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tv   Bloomberg Markets  Bloomberg  May 18, 2016 10:00am-11:01am EDT

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bloomberg television. betty: we will take you from new york to london to boston in the next hour. shares of target are tumbling after first-quarter sales missed analyst estimates. the discount chain delivered a disappointing forecast. we will preview the latest fed minutes which come out a bit later area at how concerned is janet yellen about a potential brexit? will it affect the fed interest rate decision next month? betty: we will talk with charter communications chairman and ceo tom rutledge as he completes a $55 billion purchase of time warner cable. what will that mean for the future of the cable industry? let's hedged trade to the markets desk where julie hyman has the latest on this declining
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market and we saw the s&p turned negative again for the year. julie: sort of bouncing around a bit today. turning negative for the year once again. it looks like investors are looking ahead to the fed minutes this afternoon. they want more information on the that's next move and in waiting for the ash on the fed's next move -- on the fed's next move. the s&p and our remain in the red today. -- and dow remain in the red today. the best-performing group today as we see an increase in estimates for the fed to raise rates or moving .orward of those estimates financials have been benefiting from that kind of you. technology, relatively strong. drop in consumer staples as well as utility telecom and discretionary. target is part of the story today. another retailer disappointing. earnings-per-share actually beating estimates put sales weakening. comparable sales up 1.2%.
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one point 6% is what was estimated by analysts in the company ceo brian cornell saying it is an increasingly volatile consumer environment. that echoes what we have been hearing from some of the other retailers. target from the story on . it looks at those comparable sales. you can see the trend has been slowing growth over the past several quarters and his growth of 1.2% is the smallest since the breach. that big credit card breach all the way back in 2014. the stock is having its worst day in about seven years and is trading at its lowest since november of 2014. the damage is not limited to target. some of the other big box retailers are down today. walmart is down with earnings tomorrow. we have yet to hear from the .iggie, down 3% costco down 3% as well. home improvement has been a bright spot. lows is a bright spot.
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shares up 2% as home depot flags after its members yesterday -- after its numbers yesterday. lows comparable sales numbers of 7.3%. the second time it is outpaced home depot since 2009 and the widest outpacing, the biggest cap between same-store sales and home depot's ever. interesting that it is taking a leadership at least for this quarter. betty: besides looking at the retailers, the dollar is also something to watch. perhaps rising expectations for what the fed is going to do. .p about 4/10 of 1% we have seen with the exception of oil some of the other commodities lower today particularly within the metals. gold and copper trading lower. that has been putting pressure on some of the miners. i know that has been happening in europe as well. mark: you were talking about how -- you are pretty much flat
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for the year. the stoxx 600 itself, slightly different story. -- it looksself like technology is not treating me well on my return area i can move on to this. we are down 9% for the year. we have not had a 1% gain for almost a month which shows you there is a lack of a trigger for further gains. today we had goldman sachs cutting its rating on equities to neutral. says the stock may not be attractive until they exhibit sustained earnings growth. if you needed evidence of or a lack of it go no further than burberry. the group -- the luxury group lowered property expectations. it unveiled a multi-year turnaround plan based on a narrow product range. this puts a lot of pressure on chief executive officer christopher bailey. he is also the chief creative
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officer. can he do both jobs at once? these are the big four luxury goods companies in europe area were very down by 24%. christian dior, up by 13% are hermes up by 25%. -- earnings and sales missed estimates. bernstein says second half result missed estimates and weekd -- the results were and applied market shares lawsuits. shares are down by 7%. they were 9% lower. the biggest fall since january last year. just getting away from the earnings that, we had some data out of the u.k., showing that the u.k. labor market is cooling.
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the number of people in work rose by 44,000 in the first quarter of this year. in the back end of last year we saw a figure three times that level. unemployment fell by 2000. rates of the lowest level in a decade. earnings, excluding .onuses, slowing to 2.1% we are below the 2.9% we saw in july last year. no evidence of wage pressure. our companies holding back ahead of the referendum? it seems so. betty: it would make sense. let's check in on the bloomberg first word news. shery ahn has more from our newsroom. this one a split decision. bernie sanders won the democratic presidential primary in oregon and hillary clinton claimed victory in kentucky. hours after the polls closed it was too close to call. the primaries did not do
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anything to change the dynamic of the race. clinton is inching closer to the number of delegates she needs for the nomination but sanders is not giving up. >> let me be as clear as i can be. i agree with you, we are into the last ballot is passed. shery: the next big test for the democrats, primaries in california and new jersey and four other states. according to their latest financial disclosure form the former president took him 1.4's -- $1.7 million in 2015. down 93% from the previous 16 months. likely republican presidential heinee donald trump says made $557 million last year. his campaign provided few details of how he earned the money. is in cairo for talks with egyptian officials.
