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tv   Bloomberg Markets Americas  Bloomberg  March 20, 2019 10:00am-11:00am EDT

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and 30 minutes into the trading day in the u.s. from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." vonnie: lots going on in these markets. the s&p 500 down 4/10 of 1%. it is not such a dire story for the dow right now. i handful of stocks higher, including boeing. the worst, fedex performer, down 6%, the second downgrade in six months on its outlook of global growth. we also have general mills performing very well today, the best in the s&p 500 right now. it's premium pet food line is going to help it going forward, and it is raising its guidance. flat, earnings seem to be so not a lot to write home about.
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i did want to point out forward, automakers and -- point out generaltomakers in down today, experiencing a blowback on a story on how explorer owners are experiencing migraines and there is an investigation ongoing. guy: european automakers also trading lower today. bmw in particular trading down on its outlook statement. european stocks at session lows on the day. we are watching at the moment the pound falling. in fact, the lights have just been turned off and the foreign exchange market. is of the reasons for that that we are currently seeing theresa may asking for a short extension to the article 50 process. bayer trading down after they lost a second significant case in the round up trial, the weed killer
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apparently cause cancer. ubs probably the biggest story for financial markets today, trading significantly to the downside. at an event here in london earlier on, talking about the last quarter being one of the worst in living memory. course, financial markets are all awaiting 2:00 p.m. and the fed decision. joining us with what to look out for is state street global advisor's senior economist from boston. what will you be looking for first when the decision comes out? guest: first and foremost, i am going to look for the fed to clarify its own message because at the moment, there is a disconnect between what the dots have been showing and what we've heard from fomc members. that is one of the disconnects. is a disconnect
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from that commentary from the fed that has left the door open for further rate hikes and what the market is pricing in, which is no rate hikes and potentially a rate cut next year. we need to bring these two viewpoints closer together. vonnie: the 10 year yield here in the u.s. right now, the market is putting a possibility of a hike in any of the next seven meetings between 0.6% and 0.8%. how likely is it that we get another rate hike this year? guest: actually, that remains our baseline view. we certainly don't think we will get it today. i think the economy is likely to perform in such a way that those committee members who see the baseline as warranting another move later in 2019 will prevail. as far as i'm concerned, that remains the baseline, and i expect the dots to move in that direction.
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i do not expect the fed to move so drastically lower as to take right hikes the that they planned for 2019. guy: simona, good morning. guy in london. how big a challenge is the data for the fed at the moment? q1 data is historically unreliable. how much more difficult does that make the fomc's job here? guest: the good news for the fed is they have created enough space for themselves to allow more data to come in. so they are not in a position where they need to make a right decision at this meeting. even if they do expect a rate hike, i think that will happen later in the year, in september or so. for now there is time to get data confirmation for their views. it is true at the moment we are in a bit of a volatile period.
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it is hard to interpret the data because of the shutdown's lingering effects. we had that odd employment report a couple of weeks ago. we seen some of those in the past. i don't think it did notes a new trend. however, the message is patience for the time being, but this is not the end of the cycle. in my view, truly i think the fed is pausing, and luckily they have the luxury to do so after nine rate hikes in order to extend the economic cycle. thatat happens, with extended cycle comes more rate hikes. guy: big you have an where nero is at the moment? we keep moving at lower and lower. when does it actually kick in? guest: it is a big question mark. in relative terms, the fed has
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been very cautious in bringing down its own estimates of the unemployment rate. i would give kudos to the bank of england for being more forthcoming and aggressive in bringing those estimates down. it is fair to say that in the u.s., we are now starting to see more of the wage inflation we had been anticipating, and that is one of the key reasons why i feel the fed will go again. markets at the moment are ignoring the fact that wage inflation today is much higher than it was six months ago when people were talking about multiple rate hikes in 2019. the market is ignoring that at the moment, but the fed can't afford to. i think you are starting to see some signs of wage inflation, which would mean that unemployment at 3.8% is probably nearer to 4%. dotse: if we look at , and we have our spectrometer here as well, i'm
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curious as to where you think dots will migrate to. guest: i think for 2019, it goes from two rate hikes to one, and i would expect to see 2020 19 one rate hike as well. see 2020 maintain one rate hike as well. guy: we were highlighting earlier the difference between european banks and u.s. banks. how significant is what is going on in the rest of the world for the fed right now? to be honest, from an economic point of view, still looks like we are on different planets. that: yes, we've long said even though everybody is slowing , the outperformance of the u.s. economy relative to the rest of the world continues. i think that certainly remains the case. again, i would say it is important, and the fed is very patient at the moment.
