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tv   Bloomberg Markets European Close  Bloomberg  February 9, 2018 11:00am-12:00pm EST

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last 20 or so minutes, mirroring the united states. markets moving towards a lower part of their trading session. look at the far left column, euro stoxx 50 down by 1.7%. greece, austria, germany, in a correction for the dax which has fallen 10% since the january record. days for decline in 10 the european benchmark and the third weekly decline, the worst corrections june of last year. this week's drop of 5% is the biggest for two years. of the to drop 1.5% european benchmark, the stoxx 600 to enter a correction from january 23. sterling is falling against the dollar. a lot is from comments from negotiator michel barnier a who said the brexit transition time was not a given, disagreements
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with the u.k. persists. the euro is just earning slightly lower but was rising for the first day in three earlier here in -- earlier. a big decline in the euro this week against the dollar, falling the biggest amount since october, down 1.5%. before this week, the euro out for seven consecutive weeks against the dollar, the longest winning streak since 2004. mixtures in the bond market with core yields falling and peripheral yields rising. the greek five-year up 39 basis points. the commodities space is being hammered, natural gas is the only commodity on the bloomberg commodity index that is rising. gmm is the wonderful function. want to tell you about stocks a monday drops,
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-- amundi drops that rises the chief executive say the recent collect dust correction in global equities is not such that it would significantly affect our different distribution channels. it will be fascinating to hear what other men in -- money managers and banks have to say about this recent correction in coming weeks and months. this company predicted profit for confidence for next year will grow 43% after the owners of the world's largest shipping company fell short of market expectations in 2017. describedf executive last year as unusual and eventful. he says 2017 was characterized by strong underlying market conditions but the result was hurt in part after they were hit
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by cyberattack in june that mainly affected the line division. core --er today, more the belgian material technology company raising almost 900 million euros in share sale to help fund acquisitions and expansions, including an investment in battery materials in china that will help the belgian company capitalize on growth in electric vehicles. today to --- up up-to-date. >> at this moment, the dow and s&p 500 and nasdaq modestly higher. earlier, at the open and a little bit after, up 1% after yesterday selloff. , the sense, lower of, will we see the floor drop similar to monday when the dow finished down more than 1100
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points and yesterday when it finished down more than 1000 points? a lot of uncertainty and volatility feared over the last -- volatility. the essence 5 -- the s&p 500 on pace for its worst weeks in september of 2011 and this current trading time feels a lot like august of 2011 and september of 2011 when we had a correction for the major averages. market.dow up in a bear monday of this week, the huge drop, a lower low on tuesdays open. on tuesday, gyrations similar today between gains and losses, ultimately finish in what felt like a frenzied rebound rally. wednesday lower and yesterday a big selloff. today, volatility continues while investors wonder what is next for the selloff. petroleum is a result of overbought conditions. this is a longer-term chart of
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the s&p 500 in relation to its 100 and moving average and blue, 200 and moving average in a low. the 50 day was taken out earlier this week on this dramatic drop, telling us buyers are simply disappearing and sellers are stepping up and taking control. another lower low today, the sellers are continuing to take control of the situation. this chart suggests the s&p 500 right now is confirmed to not just drop to the 200 and moving average as has happened for the rest of this year but below it, down to a level of support near 2300. it seems there is more work to be done on the downside by the bears. beyond the overbought conditions , so much above the moving , we look rising rates at a six month chart of the 210 spread and see last year that it was flattening, the yield curve flattening, that was healthy stocks. ,ow, as rates are normalizing investors are not liking it and
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the s&p 500 doing the inverse to the 210 spread, a source of pain, a repricing of risk. that repricing of risk extending into the commodity market. an intraday chart of oil, it is down 2%, that is the big question, is this correction isolated to a 10% drop fluctuating -- flirting with a correction for stocks, or will they bleed into other risk assets? it appears to bleed into the other risk assets as oil is below $60 per barrel, giving jitters to some traders and investors. we have a historic selloff for stocks. to be confirmed by the commodity complex. mark: great stuff. the central bank is telling investors it is time to grow up, that is the view from marcus ashworth who spent three decades in the banking industry. terrible news for stocks this day. it is time for markets to grow up. >> you do not want to grow up.
