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tv   Bloomberg Daybreak Europe  Bloomberg  May 14, 2018 1:00am-2:30am EDT

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and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. >> good morning. edwards and his of the top stories. the president orders the commerce department to get back into business after cutting the company off from suppliers. the energy minister say there is an adequate buffer. supplies. cut the implication of the flattening treasury yield curve will be important to fed speakers who we will hear from this week.
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the morning. welcome to another week on the program. andave the breaking numbers estimatehead of the is both of the numbers numbers withof the the questions around shareholders and this is a target's that reflects the andance in the netherlands they see a strong balance sheets
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look around the story. meanwhile, we have had a mixed this is what we have talked about with a more positive working relationship chinese review is up by half a percent and we are back to business. and we heardhe low from the energy minister and talked about the capacity to pick up the slack that was left, if there was any and they said that it was too early to gauge
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the policy after trump pulled away from the iran deal and we have news with data coming out and the trade talks will restart in washington. the futures suggest something pretty positive for equity market and these are the margins we are talking for the start of the trading day with a little bit more conviction and the inflation story could be under control and helping to gain some ground. we will speak to clifford abraham for the first interview of the day to talk about the return of the strength in the balance sheet. >> thank you.
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the u.s. is ready to allow investments when they have verifiable proof of denuclearization. john bolton said they were prepared to open trade and an investment as soon as they can and the secretary of state said that he thinks that the for risktakers and capital providers. the supporters of a shiite cleric have taken to the streets after the electoral commissioners said that he was the front runner in the national election or's. the victory was declared after the 2003 toppling of saddam hussein.
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the leader has forged ahead with a government agenda and marathon talks. leader of the anti-immigrant lead said they were close to finalizing a program after a day indicatedions and he that they didn't plan best the energy minister has said that he told bloomberg that there would be an adequate buffer for output to deal with similar situations in the past. aboutnister has talked
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the unity of brexit. theresa may says, i will not let you down. this comes one week after the theions spilled over and relationship was labeled crazy by boris johnson. most campaigne promises comes into effect later audaciousthe most campaign promises comes into effect later. global news on the air is powered by 2700 journalists and analysts in 120 countries and you can find more on the bloomberg terminal. the late trade with the nikkei and a lot of
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strength is coming from hong and theer the bell chinese stocks got lifted and we watched the malaysian session withly after resuming things looking fairly stable, at the moment, without that drop suggested by some analysts. trump has given a bit of a lifeline and you are seeing a kong andllies in hong you can see these consumer and therallying campaign pledge to nullify the goods and services tax is seen as positive and the record high
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occurred after the earnings beat with a target price of 8500, a little higher than where we currently are at. >> some breaking news is coming in the telecoms space and you have the adjusted and the estimates, which was just a with light of the income the mobilephone operator in south africa and they have operations and we will watch out for when that opens. withdraw from the iran accord and bob dudley says that he is not banking on this
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barrel rating being the norm. >> i think what we have seen is a with drawl from the agreement, which seems to be the beginning of a new negotiation. things anduld affect there is uncertainty, and that is reflective of the oil price now. any iranianurchased oil? >> i think it is good for us to take a breath. >> right. knocked ae gotten little about fiscal discipline. do you think that that was fair? market andet is the we have been really clear.
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you can do a lot more with capital today because of capital we have morend projects coming this year and i think that it is all about the discipline and the care and we have had circumstances that we are still working through. rethinkingu consider interests that you have thought about? because we will look at this. higher oil prices made this easier or harder for you? framework and we do
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acquisitions. and we haveinvolved we are not here and $ this company on fairway.f of the u.s. production would jump and offset some of the declines. >> there seems to be discipline and what the market wants to see. have you considered raising dividends? >> i hear a message about the lack of investment in the industry and we have always had a strategy of increase distribution at the right point
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financials down and we might consider something like that's. >> you have signed the agreement with the iraqi government. how is that going and when would we see the results of that's? investor andig have worked for a few years now and we know that we have a lot to add and this combination is and we had astep lot of production there. >> we see these traditional ande routes get redraw on this first shipment gets carried
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later this month. impact on see that gulf producers? tradese are two types of and there is a new world of shorter-term contracts that the market will respond to and we all sorts of plays and this increases the trade and that is what the market will do to respond. and the tradedity is a little slower. bp ceo speaking. theing us on the set, multi-asset fund manager. thank you for joining us.
