tv Bloomberg Markets European Open Bloomberg April 18, 2017 2:30am-4:01am EDT
then why settle for slow internet? comcast business. built for speed. built for business. >> you are welcome to bloomberg markets. the european open. we are bringing you the first trade of the day. here is what we are watching for you. the fight for france. less thana year of -- a week to run until the polls are open. it is still a macron, marine le pen race. a strong greenback is a good thing. just days after donald trump
talked it down. what is the direction? stop, tokyo. the u.s. vice president is in japan after delivering stern warnings in seoul. mike pence says japan is committed to u.s. security. than a half hour until the european open. how european futures are turning after the mixed picture we saw in asia overnight. a mixed picture here as well with the ftse future trading down. a third of a percent of game. manus: it is no shock that you have a treasury secretary talking about a stronger dollar. were shocking that you have a president that says it is too
strong. dollar strength pervading across the markets this morning. these are the equities. this is the fx side. the aussie dollar. and a little bit of movement. dollar again is jockeying. there working back above 108.83. we have broken the 200 day moving average. yen iskets would say the dropping in the dollar is rising and that could have an interesting move. where is the canary in the proverbial coal mine or the iron ore mine? goldman sachs -- you would expect iron ore to get to this point this year. --r the point of wrapping knocking out its 2016 gives. the question is -- the relative strength index on this.
since 2016.rsold is that telling you something more static about what is going on in that geography and the global recovery that we are all talking about. back to your gmm. we will be talking about the risks you want to take a week before the french election. juliette saly has your first word news. juliette: u.s. vice president mike pence has told japan's tunes oh abe that america is deeply committed to the country's -- security. north korean nuclear weapons program. he looks forward to discussions today on economic ties with azo. president donald trump will take aim at i.t. outsourcing companies today when he reviews a review of the hf one visas.
cognizant technology solutions and emphasis as examples of companies that have changes being adopted. france's presidential race ends -- enters the closing weeks with a flurry of campaign rallies. with almost a third of the electorate undecided and the front-runners clustered around 20% of the polls, the race is the most unpredictable the country has seen in recent history. in turkey, the president has said his referendum victory took place under conditions that were democratic deion compare. speaking yesterday, he please both domestic and foreign critics of the process culminated in voters approving of him giving him more power. the deputy prime minister has talked down the prospect of an
early election. >> the president also made it clear that the next elections will be held in november 2019 and that there will be a period of adjustment. so, i think it has been very clear that elections are not on the agenda. juliette: regulators risk inadvertently hastening the loss of some banking operations from pundits by pushing vendors to make detailed plans. according to people familiar with the matter. they say senior finance relocationmay stir activities from london to the continent. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. this is bloomberg. the yen retreated after secretary mnuchin told the ft
that the dollar strength is a good thing. asian markets mixed up this morning. markets in europe reopening after the easter holiday. mark cudmore joins us from our team in singapore. you have been riding that bar a tragic misstep on the korean peninsula, global markets may be hitting highs again. why are you optimistic? we havee context that had a lot of bad news in march and risks. geopolitical risks. to navigateged through most of them and come out on the other side very positively. importantly, when you take into context the possibility of trade wars. especially the threat that trump had to name currency manipulators. the possibility for that
meeting between the chinese president and trump to go badly. no one has been named a currency manipulator. there is no trade war. everything is looking very positive. global trade is looking very strong still. trump hase from what or has not done, what do you see the economic data outside the u.s. doing? >> most importantly, china, the world's second biggest economy, trade, isrginal driving the big change. with its growth accelerating, that is good for commodities. what we saw yesterday was a comprehensive set up of data on china. strong investment. strong credit. strong gdp in the first quarter and industrial production. strong retail sales. betterector is doing than expected. and looking strong at the moment.