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we want our fun. mark: will they come to the rescue, central banks, is this it? >> i do not think this is it, centralk market is -- banks will have to change their tune. we had a little bit of tapering, possibly from the bank of japan. they are firm on the yield curve. the ecb is tapering definitely. talking about when is the next rate hike? that will be 2019. the bank of england yesterday, i am not sure how political it was, unfortunate timing in a number of different levels. --s is not the right time to inthe -- they told us november it was one and done and to rate hikes over the next three years, never in money market terms.
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sooner and more of them, that is a change. the federal-- reserve, they have been conspicuous either absence. the central bank is not here for us anymore. that is not what investors wanted to hear. vonnie: this is a tantrum on the way to growing up, how long does it take? >> longer than this week. they close this week of the stock markets and the fact, the 30 year yield chart on u.s. treasury's, it shows you they have not backed away. january is about yield gains and a brief blip on monday and tuesday perhaps, straight back at it, rising yields, that has caused inflation because an increase u.s. treasury issuance, tax reform, because of the influence of changing softly, the growth in the strengthen
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economy is finally seen through, as it should. inflation means higher bond yields and higher corporate borrowing costs and leverage plays are more risky and the rebalancing of risk. oil coming down at the same time while china passing markets after portray days. shakeout --nger this is a bigger shakeout. vonnie: that was some list of warnings. prioritizehe market when it comes to the risks? people are talking about over indebtedness and sovereigns -- in sovereigns, will that be it? >> everyone had gotten themselves too confident and perhaps over levered. we had a nasty rude awakening monday and tuesday. what is more important now is
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that yields continued to rise. the trend is in place. inflation is the real issue and next wednesday we have a report, if that is a nasty number, it is more lagging perhaps than other indicators, average hourly earnings which caused the results on friday. more and more influences of inflation but it will keep the bond rising and that is never good news. mark: abigail talked about bleeding, i am looking high-yield stories. junk bonds to emerging markets. are we seeing it bleed across other asset classes, and if and when it does -- >> perhaps more is greece. it did not come on tuesday, it came yesterday. good for greece. it is 25 basis points wider everyone thought it was over yesterday, the bank of england
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changes the rate view. mark: mark carney yesterday, bound to consents the hold off on his message? >> this is 9-0. they made their decisions two weeks beforehand. this is anything they could have held off. he chose not to. this is a committee response. it is poor timing. it has not helped. mark: inflation next week is the big one, next wednesday. he is all booked then. -- in. the pains becoming more normal. in on the first word news with courtney donohoe. has signed atrump
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two-year budget deal ending the shortest u.s. government shutdown on record. hours after the partial shutdown again at midnight, the house passed a two-year budget bill that raises federal spending by almost $300 billion and puts the death of -- debt ceiling on hold for one year. rand paul earlier padlocked a senate vote for hours, he was unhappy about extra government spending any measure. the sister of the north korean leader has shaken hands with south korea's president. it took place at the opening ceremony of the winter olympics. she is the first member of the dynasty that rules north korea to officially visit the south and will have lunch with the south korean president tomorrow. the european union's chief brexit negotiator has reached a prospect that the transition deal could fail. he said there were a substantial disagreements with the u.k. over the terms of the two-year grace the transition is
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crucial for business while a future trade deal between the sides almost certainly will not be complete when the u.k. leaves the eu next march. in china, inflation at the factory level is easing, the producer price index rose 4.3% in january from one year ago, the third straight month of slowing down. that suggests the world's biggest trading nation will not be passing on much more inflation to the rest of the world in the near-term. global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. mark: thank you very much. coming up, watching the markets, 17 minutes until the close. ftse is 1% lower and the dax down. down 10% from the high in january and the cac 40 is down. they biggest weekly decline for the european benchmark in two years. this is bloomberg. ♪
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♪ mark: live from london, i am mark barton counting you down to the european close in 14 minutes. vonnie: a lot can happen in those minutes. i am vonnie quinn in new york. let's get perspective on the latest market turmoil from matt winkler from bloomberg news. you have seen many corrections. today, we have seen a couple of corrections. what is different about this market turmoil, if anything? >> janet yellen is gone. literally, the day her successor, jerome powell was sworn in, volatility surged.
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one of the characteristics of the janet yellen fed was that volatility collapsed from her predecessors, ben bernanke, alan greenspan. even paul volcker. what does that mean? janet was a very effective communicator. her fed was good at giving people very clear direction about where the economy was headed. as a result, the markets were much more subdued or behaved, even as they appreciated. the difference now is that jerome powell is an unknown, even if he was at the fed for quite a while. before that. that makes all the difference. that is why we see uncertainty. vonnie: we will show viewers a chart of the vix of the years -- over the years. this is high but not like what happened in 2015.
