tv Bloomberg Markets Americas Bloomberg November 14, 2018 10:00am-11:00am EST
>> here the topries coming from bloomberg and around the world, prime minister theresa may strikes a brag agreement with the european union, but can she get it past her -- a brexit agreement with the european union but can she get it past her cabinet? , andll eyes are on the fed the future of cable with mtv's ceo chris mccarthy, he tells us how mtv is innovating across digital. in the nextand more couple of hours, but first let's connect with u.s. markets with abigail doolittle. >> the buyers are having a rebound rally after yesterday selloff, in fact a multi-day selloff for the major averages,
we will be taking a look at the highs in a moment. on the bottom, the big story is oil. its first update in 13 days, that record losing streak is down 12, for 12 days in a role. plunging to a percent yesterday, worse than 2015. we are boosting confidence overall, let's take a look at the imap on the s&p 500 and you will note that 10 of the 11 sectors are trading higher, only utilities are lower as rates yield bonds that are higher. 1.4%, there is energy of it's a bit of a slide there for energy and a tailwind for compton. let's take a look at the movers in the energy sector doing well, some of these were the biggest drags yesterday but today we have marathon oil, apache noble energy and hedge corp. helping out the energy sector.
as the major averages, they are higher but off the highs, nasdaq of off the highs of 1.2%, a big pete's -- piece of this action, let's hop back into the bloomberg and look at apple. apple is once again down. this is a chart going back to premarket trading, earlier this morning down and right around 8:00, earlier after the market opened up at 1%, now down 3/10 of 1%. not a big loss, but down for the fifth day in a row. there is a real loss of confidence, similar to what we saw in 2015 and 2012. will it lead into the rest of the tech trade that happened yesterday? we will be watching that closely. and finally some big earnings movers, macy's is now trading higher up about half a person.
buying intors are that turnaround, even though the guidance may have been disappointing. highest estimate for net income, so a turnaround from the disappointing quarter, and look at canada goose holdings of 21%. there is an a percent shortage on this stock but they put up a solid quarter and raised a full-year view. >> thank you very much. look at what's happening over here, with the cabinet meeting in the uk's underway, we will be down at downing street shortly but let's take you to where the markets are. actually making games against the british pounds and the market is holding its breath on this. through theet cabinet, there is still parliament to go. 1%, pricesy 2/10 of are higher, and yields are lower, we will be talking to
someone who is a guilt specialist and we will get a take on where this is going. and the ftse 100 is up by 2/10 of 1%, we are seeing energy stocks on the move, and we are seeing this counter weighted moving in the opposite direction. continental europe, let's talk about that. it's flat and unchanged as we speak. we are seeing some interesting moves, and we are seeing sectors worth focusing on. is acting asthis the trump administration does not impose tariffs for that -- further tariffs. the dollar is trading up at 4/10 of 1%, we had that report we were talking about a couple minutes ago, it's up by 4/10 of 1% and italy is still in focus at the moment. yields a little higher once again today, this is with ofrn to brussels
the ball in its court. we will come back to that later on. some breaking news out of the central bank of mexico, the deputy central bank governor is resigning due to health issues. the deputy governor of the bank , accordingill resign to the central bank. the peso has been weakening and it is weaker now by 6/10 of 1% at 2036. greenspane u.s., alan still has an than say about the economy, he was on the david bloom and they'll show. >> -- david bloom and they'll show. >> we are tightening of the labor markets, and we will .inally see average wages rise
clearly there is no productivity behind it. >> we are joined now by nisha patel, let's talk inflation. do you see it? it was pretty tame at 1.6%. but thenk if used are main components of energy and housing you are seeing a mild uptick, nothing that's warranting a major tightening. the fed will stick through raising rates once more in december and they will say on path -- stay on path of raising and a few more times next year, what the market starts worrying about his does inflation stagnate from here? we will see energy pricing and housing pricing being volatile, but when it comes to core inflation do we see a major uptick? there is room to be cautious. enough. going to be
his inflation going to be a problem? alan greenspan says we don't have increase productivity and we are seeing inflation. >> we are moving towards that and the positive aspect is that we are seeing some wage growth and it's taken us a long time to get here. with tight labor markets we are getting to that point. things,ousing side of higher rates are more restrictive, mortgage rates are 1% higher over the last 12 months, the highest in eight years. it is that more restrictive going forward? that might be a worry. morning, nisha. on,ce going to speak later he shocked the market last time he made one of these speeches, talking about were the neutral rate and it being some way away from where we are now, do you think you will deliver a similar surprise? talkinganet yellen
