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tv   Bloomberg Markets European Open  Bloomberg  March 15, 2019 2:30am-4:00am EDT

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you may have chosen us but we >> reject and condemn you. --the perpetrators of this >> that is the new zealand prime minister giving a news conference after these deadly attacks on two mosques in christchurch, new zealand. two shootings with multiple fatalities. we have heard 40 people are dead in those shootings. police saying three men and one woman in custody. >> not too much more i can say
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at this time. >> is it good enough they were not on watch lists? >> in that regard, they were not on watch lists. it is not a matter of someone having slipped under the radar. it is early days. that is the assurance, people are in custody being questioned. the commissioner of police will be giving an update between 8:00 .nd 8:30 rea terror -- >> i think we should be the against thegilant idea of extreme ideology and extreme violence and violent acts. >> -- on one sector -- >> from the language of those who work in our services, their
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focus is on extremism regardless of where it comes from. be blind in that regard. it needs to focus on threat and ideology and extremism. what we haveat is experienced today. we have undoubtedly experience an attack that is unprecedented. unlike anything we have experienced before. as i say, new zealand has been chosen because we are not a place where violence extreme and -- extremism exists. this is not an on clive -- enclave for that kind of ideology.r this is a place where people should feel secure and will feel secure. i'm not going to let this change new zealand's profile. agenciestelligence why not?ld list --
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>> they had not acted in a way that warranted it. feel free to ask further questions. i'm not in a place to give further information beyond that. >> have you had any information from australia about whether they were envelope -- were on watch lists? >> my understanding at this stage is they were not on watch lists. toin, i don't want to go much beyond because it is early days. i don't want to jeopardize the case that may be taken in the future as well. i want to a knowledge i have been contacted by prime minister scott morris and i plan to speak with him directly as soon as i enable. not at this stage. certainly the mor minister of foreign affairs have contacted
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the deputy prime minister and myself. >> not at this stage. i will have been amongst other members of the public who will have seen the footage as the injured were being brought to read you can see from the footage there is a real range of ages there. i imagine these would have represented particular brothers, fathers, sons. i have not had a breakdown at this stage, sorry. --what is your [indiscernible] >> these are obviously questions that at this point i am unable to give additional details on. -- is in custody now.
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i can give assurances he has been apprehended. he has been accompanied by two other associates. he is being actively questioned read these are questions you can put to the commissioner of police. absolutely. i have given you the advice about watch lists. these are questions that we will be asking. including access to firearms. >> what is your advice about worried-- two people about the situation. >> at this stage, i am asking people to follow the advice of the police. there have been three individuals apprehended. the police are taking for granted there may be others that may need to be brought into custody.
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we have no reason to expect that but they have not ruled it out every please in the meantime continue to listen to police advice. i want to give assurance to obviouslye police are incredibly active on the ground. they are bringing in additional police officers. just listen to the advice available to you. we are ensuring the security of those moving around at this time. >> one principal had two associates. >> they are not directly connected to the attack. that is my understanding, yes. connection to the attacks today. the individuals -- that would be a question for the commissioner. i am not sure if it is something i am able to share. the relationship those
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arrested have with one another. do they share their ideology? >> that is the assumption i would make at this stage. we have seen from one of the offenders may have publicized their ideology. i have no reason to assume anything other than those others arrested would subscribe to the same ideology. >> i am not in a position to give away additional details on citizenship at this stage. >> [indiscernible] >> new zealand's prime minister giving a news conference their following these attacks in christchurch. are dead inople those shootings. to recap some of the information from the news conference. she said more than 20 people have been seriously injured.
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40 dead, 20 injured. saying the shootings were a terrorist attack. the attacks were carefully planned. saying the national security threat level has been lifted too high. high and also saying we reject extremist views and ideology. saying three men and one woman aren't custody over the shootings that happened in two mosques -- are in custody. people have warned people to avoid mosques anywhere in new zealand. >> the bank of japan has left its stimulus grant unchanged. datallows a raft of week over the past month. and another guest are still with us. the big question is what more does the boj have in its toolbox? >> they are doing everything in
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the sun they can do. the last thing is eventually helicopter money. further easingt in the meantime? more and more economies are expecting that. >> i would think so. things would have to deteriorate. we will have to see how things go. risk, aa substantial sharp economic slowdown. coming into your end, we may be at a situation where growth slows substantially. the boj may consider doing something but it is too early. >> japanese equities have been underperforming. look at the chart. stocks cheaper compared to the broader benchmark. are you a buyer of japanese these? and you be tempted to be? they are not driving global
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markets. driving has been more tech related. the u.s. market. it is a cheap market. going back to our conversation. how'd have cold it is to generate inflation. message is the fed does not need to tighten. that is a more positive message. a cheap market. it will probably have to be patient. excess income streams. now huge excess income and dividends over japanese government bonds. i would not expect any re-rating, just as a one off. >> blackrock among others favoring tips. we talked about u.s. break evens. do you see any prospect of any sort of meaningful rise in
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inflation? >> there something genuinely do not understand. negative rates in the eurozone. generate inflation, even in the u.k. where we have been inflation prone. only a modest uptick in inflation. globalization, amazon, we have to be open-minded. why pay the premium? tips are basically treasuries plus a premium. don't pay that premium. >> weaker dollar by the end of 2019. >> no question. >> you can look at the dollar. it trades at extensive levels.