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2008 is the other previous high. the janet yellen time was calm. this as the new fed chair released a video. -- woulde a priority it be a priority to have the vix down? >> he is not an economist. that will not go unchallenged among people in the market who will try to figure out what leader is he, and what kind of a set do we have -- fed do we have? inis an experienced comparison to others. the combination of an unload leader -- unknown leader who is not an economist and not from the with economic challenges the way janet yellen is or ben bernanke is, that will make a big difference. is downu say the u.k.
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since brexit, guess who is up? according to you, britain is the new sick man of europe. >> here is the thing. the role reversal. know, -- we all know, ran into trouble coming out of the financial trouble, but even in their darkest time, ,hich you could say was 2012 when greek bonds were trading at $.30 on the dollar and there was concern about, will it leave the euro. the greek people never voted for that. as much as they chased under the terms of the bailout that came from european creditors. you saw that in the market through the crisis. in 2015, when everybody was saying that greece was on the brink of collapse. the bond market was telling us
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just the opposite. that greece was rebounding. and greek debt was the best returning debt in the world. investors? of like is actually something 400 and something percent since 2012. what else is that about? it is about greece saying, we are much stronger being part of europe, part of the european economy, which is the biggest gdp block in the world. people forget that. that is the euro zone economy. greece is saying we will be better off with them. now that europe is leading the world among developed economies in productivity and job growth, gdp, greece is the biggest beneficiary. the u.k. by contrast set we want to be out of this at the most
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propitious time for europe. the u.k. says we want to be out and we go from being a leader of growth before the brexit vote, to a laggard. -- thatyou are finally is editor in chief emeritus of bloomberg news, matt winkler. this is bloomberg. ♪
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♪ mark: live from london, i am mark barton with european close six minutes away. vonnie: live from new york, i am vonnie quinn. uber had a high-stakes lawsuit about driverless cars, a jury verdict averted. stealingused uber of trade secrets. let's bring our intelligence litigation analyst matt larson in san francisco. what happened?
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>> waymo was in the middle of a lawsuit with uber, the trial started on monday and the dispute was whether uber misappropriated trade secrets that along to waymo when they hired 18 that used to belong to waymo's self driving car unit. we had seen testimony drum some key witnesses -- testimony from some key witnesses and waymo was two thirds away from the case when they reached a private settlement. executivenew chief has got a lot on his plate. is this to his relief so he can focus on the future a little bit more? >> it is. it removes a major overhang. one of uber's biggest problems is the tr battle, stiff -- par battle -- pr battle. getting rid of the overhang is a
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big positive. have expressed looking forward to partnership on one hand and competition on the other. if you are working in the same space, there will be instances when you need to corporate, but you are competitors and they will go head-to-head in the self driving rideshare space. vonnie: it seems like there was in a quick component. how unusual is that? >> it is not unusual for a deal like this. google, a hedge against its own self driving car technology, about one third of million, if you consider a $72 billion evaluation for uber. that is 37% of what uber acquired of a self driving car unit from the guys that used to work at waymo. pretty big deal. vonnie: our thanks to bloomberg
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intelligence litigation analyst matt larson for bringing us the details on that settlement. uber settling the waymo driverless car suit. mark: where european markets are trading as we head to the close, four minutes away from the friday session. down by adax, cac minimum of 1.31% with the weekly decline the most in two years. 1.7%,y, the dax, down entering into correction territory. it is down by more than 10% from the highs in january. this is bloomberg. ♪
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mark: from bloomberg's world had quarters in london, i am. -- bloomberg world headquarters in london, i am mark barton.
