tv Bloomberg Markets European Close Bloomberg January 31, 2017 11:00am-12:01pm EST
trading day in europe. i'm mark barton. and in new york, i'm vonnie quinn is the european close on bloomberg. mark: we are going to take you from new york to london to stockholm in the next hour. stories out of washington and japan as well. here are the top stories we're parliamentoday -- begins debating on the brexit ifl with david davis asking nations trust the people. prime minister may is eyeing march 9 as the day to trigger article 50. vonnie: in the united states, another political storm brewing as president donald trump meets with the ceos of lawmaker -- of talk onrs as lawmakers capitol hill. and the first 10 days in office -- blackstone's global head of private equity joins us. mark: have a look at where
european equities are trading 30 minutes into the session. stocks are falling in europe, the biggest three-day drop since november 4. donald trump's firing of the acting attorney general adding about uncertainty decisions in the new administration. that's the biggest drop since november 2. and currencies are rising against the dollar. look at the greek 10 year yield -- still no agreement between the latest bailout review itseen greece and creditors. lots of corporate news to tell you about -- shell accelerating its drive to shed assets, agreeing to sell its fields in the north sea and thailand. the disposals include the sale of half the companies north sea assets for about 3.8 ilion dollars.
-- $3.8 billion. bgt's filing up after the $54 billion takeover. a swedish fashion retailer, h&m, providing relief for the european clothing industry, reporting profits that topped estimates and setting a new annual growth target after missing estimates of five of the previous six quarters. seasonable weather patterns and the strength of the dollar providing challenges for the industry. shares up by 5.6%. a big data point in the eurozone today -- look at this -- getting close to 2%. the ecb target is just below 2%, so look at the blue line, .9%. mario draghi continuing to pull -- put out the call level, so that picks up the ecb.
the bond buying program, some germans might have a word to say about that. 90 minutes into the trading day in the u.s., let's get to the markets desk. all three major averages continue to pull back. decline on the s&p 500 is looking like 1.20 5%. it is the first four-day decline we have had since before the u.s. election as we see trepidation rise and concerns rise over the effects of some of the new administration's policies. we are also not seeing that much hedging. this looks at the put call ratio versus the s&p 500. the white line is the s&p 500 put to blue line is the call ratio, which we see falling. not that many people buying puts relative to calls, so not a lot
of people buying downside protection. for individual stocks, we are looking at cyber security as we await potential action from the white house on increased cyber security. president trump is going to issue a directive that will hold federal agency heads responsible for managing cyber risks and will be working with the private sector. up with somea bump of these stocks. we are also watching the drugmakers in the wake of his meeting with drug ceos. both pfizer and eli lilly reported earnings that partially missed estimates. the shares were initially lower and then moved higher as the meeting was going on. did issue some rhetoric on decreasing drug pricing. a quick check on commodities and once again-- is down
as we get some rhetoric from the trump administration on the euro in particular and that it is undervalued. u.s. dollar index falling and we see some commodities bounceback. mark: the u.k. has some comments onbeginning the debate article 50 which would give prime minister theresa may the authority to trigger the brexit process. guest: this bill was designed to avoid as many to amendments as possible and make the process quicker for theresa may's government. firstoined by the former minister of scotland, also a
u.k. lawmaker and one of the lawmakers that plans to vote against this bill. we understand it is unlikely parliament is going to block this bill, however the s&p has put forward 50 amendments. what are your priorities? to say weority is think a mistake has been made in terms of the u.k. moving out. but if that is not possible, then at least stay in the single marketplace because of the economic fallout. and if not because of that, let scotland stay with a single marketplace, even if we keep the united kingdom. that would be the right thing to do. if the premise or is not prepared to do any of these things or accept any of these, my sister or listen to the scottish people, another referendum on scotland independence becomes very likely indeed. voting against this bill, but do you think it will pass despite your amendment and the votes people such as
yourself and ken clark? guest: at this stage, the government has a majority. concede thed to white paper but the labour party is split into as the main opposition party in terms of what they are doing. that has made things a lot easier for the conservative government. some of those 50 amendments, we have put down more than that from others across the common, so it could be the opposition could find the amendment which tests the governments metal. but i don't think the underlying majority, hard brexit, come out of europe, come out of the single market and when all is said and done, i don't think there's a good majority for the government. we intend to fight it tooth and nail. likelydo you think it is
theresa may will meet this triggering of article 50 by the deadline she set by the end of march and she is now saying the possibility could happen by march 9. is that realistic? guest: that sounds a little optimistic. she has to get through the commons and the house of lords and there's a lot of concern in the second chamber. then it comes back to the common. pride comes before the fall. .he did nothing for six months she twiddled her thumbs for six months doing nothing at all and now she has herself in this headlong rush toward the cliff -- toto use your her own use her own phraseology. a very weak negotiating hand with europe with poor positions from which to negotiate. cana: do you think britain make up for that with its
