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tv   Bloomberg Markets European Close  Bloomberg  January 23, 2019 11:00am-12:00pm EST

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>> 30 minutes left in the european trading day. from london, i'm guy johnson. >> and in new york, i'm vonnie quinn this is "the european close on bloomberg markets." the u.s. and europe, bouncing off technical levels, the market had to have a look at them. bounced off, good if you believe that the markets have a further upside here. it seems to point to the idea that equities could trade higher. climbing through midmorning, rolling over as we approach the close right now. down by 4/10 of 1%. the key technical levels are holding right now. the other technical numbers you want to focus on right now, in terms of the levels you are seeing today, down by 2/10 of 1%. big things happening in the foreign exchange markets. the pound big today on the
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growing expectations that actually we are going to see no deal frexit taken off the table. level tothe next key watch out for. if that breaks, maybe this is a false rally. the pound the focus today. funny, i expect the euro will be the big focus tomorrow. what are we going to hear from mario draghi and the ecb? theie: the dollar-yen is dollar focus today, but let's get a quick look at the equity picture. ,ally up 1% on the he averages the s&p 500 erasing all of that right now, barely clinging onto a couple of points a positive movement, but we are seeing earnings with united
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technologies and ibm up more than 4% right now. comcast up more than 5%. we have the ceo of viacom in this hour, too. to thet's get back banks. brian moynihan remains bullish on the u.s. economy. earlier in davos, and excavation on why he disagrees with some fed critics. >> right now that put them into the neutral range that they talked about four. the markets sorted it out and i say now that ok at this level of accommodation is neutral and therefore more if the economy stronger. they take it, they pull it up a little. guy: brian moynihan talking to jon ferro. i suspect that mario draghi is very much watching what's happening in washington right now. is the federal reserve has its sights set on deutsche bank, they are being examined by the fed on how to handle billions on suspicious transactions.
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joining us now, keith campbell, finance editor for bloomberg news. this for problem is deutsche bank? theoretically they should have had that responsibility to deal issuese money laundering surrounding these transactions. how much hot water are they in? talking about deutsche bank, it's always relative. water on several fronts. guy: cumulatively. keith: and in -- increment step, but an important one. -- federalderal bank reserve knows for sure what they had four. , denmarke, as you know doesn't have the global network that the company like deutsche bank does. reporting it seemed that deutsche bank, bank of handles and jpmorgan
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some of danske bank's transactions. of: this was money out russia, the former soviet union, and forwarded on to the united states? exactly. some people with knowledge of the situation have indicated that deutsche bank was handled more than those two u.s. thanks that i mentioned. a whistleblower from damsky side has said that deutsche bank operations handled some of the cash. so, it is more hot water. one interesting thing that happened today was that mr. savings, the guy running deutsche bank right now, is in dollars and he made a speech where he said that the worst is behind us in legal faces, but to referring particularly the panama papers. for him to say that, perhaps he thinks that is a bigger problem for the banks than the damsky
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affair. vonnie: keith, there are many it idiosyncratic problems -- many idiosyncratic problems for the european banks, many of emily to be sailed out and merged with other banks. what is the next step for troubled banks in europe? >> there is a lot of speculation on bank mergers. one year ago people speculated that this could be the big year for the deal to come back. you will find just as many people on television yesterday ofing that the complications making these mergers work, the distractions of management, and the political sensitivities of allowing these companies to merge is not really a no-brainer. you have person that predicting more bank m&a as a way out of the problems, you have someone else telling you it won't happen. metro bank today, dropping
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precipitously. walk us through why. vernon hill started metro bank as a challenge bank here about 10 years ago. metro bank, the issue seems to be that it didn't classify mortgage assets the way that it didn't classify them as risky enough, therefore it didn't market enough capital against them. you effectively have a banquet less capital than people thought. it's important to mention that there are regulatory minimums and a few analysts who have been questioning how these guys got to the numbers they got to. it still came to a -- is a big shock to the market to find out the ratio was lower than it ended up being. equity certainly
