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tv   Bloomberg Markets European Open  Bloomberg  March 14, 2019 12:00pm-1:01pm EDT

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european trading day. from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is the "european close." guy: let's talk about the market yesterday, a strong rally in the pound. the pound is volatile at the moment, more so than other currencies. we are backing a little lower, the cable rate trading down by over .5%. it was stronger yesterday. and european stocks are well bid, same level for the most -- for most of the afternoon. out ofak data overnight china and as a result of which some of the main metals contracts have weekend. -- weakened. that is feeding back into the miners. generally, european equities on the front foot. vonnie: we are watching for the beginning of those votes which will take place today in parliament, and the dollar index is higher, weaker sterling.
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delay shouldn on a take place in one hour. the s&p 500 is up 1/10 of a percent. and a lot going on with the general electric up more than 3%, having been much lower in free market trading earlier on. a guidance call from ge. first of all, given investors the jitters, then reassuring investors that perhaps all is not bad with the world of ge. boeing is lower today, 8/10 of 1%. the world waits for those developments. guy: as you say, the bridge by minister is telling her mps -- the british by minister is telling her mps the back her deal, or face a long delay in exiting the european union. we will go to westminster now, where sebastian is standing by with the latest. seb, we will see the mps voting later on an extension of the article 50 process, do we have
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any idea on the duration of that extension at this stage? falls into two caps, -- camps, it could be short, in which case it would be just enough time for the deal to go through, but that does rely on going for a third vote and getting back at that juncture. it could also be long, in which case we have time to discuss and time for another referendum, that is the implicit threat, that is the drive to win over the skeptics on the rise of theresa may's party, to scare them into backing it so we do not end up with no brexit. vonnie: what is the prospect that the idea of an extension or delay for three months, or however long, donald tusk suggesting even much longer than that, that that would be so unpalatable to those who voted for brexit that parliament would vote this down and get on board with theresa may's deal?
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sebastian: it seems pretty likely that they will back this tonight. philip hammond, one man who has been very sure on this, he says he is certain that parliament will back an extension. it is difficult to say how tight, but because -- tight, because last night in the government many refused to back theresa may's deal. today we will see a number of amendments, one is for a second referendum, no support for that among the lawmakers. and another one is looking for indicative of votes, giving mps a chance to say what they want, but the criticism is they have said what they do not want it we have not gotten a consensus. the labour motion is to delay things until a way ford is found. and the final what is to stop another vote.
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if that passes, that plays havoc with the motion that has been set. guy: absolutely. it will be interesting to see whether theresa may can bring back her meaningful votes for another vote, her withdrawal agreement for a another vote. we are hearing the government does have the intention of coming back to mp's, but who is in control of the process now, the governments or parliament? parliament is trying to take control of the process. we have seen this over and over, we have seen two votes already it we are going back for another, it is not feeling the government is in control of this. i will refer back to the lack of backing yesterday from government members. the question is who is in control? there is no coalescence around a particular person, that is the root of the roadblock. guy: ok, thank you very much indeed.
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if you want to follow along with what we have, we have a great top live running on your tv . jamie dimon says the u.k. government is a risk. brexitink that a no deal would be a good idea. i do not think it is just the u.k., it is the eu, they have been fearing a no deal brexit and that means a lot of things would change immediately it it would have a huge effect on the economy there. guy: more on this story and impact on global investments, we are joined by a chief investment officer. what will happen next, what do you think will happen next? >> my view has not changed, i still think there will be a last-minute deal. i say that because we have looked at this article 62, it just came up for discussion,
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this was actually part of the initial document. and it never made it -- guy: tell us what we are talking about, because this is the way that some brexiteers are saying they can get around the irish backstop. the u.k. could unilaterally exit from the agreement if they feel that the u.k. is locked into this agreement in perpetuity. >> that is true, the article says if there are changing circumstances with consent, the treaty can be broken. this is what will be used, this is where it seems the brexiteers will be happy. i worry about 80 members, what if 70 members do not agree? and then the bill does not pass. it could yet fall. we have seen the last numbers coming down to 149. who knows, we might have a fourth attempt?
