tv Bloomberg Markets Americas Bloomberg October 10, 2017 10:00am-11:00am EDT
vonnie: here are the top stories we are covering from the bloomberg and around the world. is tax reform in danger of dying? we will tell you why some of president trump's closest allies are getting more and more worried about the president's ability to deliver. then in spain, a spokesman says it may be an historic day for catalonia, but spanish forces are said to be ready to arrest of the catalan president if he does declare independence. we are live in the streets of barcelona. and the imf has released its global growth outlook. we will speak to its chief economist maurice obstfeld. they are warning policymakers not to get too comfortable. nobelat, plus this year's prize winner for economics,
coming up in a few minutes. first, we have julie hyman 30 minutes into the trading day. stocks climbing after smaller clients yesterday, with all three major averages reaching intraday milestones, in part because of consumer stocks and the news we got from individual consumer companies, and also, we have continued to see a rally week after week after week. we take a look at the bloomberg terminal, you look at the effect that dividends has had on the ongoing rally that we have seen for the s&p 500. you are looking at the s&p 500 in blue here. is climbing and white. if you look at the total return index, including reinvested dividends can you see how much that magnifies the gains, particularly in recent years, and as companies continue to raise their dividends. not only has the absolute price return worked out well for investors, but also, of course, the dividends have had a big effect.
getting to the consumer names from one of the biggest of the big reporting news today, that is walmart. the company said that e-commerce sales in the u.s. will surge 40% in the next fiscal year. making new online investments or expanded online investments. it plans to add 100 online locations, double what it currently has. we will dig more into making nee investments or expanded online investments. walmart coming up in about 40 minutes. it is pulling on target as well, 2%. we are looking to the airlines. american and united continental are coming out with improved outlook for revenue for each passenger flown a mile. for american, it was half a percent to 1.5% in the third quarter. that is allstate come apart in us. and united says a decline in unit revenue will not be as bad as its previous production that projection. --projection.
airlines broadly are rising today. mark: lower margin lead down for the second date before the pivotal meeting of catalonia's regional parliament in the next hour. vs. germanyspain 10-year yield marginally higher today. points, the1 basis most since february. due toalan president is address lawmakers in barcelona at 6:00 p.m. local time. the outcome of that referendum was ruled illegal by the spanish court. spanish police are ready to arrest him immediately if he declares independence in the regional parliament. that is according to 2 people familiar with the government. euro-dollar one year chart. we are up marginally today.
it was the longest losing stretch since april. keep an eye on the euro in the the of the move by catalonia president later. " record 2.38, just a couple of euros shy of that. third-quarter earnings, sales growth up by 12% and boosting confidence. lvmh has been boosted by rebounding demand for luxury items, particularly in asia, as well as its efforts to appeal to younger consumers and to sell more products online. shares up by 2%. assessingvestors are the latest political development in washington, d.c. not allies of president donald trump fear that his feud with senator bob corker risks unraveling the tax overhaul efforts. corker, powerful member of the budget committee, a deficit hawk as welcome is seen as a crucial
vote on tax legislation. us from ouri joins bureau in d.c.. can they get it done without workers, kevin? withoutwithout corker -- corker, kevin? this political feud has been ongoing, and president trump earlier this morning even adding more oxygen to the feud. let's pull up a tweet he tweeted just before 9:00 a.m. " the failing new york times set liddle bob corker up. he was made to sound a fool, and that is what i'm dealing with." the audio recording of the interview with senator bob corker, who is not running for reelection -- i'm hearing behind the scenes that this was not just about personality differences, but senator corker temperatures the foreign relations committee, disappointed in foreign policy decisions by the administration.
