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tv   Bloomberg Markets  Bloomberg  September 13, 2016 10:00am-11:01am EDT

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vonnie: we are going to take you from buenos aries to frankfurt in the next hour. first, let's get to the markets desk after volatile trading days. 30 minutes into the trading session in the u.s. julie hyman has the latest. 1%, sos&p 500 down about if we have another move in the index, it will be the first in a street, it will be three straight sessions for the first time going back to june, so this selloff in the wake of the upsurge yesterday, so it has been a seesaw few days. oil seems to be one of the driving factors today. than oil prices down more 2% after the international energy agency said that the global oversupply we are seeing will persist until late 2017. that is an extension of the
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prior forecast. exxon, show and -- show all trading lower. because apple will not tell us about preorders, it is not stopping some other mobile providers from doing so. t-mobile's john ledger saying that preorders are nearly four times more than the iphone6 and the sprint says preorders of the iphone7 are up 375%, so apple .hares up right 2.5% it is not benefiting those other companies. finally, the dollar is being watched, the dollar index gaining as racy see oil fall and the dollar benefits, up .501 percent, part of it due to the drop in the british pound. mark: we are down because of oil, similar to you. stoxx 600 down by .50 1%. we were up earlier and down for the fourth day, longest losing stretch since august. the biggest gain since 2008,
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this is a swiss buyout firm, they rose more than expected. they say that first half was massive and the company will be able to pay significantly higher dividends going forward. the basic coastline is that down 14 ande, profits will fall below analyst estimates, showing the effect and damaging price wash. getting absolutely hammered today. pound are of the weak not leading to headline inflations. and in linerising with the previous month. what is interesting is the impact it is having on imported prices. input prices rose an annual 7.6% and in point costs -- in input costs rose the fastest since 2011. that tells us, bloomberg intelligence tells me, it is
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only a matter of time before input cost see-through into headline inflation. i cannot wait for the bank of england on thursday. vonnie: that is with the bank of england is hoping. thanks. let's go to buenos ai cannot waf englandires, where that business forum is underway, it is to have that investment opportunities, attract foreign investments and argentina's can historic return to international markets. erik schatzker is live with the interview with an egyptian telecom billionaire. erik: thank you. i am here with the chairman and ceo of the egyptian conglomerate . i spoke earlier with the beendent, and now i have talking with people he is persuaded to come here. why are you here? i think what he has clearly demonstrated is what argentina
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has the aggressive restrictions they had for investors for years. when youd reason is have a country for 10 years out to investments, obviously, after 10 years, it is a good time to come and see them because the country has been deprived for a very long time. erik: i mentioned the conglomerate and you are in mining, financial services, hotels development, so it appeals to you in this country? naguib: all of the areas. erik: how much might you be willing to invest? naguib: that is the problem because we're highly invested in other areas in the world, but something between $20 million to $50 million. erik: i am sure he would be pleased to hear that but what? into specifically -- but what into specifically?
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naguib: i am looking into mining and the telecom sector. erik: europe participated in a similar forum in march, and also said that the time that you're prepared to commit some $500 million to egypt. how long does it take you to put the money to work? naguib: the problem is the red tape, a problem in egypt, a problem in argentina, too. if you ask me what is my advised that this government, my advice is to get humanitarian exchange rate and in and out as dividends clear. never get hisll money into a country where he does not know what is the rate and when the is making profits but he cannot reap the rates and dividends outside of the country. the second is bureaucracy. to go has time today through approvals, and permits, and the problem in egypt as we have -- the problem in egypt is
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what we have here. this challenge of bureaucracy is equivalent to corruption. s in every country -- naguib: in every country. erik: to varying degrees. naguib: if you ease the way of doing business with people, instead of making it difficult and putting obstacles -- erik: put this in perspective. in the countries in which you operate, where does the argentine bureaucracy rank? naguib: it completes with egypt. [laughter] erik: which is not good. naguib: no. he has his work cut out for him. a few months ago, as you mentioned, there is only so much money can invest here because there are other places you want to put investment dollars to work. the sale is one of them -- brazil is one of them. naguib: also now with the new changes from left to right -- erik: from dilma. good opportunity