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i do not want to get ahead of that. but the option that the brexiteers face is either you pass this, provide all these conditions are met, or you go for a delay, which could be longer, and they have to make adjustments. guy: how do you price u.k. assets in a long extension? >> they will do well at the start, because the short-term uncertainty is gone. the data has been a very good, in terms of the numbers you have seen on everything so far, not just fiscal numbers, but corporate numbers. in short term, uncertainty is gone. however, i do not think a long extension helps. you will have an initial euphoria, then people will focus on this again it is a maybe it is not a good thing. is not a good thing for the eui t. -- it is not a good thing for the eu. they are having elections and that could lead to other problems.
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i do not think the uncertainty helps anyone. this whole thing on whether the eu will try to get the u.k. in this because it helps them, that is not the case. the u.k. is any bad situation. it does not help. a clear break where there is an agreement on how you want to move on will help both sides. vonnie: it is being done very cleverly on the part of europe. theresa may has asked for support to ask for an extension, but she only wants three months. europe has offered 21 months, two years, all the time you want. the point is that britain does not want an extension, they want to consensus, so is that possible? manish: i looked at the numbers before i came in, polling people to see how many people are in favor of an extension, 30% are against an extension. the parliament in its current
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form and current representation is not a representation of the will of the people. is 80% toto leave, it 20% in parliament who want to remain. maybe a general election is a good idea, but given the discussion it will not happen immediately. but this is something which will come up when you have an extension. an extension is almost a given now, because even if you have a deal you will need article 50 to be extended, to pass legislative measures in the house of commons. and that is not going to happen by march 29. but again, i think that the problem is the parliament in its current form does not represent what the country wants, and that is a sad thing. therefore we are having so many problems and we will have more words tomorrow. vonnie: right now, the oddsmakers say the odds for a second referendum are 2 to 1
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against. they leave ordo do they stop investing in britain? manish: i agree. the second referendum probability is very low. the reason is simple, you have seen even jeremy corbyn, who talk about a second referendum, he did not make mention of it yesterday or the day before, it came only from theresa may. the second referendum willingness within the parliament is also very small. now, as far as businesses. you can have this fundamental thing, which is not going to change, therefore you have seen that despite all the overhang of brexit uncertainty the u.k. numbers in terms of gdp growth is actually very good. when people say gdp growth has been slower since 2011, what they do not say is it is still better than germany and france. areproduction numbers
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better than germany and france and we have a huge problem in the eurozone. so it is still a strong economy. uncertainty does not help, but when you are a business you do not look at a one-year extension, you look at the reasons, you look at what the norwegian pension fund said, that they will invest despite brexit, deal or no deal. businesses will take that into account rather than a short-term discussion. guy: thank you. let's go to first word news. president saysh that the fight against climate change needs to move faster. speaking at the one climate summit today, he said that green energy is the way forward. he said that the world should follow the example of kenya, which now gets 75% of its power from renewable resources. the treasury secretary steve mnuchin is suggesting he will protect president trump's privacy if he receives a request
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from house democrats for the tax returns of the president. he was asked about that at a house ways and means committee hearing today. >> if you decide in the future to deliver this, we will receive it. i cannot speculate on the request until i see it. i have discussed with the legal department and the treasury that we will most likely receive this request, as i have said, based upon the request we will examine it and follow the law. mark: the secretary added, "we will protect the president as we would any taxpayer." the president broke tradition by refusing to release his returns during the 2016 presidential campaign. and two students are suing a number of colleges in the wake of criminal charges filed in the admissions scandal. two who go to stanford say they were denied a fair chance to apply for admissions at yield and the university of southern california.
