Skip to main content

tv   Bloomberg Markets European Close  Bloomberg  October 26, 2017 11:00am-12:00pm EDT

11:00 am
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 now, 30 minutes
11:01 am
away from the finish of the thursday session. all about the ecb. today.s up by 2% ireland and italy, france and germany all rallying on the back of the news from the ecb. it has cut its bond buying program to 30 billion euros per month from january and will extend it through september. it cap its pledge to step up or .xtend buying further if needed the proceeds of maturing debt will be invested for an extended. netod after the end of its asset purchases and stressed lending to banks will be conducted at a fixed interest rate and with full allotment for as long as needed. these currencies falling against the dollar with the biggest decline in the euro today since december last -- look at declines in the bond market in europe today, spain third year by eight basis points and the italian 10 year down by six basis points. not just about the ecb today,
11:02 am
lots of earnings to tell you about with barclays shares hammered, down by 8%. declining since the day after brexit and they posted a 34% drop in fixed income revenue in the third quarter. wall streets'average drop was 22% and deutsche bank was 36%. the run of bad results will make it harder for the chief win over jes staley to investors skeptical of his strategy to build up the investment bank. breaking news. spiking,tocks are house republicans have knelt narrowly adopted a budget resolution. it unlocks a fast-track process to achieve the republican goal of cutting taxes by the end of the year. they have averted a last-minute threat over satan and local a deductions. they will allow tax cuts which would boost the deficit by $1.5 trillion. the vote 216-212.
11:03 am
more market reaction, here is julie hyman. >> let's look at the bloomberg to get more insight into the stock spiking. u.s. stocks higher, a little bit of a leg up for the s&p 500. it has come back down to the level where it was following the headlines. a lot of investors following this story of what will happen with the tax cuts and applications for them. there is the 10 year yield. we saw a little bit of an increase as these headlines came out, 2.44%. back to the overall market, still seeing movement on earnings. all three major averages are higher with the dow the only trading on a high on a closing basis, not on an intraday basis. let's run through earnings winners. we have an auto parts maker up 3%. their earnings for share rising by 29%.
11:04 am
china domestic sales, the company said rose 22%. quarteructs with first earnings about estimates and sale fell less than estimated. up, we heard from their cfo -- ups says revenue for each package rose 2% in the third quarter. with all -- with the winners, we have losers, especially on the busiest day of earnings for this season. downside, their sales missing estimates and it raised its forecast. it is still shy of what analysts had been estimating. rizzo myers third-quarter numbers -- bristol-myers third-quarter estimates below because of lower gross margins, analysts say it is because of changing product makes an inventory. hershey, the chocolate company, they reporting mixed results in the third quarter with earnings beating and gross margins missing and sales in line with estimates.
11:05 am
analysts talking about rising cost for hershey. we switched to the dollar. a rally in the dollar recently. you can see the reaction to the latest budget headlines. we await any kind of news on the new chair of the federal reserve. in addition to traders weighing all of the information we get, including economic data. look at the bloomberg. we have the net positioning by leverage funds on the u.s. dollar. while we are seeing funds net short, they are less net short than they were. we saw a big drop in the short position, which implies a little bit less bearishness and more bullishness as we wait for the fed chair announcement. mark: thank you. getting some comments from the catalonia president who is speaking. he got no guarantees the votes would be held normally. he thought about calling an election and needs to exhaust
11:06 am
all options for a solution. he says spain is aiming to eradicate m -- catalonian traditions. we will tell you what is happening in spain. meanwhile, mario draghi's decision, calling for caution, he is moving to dial back the stimulus program. exercising the need to tread carefully as long as consumer prices remain weak. >> measures of underlying inflation have picked up moderately since early 2017. but have yet to show more convincing signs of a sustained upper trend. is theoining us now investment manager at pictet asset management, there was a andrew, i must not get it wrong. a -- looko provokes
11:07 am
at the market reaction. is it the perfect market reaction? has he managed this well? >> he is fortunate we had a day like yesterday. when the markets got started around -- anticipated more hawkishness, not just in terms of the ecb but at the fed. today is somewhat of the reversal and something of a relief. he is stuck by the technical. the reduction in qe was basically in line with the consensus. he could have had an earlier stop to it. he gave himself before disability to carry on for longer and possibly increase, should he need to. mark: when you reinvest the maturing bonds, not much if it equates to 15, 20 billion per month next year. not a massive taper.