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because people need to realize that these policies do not bring anything to the people. they can bring words but the do not create jobs, they do not grow, there's nothing, so i think the change in argentina and the change in brazil, the timing is good for us to invest. erik: what appeals to you in brazil? naguib: mostly telecom, so a good look at that. erik: you have been looking at it? naguib: yes. andave broad and expertise we govern which group is the value in less than 40 years. we believe this company needs an industrial player and not just financing restructuring. we need someone who understands the business who can look at the revenue and put the right things in place. erik: what will decide whether you invest in oil are not? naguib: whether the government is willing to change. the main reasons for the
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corruption of oil is the government sector, too many regulations, too many fines, and regulations to invest in areas with no revenue, so it is all of these changes. that will be the time for us to invest. erik: that is a big if. naguib: i think it is [indiscernible] because the regulators understand. if you want more investments in broadband, you cannot go unpunished companies and take their money and stuff like that. erik: how much money can you see years of investing in oil? naguib: i do not want to say that. erik: can oil stand on its own people doesn't need a marriage? naguib: -- or does it need to merge? naguib: it can. it will take over the [indiscernible] and is like investing in payphones, your invest in
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hundreds and millions of pay phones, and revenue is less than $200 million a year. it is under 20%. do you use a pay phone? erik: never. naguib: soak stuff like that can stand on their own. erik: but absent that 100% change and it might need to merge? naguib: yes, but when you want to marriage with someone, you have to stand on your feet first. erik: it is not either or. naguib: that is not my style. you ons it a choice for brazil or argentina when committing capital or can you do both? douib: i can do both but i not know if exact opportunities in argentina. it is not a similar case. here, you have to invest in other areas in telecom. world'su are one of the biggest investors in gold mining. what more might you do there? naguib: here also we are looking at the mines.
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it would be very interesting. investor into companies. one is an australian company, the largest shareholder, and the other is in antarctica, so this is not something we have not covered. erik: covered but not sufficiently covered you. what about some of -- there are a lot of gold-mining companies with assets and they took on too much debt and try to diversify. naguib: we just bought a mine in we are here ifo anybody wants to sell us assets or dispose of them. we will take them. erik: [laughter] naguib: we want to grow. erik: why do you want to grow? not theit is inclination but about the fact that gold companies get a premium when they are larger, so you get another rating when you
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are growing. secondly, it is about synergy and how you produce cost. it would not increase cost but decrease it and it can be used. erik: let's go back to egypt. you have ambition to create egypt's largest investment bank. how do you do that? you have tried. naguib: we are still trying to discuss with the government to allow us to do that because it is not only about egypt. if you create a big investment bank in egypt, you can use it as a hub for africa and so on, so it is good for egypt, -- erik: but if it is not with capital company you try to buy, how do do it? naguib: it will take time to grow organically but i am very patient person. [laughter] erik: what about electronic growth? naguib: it has been growing but small in egypt. it is not very big in size
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there. erik: there is a lot of room to grow. before we finish, and believe. a country which already have investments. there was some talk or you had expressed interest in taking a management role. naguib: i did, but we are not internetthe largest player in the market now, so italy online has an ambitious plan to be in the market. they are webpages in europe alley just merged it, so we have a plan in the next years to really emerge as the largest internet player in italy. erik: let's draw a connection between italy and argentina. there is history, immigration history, but mr. renzi is trying to execute a reform agenda, not unlike what mr. macri is trying to do here, but mr. renzi started first and his
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performance and it is starting to run into obstacles, this that mr. macquarie bases here. do you worry that argentina is going to go back into [indiscernible] naguib: mr. macri has the people behind him. aboutre very enthusiastic him. mr. renzi has a lot from the inside and outside, italian politics, so my guess is that mr. macri of the more successful and mr. renzi has a lot to do. erik: thank you so much. naguib sawiris, the chairman and andand he is prospecting argentina. lots of opportunity and he has not decided what he likes most just yet. back to you. julie: great job mark: -- mark:great job. and other exclusive interview from the inaugural argentina is this forum. we will hear from the chief executive of agricultural giant.
