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tv   Bloomberg Markets Americas  Bloomberg  February 20, 2019 10:00am-11:00am EST

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-- it's 10:00 a.m. in new york, 3:00 p.m. in london. i'm vonnie quinn. guy: i'm guy johnson. welcome to "bloomberg markets." vonnie: traders awaiting fed minutes, but we do have big earnings movers, including cvs health. that is plummeting, one of the lacquers in s&p 500 -- the laggers in the s&p 500. southwest airlines down 5.3%. china's currency strengthening a little bit today. i thought i would throw in the s&p 500. doesn't look like there's much happening, but there is. guy: a similar situation here in europe. basically, mixed markets aren't going anywhere in a hurry. trading at session highs on the stoxx 600, also going through
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its 200 day moving average. from a technical point of view that is quite significant. nevertheless, probably waiting for the fed minutes later on. 7:00 p.m. in london, 2:00 for you. a lot of the action is below the surface in individual stocks. stick a look at some of the movers we are watching closely in europe. a range of factors affecting these companies. ubs stock under pressure from a significant fine in the fridge courts. swedbank nowt -- being linked to the danske bank story, taking a significant nosedive by 12%. the other stock worth paying attention to from a transatlantic angle is seen -- bury, trading down 16%.
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doesn't look like a merger is going to happen right now. the stock being marked down on the basis of that. vonnie: at 2:00 p.m. eastern, the fed minutes may help explain the central bank decision to make a dovish pivot on rates. are analyzed question of the day, will the next fed rate move be up or down? joining us is michael o'rourke, chief market strategist at jones trading. what do you imagine the outlook for growth in the u.s. is, and how will the fed manage that? guest: right now we are looking at a situation where 29 growth was expected to decelerate as part of the fed forecast. obviously the concern between the shutdown, trade negotiations, and other headwinds is that the deceleration is worse than expected. we've had some very good
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employment reports thus far, so i'm not quite so sure that the slowdown is going to be quite as was inthe market fear december. vonnie: where you focused on for your client? are you more focused on earnings, or what the fed might reveal about intentions? guest: these minutes are very important. it is probably going to be one of the most important sets of minutes we seen in years because of this powell pause that occurred in january. ,nvestors really want to know is the next fed move going to be a titan or unease -- a tighten or an ease? obviously the market has become very excited about a potential ease in the future. guy: what does patient actually mean specifically? guest: just as the fed always said, they are going to be
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data-dependent. there were a lot of headwinds coming into the start of this year. they didn't have a lot of visibility. makeest thing to do was to that last tightening move in december and wait to see how the first quarter or even the first half of this year plays out. the interesting aspect is we could have looked at the situation as things were setting up in late november and said the fed was going to make that last hike, take a break, and probably the earliest move you see is in june. right now, obviously no one is really sure about anything. about the fedtalk being data dependent, i wonder what data they are actually looking at. are they coming from within the united states, or from outside the united states? guest: that is a great question because historically, the fed has tended to usually put a large preference on u.s.-based data. as i noted, the employment data has been great. obviously we had the weak retail
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sales number. we are going to see the early numbers in q1 not clean due to the government shutdown, so now what the fed is also doing is looking at data around the world. it is clear we are seeing a global slowdown. china's problems are well advertised. in europe seen collapses in industrial production. there is concern of a global slowdown going on, and that is going to weigh on the u.s. economy. vonnie: what are your statistics , thoughts or strategies right now? what has changed in the last few months? guest: i think the key here is financial conditions. this market has been driven by financial conditions ever since we went to this massive, accommodative monetary policy a decade ago. the past three years, you've seen the fed tighten and financial conditions get easier. earlier this month, chairman powell discussed the communication policy, and that they drive policy via communication through financial
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conditions. we went from the tightest environment in 20 months in december to testing our easiest financial conditions in almost five decades. again, that is leading to the equity market rally in financial market optimism, but again, it is not based on a fundamental outlook for the economy or earnings. vonnie: you have a global macro approach to things. where are you looking for specific opportunities? guest: i think right now, investors need to recognize this was more of a technical bounce in the market from a deeply oversold condition that was created in december. obviously the s&p has rallied almost 20% since christmas. i think investors need to take a step back and pause themselves to wait and see how things play out here. when we get a better idea of the fed today and see some more economic data come out, we will have a better idea if this rally really has legs or is a technical bounce that is
