tv Bloomberg Daybreak Europe Bloomberg November 27, 2017 1:00am-2:30am EST
♪ anna: good morning from bloomberg's new european headquarters. i'm anna edwards. manus: i'm manus cranny. these are today's top stories. anna: racing against the clock. the u.k. has a week to find compromise on the irish order. this is a political scandal threatens dublin. manus: republican lawmakers scramble to lock up votes analyze their dollar -- tax bill. anna: oil trade near the highest level in two years. manus: another day, another record. bitcoin shows velocity.
♪ anna: very warm welcome everybody to our new headquarters in london. the confirmation of jerome powell there this week and u.s. tax. on the risk radar, we've looked at the political story in the u.k.. .he pound down what can be done to enable progress to move on to the tray conversation? on the oil price, we are down by .41%, but not high -- not far from the highs. abouting coming to talk output cuts.
and next the tea, what is xp t, it's that coin. rally of 17%. of 40% in the past two weeks. up 800% year to date. is the cryptocurrencies going mainstream? is it covers investors or fear of missing out? manus: breaking news. there is a new ceo at julian bear. julius bar -- julius baer. holder is the new ceo. the board of directors has
appointed him with immediate effect. they look back at a very successful year. strong operating momentum. he has been the chief risk officer. he was named deputy ceo in 2017. he has been a member of the executive since 1998. not a shock at all. let's talk about another man's shoes. jeff bezos over at amazon. it was black friday, today send -- cyber monday. american spent $5 billion. his wealth went up. online purchases up 18% over last year.
this over $100 billion. only the second person to build that value. the first person was bill gates. anna: lots of good conversations to come. we are going to be joined by a great lineup of death -- guests. we will talk brexit with the u.k. finance ceo stephen jones. he will join us later. next hour we will speak to peter redfern. let's get a bloomberg news update. thank you. in the u.s., republican lawmakers are scrambling to lock up votes for a tax bill back can make it to donald trump's desk by the end of the year. nonpartisanis by a theet office estimates extent that the bill will
increase the deficit. but he did not chance to check economic growth or employment. decideal judge must which people holding competing consumer guide the financial protection bureau has the right. a motion has been put into block donald trump from being able to install mick mulvaney. sunday mulvey -- three compromise with northern ireland. brexit will not lead to a new check of powers.
she says the future of the border can only be settled with the final trade deal. confidence with steel producers waned. sentiment among businesses improved according to the earliest involvement indicators. china's leaders underlined a shift to more sustainable growth rates and to cut pollution. the world's second-largest economy is on a long-term slowdown even though output has exceeded expectations. lois -- local currency debt score as been cut to junk. it also threatened to slash its ranking to the same level, raising the risk of a selloff. it has been placed on be aa
three. downgrade.le iraq says it plans to work -- to return to the global bond markets to raise my capital. 2018 budget will be to. 2 billion. >> have you hired banks yet? >> we have to get the approval of the budget first area -- first. juliette: let's get a check of markets in asia. we have had a fairly negative session coming through. .25%.kkei falling
the hung saying is down. downe heinz saying that is is down.ng send ig having a look at some of the movers, i should say samsung the worst performer. down 4.8%. morgan stanley down -- on a tear with some downgrades. it is expecting samsung to be trading at 2.1, down from 2.9. some profit taking coming in. boe tech down by about 9%. nintendo up by 2.4%.
it looks like nintendo switch was one of the biggest sellers on black friday. thank you very much. it's a big week in washington. republican lawmakers scrambling to lock up the votes needed to finalize the tax bill that could make it to the president's desk by the end of the year. should hold a make or break floor vote as soon as the 30th. for more on all of this, let's get to jody. republicans want to get this tax bill by the other the week. was the biggest hurdle? they want to see this past and reconciled with the house but in of the year. the hurdles are they can only afford to lose to votes. and a very tight margin
there is very little room for error. byre are still some concerns some members about various things. ron johnson from wisconsin is very concerned about how pastor businesses are treated. through businesses are treated. others are concerned about the deficit. it would add as much as $1.5 trillion according to him studies. -- to some studies. havemoderate members expressed concern about the individual mandate repeal. there are a lot of different things that could turn up the heat for some members. they want to vote by the end of this week. it's a tight timeframe. anna: good morning to you. if the legislation does pass through, was the likelihood of getting a bill to president trump by the end of the year?