vonnie: the president played golf with lindsey graham yesterday and is siding with potential senators who could do him some good. can he may be write corker out of the equation? are carefully watching where all of this goes with regards to tax reform, the health-care debate in which officials have told me for months they are trying to correct course on the strategy shift that they have tried to do, but the health care debate still somewhat good indicator, because people like senator rand paul, senator bob corker, senator john mccain, lisa murkowski, susan collins, they can only afford to really lose 2 people, 2 republicans in the senate. that is for all of this gets interesting. the clock is ticking. they have got to raise the debt limit bypeople, 2 december, pasr government funding bill by december. in order to get all this done in 2018, the only
thing people will be talking about art midterm elections. vonnie: -- mark: that the tax bill does not get through, kevin, does that solidify a legacy of failure for trump? is this the one that matters when it comes to his legacy? kevin: in addition to president trump's legacy, i would argue it is going to be a good indicator will fare inicans the 2018 midterm elections. that will be the political barometer we would be able to measure. again, the president has will fn tried at various times throughout his first year in office to differentiate himself from his own party, and continues to maintain the image of being a political outsider. but there is a lot of pressure on republicans to get something done. the republican leadership wants to get something done. privately, behind the scenes, a lot of the folks i'm talking a big,r less bullish on
and dishes tax plan by the end of the year, -- big, and dishes year,an by the end of the just having tax cuts, not the bold and ambitious agenda that republicans had campaigned on, and could lead to a year, just contentious 2018 midterm election not just against democrats, but potentially even primary , of course, by stephen bannon, who is actively plotting his way to make an impact on the maternal elections outside the white house. mark: kevin cirilli, chief washington correspondent for bloomberg news. let's get to spain. catalonia faces a big moment of truth in just a couple of hours. catalan president carles puigdemont is due to address lawmakers in barcelona. it is a move that risks a severe backlash from madrid. national police forces are set to arrest him if he declares independence. bloomberg's maria taddeo is in
barcelona with the latest. the president's choice of words are going to be parsed very carefully, aren't they? mariathe: exactly. but, mark, i want to show you the real expectation here as we wait for carles puigdemont. a real show of force by the catalan police. we have had a helicopter hovering around for about an hour now. obviously, it all depends on this unilateral declaration of independence. it doesn't have to be a written document, just him saying it would be enough for the central government to trigger article 155 of the constitution. again, we don't know what he is going to say, because he has cap to this very day. that he is coming under a lot of pressure from his own coalition. the more moderate side says let's drop the unilateral and 48 hours and give time to actually engage, and the more radical
site is saying now is the time to do it. this is the day we are expecting -- they are expecting so we -- they are expecting so we cannot under-deliver today. mark: might puigdemont be arrested today? maria: he could potentially be arrested. if this gets to a point where he does declare unilateral declaration of independence, catalonia being an independent state within 48 hours, there is a special unit of the spanish police force that would be prepared to intervene if necessary. that also means arresting him. what we have seen over the past hour is a real show of force by the catalan police forces. 9 units usually used when there is a right station here. what are they doing here? again, unknown.
the helicopter has been hovering for an hour. they say that they have special units prepared to arrest him. vonnie: what you regular spaniards make of the fact that one third or so of the preparation of this area, catalonia wants to secede? is this a mini civil war are just some nationalists versus some catalonians? maria: that is a good point, and the best way to measure this is to go back to sunday. somewe had a major anti-indepene demonstration in barcelona. it is not just in the spain. in catalonia, it is not crystal clear that there is support for puigdemont. this is a man who was never been elected to office, and it is not clear people support him 100% in his plan. that is not what opinion polls show. state, butns want a it is not clear if they all support what he is doing, let alone spain. it is clear that people believe
that the sovereignty of the nation belongs to all spaniards -- either all spaniards vote or no one gets to vote. for bothl declaration sides is completely unacceptable. reportingria tadeo all day from barcelona. let's get to "first word" news with emma chandra. emma: deadly fires are ravaging california wine country. 1500 buildings have been destroyed or damaged. 20,000 people have been forced to flee their homes. one makers in -- winemakers in trulyd sonomaa say it is -- too early to estimate damage. a student at texas tech has been accused of fatally shooting a campus police officer. the student was taken there after evidence of drugs were found in his residence. police say the suspect escaped after the shooting but was later caught. most of puerto rico is still in the dark almost three weeks
after the island was hit by a hurricane. the department of energy says that 85% of customers in the u.s. commonwealth don't have electricity. puerto rico has said that it could take months to restore everyone's power. global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. i am emma chandra. this is bloomberg. later, more of the imf view on the global economy. we are live in washington with imf chief economist maurice obstfeld, 10:30 new york time, 3:30 p.m. in london. and a special conversation --richard thaler just won the nobel prize for economics. this is bloomberg. ♪
mark: live from london, i am a mark barton. vonnie: and i am vonnie quinn. this is "bloomberg markets." the dollar is falling over concerns on tax reform. horwitz,s this todd trading.com.ist at we are in a bit of a range, although we have seen plenty of consolidation. todd: i think the dollar bottomed when it hit around 91, on when popped up to 94 friday, and we are seeing a bit of a pullback. we will see more interference from other currencies and the dollar will break out and go higher. totarget would be going back the buck, as they say. vonnie: you say the buck, you
mean the euro? to todd: no, i think the dollar will go back to one. we came down from 104. vonnie: that would be a substantial move. what are we seeing with oil? we are seeing a bounce, but it doesn't have much to do with the dollar. todd: no, none of the commodities have been affected by the dollar. they haven't really rallied. oil is rallying because there may be a bit of a short squeeze going on, and you had saudi arabia trying to convince u.s. shale producers to jump in with them and clued on price. i don't think that is going to happen, but that is one thing you are seeing, which is creating this rally. they can keep the supply down. vonnie: todd horwitz, we have to leave it there. chief strategist at bubba trading.com. still ahead, we will speak to richard thaler.