about seeing three to four hikes in the next year. >> they are staying on the same mande, they do a mandate to -- they are on the same mandates, they are working on unemployment and we are at the lowest, inflation what that number being close to 2% and as long as those mandates are met i don't expect chairman powell's mandate to change. i think they will be on track for a hike next year. what the language might change to say is that they will be more cautious about any downward trend in any of the economic data, which is not much different than what we have seen before, but that is what the market is looking for going forward. >> one of the things we are hearing a lot about is infrastructure. most of this seems positive on that front. this could provide -- to the
economy. >> the good news is that with the democrats taking the house, republicans holding on to the house of representatives, the middle ground could be some sort of infrastructure plan. whether they come to the middle said, but yet to be we are fairly optimistic that there is some sort of plan that will go through to help municipalities. i think with tax rates being as no chanceey are, and for tax cuts, we are seeing tremendous opportunity in the municipal bond side with tax free rates at two point 7% tax-free which is a 4% tax-equivalent deal. >> are there any potential issues that could come down the pike? and where do you see particular value? >> during the election time we
had a record amount on the ballot, showing that state localities are optimistic on the economy and that the voters will vote for more infrastructure or kneeled -- or new deal structures. we had 30 to 35 billion that was voted. i think we will see more infrastructure deals in the pipeline, and if there's anything out of congress that's more supportive about a build america bond structure, we could see more going into 2019. i think with higher yield, we're seeing it being a very optimistic side. >> thank you. by the way that interview with alan greenspan could be seen tonight on the david rubenstein show. let's check in on first word news. >> british prime minister theresa may has a brexit deal,
now she gets her cabinet to go along with it. ,he ministers are meeting today and even to get through the cabinet it's not clear if parliament will approve it. she says the agreement will protect the economy and jobs and will still allow the u.k. to strike its own trade deals around the globe. in northern california one fire official warns that more than 100 people may have died in the deadliest wildfire ever. the death toll has climbed to 48 and 200 are still missing. the fire is 45% contained and has are destroyed 8800 buildings , mostly homes. and the fire ripping through malibu is describing as -- is described as 40% contained. in israel, blowback could threaten the survival of benjamin netanyahu's coalition. -- has quit, and israel could hold elections as soon as possible. strikeurged netanyahu to
a harsh blow against hamas after does the days of fighting. and the international energy agency has welcomed the oil markets return to surplus. opec has glue stick -- boosted global stockpiles. the monthly report says inventories in industrialized nations have increase for four state month and will likely exceed the pfizer average for the first time since march. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists in more than 120 countries. i'm kailey leinz, this is bloomberg. thank you very much, coming up, more on those brexit talks. it's the end game but wilton -- theresa may's cabinet back the agreement. this is bloomberg. ♪
>> breaking news on the usmca, another democrat out coming out -- democrat saying that you need changes. they say that it cannot pass congress as is. once again, the north american trade deal needs changes to pass congress. let's take a liquid look -- a quick look at the currencies involved, the canadian dollars trading weaker by a 10th of a iscent, and the mexican peso trading pretty weak and 24.9. and the deputy governor is resigning in mexico due to health issues. and theresa may's cabinet is meeting now to debate whether to support the brexit agreement. the real battle is getting it
through parliament, the labor lever -- leader says his party will oppose the deal. it breaches the prime minister's own red line and it does not deliver a strong economic deal to support jobs and industry, and we know they a scenario fored no deal. does the prime minister still intend to put a false chores to parliament between her botched deal or no deal? road where off the maria is joining us, the candidate's meeting as we speak, do we know how long the meeting will last? we are being told it could take another two hours. it has been underway for now are now, a total of three hours and orcould get news at 5:00 6:00 and it's unclear which way it is headed.
no one has said anything and we are keeping it very quiet. theresa may has made her pitch, and now she has to make a big concession, which involves in -- best -- the customs union, it was about cutting ties and making our own trade deals, but by doing this ireland -- >> there is some risk that we may see resignations, are there key names to watch out for in terms of the resignations yeah go -- resignations that could matter? we are here, but the one name that keeps coming up is the brexit secretary, that would be a big resignation.