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suffered today. keith, thank you for joining us on the european banking story. vonnie? guy: let's take you -- vonnie: let's take you to first word news. courtney: the original date of of the union address, nancy pelosi asked that it be delayed because of the partial government shutdown erie the president has asked congress officials of a walk-through of the house chambers to prepare for the address. no word yet from pelosi. establishing new rules for its $25 billion e-commerce marketplace. we have learned that beijing is it helping to curb the plan ambition. goals include reducing cross-border hurdles to e-commerce and cutting costs. secretary of state mike pompeo may run from -- for the state from kansas next year. bloomberg has learned that he has spoken recently about the possibility with mitch mcconnell
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. the spokesperson for pompeo said that is focused on being secretary of state. the national assembly leader tells bloomberg that the opposition would seek forncing and debt relief the rightful government. president trump preparing to recognize him as the country's legitimate president instead of nicolas maduro. global news, 24 hours per day and on tictoc and twitter. journalists hundred and analysts in more than 120 countries, -- powered by 2400 journalists in more than 120 countries, this is bloomberg. vonnie: thank you. streaming tv deals and the future of the media sent -- media sector. that's next. this is bloomberg. ♪
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vonnie: from new york, i'm vonnie quinn. guy: in london, i'm guy johnson. this is "the european close on bloomberg markets." let's catch up on where we sit in the united states with the key levels being watched. we have the details with abigail doolittle. 500 up a tenths of 1% at the high on this intraday chart. take a look at this, moments ago the s&p 500 almost went negative. modest gains, some of this could be a reflection on the volatility we have seen. it is also an interesting story journal,"wall street we will see pretty decent declines for fedex and ups. both of these stocks lower, as "the wall street journal" is saying that amazon may be trying their shippingf business.
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home deliveries, plus helping out the shippers in terms of taking up at the warehouses and lower shipping prices. at this point amazon is still amazon had been up 1.5%. volatility remains the name of the game. all right, abigail. pluto tv at aired price tag of $340 million cash. it's their first foray into this for viacom and the latest in their series of small deals as they turn themselves around in a evolving media landscape. the man responsible for providing the shift, i'm delighted to have the ceo here. congratulations on the deal. bob bowman thanks, glad to be here -- bob: thanks, glad to be here. vonnie: this feels like a measured approach. what is the strategy? bob: it's a differentiated asset
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marketplace that supports the viacom strategy on multiple levels. looking at the deal we see it as friendly attractive. vonnie: does this mean that you are dipping your toe into ott as on other lines, or will you develop this further," more in? this is aink that tremendously attractive marketplace. i have talked about the media landscape over the years as segmenting, people getting products at different price points. still the largest segment is traditional television. we now have a kind of midprice point with these virtual's in the $45 range. players in the teens with this segment, free. which is where the broadcasters were originally and where there is tremendous consumption today in ad supported video. that market today is $8 billion and it is projected to become
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$15 billion by 2023. it's a large market and we look at this asset, pluto tv, in that market. it's very differentiated. it presents in a familiar channel type lineup to consumers and as i've thousand hours of on-demand products. vonnie: you have been concentrating massively on content since you started writing the ship two years ago. mtv, nickelodeon, all sorts of things going on. analysts are very positive about your turnaround strategy. but you are also doing deals with all of these companies and putting content out there. is there a danger that that will then cannibalize on your subscriptions and make it more difficult to keep of revenue on your distributor side of things? said, the market is segmenting and there are places where we traditionally had an operating basis and places where we could partner that made more sense. pluto is an owned and operated
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asset that will play in a free space and as i said earlier, it supports our strategy, which is fundamentally to grow our iv into as many places as possible. it supports our strategy because yes, it's a major direct consumer play. 12 million monthly active consumers over the year. growing quickly and supporting what we are doing in the advertising space. billions of incremental impressions out of the gate. and it's an important part of working with distributors. we have been doing more and more with distributors. on-demand products and, in the last two years, getting into coproduction and the opportunity to work with them, including their broadband subbase. vonnie: and some are holding onto the ip, like netflix. is there a danger that by offering a content to everybody now that that will make it if you justthe road concentrate on content?
