tv Bloomberg Markets Bloomberg August 31, 2016 10:00am-11:01am EDT
vonnie: we are going to take you from san francisco to mexico city and cover stories from new york and france in the next hour. john cryan making waves about bank consolidation. he says europe needs more consolidation, arguing german things lacked their peers. -- german banks. south africa's biggest debt lender will stop lending money to large of -- six of the largest state companies. we will hear it lucidly from the on himself, andrew canter why he pulled the plug. we will hear from him
exclusively. vonnie: we will hear from the head of the candidates major speech tonight on immigration. he is surprising many as he has described him as racist and deporting millions of undocumented workers. we will hear from him exclusively. 30 minutes into the trading day in the u.s. going straight to the markets desk where abigail doolittle has the latest. abigail: relatively quiet trading. we have the three average is down slightly, but the dow and s&p 500, something interesting going on. -- we have the three averages down slightly. when we take a look at the s&p 500 over the past month, we see a lot of volatility and the tiny decline as investors tried to figure out the competing signal, especially around the federal reserve and what the up to make policy decisions are likely to be. upcoming policy decisions
take for you to resume lending again? what a government that is able be enough for you to resume lending? >> the answer is this, we do credit analysis. this involves financial statement analysis and long-term vonnie:forecasting. the development bank, these are lending agencies. we will want to understand clearly held -- who they are making loans to. a politicall with person for example. we may write in clauses that relate to disclosure of material
or large loans. that is the duty of a lender. the independence of the procurement. dealing with politically-exposed persons and the like. due diligence, we will be happy to come back and tell these guys he will be funding them again, as we have in the past. mark: do you think other asset managers will follow suit and do the same? >> i would expect so -- our decision was triggered because we were in the process of the final stages of 1.8 alien of loans to three different soe'smt managers will follow suit and do the same?
. i cannot imagine how other asset managers can make different investment decisions, the information is just not there. we will engage in an industry meeting where we meet and talk about common interest. we will try to make it the tomb answer the questions. we will send group c of they can answer as a group and answer concerns as a group and put intover legal requirements the loan requirement as a group. mark: all of this takes place at the attention focuses on the prime minister and the rating agencies have no doubt there i on the gordon case and what is happening to us eight enterprises. fitschen s&p have raised concerns that state owned companies are not being optimally managed. do you feel south africa will lose the investment-grade credit >>ing for whatever reason? of course i do. we have been funding the state owned development institutions
for decades. they are the critically important mechanism for water or agricultural development. we have no desire to make this decision. of course, we worry if they will be downgraded. that is a bad thing. the long-term med checks are not that bad. it is manageable to get to the right place, but i think rating agencies have to pay attention. i am an asset manager. i am not did in politics. we can do is assess the companies we lend money to and make prudent decisions for our investors that we answer to. vonnie: how will this affect your business? weaker by 10% at this time last year. we are in a ran based investor. -based investor. a drop in rand is bad for
inflation which hints at higher bond yields. so that is something we watch closely. the inflation outlook as we look forward is improving sharply. you could see a reduction of interest rates. as far as that is the least, we have substantial exposure to them. we expect there will be marked to market losses. is just a reality we have to deal with and get through the .ycle we hope it supports a more sustainable framework to operate. mark: quickly, give us an idea in southlloff we might african assets and gordon loses if gordon loses his job? >> that is an important question.
we saw in december when the finance minister was replaced unexpectedly. it depends on the who and the how. domestic international believes that that all right power warfare is between where the money sets and where the power sets would not play well at all. it would be a substantial selloff. we saw a bear market selloff. we have not seen that kind of mood since the mid-1990's. that is a scary thing. with long-duration bonds, it hurts. thank youdrew canter for your time. you are watching bloomberg "markets." ♪
i am vonnie quinn. mark: you are watching the european close on bloomberg markets. we will take you from new york to sao paulo and cover stories from the u.k. and mexico. here is what we are watching today. back to work on brexit. the first timeor since the summer recess, adding that she will not try to keep .ritain in the you -- eu voting underway at this moment. the latest reaction. why investment bankers at the biggest security firms are seeing $2.5 billion in bonuses