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tv   Bloomberg Markets European Close  Bloomberg  May 9, 2018 11:00am-12:00pm EDT

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this is the european close on bloomberg markets. ♪ mark: here are the top stories we are covering from the bloomberg and around the world. the iran deal fallout. president trump's decision is affecting companies in the u.s., europe, and around the world. and deutsche bank considers sweeping cuts that could result in the firm losing 20% of its u.s. staff. and burberry sings the blues. a major shares after investor sell his stake. here is what is happening in european equities. we are 30 minutes away from the end of the session. what thentemplating trump decision in hereon means thecountries across european spectrum. stocks are rising for the fourth day, the best day since march the 12th, and higher for the
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sincean benchmark february 1. traders are assessing the implications of the trump withdrawal. mixed on currency, sterling was down. it is rebounding today a little bit and might be tomorrow. the bank of england -- what will the boe do? what will it say about its intentions when it comes to future rate hikes? that could determine the future path of sterling. we have bond yields rising, keeping an eye on the italian 10 year. we have the two populist parties trying to wrangle a deal, come to an agreement when it comes to forming a government. that will take place over the next 24 hours. if that doesn't happen, will the president nominates a technocratic prime minister? some of theocus on companies that are affected by the trump announcement on pulling out of the iran nuclear deal.
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the nonwhite line, meant to be .lue, is airbus airbus shares are falling today. the plane maker has 95 undelivered planes bound for that and a backlog includes 16 crucial orders for its biggest plane. bloomberg intelligence says airbus is likely to take greater market share in iran over the despiterm -- long-term, u.s. policy. the are key and say this will build a strong relationship with the iranian government and work week to enter the market upon lifting the sanctions. total, theine is european oil firm most exposed to the impact from trump's decision. it signed a deal in 2017 for the pause of gas fields in a ron -- iran.
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we have total rising because of the price of crude, which is pushing higher on the back of the trump announcement to a 2014 hi. m&a, another busy day. they agreed to by the german and the stern european -- buy german and eastern european shares, which does signal a bit of a retreat for the liberty global boss and owner john malone. thetransaction expands global footprint, a big incumbent inthe germany, deutsche telekom. the ceo does not like this deal what a lever. this deal follows years of on-off talks between liberty and marks vodafone, consolidation for major european carriers. vodafone shares are rising on the back of that news. deutsche telekom is sticking with the news, also in the news
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today, shares down by 1.1%, after predicting higher shares on the tale of u.s. growth. t-mobile, buying sprint is for the german carrier. budget telekom shares are down by 1.7%. vonnie? vonnie: as always, we are keeping our eye on regulation and how it will affect wall street weary of the house financial services committee still looking to loosen regulations on the banking industry. we are wondering, can significant legislation be done by the midterm election? let's get to washington dc and kevin cirilli. with awe are here republican from texas, and i want to talk about something dodd-frank did, because it created the consumer financial protection bureau, which some republicans and centrist democrats have argued has gone too far. yesterday, the house of
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representatives voted overwhelmingly to roll back a specific provision with regards to the auto lending industry. could this potentially end up on the president's desk in the next week and be the start of more steps in walking back the consumer agency created under dodd-frank? certainly i hope so. yesterday was a good day for the rule of law. it was a good day for consumers. it was a good day for freedom. the bureau of consumer financial protection's, the bureau, as we call it, is still the most unaccountable, powerful agency in the history of our republic. as a nation,, committed to the rule of law. here is the problem with what the bureau did. they passed a broad, sweeping facto, although they did it under the guise of something called guidance, that would essentially prohibit auto
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dealers from taking a wholesale financial product and using their discretion to sell at retail. there are several problems with that. number one, the dodd frank act made it illegal to regulate auto dealers. number one, it was illegal. it hurtf all, consumers. an analysis by the wall street journal indicated that particularly borrowers that had better credit scores can pay up to $586 more. kevin: but if you are an analyst on wall street and are watching this and look at what is happening in europe, mr. chairman, where we are seeing the banking regulations dramatically increase and right now in the united states we are seeing them weaken or be rolled back, whatever you want to call it. it is your time to sort out the direction of where the u.s. is going to continue on down. what should people know in the next six months before the midterms? i think what we are seeing is a recalibration, we are adding -- >> i think what we are seeing is
