tv Bloomberg Markets Americas Bloomberg November 15, 2016 10:00am-11:01am EST
vonnie: washington to rio and cover stories from amsterdam and london. president-elect trump transitions. reports of rudy giuliani or secretary of state. steve newton being recommended for the next u.s. treasury secretary. mark: speculation interest rates will stay lower for longer. the neutral policy past is appropriate. vonnie: according to bob dudley, the oil market pretty .essimistic we will bring you the latest
from that interview as it makes its final and dramatic push. 30 minutes into the trading day and julie hyman is here with the latest. a flip today from what we saw yesterday. the dow at one point rose to a record. the s&p and nasdaq are up little bit with technology shares rebounding. moving sideways in the stock movement yesterday. .8% rise on the headline number. that is also seeing the effects in the bond market. it is persisting on the shorter end of the curve. we are now seeing buying on the
longer end with the 10 year yield backing up five basis points. the dollar also seeing strength this morning. that happened on a four-day street rally. now we are seeing if rising earlier. tech stocks are coming back. the strengthening after outperforming in the major averages. you just heard vonnie quinn opec and what we heard bob dudley saying about the lack of confident -- confidence in the last opec ande heard bob push. we are seeing some optimism being expressed. above $45. we are seeing many of the oil majors also higher. schlumberger energy is the best the s&p 500roup in
today. >> giving a boost to oil and gas the best, oil performer on the wider sticks hundred. a bit of a flip today. those industry groups with basic resources and bank lower. the bond prophecies that are rising today. little changed on the stoxx 600. vodafone reported second-quarter eat estimates. the continental european .perations better than expected outweighing a $500 billion euro write-down. vodafone does faith challenges in the u.k., as well as in india, which is a key market for growth. britain planning to leave the eu will affect the economy. means --on for a remains fierce.
down 5.4%. this is an interesting story. reddish american tobacco are higher. the second-biggest maker in the u.s. seeking a higher price rejecting the $47 billion buyout. this is according to people familiar with the matter. that -- stoped cost offer represents a 20% premium. the tobacco giant falls and willing to increase the price slightly. we have had a plethora of data and the euro area. in the third quarter. in line with the second quarter. economy -- the
italian economy grows bigger giving a boost, to the prime minister ahead of vote next month. the pickup could be slow there. this may hinder efforts to deficit.he budget in the netherlands, gdp rose unchanged from the previous quarter. this sets us up nicely for the meeting in december. tend toy or one they bond purchasing program? bring it on. vonnie: checking on the first word news. begun ak obama has president.p as he is now in greece where they hope to focus on debt reduction. president may have little ability to negotiate with creditors in the wake of the donald trump election.
>> for us, democratic and republican administrations there a recognition that the nato alliance is vital to the .ransatlantic relationship it is the cornerstone of our mutual security as well as prosperity. trump questioned the commitment to nato during the campaign, but president obama said he could assure european leaders that the u.s. will not back away from its commitment. police in germany have rated more than 200 offices and linked to the group true religion. banned theent has organization. radicalized young people and recruited them to invel to syria to take part the civil war. russia's economy minister has over accusations he took a $2 million bribe in a .ase involving bras met the cap the member was caught in the act of receiving money.
of receiving a bribe in return for approving in the oil company. there is a report that mayor is the favorite to become secretary of state. comes from the associated press. he is a former federal who lacks extensive foreign-policy experience. global news 24 hours a day than 2600 more journalists and analysts and within 120 countries. this is bloomberg. thank you. the follow-up from donald presidential victory appears to be easing in the financial market. most notably in the bond market. showing the relative strength index to the 10 year yield.