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i see how the oil output has in 2016 witht grew obama andent under this was a talking points and bob dudley talked about not banking on this oil price. conversatione the going? worth bearingis in mind that there are a series of political risk events that and ight expect over time would say that the oil price is elevated by these events and i think that people overreact to
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data and there is an element here with a fundamental point of stepping back from the noise and seeing if there is value in discipline in this sector and there is and i think that is attractive because you compare it to the government bonds. >> what makes you have faith in the discipline? believe theto management, but you do not only believe the management. the are traumatized by crisis. favoru have that in your as an investor and you get diversification and i am
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comfortable with the energy sector. to thed you stick well-run energy businesses that have not invested as much as iran? >> i think that is a bit of a side story and that there is no need to be too cute about this and you can do pretty well with the competing assets. >> thank you. up next, the president pledges before companies days the vice premier shows up in washington. are the trade tensions starting to ease? campaigning gets underway and
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this will be from 5:00 and we will bring you this exclusive conversation. this is bloomberg.
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>> good morning. we have gains up this morning and some signs of tension we will talk about that more. >> thank you. havehinese regulators applied to -- the chinese ministry of commerce officials have been asked to review the proposed remedies to protect local companies. tensions growing trade
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with the united states. the takeover by fujifilm and this move has added a major victory to carl icahn. about 13% of own xerox and jeff jacobson will step down along with other board members. -- john will take over as ceo. that is your bloomberg business flash. >> thank you very much. donald trump has ordered the commerce department to get the telecom company in business after cutting off the company. the president said that they were working to save the business and this was just days before the arrival of the top
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economic adviser in washington. we are joined now from hong kong this set uphow does to visit for the chinese delegation sweet? >> it is certainly a good sign about things happening because the last time they were together , they didn't really make progress and they just showed a list of demands that were stringent and you had this going capping.t was knee so, the fact that the president said this was significant for relations and china had seen this as a company that was
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dependent on suppliers and the significant were could movet that we past this is good. >> it is interesting to look ahead to the trade talks. north korea is part of this conversation and the discussions on investment in north korea seem to be gaining momentum. seemed the main message to be? >> give up your nukes and you get private investors coming in. now, the question is how that , whoned with north korea often want synchronous measures andwill take certain steps
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the u.s. says they will not repeat mistakes of chasmst and they have a between how the sides are thinking about that. >> thank you so much. now, there are some slightly warmer sounds here with these trade conversations between china and the u.s.. what we heard a couple of weeks ago was a very different position. ironic that he is a representative of international labor. isn't something anyone might have anticipated. the pattern is emerging that it reconfigure the
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trumpet isand willing to be flexible and a just and this has to get viewed as a good development. u.s. terms of that conversation, there is this andad with the crunch time do you think this will invert and give the same signal as the past? and yould be surprised should expected to raise. the 10 year yields are a good thanand should move less the short end of the yield curve
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and i wouldn't read more into that and the more fundamental question is where the rates settle and we do not know. the world abandoned the normalization and that was a shift with bond yields and a low point in the bull market for bonds and the honest answer is that we do not know and that you can argue these questions in any way and it is early to say. >> thank you. 6:26 and we will speak to clifford abraham in his first interview of the day and one of the first things interested is of buybacks and the return
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dividends to keep investors and waiting on the end of the year. this is bloomberg.
