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tv   Bloomberg Markets Americas  Bloomberg  November 16, 2018 10:00am-11:00am EST

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vonnie: here are the top stories we are covering. slide asuity markets investors assess whether the trade were between the u.s. and china will intensify before the g20. and we will hear from was young. -- liz young. theresa may standing her ground as a push to oust her grows and one prime minister concerns he is not resigning. mexico's chief negotiator for the u.s. discusses whether the trade pacts will pass the u.s. congress. that and much more, but first we would check the markets. markets.mixed earlier committees and declines for the major averages. right now, the dow trying to
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flip a positive. nasdaq down modestly. and the tech heavy nasdaq is down 4/10 of 1%, earlier down 1.2%. investors trying to come off the bottom after the rebound rally yesterday from losses we had earlier in the week. the major averages lower for the first time in three weeks. and the real source of pain on the day, the chip index. take a look at the philadelphia semiconductor index, down 2.2%, underperforming and a lack of movers. and the big culprit is in video. take a look at nvidia -- the pledge is down 15%, and on paper the worst day since 2008. this after the chip company, even with this loss, up 450% on a three-year basis. priced to perfection. missed estimates for the third quarter on waning cryptocurrency demands, and a supply glut for graphing chips.
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so investors getting out of those a-shares. -- those shares. that did have ably through affect into the faang. we still have losses, but not as big as before. facebook, amazon and netflix all lower. facebook the big decliner here, perhaps after the new york times article yesterday on sheryl sandberg and of the idea she was not as forthcoming around the influence of the russia campaign on the social media network. and facebook could be one reason, the big reason this complex has put in a bearish technical event. going into the bloomberg, take a look at this. this is a longer-term chart. and over 2017, we see a beautiful uptrend with facebook above moving averages, telling you that the buyers are in control, no storms ahead. but this year we have volatility. and more recently, the 50 day moving average going below the 200 day moving average, telling you that there is an air pocket of buyers.
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the sellers pushing it down. and bearish level lows. it is showing in the stocks. so this chart of the faang complex pretty bearish, and it suggests there could be more selling action ahead as the year progresses. it will be interesting to keep checking that out. guy: absolutely. some good technical analysis. let's talk about where we are with the european markets. a number of different things. 3/10 today. remember yesterday we finished flat. today is looking similar to be brutally honest. all the action is in the foreign exchange markets. and take a look at what has happened with the sterling-euro rate, absolutely flat. holding pattern it seems with many european assets as we try to gain clarity on what is happening with the brexit debate. and i have used euro-sterling
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here, because if you look at the cable rate, you have to factor in comments. get stripped those out to an idea of where sterling is today. and the german ten-year yield, very stable, but it just in comments coming through a little bit earlier on. boss of the bundesbank indicating he thinks the balance sheet will go back to where it was precrisis. that is not the track the fed is on right now. euro-dollar up 6/10 of 1%. and those comments were very interesting. more from mario draghi today as well, speaking earlier on. a little bit of caution as we get -- go forward from mario draghi. the brente a look at rallying, but down on the week. we will get more on what is happening in the crude complex a little bit later on. back to you. vonnie: sterling recovering a little after yesterday's the
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brexit induced to drop. british stocks down right now. for a street take on how it is impacting the markets, we will bring in liz young from biy mellon. the of external risks to market, but just on brexit we spent a lot of time yesterday following how many letters were being put in, whether theresa may would survive. how much does this impact the decisions at the market -- at the margins? liz: everything pricing in the market will be very no deal brexit. what we saw yesterday was that it stayed pretty isolated to the u.k. and some european markets, not even hitting the european markets as badly as the u.k. as we move forward, until the market figures out what this will look like, there will continue to be volatility. if you want to take short-term positions, if you are pricing in the probability of no deal, sure the pound. if you are pricing in the probability of a deal, long the
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pound. if you are skittish and you do not want to stomach the volatility until the end of the year, you might want to take some of the u.k. risk off of the table in equities. vonnie: interesting on currencies, there was a note this morning asking if the euro was underpricing the risk of it all, has your outlook changed? liz: that is a different animal and a lot of different forces will affect of the euro. if we talk about the pound again, quickly going into that, if we end up with a new deal situation what we expect is it will increase trading costs for the u.k., with the eu. but the pound should depreciate enough to offset the cost, so it will not be as detrimental as markets expected to be right now. and with the eu, there is a lot of different ways that consumers and trading partners can substitute different things through a trade agreement. and offset some of that pressure, as well. the whole of the european region
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right now is facing a number of different concerns. you have italy weighing on the markets, you have germany that had a negative quarter over quarter number, soy a lot of other factors going into pressure on the euro right now and i would not expected to let up anytime soon. guy: using the dollar is going to go higher? liz: in 2019, we expect at least for the first 3-6 months to see continued strength in the dollar, or at least to hold. depending on what happens with the fed, if the fed reacts the markets differently than it has a so far, and we have seen some small indications of that, you might see a little bit of a change. but at this point it is a safe haven currency with fewer risks. everybody is pretty long with the u.s. dollar right now. and you kind of wonder whether or not that flow can be sustained, particularly that of asia as well. morgan stanley saying we have reached a peak.