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probably going to stumble. guy: michael, is the u.s. curve going to invert anytime soon? guest: with policy where it is at now, we are not going to see that inversion anytime soon, but obviously we've seen in versions throughout different points of the curve. as long as that continues to persist, with the fed on pause, that is going to weigh on the financial sector and keep that group from really garnering any gains while this environment persists. dovish fed minutes today send the dollar higher or lower? guest: it should send it lower, but there's obviously a large expectation that these minutes should be dovish, and the dollar has held in there fairly well in this environment. the expectation is for dovish minutes, and over time that should lead to a weaker dollar. but again, i'm not keen on thinking the next move is going to be easier. if anything, i would expect
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monetary policy to be static for quite some time. vonnie: all right, michael. thank you very much. michael o'rourke, chief market strategist at jonestrading. let's check in on the bloomberg first word news. here's kailey leinz. kailey: in paris, ubs will have wasay $5 billion after it ruled that the bank help to stash funds in undeclared accounts. reportedly will visit japan in may to see the new emperor. that comes from the japanese tv network nhk. the current emperor will abdicate and be replaced by his son. meanwhile, president trump may finally get to deliver on his campaign promise to address china's management of its currency, but that would mean a reversal of an almost decade-long economic policy. bloomberg has learned the u.s. has asked skynet to keep its currency stable as part of a new trade deal -- has asked china to
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keep its currency stable as part of a new trade deal. in the u.k., three conservative members of parliament are walking away from the party. they plan to join a new independent group formed by former labour lawmakers. it probably does not affect the math to get theresa may's brexit deal through parliament. 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 kailey leinz. this is bloomberg. vonnie: thank you taylor:. -- thank you. next, we are going to be talking about the wall street movers. let's to get quick look at some of them right now. not making any major moves today, except for the nasdaq, up 2/10 of 1%. however, individual stocks are moving. 9%,health down almost southwest down 5.5%, and tesla, after erroneous tweets from musk again, down about 0.5%.
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star board getting involved with bny. bny also on the move today. this is bloomberg.
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vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's get a market update. let's get the details with abigail doolittle. abigail: very small moves for the major markets in the u.s.. fractionally, up for the second day in a row. the dax gaining far more in germany, up 7/10 of 1%.
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take a look at the emerging-market world index, up 1.4%, its best day in more than a month. this ahead of the release of the fomc minutes later today that will help explain the fed's abrupt policy shift last month. the fact that you have em rallying further out on the risk continuum means it may have a shelf life considering we have a bullish response. bonds pulling back just slightly. relative to that em bounce today, if we take a look at a chart in the bloomberg, it may last at least for a little while. this is a one year chart of that , and we see the long-term range more bearish, but above the 200 a moving average, the bulls really trying to take over. the longer-term chart suggests it could have more volatility ahead. on this day, let's take a look
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at some of the big movers for the s&p 500. garmin and devon energy both on pace for the best day since 2016. in foromes on garm beating earnings but when he 5%. devon energy -- up 25%. energy beating estimates. cvs health transitioning. southwest airlines down 5.7%, cutting their outlook on the government shutdown. here's a look at some of the big movers on the day. vonnie: let's talk about some of those movers in more detail now. abigail, thank you. we are joined by bloomberg's stocks editor and columnist dave
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wilson. are investors overreacting just a little bit? reporter: this is a problem in terms of a company as inquisitive as cvs. they start out with drugstores. they move into pharmacy management with caremark. then they move into omnicare with nursing homes and long-term care facilities. then they pick up aetna and move into health insurance. omnicare, the basic issue is that not as many people are staying in the long-term care facilities or nursing homes as the company had anticipated, so business is falling off. they've taken a $3.5 billion charge on the takeover already. now they are taking another $2.2 billion. it is a matter of the deal not going the way the company expected. when you have a company built on dealmaking, you have to ask are things going to work out going forward. the 2019 earnings forecast kind of cloudy as well.
