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tv   Bloomberg Markets Americas  Bloomberg  November 25, 2016 10:00am-11:01am EST

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anchor: and live from london -- vonnie: we're going to take you from washington to vienna and carry stories from the u.k. and paris. showing there biggest treasury market selloff is coming to an end. why our markets ignoring those signs? one of europe's biggest asset managers ways in. ecb councilmember says the bank has a long way to go to meet inflation targets. more of that interview ahead. a bigger online selection to keep up with amazon this holiday season. joins us this black
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friday. we are about 30 minutes into the trading day in the u.s.. nothing short about your day, abigail. : we're looking at record highs. have the dow, nasdaq, and s&p 500 all on pace for record closes. down 56%, over the last seven years. the big watch will be on the russell 2000 to see if they can put in their ninth record close. time will tell. as for one market on the move, oil is down 1%. this comes as opec is said to be negotiating supply cut deals after iraqnd russia
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apparently has signaled it will agree to a supply cut deal. we do have oil on the month up ever so slightly. chart that illustrates the volatility and the coil is we going to the bloomberg and we take a look -- we have the oil index or the oil volatility index. take -- we see volatility and oil outpaces volatility and stocks. we have some strength for gold as well. it is really a mixed picture. copper is up 20%.
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you will have to see whether those gains can hold right back into it. vonnie: in europe what we have seen is the stocks basic index has been pushed to its highest since june 2015. let me take you to gmm. you are seeing a bit of a mixed picture here. higher -- denmark higher. the euro up 5/10 of a percent. the dollar paring its weekly -- the dollar falling from eight decade high. in terms of what is happening,
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you can put a 10 year yield down three basis points. you already talked about metals so i will move on and show you the stoxx 600. it has been swinging between gains and losses today. volume lowerng than the 13 day average. we're pretty much unchanged. set for the longest streak of since july. we bit of a mixed picture inside the space. space leading the gains of 1.5%. energyalth care, underperforming with a weaker oil price and material lower as well. down 3/10 of a percent. the stock leading the health is absolutelyher
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soaring on speculation of that takeover bid from johnson and johnson. and johnson has approached about a potential takeover, the $17 billion swiss drugmaker. they hit their highest level ever. >> millions of americans are postelection retail. the retail index has risen 5% since the outcome of the u.s. election. black friday ushers in the holiday shopping season. we are counting on deeper discounts to satisfy all that pent-up demand. joining us for the new york stock exchange is the chairman and ceo of target, brian cornell. have you had any sleep since you open the doors?
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guest: not a lot. we are making sure we are getting to a great start this holiday season. >> any concerns online is cannibalizing from cyber monday? guest: we want to make it sure -- make sure it is easy for our guests to shop. it turned out to be the biggest day in our company's history. we think it is a combination of a great in-store experience. vonnie: he also offer things like free shipping to keep up with the likes of amazon. how much are your margins getting squeezed? slipped to 28.5%. >> we saw an 80 basis point
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improvement. a really strong mixed management. as we continue to grow categories like apparel, growth in our home category. that works well from a margin standpoint. have over 100 stores. over 1000.e have stores are conveniently located in neighborhoods. we think we are well positioned to meet the consumer needs. vonnie: at a time when retailers are closing brick-and-mortar branches you are opening them. what is behind that strategy? wife that the correct strategy?
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-- why is that the correct strategy? guest: they're moving to downtown chicago and even minneapolis. we are following the consumer and following our guest. we customize it for the local neighborhood needs. every store is custom tailored. perhaps our most successful opening. it is a neighborhood store. we think this is a terrific vehicle growth -- vehicle for growth. complementing our existing footprint.
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vonnie: what other investments and how much are you making in order to beat amazon? guest: we have been investing billions of dollars in technology and the supply chain. think we win as a company when we provide our guests a great in-store shopping experience. and then picking up one of our 1800 stores and the ability to quickly shift to their home. we think it is a huge competitive advantage. >> what about in-store technology to decide for customers -- we are testing new tools and capabilities.
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we will continue to test new technology. make it really easy for the guest to shop. we want to make sure it is inspiring, we offer great value. >> what categories could have a better mix? we have been hearing about struggles. there's not a lot of new in electronics. what are you appealing to? we are always looking for unique products. as we enter a holiday season, working with hasbro, our great partners at disney, we have 1800 unique proprietary items. provideto make sure we great units. we are also focused on building our own brand portfolio.
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we expect that to be a $1 billion brand next year. from ourmodation partners, the branch we are developing ourselves and creating a great online we think that is important to our future success. we think the kind of results we deliver in the third quarter, where we continue to grow our market share in apparel and home , that allows us to provide great value. in the third quarter, our margin was close to 30%. a combination of great rates.