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goldman sachs getting close. when do you think the peak in the dollar will come? you talk about the first three months of next year . is 2019 the year that we will see the dollar peaking out? liz: it could be. my crystal ball does not work past the six months, so what we are watching right now is the fed movement. and what the market has priced in is that december rate hike, i still expect that to happen even though jerome powell has indicated a concern over global growth and maybe we will see him watch the market movements more closely, but at this point if he does not raise rates in december i think the market would interpret that negatively and as indication that there is risk going on that they know about that we do not know about. so i think we will see a hike in december. where it becomes more of a question is march and june of next year. remember, the fed can hold a press conference at every single meeting, so more opportunity to change their messaging and to message to the markets they will
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change pace. guy: at the moment, the market is pricing in for the fed next year one hike. we are verging on two. take a look at the numbers, it is kind of like one and a bit. the fed is looking at three for next year. who will end up being right, because rich spoke earlier on and he does not see inflation being a problem next year. liz: i will start with the inflation question. we see inflation rising gradually, but not spiking or becoming a problem for the market. and we think that the economy can absorb some of that slowly rising inflation. now, if we get a spike in inflation, that could come from a number different of directions, wage growth, which we had a higher reading on recently, and they could come from higher input costs or companies passing that through to consumers. if we see a spike the market is not expecting, you might see the fed get closer to that two or three hikes number. at this point, and if i base case holds true, which we think
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inflation is a slowly rising and the economy absorbs it, i would be surprised to see them get to three hikes. one is probably fair. somewhere between 1-2 is more likely. and what we want to see jerome powell do is, if we have another prolonged correction, like another october in the markets in 2019 or going through the end of 2018, what people want to see him do is say, ok, let's watch that. let's figure out what is putting the pressure on markets, and maybe we pull back a little bit or wait it out. vonnie: i know your crystal ball does not work past six months, but what is your greatest fear for the end of 2019, given we have some clarity on various things by then? liz: the topic of conversation has been brexit, but the biggest risk is trade and it continues to be trade. it is never a good thing for the two largest economies in the world to be in a trade war with each other, so some of the expectations, which at this
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point continue to only be lipservice, that china and the u.s. might come to an agreement -- if we get an agreement by the end of 2018, that will be a nice rally in the markets because it will remove a risk from the table. the adjusting thing about 2019 compared to 2018 is i think the positivity will come from removing risk from the market, rather than adding tailwinds. in 2018 we had a lot of tailwinds. in 2019 it will be about taking the uncertainty off the table, and as little bit of uncertainty -- whether it is trade, brexit, fed and the rates -- as those come off the table, markets will hold up a little better. vonnie: liz young, a lot of answers to those by then. we will see you again. now the bloomberg first word news. kailey: the u.s. justice department has inadvertently revealed prosecutors have chaired -- have charged julian assange. his name appeared in a court