11:08 am
>> no, absolutely. the european recovery is just gaining momentum. he would not want to make the mistake that the bank of japan made all those years ago. suddenly, they titans to quickly. -- tightened to quickly. -- too quickly. huge unemployment, particularly in southern europe and waits inflation has struck me as being somewhere away. he admitted that near-term inflation will probably peak down. most central bankers will forecast it to be up next year. that is what they are hoping. he has given himself flexibility and i'm not surprised by that. the markets have had some relief today that it was not more hawkish. as they thought -- vonnie: euro weaker by a big figure, the weakening picking up steam, 1%.
11:09 am
it is unusual move but pretty significant. will it stay weaker? switched to washington and the fed. the increase speculation that taylor is moving up. moving up the list in terms of fed chairman probably does give the prospects for a stronger dollar. i think the markets are moving that way. there seems toat be net shorts on the dollar. i think we will continue to see short covering going into a binary type of outcome, if you think that is the decision for the fed chair is. vonnie: fascinating, because that would imply that mario draghi does not have as much control over the euro movement as he may be once did. at least in this timeframe.
11:10 am
>> certainly over the short term i think that is right. i would agree. as i said, all eyes on the fed now. a possible change of doctrine. that is what the markets will worry about and probably what is about the dollar near-term. mark: stronger dollar, stronger yield, 2.44% is where we are on the u.s. 10 year. threshold,ssed this 2.4% threshold, does it mean much higher yields or are we stuck in a range? >> we are stuck in a range. there are me that increasing number of forced buyers of government bonds. the regulatory environment forces insurance companies and bysion companies to derisk
11:11 am
government bonds and that will not go away, even if purchases from central banks do. , it is an environment difficult to see as getting a sharp increase in bonds. there are two manning buyers -- too many buyers. who say, i have been waiting. there are some support for bonds. over the long runs, yields are set to rise. from a long-term perspective, they do not offer you the perspective of a real return. they are not a great value. if you are investing because you want to grow the real value of your assets, it does not strike me government bonds are the right place to be. mark: as the catalonia president speaks at the senate in spain and starts discussion on article 155, are spanish assets a today? -- good buy >> it does not surprise me that, since the cattle an issue --
11:12 am
catalonian issue, that europe has underperformed. it keeps overseas buyers away. particular, good news for spanish banks today from the ecb, perhaps. forces., opposing catalonia position continues to make headlines, overseas buyers of european assets probably are slightly more cautious. certainly from in the immediate -- in the immediate terms, we look more towards france where we think monetary conditions are much better. mark: good to see you and thanks for joining us. the catalonia resident still speaking -- president still speaking, has not said he will do anything actionable yet.
