tv Bloomberg Markets European Close Bloomberg March 4, 2019 11:00am-12:00pm EST
trading day, i'm guy johnson. >> the european close on bloomberg markets. guy: let's look what's happening in europe right now. we definitely have an updeet tone. we started out in asia with the trade narrative the guide. stocks are up a little bit today which may tell you that these markets have already priced in in anticipation from the good news coming through that we will get a trade deal done. the president of the united states would like a cheaper dollar and he's not getting one today. the dollar is higher. e are up as you can see by .3%. and the euro we'll talk about that in a minute. and another factor that feeding through from what is happening with the china stuff and the more broad data story is that we have crude trading higher, up .41% today which seems as if
the opec story is bleeding through the markets and will be more broadly the positive trade narrative. on the other hand we've had some mixed data out of asia. the taiwanese data, the market is looking at the glass half ull story. vonny? vonny: in the u.s. we are seeing a nice bounce. the dow jones industrial average turned negative a few minutes ago. the s&p still holding on to some gains up two points as you can see right now. some good stories including the semis story, applied materials 3.7% and the best performer in the s&p 500 but western digital and others are performing as well. it remains to be seen where the semis can continue their outpacing run they started in january with the 30% gain to the group. and jp morgan is getting tired
of waiting for universal health services to turn itself around. and it cut its price target today and dropped it from its list and is down 1.9%. guy: the trade narrative front and center for these markets. it's one of the questions we've been kicking around at bloomberg certainly on the markets live blog. the question they've been debating is what is a trade truce word for global stocks? here's what some of our guests have had to say today on bloomberg. >> as long as trade volumes remain positive, we think a recession can be avoided but there's no greater threat to the global business cycle of trade. >> i think if there is really a trade deal that is really a eal, i think is more modern. >> i expect to see a balance but not a channel 15% global equity rally. >> the trade truce looks like it's extending and removing tariffs would be a major positive surprise, no question
about that. the other part that's positive from this is that we know that now this can't happen again and as a result of that we think of it the glass has been broken and doesn't get put back together again. guy: and here to discuss all of this is george bucky, the chief u.k. and european economist. nice to see you, george. george: hi. guy: if we were to see a trade truce between china and the united states, what would that mean for global economic growth? george: it will be difficult to put a number on it but will be positive. there are a lot of things going on in the world apart from trade which can also and will also be damaging growth, things like brexit concerns but on balance if you do get a trade deal, especially as one of the guests said before, if you get a trade deal which removes the tariffs, then of course it's going to look a lot more positive. sentiment is going to improve. and we already saw, for example, some data for example this morning from europe that showed the sentiment was
improving or at least bottoming out. i guess i'll answer the question whether it's just that trade deal which has done the damage. i think it's probably more than just trade issues which of course is a slow down in global growth. if you look at the growth rates between china and europe, those growth rates have fallen in trade substantially. and we're looking at trade growth running at, what, 40% a year ago and running at zero now. it's not just between u.s. and china where that problem has been. there's a lot of other things going on behind the scenes. guy: you talk about europe and one of the things that is clear is we have seen manufacturing slowing down as of late and i guess you can put some of that at the trade story. the e.c.b. will be delivering the staff projections on thursday, mario draghi will be delivering a press conference. in terms of how the e.c.b. would view this question, kind of how big a factor is this for the e.c.b., how big a factor is this for the euro zone? george: it will be important.