special relationship with the u.s.? guest: the difficulty is if you are trying to form a relationship with donald trump, you should never do it from a point of weakness. from abandoning the high ground of the single market, the u.k. is desperate to do a trade deal with anyone under any terms as quickly as they possibly can and that's the wrong circumstances with thiso engage relationship with donald trump. you should never negotiate with donald from a position of weakness. and they've gone far too fast into the relationship. i'm only surprised it has begun to unravel as quickly as we see the president's announcement on banning refugees, it has caused great embarrassment here and made the prime minister look extremely weak and extremely foolish. nejra: we have heard parliament
will hold a debate on donald trump's state visit to the u.k. way you lean on that? guest: i'm against it. the greatest presidents in american history had to wait two or three years. governments much wiser than this one say we have to see how this relationship is working out and after that time of achievement and negotiation, the final accolade will be awarded to the president. into thisong rush embrace is a sign of theresa may's inexperience and her embarrassmenthe she is suffering is well-deserved. the damage to the reputation of this country as a whole most certainly is not. words from the former first minister of scotland and u.k. lawmaker who will be presenting the scottish national party's position when
we have the vote in the house of commons here in london tomorrow. that debate is going to go on until about midnight u.k. time here in london. lots of amendments, about 130 to be debated on this brexit bill. mark: thank you for joining us. he won't be supporting donald trump's state visit to the u.k. later this year. vonnie: the scottish national party there taking that position. coming up, the head of private equity at blackstone is our guest. he will discuss all things president trump. this is bloomberg. ♪
mark: live from london, i'm mark barton. just about 15 minutes away from the european close vonnie:. and from bloomberg world headquarters in new york, i'm vonnie quinn. under a cloud is with everything from trade immigration policy. sat down with erik schatzker for an exclusive interview. let's begin with current events, shall we? corporate america is in something of an uproar over president trump's immigration order. blackstone, and more broadly, private equity, collectively employs millions of people, not only in america but millions of people has been silenced on the issue so far. joseph: it has just happened, of course, but our primary concern is for the well-being and
stability of the families of our employees and those of our portfolio companies. to seevigilant on this how it will affect not only blackstone but our portfolio companies. i don't think it will have a meaningful impact on the blackstone employees and their families and portfolio companies. each of the ceos we have asked to review, that has not come back to me. in general, immigration is important, our ability to hire the best possible talent is a core value. it is something we look at and are concerned about. a matter of principle, not to put words in your mouth, you share some of the same viewpoints we have heard from lloyd lang fine or the ceo of microsoft? joseph: the public policy objective of national security is ensuring terrorism
eliminated in the united states is important and it is a difficult line to walk for this administration. ispersonal opinion is there maybe a different policy objective that could be pursued. but that's my personal opinion. erik: let's talk about the range of policy outcomes that we are beginning to see take shape under the trump administration, specifically how they apply to blackstone's business and your portfolio companies. what are you hearing from your ceos, whether it be about immigration, about trade, about what we might see on tax policy? joseph: there are a lot of things swirling around. the house tax plan, which i think has been pre-well articulated, has many variables, all of which would affect our portfolio companies in one way or another. i would say there is no panic among our portfolio ceos.
we tend to have businesses that do not engage significantly in selling goods manufactured abroad. we have export led businesses like gates for which all of these initiatives will be helpful. panic.s no i don't think it will change the way our companies transact businesses. some of them can be quite positive, lowering the corporate tax rate and leveling the playing field in terms of the corporate tax regime i think long-term will be positive for our businesses. erik: what about the other contours of tax reform? limiting the deductibility of interest, for example. we've got the potential for a border adjustability tax for exporters is a good thing, for importers, perhaps not so much. we have the immediate expensing
capex. what from the blackstone point of view becomes better as a result and what becomes worse? what kinds of deals become more viable and which ones become unviable? joseph: that's a great question and we've done a lot of thinking. it's beginning to creep into our investment decision-making. businesses that stand to benefit are those that are export led and capital intensive. where the capital intensity is in products that can generate a high incremental return on the values invested because of what thenvested and if government is trying to engineer a reward system for those investing in these -- in this country -- in this country, we buy because they are under invested. it will be a benefit to those companies and a benefit to export led companies.
