tv Bloomberg Markets Americas Bloomberg April 3, 2019 10:00am-11:00am EDT
p.m. in london, and 30 minutes into the trading session in the united states. from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. welcome to "bloomberg markets." european banks firmly in focus today. our big interview right now is with the chair of santander. let's take a listen. >> we are going to be investing $20 billion over the next few years in technology and digital. it is about $5 billion total per year, and of that, $2 billion is in digital. it is quite a healthy ratio. in terms of scale, we are right up there with the biggest banks in the world, fourth or fifth in the u.s. depending on how you measure that. so we have enough scale to invest across the group, which is one of the ways we are aiming to work more for countries like the u.s. or other countries where we don't have the profitability we want. we are going to really take
advantage of our size globally. your returns to a --holders, when with when will they rise globally? francine: your returns to shareholders, when will they rise globally? up.t: we took our capital we are increasing different cash dividends per share, and our share price is lower than a few years ago. having said this, what is important is our does not havehare adverse effects. we delivered 55% earnings-per-share over this time period.
euros it was above 20%. definitely the markets value was different than most european banks. francine: is there anything investors ask of you? is it capital? is it recurring? guest: people ask about capital all the time. what i can say is first, we are not getting from the supervisors today recognition for our certification. however, the market does give us that recognition. at verytually trading low spread, similar to banks that have 13%, 14%. the second question is what price do you pay to get to that 12% factor. do you sell a business that is going to deliver 11% return like the u.s.? is it worth it? that is the question. finally, our model is more productive a.
transactional bank do up -- we actually do a lot of transactional banking in latin america. we want to grow. i asked you in february, is it easier to stay and see if you have the confidence of everyone? will it be settled? guest: i think we are moving forward, and the team is very comfortable. have a digital video cast the rest of the group. optimistic about the future. francine: what happens for brexit?
have you considered the worst? are you ready for it? guest: we have been working to ensure that all of our customers , retail customers, small customers, small companies, big companies, that we are ready to service them. i can tell you we are ready, and they can trust that the service will continue whatever happens with brexit. vonnie: that was sent had their chairman -- that was santander chairman ana botin speaking with bloomberg's francine lacqua. mixed economic data this morning. the market services data was better than forecast. two diverging reads for the services economy. adp figures disappointed a little bit. mortgages were up more than 18%. all of that needs to get factored into gdp growth models.
meantime, we did see the s&p 500, off its highs after manufacturing data, up 2/10 of 1% nonetheless. amd the bests, performer in the s&p 500 right now, up 8.5%. the fda is investigating seizures potentially related to vaping products. that is hitting some of those stocks today. caterpillar backlog growth is going to turn negative very shortly, according to deutsche bank, which has downgraded the stock off the back of that. the backlog growth will turn into slow down and revenue. if you remember back in february, ubs had already said there would be a decline. that is causing some jitters for that stock today. guy: tobacco stocks also trading off here in europe, adding to what you said.