manus: the iron ore chart that you put up this morning, market and i applaud your optimism. it is already at $60 and change. what is driving the iron ore misery? supply? lack of belief in the china recovery story? the numbers were not that bad for the first quarter. questionit is a great because iron ore is a big exception or anomaly in my positive outlook that i got it this week. everything else is looking positive but iron ore it suggests doubt on the chinese growth story and chinese data. what is important to know for iron ore is that it continues to come found analysts on the upside as well. it was not expected to rally as much as it did. there is a chance it will overshoot on the downside.
you are getting a ramp up in domestic supply in china and the demands for high-grade iron ore are slightly falling off. there are supposedly large stockpiles in china. the iron ore outlook is working and that is a slight worry for the whole outlook but so far, iron ore is down 30% for the highs in february. the rfi is looking the most extended since december 2015 which is when the metal had an all-time low since 2008. matt: you can follow marks insights and his teams on the blog. we areup on the show, live in istanbul to decide what sunday's -- to discuss what sunday's vote means.
donald trump patients in japan-u.s. relations. thinatience is wearing with regard to the trade situation in japan. more breaking news will come to you when we get it. juliette saly has the latest. juliette: the ceo of united airlines says that the carrier will rebound from the pr storm that followed the forcible ejection of a customer. he said the issue will be a watershed moment for the carrier and it is determined to put customers first. the first quarter financial program beat expectations for here is gaining almost 1% in after-hours trade. to sheila temporarily canceled all decisions related to the sale of the memory chip business byaddress concerns raised
industry partners. toshiba is trying to sell the business to raise cash but it hit a snag after western digital said the sale may violate the company's contract. bp says a well on the alaskan slope is no longer leaking after the leak discovered on friday was capped. but environmentalists say the well is out of control and want authorities to investigate. 565,000 barrels in march. it is still well below the 1980's peak of 2 million barrels a day. china's bright food has a great to sell weetabix. the deal is valued at 1.4 billion pounds. in 2012 was one of several deals made with foreign food companies with
china's second largest food company expanding its global footprint. netflix has reported first-quarter user gains as short of expectations. on the other hand, the lack of big budget productions boosted net income. netflix said next quarter with the return of open -- "house of miss" profit could estimates but caustic gains could improve. >> we are like two drops of water in the ocean. amazon can do great work and it would be very hard for it to directly affect us. it is just that home in her claimant a zero sum game. juliette: that is your bloomberg business flash. stocks roseh slightly and the lira strengthened in yesterday in the wake of sunday's referendum that granted greater power to the
president. investors welcomed the possibility of greater security in turkey, but will this optimism last? it is becoming the story throughout the week. the important thing is to get insight from investors, operators, and corporate. we are speaking to the company istanbul's main airport. thank you for coming on the show. for is a massive change it turkey. i have had the privilege of speaking to a lot of tarp -- a lot of turks on the ground. feedback is mixed. your read on how turkey looks like going forward? has gone through four
elections and the referendum in the last three years. coup terror attacks and a . now that the reference to -- now, that the referendum is behind us, there will be more certainty and the government can focus on the macro reforms a -- they have held onto for a long time. until the next election, they can focus on macro reforms, tax and exports. yousef: you have been hit with these changes. nine months since the failed coup attempt that brought a lot of uncertainty. when can we see an improvement in figures? >> 2016 was the worst year for us. we have seen declines of 16 percent in original destination
passengers to istanbul which is huge. the first quarter was not so good though we have seen a decline in the decline. but april is the first time for pickup. we are seeing signs of pickup. we are hopeful for the season. turkish airlines see an increase in bookings. yousef: what about the appetite capex? >> we operate 14 airports in seven countries serving 400 million passengers. nowre growing a broad because we have finished all of the airports in turkey. we are now talking with cuban airports, the cuban airport authority in havana and in saudi which is a big market for us. we have an airport in the dena -- in medina.