but if you take a step back and look at this, you get minor names. if your member theresa may has already had multiple resignations -- if you remember, theresa may has already had multiple resignations. i would say the biggest name is the brexit secretary but the idea of the page on the table is that it has taken a year to get to this point and we have to make concessions but we have to be realistic. this is the best we could get if we don't want to crash out. we are hearing two brexiteers are in favor and two are on decided -- undecided. , inhis gets through cabinet the unlikely scenario would get through parliament, what is next? what does it look like? that is really the question
in focus. at this point, if the -- this gets clear, i think it's fair to say that she thinks it could be done through parliament, and if the cabinet could stomach this and the concessions that will have to be made you could argue there is a case of parliament will do the same. today, youet clear could see the choreography with getting the deal sealed with brussels and that would mean someone would have to out and and awill be a handshake special brexit summit for november would be called. the european union was cleared about this, we will not call the summit that it is clear that the deal will get done. if we get one i guess you could say the deal is almost within reach. member states like france are also waiting to see the objections, where are we seeing
hostility, given theresa may has in parliamentity and on the other side. we have really seen a european union and that has kept quiet, they know this is a domestic issue and a touchy subject in the u.k.. the don't want to do or say anything that could compromise theresa may, who is already a weak prime minister. that we have a technical deal, no one has seen the document. it's 1200 pages long, that's what we hear. it shows that the european union wants to get the deal done, and one thing we should keep in mind is that for the u.k. brexit is everything but for the e.u. it's one of many issues. 2019,s the election in there's incentive to get this done this year, it means you could put this to another side and focus on future relationships and on suspect -- subjects to keep an eye on, not
just brexit and the european union. --athan: wheel >> we will keep an eye out on that. thank you. in u.s. markets we are about 40 minutes into the trading section, dow jones is up to tens of 1%, the s&p 500 up a quarter of a percent, and the nasdaq is percent. of 1%'s -- the dollar index is trading just above 97 and weakening just a little bit. and a positive note for the euro , trading dollar -- stronger by 3/10 of 1%. this is bloomberg. ♪
we are looking at the credit impact on new york and virginia after amazon's hq to announcement -- hq2 announcement. perspective,ad what is the credit impact after this announcement about new york city and crystal city, near arlington, virginia? >> certainly an exciting announcement from those -- for those locations, from a credit perspective we are looking at the full and timely payment of debt. given the basis of those economies, incremental jobs are not game changers, those are very strong economies to begin with, so no rating impact. >> what about some pressure is on the local infrastructure, i'm thinking the subway system or real estate prices in seattle that has been a price -- a big issue. will that have an issue ticket -- issue? >> there could be localized
impacts in a credit perspective, we don't see a rating impact but we also don't see like -- feel like those john -- we don't see that those jobs are not absorb double are manageable. >> i want to switch to the midterms because we are still getting results trickling in. there were some cities and states that blocked the ability to raise taxes, or made it harder to raise taxes. what does that say about the environment and what credits were those? >> it's a trend that we are seeing, about six states had a tax cuts on the ballots, cointreau of them succeeded, the most significant was arizona which banned the ability to increase taxes on services, a growing area of the economy. you had supermajority requirements in florida. for us anything that limits your ability to control your budget is negative. >> and some voted for tax increases, did those go through? >> they were not as popular,
utah increase taxes to pay for medicaid expansion, but for general purposes they did not go through. >> wonderful, amazon in the midterm elections. you.ylor, thank still ahead, revenues and ratings, we will hear from the president of viacom, mtv, and logo groups. that's coming up. we are also keeping an eye on markets, they are struggling to find direction, but positive today. this is bloomberg. ♪
comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. vonnie: live from new york, i am vonnie quinn. guy: live from london, i am guy johnson. this is bloomberg markets. let's get the first word news update with kailey leinz.
kailey: theresa may is giving her cabinet a choice, backer brexit deal or quit. ministers are meeting about the discussion made in brussels. willold parliament that it protect the economy and jobs, but it isn't clear up there are enough lawmakers to ensure passage. they see the agreements will leave the u.k. tied to the eu. the french government is firing back at the by presidentts trump, suggesting he lacks "common decency by sending the 20s on the day when -- by sending them on a day when france was morning terrorist attacks." in northern california, the national guard will help search for big comes up the deadliest wildfire ever. at least 48 are killed and more missing. the fire is about 35 percent contained. meanwhile, near los angeles, a
fire that race through malibu described as 40% contained and has killed two people. and former federal reserve chairman warns inflation is starting to make its mark in the u.s. economy. he talked to david rubenstein for the latest episode of the show peer-to-peer conversation. >> i think we have begun to see the first signs of it. we are seeing it basically in the top part of the markets first, which are getting very tight now. we are finally going to see clearly,ages rise, and there is no productivity behind it. can watch all of that interview with alan greenspan tonight on the david rubenstein show at 9:00 p.m. new york time on bloomberg tv. globaglobal news 24 hours a day on-air, and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. see why.