we've also got weaker u.s. data on that front dragging down the london market a little bit today. data on the china services side was strong. we then got the european data on the services side strong. i appreciate we've had a little bit of a miss, as you indicate come on the u.s. data, but nevertheless, that number of 56 is not a bad number. the services side of the global economy looks like it is doing all right at the moment. european stocks definitely on the upside today, trading up by about 7/10 of 1%. the pound is worth focusing on at the moment, up by around 2/10 of 1%. that is weighing on the ftse 100. we have theresa may meeting with the leader of the opposition, jeremy corbyn, right now to try and figure out a way of taking the brexit story further forward. we've been hearing from the
chair of santander. we've also got deutsche bank stories worth focusing on as well. plus, ubs trading up by eight tense of 1%. a nice bloomberg story looking at the possibility that ubs is trying to find a way to progress and move forward with its asset management business, including the possibility of a merger. some floating the idea that maybe you would merge with deutsche's dws and spend them off into a separate company. ubs trading up by 9/10 of 1%. vonnie: for more on the markets and the data, we are joined by the director of economic policy at beta partners from new orleans. thank you for joining us. talk about the friday jobs report. we got some indication today of potentially what we might see, and how strong you reckon the u.s. economy is right now. guest: thank you for having me. i've been having really
interesting conversations with folks on the road and speaking to our clients. there is very strong data continuing to come out of the u.s., but there are underlying fears that are pretty deep-seated. some big asset managers and the economists that we are looking at, potentially very problematic gdp numbers for the first quarter of 2019. we continue to see some strong underpinnings to the economy, but the first quarter gdp number could come at or close to 0%, which could be pretty shocking to the markets. we do have significant headwinds, not the least of which coming from these tariffs which have been on for a year now. vonnie: how much of what you are forecasting is dependent on what happens between the u.s. and china? reports are that we might be getting closer to a deal, but the same sticking points are there, including enforcement. guest: i don't want to be snarky, but you can take the same reports and translate them to december of last year and they would be pretty much the same. china and the u.s. inching
closer to a deal, but there's no agreement on enforcement. china continues to abstain from enforcing the forced technology transfer issues. they've made progress on certain fronts, most notably the currency manipulation side, but the major components remain unresolved. i think the biggest factor here is whether the united states decides to take off any of the existing tariffs facing china i think -- facing china. i think 60% to 70% of investors are saying the $200 billion basket that was put in place in september will come off, and i strongly disagree. i think most of the tariffs will remain in place for many months. i think that is going to be severely disappointing versus expectations right now. guy: good morning. you say many months. what about many years? how much of this is now structural? guest: that is such a great
question. every six months, they will consider whether to take tarasoff or put them on is the way i -- take tariffs off or put them on is the way i interpret it. i would like to give some of the analysts i spoke to a while ago prospects over a year ago when this all started, that tariffs are going to become this new normal. just this administration come about future administrations as president trump has created the inroad for section 232 tariffs to be normal. it is much more appropriate than the estimation that this is all going to end the end of this month. i don't think that is realistic. guy: if the fed raises rates again this economic cycle, do you think the president will try to replace the fed chair? guest: anchor: i've done some --
guest: i've done some work on this. i do think it is serious that president trump is intending to nominate stephen moore and perhaps even herman cain. they both have sufficient to get support to get through in congress, so we would have two guys on the federal reserve board who are staunch advocates of opposing rate hikes. the fed chair has been clear he will not step down if president trump tries to take any action to demote him or remove him from that sort of seat of power. i think that is real. i think there is sufficient support in congress to maintain whatever integrity and independence the fed is remaining, so i don't think that president trump will have the outcome that he expects if he does try to demote mr. powell, which is, to my understanding of the law, the most he can do. vonnie: how concerned are you, and how are you modeling any potential closures of the
u.s./mexico border, particularly given that we don't have any resolution to usmca yet in congress? guest: this is a major issue. we transport $1 trillion worth of goods just through trucks and railroads per year between the u.s. and mexico. i've had some conversations with folks who were just recently crossing the juarez border in the past few days, and they say there are not just backed up lines on the passenger side, but in the cargo lanes for three or four miles. you've gotten reports of 12 hour delays and cargo being held overnight that couldn't get through. this is a tremendous issue, and when you are looking at the fromnse you've seen majority leader mitch mcconnell, speaker pelosi, the u.s. chamber of commerce, manufacturing --ociations, this is devcon iss is devcon for -- this
