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tv   Bloomberg Markets Americas  Bloomberg  February 13, 2019 10:00am-11:01am EST

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vonnie: 10:00 a.m. in new york, 3:00 p.m. in london, 30 minutes into the trading day in the united states. from new york, i invite. london i'm guy johnson. welcome to "bloomberg markets." vonnie: markets are busy today. see what they are moving. some of the major movers include hilton hotels, which is the highest mover in the s&p 500 right now, up almost 6% after a good earnings forecast for this year and guidance as well. dish network is one of the po orer performers today. with theision blizzard news that call of duty is no longer invoke, it is cutting staff. %. is up 8
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a drugmaker's earnings report really disappointed history. shares down with an 11% right now. guy: looking forward to the conversation. let me tell you what is happening in europe and more broadly. stoxx 600 is up 7/10 of 1%. i want to compare and contrast what is happening in madrid today. i've asked -- ibex is underperforming today. we saw the budget bill not go through. the sanchez government has a decision to make about whether it will call an early election. elsewhere, significant underperformance from the russian market. 1.85%. we trying to figure out why this is. i think what we put our finger on is the idea that morgan stanley has come out and said that the market is underestimating the impact sanctions are going to have and that seems to be knocking the market a little bit lower. we are seeing more broad weakness in e.m. today.
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let's take a quick look at what is happening in new zealand overnight. kiwive move for the against the u.s. dollar. reserve bank of new zealand was not as dovish as the market anticipated. as a result of which, the currency jumped sharply. vonnie: let's check in on the "first word" news. here's kailey leinz. kailey: white house press secretary sarah huckabee sanders says president trump does not want to see another government shutdown, but he is not willing to back away from his plan to build a border waffled speaking to reporters at the white house today, sanders was asked whether the president will sign the border security deal. sarah: the president isn't fully happy, as he said yesterday, with everything that is in the legislation, but there are positive pieces of it. one way or the other, and one thing you can be sure of, is
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that at the end of the data president is going to build a wall. he said he would get it done and he will. kailey: bloomberg has learned put offing is until thursday. in the u.k., theresa may the flight to questions about her chief questions about her chief negotiator. shthe u.s. fda is on the verge of approving a breakthrough depression drug. panel outside experts recommended the fda approved the johnson & johnson drug, a fast acting antidepressant administered through naval
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spray. it would be the first major advance in treating depression since prozac. india wants more control over the use of facebook's messaging service whatsapp. incitebeen used to violence and spread pornography throughout the country. facebook has refused. it is risking punitive measures or even a shutdown. 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 am kailey leinz. this is bloomberg. vonnie: thanks, kailey. more things to talk about include the potential deal on a partial government shutdown. china trade is huge. we didn't get to say it in the ceo, for the t-mobile john legere is on the hill today. for theon approval super merger. guy: that is becoming a little bit more tricky. reading the tea leaves on a
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transaction at the moment. and i am keeping an eye on the bond market. it is worth paying attention to. something for everybody -- the year on year on your numbers because the benchmark revisions, they were a little higher. it is fascinating to see that the bond market has moved up. this risk rally is still on. but it feels so unloved at the moment, and the earnings story is disappointing. outward revisions in terms of where earnings are going as well. advisor,o quote one the stop telling me to is no inflation. -- please stop telling me there is no inflation the and then the andof teva pharmaceuticals, lots more. shares on the were by a longshot after the report -- are lower by a long shot after the report and the forecast. and we will be talking about the venezuelan and spanish elections, potentially.
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this is bloomberg. ♪
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guy: live from london, i am guy johnson. vonnie: from new york, i am vonnie quinn. this is "bloomberg markets "bloomberg markets." the mortgage bankers association -- let's talk about this and where we are with the bridge investment group chairman focused on value real estate in the united states. where are you finding value real estate right now? >> there is a lot of parts of the country that are in desperate need of housing. we focus mostly on multifamily housing, and we acquire and renovate class b housing.
