tv Bloomberg Markets European Close Bloomberg March 18, 2019 12:00pm-1:00pm EDT
30 minutes left in the european trading day. from london, i'm guy johnson. vonnie:, from new york i am vonnie quinn. guy: significant changes in the brexit story. the speaker of the house of commons has decided theresa may cannot bring her bill back for another meaningful vote, as a result of which we are in a limbo land trying to figure out exactly what will happen next. we will give you a bit of analysis over the next few minutes trying to understand what will happen. the pound has fallen. down about .5%. a bumpy session for sterling. european stocks are reasonably flat. a decent move on the back india last week. the other story we are watching his deutsche bank and commerzbank. we understood these will perceive with a possible merger. commerzbank rising as well as deutsche bank. these two adding to the dax.
been weakerling has all morning in anticipation of what the speaker might say, staying theresa may cannot bring a meaningful vote without changes. we'll have to see what will happen in the next few hours. in the u.s., we have the s&p 500 just barely making gains, about 10% higher. boeing drags on the s&p 500. down more than 2%. the faa saying maybe boeing had too much control over its own checks and balances. boston scientific dragging down the s&p 500 on a heart device as an fda panel will be discussing the kinds of devising and mortality rate -- devices and mortality rates. isifferent heartfelt story edward life-sciences. that company is doing well after trials went well for it and it's about device. that is what is going -- its
valve device. guy: let's get back to breaking news. the speaker of the house of commons has blocked another vote on prime minister may's brexit deal. a reporter joins us now to provide illumination. you smirk because nobody knows what is going to happen next, do they? vonnie: the speaker -- >> the speaker has a history of pulling the surprises and he has not helped theresa may. the pressure valve is for her to go to the summit and face all of those people had on and say give me something because i cannot put my vote back. give me another piece of paper or something to work for because if not i am stuck. i think that is looking like the next possible scenario. deal --the same brexit this deal without changes. are there changes she could make that would then pass? flavia: he wants it to be
different. how different is up to debate. votess you've lost by 129 , you cannot put the same boat again. this puts the pressure on her to get something from the eu and say i know we've been down this road before, but i need something more. there is a sense that she has been trying for the past week to convince the hardliners and say it is my deal or no deal. that pressure is still there. it does not go away. the eu is dying to have this over and done with. out thate cannot rule at the summit they will come up with something else. if this had gone to the house of commons tomorrow, would it have passed with a threat of a long extension have had an effect on the dup? flavia: i hate to say this --
you can answer two ways. she lost the first one by more than 200, she narrowed it down to 150. the signs are it would've been hard to get through tomorrow. it would've been tighter. we are dealing with a constituency that are unpredictable and are not cowed by this threat that it is her deal or no brexit. she can convince them that brexit will disappear unless it is her deal but they are not buying it. that is what is at the crux of why she is having such a hard time. vonnie: does europe have to sign off on any changes. is there anything that can be done domestically or within theresa may's office that would satisfy things or does this need to be a more substantial change? flavia: the eu is being clear it will not have substantial changes. it can only offer tweaks and the crux of it is whether someone
like the attorney general comes back and says i have looked at this and i think we can live with that. we have had a series of shocks in the past weeks. cox was expected to give theresa may the green light and he pulled the rug out from under her. the speaker today has done the same thing. guy: the speaker saying that demonstrable changes to the deal are needed. the brexit deal must be fundamentally different. that sounds quite significant. flavia: it does. she could go to the summit and say i need more and they could provide something she could sell as such. do your point, this opens the door to all sorts of things. does she revoke -- are we headed into a new general election? that would change parliament and
change the configuration. all of these other options that have been peering at us from behind are coming into sharper relief. guy: flavia krause-jackson giving us the latest on what is still ongoing in the house of commons right now. for more on how this is impacting markets, let's bring in ubs equity strategist who joins us from zurich. a great deal of uncertainty surrounding the brexit process. if we were to end up with a long extension to the article 50 theess, would that change -- investors when it comes to u.k. assets? >> that would be very difficult. -- outcomemost related to brexit. long-term on u.k. stocks. all of the uncertainties around the u.k. brexit and the economy -- to emergingng
and u.k. assets as well. guy: the uncertainty will persist with a long extension. we do not know what the ultimate outcome of that would be. would you take assets continue to weaken in this environment? the story we have seen since the referendum of u.k. assets getting cheaper and cheaper. your sense would be that would continue during the extension process? claudia: it depends of which u.k. assets we are speaking about. the currency, yes. rising uncertainty would mean a weakening currency. if you speak about u.k. equities , then u.k. equities and nondomestic companies are correlated to the currency, you may have a positive on u.k. stocks. globally speaking, if you look at the economy, that brings a lot of uncertainty.