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do not miss it. this is bloomberg. ♪
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mark: five from london and new york. i am mark barton. vonnie: i am vonnie quinn in new york. let's return to argentina for that cannot drill this is an investment forum. erik schatzker is back for an extensive interview. tears joined by the ceo of archer daniels midland. with juan here luciano, who is an argentine and went to university across the street. thank you for spending time with
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us. given the fact that you are an annulus to many years ago, you do bring the perspective to what is going on here that others lack. what is the end of the fernandes era and the return to market oriented policies mean to argentina? i think it means a lot. i am encouraged by the reforms ihat the government of macr has implemented in the last eight months. i think the president has been clear in their message of trying to integrate argentina back to the world. maybe build the ties that were broken and and an era of isolation of argentina in the world. encourage is an encouraging word. what does it mean? means that argentina
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has missed so many opportunities. the world is inching toward one billion people and it needs it reliable, safe and affordable sources. argentina produces calories are good for about 400 million people and argentina only has 40 million inhabitants, so you see the world needs argentina and argentina needs the export markets, so this is a symbiotic relationship and i am proud of our companies playing a key role in connecting this to the global markets. made has the progress under the macquarie demonstration change your plans for argentina? juan: absolutely. erik: how so? juan: i will invest in argentina and grow. in the past, we focused our efforts on argentina and capital investments and in cost reductions and trying to make efficiencies and most of that, but now, we see a government talking about working together with the private sector and we
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are very encouraged. erik: investment of what scale? juan: we have been investing. erik: i realize, but when you look into the future, you have to make decisions about capital and location. how much capital will be allocate to this country? will continuewe to invest in infrastructure and the country. we will continue to invest. doing storage and transportation, but we are also and processing. i think the next step in our evolution is casas he locally, which adds more local volume. erik: more generally speaking, we looked at what the company does on a local basis -- on an international basis. i would say that we were shifting, if you will, from staying everywhere to maybe more
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mobile and versatile returns. erik: what are you going to do is one ofalia, that the questions that prompted perhaps the overgeneralization on my part and in singapore. these are things people wonder. juan: i think they are different. we continue to grow. the way in which to produce a take in the asian markets. erik: are those stakes that you plan to keep? we planese are the ones to optimize, so i think they are slightly different. we have more a strategic relationship with wilmer and react a little bit closer and a little bit more hands-off and australia. we are excited about both of them. erik: another example of this shift, as you describe it, is the business you have been soliciting. juan: yes. erik: what is the status of that? ,uan: we have received a bid
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several types. some of them are for joint venture, some of them for outright merger. we are in the process of analyzing. some of these are very integrated units, so we need to think about the synergy of one versus the other, so we are analyzing those. erik: characterizing the valuations, are they attractive enough? juan: they are very good and there was competitive tension. erik: would you rather enter into a giant venture or sell them outright? juan: it depends on what allows us to continue to work in our side with optimization. there are agreements that we still have to decide in different parts, so not are all comparable. erik: when people look at the aquaculture industry, they see a
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lot of merger activity. it exceeds with agricultural chemicals, but not in green processing and handling. is that something we should expect? have been hearing that since i joined five years ago. i think it is already on a global basis and concentrated. than aore concentrated domestic bases, but on the global one, it is really concentrated. it is a little bit of the monopoly game in which you have placed certain that's around the world and you have those assets. sometimes, acquiring and of the company with assets in the same place. bring anything to you, so i do not see the rush or the desire to continue to consolidate. -- i willve spent introduce a slightly technical topic. have spent a lot of time
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talking to karl icon, billionaire activist hedge fund manager about the rims market, and he claims it is a racket and that the epa, because it will not change the rules of the obligated party, is driving independent refining companies into bankruptcy because of the needs to purchase renewable feel credits. do you agree with that analysis or do you bring a different perspective? did this a complex issue and an issue that you know we produce [indiscernible] there are a lot of people looking at that and there is a little bit of expectation based on what will happen. as a continues to be in everybody's mind about the renewal of feel standard, i think that creates anxiety, if you will, and we see what the balance is up rims in the
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market, so i do not see the big issue, a few of. so it is fine the way it is? it does not need to be eliminated? juan: i do not think so. erik: another question that concerns you, there was a bump ofbrain last year, and a lot it ended up in storage. not so good if you are a grain handler. what do you expect farmers to do this year? juan: we have seen over the years on the farm storage and it grew a little bit, but it seems to be that they will be that we expect the farmer to commercialize and they will do serbians first and then keep different for later on, but [indiscernible] erik: do you see farmers changing their behavior because they know temperatures rise, the
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climate getting more volatile? juan: i do not think so. what we have seen is that in some places, there is a change in the weather, so places that used to be called her and maybe they produce better crops today and places that used to be warmer or maybe a little drier. we have seen a little bit of all. we do not see the farmers making a significant change. erik: thank you for your time. it is a pleasure. that is juan luciano, the ceo of archer daniels midland, an argentine background for mr. macri's they show. vonnie: thank you. still ahead, the international energy agency changes its tune and now we see the oil glut extend into next year. by the change in forecast? forecast? change in
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let's take a look at crude oil futures, down by 3%. lost forecast wane today on crude prices. the dow jones is down 1.1% and that -- and the s&p 500 down 1.2%. the dollar index is likely above 95 buried you are looking at a tenure yield of 1.68% and spreads of 19 basis points. this is bloomberg. ♪
