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tv   Bloomberg Markets European Open  Bloomberg  August 15, 2018 2:30am-4:00am EDT

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>> you are watching "bloomberg markets: the european open." we are live from our european headquarters in london. i am alongside matt miller in berlin. i am guy johnson. matt: markets in asia are down yesterday with india and south korea closed. china, hurting the most. the cash trade is 30 minutes away. guy: not backing down. president erdogan put taxes on american goods.
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tencent traders prepare for a wild ride community option inket points to a 5% move either direction when the chinese tech giants numbers dropped after 9:00 a.m. london time. as rescue efforts continue, will the tragedy force europe to spend more upgrading its infrastructure? matt: you are getting restless is numbers. it beat the street estimate of $215.9 million by a longshot. revenue was 2.2 6 billion, that misses the street estimate of 2.8 billion. it starts getting more harry when you get into the outlook. oftas sees full-year revenue 10 to 10.5 billion on the lower 10 of its previous range of
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billion dollars to $11 billion. it is tightening its ebit margin rain. it is saying between 9.5% and 10.5%. we will watch those shares at the open, but also speak with the ceo of vestas wind systems joining us half an hour after the open at 8:30 u.k. time. we are less than us -- an hour away from the start of european stock trading. we have got gains, but they are slight across european equity index futures, and if you look at the 10-year yield, you can see investors are pushing it down. they are buying 10-year debt. maybe a safe haven play after china announced regulators will stop the releases of new video games, if you can believe they have the audacity to do that. and you can see from this three-day chart, the 10 year yield coming at 2.89%. guy: audacity.
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let's talk about the effect that is having on the gmm. china csi down as we speak. arrival of thehe tencent numbers. they are expected after 9:00 a.m. london time this morning. the options market, pricing in some significant volatility around that release. pay attention for tech for a number of reasons. had a decente s&p session yesterday. the indonesian market the focus of emerging markets, but turkey is having a quieter day today. let's move this off and i want to show you the copper market. -- will avoid a strike. that is one factor in the mix dropping -- driving copper lower. there is an economic data factor coming through. but is the shanghai trade, if you look at the metrics, we have moved below key levels. 6000 is a key benchmark.
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pressure this morning. let's get a first word news update with juliette saly. the turkish lira is looking for direction today after rebounding more than 8% against the u.s. dollar yesterday, as investors digest measures announced by the central bank aimed at stemming around in the currency. the country's official gazette has published a list of goods on which additional duties will be imposed. it comprises 22 items that don't include mobile phones, despite president erdogan calling for a boycott of iphones. in italy, at least 35 people have been killed after a highway bridge collapse in the mediterranean. more victims are feared to be in the rubble. the deputy minister have seized on the collapse to question whether the country should respect eu can trains -- constraints. he said there can be no trade-off between fiscal rules
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and the safety of italians. berkshire hathaway has added to its holdings into warren buffett's favorite sectors, banking and aviation. it boosted investment in goldman sachs, and southwest last quarter as part of a shaft -- strategy to shift its stock portfolio. brookshire -- -- it has moved on to apple holdings. global news 24 hours a day, on-air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thanks very much. juliette saly in singapore with your world national news headlines. asian stocks fell, treasuries rose, the dollar climbed to a 14-month high as risk appetite is tested by the turkey induced turmoil. china's yummy fell to the lowest toce may 20 17 -- yuan fell the lowest since may 2017. mark cudmore, the dollar seems
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to -- the dollar rally continues, let's say. there is debate about where it goes from here, but we saw an interesting note from credit suisse saying maybe the fed will stop producing its balance sheet at the end of the year because of burgeoning debt and a huge supply in the treasury market. what do you think about that idea? mark: quite a few people have talked about that idea that the fed will be forced to curtail their tapering early, and it does tie into the aggressive supply schedule we have seen from schedules -- treasuries. although it is breaking out , nots a number of metrics just the bloomberg index, but also against the euro, sterling, etc. in theve does have legs short-term. the move in the dollar until june made sense to me.
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since then, we have gone nowhere and i think the next major move will be for dollar weakness. are breaking higher and it is hard to fight it in the short term. emerging markets role remain on the back foot -- will remain on the back foot and in developed markets, dollar assets are offering so much more rewarding at the moment, but the most important thing is certain onent actions of trump turkey have emphasized a new theme in global markets, that the u.s. -- it doesn't matter if it is faux or friend, the u.s. is willing to take unprecedented action on trade and sanctions. that means there is a whole new risk premium into global risk markets and that means deleveraging and entrenchment into the global reserve currency. for now, the dollar has legs. guy: let's look at the positioning story around that. fx pain index, basically a higher the white line goes, the more that we are into dollar long positions.
