tv Bloomberg Markets European Open Bloomberg March 12, 2019 12:00pm-1:00pm EDT
european trading day. from london headquarters i'm guy , johnson. vonnie: in new york, i'm vonnie quinn. this is the "european close." guy: we have two big stories dominating the side of the atlantic, one of them is what is happening with the pound. a dip earlier on. this is the brexit story we are covering. the pound is under pressure, recovering early losses. banks flat now, down by 4/10 of 1%. and the dip came earlier on as the attorney general said he could not change his advice on the irish backstop. this has proven so troublesome to the brexit process. this has had an effect on british stocks. the ftse 100 is outperforming by european peer group, up 3/10 of 1% and the stoxx 600 is absolutely flat. lower, it is trading
makes engines for the boeing 737 max 8. this is following the ban we have seen in the ok of the boeing 737 max 8, with norwegian air shuttle down. higher the s&p 500 is with some micro-stories in the news. boeing is the major one as it continues to be on the decline, down 6.3%. the president tweeting about airlines, and then a cascade of countries and agencies and other airlines saying that they will ground in the boeing 737 max 8. but not the faa, which it says it is airworthy. that stock is one to keep an eye on, along with other airlines, including united, continental and american airlines. worst networks is the performer in the s&p 500, downgraded on a recent acquisition, not pleasing to the street. and i thought it would point out wells fargo, not much movement,
but on capitol hill there is a lot of tackling and parrying as tim sloan answers questions from the representatives, maybe going over old ground, but he has found himself defending wells fargo and its behavior in the last couple years once again. guy: we have talked about brexit. theresa may could face defeat today of her brexit strategy. the dup, the irish unionist party that supports her government is rejecting the revised terms she secured a last night. for the latest -- secured last night. for the latest we are joining in our analysts. she will lose, the question is by how much. >> the indication we have on the mp's who have come out to say they are against the deal, it is looking like another heavy defeat, perhaps not on the record level she suffered in
january, but it does look to be a heavy defeat as things stand. the next big announcement will be the so-called european research group caucus, the pre-brexit caucus in her party. they will make an announcement about 5:00 p.m. on which way they will vote. that is something that we shift things quite dramatically. deal is it big of a that the dup is now also coming in with a hard-line brexiteers, saying this is not enough? stuart: that is a fundamental factor this morning, that even a lot of conservative party lawmakers were waiting to take their cue from the northern irish dup party, so therefore the dup having said that they are not happy with the terms of the revised with a drawl agreement, the revised brexit deal, the dup saying that has
influenced a lot of lawmakers in her party. guy: what happens next? if she loses big tonight, walk me through the next couple days. and the big question, will she be leading the conservative party going forward? stuart: it was a question that was put to jay a few minutes ago, will may retain the support of the conservative party, even if the vote goes against her tonight -- the answer was issue will. but it has been said over several years, over the last couple years that she has been bouncing from crisis to crisis. and it is fair to say that this afternoon, in the atmosphere in the houses of parliament, in the scale of defeat she has faced, her position has probably never been this precarious. but with that said, you know, it is very hard to predict when there will be a tipping point that she will not hold the
support of the parliament, or of her party first. we will have to see tomorrow. as it stands, the government is committed to holding a vote, first on a no deal brexit, and secondly on a delayed brexit, if the deal does not go through. the government is committed to holding those votes. vonnie: what will be the view from europe? obviously, europe will not comment until after the vote, but there must be huge disappointment at the european commission level. after all, the lawmakers did meet theresa may halfway once again, even if the changes were not substantial, they still said, ok, but the word unilateral in there and we will go along with changes. it looks like it was all for nothing in the end. stuart: i think from the perspective of the european union, they will not feel like they have compromised too much on the deal, since it was first
agreed between the two parties. having said that, they have held the discussions, they feel like they have gone the extra mile in terms of trying to help theresa may get this deal through. if it doesn't go through tonight, the question is, can theresa may go back and try to negotiate again. the signs are that the eu will refuse to do that. there is an eu summit at the end of the month, that could provide the last opportunity. but as things are, the eu has said this is the end of the road in terms of negotiations. guy: we will leave it there. thank you very much indeed. we will have a great deal of coverage on that throughout the day. vonnie: absolutely. and we should check the british pound. i know we did at the open. we are trading at 1.30 88. now first word news with mark crumpton.