11:13 am
catalonia separatists rebelling against their leaders. we will monitor the developments next. this is bloomberg. ♪
11:14 am
11:15 am
♪ mark: live from london, i am mark barton with the european close 15 minutes away. vonnie: in new york, i am nokia. on capitol hill -- i am vonnie quinn. a billse has adopted which gives republicans the tools they need to avoid any democratic filibuster of their tax overhaul plan. opening the way for the plan. let's bring in kevin cirilli, our chief washington correspondent with a key
11:16 am
republican lawmaker. perfect timing. >> joined by a key republican lawmaker who just that off the floor as the budget has passed. marsha blackburn, this budget has passed and paves the way for tax reform. what next? >> moving immediately to tax reform and chairman brady is about ready to bring his bill out and we are looking forward to seeing the details that are going to be embodied in the bill. we are excited about relief and lowering the marginal rate. system.hat a flat tax it will be more fair because the business rate will apply to all the pass-through entities, the llc and the partnerships. it will be simpler because you will be able to pick up an iphone and taken app and file your taxes. simpler, more fair catch relief for all americans -- more fair
11:17 am
tax relief for all americans. kevin: before we talk about how this will be a four, this got bipartisan support. -- will ek four, this got bipartisan support. gote paid for, this bipartisan support. >> surprising but yes, this was shepherded through the committee process and got support in the conference and the entire body. setting up foundation for tax reform. i am pleased that, even though we in the house did not get everything we wanted in this document, we took the senate's document and said, let's move to tax reform. we have done the budget and now let's get to tax reform. kevin: in terms of how to pay for it, a beating cancel last night -- a meeting canceled last night, the 401(k)s around the concern and we are hearing some
11:18 am
reports that gary cohn is floating an idea of the death tax as a pay for. will there be change to state and local tax deductions? >> there may be a cap. kevin: natural gas tax is that a pay for? >> i do not see tha. kevin: could we have for tax brackets or five tax brackets? >> i do not think so, a zero bracket and the 12%, 25%, 35%. and you talk to my house colleagues, that is what most of them want to see. propagationagainst -- for or against rothification. >> we want people not to be penalized for putting money into their 401(k)s, we should reward them. kevin: should they be taxed on the upfront? >> let's see what will happen,
11:19 am
we want to simply say, make everybody whole on this money and make certain they are benefiting and are rewarded. that they are not penalized. kevin: onward to the tax bill, awaiting the details. there was a lot of controversy with senator bob corker, a republican from tennessee, that had no impact it looks like in terms of moving the ball forward, would you agree? >> everybody wants to focus on getting tax relief done and done quickly. the american people want us to focus on that. they are saying to get this job done, we are overtaxed and overburdened. it is time for us to tell the irs and the federal government, you need to be shrinking, because we have been shrinking. kevin: marsha blackburn fresh off the floor of this crucial vote, thank you. vonnie: wonderful stuff, thank you to kevin cirilli, our chief
11:20 am
washington correspondent. later, more on taxes and the budget with a top democrat on the house budget committee, john yarmuth of kentucky. this is bloomberg. ♪
11:21 am
11:22 am
♪ mark: live from london, i am mark barton. vonnie: live from bloomberg world categories in new york, i am deaf world headquarters, i am vonnie quinn. audi has expanded its product and improve vehicles. market share in that time have ofe than doubled for audi america, will it be enough for them to catch up to bmw and mercedes? himself, ask the man the audi of america president. >> i believe it will be enough
11:23 am
but the most important thing is to execute your corporate plan and not chase companies and other people's businesses. we have the next getting our plan for the last 5-10 years and it is working perfectly. we are drawing more sales and getting more shares and are more profitable. vonnie: consumer reports naming audi the best overall brand or vehicle quality. you are selling 210,000 vehicles or thereabouts. what is the plan to increase the man for audi -- demand for audi? >> we will continue to lunch great products. the second thing that is happening is we are becoming more of a national brand. we have been historically strong in the northeast and northwest but if you see down south, 20% of and houston and 10% in dallas . giving a significant growth opportunities. finally, we want to invest in new technologies and innovative with electrification and
11:24 am
autonomous. we feel we can lead. mark: let's talk about electric, little demand, electric cars are losing money. how confident are you that electric cars will change in the near future? >> i am confident and i am an optimist. this was the same type of sevenths when we were or eighth in sales and now number four. it is a simple thing from my point of view. if you look at the audi demographics, highly educated, wanting new technology and believes in the future. look at our strong market from portland, seattle, san francisco , i think there is a big opportunity. the second biggest thing for me is new stimulus, the fact is to 26here is 25 million million electric cars on the road yet only 1.3 million, 1.4 million sold per year. there has not been a new stimulus and if you do it right with electrification and
11:25 am
