tv Bloomberg Markets Americas Bloomberg October 26, 2017 10:00am-11:00am EDT
♪ vonnie: we are covering the ecb, earnings, and lots more, but first, we start with making economic data on housing. julie hyman is here. julie: looking at pending home sales here month over month unchanged. that is disappointing. analysts and economists had been looking for a half a percent gain, and now we are seeing no change month over month. this is in sharp contrast to yesterday's new home sales number that came in at a high since 2007. pending home sales is a more forward-looking indicator. the new home sales number from yesterday was from the prior month. so a little more backward looking here. aol more mixed housing data.
-- a little more mixed housing data. again in stocks, but not much of one for the nasdaq. big blockbuster companies like alphabet coming out after the today. another way of looking at the long bull run we have seen in stocks on the bloomberg terminal here. highweek low and a 52-week for the s&p 500. obviously, much closer to the 52-week high line than for the 52-week low. has not broken that 52-week low since 2016. just a continuation here. on the plus side, we have twitter earnings. company sales beating estimates and added more monthly users. big snap up in the shares today, up 12%. ford reading earnings estimates of sales of nfc west big caps in particular -- of f series pickups in particular.
these companies have been beat up recently, the drug distributors, over their concerns of their tying to the opioid crisis. a little bit of a snap up after that. also want to look at biotech. bloomberg intelligence call it a bloodbath today. down 2%. after thatn 19% company cut its long-term profit target. vertex pharmaceuticals out with numbers as well that beat estimates but reported two trial failures. midpoint still below analyst estimates. a lot of turmoil in the biotech world today in terms of earnings. mark: ecb, that is what it is all about today. gains for the day. first day of gains since september 11. 30 billion euros from january. it will run through at least september.
this is euro-dollar one day chart. 12:45 london time when the announcement came out. euro down 9/10 of 1%. the biggest since december of last year. we are witnessing the biggest decline in euro this year. down since september 8. it hit its highest since january 1, 2015. there's euro-dollar, this is a wonderful chart. the lowest since december last year. we are seeing a rally in italian bonds and german bonds, but italian bonds are rallying more than german bonds. that is why we are seeing the yield difference between the two nations narrow. 1.15%, the narrowest since december last year. busy corporate day. deutsche bank reporting a 30% drop in third-quarter trading revenue. twice as much as a decline by europe's biggest investment bank, giving losing ground to
rival shares by 1.6%. the slump was driven by fixed-income trading contribute into a 10% drop in overall revenue. the third straight quarter of contraction. i have not even mentioned barclays. i will later. vonnie: absolutely. lots to talk about with european banks. as you mentioned, mario draghi trying to head for the qe exit, but mario draghi eight emphasizing the central bank will proceed with caution. purposesanuary 2018, are intended to continue at the monthly pace of 30 billion euro until the end of september 2018 or beyond if necessary. vonnie: joining us now is eric. he is joining from our bureau in paris. exit, was thisle
taken for purely technical reasons? judging on the market reaction, it's very success. for the ecb a it means another 270 billion that of asset purchases are coming for 2018. but also more than that, it means asset purchases. something that was expected by the market. beat the markethe ecb beat markt expectations. the market could have been happy. less hawkish or a little more dovish. for 2018 we are
heading for yet another year of negative net issuance in the eurozone market based on the potential 150 billion in the government markets for the years to come. vonnie: to that point, peter is a strategist in the states and is pointing out that between the ecb and the federal reserve, there is almost $1 trillion last being bought next year, so less liquidity. do you anticipate any problems coming from that? , first, most of the moves are behind us now. there is a technical limit to what the ecb can buy in the market. amount,that the total
outstanding amount of debt in the market in the eurozone, is 1.2 trillion euros. of the rules for asset changes from the ecb. trillion. we already have 1.8 trillion in the central bank balance sheets. so the meaning is the potential for additional asset is today limited. we can say from that perspective that much of the moving is behind us now. to some extent, we can say there is a drive for the issue for the european central bank and the cycle being very positive nowadays. vonnie: yes. eric: we can trust there will be an additional need after this move.