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filing on an unrelated case. it is not clear what charges he faces. he has embarrassed the u.s. government with disclosures of classified information and has been staying in the ecuadorian embassy in london for more than six years. and the trump administration chinaraising tariffs by -- on china in january. wilbur ross says that xi and trump will agree to only a framework for further talks when they meet this month. the two countries are discussing the agenda for the leaders meeting at the g20 summit. and in northern california, the death toll keeps rising in the deadliest wildfires in the state ever. at least 63 people have been killed, and the list of missing has reached 631. meanwhile, survivors have questioned the warning system. some say by the time they were alerted, the flames were already close. others say they got no warning at all. and an auction record for a
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living artist. portrait of an artist with two figures with for more than $90 million last night. the previous record was $58 million for a painting by jeff coots. global news 24 hours a day, online and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm kailey leinz. this is bloomberg. ♪ thank you. coming up, theresa may fighting on. she denies reports that the government will collapse until she quits, saying she will stay at her post as a pro brexit cabinet member decides not to resign. there it is. this is bloomberg. ♪
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guy: from london i'm guy , johnson. vonnie: from new york, i'm vonnie quinn. welcome to "bloomberg markets." guy: let's talk about brexit, the subject today as was yesterday. theresa may is fighting for her political life. and the markets are hanging in limbo. e chairman spoke about the impact of brexit, and the impact it could have an european banks. this at a panel in frankfurt. >> more then we know. brexit, i do not know. nobody knows. and even the british do not know. uh, so the only solution is to work on options, stand ready, be ready to serve the clients whatever happens, and to be strong and resilient. guy: nobody knows.
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let's try to get a take on how brussels is dealing with all of this. maria is joining us from brussels. maria, the turbulence of the last 24 hours, how is it being greeted in the building behind you and elsewhere in brussels? they have probably spent the last 24 hours scratching their heads. maria: they have. and for lack of a better word i would say that brussels is on deathwatch. they quantity of theresa may can stay in the government, stay in power and survive another day. on the record, everybody has gone quiet. nobody wants to say or do anything that could make an already weak prime minister even weaker. the -- tell us that working with ambassadors today has said it is a difficult situation, but everybody should take note that theresa may has been very brave and it takes a
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lot of courage to pull the deal like the one she has. the problem for theresa may is the more that the eu -- this deal, the more that she has a harder time selling it back home. areie: more than 20 tories demanding a no-confidence vote. it would take 48. but i am curious on brussels thoughts on the summit, is it still going ahead as of now? maria: that summit was called in printable to seal the deal, that was the way that brussels thought it would go. on paper, they say it will go on. the big question is whether theresa may will be able to attend. and there are some reasons for this. the eu thinks this is a way to keep the pressure going on the u.k., and if it does not work out we have heard they will use this to talk about a no deal brexit summit instead. so a lot will depend on what goes on in london, but the goal is to keep on the pressure.
