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tv   Bloomberg Markets Americas  Bloomberg  November 8, 2016 10:00am-11:01am EST

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vonnie: from new york to london to san francisco. it's election day in america after campaigning for more than a year, voting is underway and polls will begin to close in less than 12 hours. we bring you the latest coverage from the bloomberg politics team. mark: monitoring all the market action today. currency volatility subsiding as opinion polls show hillary clinton is ahead of donald trump. vonnie: about 30 minutes into trading day in the u.s., julie hyman has the latest. are people still manning the desks? julie: there are but they are not doing much.
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a little bit of it down movement but mostly sideways. cost stock rally added $443 billion to the value of equity globally. now we are seeing a pullback from that. we have to wait to find out and out come to the election so looks like traders are waiting to some extent. -- take ak at the look at the bloomberg, i'm looking at intraday action. that nine session slide we had. the jump yesterday and the sideways movement today. down by more than 1%, still going back to when this slide began a couple of weeks ago. we have been watching the vicks as well. board, theacross the vicks is back up today. you can see up close to 20 in today's session. the 2-year note rates we have
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been watching those as well. even as we see selling in stocks we are seeing selling in bonds as well with the two yield going up a basis point. some individual stocks to mention quickly. we got huge moves. hertz global losing almost half its value. the company's earnings per shares in the third quarter missing analyst estimates by more than 40%. the company's been having issues with depreciation of the cars in its fleet and its rental volume. eant pharmaceuticals -- the could be more surprises in store and cvs missing estimates. it says more prescriptions are being filled outside of its network. 27%: volume is roughly below the 100 day average for this time of day. caution as we await the outcome of the election down by 1/5 of
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1% after rising yesterday for the first day. , the europeanx volatility gauge which is rising today after falling yesterday 11.the first day in that was the longest stretch for a number of years. volatility pre-brexit up as much as 40. nowhere near those levels. this shows lower anxiety in the euro-dollar pair which is the world's most traded currency, one week volatility for the euro-dollar rate yesterday onpping by the most as monday. there is the brexit phot. look at volatility shooting up. this is sterling dollar, the white line in the month of brexit, in june, the blue is the dollar peso in the last month. we have overlaid dollar peso in the last month on top of the
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performance of sterling against the dollar in june. up then dollar moving all the way downwards. this is the dollar moving up against the peso. it has come down in recent days. what sort of move would we see in the peso if trump wins the vote? we could see it fall to 23 to the dollar. this is a wonderful chart by hillary clark -- overlaying the pound with the peso. many have compared the two events. u.s. election and brings it. -- and brexit. vonnie: donald trump himself and of course emerging markets being compared to britain is a tough thing to have to hear. let's check in on the press board news.
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alisa: hillary clinton voted earlier today at a chappaqua, new york polling station. secretary clinton arrived with her husband, former president bill clinton. voters cheered for clinton and she cast her ballot. >> i know how much responsibility goes with this. so many people are counting on the outcome of this election. what it means for our country. i will do the best i can if i'm fortunate enough to win today. alisa: mrs. clinton will meet supporters tonight at the javits center in new york city. she will workys to reinforce the relationship with the u.s. no matter who the next president is. may told sky news she will call whoever wins today's election as soon as possible. on sunday may said she wished the presidential race had been more "calm and measured. " syrian kurdish forces have made advances in there it -- in the city of raqqa.