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ucla and georgetown also among the schools named. 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. vonnie: coming up, the cfo of a french grocery giant, shares just off their highest level in a year. this is bloomberg. ♪
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guy: from london i'm guy , johnson. vonnie: in new york, i'm vonnie quinn. this is the "european close." more of our conversation with the jamie dimon. we spoke with him about trade
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tensions between the u.s. and china. >> the trade issues are real, they need resolved. they need across all these issues resolved. we think that both parties weted, but they are complex, are talking about hundreds of pages of memorandum so far. vonnie: the idea that there may not be a meeting between president trump and china's president until april. we are back with our cross bridge capital chief investment officer. april does not seem like much of a delay when we are looking at three months to 20 months for brexit, although the market did take it as a blow. what does it mean that the talks may extend now out a little further? manish: you have seen this since the beginning. for the markets to sell off a bit, then buying it back quickly, it does not bode too
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bad. you rightly say, it is not something we should be overly concerned about. it is my strong belief that the world is moving into a period w here u.s. and china will dictate what will happen. the willingness of doing trade on both sides are very strong, because both sides have incentive to do trade. and while the deadline may shift, there is a huge amount of conversation happening behind the scenes and we keep getting, you know, clips of that or soundbites in the media. and this morning you saw there was a story on bloomberg where said ofthat gary cohn that the u.s. is desperate for a trade deal. there is proof that the trade do will happen. and whether it aside at the end of march or the end of april, issue not bother the markets so much.what should happen is is it leads to the removal of tariffs, the market will be
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pleased about it. vonnie: what are the best ideas right now? remain i continue to u.s. overweight. i just believe that europe is in bad shape. but i have kept my positions as they are in europe, purely because the ecb is desperate and are they do not have much else to do, so they are doing all of these measures, but on the fiscal side there is no support. this is a strong thing for european financials. and that is the reason i am holding european banks in my portfolio, not something i want to hold, i think they have a bad outlook later in the year and next year. even though there are some good numbers, there is a slow down. germany is not in good shape. the growth rate is going down in china. and that has been a big benefit to germany. those will be big issues. and france is not having a good
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year. so it is good that -- is backing. there is a case for a strong dollar. i'm very positive in emerging markets. the financial stocks in the u.s., tech stocks in the u.s., that is what i am holding. guy: european banks face a flat isve because of what the ecb doing. we face the money laundering scandal gripping new european banks at the moment. what would it take for you to actually get out of those positions? manish: i am not looking to go along the european banks. it is more like getting out of it, that is my best case scenario. you are right in terms of growth. banks are leverage. if you do not have gdp growth,
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you will not make money in banks. and people really have to understand that what happened in the u.s. in terms of the bank stocks falling by 95%, that happened -- did not happen in europe to the same extent because of the ecb. the bullet can be fired only once. now you will have a new ecb president down the line, you do not know what the policy is going to be, but the main thing is germany, it is the german number that puts the gloss on the whole eurozone. you take the number out and it is a bad story. guy: it has been good to see you. thank you very much indeed. let's get an update on the markets. abigail: small moves in the u.s. the nasdaq and s&p 500 slightly higher. and copper moving on the china trade talks. the bloomberg dollar index up for the first time in five days. take a look at the s&p 500. last week was the worst a week for the s&p 500, the best three
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days since january, net net up 3/10 of 1%. and we have lots of action today, but not for reasons, with the exception of facebook, facebook lower on the user outage. and take a look at the chart in the bloomberg, using a trade envelope around the s&p 500, charles campbell uses this and he is a desk strategist. we see he did a good job of hugging the s&p 500 on the way down, now the high side, 2821, this suggests we could see the s&p 500 trade in a tight range for a few days ahead. vonnie: abigail, thank you. this is bloomberg. ♪
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guy: welcome back. large outflows following the market volatility last year and underperformance in 2019.