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it is very interesting because when you look on the new york skyline and you see all these cranes that are building luxury residential units, and yet when you go to some very fast-growing secondary cities like phoenix orlando or elsewhere, there is very little new construction of what are known in the industry as class b apartments. and yet that is where most of middle-class america wants to live these days. homeownership is going down. that is why mortgage applications are going down an apartment living is rising in appeal. vonnie: you are perfectly placed to tell us where we are when it comes to housing finance reform. what do you see for fannie and freddie and how would it benefit the likes of bridge investment group? bob: i think that predicting government actions is very difficult today for sure. fannie and freddie do a great job as they are currently constituted. they provide important intermediary activities to provide finance in residential
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housing in the u.s., both for single-family as well as the multifamily housing. the job that they do is terrific. the ownership by the government has been subject to a a lot of discussion. there may be privatization. the function of providing a government-supported intermediation to enable housing for a lot of the u.s. residents who choose to own their own homes as well as companies like ours that borrow to finance some of the purchases that we do will remain in one form or another. there has been a lot of talk about that. guy: bob, can i ask you a question about how squeeze this market is right now? blackstone is the world's biggest private landlord. private equity money has driven into the sector that you occupy right now. how is that changed the dynamics, and what impact does it have on your investment
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opportunities? bob: it's a really good question. i think that the housing market, particularly when you aggregate single-family housing and multifamily housing together, is very deep. it is an active market there. there are thousands if not tens of thousands of transactions that occur every year. we think that professional institutional ownership of assets is really critical and important. i know when we acquire an asset, typically we might buy a 500-unit apartment facility, community, we have the wherewithal and the skills and the history to create a neighborhood where otherwise it might be four walls and a roof, if you will. we interview our assets with different social and community programs-- imbue our assets with different social and community programs, financial literacy programs for adults.
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i think that institutional ownership helps to drive up the quality of management in housing. it is a competitive market. when you buy assets, we compete with others. when you sell assets, it is a very robust market of buyers who look to acquire what we have created. guy: what kind of rates of return are you getting at the moment, how do they compare with other markets globally? you see a lot of pension funds from around the world looking to invest into the space. i am curious what rates of return they are getting in the u.s. vis-à-vis elsewhere. if i'm a korean pension fund putting money to work around the world, how does the u.s. backup? bob: great question. i think it depends significantly on what sector of the market you invest in. if you are investing in core assets which are trophy office buildings you might see on the
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walls of the korean pension fund, you expect a 4% to 5% return. if you invest in value-add assets, as does bridge investment group, we target returns at the 12% to 15% net to the investor over and 8-10-year hold. two times multiple of capital for the investment. those returns compare favorably, we think, to the prospects in the liquid equity markets. i think most prognosticators, to the extent that the have a few, are projecting mid-single-digit returns moving forward for the global equity markets compared to the bond markets. real estate has the added advantage of offering durable current income for investors. turn on an annual basis as well as the capital appreciation at the time of sale. vonnie: let's leave it there.
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particularly when we hear more from the administration. thanks to bob morse, bridge investments group chairman. let's get markets with abigail doolittle. abigail: the global risk rally continues. look at the s&p 500, fourth up day in a row following gains in europe with the german dax higher and the nikkei in japan .f 1.2% best two days of the year. we have a risk rally this year right now being driven by hopes around trade and perhaps the aversion of a government shutdown. look at the new zealand dollar. up 1.3%, best day of the year. it is holding off by hiking rates until 2021. that fits in with the picture, growth on growth year currency. risk-o day. nas for driving the risk rally this year, it has to do with another central bank, the fence. taylor -- feds.