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and making sure we are managing our goods. i feel good about the results. >> you would love to see 3% gdp growth in the u.s.. do you anticipate 3% gdp growth in the next four years under the trump administration? >> i'm optimistic about the consumer economy. the overall gdp growth is solid. i think it is going to continue to expand. we are seeing good movement in employment, low interest rate and inflation. for the u.s. consumer i think it is a great time. it is a great time to be a retailer.
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>> congratulations. wheres an organization you do with multinational. have you managed to meet any of them yet? the is the concern about world being more protectionist. >> it gives us a chance and -- certainly we want to be focused. i need to understand what is happening in europe and asia and latin america. looking for to my first meeting this next week. >> good luck to the rest of black friday. word check in on the first news from our newsroom. we going to go to --
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reporter: a prosecutor in paris is five men arrested last sunday were planning a terrorist attack. the suspects were getting their orders from an islamic state member area the five were arrested in strasburg. bombing at a gas station in iraq. 65 people were injured in that attack. islamic state militants are responsibility for the deadliest attack since july. wildfires -- some 50,000 people were evacuated. is really leaders raise the possibility that palestinians deliberately set the blaze as police have arrested 13 suspects picked -- suspects. russia france and turkey are also on the scene. the prime minister of hungry says he willngary
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not be considered a black sheep. donald trump has invited him to visit. president obama shunned him during his two terms and criticized him for e-voting democracy. and television icon florists had to send -- florence henderson has passed away. widow ofcomedy about a three dollars -- with a -- comedy about a widow with three daughters who married a widower with three sons. florence henderson was 82 years old. global news 24 hours per day powered by 2600 journalists and analysts in 120 countries. : president-elect don't tweets even on thanksgiving, we have more on his
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progress next. this is bloomberg.
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for thet is time business flash to take a look at the stories in the news right now. present elect donald trump -- president elect them of trump to keep and air company from moving out of the country. he is working to keep the plant and 1400 workers in indiana. saudi arabia has pulled out of talks on oil cutbacks.
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opec still has no internal agreement on how to implement the cuts. is open tos minister reach a deal in vienna. the pilot strike has been extended for a fourth day through tomorrow. their act -- they're asking for more pay. cancelsa says they will -- disrupting travel for an -- mated vonnie: a quick programming note. successful leaderships in business. rubenstein travels the country talking to leaders to uncover their stories. on this weeks episode he spoke to texico ceo.
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>> not long ago and activists showed up and said maybe you should spinoff your stack business. what was your response and how did you keep the activist happy? to make sure is the company is managed for the next generations, performing well. i am an internal activist. my entire net worth is this company. vonnie: you can catch the latest episode at 4 p.m. eastern and 9 p.m. london time. investorsd, white etf are buying oil. this is bloomberg.
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vonnie: this is bloomberg markets. time for our weekly etf friday segment. let's head over to abigail doolittle. abigail: gold and crew to is a november theme in direct competition with commodity etf. more is the etf analyst at bloomberg intelligence. something interesting happening is we have the commodity complex up slightly. relative to certain commodity related etf's we are seeing them getting whacked. >> they are selling gold and the vast majority are in gold. oil is different.
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it is not moving much but there are massive inflows. overall etf flows on the month are down. >> can you talk about the divergence in gold, between price and etf flows. happens, etfwhat follows the price. before trump the flows are more positive. now people are getting out there etf's. in oil it is the opposite. are buying etf's. this is a bit of an ominous indicator. oil is not doing much. might be an indication that oil
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can be getting overdone. their prior periods where you could indicate it is there. record 2 billion could indicate oil is going to go down? >> the massive move in 2015 was about 18 months. the average inflows, it dropped 50% or more. when oil started recovering, up flows, basically from march through june. the bloomberg commodity index was up 30%. versus gold and precious metals. >> we are seeing record inflows
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close for the record. is a good it indication of a change of alleged sentiment. sign etf bullish investors are willing to buy more. commodities are up. gold is coming back a little. >> thank you for joining us. back to you. >> making sense of the global bond rout. this is bloomberg.
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treasuries that picked up right where left off before the thanksgiving holiday. speculation grows that the ecp will scrap the yield. and it will rally. we are joined by the co-cio and head of fixed income at asset management, which has over 300 billion 7 -- $370 billion of asset management. let me just a very simple question, has the selloff been overdone? >> i don't think it is overdone. what we see recently is just an of a rise regarding the trump program that is going to meet to more inflation and growth.