privatization and growth. we are looking at africa and service companies are growing as well. yousef: are you considering projects in saudi arabia? >> there are 40 airports. and we are there and interested. yousef: in terms of patterns and is a super hub. much like dubai. span. recent electronics affected the kanaan activity of istanbul in terms of numbers? >> we think this ban is unfair. it is not security but commercial and political. the airlines have taken precautions immediately.
they are distributing ipads and laptops to passengers for in-flight use. we have not seen any negative numbers or material affects on passengers. and we are pressing to lift the ban. yousef: analysts are quite upbeat about your stocks. the most heavily on you? what is the biggest risk for your outlook? numbers are the drivers of our growth. the shocks to the system are political, terrorist attacks. we are heavy -- heavily affected by the passenger flow. it will determine how our revenues go. yousef: great to have you on the program this mining. with the rainy backdrop of
istanbul. manus: but you bring a rare sunshine to that backdrop. great work in istanbul covering the turkish election. we are minutes away from the start of your trading day. of next, we will take a look at some of the movers you can expect to drive your return to work. it is a beautiful day. we are going to talk about the french growth of casinos. this is bloomberg. ♪
manus: it is a beautiful out there -- it is a beautiful day out there in london. brexit impacting the building in london -- look at all of the cranes. rio will be in focus. have a look at hp billiton. this is the revenue scenario. revenue at 39.1 billion. iron ore is 10.5 billion of that. fading glory of revenue. same picture if you look across to rio.
revenues and iron ore is also a very press event -- a very prescient issue. iron ore. matt coming you have some french retail for us. matt: i like how you use that fa function. use itdo not know how to like you. a great learning tool on the bloomberg. i wanted to point out that operatorhe hypermarket here in france had its first decline in hypermarket in two years. total sales for casino were in line with estimates but the hypermarket area in france was down as far as sales were concerned. more competition there from others. similar problem.
manus: minutes ago, the start of european trade. europe is playing catch-up. this is on the back of the commodity story. iron ore really taking a tanking this morning. a little bit of pressure on the commodity oriented stocks. matt, you have a chart to give us up for this tuesday morning. matt: an interesting look at bank of america, merrill lynch's global financial stress. over the weekend, everyone was on high alert. what happened in north korea. do the russians get involved? our geopolitical problems going
to outweigh what we saw going on in markets? since 2012.ok a big spike in the global financial stress index. not as bad as it was during brexit or the financial crisis. but it is getting back up there again which could mean volatility. manus: this is how we are going. going through the opening rotations now. waiting for the first numbers to come through. 100 in the white. taking a little lower in the london market. due to the moves in the minors. miners. down a quarter of 1%. anna, good morning. anna: let us start with what has
been going on in the asian session. focusing on the china story. we had a number of markets in asia playing catch-up. the downdrafting from the iron ore weakness in the iron ore price. are finding market it difficult to make some headway. this chart helps us put this into context. trouble making headway in some of the asian equity markets and part of that had to do with the iron ore story. no surprise that we see the material sector is one of the weakness -- is one of the weakest ones. down by 0.6%. the overall equity picture for europe is looking pretty flat. whatng to play catch-up to we saw in the u.s. markets yesterday. many markets were closed yesterday. the s&p equities are up 0.9%
yesterday. almost making up for the almost inlost they saw last week trading due to the geopolitical concerns. i was drawn to a report -- to a from the san francisco fed on the u.k. economy. the weakness in the pound economyng that the u.k. is getting weaker. possiblylittle support to the cautious concern from the bank of england. how cautious are we to the inopean equities, french particular ahead of the elections. we talk about the nervousness but then we speak to many guests and investors who say that they are not preparing for this in the same way that they did for