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they are exploring ideas for supporting a new is really palestinian peace bid. kerry flew to the capital the day after egyptian president offered support for french initiative to revise the peace process and says he was willing to serve as a mediator. in sri lanka, rescuers are searching for 200 families missing after a landslide caused by torrential rain. at least 19 deaths blamed on the weather so far. the mud making it difficult to use heavy equipment in the search. wildfires in canada are threatening oil sands operations again. the nation's largest oil producer has evacuated three sites and was restarting in northern alberta. canada has lost about one million barrels of production per day because of the fire. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm shery ahn. betty: thank you. let's get back to our top story.
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a both that minutes are due at 2:00 p.m. eastern time today. dennislar is rising as lockhart and his san francisco counterpart john williams both say at least two rate hikes this year, maybe warranted. >> these are projections at a point in time. they are not promises. i don't know how many rate increases we will have. my assumption currently is two, possibly three. i don't know. it depends on how the economy evolves. >> two to three seems reasonable given where the economy -- job growth we are seeing, inflation data we are seeing. betty: there still remains a number of risks that could knock the fed off course. joining us .s patrik schowitz a global strategist at j.p. morgan. it seems like almost overnight
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the chances of two rate hikes has suddenly gone up. i want to point our viewers and you two are bloomberg which wirp.the function here, what the fed is predicting in terms of rate hikes. now it is at 18%. has it changed enough? , weik: for what it's worth change to september after the last fed minutes. there clearly has been a concerted action by fed speakers to get a little bit more risk into the market. i think they are probably uncomfortable with so little being priced dan and they want to have a bit more option alley ality.ion we thought it would of been a cheap thing to actually put a hint in at saying june is
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actually a live meeting and they didn't. that's kind of what tipped us over the edge. in addition to the speakers we have had a bit of better u.s. data. the data this quarter was very weak. that caused people to push out fat hikes. we had -- push out fed hikes. we have better industrial production data the other day. some of the stronger bears on the u.s. economy have been pushed back a bit. betty: have we priced in enough properly in equity? patrik: the equity market is a little bit betwixt and between and we see a little bit of that. good news is good news. bad news playing out yet again. we have seen this movie so many times. i think the equity market
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probably initially would not like a hike to the honest. traditionally we always say the equity is the market has a bit of indigestion. the problem you have this time is that the hiking cycle is so delayed. traditionally hiking cycle tells you the economy is strong enough. this time we are so late in the cycle with hikes it's not as clear. i would also point out toward emerging-market risks. what the equity market might be worrying about is if hikes get priced in, that leads to a restraint than in the dollar which we don't think but if it does people are going to start -- what caused the selloff earlier this year? were is mostly about china. mark: patrick you say the hiking cycle has been so delayed. will it further delayed by the upcoming referendum? we had some bloomberg
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today frome reports economists which suggest if the u.k. votes for brexit we could see the fed pushed back by up to months. what do you think? patrik: i think the problem that the fed has is the timing is a little unfortunate. the next meeting is about one week before the actual referendum. they won't know what the outcome is months. .hat do you they can look at the same opinion polls as we do. opinion polls in the u.k. have not covered themselves in glory in recent years. we are all suspect about what they show. vote, whetherit they have hiked in june or not i think that will probably lead to financial volatility in has the potential to push them back. pollsat it's worth, the seem to be trending towards showing more of a majority from
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a for their hard to read from this time. mark: japan dodged recession. declined. -- inclined. -- cap x declined. are we continuing in a stagnation -- in a stagnation environment that has been in place for two decades? contractual acceleration. datak: japanese gdp came in stronger than expected. we are pretty negative on the fundamentals for japanese assets. underweight japanese equities and have been for a while. issue't think -- the real in japan is the risk that the
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boj and a bit more coordinated with the government, does something big in june or july. that could give you a rally in japanese risk assets. we probably think that would remain short-lived unless it can really change the direction in the end. we are dubious about that. mark: thank you for joining us. showk schowitz, global just at j.p. morgan asset management. we will check in on the u.s. companies moving in the early session including apache, surging on reports of a potential deal. ♪
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mark: live from london and new york, i mark barton. betty: i'm betty liu. it's time for the bloomberg is this flash. stake too raise its become the industrial robot maker possibly largest shareholder. a deal that values the german company of 5.2 billion dollars and illustrate the surge in chinese investment in europe. kuka said it would evaluate the offer. volkswagen trying to diffuse investor criticism. andan to improve profit review management pay. a plan outlined in a letter from ando to activist hahn.tor chrusis the brewer is due to be taken over by anheuser-busch later this year.