what is the market reaction? now is the chief investment officer at the private bank that has more than $200 billion in assets under management. or the inflation trade market reacting to something it did not expect? all, we have to it was an important milestone and need to take a breather. expect the bond market not to go in a straight line. the road with the policy is probably a slower pace that monetary policy. what we expect in the coming months is 225 and 250 just
before the state of the union. then the market will be rafting to the state of the policies. it is a structural change together with a cyclical upbeat for the economy, which is bad for the market. think many players will be satisfied to see the bond market up.g the administration working hand-in-hand with the federal reserve for proper inflation. >> elsewhere asset prices have done well with the monetary seen. mix we have if we do get the fix -- fiscal mix, is it for sure asset prices will continue to move higher? >> i think there is first of all
boost.cyclical is positive for the manufacturers. drive.he fiscal the u.s. is taking the lead. china was in the league close to a year ago. they were able to put together a comprehensive fiscal policy. now this is happening in the u.s. and will have a beneficial effect for the rest of the world. >> currencies, bonds, and stocks. how much further does this have run? important markers is the u.s. dollar. one hundred five against the euro to give an indication. create a basic for
stabilization. they have been sold off indiscriminately. i think the emerging market is a group of assets, and all of the bases there. linked to thely trade zone that is china and india. for that reason, we should affect stabilization in the asian market. especially considering the china is behaving. mark: what is the effect for europe? if you look at the comparison, equities are up slightly since .rump was elected bond yields have gone up considerably. you expect the european asset space to continue
trading in the coming weeks? >> there is more political risk to come and it is behind in the and this requires a premium for assets. the economy growth and europe is solid and strong. if you look at the gdp number are presenting, it is on the way to recovery. europe will be left of by the market. finally, does all of this that emerging markets are to be avoided until something >> notppens jacob because there are more companies to capture. the bigger share of i.t. is not
in the u.s. but emerging markets asia. we are facing the same animal we ago.ive years .he value chain i think it is a different animal . we have more accessibility from the current perspective. flows will play an important role. we shall not rise up emerging markets, especially asia. vonnie: coming from the bureau.g amsterdam thank you. we're on fed watch. fischer speaking today. hiswill be able to watch remarks live on bloomberg television. donald trump will meet with mike pence today to review names for the cabinet. we will go to washington for the latest. president obama a news conference right now with alexis tsipras.
mark: this is bloomberg i am mark barton in london. donald trump set to meet with michael pence and sharing the transition team. reince priebus asked white house chief of staff the key signal to trumprepublicans that lands to try working with the .ouse speaker, paul ryan also following reports of rudy giuliani and former goldman partner is being
recommended ford u.s. treasury report.y according to the latest, we bring in mike washington. the latest is some of our trump hours.e at reporters and said economicrking on the plan with transitions to make sure we get the biggest tax till past, the biggest changes since reagan. days in theiting first days of the trump presidency. sounds like he is being groomed to be the next treasury secretary. >> it sounds like he is being groomed that way and we know people that have spoken with that that is the truck --ation of the trump advisors. we do not know what trump has
decided or if he has decided yet. know truck -- trump advisors. that it is going in that direction. what else are we hearing? the ap report is that giuliani is likely secretary of state, and they understated to say that will be an out-of-the-box choice since he does not have a big foreign-policy background. jeff sessions is someone we have lot. a theave also heard about possibility of rudy giuliani for attorney general. >> the third former goldman sachs executive to head up the treasury secretary. vilified this type of campaign.n during the how will he married that to his supporters? >> it will be a challenge, but you can see that he is trying to
marry the traditional republican conservativism with this approach. mr. establishments, mr. outsider . be jarring from the establishment wing. people.ging in populous how do you keep those camps together in administration? is potential for a lot of inciting. ryan will receive the backing from the federal republicans. it is all falling into his lap. the new chief of staff reince priebus has put in place. guessed? have
paul ryan does not have the closest of relationships with donald trump. proves that anything is possible. god. was like a gift from ironically people thought he was going to be in big trouble if hillary clinton one. ironically when he becomes president, that helps out paul ryan. letting bygones be bygones. very ironic twist. >> we have to leave it there. thank you. bernie sanders sat down with charlie rose to discuss the victory. he asked senator sanders why
many voted for trump and not hillary clinton. used the term, i am anti-establishment. i am against everything. the question is, i happen to think he is a very good entertainer. i hope very much that he proves me wrong. >> tune into charlie rose tonight. right here on bloomberg. looking at the biggest market movers. that includes home depot. is bloomberg. ♪
markets, i am vonnie quinn from new york. >> a look at some of the biggest is missed stories in the news right now. volkswagen with the admissions cheating scandal in the united states. they have reached a deal with to fix our buyback volkswagens with tainted diesel engines. they would fix 60,000 of the and buyback those that are too old to be fixed easily. pension funds falling out of funds.th hedge they are reducing investments because of media" -- mediocre results and high fees. more than one in four foundations from the universities to hospitals doing the same. that is the latest bloomberg business flash. >> julie hyman looking at retail numbers. >> yes.
this is the headline number or sales risingretail in october.% a revised 1% jump the prior month. of gainsght months that was the largest two-month jump since we have seen going back to 2014. really rebounding. the last time we saw a decline was in march. watching retail overall for that reason. watching specific numbers for earners. beating analyst estimates. forecast for the year. with whatd it in line they had been anticipating. that is in line with the source of disappointment potentially.