autonomous, that will drive the market and we are well positioned to take advantage. call me an optimist. mark: gm gets credit on the autonomous side for its transportation and service model. do you get enough credit for your autonomous car technology? >> i don't think audi ever gets enough credit. you are right, our technology and what we have been doing, when we first started over 10 years ago at stanford, our -- with stanford, our first autonomous car when one-mile. we were the first to drive from stanford to las vegas, 600 miles and then across the country. , im not tangled up in credit am tangled up in bringing a product to the marketplace and that is what we will do. vonnie: briefly, how much of a particular need is not there for you -- nafta for you? >> it has been in place since 1993 and it has brought stability to the market. if you look at the u.s. automotive market, sales have
11:26 am
never been better. the health of the companies collectively has never been better and consumers have never had a more competitive and better product. we want stability, we want transparency, we think the ecosystem of moving parts and products to canada, mexico, to the united states works fundamentally. if it can be modernized, let them modernize it but we think it is working for the automotive business. vonnie: our thanks to scott keogh, the audi of america president. mark: focusing on what the ecb did today, a big boost to stocks across europe. the euro is down and bond yields are falling. ♪
11:27 am
11:28 am
11:29 am
mark: live from london and new york, this is the european close. i'm mark barton with vonnie quinn. stocks finishing the thursday session higher on the back of the ecb news today. the biggest gain since september
11:30 am
11, 1.1%. qe cut to 30 billion from 60 billion. they kept the pledge to step up or extend further biting if needed. the proceeds of maturing debt will be for an extended period of time after the net asset purchases. lending will be done at a fixed interest rate and with full allotments for as long as needed. stocks rallying today on the back of the ecb. the euro plunging. the biggest the client since december last year. it has fallen by almost 3% since september 8, the day after the last ecb meeting when it hits since januaryvel 2016. interestingly, the call for the end of the year is 118.that rises to 122 by the end of next year. perhaps a median forecast of analysts we surveyed here at bloomberg.
11:31 am
the difference between germany and spain.the ecb side and what is going on in spain's side. the spread down to 1.2%, the lowest since september 19. 1.33% after the catalonia referendum. before the referendum, it was at 1.14%. original referendum that could have defused tensions with think is in the last -- tensions with spain. that is the big news. in third-quarter trading revenue, twice as much as the drop by u.s. peer groups. is losing ground to its rivals. still down by 9/10 of 1%. how is a looking over their? vonnie: you pointed out the euro action, and that is what is setting the tone today.
11:32 am
it has been a wild since we have seen that mostly things to the euro. the attention really does turn now to the fed and who will be the next fed chair. with that said, we had a roundtripper yields -- round-trip for yields. the curve did steepen a little bit after today, which was mostly expected as you said. 83 basis points. i wanted to point out one currency, the south african rand. we are waiting to see if the s&p will do something about the budget looking a little grammar than the forecast. it is weakening by another 1% today. mark: let's get back to catalonia. the president said he was ready to call elections but got no guarantees o a vote would be held normally with safeguards. ben joins us. we assumed he would call elections. he hasn't. what is going on? >> nobody really knows what is going on.
11:33 am
the last few days have been pretty chaotic. the signals coming out of barcelona have been oscillating between one option and the other. either they will double down and declare independence or retreat region elections. this morning, it seemed like they were going to go for the retreat, but the other elements of this is what is happening in madrid, where the spanish government is preparing to take some powers to seize control of florida, catalonia. they don't want that to happen. barcelona,ntrol of catalonia. they don't want that to happen. mark: the separatists are at odds with each other. give us an idea of what that means and how interesting it makes this process. ben: to give you a sense of what the atmosphere is like, the first report came out today that
11:34 am
he was going to call elections rather than clear independence. the hardliners from the surface hisment gathered outside office in barcelona and started chanting things like "traitor." the tensions in the movement are extreme. weather that is enough to persuade him to enact independence has looked unlikely over the course of this week, but everything is very much up in the air. mark: it is, and we will be back to you as soon as we know more. thank you. on.s move it banks in europe reporting earnings today. big day today. berkeley plunging the most since brexit. our guests spoke with bloomberg earlier today and says do not panic after one bad trading quarter. really hasnce there not impacted our market share. market share has held in thei re given with the other
11:35 am
banks have done, but all of us expect a returned to more normalized levels and market revenues across the investment banking space. mark: deutsche bank shares also slipping today after reports of a 30% slump in third-quarter trading revenue. bloomberg'swith matt miller earlier today and said the company held share in sick trading. actually been holding shares, especially in fixed income markets where this quarter we were down 24%. if you put together our fixed income sales and trading and the financing segment, which is an apples to apples comparison with our peers, we have held share in that market. mark: joining us now to recap everything, bloomberg intelligence analyst arjun barry. who has a tougher job? who is under more pressure? arjun: that is a tough one. i think at this time, jes staley.