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it is unclear what will happen next sunday. the european union thinks this is the best way to go forward. it is still on the table and they have not called it off yet. guy: any sense in brussels, and in other european capitals, that maybe the eu pushed the u.k. too hard? is a sense of that and you could argue that the deal, the way it was done, you could interpret it as being on the eu's terms. the european union would tell you that the balance of power nd this was always going to be a deal done under the eu's terms, because it is the u.k. leaving. the concern is the way the u.k. voters are interpreting this and the risk is that -- will throw it off. the idea is that there is still time to get an improved deal, but this is not flying in brussels. they argue that it is 600 pages,
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take a long time to get to this point, and the tenants of the deal will not be changed. so the idea of negotiating a better deal from brussels is frankly not credible. maria outsideyou, of the european commission in brussels. still ahead, some guests ahead this hour. the mexican chief negotiator for the new u.s. trade deal will join us. and also joey levin will discuss expansion plans for iac and much, much more. this is bloomberg. ♪
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guy: from london i'm guy , johnson. vonnie: i'm vonnie quinn. and from new york, it is time for etf friday. junk-bond etf's today. big swings this week. talk to us about the flows,
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swings, where they went and where they came from. >> if you are looking at fixed income etf's, big in the market right now, we have seen some wild swings in junk-bond. near record flows in and out. a a lot of things going on. in october, $4.1 billion left high-yield etf's. and basically neutral in november. but right now over all, we have seen a kind of money leaving fixed income. ultrashort and short-term duration have seen almost $8 billion of inflows since october. and all this volatility in what is going on with flows is likely due some some things like the fed raising rates, we have seen them go from under 310 in the last week, so a lot of confusion going on in the markets. yj, ither thing to note, h is at its highest short interest rate yield. a lot of people on both sides of the trade and a lot of volume
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going on. guy: talk about the energy trade. one of the factors that has driven back the 10 year low, the fact energy has come under a little bit of pressure as it has come down -- when you take a look at junk-bond etf's, what is the exposure within those structures looking like to the it is space, and if substantial is that something to worry about? james: if you look at the most liquid, most traded high-yield etf, it has seen in and see -- energy go from 10% to 50% in the last few years. and one thing going on right now is a lot of energy high-yield debt is sitting at the crossover between high-yield in investment grade, so triple b and double be. and as the oil rates fall, they are more likely to be downgraded depending on how the companies are hedged. but it may not be a bad thing. we have a bunch of etf's that
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have high exposure to oil, and the last time we saw a huge fall in oil was late 2015 and in 2016 a lot of these severely outperformed, versus over all the broader based hyg. so if you think oil is going to go flat or stop falling, or even rise, smother etf's might be a better choice. vonnie: exactly, if you do want exposure to junk etf's, but you would rather not have exposure to the energy complex, what is on offer? >> hyxe, it is the high-yield sector of x energy. i-shares lost this after -- launched this in 2015 and 2016. it was right at the bottom of oil, a time that way nobody would use it, but now is the time for it to shine. and it is indicative of a what happens in the etf world, there are always big movements in trade and worry about -- and
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some people worry about the exposure to energy. but by the time it launches, it is even pass the time for that trade to work. guy: great stuff. james, thank you for spending time with us. a bit of breaking news. vonnie: cnn has won the court order restoring jim acosta's access to the white house. he will get back his access to the white house. cnn winning a court order to restore that. bloomberg lp was one of several news organizations that filed a friend of court brief in favor of cnn. this is bloomberg. ♪
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guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." breaking news, a judge has
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ordered the white house to immediately restored cnn white house correspondent jim acosta's access to the white house. a federal judge once again has said that the president must restore white house access to cnn reporter jim acosta, at least for now. this is pending a further hearing. it comes amid the president's escalating feud with the media, more specifically cnn. other networks have rallied around cnn in defense of the first amendment right to cover the presidents, including fox news and also bloomberg news, which filed a friend of court briefing in the matter. guy? guy: let's talk a bit about what is happening right now. over the last 24 hours, we have been focused on u.k. assets surrounding the brexit story. let's show you where we are as we come toward the close of play this friday. the ftse 100 is down. and in many ways we saw
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yesterday as being at a headline level, the ftse 100 with a nonevent. a similar theme today. the market is finishing fairly flat, but within it we have significant turbulence as the market continues to be on edge with what is happening with the brexit story. and i have put the eurosterling there because i want to strip out comments from the fed, because it had an impact on the dollar, as we had seen earlier on in the program. strip that out and you can use euro sterling. and today in the german ten-year, despite some interesting comments from the boss of the biggest bank, we will talk about those later on. a wide operates funds in brady of online businesses that engage customers around the world, helping them with everything from home repair to dating. let's get more on this story. erik schatzker has more. erik: i am here with joey levin,
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the ceo of iac. thank you for coming. joey: thank you. erik: i will begin by asking you the same question i have asked before, because it has not gone away, but i will ask it in a form or provocative way -- what is it like to run a $15.5 billion tracking stock? joey: i do not think of it as a tracking stock. we just had the leadership of all the other iac businesses altogether in los angeles for the last couple days, and it feels more like a company more than a tracking stock. erik: i am joking, but we will put up a chart to help illustrate the point and come back to the question -- a question that is an important one for shareholders, which is the valuation gap. if you look at the performance of home services, match, iac, you are in line. but everything else is basically trading at zero. joey: less than zero.
