tv Bloomberg Markets European Open Bloomberg March 27, 2019 3:30am-4:00am EDT
>> welcome to "bloomberg markets: european open." i am anna edwards in westminster ahead of today's vote in parliament. ♪ anna: the road to normalization, ecb president mario draghi speaks in frankfurt shortly amid increasing doubts about returns to neutral policy. mais poisoned chalice. showed signs of backing the prime minister's
brexit deal, but could the cost be her resignation? and dovish turns. san francisco fred president mary daly urges patience while the new zealand central bank says they could join the shift, sending the kiwi dollar tumbling. very good morning, everybody. i am live in westminster. continues, and we have full voice off-camera, apologies. a little bit higher at the start of the trading day, we have seen in the asian equity section a mixed picture coming through. japanese markets weighted down by the weight of dividend stocks. but chinese and lee markets going a little higher this morning. on the brexit front, a focus on the schedule later today, after prime minister's questions, we
moved to the indicative vote, first the debate around the process and then on to the actual voting itself. we look to have some answers, one of these that the house could back. this between 8:30 and 10:00 this evening. plenty to watch for as we build toward those results. have other ideas about whether they want the book process to go have -- go ahead? there is what is happening in the house behind me on indicative vote, and still the prime minister trying to get her meaningful vote in front of parliament. could it come tomorrow or friday, and how will that throw things off course as far as those on the indicative vote side are concerned? we will talk more about frexit in the minutes ahead. let's get back to the markets. tour markets -- our markets live strategist joins us. in terms of what we are seeing in the markets overnight in the asian session, the big story really about new zealand.
theme ofigger dovishness in central banks. is it because the data in new zealand deteriorated in the central bank makes this move, or announces it could be more dovish in the future, or is it the central bank trying to play catch-up with the global trend? mark: you're right, the new zealand story is the main story of the morning in asia. they made a dovish shift only six weeks after toning down expectations for rate cuts, they were clear the next move would be a rate cut. it's all the rates in new zealand collapse and the new zealand dollar collapse as well. the data in his england hasn't been -- in new zealand hasn't been too bad. it seems like they are feeling pressure to do this. all of the global central banks are shifting to more dovish positions. we are seeing a currency war theme, the idea that everyone else will be dovish and so i need to be dovish or my currency
will get too strong and will hinder my trade. trade already impacted by the trade tensions. that has been the big story here. i think it is probably a misguided move. new zealand is late to the party, the data is trying to pick up, and there is a chance that the massive policy support we are seeing from global central banks in the last few months will see the global economic outlook pick up as well. anna: let me ask you about the low interest rate environment and what that does for assets, it's been a big talking point that the global moves lower in yield. our yields low enough now, this is a question of the day, our yields low enough now to think a rally in stocks? mark: i think they are. think over all, the policy framework is exceptionally supportive for equities right now. we have seen equities largely treading water the last few weeks, there have been some short moves in either direction but not going anywhere fast. there has been the general idea
of the yield curve signaling a negative outlook. i think this is misguided. interest rate curves are showing inflation expectations. there is a lack of inflation there. growth is ok. as --yield curves are not not reflecting the growth outlook. they are slightly separate issues. it is an awesome issue for risk assets. ratesly do the interest reflect inflation expectations but also that there's too much money out there, too much liquidity divided by central banks and high-yield like positive yields in the u.s. in 10 year treasuries look so attractive when there are so many negative yielding bonds out there. the overall environment for the month ahead is exceptionally supportive for global equities. i think equity markets will do we -- will do well the rest of the year. i think global equities could do strongly. anna: great stories on the bloomberg over the next -- the
last 24 hours about the bond market. mark, thank you very much. remember, you can join the debate on today's question of today, are yields low enough to spur a rally in stocks? reach out to the team and those team,on the markets live tv is a function to use on your bloomberg. get your first word news update from debra mao. debra: apple has dodged one import ban in its fight was qualcomm but faces another. the u.s. international trade commission has been validated qualcomm patent for a battery saving feature, but earlier in the day, a separate judge said on aapple had infringed different qualcomm patent. he recommended older models of the iphone be banned. parliament is preparing to vote may'sal plans to theresa brexit deal. it could soften brent charger from the european union or cancel it altogether.