mark: this is "bloomberg markets ." i am mark barton in london. vonnie: in new york, i am vonnie quinn. this year's nobel prize for economics goes to richard thaler , the university of chicago booth school of business professor, for shutting light on how human weaknesses and biases can impact behavior and ultimately markets. co-authored the bestseller "nudge" with caps on sunstein ass bloomberg view. he joins us on the phone. congratulations, professor thaler. richard: thank you very much. vonnie: what is the most interesting phenomenon of daily life that you would apply
behavioral economics philosophy to? richard: i think the miniscule volatility of the stock market -- not that i have been a clinician it, but it is certainly puzzling, and puzzles -- not that i had planned nation for it, but it is certainly puzzling, and puzzles attract my attention. vonnie: the stock market is going higher. do you have a behavioral explanation for this or anything that would help the federal reserve in its decision-making? know, i guess you i would use sherlock holmes' strategy of listening to dogs not barking. we seem to be living in the ,iskiest moment in our lives and yet the stock market seems napping but being pushed
up by some snail. i admit to not understanding itd but it is something come if i was a young behavioral economist, i would put my attention to. mark: white is low volatility puzzling -- why is low volatility puzzling? because, i don't know but i'm nervous, and it seems like when investors are nervous, they are prone to being spooked, and nothing seems to speed the market. as you said, it just crawls up slowly but surely. if it is all based on the expectation of some big tax cut, surely investors should have lost confidence that that was going to happen, given what has happened so far out of congress. mark: you have shown how human weaknesses such as a lack of
rationality and self-control can ultimately affect markets. is that what is happening here, or is there another explanation? richard: you know, i'm speaking off the top of my head, but psychologists have long talked about animals either freezing or running it seems like investors in freeze mode. vonnie: investors are in freeze mode, but in usual attention to .he in 20% plan in recent tweets i wonder if you think that tax reform is going to happen, and if it does, that would be an answer to your nervousness, if you like because we would continue to see financial assets appreciate. richard: well, but i don't know where anyone would get confidence that tax reform is because, as we, know, the republican leadership does not seem to be remotely
interested in anything , and they need unanimity within their caucus, which they don't have. and the president's strategy of systematically insulting the votes he needs doesn't seem to be optimizing anything that i can think of. but maybe he is a deeper thinker than me. vonnie: professor, do you see behavioral economics being able to provide an explanation for how voters are voting now or how polls are telling the story of pre-voting? richard: well, i think what we are seeing -- my friend wrote a danny kahnemannd wrote a book called "thinking fast and slow," where we seen a
fast system one and slow system to, and we've seen a lot of system one voting, starting with brexit. i don't think the leave votes were based on any implicit spreadsheet runningto, and we'vf system one voting, starting in's heads. it is just "i am angry and voting no." mark: professor, you mentioned brexit, and i'm standing here in london. can you give us a view on how you think this whole brexit process is going to pan out? mean, itno, but i doesn't seem to be headed in any productive direction. an op-ed i wrote shortly after the vote saying that prime minister may had written one of the most cogent analyses before the vote saying
that we have no idea what we are voting on and what the costs are, and she seemed to have completely forgotten that once she became prime minister. . don't see where this is going the idea that you would throw the economy into turmoil on the basis of 52-48 nonbinding resolution seems crazy to me. , weie: professor thaler have to leave it there. we didn't even get to ask if selena gomez called to congratulate you. this is bloomberg. ♪ is this a phone?