they still have to reconcile various bills. >> that is right. the house in the senate have to pass the same exact bill. the house bill that was already past is different than the senate. thing, ithange one can be difficult. it is a hurdle. the other thing is the timeframe. they are talking about doing this by the end of the year. like one dozen legislative days and that is not a lot of time. there are a lot of things that could happen to derail it. the president is going to be pushing for this in the coming days. they need a legislative win at the white house. they haven't had one. manus: we are going to get
jerome powell. the confirmation. what do you think it will be like? he will still need to go to the senate floor. this is just the first confirmation hearing. interestingly, the day after he , the current fed chairman janet yellen will get what is perhaps her last testimony in front of the economics committee and it will be interesting to parse the differences between what they say which will give us some indication of what kind of chairman jerome powell make. there's not a lot of opposition growing. we expect we will get a sense of policy issues going forward. weedscould be some in the
walkie kind of questions that kind of -- wonky questions. matters how the senators fillon that day. it will be an interesting test of his views. thank you very much. the lies ahead for political story in the u.s.. me,s, you mentioned to boris collardi is going to join the board of partners of pick tech -- of pictet. holder has been at julius
baer for over 12 years. talk to jane foley. she is our first guest on our new set. let's talk about the u.s.. there are many things that could move the dollar. inflation, and powell. it's a perfect concoction but i think it will be the tax reform. of u.s. fiscal reform has been the biggest driver of the dollar. whether or not i can sustain depends on the senate vote. we had ron johnson say he cannot vote for this. they can only afford to lose to votes. -- lose two bvotes.
we hear that the senate is plenty to change the bill to try to get past. if they pass it, i think the dollar will go up. if they don't, the dollar will go down. gross we also get dollars. it could be a double punch. jane: the risk is we can have an upper division. but if you look at a survey of at trump's 3% ambitions, there is a lot of skepticism. economists don't think that's really feasible. we need reform to change the perspective to see if that can be achieved. for now, the market is not think that can happen. anna: it could have a big impact on the dollar. he could have a big impact on
stocks as well. also, what jerome powell looks to say. we have a chart here on the s&p. that still works. where do you think we're going to be guided to buy jerome powell? jane: when he was confirmed there was not a lot of reaction in the market. he is a known commodity. he is considered to be fairly yellen-like with respect to the economy. it will be anything yes to say on regulation that will be more interesting to the market because regarding no what he thinks about the economy. we have a chart, it is
their right to go, we are going to get personal consumption the industry data. let's have a look at this. afraidstarting to become that a few scaredy cats will grow to many more officials next year if core pce inflation does not show the signs of moving up. this is the issue. the few scaredy cats could turn into a mass. there's more than just a few scaredy cat. without a speech from yellen and she has indicated she is quite concerned whether or not inflation can creep up. if we look at other central japan, we havea, seen similar impacts where we have tight labor market yet
failing to generate wage inflation. it'sut wage inflation difficult to anticipate cpi inflation. manus: stay with us. the conversation continues on radio. if you are traveling to work, it's on your mobile device. europe'sing up, as biggest economy as is closer to a new government, we discuss angela merkel's potential path to another coalition. of we will bring you details abu dhabi's national oil companies ipo that could be the biggest in 10 years. this is bloomberg. ♪
♪ london. is 6:21 in 7:21 in germany. germany is edging closer to a new government as angela merkel laid out potential paths to another alliance. she praised the previous coalition saying they did a good job. she said in a potential partner would have to support a balanced budget and pro-business policies. matt miller joins us now. give us an update. she was laying out her demands that both sides are cautioning each other from expecting too much. she lays out her demands from a position of week this. seeing the preview of this fight.
it's the spd telling merkel what they want. more time, she will have to listen carefully. the group from the biggest day in germany says they want a new insurance system that everyone has to use. now germany uses a dual insurances. they want higher taxes on the wealthy and higher social security payments for his -- for those who are retiring. these are the biggest shots your hearing. on thursday, merkel will meet her challenger with president. they will discuss it. the spd will lay out fairly high demands. they wanted to stay in the opposition. so they have a lot less to lose than merkel does. she's really fighting for her fourth term. let's see how the
political gaming goes. matt miller in berlin. let's welcome our guest act in. jane foley. the head of fx strategy over at .ane foley --rabobank there seems to be a believe that merkel will win. is that rabobank's point of view? it's really sidelines of the politics. one of the arguments out there was if we look at countries such as netherlands, they seem to do ok for a while without a government. perhaps germany can do that to her -- do that too.
