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tv   Bloomberg Markets European Close  Bloomberg  August 2, 2017 11:00am-12:00pm EDT

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dod should think twice
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before pulling a major surprise. european equities trading right now. 30 minutes until the end of the wednesday session. stocks down for the fourth day. dod should think twice before pulling a major surprise. adjourn -- other major industries rio tinto creasing its share buyback by $1 billion. the company reported earnings that more than doubled from the year earlier, shares slipping, analysts speculating the company's spending plans suggest a more conservative outlook. the cutback in mining is gaining momentum. rio tinto today down by 3.3%. a look at the german carrier, shares up by 3.3% today. it is euro wings discount unit propelling earnings gains that
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prompted its parent german carrier to raise its for your forecast a couple weeks ago. the brussels airlines business, that it is absorbed -- observing. now.ngs surging right mainline companies, such as efron, klm, aig siberia and british airways expanding long-distance travel to asia. this is the euro. analysts that study to help guide their prediction, looking back to 2010 for perspective on how high the euro could rise. 114 market breached since the first time of august 2015. the currencies still has room to run, according to analyst. they point to 118, 77. euro's lowest
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levels from 2010 and 2012 respectively and technical levels that loom near perm targets, looking beyond the lows of 2010 and 2012. an analyst at jpmorgan points to 12167 is another level to monitor, that marks 50% retracement of declines from the euro plus 2014 high, just shy of 140. loads of technical analysis on the euro. 90 minutes into the trading day in the u.s. 22,000, we hardly knew you, mark. we're seeing the dow go back below that level as we see gains across the board firmly in the red. what is going on here? here's the imap. your consumer discretionary is now the worst-performing group in the s&p 500, the worst performer in the index is
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nordstrom after women's wear daily said this morning the company has not instituted a bymer -- formal sale profits the second worst-performing group's energy, and that has to do with what happens with oil over the past half hour and what is happening on the earnings and productions front for many of the oil producers. between these two groups we are seeing a dip here although materials and health care lower. let's look at that oil price 30 minutes after we got the weekly oil inventories number and prices have taken another leg lower. i'm going to go ahead and put it on the bloomberg to show it to you because we're seeing this dip in oil. can you call of the terminal here and be will take a look at these oil prices? you did seethat this drawdown across the petroleum value chain, crude oil, distillates, gasoline seeing a drawdown. imports were higher as we've got resilient production.
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he says that continues to imply a slow narrowing of imbalances. that is still weighing on oil price straight let's get to those shale drillers. they keep drilling here. that implies the oversupply is here to stay. if these guys are still pumping. all of these companies coming out and saying they are still going to increase action this year even though pioneer lowered the top end of its production forecast and his company's earnings reports also missing in various ways but one constant is production will continue to go up. another way to look at that on the bloomberg here, look at the oil rig count as well as oil production in the u.s. you have crude oil production in yellow, which remained pretty persistently high despite the drop in oil prices, and you have this rebound in the recount that's been going on for many weeks now, mark. vonnie: thanks, julie. back in europe, sterling rising today. further than expected construction data focusing on
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tomorrow plus bank of england decision, the central bank expected to leave rates unchanged. james, thanks for joining us. june was exciting. it will probably be less exciting. the score tomorrow, wanted? >> i think so. the two dissenters that remain on the committee from june continuing to vote for immediate rate hike but noted new members joining them. markets will be watching closely how they indulge. our expectation is they stand out as well and we deliver 6-2 on change rates. vonnie: we haven't -- mark: we have a chart that shows the probability of a rate hike. a couple of weeks ago it was much higher than it was. it has come down one month ago, the orange line. the white line is right now. we knew come down from 70%, to
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just above 50% -- when it comes50% to the probability of a rate hike this year? first quarter of 2018 is when he thinks the eob should raise rates and not end brexit negotiations. wait longer.to we don't think rate hike this year will be prudent. thus far pretty weak growth. part of the business sector struggling too. their expectation is rates or may not through this year. 2018 perhaps a bit more open-minded. rates startsation to dissipate depending on how negotiations proceed. good start to see that debate become really active. our expectation is for the next 6 to 9 months, the bank will be on hold. mark: vonnie?