defcon 4 for them. the usmca is nowhere close to passage. there is unwarranted optimism that it is going to be introduced in the middle of this month, that we are going to get promising economic numbers as a result of the usmca. none of that appears realistic. guy: henrietta, it sounds like the united states is already experiencing its own version of a hard brexit when it comes to that border story. is the market underestimating what a hard brexit would do to global economy? henrietta: that is a great point, and it just never ceases to go away. the reality is that the southern border issue came upon us very quickly, whereas with brexit, people have had months and years to internalize it. i don't think the market is
currently pricing in how serious this is. the president kicked off march 30 with a tweet saying he was going to close the southern border just a couple of days after the homeland security secretary wrote a letter requesting volunteers from the federal government to go and patrol the border with the rest of customs. so i think this is all very fast and furious. i don't think that the average investor is fully aware of the speed with how serious this is. it reminds me of the april 2017 time period when the president was so close to withdrawing the u.s. from nafta, and a lot of work happened behind the scenes to make sure that didn't occur. we are seeing that now with the southern border and the president's threats to shut it down, but we are not yet market saturated with an understanding of how serious this is. the threat is not gone. guy: thank you for sharing some of your time with us on bloomberg today. veda partnersz of
joining us. let's check in on the first word news with viviana hurtado. viviana: u.s./china trade talks are back on, both sides warning a number of sticking points remain, including protection for intellectual properties and how to enforce any agreement. last night, president trump said the u.s. was finally getting tough on trade. pres. trump: we are standing up to china's chronic trading abuses and theft of intellectual properties and so many other things that they've done to us. i don't know how you people allowed this to happen for so many years. you've been here longer than me. viviana: u.s. authorities arrested a chinese woman and wanted to know what she was doing at president trump's mar-a-lago resort. she had a chinese passport and a thumb drive containing malware. according to a secret service agent, a friend told her to go to mar-a-lago to speak with a
memorably trump family about u.s./chinese relations. the city of chicago for the first time has elected a black woman as mayor. lori lightfoot will also be the first openly gay leader. the former federal prosecutor winning with 74% of the vote over another black female democrat. the city struggles with budget problems and gun violence. 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. on the viada or todd of -- i'm viviana hurtado. this is bloomberg. vonnie: thank you. hill,ing now on capitol the house judiciary committee holding a hearing on whether to issue subpoenas for the full mueller report and all of the evidence behind it. you can watch that debate on go>.mberg at live < this is bloomberg. ♪
guy: breaking news relating to renault over the last couple of minutes. this relates to carlos ghosn, it's former boss. the company is saying most of the expenses in terms of what they were looking at look to be ok. basically, that paying benefits sn from 2010 to 2015 are compliant. however, that some of the expenses are a source of concern. by the looks of things, this relates to some payments made in the middle east. we will get more on this story as we progress. we continue to watch what is happening with carlos ghosn of particular interest. let's get a market check now with abigail doolittle. abigail: take a look at the s&p
500 and the dow, up modestly. the dow reversing a small decline earlier, but the real rally in germany. 1.5%, its bestup day since the middle of february. the shanghai composite in china up 1.2%. investors continue to buy the risk. the s&p 500 up for the fifth day in the row. let's take a look at the german bund. yields had been negative, but pretty extraordinary, going from negative nine basis points over the last five sessions to about even. that is a tremendous move higher for yields, telling you that investors are selling those haven bonds to some degree, even though they are yielding just about flat. we have a record high on the day. let's take a look at the stoxx and some of the movers, looking to close at a record high driven nomura,gth from amd,
micron, and intel. vonnie: a few extra comments from larry kudlow, speaking in washington, d.c. at a christian science monitor breakfast. he says good headway is being made on trade talks come about the u.s. and china are not there yet -- talks, but the u.s. and china are not there yet. he also says the yield curve looks way too tight. this is bloomberg. ♪
♪ taylor: this is "bloomberg markets." time now for our muni moment. i am with the unesco head of municipals. earlier this week we were taking a look at the muni treasury ratio. what is driving the outperformance? guest: thanks for having me. i think the most thing is demand from the retail side. investors were a little bit confused last year. we didn't know what the fed was