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>> good morning. this is daybreak here. it is pretty flat. let's get some of dates on the market. are slightly backs and gaining some traction on andets after the election the stock market stand out is hong kong this morning with the hang saying at the fastest rate in years and the stoxx posted higher with futures pointing
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higher. the volatile day with the markets coming back and you can see this is where the dollar is and it strengthens and we see it starting to level to where it was before that election and we did see that surge and there was a prediction of a test after that surprise election and we have the opec member who be weighing in on the iranian sections -- sanctions and that will create pressure yellow can see that's in and brent is in blue.
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so, they say there is enough capacity to act as a cushion and the question now comes to the extents of the field and allowing prices to get tighter and you can't forget the venezuelan election impacting prices. now, the dutch banking group reported earnings that beat analyst estimates and joining us now is clifford abraham. here.o have you is this thanks to the robust dutch economy? >> we are pleased with the results of this solid quarter
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and the overall income grew well with costs well-controlled in benign dutchf the economy. this is a part of your business and what are you assuming? >> yes. we are confident the dutch economy will continue to grow over the next few years and we have a moderate risk profile and we need to earn when conditions get a little tougher and it is why we focus on keeping costs under control. >> you generally have a lot of capital to compare with other banks.
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how do you see that ratio developing. -- developing? >> we have a target that we are within and this quarter was the first quarter where the new accounting rules came in and accounted for a little drop in capital ratios that we would like to see in the range that i mentioned and we are prepared adapting ouron business to this new environment . >> you talked about the need for clarity and there was many banks positioning and you promised more information on increase of dividends.
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what are the factors you are considering? update on the capital and we said we would pay dividendsofits for that we declared and we would consider the additional , if weutions and remained in the capital target, we could reflect on that. all the normal things would and howon opportunities the businessmpact for the next few years. >> any idea of when we would get information on that subject? updated inrly and we
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february and it is further on in the year when we would if a consideration of the distribution. >> ok. there was a quarrel. what is the status on succession and the type of person you are ?ooking to fill the roles >> we are making good progress and that is all i can say. >> let's go to business. there is that dutch mortgage market and why are you expanding in this area, given the reliance on that part of the business? the market ande we have a market share that is profitable for us and we look to maintain the market share
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profitably and we have maintained this and it remained grown with the commercial banking here and we are pleased to support companies and growing our natural resources and expanding our presence where we see the opportunities to grow the business and leverage. >> we talk a lot about the investments in digital. what are the plans? digital anden on the things that i highlighted is and half of our andice and sales is online
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more people deal with that and we have thatstem is pretty extraordinary. >> thank you for your time. europe.ick with is marathon talks this weekend. according to the league officials, the anti-immigrant finalizing ase to political program. ouring us now is
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correspondent, kevin. what are we looking at? is a> the latest that we have refinement of various programs and they hope to meet with the president today to name a new minister. >> this is a crucial thing we do not know and we do know a little bit of the plans and the things we don't know are on the minister and does the president or doesberstamp something substantial happened today? tothe program will be vetted make sure it works and it has gone on for a couple of months and he is a sign of stability
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and will make sure that any of these programs works well. >> how do you think the government plan will be viewed? we had talked about whether a threat tose european reform. where is that? where is that? >> well, right now, there is a question about how all of these policies yet funded because a lot of people say, where does this money come from to make up a shortfall? there has been a lot of skepticism about the european union and that could play in to how things are viewed in brussels. >> thank you for joining us here. let's pick up that conversation. chart that shows a
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been a lenshis has they ares how nervous plan. over a andore comedians neo-nationalists are happening everywhere and i think you can't try to predict every twist and turn because it is difficult to form a government and difficult to legislate. is aboute questions neo-nationalism and populism, these global trends, as just an electoral strategy to motivate a significant minority that can swingelections or if they