mark: it is the biggest blow yet max in theng 737 wake of a crash in ethiopia. the ok has banned -- the ok has banned flights using the jets. other countries have taken similar steps. questions have been raised on the jet after it second crash in five months. -- attorney general jeff cox geoffrey cox has dealt a blow to the new brexit deal. he says the risk of the irish backstop is unchanged, meaning the u.k. could be stuck in an arrangement. the lawyers working for pre-brexit that pre-brexit recommended rejecting the deal. democratic unionist party also says there has not been sufficient progress. and a you and humanitarian agency is saying that thousands caught ind, fighting between warring factions. airstrikes by the saudi led coalition, fighting on behalf of
yemen's internationally recognized government, have killed 22 people, including children. more than 60,000 people have died in yemen's civil war and 3 million have been displaced. still no official word from joe biden about whether he will run for president in 2020. speaking to a meeting of the firefighters today, he hinted at an upcoming announcement. he told the key labor allied he may need their energy "in a few weeks." it would be his third run for the white house. 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 mark crumpton. guy? --: vonnie: thank you. wells fargo not moving much now, but tim sloan is on capitol hill facing questions from both sides of the aisle. and defending wells fargo. maxine waters said that wells fargo is too big to manage. and lawmakers want to know what
as we look at the major averages is downwill see the dow and the s&p 500 is up, just a little bit. we also have the stoxx 600 down, a bit of a haven bid, although the stocks are not moving much. this after yesterday being the best rally in five weeks. while that followed the worst week of the year. uncertainty on the part of investors. however, where we have a solid bid, the bloomberg commodity index is up and on pace for its best day in three weeks. that is a risk asset, so there is a bit of a risk bid there. and individual commodities are rallying. on pays for its best day since july of last year. copper is also higher, along with platinum and oil. investors are going into these with the expectation of a stronger economy, not quite matching the smaller moves in stocks, but again we had a big rally yesterday. and boeing,wn for another day, down for seven
days in a row. but the last two days, take a look at the big declines, the worst two days since june of 2009, the fallout of that tragic crash of the ethiopian airlines 737, as a number of countries ground that plane. just in the last few hours, the u.k., germany and ireland. vonnie: thank you. has ralliedindex 15% this year, but still down 15% year-over-year. today, i spoke with prosperity and shares ceo about this 6000 original financials at the capital markets financial institutions conference in new york. >> we have done over 40 deals. i tell everybody 38 of them were great. so you do not remember -- you only remember the ones that do
not work out so good. we we are in m&a. we have not done it for quite some time. after the suntrust acquisition, i do not know, i feel like all the investment bankers went home and took the energy c drake, drink, -- brink, an -- they are all hyped up. and i do not know if i've ever seen it where everybody is talking in considering doing mergers, how it is now. we are definitely in the m&a game. vonnie: would you consider being acquired, would that be something possible? david: as a bigger shareholder of the company, you can buy me, or i can buy you, it does not matter. we definitely look at what values to the shareholder more than anything else. vonnie: there are $22 billion in total assets, the stock at an all-time high, where do you go from here?