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it is a very crowded trade. it works nicely as an inverse with the euro-dollar. the dollar trade is very crowded right now. can it get more crowded from here? we are reaching extremes. there is ank important warning and i should say, i don't think this is a multi-month trade but it is hard to fight it in the short-term. i didn't expect the dollar to break high in the first place and i still think the next larger move is dollar depreciation, but you can still get a couple of weeks from this. when you get to these extreme positions in any currency, it is unimportant morning that it is vulnerable to retracement. we turn around. it is just that when new news comes around, we are in for a turnaround. i don't see the news flow changing sufficiently enough just yet, so for that reason,
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we've probably got a couple other few days but probably a couple of weeks of dollar strength. then, we need to reassess. we may be in a situation where the longer term fundamentals will return to the dollar depreciation. i think the longer term fundamentals are that the u.s. is following an isolationist path, which erodes the dollar's relevance at the margin. matt: what about in the next few months or years, mark? do we test parity on the euro this year, for example? mark: that seems way too far away. i am someone who is bearish the euro, but i think that is quite extreme. overall on the dollar, while i am saying the breakout could go further, it is a very expensive currency and we have seen a lot of tailwind already get priced we have priced in
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a lot of benefit for the monetary policy. while the breakout has a little bit of legs, i don't think this is the start of a multi-month move. it would be a multi-month move to move euro-dollar to parity. who knows. cudmore joining us from the mliv team. it is an interesting debate around the foreign exchange story. what is coming up for us? chinese tech this morning. the biggest wipeout to shareholder wealth worldwide, a 25% drop since its january key. ahead of today's earnings at tencent, we will figure out what the market is anticipating and whether or not reversal can be reversed. this is bloomberg. ♪
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matt: welcome back to "bloomberg markets: the european open." we've got 16 minutes until the start of trading. get thehat, let's bloomberg business flash with juliette saly. royal bank of scotland has declared an ordinary dividend of two pence per share after the state-owned lender will pay $4.9 billion to settle investorss it misled of a mortgage backed securities in the years leading to the housing crisis. the bank was accused of misleading investors in the underwriting of mortgage-backed
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securities 2005 and 2008. rbs disputes the allegations and did not admit to them in a green to settle. -- is among parties holding talks to acquire a stake in swiss port as the embattled chinese conglomerate hna weighs options for the luggage handler. -- is working with advisers to explore possibilities, including the sale of a majority stake in the business. for hna andves cerberus declined to comment. the ceos of the largest london lifted -- listed companies are as likely to be -- as they are female. seven of the ftse 100 company ceos are women, equal to the number of women -- men named dave or david. there are a number who are steve
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or stephen. juliette, thanks very much. juliette saly in singapore. let's talk tech. in a moment, the latest from hong kong on tencent shareholders' $150 billion wiped out but first, let's bring you our exclusive with the ceo of logitech. francisco, hesan weighed in on what the impact of the trade war will be on his business. everybody has manufacturing and shipping from china into the u.s. is working. the first round of tariffs, if there is a second or third, we don't know yet but the first round is out there and we have had to adjust to that. see if andwaiting to when the second round will come and understand the implications in the meantime so we are prepared to act. having to think
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differently about investment and business decisions because of the uncertainty of trade policy in the u.s.? it isn: right now, uncertain where this is going. i wouldn't say it has directly affected our investment decisions, but we will keep an eye on it and have to adjust and economical regulatory environment, and we well. -- will. >> looking at the china market, it is still a growth engine but that said, the market is slowing down. looking at the for referrals of what you sell there, how are you looking at that moving ahead? are super bullish. we are not nearly as short-term as your last speaker. we are not looking at today or tomorrow, even this quarter but if we did, we look at our gaming business in china was very strong. our overall business was very strong. -- our gamingre business grew 68%. our expectation within china, now the biggest gaming market in
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the world, we will keep seeing strong gaming growth for the foreseeable future. >> are you putting all of your investment eg in one basket with chinags? low growth rate this year. what other developing markets are you looking into? bracken: we have a terrific distributed business around the world. we are in every market in the world except probably north korea and syria. maybe our proxies -- products are making it there somehow. china is a great market, but so is india and most of southeast asia. the u.s.,tralia and and latin america, so we are everywhere and have strong growth in different developing markets all over the world, and many categories we are in and more we can expand into. guy: that was the logitech ceo, bracken darrell speaking to bloomberg. tencent, which has lost more than $150 billion in market
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value since a january peak, reports numbers later on today. we are expecting them in maybe just over an hour's time. meanwhile, chinese regulators are said to have frozen approval of game licenses. it throws the world gaming market into disarray. that's go to hong kong and speak a bloomberg editor. what is behind this move from china? darrell might be right to say is a huge china potential market for games in general, but if you look at this, this is the world's largest gaming market and what has been happening in the past few months is absolutely unbelievable, where you have to they areat top and going through these restructuring, reshuffling in the personnel management and everything, and that is causing an entire freeze on the gaming sector as a whole.