a lot of the weakness is baked in the cake, for instance. you've even 1.7% is what the e.c.b. thought g.d.p. would be in 2019 and it's going to be nothing like that. we're looking closer to 1% and the e.c.b. will reduce it to 1.3 and go as far as one but certainly there will be a meaningful reduction in the e.c.b. growth projections for this year and also for next year. i guess the big question when it comes to the e.c.b. projection is what do they do with 2021 inflation. how far do they reduce that because that's really the key indicator of that policy stance. what are they going to do in terms of lucent -- loosen policy further or how quick they may raise interest rates or how long the slowdown might persist in g.d.p. and inflation. a lot of that will be indicated by where they think inflation will be in the longer term and if they reduce that substantially, i think there will be other questions asked about what the e.c.b. might need to do to get inflation back to target because it just shows the confidence might be
stretching it a bit so the e.c.b. is confident in looking for inflation to get back to target any time soon at least. vonnie: what are the odds there needs to be another trto, george? george: it's very likely. your own survey even bloomberg survey showed that most economists were expecting i think 70% of the economists were expecting some sort of new loans to be announced. whether it be a targeted loan or nontargeted set of loans is questionable but i think it's very likely they'll have to do something. and also it's uncertain whether that would have to be this week or whether it might be later on. i suspect what we'll see on thursday is the e.c.b. giving a very clear indication that more loans are being considered or being actively considered but it might take until the april meeting which is what your survey is showing in terms of when they actually come to announce it. guy: george buckley will stay with us and talk about what is happening in the euro zone economy and get a focus of what is happening in the u.k. economy as well.
the geneva international auto show is getting underway and really kicks off tomorrow and is one of the biggest events in the global auto industry's calendar. joining us from geneva is linda jackson. she is the c.e.o. of the french carmaker citron. ms. jackson, can i start off with the conversation that we've just left which is one that is focused on trade? if we were to see a resolution globally to the trade tension we've seen between the united states and china and with the euro zone as well, what impact would that have on your usiness? >> of course would have an enormous effect. we export vehicles and import vehicles and sell over one million cars in a year. if we look at europe, at the moment we're forecasting a market in europe about stable. of course all those things could impact it dramatically. the world could change from one minute to the next so it's extremely important we have some sort of stability to be
able to do our business. so yes, it would have an enormous impact. guy: in terms of the way your business is developing in china right now, you have put a greater focus as a group on delivering more chinese growth, more indian growth as well. just walk me through what progress you are making. citroen is largely known as manufacturer of cars in europe and a manufacturer of cars that sells in europe. >> that's absolutely right. that's why we want to become more international and part of our strategy to become more international and strengthen our position in china which of course is the biggest automotive market in the world and also now we've announced we'll be going into india which is already a three million car market in terms of passenger cars. it's ultra important we get a managed portfolio between our regions and we're very strong in europe and showing enormous growth in europe, 5% in 2018 based on the new positioning and the new range as well and
now it's important that we use that positioning and go into and strengthen our position in china and of course go into india. so vitally important we get a balanced portfolio and not reliant on one region because you can of course manage your situation. vonnie: only so much you can do on your own and you're quite dependent on the umbrella company peugot-citroen as well and it's changed its exposure to sales with an acquisition. how is it impacting the citreon brand? linda: in terms of branding and in terms of our positioning and range of models it makes absolutely no difference because we're all complementary and the acquisition helps us in the back office because you have the economies of research and development and you are able to actually produce your cars in many different factories so we're able to get those economies that sell for