as the risk of not leaving rises, pre-brexit supporters say they could support the primaries to steal but the price could be that she has to resign. the global iron or market is likely to have a shortfall, that keating -- according to the fortescue metals founder. the billionaire caution that other producers could face constraints. >> i think there will be a supply deficit and our operations are massive. we have huge railway lines and ports, and you can't just turn up or down the dial that easily. the uk's gender pay back -- gap is not explained why role. 39% of the wage gap could not be explained by observable factors,
but could come down to workplace bias. female workers on average earn 5% less than male counterparts. this when the figures are reflected to adjust -- adjusted to reflect characteristics. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you. debra mao in hong kong. ising up, theresa may thought to fall on her sword to get her deal over the line. resignedprime minister to claim victory in will that bring her success in her meaningful voice -- meaningful vote? we are live in westminster with the latest development. at to the ecbaghi and watchers conference. we will bring you the keynote speech live, at the top of the next hour. and remember, bloomberg radio live on your mobile device or digital radio in the london area. this is bloomberg. ♪
asia way down a little bit by dividends and the japanese market. u.k. parliament has finally decided to take control of the brexit process, at least temporarily. it is preparing to vote on rival plans to theresa may's deal. the aim is to find an agreement that could get a majority, something the prime minister has not been able to do so far. how will these indicative votes work? in pisa can put forward alternative proposals, but it is up to the speaker of the house of commons to decide which are voted on. the chosen ideas will be put to a ballot and members decide to support as many as they like, voting against -- they like. voting is scheduled for 7:00 p.m. local time. on monday, the plan is to take a closer look at two or three of the ideas that proved the most popular amongst lawmakers. that's get further thoughts on this and a detailed analysis. alex joins us. a researcher at the institute for government on the green.
welcome, thank you for joining us. mp unprecedented is this takeover of the agenda? alex: it's not unusual on specified days. what is significant is this happened against the will of the government. what that means is the government has essentially lost the trust of the house, and the fact that parliament failed to take control in this way underlines that fact. anna: it is definitely going to happen, the indicative vote process? voting,hey get into the they have to decide on the process, which will happen between 2:00 and 3:00, thereabouts, and there could be attempts by those who don't like what they are -- like what is going to happen to wreck it. alex: could be. people could have decided they don't want it. anna: this is the house motion
which essentially -- alex: it sets out the process. that could be alternatives could be tabled or amendments that could be tabled. it is possible. chances are they will try to ensure and counteract any of those amendments, but it is a possibility. anna: how much does this tell us about the future path of brexit? figure in the conservative party says that the government should listen and dictate the way forward, but the executive has been hesitant the said it will take orders for now. alex: one thing to underline is that these folks are not binding on the government. another point is that no matter what the future relationship for the tour is, the government deal still has to pass. most of the government's deal is about the withdrawal agreement and the terms of exit, and nothing about that changes depending on -- if you have a
majority for free trade agreement, for instance. anna: help me understand this. a lot of what they are voting on here looks like a smorgasbord, a mixed bag of options. some of those relate to the withdrawal agreement but most relate to the relationship. the future relationship is not legally bound at all, it's only the withdrawal agreement. some of them even rely on maine's withdrawal agreement being part. -- on may's withdrawal agreement being part. alex: i'm sure it's the government's point of view that this is largely irrelevant and it's mostly about the political declaration it was nonbinding. separate the declaration from the agreement, however, where you are going obviously changes the terms of the withdrawal agreement. the future relationship will determine how necessary in part the backstop is paid -- backstop
is. there are number of different ways to do that. the future relationship does reflect on the withdrawal agreement. particularly on the longevity of the backstop. you heardy [indiscernible] the documentation lists many options rather than a set path forward. apologies for the noises off camera. meaningful vote number three. will it come this week? this will stop the indicative vote process in its tracks, if it could come tomorrow or friday. alex: it's possible. one thing we are waiting to see, if there are any options. it could strengthen the chances of the withdrawal agreement, because parliament would have failed to find an alternative.
