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tv   Bloomberg Markets European Close  Bloomberg  April 18, 2016 11:00am-12:01pm EDT

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we will take you from new york to london to doha and send paolo. -- san paolo. talks in doha failed to bring in a freeze for oil production. we are live with the fallout. betty: time is running out for greece. leaders are working with the imf and meetings in washington to come up an austerity plan everybody can agree on. can a deal be reached before a massive debt payment is due? mark: the ousting of dilma rousseff is one step closer after a crucial vote in the lower house of congress. we will bring you the latest from san paolo. from bloomberg world headquarters in new york it is 90 minutes into the trading session. latest onn has the
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this rebound we have seen in the markets. julie: stocks rising to their highs of the session. all three major averages up around one third of 1%. gaining highs in the session. s&p gaining the most of the three major averages. if you look at the trajectory of the s&p 500 over the course of this early session you can see it has been up and up. shaking off any negative effects of oil and the lack of agreement in doha. discretionary stocks are the best performers. disney rising after the big opening of "jungle book." in u.s. andn canadian theaters. brian wheeze or upgraded disney to buy. the opening of its shanghai disney resort coming in june. we are watching amazon on the rise since we have been talking about, now offering its video
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service as a stand-alone service and offering prime on a monthly basis, not just annual. priceline continuing an upsurge gaining about $100 a share over the past week or so. continuation of some of the gains we have been seeing. this consumer discretionary increase happening and overall stock increase happening as we do see a decrease in oil prices. oil coming up off the lows of the session on the lack of agreement. down 2.6% in new york trading. we have kuwait, and oil strike cutting production so that is something that is helping oil prices perhaps falling further on the news from doha. mark: bond yields rising after some kind words from the fed. julie: from a federal reserve member today. william dudley of the new york fed. he says the u.s. economic news has been favorable citing an improvement in europe's growth
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outlook. we saw a turnaround in u.s. treasuries. the 10-year note, on his comments you saw an increase in yield at 1.77%. we have seen that reaction in bonds in europe as well since he is talking about the european growth outlook. across the board, talking about germany, u.k. or japanese bonds going outside, we have seen a bump up in those yields. mark: thanks very much. this is the stoxx 600 industry group board. we were down by 1.4% earlier. basic resorts. earlier.ne half of 1% it is now down a mere half percent. stocks rebounding as they did for the first week in five. i want to bring hsbc. stuart gulliver will stand down in two years as the bank
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replaces its top leadership. that is according to the sunday times. we know hsbc is revamping its board after coming under pressure from shareholders unhappy with its performance. in 2011 gulliver became the chairman -- he and douglas have announced job cuts, exited more the 80 businesses, reduced sprawling footprint from 71 countries and territories to 71 from 88. i thought i would give you a color affect and show you how hsbc has fared versus its peers since stuart gulliver became chief executive on january 1 2011. standard chartered is the worst 68%.rmer down by rbs is down 39%. roughly 31%.by
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but lloyd'sso 31% is the best performer with a small gain of 4%. i want to show you what's happening to record benckiser. boosted by durex condoms and throat lozenges. it maintained its four your outlook things to better than of consumer health products. up 1.8%. betty: i needed my sunglasses for the other chart. mark: i know, that was bright. five line barton. betty: matt miller came by the studio set right when you put that on. he is raring to battle you in battle of the charts. he's like, what is that chart. mark: i'm ready and waiting. betty: fighting words. let's check in on the first word news. vonnie: thank you.
