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tv   Bloomberg Markets European Close  Bloomberg  May 3, 2018 11:00am-12:00pm EDT

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trading day. i'm mark barton. bonnie: and i and vonnie quinn. this is the bloomberg european close. mark: here are the top stories we are covering from the bloomberg and around the world. executive is forced to distance himself from the controversial comments about slavery. and the president's men arriving in beijing for trade talks as its stance, and u.k. prime minister theresa may faces a crisis. a cabinet of brexiteers outdone her on the plan. taking a look at european equities today, gmm highlighting the big moves we are seeing in equities right now. the biggest decline since march 23 for the stocks.
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look at these declines. we have seen the entrenchment occur in the last hour or so. reese's 2% lower, sweden down by 1.6%. you get the picture. this is the currency board. sterling is falling once again. it was rising earlier. it is all in once again for the seventh consecutive day. we have not seen these sorts of losses for sterling since december2006 teen -- 2016 -- 15, excuse me. we are seeing bond yields decline, and cds is were final two columns there. investors are moving on from the fed focusing on earnings, focusing on the outlook for trade as the u.s. and china begin those talks. let's talk about eurozone inflation. april,tedly weakening in cpi slowing to 1.2%. the core level slowing to .7%.
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in em both weakest readings weaker than economists had forecast. the cooling reflects the timing of easter and the impact on airfare and package holidays. it will tell the true tale of underlying inflation, but the optics will not be easy reading for the ecb, which wants to normalize policy. that is what the discussions have been in recent meetings. let's get to buyer, cutting its forecast for the year because the euro is seeing cloaked -- curving sales. that $66 million purchase of monsanto. the german company had profitsly predicted that would show little change without monsanto went without -- and exchangedjusting for rate. every day, i show you a stock that is unchanged. normally we are talking about the big movers. irma is among them. shares are rising to yet another record after first-quarter total
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sales came in better than expected at 11%. the luxury goods company selling more felt hats, gold earrings, struggling to keep up with sure urging time -- surging chinese demand for its $10,000 plus birkin bags, ready to wear fashion, perfume divisions, selling everything from jewelry to furnishings, all grouped by double digits during the first quarter. a record shares up to today. 90 minutes into the session, julie, how is it looking over their? julie: stocks over here are just off the lows of the session, and is looks like the risk off sentiment has crept back into the market. we spoke an hour ago about the imf services report coming on the heels of the manufacturing report earlier in the week. both of those were disappointing. some chinks in the armor of the u.s. economic recovery coming into awareness for u.s. investors.
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that could be one of the things contributing to the selling we are watching today. it also reflects the volatility we have been seeing in u.s. averages. if you take a look at the bloomberg, we have this periodic s&p to take a swings in the 500. these are the 1% thresholds to the up and down side. now we are looking at the occasions on which the s&p 500 has moved 1% at the close of trading, even desk either up or down. sawruple occurrences and we in 2017. and all of the groups in the s&p 500 are trading lower right now. last i checked, more than 450 of the members of the s&p were down. financials, health care, technology, all down by more than 1%. let's dig into financials in particular a little bit more. aig out with earnings after the close of trading yesterday. that company is seeing profit drop, dropping more than
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estimated. it saw catastrophe costs. it also saw a decline in net investment income of 9%. intercontinentalexchange out with numbers that initially looked pretty good, but in a note i jeffries, the analysts pointed out that the trading volumes largely tracked below their forecast. prudential financial is another one of those were the numbers looked strong, but it looked like sales may have missed estimates. those shares down 4%. companyis a that beat estimates and increased in its return on equity, yet those shares, which initially were higher, are now being pulled down with the rest of the financials. finally, a quick check on other assets and how this risk off tone is playing off among the different assets. gold prices are trading higher, crude is lower. we are catching a bid in the 10 year and are seeing a decline of four basis points in the mix -- four basis points, and the vix
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is spiking. vonnie: president trump has changed his story about adult film star stormy daniels. in a tweet today, president trump saying he reimbursed his lawyer michael cohen for the $130,000 in hush money paid to daniels. the president denied the arrangement was improper. president trump calling daniel'' claim that they had an affair "false and extortionist." kevin cirilli joins us now from the white house. the thing that has changed is the president is now backing , that he giuliani said did actually refund michael:, or or atst -- michael cohen, least law firm, for this money. does this change anything? kevin: good morning. here in washington, that is all that people are chatting about, especially since rudy giuliani appeared on fox news last night,