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take a look at the 10-year yield. s&p 500, end of december as the rates went lower on a haven bid, the s&p 500 going low, said became more dovish. -- fed became more dovish. the 10-year yield still lower from where it had been from that last fed meeting. a big driver for this year's risk rally. as for what is driving the gains, let's look at the movers for the s&p 500. one of the top stocks is activision. shares trading higher. butforecast disappointed, they are laying off some of the workforce and investors liking that. freeport-mcmoran up. morgan stanley upgrading to overweight on copper prices. take a look at hotels -- hilton had a great quarter. they recognize are estimates -- they beat estimates and they
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took in one of their revenue guidances. but the street is it saying very achievable, the shares rallied and taking marriott up. guy: great stuff, abigail. run around the markets. coming up, the ceo of teva will be joining us. call finished just a while ago with analysts and he will be joining us on bloomberg. ♪
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guy: live from
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vonnie quinn. this is "bloomberg markets." teva pharmaceuticals is down today. perhaps on the forecast for the year ahead. here to talk about a year ahead for the company and industry in general is kåre schultz, ceo of teva, first broadcast interview since taking the role a year ago in november of 2017. you started your restructuring with a bang. he said this year you will close 11 more manufacturing facilities and you will make the cost-cutting market. still on track? : very much on track, a plan we laid out more than a year ago, and the goal is to reduce space and we are on track. we have had to say goodbye to .ore than 10,000 people we were down by $2.2 billion in 2018. in 2019 we are going to hit the , and that$3 billion is a key element of the whole financial stabilization of the company. vonnie: i do want to have viewers take a look at the function here in the bloomberg. debt outstanding has been a problem for teva. you have to cut r&d spending because of it. you have taken that down if you run out since you took over
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at the how. how do you plan to continue doing more of of that? kåre: it is a key element of our situation that we have high debt we look at the year and a half, it was about $35 billion. now we have come down to $27 billion net debt, and we will continue to take it down. downyear we will be paying $1.7 billion. we do that out of the operational cash flow. we set our financial targets to explain this to the whole world that we need to have cash earnings above 80%, and we need itdaet the debt down to eb below three. that is what we will do the next two to five years. guy: good morning, mr. schultz. it is guy johnson. , talk about the streets -- can we talk about the streets vs. guidance? where did the streets go wrong?i'm curious to know where
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the gap emerged from. kåre: we have a regular cycle where we inform the markets, and that happens every quarter. i think i get very straight answers, very straight guidance in terms of numbers. if you look at what we realized in the fourth quarter, we had a range of earnings-per-share oint wasre the top p $2.95. we came in $2.92, so very close to the guidance. same thing with cash flow. when it comes to the future, it is up to anybody in the marketplace to speculate what might happen in the future. i can only say that i've been communicating for the last year year2019 would be a trough for revenues and operating profit. oft is a natural consequence the u.s. engineer competition there being offset. the dynamics in the numbers is pretty straightforward, but when
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you get to the finer details, sometimes analysts will be more optimistic, more pessimistic, than what is actually the case. if you look at our communication, our guidance, it is extremely trustworthy. actually, for more than 20 years not missed a quarterly guidance. there will always be some uncertainty in the future, and if you have a dynamic situation like we have with key products going down in revenue, key products going up in revenue, than the whole dynamic becomes bigger and the answer to the become somewhat bigger. vonnie: talk to us about --ok. guy: i hopes for the new migraine drug. i'm curious, would you say that the risk is to the top end or bottom end of that target? we had a kind of guidance story last year, and as you say you came through and delivered towards the top end of that.
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i'm curious as to whether a similar dynamic could be in play here. have you been very conservative with your guidance here? kåre: i am always trying to be realistic and conservative. i'm sure you know, having followed this for many years as you have, you know it is not a game where if you make your guidance the second time, 50-50, that's a good performance. you need to make sure you give out guidance where you promised investors you will be able to meet the guidance. you will still meet the bottom of your guidance. that is how we think about it. of course in order to explain the ups and downs, we have communicated a lot of the assumptions. on specific products, what are the assumptions on specific elements one of the assumptions. sometimes you don't get generic competition and you keep more of your market share. sometimes you get bad luck and you have earlier competition or your market share does not develop as well as you wanted. i think we take a very holistic picture of a situation and we give good, clear, and
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conservative guidance. vonnie: in the health care conference in san francisco you said the freefall in generic drug pricing has probably stopped. do you still feel that way? are we stabilizing? kåre: yes, we are definitely stabilizing. i said in the happier we might be stabilizing. now it looks like we are stabilizing. we can see that we are stabilizing. i think it is partly due to our actions. as you might remember a year ago, this death spiral of the u.s. generic business is not going to work, because if you keep taking prices down, your products become eventually unprofitable and you have to stop supplying them. that is not good for the patients, it is not good for sustainability of the whole business cycle. we said that all of the unprofitable products we have at that time, probably 10% of our portfolio, we would renegotiate and explained that we could longer supply the products on the long-term basis. -- no longer supply the products
