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tv   Bloomberg Markets  Bloomberg  August 23, 2016 10:00am-11:01am EDT

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david: we take you from washington to london covering stories from london to germany to turkey. , ramyat the markets desk inocencio has some breaking news on new home sales. --y: the number is 600 623,000. the median survey coming in at 580,000. this also breaks past the prior number from last month. this is meaning we have our highest record in terms of new home sales since the year 2007. let me walk you through more here. i want to show you the function. this is the number of new home
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sales happening. now with this new number, this is where we stand -- this is where we stood. about new number, 650,000, you can see that has not been hit since the third quarter of 2007. they gangbusters number in terms of new home sales. a pop in terms of percentage, 12.4%. out as that develops and how that affects the markets. meantime, let's see how the markets are doing in terms of our majors. the dow and s&p and nasdaq are up on the order of about half a percent. for today, investors are a little doubtful on whether a rate rise will happen, so they are pushing back into equities. stanley fischer on sunday may on thewkish comments u.s. economy.
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take a look at this other chart i have. generally speaking, we are in the dog days of summer, but along with fed speak on rates, we have some investor hesitation. basically what you are seeing is the s&p has had absolutely no one present moves to the upside or downside in the past 31 days. investor doubt that any rate hike will happen in the next three months. let's see what is happening with the bloomberg dollar spot index. excuse me, we are going to best buy earnings. up by 15.5%. it beat earnings as well as sales in the second quarter. same-store sales were up by .8%, compared to expectations of .6%.
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wearable technology a part of that. fitbit gets about 12% of its revenue from best buy sales. gopro gets about 4.6%. whirlpool also seeing a pop of 1.5%. we are 90 minutes away from the close of equity trading in europe. let's have a look at where the equities are right now. stoxx 600 up by more than 1%, up by 1.1%. seeing strong and broad-based gains after the equity benchmark ended the trading day pretty flat yesterday. let me show you have various industry groups are performing. green across the board. all 19 industry groups rising. at the moment, we are seeing financials in the lead followed by materials, which includes those metals and mining companies. they were the worst performers
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yesterday, dragging down the benchmark. today, they are some of the best. iron ore in china jumping to a two-week high. also getting a lift to equities, we have that eurozone pmi data. the composite showing its strongest expansion in seven better thanng in the 50 mark, which would signal expansion. let me show you the bond markets, this is the italy-germany 10-year spread. basically, that is widening for a third day, the highest in two weeks. it is about the political turmoil surrounding prime minister renzi weighing on italian bonds versus german bunds. homebuilders giving a lift to the ftse 100. the uk's biggest homebuilder by value climbed to the highest level since brexit. this is the stock price this year, drop post brexit.
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now climbing as much as 4.6% after they said first-half profit increased and reservations rose sharply last month. david: getting back to the breaking economic data -- before that, i want to get a check on the first word headlines. president obama gets a firsthand look at record flooding that swamped parts of louisiana. the president's trip comes four days after donald trump criticized him for staying on vacation during the disaster, but the louisiana governor said the president should not visit until after the first few days of recovery efforts. the blood has damaged an estimated 40,000 homes. tropical storm gaston is growing stronger as it moves over the eastern atlantic ocean. the storms sustained winds increased to 50 miles per hour. additional strengthening is forecast. gaston is expected to become a
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hurricane by tomorrow. the european union will not bend its rules to allow the london financial district preserve its access to the european financial markets once it leaves the block, according to a german lawmaker. he spoke with bloomberg today. >> the bank is willing to operate in europe and has to stay in the eu, not in england. that means some of the banks, like american banks, will have to move their headquarters from london to maybe frankfurt or dublin. prime minister theresa may is fighting to keep their rights. returnsh have started to home now that the nation's economy have gotten better. almost 80,000 people moved to
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ireland in the year ending in april, a 14% increase. the number of people leaving fell 6%. payrolls were up 3% in the second quarter. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. getting back to the breaking economic data, purchases of u.s. homes jumped to the highest level in almost nine years. i want to bring in one of our .op economic forecasters ryan, we mention these figures. 580,000ey was for houses. we got 654,000, expect in a decline in new home sales but instead of 12.4%. what is your reaction to all of this? >> i think it is very encouraging news on the housing front.