longer-term we have a negative call on u.k. stocks because of uncertainty of the brexit outcome. vonnie: you also say that until clarity emerges, you do not advocate taking directional views in sterling and advice hedging downside risks. what about euros? is there any benefit to euros or are you positive european assets, including financials? we have a neutral stance on eurozone stocks currently in our tactical asset allocation. look into eurozone u.k., is only the 5% of growth which is related to u.k. not a huge amount. the concern we have about eurozone stocks is related more
to domestic demand and shock related to european elections. clearly the eurozone is leaking economic growth to the u.k. the brexit outcome remains one driver. vonnie: as part of that view on european financials, you must have a view on consolidation and whether it is a good idea, say in germany, not to mention names, or italy. claudia: that would be a good idea for the eurozone overall because we clearly know with interest rates being negative, suffering for pressure on revenue and the sector is continuing to keep earnings flowing. consolidation in some countries like germany, but even in italy, it is important to get more revenue growth across the sector , which is underperforming since last year. guy: you think negative interest
rates are responsible for a significant chunk of the underperformance we are seeing in european banking stocks at the moment. there is a debate that is starting at the ecb about whether or not that is the case. your view would be the answer is yes, therefore we need to get out of this negative rate environment. at the same, but time is difficult because the economy is not doing well. is needing to sustain the european economy in the global sector within the eurozone. a negative interest rates puts pressure on revenue growth. related to sector is the differential rate between long-term rates in short-term rates. it seems we have this low rate policy -- we need an equity rebound in the growth within european funds. guy: in terms of the recovery we some ofng in europe,
the data are showing that at least things are stabilizing in the eurozone. as a result of which, you could extrapolate from that the european assets look cheap at the moment. is europe -- is this rally we are seeing going to carry on or do you think the negative data is ultimately going to feed through and prevent people from investing in this space? i think you had a good rally on eurozone stocks. this was mostly driven by lower stoppedd the fed hiking. for eurozone stocks, we need good data and we need earnings improvement. andelief was quite weak people are still expecting to see revenues and earnings from q1. what we see that is important -- we need more positive data
coming from the eurozone but also more positive data from china. imparting a lot to asia, so we need the eurozone in china to stabilize to see more equity outside in the eurozone. vonnie: what is the concerns you hear most from your clients these days? concernedlients are about trade deal and tariffs on the auto sector. concerned about asia recovery. in china in terms of fiscal policy and monetary policy. ifple are still wondering what is being done so far is enough to sustain the recovery in the chinese economy about monetary policy.