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vonnie: so what is the strategy going forward? has there been one voiced? if not, is this ripe for some kind of activism move? guest: the challenge is putting all of these businesses together. they were able to do it with cvs and caremark. now you bring in this comp location in terms of aetna. how did he make the pieces fit? the track record suggests they may figure things out, but a lot needs to be done, especially when you're talking about a company the size of cvs health. guy: can we talk about bristol-myers for just a moment? star board wants to have board representation. they sent a notice to the company requesting this. my question is, what do they want? does it have to do with the celgene transaction? reporter: it does. they are trying to expand bristol-myers with this multibillion-dollar deal, and bring in a biotechnology
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side with celgene. that is a bigger question, what exactly is starboard after? you think about their past dealings, i thing about darden restaurants, really where starboard made their name, being able to dictate how the pasta was cooked in olive garden. it is a whole lot different than figuring out how to run a drug business. it will be interesting to get more of a sense of what exactly starboard is seeing in bristol-myers' business. it is a bit of a departure for them in terms of the industries they focused on the past. -- focused on in the past. guy: can we focus a little bit on the grocery sector? u.k. authorities are pouring cold water on this merger between sainsbury and asda, owned by walmart. how big a blow is this to walmart? it is a blow in the sense
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that they've had their struggles in the u.k. over the years. when you talk about the grocery business, you just got results from walmart yesterday, and in the u.s. the grocery business was doing just fine for them. it actually represents the bulk of their sales. it is something that brings people into the stores. they go and maybe they don't buy something other than groceries every time, but at least you have some built-in customer base that way. the challenge they now face in the u.k. is if this deal doesn't happen, what do they do with the business? that's got to be the concern here among investors. vonnie: southwest airlines mentioned the partial government shutdown. we haven't heard that in many earnings calls. it materially impacted revenue. can southwest bounce back? david: it is really a question of what the airline industry can do here. the concern is not unique to
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southwest come when you thing about tsa agents not coming to work ring that partial shutdown, southwest,g lines -- when you think about tsa agents not coming to work during that partial shutdown, and the long lines at checkpoints. they had anticipated revenue might be off as much as $15 million this quarter. now they are moving it to $60 million with much more of a sense of how the business got hurt. it is not just the lines we saw. travelers decided they weren't going to the airport. they weren't going to bother flying because they didn't what the hassle -- didn't want the hassle. that is what the industry is facing, and southwest representation of that puzzle. vonnie: taking the brunt of at least, the stock down 60% -- down almost 16%. guy: up next, we will talk about what is happening for brexit.
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we are down by around 2/10 of 1%. we've seen some defections from the conservative party to a new independent party. we will talk about that next. this is bloomberg.
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vonnie: live from new york, i'm vonnie quinn. guy: in london, i'm guy johnson. this is "bloomberg markets." time now for the muni moments. with bernie sanders and elizabeth warren coming out yesterday to address income inequality, how will investors react? let's find out. taylor riggs come over to you. taylor: i will get the answer from eric last, portfolio -- eric glass, portfolio manager at a uni income fund. how are you incorporating all of this into your muni impact portfolio?
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guest: first of all, think of her having me. we invest in underserved communities. as an impact investor, each one of our investments has a specific intention. when we are investing in education, we want to reduce the gaps between those who haven't have not. -- who have and have not. we want to make that community healthier, to increase effectively the life expectancy of people in that community, and in many cases for underserved life expectancy gap between high income zip codes and low income zip codes can be upwards of 20 to 30 years. taylor: so much impact investing has been sort of a double negative, what not to do. don't do tobacco, don't do gun stocks. how are you turning that into a
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positive, into a what are you doing? guest: historically, all of the huge numbers you hear are basically negative streams. one of the things that differentiates our product and sustainable platform as a whole is the fact that we are trying to be offensive and active with our impact. we are seeking out the impact we are trying to make. so we are just going to communities and saying, what are the needs you have? how can we help you in building those and partnering in terms of creating equity in the infrastructure and beyond? taylor: how are you also addressing the active versus passive debate? really everyone in bonds has gone passive. bonds rising really affects everyone. how are you making the case that active management should be addressed? guest: for sustainable investing, i you do it well --
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to do it well, i think you have to be active. you have to be engaged, get your hands dirty, really partner and engage with the entities you are investing with, be it you to civil or corporate -- be it municipal or corporate. for us, that helps us justify our fees. hopefully the performance will pay off over time. we really believe we identify value and mitigate risk. if we do that consistently over time, there's no reason why we shouldn't outperform. taylor: we will have to get you back on to talk about that outperformance. managerss, portfolio over at alliancebernstein. vonnie: thank you. it is time for our latest bloomberg business flash. shares of southwest are lower today. the discount carrier says the u.s. government partial shutdown will hit revenue harder than expected. southwest expects to lose $60 million in sales because of the
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shutdown, four to five times the original estimate. more turnover in the executive suite at tesla. general counsel is leaving after just two months on the job. the general counsel is a washington trial lawyer who represented elon musk last fall in his battle with the sec. he is returning full-time to his legal practice. that is your latest bloomberg business flash. shares fractionally higher now for the dow and s&p 500 come a much higher for the nasdaq, up 2/10 of 1%. in the s&p, leading declines are healthcare services and drug retail on the cvs outlook. this is bloomberg.
