tv Bloomberg Markets Americas Bloomberg January 18, 2017 10:00am-11:01am EST
♪ vonnie: from washington dc to devils, switzerland. s switzerland. erik schatzker is standing by with top headlines. erik: we will begin with this. what does brags it really mean? saysh stuart gulliver investment bankers and up in paris. he praised theresa may's handling of the uk's exit. populism scares me. daliaare the words of ray as he predicted the potential end of globalization. christine lagarde says the solution is greater wealth distribution. over davos.dow
themarket has discounted positives and of the negatives of trump toss collection. -- trump's election. vonnie: looking forward to a lot of that coverage all day. in the u.s. we are about 30 minutes into the trading session. --sa: next trading action abigail: mixed trading action. the dow opened lower. the week is relatively young but the dow was on pace for its second weekly decline. a little bit of a bearish trend that as you can see both the s&p 500 and the nasdaq are trading slightly higher fluctuating between small gains and losses. we are seeing a continuation of the lack of conviction that is marked trading action for u.s. equities in recent days. when you take a look at some of the havens we have seen a haven been more recently. we have the 10 year yield trading higher marked in red telling us the safe haven bonds
are selling off a bit. yields rising helping the dollar index up. we do have the dollar against the yen rally. we have gold trading slightly lower if that stays that will break a seven-day rally for both gold and the yen. some of these havens are trading off a little bit today telling us that investors are perhaps -- one market on the move, looking at oil down pretty sharply. nearly 2%. we have that dollar strength. we did have the head of the international energy agency saying that they believe output for the u.s. could increase as oil prices predict show weighing on it is oil. also the energy sector. one of the worst for the s&p 500. wedding petroleum especially
exposed. we also have some of the rig companies. trading lower. some energy weakness for the financial markets. mark: energy weakness here as well. while the worst-performing industry groups in the stoxx 600. the worst run three days of losses since before trump was a -- was elected. tomorroweets inauguration on friday. this is a pearson six-month chart. shares have lost one third of their value today. before this morning they were above eight pounds now they they are a low six pounds. wide top the value of the education company, it cut its profit forecast. it predicted years of gloom in the u.s. market forcing it to slash dividends and put its stake in the iconic penguin random house -- an
unscheduled announcement. taking investors by surprise. 31%. chipipside, this gear making company, winning orders for six more of its list on a few machines. pushing the big chip companies like intel to upgrade to its newest machines. stock has gained some 50% over the last year. this is a lovely chart. intraday moves of sterling versus the dollar going back to 1992. yesterday sterling rose by 3%. the biggest gain since january 1993. an incredible move after theresa may's brexit speech. it down a little bit today. -- we do not know
when the supreme court will give its ruling on when -- if article 50 can be triggered with or without parliamentary approval. sterling daily decline going back to 1992. when i was still in school. vonnie: lovely is not exactly the word i would use but definitely phenomenal. that is next tuesday when we get that court decision. let's get to first word news. the british supreme court will hand down its ruling in the brexit case tuesday. the issue is whether parliament should have the final say before the u.k. formally begins the process of leaving the european union. the process is expected to begin in the next couple of months. a suicide attacker in a bomb filled vehicle has struck a military camp in northern mali killing more than 50 people. more than 100 soldiers and former fighters trying to stabilize the region were wounded. islamic extremist groups in the area are expected to claim
responsibility ultimately. they oppose a 2015 peace agreement. the u.s. supreme court is considering a first amendment challenge to a law line in the government from registering trademarks considered offensive. the justices will hear arguments in a dispute involving an asian american band called the slants which was denied a trade by because the trademark office says the name disparages asians. russian authorities have extended a resident permit for edward snowden. healy leaked thousands of secret documents from the national security agency. the russian foreign ministry said's noted's authorization has been extended for "a couple of ."ars t global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. vonnie: thank you for that. private equity firms sitting on billions of dollars of cash
these days. where will firms put that money to use this year? let's return to switzerland where erik schatzker standing by. erik: thank you. i'm here with two of the most powerful people in private equity. kim coulter, cofounder of tpg. mcglashan in, -- bill . a home want to call it run, more than a home run. now you are starting a new project. social impact investing in this fund called rise. do you see the same potential for this -- i'm going to call it a product, as you do the tpg growth? >> absolutely. that's talk about why. at the end of day we have been doing yesterday investing for long time. we've never offered the focus never the specific product to our lps. as we are here at davos, people
goals the sustainable private sector has to lean into it. it. it's good to take private sector capital so given our investment expertise, experience in growth, we want to bring that to this last to make sure that private capital is there to support sustainable goals. bill's team has been leading that with the same people that brought the success in tpg growth. erik: i guess the question is how much money can you raise? raising a not insignificant amount. $2 billion so you have marquee investors. peoples whose names are viewers and others would recognize. but he has long stood for these objectives. how much demand is there -- the people from whom you raise money , while the families and the like for this kind of a product? jim: we've had the luxury of being able to curate some of the
most interesting institutional investors in the world coming in to rise as cofounding partners of the fund. largeason for that is, a segment of the institutional investment world wants to see returned. double bottom line. the challenge in the industry has been a lack of integrity around impact. it can end up being green or nice people delivering mediocre outcomes. topability to deliver market return and underwritten impact were third parties verify the outcomes. the outcomes are driven by the business output so there: here with the success of the business. growth to a and tpg home run like a mickey mantle out of the park shot. you made some shrewd and thus far successful investments. uber is one.
