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tv   Bloomberg Markets European Close  Bloomberg  August 14, 2017 11:00am-12:00pm EDT

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"bloomberg markets." ♪ nejra: here of the top stories we are covering from the bloomberg and around the world. the fallout from the virginia white supremacist protest rocks washington and the business world. resigned ken frazier from president trump's manufacturing council over the incident. president trump fired back with a tweet about drug fighters. in markets, one of the top equity sectors for the rest of helenar, we will talk to driver, who says there are opportunities in u.s. banks as well as retail. and why is mario draghi being quiet about the resilient euro? we look into how it currencies strength may impact the future of qe, especially as meetings get started . -- next month.
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let's have a look at where european equities are trading just under 30 minutes to the close. i can tell you the stoxx 600 is rebounding from a five-month low and also rebounding after it had its worst week since november last weekend. we are seeing broad-based gains, the ftse 100 up the most in over a week. the dax up the most in almost four weeks. some people coming out to say perhaps a correction is imminent. this is the europe index and what we can see here is that those are drops of 10% or more from peaks. that hasn't happened in about 13 months for the europe index, they in the question whether we are due a pullback. that 13th month run without a pullback of 10% or more is the longest since this bull market began in 2009. that is and and then we will talk about this hour. and then looking at the stoxx 600 revenue per basic share against the euro. we were just talking about the
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gains in strength of the euro. the euro was weaker because of broad-based dollar gains, but overall, we have seen a rise some 12% this year. the stoxx 600 revenue has been rising along with it. is this going to continue? another question we will answer this hour. we started to see the stoxx 600 become inversely correlated with euro-dollar. looking here at the pound, we are also seeing sterling weakness again on that broad-based dollar strength. interestingly, sterling's range has really been a weekly range we are looking at, really very much contained. in fact, at its lowest since 2014. could economics and politics jewel to the pound out of its numeral range -- narrow range? and looking at volatility again, we were just talking about sterling volatility and we have been talking about how volatility in equities and treasuries have been coming down
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after a spike in the past few days on geopolitical risk. this is one month 50 delta implied volatility on bund future's, and that has been fairly constrained. abigail: we are certainly in rally mode in the u.s., with the dow, s&p 500, and the nasdaq higher. the dow on pace for its best days since june, the s&p 500 on the pace for its best day since may and the nasdaq up 1.2% on pace right now for its best day since april. a lot of strength after last week's selloff an interesting is the fact that then emmons says his work suggests when we have those one-day selloffs on a haven type bid, the five following days are very bullish for stocks. we had that friday and today. let's see if we get the next three days. helping the major averages, financials which is the top sector for s&p 500 with bank of
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america, citigroup, and jpmorgan all trading sharply higher, helping the banks is the fact that we have the 10 year yield of about two basis points represented in red. it tells us that haven bonds are selling off today, aligned with the fact that we have growth year stocks rallying, helping the financials get a bit of a bid today. also helping the bloomberg dollar index. we see some nice gains here of about .2%. however, this is not the story on the year, the dollar index is down pretty sharply on the year. let's hop into the bloomberg and take a look at was probably behind this. 5760, and white the bloomberg dollar index in blue, the net longs to the upside in blue, to the downside the net short. we see that over the last two years as the dollar index is climbing higher, the net longs were very high and then as the bloomberg dollar index has been following this year, we have net longs falling off and we also now have the short position.
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justin to see whether that continues as the year proceeds. vonnie: some people taking money off the table. let's check in on first word news with them at chandra. emma: president trump's response to the violence in charlottesville has prompted the ceo of merck to quit the president's council of manufacturing leaders. ken frazier says americans leaders must reject expressions of hatred, and supremacy. the president saying now he will -- more time to lower time to lower ripoff drug prices. the chairman of the joint chiefs of staff general joseph dunford reassured me that his diplomatic intentions with north korea is the priority. it echoes comments from other u.s. officials trying to tamp down fears of nuclear war. the trump administration will go ahead with plans to investigate china in a growing trade dispute. the u.s. has accused china of violating rules on intellectual property.