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i have not looked in the last few days, it might be -$4 billion. it is odd, it is something that happens with multi-business businesses, which is true of iac, but i think it is something that will work itself out over time. there are a number of ways to work it out, the best way is to deliver consistent results, deliver consistent themes, but there is also ways you can move around structures to also help take advantage of those situations. erik: let's talk about that. i was about to say it is a high-class problem to have, but what kinds of moves around the structures might you make to help some of this go away? joey: we are not looking at moves like that all of the time. we are not actively looking at any of those moves right now. but we have historically created a number of independent companies, and that is something
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that we consider record early. new companies, things like that. erik: do you think you are closer to that decision now? and you are talking about a spin off of match or -- joey: no, i do not think we are closer to it. those are options in a basket of things we can consider, but there are other options, too. iac aree reasons to own manifold, but they include at the very least, as opposed to match or angie, you get the other businesses and a pile of cash effectively for nothing. but also because of your ability whichc's track record, delivered before you as a capital allocator. the idea you will do something clever with all of that cash, which is approaching $2 billion. joey: first of all, very -- barry is still around, very much
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so, but we think of that as very much our job. and we have outperformed the market. tolook at this, since barry control the company, he outperformed the market by a pretty wide margin. but we also look at that at any period and we say it was not just the early years, over the look at thatrs we and we view our ability to allocate capital as a key feature of investing with iac. erik: the big deals have been consolidation plays, augmenting augmentingexample, home advisor and turning it into angie home services, but you have not entered a new space, or any substantial way at least, so how come? joey: we always think businesses that were always -- that were already in our aide, we can be smarter with that capital
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that we are in. when we are looking at a dating business, we can be the smartest people looking at that business because we know them inside and d the same at home services. that will ticket priority with capital. but when we are looking at those things, new opportunities can emerge. angie home services emerged from what was service magic, which came from something else, which was city service. on a conference call that there is plenty of capacity on the balance sheet. if you were to include potential debt issuance and you were to dream, how much firepower could you bring to a deal, how many billions of dollars? joey: we ask the question and it is multibillion. it is something that is digestible. erik: as in 2 or 5? joey: closer to the latter.
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erik: how close have you come, in all the times that we have talked -- so going back several years -- do doing a deal of that size? joey: really, actually only once. this was a few years ago. but -- that was relatively close, but not all the way there. and is something we will consider beggarly, but it is -- regularly, but it has to be a very high conviction. erik: everything you are in touch as the internet in one way, shape or form. any lessons for you or iac in what the internet giant's have been facing lately, the backlashf rom users -- from users, the scrutiny, the challenges posed by government? i'm thinking of facebook, but we can throw apple and amazon into that basket as well. joey: i think we are seeing
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consumers understanding in a way that they did not previously, and the world understanding in a way they did not previously, the price to value exchange that has happened with data. and that is a very valid exchange. if you are talking about uber, i want to share my location so i do not have to punch it in every time i get a car, but is more data is being exchange for less value, that is when things get uncomfortable. a lot of our businesses are subsection businesses. you pay -- subsection businesses. you pay x and get y. that is easily understood. erik: we have talked about in apple andabout what others extract from your business. in apple's case, 30% if you are going through an app. do you see a viable antitrust case against -- people are talking about this -- against
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google, or facebook, apple or amazon? are they getting too big? joey: it seems odd the price that they are charging and the amount of the price relative to other payment alternatives. if you look at credit card processing, it is in the 1%, 2% or 3% range, and this is in the 30% range, and two of them have a significant part of the market. erik: you are basically saying monopoly power. joey: i will leave it to the judges to make those decisions, but i think it is a big tax on internet companies, yeah. erik: i want to thank you for being here. joey: i appreciate it. vonnie: that is joey levin, the ceo of iac. if you look at the stock chart, it is pretty remarkable. vonnie: erik schatzker, thank you. still ahead, lessons learned. the me negotiator of nafta and
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the usmca deal ways in on -- wi eighs in on politics. that is next. this is bloomberg. ♪