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that is not just for tencent, but smaller developers, as well. a chain reaction to global game developers like capcom, activision, blizzard. all games that distribute via affected.hey are all the chain reaction has been dragging on since march. we aren't seeing any upturns in that aspect. this thing that has already put a freeze, if they lifted today -- lift it today -- it is usually two months, and we are already midway through third quarter. matt: i don't understand why. why do they care what games come out and does this mean call of duty: black ops four won't be released in the chinese market? lulu: analysts are expecting tencent will be getting distribution rights for that game and introducing it into china, but if the regulators
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don't let-up, there is no way they can release these games. .ou ask why it is sensitive in general, gaming has been a sensitive issue in china, even though we have the largest market for gaming. most gamers, four hundred million gamers, actually. at times, you see the regulators come in and criticize these large publishers for inducing gaming addiction, inducing runence and saying games against socialist core values. that is the dynamic on the ground here. guy: very quickly, let's talk about what we are expecting from earnings today. looking at the options market, we are expecting a big move either way. how much of a handled as the market have him what it will be getting after 9:00 london time? lulu: right now, we are hearing that -- all eyes will be on the mobile gaming revenue performance.
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what we are hearing is analysts are expecting a drop in mobile gaming revenue, anywhere from 6% to double digits. that is going to be a huge benchmark people will be looking at. also, any guide somewhat the company can do at this point to address this issue. if they have any guidance on what the regulators are thinking, those would all be areas people will be looking at. int: bloomberg's lulu chen hong kong. we will follow those earnings for you when they come out. we will bring them to you live. next, we will take a look at your stocks to watch other than tencent. those in the european market, which opens in nine minutes. this is bloomberg. ♪
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guy: five minutes till the start of european cash trading. let's figure out what stocks we will be focusing on. we're looking at the mining sector, and we will talk to the ceo of vestas later. talk me through the mining sector. >> this is looking like another bad day for the miners. of the terrorist concerns. the latest concerns have to do with turkey and the turkish crisis, possibly curbing demand in emerging markets for metals.
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metal stockat the exchange, all in the red. aluminum, zinc, gold, you name it. metals are down. looking like another negative day for miners. guy: hannah, we will talk to the vestas ceo later on. what do we need to be asking? deliveredo vestas kind of a mixed bag today. was a 20% beat on the second quarter, but the company kind of narrow down its full-year revenue outlook slightly. this is reflected in the cost, as well. we have seen stock calls ranging from a couple percentage down to somewhat higher. we should also focus on tariffs. --: we will definitely focus absolutely. thank you. european markets look to open
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them positives territory. go on your bloomberg and you can find the stock story on the mobile, as well. a number of markets are closed. this is bloomberg. ♪
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guy: one minute till the start of cash trading this morning. let's talk about the background story in these markets. euro-dollar, flat at the moment. there is a debate on the mliv about whether you -- where the euro goes next. the lira, searching for direction. gaining a little traction versus the u.s. dollar, as is the rand the last couple of hours. softer, 72 a little .34, but the copper story is more interesting in the commodities trade. let's show you the futures and what we will get. thes the critical day for italians. on holiday, a lot of focus on what is happening in juneau a -- genoa.
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austria is closed, as well. broadly positive european futures. individual stocks we are watching for, the mining sector in focus. keep an eye on vestas, as well. let's show you the market open. market already got the in turkey, up by 1.84%. london looks to struggle for a sense of direction. 76.13 is where we are trading. see a lightly to volume in a number of markets and we have a number of market that are closed. we will wait for others to open up. .1%.n is up .he ibex is opening up .3% on the headline level, not a lot to write home about. let's get a breakdown on what is happening here. matt: we are seeing most of the groups on the stocks 600 -- stoxx 600 rise right now. for the brechtp
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-- industrial breakdown. at the top, as far as gains are leisure,, travel and media, financial services doing quite well. financial services slice of the banks are right up at the top as far as the best performers are concerned today. the worst performers, and really, the only group with most stocks down are going to be basic materials, basic resources. you see the materials slice of the pie slightly red, but not that bad. are up today. if i switch over and look at the individual movers in the stoxx gai i see we have 358 breadth is to the upside. in highs or bush gaining 1%, astrazeneca, british american