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one big complaint that china forces u.s. companies operating to transfer technological know-how. in the u.k., surprising election results took a toll on prices last month and a new survey says the slowdown is likely to last the rest of the year. home prices fell by .2% in june, the average was $388,000. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm at chandra, this is bloomberg. nejra: thanks, emma. turning back to the market, global equities on the rise as the risk off mood set sides -- subsides. earnings seasons is writing fundamentals. for more perspective, we are joined by helen driver, head of global equities at aviva indexes. great to have you. it looks like we are having a little bit of a relief rally as geopolitical risks are
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subsiding. as we look ahead to the rest of this week in the month ahead, and attention turns back to the fundamentals, are we going to continue to see that rally in global equities? ms. driver: i think so. the fundamental have been strong. we are about 90% through the earnings season in europe and the u.s. by large, we've seen companies meet or beat expectations. perhaps this isn't a surprise, given how strong pmi's are in the coordinated global of the we've seen. when surprise price has been some of the companies have been exceeding excitations, i've seen quite sharp selloffs. perhaps there is even an opportunity there, perhaps because of some of these geopolitical uncertainties which have been bubbling up underneath , taking the shine off those fundamentals. nejra: you see that as an opportunity, not as a sign of nervousness in the market. ms. driver: there is a little bit of angst, questions about
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inflation as well, and we've seen that particularly in sectors such as general industrial. some of the big european industrial stocks, they had great numbers that sold off because they weren't -- they were sort of citing an inability to pass through some of the pricing pressures they have seen themselves coming through from commodity prices. there are definitely opportunities there. vonnie: how much of the currency differentials also impacted this quarter? and 9%een a percent weakening of the u.s. dollar, depending on what gauge a look at. and in a strengthening of the euro. ms. driver: you are quite right. we have seen that impacting. and the euro has been strengthening from springtime beginning of the year. we've seen it a little bit in numbers, but i think in terms of european earnings going forward, we have to keep a watch on that, because it could well hold things back a little bit more.
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what we have seen as a gone through the earnings season is haven't seen analysts pulling back there consensus forecast, for 2017. in terms of for your numbers, for your expectations for both , and euros, wees are still exciting double-digit growth this year. that euro strength isn't yet beginning to bite, despite the fact that has wait a little bit more on stocks that it has on the s&p. vonnie: what have ceos been saying and guidance on inflation and whether we will see wage increases take out, either here or outside of the atlantic? ms. driver: when we are speaking the ceos, sometimes there are pressures in certain areas. i would give you an example of u.s. restaurant stocks from the likes of mcdonald's, starbucks, those of the kinds of areas where we have started to see a little bit of wage inflation creeping back into the system. but elsewhere, it does seem to be relatively benign. someer that's because
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corporate are investing in productivity measures try and keep the cap on that -- you knows. the more consumer service types of areas where we are seeing a little bit of pickup in inflation. nejra: i like looking at the bottom markets versus equities and seeing what happens with correlations. this chart shows you that u.s. government debt yields have been declining versus stock dividends, you could interpret this as saying treasuries are getting expensive. does this add to the appeal for equities? you are talking to an income fund manager, sewed what we are really interested in of thesestainability proper earnings growing, gives you a little bit of headroom in terms of pay out. it's looking at corporate stability, not just a pay the
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dividends today but to continue to grow that going forward. there is some great value. people to talking about consumer staples, giving consumer staples stocks that look overpriced. these are companies that are able to pay 2.5%, 3% yields and grow those yields year on year. arguably, they are very attractive when compared to treasuries. nejra: we've been talking a lot ,bout the corporate debt binge and a lot of people wondering whether the turning point for the market is going to be when treasury yields move higher because of the fed, or whatever else. if that happens here and we actually do see those yields, on bonds, what is the level where that starts making equities less attractive for you? ,s. driver: i think overall there are certain sectors would suffer more, some of the more bond proxy sectors. i wouldn't necessarily rule out equities overall.
