tv Bloomberg Markets European Close Bloomberg September 2, 2016 11:00am-12:01pm EDT
barton. we are going to take you from san francisco to moscow in cover stories out of washington and london, and here's what we're watching today. an exclusiveging interview, bloomberg sits down with russian president vladimir putin. we asked him if russia central banks move to boost the country's currency reserve. president putin's answer just a moment. vonnie: the u.s. added 151,000 jobs. stocks climbed after the dollar fell. there's a chance the federal reserve will boost interest rate this month. its galaxyrecalling note 7 smartphones because of a
faulty battery. we will see just how much of a global replacement program will hit their bottom line. all the four product announcement from apple. -- all before the key product announcement from apple. mark: check it out. these are the equities that received a boost today from the jobs report. stoxx 600 up. the jobs report came out. another one person has been added. the best performer. look at the currency board. sterling is the best performer in the wake of the u.s. jobs report. sovereign bonds, and commodities. what a wonderful function gmm i facing structurals. challenges, making the best short among its u.k. peers
according to bernstein. it reiterated underperforming rating on the stop. it sees margins declining. it sees risks and headlines swiss loans will rise. if he's future credit growth problematic across asset classes. shares are up by 4/10 of 1%. risen 6%. lloyd's is down extra 25% gain in hsbc. hsbc.ks to 25% gain in chip brewer said there is little chance this company would be , saying it is unlikely it would make sense as it would raise antitrust issues. callaway's is the biggest equipment maker in golf in the united states. last august. guggenheim, look at options for
its slugging gulf's missiles of -- golf business. nike will continue to offer apparel and shoes. this is interesting, rocket internet, shares earlier down 12%. 7.5% lower right now. the most since april. a write-down of its value, global fashion group contribute in the first half loss of 617 million euros. jeffries says the impairment, another investment the company id not -- they continue have concerns over rockets evaluatio valuation. rocket, not rockets. shares down by 7.5%. 90 minutes into the trading day
in the united states. let's get over to the markets desk. abigail doolittle has the latest. abigail: stocks trading nicely higher in the u.s. three major averages all of about half a percent at this point. we have the dow, s&p 500, nasdaq all on pace for weekly gains. the nasdaq is having its best day since august 5. the big story remains lack of big moves for the s&p 500. we are now on day 40 of the s&p 500 not making a 1% move either way. we go into the bloomberg and #3186. look at g the last time we saw 1% move, 1.5% higher come all the way back on july 8. sort of a complacent range. bit of trivia, the longest stretch of lack of 1% move was 184 days all the way back in 1963. we will have to see if we can get that far.
as for what it's helping the markets, apple shares are nicely higher. higher three days in a row and higher on the week. this on the news that ireland has agreed to fight the eu's decision to force apple to pay back taxes and $14.5 billion after ceo tim cook just yesterday vowed to fight it and to put that into perspective, the $14.5 billion is less than two quarters of free cash flow for apple. another winner on the day, bernstein shares having their best day since july 2014. the department of justice letter around the companies dotcom contract is not likely to lead to "material adverse outcome for the company." vonnie: thank you. we will check back again with you shortly. let's check in on first word news. courtney: vladimir putin is not taking any spots in the u.s. --
site and the u.s. presidential election but does not give the tactics of donald trump hillary clinton. he spoke with bloomberg in an exclusive interview. we can't answer for the american people. after all, with all of the shock tactics of not only one, but the , they are very smart people. -- listen tond them. courtney: and tune in to bloomberg all day today for our exclusive interview with vladimir putin and our special report on monday 12:00 p.m. eastern time. deal the president's pakistan has had since splitting from the soviet union in 1991 has died. that is according to russian news agency. he was 78. he was known as the tyrant who is cruel to opponents. in 2005, soldiers killed
hundreds of unarmed demonstrators and put thousands in jail. is pakistan became a supply route for the war in afghanistan and that led the west to ignore his abuses. hurricane hermine has been downgraded to a tropical storm but it is still making life miserable and parts of florida and georgia. the storm brought high winds, heavy rain, and dangerous flooding. at least one person has been killed. tens of people are without power . it is the first hurricane hit florida in more than a decade and now expected to had north to the carolinas. hillary clinton had her biggest fundraising month yet in august, raising $143 billion for campaign and the democratic party. overall, she has raised $835 million. released his august figures. global news 24 hours a day, powered by more than 2600 journalists and analysts to more than 120 countries. vonnie: getting back to jobs
day, we got mixed good august employment report. payrolls up by 151,000 for the month. that is estimate the july the jobs denver was revised by 20,000 -- jobs number was revised by 20,000. joining us for inside on the economy, bill spriggs from the afl-cio, the largest federation of unions in the u.s. what is the big take away for union constituents out of this labor reports, bill? >> it is report for workers generally, not just for union members. it shows that we continue to have a recovery, just not strong enough. wages grew by 2.4% -- which is a .odest rate of wage growth
if the fed were to reach its 2% inflation target, that would mean a very modest rate of real wage growth. we continue to see weakness in manufacturing because of the very strong dollar. them incomes have not fully recovered and this is causing weakness in residential construction. we are not seeing congress come to resolution about the infrastructure, spending, an investment that we need to take place in the united states. so construction continues to be sector. altogether, i think the fed should take from this that there is no room for them to hike rates. vonnie: when would you anticipate the economy will be in a good enough position for the fed to be able to do that? realen we start to see wage growth. when we see the nominal wage 4% annualr to a growth rate, then we know that we are much closer.