see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. live from bloomberg world headquarters in new york and london, i am vonnie quinn. mark: i am mark barton. this is "bloomberg markets" on
bloomberg television. let's check in on "first word" news. emma chandra has more from new york. emma: president trump tweeted that since congress did not pass repeal and replace of obamacare, he would be using the power of the pen to give health care to people, fast. republican senator rand paul says he has been working on it and it will be a big over millions of americans. so far, no details. pa northern california's na and sonoma one country, wildfires have killed many people. 20,000 people have been forced to evacuate. many winemakers say it is too early to cap liquor losses. the head of the environmental protection -- to calculate their losses. the head of the environmental protection agency says it is time to end subsidies for the wind power industry. says it is time for
them to stand on their own. in spain, the government is ready to crack down if catalonia the close independence. spanish police are ready to arrest regional president carles puigdemont says it is time for them to stand on their own. , according to people familiar with the matter. if puigdemont makes a statement that falls short of immediate independence, the government in madrid may stay its hands. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am emma chandra. this is bloomberg. vonnie: thank you. the international monetary fund earlier released its annual world economic outlook. it is boosting its global forecast for the year on an improved u.s. and china outlook. despite the stronger baseline outlook, inflation and global financial conditions remain concerns. maurice also -- maurice obstfeld isconcerns.
director of research at the imf and joins us from washington. is this good growth in the sense of more jobs and better wages, or is this debt-driven growth? maurice: well, growth is good. i think the answer depends on what country you look at. we view this is generally a solid, broad-based recovery. the behavior of wages has been a little bit of a puzzle. as output gaps close, they have not reacted as strongly as we would think. but we do see some progress in a number of countries. vonnie: you warn that posed to theisks downside any list several major risks that various people are drawing attention to come including dangers from tightening financial conditions, financial turmoil in emerging markets, protectionist policies. i mean, what kind of odds do you give to any of those scenarios playing out an absolutely playing havoc with your
forecast? maurice: well, by calling them downside risks, we are saying they are not the most likely outcomes but they are not the baseline outcomes. these are possibilities. it is hard to quantify exactly what the risks are of these things. we hope very much they don't happen. but they are there. againthe debt dynamics -- , the debt dynamics you refer to our another risk with low interest rates, and when interest rates rise, these might be a cause of financial tightening. mark: the u.k. does not share the distinction of having its growth forecast upgraded, and like many other economies -- does that reflect the uncertainty surrounding brexit? maurice: the u.k. has had a tough first year, and its growth -- a tough first half of the
year -- and its growth has been below what we have seen in the u.s., europe, and japan. there has been certainly an uncertainty effect as article 50 has been triggered. this strong depreciation in the sterling has reduced real disposable incomes affecting consumption. mark: nevertheless, the bank of england has delivered in the message.h a hawkish would you expect the central bank to go ahead and raise rates in november? and do you think it is warranted right now, given what you are suggesting is the uncertainty of what some might say is the underlying weakness? , the bank of england provided a lot of policy support after the brexit vote in june 2016. that certainly helped the economy.