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there are certain sectors, things like u.s. banks would actually fair very strongly, and we've seen that today and some of your charts you showed already, in terms of how rising yields correctly very supportive of certain parts of the market, the u.s. bankers being one of them. vonnie: we will talk more about u.s. banks coming up. nejra: with helen driver, she stays with us. we are back with more of the sector text. this is bloomberg. ♪
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vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. nejra: live from london, i'm nejra cehic, counting down to the european close. leaguemarkets, a bigger for retail, u.s. retail sales
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due out before the bell tomorrow and a series of high-profile companies will report earnings throughout the week. including home depot, walmart, and target. back with us to discuss the state of retail as well as a few other sectors she's focusing on his helen driver, head of global equities at aviva investors. talking about retail, we were talking about this in the context of corporate debt last week in the first we were speaking to said one sector particularly in the u.s. they would really stay away from this retail. in equities, you think that's not the case. ms. driver: there's no doubt there is certain areas of retail which are under pressure in a think he saw that last week with both macy's and kohl's reporting , and it was the 10th in the sixth consecutive quarter of negative sales for those two companies. there is pressure out there. however, i would say that retail is a real winners and losers sector. closingspend going on
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is going somewhere. it may not be going to macy's, it may be going online or to different retailers. one example i would give is on the global investor. i have the benefit of looking outside of the u.s., in terms of retail. we know in u.s. retail, there's a huge amount of property and a lot of space, where is you look to europe and the u.k., the per square footage per capita to brick-and-mortar retail space is much lower. i think it is six times lower and more space. than wek more to value saw next in the u.k. report in the last couple of weeks. and ok, the numbers weren't great, but they showed a positive return to growth and the full price sales line. and you saw shares respond very strongly to that, up 10%. it's really a stop take the sector. there is a value in retail and the artist picking between
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winners and losers. vonnie: your reaction out a target buying grand junction, particularly after the stocks dropped off following earnings. does it make target a more attractive prospect? ms. driver: it's not actually a transaction i've looked at in-depth. i can only assume that target saw some value within doing that transaction. the retail space is a very, very broad space and we are looking more at those companies which have flexibility in their restate -- real estate, have been more successful in moving online. perhaps not target, in this instance. but we are certainly doing our work and dusting off our spreadsheets. vonnie: are you saying to a certain extent you are really looking at companies that can ton off the real estate part sort of fund operations?
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or is it a different thesis you are outlining? ms. driver: it's not necessarily spinning off real estate, it's those companies which have greater flexibility in their real estate. they are not saddled with lots and lots of freehold in locations which nobody no longer wants to go to and shop. a company like next in the u.k. is a very good example, where i the average leaseholders about seven years. and there's attention with the landlords. they can go back and negotiate lower rent if need be. it's not about spinning off real estate as such, it's looking for those which have greater flexibility and leverage. nejra: we also want to talk about u.s. banks, which is another sector that you are positive on. is that broadly, or is this certain banks? ms. driver: it's more broadly. we saw the back end of last year the trump train, with all the pickup and yields and obviously
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being quite supportive of the u.s. banks since then. we haven't really seen a great deal, but overall u.s. banks have pretty much traded sideways. this is despite a pretty robust earnings season again. the banks have been continuing to build capital, there's good access to funding. iswth isn't stellar, but it slightly pedestrian but solid. we haven't seen this huge pickup in loan losses as some expected. more and fortunately, we've seen banks move through the federal reserve see, process successfully unscathed, and that paves the way for greater returns to shareholders. we will wait to see what happens on tax reform, we will wait to see what happens from regulatory standpoint. when we speak to the banks, ceos
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are basically saying that the pendulum has stopped swinging on regulation. so the cost they've had to bear are finally starting to wane. nejra: helen driver, head of global equities at aviva investors. thank you so much. on the bloomberg in case you are following president trump and his tax cuts, a story saying that trump will get his tax cuts , according to the vast majority of economists in bloomberg's monthly poll of economists. vonnie: still ahead, the campaign to unseat german chancellor angela merkel underway. but a number of her own party tells bloomberg why the quiet leader deserves a fourth term. this is bloomberg. ♪