now to the world in media, viacom is up 1.3%, reporting earnings later this week. viacom's mtvits is under chris mccarthy's leadership, posting revenue growth and higher ratings. we sat down with mccarthy earlier today, the president of mtv, logo, vh1, and cmt. >> our secret as we are leaning back into our strength. we have an incredible brand with 95% brand awareness, one of the of music upnries television history, and we have a creative culture that is one of the best in terms of storytelling. we leaned back into that about two years ago when i took over, and it really turned the ship around quickly. we reversed a five-year rating declining eight months, and today we are leading the industry in growth. vonnie: at what point do have real sway among the younger demographic?
i imagine you would save those coming out to elections and election cycles. what does mtv plan on doing to talk to the younger demographic? chris: we talked to them across every platform. we are number one in cable, digital, social, and up triple digits across every platform. election,o the actual we introduced a whole new campaign this past summer called plus one vote, and it goes into the idea of people celebrate things together. they are always connected, talking to each other, so we want to change the dynamic. instead of registering to vote, which everyone is doing, which do ofoncept everyone can bringing a friend to the point station with you. we are credited with driving a 20% increase with young people bringing people to the polls. do of bringing avonnie: you are puttig resources into mtv studios. you recently hired the head of the lego studios to be stocking
up. what do you plan on doing with them to be studios and different platforms? chris: young people are --suming platform on every content on every platform. we are the fastest growing in cable, the biggest social and digital platforms, and with them to be studios, we will be opening up our library and ep to create content for streaming partners and turning what were perceived competitors and to new customers. we just bought out real-world for a new generation, the first unscripted series, and we brought that out of the market and we are excited that we will be doing three new seasons all at the same time with our partners at facebook. vonnie: so licensing for streaming providers is the coming huge. how are you going to optimize partnerships with the likes of hulu, amazon prime?will you have partnerships with everybody?
chris: that is our goal, and we are talking to every streaming partner today with projects in active discussion and development. for us, it is all upside. you can grow one our cable platform, and the streaming platform provides us with a revenue opportunity, something that we missed a few years ago, we have this large library of ep, we are only tapping 5%. we have 95% ago. vonnie: which brings us to the discussion about the skinny bundle, do you envision being there in 10 years time? chris: i think the need for contents will not change. consumers are spending two thirds of their waking hours consuming content, up from one third 10 years ago. the need for content is never going to stop, but the need for great content is something we provide only do it in a unique and special way. today, we have 19 of the top 25 series, so we think that regardless of the platform and
are it goes, the need for content will not change. nobody does that like we do. vonnie: if we are going to get more contents, does quality come down? will he get more unscripted reality television series? chris: i have been in the industry for about 15 years. there is certainly an incredible amount of content, and the need to breakthrough is different. our skill as storytellers has changed. we need to reach inside the consumer and create that she man and unlock that passion point they did not know. for example, alabama sure, we use the shore ep, and it has nothing to do with this jersey shore ip, but we brought that in and now it is the biggest number three series of last year. we have been using though shore ip's to launch them around the world and seven around the globe. vonnie: does mtv eventually become a brand licensed out and that might also play under the regular bundle?
is that the future of a channel like mtv? chris: our future stays the same as today, to be a strong brand. awareness, anand incredible ip, and unique storytellers. i know it is different to think about television ip as to reiki, but ip -- as true i.t., but i 's platform agnostic. you see it happening in the film industry, whether black hand there, the avengers, the film industry has been reinventing and franchising that, and that is what is making them thrive. it is a new concept for the tv side but it is what is our strength. vh1, logo, and cmt president this mccarthy speaking with me earlier. guy: up next, we will be back to brexit. how does british business feelers approached the british parliament? how the markets are likely to react. john wraith will join us, next.