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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. ♪ guy: we are seeing a spike in the pound. the reason for that is a little bit of breaking news surrounding what is happening with brexit. according to bloomberg news and some commentary from the spanish government, a brexit accord,
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whatever that means, is currently being hammered out. theresa may is going to be visiting jean-claude juncker a little later on. look for a statement later this evening. geoffrey cox, the attorney general, is in brussels as well. david merritt joins us now on set. what do we know? what are we waiting for? david: this exclusive report, the spanish government saying there is some sort of new agreement being hashed out. we knew the negotiating teams were back at the table in brussels to come up with some new wording, some sort of addendum and legally binding change to the withdrawal agreement that is except it will to the british parliament. that is why geoffrey cox is there in brussels as the attorney general. it is his legal advice on this question of whether britain can be trapped indefinitely in this backstop and customs arrangement. think --hat they will they think will swing parliament enough.
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spain telling us there is progress being had. that is interesting because yesterday we had jean-claude juncker say we were getting nowhere, no clarity. we will hear from the prime minister after her meeting with mr. juncker about 7:00 this evening. is there going to be whitesmoke from that meeting? is there a new deal she can bring back to parliament, or just saying that we need more time? vonnie: the spanish former minister -- the spanish foreign minister saying this is in madrid while the others are in brussels, but i am sure he's being kept informed. what else are we hearing? is ireland saying anything about this? presumably it is the irish backstop being changed in some way. david: that's right. it is absolutely crucial. we had some headlines from the prime minister of ireland in the last few minutes as well saying that all of europe remains united behind ireland in their support for them, but also talking about the dangers of no deal.
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there is incentive on the european side, both ireland and the rest of the eu 27, to avoid no deal. that is what they are trying to hammer out. the agreement of the irish prime minister is going to be absolute crucial. guy: give me the -- given the arithmetic in the house of commons is changing because of the defections with this new party, what is may's tactic likely to be if she is able to get some sort of break room -- some sort of breakthrough? how quickly could we see those put to the house? david: as soon as next week we could get a vote. they have said that next wednesday is when we will get some sort of vote. is it going to be a broader motion like we had before, or another meaningful vote on the deal as revised, which we may learn fairly soon? but the arithmetic in the house of commons hasn't changed much. we had 11 mps resigning their parties and it wasn't mentioned at all between the prime
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minister and the leader of the opposition because it is almost so embarrassing for both of them that neither wanted to bring it up. but the people that left were never voting for this deal anyway, so it doesn't change the arithmetic of mrs. may getting her deal through. what it does show is that brexit is continuing to splinter the mold of british politics. we will have to watch for any other mps, or ministers in theresa may's on government, too quick to join this group. vonnie: the other substantial question that is really going to propel this into a hard out for a not hard out, i am just seeing reports for temporary infrastructure after brexit according to the irish euro minister. this is the first time i've seen anything regarding preparations being made for customs apparatus. does this mean there is movement
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on the part of the irish? up until now it has been that they can't and won't getting movement on the irish backstop. david: time is running out. that is the truth. whether it is government putting emergency plans, we are now just weeks away from brexit day, and was no movement on the political side, people are having to take matters into their own hands. devote next week in parliament really is being seen as a crunch moment. if we still don't have a deal parliament can pass, we are hearing talk about parliament wresting control of the process itself. that could mean delaying brexit, that could mean canceling it. we are really in the end stages of this process. that is why you are seeing movement on previously unshakable things, such as --ing to -- uncivil things unsinkable things, such as
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having -- unthinkable things, such as having these customs movement in ireland. guy: thank you. let's talk about the banking sector. start with ubs, being ordered to pay more than $5.1 billion after being found guilty of helping wealthy french clients stash funds in undeclared swiss accounts. joining us is bloombergs jim hurriedly -- bloomberg's jim hurriedly. this is interesting. it came up snake eyes. reporter: it sure did, and it is really going to put the pressure on their ceo. it was under his watch, the wasn't, butgdoing the decision to roll the dice was made during his time. aboutld have settled for $1 billion, and now they've been penalized far more.