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dayes off their lows of the would be stoxx 600 earlier rising as much as 1.75%. 10 withs of declines in the gauge falling to its lowest level since august. the third weekly fall, the worst threats since last year in june and -- worst stretch since last year in june. correction territory, the dax in correction territory after its sizable decline today, down 10% from the highs in january. let show you the stoxx 600, these are the industry groups, every industry group declining on this friday. let oil and gas -- led by oil and gas. volatility has returned. this gauge tells you everything you need to know about european volatility. index, risingocks
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to 33.67 today, a wild week for equity volatility, rising 11.3 points or 60% on tuesday, a record. up by 29% on wednesday and rose by 50% yesterday, or 10.6 points and headed for its biggest weekly surge in almost a decade, the highest level since june of 2016. you will remember what happened and then, the brexit referendum. the volatility this week, surpassing the volatility, the swings we saw around the time of the french election last year. i want to finish off with china. china has been one of the more interesting stock markets today and since this selloff resumed. the shanghai composite sinking as much as 6.1% earlier after
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daying at 4.05%, the worst for china's benchmark in two years and the worst week in two years with the gauge falling 9.6%, plunging 12%, that is a correction, the two-year high in january, benchmark indices in china and hong kong, they have following -- fallen faster than any major market since it started last month with worries over a chinese deleveraging campaign adding to the broader concerns about rising rates. and stretched valuations. china's shanghai composite down 4%. vonnie: we are taking a lot of roundtrips. today it is trading around 31 but has been as high as 33 or 34 and below 30. plenty more volatility to come, especially if you listen to market chatsworth -- marcus at
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-- marcus ashworth. cameron said he anticipated the thread may flatten instead of widening, given everything going on this week. nonetheless, there it is, widening. the canadian dollar not much changed today. canada gave up a lot of jobs. lots of interesting dynamics in canada. we will watch the canadian currency. we are watching the south .03, closerrency, 120 to win zuma is not related to power in south africa. sea of red across asia. markets in europe are down. south african rand. british pound is weaker.
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canada again, a drop in canadian little money piles into canadian treasuries opted back of the job market report. mark: the selloff is widening over $5 trillion from global stocks since the beginning of the year. our next guest says do not panic and trust in fundamentals. joining us is nandini lalita ramakrishnan of jpmorgan asset management global asset management. >> it has been a busy week and we are watching things closely but this volatility is what you would expect in normal markets toce 1982 present -- 1980 present. and more years than most, the end of year is positive. it happened in 2016, 2017 was a lot more calm and what happening now is normal market behavior.
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volatility should have been higher previously. mark: should we fill our of it -- boot? >> not saying that, it is presenting certain opportunities whether certain sectors or stocks doing better, but if we know earnings per share growth rates are expected to be positive in every market, japan, u.s., europe, u.k., particularly the u.s. when in the last month, earnings-per-share of grace have been huge, from 10% and now oneer to 18%, 20%, that is fundamentals are telling us the equity market should do well. vonnie: where specifically are you looking? where are you advising clients to look? many say this is the best opportunity we have had in years. >> a great question. when you look at key market movers, we put the equity market, which we think is being a bit more spooked that it should be versus the bond market
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which is pricing inappropriate monetary policy changes. the fed will be rising interest rates three times or four times this year and we have seen in the last week the interest rate curve and the u.s. become cheaper. that is well for financials and the u.s. who could benefit from deregulation and from the tax reform change of lower tax rates in the u.s. that is an area we would like in the u.s. equity market. we would think about broader themes around the world, more than contained in the past week or past few months. things like technology stocks, not just the big names in the of theut broad parts supply chain in technology that are interesting. andis making the chips hardware and software that will be implemented in all the exciting stories that driverless cars bring or facial recognition. those are the long-term things we like across the world. overall, we are positive on most equity markets given global synchronized recovery we have seen in the hard data. vonnie: how concerned do we need
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to be about the warnings this week? rogers,ing, and jim saying that countries are overleveraged and there will be a major reckoning? whenat is the question central bank start to pull back. we will expect some volatility and continuing in the fixed income and equity markets, government debt is a place we do not find much attractive value, given the fact that countries have been heavily taking advantage of low interest rates, issuing government bonds over the course of the past several years. it is the countries with healthy fundamentals, many in the developed world that are starting to see a little bit of duration risk and the government bond markets. in terms of the reckoning, that is a bit strong of a word. it is the end of the cycle and there will be paying. how it plays out -- pain. how it plays out will resent opportunities for investors. mark: somebody pinpointed the
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fed. started on big-time on monday. how significant, how significant is the changeover in running the fed from janet yellen to jerome powell? >> it is a nice story to pinpoint it to that changeover in leadership at the fed, but i do not think a new leadership at the fed with jerome powell will be significant changing the near-term outlook for the fed. we had janet yellen and the fomc notes and the press conference from last year set the path there would be 3, 4 interest rate hikes this year and continuing on that path in the next year. not because they are behind the curve or they have missed out, but because growth is strong and robust in the u.s. and inflation , which is what we would pinpoint the market volatility fears because of the wage growth numbers from friday, mark is thinking inflation has gone to quickly and will be fed rerate their interest rate plans for the year?