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>> over the last two years we have curtailed our licensing content. we have thousands of hours available for use and we have taped that content and put it on an owned and operated content, adding impressions and revenues. it broadens things significantly. to 34, hard 18 audience to reach. actually about leveraging that in the in-house space. not about third-party. moving slightly sideways, i know you probably can't say too much about this, but it would be remiss of me not to mention the cbs potential mergers next week. anything you can tell me about the progress related to talks? change, thee things more things stay the same. we continue to be focused on
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moving our company forward and we are now leaning hard into the evolution of the company, growing the opportunity. pluto is all about that, returning the company to a full year revenue growth and full-year earnings growth. larger thananies you have been consolidating, disney fox, scripts, time warner, at&t. does the cbs deal need to happen for viacom? absolutely not. we are on a good track going forward. top to bottom line, which is and age,in this day expanding our presence in the owned and operated third-party assets. in the context of m&a, i come back to pluto. we have been using capital very carefully. looking at the financial expression and yes, it could be $340 million. however, we bought this company that is unique in the
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marketplace, right in the steep part of the growth curve over the last couple of months and it is something that we see tremendous synergy for going advancedn our advertising space and distribution space, leveraging our library and doing it on a global basis. looking at the price that we paid, this company over the next the type years, that's of m&a we are focused on and we think it is extremely value creating. what is your strategy for your upcoming talks? any worries that they will be challenging? we have made distribution partnerships in the u.s. a major focus in the last two years. we have evolved the strategy to be about partnering in the advanced ad space. pluto is the next leg of that. in theable to add value
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broadband space. i feel very good in the viacom positioning and the potential to create value for our partners. we have announced something new and extended in 50% of our subjects. we have not gone dark. i feel great about the viacom position in the u.s. marketplace today. vonnie: why do you think investors haven't reported the stock for the turnaround? it's been recognized that you have been great for viacom, hit by everything from netflix and "mission impossible," a great movie. is there an anticipation over a cbs deal? >> i think that people are starting to see the metrics of a stronger viacom. it's a tremendous opportunity. look, we are frustrated with the equity value as well. are essentially around seven times, significantly below are peer group, yet we have made tremendous progress and in the 18 numbers, remember, paramount was unprofitable. if you look at the implicit multiple on the television, we
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think it's very low and an extraordinary opportunity. we are seeing investors coming to it and we believe they will be rewarded handsomely. it's only a matter of time before the market more broadly seize the opportunity. comeback again soon, congratulations on your deals today, bob bakish of viacom, president and ceo. our thanks., interesting stuff. coming up next, what is happening with brexit and its impact on the bond story, 19 basis points of hikes by the end of this year. that question to this man, john rates will be joining us from ubs. this is bloomberg. ♪
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guy: live at from london, i'm
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guy johnson. vonnie: and in new york, i'm to -- vonnie quinn. this is "the european close on bloomberg markets." guy: the italian prime minister is an davos and spoke with francine lacqua at the world economic forum. we did not discuss any corrective action so far. we just approved last december. we are at the beginning of the year. it's too early for those reasons, i mean. those perspectives. a lot ofthat we have important provisions, including talks that are going into full force just now. we have a plan of investment to start. i'm very confident that our economic growth will be much foreseen. as it was
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a growthch better can be? do you have a projection in mind? >> it was about 1%. suppose,be higher, i and i'm confident of that. >> investors worry about the stability of politics in italy. and the government hold? or will we see fresh elections? >> we have a strong coalition, a really great coalition. .here's always the possibility but we are working very hard. that we cannfident last for five years. >> to make the government more stable, for what it makes sense to have a third arty? the brothers of italy?