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policies and i think that the evidence is that they do not have coherent policies and italy is no exception to the trend. for thing we have looked logic gone is that these two will be looking to review european treaties and they could vision of what mack brown and merkel are doing. >> i'm not even that big of a believer in them. and is yet another crisis the intention is that you do not have a fiscal flexibility. you are not really sovereign because you cannot print your own money and this is another example where this gets tested. they know that, you step by the
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and and you are in trouble you don't have sovereignty. and theke sovereignty fiscal policy still requires german support and there isn't fiscal flexibility on they magnitude that they want. >> fake sovereignty. big words. economy about the interest rates and the momentum to the upside. >> absolutely. increasesnk these are with negative interest rates, what could they do with the interest rates? i think that the economy is stronger than anticipated and there was a little bit of
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moderation that i would not lead -- read too much into. you virtually have full employment and monetary policy should get tightened. these will almost certainly be a stimulus because nobody likes negative interest rates and i think that there is a lot of value and outside on earnings and policy. >> if you want to change the country, it is one matter. changing bank stocks is another. >> you think that will not be seen as a tightening. >> i do not think so. i don't think that the interest ites are linear and i think hurts savers and the marginal borrowers are low and it is more
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about the economic conditions driving a demand for credit and seeuldn't be surprised to negative interest rates and i think people will view negative interest rates with some positivity. >> thank you. the exclusiveyou interview with the governor of the bank of france. coming up, the malaysian markets electionsr the shock -- election results and, on tuesday, the exclusive conversation with turkish -- the turkish president and we will bring you that exclusive conversation at 5:00. this is bloomberg.
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>> there are many more milestones here. >> with the drilling business, would this be a possibility here for partnership question mark >> again, we're in the business of maximizing this was shareholders chainere is a value across the business and it will look atated and we different opportunities to maximize value. >> there were opportunities for the oil minister here and a report that you might look to take a stake in this refinery. is that something on the call? >> we have developed an iternational strategy and
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enables us to be able to expand. opportunities and andre going to be able to this sale is what is next for you on the capital market perspective. ande have looked at this have accessus to on >>oked and that you
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that was ceo speaking with tracy. this is trading resuming after with theion result emerging markets this morning. is still with us on said. let's talk about the emerging markets. there are a lot of idiosyncratic how are you distinguishing between these right now? it is not a coherent asset class. universe is pretty small and the traditional market problem
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markets with the equity and a huge dollar liabilities it is a classic emerging market and i think that chinese has significant ratings and you look at the markets in indonesia and the bond yields russia is there and idiosyncratic and you have the issues with the u.s. and russia and the energy price. i think the opportunities in there. where do you see the dollar
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heading? there are traditions getting there is a little bit. this dictates a lot of the currency thinking and i premisely would not and itth the yields started to break down and i think itself and sterling had a lot of value and there are some of the currencies and i wouldn't take a big view
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on the majors. it fell back on the .eassessments of the race >> sure. exactly. it is athe charts and bilateral exchange. >> absolutely. forget this and you have to look through with the datamism in the short run covered and i think that this is a pretty good level. >> thank you for joining us. is the place to go and
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the opec ministers toggle of their thoughts on iran and we will have more. this is bloomberg. ore. this is bloomberg.
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anna: good morning from bloomberg's european headquarters. i'm anna edwards. this is "bloomberg daybreak: europe." the u.s. president orders the commerce department to get set back into business, weeks after cutting the company off from its american suppliers. opec has an adequate buffer. the curve could cut supply by one million barrels a day. and the implications of the flattening treasury yield curve discussion be a key group for a parade of said speakers we will hear from this fed speakers we will hear from this week.
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♪ you. very good morning to it is just gone 7:00 here in europe. we are getting numbers add up to cater. this is the pharmaceutical business. they have given us their operating income for the previous four years. billionout the ¥237 that had been estimated. in terms of the full year -- for your net income approach, the net income forecast is lower than the ¥154 billion penciled in a previously. the operating income is a little lower. it seems they are reassessing their earnings potential for the full year. those numbers do seem to be a little light of the estimate.
