tv Bloomberg Markets European Close Bloomberg May 4, 2017 11:00am-12:01pm EDT
>> we'll take you from new york to london in the next stop. stories out of washington. bus brussels. here are the stories from bloomberg. us politics, the house set do or to replace bill obamacare. it's a critical test for the trump administration. get it.name this time around? >> in france slug fest between marine le pen just before the the election runoff. the candidates for the capital capitalist elite. correspondent -- corporate news, shares rising. expectations as
profit climbs 12%. from hsbc's and cfo's this hour. >> trading now. we are 30 minutes away from the enend of the thursday session. italy leaving the advance. 1.9%.alian met by those currency, all those currencies in the second column arising against the dollar today. inlds continuing to fall greece. to tell younings about. the trial it prompted a surprise drop in first quarter profit global and revenueservices up by 8.3%. 4%.ks up fixed income, revenue jumping
12.8%. bnp posted 30% plus increase for both businesses. shares up by two thirds of one percent. today, how much scope for a rally do we have in assets. emmanuel wins the french presidential election on sunday? look at what options data is us.ing the one month implies volatility euro drops. that's the blue line. than 20% during the first round. of lowthe sign protection against currency. volatility ahead of the vote. that is the blue line. keep an eye on that shot tomorrow. is another interesting shot ahead of the big political event sunday.es place on
spread taken the crossover back to levels we july 2015.n since easing.ical risk emmanuel will come through the vote unscathed and become the of france.ent that's the base case scenario. tracks europe crossover index which comprises credits to bond insurance to grade.investment european corporate entities. eurois the most liquid credit. as i said, we haven't seen this tight since july 2015. investors backing off what they perceived a risky end point the vote. >> we're not seeing much change here in the united states. continue to see a lot of
positioning on individual stocks that are reporting edgers. lot of the action has to do with that and also people waiting for coming out of d.c. take a look at the health stocks, we have not seen much change today in the stocks. when we hadint out the last several votes in washington whether it's healthcare or some of the other funding bill for example, we have not seen as much reaction in the us stock market. broadly, with regard to healthcare, specifically the inions has been concentrated companies that have the most win or lose. notably the hospital stocks, are exposed to adcade funding.id
the big insurance companies aca.ted to the we are oil fall. we seeing continuing pumping u.s.in the output raising since august of 2015. extends its cuts, there's concern the over supply in the u.s. is going more than make up for that. some of the drillers and other trading lower. earnings as well. lot to consider today. facebook, leading the pack in of the headlines on a number. the company once again offering of caution about its ad sales they maybe slowing. the shares are down but they really pared back their decline. declines are accelerating after the company reported a bigger loss than highest cashsecond burn ever. viacom as well. channels arepular
higher priced. facebook, quick check on evaluation of facebook. estimatede price to earnings. the estimates sort of were created different points. line is apple. facebook is number two. companies the big here including alphabet as well. evaluation isok relatively high. but not as high as others. back to you. >> let's get back to the french election. the election taking place on sunday. marine le pen unleashing attacks. gap ofes to close the percentage points ahead of the campaign. >> great fear, who has been the manipulating it since the beginning. it's you. fears of ourh the citizens on terrorism? it's us.
>> you've said it so often. of openness.date no, you are the candidate of closure. factories, the closure of maternity ward and police stations and closure of hospitals. >> the france i want will not be divided. we need to lead a system that proproduce. you are the proproduction of the are denouncing. you are its parasite. >> the france you are defending france. it's a trading room in it's a everyone.ne against in which french employees have to fight to keep their jobs. companies working the same field would have to fight to get the lowest salary. the longest working hours in order to try to protect their market share. that's not my vision. from paris, do we
night'sinner of last debate? thee attacked le pen from euro to the holocaust to industrial policies. of the 15 million people who the debate between them convincing. >> tvs a brutal clash. fieryas some of the most points of debate between the two s?ndidate >> it was almost like watching boxing match. punch line after punch lane. marine lepen -- accuse her of being unprepared unfit for the presidency and every time she sounded confused. her plans toon leave the euro, he said you can
your fight, you don't know what you're talking about. you don't have a project. lepen had pretty good pump lanes. accused him of seeing part of the french people as invaders. said that france will be ran by a woman either her if she's elected or angela merkel, referring to the relationship angela merkel wants to restore with germany. an interesting phenomenon, president obama formally endorsing macron today. does this ring around the french electorate? does it cause anyone to change vote and vote that wouldn't? obama isent barack
definitely popular among the french people. you can see that the new u.s. president, donald trump, is not popular in france. as we saw during the u.s. election. this could play a little bit in the balance. we know that macron has spoken on the phone with barack obama over the past few weeks. this video on twitter that barack obama said mayron appeal appeals to people hope and not fear. res thoughts with the debate we -- this resonates with debate. it'sose numbers looks like a macron victory. what could go wrong for him? >> it could go wrong, of course, if the tension is high. according to bloomberg intelligence, both 50%, the gap between the two could narrow.