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it's important to keep in mind new home sales are very volatile from month to month, so they are fairly unreliable. we do not want to get too high or low on one month of data. but the trend is strong. sales are up more than double digits on a year ago basis. it is further evidence that the housing market continues to strengthen. that: further evidence things are continuing at pace, or were there something to peng shuai the spike that we saw? >> nothing that we can pinpoint that we can suggest that would support such a large increase in new home sales month to month. i would chalk it up to a lot of volatility in a new home sales numbers. typically the numbers are sensitive to weather, which was not a factor. fundamentals overall support stronger new-home sales, but a jump of this magnitude is a little surprising. the most important thing going forward is winning this number to stick. it is an important benchmark.
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pre-housing bubble, new-home sales averaged about 650,000. now we are back to historical norms and we need to build on this momentum going forward. looking at your research note where you say the u.s. economy is falling short of expectations this quarter. you also say, talking about the fed's shadow rate, that monetary policy is less supportive than it appears. does that mean you are not expecting any kind of hike from year third quarter is shaping a little weaker than we expected. year ahead of the speech and jackson hole? >>the official forecast was for about 3% gdp growth. our current model has a tracking at 2.3%. i don't think it will change a lot following today's numbers. i don't think we will get a ton of a boost to gdp because of
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that. the third quarter is shaping up to be fairly solid. not as strong as we had hoped, but the conditions are falling in place for the fed to raise rates at least once this year, likely in december. i think they want to be cautious. the economic risks are diminishing, but there are still risks not associated with the economic data, primarily keeping .nterest rates at zero typically, they want to be very cautious in raising rates. you a bitant to probe more on what you have been talking about with monetary policy being less supportive than it appears, what that actually means beyond this year? the attention has been on one rate hike that the fed did in december of 2015, but when you look at the shadow fed funds the rate fordjusts
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quantitative easing, forward guidance, that rate is not constrained by the zero lower bound. that has increased more than 300 basis points. that would suggest monetary policy is not as accommodated as people anticipate. we have seen some officials highlight that point in recent speeches. monetary policy is not overly accommodative. that is why, going forward, they want to raise the rate in line with the short run equilibrium rate. they do not want to be too restrictive too soon. david: returning to the housing numbers we got, you noted these are subject to revisions. put this into some context.
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housing has been such a bright spot in the economy for so long. how important is it to get a number like this, how important is housing today as we look at the recovery of the economy? important. our economy does well when housing does well. a lot of the attention has been on the age of the expansion, seven years give or take. usually, housing contribute early on in an economic expansion. we did not get that this time. housing will contribute most in the latter phases. i think housing will provide a crucial element to that. david: thank you, ryan. we appreciate that. joining us from westchester, pennsylvania. don't miss our interview with the ceo of toll brothers coming up at 1:00. move closernsanto
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to a major deal but hurdles remain in the way. this is bloomberg. ♪
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nejra: live from london, i'm nejra cehic. david: i'm david gura. shares of best buy of at least 16% after second-quarter earnings beat estimates. electronics retailer was helped by rising sales of electronics, home theater, and wearable technology. the ceo has been trying to turn around the chain after years of sluggish growth. at&t has reached a deal for enhanced roaming and other services for customers visiting the island of cuba. agreement for an
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visitors to cuba to receive and send text messages and phone calls. that is the bloomberg business flash. and monsanto are said to be making progress toward a deal in the coming weeks. an agreement would end months of back and forth between the companies beginning with bayer's initial offer. for the latest, let's bring in jeff mccracken. jeff and his team were actually first to report on talks advancing between bayer and monsanto. give us the latest. ?hen can we expect a deal one person we spoke to said that they could see a deal soon but we expect or after labor day. ceos, hugh grant, and mr.