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tobacco. basic things you need to survive and die. look at the losers today, it is basic material stocks. glencore, bhp billiton getting hit the hardest. you also have novo nordisk and novartis down. rio tinto just added to the basic materials slice. the general point is most of the stocks trading today are up. most of the groups we are looking at are up. european markets are rising slightly after a negative session in asia. joining us now, the cio for european equities at allianz global investors. it is easy to understand why asian stocks were down. they are not releasing new video games. what about the rest of the world? can we breathe out following the
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that roileds markets the last couple of sessions? lulu: -- >> nothing solved. a lot of people talking about that. fax will be fine. the turkish government has to do a lot to clear that and at the moment, i am sorry to say it is more the question of how demanding they will be in turkey. that is the discussion the market has. be big echoes. we hope for a soft landing, but that is normal. you talk about drugs and alcohol . after a good party, you have to live with the morning after. itt: we heard how difficult will be for emerging markets, as well, because you have not only the fed raising rates, but also
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this turmoil in turkey. kind of a double whammy for e.m.. guggenheim has said it is time to take risk off the table. is he right? joerg: it depends, i would say. often, these situations give you opportunities. there is no black or white. market ishow deep the falling and you have to look for bad things. especially the turkish market is hit extremely hard and i would say there could he an opportunity for you short-term. think it will be solved. turkey will be something you will have to talk about the next month or the next quarter's about. guy: what is working right now in your portfolio? me, it depends. as the cio, i overlook all
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european strategies and i see at the moment that it is fun to have small caps in your portfolio and growth stocks in your portfolio with the idea of real growth behind, but for me in my deepest heart, i am a more defensive investor and like to have dividend stocks in my portfolio. night, mostp in the of these guys are paying dividends and that is what i like at the moment. be clear, there are a couple of good opportunities in the european stock market at the moment. guy: there are a couple of good opportunities. what are they? you think dividend stocks are a good opportunity. you are defensive. where do the opportunities lie in europe? joerg: the good thing at the moment if everyone talks about risks, talking about taking money off the table, that means
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in these markets, you get the opportunities. i have talked in the growth market about that. our companies look for the softer names in europe. -- in europe. even the insurance companies look at the moment good. this is what i see at the moment and i would say, now the big advantage we are active investors and in that case, you find really good valuations. you can going to that things with good opportunities. matt: is it active investing that people need to be doing? the kids are all about index funds and etf's, sort of following the herd. is it best to break away? joerg: that is my opinion. trend run for a time and
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now the etf's and indexing investments are so huge, they make more or less the market fine for us. as an active investor, you can find your opportunities and that is what i like at the moment. day -- for ana active investor, that is a pond for good fishing. i get the biggest fish out of the pond. you mentioned dividend stocks you like. you mentioned insurers. banks aren't there yet, right? what do you think about the european banks right now? we are looking at financial services as some of the best performers on the day, but they have had a tough time of it in europe, compared to the performance of u.s. banks. joerg: that is the big comparison. what the u.s. has done right is after the lehman crisis, they cleaned out the banks.
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they take out the difficult things. in europe, only some countries. countries like the netherlands, ireland, iceland, these guys cleaned up in the same way the u.s. has done. now we see the success. dutch banks look promising. they pay dividends, they are back in the market, they know what they are doing. i would say banks and other countries are more difficult. it, you arenow asking entire banks. the cal you and banks are even not looking so bad as the market thinks sometimes, but it is more that a situation that they need to do more. it is overshadowed by the new italian government and the discussions about things. most banks in europe have done a good job, but there are better ones.
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in the nordics and the banks in the south. , if i take a look at the factors that we can look out -- look at and see what is working, and momentum continues to perform. rose continues to perform. you have already talked about that. at one point in the cycle, and you talk about this fishing trip you are on -- at what point in the cycle does value start to perform? when do we start to see it working? questionat is a good and we have to be cautious -- morethere, you often cyclical things. even if the global economy works very well, the most other countries are really in good shape on economic things. that does not automatically mean
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the cyclical stocks are at the top of the list. for stocks atsue the moment. it will be hard to see you outperforming growth. if you see the whole cycle at , momentum -- moment is the result of the political situation. i like to see the value coming up but at the moment, we need more concentration on the real effect in the economy before cyclical stocks will come back and value stocks. guy: great stuff. thank you, joerg de vries-hippen , cio for european equities at allianz. nejra cehic has what we need to know. climbing as much