the brexit and the u.s. election. that was the view when we spoke to peter fitzgerald. they say they are not positioning themselves in the same way they did before those two big events in 2016. are we overdoing the results in 2017? not long to wait for the french election results. manus: checking in on some of the big movers in the european session. anheuser-busch is up. followed by sanofi. booze and drugs trading a little higher. no real material risk for you there. flicking across to the downside. comes down to where we go with iron ore. iron ore just above the $60 level. is aan sachs says that
target they could see for this year. you are seeking, as a commodity, the most oversold since 2015. rio is perhaps one of the most exposed to the iron ore story. bp is down due to a spill on friday which has been sorted out. just looking at the price of oil. let me check on the barrel of branch. trade flat at- 55.38. to $52.65. 0.2% that is the play on them -- on the opening. matt: in turkey, the president says his referendum victory took place under conditions that were democratic beyond compare. he belittled domestic and foreign critics to the process
that culminated in the slim majority of the voters giving him more power. how do these geopolitical risks move markets, if at all? we have the senior market strategist with us. thanks for your time. us what you think about the results and how markets should take those results? >> good morning. with turkey, it is absolutely a crucial country. it sits between asia and europe in a strategic place. in a nutshell, markets should not be particularly worried. we have analyzed 16 major geopolitical events going back to 1950 and overwhelmingly, they do not tend to stay in the conscious of the market for very long. turkey, and there are elections, weigh at does not
the same level as those. there areterms of em, a number of different factors including the fed and the commodity cycle, including iron ore. , and we look at e.m. said -- why would i buy u.s. treasuries when it is a negative return if you look at getting just over 2.3% and inflation is at the same level. e.m. bonds is where you want to be. where would you take the risk in the end? pay a. bonds obviously lot more in terms of yield. these countries are growing much faster and they are less indebted. there is a case to be made on those factors alone. having said that -- the barclays a emerging market bond index. is that really where you see value? >> there is certainly value.
undoubtedly. but you have to realize that much of the return that comes from e.m. bonds is a direct function of the currency. i know that they have performed very well recently. and we like that but we preferred to take our exposure in equities. about risks, talk geopolitical risks, how important or how high do you rate the french elections? there is some concern that with a third of voters still undecided, you could end up with a marine le pen victory, which would be unexpected, or melenchon. >> there are just cointrea -- four candidates right now to make the second round. there are two important factors. one, is going back to 2016.
big geopolitical shocks in terms of brexit and the trump victory. no one could have seen that coming. but on top of that, no one could have seen what happened to the markets next. had you known, what would you have done? was it a good environment to enter markets that were oversold in the lead up in the lead up and fear it leading to those things. will not know how markets react. having said that, the risks are evident. if marine le pen wins, which is unlikely at the moment, the risks are quite high. becauseold on to that, we are going to spend more time on the french risks in a moment. ambrose will stay with the show. it is a big day for u.s. banks. we will preview the earnings from bank of america and goldman sachs. and in france, the final leg.
that we had out from steve mnuchin over the weekend. here you see the equity moves in europe. 12 minutes into the session. looks like we have found some direction on the continent which is up and in london, it is down. weighedrs are heavily in london. you can see the stoxx 600, the broader indexes, gaining that only by 0.2%. take a look at my screen here. i have pulled up a currency look at the expanded majors. the reason i do that is because turkey is here. the lira is the biggest gainer against the dollar of all of the expanded majors after the election results out of turkey over the weekend. the pound showing a little strength as well as the ruble and the swiss franc. interesting to watch at any time of geopolitical uncertainty.