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l recalibration. i'm very happy with congress working with the trump administration. we created a 3% growth tax growth tax policy, but we do not have a 3% growth regulatory policy. what you are seeing today is something under the congressional review act, where we can whack back bad regulations with the cooperation of the administration. you are seeing the congressional review act used aggressively under speaker ryan, under president trump in a way that is really going to benefit the economy and help get us to the sustained 3% economic growth. kevin: and that is a tool and watch lawmakers -- >> absolutely. kevin: what else are you going to use the congressional review act for? >> i am proud to say that the first time the president lifted his pen to sign the congressional review act into law and came within the
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jurisdiction of our committee. i was there. this particular auto lending guidance was going to be the next, but we are examining the general government accountability office. it has given us a whole new waserse of guidance that propagated by the bureau, so we are -- looking into that. mick mulvaney has plans to revamp the agency and how it works, and we are hearing that could happen as early as this week. >> it can't happen soon enough for me. kevin: do you know when we might get new developments on how he will restructure that agency? >> i have spoken to the acting director and said mick, what is the hold up? we need to get moving here. again, consumer protection is very important. very vibrant,re
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competitive, transparent, innovative markets that are vigorously policed for fraud and deception. we want our consumer financial protection's enforced, but the problem with the bureau under mick's predecessor was that they were making up the law, and they were doing it in a way that hurt consumer freedom and choice, that hurt markets. it was the arrogance and hubris of government and it hurt economic growth, caused free checking to be cut in half at banks, caused credit card offerings to go up by two percentage points. a lot of bad things happened to consumers. under director mulvaney, we are going in the opposite direction. kevin: deutsche bank is considering laying off 20% of u.s. half. there is a major piece of legislation in the works, obviously, from the senate that has a stance on tweaking dodd-frank. is there any update on timing about when the dodd-frank overhaul or fix, call it what
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you want, might get floor time or a vote in the house of representatives, and do you have any comments on joyce and bank -- deutsche bank? >> sooner rather than later is when we will see senate bill 2155 come over to the house. i am proud to say that when you look at the deregulation provisions, two thirds of it, maybe even three quarters started from the house. personally, i have been holding up the bill because i have been holding up many other bipartisan provisions that i would like to have included. the senate has let it be known that they did not want it to be included in the bill, but they would let our other bipartisan capital formation provisions go to the floor with that bill in commitment. i released 2155 to the floor for consideration. the majority leader will make the actual decision, but it could be on the floor as soon as next week or the week after, but that is a decision that he will make. mr. chairman -- kevin: mr. chairman, we will
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leave it there. thank you for coming on. chief washington correspondent kevin cirilli for us, and thank you for that. vonnie: we are more than 90 minutes into the u.s. trading session and seeing much movement in the overall indices, but lots going on underneath the surface. julie hyman is with us for the latest. bouncing between gains and losses on the macro level, but there is a lot more going on. let's start with a different vehicle entirely, oil prices. we have been watching him closely over the past few days. we have learned that folks who buy iranian oil will have six months to stop those purchases. if you look at oil prices today, we see them reacting to that. they are also reacting to the weekly inventory numbers that we just heard about a little while ago. crude oil unexpectedly contracting in terms of those inventories. gasoline is also showing a smart thatne in inventories, so continues to be supportive for oil prices, now just above $71 a
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barrel. the question becomes with an economically stimulative policy that the congressman was just talking about, are we going to see a crimping of that with a higher oil prices? energy stocks are finally catching up to oil, or starting to. we have the returns of the s&p 500 sectors going back to march 19, when we started to talk about withdrawal from this deal. uprgy stocks from that time 15%. and far outpacing the returns of in the s&p 500. in today's section, the push and pull between gains and losses, let's look at some of the big influences there. we have exxon on the upside arising for the fourth straight session, and alphabet rising after it was announced that waymo was seen as the leader in the emerging field of the time as drivers.
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walmart declining sharply after cart -- stake in the rt in india. investors do not like that. back to you. vonnie: still to come on markets, disney's latest earnings and its potential battle with comcast over fox's entertainment assets. -- uber'sy, uber ceo ceo speaks to brad's own at the uber elevate summit in los angeles. and a special european close tomorrow from washington, d.c.. u.s.ny's ambassador to the with a reaction to the decision of a lot of the iran nuclear deal. this is bloomberg. eal. this is bloomberg.