it economics -- the economics is stunning. pmi is at the highest level for 18 months. the market is focusing on that. the euros surviving this test of this german political saga. 1356. we have a chart. calls are in high demand. to what extent is the euro is a haven around tax and opec? there is that element to it. about it as a safe heaven you have to talk about this surplus. boxes. take a lot of it's got the current accounts,
but it's only just out of the debt crisis from a few years ago. you would not expected to behave as a safe haven but it is doing so. from an investor's point of view, you have all growth, low inflation, and very low in restraint. -- very low interest rates. much.thank you very jane foley stays with us. up next, oil trades near its highest price in two years. we look forward to the opec meeting later this week. we will hear some of the abu dhabi ipo plans. we will talk much more about opec. that's our latest report in here at bloomberg.
♪ it's just about 6:30 a.m. here in london. inching ever just so slightly higher this morning. tax will be front and center this week. along with the confirmation hearing for jerome powell. this is what else you should be watching. tomorrow there is the confirmation of jerome powell. we also get the results of bank of england stress test.
anna: we will be all about oil in a moment. let's check in on the markets first. nejra: tax reform on the cards. a lot of data globally. we take a look at what is happening in asian equities. they are on a weaker footing today after hitting record highs. across the wheel today. tech stocks underperforming. in terms of the region, you're seeing those large cap. underperforming. industry --tty much every industry heading lower. i'm taking a look at jgb yields here. seen the yen as the only currency gaining against the
dollar. yearg a look at the 10 yield, it's up one basis point. look at bitcoin. pushing towards $10,000. since friday. 40% in the last year. continuing. it continues to push higher. we are seeing a little bit of recovery in today's session. our mliv blog same we could hit 1300. i said we're going to be
one is the rampant demand we have seen for emerging-market assets over the past year or so. the first time they returned to the market to sell independent bonds was back in august. they got $7 billion worth of orders for a $1 billion debt sale. they had so much demand, they were able to tighten guidance. crude is trading towards a new year -- two-year high. it's hard not to say that stability hasn't helped them. we have news that the petrol station owner in the gulf region is doing an ipo. just as oil is crusading back towards two-year highs. this is a big deal for the
region. the first of a way of expected national champions are going to be high be owing various parts -- are going to be ipoing several parts of their businesses. we have a big sovereign wealth fund looking to lift its alumina business. the timing is reasonably good. the other thing is geopolitical tension. not least of which is the saudi corruptiondown -- cut down. the order but was said to have diminished. all of that was supposed to be down to political concerns. the gas distribution ipo might
be different. it's a business with a regional monopoly. it's tax-free. a lot of people are going to be watching the demand. they're going to watching the valuation. let's see which institutions want to invest. let's talk to jane foley. i have a couple of banks in last week and is this two-year high in oil doesn't rarely correlate see aggressively to traditional currencies. this relationship doesn't really hold. you believe in that? jane: it's a two-year high but if we look historically, the price the relatively we.
weak.still relatively oil is recovering but it's till two-week to really instill fresh investment. that's why the currency isn't taking its cue. two-year highs, but not high enough. anna: they are not the classic oil plays. where this oil have to get to? where the oil suppliers go? it were to have oil and 2018, we'll will begin to see it come through.
it's when we begin to get the investments back into that sector. we are a long way. away -- a wayay away. i think perhaps about a year or so. manus: i know you are excited about dollar pound. they escape double injury. south africa avoided a downgrade. there's a sense that they got away with it but its inevitability. jane: the ball is back in the finance for. interestingvery weather not they can do that. also, they put is the next resident. -- president. those two events could be crucial to if they can get that confident. anna: the government says they
are working on taxing resistance bending that's but this comes as a time they're trying to tell more debt to plug a budget gap. and the political situation remains in flux. unemployment is at something like 28%. it's incredibly high. right now, the market is believing they can do the work. it's up to them to show they can . otherwise you might get that downgrade. there's been a rally. let's broaden the conversation. take them of these big papers as tongue-in-cheek. but goldman sachs strategists believe indexes could see a 50% outside.