airbnb as well. the horizon for growth is three to four years? hattie and monetize these investments? bill: people point to brands like uber and -- the vast majority of our portfolios growth is given by companies in may not have heard of. whateal expertise which is letters to the conviction we could deliver impact as well is in finding good companies but being their partner and delivering business building capabilities consistently. for years now we've been delivering 25% annual compounded cash flow growth. and it's done through a hands-on approach which is exactly what we have to do in the impact world as well. jim: one of the things we really focused on around the world as disruption. growth particularly in places like this we are talking about
global growth or economy growth. there are sectors of disruption that are driving outside growth. large investors in entertainment. particularly tv products. the number of tv shows being produced and the viewership of .he shows an exponentially grew when we talk my growth there are cap the global growth but underneath that there is always something for us to do within a vehicle like tpg growth. erik: you know why am interested in the answer and i will phrase it to you this way. is there reason to believe that with deregulation taking place, we believe under the trump administration will we expect, u.s.the health of the equity capital market will improve to the point where it airbnb or afor an uber to take the risk that comes with going public and reasonably you get something back in return. what do you think?
bill: we've had multiple companies go public this year very successfully. capital deliver growth markets can be in all sorts of different condition are the world pays for growth. in some cases the world overpays for growth. if you can deliver reliable growth it's a very attractive outcome particularly in a world where yields are low. at least on the growth side of the business, our businesses are small enough and growth for enough that there are lots of options. course for strategic still above to buy the business. certainly, a healthy capital market is a good thing and it would yield more reliable outcomes in general across our portfolio but has not slowed us down. jim: pretty healthy capital market last year. erik: filings with her lowest since 2010. jim: 2002 actually.
we often talk about being in the post-truth era. we may be in the post-ipo era. maybe a time when companies are willing to stay longer for a period of time. we say private for a longer period time. we are not troubled about exit. if the companies are doing well at never had a difficult time realizing value for a company. at end of the day the markets will tell us from the time is right. there are other ways to exit but if you deliver growth it will pay off. erik: you have given me an unbelievable entry point. are we in the post ipo entry point for tpg? [laughter] i will jim: give you the same answer we've been doing for nine or 10 years. it has been interesting to watch alternative asset markets -- it may make sense that we are going to take our time. erik: i'm not tried to pin you down on whether you will or won't because i can tell which way you're going, doesn't make
as much sense? is the rationale and strong in principle for general partnership like tpg or blackstone or carlyle to go public as it was when blackstone and carlyle went public? or has the game or calculus changed? jim: i would say it remains strategically important to have capital and that's probably the number one reason one might go public. what has been less clear is if you look at the history of the trading. look at the valuation. bill: even the people have done so would say they have not been happy with those trading patterns. jim: we will let steve complained about it. it we will watch and learn at the end of the day and focus on what we should which is delivering returns. erik: i want to thank you for spending time with me at the world economic forum. mcglashan., bill more coming. mark: fantastic conversation. more from davos.
