tv Bloomberg Markets European Close Bloomberg February 6, 2019 11:00am-12:01pm EST
guy: 30 minutes left in the european trading day. from london, i am guy johnson. .onnie: i am vonnie quinn this is the european close on bloomberg markets. guy: the german dax trading down today. factory orders really terrible. the data not good from germany right now. the year on year number is a dramatic drop-off. it fits with the data series we are getting out of germany. bondy speculative 30 year sold today. we will talk about that in a moment, with mark nash. italy out into the market. massive, big takedown of this. it has a portfolio effect into the secondary market, as you can see. we are seeing yields rising at the back end of the italian curve, but as i say we will talk more about that in a moment. central banks performing a series of you turns around the world.
we have already had the fed. there are others. we have the australians joining the party. a speech overnight livered by governor low from the rba -- he took the rba in being more neutral. much more patient, one might argue. you can see the effect into the aussie overnight. just trillion dollar trading down by 1.4%. australian dollar trading down by 1.4%. muche: over here, not movement in markets. the state of the union did not have an immediate effect, positive or negative. but we are still in peak earnings season, and the game makers are having an interesting day. why? "fornite." take two interactive down almost 11%. takes one gamet for these companies to be massive moves.
when it comes to skyworks solutions, that story is interesting. it is all about broadband and 5g , with a price target upgrade, and an upgrade of rating at goldman sachs. we see that is causing a 12% hike. in the dow, which is also negative, but only barely, we are seeing positive movement from some of the bigger industrials. guy: we mentioned a moment ago italy has issued long-dated bonds today. it is a syndicated bond market offering, a third-year tranche. a really cheeky push into the market after it delivered a similar deal just three weeks ago. let's talk now to one of those that was involved in that. mark nash, head of global bonds at marion global investors. i talk aboutbut this being a cheeky sort of issuance. it really was. it came out of left field. isn't that a little disturbing? mark: absolutely.
we were a little concerned about the timing of this issuance. it was a complete surprise to everyone. there is a little desperation on italy about packing the market when they can. but it was good to see again another huge book. orders go in. they issued around 8 billion on the back of that. it has gone down with investors. they need yield in europe and are buying sovereign bonds as they come. guy: why italy? they are buying peripheral bonds right now, but italy seems to come with more risk than most. it is a big, liquid market. maybe that is the reason behind what we are seeing, but nevertheless -- potentially a commissioner done reading growth forecasts tomorrow. there are things on the radar when it comes to italy risk. why such strong demand for italy? mark: things have got better with italy. we saw volatility last year, but they have remained with the e.u. commission, have come out with the more conservative budget deficit forecast, 2.1% next
year. i think investors are going, yes, italy is suffering in growth, but because the ecb are on the floor for a lot of time, this yield is attractive. are a dollar investor and you hedge it, you get 5% to 6% owning italian bonds. vonnie: whether the continued demand -- will italy meet that demand? mark: absolutely. italy has to do around 250 billion euros of issuance this year. what we hope, going forward, is that they are predictable and do not suppress the markets too much with their issuance. as things stand, bonds are in demand by investors in europe. taken prettyn well. watching growth numbers in europe, we are relatively positive on european growth going forward. the data has been terrible. we think it is going to pick up going forward. it should -- sovereign debt should do ok. vonnie: i will press you on your
reasons for your thinking going forward, and ask you, will the capital raise the italian government is doing be enough to still grow that economy? mark: in terms of the global economy, there are two important things. one is what the fed has done in terms of their you term. -- ut-run. the fed -- their u-turn. the fed did a lot of damage last year. they said they will use their balance sheet if need be. they did not like the volatility. they have in essence backtracked. it is not just about the fed. that is clearly supported. it is also china. we need to see a trade deal come through. also, with the dollar coming off the boil a little bit, we do not see a lot more easing from china going forward. they can, because they do not have to worry about the currency. if china ramps of growth am europe is stuck between the u.s. and china. we do need to see progress on the trade negotiations.