in terms of losers, commodity currencies. including the australian dollar and the south african rand there at the bottom. let -- let us look at the mid-cap movers. nejra: starting with a stock that has hit a record high in this session. galapagos. it is a biotech company. up 4.3%. moving on reports of it launching a proposed share offering. that is why we are seeing that move today. as zeno is down 0.3%. reported the first revenue declined in two years. in france, nonfood sales face more competition with e-commerce. latin america compensated a bit for those numbers. we are seeing these shores move lower, down 3.8 percent. i put pandora here because it is
the worst performer on the stoxx 600. down 6.2%. i dug around frantically for headlines. i cannot work out why it is moving so much. it is getting a lot of traction r but not a lot of headlines out. manus: there you go. needs to head out and get some more jewelry. let us focus in on what could move today. talking about the u.s. banks. bank of america, goldman sachs and morgan stanley all reporting numbers before the bell. the senior market strategist at ambrose is with us. looking at the bloomberg intelligence analytics. global investment revenue is showing a strong first quarter. we dug a little deeper and hsbc
is saying that it should be a positive. growing at 25%. if you are an investment bank, it will be a good quarter. ofif you look at the results j.p. morgan and citibank, same stories. revenue is strongly up. the problem was the commercial banking revenues were not as strong. it has been a good quarter for banks but the bigger picture is what happens in terms of their future and earning potential. given the fact that yields are coming down in markets and the yield spread has also come down is a big reason why banks have, -- have recouped some of the ins they had from the highs the trump election. they have reversed those. will be paying
close attention to this as well because they have done better as rates have been raised. the green line is the fed median projection. but the market doubts we will see this. is this why bank shares have come under pressure -- because the market doubts we are going to see interest rates increase as we thought a couple of weeks ago? >> it goes much further than the last couple of weeks. onwards,ok at two 2009 the banks have always been higher than the market trajectory rates. the market has been right all along. it tends to be bullish about the ability to come to some degree of normalization. the reality is that markets have not supported it. and as if by magic, our charts producer has produced that spread for you which is
obviously in part the reason why we are fading in this move. but you draw attention to the treasury secretary's point in terms of getting ready for a delay in tax or four. that will not help the banks. and, get ready for a huge move in dodd-frank. i do not hold out much hope for dodd-frank. of bank- and a number ceos are saying to me that they do not expect a huge correction in dodd-frank. >> what we have seen in health care reform and other proxies for change in u.s. regulation have not been very bright so far. mnuchin's comments this morning has been nothing but an exercise in bearing down
our expectations. what can the government do, do you think, beyond that to help banks do better? or do you think the trump administration really has that front and center as far as their policy is concerned? >> that is a good question. the trump administration's policies are up for anyone's guess. the best i can comment on that. of theirthis is one key campaign promises. to take a hatchet to u.s. bank regulation. banks searched on the back of that. at one point, they were up 32% following his election. since, they have come down quite a bit. and that is because it -- expectations were else to quite a height and they have come down dramatically since then. strategistr market
it is a beautiful day in london. let us get another word, a business flash with juliette saly. -- thee: the video of ceo of united airlines has assured wall street that it will rebound from the pr firestorm. it will be a watershed moment for the carrier and it is determined to put customers first. first quarter financial performance beat expectations, gaining 1% in after-hours trade. tissue that has temporarily canceled all meetings and decisions related to this out -- related to the sale of its memory chip division. toshiba is trying to sell the business to raise much-needed cash but it has hit a snag after western digital said the sale a violate the company's contract.
bp says a well on alaska's north slope is no longer leaking oil or gas after a leak discovered on florida was capped. environmentalists say the well is out of control and want authorities to investigate. it is producing well below its 1980's peak which was 2 million barrels a day. china's bright food has agreed to sell weetabix to serial maker post holdings. the valuen pounds is of the sale. it purchased it in 2012, 1 of several deals it made with foreign food companies. as it wanted to expand its global footprint. risk regulators inadvertently hastening the loss of some banking operations from
london by pushing lenders to make detailed plans for the worst-case brexit scenario, according to people familiar with the matter. they say senior finance industry executives are concerned bank of england and the european central for contingency plans may spur activity to the continental. fahad is still with us. let me ask you for your take on this. shouldn't these banks be prepared for a worst-case scenario in any case, whether or not they are asked for these plans? unpreparedo to be for a worse case scenario is poor planning. but, there are a number of reasons why london cannot be replicated by picking up a few thousands of jobs and placing them elsewhere. dublin has financial services.