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brazil's president dilma rousseff is on the verge of being booted from office. a lower house of congress voted in favor of impeaching rousseff and ending 13 years of leftist rule in brazil. it is up to the senate. analysts say it will be difficult or rousseff to win the votes she needs to stay in power. legalaccused of hiding loans from state banks. the government in ecuador says at least 350 people were killed and more than 2500 injured. the 7.8 quake was centered about 100 miles from ecuador's capital. some coastal towns were devastated. in japan, a series of earthquakes struck the island where the nation's worst in five years. at least 42 people killed. more than 110,000 had to flee their homes. timehe second investigators are trying to recover a data recorder from the sunken cargo ship el faro. the ship sank october 1 while on
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its way from jacksonville to puerto rico. all 33 crew members were lost. the wreckage was found 15,000 feet below the atlantic ocean in november but the voyage data recorder was never located. ted cruz says he has zero interest in being donald trump's running mate if trump wins the republican nomination. creuz spoke on good morning america. he says if trump is the nominee hillary clinton will win by double digits. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm vonnie quinn. betty: let's return to the big story, oil plunged after production talks in the capital doha this week. speaking at a press conference, qatar's energy minister sounded optimistic. that the oilze market at the moment is
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relatively healthier than what february. we think that the fundamentals of the market is generally improving. betty: joined now by our middle east editor, elliott gotkine. did everyone agree or feel as optimistic as the energy minister? elliott: they minister was emphasizing some of the facts that are out there in the market that have been underlined by organizations such as the international energy agency. gradually getting into balance with production particularly in places like the united states are coming down. they have seen recounts come down steeply in the united states as well.
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the oil ministers from around the world from indonesia, venezuela, nigeria and most members of opec did not gather here and would not have gathered here if they did not have hoped that some kind of agreement could be reached. that it was the saudi's that discussed that agreement because they wanted to allow for the deal to come into effect once iran was on board. some people -- many people disappointed. when i spoke with the iranian minister -- >> disappointed, yes. at the same time, i expected there would be problems. there were a lot of talks about iran not joining and saudi's insisting on having -- in hindsight
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-- elliott: oman has good relationships with the saudi's. and the iranians. they offer themselves as a mediator to see if they could bridge those differences. mark: is this an indication of how much saudi arabia's oil policy is being driven by its geopolitical conflict with iran? whyott: many reasons saudi's going with this policy of continuing to pump irrespective of what the oil price is doing. it is honest about it mainly that they do not want to cede market share. what should they freeze out when others are increasing their output? saudi's are banking on the fact that they have other ways of getting this money that they need to finance their budget. another double-digit budget deficit records for them this year. the partial ipo of the saudi
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state oil company. i suppose it will not be disappointing and will be on their mind at some point, the fact that iran is trying to get back market share. i'm sure the saudi's will not that highp production is not making iran cost targets any easier to hit. mark: great job. thanks for joining us. elliott gotkine in doha. as imf leaders meet in d.c., questions about a greek bailout loom. we'll get thoughts from the eu financial affairs commissioner and former french finance minister pierre moscovici. ♪
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mark: u.k. chancellor delivering some harsh warnings today. he outlined a bleak scenario saying quitting the 28 nation bloc would leave the u.k.'s economic output significantly lower after 15 years and cost as much as 2100 pounds per person. it would impact foreign investment into the country. >> we have received over one trillion pounds of overseas investment. much of a driven by the fact that we are in the eu and a single market. we have received more investment than any other eu member state. that drives rising living standards and brings money to spend on public services. as europe holds its breath over whether or not the u.k. will stay in the eu,
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companies are holding on to their cash after an eight-year record of m and a the u.k. had his worst quarter for deals since 2010. first quarter m&a spending the country is down 39% from a year ago. a lot of board london bankers perhaps? mark: it adds to the uncertainty and highlights the uncertainty. osborne's intervention comes after the french economy minister told britain that outside the eu it would be "completely killed and trade talks." here is osborne on how the u.k. currently enjoys the best of both worlds by being in the eu. >> we are not in the single currency. not in the three border area. we have a special status in the eu and that gives us the best of both worlds.
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influence over the single market without the obligations, membership of the euro and open borders would bring. betty: according to a poll conducted online, people are pretty split. 40% of voters want to remain in the eu. 39% want to leave and there is 21%, 1/5 of voters, who basically just don't know yet. they have to know before the vote. anyone interested in how the decision is evolving can go to brex. the fortune enables you to monitor the latest news polls, and indicators relative to the referendum. more bloomberg markets, coming up.