vonnie: this is bloomberg markets. i'm vonnie quinn in new york. mark: i'm mark barton. brazilian stocks have rallied in the last year. a rebound in the real economy has been more elusive. for more on the current climate in brazil, let's hand things back to erik schatzker in davos. managingh jenkins,
partner at btg. it's been ages since we saw each other last. great to see you. let's talk about where this company has -- it has been a wild ride. what is btg going to be known for going forward? hugh: i think we've always been and always will be a latin american power. be aly we seem to partnership and i think part of -- reason we went through maybe it was not a near-death experience that we clearly went through an amazing external shock and i think some people are surprised that we were robust enough to get through it. the things that you take away from that, the fact that the partnership is a robust model for running a risk-taking investment bank. erik: not many of those left.
huw: we think it is the right business.un our bes we were able to do everything that we needed to do in terms of managing our balance sheet. maintaining liquidity. partners were fully invested in the outcome. i risk erik: taking latin american powerhouse with global ambitions. you have a global commodities business, though the nonperforming loans business. where else is btg going to take this appetite for risk it has in the footprint it's got and expand? huw: the first thing to say is a fantastic project in terms of developing her presence in latin america. we have a good business and she chile. it is going quickly. so i think the main thing that we hope we will see, two big
things we would like to say. building outowth of this latin american platform to be a regional leader in the markets we offer. to grow our client franchise of the other asset management business. we businesses. already leaders in brazil and the rest of the region. globally as you say we have this fantastic model of an asset life physical commodities trading business headquartered out of london. we source out of latin america and distribute to the rest of the world. erik: with the risk appetite, what can you get involved in that firms like the one you used to work for, ubs, can no longer do? at: i think that if you look -- the most obvious opportunity ,or us in latin america especially in brazil where we have a positive view of the next couple of years, is really the credit business.
image in the nonperforming loans business which is something we're interested in but also are straightforward corporate big-ticket credit business. fantastic opportunities for lending in latin america. if you look at the lending spreads in the region, the competitive environment with many global banks pulling back it's a fantastic business opportunity for us. mark: does the firm sony decisive -- erik:? does the firm sony to sell assets huw: we have pretty much completed dish completed strategic repositioning. we sold the swiss bank, distributed the commodities business to shareholders read we sold merchant banking assets. we are now pretty much back to business as usual. erik: as in petrobras africa still good to go? huw: we set up the right price that this was an asset we would fill. the right opportunity at the right price. erik: how much of that is dependent on where oil is? huw: the good news is the oil prices going up and we have a
constructive view. higher oil prices good for that business. erik:? how about commodities in general the oil shock created a great deal -- could be good if you're in the commodities trading business. not only if you're in the risk-taking side. you can caught on the wrong side of the trade. tell me about the environment of commodity trading now. what is the tone of the market in which direction is it headed in? -- a feweems as though people sent over the last week the great thing about davos is it always gets things wrong. we were worried about the implosion of china and it seems as though china is in better shape. erik: we are always about -- always worried about the implosion of china. huw: good numbers coming out of the united states. good members come to china especially for soft commodities as this. the greens in oilseeds. sugar, coffee cotton business. we think the dynamics of that are strong. acquire and latin
america is the perfect place to grow. erik: can i interpret that to say the trump era is good for commodities and perhaps good for commodities trading? huw: that's an interesting interpretation. the truth of the letter is in so far as it seems trunk and the administration is going to be progrowth in the united states that to good thing. ofwe were to see some kind real all-out trade war with china things were to move into a different paradigm that would be a bad thing. the growth is a good thing for commodities. erik: what about the way that he shaking up trade? casting a shadow over mexico. .e is not even the president at it that likely to reverberate throughout latin america? huw: mexico is the obvious place where there's a real trump offense going on. be seen prices have moved. and meetings i've been adhered
been talking with corporate leaders. from the trade activity is sort of the second derivative. to have if that was real consequence untrammeled i would impact of the region that exports a lot of commodities to china but otherwise probably reasonably distant from the trump administration change at the moment. erik: is what's happening in mexico against opportunity for btg? huw: i think anyone who can predict what that is going to mexicanwe can see corporate are looking more toward the south and investing in brazil which is a natural strength of corporate finance team. but i think it's too early to say. erik: look at what's happening to the currency. any mexicans company so nominated that is going to be suffering. potential restructuring opportunities. an investment bank.