mark: why so dovish? if it was slightly on the board oversight given the data, which is showing the economy has gained traction, why did draghi feel the need to fear on the board oversight -- veer on the more dovish side today? eric: there is a major challenge, which is to keep the level of interest rates across the curve under control. we have to recognize that there is a need to get out of the negative interest rates that still are the rule on the very short end of the curve, but also, not long-term yields to whatase too fast and avoid has been the situation in the u.s. market back in 2013. so i think this is the reason why there is a high level of consciousness.
this was a very important rendezvous because this is the first time we have a recalibration. this is a very important step. the totallls us amounts of assets they are going to buy in the market, and this is a big step for the market. mark: what does it mean come all of this, for our fixed-income strategy? have you shifted, change your status in the last couple of hours? eric: not on this particular event. welcome that.o i would say there is a short term and long run. on the short run, there is something positive for the risky assets in the fixed-income markets, very clearly. will telling that we
our investors to keep investing particularly on the credit markets. we are going to see what the breakdown is of the 2018 waiver this is going to be favorable for the credit markets. someill believe that at point taking into account what i just said regarding the technicalities of the asset purchase program and the fact that there are limits to the total amount that the ecb can that,t is inevitable again, in the coming months, we have the debate about the exit back on the table. mark: great job. vonnie: yes. thank you. head of fixed income at amundi. appreciate you joining us today. mark: emma chandra has more from
new york. emaa: there is a report -- emma: there is a report that president trump will not name janet yellen as the chair of the federal reserve rea. she is out of the race, but the president changes his mind about it every day. according to politico, he has there at it to powell and taylor. meanwhile, president trump will officially declare opioid abuse a public health emergency today, but he was stopped short of a controversial move to cap federal funds for hurricane recovery and epidemic. partial data indicates the death tolls from opioid overdoses could be headed to another record year. former hsbc currency traders stuart scott will be extradited to the u.s. to face old charges after a london judge rejected applications to stay in the u.k. on monday, a jury in new york convicted mark johnson of front
running a $3.5 billion currency order. 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. mark: coming up, big day for tech earnings. twitter kicking out today is day. revenue beat analysts estimates. this is bloomberg. ♪
something.ects if he is behind it, if clymer putin is behind it, it is only a matter of time that opec understands it. >> yes, it seems very likely opec will extend their cuts 2018, this after the saudi oil minister says they will do whatever it takes to get production levels back to the five-year average. it has been a required session sessions so far, but overall, that will add to the market. we saw a moderate increase in stocks. that was a little bit of a and maybe tiff a little pressure on things in the short-term. could production is back to prehurricane levels. that means we are about 10 billion bushels a day below a year ago but 64 billion over the
five-year average. longer-term stocks seem like they can grow. the big surprise was the draw and product stocks yesterday. imports are about a third of what they were the week before. refinery rates are very strong. they are above last year and five year ago levels, so that a strong. exports have a low with the kurdistan issues. short-term group needs to hold this trendline strength we have. longer-term, i think we are gunning for resistance with the october highs of 52.65. upside may be limited by increasing your inspection, but we want to try higher here. mark: got to leave it there. thanks for joining us with today's futures in focus.
mark: this is "bloomberg markets ." i'm mark barton in london. vonnie: from new york, i'm vonnie quinn. until adp days left shareholders vote on what has become a close proximity between the company's current management and bill ackman's square which has a stake in the company around 2%. recommending shareholders vote to reelect nine of 10 directors, but that is the same as partial support for bill ackman. iss recommending shareholders withhold their votes for the comin current board membe.
two other returns are backing the plan. ceo,oke with adp's current carlos rodriguez. have a listen. >> the board had a meeting with bill, a special meeting to listen to his ideas around margin expansion and other ideas he has run consolidating operations, etc. the board has always been open and continues to be open to new ideas. vonnie: lots of support for bill ackman. at the same time, it is a close battle and a lot of opposition. joining us now for an exquisite interview is greg, who served on the atp board for 14 years. he no longer has a position in adp, have bee having given any outstanding shares over the years. you can hear from everything there, i asked the third shareholder advisory firm to say we are not backing the plan completely, but why not put bill on the board?