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i fully expect them to reiterate that message. they do care about what happens overseas. our baseline expectation is that conditions overseas actually will improve as we progress in 2019, and also in europe we see the situation perhaps bottoming out in fourth quarter and improving a little bit going forward. i would expect that while there is recognition of this weakening global growth, the fact that you will get signs of stabilization will be reassuring enough for the fed, sometimes in the second half, to bring the rate hike back onto the table. guy: simona, thank you very much indeed. state street, global advisors senior economist, joining us on this said day. here with the first word details, kailey leinz. taylor: prime minister theresa
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may has asked the european union for a three month to extension on the brexit deadline. may goes to brussels tomorrow for a meeting with eu leaders. president trump heads to ohio today in what could be called a tale of two factories, visiting a factory by general dynamics, set to grow by 400 please to 1000 -- 400 employees when he took office to 1000 by the end of the year. it is a way to take pressure away from the general motors plant where he was said to bring jobs that has now closed. opened a newt has set of inquiries into the boeing 737 crashes. elaine chao has asked for a wide from a criminal investigation the inspector general is conducting. former vice president joe biden has begun telling some
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supporters he plans to run for the democratic president will nomination. bloomberg has learned biden is expected to announce his intentions in the coming weeks. he is 76 and has led early polls of primary voters. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. guy: thank you very much indeed. coming up, ubs calling its first quarter one of the worst in recent history. details of what they had to say a little earlier, next. you can see the effect on the share price, dragging the smi with it. this is bloomberg. ♪
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♪ guy: life from london, i'm guy johnson. vonnie: from new york come on vonnie quinn. this is "bloomberg markets." let's get a check on global markets. here's abigail doolittle. abigail: a bit of a bearish tone to trading action in the u.s. and around the world. the s&p 500 down about 3/10 of 1%. we had a choppy day yesterday, where we were sharply higher and then slightly lower at the of the day. the dow transports really underperforming, down 1.5%. the german dax down 1.5%, its worst day since early february. that being dragged down by both bayer and bmw. emerging markets slightly lower, down three tents of 1%. all of this ahead of a fed decision on the policy pivot in the balance sheet. we have haven bonds trading higher, the yield lower. some safety being sought as stocks do decline as investors wait for more information from
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the fed. as for what is dragging on indexes in the u.s., especially the dow transports fedex and use ps -- and ubs. -- and ups. estimates for the second time in arroyo. johnson & johnson -- in a row. johnson & johnson down. those were some of the drags on the day. the dax transports really underperforming, let's take a look at this chart in the bloomberg. what we are looking at here in blue, the s&p 500, and white the dow transports. the dow transports were said to be a leading tell on the economy with all of the transportation stocks and companies with a net index. now people are saying it is more around the faangs. leadransports did seem to
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to the downside from the beginning of last year, include last january's increases. the s&p 500 up 5.9%. this weakness, if it breaks below that low, could be a bearish signal not just for dow transports, but perhaps the s&p 500. something to keep in mind. guy: always keep in mind. thank you very much indeed. ceo sergio ermotti is giving the most decisive verdict yet on difficult markets being faced by investment banks. anfind it to be acceptable outcome if it is a difficult first quarter we are facing at the moment, one of the worst we've seen in recent history." let's talk now to our finance reporter patrick winters, who give us a take on
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this. patrick, he's given us a laundry list of problems they are facing in the first quarter, really quite damning. ubs has been perceived to be not that bad shape. recently at your -- not that bad shape recently. patrick: definitely a bit of a shock. ubs really is the gold label of banks in europe. it definitely trades to the premium, and people probably thought deutsche bank is doing too well, credit suisse has legacy problems to deal with , but ubs now saying they've had a bit of a shock over quarter, and i think it is the wording of sergio ermotti's comments today. we've just had so much impact, saying it is one of the worst first quarter environments in
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recent history. vonnie: there's also the case of potentially setting the bar low and hopefully beating expectations. you want to be cynical about it, you could say they are trying to get the news out now that the quarter hasn't been that great, and then they can come back with first-quarter earnings in april and surprise everyone with how well they actually been doing. but i wouldn't necessarily see it that way. toust think they have come the point where they are now thinking we have to be fairly blunt about things. we have to make a calculated assessment of how we are doing. and let's not forget their new targets, which they set just in october, are partly dependent on how the markets are doing. if the markets are not doing well, they are going to have investors immediately asking what that means about the targets. that is perhaps something which has pushed them into making a statement today. guy: patrick, ubs is seen as