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for the dollar to become more expensive, you would need positive growth or inflation. point on inflation is interesting. they are talking toward moving that meansflation -- the dollar will continue to depreciate over the longer term. we do some structural issues. pretty modest at the moment. the market may start looking at the budget deficit, in which case we will see more dollar weakness. that is a risk on the equities side. there's not much they can do about it. >> please stay with us. more pictures of new zealand's prime minister giving a news conference following the attack and christchurch.
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saying 40 people are dead in the shootings. seriously20 people injured. saying the shootings were a terrorist attack. the attacks were carefully planned. beenhe threat level has lifted too high. warning people to avoid mosques anywhere in new zealand. this is bloomberg. you 100%ot give assurance of that. certainly all three are connected. be -- additional security? >>
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the bloomberg first word news. zealand's prime minister says 40 people died in a mass
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shooting and christchurch. the two attacks on mosques were carefully planned. the backinghas won to seek --lawmakers the house of commons voted to it sets up a difficult meeting with the remaining 27 eu leaders. a premier says -- the chinese as the people's congress wraps up, china passed a new foreign investment law which aims to create a level playing field between four and in domestic firms.
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tax cuts will be implemented april 1. plan to engage in large-scale tax reduction. inwill make reductions social insurance contributions. this is an important measure countering downward pressure on the economy. has fired the fund found her after he was implicated in a college admissions scandal. he founded the growth investment. global news, 24 hours a day. 27ered by more than journalists and analysts. this is bloomberg. meet inand allies will azerbaijan to decide how much oil they plan to pump in the months ahead.
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-- at the same time, the spread between lighter and heavier grades is at the lightest since 2014. all oil is created equal and that could be working and opec's favor. market have been flooded by the surge in u.s. shale production. has a low sulfur content, earning the name, light sweet crude. it is perfect for making gasoline. much of opec's production is sour, heavy crude. it is harder to refine, although better for making diesel. the u.s. shale boom is relatively new. those who invested aliens processing the heavy stuff pay a premium. with too much sweet and not enough sour, it is -- the key
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question facing opec is whether they extend the cuts and tighten a strained market. bloomberg's annmarie pricen explaining differences. you'll be watching the meeting closely. what is the top of the agenda? >> one thing, venezuela taking center stage. notey aspects sending a saying levels dropped to 500,000 barrels a day. generally, they pumped over one million barrels a day. they have sanctions. tight sourating a heavy crude market. i asked about this. where the oil is going, now they are shut off from the gulf refineries. tried tovernment has
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find where to place this oil. the only real place is india. they are selling about 360,000 barrels a day. 700,000 theyhe were placing in the gulf coast is going to be impossible. 600,000-7 thunder thousand -- 700,000 go to the chinese. those do not bring money to the country. >> really india is the market. this is the first meeting we are going to be seen. the electric crisis. singlell be at every opec meeting. cartel.portant for the >> a question is whether they are going to support the
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extension. i wonder if there's more room to do that. quiet it looks like the one thing the saudis have to deal with is politics. the president of the u.s. putting pressure on them to cut production. it looks like they are doubling down to support prices. one thing, the way the saudis were misled by the u.s. president concerning iranian sanctions is something they can still taste. they were producing vintage amounts, thinking exports were going to go to zero and then the u.s. went to zero. it looks like they are less likely to do trump's betting. i was talking to a guest earlier who said we are in the tightest market since 2008. it is going to continue tight eating. does that make you bullish on oil? angle, what is
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often underestimated is the demand angle from india and china. >> that is coming into question. >> the intensity of these economies is increasing. if you bring up the graph on bloomberg. >> i am typing, don't you worry. >> it is a more recent series but trending up strongly. china has come off but it is a big uptrend. the second area which makes it more positive is capital discipline. after the near death experience. especially in the shale area. it is a booming area in terms of supply but not as reckless as it was. we do have individual stocks. our main play is russia.