the energy complex will be a beneficiary with rolled back regulations. that's a capital intensive industry. that.is positive for energy represents about a quarter of what we do across the board in our corporate private equity investment business, so for the types of things we invest in, it is a positive. things that would be under more threat or where there is uncertainty would be retailers that sell goods imported from abroad or professional or business service firms that outsource employment to other countries. there's going to be a bit more uncertainty and volatility around the prospect of those companies. you say it's beginning to creep into your investment decisions, how? joseph: we have to take on board the seriousness of the ryan-led house plan.
we think it will be complicated to get it through in total, but to ignore it would be a breach of our duty to our investors. as we look at things with a heavy component of cost of goods sold offshore, we have to factor in some margin for error. erik: have you already confronted the possibility of -- you have already said no? and more howknow do we price this for margin of error if there is some sort of tax on imports where they are sourcing goods and services offshore. it must factor into our decision-making. erik: on a transaction you have already done? joseph: it is happening in real time. erik: what about capital structure? don't you have to think totally differently about capital structure? joseph: we have looked at it for
our portfolio of companies and call it net neutral to slightly positive. the reduction in the corporate tax rate offsets in large part the complete elimination of interest. it's not the same for every company. if you have a highly levered company and you're not benefiting from the change in depreciation policy, particularly if you have off short labor or manufacturing abroad, you will have a bigger problem than an export led company that is not that highly levered where the benefit of the offsets the lack of interest deductibility. most companies fit that bill. might jump to the conclusion and say private equity, a heavily leveraged business -- this business model goes away. joseph: the business model definitely does not go away. on the margin, it does raise the
cost of capital of a levered buyer, of a private equity buyer. erik: by an average of what? joseph: less than 100 basis points. raise the cost of capital a bit, however, i don't think that's going to change the way the industry operates. competing withy the strategic buyers cost of capital and, by the way, the cost of capital has been extremely low given the high pe multiples. i don't think it is transformational change in our competitiveness. erik: and it applies equally to all financial buyers? i was looking at a list of private equity transactions and the average multiple was 10 times ebn done -- 10
itda. that's not something your industry is used to doing. is hard to find obvious value. energy in the first half of last year, you could find some obvious value if you believed longer dated energy prices would revert. it was a bet on oil prices and we were fortunate to transact in that moment with about $3 billion capital deployed. general, we live in a very low cost of capital world. multiple,0 forward pe the number of months we have spent in that territory and the last couple of decades is not very long. our major commitment to our investors is to preserve capital. we believe we have to build a portfolio that defends against
the rise in global capital, so that makes is quite selective. still able to find things. we only make 15 investments a year and we are finding ways to transact. last year, we invested $6 billion in our corporate private equity fund. erik: if things the way they appear right now over the course of 17, can you commit to that much capital again? joseph: about half the capital is committed to the energy sector. perhaps it will be a bit less but there are other sectors facing significant uncertainty. healthcare services, we just investment, so there are idiosyncratic opportunities out there. will we invest 6 million dollars again? i think we have a good chance of doing that. is interest there
in infrastructure at blackstone. blackstone doesn't do anything unless it can be relevant. how big do you need to be in infrastructure to be relevant? infrastructure is at an inflection moment in the united states where both parties agree on that one thing, which is we need more fixed investment in and for structure u.s. increasingly, they will need to rely on private capital because at the state and local levels it is quite high. , think for the first time really large-scale government industries engage with private capital to do major infrastructure projects. relevantative -- to be in that and of the market, you need to be deploying billions of dollars at a time, not hundreds of millions. you are talking about a vehicle and is between $20 billion $40 billion -- erik: the largest vehicle ever raised? joseph: that would be the
ambition if this comes to fruition, and we think it will with the private sector coming together with the public sector for this. which we all know, if you live in a place like new york city. erik: have you started the fundraising? joseph: no. erik: he is the global head of private equity at blackstone. vonnie: fascinating interview. our thanks to erik schatzker. mark: let's check out where the european equity markets are approach the close. the stoxx 600 down by .4%. the closes next. this is bloomberg. ♪
