump loophole. what is this? sahil: she will be talking about things like that estate tax, things like carried interest, and parts of the tax code that wealthy people can use to effectively pay a lower tax rates. some of this goes back to what warren buffett talked about, about -- i'm sorry, about a higher effective tax rate than he does, so this is what she will hammer on as her overall aim to reduce income inequality and crackdown on wall street and make the wealthy pay more in taxes. vonnie: it is not that helpful to her campaign to have the likes of people criticizing it already before the plan is out there. either under economists supporting the plan -- are there other economists supporting the plan that will give weight to clinton's argument? sahil: certainly.
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she has no shortage of mainstream economists and democrats in the progressive world supporting the plan. i do not think that is much of a problem. ist the crewmen critique that she has not always been in line with the progressive wing of the party, even in the economic world of the party, in terms of her proposal. she is a little more centrist than a lot of them. she dealt with this in the primary and she did win, so he will super we go from here. kapur, thank you. the speeches at scheduled to begin at one: 15 new york time. we will have it on bloomberg television. check out elec on the bloomberg. you can see the top news, research, and social media content for the u.s. residential collection, along with the data from the latest polls. still ahead, getting a lot
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easier for u.s. citizens to travel to cuba. we look at how you can start landing a luxury vacation to the island. this is bloomberg. ♪
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a look at u.s. markets because we are hitting records today. we are for the dow jones and s&p 500. we had talks of previous closing .601%, gain of 114 points in the s&p 500 with a good share, up 2185. up .4 oft quite there, 1%. lots of reasons to travel to an frozen in time, but high hotels and modern -- but high-end hotels and modern
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conveniences is not among them. we have some of the secrets to planning a luxury getaway in cuba. in the past, the biggest challenge was just getting there but that is about to change. >> definitely. now you can hop on a plane with airlines like american and jetblue and get to havana in a flash and the paperwork is not difficult or cumbersome to fill out. the tricky part in finding a stay, there are a lot of reports of cancellations when you arrive and your reservation is certainly not on the books, and hotels that call themselves four-star and five star are not held to standards in cuba so it can mean different things. vonnie: what have you managed to find? nikki: there are great properties, but the best way to go is to book either through cuba travel network, which specializes in handholding for independent travelers, or look to an help you navigate hotels that are known for having power
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outages are places that might not be as nice in the flesh as the website. there are a lot of ways, you can cruise, a lot of ways to approach a luxury trip. nejra: what about airbnb? an history has had of homestays that predates airbnb, whereas many other cities look at airbnb as new and difficult competition. in cuba, that has been the lay of the land. you can find great options, and some of them are as affordable as $44 a night and they are beautiful, but they are not subject to price gouging the way that nice hotels are, so it is great. nejra: what about going outside havana for the luxury traveler? nikki: inventory in havana is thin and outside, it is thinner, so you do have to think ahead and this is where i think cruising is a smart way to go.
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there was a new cruise line from carnival that specializes in volunteerism trips to cuba and they have brand-new ships, floor to ceiling windows, spacious cabins, and next january, they will specialize in yacht cruises, and they will do a circuit in cuba. vonnie: even if you manage to book one of the luxury places, are the comforts you have to do without? nikki: yes, for sure. i think that is something you need to manage her expectations with if you think about planning a trip. wi-fi, for one thing, is difficult, slow and not available at all hotels and certainly not in your room. things.e other electric companies that are investing in hotels in cuba right now have to deal with small availability of products on the ground. they are not able to import easily. there are rules about employment that kind of regulate how you can treat your employees and reward them for good service, so
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there are a lot of cap -- there is a lot of catching up on hospitality side of things, as are other things in cuba. ki, thank you. more of those stories, just had to bloomberg. nejra: coming up on the european close, a focus on currencies after new zealand cut interest rates, and we are watching continued weakness in sterling after data shows u.k. sales hit a three year low off the back of brexit. let's see how markets are trading 35 minutes away from the european close. stoxx 600 is close to raising their post brexit drop rate slow to recover than u.s. and asian shares. ftse 100 up .41% and look second is recovering. .601% and still in
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the bull market territory. let's take a look at the fx markets. upking at the u.k. guilt, one basis point. there we go, currencies. assaw its soaring and this investors were questioning the dovishness of the decision, despite the cut the rates and seeing the dollar up as well. just the search for yields, sterling, one of the worst .erformers, down to .3 of 1% euro-dollar pretty much unchanged. sterling 1.29. this is bloomberg. ♪
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>> it is 11:00 a.m. here in new york and 11:00 p.m. in hong kong. from bloomberg headquarters in new york i am vonnie quinn. >> i am nejra cehic. >> you are watching the european
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close on bloomberg markets. >> we are going to take you from washington to zurich and cover stories out of china and germany in the next hour. here is what we are watching. sterling falls to a one-month low after home prices rose in the country, falling to a three-year low post brexit. egypt has struggled with growth and taxing foreign investments since the uprising. can the country finally flourish after receiving a $12 million -- $12 billion package from the iss. the largest u.s. department store massey surges in trading


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