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tv   Bloomberg Markets Americas  Bloomberg  October 30, 2017 12:00pm-1:00pm EDT

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bloomberg markets." marning: mark: the top stories we're covering on bloomberg and around the world. robert mueller's russian probe with manafort and one time business partner face charges including conspiracy against the u.s. and money laundrying. president trump prepares to end weeks of suspense by naming a new chair of the fed this thursday, according to people familiar, he's leaning towards jerome powell but his backing isn't final yet. and hsbc's big bet in asia may finally be paying off but to its surprise, low growth in china led the region's revenue gains, operating costs came in higher than expected and we'll hear from the bank's finance director this hour.
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a look look at the european equities trading and we're 30 minutes away from the end of the monday session. stocks are holding on. look what's happening in spain, no big impacts on equities from the government's plan to take over the administration of catalonia, the "best up 2.8% and sterling up ahead of the b.o.e. meeting this week when it's widely expected to raise interest rates for the first time in a deak. bond yield are falling commodities and your final two columns today, i want to get to novartis shares who agreed to buy advance accelerator applications, $3.5 billion in cash, forming up a pharmaceutical company whose drugs are used to diagnose and treat diseases such as cancer and novartis' head joseph jimenez is stepping down after eight years at the helm and announced $30 billion in deals
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the last four years, the company hunting for assets to bolster its business in areas away from cancer, cardiovascular disease, and more m & a is considering a merger with u.s. rival exeltor coating systems to keep the embattled paint company de terent. a deal would come desperately of the specialty chemicals business including the return of the vast majority of net proceeds to shareholders and very quickly e.t.f. cutting forecast for 2017 power output and earnings following delays in restarting for its french nuclear reactors, interest, taxes and appreciation and amortization will be in the range of $13.4 billion euros versus the previous forecast of 13.7 to 14.3, e.d.f. earnings are under increased pressure as
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the utility plans to spend roughly $48 billion yearos in 2014 and 2025. to prolong the life of most of ts 58 french nuclear reactors. e.d.f. shares, vonnie, down by 2/3 of 1%. what's happening in the u.s., julie, let's have a look [julie: we've gone from mixed to slightly lower for all three major averages and it appears the headlines vonnie was talking about a bit earlier just attributed to a source and in talking about a more gradual phase-in of a corporate tax cut may have taken u.s. stocks down just another very slight leg so all three major averages now in the red. but one stock that is decidedly in the green and has been climbing throughout the session but surging more recently is matel. those shares spiking and the best performers in the s&p 500, annalist garrett johnson, saying matel can look at the
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toymaker as a sale from a company perspective or breakup value. we've got some technical issues so i'm going to go ahead and call it up on my bloomberg so you can look at it. there it is. of course it comes at the same time. the shares are now up by 10% and plunged last week following earnings if you remember and this analyst is saying mattel's brand and manufacturing footprint could be worth more than $10 billion in their current state. mattel could add value to a entertainment conglomerate. elsewhere we're watching bit coin once again. bit down shares are at another record, above $6,000 each now and we're looking at 6064, you see the gains we've seen this year. bit coin's total value is just over $100 billion and means it makes up more than half of the overall market for currency and there are implications for u.s. companies as well. we have a couple analyst calls that mention those implications for a couple chipmakers, a.m.d. shares are trading lower and
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rgan stanley downgraded them to underweight saying they're slowing momentum and there's a potential for gains for crypto currency to fade and there's been talk of the various chipmakers fueling the mining of bit coin to underweight but in videos go the opposite direction, not by much but up 3/4 of 1% as r.b.c. capital said that in part this company is going to continue to benefit from crypto currency trends. so in the opposite direction. quick check on the treasury market with all that's going on with central banks including the fed this week. i'll look here. we're looking at a 10-year yield which has been in this range but broken recently above 2.4% and looking at treasury volatility on the bottom but there are questions whether it can sustain those gains. all these calls for an end to the treasury bull market here jeff's last s of name, mark. but now there are questions whether it indeed is at an end. mark: you've got it, julie.