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>> if you are saying the treasury yield has hired ago, let me draw your attention to a chart. shows a spread between treasury and german bonds. at its widest since 1989. is this about the divergence story? it is the beginning of the divergence story. we are going to be in two different cycles. the u.s. program will lead to more growth in europe. this is going to lead to different policies from the central banks, the fed and the ecb.
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are u.s. treasuries across the curve or specific points in the curve? >> it is mainly on the long term. it could continue to diverge. we could expect it to reach a 20 base point spread between the u.s. treasury and the 10 year. we expect to see the fed rising interest rates next month and continue in 2017. we are going to stay in the same environment in europe. we have a different situation between the short and the long. with at 207 -- with italy
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at 207, is there value to be had in ecb? guest: the value we expect to between the u.s. treasury, we expect to 50 and 3% by the end of next year. we have i would say local considerations. it's that explains the currency in the index. host: would you buy them? guest: considering we expect the price on the referendum, there is an attempt to buy.
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the -- willnty will be the magnitude. we prefer to stay away for the time being. i know you have a short bias on treasuries. i want to bring you back to what is happening on the 10 year and the chart showing treasuries are extremely oversold if you look at the relative strength index. a number of indicators suggesting the route has gone to our too fast. i'm wondering how much higher you expect that 10 year yield to go before we might see a turnaround? guest: we believe a fair point on the 10 year treasury would be and 2017.between 75
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we need more fiscal deficits. we don't expect to see a huge selloff regarding these levels. host: co-cio and head of income from our paris bureau. thank you so much. let's check in from the bloomberg first word news. reporter: a judge has found a suspect in the deadly south carolina church shooting competent to stand trial. dylan roof is accused of killing nine churchgoers after bible study last year. jury selection will start monday.
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the u.s. and its allies are taking aim at stopping and discouraging the incoming trump administration from abandoning the iran nuclear deal. reducee pushing iran to stockpiles of radioactive materials to well below the level agreed on. president-elect don't trump has vowed to scrap the iran deal or renegotiate it. two trains collided in north iran killing 36 people and injuring nearly 3100. helicopters and ambulances rushed to hospitals. that was intrain motion hit another at about 150 miles east. japan is one step closer to deploying an anti-ballistic missile shield. such systems would strengthen japan's defense capabilities. japan faces a growing threat from north korea. the u.s. system is designed to intercept missiles in or outside of the u.s. atmosphere. the government of colombia has
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signed a peace treaty. after colombian voters rejected the first agreement. the deal is aimed at ending a 52 year long civil war that has killed more than 200,000 people. global news 24 hours per day powered by 2600 journalists, analysts, and more than 120 countries. this is bloomberg. : we are getting some breaking news from the u.k. supreme court lawyers. they have been granting permission to submit written arguments in the court case next month. new europeans and law had been denied. thecourt will decide when prime minister needs the approval of parliament to trigger article 50. sterling is pretty much unchanged. actually we are going to have so
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much uncertainty for the next decade. >> the supreme court cases going to be one of the big things they turn on. talk about the last couple of days on how this all could be overturned. do they have waste in this matter now that they are no longer in office? headlinesting some from the conference call of per -- conference call. trump will make two announcements today. the vice president elect will meet for the ceo on monday. there are at least eight meetings planned on monday. we can expect those announcements to continue over the weekend. two announcements according to an aide. you are watching bloomberg markets.
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nejra: this is your global business report. to bek. economy looks resilient in the wake of the brexit vote. amazon books to beginning a foothold in the middle east. it is black friday and the holiday shopping friends say -- we take a look at how contemporary trends may be doling the appeal for consumers. the chairman of sweden's bank
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says there are little chance of merger talks -- the dutch government has shown no interest in buying shares with the bank shares of the bank. -- buying shares of the bank. guest: whether the government has -- have offered them better liquidity, but which also would have transformed the landscape, it turns out they were not interested. has -- on & johnson that is according to people familiar with the matter. the company has brought along two new medicines poised to be blockbusters. consumers and businesses both
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increased their spending. gdp rose 5/10 of 1%. the forecast for growth has been slashed for next year. the falling pound is expected to squeeze consumers by pushing up the cost of imports. london homes are less affordable than ever. it costs the average londoner 14 times their annual salary to buy a home. that is more than double the ratio to buy a home. meet aply has failed to manned -- meet demand. >> amazon is looking to get a foothold in the middle east market. they are in talks to buy a dubai-based retailer. the price, about $1 billion. neither company is commenting. is suggests airbus
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the triumph of twin jests. that is 4400 your than tebowing engine 747. -- are struggling the twin engines claim they are fuel-efficient. decade, of the last black friday has been america's biggest shopping day. -- compare temporary trends now contemporary trends are dylan the appeal. last year over the four-day -- 103 million people made purchases online, compared to the 102 million who visited stores. it was the first time online outnumbered in-store shoppers. u.s. overes in the the 2015 thanksgiving weekend
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.ell 10% nobody is sure how it got its name. each year when they get into the black, don't believe it. an account for 20% of retailers from annual sales. companies are profitable well before the fourth friday of november. -- nowrs coined the term increasing online shoppers are skipping the stores entirely. other countries have tradition similar to black friday. still it has been difficult to enforce black friday overseas.