this is something never seen before. attention is around 20% for the presidential election. see more people saying thirds ofwo it coulde said that either vote. vote for neither of the candidate. last night's thete, this could change in .nap poll ma were more convinced by macron than marine lepen. joining usu for today. tune into bloomberg television sunday. complete election coverage before and after the vote. starting sunday here on bloomberg.
>> next one after that, let's news.in on the >> good morning. let's get caught up at the white house now. is easingtrump political restrictions on religious groups. ceremony for an executive order. it gives churches great leeway politics without risking their tax-exempt status. decadesplained that that the tax code restricts their free feature. on capitol hill it is a high stake test for healthcare. obamacare.o repeal new prevision was added to republicans.ate the health bill nations senate.n future in the meanwhile, donald trump returns to new york today for the first time as president. made histy where he fame and fortune. residents here voted for him.
on the agenda, a meeting with australia's prime minster malcolm. in the u.k., the husband of elizabeth ii will step down from public life this fall. june.l be 96 in he'll attend public events until august. he presided over the opening of the new grand stand and lord's ground in london. day,l news 24 hours a powered by 2600 journalist and countries. this is bloomberg. >> thank you very much. hsbc risinghares of today. the most in five months. end returning to revenue isberg.his all bloomberg.
>> live from bloomberg world headquarters in new york. >> european close roughly 15 minutes away from the end of the european equity session. let's get to the latest on european banks after years of -- investors finally seeing a glimpse what they've been waiting for, a return to revenue growth. shares rising the most in five months. pleased with the results. say, i think we to seeend of the year 84% revenue growth over the cost 2017. we're standing very good shot of the 4th quarter. guidance as we move into discussions with investors. theet's get sites of results from bloomberg european finance managing editor.
that 1st quarter revenue. >> you see growth, you see revenue cost. retail business and management trading. overall, it seems like it's a recovery. i guess that's what you're today.and shares >> suggestion is it isn't one off. trend?ng of a the year now, maybe it's not repeat over able to the rest of the year. we'res pivot to asia that going to see the results. spoke about the new accounting standard. how much pain it was. to impose any costs on banks? >> i think it's a little bit tell.to i think the language he used and thecertainly concern about significance of that day
forward. the overallt restructuring plan for hsbc? is it going smoothly? a pass now from investors? >> up -- the share price has been significant. the shift with the new with thet coming in chairman coming in. the new cfo, there will be times ahead. >> interesting stats on trading flying around. trading revenue up 29%, exceeding the average 9% rise, nine the big global investment banks. the only major banks posted quarterly, morgan stanley. what's been the take away when it comes to trading revenue or among the big players? picture.een a mixed you had the likes of bnp going very strong.
disappointments that we saw andy on with deutsche bank credit swiss. even in the business where they want to be, that is of course, cause concern for investors forward some of the restructuring very much in the early stages. might area of worry you riding.revenue they trying to address this. >> no doubt. base, it's still pretty challenging what we're seeing today. details how many compliance they brought in over year.st the cost space isn't getting .ater >> million dollars of libya. is that the end of their
problems? >> what we seeing today very significant settlement one that clearly provisioned before today. substantially. there's been some concern about stem from cases may this one. putting thisly, one big case behind it, does put legal challenges in the past. >> some of them. left? what do investor have to worry so socgen.it comes hold off.kets will later onhearing more in the year. there's the bank that is to put out 2020. we're seeing what the focus --
might change them. sunday.h election is on >> investors having been concerned earlier about an that concernt in haven't eased. there's some optimism should wins. >> socgen shares up 12%. european finance managing editor. >> great stuff. rebounding a european beer margin. it's helping brands like anheuser busch inbev. this is bloomberg.