is that correlate with the currency side. the turkish lira is using radek. you see the correlation between equity and the effect on it? jane: yes. it's global growth. global growth is strong. visually we see downward divisions growth is back to 30 year trend levels. people look for highly you. that means emerging markets. -- people look for higher yield. that means emerging markets. we have seen some stunning growth rate. romania, poland, those countries. people are going to look or
yield -- look for yield. let's talk about the oil price. the russian oil minister says that all of opec in favor of a packed extension. extension. it seems the russians and opec have managed, was kind of brush. -- kind of broad brush. where does this leave russia? alive? link very much jane: it's interesting the dynamic between them and opec. they are more dependent on the incremental price of oil is that the opec countries.
their budget has expressed how much the need to reach their economy. has happened to russia, one of the really thatesting stories is because of the eu. -- you, they have been changing their economy. we've been talking about technology. thank you very much. youre a bloomberg customer, can watch the show using the go -- using tv . you also get to follow on with all the charts and auction and you get influence the question. send those questions. coming up, theresa may is
♪ it is 1:46 in the morning in new york. the picture of the u.s. market is a little bit weaker at the start of trade. around .1% on all the major in the. .6% but stillwn near record highs. a busy week in the u.s.. tax, powells confirmation. let's get a bloomberg business flash. >> boris kolodny has left julius better. -- julius baer.
replace him. executive orn the 12 years. throwing back to you. manus: thank you very much. let's talk about u.k. prime minister, theresa may. she has one week to find a compromise on conflicting brexit demands over the irish order. prime minister once an agreement that brexit will not lead to a return to checkpoints. future of the border can only be settled in tandem with a future trade deal. our expert joins us.
let's go to the sticking points. ireland's once written guarantees. they don't want to move forward. that over a number of decades. they're looking for a guarantee of the outcome. they just want a u.k. to write them that old matter what happens, there will not be a return to heart border. guarantee. written that's what they need to do. they want to plays the same rules as the rest the eu. she's caught between the rock
and a hard place. anna: theresa may reiterated that they think anything of this conversation rather than the line when they are talking about trade. talk to me about politics in ireland. the domestic situation. >> over the weekend there was intense contact between the government and the opposition to try to avoid election. there is a conflict motion. if they lose, there will be an election for christmas. there is hopes that can be avoided. wisdom is that will be harder to do in december. they would like to agree to progress. this a lot of twists and turns.
we could yet see a solution. politics is a couple game. thank you very much. now china's is stephen jones. showw joining us is even -- is stephen jones and jane foley is still with us. stephen: beautiful building. manus: it's very shiny. the whole discussion about how we can to move on almost in suspended isolation. you have a proposal that calls for mutual recognition in terms of regulator three -- regulator approach.latory stephen: this is an unusual trade negotiation.
it starts of the basis that we have harmonized regulation systems between the u.k. and europe. divisionsompanies and are dependent upon financial services in london. of financials services in london that have connections in the european union. you want to retain as much of that is an. -- as much of that as you and. it could be part of a free trade agreement. that starts based on mutual recognition. regulator working closely together and broadly . broadly aligned. it's outside the rails of the predetermined mutual recognition. is you'reing
partially taking back control. you acknowledge there is strong mutual interest in having rules and principles that is more. we're talking about capital markets. for exchange. we are not necessarily talking about retail bank. we are talking about those markets that already operate on cross order basis. move together on the areas that make sense. in terms of the free trade free trade agreements don't usually financial services. challenge is crafting something that works or is all about politics. stephen: it's both.