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vonnie: i was going to talk about inflation, you talk about the headline number and we have a great short we have entitled food for thought which shows the food component is turning down, so food is getting cheaper, but we may not necessarily see that filter through to core inflation. will it? we're having something of a similar debate in the u.s. right now when it comes to oil prices meant to be transitory and inflation data. that's right. the u.k. has to contend with the fact that it's got a big sterling coming through to inflation, and the work we've done on that suggests it can take between 1 to 3 years for that effectively washout. the u.k. has a lot of temporary inflation coming through that channel. in the u.s. it's a little more perplexing and worrying that even though it's fairly far advanced in its cycle, even though the labor market seems to be tight, you're not seeing a
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normal relationship are as strong as he would expect between closing slack and rising domestic inflation. the provide food for thought at the fed and that's what yellen was signaling a bit in the previous meeting. vonnie: interestingly, james and mark, i want to point out the cleveland fed president is just given a speech in cleveland in which he says he believes the natural rate of unemployment is 75% in the u.s. it's one of the natural things that central banks need to start asking themselves. they are not getting that inflation reimpose. one question is its delayed and they could wait for it, or there's more capacity. that's either in the headline unemployment rate or perhaps in other measures of unemployment. under employment, people working less hours than they'd like to work.
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maybe there is a bit more remedies labor markets that central banks had thought. tok: coming back to the boe, what extent does the doe -- is its job easier and they can lean on the financial policy committee or be a bit more stringent on lending and bank capital levels? does that mean the boe concern of step back and allow the macro prudential side of regulation to work its magic? >> i think that's right. it feels a little bit more comfortable now because it almost has 2 hands. with the one hand it can look after the macro economy, that longer-term horizon. it almost has to be nervous that you have -- that you can create financial imbalances. perhaps it now feels a bit more emboldened to leave that policy for a little longer because it has this additional toolkit. the fpc can feel quite confident canaking action so it
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mitigate the systemic risks in the u.k. economy, and look closely at consumer credit. mark: james mccann there, standard life investment, oecd economist. complete coverage of super thursday, as it's known. vonnie: i know, in august. aren't we lucky day. let's check in on the first word news in new york. we have courtney donohoe. courtney: president trump has signed the russian sanctions bill that congress forced on him but he added a statement saying his reservations about its impact and whether parts of the law are constitutional. the measure gives congress the power to block the president from lifting sanctions. additional sanctions have been discussed on venezuela. president maduro held an election over the weekend that could lead to his grabbing more power. heator marco rubio says
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spoke about more penalties will visiting the white house. yesterdayhe president , i talked to the vice president yesterday, i've been in contact -- constant contact with them. every time the white house -- every time maduro does something , for the reaction, there will be a strong -- for every action, there will be a strong reaction. the u.s. successfully tested and unarmed intercontinental ballistic missile just days after north korea conducted its own icbm testfiring. the minutemen 3 roared into the skies from california. according to the pentagon, it was not a response to north korea launches. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm courtney donohoe. this is bloomberg. mark? breaking news, said to not proceed with an investment in american airlines, qatar air.
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shares in american airlines already low and drifting down in the morning session, gone by 1.8%. on a separate note, we are getting worried the president is said to be considering rick perry, currently energy secretary, is one possible replacement for the homeland security job. once again, the trump administration considering secretary perry is a possible replacement for homeland security john kelly, is now of course chief of staff. this is bloomberg. ♪
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qatar said not to proceed with its investment in american airlines, it's taken this decision not to proceed with its
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proposed passive financial investment in american airlines, the company just released in email statement saying further proposed of the investment taking into account the latest public is mosher of aa demonstrated an objective. toar airways will continue investigate alternative investment opportunities in the u.s. us breaking, qatar airways will not proceed with its american airlines investment. litigation costs continue to hit the bank's international growth. 28% drop in second-quarter profit due in part to those high legal charges. in an exclusive interview, chiefne conan ask the
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executive about the bank's earnings. >> first of all, we posted in the first quarter the impact on the net profits. what we had to do in the second quarter is to account in detail, impact on the net profit in the second quarter. second, what we decided to do is to add to our provision, to the general litigation provision. have to put behind us the well-known litigations, on libor, a follow-up on the lia in the u.s. we have these litigations. we try to put that behind us as quickly as possible. >> investment banking difficult for some of your rivals in europe and also the u.s. makes the bank more able to