>> with the european close just sevens away. militaryg now to policy, central banks announced unchangedg rates record low. central bank governor expressed the decision. adjustments onew the path of the interest rate. is communication on that sure is what i said. a plan and since march, to picture we saw, we plan.to the
>> economic growth currently ing.s >> it's time for the bloomberg at some ofash look stories.st business andst quarter revenue earnings. inbev led byh corona brand. numbers were helped by cost cutting. turning up theis heat on brexit related to divide sides. eu want to take control of the derivativederivatives can now dy london. -- at thise some
house.nts in the you can follow along live. >> from london and new york, is the european close. stocks finishing third day session. led by foodnths beverage utilities and banks, hsbc among the bank movers today. surprise jump and adjusted revenue. trading revenue up by 29%. average 9% rise at nine of the largest global investment banks. raising, shell among them, just up by one-half one today. -- quarter inker beating first quarter earnings beating estimates. $54 billion purchase of bg group. shareholders complaining he at the time.
up by half a percent today. recoveringng amid true prices. deepen cost cuts to emerge from downturn. battered the century for two years. the streak ofng three consecutive quarters of adjusted losses. the market by surprise. benefiting 60% of rise. praise of the benchmark in the last year. third oneby a percent. the big day to point here in the today, growth in services inxpectedly strengthening april. bit of solid start beginning of the second quarter after a week forecast performance in the first three toes. index raising 55.8
in april and 55 in march. manufacturing and construction published earlier this week. also improving. gauges is suggest the economies is running roughing .6%. ihs said we should have 4% for second quarter after .3% in quarter. new business grew at the fastest pace this year employment lob modestly. there's encouraging services the backbones is of the u.k. economy. weakness.eeing particularly the yen today. huge't look like a movement. we have seen a big figure move 112. look at crude oil futures. barrel.t $46 a that was $3 move in the last week or so.
that was a pretty stunning move. 2.3% is pretty substantial there on the tenure note. that is a major move out of the range that we've been seeing in the last few days. the broader range is still holding. hmn. have a look at germany's dax is looking enthusiastic. you mentioned the pound and the euro and yield. you can see that we have higher yields in euro. bit of selloff risk in europe. let's get to abigail and she'll have more details on companies that are moving. >> of course the big story today fact that house republicans are trying to pass of american healthcare act 2017, or aaha not to be confused act.the affordable care let's hop to the healthcare sector and see what's moving. first up, these are the top the s&p 500tocks in today. bill. unrelated to this
the company beat revenues by 1.5%. he company drug sales were good good. gilead sciences up 1%. bloomberg intelligence told our team, they are certainly on. eli lilyrug maker trading. now let's take a look the stocks bill.s i was fortunate enough to spend gives thee phone, he house bill a 50-50 chance of being passed. these stocks may suggest there's incremental risk moves toet passed and the senate. these are those hospital stocks off the loads but they are down. they have most to lose if the repealed. healthcare and obamacare
healthcare thea most. both of those stocks are down. suggesting that maybe the bill passed. finally let's look at one stock benefiting. humana. we have the shares up humana ofding of .7 of one percent off the highs but nonetheless, ofs company only two percent closure to the affordable care act. and zero percent this year. the election, humana is up 25%. winningn 25%, really a stock within the healthcare sector. >> thank you for that. story inack to top washington. house looks poised to vote on the republican healthcare bill that replace most of the affordable care act. leaders have made to voters. caught upvin just with republican senator tim scott about the next step for the bill. chancesr, what are the if the healthcare bill advances
the house, it will advance senate?the >> we'll see the healthcare bill come to the senate by the end of the today. if not today by tomorrow. the prospects going forward, it's herky. a clue. have house plan some of the accounts of the preexisting conditions by $8 billion. give us more flexibility. >> for more on this now, i want to bring in bloomberg national and anna.political we heard it so many times. the votes.en we have the vote was pulled the last time. does that suggest that this vote going to pass today? >> it seems like it is. republicanhouse leaders finally gotting the votes. just a few feet away. vote onpublicans will the american healthcare act. seven years of promises and and finally they bringing this to the floor.