guy: what is spooking global central banks right now? the data is bad, but not that bad. quite a surprising speech from australia last night. mark: the central banks obviously have an inflation and growth mandate, for the most part. we see now the growth risk being the leveltened, with of inflation going on. that includes the federal reserve. because inflation is so negative, they are on the dovish side. the experiment they tried to kick off a couple years ago has essentially ended. growth has dipped. clearly, the reason is because global manufacturing is suffering. they need to sit back, take their time, be pretty easy, and wait until things get set. guy: we thought we were getting into the neutral zone for the fed, and we are at the bottom end of what we thought was neutral. is neutral where we think it is? mark: i think the federal reserve can throw that out the window. the fed admits they have no idea where neutral is. if you get to the central market, the credit market is of
huge importance of u.s. economy. if there is a people in which it stops working, the fed will go we are in danger of growth slipping to the downside. we will go back to easing. that tells me two things, going forward. two reasons why markets are now backstopped by the fed -- growth in the u.s. is good, the odds of doing more hikes is pretty high. they are quite comfortable for an inflation overshoot. if the data in the u.s. keeps coming in worse than expected, they will naturally ease more. this is why markets are bouncing and this is why we can continue. china is important. vonnie: do you see any value in guilt at all-- in gilt at all? mark: i stay out of u.k. investing at the moment. i see the brexit debacles making markets difficult to call. brexit, the a soft pound is hugely undervalued. if you look at the u.k. data,
where would you survive in the u.k.? rings look all right, considering unemployment is incredibly low. no doubt, if we do get out of this brexit game with some form a of deal, there will be burst of pent-up investment coming through. all that combination put together should lead to higher interest rates and a higher pound. expensive butlook risky ahead of negotiations. vonnie: right now, the u.k. 10-year is yielding 1.21%. globalsh at merian investors, thank you. here is courtney donohoe. courtney: last night at the state of the union address, plans announced for a second summit meeting with north korea's kim jong-un. trump: ifhad -- pres. i had not been elected president of the united states, we would right now, in my opinion, be in a major war with north korea.
much work remains to be done, but my relationship with kim jong-un is a good one. chairman kim and i will meet again on february 27 and 28 in vietnam. courtney: since the first summit last june little progress has been made to get north korea to give up its nuclear weapons. president trump will meet with leaders from other nato countries in the military alliance holds a summit in december. the meeting is set for london. president trump has been critical of nato and has urged members to boost their military spending. british prime minister theresa may's search for a brexit deal intensifies today. may is on the second day of her trip to northern ireland and is hoping to find a solution to the border between the u.k. and ireland that will be acceptable to the british parliament. meanwhile, the irish prime minister goes to brussels to hold his own talks with the european union. an investor appetite for italian bonds shows little let-up from a
record-breaking deal three weeks ago. a secondl try syndicated sovereign sale this year. order surpassed $47 million. global news 24 hours a day, and a tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. guy: coming up, a final blow when it comes to a rail merger. we hear why. we hear why from e.u. competition commissioner. that is coming up next. ♪
vonnie: from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close. vonnie: u.s. markets have been directionless, but there is a lot to talk about. let's get to abigail doolittle. abigail: we do have directionless markets following directionless european markets. the s&p 500 down about 0.1% at this point. off of the low, but pretty neutral. slightly higher after being slightly lower. not really a strong risk appetite one way or the other. but there is a slight risk off as we go across asset class. the 10 year yield down slightly, telling you haven bonds are rallying. the growth year down ever so slightly. a bigger move if we look at the top sectors and the worst sector for the s&p 500, the communication sector, really lagging. sox up 3.1 percent,
being helped out by skyworks solutions, and apple supplier. they met estimates, relief considering sagging iphone sales. they also announced a buy back. look at the s&p 500 telecom services index, being dragged on by some of those gamers, including electronic arts -- on paper, its worst day since 2008 after missing estimates and a very disappointing guide. the week, -- weak, australian dollar. what a dramatic plunge, down 1.5%, on pace for the worst day since 2016, after the reserve bank of australia signaled a neutral tone after flagging for quite some time. as you know, a possibility of tightening. what investors sending the australian dollar lower on the session. guy: a big move, dramatic overnight. abigail, thank you.