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making the claim that president trump did, in fact, pay stormy daniels. take a listen to what he said. onimagine if that came out october 25, 2016, in the middle of the last debate with hillary clinton. >> so to make it go away -- away.de it go ohen made it go away. that is his job. kevin: president trump tweeted about this, saying prior to this clip, this was a private agreement. contributions or did not play a part in this. many legal experts i speak with that knowledge fact that this investigation could be a fishing expedition of sorts, and the various subpoenas could lead investigators down new routes. that is why this has become such a political problem for this administration, the one they
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maintain their trying to keep a distance from. vonnie: meanwhile, a delegation has gone to china to try and talk trade with the chinese. i am sure korea will come up with -- there as well. awaiting comment from president trump in the rose garden on national prayer day. he will probably make some comments on kim jong-un's decision to move american hotel.rs to a president trump earlier today said that hopefully more good news would be coming. all of this comes as president trump set to meet with the north korea leader, kim jong-un, in the coming weeks. they are inoned, china right now. they have a large list of topics they want to discuss, led by treasury secretary steven mnuchin. three key points are what you mentioned -- national security with the korean peninsula, but also commodities -- steel,
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aluminum, sorghum, soybeans, and a lynch electoral -- and intellectual property. vonnie: kevin cirilli, thank you. let's talk about brexit. the battle continues. e meeting of theresa may's inner circle and it in proposals were rejected on the eu customs union. yet another defeat in the house of lords with peers backing an amendment to prevent a hard border in northern ireland after brexit. to dig deeper into all of this is our managing editor, rob partin. a wonderful piece this afternoon, talking about brexit and being stuck in the middle. the first one is delay. the master of delaying and staying in power. how long can she delay on the customs union issue? [laughter]
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rob: i don't know. there eventually has to be a decision or not. they cannot make a decision, and that is a decision in itself. there are deadlines. the irish prime minister, i name, heonounce his said there needs to be a decision by june so -- i'm not going to put an artificial deadline on it. so even the demand for timelines seems to be more ambiguous. james: of course, the ultimate deadline is not artificial. there is a real deadline there -- march of next year, when the talk runs out and there is an extension period, but there are real deadlines here that are not arbitrary. mark: the cabinet meeting yesterday -- is this one of the many, many symbolic brexit moments we have talked about? joiningram the tears
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forces and throwing out the door the moderate auction? that: it is a reminder while many headlines and people and stories are focused on the eu-u.k. negotiations, the real negotiation, the higher stakes thes, are here among british officials and the british policymakers. until that is sorted, the eu can sit on their hands. as they see, may has little leverage in her own camp as she does with brussels. mark: i wish we had more time, thank you for joining us today. jim hertling. vonnie? vonnie: let's check in on the first word news with kailey leinz. next to setbacks today for federal prosecutors trying to obtain question of practices by bond traders. a former managing director was cleared of charges he defrauded customers by lying about prices
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in mortgage backed securities. meanwhile, a federal repeals court -- appeals court has reversed the decision of a former jeffries trader, who is in prison for lying to customers about on rates. in beijing, a high-level u.s. delegation that could determine whether there is a trade war sat down with chinese officials. the team is led by commerce secretary wilbur ross and treasury secretary steve mnuchin. before the talks began, china warned it would not meant to u.s. threats. tradeile, the u.s. deficit narrowed in march by the most in two years. imports of consumer and capital goods declined. and thousands of french railway workers went on strike again today, leaving commuters stranded in many stations around paris. train workers have gone on wrist repeatedly,ike protesting emmanuel macron's plan to allow rail workers to --
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global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. vonnie: thank you. coming up, the president's men arriving in beijing for trade talks as china hardens its stance. we will be talking about that. let's get a check on the markets. here is the picture for the dow, the s&p 500, off their lows. this is the reader is down nearly 18%. logic and aig are down about 10% pete's -- a piece. yum brands, 2% apiece. this is bloomberg. e. this is bloomberg.