word news. >> bank of england governor mark carney is urging financial services firms not to make any rash decisions on moving operations out of the u.k. after european central bank official revealed many had been in touch on the matter. thinkers will set the process of week of thewithin government triggering brexit, happen bycheduled to the end of march of next year. questioning julian assange for a second day about a possible sex crime in sweden. tookong delayed interview place in ecuador embassy. the international criminal port may investigate allegations the whileommitted war crimes interrogating detainees in afghanistan. torture andlleges treatment of u.s. soldiers and cia officials were illegal.
it is unlikely the u.s. would .uite operate with such a probe the climate deal is quote irreversible. respectthe u.s. must the decision to join the deal. donald trump has called global and promised to cancel the landmark paris deal. predicts this will be the and biggest travel holiday for thanksgiving and nine years. almost 49 million americans will travel at least 50 miles from home over the weekend and biggel holiday for thanksgiving and .ine that is 2% more than last year. global news 24 hours a day powered by more than 2600 journalists and analysts and countries.20 this is bloomberg. chief executive and global
discussing how innovation can diversify the economy. schatzker sat down with the of technology. >> peter has been one of the most important mentors. what is unique about him if he is able to look at things from a perspective. i think having peter there will give him a unique perspective. >> what do you think his priorities will be? sure.m not exactly i think peter really believes to thinkerica a place
about the future. he talks about how they were always open to the future and we do not have that anymore. >> broadly speaking, do you aink his role ensures positive or at the very least an toommodative environment for knowledge he and maybe even silicon valley more specifically? me a lot of comfort we will not screw up the trade .tuff i think it gets me comfort is it will be good for the upcoming businesses. we will see what happens with that. what kinds of restrictions it face? think the restriction is
really the moral restrictions internally to the company. the u.s. government can work with ally countries. i think that there is a lot of governments here that they want u.s. andork with the do that job, but they will not regimes.upport there are other parts. allies, ihe u.s. think it will become imposed. >> one of the curious things is it remains private. mistaken, the ceo once said that's running a company would be difficult if it public.
i think there are a lot of people that are very scared. they have made the transition and not as bad as people think. >> will the time come when you can become public. >> as an early shareholder, i would like to see it earlier. i think that is something they out.figure >> and all of the trends in ishnology today, whether it the -- big data or autonomous else, whatthing excites you the most. >> what excites me is how the biggest companies in the world are being the most. >> what excites me is how the biggest companies in the world are being changed. when you talk about machine thoseng or other things, are all tools that we use. the fundamental truth is the data is not being used in the way it could be.
there are platforms being put in harness data. will make them work in a lot better ways. usingeally excited about technology. cofounder. the going to erik schatzker cofound. going to erik schatzker now. more insight on what he is learning. election victory last week, what else have executive been telling you about echo >> as it concerned saudi arabia, not much. threat that a donald trump administration could pull securityfunding for and military in this part of the world. of his effort to promote burden sharing.
the conversation about the ceo ceoiemens with bob dudley, in more or results less the same answer. this may curtail spending. position -- nono what donald trump position. regardless of the administration, bp remains upportive. >> to early to make the big call on trump. >> let's not forget this is all transforming the economy.
conference. see siemens and bp and cisco. that is why you see so many entrepreneurs. the money contained inside becomes available to the rest of the world. >> i was just going to ask exactly that. you talk about oil and energy companies. there seems to be technology companies there. >> it does depend on the course that saudi arabia chooses to .ake they want to generate 30 odd sourcesgdp from non-oil by 2030. entirelymy is almost dependent.
that is a huge effort. a lot of people are employed by government at salaries that are relatively generous. saudi arabia has no choice. nobody is predicting oil will go back to $100. balances of $80 curve barrel. maybe they are by 2020 and getting that down to $60 per barrel. anybody's guess. that is why it is imperative. we know that they want renewables and infrastructure. believe it or not, six flags is here. six flagshave thought would build a theme bar -- theme park in saudi arabia, but it
slump in the pound following the brexit boat. it will weigh more on earnings next year. priceking for a higher for british american tobacco. option.n-dollar buyout look at the growth in china. >> easyjet will overhaul operations. the discount airline said the exchange rate will cost 200 $25 million in the current fiscal year. ordering a more proficient organization along with savings. >> we will remain headquartered in the u.k.. we can say that with confidence. eu operatingp an
company. this means we will be able to operate our roots across europe that isfidence because what we have been working on for months and know that that is something we have do. >> rejecting a 47 billion-dollar takeover from british american tobacco according to people familiar with the matter. create theuld biggest publicly traded tobacco companies. home depot posed a quarter -- earnings that beat estimates. signaling confidence that americans will keep spending on renovation projects. the company raised the profit year.st for the same-store sales were up better next to 5.5%. jaguar working on the first electric car.