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guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." guy: now first word news. kailey: is victory for cnn. a federal judge has ordered the trump administration to immediately give jim acosta's his press credentials back. the white house revoked them after he had a conversation with the president at a news conference. bloomberg lp was one of
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several renovations that filed a brief in favor of cnn. and sanctions may have cut 6% of russia's economy over the past four years. a study found that the economy is almost 10% smaller compared with what might have been expected at the end of 2013. that is when the crimea crisis triggered sanctions by the u.s. and eu. some of it falls on the swamps -- slump of oil prices, but sanctions are the bigger culprit. and thousands of refugees have returned home to syria in recent months. a defense ministry official in russia said thousands were turned in just the last week. officials have been encouraging refugees to returned, saying the violence hasn't subsided, but russian governments -- has subsided, thbut other governments fear they are in danger. and week information-technology
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security could endanger -- and they found material in somewhere houses. global news 24 hours a day, online and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm kailey leinz. this is bloomberg. guy: thank you. let's take a look at the stock of the hour, shares in the british pharmaceutical company astrazeneca falling today. down over 2%. this after a key cancer treatment showed no advantage over standard chemotherapy. it was a combination of two drugs being put together. joining us is john, who covers the stock. john, how significant a blow is this? this was a drug trial that put a new drug together with an older healthith the hope to
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small cell lung cancer. >> the most common type. guy: that it would show benefits, but it hasn't. >> this was not an unexpected story. these drugs protested the original results -- t earlyhe -- the early analysis came out last year. shares fell 50%. and -- 15%. and it was a significant tumble that day. they still held out hope that final results would show benefits, but what usually happens is when the, wind early indicatere that may the drug is not going to work. and that is what happened. it did not help with the overall survival. there was hope that it would extend the patients' lives, but it did not do it. guy: it is still being used for early-stage lung cancer treatment when it is operable,
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but we are talking about the late stages here. are we using this combination, is it being put into combination with other things? where are the opportunities with this drug? >> they look at it as the cornerstone of their franchise, their lung cancer franchise going forward. they will look at other applications. there are a lot of different ways to use drugs in early cancers, in combination with chemotherapy, in combination with other drugs, and that is what they are going to do. vonnie: what about investors' doubts? what are they seeking generally? >> well, on this particular matter i think, you know, they saw very early on that this drug was not going to work in lung cancer. and it was not unexpected at all. this was -- this was a pretty well-known phenomenon, if a drug
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does not work -- well, occasionally there are exceptions. vonnie: what will they tell investors about in order to sort of get the momentum going again? john: the pipeline for them is looking pretty rosy right now. i think it is recognized as one of the best growth stocks among large drugmakers. and they have a battery of other drugs that are out there, one their top-selling in the years to come. and they have an asthma drug that is doing well. several other drugs that seem to be panning out well for them. vonnie: ok, thank you john. astrazeneca, which is falling today. from new york, this is bloomberg. ♪
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guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." trade is never far from the investor spotlight these days, as lingering trade tensions with china of course and legislatures in the u.s., mexico and canada still have to pass the new usmca agreement. it is expected to be formally signed later this month. we are joined now by kenneth smith ramos, new mexico's lead negotiator for the new trade pact. he is joining us from miami. explain to us how this deal is better than nafta, if you believe it is. kenneth: thank you. it is a pleasure to be with you. -- werewhere able to publish is free trade, free trade across all sectors in mexico and the u.s., also with canada. and we were able to modernize the agreement by introducing new discipline essential to today's
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world economy like telecommunications, good regulatory practices, mechanisms to help small, medium enterprises nationalize and take advantage of the trade agreement. and in addition to modernizing the agreement, we were able to strengthen the mechanisms for dispute settlement. so i think we have a state-of-the-art agreement that will be a model for years to come, both at the wto and other international trade negotiations. vonnie: that is all very positive, but does it make mexico too dependent on the united states? kenneth: no, as a matter of fact as we were negotiating mexico was engaged in an ambitious program of trade diversification. we modernized in agreement with the european union. we ratify the transpacific agreement and we also consolidated ou relationship withr south america, and we are actively negotiating with brazil and argentina.