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♪ york, i'mve from new vonnie quinn. mark: and live from the city of london, i am mark barton, counting down to the european close. president trump team is arriving in beijing for trade talks as china says it will not be submitting to any threats. thank you very much to our guest for joining us. what is the best that is going to come out of this gathering between the two trade teams? what is the best possible outcome? realistically, the realistic outcome is the lack of further confrontation. look, the chinese are currently talking tough, but they are not yet ready to stand up fully to the u.s.. they will. it is in their interest at this point to give trump some
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wins ahead of the midterm election. mark: what are they? diana: they are not going to compromise on the made in china 2025. they are much more likely to try and give back on the trade deficit and promised to buy up whatever american goods, but also give more access economy to foreign companies. but -- mark: go on. bonnie would throw one in. vonnie: the worst thing that could possibly happen is nothing further, but the chinese are clearly operating through their currency at the moment, sending signals with the yuan, no? diana: in what sense? vonnie: because the price in advance of these talks is to
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send a signal that they could go further if the u.s. were to be more draconian. i don't think the currency is a key issue at this point in time. even though trump attacks china about managing their currency, which they invariably do, the problem has been for china that the yuan has been depreciating significantly. two or three years ago, it was all about china shedding foreign-exchange reserves, stopping the yuan from depreciating too fast. here, really, is a geopolitical confrontation. it is all about america trying advanceshina's future in terms of technology. vonnie: the carrot or the stick approach. can america persuade as opposed ing china to change his behavior in certain areas? diana: i doubt it would work. it certainly has not worked in the past.
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when you look at the past 20 years since china entered the wto, 2001, which should have been a tremendous carrot, if you would like, we have not seen the convergeconomic model on the liberal western model, which has been all along the expectation. in fact, the chinese leader stood up and quite clearly, at the party congress last year, stated that china is going to pursue its own model. capitalism with chinese characteristics for the new era. the problem for the world is thisthis clash between economy and the free market economies has not worked. while neither system is converging on the other, we are schims to see great shim appear in the global order. vonnie: the year --
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mark: the european angle with macron, merkel, they had aired concerns that they are worried about china's rise and are making it a policy priority. but there are divisions on how to deal with that, central and eastern europe had one idea, germany, france, the u.k. have another vision. how is that going to work? diana: funnily enough, i am from ball your area -- bulgaria, and i just came back from there on holiday. what was interesting for me was at the bookstore at the airport, the only three books that were in a foreign language were three books on china, and one on xi jinping's thought. the belt and road technicals have already gone into eastern europe. europe is finding itself in a difficult position, because at the end of the day, in a race for global dominance, it is china versus the u.s..
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those are the two that can credibly compete in the technology and artificial intelligence space. europe cannot. and in terms of its liberal ideas, it does not really belong in china's spear of influence -- sphere of influence. at the same time, given the way trump is doing things -- the european are not opposed to trump standing up to china. diana, they give for joining us. vonnie? vonnie: a quick check on the markets. we are off the lows. the dow in the s&p 500 are both down about 1.3%, and the nasdaq is also in negative territory. -- this of the s&p, and buyback program is up 6.5%. as the losers, carvell holding
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down, down 5% there. this is bloomberg.
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♪ live from new york, i'm vonnie quinn. from london, i'm mark barton with the european close roughly six minutes away. malls across america are theing with more singles in retail apocalypse, but one mall owner says the looming death of the industry is exaggerated. sat down with ed hammond. >> the death of the u.s. mall is overhyped. it is a story that plays well. when we look at it, we look at it on an acid by asset basis, and if you look at the u.s. mall end ofthere is a higher quality mall space and opportunity, and that is what we are looking for, entering into great cities with terrific
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assets. we do not think we are going into the u.s. as a whole. the u.s. mall quality, on average, you have only about 9% ++.ating to a westfield has about 25% of its work folio in that range. do this, 25% of your revenue will be coming to the u.s.. is that something you want to increase? >> we are comfortable with it, but we will see what happens. the first opportunity we have to prove to our shareholders that we are owing to be able to deliver, and what we are telling them is to actually integrate the transactions, and demonstrate and show that value, and we will see what happens after that. ed: one company that keeps coming up his matrix. the ceo recently left. is that anything someone would look at if it comes to market? jaap: we are not looking to expand. the focus we have is on
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integrating westfield and delivering for our shareholders. that is the focus. is the cfo of the property management company that scooped up westfield. mark? what let's take a look at is happening. european equities inching lower as we head to the close. down by the second day in the biggest drop since march, mirroring what is happening in the u.s.. the losses are not nearly as big, down by 1 half of 1%. thes have a look at currency board. sterling is falling for the seventh consecutive day against the dollar. pound, the euro, -dollar. -dollar. retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations.