think investors are still cautious, even after such a rally in equity markets and we have seen equity inflow are not huge, like when a look at inflows into eurozone and american market. concerns about global growth and monetary policy. vonnie: our thanks to you. ubs global wealth management cohead of cross assets. let's check in on bloomberg first word news with mark crumpton. mark: in the netherlands, at least three people were killed in a shooting on a tram. nine others were wounded. police say to the possible terror attack in their hunting for a suspect described as a 37-year-old man born in turkey. the shooting took place in the city of utrecht. theresa may cannot put her brexit deal for another vote for parliament unless it is significantly changed. said it commons speaker
goes against parliamentary rules. what the government cannot legitimately do is theresa may it to the house the same proposition, or substantially the same proposition, as last 149. which was rejected by mark: wednesday is the last day of vote can be held before may heads to an eu summit where she will ask the block to delay brexit. getany as 1000 people maybe dead in mozambique after tropical cyclone swept through. president says heavy rains continue to pound the area which is hampering rescue and recovery efforts. a red cross spokesperson says the scale of the damage from the storm is massive and horrifying. decidereme court will whether to get involved in special counsel robert mueller's
investigation. justices will consider whether to hear a partially redacted appeal filed by an unidentified foreign government owned company in a fight over a grand jury subpoena, it is the first known effort to get the nation's highest court to weigh in on the mueller probe. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. vonnie: coming up, president trump ramping up the pressure on general motors. is it about the workers or about keeping ohio in his column in 2020? that is next. this is bloomberg. ♪
guy: from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is the european close on "bloomberg markets. " abigail: at this point we are looking at mixed markets. we have europe a bit lower. take a look at the dow, down .1%. the s&p 500 up fractionally but well off the highs. earlier we had the three major averages higher. the tech heavy nasdaq is just slightly lower. the dax also lower .25% down. we have investors treading water ahead of a big week. ahead of the fed decision on wednesday. there is news on the brexit. this appears to have to do with the pound trading lower, although it has rebounded to some degree. stocks on the headline that the speaker of the house of commons
has blocked theresa may from presenting her brexit plan unless it is changed. uncertainty continues around the brexit, again sending stocks slightly lower. but this in the context of the six-month chart of the s&p 500. here is the range over the last year between 2600 and 2800. this year's monster rally. more recently stalling in the sideways range, well above the important 2800 level. you can see upward resistance is pushing the s&p 500 down. it will be interesting to see whether buyers can overcome levels at 28. and analysts saying that is the critical level. another says it is below 2825. some of the movers on the day, let's take a look at the faang trade. this signifies what we're looking at. facebook down 2.9 percent, down a third day in a row. the worst three days of the year going back to that brutal
selloff of last year, being downgraded to a hold on the privacy pivot. amazon and netflix have gains and alphabet, down .6%. last week there was a bloomberg scoop on friday saying -- there are fears government could get involved in big technology. that could great volatility for stocks as we are seeing today in the faang trade. vonnie: thank you. president donald trump is keeping up pressure on general motors. calling for the company and the united auto workers to reopen of factory in ohio, saying the carmakers should close of factory in china and mexico instead. joining us of from the white house is kevin cirilli. said "why waithe to start talks in september or october. start them now." while the -- why this onslaught?
policy and is politics, the president doubling down on his criticism of gm and closing following the of a plant outside youngstown, ohio. if you dive into the ohio political map, that portion of the state is crucial for any political candidate who is looking to carry the key battleground state, especially as the 2020 reelection cycle starts to increase. , otherm. standpoint companies, including gm have criticized the president for his terror policies and trade policies cash for his terror fflicies -- for his tarri policies. the president is likely to be campaigning later this week in the state of ohio and it is coming at a time in which the president's trade policies are at the forefront of his entire policy agenda, particularly now. guy: the european union is
already talking about upping regulation when it comes to social media companies following what happened in new zealand. how much pressure is there on the hill to do the same? kevin: massive. yesterday are reached out to an aide for senator mark warner, the top democrat on the senate intelligence committee. they put forth a statement that says all of the social media companies, in particular google have to do a better job in terms of communicating not just with local authorities but also getting on offense in terms of how the social media platforms are used as a recruitment tools and mechanisms to recruit terrorists. 17 minutes was the amount of time facebook broadcast this horrific tragedy in new zealand. vonnie: our thanks to bloomberg's kevin cirilli at the white house. this is bloomberg. ♪
guy: live from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is the european close on " bloomberg markets." it is the biggest deal ever an international payment sector. fidelity has agreed to buy worldpay $443 billion, including debt. known as f i.s., offering a mix of stock in cash and the company will have revenue of $35 billion. huawei appears to be defying its global troubles. the company says revenue climbed the first two months of the year. the u.s. is pressuring allies not to use huawei gear for the new 5g wireless networks because the fear is the company helps china spy on the west. that is your latest bloomberg business flash. guy: a quick look at where we
are with europe the story over the last half hour has related what is been going on with brexit. the speaker not allowing theresa may not to bring her vote back to the house of commons. some weakening of sterling. limited to the downside in this market. that has an effect on majors. the ftse 100 has climbed as result of the weakening we have seen in the powell. -- in the pound. the dax is trading lower. stocks showing weakness. next, we will count you down to the european close. that is next. this is bloomberg. ♪ want more from your entertainment experience?