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of the kurds are being backed by warplanes from the us-led coalition. south korean president has decided not to attend and asia-pacific leaders meeting in peru. she is struggling with turmoil at home. park will be the first south korean president to miss the summit since 1993. parts of a main street have collapsed in the heart of a major city in southern japan creating a massive sinkhole and cutting off power, water and gas supplies to parts of the city. authority say no injuries have been reported. the sinkhole is more than half the size of an olympic pool. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. vonnie: thanks. happening right now, donald trump is about to arrive at ps 59 in manhattan to cast his
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vote. beat in place.e, we will continue to monitor that. you saw the clintons casting their vote just a little bit ago . let's continue with politics as voters vote for the presidential seat its self others had to the polls to pick their next president. joining us now is kim wallace, head of washington policy research. assistant secretary for legislative affairs in the treasury department. kim, i love your thought today that the idea of the lopsided election is going away. we no longer have landslide mandates. kim: george herbert walker bush was the last president to gain more than 75% of the electoral college votes available. we are on a streak of six consecutive presidential elections in which that has not happened. it's a sign of a lot of things,
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including the closeness in terms of the division in america. vonnie: i guess it could be a .ign of divided electorate in the sense that there is somebody on the one side and somebody on the other and it is balanced. what happens if we get a very slim majority today? is there a concession speech on the part of the other candidate? kim: one would hope so. i don't find it to be terribly -- terribly important. it's not going to cool the hot partisan rhetoric much less the politics in this town. at the next president is going to have to assume the mantle slightly damaged from a contentious campaign. congress office with narrowly divided among democrats and republicans in both houses. that won't make for easy sledding. mark: how does the country right itself? you call the election campaign disgusting, wasteful, historic
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campaign. the real tough job ahead is unifying the country. how difficult the job is that going to prove? it is alwaysly difficult in a situation where the country is divided as hotly as it is now able to more difficult. i'm of the view that there is an increasing wariness among americans, particularly voters, gridlock for gridlock. there will be a few things the two sides will have to find to work on. it will be a lot of fighting and rhetoric. we will not turn over a new leaf because of an election, certainly not this election. both parties are going to look at 2018 and 2020 and ask the question, what can i go to the voters and tell them i have done that is in their interest. my sense is there will be pressure on both parties in whomever is elected president. mark: on it what issues will the two sides find a common purpose? in: the list will be longer
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a year or two then we could know today. sharpk you start with a as division has been over the perception of economic policy. i would be surprised if the next president and the next congress don't at least attempt to put together an economic program that appeals to common americans more than just the usual who receive tax cuts and other favors in fiscal packages that are noted this decade in the previous decade. my sense is the economic angst that bubbled up through clinton -- through trump and sanders will be addressed lest the new president increase political risk going into 2018. vonnie: whether donald trump wins or loses, what happens going forward to the gop? to try the first effort and make the party a cohesive party again? kim: the first half of that
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question is a little easier than the second. in the first part, donald trump is the latest conduit of an internal fracture in the gop that has gone on almost 10 years now. certainly for the last eight. it has coincided with this president and his two terms but it was bubbling before then. my sense is that internal fight is not over and my sense is it will take a few more elections before one side games control. -- gains control or we see the development of a third party. .onnie: kim wallace thank you for joining us today. head of policy research at renaissance macro research. mark: coming up, we are going to dive into the polls with avis rothchild, founder of predict why. in microsoft research. why he says market-based research could be more accurate than traditional polling
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methods. this is bloomberg. ♪
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mark: live from london and new york i mark barton. vonnie: i'm vonnie quinn. let's get back to the only story of the day, election day in america. hillary clinton and donald trump made final pitches presenting contracting -- contrasting views of where the nation should be heading. joining us for the latest is megan murphy. ? will we have record turnout meghan: we have seen that huge turnout a particularly between the latino community. a surge in parts of texas, florida. it's going to be interesting tonight to see how much turnout we see. we saw a lot of efforts from his campaign to almost suppress her