our vehicles and now we're selling over three million cars in the world so of course that is immensely important for us to spread the cost and be able to gain benefits in terms of cost efficiency and in this world which is extremely chaotic as we've already said, cost efficiency and agility is absolutely key and the acquisition of opal gives us the opportunity to be more cost efficient and be competitive in this very competitive automotive industry. vonnie: give us numbers, what are your hopes in terms of margins or sells for citroen for the year? linda: of course as i said, i sell over one million cars so clearly this year we want to sell more than that. we want to make sure that in europe we have a 5% market share which is what we think we deserve as part of citroen. i never like to quote numbers because who knows what the market will do. we know it's unstable but we want to grow our volume and believe 2019 is the year when we now have the full range, our
and have nd new c-3 the complete range to attack the market. we are up from last year in both january and february. we're doing well and of course we need to make sure we stabilize the situation in china in which we have done. guy: linda jackson, you're standing in front of a electric vehicle. how big a problem when you forward plan in terms of the availability of electric e.c.b. components, is europe's lack of capacity in this space, what need to happen? what need to happen in europe to give you enough batteries to make the kinds of cars you want? linda: of course as you know we're very reliant, every manufacturer is reliant on batteries coming from china so of course that's what we're looking to do is how do we develop, how can we move forward and try to find solution to that. i think there is a bigger question for society as well,
not just about the availability of the batteries but the availability of the infrastructure for our customers to charge their vehicles and very few people talk about that but if you think about it, if we're all going to be ending up in electric vehicles and we all want to charge them, we need to make sure that that infrastructure is available for us to be able to do that so of course the battery situation is one that we're all looking at as manufacturers in trying to find solutions to make sure that we've got availability but i think there's a bigger question about society and making sure that we've actually got the infrastructure to be able to support all of it going around in our electric cars. behind me is the concept which we developed as a concept. we're testing the market for urban mobility so that we know many, many cities are saying we've got to be 100% electric. we know parking is very difficult so we're making sure we want to test this with a concept that is saying ok, you've got mobility and freedom and liberty to be able to go into those cities and also you've got the liberty to be
able to have this car for as long as you may want it. guy: ms. jackson, one of the things you mentioned early on was scale. i wonder whether or not europe has -- is fighting this battle with one arm tied behind its back. do you think the anti-trust, the competition rules that exist in europe at the moment are going to prevent carmakers such as yourself getting together and providing the kind of facilities you need to build batteries to put in your cars? linda: i don't want to comment on the anti-trust laws but clearly what i do want to make sure is that i think we need to make sure that we find a way to find a solution to be able to help us get batteries, clearly. i don't want a spokesman of citreon talk about what the p.s.a. group is doing in terms of anti-trust. i think when it comes to the companies, it's more about the
agility and ability to find solutions that's most important but you're right, and i know you're focusing on the availability of batteries but i will return to the point i also think it's the availability of infrastructure as well. vonnie: linda, how are you modeling brexit into your plans? i know obviously opal has taken over the manufacturing of advance for citroen and that's being done in germany and a question mark over one of the umbrella group plans in liverpool. what does it mean for citreon itself and how are you contributing to the discussions on this? linda: of course it's a question for the p.s.a. group, as you know, what is the problem for all manufacturers including p.s.a. group and citreon and the instability, what we don't know will happen. for citreon, i import my vehicles to the u.k. and looking for something that's a no tariff and easy single market to be able to import my vehicles very easily into the u.k.
it's my fifth largest market so tremendously important for the growth of citreon. but of course we have a british brand which has been there since 1909 and as you quite rightly say we have a factory that produces our commercial vehicles for all the brand as ell as having a factory that produces foxall but we don't know what it will be and instability isn't helping us but the u.k. is a very important market so we need to be able to support our customers over there. vonnie: linda jackson, thank you for your time from the geneva international motor show. linda jackson, the c.e.o. of citreon. the battle over brexit and why teresa may is being accused to buy support for plans to leave the european union. this is bloomberg.