11:36 am
the ongoing fta investigation hanging over his head. that is putting him in a tough spot at the moment, but you would not want to be in either of those shoes at the moment. mark: you certainly would not. is the push to build up the investment bank at barclays, is approvinit proving wise or not? arjun: well, we are still yet to see any fruits of the investment they are making. they have said they are holding share. the point is that you're not gaining share, and that is what we really need to see. they are making some progress on costs, and they laid out a new profitability target today, but frankly, in order to get to that profitability target, it looks like they need to achieve revenues well above the top consensus figure in 2019. that seems very questionable. mark: and on the subject of achieving revenue growth, cryan has the other to the mass, this is what we want.
11:37 am
he is clearly not getting it. we know that a number of his main stakeholders want him to achieve that. otherwise, he could lose support. is he on borrowed time? arjun: well, you have to say at this point in time, yes, he is under pressure. results have not been coming through the way that he would have liked. again, we have seen another quarter, we expected it to be a week corner, but they are not showing any gaining versus their peers. while he is doing the things he can do in terms of controlling costs, they look set to achieve the cost target of 2018. still this question mark over revenues and how they improve performance. mark: why is europe underperforming? barclays is lower, wall street's drop was 22%, deutsche dropped 36%? why are europeans lagging wall street? arjun: i think one of the things
11:38 am
is the capital. there are still some question marks over capital around the european banks. raised capital early a year, but there is still that looming overhang of basel 4 when that regulation comes in. we are not completely clear about how much capital edging these banks have. don't forget the u.s. markets have been a little more active than the european markets. that plays into the hands of the big u.s. banks. mark: yes. announcing additional costs to cover 6000 job cuts today. from earningsnews in brazil. the early takeaway from the banks that are reported? what would you say? arjun: at the moment, it seems to be very much a mixed bag. on the whole, the investment banks are struggling. that is very much as expected. there are some
11:39 am
idiosyncratic issues there. as we have seen in a couple of other smaller spanish banks the reported, generally the picture in spain is one of improvement. we have seen revenues start to kind of growth they're -- there. we have seen loans stabilize. mark: great. thanks for summing all of that up on a busy day today. vonnie: fantastic stuff. i want to get back to capitol hill for a moment. house speaker paul ryan is speaking to reporters as his weekly news conference as ongoing. he says the house adopting the senate budget, which just happened a few minutes ago, is one step closer to tax reform. he also says he is leaving the details on tax reform to the ways and means committee headed up of course by kevin brady, the chief tax writer. earlier, kevin brady saying we will get details on the plan on november 1.