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mark: you are watching bloomberg markets. i mark barton in london. betty: i'm betty liu in new
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york. it is time for the bloomberg business flash. a victory for google in the supreme court. justices rule google can proceed with efforts to create a searchable library of the world books. they turned away an appeal from authors who said copyrights were being violated. five years ago amazon begin will be streaming as a way to retain customers. now it has grown into a potentially lucrative standalone business. amazon is starting a video only subscription business to netflix -- to rival netflix. the company is offering a monthly payment option for amazon prime. the service targeted frequent online shoppers. the force was with hasbro in the first quarter. posting earnings that beat estimates thanks to demand for star wars licensed toys. sales of disney princesses also helped. that is your bloomberg business flash for this hour.
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one of our top stories, brazil's president dilma rousseff facing impeachment. richard haass believes brazilians might have a perception problem. he explains on bloomberg surveillance. >> the front story, the president of brazil lost the impeachment vote, the first of several steps. essentially moving money around, cooking the books. she's not involved in the big .candal, petrobras billions of dollars siphoned off from the state oil company. she is not involved even in personal enrichment. she got hammered for a misdemeanor in some ways. you have a country that is fed up with her role, fed up with economic deterioration, what they perceived to be her incompetence. tom: outstanding in the transition of argentina. is there a place to go for the brazilian people as argentina chose to make a right angle move?
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richard: what we saw in argentina is a government that is doing all the right things and maybe has 18 months to prove to the people that the medicine they are being asked to swallow now is going to be worth it. argentina's economy is down about 2%. brazil's percent is down 3.8% last year. brazil has not begun to transition. first it has to get through this messy impeachment issue. let me give you an example about the dysfunctionality of brazilian politics. in their congress, there is no threshold for political participation. better than two dozen parties. imagine trying to govern with a coalition that have to be framed with more than two dozen parties. you can't make the government work. on top of that you have state-owned oil company that is corruption on steroids. you have a political culture that is deeply flawed. at the end of the day i know there's political turmoil because of this corruption
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scandal but it is an economic crisis. whoever follows dilma rousseff needs to put this economy back in order. it is a huge mess. i do not think she is coming back. i think she will lose the vote and be ultimately suspended for 180 days and i think her era is over. going topresident is take over for probably 2.5 years unless the legal problems ensnare him. we could have a conversation about all the legal challenges but he and others are not afraid. to answer your question, you have to begin to reduce the deficit. i think that means rolling back some of the social safety net. you retire at 60 with full benefits. you ultimately have to open up the state oil company for some sort of international participation. you have to try to get a political compact. i think you have to transform the political system before you
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transform the economics system. francine: more open economy, respectable labor laws. is mr. temer the right person for the job? richard: he is under a legal cloud. imagine if you were to do a situation where you said he is not going to run for election in 2018, he's going to be a transitional president who will do it for 2.5 years. a big question will be who he brings in to run the government. does he bring in the best and brightest? doesn't look like a technocratic group? if he does that and announces a broad reform agenda he could tee up brazil for his successor. one person who might want to be a successor going back to the future is the former president. he might actually run. mark: you heard richard haass mentioned petrobras which brings us to the topic of oil. the meeting of most opec members in doha over this weekend. talksices fell as output
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ended without an agreement to freeze production. the strength of u.s. production. >> we are producing 4 million or 5 million barrels a day. more than we did a half-dozen years ago. we are much less dependent on .he physical supply of oil what we are seeing in the markets is we cannot make ourselves immune from the economic or financial consequences. we are integrated with the rest of the world. that's why this argument about energy independence misses the point. we are not financially independent from the effects of our integration on the global economy. francine: what happened in doha was i guess a fixation, saudi arabia with iran and iran with saudi arabia. are we ever going to have an agreement between the countries? richard: cartels require a degree of trust. there are many things between saudi arabia and iran but trust