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the crowds that still show up on things giving night proof they are giving customers what they want. despite that they are really -- despite that they are ruining thanksgiving. the days of long lines, customer stampedes and those that characterize the time could be waiting. of our quickmore takes online. >> still ahead, oil falls and opec scrambles to get everyone on board with production costs. can the group get a little help to get a deal done? more on the cartel's final push.
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vonnie: this is bloomberg markets. we are getting more details on donald trump's monday meeting. meeting with be ceo john allison, who is rumored to be up for treasury secretary position. also former commissioner paul -- ns, gop ceo a spokesman says trump will make two staff level announcements today so we are keeping an i on those. nejra: with less than a week to inbefore a crucial decision vienna, opec is making its final diplomatic push for an oil deal. group me cooperation from non-opec members to make a serious end in the oil surface next year? for more we are joined by half the air, chief energy corresponded at bloomberg news. arabia reporting saudi
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has pulled out of class talks with non-opec nations, including russia. is the deal dead? certainly it is in the hospital and in intensive care. arabiappened is saudi said it is not going to send any representatives to a meeting planned in vienna on monday to discuss with non-opec members. saudi arabia wants an internal agreement before any talks happens. at the moment saudi arabia is indicating that is an exit. >> is this about the fact saudi arabia's expecting it to be so difficult to come to an agreement within opec itself? there is no deal with tehran, no deal with baghdad. we have seen the opec deal.
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they will participate or not. >> how much of saudi arabia -- it would be a bit unusual to meet with non-opec and opec without giving opec nations the first word. >> you are absolutely right. i think every country is using tory negotiation to but -- position themselves. probably because -- this is very interesting. deal first. we really need to have that conversation.
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they are also indicating the isl of the next day, he trying to move from their position. what i really do know is that iran -- iran doesn't like to be put into the corner. >> it doesn't want to face the potential of new sanctions. it doesn't have as much leverage as it might have a couple of months ago? >> i do think the true issues are separated and iran wants to be in that position where it is able to return to this production. and also the sanctions come back from the united states, i don't see much advertising.
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if europe doesn't join any sanction from donald trump, i don't see any advertised either here in london, let alone paris or berlin. today,e seeing oil lower i'm just wondering this movement from saudi arabia now, does that limit the further downside? because we are -- i think him wednesday there is no deal. we will see an oversupply continuing. when refineries go, when we are beginning 10 -- beginning to emerge, that is when we see prices going down.
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prices go up. 50, $60 oil. beep a pair for $35 oil. he prepared for $35 oil. -- be prepared for $35 oil. energy has been talking about it. to increasey try production to try to maximize revenue. going throughy the second phase of our price war. it is still early. there is a crucial meeting on. >> surprise but knows a prize on the positive side, what would it take to surprise this oil market now?
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we will need a full agreement and something that the market sees not only as material but credible. the prices continue to go down. think it will be important to see what the languages. there is not even a statement that happened in april. also the body language of the minister. that is when you see the price coming down. >> thanks to the chief energy correspondent at bloomberg news. we are parsing language and statements. bonnie: -- vonnie: drugmaker act , a report from a a bid fromrt of
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johnson & johnson. let's take a look at where european stocks are trading. 35 minutes from the close. the stoxx 600 unchanged. the ftse pushing slightly higher. the dax pretty flat. is below that 30 day average, but the stoxx 600 is heading for a third weekly gain, despite being pretty much unchanged today. a weaker dollar story today. as we take a look at stirling, that is unchanged. euro, 1.0607. this is bloomberg. ♪
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vonnie: is 11:00 a.m. in new york, and midnight in hong kong. 30 minutes left in the trading day in europe. i'm nejra cehic. vonnie: this is the european close on "bloomberg markets."
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nejra: we're going to take you from new york to zürich and cover stories out of greece, the u.k., and wall street in the next hour. here's what we are watching. shares of europe's largest biotech firm jumping after johnson & johnson approach the company for potential takeover. more on this potential $17 billion high up ahead. technical indicators show the biggest selloff in years is coming to an end. vonnie: wire market ignoring the signs? we talked with fixed income investor, next. and the holiday shopping outlook. the target ceo telling us his company has the advantage over amazon because of its physical stores.


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