11:40 am
this happen because of the passage to the house today having already passed through the senate, which leads the way open for tax reform. let's get to force word news. -- first word news. >> opec and its allies will extend production next month. the limitless they stay in place pass the current expiration date. they stop short of making a commitment to prolonging the cuts. billionaire hedge fund manager ray dalio says his bridgewater associates wronged the equity markets. he said there is one thing to stay away from. ray: the actual return of equities and bonds relative to the return of cash in most asset classes continues to have a premium. the worst asset class you can have is cash. >> he says we are currently in a low return environment. in baseball, joe girardi as manager of the new york yankees. the team says he will not return
11:41 am
after 10 years.he let the yankees to within one game of the world series this season, and they won the world series under girardi in 2009. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. vonnie: thank you. coming up, the house narrowly adopting a budget resolution that is a crucial step in the gop tax overhaul plans. givingpeaker paul ryan his weekly news conference right now and saying he is leaving the details to the ways and means committee, which has already said it will impute tax overhaul legislation on november 1. we will be speaking with a congressman of kentucky, the top democrat on the house budget committee, in moments. this is bloomberg. ♪
11:42 am
11:43 am
11:44 am
mark: live from london and new york, i'm mark barton. vonnie: i'm vonnie quinn, and this is "bloomberg markets." let's get back to politics. u.s. politics and the house today in early a budget resolution that paves the way for potential tax overhaul by the end of the year it was a 216-212 vote that will allow congress to enact tax cuts that increase the federal deficit by up to $1.5 trillion over the next decade. president trump sent out a tweet saying "big news, budget just passed!" by the house floor, condiment john yarmuth said they don't want you to find out that it increases taxes on millions of middle-class families. , as many yarmouth joins us now -- congressman yarmuth joins us now. do you know what is in this bill? is that how you can confidently
11:45 am
say it benefits the wealthy? rep. yarmuth: we know what was in the outline that was put out several weeks ago, and among those items that were mentioned in the outline work eliminating the estate tax, which only , couples withe $11 million, eliminating the minimum alternative tax, which in the one year we know about donald trump's tax returns will save him about $30 million. they want to lower the highest rates. all of those things benefit very and we dodividuals, not know for sure what they are going to do with state and local tax deductions, but if they do eliminate the deductibility of those taxes in my state, half a million people will is an average amount. , the details are
11:46 am
not there, and that is one of our biggest complaints, that you cannot pass a tax rules that affect every american in every business corporation and do it basically in secret. not going to be any humans on this bill. just going to come out of committee, get marked up, and go to the floor. vonnie: we are hearing from kevin brady that november 1 is when it will be introduced in the market will start november 6. how much time will you have in congress to consider this and move it along? according to well, speak orion, he wants to get it done basically by thanksgiving in the house. that is a very short period of time when you are talking gossiping that affect everybody so dramatically answer directly. going to hear from also the people back home once this gets out if they do double the standard deduction. we will hear from realtors who
11:47 am
will say that if you double the standard deduction, even if you keep the mortgage interest reduction, you have way that interest deduction less relevant. we will hear from charitable groups say the same thing that even if you keep the terrible reduction, doubling the standard reduction makes that deductibility less relevant. you will hear from virtually because there is a lobbyist for every line in the tax code. i would doubt that a couple of weeks or three weeks will be adequate time to actually vet all of this proposal. vonnie: the president said it is many to give back $4000 to middle-class families. families in kentucky, have you done the math? rep. yarmuth: the analysis they hisrelying on there basically their faith-based assumption that corporations who save money are then going to automatically give their
11:48 am
employees huge raises. that is not what happens, at least historically it is not what has happened. ,ost of the estimates are that again with what we know, people making $50,000 to $150,000 might get $600 or $700 a year in benefits, but 42% of those in that category with children will have their taxes increased. again, the devil is in the details. we will be debating this in a very concentrated way, but very aggressively. vonnie: given that your hands thereed numbers-wise, is anything that democrats and those opposed to this can do to slow the process down if not stopped entirely? rep. yarmuth: there is nothing the democrats can do in a house. we don't have any procedural possibilities available to us. i think the public interest in this, weather is because of lobbyists here or citizens and
11:49 am
activist groups back home, i think they will slow the process down because it is going to be hard for them. they only get 216 votes to pass this budget resolution. depending on what they do with the state and local tax deduction and possibly with 401k's, there will be an awful lot of members who will be in a tough political spot and voting for something that affects that many people adversely potentially. you.e: our thanks to mark: coming right up, great stuff. a retailer is in focus today. national vision. shares are soaring. the ceo joins us next. this is bloomberg. ♪
11:50 am
11:51 am
vonnie: live from new york and london, i'm vonnie quinn. mark: on mark barton.