utilities, retail and financial services. otherwise, every single one of them is declining. they are posting on the firing of the u.s. acting attorney general yesterday. they are concerned about the unpredictable and he of the new administration. the index arose in january, third gain. in november the second, this is the worst three days since november the fourth. deutsche bank today fined 163 million pounds by u.k. regulators. for serious compliance failures related to allegations that it helped wealthy russians move billions of dollars out of the country. the german lender settled a similar probe in new york for $425 million. a criminal investigation by the u.s. justice department is ongoing. a few weeks ago, deutsche bank agreed that $7.2 billion resolving of the investigation is due to the sale of toxic mortgage debts. it has been pressing to wrap up regulatory abuse
investigations into whether it manipulated foreign currency trades at metal prices. 76% sincee rebounded a record low in september. today, we had a lot of data today. gdp up from .2% in the third quarter. biggest -- the figure suggests france is contribute to the economic recovery in the eurozone after germany and spain in recent years. the economy grew 1.1% for the entirety of 2016. 3.2% for spain, 1.9% in germany. that held back last year, by terrorism and unusual weather. let's finish off with this. this is a wonderful chart. demand tom investors
hold french bonds over german bonds to spread between the two in the blue line. highest levels since 2014. country stocks have fallen to at least a 30 year relative low against their german counterparts. that is the white line. we had a turbulent week last , thefor francois fillon republican presidential candidate. the latest poll showed marine le pen is getting traction and markets are starting to take notice. as we will. a wonderful divergence, highlighting political risk in france. vonnie: it is a red letter day. look at that dollar index. it is below 100 once again. we are looking at a sixth straight week now. the dollar having grown up for many weeks post election of president donald trump.
8/10 of a percent moved there, when it comes to the dollar in net. the bloomberg dollar index is broader but also lower. it is possible that it is higher but we are still not crazy levels. the 10 year treasury yield is interesting. it is down another two basis points, into treasuries. let's flip the boards. let's take a look at g-20. look at all those stocks in the season. indices. all of these due to macro concerns and comments from the likes of the ft talking about germany trying to manipulate the euro as a currency and that is why the euro is weaker. today the euro is fighting back, stronger versus the u.s. dollar, going in at 108. we did hear from the bank of japan. they have a look at yields across the board. look at russia, yields are
higher, more selling in russia. let's get to the first word news . courtney donohoe is in our newsroom. >> democrats on the senate finance committee are boycotting confirmation votes for prez read -- for treasury nominee steve mnuchin and health and human services nominee tom price. community chairman are in hatch didn't mince words. stop acting like idiots. stop holding news conferences and come here and express yourself here. and then vote. >> he maintained he still thinks both candidates will be approved. president trump announces his first nomination for the supreme court tonight and according to people familiar with the process the president will select one of two federal appeals court judges, either thomas hardiman of pittsburgh. both are considered conservatives likely to be opposed by senate democrats. is 8:00 p.m. eastern on
bloomberg television. brexit minister david davis is asking lawmakers to trust the people. avis called on the house of commons to get permission to start the process of leaving the european union. he warned that there was no turning back on brexit >>. there must be no attempt to remain inside the european union. no attempts to rejoin through the back door and no second referendum. the country voted to leave the european union and it is the duty of the government to make sure we do just that. >> the house of commons is discussing the 137 work bill that would let theresa may trigger article 50. germany has in fallen to its lowest level since reunification. jobless rates dropping to 5.9% as the german economy expanded by half a percent in the third quarter. the central bank see signals that job creation should continue. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more
than 120 countries. i am courtney donohoe. this is bloomberg. suggests it history doesn't pay to expect the worst every time the political shock hits the market. our next guest says don't expect the market bloodbath. way put donald trump into the white house. joining me now is michael leavy, chief strategist. michael makes recommendations that they've got $100 billion in investments. why shouldn't we expect a , that is some of the announcements -- the outcomes in europe this year of a more populist nature. >> the markets job is to worry about the worst outcome. it but we ignoring are also recognizing the fact that not always is the worst
outcome sort of happening in the market. both brexit and also donald trump, for that matter, have proven that they were not supposed to happen. the world is still spinning. vonnie: so is the political risk to high right now? >> we think that at least we assume the markets perhaps have been pricing in slightly too high political risk premium on europe at the moment. it is easy to paint the worst scenario that what if the right candidate wins? mark: this leads to my next question. you say we might get a smaller market outcome if marine le pen wins the french presidency than if we get an establishment viktor. how does that work? since brexit and