live from london, i am guy johnson. vonnie: from new york, i am vonnie quinn. this is bloomberg markets. guy: let's turn our attention to westminster as theresa may tries to convince her cabinet to support the brexit agreement, enter government is trying to win over british business. the five lobby groups met with government ministers this morning. let's get a market perspective and bring in john wraith, the head of u.k. economic and strategy. he joins us from ubs.
process,one step in a now, clearly all of the steps have to be made in order for reality. become nevertheless, we have a situation where you have a cabinet meeting to approve it and then the parliamentary session that has to approve it, as well. the eurosterling option volatility. you can see what has happened as of late. this will capture most of the events. this increasingly feels like a binary events. how is the market trying to price it? john: you have seen relief because getting this far was essential if we are going to get anywhere, but it does seem the way this has certainly come about may have occurred by the u.k. government making more strides towards these positions from where we were in october, and we will only know when we see the detail of the report. you can see by the reaction of parliamentarians in the u.k. that the chances of this, making it through parliament without a few serious inches, look slim.
i think that is why the market is taking it fairly cautious there. guy: just looking at how that feeds into other elements of the market, the broader market is taking this cautiously, if i take a look at where soanya is pricing the next rate hike from the bank of england, there is a circa 27% chance for a priced in around march next year i'm a critical break in the brexit process, how do i treat around a number like that? number is very low if we get one outcome and incredibly high if we get another outcome. how do i position myself? john: this is one of the issues u.k. market investors have. by march, by the middle of next year, we will either be in a much more certain place with time with the u.k. in transition and the economy doing better,
and the bank of england raising rates more rapidly than what is priced in, but of course, the downside is a real risk, as well, as in terms of this deal not making it through or fiscal ramifications in the u.k. and more widely. for our monday, the back end is cutting, so what is priced is that middle path. or what it is worth, we think any deal successfully been concluded is likely to come late in the process anyway because of this political stalemate in the u.k., therefore, we would expect the bank of england to wait for a few months after to make sure the u.k. has seen a rebound in demand, so we think the hike will happen before the earliest but if we get a successful transition, we think hike will come then. guy: given the binary nature of this process, is the only way to byde or protect yourself using the options market at the moment? i am hearing people talk about
struggles and strangles. if you think about a piece of paper, you are basically buying the two rings of that strangled to try and protect yourself. when you talk to clients, is this how they position themselves? john: depending on the nature of the client. fullyal money investors, invested, do not necessarily trade in those instruments. they stay close to their benchmark. they are not taking outright risks because the sort of logical assumption is the situation the u.k. is then now is not going to be the situation they are in in six months time. it is either going to be materially better from a risk perspective or worse, unless you are prepared to take a risk on which of those two outcomes it is going to be, the safest thing is to stay close to home, watched the fiscal developments, and take a decision as and when you feel confident enough to do so. vonnie: to what extent is the u.k. its own economic story right now? and to what extent is it still attached to the u.s. dollar, united states, the u.s. rates? john: at the moment, in terms of
economics, it is closely related. to onetry to put brexit side and look at the economic data, unemployment is at 4%. q3,th was on the quarter in inflation is a little above the bank of england's target. starting toon is accelerate. if you look at those fundamental economic indicators, there is lots to be confident about the u.k. the problem is when you bring brexit back into the equation and you look at forward-looking sentiment indicators, investment intentions, pmi's, forward-looking consumer confidence, for example, the picture is must let chat be -- is much less happy. investment is starting to slow down because companies do not know what they are investing into. that is where the difference lies. if we manage to get into transition for a period of time, i think the u.k. will breathe a sigh of relief, and the economy
will start to accelerate. the being, i'm afraid problems will come back around and 2020. vonnie: of course, it is shifting in the u.s., too, because we do not know what trade will look like without having the headache of brexit to deal with, so how does that rub off on britain, brexit or no brexit? john: whenever we are making forecast in the u.k., we are looking at what is going on in the larger global economies, as well. as far as the u.s., we think we are starting to see some data, and we4 think that will spill into q1 data next year, as well, primarily because the tariffs are starting to bite. in our view, a great hike is almost certain from the fed. we think they will pass on signs of next year in response to weakness, but we are confident u.s. recovery will stay on track the year and still help