♪ vonnie: welcome. guy: i'm guy johnson. this is the european close on bloomberg markets. vonnie: the available markets starting in the green. we're erasing the gains here in the u.s. let's check on global movements with abigail doolittle. abigail: look at the dow with the highs early this morning up half a percent and down nearly .2%. not a small or big loss to the downside but nonetheless that reverse is a little worrisome perhaps when you consider the fact that stocks had been higher earlier on trade optimism. in fact philadelphia semiconductor, the chip so much a relationship with china there at the highs up 1% now just up
fractionally. we do continue to have gains thought ere energy and there was a buy from china and also soy beans are higher. if we look at the nats dack, -- nasdaq at the fade it's up 6.9% and now slightly lower, .2% and not a huge loss but a lot of market watchers have been wondering whether or not a trade deal would be sell the news event and this chart suggests it may be possible though we don't have an official trade deal. and if we look at a chart in the bloomberg of a greater than one-year look at the stocks the range in march well ahead of the other major averages, so a leading index at the top of an index, the r.s.i. is overbought suggesting we could see the chip sector pull back a bit more. on the day i mentioned we had outperformance. let's look at a few of those winners on the day for chips
and other winners, applied material and intel both rallying to some degree perhaps on the trade optimism. caterpillar and apple as well but with the fade we're seeing it will be interesting to see whether the stocks can hold on to their relatively big gains, guy. guy: yeah, sometimes it's worth top sizing the portfolio. this could be one of those moments. i wouldn't dare to judge. stay with us. george buckley, chief u.k. and european economist at numura. george, out of interest and this is one of the good reason tots talk to him, is one of the top four classes in the u.k. economy as determined by bloomberg news so you have a halo sitting above your head. the story of the markets the last few weeks have been one of pricing out a no deal brexit. the pound has rallied with reaction in guilt. is that the right kind of position to take at this point, do you think? george: to be honest, anything can happen with brexit. there are a whole wide array of possibilities. the bank of england, for
example, includes that wide array of possibilities within its forecast and takes an verage of three very different circumstances after brexit. i suspect all these options are still very much on the table including whether it be a no deal brexit, a brexit deal which looks similar to mrs. may's deal and we'll find out tuesday whether it passes or not and whether it be a extension or referendum or general election. the gapity of possibilities are on the -- gamut of possibilities are on the table. just a few months ago when you looked at the forecasters for what they're expecting 2019, the range of forecasters was tighter in 201 in terms of g.d.p. than had been in any of the previous years which is quite surprising. the economist, no one knows where this is going so much so that there are all sorts of congregating in the middle and just putting a forecast out which is middling 1.5% on economic growth which looks like trend.
guy: one of the question i wanted to ask about inventory. the u.k. has a lot of inventory because manufacturers and retailers, etc., everybody, even people under their stars are stockpiling goods. so i'm quite curious, if we get a delay of brexit and it may be a delay of brexit by three months or six months or nine months or may be 20 months, who knows. how do you model the inventory that exists in the u.k. at the moment? george: there's survey evidence on industries and we saw the end of next week the manufacturing and p.m.i. showed another highest ever inventory accumulation. and of course at some point that's got to stop either because we have a hard brexit and you simply can't bring on inventory or you don't need to because we've got a deal. and the question is how much you'll affect growth. it's not obvious this is going to add much to growth in the near term or take that much off thereafter. when you think about it, when you buy inventory, what are you
buying? european goods and if you're doing that, it's bringing in imports which reduces g.d.p. and likewise when it stops, the reversal happens. vonnie: quickly, when your clients come to you and say what am i supposed to do, how is the economy these days? where is inflation these days, what do you say to them? george: well, a lot is going to depend on what happens to brexit, of course. that's the obvious conclusion. if you have brexit with no deal, it's going to mean sterling is likely to fall from its current 130 or so against the dollar, possibly quite sharply and in that case that will push up inflation. if you have a no deal brexit which means we'll trade organization tariffs, that's going to add to it and also you might well see a limited supply of goods coming in because of q's at the board because of the shortages will push up inflation. it could be quite nasty. the bank of england thinks we could see 6.5% inflation over
germany. ad -- in spain and in germany. what we areing seeing in paris as well. let's show you the individual numbers. the ftse 100, 7133. 4/10 ofenths of 1%. -- 1%. pretty much flat on the dax. you have to wonder what that tells us about how the market has priced in this stuff. cac-40 is up 4/10 of 1%, but fading. and let's take a look at the individual names. aig is the worst-performing stock here in europe today. it is down by 4.58%. a cash flow story. the market is not like what it is hearing. aig which owns iberia, british airways, trading softer on that. emma brought up the story earlier.