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that is an appropriate level where the 10 year treasury is now, priced in the fact that the fed will view those three hikes, for hikes this year which was set long before the change of leadership. mark: on the subject of inflation, you are confident, inflation in the u.s. is moving towards targets? >> towards targets but not overshooting as some may have feared with wage growth numbers from friday. inflation -- core inflation is the u.s. is below the 2% target. we will have to wait and see with the cpi numbers coming up soon in the u.s. next week. the next several months of wage growth and inflation data at of the u.s. is very important. one data point does not constitute a trend and we will have to wait and see for further statement on that. mark: nandini ramakrishnan of jpmorgan asset management stays with us on the european close. vonnie: it is time to check in on the first word news with courtney donohoe.
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signed aent trump has two-year budget bill that ended a partial government shutdown. he is not happy about it. it adds him was $300 billion in government spending. the president said that will make the military stronger than before but he says democrats forced republicans to increase spending on things he does not want. thesure is mounting on white house chief of staff john kelly over his defense of former staff secretary rob porter, john kelly sought to keep him despite accusations of spousal abuse from two ex-wives. a number of lawmakers have criticized john kelly and the national organization for women have called for him to resign. of finding more survivors from the earthquake in taiwan this week faded today after two more bodies were found in a partially collapsed hotel. 10 people were killed and the tuesday earthquake. more than 270 others were hurt while five people are missing. starting in april, london will
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be linked to amsterdam i the high-speed euro start training that will take more than three hours and 40 minutes to get from london to amsterdam, the biggest expansion of the channel tunnel express operators network since it started operations back in 1994. global news 24 hours a day, powered by more than 2700 journalist and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. vonnie: we are going to quickly check the markets. up 2/10 of 1%ng, in the s&p 500 but a drop in correction territory three times already this morning. the worst performers in the s&p 500 is expedia all the best is mattel. several companies are doing well and we will keep you posted. this is bloomberg. ♪
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♪ vonnie: live from new york i am vonnie quinn. this i am mark barton and is the european close on bloomberg television. let's get back to the markets with nandini ramakrishnan. you have a wonderful bit of knowledge on the vix index and what it tells us at certain levels, depending on the economic fundamentals. vonnie: that is the key, -- >> that is the key, fundamentals matter more than what is happening in her day or on the hour, historical data, when the vix is about 35, high volatility measured in the markets and the options market, and the fundamentals still remain solid, as we can said they are now, often the market corrects. it goes back up and recovers to levels where it was prior to the site in volatility up. separate analysis you can do
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with different levels of the next, but -- vix, this week has been interesting. overall, we can remain somewhat anchored to the fact that the earnings, corporate profits, gdp numbers are solid across the world which is why the long-term investor stays in the market. mark: a lot of people looking at the volatility blowup, are there ghosts in the machine? trying to find parallels, morgan securities in 2008, do you worry there are ghosts in the machine, areas that maybe investors are too complacent about, or overlooks? >> discussion about had people been too complacent about volatility being too low and buy or short the vix index, the pentagon that view. -- depending on that view. there will be some trigger points that often snowball into worse factors, perhaps what happened with the vix. markets, --equity in brought equity markets, the
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earnings should drive that any volume of the ghosts or the different types of securities and assets, are not as high as something like the structure debt market in 2008. it is not our big worry that other products are out there causing too much of a concern. andie: have politics political statements from leaders moved down the list of things that affect the markets? it used to be we were waiting or the next thing from president trump and the market would move on that. now economics and the fundamentals have taken backing narrative. >> politics will always be a big part of investing your2 -- investing. a you kate referendum and the u.s. election and in 2017, no shortage of european political events. we are watching the italian election next month where some more and a euro or euro skeptic parties are in the mix, that
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should cause markets to be nervous about the future of the eurozone and the future of italy's membership or stance towards the euro. things we are watching. they have lowered on the list given the activity this week. for the medium and long-term, keep them in mind. in terms of the u.s., tax reform has been an exciting thing for u.s. companies. earnings per share estimates have nearly doubled, given the reports we are seeing from companies on how the tax reform will affect individual companies. when you aggregate it, the earnings picture looks brighter in the u.s. we are in the early faces of infrastructure discussion in the u.s. which could add fuel to the fire. causing the u.s. late cycle recovery to continue. vonnie: are the geographies you are avoiding because they are too volatile? >> not really, if we have a