how do you grow? david: for us, when you are a publicly traded company, you cannot stay where you are at. either you have to grow or get out of the business, so we are looking to grow organically. we have a very low positive ratio, 60%, or as some banks are at 90%, so we are looking at taking more money out of our bond portfolio and putting it into loans, that helps us from an earnings standpoint and it helps us with new accounts. and we will continue to acquire. and we will be an acquirer, no question. vonnie: i continued the conversation. that was david zalman. also at the conference was the bankunited ceo with branches in miami and new york. he talked about obstacles to m&a and the acquirer's stock price. >> expansion has been 10 years
in the making, that was adjust at some point it will come to an end, so we always worry about that. there is a fair amount of geopolitical concerns. not that things impact us directly, but indirectly. there is still a lot of noise about what happens with china and trade policy. and there are other geopolitical issues, which could impact the economy. we are going into an election year next year, that will raise the temperature on that front. and the fed's policy of tightening over the last three years now has had an impact. it looks like they are on pause, but if they tighten more there is a probability that will cause stress in the economy. vonnie: you are in three markets, the south florida market, also in new york competing against the majors, and nationally as well. what are the risks associated with competing on those levels? >> we are in the best market in
the country, manhattan and miami, they are vibrant markets that are doing really well. manhattan never really went through a downturn in 2008 and 2009. miami did, but it has been such a rebound story. nationally, we do some business in certain lending across the country, but we are not seeing signs of weaknesses. where the weakness might be, we are not players there. a couple years ago there was stress in energy sector, today stress in the agricultural sector, given the tariff issues with china, but for the most part 95% of the lending landscape is looking very healthy. and our market looks strong. vonnie: potentially a big year for consolidation, who buys and who gets bought? >> so, there are always a 6000 i do in america, which is,
not think there is any country with 6000 banks. that have to do with the way that banking was and the consolidation game started in the mid-1980's and it has been going on. since the downturn, consolidation did slow down for a number of reasons. there is still a very strong case to make for more consolidation in the industry, however, if you look over the last few years the deals that have happened have not been -- by shareholders. look at the stock price performance of acquiring banks of the last three years with the deals over $1 billion, almost everyone of them is lagging. two deals were announced this year and they were different kinds of deals, not acquisitions but moe's for mergers of equals. and the stock performance of the buyer has been surprisingly, well, not surprisingly, it has been very good. there has been a lot of talk about that being the new model for m&a. i'm not too eager to call that
the new model because those deals are especially hard to pull off the day after you announced them. but that is something that could fuel more m&a over the course of the next couple years. vonnie: are you saying you are not looking to acquire? >> while m&a is always on the table, it is a secondary strategy. our primary focus is on organic growth. if you can build it, do not buy it. be patient, do not use shareholder capital just together quickly, be patient and build it. vonnie: would you be open to being acquired? >> we are a public company and we are always there. vonnie: that was my conversation with mr. singh. it looks like it might be a big year for consolidation. guy: nice interviews. really interesting. and talk about what is happening right know the british pound, what is going on with the brexit process. lower, it's nudging
way to after we got advice on the backstop, the irish backstop from the attorney general. mr. cox saying he could not change of that legal advice. it is just beginning to roll over. the key votes will start at 7:00 p.m. this evening london time. london only separated by new york -- from new york by four hours. runningll be a top live to give you everything you need, plus plenty of coverage from westminster. this is bloomberg. ♪
7:00 p.m. this evening. if they reject the deal, how will the markets react? the head of investment strategy at rbc wealth management joins us. good afternoon. it is likely that theresa may is likely to be defeated this evening and it is likely that we will get a delay in the brexit process, more uncertainty for u.k. assets. what do i do if i want to invest in the ok, do i wait? what is the strategy? >> we think that a delay in brexit would be positive for the currency, and for risk assets in the short-term. clearly, the uncertainty would remain. it does not mean that no deal would be off the table completely, but in terms of voting and the cliff's edge, we think there would be a relief. guy: if we get a general election, how would that change things? >> that is a lot of unknowns.
we believe that a lot of uncertainty is discounted particularly in equities come if you look at valuations -- in equities, if you look at valuations, the u.k. equities are trading at quite a steep discount. the dividend yield of 4.5% on the auto share index is really elevated compared to history. you have to go back to the financial crisis to see a yield that high. so in our view a law is discounted. now, the more delays we have, potentially the software that brexit is, that could be interpreted that way. but it is a fluid situation with a lot of uncertainty. vonnie: what is your base case for brexit? que: the best case scenario is we will have a delay, that we will have these three votes this week, a deal
would be rejected and at the house would vote to take no deal off the table and there would be some kind of delay to brexit. a lot will depend on the margin of defeat. if it is really small, it could be that the prime minister can continue with her strategy. however, if the margin of defeat is very wide, there could be a change of scenario. we will have to see whether there will be a consensus, which they will present an alternative, a customs union, perhaps a second referendum. there are a lot of things in the air at the moment. guy: we will carry on our conversation. you will stay with us. we also need to talk about what is going on in europe. 130.86,starting at trading in a tight range. let's check the u.s. markets as
we head toward the halfway point of the trading day, with the dow down a quarter of a percent, this primarily on boeing, which is the second worst performer in the s&p 500, which itself is up 4/10 of 1%. this on better news from chipotle and carmax. guy: we are just three minutes away from the end of regular trading in europe and equities have not gone anywhere today. thre is a boeing -- there is a billing rate across. norwegian shuttle under pressure. and safran is under pressure. the european market outperforming a little bit today. this is bloomberg. ♪ want more from your entertainment experience?
just say teach me more. into your xfinity voice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should.