lily in the united states delivering a generic version of one of their insulin drugs, half the price of the previous drug, as a result that is rebelling through into novo, which is largely diabetes. and we brought this to you in the last hour. stock bank is down, the moving sharply lower earlier on. this as we saw the broadcast of allegations which once again is ensnaring these nordic banks in scandals. volume has been like today. again, this euphoria theory that we should have had around, or we should have theoretically had around the trade story, that is not delivered when it comes to volume. the white line is where we are, the blue line is the 30 day moving average. that is a look at the european close. dollar,reaction in the
despite the president tweeting about the strength of the u.s. dollar at the weekend. it isllar ignoring that, at 96.74. the yield on the 10 year is at 2.70%. we heard earlier that it was in yields that we saw more reaction been in equities. and the rally is happening here in the united states as well. , 1287.11, well below the mark. crude oil is up 1.4%. back at 56.60 again. and let's look at other assets on the move. that includes oil and commodities that are moving in reaction to the trade data. and you can see all of the currencies weaker as well, also
on that report you are talking about, euro weaker by 4/10 of 1%. things were looking brighter in japan overnight and in asia more generally. themes we pick up on have been talking about. george buckley is doing this. he covers european economics. talk about the periphery, italy is the standout story that people are increasingly concerned about. the data is becoming more difficult. what we are getting is a budget concern driven not only from the markets, but also from the commission. how much of this is an economic slowdown feeding through the economic stable lasers, boosting that -- the stabilizers, boosting that, and how much is down to what rome is delivering or not delivering? george: a standout story for the wrong reasons.
look at the autumn of last year and the big concern was about discretionary fiscal easing the government was intending on delivering. to some extent that has been partly resolved. the european commission has been happy with what italy has offered, which is a deficit around 2%. the problem is the european commission does not really by that. they think the deficit will be more like 3%. that is on the basis of gdp expanding in 2019, which looks unlikely at the moment. if due to be contracts, then you are looking at a deficit, because of the automatic stabilizers. you are looking at maybe 4% by the end of 2019, or the end of 2020, as opposed to 3% the european commission thinks it will be. the automatic stabilizers could push it up. guy: the french finance minister was kind of vocalizing something the other day, which you could get a contagion effect. an italianmean
recession into the rest of the eurozone. what is behind the fear? george: you can understand, because in spain you have a level of debt to gdp which is pretty high, 100%. if you worry about spain, you should equally be worried about france, because france has around about the cinema for gdp, and about the same growth, or may be lower than in spain. and it has a deficit, which because of the protests, it will probably be higher than in spain. the worry about spain is the election, likely to produce a parliament which is very fractured and does not resolve issues, like the passing of the budget. and that will lead to higher spending, which is also a problem. the one good thing about spain, which could limit the contagion, is spain will run at a higher
growth pace than italy. that is beneficial for spain, because it could run higher deficits and still reduce levels of debt. vonnie: how closely are you watching who will become the next head of the ecb? does it matter for european monetary policy at this point? george: i think we are watching it closely, indeed. we will not know until the middle the year, after the european parliamentarian elections who gets what job. there are big jobs on offer in europe. the question the markets are asking, is it going to be mr. weidmann or somebody else? -- even if it is mr. wideman vitamin -- be mr. weidmann, there are many central banks that will not allow him get away with what he wants to get away with. they were not allow the ecb policy. the european economy is not in a state which would allow tighter
monetary policy. and i think the question is whether the next move from the ecb is one of easing or tightening. either it will be tightening or easing, we thought tightening, but now we think it will not happen until the middle of next year. it will be quite some time. do not think it is in the ability of mr. wideman -- of mr. weidmann to do with that what he wishes. vonnie: with yields so low, how high can the u.s. 10 year treasury yield go this year? george: that will depend on ive seen some people -- on -- have seen some people say there will be if you rate cuts last year is the markets are thinking that is a possibility. when you consider the fact that the fed is looking at an economy which is likely to slow, there are very few forecasts which see
the u.s. economy getting stronger, most are for it this low from this point. trade may not be as big a problem. but also because of the fiscal impulse, which will not be near as strong next year, so everyone is expecting we was a slower growth next year and that could put a cap on 10 year treasuries. vonnie: thank you for joining us. guy: vonnie, let's talk about greece. the country is expected to be back in the bond market tomorrow. this after moody's upgraded greece on friday. set.uest joins us on is the pdma going to be back in the markets tomorrow? and if it is, give us a sense of realistically what demand it looks like for greek debt? >> i think you can expect a
pretty firm demand, because more isn anything else greece not coming into the market in real need of money, they are trying to improve financial buffers and it sent a message saying, all is good with graceece, we have turned a corner. i think they are looking to raise about 2.5 billion euros and i would not be surprised if it was four or five times that. vonnie: greece trying to take advantage of this lower cost of capital. how much can it sell, what is the appetite for bonds from countries like greece at the moment. ? ? ven: there is a pretty good appetite among investors. country after country has come out in the euro area this year issuing bonds and each one has pretty much been oversubscribed. in the case of greece, we have
seen those come off from very high levels, to just about 3.65% on the 10 year, which is pretty good considering it is still rated junk. all that shows that there is no tension in the market, there is no stretch for investors, and they are thinking, here is an economy on the mend. they seem to be delivering on the reform front. message,ms to be the the message is very positive, so you would expect a man to be firm. guy: in terms of the andtionship between greece the rest of the eurozone, it is greece's turn. ven: it is a contrast of the two economies in the eurozone. italy is going to have one of your 30% of gdp.