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vonnie: live from bloomberg world of quarters in new york, i'm vonnie quinn. nejra: live from london, i'm nejra cehic with the european close just minutes away, six
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weeks to go before federal elections that will determine if german chancellor angela merkel will win a fourth term. earlier today, guy johnson and matt miller spoke to a member of askedrty, elmar brok, and why she will win. situationthe german is very good. we have the highest numbers of employed people in the history of our country. a relatively quiet situation our country, the refugee question is under control, and therefore, i think people think that in this time of disarray in the world, the quiet leader like angela merkel would be the right person to lead our country for the next four years. >> is there stability the ,roducts of the grand coalition and therefore, we germans be happy to see another grand coalition taking place? or does that stability let them
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bring liberals back? or would generate another sort of outcome when it comes to the coalition the could be formed subsequent to this election? mr. brok: i think the stability is very much combined with angela merkel. of germans don't want to have the grand coalition again, it's not good for democracy. democratsrefer together with the greens or the liberals were both together, that would be better for a democracy than to hope that the figures will show that we do not know the figures that it might be a very small margin at the moment. and nobody can estimate will be the results. think it's very interesting to talk about the so-called jamaica coalition. cdu working with the ftp and the greens. is reason being the cdu traditionally black, ftp is yellow and green, you can take your best bet. can they work together with the
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greens? hellally, they said when freezes over those two parties will work together. can it happen now? mr. brok: we have very well operating black and green coalitions. it's also possible. the main difficulty will be not between the democrats and the greens in the liberals, it will be between the liberals and the greens. for's the biggest problem such a jamaica coalition. >> why would anybody going to coalition with angela merkel? it hasn't exactly been a great outcome for those who have. , it might be the was aion that mrs. merkel personality not so successful. on the other side, nobody
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working in the coalition says she is unfair to her partners. she's always fair, sometimes in her own party people will say she should be stronger against the coalition partners. she does not do that. personal relationship is quite isl, and therefore, i think this not a reason not to coalition with ms. merkel? perhaps it would be a possibility, but at the moment, there's a chance to have a red green coalition. the social democrats will call for that publicly, they will lose even more. and therefore, it's situation that mrs. merkel is it very good strategic situation.
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nejra: live from london and new york, this is the european close. i'm nejra cehic with vonnie quinn. equities finishing of the day in european trading, let's take you
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to raleigh market action today. starting with equities you can see green across the screen on the left. seeing a bit of a broad-based rally with european equities gaining both in the core and the periphery. 61.5% and the german dax up 1.4%, the more still in more than four weeks. the u.k. rising the most in more than a week. part of that downs to her relief rally, so that could be down to the fx space as well. as we take a look, we are seeing weaker euro and sterling on broad-based dollar gains, the euro off by .4%, sterling at 129.80 down .3%. seeing a bit of a divergence between the core and the periphery, seeing yields rising in germany and france and the u.k.. spain two-year yields hitting a bit of a low. taking a look at a deeper dive into the stoxx 600 as equity markets close up for trading.
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this is rebounding from a five-month low and also rebounding after the worst week for the stoxx 600 since november. on thatat the close equity benchmark. every industry group higher. you have utilities in real estate outperforming and underperforming though still in the brain is energy and consumer staples. taking a look here at an indicator on european equities looking at the euro stoxx 50 put call ratio. earlier this hour, i was showing some signals that perhaps it was time for a correction in and you got some calling for that, analysts at hsbc and also some other analysts, jpmorgan i believe saying the risk reward is really worth it on european equities. here we've got to put call ratio perhaps showing that is becoming to bearish. when we've seen this in the past, we may have seen the
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bearish signals being overextended. this last happen to towards the end of 2016 and also way back in 2013. that is something to keep an eye on. this is looking at the bond markets, we are seeing a bit of a divergence between the core and the periphery. this is the average euro area yield, i took this often line. the bottom of the upper channel. we can see a little bit of relief evidence in markets today, we might have domestic issues, but at least the threat of nuclear war is maybe a little less eminent this morning. you can see a weaker yen, 10954. that much weaker is still a move to watch. gold futures backing off the $1300 mark a little bit. we will keep an eye out to see if it hits that. if it doesn't will be a third time it's testing that level. the 10 year yield down, 2.21%.