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let's keep a focus on the fed. a white house official said trump will announce his pick for the fed chair thursday. people familiar with the matter say trump is leaning towards fed governor jerome powell, however, they caution the president's choice isn't final and could change his mind at any time. joining us from hanover, new hampshire, is dartmouth professionor andrew levin who was a professor under better than aingey. if it is jerome powell to be nominated he would be the first noneconomist since the 1970's and the first fed chair with financial experience since the 1980's. what does it mean? andrew: the president narrowed down the field to three people about a week or 10 days ago. janet yellen has done a great job and he could reappoint her, another choice was don taylor who is a very distinguished
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professor at stanford university, a brilliant economist and impeccable reputation. it looks like president trump jay to be leaning towards powell and he's at the board and been working there the last five years and consistently supported the fed's current policy framework and strategy. so i think he's viewed as a safe choice. that it's not going to make any major changes in the fed's monetary policy framework. hopefully some room for improvement and in the clarity of the framework but basically a pretty known quantity. mark: you expect it to change, then, the clarity of the framework? andrew: well, i think that there's definitely room for improvement, as i said, for example, the fed is meeting this week and they're going to issue a brief statement on wednesday afternoon at 2:00. but there won't be a press conference, which means that it's very difficult for them to make any significant policy moves this week. no one is expecting them to do
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that. it would come as a shock if they did. one improvement the fed can make is to have a press conference after every policy meeting. that's what the european central bank does and the bank of japan does. that's something the next fed chair easily could decide to do. vonnie: in a sense the fed can do anything it wants and the chair can call an unscheduled press conference at any time, right? it's not up to the press conference schedule to dictate the pace of hikes or forward guidance or anything like that, so there is that. but i also want to ask you -- andrew: can i interject for a second? it's true that it can be at any time. in fact in the old days they used to sometimes have a policy decision in between the regularly scheduled meetings that became very rare. why? because they want to communicate clearly to markets so that it doesn't create sudden volatility on a single day. the fact there isn't a press
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conference is why markets now see a 99% chance of no action this week. if they were to take an action, it could be disruptive to financial markets. the fed knows now they want to avoid itened it creates an east coast will inreup they could -- equilibrium and it's costly and they could wait until december. vonnie: has it been effective or does it change, the dop plot? andrew: it's a survey, an opinion poll. i think what the fed needs to do is start having a clear strategy that they agree on it as a committee and they could do this once a year in january at the organizational meeting and step forward, what's the strat they'll take on for the coming year and it might be the same as the previous year or a little different and the chair could go to congress in february and explain to congress what the strategy is and explain the markets and
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explain it to the general public and they could change the strategy during the year but generally if it's a good strategy, a reasonable strategy, they might make some slight fine-tuning adjustments but they'd follow that strategy for a while and see how it works. i think that's the direction they should go. i think the fed could voluntarily decide to do that. it could be that congress decides to pass legislation that would require the fed to have some sort of clear strategy. but again, there's room for improvement. mark: and on the inflation target, professor, some might say that there's room for improvement, especially actually reaching it. is this an issue that needs to be addressed under the next fed chair, you know, the credibility of this inflation arget? andrew: yes, and in fact janet yellen mentioned it in the q&a of one of her speeches and noticed the consumer
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expectations going forward have dropped half a percentage point over the last few years. it's not surprising because actual inflation has been continuously on the low side for the last five years. the fed has unanimously affirmed that 2% inflation target but they've never hit it n the past five years. j. powell voted for it every year and all the colleagues supported it and congress had bipartisan support for it and it's a benchmark how they'll figure out to have a strategy that's consistent with hitting that target over time. mark: just a final question, professor, how well placed is the fed to whether the next recession? andrew: this is something i'm worried about. i think in the last two recessions, the fed had
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breathing room to cut interest rates by 5%age points. in 2001 and again in 2007 and 2008. now it looks like the new normal interest rate for the fed might second base% or 2.5% which means they don't have nearly as much breathing room to respond to it. one possibility is to launch a qe-4. there's questions about how effective it would be and the politics of it, of course. and another possibility they should consider is cut rates below zero and what e.c.b. and other central banks have done the last few years but the fed needs to figure out the contingency plans and how to respond. mark: andrew levin joining us from hanover, new hampshire. joining us on wednesday for our special report, the fed decides, 2:00 p.m. eastern right here on bloomberg television. don't miss it, vonnie.