we have the potential of congress making as they and extending sequestration, which would cause the fourth order to be much slower. so far the first and second quarters were below the 2% that most of us believe the economy's potential growth is. in employment so far has been holding with what appears to be a great till of confidence on the business sector -- deal of confidence of the business sector that we will reach that. be hoardingpear to workers as they continue to anticipate that we are going to reach the 2% growth rate. mark: bill, i want to tell you republicantrump, the presidential candidate, has responded to today's jobs report. he says the lack of good paying jobs is a direct result of the clinton globalist policies that have sent u.s. jobs and industries overseas. you say you want -- won't support candidates who delivers
raising agenda. why is clinton and the best place to do that? >> she believes labor unions matter. we had a report in the u.s. come out earlier this week pointing out that it is not just union workers who game, but it is all workers who game when we have higher use in density. the u.s. has one of the lowest union did cities among all industrialized countries. if we had the same union density as back in the 1970's, the report that was sponsored by the economic policy institute points out that the wages of nonunion members would be significantly higher today than they are. so having are getting power is essential. we have seen what donald trump has done to unit at his posh mall casinos. he is gone to bust them. he is not wanted to pay the subcontractor's in the building of those.
he is not been pro union. he is not for raising the minimum wage. the growth we have seen and wages at the bottom is pretty much all coming from our state and local governments taking the initiative to raise the minimum wage. so he is not doing the essential things that grow the economy from the bottom, promoting unionization, and raising minimum wage. mark: bill, the employment prospects of african-americans. good the fed is at least aware that macroeconomic policies can have a good or bad affect on african-americans. you say the next step is the fomc further understand how much of a difference it can make. is there a sense it does not understand how much of a difference it can make to the african-american community? they don't have very much diversity at the federal in economist,r from those at the top. i do not think they appreciate the depth.
african-americans and a working people. by targeting levels instead of the trends, they do not ever get the economy back to the trend it would have been for wage growth, for employment growth, for labor share of gdp. and every time we fail to get back the trend, makes it harder for african-americans to hold on to gains they make when we do have recoveries. this past month, disturbingly, the unemployment rate for blacks with associate degrees was higher than for white high school graduates. when we are -- that kind of discrimination does not show in the data. if the fed could continue to let the market recover, that means we can shake some of the discrimination out of the market. in the last couple of years, since 2014, the last two years, the share of blacks who are employed has been rising. and this past month, the black unemployment rate went down for
good reason. because the share for employer went up. for the whole economy, the unemployed rate was flat because overall, labor force participation has been flat. in the african-american community, there is beginning to be a good response from these records set of straight months of job growth. vonnie: bill, i would point people to your article on the afl-cio website. else breaks, chief economist and professor at harvard university, thank you. bill spriggs, chief economist and professor at harvard university, thank you. mark: russian president vladimir asin talks about the ruble well as the situation in syria with bloomberg editor in chief. that is next. don't miss it. ♪
i am mark barton, counting you down to the european close. 14 minutes away. vonnie: i am vonnie quinn from new york. mark: let's get to our big interview, exclusive with the russian president vladimir putin. i want to turn to the conversation on russia's currency and gold reserve cash pile, which has fallen by about $100 billion since 2014. if they could lose the currency reserve more quickly -- boost the currency reserve more quickly. >> you and i know about the central bank's reserve and the goal is well known. for the general public, gold and foreign currency reserves, not to finance the economy but to
guarantee foreign trade. for that, we need a level capable of supporting the foreign trade for at least three months. but we are at a level that can support our tradesmen for a minimum of half a year or more. if everything stops working and we can only use our gold and currency reserves. that is more than enough. from the point of view of stability in foreign trade, we haven't absolutely sufficient level of gold and foreign anrency reserves -- we have absolutely sufficient level of gold and foreign currency reserves. how the central bank reacts to this, where it will be to increasing the reserves, so far difficult to say. let's not forget we have two governmental reserve funds. the reserve funds itself and the well-being fun. they make up about 100 billion dollars. in an: president putin exclusive interview with bloomberg. they discussed syria come the civil war, and president putin gave his view on bringing
stability to the country. >> first off, starting from the fact that turkey apologized for the incident that took lace and for the death of our people. it didn't it directlwi any reservations, and we value that. president erdogan took that step. interestsny common and the black sea region and more globally in the middle east will stop we very much count we will be able to establish constructive dialogue. we are many big projects, including in the energy sector. i think in the final accounts, we will complete it, at least the first part expanding transport capacity and boosting deliveries to the domestic turkish market. there will be the possibility of transit for european partners. again, if they want it, and of the european commission supports it. we of a very large project powerstation on unique terms.
