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tv   Bloomberg Markets Americas  Bloomberg  June 15, 2017 10:00am-11:01am EDT

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vonnie: here are the top stories we are covering. the bank of england shows to send quality federal reserve hawkish from janet yellen. in june.on seven-monthng at a low. remains upial reform in the air. freebanks will do for capital. we have some declines.
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corrects we do have some, particularly for the nasdaq. a lot of money coming out of achnology, but whether resumption of what we have been seeing. that is why you see the nasdaq doing much worse. if he see the nasdaq the last five days, you see the selloff. down.g into friday, beganose before this drop was a record one, but it also major- simply the three averages and you have the nasdaq here in blue in the nasdaq has been the leader for the past
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month or so. that lead is narrowing as we have seen. outsider as seeing small. most, shares down the going back 15 years or so. it looks like food deflation seems to be to blame here. analysts are cautioned the food deflation now might be lengthened by price wars. walmart -- sprouts is being downgraded today.
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we areer corporate story watching is 19. the company cutting about 2% of its workforce. it is trying to be more translate intoch cash nike shares down almost 2.5%. down my 7/10 of 1%, the 2060.is aside that, i will tell you a little bit about it. votingefenders, three
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for. u.n. on as of now. we will talk off the damage occurs your up 10 points. the 10 yearesday, close at 92 basis points. upwarde is the biggest since october or december. this is a wonderful function. was last logged on the
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-- we are at 50% before the election. before, we were at 35%. analysis, weore are joined by an economist for bloomberg. give us the reason for the dissent. >> i think there are two things for the first is unemployment.
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the hawks don't seem there will be much of a demand. haskellbe a slowdown in function. -- what he seen the forecast at least in their opinion is less strict, more pressure on wages. after that, a slight: we have that isce the election a bit of a forecast. >> this goes back to monday. it is not take into account -- ything
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forbes leaves so that is one of the three. talk about the dynamic right now. park: you are quite right. normally use give-and-go was a where i or at least .econd we don't think that is going to come through. i think the dynamic will shift
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towards the doves. mark: -- has saying the first rate years. theaters -- two --timately, -- i think 1.7% it is not fast enough. thanks for joining us. years -- guild yields rising crude nejra in washington, paid tightening of monetary policy.
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near itsmployment the -- sustainable level >> the next couple of years in online without objectives. monitoringee is closely. -- >> i do think it is trump territory. a couple of months ago we got a .ignificant drop
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you have something called high for donica adjustments. took 20 basis points off wasthen what transpired weakness in a component where you have seen some of the states inflationgher rate of , but that was yesterday. comeink that will probably back in the next 3-6 months. -- he made a good point earlier. itsaid if one thing is wrong affects the market in the fed. makes some sense
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because when you look at what is transpired, we are positive on inflation. is a -- had globally buying assets against a democratic backdrop. that has created a gravitational pull. we could argue. .e're not really justified volume of demand, it is hard to push against that.
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which side would you be on and what does it mean lingering bonds? >> i think with respect to the u.k., it is really spot on. rationale --of the this week surprised consensus and is currently at a level .bove i think what they are essentially doing is tried to -- they are not necessarily given the let consumer process.
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question- again, your is important. three thatwe've had all serve. the fed statement yesterday was probably on the whole front -- i think there is some a of a gravitational shift banks.place among start telegraph free. what are we buying in the inflation universe?
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>> what we are currently pressing in the u.k. is inflation that is substantially in the back of new england as a target. hiked interester rates again. vonnie: we know the quantity and tapering. the that starts to happen, will -- affect demand that being said, tightening
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pressureobally should real rates higher. i think it is tainting with more tomorrow's colleagues will be jonathan ferro's system with rick rieder. the first word news now. >> president treating heart came -- accordingng the
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to people familiar, miller will introduce -- interview to people. in london, the fire at the granville tower has finally been extinguished. at least 17 people were killed. authorities say they don't chef.ly say talkss a report that between the u.k. will start today. global news, 24 hours a day, -- red by
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belowcoming up, trading $45 a barrel. this is bloomberg.