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offset this difficult market environment? >> what we saw the second quarter is for example, this activities on the slow business, investors are more in a wait-and-see mode. bentley benefited from product activity. it was a pretty diversified business, which i think is well-suited for the new regulatory framework. we are able to make progress with our clients, to make progress in terms of profitability, thanks to all the assets we've made. mark: that was part of caroline conan's exclusive interview. vonnie: the white house just releasing president trump's full statement on sanctions bill against russia that he signed
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into law. he called it significantly flawed. he said quote, in its haste to pass legislation, the congress included a number of clearly unconstitutional provisions. for instance, though i sure the policies used, those provisions purport to displace the president's exclusive constitutional authority to recognize foreign governments, including their territorial bounce. a live report for moscow next. this is bloomberg. ♪
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vonnie: breaking news, the white house released that full statement from the president following his signature of the russian sanctions will into law. in the statement, the president says that it is significantly flawed, this legislation, direct quote. he said he expects to honor the bill's waiting period but congress clearly included
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clearly unconstitutional measures. he also said he expects congress won't hinder work on the ukraine complex. saying it ismp clearly flawed. bloomberg's anthony hodson joins us from our moscow bureau. visit make the bitter pill easier to swallow for russia given the president has included so many caveats in his signature ,f this portions of legislation saying for example that some of it is rarely unconstitutional? >> not really. i think president putin and the kremlin generally has been expecting trump -- i don't think they had any expectations you would go into a confrontation with congress on behalf of relations with russia. the russian senator has already expressed his view on facebook, in his view trump surrendered in the struggle with congress and
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the sanctions legislation makes it difficult to build any kind of relationship with russia that would allow them to resolve global problems. the mixture of resignation and disappointment in moscow, this legislation has been side. vonnie: is that a watermark? verythis mean he would be difficult to work with the united states for russia going forward -- it would be very difficult to work with the united states for russia going forward? >> it's only a month since putin and trump had their first meeting doesn't meeting overran. since then the sanctions legislation has gone through congress, trump has signed it, russia has retaliated on sanctions preemptively by ordering 755 u.s. embassy staff here to leave their positions at the embassy and the consulates in russia, and has seized 2 properties the embassy was using in moscow. quiteons have gone sour
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fast and it's hard to see how they can pick them up again. has there been any market reaction to this news? ruble's already been struggling the last few days and it is weakened further. i think they feel the political risk is heightened in relation to russia and the rules are beginning to reflect that rea. move by thewas the russians to cut diplomatic staff from the u.s. is there a risk that this becomes a tit-for-that issue, and we begin to spiral? >> yes, i think that is the risk. russian news agencies have already been reporting, erroneously it seems, that there might be some kind of response to the fact that the russian
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foreign ministry forced the ministry to give up properties. russia ordered the u.s. to reduce its staff numbers here by 755, in response to the sanctions legislation but also the fact the obama administration expelled 35 diplomats less november and seized 2 diplomatic complex -- nds in the u.s. in response to the alleged russian interference in the u.s. election. putin has said he doesn't want to see a spiral, he hopes the retaliation ends here, but we'll have to see. vonnie: in terms of geopolitical maneuver, what's most at risk? is it any kind of pressure on putin when it comes to syria, for example? that was one area where the u.s. and russia were trying to work together, but it was very strained. >> yes. syria is priority number one for
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russia in terms of building relations with the u.s. at the moment. we have a report today that russia is finding it difficult to restrain syrian president assad from attacking the last rebel stronghold in syria because he wants to work with the u.s. in enforcing so-called de-escalation zones to strengthen the cease-fire there. trump and putin together agreed on the cease-fire. that's an issue russia would like to see go forward. mark: -- vonnie: thank you for jumping and so quickly following the news. mark: look at where european markets are heading as we move towards the close in roughly four minutes' time. stocks down for the 4th day. this is bloomberg. ♪ is this a phone?
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see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money. mark: live from london and new york, this is the european close. i mark barton. stocks finishing the wednesday session lower today.
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real estate, oil and gas. the rest lower, falling as the euro gains, highest level since january 2015. the benchmark down for the fourth day. shares earlier falling as much as 4.9%, biggest job in a year. in a year. his continued struggle with litigation for past misconduct overshadowing a demand for structured products in the brighter picture for consumer banking and eastern europe, appetite for structured products helping the firm's trading revenue drop less than many of its peers, you are in deep overhaul mode such as deutsche bank. still dealing with the legacy of past alleged misconduct, including the u.s. probe into violations of trade sanctions, france it's third-biggest lender increased legal provisions by 300 million euros for disputes. it did not specify how legal charges help push net income down by 28%.