they consist of several elements. us thatqueness gives the policy -- project is realistic. set the price of a kilowatt hour. this will be an economically beneficial project for both sides. in addition to everything else, as i our he said, we have a mutual desire to come to agreement about the region's problems, including the syrian one. i continue to believe that on ang can be decided change of power or political regime. when i hear from the outside the president must lead, not from inside the country, but from outside, it raises major -- president must leave, not from the inside the country, the from , it raises many questions. we see in fact the collapse of the state and the growth of terrorism. where do you see elements of democracy in libya? maybe they will it emerge
eventually. happen with iraq in the future? so far these are big questions. it is the same with syria. when we hear that assad should thee from forces outside country, the big question. what will it lead to? isn't it better to be patient and facilitate changes to the structure of the society itself, allowing changes to the structure of the society? wait for it when these have a national within the country? of course, it won't happen today or tomorrow. clinicalt is what wisdom is, not rushing were getting ahead of yourself, but gradually working toward structural change. in this case, moving the society's political system. in regards to turkey's actions, we're in contact with our turkish partners and we consider everything that violent
international law unacceptable. but we are in contact on a political level in the level of the defense ministry and foreign ministry. but i am sure the meetings with the turkish president mr. erdogan in china, we will also discuss this. bloomberg allto day for more of our exclusive interview the russian president vladimir putin, his view on every thing from the white house to the oil market and don't miss our one-hour special on monday 12:00 p.m. eastern, 5:00 p.m. london time. vonnie: still ahead, former ecb is not mincinget words when it comes to brexit. this is "bloomberg." ♪
trichet is speaking out on the brexit vote. he said the june referendum has created an extraordinary climate of uncertainty for the eu and the rest of the world. he spoke in italy. --deepening on the way depending on the way the u.k. will decide to pursue its negotiation, of course you might have a long period of uncertainty, which is hampering investment, and bring all economic decisions by household as well as entrepreneurs as well as firms, corporate businesses and so forth. mark: trichet discussed some of the other economic challenges in the euro area and says a period of modest growth is plaguing all developed economies, still growth in europe is not as bad as sometimes portrayed. he thinks structural reforms can help. he gave a thumbs-up to the ecb's work on the growth picture. touched onichet
helicopter money. he thinks it would be inappropriate as a way to resolve the regions economic issues. as we head to the close, literally five minutes away from the end of the friday session. look at those gains. what a boost to the european stock market. the biggest gain since the end of june. we're up to a weekly increase as well. increasing to 2.44%. stay with us. this is "bloomberg." ♪
where the index, the stoxx 600, got a real boost. it was the biggest gain since .une 29, just after brexit the stocks were up a mirror third of 1%. mere one third of 1%. industry group rising today. i want to get to some of the individual movers. the spanish oil company. through the purchase of canada's talisman energy for $30 billion. this is according to people familiar with the matter. cutting exploration costs, flashing, spending. it is trying to whether these prices and cut debt. construction, the big piece of economic data today.
furthering the resilience of the uk's economy post-brexit. an induced seven-year low. 50, still showing a contraction. but up from 45 point 29, the biggest increase in september 2013. december 2013.ce construction smashed it. bloomberg intelligence says wait for monday, wait for services. it is the biggest piece of the economy. the bank of england has to step back from further stimulus measures because of the resilience of the u.k. economy. the britishme to pound index, the measure of sterling against a basket of currencies. it has had a run on the third week -- on a third week.