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.> i work very well with them giving any perspective on a different composition. >> we have heard from mr. that theyd mr. demaio are unhappy with things in france and germany. what do you agree with them on? the public debate. i think the way to talk about that, we have to discuss about that, there are a lot of things that are not working well. and i mean, i mean every, every politician, every government, can discuss,state of course, about that. do these -- >> do these verbal attacks hurt the relationship between italy and france, italy and germany? >> there is something traditional between italy and
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france, italy and germany. issuesiscussed these few , that's a compromise for our traditional french. the italian prime minister, inking to francine lacqua dallas. fantastic stuff, one of the fascinating interviews coming the world economic forum. we have nosed over towards the close, sony over the ftse 500. the european close is coming up next and we will take you through all the numbers in the volume. this is bloomberg. ♪
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guy: less than 30 seconds until the end of regular trading this afternoon in europe. a lot of gray. london is lower. the spanish market is looking had aspanish banks have
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strong day relative to the european peers. and if we have a positive performance at of this market. ftse 100 rolling over, down by a 10th of 1% -- 8/10 of 1%. it is important what happens here and where we go next. miners, oil stocks and others thrown in, that is where the weight is. and the dax under some pressure. deutsche bank was down earlier on, it has come back, which is significant. 40 is down 1/10 of 1%. are very is having a very solid session leading the ftse 100. and let's focus on some of those individual names right now. this is what we have. metro bank down by 40% in the ok, a challenger bank. it has had some issues with accounting, the market has said that this would be happening in terms of assets, but the reality is being priced sharply into the
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stock today. also into the bond. -- the bonds. tech stocks under pressure. and carport with some good news -- carrefour with some good news, trading up 6.43%. take a look at the volume. this is what we find ourselves with, bang on for the 30 day average. you can see the spike on the close. it will be an interesting auction this evening, especially as the market has been nosing over into the close. vonnie: a volatile day for u.s. equity markets. we will keep an eye on those earnings, pushing some stocks a lot higher, others a lot lower. and the vix is a little bit higher, trading above 21 right now. crude oil with a big bounce earlier in the day, now down 1.25%. 109the yen is weaker today,
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54. and we will take a look at global macro movers to see what else is moving. i know that you mentioned the british pound, one of the main is,rs in the g10 currencies the euro -- space, the euro is trading well. and in the commodities index we have seen some gains given back. guy: yes, certainly the mining stocks and other stocks under pressure today, the pound not helping the ftse 100, although that relationship has become less clear late. let's talk about brexit. a stalemate with the political situation, is parliament going to fix that? the fate uncertain at the moment. business leaders are weighing in at davos. >> there is a delay because we got a deal implemented, that
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would be one thing. but i think we can get a deal by the 29th of march. and my suspicion, as many others would be, is those that want to delay it is because they do not want brexit to happen at all. >> we certainly are preparing ourselves for all possible scenarios, but let me tell you that we need -- such as a new deal scenario. reat the u.k. as a separate country, it is hard to face, but we are getting prepared >> businesses -- p repared. >> businesses are saying it is fantasy economics to talk about a no deal brexit, that it is not possible. guy: the front page of the guardian newspaper, the businesses push the panic button. mr. dyson has decided to move his businesses singapore.