erik: we have a good position in mexico and i think the opportunities -- huw: we're a strong believer the latin region will get more interlinked. mexico'sspeculate going to be more interested in developing more trading links given it's over dependent -- over independent from the united states. erik: slim told the americans -- hugh jenkins, good to see you. managing partner at btg arch rock -- vonnie: thank you for that from the world economic forum in dos, --tzerland area wilbur ross nominated to serve as commerce secretary being question right now before the senate commerce committee. that's the senate committee on commerce in transportation. he just said he is not
anti-trade, that he has pro trade. saint -- we cannot afford trade that is inherently bad for american workers and companies. you can watch the hearing now. mark: later today two events caring live on bloomberg television, radio and bloomberg itself. president obama will give his final news conference as resident today 2:00 -- two: p.m. eastern time. janet yellen speaks on the goals of monetary policy and how we pursue them. , 8:00 p.m.new york in london.
alisa: uggla merkel says avoiding -- angela merkel made remarks at a news conference with italian prime minister paolo gentle only. the eu needs to be real honest to tackle a number of challenges including economic growth and migration. georgia congressman tom price will face pointed questions today about president-elect on the trump has health policies. he's on capitol hill for his confirmation hearing to become the next u.s. health secretary. according to an outside analysis it would have saved taxpayers .oney but covered fewer people vice president joe biden isn't davos and taking aim at russian president vladimir putin. cyberattacks and misinformation. sacredalls nato a
obligation and that man attack on one member is an attack on all. george h.w. bush has been hospitalized in houston. a spokesman says he was treated on saturday for his shortness of breath. mr. bush is said to be responding well and hopes to return home soon. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. vonnie: thank you for that. citigroup and goldman sachs wrapping up wall street bank earnings. both companies reporting results that the estimates. julie hyman has been -- joins us now from the newsroom with more. the executives on the call have been answering questions mostly harvey schwartz was the chief financial officer and will be the copresident as gary cohen departs to join the trump administration. so he has been handling the call
with randy sean evers who comes from the chief information officer role. background thought of bringing to the cf role as well. ,ike many of its competitors strengthening and bond trading revenue. fixed income currencies and .ommodities on the equity side there was more weakness. schwartz come on the call did say that there was one of. he said he would not read anything to this would not read onthing into this quarter the other hand he expressed optimism. he said there was second half thatism among client and there is be continuing into the early part of this year. when asked on the call, where you get -- he said it's a matter
of conversation that their employees are having with clients every day around the globe and that they are seeing more positivity from their clients. also he was asked about regulation, any changes that .ould bring he says we could see to lay of some m&a i have in terms of he says this is a natural point in the cycle to take a step back and take a look at all the the regulations that -- since the financial crisis. vonnie: for more on the banks i want to bring in allison williams. to julie's point, how do you make a forecast when you done with the regulations are going to be and you don't exactly know how an incoming administration is going to be treating this sector of the economy? >> i think that is why they're being conservative in some of .heir commentary
but i think one of the most positive things we heard was regarding what they had to say about clients and their sentiment. equities, banking, they had his clients for very long time. just the fact of the ilog may be one of the bullish things we heard from all of the companies this quarter heading into 2017. intentionallyg it -- and it short and very catalyst. there are questions around could this uncertainty stock deals from getting the. in general we have heard from the ranks. healthy pipeline in terms of trading in this quarter. goldman management saying it is too early to tell. the question will be asked and answered that way for a
longer-term outlook they talked .bout the low global growth that's for the concern for several years across all of his management dancing a change on that. although a good quarter for goldman but if you look at all for morgan stanley in particular a return and equities is disappointed because there's too much capital. >> capital is part of it and i think that is why the best vector stepping up their capital return. at what happened with the companies and the stocks in the first half of the year we had earnings estimates .eclining 22% to 24% coming into the third quarter into those earnings and into the fourth quarter we actually see estimates stabilize over goldman sachs seeing stabilization, seeing uptick, after a year of steep declines. that revenue uptick is the key focus for investors into 2017 and the key hope for help on the
return on equity. we party had these cost cuts. highlighting on the call, we have revenue down, but compensation ratio was rough. still in the chosen revenue environment, the question is with all these cuts and the potential operating leverage if --get help from net english net interest margin can we get profitability? the: the credit suisse upses and at deutsche bank square get to report? alison: obviously it's more positive than negative i think it's important to know the areas of strength were in the quarter. what we've seen has really been outperformance in terms of strength in the treasury's business and strengthen u.s. equities, which the u.s. competitors have a stronghold
in. we every structuring at the european banks. some of the results of life. i will continue it's been a question but so far it has been about regional --saw a lot of the strength europeans we hope to your front in the next few weeks. mark: we are hearing deutsche bank might be paying a bonus for 2016 to its top management. this seems to be less of a litigation memoir by its performance. alison: deutsche bank, we have a new ceo coming them. he said 2016 was going to be a .hallenging year on the third quarter call there was already foreshadowing about bonuses and compensation and we've seen it in a cruel so far year to date for deutsche bank.