regaining more than half the by the sharpted vote to leave the eu. vonnie: nothing has changed all that much. expectations of a hike has gone down. the dollar index, we are right back where we were at the beginning of the week. hadtwo-year yield, it dipped to 74 basis points and now we're back up to 80 basis points again. if you look at the two sent spread, no significant movement. about 3% today following a really crushing week for crude oil. .he dow is up not quite the rally we are seeing in europe.
as the s&p 500 is up 4/10 of 1%. go to the nasdaq in midtown manhattan. the nasdaq is moving higher, all session highs up 4/10 of 1%. and rising for the second straight day. at the bloomberg terminal and it is up over 3% right now. it is the top percentage performer and the nasdaq 100. it is having its best day in a month after the spa granted fast-track status for its alzheimer's drug. positive note from jeffries, saying there is significant development in this drug. they are keeping a buy rating with a price target. down over 9%.
having its worst day in almost nine months. after forecast miss some estimates, it is sparking concern about slowing demand and growth and competition. with nike and other rivals pushing deeper into that market. lululemon was up 46% before today's plunge. vonnie: thanks, we will be checking in again later. let's check in with the first word news. courtney donohoe has more. courtney: trade is limited between russia and the eu. president spoke with bloomberg's editor in chief for an exclusive interview. to have a new level of cooperation. we are developing the production
of a heavy helicopter. we're operating in machine building, high speed rail. and atomic energy. we have already built the nuclear power plant. courtney: tune in to bloomberg today for more of our exclusive interview with the russian president. the first hurricane to strike florida since 2000 five has weekend to a tropical storm. hermine came earlier today bringing high winds and massive flooding. officials say tens of thousands of people are without power and the storm is expected to move into the carolinas later today. the world's biggest banks want a special brexit deal to keep the status quo. deal with the
european union. that deal would try to preserve passporting, the ability of banks to sell services and products across the eu. a wrecked italian cruise ship has made its final voyage. it was towed across the harbor in italy. it will be broken up. the concorde he a cask i -- the concorde he a capsized -- the concordia capsized in 2012. powered by more than 2600 journalists and analysts in 120 countries. mark: let's get back to the economic data we are seeing in the u.s. and europe in the u.s.. what does it mean for the fed's christine, thanks for
joining us. i checked just before the jobs forrt and we were 36% september, 40% for november and 59 four december. expectations have diminished. : it just shows there is a slowdown in the u.s. economy. it comes from a higher base in june and july. we all know about the august curse. it seems like the markets are giving data a bit of a doubt. mark: the yield initially fell. are risingd yields
right now. christine: the shallow dip we -- evenier in the year in the aftermath of the data there was a recent range. inre is no absolute collapse expectations. vonnie: what can we tell from thatarkets, given everything that has happened seems to me to a return to normalcy. even the dollar index went back to where it was before jackson hole. going to showis how investors are being cautious. they want to see evidence of data or action from central banks. the usual things that would drive currency markets before any big positions. summercoming off of the
lull. there aren't any positions present in the market. i think investors are sitting in the sidelines until we get some kind of definitive signal from the central bank. vonnie: what will be the next catalyst? , maybe noting in meeting expectations constantly. but even when it disappoints, auto sales weren't getting big moves anymore. christine: the next catalyst would be the central bank rate decisions we have. there are a host of them coming out. that is what investors and traders are going to be tuning into next. store --get the new new four-star forecast, new economic forecast. expected?
christine: there is anticipation of some kind of signal from the ecb. the specifics of which are still up in the air. there isn't any consensus on what they could actually do. we have seen them done as well as expanding, the -- expanding the come of assets they can buy. the kinds of assets they can bind. -- they can buy. 4%lding below at zero point deposit rate, which makes them an eligible. the question is now what are they going to buy? they wouldn't have to buy any more bonds because the data is showing resilience. data, you would have to say, showed resilience. what is that tell about the rate
going forward? have seen some rate cuts in that data. -- resilientnt at and at this point robust. what that tells us in terms of rate expectations is that may be investors are reconsidering how much more of a role we have to play in terms of the economy and after the rate cut in july. we did see mark carney and his colleagues -- his vonnie: what can we expect from the bank of japan meeting? christine: it seems like the bank of japan is extending its stimulus program and doing more to give that -- doing more. that 2% inflation target remains elusive.