trump happened, there should be, in the markets, some kind of understanding or price for the wrong candidate to win. surprise at come a this moment. but if the right candidate , perhaps there is room for some positive surprise. mark: can the european central bank shield europe from these political risks? there is a debate going on right now because of rising inflation that the ecb might have to step back on its emergent program this year. are we seeing the return -- not to the level we saw during the sovereign debt crisis -- but yields as it spreads to germany, italy and france, they are the highest levels in 2000 or team. what does that tell us? tells us the markets are
pricing in some political risk and there probably will be some term going forward. but if they are elevated today, what if the right candidate should win? we perhaps might see some compression in those elevated spreads. mark: you're overweight europe and fundamentals show the risk how do we expose ourselves to the european equity market right now? >> we are advising our clients to go through indices like the and sci europe. europe is actually doing ok. europe will never be a fast grower or have emerging-market growth isth but slightly higher than potential. we see a possible earnings
turnaround. before the q4, we will confirm that. and margins relative to the usa are a bit depressed. it is definitely there in europe. mark: we've got to leave it there but thanks for joining us. chief investment strategist. bloomberg will have special coverage of the monetary policy meeting of the year starting at 2:00 p.m. in new york, coming right up. mark bertolini is next. , humana, remains in jeopardy. this is bloomberg. ♪
mark: have a look at what is happening at the equity markets. we are at the end of today's session. we are down for a third consecutive day. stoxx 600 down by two thirds of 1%. a three-day drop, the third day drop since beginning of november. let's look at some of the biggest business stories and news. in a row,cond day deutsche bank has settled claims that it helped wealthy russians launder money. the bank will pay to british regulators to resolve the investigation. yesterday deutsche said it would pay $425 million to regulators in new york. the biggest bank in italy is expecting a loss for 2016. the creditors are setting aside money for bad loans. relating also charges to its turnaround plan to sell shares to cut costs and
clean up its balance sheet. broadband shares is cutting down its debt load by selling oil and gas fields. most of that goes for assets in the north sea. billion, shell became swollen with debt. that is the latest bloomberg business flash. coming up, mark bertolini is our guest. insurers reporting earnings beating estimates. how would it navigate the landscape with republicans repealing the a formal care act? this is bloomberg. ♪
today, they beat analyst estimates a week after the deal to buy humana was blocked by a federal judge. fourth-quarter operating revenue, $15.7 million, eps operating at 1.6 3 billion. david gura is standing by with the chief executive. margaret illini joins me now. bertolini joins me now. the president is saying we have to get costs down. how much power does the president have to bring down health care costs in this country? >> if we look all the way back to 1983 when we into blends it -- when we can cemented drg, we years.sting 21 or 30 we reimbursed hospitals for inpatient stays. we have to think that writ large across the whole health-care landscape and come up with value-based reimbursement for
paying for outcomes versus paying for service. >> do you welcome this direct engagement we have been seeing from the president? having executives come to the white house sector by sector? >> i think having a constructive dialogue on how to make it that are in reduced costs and make things more affordable for all americans is a great idea. >> we look at your latest earnings with the backdrop of new politics and washington, d.c. less opaque than they were a couple of months ago? >> i think we are still in the middle of figuring it out. i think that is an opportunity. it makes it tougher to look forward to the business. but again, our individual business related to the aca is less than 4% of our overall revenue so it gives us an opportunity to find a better way to move forward and we are optimistic we can make it better for all americans and we come up with the next generation of this plan. percentage, all
$415 million weight in the last earning. amidst the uncertainty you just described. >> we are dealing with folks in washington that are looking at this. they are easy to repeal but the replace has to be thoughtfully considered. figure out the policy, the legislation and then regulation 2019're looking at one/one is the best time. we have a lot of opportunity to get it right and consider methods of moving forward and we need to be part of that. we are having conversations with the administration and with congress on how to do that. >> when we last spoke you said the president would have nine months to right the ship when it comes to the longevity of the a formal care act. is the president headed in the right direction? >> too early to tell. we don't have a direction yet other than the fact that we need to do something and that is
refreshing but we do need to get something in place sooner rather than later. >> you pulled out of some individual markets. do you foresee doing more of that? what could get you back in? >> we are not going to be getting into any individual markets that we left in 2018. we have to file rates by april 1 and there isn't enough information. and only bad news, we had $100 million more in losses on exchanges and 450 million in losses than we anticipated so we don't see any opportunity to reenter the markets we lost. >> is there political pressure to get back in? >> i don't think there is any pressure right now about getting back in. i think we will have to wrestle with that issue as we go through the year. again, we will be looking for reasons why. but if we don't make the filings by april 1, we are not in anything other than what we were already in. >> we await the confirmation vote on tom price.