-- grounding the boeing 737 max. let's get back to the stock story, it is related to that boeing news. the ftse 100, dax and cac 40 trading differently. the ftse 100 is higher. the story off the lower pound, driven lower by the attorney general, on his advice that the irish backstop, that the story around it has not changed. dax trading lower. we will hear from matt miller later on about numbers from vw, the margins being squeezed, but the company investing aggressively is raising targets. and the cac 40 trading higher by 2/10 of 1%. let's talk about boeing, the impact it is having here in europe. theitalians grounding boeing 737 max. they have also been banned out
of u.k. airspace. that is having an effect. and easyjet is trading higher, they operate an all airbus fleet a321's.0's and some of its competition does fly and it will37 max's be impacted. norwegian has a big boeing fleet. safran is under pressure. it is half of the engine of enginee that -- alliance that makes of the engines for the boeing 737 max. safran trading down a little bit. is now migrating into aviation stocks. volume was light yesterday,
today we are bang on the money in terms of the 30 day average. so volume is looking well supported after a quiet start to the week yesterday, now picking up the pace. that is a look at the european close. vonnie: we have a new regulator, the fta will be headed up by the national cancer institute's head. that is after scott -- was out at the fda. the nasdaq biotechnology index is soaring on the news, up 1%. head of the acting food and drug demonstration. the s&p 500 is up. companies are doing well, including chipotle, up 3% today and now the nasdaq is up two thirds of 1%. just as the dow continues to stay lower, it is the laggard today, all thanks to boeing, which is seeing airlines and
countries ground its aircraft. but there are two holdouts. the faa has said that the aircraft is airworthy. and southwest airlines also saying it is standing behind the aircraft. southwest has 34 of them in service. guy: let's talk about what is happening with the economy more broadly around the world. we have frederique carrier still with us. we talked about brexit. in some ways, this stories -- the stories coming out of europe are related. we are looking at things in france, germany, italy, very sharp economic slowdowns. my question is, did mario draghi do enough to deal with that issue last thursday? frederique: there can be signs of a slowdown. for europe, we have had the global trade slowdown since last year, and we have had a run-up
with protests, climate change, weather patterns of that impacted germany -- some of these will diminish. the global economy itself is slower it for a region like europe, a big exporter, it is a challenge. it seems like mario draghi acted decisively last week. he used a lot of the ammunition that most expected him to use, brought it back forward, and it is an important liquidity injection. between the support for the economy, between also the runoffs receding, we would expect economic activity expansion to reassert itself later in the year, not in the next few months, but later on. that is his view, he does not see things reversing, the expansion, but mostly a slowing patch for now. much will depend on the global, the global economy itself. guy: you spoke about the fact
that yields in the u.k. are high relative to history. what is the picture in europe? because we hear a lot from u.s. investors about how high the bar is now to invest in europe. they have been bitten so many times that they are not shy. why should they bother investing in this side of the atlantic, with the u.s. market is doing well into the chinese market is absolutely roaring? frederique: it is a complex region to invest in, 28 countries together, it is difficult to get your head around that compared to one country. we have sympathy for that. having said that, they are -- there are things that are excellent, like health care, industrials, which are difficult to replicate in other regions. and where there is good value, we think that they are interesting opportunities for investors. vonnie: but what happens if
tariffs are put on auto exports by the u.s., is your case based on that not happening? frederique: we are hopeful in this instance that this will be defused. facing one country slower economic prospects. they know how much is at stake. and we feel that in the u.s. they -- there is not as much support for being -- versus europe as there is maybe compared to china. so we think that even chile both parties -- that at some point both parties will work something out. if not, that will be another headwind. vonnie: does europe find itself alone in the wto, not alone obviously, but the biggest inyer in the wto and also these unilateral trade agreements, in say five or 10
years, that will make it difficult for europe to, you know, to be part of trading agreements? frederique: we do not see it like that. if you look auto experts, go back to the issue, there is a large portion of cars already manufactured in mexico come in the u.s., and -- in mexico, in the u.s. and in canada. guy: one final quick question, investors underinvested in china right now? frederique: that is difficult to say. probably more of a neutral view inchina, neutral weight china rather than underweight. we see difficult prospects for china in the short-term, so we know that there is a slow down. and a lot of earnings are being