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single holding. >> why the preference for shale specifically? >> part of it is environmental. compared to others they are moving more. toward renewables. hard to choose between the majors. it wins it for us on the sg factors. >> what is the trade when it comes to commodity currencies? the aussie dollar? how much are you playing off this strength in oil prices? what is the trade-off? >> the monetary policy angle is -- if youas moved look at the oil price, the central bank will be concerned about not the increase of oil itself at the speed of that increase.
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second round of inflationary effects. -- for theng currency angle, if we see the sustained increase, that will affect the balance of payments. not at all really for australia or new zealand. play, relative currency definitely a favorite of trade. elsewhere, people like the ruble quite a bit. is a huge current account surplus, very positive. i'm anticipating it will continue the performance we have seen year to date. prefering there, you against the aussie dollar. we have got the meeting next month to look ahead to as well. what might this -- >> there is a lot of opec
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meeting coming up. the saudis want to extend cuts for the rest of the year. especially the russians. while the indigent -- energy minister might think it is good to cut, the oil companies have been not as willing to cut as the others. while with a went to cut when they could pump at a well? you all withave the onset. for the hour.s global head of fx strategy. thank you both. coming up, we are live in brussels. theresa may plays for more time to get her exit deal passed. bloomberg users can interact with the charts using g tv . you can catch up and browse the recent charts, catch
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up on analysis and save them for future reference. tune in to bloomberg radio live on your mobile device. i will be there from 8:00. this is bloomberg. ♪
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♪ rufus good morning from bloomberg's european headquarters in london, i am nejra cehic. playing for time, theresa may gives her brexit deal on life support after winning the backing of parliament to seek a delay. we are live in westminster and brussels. staying the course, china continues its strategy to increase stimulus pressures after a deepening slowdown. 42 the are dead in new zealand after attacks on mosques. the prime minister condemns the violence. >> i said it is clear that this is one of new zealand's darkest days.
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♪ nejra: good morning, everyone. welcome to "daybreak: europe." the.one hour away from start of equity trading there is the possibility of a meeting between president trump and xi jinping that could be delayed until at least april. looking at how europe is set up, we had two days of gains in a row with european equities and it looks like we could see a third. perhaps some of the markets could be unchanged. 20%, cac 40are of ,utures struggling a little bit and we are seeing u.s. futures on a firmer footing. green.so in the we are looking at some risk
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appetite coming into the equity markets modestly. the 10 year treasury yield yesterday closed below 2.65 percent for a six day in a row. the 10 year treasury yield lower, 2.62 in today's session, reflected by what you are seeing futures. in terms of bunds and btp's, not a lot going on, the ten-year moving lower. btp's are not doing a whole lot in the futures market right now. we have breaking news as well from h&m. first-quarter sales of $51 51 billion swedish krona, beating the highest estimate. that is a strong number, beating expectations, 51.0 2 billion swedish krona where the first quarter sales. the estimate was 50.5 billion,
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so that is a better-than-expected first-quarter sales number. that will be a stock to watch for when the equity markets at 8:00 a.m.. let us get to the markets in asia with juliette saly in singapore. how is it looking. are up for a weekly win on the msci asia-pacific, up close to 2% after the worst week for global stocks in 2018 last week. there has been a lot of buying week.nese stocks this we had that npc wrapping up in beijing, the premier reiterating the fiscal policy most. the japanese market is firm, up .8%. there was a pretty flat yen on the close after the boj kept its .olicy unchanged indian markets are on track for their best week since november. the are a lot of inflows to the indian market.
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let us look at the currency moves. we had governor kuroda speaking, six moreat he time to achieve their price target. the yen is on track for a weekly loss, pretty unchanged in today's session. asianrst-performing currency is of the korean won on reports that kim jong-un will decide soon whether he will be maintained his moratorium on missile launches. japanese defense stocks rose. the korean won and other stocks fell today. the rupee up about two turns of 1%, a lot of foreign inflows going into indian assets this week. .2%, a lot of foreign inflows going into indian assets this week. nejra: thank you, julia. theresa may has won a victory in the house of commons, meaning her twice-rejected deal remains in play.