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, have been meeting and they had good conversations about the price of the offer, which at this point is around 125 a share. obviously, that will have to go higher, maybe 135, to get the deal across the goal line. the other thing is the termination fee. monsanto has said the 1.5 termination fee offered by bayer is not enough. that is because there is a big , to block regulators a deal if a deal were announced. other sticking points around the price, or are there other issues around the rationale of the deal? the ceo at monsanto has only himself to blame for becoming a target. last year, he went after syngenta. he spent a lot of time talking about the strategic rationale of getting a really big
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agricultural chemical companies coming together. now he is the target. no one disputes this company would be stronger and bigger and probably better if it were combined. alsossues are price, but what assets, what divestitures will be required by regulators. questions,curity especially when you have a foreign buyer like bayer. yesterday, cam china received its blessing to take over syngenta. what would the antitrust landscape look like for these companies? jeff: monsanto had been holding out hope for weeks, maybe months, since this began, that perhaps the deal would fall apart, it would get blocked. ,hat happened yesterday monsanto now knows syngenta is gone, they will not be able to
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make a third run at trying to buy the company. in terms of issues that come up, national issues will be raised. you have bayer buying a company that provides seeds and chemicals. that will be the focus, any national security issues. focused ony are more technology companies or a defense company, somebody providing products to the government, business to military contractors. you look at agro business, attracting a lot of popular interest. some are saying this is a merger from hell. how much of that political noise is potentially going to delay things? i think there could be -- jeff: i think there could be pushed back from regulators. whether after margaret below or anyone else is upset does not
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really matter. as tinkering or messing around with their food supply, the vegetables, the food grown on the farm. their reputation is not great, but this is not been going to buy a urine company like whitsun gentile. this is more about what kind of market consolidation is going on with bayer and monsanto. there is a lot of big consolidation plays going on in this base right now. david: jeff mccracken, thank you. still ahead, the recent rally in prices which saw oil into a bull .arket was not enough this is bloomberg. ♪
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nejra: live from london, i'm nejra cehic. david: i'm david gura. the world's largest oil you have surged 8% last week.
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it surged $300 million in outflows. let's go to ramy inocencio. balchunas overic at our princeton office to talk about these etf's. ,ast week, we saw this search 8% or so on speculation that opec may freeze construction. today we are seeing oil down two days in a row, it's worst two days in the last three weeks. out when thecome price of the etf comes up? eric: this is used to play again, not make an investment. flows.f's track here they are not people are calling upon him, calling a top, taking profits, a short-term trading tool. why this should be use as a short-term trading tool -- this year, year to date, oil spot is up 20%.
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this etf is of zero. on the short-term it does well, but over the long-term it corrodes. that is why this should be looked at as a derivative or futures position, not a normal etf. so why would anyone want to use this etf when the return is zero? eric: if you are looking at short-term sensitivity to the spot, it does a good job. this has a 96% correlation to spot on a daily basis. tracks energy stocks and has only a 68% correlation. unless you are willing to store oil in your backyard, which i suggest against, this is the fastest way to do it and this is also usually liquid. $350 million a day, any spread. that means you can get an out quickly. if you don't have access to the futures market or do not want to mess with it, this basically
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treat like an equity. ramy: who exactly is using this? eric: not that many big investors. only 20% of holders are 13 f filers. largely smaller shops, day traders. that is because they may not have the acumen to use futures. this is a godsend to be able to trade oil. it only turns over 10% a day, so that means there are some people holding and buying it, and that means they will be learning the hard way. ramy: walk me through some other options out there? people do not like u.s. open because it holds futures physically. etn. of people use oil people also do xle. though do not have the funky business with derivatives and the role cost, but they will be
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less sensitive to oil, issues from the stock market in bedded in those. an interesting insight into oil etf's. i guess the takeaway is do not try this at home, unless you are an expert. david: thank you. up next, hillary clinton's state department e-mail controversy continues to hang over her campaign as the fbi discovers 15,000 new documents. to unveil a new tax proposal today affecting small businesses. we will speak to neera tanden, the president of the center for american progress. this is bloomberg. ♪
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david: live from bloomberg world headquarters in new york, i'm david gura. nejra: i'm nejra cehic. you are watching "bloomberg markets." let's get a check on the first
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word news with emma chandra. emma: an american soldier has been killed and another wounded during an operation in the southern helmand province. six african soldiers were also hurt. the attack comes a day after 100 u.s. troops were sent to the region to help afghan forces trying to rein in the taliban. merkel says the european union needs to show it can prosper without the u.k.. she met with french president francois lond and italian prime minister antonio renzi on an aircraft carrier yesterday. leaders are trying to come in with a vision of the post brexit block. a study finds the way to between men and women increases after childbirth. fiscal study for says that is because mothers reduce their hours and miss out on pay raises. the study says women in the u.k. are paid about 18% less than men. two decades ago, the pay cap was 20%.