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john joining us from ubs, head of strategy and economics. good afternoon. the movement over the last few days in the political situation around brexit is that we are trying to take away the risk of a no deal brexit. the market has priced in a little bit of that, but if it was removed formally how would the market respond? john: positively is a one-word answer, because the market's biggest concern is a disorderly exit any little more than two months time. so you would see a rally in sterling. the perception of the no deal exit is becoming a slightly lower risk as parliament tries to wrestle control. the bigger question is, how do you take no deal off the table. that is far less clear to us. guy: if it were to happen, nevertheless, sterling has gone up a bit already. i'm just curious as to the order
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of magnitude about what we are talking about here. we think that were we to get a transition period beginning is expected, or the government would like, after the end of march, by the end of this year cable would go to about 138. so a fairly material appreciation. sterling has been clearly dominated by changing expectations around various probabilities. and at the moment it is sitting in a no man's land, where we would say no deal is still definitely a possibility and sterling is reflecting that. but there is growing optimism, i suppose among those who think a no deal exit would be better for the economy, the more benign outcomes are becoming a little more likely. guy: if you are the governor of the bank of england and you are looking at the scenario, tried to figure out your forecast as to what will happen with the british economy, if you were to take away the no deal brexit option, how much more likely would it be that the rates would
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go higher? john: the issue is coming if you think that some of these amendments, that are aimed at taking away the risk of no deal, whether they are a essentially doing is pushing it potentially nine months down the road. as everybody from theresa may and everybody has pointed out, unless the reverse brexit altogether, no deal is a possibility, you have to agree on something and it they have no majority at the moment on anything, so it might happen later. it can happen unless you revoke article 50, and nobody is suggesting doing that. the problem in the economy is partly what would happen if you have that shock. the main thing is the uncertainty, that is undermining activity right now italy have a lot of indicators turning down. if you push the exit date down the road, you have uncertainty for another nine months. and we do not think the bank of england will do anything on rates. guy: if you take a look at the curve and do the math around where we are and where we could
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be, the market is pricingin 19 basis points of hikes by the end of the year. is that too much? john: it is if the prospect of this deal getting over the line in the next few months gets completely killed off, yes, we would say so. you would look at the boat 10 days ago and -- vote 10 days ago and to say it got hammered in parliament, that deal is finished, by the government hopes they can get concessions to win over a lot of mps. and as long as there is a possibility of a deal being ratified, there is a possibility of the bank raising rates. guy: but inflation is going in the opposite direction. john: but inflation will pick up with positive real earnings. once consumers feel confident enough to start spending money, that requires some sort of -- guy: but that would be the 138 on cable you talked about, because that would dampen inflation expectations even
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further. the market would put some of that hike into the real economy quickly. john: one of the reasons we think it would go to 138 is because of higher interest-rate differentials, so higher rates, but clearly the bank of england has that balancing act. -- thethe private sector thing is thinking about investment in the private sector. if you make this go away committee ingredients into the private sector to drive -- to grow positively this year, the bank of england made it clear that they would like to raise rates in that environment. guy: today it is all about the pound, the pound going higher. and tomorrow will be about the euro. the ecb will be on deck. what are you expecting there? john: we are expecting a holding statement. i think that they will be rattled, we have been by the signs that q4 was significantly -- and even people are thinking -- guy: the rates have changed.