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in dollar terms, $5.1 billion. is that the end now for ubs? reporter: ubs says they are going to appeal. vonnie: is this the end of this particular problem, or could there be more? the case ofght now tax dodging, every government in europe is probably looking at these private banks to see if they've got the same kind of alternative options as the french have taken. you know, we shall see. there's really no telling where these can pop up. guy: derivative of vonnie's question, are the banks watching to see how ubs was going to get on in this case, and potentially, as a result of which -- because the french have
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changed the way they allow settlements to work -- you may see banks saying i'm going to settle. reporter: right. they have taken an american-style approach to these white-collar crimes. banks across europe have been under the gun for trying to go around authorities. if france has taken a hard line, others might come to the table. vonnie: i want to transition to deutsche bank. executives there are still concerned that the trump organization might default on as much as $340 million of loans. senior echelons of management talked about extending repayments through 2025. they didn't want to have to go after a sitting president. they thought the optics of that would look very bad. what does this say about deutsche bank, any material repercussions for deutsche bank or the management? reporter: this is the kind of
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story that certainly no bank wants to be a part of, to have your internal deliberations about a client, a famous client, aired like this. it tells you, it is a canary in the coal mine, that deutsche bank is investigated by a few congressional committees. there is no tell what kind of headlines will be coming out about their relationship to donald trump, which is obviously of key interest to u.s. investigators. guy: let's quickly wrap up. we are kind of switchin stretchg around europe. swedbank is reportedly implicated in the danske bank scandal. is the market shooting first and asking questions later on this one?one -- later on this reporter: there is a swiss media report. that is where this came from. they are on record saying they have nothing to do with don and now with danske,
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there's this report of these suspicious accounts. guy: thank you very much indeed. rtlingerg's jim he covering the wide range of financial news today. vonnie: with the first word news, here's kailey leinz. putin: president vladimir signaled that russia will aim weapons at the u.s. if the u.s. uses weapons in europe after abandoning an arms treaty. 's speech mostly focused on improving living standards. president trump responding to a "new york times" report, tweeting that the report is fault and that the paper is "a true enemy of the people." they called mr. trump's campaign narrativeo create a of deep state enemies."
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fed minutes are being released today. last month, policymakers pledged to be patient on further readjustment. that backed away from december's statement about further gradual increases. when it comes to a crafting -- when it comes to attracting and retaining is this talent, no one does it better than d.c. did nation's capital rent first among 114 cities worldwide. washington was followed by copenhagen, oslo, vienna, and zurich. boston and new york also made the top 10. 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 kailey leinz. this is bloomberg. vonnie: thank you. coming up, shares of southwest are on the decline as the government shutdown and mechanical failures pile on. this is bloomberg.
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♪ guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." the government partial shutdown may be overcome a but the over, butngering -- the damage is lingering. southwest is investigating reasons why an unprecedented number of aircraft have been grounded for mechanical issues. southwest shares are down by almost 6% is now. jeff get to bloomberg's ferguson.
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-- george ferguson. could d partial government shutdown hit more carriers than southwest? reporter: we think this news from southwest today has something to do with the government shutdown and some of the effect on fares is due to the government shutdown. may use some carriers this as an excuse to knock down their guidance on gains for fares in q1. we guess there is probably a little bit of that inside this southwest news today. vonnie: $60 million doesn't sound all that substantial. put it into context for us. why should it have such an impact on investors? reporter: i think the investors are looking past just $60 million. i think investors are concerned there is too much capacity coming to the u.s. market this year, so they expect that this will persist. southwest it essentially knocks
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down their guidance by about 1% on fair gains for first q. i think investors seeing that through the rest of the market and probably persisting through the rest of the quarter, so investors think there is more coming. curious, outside of the united states, does southwest have a more retail tourist market, and is that more queues atle to business where as a they haveight decide to travel? reporter: if you are a southwest passenger, you may not have as many business class travelers to get around some of the security checkpoints. for sure, that probably has more
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of an effect. be as tuned may not into the government shutdown being over, and now they probably know right after government shutdown was fixed. that could have affected some of their bookings. leisure travelers book well ahead of travel. there shutdown of bookings may affect someone like southwest a little longer than primarily leisure airlines. vonnie: we didn't hear from some of the other u.s. airlines during the government shutdown. may be at the time that was the strategy. you put a good face out there and say things are going pretty smoothly. what other airlines will have been affected by this, or will use it as an excuse? american, delta? we've yet to hear from some of these. reporter: we expect most u.s. airlines won't see fares develop as well as they thought.