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turnout. we'll have to see how those -- how much enthusiasm is there. vonnie: is whether in play? megan: it's a presidential election. if less of a factor than it normally is in say and midterm. a beautiful day in new york. we see pictures of long lines in many areas of country. mark: pennsylvania, north carolina, florida, we will hear from them early. what is the earliest where we can not categorically say but pretty much say the election is going toward this candidate? megan: i think what we're going to be looking at his pennsylvania as you say but north carolina is going to be a big early state. if she wins in north carolina it limits his pathway to the presidency. i know both of the campaigns are pursing those numbers to see what were going to see. , helorida, when we see that has no pathway other than
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florida frankly and if she takes --rida particularly early it's going to be a long night. mark: it depends on various imponderables. megan: his son was out this morning saying if he does have is a legitf -- if it when he will concede. that is a different tone than we have seen him take and we will have to see if it's a tight race if we are counting the ballots in urban areas and particularly , lawyers toht spring into action for valid questions. he does have that narrative. if there is some controversy i think he will try and take it late tonight. vonnie: both campaign headquarters are in new york city. do you anticipate any problems anywhere in the country tonight? megan: we are really focused on two fronts. really old-school intimidation at the polls, people preventing people from actually physically voting and we are focused on the
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other side which is the new dynamic which is possible high-tech interference, hacking attempts. we and many other people have a full team that are ready to look at this should we see any disruptions. right now we have not heard it. as you said those campaigns are in new york tonight. we'll see if she can break it open. 2016 is the last day am sure there will be several storylines. will be watching you from 7:00 p.m. eastern and coverage starts at 5:00. mark: let's get more insight on the polls. let's see what they are telling us about the outcome of the presidential race. according to the final bloomberg national poll hillery clinton leads donald trump by 3% points among likely voters nationally. before fbi director james comey
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be nonced there was charges in connection with hillary lindsey e-mails. for more on the polls in different ways of conducting research on spring and david rothchild, an economist at microsoft research. thank for joining us. simple question but the most interesting one, talk us through the probability, winner of the senate,cy, house and talk us through likely permutations. david: thank you for having me. right now we have the presidency at about 89% for hillary clinton and 11% for donald trump obviously. 65 or 66 for about the democrats. and the house about five or 6% for the democrats. republicans. we start with the presidency. a market-based forecast. using futures contracts along with polling and other information.
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it's basically assuming that hillary clinton is more likely than donald trump to exceed polling numbers. right now donald trump would have to exceed the polling numbers by a decent amount in a couple of states. for that to happen, either the voters need to be more like his voters or those people who turn out to vote need to be more supportive of him. early voting does seem to indicate that hillary clinton cost get out the vote advantage, more money, more people on the streets, is working. it seems unlikely the voter population is going to be more favorable for donald trump than what we are estimating from polling. it seems there is not much evidence for shy trump voters which is a good indication for clinton. in the senate we're looking at a 50-50 split is the most likely option which puts a lot of information on to who's going to win the presidency. vonnie: why is a such a major difference between the polling and the betting markets and the forecasting?
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david: the betting markets are able to look at information beyond polling data. able to look at the get out the vote operations. and they are able to look at a lot of questions about how high will latinos go for clinton. how will these shy trump voters turnout or not turnout? it's really a question about will there be pulling error in h her favor or his favor. right now, it is really likely that the polling error will be in clinton's favor will will be a victory for the person who is already ahead. mark: if hillary clinton wins but loses both the senate and the house it's sort of ill clinton revisited -- it is sort of bill clinton revisited. are we expecting allah taking in future years? david: we do have markets for those as well. of structure and is an is what we are looking at now. obviously this question about whether or not republicans would
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allow any candidate through from the supreme court is in a lot of people's minds as a bellwether of structure. -- bellwether of structure and. get --democrats do not there is a non-negligible chance that they will of struck the currently open seat and any future open seats and it is something to be wary of. vonnie: one of the popular , the spread now betting for example. the down ballot races. david: people are following the top line betting. that's always a popular thing to do. there are markets for all 51 states and their cutting a lot of action especially in florida and north carolina. to an extent even in michigan and other states where trump has been trying to push. people are trying to bet on the spread. this a lot of action on whether clinton will win