downgraded at the moment with valuations really not so attractive, so more of a neutral positioning from our point of view. guy: it is good to see you. thank you very much. frederique carrier from rbc wealth management. thank you very much indeed. vonnie: now first word news. mark: a team of u.s. aviation experts has arrived in ethiopia to join the investigation into sunday's crash of an ethiopian airlines jet. a crash to six minutes into a flight to nairobi, killing 157 people. several countries and airlines have grounded the new boeing 737 max 8 jetline as a result. a similar lion air plane crash in october killed 189 people. the ethiopian airlines says it will take five days to identify all victims. pakistan's foreign says that progress has been made during peace talks in qatar between the
taliban and the united states. the u.s. asked pakistan to assist in efforts to find peace with the taliban to end the longest war in american history. the taliban refused to negotiate with afghanistan, which is not taking part in the talks. and the iranian president met political parties and religious leaders today during a second day of his visit to the country. he stressed enhancing bilateral relations, saying the two countries assured "endeavor to deepen cooperation in different fields." the iranian leader arrived in baghdad on monday, marking his first official visit to the nation that tehran once fought against, and later backed in the battle with the islamic state. a memorandum of understanding was reportedly signed on monday. lori locklinresses and felicity huffman are among at least 40 people charged in a sweeping college admissions
bribery case unsealed in federal court. the conspiracy charges unveiled today were also brought against college coaches at schools including wake forest, georgetown and the university of southern california. authorities say that the coaches accepted bribes in exchange for admitting students as athletes, regardless of their ability. 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 mark crumpton. this is bloomberg. back to you. guy: thank you very much indeed. let's take a look at where the european stocks have a finished. take a look at the settlement numbers. we saw a dip, london trading software as a result of that, down by just a touch during the auction, finishing up by 3/10 of 1%. the cac softening up also. and if you are done, getting in
your car and driving home, as i am sure you are aware it will be a busy evening for financial markets. make sure that you stay tuned into what is happening. you will be able to listen to "the cable" show at the top of the hour, live on digital radio and on all of your bloomberg devices. this is bloomberg. ♪
have theere and we same outlook to keep profitability at this level. guy: this is a huge pivot underway. industrial in our reporter who joins us from munich. oliver, vw upping the targets of electric cars. this is having a negative effect on margins. they are having to spend to make this change. oliver: yes, that is exactly right. this is something that the not just do from today into tomorrow, there is a difference in production facilities, that means capital expenditure, and if you are looking at a huge target and a big bet on electric vehicles,
that means a lot of spending. that is what they are looking at. and they are looking at the squeeze it will have on the margins. vonnie: what ripple effects will there be in the industry, what did we learn that is new? oliver: vw is taking the lead on saying, we really think, or they really think electric cars are the future. other german automakers like bmw have been more cautious, they have said we do not know how consumers will feel about the technology 10 years in the future, so we will be flexible in our approach. i think they will be looking closely at this to see if it works out. they will look at it today and in the next couple years. and see if vw made the right bet. if they did, they will go the same way. they will be watching this closely. guy: thank you very much indeed. interesting stuff from vw, big shifts takin placeg -- taking
place. vonnie: time for our bloomberg exclusive. sarah lyons is grappling with currency volatility and high debt. we have been speaking with the country's president about the challenges. >> inflation has been persistent in double digits. we are working hard to bring macroeconomics stability, making sure that we bring it to the single digits. but the concentration, the infrastructure in terms of governance, it will be a little wide, but i can definitely people whostors, want or institutions that want to invest in the country, that we are up to the task. it is humongous, but we are determined and we will make sure that we bring inflation rates down. >> you are looking for international investment, but
you terminated a project with china for a new international airport last october. why did you do that? >> i did qualify investment at the beginning. as a nation, we also have to look for our own interests in every deal and we had to terminate the deal because it was not in the best interest of the country. thehe imf has highlighted need for spending on infrastructure, so how will you go about that and how would you go about financing that? >> that is a challenge, but with the program with the imf that is confident -- to institutions to look at what we are doing. and als we want to make sureo -- also we want to make sure that we use our own resources and reduce borrowing. at the moment, we have our mineral resources. and by the end of the year we should have the results of
information, the data to know exactly what is available. and we will use that as a basis banksk -- to work with and other institutions, so that we develop the infrastructure that is useful to our development. because we have turned our backs on infrastructure. it has to be systematic and supporting the development process. so we are in need. it will not be easy. i'm sure that we will create a sort of environment that will give confidence to investors to come around. vonnie: the president of the republic of sierra leone. guy: we need to update you on what is happening with boeing.