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italy.ance down in let's show you some numbers. the ftse 100 being driven higher by the pound, 7293. the mining stocks doing reasonably well. cyclical's had a reasonably good day. ftse 100 up .9%. despiteis trading lower the fact that deutsche bank is trading higher. commerzbank is no longer a member of the dax. it was replaced by wirecard. i mentioned italian assets. there they are. up .8%. we saw more positive view on italy and that is affected the periphery and ripple through into monday morning. let's take a look at deutsche bank, up about 4.6. commerzbank trading more strongly. it does not trade in the dax. ayden is a company listed outlook the netherlands.
i put this in here because we have had this worldpay transaction we've been talking about throughout the day. this is a company that competes in the same space. it does more fx transactional stuff, but it is in the payments business. if you're curious to see how the -- analysts not that impressed. italian banks doing better. we've seen unicredit trading up 2.80%. volume has been a little on the light side this monday morning. a lot of news flow to work our way through. after a big day friday, when we had all those expiring's, what we have seen today is a lighter session. that is look at the european close. vonnie: the s&p 500 is managing to stay positive, about .1% despite tracks, including belling and medical -- including belling and met -- including
boeing and medical device makers. the yield under the 2.60 market the moment. we'll have to wait and see what happens on wednesday but for now not much is going to happen. the dollar index is down. the sixth down session in seven. softness on euro strength. not all sterling strength. barrel butelow $59 a after the opec plus meeting suggesting plus will continue it looks like there is a premium for a barrel of crude. let's move to gms, global macro members and today we have g20. 3% psi is up almost overnight and some of the emerging-market currencies, some of the oil currencies are stronger today. the british pound an exception. guy: a lot of news on that story. also seeing a lot of news on the banking story out of europe. deutsche bank ceo has finally been given the green light for
merger talks with commerzbank. , barrington pitts miller, james henderson portfolio manager. joining us from london. is the fact that this is now going through from this deal between commerzbank in deutsche bank, is the mission by these institution -- is it an admission that things are getting worse? >> we have heard from a number of dealers about the challenges of q1. deutsche bank cannot of escape that trading -- that headwinds in trading revenue. it does suggest there is a need to accelerate recognition of the policy -- of the problem and move ahead with the deal. guy: the execution around this and the challenges are epic. you started the beginning and you work your way through.
they have to cut 30,000 jobs. they have to figure out a way of making the i bank work in this new formula. is it going to work? barrington: you mentioned the headcount reduction. that is a big number being touted. tens of thousands. we talk about the investment bank. it is quite a challenge politically to have a large investment banking division with over 1000 employees earning $1 million and cutting just thousands of heads in the local business. that is itself a quite serious challenge. i saw before i came on that unicredit is up several points. i'm sure they're looking forward to this transaction and the domestic fallout that will arise. a number of players who will take great advantage of what will be a half decade long integration process. another half decade the business is not moving forward technologically.