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probably would not figure on the list. the saudi's are worried about market share more than anything else. worried if they pull back the iranians -- any number of others will fill that space. i think it's going to be extraordinarily difficult particularly in the world we are in with depressed demand given the low levels of economic growth. i don't see opec coming together to anything like its historic role. mark: president of the council on foreign relations on bloomberg surveillance. have a look at european equities. roughly five minutes away from the end of the monday session. when it opened today you would have thought stocks could have finished the day lower. 1.4% down after the meeting in doha failed to end in a production freeze among opec and non-opec members. lossespulling back those through the rest of today and it looks like the stoxx europe 600 will finish the monday session
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higher. the best and worst performing industry groups. look at oil, it was down 4%. down a mere quarter of 1%. thanks -- banks come a travel and leisure, the best performing groups today after the first week of gains in five weeks. the european close is a matter of minutes away. imf leaders meet in d.c.. questions about a third greek bailout loan. we get the thoughts from the eu economic and financial affairs commissioner and former french finance minister pierre moscovici. ♪
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thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. mark: you're watching the european close. in london with
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betty liu in new york. the stoxx 600 opened 1.4% lower after rising last week. would have guessed it would have finished higher today after the meeting and still where the world's biggest -- the world -- the meeting in doha where the world's biggest oil producers could not reach an agreement. the stoxx 600 trades at about 15.6 times estimated earnings. nuns almost 20% above the average multiple for the last five years. it was all about oil today. this is the stoxx 600 oil and gas index. since the 20th of january. that's when the gauge sank to a 13 year low. how it has rebounded since then.
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companyat day every oil is trading higher. i want to show you the technology index. just look at a few of the companies that have fallen today. what they have in common is they all supply parts for the iphone and those speculation that apple will cut iphone production. the technology gains down by a fifth of a percent. it just tells you how important apple is. what about the ripple effect with energy and oil prices?
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brent has been steadily rising. producers cutting back on production. that all helps continue this rally in brent. we seem to be tapering off as those talks neared. judging by what we have seen today it looks as if this is going to be bearish for oil. agreement on a production freeze. i want to get to abigail doolittle. abigail: we have the nasdaq trending moderately higher at this time. one of the worst performers all day has been the shares of netapp. this is a storage company. analysts are saying a survey
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shows weakening i.t. demand for storage. analyst told me that he thinks the current represents a buying opportunity as well. we see the possibility of some consolidation. perhaps there is going to be an upside for netapp after consolidation. netapp is one of the worst performers. what are some of the other big drags? abigail: the shares of apple. the stock is having its worst two-day slide since january after report from the nikkei asian review says the company asks suppliers to keep
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production at reduced leve, suggesting that demand for the iphone is weak. he said the company was initially talking about recovery into the june quarter. this is all sending stocks back down. thank you, abigail doolittle. let's check in with vonnie quinn. some breaking news out of israel. vonnie: an attack on a bus in jerusalem. the cause of the blast is unknown. preliminary indications point to a terrorist attack. at least 15 people are hurt. carter is in baghdad after meeting with iraq leaders. the u.s. will send 200 more troops and apache helicopters to fight isis in iraq.
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saudi arabia will try to impact -- limit the impact of subsidy costs on its citizens. the government will provide cash for low to middle income saudi's who rely on the subsidy. cutting subsidies for gasoline, electricity, and water. murdererympian and oscar pistorius appeared in court today. he was found guilty of murdering his girlfriend in 2013. are investigating a collision between a british airways passenger jet and a small drug. -- small drone. the plane landed safely after exploit from geneva.
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i'm vonnie quinn. brazilian stocks are positive after the lower house of congress voted to impeach president de la rue says and send the case to the senate. versus --nt gilmore rouseff and-- dilma send the case to the senate. >> we are waiting for it to take about two weeks in the senate and then they need to decide if they will accept impeachment proceedings or not. if they do, he will be temporarily -- she will be temporarily removed. and then her vice president takes over. mark: is it likely the senate will support her impeachment? >> it is seen as very likely. not see 20% chance of this
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passing the senate. have we heard from dilma rousseff herself? >> we have not. we are waiting for her to make a statement. her attorney general spoke last night. the leader of the
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tocked obama's plan basically stop deportations of millions of undocumented immigrants. we will continue to monitor these headlines. that is the latest on that. we will be back on bloomberg markets.