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every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ from bloomberg's european headquarters in mark barton. look at that. down by 7/10 of 1%, technology
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unchanged, all other industry groups lower. the acceleration of the selloff in the afternoon session once we got underway down by the biggest margins since march 23. investors thinking about earnings, trade, and those big talks taking place in beijing between china and the united rates. expectations are telecom, banks, and financial services. among the big decliners, yesterday we rose to the highest level since february the second. we have come far and fast then falling to that 40 month low in march. that was -- we have risen by 6.5% since then, but two days of declines. we will talk about the u.k. services data more in just a second, but essentially, the , ainant services industry big portion of the economy, -- more solidolid than expected pace in april. ae industry only sought
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modest three band. the reading of 52.8 was the second weakest since september 2016. if you put all of these together, services, construction, and manufacturing, i market expects a expansion consistent with a growth rate of a disproportionately -- that is proportionately subdued, -- disproportionately subdued, by 2.5 percent. slightly better, but not much, which is why the bank of england is not expected to raise rates when it's meeting next week. sterling is down for a seventh consecutive day against the dollar, the worst run since december 2015. the lowest levels since january 11. a is keeping rate. releasing a bet on weakness in the data not continuing in the second
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quarter. 7.1% byling is rallying the end of the year. sterling was resilient earlier today. we had a feisty brexit war cabinet meeting yesterday, where seemingly the brexit hardliners, the conservative hardliners seem to have got their way when it comes to the customs union. hikebandoning the may rate call last week, but they still say they will deliver a balanced statement next week before hiking rates in august. let's get back to the stock market. one of the big declines, down by 7%, biggest decline for a decade. the london-based manufacturer of artificial hips and knees had and profitts revenue margins. alsowound care division slow down, hurting the company's results. smith and nephew down by 7% at
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the close. vonnie: over here, some reversals were some of the trades that had been being put on over the past two days. the dollar index is still strong, but not strengthening as much as it has been. we see the results in the yen as well, literally just now 1.08.96 --wn to 108.96. the 10 year yield is now down to 1.93%. [inaudible] gn and, because we are seeing interesting moves there as well. a reversal on some of the moves. the ruble is longer today, having been reiger -- weaker. the lira continues to weaken, and we have seen a lot of indices, particularly ones doing with oil and trade, are lower today. companies in those countries are feeling the heat. as we look at commodities, steel
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is another 1% lower and gold is higher, interestingly today, just by about seven dollars. it is certainly a bit of a rest off trade -- risk off trade. mark: sterling saw it coming. britain's economic growth has officially slowed. that might have killed the boe's rate hiking cycle before it got started. here to take in with it all, --.mberg opinion columnist can we just bring this up? this is up there. this is a wonderful subcomponent of the work universe that we don't always look at. what it shows is the probabilities of a may rate hike . as you can see, .75%, 9.6 today. a month ago, 78%. who is to blame for all of this? in your column, there was a little blame of carney. is he to blame are not? >> yes.
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pretty much, yeah. i do not know what he is up to, because this communication strategy is not anything i have ever read. it is all over the place. they actually hit 100% at the start of april. they are now below 10%. clearly, as a traitor, we should youooking at -- 100%, should sell that. there is always a little chance. , there is still a risk. this guy is capricious. we do not know what is going on with him. it will be a split vote for sure. almost are that the last time round dissenters for a hike will continue. -- then whatens is happens with a couple of floating ones? the fivee rumors out, will definitely vote for no change, making it a 5-4. but that leaves carney a difficult to chew asian, because he is not like the previous governor, who is happy with
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being in the minority. carney is a control freak who wants to control the market. his interview the other week was very much about, i thought, i want the markets to follow me, not me to follow the market. in some senses, that is probably quite clever he has done this, because it leads to a situation with weak economic data. probably there is a situation that they will not hike rates, but they should never should have -- they never should have in my opinion. mark: one of the more interesting emails i got today was from neil jones. it was sent out to clients. you don't mind if i read out the headlines? next boe move may be cut, not an increase. move untilng for no brexit, march next year, and if things go badly, the bank can cut rates after brexit day or brexit referendum, and he is suggesting that the bank could go down that route.