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john: some of the south indicators as well do not look -- soft indicators as well do not look clever at all. we are hopeful it is temporary, that it is not telling you the full story and in due course things will look stronger. we have not revised our forecast on the ecb, we are hopeful that even if price undershoots relative to our expectations, it will react hillary later in the year. but at this point that is not certain. there has been some cause for concern. we think that the ecb wants to wait for the new stuff, the projections in march, therefore at this point trying to sort of be neutral, guarded and cautious, but not throw in the towel on the hope that the economy will do better this year. guy: and this is the financing operation that is being talked about being put forward, so maybe funnel money into the pits of the banking system that needed the most in europe. were that to become a reality,
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how would that change the prognosis? john: were it to be endorsed by the ecb,'s tells you that they think there is more to be concerned about and they have to go down the road of supporting the real economy. we know about the limitations they have on qe, and where not suggesting they want to restart that at this point, but if they see the need it tells you that they are becoming concerned about the downsides again. by doing that they would hope to shore up the banking system and ensure that the credit channels stay open, and that that helps underpin recovery. but we do not think that they will bring it back in at this point. guy: we will hear from mario draghi tomorrow. thank you. wraith, thank you. courtney: president trump's closest advisers have competing views of what he would be willing to accept every up in
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the government. one says that the president would not accept any deal that did not deliver the full $5.7 billion for the border wall, another says he would be reeling -- willing to reduce the amount. the senate votes tomorrow on republican and democratic proposals to end the stalemate. the federal reserve has stepped into the investigation over money laundering at dots bank. -- danske bank. the danish bank has admitted that $230 billion that flowed through its estonian branch may have been dirty. and the first of boeing's long-delayed aerial refueling planes in a $44 billion program lands tomorrow in kansas for a celebration. 6ut the ceremony for the kc-4 could be marred by a delay. they are far behind on the original requirements of providing 18 planes by 2017. that may not happen until next
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year. and another democrat is joining the race for the white house. the mayor of south bend, indiana is forming an exploratory committee. the associated press obtained his announcement. he is 37, a rhodes scholars and navy lieutenant who served in afghanistan. he raised his profile in 2017 with an unsuccessful run for chairman of the democratic national committee. global news 24 hours a day, on air and at "tictoc" on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. you.thank european markets now formally closed and we are working our way through the back office procedures that we have to go through, but we are through certain ones and this is where the markets have closed. the ftse 100 down by 8/10 of 1%. the pound is not helping. the dax and cac down similar
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amounts, as it can take my but the dax is still above 11000 and the stocks 600 -- stoxx 600 still above its 50 day moving average. market moves a little softer during the last five minutes. tune into our cable show coming up at the top of the hour. jon ferro is busy in davos. he will not be joining us today, which is a great shame, but i will take you through the action. if you want to find us, find us on digital radio and of course on all of your bloomberg devices. this is bloomberg. ♪
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vonnie: it is time for our stock of the hour. afterr and gamble up 4%
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bounty and crest profit. and they also announced a stronger outlook, before having a halo effect over the whole discretionary factor. >> good news for consumer stocks. pocket and gamble beating on the top and bottom line. the big surprise was organic sales growth, 4% in the latest quarter, that matched 4% growth from the last quarter and beat expectations can analysts only % growth. raising their guidance for the full year. looking at 2.4% for organic growth in 2019. the showing that they have strong pricing power, that contributed to 1% of the organic sales growth in the current quarter and 2% higher volumes. that a showing that the price increases they have been shelling out does not seem to be scary the consumers across a lot of their segments, which saw stronger volumes.
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this is showing that the turnaround plan is working out, it was heavily criticized before, but the ceo says they are doing well despite a challenging environment. guy: what is going on in grooming? >> grooming, you can see it is the one area that did not see strong organic growth. i have a chart here that shows it has fallen in seven of the past eight quarters. the company saying this is due to changes in social trends, people not shaving as often. and the fact that the purchase cycle for razors is longer than other purchase cycles, but i should say that this quarter's results show what the grooming business has been doing before gillette released their ad, "the best a man can be." it has gotten a lot of attention, the cfo saying the purpose of the ad was to connect with consumers on a deeper level it has had a that affect, said that could change the game going forward. vonnie: kailey leinz with our