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with the french nation,'s shares unchanged on the day. they were high earlier, setting the bar high for french investment banking and asset management rivals, and that's income in the global markets division that sort by 20% in the second quarter. -- soared by 20% in the second quarter. also says it's taken 9 billion euros of new money at its asset management operations globally, net income also beat estimates. leading the push into asia and the u.s. into areas such as advisory for mergers and acquisitions and capital markets. trading revenue, compares with a drop of almost 10% of the top 5 u.s. investment banks in the second quarter on aggregate, as if you didn't have enough of banks, standard chartered, 6% lower today, the chief executive
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bill winters overhaul of it has stalled, it seems. the emerging markets focus lender fell the most in almost nine months today, one of the big followers on the stoxx 600. the chief executive sounding caution about growth prospects for ordinary uncertainty, rounding regulations for a decision not to reinstate the dividend. there's where the disappointment lies today, comments overshadowing his second order of revenue gains and pretax profit. the double biggest decline since march 2016, vonnie. you know what's funny, when we started the program at 10:00 where we were speaking about dow 22000 and how august is a little dangerous when he comes to volatility, at that time the fix was below 10. now it's above 10. we are seeing a little spike up in the vix. not much so, i'm kidding halfheartedly. the dollar-yen, nothing a huge
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reaction in the particular session but at 110.42, that's a big move for the dollar index. nymex crude oil, that rebounded since those inventories. the fact the you've seen big moves in the market in the last hour alone, 49.41, that's about a dollar of a move. gmm, you can see that russia stocks are doing pretty well but everuble is weakening since congress brought those sanctions to the president's desk, which he has now officially side. you can check out some other movers there, if you type in gmm. mark: thanks for all that. let's stick with the markets, what can we expect from tomorrow's interest rate decision and inflation report from the bank of england joining us now. david riley, head of credit strategy at lupe as it -- blue bay as a management.
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think you for joining us. u.k. credit. >> i like it. mark: that was easy, interview over. why not? we recently had alan greenspan talking about the inflation gas, having a look around the world, the only major economy that fits that description is in the u.k. where growth is moving meaningfully seen and inflation is above targets. that's bad for pretty much all assets. that's the sterling that we think will be bad for guilt as well but that for credit. we've seen -- despite bank of england being buying, corporate debt has underperformed european credit. mark: the bank of england did this talk a few weeks ago that they've raised rates. that ain't going to happen. is that what you are saying? >> nothing's going to happen tomorrow.
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mark: or in the near future. >> there is a big mess coming up for the united kingdom, which is more about politics than it is about the bank of england will have implications for the bank. then we have the budget. what comes out of that weaker or stronger, one of the key challenges we're seeing at the moment is does the u.k. government have the political authority, does she have the political authority to make a compromise if necessary to avoid a cliff edge. mark: even though you have divergences within the capita, happen on one side -- the talk seems to be moving toward a softer version of the heart brexit. to startl have
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fleshing out those positions because this issue around money, it's going to be tough both within the cabinet and the border to kingdom, you have the issue around the court of justice which if you want the transition deal and access to the single-payer market, you have to accept some jurisdiction on that, and you have thanks like the border to be dealt with as well. there's a lot of tough things to be resolved during october, including the great repeal act and how the labour party in your position respond. depending how that pans out, we could see further weakness in sterling and that worsens the inflation growth tradeoff. and then the bank of england, it's tough for them. they're theonly anchor left for policy in the u.k. mark: if you've got no growth by but risingation, --
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inflation, you think they would be more towards the low growth. if a temporary overshoot of inflation. have ise problem they if they lose the credibility of their anti-inflation credentials, sterling comes off and we don't think there's enough, political risk premium priced into sterling and into sterling assets more generally. if you like taking a position at the short end in terms of assuming the bank of england will be forced to raise rates, given the political risk and ifnlation environment we're facing. mark: have you made any big tweets? you're a member of the asset allocation committees. have you made any big tweaks to your investment standpoint? i know you've been into high-yield. have you been moving a bit from high-yield, emerging markets? >> we been moving since the