italy is the latest to ground the boeing 737 max, further isolating the faa. it is very rare to see european safety regulators and faa going in a different direction. boeing continues to be under pressure, down another 7% in this session. next, more details on what is going on with this huge, huge story surrounding boeing. ♪
aviation reporter. ben, walk me through this situation where the european regulators are basically at odds with the faa. it does not normally work this way, normally europe goes with the faa, and vice versa. ben: it is really curious. somebody described it as the regulators around the world are pursuing a rebellion against the faa, and there is a question as to why the rest of the world is pursuing restrictions, while the faa is reluctant to come out with that. it started with china yesterday coming out and grounding their entire fleet. that thee reporting european aviation safety agency is going to issue their own restrictions. that is separate to the fact that france, the netherlands, germany and others have come out to say no boeing 737 max flying
through our airspace. vonnie: it is two horrific tragedies, even the president of the u.s. coming out and talking about new plans on twitter, but what concrete evidence with the faa have in order to ground the planes. so far, they say that they are airworthy, does it have anything concrete to prove otherwise? ben: i think that this is a critical question, because what we are really seeing is preemptive action being taken around the world, and what the they areicy is is -- coming forward to say that they do not have evidence. regulators say that the preemptive action to ban the boeing 737 max from airspace is not based on new information that has come out since they discovered more details about this crash, this is really preemptive. the faa prefers to operate once they have the evidence. i would caution that the faa's
initial statement, although they said it was airworthy, they also said boeing would release an update to its software to address this issue by april. so there seems to have been a conflict within the faa's original statement initially. guy: we will leave it there. thank you very much indeed. ben joining us on the boeing side of the story. two sides to this story, one is the boeing regulatory side, and then the airline side of the story. vonnie: many have said that they will not fly those aircraft for the moment, but the stock of the hour is southwest airlines. shares are lower. emma: southwest is the largest a mystic operator here in the u.s. operator here in the u.s. and it has the most of those boeing 737 max of any carrier in
the u.s. american and air canada with 24, united does not operate with a max 8, and other does not use them. in the u.s.g here it would impact the southwest perhaps more than other airlines. in thatnot making moves direction, as you discussed, the divergence between the u.s. and europe in this regard. it is interesting, the response from southwest, the pilots association saying that they are confident in the safety of the max fleet. they said that it is based on massive amounts of data. they said have also stepped up training since the lion air crash of the boeing 737 max about six months ago. guy: not just 737 issues right now. emma: that is right, take a look at this chart. southwest has been falling for eight days, the longest streak since july 2010, down 10% over
that time. it has been in a labor dispute with its mechanics. the faa released a warning to southwest because of that, saying that they need to finally resolve the negotiations. also saying that the company is starting its flight to hawaii later this month and people not sure how that will play out. vonnie: we will continue to monitor boeing, one of the worst performers in the s&p 500. nevertheless, the index is positive. even as boeing is down. and in terms of movers, s5 networks is the worst performer in the s&p 500. carmax and chipotle are performing well. this is bloomberg. ♪
of talks with visiting british prime minister theresa may. -- prime minister proved went to strasburg to secure "legally binding changes to her brexit deal." the same one that was overwhelmingly rejected by parliament in january. lawmakers give it a chance to debate and vote on the plane. prime minister may opened today's debate by warning lawmakers that brexit could be lost if they do not vote for the deal which the european union said on monday will not between -- between -- will not between any further. the negotiators suggests u.s. and china are nearing a agreement that would end their conflict but would not commit to a time frame. speaking to the senate finance committee, trade representative robert lighthizer said there is still major issues that need to be resolved, but that he "can't predict success at this point." the ambassador -- >> we would like to have a real process and we want the right to be able