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on the long-term basis. we are out of some of the products. but most important, the whole industry has realized that this death spiral of christ priceions - pr-- reductions to very low levels, that doesn't work. if you look at our north american generics in the fourth quarter, it is slightly up compared to the third quarter. instead of this constant drop we saw for three or four years, we are seeing stabilization. vonnie: how are you experiencing what is now a divided congress? we're seeing speeding up in approval of the generics but we are seeing speeding up in approval of random drug makers. kåre: we think about the patients and whether we can bring innovation in new, innovative drugs, where you need fair value, or similar or generics where you take the price down to benefit the broad
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health-care system. the value that generics are given to the health care system is enormous. it is in the hundreds of billions of dollars every year that come from the lower prices of generics. today more than 90% of all medicine being used every day is coming from generics in the u.s. teva worldwide supplies around 200 million people every day with generic medicines. without this element, we would not be able to afford the health care system we have it all. i know there is still tension in the system and i don't have a from political view on exactly how to maneuver their bank. i'm just saying the basis is the combination of innovation, effective drugs that help people get better therapy, followed by similars in generics to make it broadly available and she for everybody. guy: picking up on that point, mr. schultz where does teva's future lie? are you going to be a brand company, a generic company? do you have a particular direction you will move in? kåre: we have a particular
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strategy. we want to be the leading generic company because we have the whole skill-base development base, manufacturing base for that. at the same time we want to be a leading biopharmaceutical company. both new and innovative biopharmaceuticals such as the new treatment for chronic migraine we just launched and when we are working on for pain. but also -- the reason why i think this is a good strategy for us is we have the skill-based to do everything from the early pilot phase of biologics all the way to the launch and commercial aspects. there we have the synergy between bio similars and biologics which we can utilize to the benefit of patients and shareholders. vonnie: kåre schultz, thanks to you. ceo of teva pharmaceuticals joining us today. guy: in a couple minutes,
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breaking news out of the european industrial space. daimler is announcing that airbus' cfo will be joining as the new finance chief. he is going to be starting in april. he was at airbus for a very, very long time. we had some interesting interviews in the past, let's put it that way. it will be interesting to see how he gets on at daimler. stock is up 1.56%. time for the muni moment. exchangeco executed an to reduce is on the $18 billion in terms of bonds. -- it's almost $18 billion in terms of bonds. exchange to reduce is on >> i just have to ask you point blank, coming out with the news yesterday, the recovery rates look good. how do you feel about them? >> we feel good.
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taking a step back, two bankruptcies, the commonwealth by pepsi and the covina bankruptcy. yesterday's announcement concludes the bankruptcy for covina. $17.6 billion of debt restructure. this sets the stage for the commonwealth to emerge from equity. 33, 30 the seniors got five cents. covina ordinance is lower than that. walk me through the infighting between the seniors and the subordinate. >> the process was contentious at times. including accrued interest from the senior scott $.95, the subordinates got $.58 including accrued interest. it is a remarkable outcome. given the challenges, the fiscal crisis, economic crisis, and the ones in a 100-your hurricane, for the seniors to get $.95 outstanding -- as you can
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imagine, when there is limited resources, everyone wants a little bit more. at the end of the day the plan was put it on and 99.5% of the seniors are in favor. it was contentious, but it was consensual at the end of the day. taylor: there has been some infighting between the bondholders because they were supposed to be untouchable, and yet maybe perhaps they are losing a little bit of brown to the dedicated tax revenue. how do you work between that? >> a lot has been made of the dispute. it is actually a bit of a proxy dispute, it is actually a bit of a roxy war because they are creditors and the commonwealth. the commonwealth was a creditor. the bankruptcy settles dispute. 46% of the dedicated sales tax that went to kofi is being turned over to the commonwealth. that will be a resource to pay --
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it is benefits geos at the end of the paper and some of the largest bondholders came out in support of the deal. so we got a consensual settlement. >> what does this mean, sort of your picture about order he goes bankruptcy law? for sure, it allows passes by congress in 2016, this is a huge waypoint. it takes longer than planned. the hurricane is part of the timing and terms of being a setback. the board is doing its job, the process is working. $17.6 billion in debt has been restructured. >> we know the market has a short memory. when does puerto rico have to come to market again and other buyers that trust that puerto rico will pay this time? the good news is the economy in puerto rico is doing quite well. there was a lot of uncertainty after the hurricane. the commonwealth is running a
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surplus. there is a lot of activity going on related to rebuilding and reconstruction. the economy is doing well. this deal sets the stage for puerto rico to re-access capital markets it -- markets. there is $12 billion of new debt being issued. there is a back it of additional debt that can be issued. there'll be a large demand for the paper. the bankruptcy confirmation order is final, binding, conclusive, complete. there is no doubt that they -- bandar's -- bond owners have a statutory -- longis has been a very process be we have been talking about this for five or six years or so. any idea of what is next? where do we go from here? matt: there will be a big push in 2019. board terms are up for renewal in september. you will see a lot of activity this year. now that it is resolved, everyone is focused on the geocoded. that is where we will pay attention next. matt: 29 -- >> 2019 story? matt: i hope so. >> thank you.