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betty: it is time for our global battle of the charts where we take a look at the most telling charts of the day and what they mean for investors. you can access these on the bloomberg are running the feature at the bottom of your
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screen. we will be kicking things off. against mark is lisa abramowicz. >> i want to talk about policy failures. has is a chart of how japan absolutely lost control over its markets. here you can see the two lines. this represents the japanese yen versus the u.s. dollar. yields have plunged. the yen has risen. basically making japan less competitive. everything we have seen with doha has allowed this to rise further making japan less competitive. as you say, losing control of their economy. mark? welcome to battle of the charts in the european close. the original battle of the charts show. don't let bloomberg try to
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take out title -- our title. we were the first. where is the love? where's the love for the german stock market? , germany stacks was flying. since then the nations stocks have fallen roughly 19%. the strategists are turning bearish. back in january we pulled 14 of them. they forecast the docs would finish the year up by 22%. would finish the year up by 22%. right now, they are saying the dax is going to fall by one point 5% which is the first time the dax would have fallen since 2011. what is going on with the german stock markets? i've done a little chart.
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since april the 10th. you can see the dax and the stoxx 600 roughly down by 20%. there's the dax and there's the target price of analysts. why the gloom? it's pessimism about earnings. companies have been punished by the slowdown in global demand and the strengthening euro. bulls remain. abovex it is trading estimated earnings. that is one of the biggest discounts relative to the stoxx 600 since we started compiling data in 2005. g you want to see the love, #btv 969. betty: i have been told my judging is very arbitrary. i'm going to get even more arbitrary today. market beats lisa because he has
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six lines versus your two. mark: next time, you need to do seven lines. betty: let's look at another chart. a quick check on how oil is trading. a reaction to what we saw over the weekend. we are climbing back up. under the $40 a barrel level. that's after it fell as low as $37 on doha's failed to come together on a freeze on production. rugbystill ahead, growing into a global game. the chief executive of harlequins is here to tell you all about its first offering hoping to raise millions for expansion. stay with us. ♪
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mark: the harlequins are hoping
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to take the rugby brand global. about 15hopes to raise million pounds to drive expansion of global growth. that includes the u.s., already one of the fastest-growing markets. david ellis joins us. congratulations. what are you going to do with the money? >> thanks for having us. we've just come off the back of a great world cup. we actually play in a really strong place. this is a bit of a golden era for us. where can you move up another level? how do you do that? >> we are in great shape. we have a good sustainable platform.
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we know ourselves as being well throughout the world. growing into our field around the world, helping more in our communities. taking rugby products and expanding different areas. women's tag and touch. we also want to make sure to keep our edge. as we become more competitive we sort of need to keep investing into the playing side to support infrastructure. mark: you have a four-year deal with usa rugby. how big is it going to be in the united states? >> i think there is huge potential for rugby in america. there was a phrase that was used very nicely. 2 million people are now playing rugby in america. it's one of the fastest-growing sports. from a rugby perspective, really impressive. we feel we've got some opportunity to help augment that.
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maybe from a player's perspective, send some players over to america. bring some players back to us. our coaching infrastructure, we would like to work with america to make that sleeping giant wake up. mark: i wish we had more time. please come back and talk to us and tell us how you are doing. david ellis, chief executive officer of harlequins. morse will be coming on to talk about oil prices. europeanok at how the equities session finished monday. ♪
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scarlet: good monday afternoon. i'm scarlet fu. alix: i'm alix steel. no deal in delhi. crude oil falling below $40 a barrel after talks between producers failed to negotiate a production freeze. -- edris discusses morse discusses. proceedings now head to senate for trial for dilma rousseff. earnings justix got a little more interesting after the ceo's remarkable shift. amazon is taking a shot at the standalone streaming service. scarlet:

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