antitrustust -- e.u. regulators have blocked siemens and alstom's merger plan. margrethe vestager spoke to maria tadeo. one is what keeps us safe, the train on a track. it is a very important market. second, very high speed, which is a market we expect to grow. our we come back from planes and want to travel in a more environmentally friendly fashion, this will be the thing to do. here, we have competition concerns, as we lost competition with the merger, and that could not be resolved by the parties. maria: one of the arguments put forward by germany was the idea of china. if we do not get big european champions, we could be threatened by chinese companies. america, theea in idea of the chinese threat. is that an issue with the
merger? margrethe: i think one has to take this very seriously, because there is unfair competition in the global playing field. at has to be very adept asking these questions. are not only european champions. they are local champions. they do very well in every contested market in the rail industry. we have been looking very carefully at the chinese, because they make 90% of what they do within the chinese market. they have no footprint in europe , and a very light footprint in other kinds of rail. in very high right now, the chinese are running their trains -- are running no trains outside of china. we have to be well aware. you have to use your tools to make sure you have fair competition and fend for yourself. reduce should not competition for customers in
europe to enjoy a formal prices and innovation and choice, because of the chinese threat. guy: that was e.u. competition commissioner margrethe vestager speaking to maria tadeo, who joins us now with more on the story. maria, the french and the germans are hopping mad. what have they been saying? maria: or was so much pressure on this woman to let this deal go through. the french, the germans, they really wanted this to be approved, she has decided not to. so much of her political capital has been deployed here, what you can see she stands by that decision. the french again today argued this was a bad idea. the germans will tell you we truly needed this merger to go through because this is the future of europe. there is a real threat from china, and this leads european companies in a weak spot. again, you may see pressure from european governments to try to sidestep the commissioner and overrule her commission.
that puts the european commission in a very awkward position, because the whole point is that this is meant to be independent, antitrust. it does not take political bias or make decisions on a country basis. the pressure is on. cansaid siemens and alstom make another bid, but for the time the european commission does think this is done. vonnie: great interview with margrethe vestager. i want to ask about comments made in the last hour by none iser than donald tusk, who changing the tone on the brexit negotiations. if you can even call them that anymore. it's link viewers what he has been saying. maria: you heard from donald tusk today, who just said in a very public that also unusual he does wonder if there is a special hell for brexiteers, for those who supported a brexit which he thinks cannot take place. it is unrealistic. there is no plan.
it has put the country in a situation where there is no way forward. there is no plan to get out of this. it is very unusual to hear from such a high-ranking official in the european union use that kind of language. was very pack here surprised. the u.k. press already picked up on it, kind of argued that 24 hours to go, this is not the tone you want to set as you wait for prime minister may. we heard from jean-claude to take steamry away from the situation and said perhaps donald tusk is too much of a religious man, and there could be some heaven. it is not all hell in brussels. maria, great work. thank you very much. maria tadeo running us from brussels. this is bloomberg. ♪
quinn. the state of the union is now in the books. president trump repeats he will build a wall. pres. trump: in the past, most of the people in this room voted for a wall. but the proper wall never got built. i will get it built. work and wallsls save lives. the president also touted his economic achievements and said that any trade deal with china must include structural change on the part of china. the burglars white house editor alex wayne joins us from washington. it is in the books. there has been time to digest everything the president said, from the fact that maybe were not exactly factual to some of the policy announcements. what is the final verdict? was there anything new? alex: like most state of the union addresses, it is
forgettable. none of these very long speeches, particularly in the last couple of decades, have been memorable. are toolem is they long. the speech was over 82 minutes. he was closing in on the record held by bill clinton. i was presidents would deliver more memorable, edited down remarks, in 20 or 30 minutes. it has that problem, that the structure of the speech is not great. but he did make a little news. he is going to meet again with kim jong-un in vietnam at the end of this month. dave out dates for that summit. and as you noted, he vowed that he would get the wall built, one way or another. alex, did this speech in any way change the probability of another government shutdown? alex: i don't think it changed it one way or the other.
it did not improve the odds they will relieve some sort of deal. i don't think he hurt things particularly. but what democrats heard here was a speech that lacked anything for them, any reason they might have to give him votes for money for the wall. it was not there. it was not in the text of the speech. he did not offer them any kind of olive branch. he did not move the debate, i don't think, no. the purpose was made up by the democrats of the democratic response last night? was there a good one? did it make its point? alex: i thought stacey abrams gave a pretty decent speech. that speech is generally a pit trap for the people who have to deliver it. it almost always comes across as awkward. there have been some real face plants in the past. you might remember bobby jindal and marco rubio both botching their state of the union responses.