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by four or more percentage points which seems to be somewhere around the break point for national estimation. you are seeing all sorts of betting about ultimate makeup of the congress versus the presidency. to see whether or not we will have divided leadership are not. vonnie: i'm going to get the craziest bets in a moment in tweet it out. thanks to david rothschild, economist at microsoft research. onk: u.s. election results bloomberg television. our election coverage starts at 5:00 p.m. eastern time with a two hour with all due respect special. at 7:00 p.m. eastern are bloomberg election special with david gora. washington bureau chief megan murphy. this is bloomberg. ♪
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vonnie: this is "bloomberg markets. " it's time for our latest bloomberg business flash. blackstone group is buying the $3.7rst million -- $3.7 billion. the transaction is due to close in the first quarter of next year. british regulators are investigating how newsweek's to the press that royal bank of scotland would take a $5 million charge. the news media were briefed on the news before the official announcement was made. the head of the financial conduct authority said he was extremely disappointed. tesla motors is buying a german engineering company to help automate its electric car manufacturing. bromanpany is buying engineering which tesla says is a leader in highly automated manufacturing methods. tesla expects to add or the 1000
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jobs over the next two years as it built its model three-car. that is your bloomberg business flash. investorsrs and anxiously awaiting the outcome of today's u.s. presidential election. a look at how fixed income managers are positioning themselves ahead of results. have a look at what's happening. live pictures here. i'm in london. that in the u.s.. americans streaming to the polls today.
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vonnie: live from bloomberg world headquarters in new york, looking out over midtown manhattan.
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both headquarters a few blocks away from each other. i'm vonnie quinn. mark: a postcard, zero degrees. it's pretty chilly. i mark barton in london. alisa parenti has more from our newsroom in new york. alisa: scotland is joining a legal challenge over the british leaderents -- scottish nicola sturgeon announced the move today. scottish national party has raised the possibility of another vote on independence from the u.k. scotland voted to remain within the eu. germany has arrested five minute of it -- a recruiting for islamic state. the suspects focused on recruiting young muslims in germany and raising money to send them to syria to join up with islamic militants. also in germany, chancellor angela merkel's plans to cut carbon dioxide pollution by more than half over the next 15 years . that is according to the draft of the plan obtained by bloomberg. the reduction would be the most ambitious in the european union.
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merkel's government has squabbled for months over how to .ivide pollution reductions in the philippines the supreme court has cleared the way for the remains of her name marcos to be moved to the country's national heroes cemetery. marcos ruled the philippines for three decades before being coup rodrig forresident obama fo field of tradition, game of pickup basketball game with friends. in army's fort mcnair washington. obama started the election day tradition during the 2008 presidential campaign. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. vonnie: thank you for that. european shares getting back gains.
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european treasuries holding steady. investors are cautious as they await the outcome of one of the most contentious elections in recent history. , cohead ofrd multi-asset income and the firm's u.s. election spokesperson. the firm has $117 billion under management and john joins us now with a look at how they have been positioning themselves in uncertain times. have you taken a position in terms of the u.s. treasury markets on who will become the next president? are you waiting it out? john: we have taken some cautious positions ahead of the election. we think likely to be a vote for clinton that it's still too uncertain. effectively we have added duration back. although our preference is not to add it back through treasuries. it's to take exposure in other markets. we are cautious overall on treasuries. if trump is elected we would expect some sort of risk off reaction which generally should benefit fixed income markets.
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vonnie: you said that you generally preferred to look at other markets and terms of who will be the next president. what? markets might they be john: we expect bond markets to benefit a risk off move. other markets react in currencies. so bond markets generally government bond markets rally but we would rather markets like europe. the bond market, just as a hedge against a sort of sharp moved to low yields mark:. how else are you been hedging in the eventuality of a truck presidency -- a trump presidency? john: a trump presidency would be a risk off event. a little akin to brexit. an immediate shock and maybe a period of markets trying to work out what it means. essentially we have hedged about a quarter of our risk. we've done that by selling equity futures. we sold s&p ftse futures.