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mark: are we close to finding stability? >> short-term, i think the jury is still out. when you look at oil prices,
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dcaa downward pattern. the would be on the downside. bit offinding a little stability here. i think it is having an impact. outee the information came yesterday. indicatinghe icna is .t a little higher /i'm looking at futures and the probability of another hike this year through the end of the year is less than 50%. do you expect markets to move
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closer in the coming months? >> i think it is possible. you have to go to december to chance hike. we are seeing a little bit of a overall, expectations move in the next six months. >> vonnie: still ahead, growth through diversity. this is bloomberg.
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i think all those ideas -- believe me we pay people very job because it is on the and what they do. the row question is are you going to draw from under percent the population in ministry and company that is completely dependent on the talent. if you don't get from a hundred
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if you don't get from a hundred percent of the population, you're in trouble. come out and say why do you do these things? way.er thought of it that you want to get the best talent. mark: still ahead, speaking to of europe'se biggest hotel chain along with new pushes into technology. this is bloomberg.
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markets. >> president trump said some conflicted people are linking -- leading the single greatest which am in political history. according to people familiar with the matter, to intelligence officials about whether the president asked him to get the fbi to back off the investigation. the third ranking republican remains in critical condition after a shooting. steve scalise was shot in the hit. the attacker was a 66-year-old who had illinois anti-republican messages on social media.
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official to a treasury . the deal, which focuses on -- and in japan, they have passed a controversial that gives them the power to arrest people in the planning stages of crime. mark: the finance minister is meeting in luxembourg today. expected to agree on a aid package.
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bloomberg's narrow is in luxembourg with the latest. >> metta certainly help bloomberg news is reporting it. . have been speaking to a lot there will be some sort of agreement. that will be to the tune of eight and a half euros. where the agreement is going to stop short is on debt relief. these are expected to the ongoing. as you know, the imf has been debt.g to see more recent , particularly has been
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sort of softening those repayments on recent debt so that is one of the key sticking points. one main compromise would have the imf agree to a new program that would withhold funding and france has been forward an interesting proposal as well which would be to make debt relief contingent on greases growth prospect. mark: if the imf gets involved amount oftive to the european countries would be pledging, it is not very much is -- very much is it? i did get the feeling on the
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doorstep. -- spoke toed you the imf. >> there has been a lot of work to narrow the differences and i'm pleased to come to a instructive approach. -- it doesn't necessarily make it likely they will be .neligible with the program
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still ahead, we are going to speak to the chief executive of europe's biggest hotel chain. this is bloomberg.
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♪ will just want to take you over to the conference and harris where there is a technological disruption. she is joined by special guest.
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joined by europe's biggest hotel operator from paris. good afternoon. so what are you doing -- what are you looking to invest in? i want people to understand what is going on around them. me and iem to meet want to be fond of it. >> what did he tell you and what do you think of the business environment he's trying to create? lot.think it means a this is friends. we are welcoming a lot of people to be part of it. some pride here.
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a lot of respect so there is something that i call energy. >> you think -- >> at the end of the day, i will never be against someone. we have a new french president and a new french government. there is something here. without thinking it will be at it ispense of someone, going to be good in the u.k.. it is the third largest country.
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>> tenure tells more about this and what you will do question it is over 1000 hotels in 20 countries. with come to invite long-term investors. -- a bigemain endeavor. it is something that is good and something that will go further.
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>> some reported you have those buyers. you confirm these? all the major ones in the are actually true. ones.re not the only it is a long-term partnership. to be more than 250 million euros. 40 going to do with the cash russian mark >> don't ever think
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about spending the cash before you have it in your pocket. i'm sure they will be challenging me. how are problems affecting? >> we live in an industry which is a blessing. it is one of the largest industries in the world. 5%.s growing at you'll have some axis coming in and access coming out. we are going to remain there for .he next six years
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be -- i need to lead the people with brighter ideas. mark: great interview. we will speak to you as a bit later. here's how the head of the luxury says he is looking to invest. -- since last year. we started the id and we do it and cooperation -- i think we want to show it is possible for big organizations or large
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us.anies to help start -- startups. you have a mix between large organizations and startups. we have 32 startups that we are going to present to the outside world. >> how much are you investing in startups question mark -- startups? long are investing for a time. fashion startups, digital startups heard -- digital startups.