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they won't see the fair increases -- the fare increases they thought they would get. leisure may see a little more of an effect because leisure travelers don't have to travel. they are not going out for business, so companies like spirit, front tier could see more of an effect from this. frontier could see more of an effect from this. jetblue. guy: talk a little bit about air france klm. today theus, we saw first signs that maybe we are rapprochement between the dutch and the french. i am wondering if they can reform this business reporter: i think it's going to be pretty hard. some of the union rules and worker rules inside air france klm are pretty onerous.
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revenues looked ok. we still saw fares decreasing year-over-year. we know the french union, the pilots union just got increases. it is still a real challenge to manage some of these older, bigger carriers from europe. air france, lufthansa, iag. we think there's still a bunch of work to be done to make this airline really as profitable as other peers. guy: in terms of what is going to happen next, clearly the process is going to roll forward. i'm not sure you got a sense of what is happening at alitalia, but i have comments from the finance minister talking about this. the consolidation of the european airline space, when you look at the united states and what has happened in yield markets and what could happen in
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europe, how big is the gap right now? reporter: what we see is the european airline market space is a lot more fractured. we follow it very closely at bloomberg intelligence. my team follows european airlines all the time. it has a lot more countries that have national carriers or national champions ike alitalia that are in the marketplace, smaller than other competitors, not as motivated by profit, so they show out cheaper fares to try to take some market share, and really hurt the marketplace. we really see the europeans have even more of a challenge with too much capacity in the market because of those smaller players and because you see these larger , low-cost carriers trying to actively grab market share and knock out some of these competitors. we show you ryanair, growing quite fast. they've announced that fares will fall this year. their balance sheet is quite
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healthy, and they are really looking to knock out some of these weaker players and take market share. vonnie: bloomberg's george ferguson coming to us from princeton. thank you. guy: coming up next, back to the supermarket sector. sainssatlantic story, bury's deal with walmart owned asda looks like it is not going to happen. nsbury down by 16%. that is up next. this is bloomberg.
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♪ guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." the u.s. dollar fluctuating ahead of fomc minutes in a few hours. with me is president of blue line futures.
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if everything is in the minutes as we anticipated to be, being patient, changing the language in the balance sheet, so on, will be dollar move? guest: i think the dollar would ultimately weaken if it is in line with what we have seen. however, i don't think that is a case. i think the fed finds a bit of middle ground. historically, especially during the tightening cycle, they use the minutes and some of the meeting itself to really middle out the sentiment. i think if it became more dovish, i think the minutes .2 more of a middle ground, and really that could support the dollar. one of the things i am keeping an eye on is this run in gold. i think the fed metals it out again with these minutes today. wtiie: a little while ago, was down 1%. is this the continuing story
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as saudi and opec boost output cuts? guest: if you take crude itself and take away the global growth fears and focus on just crude oil, we are going into a seasonally bullish time of year for energies, and ultimately those drops in exports in saudi arabia, what is happening in venezuela, all of this is bullish for crude oil. and then you have a technical $55.50. above really this could target as high as $59. if it pulls back, crude will go with it. h from: bill baruc blue line futures, thank you. guy: sainsbury is our stock of the hour, plunging the most
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today since 2007 and trading at their lowest in almost a year. emma chandra is here with more. their merger with walmart owned asda, is it off? reporter: it seems like it is. the u.k. regulator came out with a provisional report that's seem to have attached much stricter conditions to the deal that had been anticipated, basically saying it would be bad for competition and would lead to higher prices for consumers, and then adding a lot of extra loopholes -- excuse me, extra opticals for asda -- obstacles sainsbury to get through. we may be looking at this deal collapsing.
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vonnie: asda is currently owned by walmart. does it have implications for walmart? it does. walmart stock actually falling today after getting a big boost yesterday from earnings. vonnie: all right. emma chandra with our stock of the hour, thank you for that. let's get a quick look at u.s. makers now and see if we are getting anymore movement. i guess everybody is waiting for the fed minutes. today, primary lagger down on was 9%. take a look at the white house today, a very white house. this is bloomberg. this isn't just any moving day.
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european trading day. from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: the stoxx 600 above the 200 day moving average. since thearkets up start of the year by about six tents of 1%. we'll await the fed minutes a little later -- 6/10 of 1%. we await the fed minutes. let's give you an idea of what is going on. the banking sector really and focus today. ubs trading down quite sharply as it loses a major court case in france. there will be an appeal, but nevertheless, this is a big blow to management. ubs down 3% now. 12.95%. trading down bein t

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