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she is offering mps a of backing her plan and delivering brexit with a delay or the split never happening at all. speaking exclusively to bloomberg yesterday was jp morgan ceo jamie dimon, who said the uk's unprepared for a hard brexit. >> i think the no-deal brexit would be a bad idea. not just the u.k., the e.u., they did not really prepare for a hard brexit. so no-deal brexit, it means a lot of things would change immediately. it would have a huge negative economy.n the nejra: joining us is anna edwards in westminster and maria tadeo in brussels. us,, great to have you with thank you for braving the cold. let's go to your first. what are the options on the table now? anna: yes, many options remain on the table, which is quite amazing.
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it looks like about 29 of march brexit date might move. a vote on the delay took place last night. there are basically two things to keep an eye on. theresa may still keeps her deal -- still thinks her deal stands a chance. she will see if she can get her through the house. arehe other hand, there members of parliament still trying to work out the possibility of something softer being crafted, and alternative plan for brexit. jeremy corbyn was talking to others about that. depending on which one of those comes out on top next week, it will indicate the length of delay to the brexit process that we may be asking for from brussels. could it lead you in, or will it be a much longer? june, or couldin it be a month longer. persuade the right
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of her party, and the left of her party, whether she and coxe can persuade them to change their mind. [no audio] >> there are questions. this has to be approved by the au, they will want to know whether as is a delay. years, and the delays have not really solid any fundamental problems in the brexit question. the debate is that there is a crash with the european elections. the e.u. will want to know what the strategy is with theresa may. [no audio]
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>> thank you so much to our bloomberg team, anna edwards in westminster and maria tadeo in brussels. joining us now is allie is headed -- elias haddad. in these daily moves in cable. we go out to percent wednesday, then as soon as you hear that there will be an extension or a parliament vote for it to happen, we are down 7/10 of a percentage point. we are now at 132, below that 133 level. wast simply that the market expecting an extension and it is just a bit of profit taking? elias: i think the reason we had a rally in the pound is the risk of a no-deal brexit really
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underpinned the pound. the extent of the rally in the pound will depend on the potential for a longer extension, what that will achieve. because unless you can get her deal voted the next week, we will need a long extension. does it mean we will have more theracted negotiations with e.u., potentially new elections, a new referendum, potentially softer brexit, we don't know. these uncertainties will continue to contain or restrict any relief in the british currency. nejra: do you think the risk is more to the downside here? the market is still net short position. top to me about the dynamics of that. pound, itterms of the has pretty important support by the fact that the risk of a hard brexit has been essentially eliminated. gains?so if it
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elias: the extent of the rally of the pond will depend on the next objectives -- of the pound, will depend in the next objectives. it takes less than a month to hold an election. the referendum takes longer, roughly 22 weeks, the estimated minimum time to host in the referendum. electionou have a new or referendum, there will still be uncertainties. if you look at recent holes, they are not conclusive best they are not conclusive. they show that only 52% right now would want to remain. you still have tight polls, whether it is for the referendum on for an election. any big relief rally in the pound, whenever you have any of these two outcomes materialize, it will be contained. nejra: i have a chart here showing one-month volatility of the pound retreating from a two-month high.
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we are talking about a little bit of a retreat over the last couple of days. given what you said about sterling being range-bound, doesn't mean you would stay away from volatility trades at this point? elias: i would not lay the pound right now. orra: not even through vol options, or anything like that? elias: the fifth of who are more expert at trading volatility certainly could play with this, because there will be some rock 'n roll movements here in the pound in the next couple of weeks. what the dynamic for the next steps are going to be. there will certainly be a better volatility. in terms of the range, the movement in the pound, i expect range-bound, it will be diffidently for it to edge lower at a time when the risk of a hard brexit has been reduced significantly. and also economic activity in the u.k. has been fine. stays withs haddad
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us. now let's get the bloomberg first word news with vivian over >> in new york. >> the new zealand prime minister says 40 people have died in a mass shooting in christchurch. the attacks on two mosques in the city were carefully plan. police say that three men and .ne woman have been arrested one of those arrested posted a manifesto online showing" "extreme ideology." the prime minister: it one of these events darkest days. >> you may have chosen us, but we utterly reject and condemn you. senate voted to block president trump's calling for a national emergency to pay for the border wall with mexico. the 51-49 vote set up the u.s. presidents first veto and shows a growing willingness by republicans to split with their president, with 12 g.o.p. senators voting to cancel
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emergency. the boeing 737 max eight could remain grounded until april pending a software update. that is according to u.s. lawmakers briefed by regulators. a device found in the wreckage of the plane that crashed on sunday in ethiopian indicates .hat doomed aircraft was considered to dive separately, the "new york times" is reporting that air traffic controllers knew that the flight was in trouble even before the captains emergency requests three minutes into the flight. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. viviana hurtado. this is bloomberg. ♪ back to you in london. nejra: thank you. musk unveiledn has less crossover suv. limit drive the company's future sales? we are live in los angeles with more. this is bloomberg. ♪