when you think about the amount that jpmorgan spends on i.t., five years of that? you could end up a long way behind if you're focused on the duration. vonnie: how much longer do we talk about this and at what point to the banks begin to start talking about a merger? it has to become a self-fulfilling prophecy at some point, doesn't it? clearlyon: the deal is an effort to protect a european headquartered investment bank. that is absolutely critical. more importantly, it is to restore the safety and soundness of one of the larger investment banks in europe. it is interesting with the government potentially having a role and a shareholding, that may be very beneficial. that may be the real benefit of this transaction. the funding cost dynamic and the credit rating dynamic has been such a headwind to deutsche bank could potentially reverse.
i was looking at numbers and it would seem even a combination deutsche and commerzbank would be looking at a balance sheet still only the 10th largest among global major after bank of america, hsbc, jpmorgan, and the same for market capitalization. with that make it a minnow among golden bank -- among global banks? barrington: heading for $1.9 trillion asset base, the second largest in europe. from that perspective, in the market of europe, they are very credible competitor. if your government owner at the heart of this institution, can you still remain a large u.s. investment bank? that is a question. the market cap is clearly a challenge and that reflects low profitability and i do not think this transaction addresses that without substantial cost-cutting. there will be revenue attrition,
and then we have to think about the capitalization. if you look at it on a global basis, one of the realities is leverage remains high. how much of the buildup to this can we put the ecb door? this is not just margins in europe. free percent plus in the united states. negative rates do not help -- 3% plus in the united states. negative rates do not help. if we do not have that scenario in the united states would deutsche bank be in the same position? barrington: the critical point is not just european interest rates. european margins were higher than they were 10 years ago with rates in a different place. guy: it is unconscionable european banks gave away their balance sheet for the amount they did. barrington: it is the german margins. when you have large groups of banks that generated 10 basis point return on assets, there is a mispricing of the balance
sheet at the regulator has not taken into account the importance of profitability. we constantly talk about liquidity ratio. ratio, about the capital the capitalization requirement. there's not enough focus on profitability and that has driven the situation to manifest itself, which is the company. when you merge these, you still the market share of that is approximating 10%. you're not going to transform the pricing in germany. i think it is time the regulators addressed profitability as a key metric for the banks performance. guy: regulator or the ecb? financial stability requires the first line of defense to be profitability, the ability to recapitalize yourself through earnings, not just recourse to the shareholder. vonnie: let me ask you more generally about your thinking these days. you sent a note talking about how the offshore u.s. dollar
market might be especially vulnerable. explain this argument. one of our concerns of the moment is market structure. we have seen a substantial increase in credit assets globally, helped by qe. a substantial commensurate decline in credit facilitation. there is a vulnerability in the system that there is no facilitation capital at times of stress. interestingly, the dollar market, the dollar market is now the domain only of large banks. the japanese dollar offshore swap market is two thirds in the hands of nonbanks. there are vulnerabilities in the system and we saw that in december. vonnie: how concerned would you be -- is this a minor concern or something that is stronger for you? what other concerns do you have?
point isn: the dollar a issue. it is a vulnerability for those non-us actors. it does have the risk. if dollar tightening continues, there is a vulnerability that those financial institutions that do finance really economies will candy up struggle -- with end up struggling to find dollars. the bigger issue that taxes my mind at the moment around the european financial sector is the earnings power. if we look back to 2016 to 2018 earnings growth, that was primarily driven by two factors. one was reduction of cost and the other was a low cost of risks. i do not think those tail winds will remain going forward. they may not be had winds, but that growth figure is going away.
the top line is being pressured, slowing growth. we know the ecb told us lower for longer. the margin pressure on going. we talked about the trading had winds in q1 and on top of that lower markets at the start of the year are our challenge. guy: a very quick question. you mentioned the possibilities of investors having to put more money to deutsche bank. you think that is likely? barrington: i think the need for restructuring charges will be significant. the goodwill or bad well is required to ensure capital ratios remain unchanged. bear in mind we have a situation with the company that has been -- the credit markets need to be assured the safety and soundness is beyond reproach. the capitalization has to be beyond reproach and you make this company into an even more important institution. i find it hard to imagine u.s. regulators will not want to see extra cushion on the seat. guy: we will leave it there.