stacey abrams at least cleared the bar of not embarrassing herself. and i thought her speech was well done. alex, i was curious about the socialism bashing that was present in the state of the union. is this an indication as to how the president is likely to deal with the 2020 reelection? if i look at what is happening with the democratic candidates for 2020, they are tacking hard to the left. was that socialism line because of that? alex: sure. the democratic is rapidly coalescing around the idea that the united states should have some sort of nationalized health care system, similar to the u.k. they are coalescing around the idea that taxes should be higher for wealthy people. the president made clear tonight he is going to label all of those proposals, those policies, as socialist. we will see how far it gets him. a lot of those proposals are quite popular among the public,
according to polls. vonnie: bloomberg news white house editor alex wayne, coming to us from washington, d.c. zero .2%.e dow down the s&p 500 is down 0.3%. as is the nasdaq composite index. treasury yields, the 10-year is back down. after inventories from the doe, crude oil has made a u-turn. the dax down more than most. a really poor data coming out of germany earlier on. the european market close is coming up next. those are the numbers. the ftse fairly flat. ♪
have done well, and the italian market is having a recently solid day, maybe something to do with the loan that has been gotten away by the italian treasury. we saw very weak factory data out of germany a little bit earlier. let cliche with the majors look like. the ftse 100 is flat. miners on a real charge right now . the sector on the verge every entering a bull market, rsi tells you the market may be oversold in that space. the dax trading down more than most, down by about 4/10 of 1%. 2/10he cac 40 is down by of 1%. some interesting stories within that. mp para bought has bounce back today. disappointing numbers today,
particularly when it comes to the equity business. a downdraft in topline related to derivatives. merger we, the real thought earlier on, and the commission blocking that. hints had been coming for quite some time that that would be blocked. anger in paris and berlin as a result of that. and earlier on we heard about the impact fortnite has had on both sides of the atlantic. the numbers will be affected, creates "assassins creed" in a similar genre, and it is been -- has been knocked down as well, down 9.1%. the volume is not telling us much today, slightly above average over the last for t 30 . vonnie: no massive moves
following the state of the union and just. -- address. the dollar is a little stronger, the yen a little stronger today. dollar versus the yen a little weaker. everybody seems to be nice and calm the oil traders with a bit of a day, up to $43 a barrel. earlier it was lower by a couple dollars. and here is a look at the macro movers. we will take the top movers and see what we have going on. china is not around, so that is something we can wait until next week to look at. the australian dollar is weaker by 1.5% now. the brazilian reality and canadian -- real and canadian dollar moving on oil. and britain with a -- and brazil is having a weaker day. guy: european banks reporting earnings this week with the
leaders giving bloomberg their take on the banking sector in europe and what is a challenging environment. >> it was impacted by the market. however, bnp paribas being a diversified bank, 7.5 billion euros is the bottom line. >> look at the fourth quarter, it is not unlike the market. it is not a good picture. you see some of the headwinds there. and in order to deal with those, you have to look at cash. >> i am disappointed in the result, which is driven by the icome, but the income lines, think the big ones are savings and in the trading side. we have had an environment where you have had asset performance in the fourth quarter really at a level which we have not seen since 2008. guy: some of the european banking leaders we talked to today.
we will bring in our opinion columnist and start off with bnp, the real standout for them was the fact that are equities business, which is they are really good at, had a terrible time. it was a massive hit to the topline. why? >> they did have some troubles. and this has complicated the quarter. i think that you have to look at one-off, butally a having said that they have relied on growth in the trading business and the investment bank to drive the expansion over its plan through 2020. and it had to review that now and pare back expectations for growth, whi pro deservingle the -- while preserving the possibilities. vonnie: what is the most urgent thing that needs to be done? elisa: i think what you are seeing across the board is the
quarter was very difficult and because you are seeing the topline flat, if not contracting very a lot of european banks, the focus wings back into what they can do on the -- side. the firms that are particularly inefficient, there will not be a lot of, a lot of patience going forth for what they do on the cost side. focusingp. paribas is on efficiency and focusing on bringing the costs down to counter the headwinds on the topline. guy: within the credit markets today, they have issued new at 1's and the market was getting concerned they were not going to call come of the existing ones. walk us through why this is important, because everybody is interested. elisa: the expectations in the euro market for the securities would get called back, so the fact that up until today there was uncertainty, still is
uncertainty on whether they will call those back, has made investors nervous. the issuance of dollar is leading the market to read into that, but they will call the cognizant ofnot that you. vonnie: i have a picture in my head of a group of wealth management heads wandered around and looking for a ceo job. it seems like many have left, yet there is a need for good people in places across europe. what is happening with hiring at the highest level? elisa: i think that wealth management has become, since the last. as, it has become -- year, it has become -- that want to bolster their fee income. it has an area that has remained, while others have shrunk. guy: it is a really better earnings season thus far, or is it? you compare it with u.s. banks,