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♪ we are just a few minutes from the equity market here in europe. the u.s. equity market ripped around a bit yesterday with headlines on trade. the futures are on firmer footing today. the euro stoxx 50 futures are a little bit flat. the boj makes no changes to stimulus. , anduro trading at 113.19 oil heading to higher trading this weekend. at 58.80 on wti. cable is flat, holding onto the losses yesterday even after parliament voted to extend the brexit deadline, 132.51 is where we are. the anna: new zealand's prime
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inister says 40 people died the mass shooting of christchurch in new zealand. in attacks on the mosques that city were carefully planned. minister,to the prime one of those arrested posted a manifesto online showing an extremist ideology. the new zealand premised are calling it one of new zealand's darkest days. you may have chosen us, but we utterly reject and condemn you. the viviana: theresa may has won the backing of u.s. lawmakers to extend brexit. the vote is setting up a difficult meeting next week with the remaining 27 e.u. leaders who themselves are divided over granting the extension. could remain7 max grounded until the end of april,
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pending a software upgrade. that is according to u.s. regulators.iefed by meanwhile, a square like a device found in the wreckage of the plane that crashed in if ups shows that the aircraft was configured to dive. air-traffic controllers knew that the flight was in trouble even before the captains emergency request three minutes into the flight. the u.s. s.e.c. is suing volkswagen over claims the carmaker failed to disclose to investors that its diesel vehicles did not comply with emission standards. the filing alleges that vw sold billions of dollars of bonds and asset-backed securities between 2010-2015 while concealing its admissions cheating scheme. the german carmaker has are bitterly said it in front markets properly at all times -- it informed the markets properly. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg.
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fish vivienne or tender in new york, thank you so much. the national people's congress has wrapped up. the government has announced measures to counter slowing not.h but said it will engage a larger stimulus it also introduced a law to maintain attractiveness to foreign investors. elias haddad from cromwell bank of australia is still with us. in thealking to someone previous hour and he said this could lead to a weaker dollar, but longer-term we are looking hea weaker yuan because estimates the pboc will continue with rrr cuts. and may actually consider an outright interest rate reduction. he sees that currency is one of the most expensive currencies in real exchange rate terms. the pboc says they will stick with targeted stimulus. the you believe that?
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seems liket now it that is the objective. they announced stimulus packages 100% of gdp.er so far it doesn't look like the economy -- that the stimulus or re-inflation policies are materializing it. we are seeing encouraging developments like infrastructure spending in china picking up in a positive way, largely because of the issuance of monic municipal bonds by the government. but the economy is still not gaining any significant traction. hopefully these tax cuts that , the extramplemented fiscal stimulus package from the government in a review will cushion economic activity in china. it is positive to a certain extent for global economic activity. nejra: i just want to ask about the yuan in terms of whether you or.cted to go beyond seven,
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beyond 6.5 in the medium term which of those is more likely. and i is fish in the medium-term, we are looking to lias: in the medium-term we are expecting to trade below 7. we also expect a softer u.s. dollar as we go into the second half of this year. as global economic activity there is aion, downside risk to global activity diminishing. it is good to realize that monetary policy globally is quite accommodated. fiscal policy is about to turn more stimulatory this year, which is good for global growth. global activity does show sign on recovering, and this should weigh on the u.s. currency. against all major currencies, including the chinese currency. nejra: interesting.
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it sounds like your answer to the big question they are asking all week about whether we are seeing a bottoming out of global growth, you think that we are? elias: we're not seeing it right now. the risk to global economic activity is still skewed to the downside because the leading indicators continue to point downward. we are not seeing encouraging signs right now on the global growth front especially on the manufacturing emi, it is still -- manufacturing pmi is still in contractions on. fiscal stimulus or fiscal policy is about to turn more stimulatory in that you zone into a large extent in the u.s., it will be an important pillar of support for global economic activity and will shift the risk in favor of a pickup to global economic activity. economice euro area surprise is the least negative
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since september, so i guess you could look at it in that positive way. is japan the outlier, though? elias: in terms of growth, yes. they face a recession in later 2019 if the government raises those consumption taxes in october. the data out of japan has been terrible and disappointing. inflation is practically nonexistent. the risk that the bank of japan does even more aggressive monetary policy easing, will it be a big drag on the yen, a little bit, but not significant. remember, japan has a massive current account surplus. nejra: thank you so much. elias haddad, great to have you on the show today. tesla has unveiled. its modal cross over that will play a crucial role in driving future sales. it is said to be released in spring of 2021 with prices starting at $39,000.