he would be a good minority voice. what do you say? greg: it is interestinggreg: vonnie:, because i think wha -- greg: it is interesting, vonnie, because i think what they did, eric is a terrific director, by the way. i know him well and a huge value added on the board, but you either get to vote for the atp slate or you get to vote for the slat that bille has put up. you do not get to put them together. reminds me of when i was a kid of a multiple-choice exam i would read in school. i would read the question and think i know the answer and i go down and answer i find it was not there so i had to pick another one. a little bit of an offset what iss did, but largely, they backed the companies like. one carlos has done at adp has been terrific over the last period of time. i led the search committee that
actually selected carlos. i think we made a good choice. vonnie: i think people have definitely praised carlos for his work, but i wanted to specifically address the issues iss had. let's pull it up. the company's lack of direct public response to two key ,ssues raised by the dissidents how it will reverse market share loss among large customers, and why the margins trail paychex 's so widely. why not better margins? greg: i think, actually, the company has had a plan to improve the margins over time, but adp is the one company in the space that actually goes from small to medium to big businesses. so what you have to do when you're looking at adp and what we certainly did on the board is you look at the competitiveness in each of those market segments because there is not another competitor that actually spans them all.
for a long time, the competitiveness of adp on the small side was suffering versus paychex. carlos is the one that led the technology process to put run in place, which is the product for the small business side. very quickly, that gap closed on the small business side. there is no pure play if you take a look at the business. yet to take it apart business my business and actually get into a little bit of detail. vonnie: let's do that because i think that is what shareholders need to know at this point in terms of the larger businesses. what are the margins for adp? greg: i have not been on the board for three years, so whether publicly disclosed is what i have, so you will have to ask carlos that question. vonnie: are you not curious? given that you are taking a stake in this fight, are you not curious what those margins are and could be? greg: well, what i look at is very simply, how has adb
performed over time? you know all of these numbers, 200%.r is up over over 500 basis points of margin improvement. carlos has a plan for another 500 basis point improvement. adv is a company that does 16% of the u.s. payrolls, 25% of the remittances to the federal government. it is an american asset. you don't actually do what ackman did like i jcpenney where you come in and say we will take a radical change in a quarter, which is what he has been talking about. it is a process you work through when you have a company like this. i think that shareholders have been rewarded enormously almost two times what s&p has done an almost 10 times what ackman has done in his own funds, so i struggle a little bit to say look at jcpenney. i sit on the home depot board. vonnie: you are the lead director and i get what you're saying about jcpenney, but let's not make disingenuous arguments. it is a totally different industry. greg: let me come to your point
in their. it is not a disingenuous argument. ackman knew nothing about jcpenney and you saw the results at jcpenney. ackman does not know anything. the directors he put up have no experience in human capital management. because you are taking somebody who does not have experience in the sector and saying i want to control a large portion of the board and actually move it at a pace that can destroy the company. vonnie: sure. definitely bill ackman would admit that jcpenney was not maybe the best way to go about things, but perhaps he has learned. i want to show you that short interest has declined significantly in the company since the proxy fight became public. that shirley says something about how excited shareholders are two halves of eli bill ackman potentially joined the board. greg: well, i am not sure it does, vonnie. havenk the share prices been appreciating nicely
consistently over time and if you look at what happened in the marketplace in the dow or the s&p, obviously we are at a time with that has been appreciating as well. i think shareholders have been really well served by this management. i don't have anything against activism or bill ackman. i think this is the wrong company, wrong time, wrong target. vonnie: we really appreciate obviously the chairman of the private equity house and you are saying it is imperative to regularly evaluate board composition. thanks to greg brenneman. also lead director at home depot. he is on the board of baker hughes and former ceo of burger king. this is bloomberg. ♪
emma chandra has more from new york. draghi is putting a stimulus measure on the path towards an exit, but he wants the central bank will stay cautious. in january, the ecb will start ending one of the more controversial policy tools by cutting monthly bond buying in half to about $35 billion. draghi says the bank will tread money and inflation this week. in spain, the president of catalonia is looking for a conciliatory gesture from madrid, according to people familiar with the matte. is that meeting of election rather than declare independence this week. but he is holding off on a decision. u.s., congress may crackdown on a rising tide of chinese dealmaking in the u.s.. according to people familiar with the matter, congress will consider tighter measures to restrict investors seen as a