11:52 am
this is the european close on "bloomberg markets." investors are willing to pay up for national vision. $348 million, selling shares for $22 apiece. the fastest growing independent optical retailer in the u.s., boasting 62 straight quarters of same-store sales. shares in the company on the rise today. withbarinka joins us now national vision chief executive. alex: i am actually here on the nasdaq at the floor with the chief executive officer of national vision. this company has had 62 straight quarters of same-store sales increases. i bet that is why investors were willing to pay above the range for that target ipo size. growth seems to be what people are talking about.
11:53 am
how do you continue to deliver that now that you are a public company? nice we areis very the low cost provider of a medical necessity. national vision has a bunch of different brands that sell eyeglasses at a lower cost and i exams and contact lenses than most of our competitors. we have eyeglass world, walmart, and a variety of different websites like discount glasses and discount contacts. but when you are a lower cost than others in a category that become pretty extensive, you keep driving patients and customers into your stores and sites. alex: national vision has this long-standing relationship with walmart. when i look at what walmart is doing these days, they cannot opening as many stores. when you think about your store growth, where does national vision see the opportunities? reade: we see opportunities with continuing to expand our america's best business, and we will build 65 or so of those every year. eyeglass world, we build about
11:54 am
10 of those. with walmart, you have to river there are still on average 30,000 people a week who walk through the average walmart store. that is a lot of people. they are walking by the stores that we operate in the stores they operate and are still trying to save money on this important item to their life. alex: when you talk about these people coming to walmart and the advantages of being there, i think of convenience, which also brings me to this kind of new generation of perhaps millennials, who are increasingly needing corrective vision. this is a group that is getting used to the likes of parker and some of these online convenience suppliers. how do you continue to jockey against the competition, especially this kind of internet online-based competition? alex: it ireade: it is interesting. people's eyes go bad as they age as they spent time squinting as screens. we are a healthy business among millennial's as well. it is curious in our category.
11:55 am
a lot of online players like you mentioned said they were going to come out and sell online classes and they are opening stores. it seems eyeglasses are a category where people still like to go to stores. they need to get their eyes littled, but is also a product that can fit in a lot of different ways. people still like to try on these products. alex: companies these days are trying to limit how much they are spending on employee benefits. vision care comes to mind. has this changed how you are employer saying, hey, we do not want to pony up as much? reade: vision insurance is a nice part of our america's best eyeglass world and walmart business. however, of all the chains out there, we are the least developed in that way because we are overdeveloped in noninsurance. what is your money, you seek out real value and you come to our america's best and eyeglass world and walmart stores to do that. we are good with americans sticking with their vision insurance. it is good for us.
11:56 am
by noninsured people find value. alex: thank you for joining us here at the nasdaq. the stock is trading up today on its debut. back to you. mark: great job. let's move it on. coming right up on bloomberg television, chief u.s. strategists equity strategist at citigroup on earnings, whether the stocks can sustain their record highs. want to leave you with what happened with european equities today, a day dominated by the european central bank. european equities cutting the bond buying program to 30 billion from 60 billion euros kicking off in january.this is bloomberg . ♪ who knew that phones would start doing everything?
11:57 am
11:58 am
entertaining us, getting us back on track, and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that.
11:59 am
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. york,: it is noon in new 5:00 p.m. in london and midnight in hong kong. i am vonnie quinn. shery: i am shery ahn. welcome to "bloomberg markets." ♪
12:00 pm
from bloomberg -- vonnie: from bloomberg world headquarters, here are the top stories that we are following. adoptrepublicans narrowly a budget resolution, freeing up the release of a tax bill next wednesday. the success depends on the details of that framework. . busy day on wall street 71 equity 500 companies reporting earnings, so far mostly good. tobias levkovich is coming up right now. staying with earnings, twitter is trending again. shares are getting a boost after they beat sales estimates and added more monthly active users, showing some signs of life. let's get the roundup of what has been going on in the market. we had the massive ecb morning. julie: it is more

12 Views

info Stream Only

Uploaded by TV Archive on