barrington, nice to see you. normally to be found around the world on an airplane. barrington bit miller. vonnie: tomorrow, angela merkel will be joining bloomberg editor-in-chief john micklethwait live in berlin. that starts at 10:00 london time, 6:00 new york time. due to union. let's check it on first word news. mark: a judge has ordered prosecutors to release documents related to the search warrant that authorized last year's fbi raids on the home and office of president trump's former lawyer michael cohen. the redacted version of the document should be made public tomorrow. michael cohen is headed to prison in may for crimes including lying to congress and paying women to stay silent about affairs they claim to have had with mr. trump. the united nations says allegations of sexual exploitation and abuse dropped
in 2018, but claims against other u.n. personnel rose. in a report, the secretary-general stressed the u.n.'s zero-tolerance policy and called for still that prevention efforts. syria is slamming what it calls the illegitimate u.s. military presence in the country. ,yria's defense minister spoke saying his country has the right to self-defense. the united states currently has about 2000 troops in eastern syria and is expected to withdraw hundreds of them in the coming months. former obama economic adviser alan krueger has died. alan krueger served as the chairman of the council of economic advisors from 2011 to 2013. he was a longtime economic successor -- economics professor at princeton university. he was 58 years old. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. bloomberg.
back to you in london. guy: let's check where european stocks have settled. the london market in the french market both picking up during the auction process. the dax dropping. lundy -- london finishing up around 1%. the dax dropping today despite the fact we did see a significant rise in deutsche bank share prices. do not forget if you are leaving the trading desk to be getting the car or heading home, you can find ongoing bloomberg coverage on dab digital radio in the london area. plenty to discuss on the brexit matter over the next couple of hours. we'll be seeing quite significant and elements over the next hour. stick around. all of that is coming up with the cable. this is bloomberg. ♪
guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is european close on "bloomberg markets." guy: the bloomberg business of sports summit is going on. bloomberg's jason kelly is standing by with the co-owner of the team with the best record in the nba. jason, i'm here with marc lasry. he wears many hats. we will start with your favorite. managing partner of the milwaukee bucks. number one team, already guaranteed a playoff spot. how do you pull this off? marc: it is a long story.
if i told you everybody else would do what we did. we will try to keep it confidential. we got lucky. ,he first step is having jan is which everybody would love. the second step is having but -- is having bud. john has done a great job in putting this team together. what is interesting is everybody understands their roles on the team and is playing well. that has been a lot of it. you see the same on the business side as it is on the basketball side. if everybody knows what they are supposed to do, you find people are a lot happier and people love coming to work. you see that on business, you see on the basketball court. jason: we spend a lot of time with some of your fellow owners in charlotte around the all-star game.