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they were giving interim dividend estimates and the like. the big question is how the japanese custom -- company will swallow up a business larger than itself. buyinge on the cusp of shire plc here in the united kingdom. this will be the largest foreign acquisition by a japanese company. it will require takeda to take on additional debt. the ceo is trying to add another fourth pillar to the product line up we see at takeda. that is an interesting story, we will see how that performs. we are getting breaking news coming in from the aerospace industry. from airbus specifically. will leave the cff 2019.mpany in that is coming to us this morning. let's have a look at futures in europe. u.s. futures happen pointing higher all morning. let's get to the risk radar.
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we have mic is asia up. they are expected to go higher on the european story. let's go to the risk radar and show where you are on the asian story. a slightly more positive risk environment. at least the conversation between china and the united states, that seems to be a little more positive, when you look at the chinese review of qualcomm. all of that mood music is improving. the malaysian market is back in action after wednesday's elections. that looks to be volatile on currencies and start markets reactions. -- and stock market reactions. they say there is another capacity within opec to pick up where iran leaves off. the dollar index, we will keep an i on that as we look at the conversation between china and the united states.
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let's have a look at the bond markets. a big question around the italian bond markets. that is what we will be watching for this week with regards to the italian political story. , they areeekend coming up with a joint plan. a few details missing as far as who they would have for prime minister and how these would be funded. but it might have implications for bcp. let's get a first word news update. juliette: thank you. supporters have taken to the street of baghdad after the country's electoral commission said he was the front runner. results are in from half of the provinces. the elections marked by record low turnouts was the first after there to claim victory over the islamic state terrorist group.
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duo have allist but completed a governing planned that includes a tax rate, and a lower retirement age. the leader of the antiestablishment five-star movement says that they have refined the last details. the pair intend to meet the president today. the u.k.'s prime minister has called for unity over brexit. theresa may wrote in a newspaper, you can trust me to deliver. i will not let you down. it came after a week in which cabinet tensions spill over, and her plan for the trading relationship with the european union was labeled crazy by boris johnson. mostf president trump's contentious campaign promises comes into effect later with the inauguration of the u.s. embassy
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in jerusalem. he said it is time to recognize the city as the capital of israel. much of the region opposes the decision, and palestinian authority has broken off contact with the trump administration. global news 24 hours a day on air and tick-tock on twitter, powered by more than 2700 journalists and analysts in 120 countries. seeing thea, we are regional index higher for a third consecutive session. the nikkei closing higher around 0.5%. hong kong and china higher today. we are watching what is happening in malaysia. stocks receiving trays for the first time since the election. there was a fall of around 2%, but it is tracking higher now. staving off the pessimism analysts were seeing. we have heard in the last hour or so that he will be good with his election promise to take away gst.
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having a look at stocks in the region we are watching, i mentioned the malaysian players. a lot of the stocks are rallying on the fact that gst will be taken away. front runner in member ranked returns in the region. we are watching the cte story getting a lifeline from president trump, and a lot of the suppliers rallying. hong kong gets 46% of its revenue from the chinese company. falls to lows, saying up for year earnings are near the bottom end of the range due to competition. anna: thank you. juliette saly kicking off the week for us in singapore. --cks in futures are likely are largely in agreement. but oil has held at $71 a barrel. despite the threat of u.s.
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iran, other opec nations have signaled they have enough of their capacity to mitigate any market impact. tracy alloway spoke to the uae energy minister in abu dhabi. . we have been there before, and i think opec had been resilient to deal with many of those issues in the past. some of the member capacity, they have that can be used with production. -- with reduction. anna: joining us in london, stephen isaacs. stephen, a very good morning to you. let's talk about oil. oil whenoncerned about we see the trump administration move away from the around deal -- from the iran deal? >> i was listening on the radio
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this morning when you are hearing the $100 a barrel calls. it makes you worried. first of all, what happened with iran last week was hardly new news. it was highly anticipated. he said it would be a campaign promise. . think that is built into it more importantly, opec was working on the quotas. they are very difficult to negotiate. so it will be the easiest ring in the world for them to relax those quotas -- it will be the easiest thing in the world for them to relax those quotas. they don't even rely on changing the quotas. anna: you don't believe $100 oil is on the cards? because opec doesn't want it to be? stephen: i think opec would like to see quite higher prices. who wouldn't? though we will see the seeds of problems further down the line.