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let's check in with the lisa currency in new york. germany say they have arrested three suspected islamic state members of links to last year's paris attackers. interior minister says the may have used the same traffickers and passports to get to europe. so far, no evidence they were plotting a specific attack. in venezuela, opponents of the president are calling for another nationwide rally of demonstrations. you have pushed back the protest until friday, and that is when they will be a key ruling on the proposed recall process. when 120 nations that are part of the nonaligned movement will meet in venezuela. atth korea halted operations itr nuclear reactors after was rocked by back to back up drinks and production was stopped at almost one dozen other factories. though stivers and operations and there are no reports of the earthquakes causing serious
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damage or injuries. in taiwan, residents are taking precautions as a typhoon is expected to go past the country's southern tip. it is expected to bring strong wind and heavy rainfall to the southeast of the country. there is a crash in the large waves. the founder of linkedin is the latest silicon valley mogul to get money involved in politics. he will donate as much as $5 billion to veterans if donald trump releases his tax returns. trump has said he would not release the returns because he is under audit. news 24 hours a day, powered by journalists and analysts in more than 120 countries. i am the lisa parenti. vonnie: banks. let's get to the market desk. they have been watching gyrations getting lower. julie: i wanted to point out we are at the low of the session.
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going on.ing what is oil leak in its lows of the session as well. you see the s&p 500 now down .25%. noteso noted the 10-year and yield kicking into the green, so putting more pressure on interest rates. we had seen the heaviest selling on friday with aims like utilities and telecom, which are selling up once again today, so that is part of the picture. let's bring back and of the stock that is losing today, along with copper and gold. fromrko is buying assets freeport for $2 billion. they say it will help accelerate onshore development, but one analyst for jeffrey said in a research note that some investors could question anadarko's increasing exposure in the deepwater gulf at the expense of launch or assets comes of that may be why they are down. interesting that it is down even
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as they make the sale. we are also watching athletic companies. that is because "the new york post" reported that colts -- old -- that reported golfsmith is close to bankruptcy. owned by the ontario municipal retirement system, so there is sort of a ripple effect across some of the other companies that sell golf agreement, including callaway golf, nike, under armour and dick's sporting goods, all lower today. downgraded to underperform in what analysts say are hidden challenges at the company. higher content costs, increasing competition from amazon and the u.s. and competitive markets and other countries. those shares down 2.5%. and weight watchers ceo is stepping down. his record at the company has not been very strong. essentially, the net income has declined in every year since
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became ceo in 2013. the stock did rally after oprah winfrey invested and she'll be part of the process of choosing the new ceo. after that initial run, they have gone down 4% as he departs the company. mark: thanks. that's turned to central-bank policy. the bank of japan is considering abandoning its guidance from the amount of government bond they buy, according to people for money with the discussion, as a policy makers went to give themselves greater flexibility as to continue the massive debt purchase program. earlier today, a professor said that so far, even with all of their efforts, central banks have been unable to generate inflation. >> i think they sort of lost confidence that their program is going forward. they had the markets going with them at one point and now they do not. they are not ahead of us.
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that is clear, and they must be worried about it. techint 2 -- tom: to the bloomberg folks, the green rectangle is where they want the yen to go and did not happen. can policymakers actually told the markets in any way, shape or form what to do? certainly not. they can tell themselves what to do with what their policy will use, it doesn't appreciate exchange rate, but it is not something that last forever, and they started a few years ago and it has not continued, so some of it is coming back, but exchange rates are high to explain. they are almost impossible to predict. r -- tom: one says that this time is that different and it is the case of the mexican peso. there is the mexican has so years with 94 and there was some
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real success by the mexican government. and when you see this, what does it mean to see o newso near 20 -- a pes 20? >> i think there is concern about the markets of china slowing and the global markets going forward. emerging markets always respond much more volatility. r saint west -- tom: does it indicate the questions of 1994 and 1998? the do not think it is 199419 98 situation. that said, i always kind of wondered it would be in a go crisis out of the advanced countries have their crisis, emerging markets, so it's event, but so far, we have not seen that, maybe because exchange rates were not flexible now and that provides a cushion. me talk to about japan and get your take on what
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is happening right now because it seems we are reaching the limit of what cutie is able to -- what they are able to deliver anti-japanese admitting that. they say they are favoring the front end and the curve is steepening. can we now talk about a steeper curve and japan? is it desirable and doable? there are a lot of bets to a quantitative easing can do because the government owns the central bank and if you own the central bank, buying soernment data is a lot, certainly there are limits to what you can do. i think we should have always known that. they have been very tentative with their negative interest rate policy and they have not really lay the foundations to do something more aggressive, so they have to look to buy more theynto private markets if want to really have an effect. that is a dicey proposition because you do not want to get into directive credits if you
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are in india or china. god: -- guy: how does that change the story for the fed/ -- for the fed? a quick answer. the fact that they have been lowering rates makes it easier wait, no question about that. the overall situation of global markets has been pushing down. in the long end, i do not think central banks control much except for inflation and neither the ecb or boj has really been able to push up inflation expectation. they are coming down in the united states and i think there in thes of confidence ability of central banks mark: in the long run to regenerate inflation. harvard university -- mark: harvard university professor with guy johnson and tom keene. vonnie: coming up, a changing view on oil.