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a destructive while far continues to grow as it threatens homes along the california coast. 2400 people are under evacuation orders. 5800laze has turned about -- san thenhalese ways of the spoke county. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. the controversy surrounding hillary clinton's e-mails continues. the fbi discovered 15,000 new e-mails in their investigation and a judge's order and the state department to review them for possible release. last night on late night television, she shrugged off the issue. >> my e-mails are so boring, i am embarrassed about that. we have already released 30,000-plus. what is a few more? this comes as her campaign plans to unveil a new tax proposal that would apply to
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small businesses. neera tanden of the center for american progress is with us. bernie sanders said memorably, enough with those dan e-mails. she can laugh about it alongside jimmy kimmel, but this is something that parts of the american public is concerned with. how does she move on from this? way think she moves on the that she has during the campaign which is to answer all the western there are about these e-mails. if you actually look at public people polls, 60% of think they have heard too much about the e-mails already. this is just part of the drumbeat. i think people are really actually focused on the candidates themselves and who would be the best president, the best commander in chief. republicans point to a recent batch of e-mails showing a dubious connection between the
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clinton foundation and hillary clinton. you are on her transition team, should that happen. what role do you see the clinton foundation playing, bill clinton allying out steps how it would be different. thed it be possible for foundation to continue in perpetuity if she is president? president clinton already sent a memo yesterday about pulling back, in terms of the kinds of fundraising that the foundation does. day, we have the to remember, the clinton foundation has spent the last decade really trying to address the globe's most pressing problems. th today are alive in africa because of the hiv medications that have been provided via the clinton foundation. that is an important aspect of this story. this is a discussion about a foundation that has raised
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money, but in order to solve the global problems. i think they have outlined steps they will take to pull back on fundraising, but there is a lot -- and donen good good by the foundation, and it would be a pity to lose all of that at the end of the day. nejra: i want to move on to this standardized text induction for small businesses that we are expecting to hear about today. donald trump has also said capping his corporate taxes would benefit small businesses the most. how can clinton differentiate herself with her proposal? there is a huge difference between the proposals. first of all, the term proposal is really one that provides a massive tax break, tax giveaway to people like himself. into a formonvert
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of corporation, lower their tax bill significantly. what hillary has proposed is really changing the standard deduction, much more targeted toward the needs of small businesses, to actual small businesses, addresses the tax complications they see. i think it is a big difference. one of the big differences you can note from this, even donald advisers have said that they are worried about the gaming affect that this tax plan has and may need to revisit it. if you are a small business out proposal isry's really targeted to your needs, is a proposal that is addressing the concerns of small businesses. over 100as visited small businesses this past year, her their concerns and is trying to address them in a range of proposals she is putting forward today. area of slight
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concern, i want to talk about trump invoking bernie sanders in speeches. what do you make of this, what do you think --how do you think it is impacting bernie sanders supporters? i think bernie sanders supporters are supporters who care about making progress on the country's goals, they are liberals, progressives, and the vast majority of them are supporting hillary clinton and repudiating the politics of donald trump. if you support bernie sanders vision for a country where everyone can get ahead, that we are all in this together, that cares about civil rights of all americans, which is what bernie sanders has championed for decades, then it is hard to understand supporting donald trump. you see this in the polls. this is a transparent attempt to get these voters who are repudiating donald trump. 91% in the recent abc poll,
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sanders supporters are supporting clinton. that is because they see her as a champion on these issues. we have heard a clarion call on tax reforms. i spent eight years in d.c. and heard it first hand. should hillary clinton be elected, how would she affect the changes to the tax code like what she is proposing today, what could she do different from president obama? get through this election cycle, and if hillary theresident, that will mean republicans have lost another presidential election cycle. i think the rise of donald trump is really a repudiation of the kind of bareknuckle tactics of saying no to everything. nobody gains from that. hillary clinton is willing to talk to anybody willing to address the problems of the country. you will hear voices -- you hear them already ahead of the election saying it is time.
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republican leaders recognize objecting to everything, the politics of now has been a failure. no has been a failure. will reach out to anyone. paul ryan has been a leader in the house, mitch mcconnell, in the senate -- although he may not be in majority -- will actually listen and take hillary up on her offer to discuss the country's gravest problems. hunt saying tax policy is really a place where the divisions between clinton and trump are so stark. can we see today's announcement as a movement of talking about it more on the campaign trail? talkingillary has been about the economy from day one of her campaign. speech a major economic within days of announcing, has been talking about these issues all throughout.