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as 9.3% in the session. the most since november 2016 earlier. beating.arter ebit margins were narrowed, noting the trade war had an unsettling outlook for winter. manufacturing pope -- focusing on the positive. rbs also moving higher, up .6%. we got the $4.9 billion doj settlement confirmed. the amount being confirmed and also confirming the interim ordinary dividend of two pence per share. again, confirmation means the stock getting a lift in the session. amundi upgraded to overweight at morgan stanley. 27.50 euros. outpacey growth should
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peers. matt: i will pick it up from you. the turkish lira, seesawing as investors stem a route in the currency. a new list of additional tariffs on some u.s. goods. joining us from istanbul is yousef gamal el-din. taxes on some u.s. goods yesterday. there was a lot made about erdogan's attempt to get people to aitch from iphones turkish-based android phone. give us the latest. we had a combative speech from the turkish president and the threats he made, very clear. also, pointing to the united states in who was to blame. not just a tax on the turkish economy, but others around the world. the terrace, they are calling proportional response to tariffs the united states slapped on turkey last friday around the
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dispute on the american pastor being held in the country. these are significant additions in tariffs. rice,onal 50% tax on u.s. 140% on u.s. spirits, and 120% on cars. turkey firing back and all off the back of very strong optics from here. the russian foreign minister in town yesterday, and the qatari leadership expecting to have talks with the turkish leadership later in the day. domestically, the conversation will focus on the ramifications and damage of the current value loss in the lira. we are talking 30% in a matter of a month. that will have implications for the bondholders of foreign currencies. if you take a look at some of the graphics we put together at bloomberg, we crunched out the numbers for you. of debton dollars coming due by the end of 2019. this will be a protracted,
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gradual process in terms of the debt obligations they need to meet and you are looking at coca-cola, first up with a $500 million senior unsecured bond. that comes due on october 1, but the bulk of this is coming due in 2019 and we will see whether the central bank yields to domestic calls to move on the rate hikes which some think will happen at the next scheduled meeting. guy: what are we looking for for the rest of the day, the rest of the week? we have the thursday conference coming up with the finance minister. give us a sense of what the rest of the week looks at -- like. theef: catalysts will be political conversations the turkish government is having, the ongoing dispute with the united states looks to escalate. that is the feedback i have been getting on the ground. any signs of distress from some of the banks that have suffered
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value loss in terms of the stock market selloff and then the that broader indications the turkish government is willing to listen to investors and give them the kind of policy response that at least could clawback some credibility that has been thrown away as one investor put it in the last two weeks. guy: thank you very much. yousef gamal el-din joining us live from istanbul. the cio for european equities at allianz global investors is still with us. a lot of people are trying to do work on understanding what turkish companies have in terms of their euro and the dollar debt exposures. let's look at the other way around. which european companies have exposure on the turkish story that we need to worry about? bosque with supply chains into turkey. volkswagen sells cars and makes buses. do we have an understanding we are to see a heartland in turkey, what that meant that would mean to some businesses?
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, i would sayeral the effect for the turkish industry are smaller. partre talking about a gdp of 1%. if you go more in detail, you will see more or less all european companies, consumer good companies but even insurance -- a couple of banks, they have subsidiaries in turkey and they will be affected by things. a situation where some of the productions changed in turkey. some companies produce for some parts of the world and all products in turkey. that is on the one side positive and on the other side, if you have to buy materials outside of turkey, that will be in effect. and do nothing would
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be a mistake. turkey, if we see hard lending in turkey, that will hit european companies and that will be the back door. we will fear from a lot of companies late in the reporting season that they are not able to deliver the numbers we expected because turkey has not delivered. is putirst of all, it your hands in the air like you just don't care. that would be a mistake, you say. what should investors do? should they do the research and look at the companies, and just sell everything that has too much of a link to turkey because government turkish isn't going to give in to investor demands. it isn't going to listen to the u.s. president, right? about i'm not really sure
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that thing. at the moment, there are two parties that don't talk to each other. in the same way as the united way toexpects an honest discuss, the turkish people expect that. the issue is that if two people are not talking to each other, that is not the best thing. that is the first thing. givee end, if both parties a little to each other, there will be a solution. matt: you are not worried about a total breakdown of communication, turkey out of nato, this disaster scenario? joerg: that is the worst case. i don't believe we going that course -- go that course. bridges is bad for the second half. if the u.s. is doing that, they give turkey directly into the hand of putin.
