tv Bloomberg Markets Bloomberg December 10, 2015 11:30am-12:01pm EST
we are wrapping up the european trading session. we are bouncing back up? mark: bouncing back up, glencore giving a boost to european mining companies. the european close starts right now. --"the european close" starts right now. betty: we will take you to london to johannesburg. mark, kick it off. mark: betty, check it out. .1 percent. [laughter] if we are down, it will be the seventh day. it has barely changed. interestingly, one of the losing stocks in london today -- what is happening in south africa,
betty, is having a bearing on some of the companies in london that get revenues from south africa. i am talking about old mutual, they sink to a little as financema binned his minister yesterday. the swiss national bank, betty, also kept rates at a record low. no big bazookas, betty, like last thursday, with the ecb. betty: no, but however, there was, i guess you could say, a bazooka coming out of glencore and their investor day. that is one of the best performers in europe? mark: 7%, biggest rise in need mups, vowing to cut its debt further, raising is -- it's
forecast. thecally it has become latest of mining company to try to counter the slide in commodity prices. right now, betty, it is wrestling with anglo american to be the worst stock on the ftse 100 this year. 74%. american is down by betty, that is one race you do not want to win in 2015. betty: indeed. we will check back on the markets of course, but we first wordck on the news. david? david: a protest over the killing off a black teenager by a white police officer and the city handling of the investigation in chicago. critics are calling for mayor rahm emanuel to resign, saying he withheld video showing the killing for months. liberty university in the genia is ending a ban on guns in
student dormitories. the school president jerry wealth -- jerry falwell junior, says that students requested the change. ban ki-moon says he is reasonably optimistic there will be in agreement in the climate change talks. the proposed deal would require all countries to pitch in to cut emissions. beijing lifted the red alert and post two ago because of smog. schools reopened. they eased traffic restrictions. they are getting a loan from the -- asianvelopment .evelopment bank outgoing president christine fernandez skipped the inauguration of the new argentine president. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. i'm david gura. betty? betty: david, thanks.
a big day for interest bank -- decisions. the s&p bankew, president explains why. >> there is no necessity to change monetary policy with negative rates at .75 basis points negative and also to intervene in the exchange market as necessary. betty: and we also heard from the bank of england as well. mark: we certainly did. the governor mark carney and his fellow policymakers left the -- joining us now, and david nolan. thank you. the boe said today there is no mechanical difference between
what it does and what the fed does. do the markets believe that or not? david: not really, no. you're absolutely right. the boe is caught in the middle. once the fed moves, at that point, the market will bring .orward the likely timing and the boe, when they published a report on the fed rally, at that point, we will start talking about rates and the u.k. going up in 2016. mark: even as the market did feeble prices -- is that not a slightly more dovish tone or not? david: slightly more. i think the financial policy ministry is more interesting. i think they're concerned was they could be concerned about emerging markets, but also financial
markets more generally. they want to see the fed go. mark: is the boe overly worried about emerging markets, global trade? it seems to be a bit split. the british chamber of commerce highlighted that yesterday. david, the fed has dropped its global concern. should the bank? david: the markets are concerned about economic growth globally. the fed is more about how fast trade is going. seeink we bank of england his trade is not growing at all. the concern, once the fed moves, you will have all of these traits unwinding. you have all of these problem's that will see redemption, and the major concern is more about markets and actual growth and global gdp. that: we heard opec say oil production is at eight at a three-year
high. almost 32 million barrels a day. given that, net net -- net-net, will that be a positive for the global economy? will it be a benefit? david: when it comes to looking at things like european growth, certainly oil prices are a boon. that is the story for the eurozone in 2014, the low oil price was one of the key reasons consumption started getting going. for the u.k. as well, weaker oil prices are actually good news. i would look at it in those terms. you go from the old producing states to the more developed markets where the oil prices will help drive this recovery. indeed, and that is allowing the central banks to keep that stimulus in the market . but what about the fed though?
does it make sense for the fed to hike interest rates as early as next week? david: that is our view. they will gradually normalize rates. the u.s. has been calling for a december rate rise for now two years -- betty: two years? wow. this: yes, two years ago december. they will have another rise next year and another in 2017. and obviously the bank of england will be operating in that environment, which suggests that the be a we can get rates to 1.5%. mark: it might be a while before gets its key rate at -- david: absolutely. mark: some are saying that it should have cut to weaken the franc -- david: possibly.
best to wait for the fed? david: i would wait for the fed. re-prices rate rises in the u.s. and the dollar stocks trending more globally, that takes pressure off the snb, but also the ecb. mark: canada just for any depreciation and the frac? no? david: i do think so. this is the way the central banks operate. see you.id, great to maybe next year. that is what the bank of says.d's david owens we will have him back here to see if he is right or not. david: [laughter] if he is wrong, who knows what we will do to him. betty: uh-oh, he may have to do the battle of the charts then. mark: yes, that is punishment.