we tried to use recognized concept within the framework of additional agreement. -- of a traditional agreement. talked -- when we have talked to the canadian negotiators, they absolutely do not want to accept this given the close interconnectedness between your financial services and of the you. anna: is it helpful? stephen: share information is always of. figuring out how you get the position agreed. manus: jane, let's bring you in. this fits outside the realms of
the fx market. it's more concerned with whether we move on to trade and the. of togetherness. period on to trade and a of togetherness. bear?u pull or jane: i'm nervous. think there's risk their. we are optimistic a free trade deal will be done. goinge way politics to be is that it seems you're more likely to get a last deal. and there is more likely to be uncertain. they say the ecb are playing hardball. that's something which is
creating an outlook for the u.k. economy. i think sterling will be nervous. if we do get a free trade deal there will be so much early that sterling will rally. if we don't, doom and gloom. veto?he irish use their anna: -- anna: hours are you about movement of his? how nervousanna: are you about movement of financial services? stephen: we need certainty. ,iven the lack of certain key even -- lack of certainty, the u.k. has not even published a position even for, y are very nervous. most of our wholesale members
anna: this is "bloomberg daybreak: europe." these are today's top stories. anna: this -- manus: the ceo of julius baer leaves. he will be replaced by his deputy ceo. anna: racing against the clock, the u.k. has a week to find a compromise on conflicting brexit expectations over the irish border. republican lawmakers scramble to lock up votes to finalize their bill. the dollar inches higher. shows velocity,
blowing past $9,000 in a matter of days. ♪ manus: it is 7:00 a.m. in london. welcome to our new london headquarters on queen street. the chinese markets are the irksome thing you need to keep an eye on. movement in lower markets, but this is what we are checking out. futures indicated down by about 10 points. we are waiting for an opening flash in the dax. it looks like merkel is inching closer to forming a grand coalition. asia's three biggest economies will deliver data this week. the chinese official index, the dax, we are waiting for an
opening flash on that. 11 ticks. open by how much impact will china have on markets? anna: the picture you have given us, let's get to the risk radar and remind everyone of where we have been and crucial stories for this week. u.k. policyd up the story. we are down by 0.2% on the u.k. currency. can we get progress on both of those things by the first week of december to enable the heads of the meeting later on to move on to talk about trade? that is a live issue and makes jane foley very nervous. we are down by 0.5% on wti. opec and russia, and we heard it this morning, it seems as if there is the sketching or outline of a deal that has been designed. we are waiting to see what kind
of production cut they will go for in that meeting. bitxc it going, -- is coin. everywhere i look, that number is bigger. that is just since friday. on friday.7 up 800% year-to-date. does this reflect a hold in bitcoin, or of fear that we might be missing out on something exciting? manus: something that goes up 800% -- anna: it raises an eyebrow. manus: all equity markets are indicated low. keep an eye on london, paris, and frankfurt. the chinese index is an irksome issue for equity investors this morning as we kick off. the bond market is telling you a drop in trades with a drop in bunds.
the french are employing the most in 17 years. the recovery is strong. you are looking at the bunds, looking at the french markets up and u.s.pips, futures are a little lower. it will be about to rome power. what -- about jerome power. that is the question for markets, it will be a question for bond markets as well. are there many scaredy cats where they turn from few to many? talk about u.s. taxes. we have a tax related conversation to talk about with the taylor wimpey ceo. we had the budget last week in the u.k. we will talk about that with him and what he sees ahead. let's get a first word news
update with juliette saly. in the u.s., republican lawmakers are scrambling to look up the votes -- to lock up the votes needed for a bill. a new analysis by the nonpartisan congressional budget office estimated the extent to which the bill would increase the deficit over a decade. but it says he did not have time to analyze the likely impact on variables such as economic growth or employment. will nowderal judge decide which of the two people holding competing claims to temporarily run the consumer protection bureau has the actual authority to guide it. english asked a federal judge to declare her as the agency's acting director and block donald trump from installing white house budget director mick mulvaney as interim chief.
u.k. prime minister theresa may has a week to find a compromise on conflicting brexit demands from the north and the south of ireland. the prime minister once reasonable assurances that they will not return to checkpoints on what will become the new line with the u.k. governmentmay's rejects it and says the future of the border can only be settled in tandem with a final trade deal. in china, confidence among the country's sales managers and steel producers waned in november, matching the mood of international investors. smallle, sentiment among business owners improved as they underline a shift to more sustainable economic growth rates and push through reforms to cut pollution and curb financial risks. the second largest economy is in a slowdown.