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sab miller was hit with costs associated with a takeover along with charges related to its african operations. bloomberg business flash. let's head to the -- julie: a lot of rumors and reports this morning that are moving stocks. whether or not they are going to happen. one example is apache. apparently there was a report on something called oil and gas people.com that occidental petroleum was going to be making an offer for the company. occidental says we don't know anything about this report. apache says all we talked about at the townhall today was more details for layoffs. the company said it will be cutting 37 jobs and it's north east unit. shares did surge in the premarket now coming down to some extent. still higher on the day up by almost 4%. occidental said it did not know anything about the report.
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no shares are down about 1.3% in the wake of that. we are watching the anderson's. a grain trader, one of the largest remaining independent grain traders. it rejected a hostile takeover offer from hc to holdings. holdings. hedge fund manager phil falcone was making this offer. its board of directors has hc2ct did two offers from at $35 and $37 per share. -- that price is 43% higher than the anderson's close on tuesday. shares are also trading higher. church and dwight is moving on some speculation this morning. the maker of arm and hammer baking soda. shares are higher by almost 2%.
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negocios reporting that proctor and gamble might be interested. representatives did not respond to requests for comment. i want to take a look at the chart overnight that shows the intraday movement in the stock. we did see a spike on speculation and it came back down as people brushed that off. mark: thanks very much. 10:21 in new york. still ahead, a bloomberg exclusive. the cochairman of bain capital and co-owner of the boston celtics shares his investment playbook. ♪
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betty: you are watching bloomberg markets. i'm betty liu with mark barton in london. havens. is seen as a safe
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-- stephen pagliuca, interview with erik schatzker he provided insight on investing in today's economy. steve: sibley put we are to in the -- we're in the proceed with caution spectrum. what we have done in response to this more at that economy -- more tepid economy, our fund size, we have 1000 people globally. we are staffed up to invest responsibly and really proceed with caution. we have about a $7 billion u.s. fund. we had larger than that before. we are excited to fit where we think we can find those growth opportunities into transf transformative opportunities. erik: from the perspective of a investor, what is proceed with caution mean? what are you doing that you --
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what you not doing that you might do? steve: i will tell you what it translates to. there are many companies that are selling at a large premium now that have -- that are stable , high market share companies. probably not much to do with them. they are well run. 13 to 14metimes pay times -- the kind of environment we want to stay away from. we don't see how we can do that much better. erik: even though in another time good market share, mature company, stable flows might be attractive. steve: and another time when you are getting 3.5% to 4% gdp growth those company's can benefit because they are larger and can gain more share in a growing market. it's difficult to gain share in a flat market.
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so what we are trying to do is a smallerompanies -- company, one of the higher products. -- the higher-quality products. i think we doubling in tripling the size of the company in this economy. mark: that capital cochair stephen pagliuca exclusively with bloomberg's erik schatzker. still ahead, charter communications chairman and chief executive tom rutledge joins us following his company's $55 billion acquisition of time warner cable.
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betty: live from bloomberg world headquarters in new york and london, i am betty liu. mark b.: and i mark barton.