lower -- betty: i was so wrong. mark: time for the betty: battle of the charts. time for the bloomberg business flash. first time unemployment benefits ms ofd last week, clai 15%. even with the increase, applications are holding to the lowest level in 40 years. and shoppers will be paying with .heir smartphones the retailer will offer these service at its headquarters in arkansas. an international rollout is next year. that could make walmart arrival to apple pay another digital wallet apps. and automakers are required to report to tell the, injury, and warranty repairs. chrysler says it is revising procedures to make sure it is in
complaints. you can always get more business news at bloomberg.com. staying on auto news, volkswagen revealing details on its massive issions scandal. the ceo spoke exclusively to hans nichols in germany. can we expect any shedding or trimming of models? >> 12 quite excellent brands, i should add. in their entirety. the make up, what we call, volkswagen group -- the make up what we call the volkswagen group and we are very happy and glad. nothing will change in the coming years, we are sure. when you talk about the variety of different models or within the volkswagen group, it is true to say that we are going to see some adjustments in our portfolio. we will see we have many
different engine/drivetrain cooperations. we are quite sure that we will have a number of questions related to brands and regions in the world. is there possibly a need for change? when it comes to these specific skills and potentials of the plan, they will be coordinated. i think we will see a more successful volkswagen company that we see right now. let me make sure i understand -- brands including assets as well, rans including ducati? -- brands including ducati? s: these are all very successful and there is no reason to consider getting rid of those assets? includes the truck
assets? you see no injury to those results? course not. for good reason. we have incorporated, for this drug companies a couple years ago, and we are very confident these vehicles have a lot to gain from those collaborations in creating synergies. this is true not only for the technologies. .t is true for humans resources they are well placed to come up to this challenges. again, that was hans nichols speaking with the volkswagen ceo exclusively. mark, let's move to another big european corporate story, volkswagen to glencore, which i know you have been all over throughout the trading session. the selloff in metals resulting in glencore gaining
even more from debt selling assets. calming investors after saying rein comfortably cash flow positive." here covering the story. he has been up since the crack of don. things for joining us here on "the european close." jesse, is this a turning point? dare we even utter those words? good question. i think they will want to see the glencore ceo in at parts of before they get comfortable. they are talking about getting debt down to $18 billion with a few measures to come. the agricultural business sale. but glencore's fortunes will largely be determined by commodity prices and at the moment, most analysts will tell you until we see big reduction in supply, it will be hard to
sustain -- mark: it was only a few weeks ago we were talking about dividend measures, the for one. are they confident this is the final set of measures question mark jesse: that was three months ago. at the moment, i think this will be enough. obviously the rating agency what to see further asset sales, lower cost, public shutting mines. betty: ok, they are going to need to do more. what about ipo's of their units? what about their trading division? what are we going to see on that front? the agricultural unit ipo was the surprise of the day. we knew that they were looking to sell a stake in that business. they are talking about a geo stake orlling a
creating an ipo. a looking at that for the second half of next year. most analysts are you that entire business, actually, at six billion dollars, nine billion dollars. a state could be worth 3,000,000,002 $5 billion. mark: it has been a week since of two thirds of the workforce. who will be left standing when it comes to this mining revamped on the global scale? betty did a fantastic interview with sam walsh in february. that just goes to show how speedy this retreat has been in world, even the biggest players have failed to see it coming. the lowest cost reducers will be best positioned to withstand this route in prices. obviously the higher cost producers, the ones with the big debt positions --
glencore's crafted, anglo scrapped it. in the boom years it was all about progressive payouts, as they were known, jesse. are they safe at the big two or not? dividend is unsafe, rio perhaps more than the hp -- bhp. they are seen by analysts as having more ability to continue in the short term. mark: you gave a nice comment liu's interview. betty, you are getting some love. well done to jesse. betty: i heard that. stick around, because peter, the chairman of bloomberg llp, the parents, parent of bloomberg news, the senior independent nonexecutive director at glencore. all right, coming up, south
mark was noting earlier, south african markets were thrown into turmoil after firedent jacob zuma his finance minister. the minister was pushing to contain spending. this comes as the economy faces a credit downgrade to jump, mark. the market slumped the most in years after the dismissal of nene. i want to get to a chart that highlights how much south
africa's markets were rattled today. this is the rand. this is the rand to the dollar. the white line, the rand, has fallen to a record low. the redline is the 10-year bond deal, on prices falling by a record amount, the yield rising to its highest level since the financial crisis in july 2008. the blue line is credit default swaps, the cost of protecting against default, and as you can since april oft 2009. let's get to our correspondent in your head's work very great to see you. tell a small about your new finance minister. he has addressed the public. what was the initial view about what he had to say? mark.er: hi, the publicressed just after he was introduced by
the president at the capital markets in pretoria. he is coming in at a time when economic indicators are unfavorable. global economic indicators are heading south. he was to make sure that investors have some sort of stability or assurance about the markets outside of south africa. as we have seen them hit record lows, the market is down 1% and yields rising. the only concerning thing, it is still above the dollar, mark. amo, what does this mean for south africa going forward? where next? reporter: this is adding more uncertainty to a more uncertain situation. he may concern going forward is
whether he will continue on the fiscal path his predecessors had, and agencies have pointed this out as a key factor to keep us at investment rate, betty. betty: thank you so much. that does it for us in new york. tell us where we are. to say that betty liu lost to mark barton in today's battle of the charts. tomorrow.e you all have a good evening. ♪
from bloomberg world headquarters in new york, here is what we're watching. the slumping oil prices persist for a fifth day. howill take a look at billions of barrels of oil can also disappear in accounting smoke. twitter figures out a way to make money off of people without a twitter account. ad elizabeth holmes fighting eddie drift of controversy. can she survive the pressure? first, we want to check today's activity. it looks like an update for now. ramy: we will see if we can hold on to those gains. saw an uptick and then we ended up in the red. we are up for the force time -- for th