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we've also taken -- we are essentially short a number of asian currencies we think might get hurt by his trade rhetoric. we've also added long positions in non-dollar currencies like the yen in the swiss franc to protect against a bit of a safe haven flow. mark: if clinton wins i suppose the next to the attention is on the fed meeting. at 80% or so partly -- we are at 80% or so aren't we? john: i think they have built up to this. the bigger question may be whether the go beyond that or what they do. mark: and the answer to that? john: we think the market is complacent about the medium-term. we begin to see better growth numbers. a little bit more inflation. pricing in effectively just over one additional rate hike over the next 12 months. it seems a little bit too optimistic. we think they will probably do a bit more.
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vonnie: you think the u.s. economy would be able to withstand two rate hikes next year. what do you see for growth and inflation? john: most leading indicators we look at suggest global growth is accelerating. moving above trend. it's quite broad-based, not just the u.s.. seeing it across other developed markets and emerging markets. for the first time in a while not only is it synchronized put its nominal growth as well as real growth. we are seeing inflation pressure. we think that is beneficial for earnings. quite beneficial for growth or inflated assets like equities, credit markets. but essentially it probably does on bondfurther pressure yields which are in the process of repricing but have not quite gotten to where they should be. vonnie: you say after struggling with weaker fundamental some emerging markets are looking attractive. which ones would you consider? john: we would divide the
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emerging world of into cause i developed, places like the czech republic where we are seeing quite a lot of pressure on their currency. effectively pegged to the euro with concerns of what's going on in europe. a lot of money flowing in there. they may have to abandon that flaw and that could lead to lower interest rates and a further rally in the bond market. markets like that, maybe south korea. on the other side you have high yield is where you see inflation come down on the back of falling oil prices over recent times. but also in particular stabilization recovery in currencies. so places like brazil we think have still got significant scope to cut rates even above and beyond what markets already pricing in. mark: how has your view of the u.k. bond market changed in the last seven days or so? especially after the boe went neutral on us. john: the guild market was our
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least favorite bond market for the last couple of months. it has sold off pretty dramatically. clearly the market has repriced expectations of rate cuts. we may still get a rate cut but it will be sometime early next year. we're actually cautious that people are over egging the ability of the u.k. to deal with brexit. it feels to us that immediate impact was a confidence thing which was dealt with reasonably well. medium-term we will have higher inflation which will squeeze consumer incomes. a lot of uncertainty about future investment. we would expect the u.k. economy to slow. on balance we think the bank of england will air on the side of easier policy. we think the yield curve is suitably steep. mark: after the election is out of the way depending on results we then focus to another referendum this time in italy the beginning of december.
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to what extent does that have the capability of causing nervousness particularly a run for -- particularly among periphery deals? john: we have brexit and now we have the u.s. election come of the italian referendum. the way we approach it is we have part of our process that tries to anticipate things that might happen in the next 12 months, how likely they are and what they would do to markets. we have been through a process of modeling trump versus clinton . we are in a process of thinking about what we do in advance of the italian referendum. the market can really only focus on one thing. assumes this process, the election gets out of the way, the market will start to shift its focus toward the referendum. our sense is that it could be quite a destabilizing event because it is a high probability that renzi will lose the processesnd that sets that potential he lead to a five-star government --
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mark: membership possibly down the line. john: it will undermine confidence in the euro. it will lead to some widening of spreads although we have seen that to an extent between italy and the core and maybe other core countries as well under some pressure. our preference for hedging it has typically been or has mostly been to be essentially defensively positioned in europe's. norwegian krone, yen, sterling given how far it's fallen. vonnie: john stopford. we will have you back to discuss that in further details. up, stephen roach tells us why the election will be called early this evening and the challenges the next president will be facing.