what got them the votes it very end was two things. that gave states waivers from some of the insurance regulations in the number of law that conservatives didn't like. just yesterday, an amendment by upton, that oversees healthcare, provide extra in high risk pools. funding for people with conditions who could be left out. a close votes.e >> we don't have any scoring on this. we did the last time. that scoring showed up to as americans million might lose coverage. what are some think tanks far?ng out about this so there's no cbo score. it's tough to tell how this the coverage number. republicans say that there could
the- it might improve numbers. we can't know that. particularly the left leaning ones are concerned that people will be left without coverage. with preexisting conditions particularly and even older americans might not be coverage.ford which could make the coverage numbers go further up than the 24 million that cbo predicted the first time around. who will go uninsured. we expect from healthcare stocks? we saw abigail take us through that. what can we expect from the sector, depending how this vote down? >> the stocks in the healthcare industry that are going to be closed -- closely watched are hospital stocks. they benefitedded from a medicaid expansion under obamacare. before obamacare, there was a
care. uncompensated but more people gaining coverage program.he medicaid that gap was narrowing. there's a threat that with this medicaid expansion would be vote back and hospitals will uncompensated care. if this bill passes today, prettysee stocks get hit hard. there is a failure of republicans to be able it get through, then hospital stocks will benefit. >> ask -- what the white house role has been. an event at the white house. executive order signed promoting free speech and religious liberty. end up going to the white house. >> tell us what exactly the president have to do with any of the turning some moderate
republicans or even speaking to the freedom caucus? >> the white house involvement has been haphazard. crafting of the this to speaker ryan and the house republican leadership. mean, reallyd, i in the final week or two before they attempted to vote in late got verye white house involved. tried to twist a lot of arms. ultimatum saying you better vote now. they didn't vote. have it.'t since then the white house has been pushing more aggressively. in the last month or so, the been much more involved than they were before. to your point about the score a havet ago, we don't updated score. let me tell you the last time scored was in late march before some of the tweaks. they projected 24 million will lose their coverage over ten years. downeficit would go $150 billion and trillion dollars tax cuts for upper americans.
>> kapur, national political reporter. thank you. >> there's a report that president trump will visit israel. the vatican and saudi arabia this month on his first foreign trip as president. according to politico. the trip could conclude with a brussels and g7 summit in sicily. the president is criticizing former president barack obama foronal security advisor declining to testify on russian interference in the election. mr. trump feet tweeted it is not choosing susan rice is not to attend. next weekot appear with two other former obama officials.ion president obama, he's weighing in on sunday's presidential election in france. want all my friends in
rootingnow how much i'm for your success. i want you to know that i'm supporting emmanuel macron to forward. >> mr. obama said macron fear.es hope and not polls indicate that macron leads points. 20 russia said its ready to send turkeyeepers to syria, and iran signed on to a russian zoneso establish safe inside syria. talks include syrian government and rebel leaders. the rebels have distanced themselves from the plan partly because iran is involved. global news 24 hours a day by 2600 journalist and analyst. this is bloomberg. much.nk you very coming up, you'll hear from nigel bolton. hear why he thinks markets are
>> this is the european close on bloomberg markets. climbingan stocks high. stronger earnings. pricing most of the electoral risk of voters in france head to the polls on second round of the presidential election. this suggestid could potential turning point. nigel bolton head of the equity team. what's your assessment so far the european earnings season.