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♪ vonnie: live from new york, i'm vonnie quinn. ofk: and live from the city london, i'm mark barton, counting down to the european close. vonnie: disney shares are lower after reporting results, and much of the talks are around disney's deal to acquire much of 21st century fox. we are joined now by an analyst with colin. we can talk about earnings. there is so much to talk about soautumn line, topline, and many good things about earnings. but what anyone wants to know about is can bob iger pull this rupert murdoch still want a disney-fox merger? >> that's the question. in some ways that is a little unfair, disney has been executing magnificently on the business, but you have this huge deal sitting out there that was locatedcompensated --,
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due to regulatory questions, and now it is even more complicated because comcast might come back with another bid. this makes it difficult to have a strong view on shares here. so what happens next yeah go obviously, bob iger is talking as if the comcast bid never even happened. he is carrying on as if it is a done deal, but it is not, right? it is ado not think done deal. comcast could come back with a least, inbid that at theory, would be impossible for them to walk away from. now at the end of the time warner-at&t trial, we can see if this regulation will be a problem for disney and fox or for fox and comcast. once you pass that hurdle, if the deal goes through, that might give a green light to comcast to get more aggressive. we will see what they do. and then it comes down to what our frocks -- what are fox's
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priorities here? are they going to try and drive of disney, or do they want to go with disney because they feel like the equity has long-term value versus what would likely be a cash deal from comcast? get sky ordisney isn't interested in sky if the fox deal falls through? that is another part of this that is, located, you have a step in interest in comcast for sky, but we do not know if talks will be able to take all of sky. that is stuck in regulatory limbo. our view is that we think that sky is not necessarily a core part of the deal for disney. we think they are most interested in the pure play content assets that fox -- at fox, and probably to the regional sports networks that have held them build out their sports product. sky is probably nice to have for them, but not necessarily critical for them as they must have in the overall deal. mark: let's talk about the share
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price. in threerely budged years. you have a market perform rating, despite disney's box office dominance. the share has not moved in that time period. what will shifted to the upside. that it is safe to say even though disney has not gone up, their peers have gone down. couple ofeen a tough years for the media conglomerate industry in general, because they are facing competition from the likes of net extend amazon, who are happy to not turn economic profits in order to take shares away. that has been devastating for television margins. has suffered from that on the tv side, espn, their margins have been compressing. they have been able to offset that with incredible performance of the disney brand, but the net net has been a wash for investors. you have seen the stock though sideways -- i think at a minimum, you need to get some kind of resolution to the whole
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fox question so you know what you will own in 12-18 months before you see the stock making meaningful change in direction. does disney continue to response to comcast increasing offers? is there a ceiling here? doug: that is a great question, and to be honest i do not know the answer to that. bob did talk very competently, as though the comcast eel was not even an issue. deal was not even issue. a lot of this depends on the murdochs -- are they committed to disney, and if so, why? do they want disney stock? they turned a higher offer from comcast down once, so it is not just about money. again, if comcast comes back with a high enough offer it might be tempting. at that point, does disney ?espond with a higher bid i do not know. it is one of the reasons bob was talking so confidently yesterday, to avoid and sitting -- answering that questioning.