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vonnie: this is bloomberg markets. i'm vonnie quinn in new york. mark: in london i'm mark barton. julie, you're taking a look at oil? a little bit of a spike in the last minute or two. julie: gold that is. we are not sure exactly what is going on. rising quickly. gold prices had earlier been little changed as it had most assets as traders await the outcome of the election are you we see this spike. we will figure out exactly what is going on or at least attempt to. some deal speculation. 3g capital of brazil. jorge paulo lehman's company. the core into the brazil wall street journal, 3g capital is
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seeking a billion to $10 billion -- seeking a billion dollars to $10 billion. here are the stocks that appear to be rising on speculation they could be a target, kellogg's, general mills, campbell soup. in march of last year the journal in the u.s. have reported 3g had looked at general mills and kellogg's. that is why speculation may be surrounding these companies. 3g has a history of looking at consumer companies. here are some of the deals it has done. that burger king acquisition in 2010 that ended up merging with tim hortons and forming restaurant brands in 2014. heinz was bought 2013 and managed to craft heinz in 2015. those are some of the deals 3g has done. if you look at lehman's assets and what he has at his disposal, $19.2 billion of his money is in
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evinbev. restaurant brands has about $2.5 billion. $200 billion according -- $200 million from figures got from the bloomberg. idea of where this a tolion-dollar -- $8 billion $10 billion -- we will keep you posted on developments. any confirmation and where this money could be going. for now it is affecting some stocks in today's session. mark: let's talk election day. vonnie: it is election day in america after more than a year of campaigning debating and mudslinging voting has been underway for several hours. by the end of the day we should know who the 45th president of the united states will be. this morning on bloomberg roach'sance -- stephen view on america's future. : the last day we
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will have to listen to donald .rump is a credible candidate we can now go on to focusing on what it's going to look like for president clinton which i think is the most likely outcome. she faces a challenging economy. a challenging world. tough issues in china centric asia with china more muscular on foreign policy. how she addresses that without tpp, which is something she believed as secretary of state was the centerpiece of a china containment strategy, is going to be a challenge for her and i think she's going to figure out how to get back into that approach. chart.t me bring up a this is my chart of the year. it's real simple. this is the culture year moving average of real gdp from morning america in the late 90's and
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that we go to what we did in 2006, not that above 3%. we are not getting it done. you predicted this. you are very strong on a soft consumer. we are down into 2% run rate on gdp. 40% decline in economic growth in a matter of 20 years, maybe 15 years. what is a roach prescription to give us a little more economic growth? stephen: you got to get behind the number. the major reason for the shortfall of gdp is unprecedented weakness in consumer demands. american consumer growth rate for eight years has been about 1.5%. that is two points below the precrisis average for the 12 preceding years. we went through a balance sheet recession like japan did with consumers overly levered on a property. still paying down debt trying to rebuild savings and given the
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shortfall of labor income because of stagnant real wages may be changing a tiny bit right now, they are not getting back to where they need to be. we have to address the consumer. vonnie: will we ever go back to francine:re like -- will we ever go back to normal? stephen: i hate that word. headwind.allenging there is so much focus on providing relief for beleaguered corporate america. the real issue is taking american consumers whole again, assisting them with their excess debt and their total lack of saving in addressing an insecure and frightening future for many american families. francine: this is my unemployment rate. the blue is under democratic president. we brought it back to 1950's
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because tom keene likes history. it's gone down. i know we need to look at the participation rate that is the u.s. economy all that bad? i know there's an inequality problem but if you look at the percentage of the poverty rate it's also gone down. stephen: the economy as tom pointed out, the growth rate in this recovery has been about half the historic norm. the unemployment rate has come down significantly because the participation rate has basically collapsed. there's a big debate on whether or not this is structural or cyclical or a combination of the two. i think the pieces of the economy that tell me the most are the profound shortfall of domestic aggregate demand driven by the american consumer. worldwide.his is stephen: i would not call this a
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global phenomena. when he to look at united states economy. typically recovery is 4%. this has been 2%. the overly leveled savings short american consumers. present clinton will have to address that quickly if she wants to transform the attitudes of the middle class toward the next america. tom: what state would be looking at most closely tonight? stephen: i think the usual. florida, michigan. i don't think they will be close . i think we will be able to go to bed early tonight. i think the momentum is not there. the media is trying to make this look close. i sense the hot air is out of the trunk alone. t the secretaryom clinton keep janet yellen as chair of the federal reserve:? stephen: no need for her to change at this point.