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, it may be the largest retailer of beauty products in the world and we have started .arly the digital operation we have one of the best digital teams in the world and it is extremely successful. main goal of the start of is not to stay a startup or the goal is to become a large company. >> you're talking about the u.s. markets. take?s your
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>> i'm interested in business. strangewe are in a very period. -- -- i see it is invaluable that the crisis .appened the next two years explore.int, they will
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this is the first time i have seen that and sometimes business, i have seen crisis almost every 10 years. -- my activities -- [indiscernible] d think macron is quitting the best environment and france? >> yes, i'm very happy to see the new power that will contribute to also give more to europe. china a key market for
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luxury goods. debt still faces mounting -- china'sbject public and private debt is a threat to the global economy or maybe it is a byproduct of the boon that created the world's second-biggest economy. either way, the phillips have been breathtaking. about 204%rowing to all the way up from 163% in 2008. that outpaced the u.s. in the u.s. before the financial crisis. the picture is complicated by shadow banking.
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in may, -- here's the background. during the 2008 financial .risis, workers settled china'sl comes amid slowest economic growth and 25 years and a push away from that incentive heavy industries and exports. concern tech can grow their way out of the problem. rate help.h savings pessimists say the problem is not self-correcting. that could china's
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remain day dragged on global growth for decades. you can read more on the bloomberg. ahead, catch our interview with american airlines chief executive doug party -- this is bloomberg. ♪
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♪ from london, i'm mark orton. theie: earlier this week, treasury department released a report outlining plans to free up millions of dollars that cap of banks are forced to amass after the financial crisis. the question remains globally do with all the extra cash? all, let's ask the
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question. how much money are we talking about? >> we don't know. in the hours after the report, analysts working on this very question. we got some notes that gave us some indication. bank of america analysts thought that everything got enacted, it could mean as much as $2 trillion and lending capacity. goldman sachs analysts came up with a number that the banks $100n't need after this of billion. vonnie: the difference between $1 trillion and two -- $100 billion? >> they are looking at two different things. mark: the big question is, where's the money headed? back to the economy or shareholders?
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good question. the trump administration would like it to go back into the economy. the folks we have talked to have giving as might in the lot back to investors. thanks already have capital they are using to lend to get back to investors so it is not like there are people knocking on the doors of the banks saying give us loans, give us money and the banks are saying we love to, but we don't have enough. it seems like there isn't an indication that there is a huge amount of demand that the banks haven't met which is what these proposals seem to assume on a certain level. mark: on the buyback and dividend front, is that the best
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way of putting this money to work or not? >> it is a good question. there's some debate about that. we spoke to one person in today's story who said, however that money gets out to the economy is ok, so the banks could give it back to -- and thosefor shareholders have money that they can go do something else with. presumably, they would put it into another industry that has higher growth prospects or something like that. you howlet me ask concrete this is come when it is going to roll out and what will happen in terms of the other rules and regulations. >> the treasury department get a very nice job in this report of telling us one of their proposals have to go through congress and what can be done by the regulators themselves. i think a lot of people are
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assuming the proposals that just maybe regulators to take a different approach, that a lot is actually going to get done. as a bigger question about the changes that need to go through congress and require a rewriting of legislation. one estimate i heard is that maybe 60% of the treasury department's proposals just need regulatory changes so 60% might be what goes through. vonnie: great story. thank you. mark: let's get to the european closed which is next. 35 minutes until the end of the session. stocks are lower today. this is bloomberg.
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♪ 30 minutes left in the trading day in europe today. a london, i mark barton. quinn. i'm bonni vonnie
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this is the close of the european markets. ♪ mark: the top stories from around the globe and from the bloomberg. european stocks are drifting lower today. dissent grows within the bank of england. we will have the latest on the market move. in politics, president trump is speaking at the white house this hour had a jobs meeting. this comes as the special counsel is investigating the president for possible obstruction of justice. the president firing back, calling it a witch hunt. we have an interview for the american airlines chief executive doug parker. american shares continue to slide higher and the sometimes frosty relationship between airlines and customers.

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