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having one of the most stable business models out there. it moved away from i banking during the financial crisis becoming a much bigger asset manager for the wealthy. that was supposed to protect it from what was going on. in a low volatility environment with a great deal of uncertainty, the real risk for ubs is that it's high network clients simile don't know what to do, and are therefore kind of paralyzed into sitting on their hands. biggest indeed, the risk for ubs is that the high net worth clients, the millionaires and billionaires that ubs knows so well, just decide to not do anything, or even worse, hoard cash. that is obviously the biggest problem for a bank, when there clients don't invest, but just say we are going to hide all of our cash under a mattress. vonnie: citigroup, j.p. morgan, many banks have come out with warnings either for individual units or for the entire banking
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revenue. is this something that might go away as soon as there are fewer trillions of dollars of negative interest rates out there? patrick: it is definitely pegged to interest rates. i would say that is a factor. it depends on how well equity markets are doing, too. it is honestly a very difficult question to answer. that is why these banks are taking it quarter by quarter. that is also why they are very hesitant to give long-term outlooks because lots of these things are just not in their control. guy: patrick, thanks for the update. fairly big story being covered on the bluebird today. patrick winters joining us -- on the bloomberg today. patrick winters joining us out of zurich. vonnie: ubs down as well, and markets more generally are lower today in anticipation of the fomc decision and earnings news. 1% with awn 4/10 of
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handful of stocks higher. s&p 500 also 4/10 of 1% lower. the nasdaq still down to tenths of 1%. the dollar index is holding its own today, 96.43. this is bloomberg. ♪
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vonnie: live from london, i'm guy johnson. -- guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." let's get over to taylor riggs. taylor: joining me today is sean carney, blackrock's head of municipal strategy. this year some of the best starts going back since 2014. evaluations now look a little bit stretched to you. guest: they have been on a bit of a tear.
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if you go back to november of 2018, munis have been doing well since november, up almost 4% year to date. if the question becomes our valuations stretched, on different parts of the curve they measure differently. on the front end, they do measure longer. on the longer end there is more value. there's an opportunity there. but whenever you have consecutive months of back to back to back positive performance, i think the market is looking for some type of pullback to get some money off the sidelines. this marketuch of is supply and demand technicals. andnd really overpowers sort of leads to a rally come of it as we headed to q2 and some of the seasonal tax weakness we get, you typically see some underperformance. are you prepared to get a little more defensive for some underperformance heading into
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q2? guest: coming into the year we were talking about a more seasonably correct year in 2019 compared to some of the disruptions in 2017 and 2018. we did have a very strong january, but that demand hasn't subsided at all. it is $22 billion that has been put into long-term mutual funds year to date. that is sensational. we don't have any data in history that is that strong. with retail back in the market in such a fantastic way, we are thinking some of this seasonal weakness that would tend to leak in in march and april may be a bit subdued. the market looks for a backup here to maybe put some more money to work. whether it gets it or not is still the question given how strong retail demand has been for the asset class. taylor: we often compare the muni to treasury ratio. the last i looked, we have a chart that dipped under 80%, which typically looks a little rich. you also have a note saying you can compare munis to corporate, aa, walmartork city
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aa. how do those compare? guest: very favorable for muni's. if we take a new york city geo compared to a corporate double bond on a pretax adjusted basis, they look relatively fair. but when you tax adjust the muni as you need to and add that tax munisdicare, muns -- out yield all the way down the tax bracket. the large take away is that the audience that is and should be looking at minas about bonds is more broad -- municipal bonds is more broad. investors are. having conversations around tax time this is going to become or evidence to a broader audience, and demand will continue. market i think the muni will certainly welcome a broader market. thank you. that was sean carney, blackrock head of musical strategy and primary markets.
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taylor: thank you. -- guy: thank you. disappointing day if you are long markets, specifically on the dax today. getting a one-two punch from bmw and bio. you can see significant underperformance we are seeing in germany, down by 1.5% right now. the cac is down as well. the london market has faded over the last few minutes, bolstered a little earlier on by the weaker pound. the dax is the center of attention today. the smi under pressure, too. the ubs story certainly dragging on the swiss markets. this is bloomberg. ♪ this isn't just any moving day.