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vonnie: our thanks to doug. mark: up next, tartan troubles. why burberry shares are sliding today. this is bloomberg. ♪ this is bloomberg. ♪
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♪ vonnie: live from new york, i'm vonnie quinn. mark: and live from london, i'm mark barton with the european close. it is minutes away. stock ofime for our the hour. it is burberry. shares are lower and it is that to pace on the worst day since january, when the market -- the market closes in london in just a few minutes. major shareholders are selling it is stake. -- its stake. why? abigail: they are selling their 6.6% state, and they have held it for just a little more
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than a year. that is in contrast to their longer-term strategy. they have done it through a private movement with goldman sachs. gbl is saying they will use the funds for new investments and it is part of their portfolio rotation strategy. of ehrenberg, they are saying the drop that we see today is making some sort of go into ourlot -- bloomberg. the stock from the middle of february, up more than 20%, so a big rally as they are talking about a turnaround. today it drops down to the 200 day moving average, suggesting that near-term buyers -- the long-term buyers, are stepping up and supporting these chairs. ehrenberg is saying that despite the sale, bringing some questions to what is going to happen. the fundamentals have not deteriorated and the turnaround remains in place. and on the subject of the turnaround, what is the key here? abigail: it has to do with fashion. there is a big shakeup in the
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fashion house. director capped -- ahead of the creative department for about 17 years. some analysts are saying that perhaps this sale by gbl suggests that the turnaround, their strategy around the brand is not going as well as some may have hoped. at the end of the day it will be fashion, but for the stock it will come down to the numbers and we hop back into the bloomberg, we can see an issue with earnings that could give some concern for shareholders. selling --014, very solid earnings growth of 10%. not going in the right direction, nor are the estimated numbers. burberry needs to turn that picture around. it is still on the way, just a near-term lip here. vonnie: it is a chicken or egg question. is equity helping or hurting? we have seen that rotation in
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the directors in the several months and years, not just with burberry but with all of the fashion houses. of thanks for a great stock the hour. mark: stocks are up today, writing for the fourth consecutive day. the highest levels for the , stoxx 600nchmark since march. this winning spread best since march 12. the big event here in the u k tomorrow is that bank of england rate decision. the probability tells us there is a small, small, small chance the boe will hike sterling earlier. this is bloomberg. ♪ mr. elliot, what's your wifi password?
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so sophie, i have an xfi password. and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ mark: i'm mark barton. stocks are finishing their wednesday session higher, led by oil and gas. no surprise there after the
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price of oil ran to crude's highest level since 2014. oil and gas in the decision of trump's decision -- in the wake of trump's decision to pull out of the iran nuclear deal. thanks leading the advance, the highest level since the -- for since february 1. i want to tell you about the earnings season, still in full swing. your onoutlooks for for the bets that the jen -- the software business will make up for the deepening slump in the struggling power and gas divisions. industrial operations profit fell i 8%. they are bursting on a series of software acquisitions in recent itss aiming at boosting business, making factories more efficient. the industrial conglomerate did sign a contract in january 2016 worth at least 1.5 billion
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euros to build rail coaches and upgrade tracks in the country. one of the companies that might be affected i this decision to pull out of the iran nuclear deal, a court. first-quarter earnings growth was at 6.6%, surpassing estimates. -- was confident growth would accelerate, in the world's biggest brewer. ramping up its spending on marketing initiatives ahead of the football world cup in russia this summer. promotions have already begun weighing on demand in places like columbia, and shares have actually lost about a quarter of their value since the company acquired sab miller in 2016. shares are up by about 1/5 of 1% one of theburberry, moving shares today. shares getting hammered down by 6% today. it's called -- it fell by as much as 6.7% earlier.
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year afterre than a asclosing initial investment, 6.6% stake was sold off. shares climbed by 11% in the last month after chief executive mark overbeck he tapped former nchyengine designer -- give designer is the new creative director in march. but burberry, down by 6%. oil ine will start with the u.s.. after inventories, a surprise, but also we were focused on the the pulling out of iran deal. $71, but holding just barely above that. another 3% of gains today. point out the korean won, because mike pompeo has just said that the korea extended -- some it might be extended by one day and the location will be announced next week.