these numbers do not look good. bnp, these guys are usually good at equities, but the u.s. teams had a really good quarter. maybe they dealt with a possible one-off. and we already have a heads up from deutsche bank, the numbers quite poor. why are the european banks not having a good quarter when the u.s. ones did? and where the trading desks not doing well compared with u.s. peers? elisa: think what you are saying eing isuse of the -- se because the economic engines are not as strong as in the u.s., they are more exposed to volatility than u.s. peers. vonnie: should we look for a resolution for commerzbank, deutsche bank, in the next quarter or two, or can they stumble on for a few years? elisa: i think that is -- the talk has been another could be acceleration of potential discussions. the management at deutsche bank
has said that they want to proceed with their plan, although they have not ruled out conversations at some point with commerzbank. obviously, the first quarter will be very important. it is early days in terms of how the business is holding up. the pressure will be relentless. guy: thank you very much indeed. elisa, thank you. vonnie: now first word news. courtney: the u.s. trade deficit tol more than expected $49 billion. imports declined in exports fell a little less and 3%. president trump talked about trade in the state of the union and he has vowed to get a fair deal with china. >> i have great respect for president xi beta we are working on a new trade deal with china. real, must include
structural change to end unfair practices, reduce our trade deficit, and protect american jobs. [applause] courtney: the house intelligence committee is set to vote today to send more than 50 interview transcripts from its a russia investigation to special counsel robert mueller. two of president trump's associates have been charged with lying to the committee. and the panel wants robert mueller to consider additional charges. this comes the morning after president trump criticized " ridiculous partisan investigations." factory orders in germany fell for a second month in a row. the 1.6% decline was the biggest in six months. deutsche bank is making the case that the german economy is drifting toward a recession. backedzuela, the u.s.
leader of the national assembly has caught on the military to abandon president nicolas maduro . that, soldiers were deserting in droves. many have deserted since 2014, that is a large percentage of their troops. global news 24 hours a day, on air and at "tictoc" on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. guy: thank you very much indeed. a look at where europe has settled down. a little bit of a tick up. the cac 40 finishing most 1/10 of 1%ust around down. and dax finishing flat. tech had a reasonable day, the miners as well. you cannot draw much from here in europe.
the s&p 500 is down. and one company we are keeping an eye on is apple. guy: absolutely. looking to diversify its revenue away from the iphone, it is naming a new head of retail. let's go to mark from los angeles. is angela a victim of the decline of the iphone? >> i think that the way you have to look at it is this, the apple retail store, there are over 500 stores it issue is also in charge of the online store, that is the main avenue that they they want customers to purchase their devices from. after the iphone slowdown, they had a look at what they were not doing well. are the stores powered enough to sell iphones in the quantities that we want? it has been a problem where the
majority of iphones were not sold in stores. angela aarons, she did not really fix that problem. the majority of iphones are still not sold in the retail stores, so there has to be a connection there given this announcement came a month after and they are not really saying anything to deny the connection. vonnie: deirdre o'brien is the human resources person, does this is just they are no longer counting on its stored to bring people in, its design, you know, its cache? mark: i do not think there is a correlation between that and deirdre o'briant taking over, she had experience in developing the original apple retail store. but she comes from two different backgrounds, she has been the head of hr, a people person, representing hundreds of thousands of employees, and apple retail makes up about 70,000 employees. and on the other side commission really has experience in sales and operations. prior to taking over hr
functions, she was one of their vice presidents of sales and operations, so merging the two of these makes sense. this is a new formula for them, this is the third new retail head since tim cook took over in 2011, and the first time that they are tapping an insider rather than an outsider from the retail world to sort of run that function. vonnie's point, maybe that is not an odd combination, but it does downgrade the role, she is doing two roles and will have two responsibilities, doesn't that point to a lesser role for the retail space going forward? mark: that is a fair point. it is very possible. i do not think so. we will see how long she does this dual role, it is possible they could move her back to the people role and may be higher in outsider to work with her. but they have given no
indication that this is a temporary position. but i think this is more about tim cook choosing somebody he thinks will do a good job elevating apple retail, making the employees happy, and continuing to sell iphones at a higher pace, rather than them trying to demote retail in the importance of the company. vonnie: what is the focus now? we are on to the next quarter, what will the analysts be looking for day-to-day? mark: in the short term they will look to see if iphone sales are going to rebound. we have seen so many promotions and a discount opportunities apple has been offering. then you look at their guidance for the second quarter, between or around 55-58,000,000,000, which will be below expectations and will represent a year-over-year decline in the second quarter. it does not seem like those promotions are having an impact to push apple's earnings year after year. gurman, thank you very much indeed..