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is this a sign of a deeper problem? let's find out. we bring in now our equities reporter. what is happening with this story, is this actually a significant factor when we look at what is happening? >> let's talk about the numbers. the funds saw the biggest outflows last quarter in two years, and we definitely see examples of this in the high most -- in the most high-profile names. and we haveropped seen some closures all across the space, from newberger bregman to columbia. vonnie: it was a tough time for everybody in 2018, so what specifically was the problem for factor investing? >> i think that for a lot of factor funds what happened was the underperformance really started before the fourth quarter. as you look at two of the most there, both oft
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these really started underperforming around the second half of last year and that is really extending into 2019. that is disappointing for a lot of people, because when they look at a multifactor portfolio they are looking for diversification. that is not happening. and momentum find it difficult in an environment we are in, with a lot of sharp turnarounds. when you have a strategy that really buys the market winners and sells the laggards, that will not work if the market regime is changing every other month. guy: momentum is down 7.5%, value down by 9%. that is basically -- growth. is it just that we are going through a rough patch for factor investing, or is the whole premise around factory investing now being questioned? >> that is the key question. what we are hearing from a lot of proponents of smart that it
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is you really have to look at the long-term. a lot of factors go through really sharp drawdowns, they are meant to be volatile, so focus on long-term returns. that is hard to tell clients. people are worried about deeper issues, such as whether the expected returns were exaggerated by data mining, problems with cost eating into returns. i think that is a lot of questions that people would debate from this point onward. guy: if you want to find how the factors are going, find them on your bloomberg, ftw is the code you need to use. coming up, the european close. this is bloomberg. ♪ want more from your entertainment experience?
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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.
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welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome. guy: 30 seconds until the end of regular trading this afternoon in europe.
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the cac quarante is outperforming. and the ftse 100 is a by 4/10 of 1%, the miners acting as a laggard. the dax only of 1/10 of 1%. and we have a look at individual stocks we are watching to get an idea of what is going on at below the surface. it is interesting to see the pressure,cks under the reason is because of difficult that it out of china overnight for some of the big mining names. that has been a factor to watch. to seequick look here, what is going on -- there we go. lufthansa trading down, basically in a situation where the growth outlook is not good, it will limit its expansion. one of the biggest losses on the frankfurt market today.
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anglo american is down 3.70%. and we want to take a look at the volume story. we are actually looking at fairly decent volume. it kicked in midmorning. from the volume perspective, the market move today is looking on a good foundation. vonnie: the dollar index is moving higher, as are treasuries. this on sterling weakness. we have a vote starting in half an hour with amendments asking for a delay to article 50 in britain's parliament. the dollar index closing in on 97. and the s&p 500 is above the 2800 mark. and the china yuan trading at 6.7231 on the news that there will not be a meeting until april between the two leaders from u.s. and china. you can see commodities are
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lower. yen is weaker versus the u.s. dollar, which as we said is strengthening. and all of the asian currencies are in fact weaker. that is your market check. supermarketnch casino guichard-perrachon was hoping that his plan would impress investors today. initially it did, but shares were up 2% at the market open, as the company briefed investors we started to see it coming under pressure. it plans to sell another $1.1 billion of assets. the good feelings that started the day evaporated. the market is ok with what they are doing operationally, it is the financial structure that has been concerned. the cash flow is a big issue. the man who knows all about that is the cfo, david lubek, who joins us from paris. good afternoon. investors are concerned about
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the financial structure, investors are concerned about cash flow, do you think you did enough today to convince them that this is a business on a solid foundation? david: well, thank you for having me. i think the results presented today show that we are, we delivered excellent results and we are on the right track as far as financial structure is concerned. we have reduced -- in france by theree. we are 2.7 billion euro end of 2018, that is a division by three, and if we added one billion more to our disposal plan. so i think as far as financial structure is concerned, i think that things are going well. 450ar as cash flow, we have million euro cash flows in 2018, excluding exceptional's, and we will target 500 million in 2019
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a strong discipline and capex and working capital. and growth in profits. we have a model that will grow in profits, even in tough conditions, as has been shown in france in 2018 with a growth and profitability in sales, even after the yellow vests movement. guy: why don't you cut the dividends? david: i think that the current level is perfectly compatible with our current cash flow generation and net reduction. it shows, in three years we divided things by two, reducing the net debt further. we maintained the same level, so i do not think it is an issue. vonnie: will you consider ramping up the asset divestiture? i know that you have done some, could you speed it up to please
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investors more? give: we went up, we guidance of 1.5 billion divestiture of non-core asset disposal in france. we gave the guidance to be realized by june 2019, initially, and we realized by january 2019 -- we realized of the guidance six months in advance, so we gave a new guidance of at least one billion more. and the disposal plan of non-core assets. least can do more, at 2.5, so we will not stop at 2.5 if we find buyers, or we have good assets that are mature. so we are not stopping. we are on a clear path of reducing the debt. and at the same time, we have transformed our model, that is the important part to keep in mind, it is not just reducing debt, it is transforming the model to adapt to retail.