in if they do, if the options relate to the future relationship, it is possible it will be tabled anyway. anna: if theresa may has to promise to quit to get support for her deal, and that's one of the stories we are carrying today, she talked about not leaving the party in the next election anyway, she has to name a day, how quickly can the tories appoint a leader? it could take months. alex: the tory leadership process, you have a runoff process where each candidate is eliminated and then when there is to left, it goes to mentorship. it could take months. it could be shorter. thatu understand the fact on april 12, that is the deadline currently, and if there isn't a resolution even if the withdrawal agreement past, you have two options, a longer extension or no deal. short-term, the
there really isn't time for anything but a coronation. in the long-term, if there is a resolution, you're going to eat into the time you need to negotiate trying to settle on leadership. anna: thank you, alex. fighting against the background noise on the green at westminster, from the institute for government, with insight on what is to take place here, historic events. we will talk about something it -- the companies surged after cleared of wrongdoing. this is bloomberg. ♪
♪ welcome back, this is "bloomberg markets: european open." rallied theres have most in it decade after and it -- an investigation found regulators were not material. some employees in singapore may face terminal liability. joining us is marcus bron, the ceo of wirecard. we have seen selective findings from the report. do you plan to release it in full? that theythink
released all key findings, so that is it. i think everything is on the table. the market has full transparency. andave already addressed improved oversight and regulation in the region, and we think we can now go back to business and refocus on the strong performance of wirecard's innovation power. for us, yesterday is a very positive turning point, and i think we are fully back to business. business are back to them and that is good to hear. there might be some investors who want a little more clarity on what has been going on. this is quite a limited report in the sense that it only covers specific transactions. the company was involved, yourself was involved in deciding which documents were
provided. some investors might want to see something more. any plans for anything fuller? markus: again, i think that this is exactly the result or key findings on the table. they were not in any way optimized, this is directly what was the finding by the external investigation. i think all key points are on the table and the market has full insight. and yeah, i think we can now refocus again on the strength of wirecard and the strong operators performance of wirecard. we had a very good year -- we have a very good year before us and that is my message to the market. yes, there have been some findings, and we are addressing them. i think we have already implemented very strong, additional oversight
measurements starting last year. we are very committed to constantly improve and implement best in class compliance and oversight instruments. this we do. on the other side, i think we can strongly rebut some of the severe allegations that were put forward in the public. disproportionate element there, everyone sees it was immaterial. yes, there are findings, but on the other side, what should be in focus is the strength of this company and again, we totally confirmed our guidance of 2019. there is no material impact on the numbers. that is my message. anna: you have confirmed your guidance and the findings come
as you say, not material, that there was evidence of contracting created for audit purposes in some wrongdoing was found. months ago you said there was no wrongdoing. how do you explain that? why did the company say there was no wrongdoing before the results of the report were released? we strongly rejected the severe allegations that were put forward, and we always committed ourselves to bring full insight into the detailed findings, this we did. transparencyclear what our potential balance sheet and balance sheet terms of the findings. i think it is clear here that our point that there was no wasrial wrongdoing confirmed. anna: thank you.
francine: we have one minutes ago until the start of cash equities trading this wednesday morning. and burger is in the studio can run us through the start of european equity trade. good morning. dani: good morning. the question this morning and for the past couple of mornings is what signal is the bond market sending us. 10 year yields falling lower, breaking through the 2.4 level. the lowest level since the summer 2017. investors still buying treasuries and the u.s. a very strong bid yesterday. oil holding on to some of their gains. russia affirming their output cuts. in china, shares rising,
opposite of what we saw yesterday. the pound is weaker. u.k. lawmakers set to vote on rifle deals. is that political uncertainty hitting the pound? when the pound drops, we do see the u.k. do better. a very up higher because exports heavy sector. as the market opens, we are seeing some mild gains from u.k. stocks. a lot of miners in the u.k.. any kind of town drop will help them but the dovish ecb, the dovish fed is helping shares today. ibex of higher by 1/10 of 1%. we do hear from mario draghi in a little bit. let's go ahead and head over to frankfurt and listen in on that. say how much i appreciate the interaction with all of it. and with some of you even personal. more