has exceeded expectation. scoreafrica's latest debt has been cut to junk by s&p global ratings. they have also threatened to/-- another group has threatened to of similarating two -- the rating to a similar level. several outlook committees have opted to keep the ratings on aa 3. iraq has set up plans to return to the global bond market next year to raise $2 billion. central bank governor made the comments in an interview with bloomberg. >> in the 2018 budget, 2.2 billion. $2.2
juliette: global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. you can for more stories on the bloomberg at top . as manus mentioned, we have seen weakness coming through large cap stocks in china. they finished up the session down by 1.3%, and a downbeat day in asia even though we started the session with a regional index adding to friday's highs, but we are starting to see the strength in the dollar in the turnaround in u.s. equity futures. the nikkei closing down by 0.4% and weakness in hong kong. we saw australia and new zealand close in the black today. morgan stanley has been on a tear with downgrades impacting samsung electronics, which was the worst performer when you look at member ranked returns in the region. they say it has its price target at 2.8 million won.
they also had a downgrade for taiwan semiconductor. seene upside, we have nintendo in japan closed higher by 2.4%. it looks like sales of its console did well, and we have analytics coming through that the console was one of the best sellers from that sale on friday. manus: thank you very much. he was at the helm for over eight years until he stepped down. this is the breaking news we have today. he delivered a return of over 8%. the stock is down by 4%. theave gotten over the line chairman saying that the ceo moved on for personal reasons and they knew about the resignation over the weekend. let's see how the market takes that as the day is underway.
aimedk. budget proposals at drawing housing supply could make life tougher for britain's big price builders. have a look at this. you have a couple of indication of the stocks. meanwhile, the industry's rally this year. they could be showing signs of fatigue. the impact of brexit may be catching up with the market. we have a couple of individuals here. they are all showing a little bit of fatigue. we have the ceo of taylor wimpey, it is peter redfern. we have popped up this chart. very simply, are there any signs of fatigue? what is causing the turn?? peter: i don't think there are in our business. what you do see at the moment, and maybe it is behind that softness, is less certainty and
volume in the secondhand markets. the two are linked, but outside of trading, it remains strong. anna: what is your assessment of the budget and the difference it will make in your budget? drive riceng to inflation as some of the critics have suggested? peter: if you look at the budget as a whole, we need to look at context. the industry has been the center of political policy for a number of years. there are quite significant new steps in there, but it is collective. the whole approach to supply and demand in housing has changed. i don't think the change is huge, i think they are positive. it is over critical. anna: in terms of london, you might say 5000 pounds maximum on a deposit and that would be
great for a first-time buyer, but does it move the dial on affordability? peter: i think it doesn't. stampd not say the makes difference. but how sparging is -- house buying is on the margin. there are bigger proportions on the moving costs. i am not saying this will change the world, but it is meaningful to young people at that point of buying a house. isus: the other big driver housing is front and center. he talked about the land bank review. you have got nearly 300,000 permits, and nearly 320,000 in the whole of the u.k. between a divorce approvals and supply. how do you close that glad meaningfully in this 10 year? peter: i think it is the last
bit makes it difficult, it is timing. last 10 years, we have got almost exactly the same number of approvals as we have built. buildey have to lead the by sometime because it takes up to 18 months on a large site to get the infrastructure. there is always a lag, but that's not always a gap. over time, the two should close but it takes time. things fromf the we 1970's are behind, but -- want to leave behind, but others we want to replicate. are we going to see that 300,000 achieve? peter: i think it is about the timing. i think we are capable of it, but tilting it properly and building in the right places with the right skills takes time. -- the timescale it
sets out, probably not. but i think sometimes they tie into the political cycle than the real-world. you are the best man in the world to find out if it is hard. if i need an electrician -- on a more serious note, are you seeing a tightness in labor? there are various red top stories about migration. is there a tightness in labor and a correlation for them not being as available as they were? peter: there is a very significant tightness of labor in our sector, but i don't think it has to do with european nationals. it is to do with the fact that the latest statistics show house building group by 15% last year 15%ouse building grew by
last year. we are a cyclical industry. is getting and got quite a lot better, but it will to getite a lot of time those skills right. attracting people to a traditional industry is more difficult than it perhaps was in the 1970's. talked lastvernment week about that investment. they also talked about construction of medium-sized housing. is that a threat to your business? you can all grow together, can't you, or do you have to give ground? not see it as a threat, we see it as an important part of a healthy industry. i think it is very difficult because these small or medium house builds don't exist anymore at the moment. they slowed down, stopped, people retired. there has not been new startups. the focus should be how do we encourage startups?