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being in the best format, in the best locations, in the best categories in developing a strong all my business from 18% all my business, which is our current level, to 30% in three years. doing all that, it has not prevented us from deleveraging. vonnie: tell us about the french consumer right now. you obviously are in good competition with other major grocery chains, what is the outlook for the french consumer? david: in france, what we see right now for 2019, the current is theions and forecast growth in purchasing power, due to measures taken by the government. actually, the growth in purchasing power should be the highest since 2007, so it should be good for retailers. as for us, we are positioned
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in the best locations in dynamic regions around paris, around leon, 65% of our sales are there. these are regions where we see half of the gdp growth in france. we think we are in a position to take advantage of any increase in purchasing power in. . and we have the best locations, and way benefit from additional streams of revenue with our solar energy business, our advertising business, and all of this allows us to generate strong profits, even when conception falls down a little -- consumption falls down a little, or even with the yellow vests movement. guy: is there room for consolidation within the supermarket sector? there seems to be confusion about whether or not you guys were talking to car for -- c arfor?
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david: the discussions in september were muddled by the press. what i can say is that when you think about consolidation you have to look at the different types of partnerships and his energy they could make. -- and synergy they could make. we already have a partnership with the horizon alliance, which is an international alliance that allows us to negotiate with private labels and in national brands on an international level, so that is a significant amount of synergies, purchasing synergy we can generate. in any type of consolidation, you have to look at the synergies. when you have consolidation, you have some synergies, and as far as we are concerned we are focusing on developing our partnership in buying.
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partnerships we have, we have an exclusive partnership with kato in france. that helps us benefit from grocery growth in the coming years. and we have a partnership with amazon with delivery in and around paris. vonnie: half of your revenue comes from latin american countries, what is the strategy for latin america? david: for latin america we are very pleased with what happened in 2018. we had a very strong growth to 22% for the latin operations as a whole and strong growth particularly in brazil. we have a cash and carry model that is efficient. model has is -- that been growing 20% plus for six years in a row, even during the deep crisis that brazil had known. and what we did is use the know-how of the cash and carry teams in brazil to develop the
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model in colombia as well, where it is performing well. as far as the other models, the supermarket had a tough time two years ago, and now they have been turned around with the new models in hypermarkets and supermarkets, and we see growth in sales and profitability. so we are optimistic about brazil, and also about columbia, which is going well. vonnie: david lubek, the cfo of casino guichard-perrachon. now first word news. mark: president trump says boeing is "a great company" and he hopes the grounding of the 737 passenger jets is only temporary. >> i hope it will be for a short time and i hope that -- look, they have to find out what it is. that is the biggest thing. i'm not sure that they know. but i said we had to do it, we
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had to take a cautionary route. mark: the president made his comments today during a meeting with the visiting prime minister of ireland. the faa says the decision to ground the jets was based on new evidence that show the 737 max had crashed sunday in a few be ethiopiay -- in closely tracked another crash operated by lion air. a former fbi agent that led the between aion ties trump russia says there is no conspiracy at the agency to prevent mr. trump from becoming president. he made the comments to house lawmakers last year. the top republican on the judiciary committee, doug collins, released a transcript today of the interview, trying to prove that law enforcement bias tainted the early days of the russian investigation. the pentagon says the u.s. and partners in syria have liberated nearly all territories the
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islamic state once held. the armedanahan told services committee today that he is not declaring victory yet. he says that u.s. forces are drawing down in syria, but will maintain a presence to prevent a resurgence of the extremist group. in nigeria, and officials have ended the search for survivors at the scene of a collapsed school. at least eight people died within the building collapsed on wednesday. officials say the number could climb. officials say that ability was march of for demolition and the school was operating illegally. 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. thank you very much indeed. let's check with the european markets have followed -- have fallen. we saw a small dip.