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that is breaking in the last few moments. the 10 year yield back below 3%, 2.99%. coming a massive auction at 1:00. and the mexican peso, as we continue to wonder what is going on with nafta, continues to stay , stronger 19.50 mark today but weakening generally. let's have a look at the growth the global -- the global macro movers. the yen is another that is weaker today, 109.69. it is pushing those are two won 10 lately. and the commodity complex is feeling the impact of oil going higher with a lot of those commodities, heating, oil, and gasoline, and putting on some dollars and cents today. let's stay with the markets, the stoxx and the energy components rallying asay, oil prices rising
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investors weigh the impact of the iran nuclear deal. -- why are equities weathering the iran decision by trump seemingly so well today? grace: when it comes to energy specifically, the underlying commodity boost via over -- oil prices is helping us. what is particularly encouraging when you look at a higher oil price is where expectations were win companies set guidance and where analyst are -- analysts are looking at the oil price at the moment. with oil looking to be closer to $70, that provides a nice tailwind for earnings and cash flows to oil majors. mark: but the oil majors have lacked again in the oil price in the run-up we have seen in the past year. why is that? are they playing catch-up? grace: we think they can. when you look over the past year, the oil prices up over
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50%. the oil majors are only around 10% when talking about the european companies. that tells you that investors do not believe the oil price. when you look at the futures contango,e market in meaning the futures price is below the stock price. that is what investors have been focused on. but now with such political risk, we think there is a chance that the oil price could be sustained at around $70 for the rest of the year, meaning shareholders would give some credence to the oil price for the cash flows and the fact that it already has an attractive 5.5% of it in yield. comes ton it leadership, the u.s. is marginally ahead right now for 2018. can it continue to leave the u.s. and performance in 2018? the first quarter of 2018, it was all about the u.s.. we put that down to stronger relative earnings. when we look at the forecast for 2018, the u.s. has benefited from tax reform, a weaker dollar
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from very recently, meaning that relative earnings are the same in the u.s.. when we think about how that is shaping up for the second quarter, it is falling in europe's favor. also with higher bond yields, europe is predisposed to have sector exposure, whether it is cannot at ease, oil and gas, but also financials, which tend to yields.her bond and that fits favorably for european equities as we go into the second half. vonnie: how do you explain that even though we had a stellar earnings season in the u.s., it did not help the industry's much and that might over to europe? >> obviously, expectations are quite high going into particularly u.s. supporting seasons, with concerns already anticipating a lot of the benefits from tax reform and repatriation in the form of share buybacks. i would argue that the earnings season was even stronger than the elevated expectation, the underlying level of economic rose in the u.s. positively
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surprising, but the muted share price we actually saw really does indicate that the market was there. and obviously some heavyweight centered to the u.s., like technology, experienced a more rocky ride, which is contrary to what we saw out of 2017. you advising your clients to change their strategies on the back of everything happening geopolitically and fundamentally? grace: in regards the geopolitical tension, we view that very much as part of over investing in equity markets. political risk does, and go, and we watch very closely the developments. but it is not prompting any major changes for portfolios at this point in time. we are watching corporate not just for 2018 but most importantly, what are the lead indicators for 2019 and the longevity of this cycle? that is the most important thing to ask. and bond yields, which are positive on equities and
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particular sequiturs -- sectors of equities to a point. we do not want the yield curve to invert, so we are watching yields as well. there is m&a, small caps, and restructuring. i know how important they are. is obviously something that has been picking up a lot and is in a typical late cycle dynamic. we look at m&a in various ways. you have the headline, company is taking over this company, but then you also have specialists. that adds to overtime quite a significant earnings the pre-in as they consolidate in a particular market. that is particularly relevant for smaller mid-cap. weh the context of europe, really like european smaller mid-cap's. we think they are high-growth, which tends to be quite hard to find across europe because we do not have technology, more involved in m&a. easier to find alpha
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opportunities because the market is generally less well covered the lower down the cap scale you go, and we find these businesses are quite tech enabled. they have embraced automation in a way that large caps often haven't. so very important. mark: thank you for joining us. grace peters, equity strategist at j.p. morgan private bank. vonnie: let's check in on the first word news. next three north -- >> three americans arrested in north korea are on their way home, on a plane currently with mike pompeo. the president tweeted that he will meet the plane when it lands early tomorrow, and said the freed americans assumed to be in good health. and president or no one wants to bypass the next parliament to expand his powers. a bills omitted to lawmakers would give the cabinet powers to issue decrees with the rule of law. it would be good until the next president is sworn in after the june 24 election.
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and israeli prime minister benjamin netanyahu is meeting with president vladimir putin. the two plan to discuss military coordination following new strikes in syria, blamed on israel. they also watched a parade celebrating the anniversary of the end of world war ii. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe, this is bloomberg. mark: thank you very much indeed. saving news shaking of deutsche bank, the chief considering cutting 20% of the staff. they lost 10% last month, 20% now. how big is this restructuring in context? up to be pretty big, i would say. is 25 people, obviously. we do not know if that will come to pass.
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they are looking at the whole business and it might turn out to be less than that, but there are scenarios apparently where reductionead to a 20% in the workforce. that could certainly affect areas more than some others. they have highlighted the u.s. rates business and corporate finance, and they are also soking at the workforce, some of those businesses might be had more than 20%. we are looking at a pretty big restructuring in at least certain units of the bank. vonnie: how much is the chairman behind this plan, stephen? has been with the bank for a very long time and is always involved in the big strategic decisions. more something that was devised under the previous ceo, who was out in april. they are now basically reaping the fruits of the review of the business.