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simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. ♪ vonnie: we are just moments away from u.s. oil inventories come expecting 6.2 thousand this week following a drawdown of 6.8
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million last week. wti is trading down about $0.11 $58.92, and we are also looking for inventories to show a drawdown. once again, the market looking 602,000, after a drawdown of 5.98 9 million. we are getting reaction immediately from the market. refinery utilization was up strongly, 1.3%. distillate inventories, another when we watch very closely, down 4.2 million barrels. the market was looking for a drawdown of 1.3 million. same thing with gasoline inventories. guy. guy: vonnie, let's catch up with
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the news we need to know, apart with what is happening with oil inventories. here's kailey leinz. kailey: british prime minister theresa may wants the european union to extend the brexit deadline to june 30, but it is not clear if she will get it. a spokesman says european commission president jean-claude juncker warned may against any extension past may 23, likely to make for a tense meeting tomorrow when may and eu leaders gathering brussels. in houston, the fires at a patrick michael facility have been put out. the blaze ash at a petrochemical facility have been put out -- at a petrochemical facility have been put out. the blaze began sunday. fears the cloud would to send prop to school to be canceled today for tens of thousands of students. president trump ripping up the fight with one of his top aide''
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spouse, calling kellyanne anday's husband "a loser" jealous of her success. bill gates has rejoined the world's most exclusive club. the fortune of the microsoft cofounder has once again hit $100 billion. and amazongates founder jeff bezos the world's only sent to billionaires -- only centibillionaires. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. vonnie: thank you. the 2020 race for the white house is heating up, with president trump headed for the battleground state of ohio today. the democratic field preparing for a major shakeup. all of this against the backdrop of new uncertainty surrounding a possible u.s./china trade deal. we are joined by kevin cirilli,
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bloomberg's chief white house correspondent. today's visit is fascinating. tell us why this is very much a tale of two factory towns, lordstown and lima. kevin: the president trying to espouse that there is a political policy victory of sorts on the manufacturing level, but that said, just across the state in lordstown, ohio, general motors has decided to close down its plant. yesterday i spoke with dave green, a democrat and leader of the united auto workers union in that particular plant. he said he is encouraging president trump to take a drive through to see the thousands of workers that have been laid off their. the bottom line, as you alluded to, is this is battleground zero for the trade policy debate internationally that is playing out in the key political battleground state. the president later this afternoon anticipated to make those remarks following his
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tweets against general motors and its ceo and union leaders there as well. ohio is no question that is truly very much a part of the president's political coalition. i can tell you i've heard from staffers of several 2020 presidential candidates already planning stops to lordstown as a result of this situation. guy: kevin, a lot of news over the last when he for hours when it comes to the trade story. you bring it up again. i guess it does relate back into what you are talking about. kevin: yesterday at the rose garden press conference, the president said u.s./china trade talks were going very well, fresh off the news china was considering not following through on deliveries of the boeing mac 730 78 -- the boeing 737 max 8 family that has been grounded. that is a key nonstarter for
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many americans of both political parties. meanwhile, the news from bloomberg that china would triple purchases of agriculture exports is positive development for the president's political coalition. of course, treasury secretary steven mnuchin and trade rep is of -- trade representative bob lighthizer head to beijing next week. no indication on when president trump and president xi will sit down together to finalize any agreement. biden,vice president joe the worst kept secret in politics, is gearing up to launch a presidential run for the white house. there's a lot of folks who suggest when he gets into the race that this would be the official start of the democratic primary season. he has without question name recognition, access to donors, and you would be marking a
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political pillar of sorts from an ideological standpoint that contrasts someone like senator bernie sanders. what is interesting is how the other candidates will fall into that spectrum, someone like a senator elizabeth lauren, who has refrained from using the term democratic-socialist. all of these jockeying's and tensions, it is still very early. it is not really going to heat up until the fall, but the first debates will happen the summer. guy: is it going to be -- i'm trying to figure out what is going to happen first. is it going to be mueller or brexit? kevin: if i had to guess, and i'm not in the guessing game, i would say that brexit at this point might come first. but now that i've said that, watch us get the mueller report any day. i am in constant fear i will not be near the camera when the mueller report gets released. vonnie: don't worry. we will get one straight to you. [laughter] vonnie: are think to bloomberg's
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kevin cirilli -- our thanks to bloomberg's kevin cirilli. guy: the u.k. government seeking a short extension until the end of june. the pound didn't like that earlier on. sterling coming under pressure. the cable rates certainly dropping. that is next. this is bloomberg. ♪
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♪ guy: live from london, i guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." guy: prime minister theresa may has asked the european union for an extension to the brexit deadline until june 30. for more we are joined by bloomberg's maria stern from
