tv Bloomberg Markets Americas Bloomberg April 21, 2017 12:30pm-1:01pm EDT
them alive from bloomberg headquarters in new york. let's get a check on where the markets are now. abigail: not much action on the major averages. 500, andhe dow, s&p the nasdaq all lower. all three major averages are higher for the first time in three weeks. it is the small declines that suggest investors are basically consolidating yesterday's big move. we have the french presidential election on sunday. this chart mesa just what could be ahead for the s&p 500 irrespective of what the outcome is. in blue is the 50 day moving average. quickly slicing through that 50 day moving average.
there was a near-term decline. some thing similar happened around a u.s. election. we could see him move down to the 200 day moving average. it will be interesting to see how that plays out. as for what is weighing on the markets, we do have quite a few earnings losers here, big cap losers. general electric is down 2%. the sixthearnings for quarter in a row. what investors are concerned about his cash flow. a yields are trading lower. look at verizon. they put up that disappointing quarter. let's take a look at some energy complex.
it was reported that their production was much more than what had been expected. that.ors not liking and down nearly 3%, a mixed quarter. investors are not happy with the decline in international sales. on weatherford, another oil services company. some weakness in the energy complex. vonnie: thank you for that. are warningrs investors that stocks are trading at unsustainable levels. of the stock market relative to the size of the economy should be -- jonathan berger's founder and ceo of birch growth. firm.ulti-hedge fund
he'll so things credit is overvalued. jonathan, just give us an idea of why you saw this market differ from other money managers. guest: our view since we started about four years ago is we have been in periods of high volatility with bouts of low volatility. many managers think the opposite, but if you look at the vix for the last four years. we have been in a period were there has been a tremendous amount of spikes. we are still below the average, which is i believe 15. you can see sustained periods where we have been above 20. thiseason we have been in
-- combinef assets an exponential growth in the amount of retail or liquidity commoditiescated to and currencies. >> you have an interesting way of dealing with the risks. it is not your average credit. you have ways of offsetting one or the other. guest: at the portfolio level we are trying to take the market directionality out of it. it is very difficult to make predictions in this market. alone get them right over long-term. we are very neutral. at the trade level we are focused on an idiosyncratic adventure.
vonnie: let's take a look at the first example. this is one of the credits. guest: within the credit market i would say it is a small issuer. firstly a bond that has a maturity in 2018. we expect the company to refinance within a year. -- that bond move up. we are actually taking it very hard. >> it is really only paying off
if you get is absolutely right. , a chesapeakee bond, we were speaking about oil earlier. a lot of credit managers saying the oil trade is played out. think we agreed, we atsapeake, the way we look the energy complex, we are looking at cheaper ways to short the economy. short thise have is bond. because we don't want to take a directional view we want to take the senior secure loan. if there is risk off in the market. >> they are pretty richly valued.
it is not obvious what is priced in to anyone right now. the loan that a senior to it is trading at a seven yield. >> you obviously have investment in equity and whether md is where you see some value. >> web m.d. is a health care information service business. are a big believer in this company. bethink this company could part of any number of situations, it could be required by strategic or financial buyer. a billion dollars in cash
second be used to make a transformative acquisition. vonnie: jonathan berger, we have to have you that again very soon. thank you for joining us. some headlines crossing the bloomberg. steven mnuchin commenting on an off-camera briefing at the white house. commenting on house finance reform. if tax regulation is too burdensome and we will fix it, he is saying. and liquidation rules will be .iewed for risk-taking it is very important to the white house. little tidbits on what we can expect when it comes to regulations. here is mark crumpton. mark: president trump critics thursday's attack in paris will
have a big effect on the french presidential election on sunday. the president tweeted that the people of france won't take much more of this hours after a gun man killed a police officer. were woundedeople and police killed the gun man. islamic state claimed responsibility for the attack. the gun man has been identified as -- who has a critical that has a criminal record. al-assadesident bashar is not considering asking russia to send troops out to fight islamic state. key backer of the assad regime, has been providing air carson's 2015 but has not provided boots on the ground. president assad told news agencies that trump may be needed in the future if more terrorists from all over the world are brought to syria.
house speaker paul ryan is leading a bipartisan congressional delegation to war salt to meet with poland's president and prime minister following the recent deployment of thousands of troops there. today stocks are focusing on economic and security issues. the congressional delegations trip to europe is scheduled to include stops in britain, norway and estonia. says if chinap wants to solve the "north korea problem," it will. president meeting with xi jinping. the president weeding today that china is the economic lifeline to north korea. global news 24 hours per day in 2600 journalists and analysts. this is bloomberg.