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deadline out plans to close on most all its stores in february, before backtracking a few days later. bloomberg's ed ludlow has just come out of china's love event. what did we learn about the model y? it is a you said, cheaper version, 230 miles of range, $39,000. but before that, in 2020, we will get a longer-range version, 300 miles,. it is similar to the model 3, we bring the more expensive model first and later the cheaper and more accessible model. we didn't learn much about where production would take place or when it would take race. what is interesting is elon musk talking about 70% of the parts being shared between the model 3 and the model y. . the expectation for analysts is that they can replicate the
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version of the model 3 and copy it wherever they need to produce the model y. nejra: what are the analyst's concerns been? ed: the principal concern is that the motto or cannibalizing demand for the model three. the time horizon rather cheaper version is not available until 2021, there are concerns that customers would hold off ordering the model 3 because they want the model y. front and center in the automotive market right now. and pickup truck is what is in demand and it is what the automakers and big competitors such as audi and jaguar are doing. that is what the market wants and that is where the focus is. the concern is less interest for the model 3 and more interest for the model y. nejra: great to have you with us, thank you so much. bloomberg's ed ludlow joining us from los angeles.
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that is it for daybreak europe. bloomberg markets: european open is next. we are 30 minutes away from cash equity trading. features struggling for direction. listen to us on the radio on the way to back. this is bloomberg. you.
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anna: good morning. welcome to bloomberg markets: the european open. i am anna edwards in westminster alongside matt miller in berlin. asian stocks recouped the majority of last week's losses as china's premier announced a tax-cut. aheadan and u.s. futures of the cash trade 30 minutes away. ♪
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anna: 40 people have been killed in a terror attack on that mosques in new zealand. the prime minister can them some violence. >> what i can say is that it is clear that this is one of new zealand's darkest days. ♪ anna: third time lucky? theresa may keeps her brexit deal in play as she wins the backing of parliament to bid for an extension. plus, the boeing 737 max could be grounded until april as new evidence shows the crashed plane in ethiopia was configured to dive. >> it hits us hard. we lost the double of our own people. safety is of paramount concern -- we lost two of our own people on the outside and safety is of paramount concern to all involved. tomlet's.
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matt: take a look first off at an interesting i think risk indicator here in u.s. treasuries. investors are buying the bond, pushing the yield down to below two point 60%, it is now 2.6195%. interesting, we saw asian stocks rising and futures looking kind of positive. u.s. futures look better than european features. let us look at the european equity index futures trade and see where we are. a little bit of a diversion signal. the 10 year yield coming down, but green errors on deck percent. up .2 anna, what do you see their in westminster? anna: good morning, matt. let's talk a lot of it about what happened last night and what happens from here.
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theresa may having a relatively better day than she had early on in the week, managing to win a crucial vote to delay brexit in the house of commons. she also managed to fend off a number of amendments related to a second referendum and the house taking more control that would have made life difficult for her in the short-term. not a bad day for her all things considered. there are two strands of work. her deal remains in place. she brings it back to the house vote.eek for a third the other thing happening is that members of the labour party and elsewhere in the commons are trying to craft an alternative plan for brexit to see if they can get anything related to that to the house in an amendment. depending on which one of those wins next week, it will indicate just how long it is a there will be for the brexit process. what is crucial in deciding whether theresa may is successful will be whether she and her attorney general, jeffrey coxe, will be able to
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persuade both the right of the party and the dup, to come around to her way of thinking. to back her deal despite having rejected it twice. all these things points to a softer brexit and in turn add pressure on both sides of those factions to come in to line. maria to do is live on the ground. we heard little from donald fix yesterday. theresa may will ask for a delay. what are you hearing about how well that will go down in brussels? was some sense from the e.u. council, he said next week i will propose a long extension. he did not clarify whether it
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would be a year or two years, eyebrows higher in brussels. ultimately, this will be up to angela merkel and macron and so forth to decide unanimously, they all have to agree on whether or not to a grand the extension. at this point you could argue that there are two choices, thee or no deal, or accept extension, which the prime minister says that she just one extension. at this point they don't want to be blamed for a no-deal brexit. matt: absolutely, nobody wants to push the u.k. out of that you consider all the doom and gloom we hear about what that would bring. thank you very much, maria, in brussels. markets witho the mark ardmore, our bloomberg mliv strategist in london. risk-on day, if
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you look at equities in asia overnight and futures here. but on the other hand, we see investors buying the 10 year bond, pushing yields down a little bit. what is the market motive right now, and how much is related to the u.s.-china trade? mark: price action in equities has been unprecedented this week, much more resilient than i would have expected. overall, very positive. it shows is the belief that the rally at the set of the year will continue higher. i do think there are probably tailwinds ins than the short-term because of the optimism on the trade deal is already priced. hikeext substantial probably will not come until the trade deal is signed. the yield is much more of the inflation story. people are coming to believe that there really is no inflation threat, unless you believe the u.s. will start pursuing this modern monetary