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let's get to julie -- and i'm mark barton. let's get to julie. julie: we'll has been gaining a little bit of steam, up 2/3 -- oil has been gaining a little bit of steam, up 2/3 of 1%. we are seeing a build in inventory that is unexpected. 1.3 million barrels. cushing, oklahoma, inventories building by 461,000 barrels, a drawdown of 350,000 was expected. alix steel, one of the experts in commodities, pointed out that most of the canadian supply goes to cushing. even with the supply destruction that happened because of the wildfire in canada, you are seeing a build in cushing, that would presumably be negative for oil prices. a larger than estimated drawdown
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in gasoline inventories, me rely -- it's interesting that the crude inventories are seeing this kind of buildup. behind me on the screen, you are starting to see a little bit about -- bit of a comedown in oil prices. we saw a trade downward. now hovering down -- up about 1/10 of 1%. we will keep watching these numbers. like an unexpected number on the headline and on the cushion supplies -- quite an unexpected number on the headline and on the cushing supplies. betty: more from our newsroom. >> limited damage has been reported after a powerful 6.7 magnitude earthquake struck ecuador's pacific coast this morning. it's the same place a devastating quake hit a month ago. this morning's quake knocked out
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power and woke some residents. residents poured into the streets but eventually returned to their homes. people familiar with the negotiations, israel may settle for half of the $1.7 billion fine egypt was ordered to pay. egypt was fine for violating a contract withpply israel. french police are taking to the streets to protest against what they describe as hatred directed at the force. police gathered during their lunch breaks today in about 60 cities across france, including on the republic product -- republique plaza. one of the girls kidnapped by boko haram from aborting skill in nigeria has been found. -- from a boarding school in nigeria has been found. she is the first of nearly 300
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girls were adopted more than two years ago. recoveredthe first after nearly 300 girls were abducted more than two years ago. betty: ceo tom rutledge joining us following his company's ticky $5 billion acquisition of dust company's $55 billion acquisition of time warner cable. meanb.: what could this for the parties? we will ask virginia governor and former dnc chair terry mcauliffe, next. ♪
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mark b.: it's time for the
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bloomberg "business flash." whole foods is trying to get rid of the idea that, thanks to its prices, its name should really heck."ole payc next week, it will open smaller stores that will sell cheaper products. whole foods fell 3% in the most recent quarter. jp morgan to restrict access to the system that transfers money around the world. the "wall street journal" says that j.p. morgan has instituted tighter controls on swift. it was used to steal $81 million from bangladesh's central-bank. consultant johnson
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associates says the sharpest drop will probably be in fixed income sales and trading. investment bank underwriting bonuses may also decline. that is your latest bloomberg "business flash." let's have a look at what's happening to european equity markets. we are higher now, at least on the stoxx europe 600. on the ftse, we are lower because of gains in germany and france. industry groups making all of the waves today on the stoxx europe 600 as we may -- we await the minutes of the fed meeting. technology stocks up. consumer goods up 6/10 of 1% today. one of the big retailers that stands out is the luxury group, burbridge. autos down.
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the reason why, we are seeing declines in the ftse 100 today. moving on to currencies, some big moves today in the pound against the dollar and against the euro. theling is up against dollar as an opinion poll put lead ahead ofs the referendum at 18 points. betty: we have been talking a lot about m&a over the last few quarters. this m&a deal has finally closed. charter communications closing its $55 billion purchase of time warner cable about a year after it first announced the deal. joining me to talk about the long road that led to this communicationser ceo tom rutledge and alex sherman, who has been breaking lots of news on this story from the beginning.
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let's start with the basics. you are now going to, i believe, quadruple your subscriber base based on this acquisition of time warner cable. however, you are also acquiring one of the most hated brands in the cable industry world. how are you going to improve that now? tom: well, we are going to change the brand to charter spectrum as our service. betty: that may help. tom: obviously, changing the name of the company is not a solution. you have to run a good customer service solution. we have invested an enormous amount of money and we will continue to invest an enormous amount of money in improving the whole service experience through better call centers. we have hired 7000 people in the last four years. proportionally, we will need to hire 20,000 people in the new company, take all of our calls, keep them onshore, create self-service functions online
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for customers, train our technicians, different tools and test equipment that work, and do the job right the first time. all of that takes a little time for us to implement, but we know how to do it. we will do that. simultaneously, we will change our brand approach. from a consumer standpoint, if i'm a time warner cable customer today and my service eventually switches to charter, is there a specific product that i will be able to tell, i'm no longer a time warner cable subscriber, now that i have charter, i can do this, which you could not do before? tom: technically, you are a charter customer today as of this moment. when we+++
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spectrum services deployed, what that means is we will have a state-of-the-art interactive user interface with search and discovery of content. we will integrate over-the-top services with that product so that you will be able to search and seek content -- and see content in a seamless way, whether it is a service delivered by us -- we will take your data speeds up . we will put a two-way interactive outlet on every tv that you have, so that you will have on-demand on every outlet and the full range of user interface services that i discussed. we will price and package everything in a compelling way, so that it is competitive and better than what our competitors offer. with a voicehat product that is fully featured, a data project -- product that is faster than our competitors, video service that is better than our competitors, all hd and all interactive on every outlet. >> one of the problems you