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brussels ahead of tomorrow's eu summit. there was some expectation theresa may would ask for a longer extension. how has this short version gone down in brussels? reporter: it is a short extension for the prime minister , but same prime minister who said there would be no extension to brexit, that the u.k. would leave march 29, deal or no deal. when it comes to the eu, clearly it has not gone down well because they think this is not doable. nothing has changed to convince them that the u.k. prime minister can get the deal done, and they think this is more of a binary choice. you will have to decide whether to go for a longer extension, but also people in brussels see the actual deadline as may 23. that is when the european elections will take place, and everyone i've spoken to today has told me it is crystal clear if the u.k. is a member state of the eu, they have to run in the
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election. if not, they run a very real risk of a no deal brexit. vonnie: the eu commission spokeswoman actually tweeted out today "brexit has to be complete otherwise eu, elections 2019 has to be held in the u.k." it is a bit of a ludicrous situation that has to be taken seriously by brussels at the u.k. are there candidates? will people run? maria: that is the big question here. this is what i get told many times, you almost have to see the situation the way the europeans look at it, which is that there is real political chaos in the u.k.. the prime minister's future has been called into question. we don't know whether this deal will get cleared by the u.k. parliament now, in two months' time, or maybe never. if the u.k. decides it doesn't
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one to participate in the european elections, that may bring legal questions about whether the formation of the european parliament is valid. anything they approve may be challenged in court. that is a very real risk for the union in the eyes of the european union. the lawyers here keeping a very close eye on the deadlines. they also think politically it is very difficult to sell this if we turn this into a yes or no, does the u.k. stay, and almost hijacked the entire process. people are not happy on a legal front, but also politically because they feel we are almost back to square one, and nothing gets done. guy: the german court has been very clear on this. in theory, the u.k. decided it didn't want a no deal brexit. in syria because there are a lot around that -- in a theory because there are a lot of ifs and buts around that. the market has priced out a no
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deal brexit. is that how brussels sees it? maria: the short answer, no. brussels will tell you, and this is very clear, that until there is an alternative to a no deal brexit, the default will be a crash out march 29. obviously that brings the question whether the eu will grant an extension. they face a difficult question here because you could argue if we don't grant an extension prime minister may is asking for, we almost precipitate a whole chain of events we don't want to get into. they will tell you many times everyone needs to be aware that there is a real risk of an accidental no deal brexit, and that is the message the institutions here, the commission, the council, and so on have reheated -- have repeated to member states. you need to prepare for no deal. even if you do get that extension, you are delaying the risk of a no deal brexit until may. may -- maybe
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vonnie: according to a person familiar with the matter, the dup strategy is to wait for the summit to see if there will be any more concessions. now the belgian foreign minister says there's the possibility of another eu summit. with the eu be willing to gather leaders again if there weren't to be some sort of movement in the next week? maria: they would if it is clear it would help prime minister may get the deal through the u.k. parliament. despite the political commotion, the base case scenario is still both sides want to get the deal done. we also heard from jean-claude juncker today that it may be a situation where we get to friday and eu has not made a conclusion to this extension, so we have to be back. the prime minister may also decide to put this to a new vote, but the speaker won't let this happen unless significant changes are made to it.
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what i've been told is that the withdrawal agreement, the divorce of this deal, the eu will tell you that as a no deal. we don't want to go she ate that. but there is some -- to negotiate that. but there is some wiggle room in the political declaration if she would stoop at the deal to a third vote. vonnie: bloomberg's maria tadeo for us. our thanks to you. 's've been speaking to china ambassador to the u.s. >> fortunately we know how to handle such differences. [indiscernible] make comment on the eupetition between china and if the cooperative comfort dish and witches -- cooperative
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competition which is helpful for bilateral relationship. vonnie: we also spoke about trade tensions between united states and china. >> from the very beginning, we --e announced now we can see china and the u.s. come back to the table for consultation. the consultations have made progress, but yet to be finished. consultationch , butbenefit not only china the united states, as well as the international community. vonnie: that is china's
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ambassador to the european union speaking to us earlier. guy. guy: let's talk about the dollar rising a little bit today ahead of the fomc decision a little later on. it's been down for the last three days. futures and focus is next. this is bloomberg. ♪
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♪ guy: live from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is "bloomberg markets." time for futures and focus. philip is joining us from the cme. the dollar is still quiet. what do you anticipate will happen market action wise later on? guest: we expect the fed to
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continue to reiterate they will be patient with us, and the past of reese -- the path of least resistance. u.s. data has weakened recently, especially the housing market and jobs market. the fed would have a much different tone if we would see an agreement with china being made. growth would be much more robust and the fed much more hawkish on this. as far as the dollar, we do expect it to weaken, and other asset classes like metals and energies have an opportunity to start to push back up. vonnie: gold is above 1300 right now. i do want to all skew about oil because we have a surprising round of data this morning -- want to ask you about oil because we have a surprising round of data this morning. we got that massive number earlier. what happened down at the cme? guest: we saw quite a bit of action, especially in crude oil.