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theory which keeps on entering the debate at the moment. it is a little bit worrying. we are all commonly discussing it it means it might suddenly start putting pressure on yields, but at the moment, it is not in play. anna: the overton window. that puts it in a frame of reference. boj was kuroda of the asked about it overnight and he is also not that impressed. speaking of brexit. we have been hearing in london all week, getting into in with the politics. it has been quite a volatile week for the pound, 1.324 cable. i guess the pound is waiting for next wednesday for the third vote. third time is a charm, to see if it will pass through the house of commons. mark: there isn't much spot positioning on the pound. people got burned so much in headline trading. but it could stabilize as people
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would for the news headlines to come through. what i found interesting is that there are a lot of people who believe that the vote will actually pass next week. given the performance of the last two votes, it would look pretty negative, but people expect there will still be a substantial rally to come in the sterling next few weeks. we confirm a much longer extension, which should be a positive relief in the short-term. we also discussed that was you get away from the release headline, we go to the long-term fundamentals, which are that the uk's economy is very slow growth, there is a large current account deficit, negative real yields backing the sterling and longer-term uncertainty if we have a extension. matt: want to get deeper into that. why does the market think of this deal will pass after being so incredibly defeated the last two times.
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? there were a couple of days where i thought she had got it, said -- i rees-mogg will support this if we get rid of the backstop. but if the backstop stays income of the u.k. will never be it were to negotiate its own trade deals. what will make them vote for this deal now? mark: the worry that a super long delay will it quick to being a second referendum. maybe even a general election, and the fact that exit might be canceled after all. i think that was the threat to may all along. the belief that many people in parliament might fear that. it is hard to envision. a two-year extension which task is seeking of a for example, and yet not having a second referendum. it is hard to imagine. the hard-core brexiteers don't want to take that risk.
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even the people think there is a chance it might pass it next week, it is just that they are not writing off that option. next week is expected to be the closest of the three votes. anna: mark, thank you very much. i do wonder what price the ert will put on their support if week.all into line next could we be talking about a new leader to the conservative party and what will that mean for the negotiations to come? the future is not nailed down, and that would be interesting. thank you very much, mark, for joining us. joining us from our london studios. if you want to reach out to mark, tv is the function to use on your bloomberg. the viviana hurtado joins us from new york with that news. >> a mass shooting in christchurch new zealand left 40 people dead. the prime minister says the attacks were carefully
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planned. police say that three men and one woman have been arrested. one of those arrested posted a manifesto online showing an extremist ideology according to the promised her. she called it one of these events most darkest days. >> you may have chosen us, but we utterly reject and condemn you. viviana: the u.s. senate blocked his declaration of a national emergency to pay for a border wall with mexico. this move highlights a growing willingness by republicans to split with their president as 12 g.o.p. senators voted to cancel the emergency declaration. this man was fired after being charged in a wide-ranging college admissions scandal. his family led a giant equity business focused on social goods. he also founded its growth investing platform. he was named in an indictment of
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parents taking bribes to put children -- parents paying bribes to put their children in secondary schools. global news, 24 hours a day, on air and at tic-toc on twitter,, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. matt: the viviana hurtado in new york, thank you. coming up, a level playing field. atna unveils a new law aimed assuring foreign investors. it's coming up next. can listen toyou us on dab radio in the london area. .here is the current team this is bloomberg. ♪
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♪ matt: will come back to bloomberg markets. this is the european open and we 14 minutes and 37 seconds away from the start of trading in europe and the u.k.. up when 2%, getting cac futures up .1%. haschinese government announced measures to counter slowing growth and encourage more foreign investment. lawmakers at the national people's congress say the new
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legislation puts all companies registered in china on a level playing field. for more, we go to bloomberg's chi china correspondent, tom mackenzie. tom, what have you heard today from china's leaders about their priorities for shoring up the economy? premierheard from the who had an opportunity to flush out some of the priorities. flesh out the priorities. he simply said flooding the economy with liquidity would bring up problems in the longer term. he said the focus for officials was fiscal support particularly for the. he talked about the tax cuts outlined over 10 days ago. they are worth about 300 billion u.s. dollars. he announced that they would be kicking in from the first of april. this is a 3% cut to their vat,
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part of the package that will really impact manufacturers. he also talked about the fact that they want to focus on these targeted measures. he talked about additional cuts to reserve ratios in the banks. we have seen five of them since early 2018, so he said that would be another option as well. he is trying to lay out at policy prescription. the data is still fragile, whether it is retail sales numbers, and of course, as the conversations continue on weaker taking a toll on the economy. anna: many in the markets are looking for this resolution in the broader trade tensions between the u.s. and china. foreign investment into china is many areas where the u.s. wants to see change around. how far does the new foreign investment law go into addressing u.s. concerns?