. vonnie: is there a danger of losing top staff? think the danger is there. i think this is probably while broadcast and what management is going to seek to do is retain employees who been in there for the long haul. vonnie: thank you for that. coming up tomorrow at 6:00 a.m. eastern, lloyd lang five will be our guest from the world economic forum in de davos. mark: we will take you back to the west where john nichols weight will sit down with jpmorgan chairman and chief executive jamie dimon. we'll have an interview with -- it's up with fell
vonnie: you're watching bloomberg. i'm vonnie quinn. mark: i mark barton. vonnie: hsbc ceo stuart gulliver move tradingave to operations out of london. pearson is cutting is forecast. the world's largest education company blames plunging textbook sales. mark: the dollar policy could be coming to an end as president-elect don trumps as the currency is too strong.
vonnie: hsbc ceo stuart mayiver's praised theresa for her handling of brexit so far. he saturated operations that generate about 20% of revenue for the lenders investment bank in london may move to paris. >> the best of both worlds. economic opportunity that exists in asia-pacific and the benefit of london as a global financial center. , actuallyve of exit london will return -- london will remain a global financial center. i believe the revenue impact of exit on financial services will be made good into a three years term. >> the investment grade on market moving, adequate market -- those activities covered by
european legislation will need to move. that's about 20% of the revenue. mark: the world's largest education company is cutting its forecast because of plunging textbook sales. pearson also says it is lowering dividends. it will sell its stake in penguin random publisher house. target has cut its forecast for the fourth quarter and for the entire year. the discount retailer says holiday sales fell 1.3% of what it calls disappointing customer traffic. a bigger drop for target stores was partially upset by it 30% increase in digital sale. tronics and entertainment with a slow sellers down in the single high digits. banks the big wall street posted earnings that beat estimates. goldman sachs says profit more
than tripled. opposed from speculation that economic growth will pick up. beating theuse -- banks own forecast. 9% -- operating expenses felt by 9%. vonnie: the almighty u.s. dollar is mightier than ever. other countries are driving their currencies down making their goods more competitive on the world market. the u.s. stands out as the one nation that has traditionally preferred its currency strong. in an interview with the wall ,treet journal, president-elect trump -- the high dollar hurts some multinational companies such as apple, mattel, cap, they blame dollar strength the crimping profits.
the rest of the world, slumping for means good thing companies and a weaker yen hurts u.s. automakers by helping japanese competitors like toyota which make more money on each car sold in dollars. for emerging-market economies. the u.s. economy became the world's largest in the 1870's you the british pound remained the dominant currency. that changed starting with the creation of the federal reserve in 1913. the redwoods agreement made the dollar's preeminent official as u.s. money became the standard to fix exchange rates. in 1985 the plaza accord pushed down the dollar value to slow japanese exports but that did not last. the rising greenback has made its effort to raise interest saying the $13 -- a strong
dollar sounds better than it is in reality. the u.s. currency policy may be ready for a rethink under the new administration. you can read more about the dollar and our quick takes. at the bloomberg.com for more stories. mark: sergio r mahdi says he expects growth to be in line with what the bank has seen over the last couple of years. inspoke to francine laqua switzerland this morning and added the u.s. represents a promising market for ubs. as for the political atmosphere, he says the way of of populism we're seeing in parts of the world are not that uprising. >> it's nothing new. feelate of populism we more and more because probably people sea the latest developments in the u.s. as a take step toward the. been used tohave
populism for a while now. i'm not very surprised. lead need to listen to concerns but also need to be pragmatic and realizing that not going to be addressed by coming with slogans and short-term solutions so we need to address the fundamental issues. i need to retrain people to stay competitive as an employee, a workforce. number two, low rates. low rates environment is putting a lot of pressure on the savings of people who it been counting on the savings to sustain the positive life. and they see more wealthy people getting wealthier because they are invested in financial markets. we all know that financial markets is not the only way to measure the true net wealth. we need to address those issues