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vonnie: we have first word news. >> president trump's former campaign manager paul manafort and ex-associate have become the first people charged in the investigation of russian meddling in the election. they face charges including conspiracy against the u.s. and money laundrying. the charges indicate that special council robert mueller's probe is intensifying and could pose a danger to the white house. meanwhile, a former foreign policy advisor to the trump campaign secretly pleaded guilty to charges in the mueller probe. george popadopolus admitted making false statements to the f.b.i. and suggested donald trump meet with leaders during the campaign. and the government is cracking down on leaders of the catalonia independent movement. regional officials will be prosecuted on charges of rebellion. the attorney general has stopped short of ordering their
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immediate arrest. global news 24 hours a day powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg markets. mark: coming up on the close, we'll take a closer look at paul man forth's background and how he made millions of dollars promoting kremlin's friendly interest in the ukraine. that's next. this is bloomberg.
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vonnie: i'm vonnie quinn. mark: counting out to the european close in 14 minutes time. let's go over the indictments against foreign trump campaign advisor paul manafort. in a 12-count indictment he's
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accused of laundering $18 million to support a lavish lifestyle including buying u.s. real estate and defrauding financial institutions that loan money. bloomberg reported manafort made millions of dollars promoting kremlin friendly interest in the ukraine over the course of the decade. joining us for more from what we know about his history is bloomberg's senior writer stephanie baker. what do we know? what kind of work did he do in the ukraine and for how long? stephanie: well, he worked for the party of regions which was loosely pro russian party in ukraine headed by yanakovic who became president in 2010 and paul manafort helped on all their campaigns from 2006 to en yakovic was ousted in february of 2014 and fled to russia. and manafort continued to work for the successor party of the
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party of regions in the ukraine in 2014 called the opposition block so he had a long-standing interest there. obviously yenakovic's relation shipp went back and forth but the key thing that drove him from office is when he decided not to sign an agreement with the european union and ally himself with russia and that's what eventually led to his downfall. mark: how lucrative was that work for manafort? >> extremely lucrative. manafort finally filed under the foreign agent registration act and reported income of $17 million between 2012 and 2013. according to the indictment we have today, mueller believes that he channeled $75 million through offshore accounts in cyprus and laundered $18 million of that. that's a huge amount of money. and he goes into great detail
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about how the scheme that they set up to sort of hide that as income. using these offshore companies to pay for things like house renovations and gardners and you know, men's fashion shopping sprees that he did. so it's actually makes for fascinating reading and includes many more companies than i realize. i knew many of these companies having poured through cyprus accounts, some of them are indeed new. vonnie: stephanie, mueller has a wide net but how does all of this correspond to his probe into how russia might have influenced the 2016 election because that's ultimately what he's looking at. stephanie: yes, he does detail funding that goes through 2016 and 2017 but you're right there's no specific charges of collusion or details of contacts between manafort or his associate rick gates and
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the russians. i think the more significant indictment that came down was that mueller handed out today was against george popadopolus, a foreign policy advisor to the trump campaign and he'd been in touch with a professor in london who told him moscow had dirt on hillary clinton in the form of emails. that is a far more damning indictment and goes to the heart of what mueller is supposed to be doing which is unpicking the allegations of collusion between the trump campaign and russia. vonnie: exactly, what does manafort say with connection with russia himself? stephanie: manafort has maintained he was advising yenakovic, the president of ukraine, to look west and be a bridge between east and west and he wanted him to sign this e.u. association agreement and that he ignored his advice on that. now, of course he was playing
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the game that you do play in ukraine to get his preferred candidate elected which is to play off tensions between ukraine's russian minority in the east and the rest of the country because that is where yanakovic's base was in the east and we know that area of ukraine was innovated by russia and was the subject of the current sanctions we have against countless russians right now. mark: why, stephanie, might have wanted manafort to run his campaign? stephanie: like him or loathe him, he's known as a very astute political operator and particularly very good at running conventions and making sure that he can line up all of his delegates. he's a very savvy operator, absolutely no question about it. he knows how to run a campaign and he knows how to run a convention. you know, he at that time when he brought him on, remember, trump's campaign was a bit of a