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prices are falling after the iea says they seek prolonged loss. this is bloomberg. ♪
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vonnie: you are watching bloomberg. i am vonnie quinn. mark: i am mark barton and here is a global business report. vonnie: the warning for investors in europe. companies in the euro area are ticking time bomb he says. mark: samsung and lg accused of engaging in an antipoaching deal. the lawsuit says they conspired to keep wages down. what are the implications for the south korean electronics giant? vonnie: iran ones foreign oil
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companies back. the government is now offering international companies the biggest role since 1979. carson block says investors in europe need to do their homework about companies piling on debt. he spoke to bloomberg tv at that ubs summit. carson: i think one of the major issues in europe is it made it interesting to us and still investors inat europe are not doing the hard work of really trying to dig into those financial statements in understanding the economic realities that lie beneath, so meanwhile, companies borrow at extremely cheap braves -- cheap rates and the pressures build up until one day they become a problem. vonnie: he describes some european countries -- companies as ticking time bombs. mark: the chief executive of
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barclays sees parallels between the u.s. presidential race and the brexit vote. just daily says the presidential candidates have a substantial impact on the world economy because of this skepticism toward free trade agreements. they say that campaign rhetoric is focused on questioning the vision of globalization. because that similar to the brexit campaign. british home prices have barely increased since the brexit vote in late june. and you report says the average price of the house in the u.k. rose .1 of one percent. for the last 12 months and prices are now up 4.2%. that is the weakest increase in three years. the tax increase on investment properties gets some of the blame. a lawsuit tip to south korean electronic giants of agree not to recruit each other's employees in silicon valley.
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samsung analogy were named by andsuit that says tens thousands of u.s. workers are involved. s are notnie commenting. last you, apple and google and others reached a 405 million dollars government over the same antipoaching claims. vonnie: time for our quick take, or we provide background on issues of interest. iran needs to 11 it to revive the economy, the third-largest in the middle east, which is set back by years of sanctions. the government now offers deals to international oil firms but there are risks. here's the situation. iran's oil output has thomas returned to the pre-sanctions level after iran reigned in their nuclear program under 2015 deal with world powers. they wanted to boost production by another 20% by 2021. the government is calling on
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foreign companies to invest 100 begin dollars in the oil industry. here is the background. for most of the 20th century, iran has had almost no control over oil productions. it effectively owned iran's oil and received a large share of the profits. after years of this discontent, it nationalized oil field in 1951. connecting 79, 1 of their first acts was to re-nationalized iran's oil. for two decades, no foreign oil companies operated in iran. some came back in the 1990's, but most stopped operating by 2010. political risks start to outweigh the benefits. big oil companies were not passive iran's field likely. it is unusual in a fresh offering, but the list of risks is long. business regulations in iran are
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complex and they would have to join a joint venture, making it hard to comply with international anticorruption legislatioand e remaining u.s. sanctio. the elons 2017 could change the landscape in iran wants want. you can read more about the quick takes online, just had to bloomberg.com for more stories. stay with oil, look at prices. you can see it dipped after the international energy agency said the oil wealth will last longer than previously bet. says it will probably linger until late next year, but more on why the forecast was changed, let's bring in julian. we are heading toward the julian: thousand for global oil demand has been cut back
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significantly, particularly for the current quarter. they have revised growth from about 1.2 million barrels a day to as little as 800 barrels a day, based on preliminary data for july and august. they have rolled that forward and trimmed their demand for del potro much. it but by not much. that has pushed the markets like into oversupply at least until the middle of 2017. mark: it comes after opec flipped its forecast of arrival supplies to next year, predicting the increase from outside the group. julian: both of them have flipped their forecast from one that shows balanced returning in the current quarter 20 chose balance now being put off for
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four months. interestingly, they come from a different direction and the iea comes from lowering demand forecast and completely the opposite for opec, by raising the forecast with non-opec output. vonnie: some of them also depend on global growth, so this is kind of a domino effect if received in a little bit better. that changes the parameters completely. julian: that is possible. international energy agency said is that so far this year, with crude oil prices hovering around $50 a barrel, you've got very little here on your change in product prices to final consumers and that means you get much less of a boost to consumption from falling prices, which we have had in the past. they also point to a slowdown in chinese growth and the possibility of a slowdown in
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indian growth. a slowdown in u.s. growth, which seems to be rocketed ahead in the early part of this year and also in europe, a return to year on year falls in oil consumption upsetting the gains that we have seen in the first half of this fairlyo you have some well researched arguments for the slowdown and demand growth. vonnie: it is a pretty strategic at this point because opec and algeria next month might change now that the forecast is out or is that too much to expect? julian: i do think it makes opec's job more difficult. thatd always argued analysts that we were reporting on were all doing and output at current levels with angry oil produced, certainly in the gulf region and close to record levels, and it would do little to balance the market.