it is a financial center, par excellent. it will be difficult to re-create the synergies that exist in london. of timehort period which continues to give london a comparative advantage for the foreseeable future in this business. tothink that will continue be a huge feather in the cap of the city of london as it is not easily replaceable. this is a story on the terminal today. scott hamilton has written about this. nw3 -- production up 24%. covenant gardens, 18% lower. , you should bett able to get in there. this is a real manifestation of
bankers leaving. rinse are down. property is under pressure. >> i don't think it is just that. is a lot of thrust in that market. if you look at any valuation measure, prime london was already beyond anything. if anything, this is a natural correction and healthy for the markets. manus: very good. our guest stays with us. withxt, protesters clash police ahead of this weekend's french presidential elections. we had to paris to find out how the race is shaping up. who is the lady behind melenchon's runs to power? be long risk in a french election? those are questions we will put to our guest.
matt: a fight for france. less than a week to rumble for french polls open. still, a third of voters are undecided. is it still a macron, marine le pen race? the u.s. treasury secretary says a strong greenback is a good thing just days after president trump talked a down. what is the direction for the dollar? next stop, tokyo. u.s. vice president is in japan after delivering's turn earnings in seoul. mike pence says the u.s. is deeply committed to japan's security. welcome to bloomberg markets, the european open.
30 minutes into the trading day. a short week after easter. let us see how things are shaping up. down by the stoxx 600 0.8%. london is taking perhaps the lion share of the pain. two facets driving that come at bp is down by over 0.9%. they had an alaskan well in the north slope which is no longer leaking. b.p. they are down by 1.9% as you can see. the crude spread was discovered friday morning. it was capped by sunday. and a second leak was closed off overnight, sunday night. a little bit of a reaction there. talk again in the market about what it is that opec may do in terms of extending the coverage. rio tinto and glencore also
lower. has beeni am more under pressure. you must ask yourself a question about how much further we might go. the new fee -- sanofi. unicredit, they are all just a little bit stronger this morning as your pays -- plays catch-up with the u.s. fear and loathing in las vegas. the final week of campaigning for the french presidency is underway with no clear winner insight. the latest poll shows there is very little separating the four main contenders. support for macron, read the pen, francois fillon, and
melenchon, the race has become the most unpredictable in history. it is crunch time. candidates desperately trying to t especiallysuppor for the undecided voters. what happened at the weekend rally? caroline: just five days before the first round. the most difficult task will be for marine le pen and emmanuel macron. a hardle pen is having time expanding beyond her base. violent protests broke out, outside her rally in paris. police had to circle the venue. export some guests. went up on stage and try to interrupt the meeting. despite this, marine le pen tried to stick to her approach
on immigration saying she would do a moratorium on immigration as a first test before coming up with a plan to leave schengen. >> i will and schengen and restore our national borders. no other candidate is proposing this. none of them. we opened the doors of france to s and has and -- to mafia terrorists. caroline: meanwhile, the macron,ent candidates, had a rally in paris in front of 20,000 people. he attacked melenchon, the far left wing outsider, saying it would be cuba without the sun. was in paris. mocked those saying he is a
risk of for the financial market. he joked in english -- i am dangerous. peoplecalled the french this week to consider him. manus: the last few days of campaigning. great reporting. let us bring our guest back into the conversation. cuba without the sun. thinking about. if history is anything to go by, take a look at this. it falls after every first round election and it rises after the second. i am not sure that necessarily this will hold true, but if it is a fee on -- but if it is a sunday,marine le pen