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focus for a real foreign investors in foreign executives. they fast track to the store and investment law largely as an attempt to show the u.s. -- they fast tracked this legislation to show the u.s. that they are serious. falseaw will ban falls tech transfer. foreign businesses will be viewed equally as domestic businesses. there will even be an appeal system if foreign businesses are denied a contract, for example. but they are skeptical about the broad wording of the law, they are concerned about how it will be implemented and frankly they say it doesn't go far enough to address some of the long-standing issues. so joint ventures
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that foreign businesses have here with their chinese counterparts may need to be rewritten, the contracts, which could throw a whole load of other complexities. how this log it's implemented is being met so far but the business community here with a sense of caution -- how this law is implemented. whether it goes far to address those u.s. concerns is still to be seen. tom. thank you so much, it is always great to get the latest from you in beijing. let us go to the bloomberg first word news with viviana hurtado in new york. annathe boeing 737 max could rn grounded until the end of april pending a software update according to u.s. lawmakers briefed by regulators. a screw-like device found in the crashed plane on sunday in etf yet is said to indicate that the
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-- on sunday in ethiopia is set to indicate that the plane was configured to dive and was in trouble even before the captains emergency request three minutes into the flight. the u.s. s.e.c. is suing volkswagen over claims the tomaker failed to explain carmakers that its diesel vehicle to did not comply with a emissions standards. the german carmaker has repeatedly said it in from the markets properly at all times. tesla revealed an electric crossover suv, the model y come at which it says will be available from the spring of 2021. the ceo telling customers at the launch event that the new model will play a crucial role in a driving sales. and boost a $39,000
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range of 230 miles per charge. anna, back to you. anna: thank you. up early for us in new york. here are a few minutes from the start of european equity trading. futures not pointing all that much higher. we will take a look at the stocks to watch in the early this is including ubs, bloomberg. ♪
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♪ anna: welcome back, everybody. six minutes to go until the start of the equity trade. let's look at the stocks you are watching. tom lavelle is looking at , bloomberg's dani burger is covering ubs and annmarie hordern is focused on h&m. wirecard has been the subject of a singaporean investigation into accounting irregularities in its business there. according to a report out today, of investigation is also looking at wirecard's indian business as well. willresult, this
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investigation has prompted citibank to lower its recommendation on wirecard stock to sell. so the stock is called down today. -- dani what are the ubs? theirthey have slashed pay by 100,000 swiss franc, and also acknowledging more cost to come to a fine. anna: annemarie, what is happening with h&m? annemarie's: first quarter sales beat estimates. they basically had to put some of the lower prices during christmas season to reduce inventory, and that is helping stocks. thanks very much for joining us. together latest stock story from our equities team, type firstgo
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into your bloomberg terminal. coming up, it is the market open with futures pointing higher. 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. 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. anna: a minutes ago until the
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start of cash equities. annmarie hordern joins us to bring us the start of european trade. let's figure off with the euro-dollar, trading at 1.13. csi 300 close down higher, more than 1%. asian stocks higher after those tax cuts being announced in china, of course, that could be good for the company. oil to the upside, brett trading. crude producers will be
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meeting over the weekend to talk about cut spirit -- about cuts. weaker, this is after theresa may one a number of unmanned entering 11th hour brinksmanship. this is where futures are stacking up, looking to be a positive start. up a tad opening higher, but relatively flat. we could potentially see markets to the upside after a better positive trading session across asia. futures are pointing to a higher start across the continent. london take center stage this week as theresa may gets the extension of brexit. let's take a look at what is going on across the sector picture. it is looking mostly green. we hna

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