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acquire is several of their regional sports networks. this was not a thing that charter did all that frequently as you have been ceo, meaning wanting to go in and wire regional sports networks. are you comfortable owning those? is that something you want to add to as the ceo of this now larger company? tom: it wasn't the reason why we wanted to do the transaction. we fundamentally believe that cable is as it. infrastructure -- that cable is a superior infrastructure. on well, it can really resonate with customers. the sports channels were not the driver of this transaction, but they are there. they are valuable assets. we will try to evaluate how that fits into our long-run strategy. the fundamental strategy that we went within this transaction was just to do the business better. so, there are all sorts of
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upside that come from the scale we are acquiring and the assets we are acquiring, but we are not ready to say how we are going to implement those opportunities. betty: speaking about doing the business better, what about programming costs, which are quite high at charter? how are you with a combined entity like this going to approach content providers defendant -- differently now? tom: it's an interesting situation, as content is changing, changing the way it is distributing itself. the new charter will have more than a $9 billion per year programming bill that we pay to the content industry. on that same platform, the content industry sells $4 or $5 billion of advertising. we are a significant contributor to the deployment of content. one of the biggest cost drivers of all of our products over the last 10 years has been, you
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know, the rise of content costs. we hope to get that under control, but we also hope to work with content companies and creating new products that create value for customers, so the customers actually are comfortable with what they are paying for. that has been a challenge with constantly raising rates. >> were largest shareholder, john malone, has referred to largestas -- your shareholder, john malone, has referred to charter as a horizontal acquisition machine. how quickly will we see charter do its next transaction, and are you looking at some of the with thever builders sec condition that you will need to overbuild certain territories? tom: it requires us to build two million passings, two million homes over the next two years. we start with 50 million homes today. it is an issue, but it's not a significant issue in terms of
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what we have to construct. we have just gone through two years of transactions and regulatory approval. so, we don't have any new transactions in mind at the moment. we are going to integrate the products -- the companies that we have and try to make our strategy work. so, i think at the moment we will take a breather. thank you so much. tom rutledge, the charter chairman and ceo, along with bloomberg news' alex sherman. let's go straight to politics. hillary clinton eked out a very narrow victory in kentucky last bernie sanders took oregon, illustrating a deepening divide among democrats. who better to ask about this than the former head of the democratic national committee, virginia governor terry mcauliffe? i know you are in boston right now on a marketing and trade mission. by asking yout
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about this narrow victory that bernie sanders complained -- proclaimed last night he would continue to contest. that spells trouble. governor mcauliffe: i served as the chair of hillary's campaign eight years ago. we went all the way to june. hillary actually won north dakota running against then senator president obama -- then senator obama, now president obama. we went through this eight years ago. at that time, i remember supporters coming up, saying, oh, we would never vote for senator obama. once we got through the process, closed it down, went through the convention, we were so unified as a party and president obama went on to win. senator sanders has every right to continue to go on and get his message out there.
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this is no different than what happened eight years ago. betty: there is historical precedent here from the last election. however, it can't be good to see the democratic party is divided. the onlymcauliffe: thing i would argue, which i argued eight years ago -- i cannot sit here and be a hypocrite today. as long as you have folks energized, coming out -- we want a lot of folks to vote in california in the upcoming contest. get them energized. the key is to make sure that, once the primaries are done, then everybody comes together. i think donald trump will be a great motivating factor to bring the party back together, to be unified as one. that as you go through these contests, people get excited -- but as you go through these contests, people get excited. we need to make sure that passion goes all the way through november 8. senator sanders will want to have a say in the platform, as he should.
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we will get together after we did eight years ago, some would argue even tougher than the battle we are going through this year, and we will be a unified party. then it's going to be a tough election. we cannot take anything for granted. you have a middle class that -- wage stagnation, i think that's what the issues are going to be all about. hillary will lay out her platform. she's going to be the next president. >> what does the notion of a trump presidency mean to you? thinkor mcauliffe: i donald trump is going to have a hard time this election because of the comments he has made about women, muslims, hispanics. you have to win 270 electoral votes. at the end of the day, we are going to play in a basket of 12 states, many of those with large hispanic populations. he is going to have to go back and say, those things i said during the campaign, i did not mean. he has not laid out, i don't
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think, a substantive agenda of what he wants to do to get the economy moving. hillary has the experience as the united states senator from new york, secretary of state. she is well respected around the globe. if you want someone with the experience, dealing with the issues we have to deal with at a national -- international level and to get the domestic economy going, i think there will be a stark difference. just throwing insults is not the way to get elected president of the united states of america. i don't ascribe to this theory koreahina and japan and are beating us. we are the best nation on earth. we do the things we need to do. that's the argument hillary is going to make going forward. betty: you are on the road, talking about how great virginia is. you are in boston. you will be traveling to canada as well, to talk about trade opportunities in virginia. your state has been hit by defense cuts over the last several years. what are the opportunities you are telling others?