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>> just a bit of news coming out of the last couple of minutes. the french government is considering delisting -- of etf. to the nuclear challenges that the company faces. on the face of it, that sounds like -- you have to remember that the french government already owns 80% of the business. we are seeing the stock for the news on the back of this. 4% on the backp of it. we are also seeing call ups searching around as well. the reaction that we are seeing. if you go to your -- on your bloomberg, you will see the french government already has a very sizable majority.
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speaking there, crude oil inventories more than doubling for the previous week. a bill of 2.6 3 million barrels. it is quite a surprise and oil is actually rallying more than 2%. 54, 9 -- 54.19. one financial -- calling on leaders to prevent an outright -- you are a known ceo of -- advisors. he writes this in the financial times. the international community remains observant and ready to respond to it potential collapse. action must be taken by a new regime to shift priorities to respecting, promoting, and fulfilling the rights to health. opening humanitarian corridor to allow aid into the country and providing the fundamental building blocks down strengthen and restore what was once one of latin america's strongest health care systems. bill, it is a very positive up, you spent 13 years in venezuela. in a dire situation for a long time now, several years, in fact. is this the right way to go, is the u.s. calling for a new leader, self proclaiming
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himself? is this the way to have the health care system fixed? it isi think unconscionable, what is going on with a health crisis. it is the greatest humanitarian crisis that latin america has faced in modern history. it is worse than haiti. after the earthquake, the country welcomed in all the eight it could get. , working,y christina you know her, working on refugee first responder areas for most of her life. in africa and asia and everything. try and doed up to something to help in this area. it was very interesting that your last guest maintains his in venezuela. i give him great credit for that because what is happening is the hospitals don't have medications. they don't have antibiotics.
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many of the hospitals do not have sufficient doctors. there is not plasma there. within the country itself, there is tremendous suffering. this is a country that has the greatest health system in latin america. when chavez came in, he promised to upgrade it. ?hat do we have we have a country that is in the stage of a third of the population is leaving. a tent of it has left. streaming and people -- a 10th of it has left. -- -- ecuador and peru has already left. another two to 3 million leaving this year. those who could leave, would want to leave your all of that adds up to almost a third of the population. it is basically a disgrace, what is going on down there. if you have these supplies sitting on the border waiting to come in, and maduro does not
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want to let them in. i think something needs to be done on the international community side. vonnie: where do you see that happening given that we are not even sort of settled with a new you leader yet -- a new leader yet? of thehat is part problem. politics is supreme over humanitarian needs. you have two governments in effect. you have the head of the national assembly who is being recognized by almost every government in latin america, with the exception of nicaragua and cuba and bolivia. and then mexico can't make up its mind. the eu has decided to recognize the new government glide oh --guido with the national assembly. -- which is a great source of petroleum and income in the country. it is a very dire situation.