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opec must be congratulating itself, arresting the dangerous collapse in the prices of two to three years ago. it is time to say let's relax a bit. the sanctions will work. non-us companies will have to fall into line because of the way the u.s. treasury works and the way sanctions will be made. i think they will pat themselves on the back and say thank you. unofficially, this will act in the those quotas. the higher oil price have the negative hold on the global economy that it has done in the past, compared to the last few times we saw oil prices this elevated? is it a negative because of what it does for the competes -- for the consumer in the united states and elsewhere? stephen: i don't think this level of prices.
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it changes a number of balances, it is so good for some countries and not good for others. deficits see greater and inflation. countries that do not have high taxes, most of the cost of petrol comes through tax. if you marginal pen -- a few marginal pence or euros. if you are in a world where taxes are low, a 20% or 30% increase in oil prices could have an impact. ivere will be select losers in this. i perhaps have overused this chart. this is around the u.s. yield curve, and it has latin since 2000 -- it has flatened since 2007. is this something that is run and center to you?
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do you look at this for where the global economy goes? ofphen: if you have a chart the two-year treasury, you see the highest levels of geo treasuries in the same timeline. i think this chart is over rolled. the idea of a yield curve being symbolic, i think it does matter. if you have long-term rates falling, long-term rates rallying, and the rest of the curve stays where it is -- it depends on where you get to that shape. i think one should pay attention. but we are in an environment where the whole-year-old curve has gone up. the short end has led the way, which is not surprising because the fed will carry on with rates. i am not worried about it.i will focus on what is happening with rates , and there is more to come. three or four months now into jay powell's chairmanship, we
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need to start read the tea leaves. how is he going to seed u.s. interest rates? i think it is a new regime. a couple interesting comments made. it was not made by him, but it was at the height of the market back in february.the common was that it was small potatoes. i think what that commentary means is this federal reserve are going to be left sensitive to gyrations. the yellen put, the bernanke put, it is always going to be there, but it is a lot lower than people believe. the fed managing asset prices indefinitely is a fiction. the bar is quite high. i think what chairman powell wants to see is a normalized u.s. interest rates at a time when unemployment rates are very low and the u.s. economy is growing nicely. gyratingces might be
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around, but they are still near all-time highs. why would you not carry on raising rates? but the second comment by powell himself came last week about emerging markets. he was asked, can emerging markets cope with higher rates? he said, it is manageable. i don't want to be too semantic, but i think he is saying, this is not a real problem. if it is our problem, i think we are doing ok. that leads us to believe that the next round of rate hikes is coming. one in june, a couple more this year from shaw. and 2019, they will carry on. the u.s. economy is coping. tax cuts are coming through, prices are ok. anna: and he thinks emerging markets are coping as well. thank you. we will say this conversation. coming up, what our business leaders looking out for when it
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comes to u.s. sanctions against iran? we will hear from the ceo of siemens. tomorrow, we will bring you our exclusive conversation with askey's president erdogan campaigning gets underway ahead of elections on june 24. erdogan is in london this week. we will bring you that interview 5:00 a.m. tomorrow london time. this is bloomberg. ♪
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"bloombergis daybreak: europe." minutes to go until the start of the first cash equity trading day of the week. this is what we are watching out for this week. today, the u.s. opens its embassy in jerusalem, capping a contentious move that has soured american-palestinian relations. the palestinians broke off relations.