he is somebody who has advanced the proposal to rework the a formal care act. to what degree is that a blueprint for you? when you think about where this law might be going forward? >> i think the issue is not in the policy stuff. it is really in the legislation and regulation of how it works. we have been steadfast since the affordable care act started that the risk adjustment mechanisms needed to be different than what we started with in 2014. we still have that obligation to make that right. that is where we should focus. how do we get more people covered? that requires offering products that matter to them. how do we create a financing system that pays for it without increasing everybody's taxes? >> proponents will say it has been a success, you've got millions of people who signed up who didn't have it before. to what degree does that outweigh all of the problems of the long right now?
>> right now we have millions of people who are not covered yet. we have a set of financial dynamics that, over the next year and into 18 are going to prove that this is not sustainable in the long run for the individuals covered or for the taxpayers of the united states. >> let me ask you about the humana deal. let's take a general look. you are taking stock, deciding what to do next. what is the calculus when you decide whether or not to appeal the judge's decision? >> number one, we can't keep going on for a long time. we have been doing this together for 19 months and for both organizations we need to come to a conclusion relatively soon. we are looking at opportunities to do that. -- to an't come to an conclusion, we will consider terminating the deal. we have until february 18 to figure that out. >> these relationship you have with your counterparts -- i will mance -- i wonder
if you have spoken to him. >> we had lunch last week. bruce and i have been maintaining contact throughout the whole process. our teams have been working together throughout the process. we have learned a lot about each other and what we can do together. we are excited about the opportunities to make that happen. more affordable products for seniors. bruce and i had lunch last friday and talked about how long we could keep going and what could we do and we are running all those traps as we speak. >> deals come together and deals fall apart. ?hat is the plan here how does that change your strategy not to appeal? >> our strategy has been the same all along. the humana acquisition was something that accelerated our ability to get there are and provide better products and services to our customers. if that doesn't happen, we will look at how we redeploy our capital towards that same
strategy for the kinds of programs that we were going to get with the humana combination. >> how do you get that medical benefit ratio down? you can be happy with how high that has gotten? >> the benefit ratio is highest in the individual market and by withdrawing from markets, looking into 17, we knew we were going to have problems. we will have an impact on the medical benefit ratio. the other parts of the program are functioning well. what you see, year-over-year, is texas tech that inform the actual number. when we look at medical costs, d forought a 6-7% tren 2016. >> as an executive, we have seen executives weigh in on this executive order on immigration. how do you decide when to speak out on an issue like that? we have employees all around
the world. that, enough, plays for health care around the world. we have employees in the middle east and offices in the middle east. we run programs from middle eastern countries. firstly, we have to look out for our own employees. but i am also the grandson of an immigrant and were it not for my grandfather and grandmother coming here, i would have never been in this kind of opportunity and with the american dream so we don't agree with the current program. we believe we should find a program that welcomes everybody in this country and keeps our country safe. we look forward to working with the administration to make that happen. but for our own employees we are going to make sure they get treated fairly and that they get where they need to be when they need to be there. >> mark laura linney is the chairman from hartford. is it in boston or hartford? >> we are in hartford, david. >> thank you very much.
mark: great job david with chief executive officer mark bertolini. we will go back to central banks and bloomberg will have coverage of the federal reserve's worst decision -- first decision tomorrow starting at 2:00 p.m. in new york. stocks today falling for the third consecutive day. stoxx 600 down by two thirds. look at the currency board, interesting comments from donald trump trade advisor saying that the euro is grossly undervalued. the euro rising against the dollar on the back of those comments, up by 9/10 of 1%. bloomberg markets continues. this is bloomberg. ♪
headquarters in new york, from washington to baltimore and atlanta in the next hour. euro the top stories. in markets, the trump train shows signs of fading as the president's approach to investors,nder stocks setting in for a fourth they are decline, the dollar getting its worst drop since march. democrats are renewing an assault on his pick for attorney general, questioning jeff sessions. the next supreme court nominee, we will get the latest from washington. shares of under armour are sinking the most in nine years. a dismal forecast rattling investors in days of rapid growth drawing to a close. julie hyman is standing by with a look at the markets. >> in the fourth straight day