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i cannot imagine that is a good idea. the other thing at the moment, in the same way erdogan is in elections, trump is in elections. situation onferent if both areecause normal times, they will talk to each other. maybe not friendly, but find a solution about things. coming back to your first question about the companies, -- itare some candidates is more a situation where investors are not 100% sure which products are coming from turkey in the end. there, you could do group research to try and take it out, but there would be a lot of things that the turkish industry is part of the european industry. we will see later the effects on
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those things. do. part of that you could the deep impact people will see over time. want to pause briefly and look at what is happening with the lira. almost exactly the same time yesterday, we got a significant rally in the value of the lira. this may have been retail accounts in turkey making the move. you can see the move yesterday, almost exactly at the same time to the left-hand side of the screen. we are getting another move, almost the exact same time. this does seem to be helping -- happening at a particular moment in time and we are getting a very in scale move to the one we saw yesterday. i just want to ask a question, as well, which is coming through from one of the hour bloomberg clients. , do you reckon the tariffs and the boycott president erdogan has put on
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u.s. goods will increase the inflation rate in turkey, hence person -- worsen the economic situation? that tends to have an inflationary aspect because you take away the competitive nature of that particular space. in some ways, you could argue that what president erdogan announced yesterday will exacerbate the situation. would you agree with that? joerg: in principle, yes. goods the about people need for daily life. but we are talking about alcohol. we are talking about u.s. cars. we are talking about these kinds of goods, and the effect on inflation rate will be very small. if we are coming later to other tariffs, you could be sure exactly that happens. that means inflation is coming from the outside and is even higher. maybe that is the reason why erdogan took these kinds of tariffs at the moment because
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these kind of products are nothing. nothing the turkish people need for daily life. it would be much more interesting if we see maybe more inflation coming on fuel or on food. then i would say we are coming more in a difficult situation. matt: it is a good point. it is a good question. we see tariffs on rice, so those prices go up. obviously, you don't need alcohol from the u.s. lions milkheir own to bear. they don't need to buy u.s. cars. they can buy german or french cars. they don't need to have iphones, but you could expect the prices of the turkish made android phones to go up a little. it is not one of the things -- ben bernanke once said you can't eat your iphone. that was not a quote. the cio of european investment
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at allianz investors stays with us. fascinating day in the markets, taking a look at what is going on, especially after the turnaround in the lira. let's take a look at what is going on in european equity indexes right now. i will pull it up on the debut ai screen. right now, we see the ftse unchanged, the cac up .2%, the dax up one third of 1%. for the most part, european markets are up. italy is closed, which is why you see the boot turn red. everything else is green. we saw a lot of 13f filings after the u.s. action yesterday, including berkshire hathaway. -- let's break it down with annmarie hordern. >> let's kick it off with warren buffett, putting more money into two of his favorite industries. banking and airlines. goldman sachs boosted investment.
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the filing shows that is worth about 3 billion u.s. dollars. goldman has been rising and could be worth more. all of these companies also trade higher after the close. on, apple is really interesting in terms of his stake there. he has added 12.3 million shares to more than a 5% stake in apple. apple made history reaching the one trillion u.s. dollar mark. that, 50 billion u.s. dollars. quite a call on apple. moving on, george soros, famous for a number of calls. interesting is what he is doing in the tech space. facebook, a share in before earnings that weighed on shares of air. -- shares there. not a huge stake, but taking a boost in facebook.
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number of common hedge fund managers are putting money into spotify. the stock has gained 50% since its april debut. soros is boosting his holdings in that one. miller is a former money manager for soros, he put a wager in facebook, as well. this is the biggest addition in terms of holdings. we know facebook shares did get -- in the earnings report. in the oil space, he seems to be going against the oil rally and putting things into marathon petroleum, the fourth-largest edition. you can learn more about these billionaire investors on our on our terminal. there is warren buffett. guy: a complete switching gears. the indonesians have raised rates, surprising many. the economists we surveyed
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didn't suggest we would get a rate coming through. this is the reverse repo rate, 5.5%. we were at 5.2%. the market was not anticipating this. the indonesian economy has been in focus, partly related to what is going on with turkey. and as a result of which, the indonesians are taking remedial action. i will show you as the rupiah has responded to pressure. we have seen the authorities taking action. joining usies-hippen from allianz global investors. other central banks around the world are watching, but they have a very different relationship with a market in turkey does. that doesn'tleader believe in the current interest rate environment. others will react differently, yeah? you are absolutely right.
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that the turkish lira -- leader is not defending the situation. let's pick it up on the other side of this break. other side of this break. 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. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. matt: 30 minutes into the
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trading day. headlines off the bloomberg. the past 48 hours. it spikes up. the market awaits trump's next street -- next week. points to amarket 5% move in any direction when the chinese tech giants drop after 9:00 a.m.. we will bring you those numbers live. will the tragedy in genoa calls
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europe to spend more upgrading its infrastructure? that will be a debate not only in italy but around the continent. i am matt miller in berlin. alongside guy johnson and bloomberg's european headquarters. that's a story that's been in many newspapers. article relating to british and german infrastructure. ventas is up by 7.97%. a morgan stanley upgrade this morning, admiral group trading up. pandora continuing to bounce back. balfour to the upside as well. we are seeing some of the mining stocks under pressure.