kicking things off is bloomberg's david gura. david: a huge deal today in the u.s. numbers, if you look at the first print going back six years you will see that estimate, the first print has always failed to meet estimates. i'm just saying here, in light of the fact we have students who work in summer jobs, who are going back to school, you have employers holding off on hiring for the hiring season. yes this is important to the federal reserve. as the case shows going back six years, there have been mrs. -- -- have beenes misses. vonnie: now my morning cohost,
you can continue. mark: he have so many friends. u.s. not just about the jobs report because in spain a big vote takes place. let's not forget spain. this is the second confidence vote for the acting prime minister. spain has had a political gridlock since the first election in december. electionre be a third this december? despite the gridlock body, despite the impasse. this is fascinating. since june 27, since the post brexit -- post lows. line isn't a line we look at often. it is the small-cap index, which clearly is more domestic oriented.
despite this gridlock we have seen in the economy the group has a forecast to grow by 2.8%. that is one of the strongest group rates. we saw the yield fall below 1%. the acting economy minister reforms,in that strong it says it will not be at a submit a budget, it will have to roll over last year's budget. tricky when it comes to the budget requirement, when it comes to the stock market.
>> that is the most wonderful presentation. i'm not quite sure how my morning coast got pitted against a national cohost. i learned both equally. i'm not even going to shake your hand. tune in in the afternoon we will be on. apple is set to announce its new iphone. what it could mean for the bottom line. this is bloomberg. ♪
business stories in the news right now. thequest to take a look at mission rules. no one authorized devices on his car to get around submission rules. -- around a mission rules. emission rules. pierce bean't rebounding from the brexit vote. the construction index rose in august from a seven-year low. earlier this week a british manufacturing index bounced back to a 10 month high. demand for buyers slowly recovered since home sales hit a 25 year low in february. discounts have been offered up to 18%, and mortgages as much as
120% over the home's value. that is the bloomberg business flash. vonnie: samsung has announced a global recall of its galaxy note seven smartphone. faulty batteries could catch fire. arch apple is set to unveil its new iphone next week. joining us for more on all of this is bloomberg tech reporter -- this has an seem to impact their stocks in the immediate terms. how damaging could it be a co--- could it be? adam: smartphone sales for them have been on the rise. they are going to introduce these new models. the seven note, the biggest of the models they have, isn't there top seller. but anything like this, having your body reason -- having your batteries catch fire, it isn't
something you want right before your biggest rival is introducing its top device. anything tohere suggest customers won't be pleased upgrading to the latest? tome it is not like having replace a car. it is a phone, you will get a new one, may be a letter one. adam: the question is will they want to go back and get something else instead? if you remember, there were issues around the attend a -- around the attend a -- around the antenna. a lot of punchlines for late-night comics and the like. over time they got over it. samsung is pretty adept at marketing and i'm sure at some point they will get over it. for right now this is quite damaging. a relatively quick
response to a serious product glitch on samsung's side. apple took longer with antenna-gate. adam: the phone is catching on fire, no one could say -- point well taken. they came out and said this is going to be a costly recall. you are talking thousands and thousands and thousands of devices. mark: as you said it is not a good time to have a faulty battery as apple launches the iphone seven probably next week. what are we expecting? adam: the changes aren't going to be two different. this is the iphone 6. this is going to be removed. the camera is going to be improved. mark: is a going to boost sales?
adam: the company is in need of a boost and the iphone is what they rely on. but this one is not as big of a bump as what they usually are. a lot of talk is that the next the 10 year anniversary of the next iphone, is when there will be a lot of dramatic changes. vonnie: what will be -- what will be be looking to be buying? -- what will we be looking to be buying? will be a change to the processor. vonnie: anything computer wise? adam: there is talks of a new mac.
mark: and when are we going to be up by these bigger phones? adam: i need to print money. is the future. that is the iphone eight. take a look at where european equities finished in the friday session. what a boost we saw today. europeanang came in equities. the stoxx 600, the biggest gain since the end of june. the ftse 100, i'm putting it in. today was the biggest gain since june 30. some are calling it the goldilocks report. not too hot, not too cold. that is it for me today. this is bloomberg. ♪
>> welcome to bloomberg markets. from bloomberg world headquarters in midtown manhattan, i'm matt miller. covering stories from tokyo to moscow. the u.s. added 151,000 jobs and a september right trike -- september rate hike dropped. taylornd economist john joins us with his take on the jobs report and what it means for fed policy. our exclusive interview with russian president vladimir putin. he blasts both donald trump and hillary clinton. saying he is ready to work with any administration that is willing. matt: let's head over to the markets desk abigail doolittle has the latest. abigail