threat to national security. china has made a number of deals involving u.s. technology, agriculture, and financial services. millions of americans living overseas make it a break from the tax bill being considered by congress. according to the financial times, republicans may eliminate requirements for expatriates to pay taxes overseas and in the u.s. the house ways and means committee chairman kevin brady they may only be taxed on income earned in the u.s. 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. mark: thanks. ubs posting third-quarter earnings today. one of the takeaways, should investors be concerned of amazon taking control of its delivery route? our guest joins us from atlanta. good afternoon or good
afternoon.looking at your forecast for the holiday season, looks like it will be another recordbreaker. >> it is. we are looking for 750 million packages, which is between 5% and 6% growth, in for 80% of the days between thanksgiving and new year's eve, we will be over 30 million packages. just last year, it was just over 50% of the days that we were over 30 million, so obviously we are ready for another good peaks season as we continue to see the consumer driving the u.s. economy. mark: you are aiming to improve the efficiency of your home deliveries, but home deliveries are far less profitable than shipments to business. how can you close the gap? richard: well, we are doing several different things to improve it. first, inside our operations, we are putting more automation. in order to help the customers, we have created an app called "my choice" worth 40 million people are communicating about ups about that delivery. one in four households in the
u.s. communicate with ups when , andare getting a package they are allowed to move where they are getting into an access point or to their home, their work. that helps to create the density and also helps to make it more convenient for our customers. vonnie: we have been investing and will continue to invest to a total of 200 million in the business segment. what do you intend to invest in the door, residential segment of your business? richard: so one of the beauties of the ups network is we want one integrated network. that means if you have a home and a business just down the street or around the corner from each other, it is one driver, and so we are the only one in the industry that months and innovative network with one network- integrated with one driver. apple is much stronger because everything we do to improve efficiency is improving all packaging efficiency, not just packages to homes. vonnie: do you intend to invest
more capital in the home residential part of the business? richard: so we actually have moved of our capital spending. we talked about it earlier this year. we have been running historically around 4%. the reason we are moving up by about 2 billion or so this year is because we continue investment operations to create density on the residential side, but also to improve the commercial side. but it really is about making the total costs come down as he use more automation inside our operations with our drivers. we will do something called paul ryan, optimized on road routing. we are now saving 628 miles per eigghtsix to miles per day. mark: can we talk about the fee? is a pushing consumers to bring forward their use of your service?
is it actually pushing customers away from ups? richard: well, i think i will it to the first question or the last question first. if you look at our revenue growth this year, we are up 7% across the entire enterprise. just about 5.5% in the u.s. domestic business. those are some of the largest increases in revenue growth we have had since the recession. i believe that the solutions we are put into the market and the capabilities that ups has are things our customers are embracing. when you look at the peak season surcharge directly, there are two things going on. first, over 100% of the daily capacity 44 to six week period perioda four to six week for some businesses. that is why we put up the is season surcharge. vonnie: fedex is not charging a
holiday surcharge. how can you compete with a carrier that is not charging that and still hold margins? richard: well, i think the first thing you have to a rubber the total margin and not just about the incremental peak season surcharge. number two, you have to think about the solutions we are bringing to market and the capacity we bring to market at this time. there are no other carriers that are flexing 100% of their average daily volume. the market needs it because people are buying more and more online. we are able to flex our network to do that. when you think about capacity constraints across the entire industry and the costs we are entering, it is aligned. that is why it has been as strong as it has. mark: we have to talk about amazon. we always do. you always tell us how they are a client of years and you work closely with them, but they are experimenting with the last mile delivery service. is this a threat to you? richard: you know, the way we
look at it is the same with amazon as every major retailer. we continue to have a collaborative relationship. sometimes they will do some things on their own. sometimes they will come to ups. it is really about making sure the solutions we created the market, such as the my choice where we can give a customer a choice on how they receive their package, are things that make it strong for any retailer to use ups. every major retailer in the u.s. has some portion of their logistics in-house, and every major retailer uses ups. it is about the mix. they are testing capabilities. we are testing capabilities. we are not ready to come to market with ours because we do not know of the business case come over there is nothing that precludes us from something you have heard in the news the last several days. mark: thank you for joining us live from atlanta. vonnie: coming up, more earnings. this time, technology. what we heard from twitter and what to expect from alphabet.