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but he was always involved than his signature is probably on the deal as well. mark: what does it mean when it comes to the investment bank on the day of its earnings? it came clear that it is pulling back. , whiches today's news you covered, how does it fit into the bigger picture when it comes to the investment bank? >> as you were pointing out, the latest earnings release shows that deutsche bank has fallen further behind in investment banking, particularly in the u.s.. so this decision to restructure the union is -- unit is basically the acknowledgment they cannot compete in all of these areas and they need to cut back some. they are trying now to figure out how much they can do this without engendering too many negative side effects for other parts of the business. we have already heard from clients that they are not particularly happy, that some of them are thinking about shifting away because parts of the
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business are not there anymore. it will be a very tricky balancing act for deutsche bank to cut in a way that will not drive away the client. that is what they are trying to figure out right now. stephen erin, thank you so much. vonnie? later today, uber's ceo speaks to bloomberg at the uber elevates summit, which is taking place in los angeles. tomorrow, a special european close from washington, d.c.. germany's ambassador to the u.s. with reaction to the u.s. decision to pull out of the iran nuclear deal. we talk trade and lots more. this is bloomberg. ts more. this is bloomberg.
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♪ mark: [inaudible] were we take a look at some of
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the most telling charts of the day, what they mean for investors. dani burger is with us today. ani: a growing emergence of investors and hedge funds, which have fallen for three consecutive weeks straight before this week. let's take a look at what they have done. you can see that over here, hedge funds started the selloff e.m. shares as real money investors held steadfast. in fact, real money investors are here at the end, on the blue line. this is the most bullish they have been on record. and this spread out here, this 2010e biggest spread since at least. this is as far back as the data goes. they both can't be right. so far, e.m. is rallying. it looks like real money has the win at this moment. this is that btv 1318. the tubeame in on today, which gives danny a bit
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of a bonus point. it is equal and fair, what do you have? to do withe has argentina. we have not had much to do with argentina, but we have talked a little bit about emerging markets. out, yesterday, we saw the 100 year bond plummets, back up to 8%, a level we have not seen for a while because the ims is clearly being asked to help out with a credit line. we saw the current fluctuate quite substantially, and many people are saying do not emerge -- do not worry about emerging markets, but argentina might be an exception. you can see that chart on the bloomberg as well. mark: argentina, 100 year bonds -- topicality, you know exactly how to push all my buttons. dani burger push my buttons --
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pushed my buttons as well, but she got there first. she wins. done, dani. this is bloomberg. .
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♪ vonnie: live from new york, i'm vonnie quinn. and i'm mark barton in london. this is the european close on bloomberg markets. president trump decision to exit the iran nuclear deal is creating a great deal of uncertainty, especially with european companies. of --nie, give us a sense >> business relationships with iran, and i think you have a host of companies that are now
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scratching their heads, trying to figure out how to move forward. a few worth noting, et al., siemens, airbus, and they need to look at whether they can go ahead with the agreements they have in place, or will they try to get exemptions somehow from the u.s.? mark: there are exemptions, grandfather clauses, but you risk working the u.s. and having access to the world's greatest economy. and companies tend to err on the side of caution and try to avoid running afoul of u.s. sanctions in any way, shape, or form. i imagine they would do so in this case. you have european commission officials saying they will do their best to try and protect european companies that have outstanding business in iran. it remains to be seen how they could possibly do that. with that be some sort of
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negotiation for exemptions with the u.s.? that is the thing to watch for now. stephanie, what companies are particularly gathering and meeting on strategy here? >> like i said, total has one of the biggest outstanding contracts. they are looking very carefully at their position and how they will proceed from there. siemens is another company that comes to mind that has outstanding contracts and business relations with iran. again, i think it creates so much uncertainty going forward if they can continue with those deals. is there a volume of business that is significant here, or do you mean it being more of a nuisance in terms of logistics? >> i mean, companies have found it difficult to do business in a ron. i think there was a lot of hope