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the ftse 100 pushed a little 1%.r down, up by 4/10 of dax underperforming today. and the cac quarante outperforming a little bit, up a tenths of 1%. if you are getting in the car and driving home, carry on with the political coverage. show" will take to the airwaves at the top of the hour. clearly, we have a vote starting at 5:00 p.m., starting with amendments, then moving onto the main motion, that is what we will be covering tonight. ♪
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vonnie: --
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guy: from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. now,ttle more lighthearted turning to sports and the players championship kicking off today in florida. the event has become an unofficial fifth major for golf, so i caught up with one of the biggest names in the sport, rickie fowler. and one of his major sponsors. fowler goes into the weekend with 20-1. >> i think it is a great wager. the year -- the way the year has been going so far, i have started with a mediocre week, finishing with a good week. i won at the waste management. middle of the pack again in mexico city. back into contention and tied for second at honda. last week in the middle of the pack, so it will be a good week here. vonnie: you are already number seven in the fedex rankings, thanks to your win in phoenix.
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so how do you stay at this level, how do you prevent yourself from slipping back? tough, especially right now. i am on a four week stretch and this is the end of that run, so i am looking to two weeks off coming up. i want to relax, recharge and get ready for the masters. for me, players is a big start to the big events to the year. this is our championship, so i want to go out of this four week stretch on a good note. vonnie: you mentioned the masters. we are on a different schedule this year, it is starting a bit earlier and we will have things a little bit earlier, so how will that impact how you tackle these tournaments this year? rickie: in the long run it will help space out the big events better. having the players here in march, that way when you get to
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them may to august stretch it is not as condensed. but figuring out the flow and your schedule from their is there isy - - definitely different. it will take some trial and error. i think you will see some guys change their schedules the next couple years to try to figure out what works best for them. vonnie: mike of grant thornton, you are very lucky do have rickie fowler. what do you get from sponsoring somebody like rickie fowler and being at this event? mike: we are very proud of him. the way that he plays and the way that he conducts himself, the way that he shows up. we enjoy having him represent our brand. our brand is all about status go. and how we are a challenger. he epitomizes being a challenger and he never gives up. he is always in the hunt.