that could hold true. >> we are all focusing on the first round. but if you look at the odds for what is going to happen in terms of an actual presidency, the odds of something disruptive in terms of a marine le pen presidency or even a melenchon presidency is very unlikely. if you look at the margins of error in terms of all the statistical polls, brexit was in the margin of those areas. and the trump presidency was as well. a marine le pen presidency is far from the margin of error and that is important to keep in mind. matt: you point out that this is why markets have exhibited little volatility so far. when you see those pockets of try to playdo you the other side and take advantage of that? >> we do not try to play
anything in the short term. that is not our philosophy. we are a long-term house. ourof the key tenets of process is to look at sent to mince -- is to look at sentiments in the market. if you look at the poll results and the very unlikely expectation of a marine le pen markets arethen the not behaving erratically. they are behaving within the scope of expectations. manus: the one thing that comes through from a number of different conversations i have had is that italy is by far, the much bigger risk. the potential for five-star to get in there is much higher later in the year and that is a europe breakup risk. much higher than anything we have seen thus far. >> the five-star movement is similar to -- well, it has come
out of nowhere and has become a serious political force. it is important to step back and look at this -- a generous -- a genuine populist wave moving the world. and heads ofkers government are going to have to address at some point is that there is a tremendous divide within countries, between urban and rural, between rich and poor , for lack of a better word. between people benefiting from globalization and those that are not. until those root causes are addressed, you will continue to fight populism threatening the status quo of the world, the political order as we know it. and that is something that should come to the forefront to policymakers, sooner rather than later. matt: thank you so much for your
time this morning. thrilled that you are going to be sticking with us here at bloomberg and joining us on the radio. myself and anna edwards in the next hour. if you are getting ready to leave the house and you have a digital radio in your car, tune to bloomberg and check us out. tv is one way you can use -- is one to will you can use on the bloomberg to talk to us. you can send questions to manus and i or talk to our guest. to hear ahe panel live stream of what we are talking about. at the bottom of the screen, you will find a blue link in order to ask questions of the guest, be part of the conversation, and get involved in what is going on here at bloomberg. turkey tensions after the
have to tell you, that the word of the day is "rerating." month risen the most this . pandora, on the other hand, worst performer on the stoxx 600. down 7.8%. lowest since august 2015. it has dropped the most since june 2016. this is also about rerating. it has been cut from a hold. looking at rio tinto. more than anything to illustrate what is happening with mining stocks. mining stocks under pressure. a lot of metals on the london metal exchange are down. plummeting. we are seeing that impact on a lot of the miners. minds a different
metal -- mines a different metal. rio tinto has hit its lowest point this year, down 2.7%. juliette: first word news. president donald trump will take aim at i.t. outsourcing companies when he orders a review of the visa programs to favor more skilled and highly paid applicants. administration official named a consulting service, and emphasis as examples of companies that will have fewer visas approved as changes are adopted. the program channels thousands of workers to the u.s. i.t. industry. the french presidential race enters its final stretch with no clear winner in sight. as the main candidates scrap for votes with rallies.
with one third of the electorate roundded, for the first on sunday, the race is the most unpredictable the country has seen in recent history. regulators inadvertently hastening the loss of thinking -- of banking operations in london. say senior finance industry executives are concerned that the bank of england and european for fullank demands contingency plans may spur the relocation of activities from london to the continental. -- to the continental. . global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. this is bloomberg. us focus -- left to focus on turkey. they are not going to call for early elections.