received from the president's office. the order will direct treasury if they place an undue financial burden on taxpayers. calling for a review of the designation process for cities. if you orderly the creation authorities as well. peterson institute senior fellow and former imf chief economist joint bloomberg daybreak from washington today, where the imf meetings are underway. the upcoming french or italian elections, the eu has been consistently named. >> they are largely responsible for this, whenever they did something that was needed but not maybe popular, they would lame brussels. has -- it is not going
to be easy. it has to come with the help of the government. i think the government is paying for taken the easy road earlier. that's an issue in many countries. it was an essential element may be as important as immigration. it is too easy to pick up on brussels. >> the satisfaction is really a lack of growth. if there were more money floating around. is there a result that would likely give more growth to the french economy? >> if you are realistic and take --uctural measures by 1%
that would make some difference. it is the fact people feel excluded from the labor market. i think it's more important. i think it is more important to make sure that kids get a job and get a better job and can stay and so on. to me that is a central issue. >> i think the heart is for the inability to represent fiscal stimulus. the service pmi really highlighted that. their survey for services is not, that means domestic demand. -- can eurozone companies they still have the eu rules wayne down on them. >> with the notion of more public investment, more
education would be good, even if it lead to larger deficits should be tweeted differently -- should be treated differently from the usual public spending is different. aren't many things you can do within the budget. it is clearly harder. you can't just blame brussels because we can spend more. blaming brussels and blaming the far.l austerity goes too >> what does it say about a european project that we talk about nomination risks? >> i don't think there is any danger of risk as a result of the elections in france. even if it is the second round between the extreme left and extreme right, i think either of
them would be unable to get france out of the euro. risk, ithe elimination is a very small risk if at all. >> that was senior fellow and former imf chief economist. a quick rundown of this year's presidential building process right now. every vote has an equal way, in theory a candidate can win on the first ballot if they garner 50% or more of the vote. but election has always gone to the second round two weeks later. this year presidential voting will be held april 23 and may 7. the duration would take place
about 10 days after the second round election. a quick programming note, stay tuned, this monday on bloomberg television and radio, special coverage of the first round plant -- first-round presidential election. join our bloomberg news reporter from campaign events and rallies. coming up, a new ceo -- now the luxury watchmaker is changing trends and what we can expect. this is bloomberg.
as ceo of the luxury watch brand, some abrading a partnership with the tribeca film festival. watchmaker's are having to re-strategize due to a weaker market. how he plans to do that is kristof granger. it's a big ask. what are you going to do? >> the american market has always been great for us and we are here for the long haul. we are developing it. >> what needs to change as there are some weakness in the market? >> the important thing is to have a connection that a strongly base. we have diffuse -- we have a few offerings going on. funny thing how much is that watch? you're talking about dollars.
>> euros. us about what you thatringing on for women has been a staple of the brand. what else are you doing now that is new? a we just launched collection, which comes in automatic and complications. this is a big for us this year. >> you compete against other brands under that umbrella. how do you navigate those waters? >> it is all about enticing the consumer with extraordinary storytelling. this is what the emotional side is that makes people follow their brand and products. withu had a partnership the tribeca film festival. tell us what that means to you.
>> we had the storyteller of watchmaking. that angle is really close to our hearts. we're very excited to be part of that. >> but you didn't create any for that. >> we are celebrate in launch of our current collection. >> the u.s. and hong kong were the two luxury markets. how do you entice a customer to spend extra money if they are raining it in a little bit? >> different price points, different complications of ladies and men's offering. havehat is making sure we a diverse range of clients and diverse markets. >> i was looking online. there is a wide variety of price points from 3.5 thousand to
40,000 plus. >> we have watches that are affordable and automatic, and a of complications for iconic designs. it gives people that range of offerings and products. your red gold ones are particularly -- red goldmbination of with different dial colors is beautiful. partnerships.ve why are those particular outlets -- think they have a unique angle because they contextualize watches into a lifestyle context. this is the pilot time zone. this is one of the easiest systems in the world. it is just one twist of the
bezel changes the time zone to where you are. for me traveling a lot this is the perfect watch. and it lasts for your entire life or more. >> will use day eight nonelectronic brand? >> i think we have to different shape between our functional project -- functional products -- vonnie: the best of luck. just one month into his job as the new ceo of iwc schaffhausen. to -- ad on the bloomberg. coming up on bloomberg markets david westin will be speaking to the --
first 100 days in office. that will direct treasury secretary steven mnuchin from any significant tax regulations last year. the president will sign a memo related to the designation process. lawmakers return from spring break facing a looming funding deadline. the pressures on leadership to avoid a politically risky shutdown, that would coincide with president trump's 100th day in office. we are looking for a possible revival of a republican health care measure. and francine locke global speak with -- at the imf spring meetings in washington dc.