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let's move to gmm, where we see global estimates are valuing today. you mentioned europe, in mexico even as nafta trade talks start later in the week, the korean is stronger today and we are seeing a bit of weakness they are in general. in general. the bloomberg dollar index is rebounding as well. you can see commodities suffering a little bit today. about you were talking broad-based dollar strength. the euro is weaker today, but it's been on fire this year, gaining about 13% against the dollar and ecb president mario draghi has so far resisted complaining about the strengthening euro, at least, in public. he suggested he might tolerate the euro gained as proof that it's effort to revive europe's economy are working. joining us now is paul dobson,
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who heads are market live team in europe, you can follow all .is commentary on mliv we've not heard from mario draghi talking down the euro as it were yet. why? of depends on why the euro was going up in the first place. we've heard mario draghi push back against the stronger currency, that was a time when you really needed the inflationary impulse and the reasons the euro a stronger or more to do with what was going on in other countries. the euro area's recovery has been helping the euro appreciate and there's been a number of stars aligning that have been offering support to the euro. it's not just a brighter outlook for the economy and that stocks are gaining and they are seeing inflows. they are seeing signs that other things are going on. people are starting to price in higher rates further out along the curve, which i don't think draghi would be to the verse two. to.oo averse
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there's been a pretty long period of cutting back the euro in the portfolio. these are good things for the economy and good signs of confidence in the euro area. they are not reasons the central bank would want to necessarily push back against currency appreciation. nejra: when we talk about that appreciation, we have to talk about different crosses. when you look at euro-dollar, how much of that is dependent on what the dollar is doing? we seeing increased calls for euro pound parody. what are the crosses we should be looking up most of the really want support the argument that the euros run is about fundamentals? paul: euro frank is the one to watch. up for so long, the swiss franc has been massively overvalued against the euro because people don't trust the euro weathers been a reluctance to see signs of appreciation there recently. really recently, the euro has taken off against the swiss
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franc. it's been like a trap door opened and everybody fell through. a lot stronger. and that ironically maybe the one thing that gets mario draghi more cause for concern. suddenly, there's a big step up in the pace of appreciation, that's the kind of thing that policymakers don't like because they find it more unsettling. vonnie: what could japan's markets tell us about the state of global markets these days? we saw the great gdp figure today for the quarter. at the same time, we can't look to japan's markets to tell us anything about the japanese economy fundamentally. paul: it's interesting what's going on in japan. it's indisputable the global economy is looking stronger and trade is taking up. there are plenty of reasons very optimistic about growth not just for the first half, the going into the second half as well. but the yen is also reflecting anxiety that's out there and is also reflecting the weakness of
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the u.s. dollar. is not a clean way to read with going on in the markets. nevertheless, the does seem to be appetite for japanese investors for securities, that an indication that at least that part of the world is looking to be stable. looking to be stable. and bring it back to an era was talking about before. the euro has been steadily .ising against the yen there was a little bit of it doubt in april in the run-up to the french elections over how that was going to perform. and a lot of japanese pullback from europe at that time. once they got confirmation the french election went the way they were hoping for and actually, the euro region can start to build more structural strength and integrity as well, it really helps propel the euroyen. nejra: i don't have a hash tagged, you have to go to mliv to find it. but showing the two-year yield,
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spain's two-year yield falling to a record in the session. we are seeing a divergence with yields higher in the call today and moves down the periphery. what's going on? paul: in some ways, a yield gravis ironic thing to talk about, but all the same, reticence for the german yields are slightly more attractive and if you put in the perspective of overseas investors, who can look tocurrency basis swaps enhance the return, or if you're just taking about one against in other, if your view is terms of relative safety there's not much difference, you might as well go for the spanish fund theree ecb is still out buying plenty of european government bonds across the curve which helped underpin the bid. nejra: paul dobson of bloomberg markets live blog. onnie: let's check in now the first word news, and at chandra is here. bringsresident trump
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active vacation to fly back to washington. you will discuss the violence in charlottesville with attorney general jeff sessions and fbi director chris for rate. the president has been criticized for his response, sessions suggests he may say more about the matter later today. more on this story in just a few moments. economists surveyed by bloomberg think president trump will get his tax cuts, they just don't think the reductions will be much for the economy next year. surveyed 38 economists expect congress to pass the tax bill my next years election. meanwhile, they say the cuts will add only .2% to next year's gdp rates. in germany, chesler angela merkel's rivals are stepping up their attacks. six weeks before they decide whether to give for a fourth term. social democratic party leaders accuse her of failing to address the scandal rocking the auto industry and the accuse her of kowtowing to president trump. a week from today, the symbol of london will be decided for four