is the sterling depreciation bleeding through to prices, and the bank has a price stability mandate. they are in a position that no central banker wants to find themselves in, where growth is slowing but deflation is rising. they will have to monitor the situation going forward and act as appropriate to preserve the stable prices. vonnie: i just want to quote something that mohamed el-erian writes in bloomberg view today -- global economic performance, while real, is certainly not large and confident enough to meet the general aspirations of citizens, with a worsening of the trifecta is inequality, and reduce the longer-term fragility associated with high debt, liquidity over promises, and overreliance on central banks." case? see this as the
do you see that perhaps policymakers, fiscal policy makers in particular, aren't doing enough to heal old case? wounds? maurice: that is very consistent with the advice we are giving. we see this current conjuncture as a cyclical upswing, but we see the longer-term trends, particularly in advanced economies, as being more subdued . our message to policymakers is act now to make this recovery more durable, more sustainable, more resilient, with structural reforms, cases where gets our -- -- cases where debts are high. someday there will be another recession. the landscape has been quite fluid since the new administration came in. at this point, we are waiting to see what happens. there are some ideas on the
table, but a lot of details need to be filled in. the notion that there will be a big positive fiscaltable impulss something we are not assuming at this point. we will revise as the plans become clearer. vonnie: fascinating. you talked in your report about a window of opportunity. how big is that window, and one does it close? maurice: well, nobody can see the future. berra said, prediction is tough, especially about the future. we don't know. we see good momentum. we think there are at least a few years when policymakers could do a lot of good, if they are determined to act. but again, politicians don't always have long horizons. vonnie: to have been very kind with your time today. director offeld, research at the international monetary fund. that you. 8:30g up at 3:30 eastern, we will speak with
nobel prize-winning economist paul krugman on "what'd you miss." breaking news -- failing to we n a png board seat, they will take more time to determine the outcome. shares are falling right now. they are down 1.4%, this as we learn that nelson helps has failed to win the board seat he was actively looking for. i want to come back to that breaking news in a few moments. for the moment, this is bloomberg. ♪
julie hyman has more on this and the stock reaction. julie: we are seeing the stock fall. you have continued headlines here -- the company says based on the preliminary vote count, all 11 of its directors were board.ed to the that is not nelson peltz of tryon partners. tryon says it will take more time to determine the outcome. procter & gamble says nelson peltz was not elected to the board. peltz, who owns a substantial portion of the company shares here, has pushed for reorganization, for more innovation, and for its part, the company ceo has this assertive having aggressive pushing back, saying peltz's conception of p&g's outdated, and the company has made improvements he has targeted. this really was a last-minute call here, because there were various shareholder advocacy
groups that had been pushing for peltz to get that seat on the board. this was really down to the wire here, but appears he was not successful. windentally, peltz did not a seat on ge's board yesterday. at this like he is 1-2 point. we will follow the story and see if there is any continue development on the vote, if it was close as it got down to the end. vonnie: julie hyman, thank you for keeping and i on that for us. for a of walmart up second straight day. abigail doolittle is here to tell us more. stock is popping higher, on pace for the best day of the year. they are holding their investor day today. before that, little bit of a rebound, perhaps. three positive factors coming out of this. online sales are expected to surge 40% in 2018. second, they announced a $20
billion buyback. third, overall sales are expected to grow 3% in 2018. interestingly, the fact that sales are expected to grow 3% in 2018, that is a little bit2018,w what they are talking about before. with a focus on the e-commerce -- vonnie: tell us a little bit about how achievable the company's online ambition is. abigail: it probably is achievable. they are aiming at opening 1000 online grocery stores, 60% e-commerce growth, and just now they gave guidance, which some analysts had not been expecting them to break out for e-commerce. $11.5 billion in e-commerce from 2018, andgoing 3% to roughly 2% of revenues this year and 5% next year. half a trillion dollar revenue
company, very impressive. vonnie: almost the country. abigail: it is almost a country. vonnie: abigail, thank you. mark: time for the biggest business stories in the news right now. the 15th anniversary of pressure listing in london. -- of a share listing in london. he spoke exclusively to bloomberg about the opec deal. >> is the market situation is negative, then mr. putin is correct, it would be necessary to extend the deal, maybe three months, maybe to defendant to of the year. if the goal -- maybe to the end of the year. we should not allow the market deficit. mark: he also said that while isces at $55 to $60 a barrel good for everyone. a spanish themepark operator is one of the potential buyers of seaworld, according to people familiar with the matter.