it does feel like maybe compared to other leagues, the ownership groups and the owners collectively are happy with the league, happy with the on court product. how has that happened? that is not always the case. marc: i know this sounds a bit hackneyed but it all comes from leadership. adamu look at it, i think has done an outstanding job. all of the owners are on the same page. we know exactly what we want to do. it is a partnership between us and the players. that has gone as well as you can possibly have it. people -- more people are coming to basketball games and more people are getting into it. seems likeways -- it there are so many teams out there and so many players and so many stars, you want to feel like you want to be a part of it. jason: are you going to buy
another franchise in another sport? marc: i do not have an interest in doing that. i've my full-time job, and this is a part-time job. i love this. i used to play in college. you may not know. as i tell my kids, i was all-american, and they remind me i hardly got off the bench. the story is somewhere in the middle. there is no video so i can say i played all the time. i think part of it is i have a passion for the game. i like baseball, i like hockey, i like other sports, but i love basketball. jason: a lot of success on the basketball court. in your day job, you like stress more -- you like to stress more. where's the distress in the market. this has been an amazing bull run. marc: there's a lot of stress in the market. what i mean is last year the
economy grew greater than 3%. today, where's it going to grow? 1.5%? 2%? 2.5%? that will be a 20% to 30% reduction growth. we do not have a recession but we have a slowdown. for us on the credit side, a slowdown is great. there are opportunities out there that we can take advantage of today. jason: let us dig down a level deeper. what sectors are you interested in? retail is something people keep saying may experience more stress. marc: i think of opportunities on the retail side. i think the opportunity on the energy side. you are seeing that continue. and then you have a lot of idiosyncratic opportunities where specific situations that we are able to buy the debt. you have one situation today, i will not mention names, bonds
are doing 2023, that is the senior debt. in unsecured debt is due 2021. there is $2 billion in market cap and those are trading at 75. you will get paid off. i think will go to 75 in the span of the next two years. you'll a lot of that in the u.s., your baton of that in europe, and much more in asia -- you have a ton of that in europe , and much more in asia. were early to this asset class and it feels like more and more people coming in. as the demand for this type of investment enough to absorb all of these new managers that are going after this? jason: there are more and more people doing what we are -- marc: there are more more people doing what we are doing. competition is fine. if we see things earlier than other people, we will start buying what we bought and we can
get out. i like competition. i think we are ahead of the curve. the more people there, they take us out and they are taking more risk. jason: we talked about politics before. you've always been very interested in that side of the equation. into 2020, a lot of the rhetoric from the democratic side is talking about more of wall street, questions about in company quality. -- income inequality. how much do you worry about scrutiny on your business and broader wall street? marc: i think it is fine to have scrutiny. at times we get a little bit of a bad rap. but the vast majority of wall street is constantly doing the right thing. we should have a discussion because you want to talk about these things. to be honest, i do not think it is an issue. jason: marc lasry, milwaukee bucks, that is where your focus
is, you also have a day job being a leading investor. marc: thank you much. vonnie: great interview, jason. we'll be looking forward to more at the business of sports summit. shares of boeing falling again. kailey leinz is here with more. a bounce friday but back. wasey: the rally short-lived. detailing a cozy relationship with boeing and the faa and boeing's role in vetting the safety of its own jet. the faa outsourced a lot of that work which is not uncommon but boeing was heavily involved in that process. in boeing's safety report it has been unveiled there were key flaws underplaying this flight control software. the extent to which its rusted the nose of the plane downward and once that happened in the
pilot could correct, the fact that it could reset itself and forced downward again. these revelations have come to light. the concern here is this good increase testing, raise the bar as to what it will take to get the 737 max 8 off the ground once more. theimpact it could have on production timeline is raising concerns once again. guy: the backlog is big. they produce 55 of these jets a month. they've got a big order. they will be looking for parking. as an airline, do i want to order more of these aircrafts? : that is the exact question. the ethiopian airline has frozen their order of the 737 max 8 aircraft.
what kind of ripple effect could that have? are they going to cancel orders -- is the timeline with which they will get the planes because of safety probes -- a lot of questions in the air if you're an airline company. vonnie: kailey leinz with our stock of the hour. thank you. let's get a quick check of u.s. markets. as we approach the midway point in the session, the s&p 500 is being saved by the likes of edward's life appliances. the dow lower. more markets next. stay tuned. this is bloomberg. ♪
a manhunt is underway for a suspect described as a 37-year-old man born in turkey. authorities have raise the terror alert in the area to the maximum level and stepped up security at key buildings across the netherlands. france's prime minister is banning so-called yellow vests the champs elysees avenue, and to other french cities falling riots saturday that lets stores ransacked and burned from arson fires. the prime minister announced the new security measures today in cities where repeated violence has occurred since the protest movement began in november. demonstrators demands range from lower taxes to better public services. he says the police chief in paris is being replaced. flash floods and mudslides triggered by downpours have torn through mountainside villages in indonesia, killing at least 80 people and leaving dozens missing. sunday, an earthquake