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more years. that's how long it will take to renovate big ben, the 14 power -- 14 ton bell. it chimes every 15 minutes and has run out largely uninterrupted or 157 years. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. fraziercoming up, ken leaves president trump's manufacturing council after the president failed to personally condemn the charlottesville white supremacist rally. wilmore ceos follow suit? micron technology is the stock of the hour. find out what's driving this chipmakers 4% increase, next. this is bloomberg. ♪
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nejra: live from london and new york, i'm nejra cehic. vonnie: and i'm vonnie quinn. this is the european close on "bloomberg markets." shares of micron technology are climbing to the upper 4% now, over optimism over memory chips pricing. julie hyman is here with more. what's driving the price game? julie: there's an increasing in demand that's been going on for a little while. there's been some questions about how sustained it could be. bloomberg intelligence point out there is demand because of demand for graphics chips and server chips that's happening because of more migration to the cloud as well. that's powering some of the demand for these chips. there's this question about whether it will last. morgan stanley sounded a note saying this tightness and memory supply is going to continue the
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first half of next year and if we take a look at the bloomberg, we have the benchmark pricing for dram and an amd, the two main types of memory chips. you can see the increase that we have seen after they bottomed out in mid-2016 and have sort of stabilized. the morgan stanley analyst joseph moore says in particular, macron is attractive that it doesn't traded a very high te multiple. there are also questions about the margins at macron. we have a chart of that as well on the bloomberg coming to us from bloomberg intelligence. this is the operating margin by unit, by segment of the company. is computing and networking, the orange line is mobile and the blue line's storage. again, there have been questions about sustainability of this expansion that we have clearly seen in all of the segments operating margins. joseph more of morgan stanley says it's going to last longer
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than the markets, it's not going to last forever, but it is going to last for long enough to make it worth buying the stock. vonnie: clearly a halo effect, there's a rebound in many chipmakers today. julie: definitely, we are seeing many of them rise today, advanced micro devices is higher, nvidia, some of the top performers we are watching within semiconductors today. to benductors also tend very much reacting to what we see broadly in the markets. last week as we are seeing a pullback and a lot of risk aversion, they took a hit and now that we are seeing the market back risk on, semiconductors are among those that are benefiting. the philadelphia semiconductor index has been a big outperform of the share of around 20% year theate, both because of risk on nature that we have seen in the markets and also some fundamental demand that we are seeing within the semiconductor industry. vonnie: fascinating. thank you for that deep dive. julie hyman.
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the latest from washington and the fallout from the violence in virginia involving white supremacist groups that president trump has been criticized for not explicitly and personally condemning. has prompted ken frazier to resign from the president manufacturing council. fraser said this morning quote america's leaders must honor our fundamental values by clearly rejecting expressions of hatred, bigotry, and groups of privacy. shanker in in marty washington. there are still 18 or so members of this manufacturing council, and clearly, ken frazier was one of maybe three ceos of color on that counsel. that's not lost on the president here. whatesn't seem to matter business leaders come out and say something, there aren't other business leaders following suit. no.y: there have been a few that stated they are not happy with
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some of president trump's policies on climate change, immigration, but there's a split in the corporate ranks on whether or not it makes sense to withdraw completely from the conversation or to try and stay in change the dialogue. obviously, ceo fraser decided he couldn't stay. vonnie: when will we get the first polls on all of this and president trump's approval rating, particularly from his base? lawmakers are at home were on vacation during this time, so we have had some response, but you can call that limited. marty: it's been somewhat muted, although there have been people at lindsey graham who needed a points to speak on behalf of the republican party. there has been distancing between congress and frankly, , because ofo trump some of the controversial stances he has taken. this predates his lack of
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response to the charlottesville violence. has made ay calculation to double down with his base and not really care about these traditional support groups for his presidency. marty, to your point, the question that everyone is asking themselves is why the president hasn't responded in the way that people want and expect him to? there's a great piece by timothy o'brien of bloomberg view and bloomberg gadfly saying it's all about politics, this is about president trump's long history of race baiting. should we not be surprised? should we not expect the response we're looking for? marty: i won't speak to specifically what tim has written, but it is clear that his response or lack of response to what happened came from inside donald trump.