they are considering a combination. the company operates more than 60 attractions around the world. seaworld is working with advisers to explore options, including a sale. the largest fed contractor in the u will cut almost 2000 jobs. they are struggling to get new could for its warplane become what it will reduce the size of its naval ships. they say they are aligning the workforce more closely with near-term demand. that is the latest number "business flash." -- bloomberg "business flash." vonnie: now to microsoft. emily chang sat down with steve ballmer, former ceo, an owner of the los angeles clippers. he asked him about the changes such an adele a listen. e: he recognizes the goat,
the things that need to be changed. i think he has never stated that she has navigated that very well, from my perspective. we knew we needed to get into the cloud, like that he has reached another level, and i respect that he had to do things differently. i knew things would have to be done differently in that area and that is part of the reason we thought it was a good time for a change for the part will -- hardware is a whole different deal. he pushed that along with xbox and i respect that. over time, things need to be shaken up and freshened. i had been at microsoft the whole time. it reflected my personality and 's personality. but kind of like children, things need to keep going, and we revel when our children are growing up and are making their own way, and i reveled that
satya is taking microsoft to its next level, going forward in new and different ways. emily: still moving along, but amazon web services are growing faster. do you want more, that are, -- better, faster in the cloud? steve: sure, absolutely. [laughter] steve: as an investor in the quarterly call, let's keep it moving! emily: are you listening in on the calls? investor, played any i -- like any investor, i do a quarterly call. i picked microsoft does a phenomenal job -- i think microsoft is a phenomenal job, particularly on the office site. is there move for improvement? yeah, i do think there is. emily: what kind of improvement? steve: they need to have even better attachment and ability to sell to startups and developing
companies.developers developers developers. you have to win the developers. i think microsoft is getting there, but has more to do. emily: you say you are done being an investor. is that still the case? steve: yeah, i'm not in "new investments." emily: there's the debate about ai and whether it is dangerous. thinks robots could take over the world. muskzuckerberg -- elon things robots could take over the world. mark zuckerberg says that talk is irresponsible. what do you think? how do youusual, say, effervescence of the tech community. oh, let's say something extreme! oh, let's tone it down! is ai important? yes. will it improve the way people live?
vonnie: live from new york and london, i am vonnie quinn. mark: and i'm mark barton. by alanfund cofounded howard is planning to start 2 new funds, in the wake of a massive exodus. one of the reporters who broke the story joins us now. why now? >> investors are leaving the hedge fund, but some of the traders who invest in the monster fund have a good track record. goes out andard markets their performance, maybe there is a high probability that investors can invest with them, and this could arrest the decline in brevan howard. they now manage less than $12 billion, down from $40 billion just for years ago. it is a massive outflow. mark: what gives them the infidence of more product
their main fund if it isn't doing too well? acro is making a comeback. maybe it is a small comeback. some of the macro hedge funds have made money, actually. it depends who you are talking about. investors are making a comeback. macro hedge funds are leading, having raised about $18 billion so far this year. it is a strategy that investors are interested in, some of the things like interest rate organization in the u.s. is making the environment fertile hunting ground for these managers. it seems that things are turning positive for the macro managers. vonnie: in a way, this is playing to brevan howard's advantage, right? an optimum size can beyond which
the fund gets very unwieldy, it is difficult to make the returns that investors are used to, and the master funds are probably gotten bigger than alan howard ever wanted them to. nishant: easier to manage -- the master fund has $7 billion now. it is easier to manage a $7 billion fund than $28 billion which was the highest amount of money the master fund ever managed. in fact, alan howard himself in march started a hedge fund run only by himself. the -- cappingg the fun size keep -- fund size to $3 billion. vonnie: with these smaller funds, will it be easier for them to the -- regain the statuy always had? nishant: time will tell, but it is hard to say no when money is
flowing. some of the managers who have rejected cash -- for example, one raised $2 billion earlier this year, and then he closed the fund to new money. we have seen examples like that, and some of the managers have managed to maintain the performance. mark: and paul jones is doing the same. following the same approach. actually, howard started it and jones is doing it now. they launched a new strategy managed by one of their managers . that seems to be the trend in world, that you have this multi-manager platform where a lot of traders contributed and half of them did well and half of them did not. world,the end result was a mede performance. it is a new trend whereby these areo hedge fund managers
basically separating some of the star managers and letting them run their own money, so that they can sustain their high-performance. mark: great story, thanks for joining us. kuge fund reporter nishant mar. european close coming right up. 35 minutes away from the tuesday session. it is a mixed day today. afterin london declined the benchmark. stoxx 600 in germany and france. check out the currency board. we are awaiting the pivotal meeting of catalonia's regional parliament. the euro is up against the pound, and the closes next. this is bloomberg. ♪ .
vonnie quinn. this is the european close on bloomberg markets. ♪ the top stories we're covering from the bloomberg and around the world, one hour until they possibly moment of truth for catalonia and spain, will be catalonia president declare independence or back down? we are live. questions swirled around prime minister may's future and the outlook for sterling, our guest says it is between a rock and a hard place. silicon valley and washington maybe 3000 miles apart, but tech companies are feeling the government pressure and we will tell you how google and facebook and other companies are in crisis planning mode ahead of congressional testimony next month. european equities trading