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first quarter, rotating from global leverage finance into emerging market, sovereign and corporate. we've also been significantly increasing our exposure to emerging-market local currency as we corporate as well think there are some good opportunities. you're getting a big yield pickup, there is a wide gap in nominal and real rates between emerging markets and g3 fixed income. think the markets also pricing and if you like to much inflation. we think they are underpricing the scope by a number of central banks within emerging markets. it's become quite a consensus. over a if you look number of years i look at how global investors have been positioned, and when i'm speaking to asset owners as well, they're only starting to
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move the money back in. a lot of them still have a lower allocation to emerging-market assets more broadly than they had 5, 6 years ago and even on an average basis over the last 10 years. i think the rhetoric has gotten ahead of the reality of investment decisions. mark: long italian bcp's on a spread basis. >> the european story is one that we've liked. we saw the political risk has been overpriced. we think that's true for italy print we've seen spreads on btp's come in for a 200 basis points, roughly around the time of the french election, 150 or so. we think that can go another 20, 30 basis points tighter. european growth is strong. one shouldn't underestimate the positive impact of the french presidential election, and of moves a real sort
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forward, let's try to push forward the integration. mark: we will go to u.s. president donald trump. pres. trump: reform to our immigration system in 1/2 century. i want to thank senators tom cotton and david purdue for their tremendous work in putting together this historic and very vital proposal. as a candidate i campaigned on creating a merit-based immigration system that protects u.s. workers and taxpayers and that is why we are here today, merit-based. act will save taxpayers billions and billions of dollars. it will do this by changing the way the united states issues green cards to nationals from other countries. green cards provide permanent residency, work authorization,
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and fast track to citizenship. for decades the united states was operated and has operated a very low skilled immigration system, issue a record numbers of green cards to low-wage immigrants. this policy placed substantial pressure on american workers, taxpayers, and community resources. among those hit hardest in recent years have been immigrants, and importantly, minority workers competing for jobs against brand new arrivals. it has not been fair to our people, to our citizens, to our workers. the act ends chain migration and replaces our low skilled system with a new points based system cardeceiving a green prejudice this competitive application process will favor applicants who can speak english, financially support themselves and their families, and demonstrate skills that will
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contribute to our economy. the raise act prevents you immigrants from collecting welfare and protects u.s. workers for being displaced. that's a very big thing. they are not going to come in and immediately collect welfare. that doesn't happen under the raise act. crucially, the green card willms in the raise act give american workers a pay raise by reducing unskilled immigration. this legislation will not only restore our competitive edge in the 21st century, but restore the sacred bonds of trust between america and its citizens. this legislation demonstrates our compassion for struggling american families who deserve an immigration system that puts their needs first and that puts america first. finally, the reforms in the raise act will help ensure that newcomers to our wonderful
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country will be assimilated, will succeed, and will achieve the american dream. i would like now to invite senator caught in and senator purdue to say a few words. thank you very much. >> thank you, mr. president. i very excited to be here with senator purdue and president trump. senators tom cotton, the junior senator from arkansas, and david purdue unveiling this legislation. the president saying he was going to change the way the immigration system works and it will eliminate the outdated visa lottery system right he said it serves questionable economic and humanitarian interest. he also says the raise act will give american workers a pay raise because it will mean that unskilled workers don't take their jobs and will reduce unskilled immigration.
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it's a different attack on the immigration front. talking aboutr illegal immigration, were talking about reducing legal immigration, the raise act to being unveiled by the president and senators caught in an purdue. this is bloomberg. ♪
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vonnie: live from london and new york, i'm vonnie quinn. mark: i mark barton. this is the european close on "bloomberg markets." deutsche bank said to be considering a plan that would shift almost 1/2 u.k. workforce to the european consulate. most of the 4000 positions would move to frankfurt and berlin. joining us from frankfurt, a reporter who covers german banks for bloomberg.