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it was not necessarily calculated to give him support, but it is an emotional response and something we see from him quite often. frankly, i think the chance for him to respond in a traditional way is lost. if you are come out today and ,ake some specific condemnation it might ring hollow because the question is does he really believe it? anybody who says something they truly don't own comes across as disingenuous. it's not clear to me that he could ever recapture the high ground on this issue. nejra: spinning this forward, what sort of impact might have on the view of him as president? even further than that, anything that he wants to implement going forward? could there be any impact at all? marty: he has had limited success in congress. he's attacked mitch mcconnell
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for lack of getting anything in his agenda accomplished. frankly, that was a group effort to fail to pass obama repeal, tax reform is floundering. passstill have a budget to and a debt limit in september. it's daunting. and to the extent that he alienates people in congress, it's going to make it even more difficult to pass the things he wants past. vonnie: was the tone of the beginning of september, particularly following this awful, awful weekend? marty: there is reporting inside the beltway that says there are people in the white house who were dreading becoming of september -- the coming of september because all the work .hey have to get done the pressure that all trump has placed hong kong is in the gop leadership and the daunting nature of their agenda.
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that budget and debt ceiling agreements are not going to be easy to come by, and they could basically to send into somewhat of a chaotic situation in september. everybody is bracing for a lot and a a lot of to and fro among all the powerbrokers here in d.c. vonnie: marty shanker, senior executive editor for global economics and governments. thank you. nejra: coming up, it's battle of the charts. ireland's economic recovery faces off against donald trump. this is bloomberg. ♪
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vonnie: it's time now for the global battle of the charts, where we take a look at some of the most compelling charts of the day and what they mean for investors. you can access the charts on the bloomberg by running the
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function featured at the bottom of your screen. kicking things off in new york is abigail doolittle. abigail: this comes from the technical research firm, a terrific chart, a four-year chart of the dow transport, and lots going on. we see that over the last four years, the dow transport has been stuck in this range. back in 2014, we have the dow transport in a high well before ,he nasdaq s&p 500 and the dow a tell on the bit of macro risk off that we did see at the beginning of 2015. now we have the dow transports not putting in a new all-time sustained high, back in the mini range. it looks like it could put in a measured move back down to the 2009 uptrend and louise says this potentially bearish outlook could change, but the potentially bearish outlook is supported by the weekly number moving down just as it had in
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the past prior to another big decline. you can find this chart on the bloomberg at g #btv 368. vonnie: that is one floyd mayweather chart. i think this one especially for you, vonnie. this is talking about islands. in talking about the diversions we have been seeing in bond inlds in europe earlier and the u.k., france, germany we are seeing yields move higher where the periphery, italy, spain, portugal they are moving lower. in ireland, the 10 year yield is higher today. this chart is interesting, because it shows longer-term it's taken back to 2008, how ireland's 10 year bond yield and the spread to the bund yield, you can see how that really widened out in 2010, 11, 12. it's come so far down now that the irish german spread is really close to the french german spread.
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it's carbonated ireland's economic recovery and the fact that unemployment is at its lowest since the financial crisis. i thought it was an interesting spread comparison. #btvan see my chart at g 9375. vonnie: the old homeland. thank you for that. i was a little homeland is down to a, however, i have to award the battle of the chart crown to abigail for that wonderful louise yamada chart. thank you again. coming up on "bloomberg baucus and we talk about president trump's latest rate actions with china, at 1:30 p.m. eastern. we continue now. this is bloomberg. ♪ ♪
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change the way you wifi. xfinity. the future of awesome. --nie: it's new new york noon in new york, i'm vonnie quinn. welcome to "bloomberg markets."
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from bloomberg world headquarters in new york, near the top stories on the bloomberg and around the world that we are following this hour. fallout over president trump's failure to strongly personally denounce the rights of premises rally -- the white supremacist rally in virginia. ceo lloydchs blankfein also speak now on twitter. the president is expected to announce new investigation into china's trade practices this afternoon. will the chinese retaliate, and what might it mean for the ongoing north korea nuclear threat? an angry birds maker rubio is preparing to go public, but will it later goldman for investors? -- a golden egg for investors? abigail doolittle is here to save

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