fiscal stimulus and the fed will hike ultimately three times next year, which is more than they are priced in comics giving the hike in the first quarter because of the temporary weakness. sterling,we look at what is interesting is that risk reversals are still suggesting there could be some downse lling from here. it captures a lot of the event risk we are talking about here. that get a deal done, positioning is obviously wrong, and people have been talking sterling goes 1.40 on the cable rate or higher than that. at that point in time, the bank of england would be hiking. i am curious as to the narrative that it will be delivering. are we going to see real rates? we will see a downward trajectory on the inflation rate, will gilt yields move into the upside as we price in further the government rate rises? john: potentially. as soon as you get away from the front end inflation expectation
breakevens are reasonably immune from short turn changing expectations about the path of cpi, but all else equal, inflation will come down a bit faster. that will keep breakevens under control. you are right, we think the gilt yields will rise next year. and that will largely be a real yield story, which makes sense if you are talking about the relief rally in sterling assets, a bit of optimism, and a loss of safe haven demand, which you see emerge every time there is bad news and brexit developments, gilt yields tend to follow because domestic investors run for cover. that should go away for a time, but i keep issuing the caveat that want to get into 2020, there will be a groundhog day. we will have more serious problems in negotiations about
live from london, i am guy johnson. vonnie: in new york, i am vonnie quinn. this is bloomberg markets. guy: time for futures in focus. oil is climbing, haven't seen that for a while. if the trend holds, crude will break a record 12 day losing streak. its selfr vortex makes felt. we are joined now to talk about what is happening in the markets. markets --ith the these are whippy markets, our people getting carried out for
margin calls? a significanteen upswing in margin calls. if you look at volatility in the market, it has exploded. you can track volatility options to see how that is going. if you look at the movement to natural gas, overnight, it was a range, with the margin requirements of being 2500 to $3000. it is far exceeding what an oracle -- what normal market conditions would justify. toterday, it was only $5,000 $6,000, so we have argued exceeded the margin to what the price movement is. guy: are people talking about oil finding a base? phil: we have been down 12 straight days. two weeks ago, we were up at multiyear highs, so i think before dollar moves we saw was a result of a lot of margin calls .hat tend to have a washout
traders tend to act irrationally as we see these volatile movements, so a recovery is in the cards, i think. we should see producers way in. it -- weigh-in. brd have them near the record high. demand has been lacking from china, and you can see china slowing down. there was a miss on the retail numbers this morning but i think oil prices should start to recover up to $65 over the longer term. will, too --reet phil, thank you for joining us from trjo. vonnie: today, as the u.s. is said to be holding off on q.v. on foreign cars, we are joined by our auto reporter. it is really for bmw to one extent. can the m w no caps on no tariff
s or reduced tariffs? >> that is anyone's guess at you point i suppose, but are completely right, there has been a site of a relief, not just across, but if you consider about 350,000 cars out of the u.s., 70% of those are imported from europe. iss extension of the truth quite good news. one thing important to remember, this is just another step in the long-standing probes and has been going on since made by the u.s. department of commerce, and the secretary wilbur ross will be reporting of february on his findings on whether to import tariffs on european carmakers. the tariffsot just but the mission issues, as well.
we have seen that in the data coming through that is affecting the business is. it is open season on european sector right now. how easy is it to manage their businesses? what are they trying to do to deal with this uncertainty of volatility? elisabeth: you are right. it is multiple pressures for these companies. already they are dealing with the cost of electric cars that to recordd budgets levels, and now you have significant trade issues and a couple of more short-term issues and type two in the since testing in europe. -- tied to emission testing in europe. it is then trying to gain more which theymeasures, have been doing for a long time, but also, a lot of outputting more emphasis on trying to find more cooperations, more deals to
try and bring back those costs and which work together better. vonnie: thanks to european on the reporter elisabeth behrmann in munich. guy: let's take you back down to downing street to show you what is going on. a are awaiting the outcome of cabinet meeting taking place now. the duration of the said cabinet meeting is difficult to determine. some say it could be a four hour or five-hour meeting. we will be talking about brexit throughout the program, certainly affecting markets today. downing street, we will be back there soon and checking in on the market action. that is next. this is bloomberg. ♪
guy: europe the top stories we are covering from the bloomberg and around the world. the british cabinet is meeting now to discuss the brexit deal -- to decide on the brexit street. we are live at downing street. we will show which managers were long been wrong on everything from tech to oil ahead of the october selloff. and the fed chairman speaks later today after u.s. cpi data offers mixed signals on the direction of inflation. sits talk about where we with the markets now. the cabinet meeting is underway in westminster. let's look at where the sterling trades are. we have eurosterling just turning around a little. ago,we checked in one hour we saw