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mess. he did, you know, bring order to what was a bit of chaos. he was only there about six months and of course then steve bannon came in and took over and the rest is history. mark: thanks for joining us. .loomberg's stephanie vonnie: we'll hear what ian told bloomberg about the latest blockbuster results and the plans for the future. this is bloomberg. ♪
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123450 mark: expenses came in 6% higher than expected and bloomberg spoke with the bank
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finance director in makai about results. >> the bank completed its repositioning and peter boyles and the c.e.o. has been hard at work over the course of the last three years, really shaping the portfolio to better match that of our other three businesses. we have a lot of cinergies between the private bank and commercial management bank and global bank and market and peter and his team have largely completed the repositioning and we really see that in terms of the competition of our assets under management aligned to our key markets. i have assets under management it continue to improve and will start to see that coming through the revenues and the profitability of the business in the coming quarters. mark: tell me something, one of the reasons we're attributing your numbers at the moment to deposit income growth here. how do you sustain that, that will be a challenge looking ahead. iain: we've got an incredibly
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strong deposit base across each of the markets in which we operate and we very much stick to a principle of building our deposit base before we go out and do landing and that's reflected in our asset to deposit ratio that's over 70% this quarter. mark: hsbc finance director iain mackay speaking earlier. we move to the close in roughly four minutes' time. stocks are little changed, slightly up to the stocks 600, declines in london gains and frankfurt declines in paris, most of the big action in the u.s. with the nomination of the next fed chair and of course the fed meeting. the b.o.e. meets this week. this is bloomberg.
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no one else lets you do that. 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 live from london, this is the european close. stocks finishing higher up for a third consecutive day. that is october the third after
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rising for the six week last week. oil and gas, telecom leading the advance. eight -- hsbc is bearing fruit, driving its third consecutive increase in quarterly revenue. goal of our hands over the reins. a share lower. coming in 6% higher than analysts had expected. instead of looking at the spanish-german ten-year, let's look at the italian-german spread. the spread is the narrowest as it has been since last year. on friday. italy's credit rating was raised one level by s&p global rating sightings. prospects and subsiding banker. the new ranking b, second lowest investment is on par with those committees. it is emerging from its longest
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resection -- recession. the government also planning to lower its debt to 131 .6% of gdp. from 132% gdp last year, the euro is up against the dollar, coming off its worst week in almost a year. euro by one point -- sank by 1.5% last week. the close on friday was the weakest since july 19. the euro has fallen 3.5% since that 32 month high, the high for the year on september 8. how is it looking over their? vonnie: there's so much competition with all of the stories that are emanating. the most recent story about the tax phase in which we are from sources to bloomberg suggest --t the tax cuts to at least corporate tax cuts would phase
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that19, 2 thousand 22 and will happen much slower than the market had been anticipating. that has implications for revenue and income for the government which might mean that deficit would be ballooning faster than we thought. all of that is having an impact on the market. treasury buying. in the last few minutes, the -- that is been exasperated. same with the yen. you can see the impact on the yen. the 10 year yield up 2.37%. we are running into the month end. crude oil off its high of the day, 50 four dollars a barrel. that is wti. a look at cmm, resident of brazil is out of the hospital this morning. some uncertainty weighing on brazil stocks. i did want to point out the china bond market. there is a lot of trepidation
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out there that might amount to something more than it is which is a bit of a selloff which is also bleeding into chinese stock markets. mark: the next five days will be a game changer for bond trade. ifwednesday, the fed decides it will keep interest rates steady. they will be heading for its first rate increase in a decade on thursday. president trump is expected to announce his choice of the next fed chair, according to a white house official. economists present the employment in the u.s. by 300,000 in october after hurricanes clouded september payrolls. all of this at a time when 10 year yields are at a new range. here with more on the direction ofjohn stopford, head multi-facet income.