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is it ludicrous to suggest that? marcus: no, it is not. you have certain institutions that are seeing no rate hikes until 2020, and some that are expecting a rate hike next week. you should not be having that type of complete confusion around the market, and that is the point. below 10% in a month is not communication central-bank style. the perfect central-bank meeting is they walk in and the markets are 50-50 the whole time, but the markets are always expecting and leading on something. i do not think the bank has done a good job. to be fair, they tried to talk the market higher, and the data confounded them. but it does not look very clever. vonnie: seeing all this change during the financial crisis and banksrisis, don't central do that now? isn't that their mo? marcus: i'm sorry, do what in the sense that they -- communicate very clearly
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to the markets at such they are controlling the narrative? marcus: that is the whole point. look, they said at the end, the last year of the yellow fed, it was a master class in controlling exactly what they were doing, why they were doing it, and handed it over in a clever way to powell, who know has a much harder job because they probably should not be hiking so much without further issues. carney has surprised us several times. he over cut after the referendum, checking in way too much stimulus, and as a consequence, and unicredit has jumped, inflation has risen, and the economy has done well, but now he is in a situation where he is at tuned. take -- two lower rates they could be comfortable with after brexit. now he has talked us into a rate last year,eptember when they hiked in november, and said they would not do anything for a year effectively, and then again in february. they changed their mind again.
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vonnie: we have to leave it there, we have to go to the rose d.c. atn washington, the white house. president trump is about to make some remarks on the national day of prayer. [applause] president trump: we are truly a vice blessed to have president and a second lady who believe in the power of prayer and the glory of god, and they do believe. i am with them a lot. they believe. thank you, mike. thank you also to the members of the cabinet who have joined us today, along with so many amazing faith leaders from across the country, including my good friend paul a white, who has done such an incredible job. stand up. [applause] thank you,rump: paula. and the president of the
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national day of prayer, dr. ronnie floyd. thank you, doctor. thank you. thanks, ronnie. recognizely want to sisi green, and i will now add that word lynch, but you like graham-lynch. a successful,d to fantastic man, so we appreciate you being here. thank you very much. [applause] priestst trump: narayana char, chaplain act shutoff, and the hope christian church choir, i heard you, by the way, right inside the oval office. that was beautiful. that was great music. thank you very much. [applause] we gathertrump: as this morning, our thoughts also
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turn to the memory of a man who will wake light of god in the --rts of millions -- weekend awakened the light of god in the hearts of millions of people, and that is the great, legendary, wonderful billy graham. great man, great. sisi, i want to thank you for ng on your grandfather's powerful legacy. the words of reverend graham -- prayer is the key that opens us. the treasurer of god's mercies and blessings. always beautiful. when he said it, it meant so much. when i say it, it means something but i like how he said it better. i think he did that a little better than i do. reverend graham's words remind us that prayer has always been at the center of american life, because america is a nation of believers. right?
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[applause] president trump: the prayers of religious believers helped gain our independence and the prayers of religious leaders like the reverend martin luther king -- great man -- helped win the long struggle for civil rights. faith has shaped our families and it has shaped our communities. it has inspired our commitment to charity and our defense of liberty. and faith has forged the of this and the destiny great nation that we all love. [applause] president trump: americans of faith have built hospitals that care for our sick, the homes that tend to our elderly, and orphaned.ties that house the they really do. they minister to the poor so
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beautifully and with such love. we are proud of our religious heritage, and as president, i will always protect religious liberty. we have been doing it. we have been doing it. [applause] president trump: a religious liberty. last year on this day, i took executive action to prevent the johnson amendment, a disaster, from interfering with our first amendment rights. i was so proud of that. i have been saying from the beginning, you know that. [applause] president trump: -- president donald trump speaking in the rose garden. the 57th national day of prayer. he has been eking to script -- sticking to script. this is bloomberg. cript. this is bloomberg.