a number of beats stand out today? >> this has been the strongest earnings seasons we've had over the last eight years. i think it really depends why we is a real opportunity for global investors. 2016 was the year that lot of love withl out of year. this year is the year people start to return to europe. really about the underlying earning story and the risk premium. which is embedded in europe over the last few years. >> where do we put our money? you say the backdrop is looking good.nd earnings looking we're breaking that eight year losing trend. thee do we put our money in equity space in europe? >> i think this year it's been story about the stocks specific fundamentals of coming back in the market. you think back to 2016, it was a led mark. going back to
fundamentals. it's about individual stocks. you definitely following the earnings. at the market, we're expecting earnings growth of 15%. for europe in 2017. that's going to be probably the highest any reasonable across the world. look at the evaluations out there, europe looks attractive. down to the sectors, the luxury areas where europe has fantastic companies where we see evaluations. within the financial sector, you selective.more there's some head winds out there. thedly you seeing an end to long term leveraging story, which is hampered a lot of banks across europe. that provides some selective opportunities there. market, theider industrial space, it was very attractive. theme that we like. capex related to the shell industry and mining industry. related to the industry
sector itself. we're seeing a pick up across the bard there. seen it from individual names. talking about global pick up in terms of demand for trust. that's a common theme. also look at the i.t. sector. companiess is capex, having really honkered down over the last few years across europe releasing and feeling more comfortable. starting to see increase in that capital expenditure. lookin looking for other ways to get involved in the market? >> when you look at evaluations level, i wouldn't disagree. markets, you look at absolute level. you look at it relatively around the world, europe looks pretty attractive. when you take into account where europe is in the cycle. relative to the u.s. looking at the -- you
seen one of the biggest gaps we've seen ever. term of relative evaluation. looked reallyit attractive. you looking at equity dividend, of come back to europe. all those attractive for investors. right, i think it's also attractive from an america ma perspective. we've seen big deals so far. goes see more as the year along. there will be about aboutidation, it's relative value story where cheap.does look >> nigel, looking at stats in front of me. since the first round of the french election, stocks 600 up hard numbersome nigel. if macron wins, what's the thede is there left in european equities tank? terms of the rest
of the year, we can be looking return.ble digit plus 10% from where we are now yeare independent of the -- end of the year. the market has had a good run. have little bit more beginning of next week. we're probably do a period of consolidation. getting seasonally to that period where we do see consolidation in markets. over the rest of the year, actually you will see a compelling reason to be buying europe, to be buying the equity market. military policy will remain relaxed and easy for a long time in europe. there's a lot of excess capacity. you towards equities when you thinking about where to put your money. to see you. up, it's botc, bat of the -- battle of the charge.
we have assured guarantee. thewhite line showing us puerto rico obligation bond 2035. 8% coupon. what you can see here, every time puerto rico has a big event, so do bond stocks. the governor who used to be the governor, when he says unpayable. -- we had back here moratorium payments, another swoon for the stocks and bond. coming across here, we have some tick when the new governor when he was elected in november, little bit.e a then of course, going back down, plan thatd the fiscal really chomped on the bondholders. chart, youf the don't see a big swoon down here for the bankruptcy. we know that some of the bond money tohave a lot of
the side for the debt they have to keep paying even if puerto can't. >> top that. >> i might be able to top it .omewhat as to users i don't winn if battle of the chart you can use the information. this chart, however, is a must chart.out the gap between african-american consumer confidence and consumer has been widening since january. an interesting trend. it's fascinating. confidenceconsumer among african-americans has been below that of whites. back 1991. if you see here, over in the from january it started going in different directions. data intolit this
things like income, race, education.arty, if you do go coms and play around with this. this will be the results. and see whyo wait happening. >> this is hard. this is really hard. laura, technicality, these there. any other day i'll give it to laura. that is a must know about chart. about consumer ratio disparities. whiskers, vonnie -- take a look at european equities. this is bloomberg.
from bloomberg world headquarters in new york, we'll toe you from washington d.c. san francisco this hour. here are the top stories around the world that we're following. in politics, dramatic house votes on healthcare bill later in the afternoon. house leaders and the administration officials expecting confidence to have just enough votes to pass the measure. thin.te margin is there are big political risks for paul ryan and president trump. in markets, u.s. stocks are fluctuating as investors set a corporate earnings. facebook among the biggest drags warneds& s&p s&p 500 after it of slowing growth in advertising. meanwhile in commodities, rent is sliding below $50