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governor mcauliffe: virginia is the largest recipient of department of defense dollars, 27 military installations, the largest naval base in the world, the pentagon, cia. when you have sequestration, it really impacts us, as it did four years ago. we lost about $9.8 billion. cyber security, data analytics, the human genome sequencing -- that's my message. i'm selling virginia wine and oysters. i will head off to canada. our largest number of tours come out of canada. talking about why come to virginia -- i have a 4% unemployment rate today. we are doing great. our economy is diversifying. we just hit our largest surplus ever. we just put $1 billion into education, $2.2 billion into higher education research.
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if you want to have a state with low taxes, business friendly, there is only one state to go to in america, and that is the commonwealth of virginia. mark b.: you are noted, virginia, for doling out grants. with all of the grants that have been doled out, how can you prove you are boosting jobs? governor mcauliffe: just let the metrics speak for themselves. low unemployment. we have created 154,900 jobs in the two years since we have been in office. look at how the payroll numbers have increased. every state incentivizes, tries to get businesses to come. we don't do as much as some other states do. i don't go state to state to bring business in. traveled thely most internationally. 17 trade missions with four or five or six more this year.
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why do i travel so much internationally? of the world's customers live outside of the united states of america. that's why i travel. the biggest deal ever done by a chinese company in america, $2 billion, 2000 jobs. we are constantly traveling globally to say, if you want to get in the u.s. market, we have the deepest pork on the east -- deepest port on the east coast, and you can get most of the population of america within an hours drive of the commonwealth driveginia -- an hour's of the commonwealth of virginia. our initial unemployment claims just hit a 40-year low. mark b.: virginia governor terry mcauliffe in boston today. map of valley -- napa valley. make over also varietals, including a merlot, a
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$60 per bottle wine, described as combining old world winemaking with the generosity of california fruit. chief executive david duncan joins us. what is so different about this merlot? david: we have a collaboration --h the winemaker at château for 40 years. the collaboration is a new global phenomenon happening with the french and california winemaking world. it is something we are very excited about. we are excited about the merlot coming out, our first collaboration. mark b.: i thought the wine industry was meant to be in silos, france, california, so on, so forth. is that not the case anymore? when did it change?
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david: there has been investment from the french wine industry coming to california. i think it is a recognition of california as one of the finest winegrowing areas in the whole world. that is something that is new for us. collaboration -- it is a global phenomenon. betty: how is this release different from others? david: this is all from a single vineyard that we own. this is the first vintage that we have had the full collaboration. that's the big exciting thing about this vintage. betty: talk to me about the wine consumer. is the u.s. the biggest consumer of these wines? david: the u.s. just passed on a total consumption basis -- it marketome the number one
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. we drink about a quarter of the wind that the french do on an annual basis -- the wine that the french do on an annual basis. mark b.: why is this -- betty: why is this? david: drinking less and drinking better is a phenomenon we are seeing. mark b.: we have this lovely chart. it originates from -- i can't tell you -- show you it, but i can tell you about it. fell for the first time in more than a decade, but wine has been defying the slowdown. drinking less and drinking better is something we are seeing. people's price points are moving up. the less expensive wines are coming out of the market. people are looking for those
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that are products. it's part of the local food movement, the whiskey movement, and you see that in wine as well. betty: david duncan, silver oak cellars president. mark b.: the pound rising after brexitg of polls show risks are receding. is the vote enough to keep the fed on hold in june? plus, burberry's lowest profit expectations in a month. on europeank check markets. stocks are trading higher in europe today. european close is next. ♪
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betty: it is 11:00 a.m. in new york. from new york, i am betty liu. i'm b.: i'm from london, mark barton.
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you are watching the european close on "bloomberg markets." we are going to take you from new york to london to mumbai in the next hour. here is what we are watching today. u.k. -- we will get minutes from the fed's at room -- april meeting. new holes in europe show just a 23 -- new polls in europe show just a 23% chance of brexit. betty: annual earnings dropped for a separate -- second year in a row and burberry's. apple chief executive tim cook makes his first trip to india with the prospect of one billion new device sales. we will have details on his

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