let's start with nokia and why shares are down 70%. -- 17%. julie: it was a surprise. it is a disconnect between expectations, and it is case, it was a pretty big disconnect. the company is predicting a prolonged slump not just for itself before the wireless network industry. this is pre-staged by ericsson earnings recently where they talk about continuing declines in the wireless network industry. nokia is saying it will down as much as 5% this year and as much as 5% next year as well. that is where the surprise lay. essentially, nokia and some of its peers are in a tight spot now where the various wireless network companies, the various carriers that is, they don't need a new network right now. they are post the last build out and pre-the next wave, which will be based on 5g technology,
but that technology is not quite far enough along. still potentially a few years out. the ceo of the company said the sector is in the midst of multiple technology transitions, so the company saw a slump in sales. some analysts, including those at bloomberg intelligence, thought that cost cuts might mitigate some of the pain, but it looks like that is not enough to make up for what is going on. if you take a quick look at the bloomberg, this kind of describes the disconnect between expectations and reality. about two thirds of the analysts who track the stock have a buy rating. they were inspecting some rebound that is yet to materialize. they are in the green bars. that is how it's denoted. you have where the stock is now, the yellow line, versus where analysts predict it should be. it is trading just over four dollars. a different story in a different segment of the wireless market. julie: on the flipside, st micro
says its fourth-quarter revenue will rise more than predicted. its full-year revenue growth will be about 18%. it's a products will improve in a substantial way.st micro , after faltering for some years, seems to know have pegged its growth to smartphone makers like apple and samsung.it does not describe its clients by its, but the supposition is parts are going into this new facial recognition technology that apple is developing of course for the iphone x. the shares are up 83% year to date versus an increase for nokia of about 5%. you see also the disconnect reflected there. entirely unanimous opposition. has an underweight on the shares and says the duration of the iphone design remains questionable. vonnie: julie hyman with our
stocks of the hour. thank you.that was great . as julie was saying, it is a big day for tech earnings. twitter beating estimates, up 14% now giv. for disclosure, bloomberg lt is developing a video network for the twitter service. google's parent company and amazon are due to report after the close. for the numbers, let's bring in our guest with capital markets. mark joins us from san francisco. your reaction first to twitter and how investors are reacting. mr. mahaney: let's see, the bar was clearly low for twitter this quarter. you can see the stock has been trading down. last quarter, monthly averages, ma use had declined in the u.s. market. ew.s quarter, they gr they had record high ebita
margins. they beat those expectations. the guide to the december quarter was a little mixed. there are a lot of fundamental questions about the asset here, but things like they were getting less worse than feared. vonnie: what do you think this improvement has? everyone has been talking about slowing user growth and advertising growth and so forth. can pick up again? mr. mahaney: i do not know if it can. this is not growth. this is still a declining asset. u.s. advertising revenue still declined about 10% year-over-year, and the rate at which it declined actually accelerated some things got worse in the u.s. market. they did not get as worse as markets had feared. there is an expectation that is going on today, but it is not like we have seen an inflection point in fundamentals. there are still a lot of unprovens here.
and they improve the user experience? ,an they get user base to grow not just adding one million users a quarter but maybe 10 million? that is very uncertain. they have to improve the experience to make the site safer and easier to use. a lot of improvements needed. they have put in a bunch and we have seen some improvement, but not a lot. it is unknown whether this will be a growth asset again. investors should be cautious. mark: $14 is your target. the consent in 12 months is $15.83. so i actually you are a little bit more bearish than the consensus. you told us some of the things twitter needs to do. anything else twitter needs to do for you to change that stance on it? mr. mahaney: if we had a material correction in the shares, maybe that would make us more constructive, and we will be open-minded about it.