would not to panic and not the populist and as companies companies and a political step on. francine: how did you view teresa they -- theresa may's speech? sergio: considering what happened in the last couple of weeks in terms of staying -- dynamics around pressure around her and the governments to come out with clear statements i was not surprised at all. i think i consider the situation clear. the position as a starting position in negotiations. and the clock is now going to start to count down for the 24 months. we will see how it develops. for thoseearly issues. you sergio: said you could move up francine: to francine: 1500
people but that you wanted to be certain about how the negotiations are going. how long do expect negotiations to go and you have a clear view of where they are headed? it sergio: is unlikely to be clear into the next six to nine months. we have a couple of options. existing businesses in continental europe. we will decide how to best leverage those abilities depending on how things play out . very good outcome of yesterday's speech by theresa may, she is the preferred hazmat -- a pragmatic phaseout. i think that is the most important issue: a lot of what they decide. more instability potentially
globally. from fo'sio ermotti in switzerland. -- from davos in switzerland. , the companyrson cuts its profit forecast and critics years of gloom. vonnie: happening right now in washington wilbur ross nominated to serve as commerce secretary or it questioned before the senate commerce committee. the north american free trade agreement is the first thing than a trump administration will deal with in terms of trade. he's also being questioned on climate change as the commerce department has jurisdiction over -- youional oceanic and can watch this hearing right now on the bloomberg at live ago. ♪
markets. i'm vonnie quinn in new york. mark: from london, i'm mark barton. it shares of pearson plunging the most on record. the world biggest education company warning future dividends lower dividends and announced plans to sell its stake in penguin random house. joining us with more is rebecca covers telecom media. how you account for 31% decline in the share price? 1.8 billion pounds of value wiped away in a single day? rebecca: the market investors analysts knew there were problems in the textbook market in the higher education market. in the fall pearson executives were saying things i've not looking too bad. we think college enrollments could be flat and boy were they wrong. textbook sales slid 30%.
hot air education and enrollment down. thalmann,fallon, john been in the job january 2013 barely four years, can you come back from this is a chief executive? rebecca: attic there's huge questions around credibility. this is what we're hearing from analysts and shareholders starting to hear messages that there wondering about credibility here. the fifth time since he took over the ceo job that he's had to change his outlook for profits at pearson. so people are wondering why should we believe him now. vonnie: what will they expect to get the penguin random house sales? rebecca: they have not put figures on it but we have seen 47% estimates that this state that pearson owns could be worth about 1.2 billion pounds. there is a question of whether bertelsmann will want to take the 100% stake in who might be
interested if anyone. vonnie: enrollments might be down but it's not the full story . the rental market is becoming a bigger market. is there something pearson could do to make itself more modern student friendly? rebecca: i think that's a good point. so far, dabbled in rentals. that's kind of their main business, textbook sales. today they knowledged they may have to get into rentals into a big way. they're going to do that upon the digital side, specifically of the digital side because they're competing against companies like amazon which are setting up shop down the street from college bookstores and offering rentals with great deals. mark: this is a company that announced a big reorganization last year. is it going to have to change direction? what's its plan to get through this? what it mitts will be a challenging period. rebecca: they did a whole bunch of layoffs and that was supposed
to be to refocus the cu company. they're talking about shifting into digital. u.s. higher education business is half print, have digital. ceo said today we want to be 75% digital by 2020 so they are trying to sign up universities, colleges with it deals where they get a lot of students at once onto digital courseware. mark: great to see you. enti.ca p get hismon, we will take on brexit and the banking industry under trump. ♪
bank stocks rebounding a little today after president-elect trump rattled the market by calling the dollar to strong trade yesterday banks had their worst day is june. let's head to the economic forum in davos. thank you vonnie, jamie dimon thank you for joining bloomberg. let's start with brexit. before the vote you went to britain and you talked about moving 4000 jobs. since then you have taken a wait-and-see attitude to what happens. jamie: this week -- >> theresa may has said it will not be in a single market, the customs union. are you close to making a desi