set for production 2018. based on the sport utility vehicle. increase -- an increasingly crowded field. 10 electric models by 2025. boost thes to capacity. >> china is booming and the economy markets. china is booming and the economy markets. this could add up by mid 2016 by 10 million chinese online. more than twice the population country.her here is the situation. the growth story has continued. even with china's economy
slowing, it beat analyst estimates of revenue for five straight quarters. alibaba is investing heavily in reaching customers who use smart phones and tablet. andell as cloud computing technology. alibaba was formed in 1999 by law who got together 80,000 from 80 different investors to start an online marketplace. the richest man in china and the estimated net jumped $85 billion . the 158 billion-dollar valuation placed speaks to the bullish potential. growth sagging value showed some very that ite would suffer as china's growth soared. broadly in some
investors expressed -- express reservation of management in light of the corporate structures. alibaba seeking to offset any by spendingchina more quickly overseas, including and has set a goal of striking 50% of the revenue from outside china. the more about alibaba and wick takes on the bloomberg. bloomberg.com for more stories. opec said to have started the final diplomatic push to reach a deal on crude reduction. we will look at the success next. have a looks at what is happening to nymex crude and crude. since september 20 get the biggest push since october 3. this is bloomberg. ♪
york. i am mark orton. this is bloomberg markets. dudley says the oil market is pretty pessimistic reaching a deal to cut production. 30 to see if ar deal can be hashed out. he spoke to erik schatzker today indicated global supply balance.d are in >> if you look at supply balanc. >> if you look at supply and demand the balance is generally in balance right now. demand is growing in china and europe and north america. equal.aid about you have a tremendous level of stocks around the world. cuts,k if there were substantial cuts from opec that send a signal that stocks will drain. is not that much spare capacity in the world right now. dudley says expect prices to pretty much stay the same.
>> i think there is a lot of surplus. if one orurprise me two countries cut that amount. i think they will try to reach consensus. i am sure that is the objective. we will have to wait and see. >> joining us now on what could be the final push to reach a deal. it is confirmed. a big spike in oil today following george stories. that.tulations on diplomatice final efforts being made to assure there is a deal come the end of november? >> we have two weeks to go to the meeting. is a lot of see meetings. multilateral meetings of ministers. the president of opec.
algeria has played a huge role trying to get this deal together. venezuela, role of saudi arabia and iraq. we see meetings happening right now in rio where th are having meetings. see more meetings later this week when the .ussians will be attending mark: what does the compromise like? what will be the end game do you think? i think it is something the think currently is in the markets. and also internally to the domestic audience. shoulder most of any production. they want lipservice coming from other countries that alone.ll play
so far we are not getting that. the main problem is we have only two weeks to go and there is a lot of work for opec to reach a compromise. >> sort of ignoring the non-opec countries recently. talking about algeria. our problems continuing for oil?ed to and do you see any improvement seen and as we have we let production going down. nigeria made a very good comeback with production being restored. that contributed to the big selloff in prices over the past .wo weeks nigerian production was coming back. a couple of pipelines have been attacked. libya whereies and production could be curbed could deal more physical or not.
we need a bigger cut for saudi arabia. and alive to make the impact in the market. >> is all of the work done in wasted? >> i think we can really see a deal. i think the algerian delegation is working very hard for getting a deal. potentially we can see something likeber 30 that it could -- look like production. i think it will become the new year, we would be getting flow. do we see a cut in countries like iraq or we do not see the ?ut if we do not see it, the market will tank come the new year. thanks to our reporter in london. paul ryan and other leaders just wrapping up a news conference.
talking constantly with vice president-elect and mike pence of the whole tame. he says this is the dawn of a new unified republican government in working hand in glove with trump. from the the headlines house speaker. checking on what is happening with the european close next. a slew of economic data. including inflation and the u.k.. slowdown in october. take a look at the stock. a day of little changed. ♪
♪ mark: thank you from moscow to berlin, coverage for from new york, u.k., and saudi arabia. here is what we are watching today. follow-up on donald trump's election easing off and finance markets with emerging-market assets rebounding today. an investor about whether we saw over the last week was an overreaction. slowed,u.k. if license speculation that interest rates will stay low for longer. the bank of england governor told lawmakers today that the new policy path is of -- is appropriate. the most unpopular president in