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after this deal was struck that the investment would conflict in. i think they found it very difficult for a number of different reasons. contracts was a drawn out process, regulation and all sorts of things got in the way of a real flood of cash from both europe and the u.s.. so i do not think the actual volume is huge, but i think it is politically very significant that the u.s. has pulled out and it has created this political fallout, another reason for transatlantic relations to take a hit. mark: and the eu shield european companies? we talked about exemptions and grandfather clauses. putting that aside, the eu and the other five seem to want to go it alone when it comes to the iran nuclear deal. ensure thatd cannot iran maintains the economic
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benefits of the deal that was in place? will trynds like they to. the other issue is china and russia, who were signatories to the deal, that russia is very upset by this. it looks like they will try to push forward with existing relationships, allowing their companies to go forward. as we know, many russian companies are already under u.s. sanctions. those business relations may continue. -- frenchthe friends finance minister's comments, when he says this makes the u.s. the economic policeman on the asnet, he was clearly irked, is the u.k., germany, and france as well. does this change the whole micron'ship, given recent visit to the united states? doesn't change the dynamic between the eu and the u.s.? you have this recurring
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theme, where european leaders come to the u.s. to visit trump, try to make nice and persuade him on their point of view, whether it is on the paris climate change records or this deal. asseems to not his head and soon as the european leaders leave, he turns his back and does what he was planning on doing to begin with. for: stephanie, thank you joining us. stephanie baker on the eu impact of the iran decision. i know you are off to washington shortly, vonnie. ?hat are you doing, why why aren't i coming with you? vonnie: get an overnight flight and be there in the morning. mark: someone has to stay here for the bank of england tomorrow. we are going to be speaking with the german ambassador, among other things, but let's take you to the white house and president trump. president trump: slow strong -- so strong and so good with the things that are happening, including a tremendous foreign
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affairs picture, if you look at what is going on with so many different elements, including flying back are three what they were calling hostages. we call them find people. really fine people. they seem to be healthy. they will be landing at 2:00 in the morning at andrews air force base. i will be there to greet them. mike will be with me. it will be a very special time. nobody thought this was going to happen, and if it did, it would be years or decades, frankly. nobody thought this was going to happen. i appreciate kim jong-un doing him to go.lowing we picked a time, we picked a place for the meeting, or summit, as you like to call it. i think it will be very successful. as i always say, who knows. it will be a very important event.
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again, this is something that nobody thought was going to happen for years or more. i really believe -- it will be a great thing for north korea, south korea, and japan. i want to thank president sheikh, who was very help to us two days ago on something very specific. china has been very helpful. , ande working on trade -- we appreciate it and president i spoke to president moon and explain what was taking place with respect to three gentlemen and president moon of south korea was a very, very happy to hear it. he, likewise has been incredibly helpful. the relationships with have -- abe,ve with prime minister
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president moon, president xi is going into what is place -- in place right now and we look forward to having the meeting with north korea announced in the next couple of days as to the timing. we have a lot of things going on within our country. we very much toughened up the border, but the laws are horrible. the laws in this country for immigration and illegal immigration are horrible and we have to do something about it. not only the wall, which we are building sections of wall right now. we are fixing a lot of wall that basically is nonexistent that has been ripped to pieces or poorly built. san diego has asked us to go forward with their section of the wall in california and rather than not doing that and letting them lobby for us with
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governor brown, we decided to do it and we will have a little bit less of a lobby, but we will have a lot of people in san diego. coming out numbers from the economy and you are seeing what is going on, there are extraordinary. the -- they are extraordinary. the stock market is up almost 35% since the election and i think businesses are doing even better than that and they are really ready to rock. the conference we had yesterday was a very important one. you look at the deal we had with iran. it was a one-sided deal that ultimately was going to lead to nuclear proliferation all over the middle east and they were talking about it, other countries were talking about it. it was going to lead to that.
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if they were all very happy with what i did. that was a one-sided deal and we cash on.8 billion in getting that done and it was not good and it was not appropriate and we will see how we do with iran. probably we don't be -- we won't do very well with them, but that is ok, too. they have to understand life because i don't think they understand life. if you look at what is happening with the middle east, syria, death.it is we cannot allow that to happen. we have terminated a terrible, terrible deal that should have never ever been made and we will be putting on, among the strongest sanctions we have ever put on a country and they are in

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