you look at the contrast in economies. you look at the greek economy, 200 billion. 3 trillion in italy. to us it shows that the increase is one ratings upgrade from moody's, but it is within junk territory and it shows the euphoria that even a nation like greece, which was a basket case a few years ago, has done in terms of reform work that they have done. it shows investors piling into the debt. guy: amazing. ven, great reporting. vonnie: let's check in on first word news. courtney: let me get you caught up. the u.s. and china closing in on a trade deal that could end u.s. tariffs. it depends on beijing following buying more products.
according to the wall street journal, 10 has offered to lower tariffs on u.s. foreign products and cars. china will use a $90 billion tax cut to help boost the economy. bloomberg has learned to china will cut the value added tax that covers manufacturing by three percentage points. and that move will help corporate profit at a time when the economy is under pressure from the u.s. trade standoff and the debt cleanup. the house judiciary committee is expanding its russia investigation. the panel is asking for documents from more than 60 people in the trump administration, family and business. the chairman of the panel says, "it is very clear that president trump obstructed justice." global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. guy? guy: thank you so much. we have wrapped up european equity market trading. we are through the auction process. let's give you the numbers. the ftse 100 down a tiny bit.
dax a little bit more down, down about 1%. cac-40 is flat. dax down, but i think the message to take away was that the early euphoria, which we saw in chinese equities, was fated during the european -- faded during the european session. if you're in the car, do not forget to tune into digital radio, the bloomberg channel. at the top of the hour you will find "the cable" show with a jon ferro in new york, i will join him in london. and it is of course -- is, of course, on all your bloomberg devices. this is bloomberg. ♪
guy johnson. vonnie: and in new york, i'm vonnie quinn. this is the "european close." the mining board has rebuffed a proposal that would have created the largest gold producer. during goldberg weighing in. exposeir of would shareholders to risky assets, and there is a better way to do that through a joint venture that could deliver the value of our synergies through nevada operations. vonnie: we will go to danielle for a report from toronto. the story continues to entertain in a way. the idea of a merger is not closed off yet, is it? danielle: newmont has come back and they have absolutely rejected the offer that barrick made, which was unsolicited, $17.8 billion offer.
telegraphed, i do not think anybody expected them to come back with great approval, but they took it to the board. today, they have officially rejected that. what they think is a better idea would be to see some sort of joint venture in nevada between newmont and barrick. they have assets that could join in nevada. they say that would make sense. they want to move forward with their own $10 billion takeover for goldcorp. what happened is barrick came in with one massive offer, newmont came back and is said, no thank you, but let's stick to our old offer, plus we are adding this extra thing. guy: how important are the people involved? this is turning quite ferocious. was to succeed, does he have to get rid of management completely on the other side? how does it work?