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fears in as confront week that might change everything. is that melodramatic, or given the hurdles i mentioned, is this a week that could change everything? john: i think it is almost certainly an eventful week. as you pointed out, there are big events. half of the ones you mentioned, the bank of england's move might be the least exciting. if the markets is to be believed. people seem to think it is a done deal. maybe carney will be an unreliable boyfriend again and not do anything, markets not pricing that. more important is the direction of the fed going of who trump appoints. said, theas being market is looking to see what can be passed by u.s. congress and fiscal tax cuts policy. both of those could significantly change the move of yields over the next year or so. mark: where does the 10 year
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head? john: i think the market would take that with relief. it seems as though over the weekend he is now the clear front runner. some of that is potentially in the price as well as this beingle news of tax cuts phased in. both of those are probably good news for the bond market and may be partly white yields are lower today. vonnie: let's take a look at this chart on the bloomberg it shows they, range we have been in a for what seems like forever on the 10 year yield. the move index which shows very little volatility. talk to us about the range on the 10 year. do we ever break out of it? john: i think, certainly we do. current term is they are well angry. they are well anchored because they are driven by low inflation and disinflation pressures, low growth, and so on. the things that can probably
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change our monetary policy, which has been a real help to bond markets for a long period of time with central banks adopting negative interest rates , extraordinary policy and so on. that era seems to be coming to an end. clearly the other big thing as we have a material boost through fiscal policy. i think both of those potentially are risks to the upside and in the short-term, on inflation, clearly the market has given up on u.s. inflation moving back toward target. we think there is a probability that we can get back toward 2%, towards the middle of next year. all of those things we think maybe puts cyclical upward pressure on bond deals. think is range we around these levels or slightly higher rather than materially higher for the foreseeable future. vonnie: december rate hike or no aside, do you foresee three straight right -- rate hikes as they fed does, and if not, why isn't the fed adjusting its view
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of 2018? john: i think this year for the thet time they fed met forecast they put out last year, or have done so so far. -- the fed has been liked before -- has been like the boy who cried wolf. every time they say they will raise rates come up until this year, they have under delivered. i think the markets got used to that. is under inflation delivered as well. i think there are reasons why the market is skeptical. if we do see growth, if we see tax cuts, but also if we see inflation come back, there is every reason they fed potentially would follow through on three rate hikes next year. mark: coming back to the bank of england, you say highly likely they will raise rates, is it one and done? that is the message matters more than the move. john: that would be our
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assumption. if you look at the dates coming out of the u.s., inflation was peaking. it was largely about sterling. growth is likely to disappoint. there are lots of indications it is under pressure. there is uncertainty for business around brexit, sterling has picked up a bit which takes frompward dynamic a way inflation. all in all, it is hard to see why there is any particular urgency. we still have a committee that is split on that. our senses they may do something because they essentially said they would, and they have got to this point. it is hard to see why there should be a rite aid -- rate hike at this point. too much weighing on the u.k. economy without adding interest rates. mark: what part of the global market is valuable? john: pres. trump: we like the perth -- john: we like the peripheral bowl block. there, in the short run, it
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potentially means stable to lower interest rates. australia, the economy has slowed down a lot. inflation is not playing ball. the bank of australia, we think it is on hold for the foreseeable future or could cut. canada, it was -- they have done it before. they have raised rates against market expectations. now the economy is slowing hard. the governor there is backtracking quite significantly. those are markets we think offer value. in somethingricing of a series of rate hikes, middle part, it looks relatively attractive. mark: john stopford asset manager. vonnie: fascinating. time to check in on first word news. in the u.k., prime minister theresa may's government is planning a charm offensive on
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brexit. brexit secretary david davis will try to win over skeptical european union -- leaders as part of a -- the u.k. wants to move past that having talks on future trade relationships. kenya's election committee says the president has won last week's rerun election was boycotted by the main opposition group. election officials say he got 4 million votes or 90% of the votes that were cast. he was also declared the winner of a presidential vote in august, but that election was nullified by the supreme court. many people across the northeastern united states are cleaning up today and are still in the dark after severe weather have -- pounded the region. drenching rains left one and one million people without power. southern new england has suffered the brunt of the storm overnight with many reports of down trees and power lines and impossible -- in passable roads. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.