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but also it is the way that he represents himself, represents our firm and culture and our values, so we feel like, from have seen it has been wonderful and it has continued to grow and develop even further. we are very proud of him and proud to have him representing us. vonnie: mike, grant thornton has many sponsorship deals, including with the berkeley center, and the players a there. what do you hear from clients you meet at these events, where these events good for those kinds of meetings? mike: it is a great way for us to get our brand out, it is also a good way for us to entertain our clients, and frankly are people really enjoy working on those kinds of accounts and attending the events. we have really been focused, over the last five or six years, on major league sports and pro
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sports. that is one of the reasons why we are proud to sponsor or proud to partner with the pga tour. for us, it is interesting because a lot of these organizations are also clients of ours, so we get a chance to serve them. as you can imagine with all of our people, we are a people first organization and our people really enjoy those clients and going behind the scenes at the events and with some of these activities. i think it is a win-win, a win for our people, a win for our clients, so it is a win for the brand. that is the trifecta. vonnie: i hate to bring it up, but i am sure you are it spectate -- you were expecting it. you were penalized last month on the new rules, do the new rules make sense now? rickie: i am very well aware of the rules. but yes, for me, i'm always
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someone that wants to help grow the game. i want the game to look appealing and look cool, especially to the under generation. and i think that is -- younger generation. and i think that is where we align ourselves, we are pushing the limits, status go, not just going down the middle of the lane. and for me with the rules and some of the things that have come up, yes, we made some jokes, but to me the numeral and -- to me the new role, dropping to the knee, it does not look good. i want things to portray the sport correctly and right, so to me dropping at the knee, when you have people making fun of it, it does not do justice to the players or the game itself. vonnie: 20-1 at the players, which is kicking off today.
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that was ricky fowler and the ceo of grant thornton. guy: ceo,arlier i spoke with a the ceo of dhl express. we pick it up talking about brexit. >> the china u.s. talks and brexit is dominating the newspapers. so i say to my team for every story about trade slowing down, there are maybe two or three of liberalization and things opening, so i think that businesses and people are self resuscitating. you want what i have and i have what you want prevails. this year has been full of agreements that are opening the doors to trade. so i think it is a big world and there is a lot of trade corridors out there, many who have no recorded commerce growth
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or commerce at all, so a lot of opportunities. we are going into this year thinking it is a long way away from the recession and it is pretty early days as well. guy: you wouldn't even say that we are late cycle, you do not see the storm clouds gathering on the rise and? -- gathering on the horizon? john: it is too early to say that. the listeners and watchers are reading the same papers i read. we have ridden out the storms. things are cyclical, things can bounce back as quickly as they dropped in the first place. in a widely distributed network like our own, being intuitive 20 countries, there is always going 220e -- being in countries, there is always going to be a region that is not do as well as others, but it always bounces back. guy: you brought that brexit. how much money have you spent
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preparing for a new deal brexit? john: well, preparedness is all about what it is about. so our job is not to speculate on what deal goes through. it is disappointing that the uncertainty continues now for some period of time. i'm not going to put a finger to it, but i was quoted saying the other day that we certainly have a couple hundred people ready for it in customs, so our job is about preparedness, about keeping close to the topics so we can advise customers on what is going on. and on day one, we need to be in a position to be able to service our customers. being as large as we are, having the network coverage that we do and the outfits that we do, we are in a good position to be nimble in one sense, but resourceful in another, in order to maintain the flow of goods.
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guy: that was the ceo of dhl speaking with me earlier on. vonnie: two stocks of the hour. investors reacting differently to two well-known industrial next one, ge and the -- emma: we are looking at boeing and ge. ge is up, despite announcing that they will burn through $2 billion worth of cash this year. the ceostors liking saying that next year will be better. boeing is still feeling the pressure from a global grounding of its 737 max and how long that will last. we are hearing it could last into april. the faa will not let it fly again until there is a software update. and looking at those two today and seeing very different
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performances today and over the past week. vonnie: emma, thank you very much. and up next, a special edition of bloomberg markets on brexit. time meanst saving that britain is four hours ahead. voting will start to take place in parliament and theresa may is looking to ask the european 50on for a delay to article and today the british pound is weaker by 6/10 of 1%. we will have full coverage of the vote, next. this is bloomberg. ♪
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this is a special edition of bloomberg markets. we have breaking news. you can parliament is due to vote very shortly on potentially delaying brexit or at least permission to ask the eu to delay. parliament will vote on a series of amendments as well. first let's check the markets. hasicularly sterling which been weaker all day in anticipation of this vote. at 132.66.ng weaker versus the u.s. dollar. not too much movement --

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