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these are live pictures coming to us from jerusalem. tomorrow, we stick with the u.s. theme, but talk about trade. the vice premier is set to visit washington to continue trade talks with steven mnuchin. we will check in on whether we see any positive move news. friday, russian president vladimir putin and german angela merkel will meet. president trump has switched policy and ordered the commerce department to help a company stay afloat. banning the company from buying american technology, he tweeted that he and president xi jinping are working together to help the chinese telecom company get back in the business fast. turn forajor
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president trump, who has accused china of stealing american jobs and technology. chinese regulators are set to have started their review for qualcomm's application for semiconductors. china's ministry of commerce officials have been asked to houston a delayed review -- two o hastened a review to protect customers. that is your bloomberg business flash. anna: thank you very much. topanies will have to wait find out exactly what sanctions the united states plan for iran before making business decisions. that is according to the siemens ceo, who spoke to tracy alloway. she asked if he was concerned that iran sanctions could impact business. we need to take a look at what the sanctions actually mean. it is clear that if there is a
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, thencal government siemens will order the political mandate. do you feel there is room for europe to increase cooperation with iran, given the u.s. is stepping back? this is what we have heard over and over again. >> i am not a politician. i have a company to run, which is complicated enough. was always doing is -- people talking to each other. tracy: is there anything europe can do to reassure you that doing their business there is going to continue to be possible? it is a political world. it is complicated.
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there are a lot of things which are ongoing in syria, the ukraine, elsewhere in the world. the matter is very complicated. the governments need to come together and find peace in syria. t\/\/\ -- the companies can help rebuild the companies. it is toold you say early to make decisions about what you will and will not do in iraq? >> we need to see what exactly the u.s. government has been laying out and what we need to do, and then we follow through. tracy: when it comes to the broader energy landscape, you provide a lot of the technical expertise of many energy companies. what is the biggest opportunity
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for you? >> the biggest area of opportunity is automation into the digital world. oil and gas field, into the pipelines, a natural gas environment, and help the companies to be highly effective in that environment. we go together. as the customers, you can tell people like it. ceo: that was the siemens speaking with tracy alloway in abu dhabi. stephen isaacs is still with us. when we thought the u.s. administrations the boy from the iran deal, political leaders trying to find a way so this company can still exist. is there something to salvage,
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or is the trump move too big a deal? stephen: i don't think so. their legal department will be telling them straight away this is a complete hand grenade. , you can change sanctions. if you want to do business with a u.s. bank, to have your dollars cleared, which for siemens is part and parcel to their business, i do not see any way in which you can avoid being drawn into this. for any corporate trying to do business with iran who thinks they can carry on and ignore sanctions, they would have to business.credible i don't think that is possible for large companies. juliette: and -- anna: in the u.s. security advisor making his thoughts clear, suggesting that european corporate would make it difficult to do business.
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speaking of emerging markets, the rise of populism in emerging markets, where do you look to in em for this populist move, and does it impact equities or fx or both? stephen: i think malaysia was the first chink in the armor. complicated by a corruption scandal, but essentially the new regime made all sorts of promises, which are going to lead to a different fiscal outcome. if we look further down the line, we have elections in turkey. the president is making agree just comments about interest rates. in mexico, which is a big one and important, we have a real populist, a friend of corbyn's, who is ahead in the polls. we are seeing trend here, and is that governments
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and societies which have lived high off the hog on borrowings, at a time when u.s. interest rates are rising sharply, this will lead to, in my opinion, oppression of currencies. whichi have this graphic, comes from the international monetary fund. funds are not sufficient in emerging markets and their concerns, they point out turkey and a host of others. there are some emerging markets, notably russia, that same robust. stephen: that is due to commodity. higher oil prices have helped and will help the united -- will help the middle east. i see big problems ahead. higher dollar yields, huge external dollar imbalances, and populism, a lack of desire to attack these issues, is all going to lead to a merging market problems. anna: thank you for joining us.
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stephen isaacs here with us on bloomberg. we will give you an exclusive interview with the governor of the bank of france at 9:00 a.m. london time. ♪ retail.
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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. guy: good morning.
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we are live from our european headquarters in london. matt miller off today. the cash rate is less than 30 minutes away. ♪ guy: populist progress after a weekend of talks. they are nearing a deal to form an italian government. the biggest surprise, the market seems ok with it. zte at, and trump throws life


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