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i'm nabila ahmed. this is bloomberg. up, chris baldwin is the ceo of bj's hold sale -- wholesale club. we will find out how they keep up with the likes of internet giants amazon and now that amazon has taken overhaul foods. this is bloomberg. ♪
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♪ mark: live from london and new york, i'm mark. vonnie: i'm vonnie quinn. this is the european close on bloomberg. time for our stock of the hour. isanced micro devices slightly lower. abigail doolittle is here to tell us why. abigail: this has to do with bitcoin. bitcoin is higher by about 5% that we have morgan stanley who
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has cut its rating to underperform. a big piece of it is bitcoin. the tailwind of bitcoin, that ship has sailed. if we talked -- happen to the bloomberg and take a look at the chart, we can see the correlation over the year in why pointe bitcoin in blue, -- both have been trading higher. a in gm up more than 30%. bitcoin tyer at above 6000. amd taking a sharp plunge. lest we come out on the disappointing guidance, down on the year. a big drop on there. the other reason for the downgrade is micro price processors thinks they will not be able to hit the numbers, it will require 60% growth. it sounds like he thinks that could be difficult. vonnie: stock of the hour, thank you. bloomberg business flash,
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a look at some of the business -- some of the biggest business stories. in is second feet, goldman sachs chief executive says the bank is still investing in its big european headquarters and is expecting to fill it up. he suggests policymakers will , saying so much as outside his control. wall street could arise for the second straight year. state controller thomas says the industry set aside about 4% more for compensation. compared to a year earlier. profit among security firms surged more than 30%. but is the latest bloomberg business flash. in june, we learned had agreed to by whole foods for $13.7 billion. on thursday, amazon reported
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sales had topped analyst estimates. it ensured that eight -- that the company could include whole foods. b.j.lear -- player is wholesales who thrives some effect percent of its total sales from the groceries. joining us from boston to tell is how he keeps his business ceoh is chris baldwin, the with 211 clubs, 126 gas stations. quite a big footprint. to the subscriptions club, growing, stagnating, or declining? chris: thank you for having us. we feel great about our business at bj wholesale club. our business is healthy, vibrant, and growing. we believe the value retail business in the fates will continue to be a big growth driver for both consumers and investors. vonnie: at this time when amazon is in an all-out war with
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walmart, for customers, particularly digital customers, how do you compete with that? chris: we think our proposition is enough to compete effectively in this challenging marketplace. as you think about it, jpmorgan did a nice job with sell sign analytics. they talked about the pricing proposition available with value-oriented retailers versus a newly combined bricks and mortar and online retailer. what the reports did simply is pricing at value retailers can be as much as 50% below our competitors online. when you deliver that the value proposition to american consumers, we can win just fine. vonnie: 20 talk about your proposition come you are also talking about pricing. that is the only thing that wins over consumers. is that true? chris: far from it. we think the the -- the culmination of value and fresh is what makes us different. you deliver groceries -- we have groceries available for 25%
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below our grocery competitors. we also deliver fresh really well. whether it is online produce -- whether it is produce or as fresh as you can be in the apparel business, a business that is growing in the mid-themes. we think that business can be a big part of our proposition. vonnie: private equity brought -- bought you out in 2011. at some point, does private equity try to make an exit? might now be the time? chris: we think -- we feel brick -- great about our business. our business is healthy, vibrant, and growing. we feel good about our proposition in this environment. vonnie: on the other side of things, you have family dollar and dollar general. we did a story about how in this environment, the consumer is not healthy enough. these are the stores that are growing almost more than any others. you also have to compete with
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the dollar stores. how do you do that? chris: once again, it is not about price. it is about value and fresh. the combination of our pricedtion, well groceries, plus a great fresh food offering, plus terrific apparel, the combination is what make our members believe a membership at b.j. wholesales club is worth it. our membership is growing nicely. vonnie: can you give us any figures? chris: we believe our membership business has been growing in the mid-single digits over the last couple years. we think the feud -- we think the future is brighter. vonnie: if amazon and walmart continue to lower prices, do you think you can hold on to your core subscribers? have a weabsolutely have been successful in competitive activity. we run a low-cost business. our ability to continue to compete effectively requires us to drive cost down. we are doing that with technology. we are adding technology to make the trip convenient. things like express scans that