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gas continuing to trade little bit stronger. a company that makes hearing aids and telephone headsets, trade down by seven point -- down by 7.1%. -- 7.71%. here is sebastian salle. >> the turkish is trading higher this morning after rebounding against the u.s. dollar. that's as investors digest measures aimed at helping the currency. published a list of goods on which additional tariffs will be announced. an calling forg boycotts of iphones. aimed for parliament yesterday lifted investor in 10 cyclists injured. the man was arrested after crashing into commuters and striking barriers outside the
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home of the british government. the prime minister: the u.k. to come together and remain vigilant. china's regulators have frozen approval amid a government shakeup. offollows a restructuring offices. gaming companies from online giant tencent to smaller ones await approval. tencent the kind to comment. -- tencent declined to comment. powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. guy: thank you very much indeed. as surged.vest withompany came through guidance on revenues and
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margins. basically the whole tone seems to be underscoring how difficult the world is at the moment for renewable technology manufacturers. ,oining us is anders runevad the ceo of vestas. trading really strongly. you are one of the best-performing stocks in europe today. a lot of what you said this morning sounds cautious. what you think people are seeing in the numbers you posted today in the outlook your posted -- the outlook you posted that is encouraging people to buy the stock? overall, we have delivered a solid quarter. high activity compared to the market. , intake upom the top 43% year leading to record highs.
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that's a strong message. concerned about increased competition? nordstream, it seems like there's a lot more gas coming onshore in europe. does that cloud your outlook? we see a very strong commitment to renewable energy targets globally. europeh example is in 2030 has targets for been raised from 27% to 32% -- 32%. and of course the concern on climate change. outlook for renewable solid. remains and leads to a high activity
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level in the market. things we been looking at this morning is trying to get an understanding of how specifically and in story isow the tariff going to affect your business. what is your view of the situation at the moment? get?pecific can you anders: as you say, it's really difficult to be specific in such a fluid and changing environment. company and we are in 80 countries and have a global supply chain and a global manufacturing chain. mitigateow we try to the existing and potential tariffs on different components. viewu say, to have a clear of that is almost impossible,
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especially since it's changing fairly frequently. guy: if you look at the supply chain and how your sourcing materials, are you already seen in effect coming through? effect ise biggest short-term for us. please the steel tariffs. it's increasing prices in the u.s.. it has a very limited impact on us during this year because we work with different mechanisms to find the sale for our audience. looking forward, that potentially could have an impact on the cost for wind and overall in markets if we see higher
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steel prices. tariffs, if components expensive, that of course has an impact on the supply chain and we will have to try to mitigated. -- try to mitigate it. but to pinpoint that in a fluid environment is extremely obligated. -- extremely complicated. matt: a few months ago you got a big order, a quarter of a billion dollars, or may turkish wind plant. what kind of business to you have in turkey now and how are you viewing the future of that? anders: i don't recognize the order you are talking about. turkey is one of the markets we and we are seeing
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fairly stable development there. order. recognize that i think it's a market that came up but has now come down a bit. i see a burusan joint venture getting it. those are turkish when plants vestas. from vestas. i don't think those are
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unconditional orders from all so it doesn't count the same way in our backlog in that's probably why. to your question, in turkey, as i said, we saw high activity --els in turkey we seen from a delivery point of inw, turkey has been down the last year or year and a half. it's been compensated by other markets in europe. i wouldn't say we have a big reliance on turkey is a market overall. thank you very
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much indeed for your time. anders runevad, ceo of vestas wind systems. the share price rising. slumpcurrency had a that's all 10% marked off their value in 24 hours. bitcoin ethereum have bounced back somewhat. we got john lubin's take. he said the cryptocurrency market is stronger after weathering this year's a lot. >> this is not unexpected and we do feel it. we feel the exponential increase in our ecosystem. it is overwhelming what is going on. joining us now is tracy alloway. -- worried should christo be crypto investors the?
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-- crypto investors be? tracy: it depends on when they bought into cryptocurrencies in the first place. if you bought bitcoin using cash as recently as october, you are still above water for the time borrowed moneyu to buy bitcoin at $18,000 back in january, you are probably quite worried and might be getting some margin calls on your trading position depending where you traded it. concern,of broader there are reasons to be worried. one of the things that proponents said was that cryptocurrencies could act as a diversification or safe haven play to traditional financial assets and even though we saw volatility in the traditional financial market this week, we haven't seen a lot of strength
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in any cryptocurrencies in that space to the broader weakness in the entire crypto complex. to throw a big number at you, the market cap of all virtual currencies was something like it hundred 35 billion back in january and now below 200 billion. what happens next? tracy: into just will be looking for the next potential catalyst to get more positive sentiment flowing back. you saw the if. co-founder talking about the prospects of adoption of underlined blockchain technology. it something you hear all the time, not bitcoin but blockchain. shows someorting people are souring on their own blockchain projects. we haven't really seen anything from companies that were working on it years ago. the other potential catalyst to