how do we encourage more equity in the sector? just taking away the funding limitations for them is not enough. most sites have seen, why aren't people starting businesses? it is a successful sector at the moment. manus: growth is up 15%. not many sectors deliver that sort of growth. you have a strong balance sheet, your words. and a high quality land bank. she -- this clash et cliche in markets, but where are the big opportunities? if there is softness, no cycle ever lasts in perpetuity. where do you want to buy the dip in the lands money? peter: where in terms of geography, we see a huge virtue in being broadly aced. -- broadly based.
our largest sites can last for 15 years, so you need to be able to make decisions that work to the cycle. from glasgowessesour into exeter, and we see that is a huge virtue. large sites ine london at the moment, but it is not huge. one thing we did not hear, are you planning for a time when it doesn't exist anymore? peter: we always have done that since it started. i was operating in housing in the same business at the time of the last crisis, and i saw the impacts on the u.s. housing industry. we always assumed the worst on that, so we were always slightly cautious. any industry heavily dependent on government support needs to question itself. anna: thank you so much. redfern. baer ceo, julius
♪ to understand velocity is to understand the ticket. it is called xbt. from friday night until today, you have bitcoin up by another 17%. but to put it in perspective for you, this is the year to date performance on bitcoin. 5%.is up 8555 does it have bullet and can this trajectory continue -- does it have validity and can this trajectory continue?
to come up by 17.5% in barely 24 hours of trading, what is behind this momentum? the retail investor, the number of clients give it some context. >> it seems that bitcoin is doing mainstream. they are prepared to introduce bitcoin futures, and jpmorgan whose ceo called it coin of fraud is considering offering those futures to clients. last week, you heard about a mutual fund offering bitcoin and a credit offering in exchange for product. bitcoin is really growing up because no one wants to miss out on an asset that has rallied more than 900% this year. anna: good morning to you. are there warning signs? anyone looking at more than 800% rise, it will raise a few eyebrows at least. exactly.
it sounds crazy, but a week ago, we were celebrating bitcoin's dollars. 8000 when will it reach the $10,000 landmark? it is very hard to assess the value of bitcoin, because it is not gaining traction as a payment currency, and it is paradoxical in the sense that because of its volatility and lengthening transaction times -- it is becoming harder to imagine bitcoin really becoming a currency used for payment. for now, it seems to be speculative, which is hard to call. anna: thank you very much. we are watching that price go ever higher. ceos collardi has quit as julius baer. he will own -- he will join privately owned pictet.
let's get over to our reporter in zurich. why is this happening now? explain what has been going on. reporter: the timing of this announcement is certainly a surprise. wasme in this morning, i surprised they would announce it at such an on time of the year -- such an odd time of the year. we heard rumors that boris collardi wanted another position to something else, but so far, no in the -- we have had no indication this would happen this year. the timing is surprising as well heause the bank as you know, is a force in private banking turning to a quick -- to recruitment, acquisitions. manus: we seem to have a few
issues from zurich. the breaking news is that boris collardi has stepped down. they say they knew about it over the weekend. it is fascinating he is going to pictet. it is one of those private banks in switzerland. collardi goes, and what to see bring to pictet? is stepping in. to stepill be there into the shoes of it happened, and it did. anna: we have the comments coming in about the surprise of it, saying the ceo moved for personal reasons and after deliberating on succession, they ready forit was quite it. they knew about the resignation since the weekend. don't expect major strategy changes under a new ceo. we will wait and see if that is the case. just --itcoin that is
can we use the word outrageous? to $10,000,9,000 keep an eye on the chinese markets. that will put a little pressure on the european markets as we go through the rest of the trading day. anna: last week, the chinese story was something investors were worried about. we have seen ten-year costs in china go up by 10%. that causes nervousness in the equity market, and if we see a wobble on the chinese market, that could be interesting. we are down 1%. manus: the breaking news is this. we made it. we made it, no one fell over. it is up to the rest of them. we did just grand. anna: watch out for the share price. watching out for a lot of new stuff in the united states. jerome powell confirmation
guy: welcome to bloomberg markets. we are at our new london headquarters, along with matt miller in berlin. cash trade is less than 30 minutes away. ♪ guy: a bubble or just the beginning? bitcoin shows no sign of slowing down, blowing past $9,000. it $10,000 on the way? collardi calls it quits. julius baer