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stock of the hour. and another highlight from davos. the new brazilian president spoke with john. here is a little of that interview. >> the aim of cutting state presence to to eliminate corruption. many people over the decades have become used to being clients of the state, even social programs have not reduced poverty. the concern was to get as many votes as possible. we have to confront this, we have no alternative. we have to do well by brazil, otherwise the left will get back in. it could come close to the venezuelan regime. we have to get away from this left-wing ideology that was getting worse in brazil, the population did not want this so they elected a candidate that upheld the truth. >> you have the local trade pact, most people would say that that is one of the more useful trade deals, what can you do to
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improve it? you have had talks with the european union for 20 years, but nothing has come of it. is your strategy to grow markets or to start again? began well when the labour party came into power, but then trade overlook to the ideological question. we started talks with argentina, currently managing it for the first half of this year it is superficially we have begun talks with uruguay and paraguay. we want to modernize. a country the size of brazil cannot be tied to -- for is trade. we need to make bilateral agreements. whatever the agreement with the european union, there will be suggestions by france. we have reached an and passed that will not be cleared quickly. >> it is interesting, there is a great enthusiasm here for your
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administration, because it is pro-business. but you also cause difficulties for business people here for various reasons, to do with the environment, to do with what you said, and the continuing issue of corruption. environment, most business people here do not want to be associated with deforestation. you have talked about pulling brazil out of the paris accord. are you going to go ahead with that? >> the first question on the environment, brazil is a country that more than many protects its reserves and in the environment. it is enshrined in law that a farmer must protect 20%-80% of his farm without any state support from the brazilian government. this has to be respected. any change will be made according to the law. as to the paris agreement, for some time brazil has been playing its card. when you talk about carbon
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credit, we are not getting the financial return, so for now we will continue with the agreement, but we are a developing country and we have duties, but we also have rights within the paris agreement not being met. >> you are holding the option of pulling out if they do not treat you well? >> we came to davos with many questions. we want to talk on an equal basis and talk about what is really happening in brazil. some complain my talk was short at the opening of the forum. i only had seven minutes instead of 30, better to speak about being concise, than take long with 30 minutes. there are serious journalists that understand my statement. we want respect for everyone, including brazil. this is the new brazil, which is showing the world what i mentioned earlier, as our first objective, to grower credibility. -- grow our credibility. vonnie: that was the brazilian
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president speaking with our editor in chief. this is bloomberg. ♪
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time for though global battle of the charts. eric is kicking things off. >> i want to look at the u.s. social sentiment leaders etf, known as buz. two reasons, this is the etf that looks at which stocks see the most positive sentiment. and it is beating the s&p over the last three years, which is amazing. if it were an active fund, we would be praising this. twitter is working for now. the second reason this is interesting, it has a monthly rebalance, and it has kicked out amazon, apple it has its lowest tech weighting ever. tech is going down and seeing less positive sentiment,
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probably not a good sign. guy: i think we could probably take that on board. interesting chart. vonnie: i that we would have a look at dying volatility. it may not be as safe as it sounds out there, but we are definitely seeing one measure of a volatility dropping to the lowest on record, that is in the europe rate market. where below 40 basis points now, and you can bet your bottom dollar that we will hear something about this, either from mario draghi tomorrow or in the question and answer session. you can see that chart on the bloomberg at gtv . guy: fantastic. the volatility within the rates market is worth paying attention to. i'm share mario draghi will be doing that. i will give it to eric. i like the fact that this is something beating the s&p, could be an index, and it will bring low risk.
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the tech stuff is fascinating. congratulations. and let's talk about what is happening in the u.s. markets. this is the picture we find ourselves with. u.s. markets have rolled over a little bit. that is with paying attention to. the nasdaq is down by 7/10 of 1%. and of the s&p 500 is down by 6/10 of 1%. dow down a little bit less. what is also worth watching is the russell. the technicals are a little less, a little more ambiguous at the moment. we will keep an eye on that. vix currently trading at 21. this is bloomberg. ♪
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david: from bloomberg world headquarters, i'm david westin.
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welcome to "balance of power" ." on the brief today, the senate is prepared to vote on getting the government up and running again. in monday, putting off the brexit deadline. and growing opposition to the president of of venezuela. on capitol hill, there was back and forth about the two sides coming together on this, on some bills to be voted on. >> there is hope that will happen small since there will be two bills on the floor, it is possible that we get a partisan vote again on thursday in the senate. we did say chuck schumer just recently saying that he hopes republicans will vote for their democratic proposal after the trump proposal is on the floor, because the democratic proposal does nohave things that the


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