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this seems a bit more dramatic than some of the other banks who are moving employees, such as hsbc and jpmorgan. why is that? >> indeed. it seems like it's going to be 1/2 of deutsche bank's workforce, and what still is and will for sometime in the future be the trading. this is a huge change, apparently. the reason behind this is they also have a new strategy in place focusing more on the german home market and the european continent. it seems like they are using brexit changes as a trigger to implement further strategic investment and that's why it's a bigger change than from any other banks. mark: tell us more, remind us trade inlets been going on with which bank. -- duetsche bank. it's moving assets from london to frankfurt. remind us about that process. >> so, it's clear there in the throes of a brexit assessment
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program. john kline said to bloomberg tv last week that he generally does not know what the impact on london will be at brexit, so they are still thinking about it. the best case scenario is 4000 people starting next year and that stretch out over several years. they will be moving those thousands of jobs. --300sets, $300 billion billion worth of assets, it's a big move. vonnie: what's frankfurt like in terms of a city for financial markets? there are a lot of financial workers who already -- would it be a huge shift for frankfurt to welcome that many thousands more? >> i think it would change frankfurt somewhat. jobsuld add thousands of to a substantial financial
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industry. below 100,000 people working in the financial industry. up to 10% increase here. the problem for deutsche bank is many people in london don't want to go to frankfurt trade vonnie: we want to return to president donald trump. pres. trump: i want to thank you all. tom and david are going to be outside, they will speak to your link about what where going to do with respect to this acid of immigration. i think it will be -- asset of immigration. i think it will be a great asset. thank you very much. [inaudible] vonnie: you've been watching president donald trump. he mentioned the stock market, how the dow had reached the 22,000 mark and how it would go higher. essentially that event was unveiling the raise act. this is legislation from republican senators david purdue of georgia and tom cotton, the junior senator from arkansas.
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the president saying you would be the biggest overhaul in 50 years. it's hitting unskilled, legal immigration. essentially reducing the amount and takingmigration away the rights of some immigrants to come into the country if there unskilled. let's head to something else. the goldman sachs ceo and chairman like -- lloyd blankfein addressed at a 10,000 small businesses event. alix steel was there. she asked blankfein about business sentiment and proposed changes to the volcker rule. >> the one thing that people are talking about the administration -- there are some things already getting done that you have to say, which is there's a bit of a change in sentiment and attitude, and i think the way rules are implemented, the
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of the new class of regulators that are coming in. we operate obviously in the are aial services but we big corporate advisor. we get involved in every industry, and every industry is regulated. in this day, a lot more highly regulated than they had been. i would say almost an instantaneous -- in some cases, doesn't need approval. some case it does. certainly doesn't need legislation, is just the way legislation's -- is just the way existing laws are implemented. i think were already witnessing a change in sentiment. >> we heard the office of the good trailer of the currency is starting official process where companies like you can go in comment on what you want to see rolled back. can you help quantify what the volcker rule did, if it was still not in place, what your profits would be, what you would
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want to roll back there? trying -- whenre they were going through financial regulation, you can regulate the amount of capital, processes, leverage -- and you regulate activities. you can do this transaction, you can't do that kind of a transaction. the volcker rule and post a little bit of a state of my test. you can take positions, but they wanted to damp down speculation. the line between speculation, which is a word that seems easily we should back off of, and market making, facilitating other people's trading, taking the other side of what your client wants to do, is also a risk-taking principal activity. the line between the two is very blurry and indistinct. with the volcker rule, it basically says in effect if you're taking position points of
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view in anticipation or in connection with a specific client operation, that should. if you're doing it away from that specific, it's not good. if you are a market maker sitting at a desk, it's very hard to know where that distinction is. what really makes a market is a million people all at the same time buying and selling because someone thinks it's going to go down, someone thinks it's going to go up, and clients joining that walk that's called a market. in practice it's been very cumbersome, very hard to do, makes people who sit on trading desks very nervous. it has put a dampening effect on liquidity in the marketplace, and i think the regulators appreciated. regulators were filling in the but itions of statutes, think now that it's been in
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place for a while and they see how it operates, i think there is a consensus it has to be re-examined. mark: the goldman sachs chief executive lloyd blankfein there. on the topic of regulation in the banks, uncertainty is something standard chartered cited as a recent not to reinstate -- reason not to reinstate dividends today. catch my ex interview on the european close, 11:00 a.m. new york time. this is bloomberg. ♪
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vonnie: it's noon in new york, five clock p.m. in london and midnight in hong kong. welcome to "bloomberg markets."
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i'm vonnie quinn. from bloomberg world headquarters in new york, here's a top stories on the bloomberg and around the world that we are following. today's apple surge recently took the dow past 22,000 for the first time. we take a deeper look at the sector trends fueling that milestone. the goldman sachs ceo has told bloomberg he knows how to fix the company's fixed income business. more on why he's not panicking this hour. plus, president trump commenting this morning hundred reducing unskilled immigrants coming into the u.s. we will have the latest, including insight from senator marco rubio on why he has received for a harder line on m aduro. julie hyman is with us. were halfway into the trading day. will we remember this trading day as a record day? julie:

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