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vonnie: stephen roach on bloomberg surveillance this morning. f, thehares of m and retailer announces plans to shut down stores at home and abroad. this is bloomberg. ♪
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mark: live from london and new york i mark barton. vonnie: i'm vonnie quinn. this is bloomberg markets. mark: a look at some of the biggest business stories in the news right now. trader accused of causing the flash crash will say to a. federal court in chicago. that's been delayed until tomorrow. navinder sarao lost the battle to both avoid being extradited from the u.k. accused of -- prosecutors blamed seraphic
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causing a trading frenzy that ofefly -- blamedsarao causing a trading frenzy. iran will partner with france's total and china national petroleum. the deal is valued at $4.8 billion. hotel has been working on the project shanks -- when sanctions forced it to stop in 2009. local governments across the u.s. are asking voters to approve about $70 billion of bond sales. largely by driven california which accounts for about 42 billion of the proposed deficit. officials seek to raise funds for schools poetry its rotation and affordable housing according to financial data. the voters have been asked to back large issue -- schools in denver and more in columbus,
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ohio. of marks &res spencer are tumbling after its new ceo announced plans to close stores at home and abroad. it in 10 countries. the company would sell clothing and food, struggling to compete with online and discount retailers. joining us is andrea felsted. the business model where you sell food and clothing under one roof broken at one point? >> it does look like that. they have said they're going to downsize the amount of space they dedicate to clothing and home furnishings. it really does look like m and f as given up on clothing. mark: too little too late? andrea: the stores are going to close at about 10 percent of their stores that sell clothing and food. when you think 17% of clothing and home rare -- and home where
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sales online, that is not enough. they're going to transform selling clothing to selling food. that takes to about 60 stores where they are no longer selling clothing. mark: dedicating more floor space to food. andrea: it really is not. i think this is what has investors as well. it's just not enough. food sales actually are stalling. they have fallen in the last two quarters. puttingoncerned that lots of space into food at this time is not sustainable. clothing is still more profitable than food. you are dedicating space to an area which is less profitable and there is cost associated. mark: investors are not buying into it. andrea: we've had a lot of strategic blueprints from a lot of ceos.
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[indiscernible] mark: stuart rose? andrea: stuart rose did have some level of success up until the recession. he did turn things around. mark: andrea's first line of her gadfly feed, they're not just store closures there are m&f closures. that is a play on an ad campaign. that is wicked. andrea: it was pretty instantaneous area i had it in my mind for a while. felsted.rea have a look at what's happening on the european close. join from berlin by the deputy finance minister of germany covering the impact of the election for germany. latest outlook on brexit. ♪
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mark: 11:00 a.m. in new york and 12:00 p.m. in hong kong. 30 minutes left in the trading day in europe. vonnie: i am vonnie quinn in new
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york, this is the european close on him bloomberg markets. ♪ mark: we will take you from new york to london to washington and berlin in the next hour. here is what we are watching your voters take to the polls in the u.s. to decide who will be the next president, first results expected at 7:00 p.m. eastern and we will bring you the latest from the bloomberg's politics team and cover the market impact depending on the outcome. vonnie: u.s. stocks falling while bonds are fluctuating. polls showing hillary clinton narrowly ahead of donald trump. all of europe will be watching the results of the u.s. elections closely, what could the implications mean for u.s. -european trade relations? we will speak with the deputy finance minister of


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