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80% of our trade is concentrated within north america, but we are very ambitiously pursuing a program to diversify our trade, so that is a positive for our country into hope we will continue to do so in the future. the do you worry that midterm elections in the united states and the democrats taking the house may make it harder for the transaction to go through north of the border? do you were u.s. politics could get in the way? kenneth: we are aware that the house of representatives is now under democratic majority. we will be following the process as it goes forward, but we do not believe it is something that could eventually have a negative impact on the agreement. we understand the case in everyone of the nafta countries that the legislative powers will have the final word, but many of are pursuedves that by the democratic party in the
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u.s. in terms of trade policy have been introduced into the new nafta, the usmca. we strengthened labor provisions, we made them subject to dispute settlement mechanisms, we have offer protections of migrant workers, combating -- in in the workplace and we have a student of the art agreement -- and we have a state of the art agreement on many policies the democratic party have been concerned with. and we think it is a strong agreement that can be ratified in all three countries. guy: a look around the world and i cannot help but think we have reached peak globalization. you are a trade negotiator, do you believe that as well, because if so your life will get more difficult from here? kenneth: i think that worldwide all trade negotiators need to face the fact that we need to continue working on building consensus on the benefits of free trade. without a doubt, the situation that we saw in brexit, the u.s. election, governments in eastern
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europe and other places coming into power with a different view regarding the impact of globalization. we canw in mexico is continue presenting our country as a country that is open to the world, an open economy that has evolved over many years in creating wealth and benefits for a population, based on free trade and domestic reform. so we do believe that it is a different world environment and we need to continue to convince people on the benefits of a free trade. an example of getting the usmca, where we were at the beginning of the negotiation, where it was looking like we would not have a nafta anymore and where we are now is a positive outcome and it will help other trade negotiations throughout the world. guy: thank you for taking the time to join us, kenneth smith ramos, lead negotiator of nafta and the usmca from mexico. futures in focus. gas with its largest weekly climb since 2014 as snow hits
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the eastern united states. we go now to the cme. you had to broaden out circuit breakers yesterday to deal with the movements yesterday in the market, how tough a week has it been? have people been tapped on the shoulder? are people still standing? >> it is an example of there is always price shock potential in the physical commodities. look at a frost with orange juice, natural gas in the wintertime. when you have people who are short and there is an existential event, then there is no exit, so that is what causes the big bounces. but by lifting the limits you are able to bring the price back to equilibrium and let the buyers and sellers do what they wish. important to me right now is four, that was the breakout area. natural gas traded between 2-4
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since 2014 and we broke out of the four, but right now it has come back down. buy the rumor and a sell the fact. now let's see what happens. remember, it is only november. guy: interesting to see what is happening. thank you. vonnie? vonnie: mixed u.s. stocks right now. dow jones industrial average up a third of 1%, s&p 500 up to 10 sub 1%, and pg&e is up almost 40%. regulators cannot imagine it will go bankrupt. this is bloomberg. ♪
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guy: 30 minutes left in the european trading day. from london, i'm guy johnson. vonnie: i'm vonnie quinn. this is the european close on bloomberg markets.
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guy: here are the top stories we are covering from the bloomberg and around the world. the brexit battle rages on, however, what direction it takes remains unclear. the pound is higher against the dollar but not enough to unwind yesterday's drop. dovish central banks. the ecb president mario draghi and the fed vice chair richard clarida giving cautious economic assessments. has the q4 outlook market looking at a slowdown in tech demand. go to the european markets. 30 minutes to go until the close. again, its flat once was at this time yesterday. internally we see pressure on the banks and utilities.

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