if the user platform can improve and they get users to grow, advertisers will come back, and if they do, you can get growth again, so it all comes back to whether the product improvements can make a platform more broadly appealing to a more broad base of users. they have been doing this for the last year or two. we have not seen it catch fire yes i am not sure what the right improvements are. we just know what they have done to date has not automatically moved the needle. maybe there is nothing they can do. maybe they just capped out the global user base. their are a few markets where they seem to be doing well. they called out japan on the earnings call and said they are seeing accelerated growth. that may be the only market where they are seeing growth and it is accelerating. is there something they can take from that market and bring it to other markets? it is an unknown. mark: let's talk alphabetmark:. it releases earnings later. some of the things highlighting ahead of tonight its revenue and
operating margin trends for called google, google websites, revenue growth. can you give us some answers ahead of what we are going to hear tonight? mr. mahaney: i think there are two or three basic questions on this asset. it has done 20% year-over-year revenue growth for 7.5 years. you think about consumer staples, this is a secular staple, and internet staple -- an internet staple. can they continue it? we think they can. the second question is, what about these traffic acquisition costs? that is the big issue for investors. those costs, the revenue share costs with apple and samsung and other companies like that, those jumped 50% year-over-year in the last quarter. what happened to those expenses this quarter? we don't have great visibility into that. nobody really does. we will be looking into that
line.this other bets area which includes life-sciences, drugs, autonomous vehicles, that has been generating 3.5 billion to $4 billion in losses. when are we going to see some metrics, revenue growth out of that? that is a big question. i don't know if we will get an answer on the call on that will we look to see it. mark: when idb questions ahead of amazon later? mr. mahaney: we have had one month of whole foods integration. how about giving us a little sense as to what the roadmap is there? there has been very little disclosure from the company. what is the game plan three to five years out in terms of integrating that into amazon's direct to consumer logistics? what about pricing? that is issue number one. issue number two is, can they sustain this 40% plus growth for their cloud business? we think they can based on checks we have done, but that
will be a litmus test issue for consumers. third is just the overall health of the retell business.frankly , it has been showing accelerating growth in north america because of the continued buildup of their prime subscription shipping program. people want to see whether that will continue or not. we think we will see continued acceleration for north america's retail business. vonnie: fantastic analysis and early analysis from rbc capital markets. he came to us from san francisco. still ahead, we talked to david why he is about stepping back at carlisle. this is bloomberg. ♪
vonnie: i'm vonnie quinn. this is "bloomberg markets." a big shakeup in a private equity world is coming. and conway will step down from their roles january 1, as we reported yesterday. rubinstein is host of the david rubenstein show on bloomberg television. rubenstein talked with erik schatzker about what his role will be in 2018. have a listen. david: we are still going to stay involved in the firm. i will be the coexecutive chair with conway. he will serve as co-cio. away. not walking we are changing our rules a bit, but we let the new people run the firm as of january 1. erik: how much leeway are you going to give them? david: a fair amount. you cannot have a successful transition if you are helicoptering over the people. we do not want to have her. we will keep -- we do not want to hover.
we will keep around, but you cover day-to-day. erik: this lik was a large decision. when and why did you decide -- it could have happened in 69 or 68. david: we begin to feel at some point that it is time to hand over the reins to young people. it is not clear that are people who are 68 and 71 are the best leaders of the future so we did not want to wait until it is too late or until people say these people should go. erik: why these guys? david: glen has been with us for 23 years. i recruited him from mckenzie years ago.extraordinarily talented person . the other i helped recruit four years ago from warburg pincus. very good investment skills, people skills, complementry
skills. we are confident they will do a good job. erik: what are you doing to avoid the ge curse? you remember when jack welch anded the reins to jeff three of the best managers in corporate america left ge. the same thing just happened to kkr. alex has left. what is carlisle doing about this risk? david: we have three people woul we put insignificant positions. -- in significant positions. i do know of anyone who is unhappy with this so i don't expect any senior people to leave so i think we have a good transition. people leave firms time to time, but i don't think anybody will leave the firm because of this decision. vonnie: that carlyle group co-ceo and cofounder david rubenstein also the host of the david rubenstein show. he was speaking with our very own erik schatzker. breaking news.
we are following capitol hill and the house vote, which has begun. the vote on the budget, that is the proposed tax overhaul. we will continue to monitor the vote. as of now, you can see it is 208 republican yays and 12 nays. we will be speaking with a democrat later on who was on the budget committee, so stay tuned for that. mark: coming up on the european close in a matter of minutes, we are 35 minutes away from the end of the thursday session. it is being dominated by you know what, the european central bank announcing today that it will announce the bond buying program to january 230 billion from 60 million euros. this is bloomberg. ♪
european close on bloomberg markets. ♪ mark: here are the top stories we're covering. the european central bank makes its voice heard, extending qe but cutting the amount for the asset purchases. where mario draghi and company go from here. barclays has a miserable quarter. trading revenue falls. we will hear from jes staley as he faces increasing pressure. and politics, a day of drama in catalonia as a major speech from their leader is set to start any moment. will catalonia abandon its push for independence or double down on going solo? where european equities are trading right