vonnie: it is time for our stock of the hour, sky works solutions with its biggest gain in a year after fourth-quarter results topped estimates. they have announced a bigger buyback program, that bringing relief for concerns after a mobile phone slow down and weakness in china. they are a big player in the 5g space. not only does this apply seems on, but it is also an apple supplier. >> the earnings did come in at 183 versus 182. and the fiscal second quarter will be falling down to 143, most analysts are still feeling positive about the stock. there will be a buy back program and again, seeing the 5g roll up may be starting in the second half of the year, we could see the mobile phones sort of bottom out and look positive for 2019 and 2020. so the 5g should really give
them a boost. and the company is saying that they are still able to generate free cash flow, even though you are sort of guiding the earnings per share lower, still being able to generate that strong cash flow is positive for the market. and they continue to get it done. off a little bit last year, $1.1 billion, this time $1.8 billion, but nonetheless they are able to initiate the buyback and analysts say that will offset the headwinds, at least for the stock while we wait for the 5g roll out. and maybe the stock will pick up for the second half of the year. guy: what does it say about the rest of the supply chain? >> yesterday, we were talking about the semiconductor already out for forming the s&p 500 on a year-to-date basis. of course, the story continues today, the stock index is up 30%, s&p 500 mostly unchanged. with the mobile phone rollout, this is something that analysts are looking at. that is a strong read through
from sky works to corvo. they are guiding lower, but we will see if the market has bottomed out. it a microchip technology says that they are starting to see a bottom, they cannot collect yet, but again with the downturn in to the chips and they make for cars and computers starting to see a little bottoming out, maybe these are all poised to go higher. vonnie: thank you. time for the latest bloomberg flash. streaming music service spotify moving into -- as they have agreed to purchase can let media. they plan to spend more than $20 million on the company which has created podcasts like "homecoming," which was recently adopted into a tv show. for the second time this year, tesla cutting the price of its model 3. it won out cost $1100 less, bringing the base price to just
under $43,000. the cost cut will offset the end of a customer referral program that was a more costly incentive than the company had realized. and a tweet from tesla's ceo meanwhile, has led to talks with the daimler over a possible cooperation on an electric van. in his november tweet, elon musk praise their vans. they sold a stake in the company 2014 for $780 million in profit. and that is a latest bloomberg business flash. globalming up, the battle of the charts. you can find them on gtv . this is bloomberg. ♪
battle of the charts. we have eric kicking things off. two of want to show you the biggest pot etf's, both having amazing years. mj is up 42% this year, the best-performing etf by 12%. a lot of people are interested, both just hit $1 billion. look at mj, the charge on the top, it is trailing its index. and if you look below, the canadian pot etf beating its index by about 12%. and hmj is canadian and they can lend out more securities. and in the u.s., securities lending is tied to the custodian. that has been an issue here. so a lot of free return on the canadian one, giving it a strong kick and increasing its performance. if you can get to a brokerage that has canadian etf's or
stocks, this might be the better play because of the 10% or 12% extra yield. guy: that is fascinating, in terms of liquidity for the stock. vonnie? vonnie: i am so caught up on the for? what does that stand eric: arises medical marijuana. -- horizons medical marijuana. that is it. vonnie: ok. this is the european energy sector and it has seen a nice bounce. and we may have more to go according to barclays'strategists. has upgraded the sector. and we have a nice outlook from yesterday from bp. and once again, there you go. my chart. guy: nice chart. i will have to give it to eric,
only because it amused vonnie so much. one would be remiss -- vonnie: it was distracting. [laughter] guy: it fascinating to see the liquidity story around that. i will give it to eric, but i like this chart as well. plenty of good charts coming out in terms of the energy sector and mining sector out of europe. and remember to catch etf i.q. on bloomberg television, coming up later on today happening at 1:00 p.m. in new york, supply p.m. in london -- at 6:00 p.m. in london . and 2:00 a.m. in hong kong. set the dvr. that is how the markets look. this is bloomberg. ♪
headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, kevin cirilli there in washington on president trump's quest for a wall. nancy pelosi taking center stage at the state of the union. and more on donald tusk unleashing brexit. give us highlights on what you saw last night. the president spent a lot of time on the wall and immigration security, is he saying we will go back to a government shutdown? kevin: i think he referenced the wall about 10 times in his state of the union address. it was a considerable portion, but i was struck by the fact he did not declare a state of emergency, which from the staffers i am talking with was a vote of confidence for people like mitch mcconnell and chuck schumer to say, give me a deal