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i hope we will see, as we enter the fall, real policies from donald trump and a discussion of those policies. hillary clinton is happy to engage on any substantive issue, including the economy, and she is right, her policies will work better to address the issues that middle-class families, small businesses, everyday kitchen table issues that the american people want their leaders to focus on, not the personal attacks that you see from donald trump every day. thank you, neera tanden, president for the center for american progress. the 10-year yield in his tried -- tightest trading range. sean darby says bond and equity markets are repressed. this is bloomberg. ♪
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david: you are watching bloomberg. i'm david gura. nejra: i'm nejra cehic. david: british homebuyers are shrugging of the brexit vote. the country's largest homebuilders says the man is gaining steam. don't blame the weather and we will tell you what is the biggest cause of airline delays. david: corporate chinas shopping spree. they break the record for overseas deals, but do they have an unfair advantage? we begin in britain where the world's largest homebuilders seem to have shrugged off worries about the brexit vote. persimmon reported a boost in profit last month. the ceo talked about the impact of brexit. >> people are still keen to buy and the lenders are keen to lend. i think people understand the
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affordability is there, and if you want to get into the housing ladder, it is quite often cheaper to buy than it is to rent. the fundamentals are still there for the underlying market. it is very strong. we have not seen any particular change in buyer behavior. meanwhile, banks in ireland have a problem. home loans were the slowest part of its lending in ireland in the first half of the year and a bank of ireland said it issued more than twice as many loans in the u.k. as in ireland. 60% of homes in ireland are bought without a mortgage, up from 25% a decade ago. shares of the australian airline qantas have tripled in less than three years. now investors want to know when dividends will resume. the airline has been paid a dividend for seven years. the ceo has been on a cost-cutting the simpsons 2014 and has run out benefits of more
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than a billion dollars. you can blame the airlines and not the weather for most delays in the u.s. the u.s. department of transportation says late arrivals were triggered mostly by mechanical problems, a lack of flight crews, and other factors. that is only the second time whether an air traffic control have not top the list since records were kept in 2003. david: time now for our bloomberg quick take. corporate china has been on an unprecedented shopping spree. it took chinese companies for months in 2016 to break the record for overseas deals which were set last year. chinese companies not on such things as pirelli tires, the inter-milan soccer team, and new york's waldorf astoria hotel. syngenta.now includes that deal cleared its biggest hurdle when the committee on foreign investment in the u.s.
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approved it. committee that's foreign acquisition of companies for national security threats. u.k. lawmakers have expressed concerns about chinese investments in proposed nuclear plants. in australia, the government blocked the sale of the nation's largest cattle renter to a chinese group and rejected bids from china and hong kong for an electricity network. the chinese emperors for centuries consider the country sell sufficient and foreign trade only opened up in 1979. more recently, the government has encouraged the recent overseas push due to slowing economic growth. businesses have an incentive to spend cash sooner rather than later with a weakening yuan. should givechina foreign companies and same advantages that chinese companies enjoy when making overseas acquisition. easy financing from government-backed banks. some argue chinese investment should be embraced. one report found that takeovers could keep many american companies from bankruptcy.
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the u.s. closed twice as many deals in 2015. you can read more about china and more of our quick takes on the terminal. bloomberg.com for more stories. nejra: are u.s. equities poised for a correction? lee jeffreys chief equity strategist says that markets have been in a depressed state. he says central banks are largely behind. it feels like a false market, but it is all part of this repression going on for the last 24 months. withwas really enforced the boj action in january, subsequently the bank of england. it is all about these foreign investors and insurance and pension funds buying a long end of these markets and it is also pushing the equity markets into this range trade. not see the plot of retail money, pension funds, institutional guys taking big
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positions. is that era over, did something change? >> a lot of the problem is there are not so much economic indicators reflecting the moves in the market at the moment. they have been largely detached. bond markets have been running on their own conviction. i feel the investors do not have the same sort of data points to have conviction to put money into the markets at the moment. i was talking to credit suisse this morning about this story. michael o'sullivan said he believes this kind of price action points toward a market primed for a zine change it we are looking forward to the fed chair speech on friday, pivotal meetings with the boj next week. would you prescribe that we are in need for a regime change? perhaps weried that have gone into a regime change. the problem is central banks are buying up all of their assets