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the problem is i don't think maduro will go easy. he has a military so far with him. how long that will last, not clear. good morning, how should the imf react if maduro does go? bill: i have been told they have a package ready. you need the bank. they have a special task force working on the humanitarian side. i think the international agencies are more or less ready to go. the problem is that the maduro government does not want anyone interfering. he is being backed up by putting in russia big-time because -- has a big state there. as you know, they control almost half through the shares, almost half of citgo which was a big venezuelan crude on our gulf coast. with these new sanctions, this is really going to be hitting venezuela. i don't think that the situation
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is going to be resolved anytime soon. which is a real, i think, unfortunate situation because with all the suffering that is going on in the country. guy: to put this aside for one moment, how investable with this country be? all: there is no doubt it is country with tremendous resources. not only oracle -- oil and gas, iron ore, oxide, aluminum, it is that iwealthy country think investors would come back rapidly. one of the chief challenges is going to be how you restructure the debt. someone said to me the other day it will be the mother of all restructurings. both with the tremendous obligations of the sovereign, the venezuelan government, plus the state owned oil company. this is a country that can bounce back very quickly. people keep asking me what is the attitude of the chinese.
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i was in china about six weeks ago. would work with any new government that comes in. they have a major stake there through their china development bank and the state owned oil companies in venezuela. so, they are kind of on the sidelines waiting to see what will happen. at this point in time, the big defender of the maduro administration is putting in russia and cuba. -- is putin in russia and cuba. vonnie: let's make a turn. you are constantly traveling and all over the place, i want to ask you about spain. there might be an election. bill: you and i have conversed for over a year. i think the government is very weak. it is a minority government, the socialist government. he relies on the capital and nationalist parties. , at the same time he is
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doing that, he has 12 of their leaders facing criminal charges and trying to separate catalonia from the rest of spain. i think it is a matter of time before the government goes and we will have to see what happens in spain. i think this is going to affect the economy itself. economies,european the eurozone economies have bounced back after their debt crisis. spain came back the strongest. a good this is a not sign. you and i have also discussed italy. unfortunately, my predictions there have proven correct in the sense of italy is now in recession, technical recession. the italian banking system is barrel -- still very weak. and then, of course, we have brexit. i gave a speech the other day my people are asking me views on brexit. one of the problems is ireland. as you know, the english have
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never known what to do with ireland since the battle of the boyne which was 1683 or something. vonnie: let's not go back that far. bill: problem is it is not the -- it is the irish question again. they have no plan as to what to do with ireland in the sense of how to keep the open borders on trade between northern ireland and the republic. vonnie: that is why the extension is being talked about. -- theck question, banking system in general of in spain -- in spain. they are strongly capitalized and they will be somewhat affected by this turmoil that is going on in spain. in general, i think with some exceptions, there are some real problems in the european banking situation. take a look at the deutsche bank and what is going on there. once one of the strongest banks in the world.
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as you and i have discussed over the years, i think one of the real concerns about growth in europe is they never basically cleaned up the banking system as they should have. as we did in the united states. on raising capital and writing off their debt. the job of mario was coming to an end, it was very difficult. what will you do? you can't drop interest. he already has negative interest rates. he basically does not have very much ammunition left to do anything. i think that is one of the problems. if we get into a recession, 2020, we have raised rates, we reduce the balance sheet. there is actually some ammunition to do something. in europe come i see very little in the way of ammunition. vonnie: we have to leave it there. thank you. ceo of -- global advisors. up, the square
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capital management is off to its strongest start to a year on record. we will take a look at why he is winning and what is the strategy. that is next. this is bloomberg. ♪
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guy: live from london, i'm guy johnson. to its strongest start to the year on record reporting at roughly 25% on investment. by bloomberg field reporter. scott, a very smart manager wants to told me that if you want to have a great year coming
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you need to have a terrible one the year before. is there any truth in that when -- mr.s to mr. ekman ackman? >> i don't think last year was his best year on record. , a lot most hedge funds of the gains of they have made over the course of the year were minimized and at the end of december, he lost 10.8% on his investment leading to a negative return of about .7% for the year as a whole. vonnie: let's make it clear where he has made some of these gains and why we are looking at them today of all days because it is sort of a random day in february but perhaps to be an investor day going on in london. --e gains have come from which have had a huge run for since the beginning of the year of 37 and a half percent. a -- in performer in the portfolio. adp had a nice gain of 18%.
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here?does it go from this he sell some of these? scott: we did see him trend some of the ownership last year. about $401 million share sale of, it took some profit. took some profit. as it stands now, in particular with investment, reason investment in starbucks, he mentioned presentation today that he still sees significant value being created. and significant upside as well. guy: with the decision on the dividend and what the just -- the objective is there? scott: first where holding is a listed entity in london for pershing square capital management. it is kind of a stagnant stock and it has been beaten up a little bit. he has been doing a share repurchase program that helped kind of driver turns as well. -- drive returns as well.