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but i think these reports to is to sort of put a nail in the coffin of this idea that the market is rebalancing on its own and that opec really needs to do nothing if it wants to rebalance the market before the end of this year. if it wants to do that and it wants the balance, and i question whether every opec member does, but it opec once the balance, it needs to do more than freeze. ofk: algeria, 26 or the 20th september, thanks for joining us. lots to talk about when it comes .o oil and the german company the ceo is leaving, effective today and bloomberg has reported he was involved in those failed merger talks. part of the blame has been laid at the feet of him. this is according to people involved. , theyt shares in linde shot up, almost three points and
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9%. this is bloomberg. ♪
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vonnie: welcome back to bloomberg markets. i am vonnie quinn in new york and along with mark barton in london. this would be the sportiest car, porsche taking their four-door coupe and achieve a station wagon version, according to people familiar with the matter. we do not know for sure what it will look like, but here is the version they unveiled four years ago, the first wagon ever and it stresses the brands portfolio beyond the sports car. we are joined by bloomberg in frankfurt. of do not tend to think porsche and station wagon in the same sentence. why is porsche doing this? think this is taking a brand to the next step up and
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expansion plan that first started to make the brand more accessible to car buyers by lowering the price tag and they added this porsche to the 9/11 line up several years ago and then they came with the expansion and now, by adding like a new body style, this is like sort of widening the appeal and adding more potential customers to the brand. vonnie: who will the customers be and what will the price range for this station wagon the? -- be/ ? christoph: the details and not decided yet as far as we know, but the porsche at the moment, the hybrid version that they will show later this month at the paris auto show, will cost roughly 110,000 euros, including taxes, but that is europe, and the prices for the u.s., from what we know, have not been decided yet. and: how did the delivery
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the model age is? doing need a station wagon panamera? christoph: that is a fair question. hasn't seen sales decline over the last three years, while most of the face growth of porsche has been on most entirely coming from the suv lineup. the cayenne suv and smaller, so they probably or it is like uncharted territories for the brand to go into that segment of the market. mark: it is important after vw and be in emissions scandal, approaching $20 billion and it forces a vital component that it is a stable, isn't it? christoph: it is very stable. the sales are actually going up. about eight years
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or nine years of record sales by now, so the situation of the companies is one of the most profitable car manufacturers out there. they are constantly having a profit margin above 15% and that is something that is of course extremely important to the toent company volkswagen maintain to overcome the crisis. vonnie: i am waiting for the porsche pick up. thank you for joining us from frankfurt. mark: coming up on the european close, what one bloomberg columnist says about negative field and how it could be what is equivalent to the chicken farm. find out what he means. this is bloomberg. ♪
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mark: it is 4:00 in london and 11:00 in london. it there are 30 minutes left in the trading day. it vonnie: you are watching the
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european close on bloomberg markets. mark: we are going to take you from new york to london. we have a story out of argentina and switzerland. this is what we're watching today. the agency is out with a new forecast saying surplus will persist into late next year, pushing prices lower in trading today. vonnie: wells fargo is taking steps to eliminate a sales scandal. they are limiting goals for retail bankers. carson block says european investors are not doing their homework. companies thinks many are a ticking time bomb. mark:

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