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and helping to reinforce. until we get a break out in inflation or growth, we are in this type of stalemate. financial asset markets are largely range bound. bank of america talking about the u.s. equities position, talking about an elevated risk of a recession because we are hoping to much for fiscal stimulus, prepared for the downside. jonathan: we are so used to talking about the bernanke, yellen put. goldman sachs has talked about the yellen call. the markets come down, the fed steps back. do we have a call from the central bank now? what has happened is real rates have come into negative territory in the u.s. if we get a pickup in inflation and real rates go up further negative, you could see the equity markets going up. it is all about this perception that the fed must get inflation room and allow the economy
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to slightly overheat at 1%, to make sure it does not enter the inflation. just about everyone else is fighting deflation. yourself, running it you would say i do not want to take the chance. i think that was what was passing through the minds of the fed. jonathan: every other central bank that has hiked rates, they have cut again. to that point, if we get some kind of inflation, what is the yield on the 10-year going to be that will shift the dynamic of the market, and is at the level or the velocity that we get? >> right now the real bond yield is about .5. the hurdle is not so high, so that is why you see sovereigns doing really well. if you go back to december, january of last year, you had real 10-year bonds at just over 10% -- 2%. the world was not that nice. you had higher real rates, and that was an environment that the
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asset markets did not like. that is the rain we are going through at the moment. that was sean darby, chief equity strategist at jefferies. coming up, shares of volkswagen are rebuilding after the carmaker negotiated through the night to reach a deal with a rebellious supplier. we will have the latest on a return to production. this is bloomberg. ♪
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david: i'm david gura. you are watching "bloomberg markets." nejra: live from london, i'm nejra cehic. volkswagen shares rising today after it negotiated through the night to reach a deal with a supplier and work had been at sixfor almost a week factories across germany after two subsidiaries of prevent group took the unprecedented step of withholding delivery of components amid a contract
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dispute. chrisre, we are joined by reiter in berlin who covers the transportation industry in europe. i will not talk down to a boston company. it is half of my origin, but i have to ask, how did this happen, how did a little-known supplier outside the industry bring down volkswagen for a week ? ofis: there are a number things at play. for one thing, volkswagen has a history of keeping costs low, a history of strong-arming their suppliers. they, like many other automakers, use a manufacturing system based on a just-in-time delivery. that means parts are delivered straight to the production time uslly at the point where they are assembled. that means they have inventory on hand and when a supplier cuts off supply, that has a ripple effect quickly. two subsidiaries
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,ut deliveries to volkswagen according to them, volkswagen went too far in an effort to cut costs. they say they needed to take a step to guarantee their survival. the efforts of volkswagen were intensified after the diesel case and it went too far, and they hit the nuclear button, so to speak, and cut off supplies. nejra: so what did the deal look like which they eventually came to? the details are sketchy so far. all we know for sure is the delivery of these parts -- these partsat and transmission -- and these will be resumed and started in the coming days so production can resume on the passat models. we are hearing that they may continue to work with the prevent group.
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and whetheroks like it is as intense as in the past remains to be seen. regardless, this kind of an action will not sit well with volkswagen. they will likely seek second suppliers for these types of high so they are not left and dry by producers in the future. we believe there is some agreement that the companies will work together, that the delivery of these components which had caused problems, will restart. david: we have seen this at one supplier here. do you think this will set a precedent, we could see other suppliers standing up to volkswagen in the future? chris: we have asked that question, and the answer is unlikely to be the case. wasaction taken by prevent a pretty extreme reaction, very aggressive. you usually do not treat one of your biggest customers, while the guerrillas of the industry
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in that way, and think you can get away with it for long. prevent is not a high-end supplier that supplies beponents that cannot duplicated elsewhere, so it puts them in a difficult situation, but it is also a warning for other suppliers as well. other suppliers are not likely to go this path, that is our understanding. will see aike we wave of these kinds of reactions in the coming months. nejra: chris writer in berlin, thank you. rising 2.5% ones that news that production will be restarted. coming up more on the euro zone economy. the latest pmi. this is bloomberg. ♪
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david: it is 11:00.
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you're watching the european close on bloomberg markets. >> are going to take it from washington to london in the next hour. here's what we're watching. there are a few signs of european growth being curtailed by the vote to leave the economy. pmi is seen as best reading and seven months. issueswith progress on like termination fees, or on a reporting on what would be the largest producer of seeds and pesticides. after years of sluggish growth, the largest u.s. retailer could be showing signs of a turnaround. surge of best buy surged.

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