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♪ mark: live from london, i mark barton. vonnie: and i'm vonnie quinn. this is the european close on bloomberg markets. mark: let's talk adidas. in true kanye fashion, the rapper stole the stage. adidas with a top performer in the dax this year, but those results were overshadowed by kanye's controversial comments about lavery. -- slavery. those remarks were addressed in an interview with bloomberg television. >> [inaudible] our external creators are making. kanye has been a fantastic creator, and that is where i am going to leave it. i will not comment on every comment that he were someone else's making. that is the party line at this stage. i want to carry on
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the conversation for a moment. you don't break out what the relationship is worth, what the brand isd -- yeezy worth. can you get investors been idea -- an idea of how important what kanye has been saying is to your business? have you had any conversations with him or his team in the last 24 hours? end is something, from his of the conversation, he makes it very clear that this is an important and very profitable from his point of view. can you give us the numbers and talk to investors a little bit about how important it is? over all of our numbers last year. we did almost $25 billion. we are a very large company, and kanye and yeezy is a very important part of our brand and a part of how we promote
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ourselves, particularly in the u.s. and other parts of the world. at the same time, adidas brand grew in the u.s. by 23%. we are growing 11% on the adidas brand. i'll kanye is an important part of the adidas brand, adidas is a with alobal company strong presence around the world. we will continue to perform well. >> i hate to press you on this, but if someone makes comments that are around the issue of and implying that it was a choice, that goes beyond your average comment by an external collaborator, especially for a german brand like i got, isn't it important to become in front isn't it important to get in front of that issue before it becomes a controversy? asi have seen a conversation you have seen it, and i have not had a conversation with kanye in the past 24 hours.
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we are a sports company that want to change people's lives through sports, and about that we will have conversations. but i want to focus on the core of what the company is about, delivering the best ports good product in the world and having -- sports goods products in the world and having our consumers buy those products, as you can see by the results we published. on thefinal question subject, have you had any conversations within the business in the past 24 hours about dropping kanye? >> no. adidas chief executive saying that they do not support the kanye west slavery comment. we will bring you the latest developments. time for the battle of the charts, where we take a look at some of the most telling charts of the day. what do they mean for you, the investor? dani burger is kicking things off today. welcome back. >> the dollar is falling for the first day this week, but the
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damage is already done. we are looking at the carry trade in emerging markets. that is the white line right here. it has done very well, but the blue line, the dollar, as we have seen it rise the past few weeks, the e.m. carry trade is officially in the red. this is a 2% decline for the year. -- is at mark: and what do you have, vonnie? vonnie: the thinking was going that there was it's been chilled for a massive short squeeze in viewsllar because bearish had risen to a record and treasury yields were likely to go higher. treasury bearish bets are also at a record. but you are converging right down there. that might cap any kind of topping, increase, or appreciation for the dollar. it will be an interesting dynamic between those two sets a -- those two sets of
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very bearish investors. title. loved dani's yllogismie jumps in s to her part. the winner is both of you. this is bloomberg.
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trade, only one third reserved for financial institutions. traders can now join wall street's most elite club for the price of $25 million. bloomberg reporter alex to much has this story. what club is this? $25 million? alex: the $25 million is the very minimum amount. i have uncovered 12 individuals who have or had a circle in the master agreement, which basically means back test banks
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such as goldman sachs and jpmorgan have been willing to trade things that they would normally only be willing to trade with companies like black rock. that you could not from your regular program. before the crisis, they were apparently not that difficult to obtain? alex: they were certainly easier to get before the crisis. one of the big takeaways from this crisis in terms of the market has been a whole host of litigation. banks being sued by individuals and municipalities, saying you sold me stuff i did not understand or you did not understand how these products could pay out. they did not want this risk. they are only going to deal with individuals if those individuals have very deep pockets and a very sophisticated knowledge of what they are doing. vonnie: they have to have a net
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worth of at least 25 million dollars. $5 million or more has to be an account with that bank. there are people with that and of money, and if they have a license like that, they can minimize their risk, correct? give us an example. alex: correct. veryillion is really the minimum. having $25 million does not qualify you for this. you also have to have knowledge of how the derivatives market works. what people have done with it is we mentioned in the story a former goldman sachs managing director in london who took out this business with the bank, with goldman sachs, and bought an interest rate derivatives that allowed him to minimize his interest rate risk on his mortgage. he has a house in london that is likely a very hard house -- large house with a large mortgage, and he wanted to ensure himself against the asage or increasing cost rates potentially rise in the u.k..
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mark: the world's most elite trading's cup -- trading club getting harder to join. alastair march, thank you. vonnie: let's get a check on the markets. the dow is off its lows, down about 1.2%. the s&p is also down 1% now. that is no consolation to cardinal health investors, down more than 18%. [inaudible] and intercontinentalexchange as well. below 18, andt witi futures are at $72. this is bloomberg. this is bloomberg.
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