that is according to the deputy foreign minister. the weekendfter it referendum that gives the president more power. he outlined his plans to restore economic growth. >> the worst is behind turkey. turkey has gone through quite a few traumatic experiences. it has been difficult and challenging. on top of the failed coup, we faced a terror threat and geopolitical drag. things have improved, the debate on the government system has been addled, we are back to more monday and -- a more mundane reforms. thene concern is whether
turkish structural reform agenda will be disrupted by further elections or another referendum. the president himself said in a victory speech last night -- he promised a powerful referendum on whether turkey should reintroduce the death penalty. confident are you that we well not have a snap vote or a referendum in between now and the next scheduled elections? >> the ruling party has never hasd opportunistically and never try to go for early polls. we have been in power for almost 14 years. there has always been talk of early elections. and we have never had a reelection. that is number one. number two, the president also made it very clear that the next elections will be held in november 2019. and that there would be a period
of a adjustment and transition. cleark he has been very that elections are not on the agenda. the debate on capital punishment , a referendum on that, that is a separate issue. but even if that was to come to the agenda, that would not be as time-consuming as it has been in the past. we are joined from istanbul by our reporter. he said the president seems bolstered by his referendum. what did he say? he doesin three words, not care. simple as that. brushing off a lot of the criticism and concerns coming from european officials. reported an unlevel
playing field going into the referendum and that conditions were short of international standards. the president making it clear that europe should know its place. on the other side of the coin, you have president donald trump congratulating the president on what was described as a victory in this referendum. there are a few developments in the last hour. chpis a report that the deputy chairman will meet with the election board head to contest the election. that process is being formalized domestically. the other important development is the international development and that comes with additional from ans we are seeing lot of the officials outside of turkey and ultimately, the state of emergency which was the other major factor, that has been submitted to parliament and the national security council made
the recommendation to extend the state of emergency which would have expired on april 19. this government feels it needs to stay. manus: thank you very much. our bloomberg anchor in turkey. up next, we will focus on oil. tensions onow the seeing opec's cuts and shale areut it are impact -- impacting things. this is bloomberg. ♪
matt: welcome back to the european market open. i am matt miller in berlin. me at granny is alongside our european headquarters in london. quick look at the markets. of oftarted as a mix trade has now turned down. .eading the loss are the miners the stoxx 600, the broader is down overhmark 0.5%. notets are losing steam -- just losing steam but heading down and declining more and more throughout the morning. itshas managed to halt decline ahead of official data forecasted showing you as inventories fell for a second time. let us bring in tracy alloway in
a blue dobby feel like we have fallen into a familiar pattern. caught between rising u.s. shale output and opec production cuts. >> that is exactly right. we are back in that old pattern. to some extent, you have seen it born out in the price of crude. it feels like we have all of these bits and pieces of data coming out of the market that you can kind of see's on -- seize on either way. we did have rigged data coming out on friday saying u.s. rig data has been growing for 13 weeks now. to come out tomorrow should show u.s. stockpiles have fallen for the second week in a row. that is pretty good if you are looking for rebalancing. theome extent, we have seen uncertainty reflected in the commentary from the endless we are getting from the market.
citigroup says rebalancing is coming but u.s. shale production is still likely to come lowering -- roaring back. even they seem to be struggling to square the dynamics a little bit. manus: the dynamics we have to talk about shale in the permian basin. we did see a relatively big deal go through yesterday. give us the details. >> when we talk about shale right now, we almost always mean the permian basin where there has been a ton of activities and oil prices have rebounded. a return of animal spirits in the permian basin born out by a bunch of corporate action there. the latest thing that happened was monday that we had blackstone and announcing it was eagle clawy midstream ventures for 2 billion in cash. what eagle claw does is operate a bunch of gas hike lines in the
permian basin. and gas has been a popular play. if you that we were all worried just about crude oil, the permian basin and the u.s. shale patch, we are also worried about gas production. if you look at the production toures, we have had it rise a record every month so far this year. if you are worried about the energy market rebalancing in general, you can add gas onto your list of worries in addition to crude oil. manus: never far from worry in the oil market. thanks very much do you manus, for spending the last hour and a half with me. stay with us here on bloomberg television. " whoxt is "surveillance will be bringing you an exclusive interview with the ceo of novartis. i am moving now on to radio with
>> talking tough in tokyo. u.s. vice president mike pence says he is deeply committed to security. the fight for france. 1/3 of voters are still undecided. asders are taking no chances they wait for the answers in the election. plus, as donald trump congratulates erdogan on his victory, the turkish leader insists the vote was democratic. and regulators pushing banks for their brexit contingency. th