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allows consumers to go through the club, check out their items, and not have to wait a line is a differentiating factor. how do you compete on the delivery side? you work with instant card, how is that partnership going? chris: instant card has been a great partner. we love people to reserve orders online and come to the club and pick them up. what we have found is consumers are willing to come to the club, pick up what they have ordered online, and end up filling their baskets with twice as much as what they ordered online. where can -- are encouraged on that. vonnie: how have your margins been affected in a last quarter to two quarters? chris: our margins are fine. we feel good about the value proposition and our ability to continue to deliver not only margins but the value of propositions required to be successful. vonnie: any prospects of opening more he venues -- of opening more venues? chris: we are really encouraged
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by the opportunity we have to open new clubs. we opened one last year in kearny, new jersey. we opened one in summers phil, north carolina. we have four or five scheduled for the next several months. we are encouraged for the possibilities. vonnie: chris baldwin, we appreciate your time. thank you for speaking us -- speaking to us. mark: fantastic interview. is the fed market sending a warning flag for the u.s. market? this is bloomberg. ♪
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♪ vonnie: it is time for our global battle of the charts. taking a look at some of the telling charts of the day and what they mean for investors. you can access these on the bloomberg by running the function at the bottom of your screen. kicking things off in new york.
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>> thank you. . am looking at the yields we have been talking about this. people have been scrutinizing the u.s. yield curves for rent the u.s. economy is going. if this is any indication, it is narrower. you can see blue line -- the blue line is that yield curve. you can see it getting smaller and smaller. this is a gap between 10 year treasury and two-year treasury. what you see in white is the let's -- position on ten-year treasury futures versus two-year treasury futures. this indicates most likely this flattening trend will only continue in the weeks ahead despite the incredible good data we have out of the u.s. ma positive economic surprises. this flattening trend seems to be headed for more. vonnie: we will get more of those positive surprises. lisa, thank you. take it away, mark. mark: i know you like talking
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about china. i picked this one just for you. is pessimism in the chinese bond market spilling over into stocks? you have to say yes. shanghai cell the most in august -- fell the most in august. extending bond yields their monthly rounds have been concerns the government will set up -- step up those efforts. on friday, the shanghai rose to the highest level since the end of 2015 after rising temper sent this year. china's 10 year yield has risen 30 basis points in the last month. the highest and three years. accelerating inflation, the risk to china will follow the fed in raising interest rates. casting a bit of a shadow over the chinese bond market, which might well be spilling over into the stock market. for your favorite
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topic, china. g #btv 3556. vonnie: we are laughing because there was a transparent strategy, and a beautiful strategy. i think you know me very, very well. beener day, i would have all overly so. im going to make it aside. congratulations to both of you. stay tuned, the white house news briefing is coming up at 1:15 new york time. an important news briefing today, we will bring all the headlines including any remarks on special counsel robert mueller's investigation. house news briefing, 1:15 eastern. this is bloomberg. ♪ is this a phone?
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so all you pay for is data. 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 david: it's 1:00 in washington, 1:00 a.m. and hong kong. >> i'm david gura. i'm shery ahn, welcome to bloomberg markets with a focus on the intersection of politics
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and the economy. federal investigation into whether president donald trump's campaign colluded with russia takes a major turn today. three people have been charged with crimes ranging from money laundering and tax evasion and lying to the fbi. president trump took to twitter to say any wrongdoing by robert mann afford predated their relationship and there was "no collision involved." presst the start of the briefing this hour for an official response. we will carry that for you live. all the drama surrounding the white house, president trump's tax reform plan could be considering a five-year phase and for the corporate tax rate cuts. we will discuss that in a moment. ♪ david: president donald trump's former campaign ma


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