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they want to create amount of 2.5% yield. they are creating this to bring in investors that might be interested in a dividend stock. vonnie: you also have a nice little province from filling nike shares, it may have come to early. what do you think is the next move? we may hear about a new position, is he now the next banking on housing finance reform? 6 -- scott: he has ola said that there is a tremendous upside on fannie mae and freddie mac this news reforms come through cap they have held of those stocks for a long time now. they have been waiting for those returns to pan out. i would say generally, the whole approach is kind of change for -- over the last little while. a has obviously stepped back little bit from being in the media spotlight. you know.
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he has taken kind of a smaller, more investment centered approach to pershing square. vonnie: and some of the other things he points out in the presentation, the reduced headcount to 38 from 74. completelyhas not given up on that investment either. were: it seems that there four new positions in 2018. all of them seem to be performing relatively well. also onechnologies is that is going to major transformation. so is lows. .e see have -- so is lowe's vonnie: excellent. scott is our activism reporter at bloomberg. still ahead, opec report futures in focus. this is bloomberg. ♪
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guy: time for futures in focus.
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oil extending its gains. let's go to cme. we are joined by anna deming of kk financial. talk to me about the eia data. you also had -- as an issue, some of the refiners as well. is that what we continue to see the bills? >> i believe so. i think what you're seeing here is the supply disruption. particularly in the heavier grades, the sauers. that seems to be a problem for the for refiners right now. possibly, i think accounting for the four-week build, we saw a bit of a bigger build today than what the market anticipated. really holding up there. going to new -- highs in 2019. get the dynamics of the marketplace, just production cuts coming out of opec and the distractions coming out of venezuela and iran. we still filter in wti and we
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continue to see supplies ramping up in the united states. there is a lot of moving parts. underneath the surface, we are seeing what the market account for some of these dynamics and we are seeing some of these prices continue to hold off at the higher end of the range. to see how theg sauers are trading with such a premium at the moment. the other side of this is the macro data on the global economy looks pretty bleak. --m kind of wondering, is are the cuts going to be big enough to compensate for the slowdown? dan: the market is trying to account for that. when you have the news out of opec it appears they are cutting more than what was initially anticipated. again, i think that is another possible's driving force -- driving force keeping oil at these current levels. i think the global slowing story is -- has gotten so much play that, maybe, the markets accounted for the fact that it will not be as bad as what the anticipation is. that is part of the other driving factor here. if we continue to -- continue to see the slowing process and the
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net estate snow looks like it is kind of trying to maintain its track relative to the rest of the globe. ideally, if the market can get through this, maybe that slowing story is a little overdone. at the same time, i think, you know, right now we are currently seeing oil hold off relative because of the dynamics and supply chain. guy: great, thanks for joining us. vonnie: time for a stock of the hour. shares of heineken -- here to tell us more. >> -- came out with a blowout for the fourth quarter. earnings a report really seemed to be taking the biggest global --, that is a b. through a number of acquisitions in emerging markets and buying growth, has been doing this in latin america and china and the asia-pacific as a whole. they are really trying to take the fight to ab inbev. if you take a look at the stock, heineken is the one that you will see pulling away at the moment. guy: it has some momentum,
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doesn't it? vonnie: absolutely. that is what investors said today because they are in a sweet spot given the growth of -- and also, seeing the momentum. anakin has a much smaller debt load than ab inbev. their debt load is nine times bigger than that of heineken's. -- stock of the hour, thank you. at theave a quick look major averages. dow was up two thirds of a percent. s&p 500 up half a percent. nasdaq up a third of 1%. this is bloomberg. ♪ the latest innovation from xfinity
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european trading day. i am guy johnson. vonnie: i am vonnie quinn. this is the european close. guy: this is what we find ourselves with in europe, the stoxx 600. 1%. spain.al tension in the budget did not pass and we will has -- we will see the government have an early election. we are also seeing other performers coming through from russia. this appears to be on a morgan stanley note, voicing concern of the market being complacent on the sanctions. , you can out of asia see the new zealand dollar gaining significantly. the central reserve bank first back the dates of the next hike.

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