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$60 is right around the corner, and that is opec's target. it will be interesting to see if trump comes out and tweets something about oil prices to try and push it back lower. it has been really a two-sided affair between opec, russia, and the u.s.. vonnie: do you anticipate we will see that $60 mark? you would have thought a drawdown of 9.5 million barrels last week would do it, if anything, but we are back well below it again. guest: the key is we are still holding well above the five-year average. we still need to burn up some excess supply. also, venezuela, we've got to continue to monitor that situation. u.s./mexico,s canada agreement -- u.s./mexico/canada agreement past parliament that will affected as well. vonnie: we are seeing some money flow into the 10 year before the
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fomc. does any of that money come back later on? guest: i think so. we could see the 30 year push out. we've been stuck in this range for quite a while now. the key everyone is watching is healthy balance sheet, how the fed talks with their dialogue. i think that is where you are going to start to see most of the action in the markets once that dialogue hits. streible of r.j. of futures coming to us from the cme -- of rjo futures coming to us from the cme. thank you. ubs ceo sergio ermotti saying the bank is having one of their worst quarters in recent history. bit of a bombshell. emma chandra is here with more.
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emma: last week he had said that client have been cautious thus far, but the strength of the language suggests things are worse than perhaps people thought back then. action to slow down its pace of hiring and deepen cost cuts by some $300 million, but we are still seeing the news impacting other european banks. all of them falling today. the banking sector one of the worst performing sectors on the stoxx 600 today. seeing some cross over into the u.s., but obviously a little more impacted with what is going on with the fed. it all adds to a picture of a very weak first quarter. citigroup, j.p. morgan in recent weeks saying there have been weaker trading revenues in this quarter compared to last year. people familiar with the matter saying it was pretty tough for deutsche bank, too. vonnie: even though we've seen rallies on both sides of the atlantic this year, has ubs missed out? there in best question
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terms of the s&p 500, the stoxx 600 both putting in games of around 13% so far this year. also equities rising around 10% in asia. the culprit seems to be low volume, low volatility. the theme for the week for us here at bloomberg, low volatility. i have a nice chart for you which shows you how volatility has fallen across equities, currencies, and treasuries. it really seems that investors haven't been able to regain the full confidence since that slide back in december. of course, i should also mention that the ubs ceo sergio ermotti also saying there's been little merger or ipo action outside of the u.s. guy: and chandra, thank you very much indeed. vonnie: time now for your latest bloomberg business flash, a look at some of the biggest business
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stories in the news right now. the european union has opposed another big -- has imposed forher big fine on google $1.7 billion for thwarting advertising rivals, based on brokers role as an ad for websites. meanwhile, the u.s. supreme court has told a lower court to take another look at a privacy suit involving google. did not resolve the issue. the court has taken up the case to do withthat have class. action settlements -- class-action settlements. disney has closed its acquisition of 21st century fox entertainment assets.
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ceo bob iger has promised $200 billion in cost savings that all but assures job cuts. that is your latest bloomberg business flash. guy: quick look at where the european stock story looks right now. we have been edging lower throughout most of the day. we are certainly seeing significant weakness when it comes to the german market today, really driven by bmw and bayer. we will catch you at the close a little later on. "balance of power" is coming up next. david westin will be joined by the former director of the u.s. economic council. looking forward to those conversations. that is next. this is bloomberg. ♪ you.
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this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. ♪ david: from bloomberg world
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headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. more twists and turns on the road to brexit, and google's big fine from european competition authorities. let's start in washington. president trump is going to ohio. why? kevin: the president in ohio will tout manufacturing on the news that treasury secretary steven mnuchin and u.s. trade representative bob lighthizer are headed back to china next week to continue u.s./china trade talks. meanwhile, across the state in lordstown, ohio, just outside of youngstown, a key balogh ground portion of the state, general motors -- a key battleground portion of the state

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