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positive fundamental driving the market, most equity markets have a lot of good things to take from. we see emerging markets will be a bit more volatile and the long-term, although not necessarily the case this week but emerging markets have the long-term play. the good thing with japan is that, if you have a view on the dollar, they will go in the opposite direction given dollar strength versus dollar weakness, em currencies and countries do well when they are -- when their currencies are stronger against the dollar, the opposite is set against the yen in japan. we are more neutral on the u.k. in the global equity markets because there has been a lot of discussion in companies feeling more hesitant to invest and grow or expand their business, given the cloud brexit negotiations cap over the decisions. mark: it has not been helped by comments today, i am glad you isimated, basically there
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substantial disagreements over the terms of the transition time, and a transition deal cannot be taken for granted and brexit. it shows you the precariousness of talks. >> from a u.k. or european companies perspective, if you do not have the clarity, you might pull back investing in a new project or putting to work and you set of workers on a cross-border project. i think we take that with a healthy dose of optimism. that the brexit negotiations are not the reason the u.k. will slow down. be ahat there will decision in the transitional agreement and long-term agreement that will benefit both parties. from europe's perspective, they will -- they are going through a solid time of economic growth. thatything is ruining positive economic trajectory, you did not want it to be because of negotiations with the
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u.k. the u.k. is important as a trading partner from the eu from their perspective as well. you have to take the comments not to take anything for granted, a listen for the whole week. we are optimistic something will be achieved. mark: thank you for joining us, nandini ramakrishnan of jpmorgan asset management. vonnie: let's get sector specific and the u.s., we are joined by taylor riggs who focuses on financials. the worst performing sector after energy. taylor: i wanted to look at the financials. a modesthis is improvement as at one point we were off by about 7.8%. the second-worst performer in the index. , at oneg a little bit point the worst week since november. another chart is g #btv 6360. we have talked about financials and rates.
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we have the treasury rate rise. year but the 10 financials have not come with it. will financials increase with yields, as they normally do, or continue to suffer from this broad-based selloff? mark? mark: thank you. botc, up, the otc -- worried about the consequences of rising inflation may have fueled the selloff? this is bloomberg. ♪
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♪ vonnie: time for the global battle of the charts where we look at some of the most telling charts of the day and what they mean for investors. access them on the bloomberg by running the function featured at the bottom of your screen. it will be an excellent battle of the church. -- charts.
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"rocky" themee after the phillies won the super bowl -- the eagles. your first battle. >> today, i wanted to look at biotech, this is one of the sectors that has in great momentum at the start of the year, approaching record levels, at a fast pace before falling victim to the broader market selloff. we are back to 2016 levels when we saw another market selloff. this is when a political rhetoric heated up. this selloff is creating a a lot of opportunities across the board. small caps. watch this space, especially
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with m&a expected this year. vonnie: you can see your chart on the bloomberg at -- g #btv 6881. mark: markets not prepared for the inflation bogeyman. the question we have asked in recent weeks. what market disruption may be caused by an uptick in consumer prices, given the market disruption we have seen this week? seeds of inflation may be out there already, synchronized expansion and oil prices until recently of a three-year high and shrinking labor slack. investors looking at this chart showing unabashed confidence in the low it were of inflation will indoor as the cost of betting that u.s. consumer prices will rise more than 2% or less than 1.5% in a year remains near record lows. that is the blue line.
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upside tothat offers inflation, 3% over the decade. less than 1/5 of 1 -- what it once was five years ago. and overshoot of inflation would reverberate the on government bond markets. g #btv 4074. mark: you could have explained the whole market moves in one chart, just two lines and you would not win because our first timers will always win. she will run up the stairs and take her victory lap. coming up, we continued to follow the markets. ♪
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♪ >> i am mark crumpton with the first word news. president trump has signed a two-year budget deal that ended a partial government shutdown but is not completely happy. the bill adds almost $300 billion in government spending.
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the president says that will make the military stronger than before but democrats forced republicans to increase spending on things he does not want. chief brexit negotiator raising the prospect that the transition deal could fail. he said there are some disagreements with the u.k. over the terms of the two-year grace period. is crucial for business as a future trade deal between the sides almost certainly would be complete when the u.k. leaves the eu next march. helps of finding more survivors from this week's earthquake in taiwan sated today after two more bodies were found in a partially collapsed hotel. at least 10 people were killed and the tuesday 6.4 magnitude earthquake and more than 270 others were hurt with five people missing. the flu is tightening its grip on the united states. a government report shows one out of every 13 visits to the doctor last wee

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