danielle: it is difficult to imagine how the two sides could sit down to get a joint venture. you cannot even get clarity on how much effort has been made in the past. gary goldberg said they have not been able to figure out what the synergies are, because they have never had a proper discussion about that. he blames, in a hostile string of rhetoric, he blames barrick for that. he said he has reached out many times. barrick says they have reached out to newmont and have been rebuffed. i did interview gary goldberg, and the coo, who will be taking over later this year. and tom palmer, the coo, said he will be leading any discussions on the jz. side. i asked if gary goldberg would be at the table. he said having reasonable people
at the table will be critical. vonnie: daniel, we will be back with you no doubt during the week. danielle in toronto. guy: time for our stock of the hour. airlines hawaiian having their worst day in three months, down 9%, 9.5%. why? southwest will start offering interisland flights. kailey leinz has more. was this a surprise? kailey: maybe. southwest announced last week that they got approval to do the hawaiian flights. this morning, they said that those will begin on march 17, and that interisland flights will begin next month. that is the key issue for hawaiian. per have more flights day than texas. and it is considered more profitable, thought to be more profitable. and hawaiian airlines, that is
22% of their revenue from the interisland flights, not a place where they want to see a threat. and deutsche bank downgraded the shares because of the impact that southwest could have on their profit margins. vonnie: 6500 flights a day, does car mean -- major riers? kailey: historically it has only been one that has come in to try to take flight away. but this comes at a time when tours of hawaii are going down. they expect growth to really slow. so to have this increased competition at a time where maybe you have less customers, that could put double the pressure on hawaiian airlines. vonnie: ok, thank you. that was our stock of the hour. and it is time for the latest bloomberg business flash, a look at some of the biggest stories right now.
offering a clarification from , theer on our disney case target compensation for bob iger's will be there to $5 million after a deal with 21st century fox. 28% less than the initial $40.5 million target. the company did not provide a reason for the change. and we have been speaking with the ceo of audi. he says he is optimistic the company will be able to compensate for a slowdown in the chinese market. >> we see a slowdown, although the premium market is slowing down less than the bigger market. it is a matter of margins. i'm in optimistic guy. we also have to be realistic. it local down a little bit, nobody knows -- it will cool down a little bit, never knows how far it will go down. but we see a possibly of market share gains. vonnie: that is your latest bloomberg business flash. this is bloomberg.
guy: it is time for our global battle of the charts. you can find them on your bloomberg by writing gtv -- by running gtv . here is edward ludlow. edward: i want to introduce you to the bloomberg barometer, the custom dataset that looks at private technology companies and of the funding environment in the u.s. volume, equal weight to exit and first time financing. 2019 has been an incredible start to the tech community. we have had nine successive weeks of gains. and pinterest, uber, close mates -- post mates, different ip is this year, it will be interesting to see how this ways on the index. the data has shown volume
driving and it higher at the start of the year. it was mentioned on friday, the last time this deal volume activity was here was 2007. i what the present this chart as an alternate dataset when following the economic cycle. we talk about fundamentals, but look at the funding environment and see if this could be a key chart to watch in 2019. gtv . guy: cracking chart. shows china,art talking about china stocks into the emerging market index, helping flows into china stocks, but as it can see a right about the beginning of the year china started to pull away from the s&p 500. that is about a 10% difference or so. we were asking the question earlier, by how much could we see china appreciate relative to the s&p 500 and others earlier
on. i'm not sure that is something anybody is willing to postulate, but we can ask if china will continue to outperform. and you can look at that on the chart at gtv . guy: the performance of china has delivered thus far. it has everybody talking. the flows out of hong kong into mainland china is part of a story on bloomberg. i will give it to edward ludlow. i think the datasets is something the market relies on and talks about. so today edward wins. lance of power." this is bloomberg. ♪
kevin brief today, cirilli from washington on prospects for a trade deal. we also go to washington for a presidential bid. and more on juan guaido's return to venezuela. can become a good to have you back. explain where we are -- kevin, good to have you back. explain where we are on trade. kevin: the domestic template addedast week has put pressure on the president to deliver some type of deal with the chinese. we are getting reports, including across the terminal, that there could be a possible u.s.-china deal that would lower tariffs on autos and other products. china would buy $18 billion or the products. and i was texting with sources in the business community in washington, who were very relieved the presiden