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be adoption by the wider financial ecosystem and on that note we saw the sec delay it decision on whether or not to approve bitcoin-based etf's. that was earlier this month or late july. the next date for that potential approval is september 30. that's the date a lot of crypto enthusiasts are looking at to force a turnaround when it comes to the crypto space. if you could use it to easily buy stuff that would be a huge catalyst. thank you very much. tracy alloway talking to us about cryptocurrencies. let's get your mid-cap movers with nejra cehic area -- nejra chain which. cehic.a the upside of
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hit, has already been priced in the hasn't stopped the stock from hitting a high. alamo group also getting higher. hikman pharma has already been priced in but that hasn't stopped the stock from hitting a high. admiral group also on the positive. only, something is making the investors nervous because the stock is lower by 2.7%. something is making the investors nursed is a stock is lower by 2.7%. we are looking at a situation we are watching the quantities market very carefully. were trying to get a handle on how the global trade story and turkey, etc., is affecting this
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trading story. what is your analysis telling you? >> there are a number of issues. turkey still seems to be a side story. one of sentiment but not flows. trade andu.s. and the tariff tit-for-tat escalate into a full-blown trade war, that's what the market is a waiting to see what unfolds. even in china, the reality that this isn't going away soon is starting to settle. expect any negative change on oil prices or positive, i should say? first put when china tariffs on u.s. petroleum products and we saw crude oil, for example, come down in price even though crude -- i mean, go
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up in price even though crude wasn't on the tariffs list. initially there were concerns that it would be on the list and it was surprisingly taken off the list. butmports have doubled we have to put in proportion. it's a 5% of chinese total imports. sohink the concerns are less about the physical flow of crude into china. haschinese buying and that been low, that has been plaguing the market. chinese buying has been relatively slow. that's a caution on the u.s. china trade dispute. is a lack of clarity on whether chinese buyers should by iranian
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crude. it's weight on markets. 2019arkets are looking to and what are the impacts of a fully fledged trade war. what does it mean for economic growth in china and that is likely to take a hit if we see all these tariffs and not just on china. china -- manufacturing countries that use china as a base. that's where the situation becomes a bit more concerning. guy: turkey in many ways since at the center of the energy market and you look at the pipeline story. you look at where it sits geographically. if a turkish situation were to develop, can you walk us through what you think may happen to the energy market? i still think the turkey
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situation is a story for currency markets. for em where there is a lot of concern about contagion. where risk sentiment is very high. in terms of physical flows of commodities, turkey is a rising consumer who will struggle to pay for rising imports of commodities. but that's still a side story for the physical flows. one for market sentiments. guy: thank you very much, indeed. that china story absolutely fascinating. let's talk about the stock of vestas.r, be we spoke to the ceo a few minutes ago. the stock trading strongly and a buyback coming through. there is an effect on the trade war story, very hard to quantify
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and specify. that's according to the ceo. we spoke to him a few minutes ago. it's trading well above the normal volumes we would see. it's outperforming the peer group and the market. in terms of buys, there's a lot of buys out there. the market was anticipating a turnaround. 18 buys in only four cells. don't forget the terminal users can interact with the charts and functionality we are using. you can browse through all the recent charts and catch up on analysis. talking the charts, up next, battle of the charts. this is bloomberg. ♪
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guy: welcome back. despite the fact that the italian holiday starts today, there is no holiday for those involved in what happened in genoa. we are looking at live pictures coming to you from the city. the rescue effort continues. they seek further survivors from the tragedy. we are looking for political commentary around all this and this is something you're going to hear a lot more about. italy to invest in infrastructure despite eu
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limits. this is the warm-up to an interesting story around the italian budget. this tragedy, despite the loss of life and despite what is happening, is going to be a big part of that. as i say, i think you'll hear more and more about this story. let's check out the battle of the charts. anne-marie going head-to-head with that. >> there's a new -- with matt. report out ofew the ftse 100 that there are as many men named david or stephen as there are women. this is the gender equality index. you can see that the gender equality index is doing better than the ftse 100.
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-- guy: it may just be days or david's. -- daves or davids. the women are underpaid by at least half. es get 100 10% more pay than the women. it's not just that there aren't very many women running companies, it's that those that are being underpaid. i have the genoa story. you can expect the euro to go through more pain, especially if everybody starts breaking eu rules which they will have to if their bridges aren't safe. also see options trading betting big time on more euro drops. index has skewed bearish lee.
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ishly.te -- bear- in white to see the blended -- the bund yield. .he euro may have to follow it could we see parity? cudmore disagrees. index which the idea that the market is over positioned in dollars. i think you secretly one. there are a number of different aspects around here. even matt miller seems to be supporting and really -- supporting anne-marie. found a ceo int the 100 named matt or guy. guy: guys are going out of fashion. anne-marie wins.
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just something with the turkish story. the discount retailer halting iphone cells. toceling advertising budget u.s. digital firms. ♪ phones have made our lives effortless.
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francine: tencent losing more than a quarter of saudi since january. turkey announces new taxes on american imports from cars to alcohol. the lira gets a bid, falling back below six per dollar as a regulator steps in. the death toll rises in genoa. at least 35 died after a bridge collapsed. populists throw blame at eu budget rules.


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