doing. we didn't know about midterm elections. now all of those questions are kind of answered, and money is coming strongly into the muni market from the individual investor. ,hey are supporting the market buying individual bonds, and i think investors are realizing that taxes might still be a little higher than they thought, and they are going into the tax-exempt portion of the market very hard. i think investors will continue to put money into this asset class for quite some this year. taylor: when you talk about support, we just came off of a great first quarter, one of the best since 2014. and then you mentioned taxes. usually it is a weak time for the market. did you think that tax deduction will help boost the market going forward? guest: corporations do their taxes on a quarterly basis, but individuals don't put pen to paper until the following year. what we are seeing now is the individual starting to realize with the state and local tax deduction, it is a lot more
hitting people than they thought , so their tax bill is a little higher than they thought if they live in high tax states. therefore, i think it is turning into good demand for municipal bonds. we said last year we expected retail investors to come back and once they put pen to paper. once they know the fed is out of play, they think this is a good time to buy muni's. taylor: duration or credit? guest: i think we are definitely prolonged duration. -- pro long-duration. taylor: thank you. that was mark peres, head of municipals over at unesco. more after this. this is bloomberg. ♪
them to agree to authorize subpoenas for the mueller report. a deal could still be negotiated if democrats can reach an accord with william barr. the ag has said he will provide the mueller report, but will leave out some parts. now democrats are saying we want to see everything, plus all of the evidence behind it. aboveme, oil has been $62.50 a barrel, and we are getting a massive build, 7.2 3 million barrels in the week leading to that thursday. the market was actually looking for a draw down around 600,000 barrels. a drawdownventories of nearly 1.8 million barrels. y utilization down 2.8%, crude oil reversing some of those gains of the last couple of days. let's check in now on the bloomberg first word news.
here's viviana hurtado. viviana: twitter cofounder jack dorsey would welcome more regulations when it comes to social media. dorsey said europe got off to a good start with gdpr, the law that tightens data privacy rules. ourspically a service like come our terms of service are a little bit hard to read and a little hard to follow, and not necessarily the most customer focused thing. gdpr put a stake in the ground to at least bring out some elements that you have a little more control over, and i think that is a net positive. if there is more room for that, then yes, absolutely. -- you know, there is not going to be any one party responsible for fixing this. viviana: president trump's relationship with the federal reserve chairman reportedly isn't getting any better. the president blasted jerome powell at three meetings in the past week. "the wall street journal" as he
blames the fed for holding back the economy and the stock market. aesident recalled conversation in which he told powell "i'm stuck with you." prosecutors say dozens of parents paid an admissions consultant to bribe college coaches and rig test scores for their kids. neither actors felicity huffman or lori loughlin have commented. 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 viviana hurtado. this is bloomberg. guy: thank you very much indeed. prime minister theresa may laying out the case for working with the labour leader jeremy corbyn on brexit. across the channel at the european commission, jean-claude juncker saying the commission is still preparing for a no deal divorce.
we are joined by bloomberg's maria tadeo live from brussels. pulling any punches earlier, was he? maria: no he wasn't. said that they've said many times the way to get this over the finish line work with the opposition. now the prime minister is doing that, but juncker was clear that the deadline for a brexit remains april 12, and there is a very real possibility the u.k. leaves without a deal. he did say also that the eu has stepped up preparations for a no deal, that there would be severe disruptions, and that this concept that we hear from no dealrs of a managed is simply not the case. there is no transition period, no negotiation of future ties if
there is no agreement in place before you get to that point. vonnie: there is even a question mark over an extension right now. the bloc won't grant any extension if there is no deal approved by april 10. they've also said they don't want there to be extensions if it is just a delaying tactic. maria: that's right. he made it they are clear, but also many heads of state have said they don't want to get into a situation where they have to grant short extensions to bridge that gap to avoid a no deal scenario. that really is the nightmare option for brussels, to get stuck in this cycle where there is no resolution to brexit, just a series of short extensions that do not fix the problem. i think by now when you talk to people in brussels, when you look at the entire process over the space of three years, every time it is delayed, it has only
led to a bigger cliff edge, and it doesn't get bigger than the one we are facing now. jean-claude juncker did say that the eu at the start of the stay, butll have to only if the withdrawal agreement is approved before april 12. juncker and tusk on the same page? donald tusk last night was talking about the need for patients. that was not the message -- for patience. that was not the message i got from jean-claude juncker. maria: not at all, but if you follow brussels daily, you do realize that donald tusk is an optimist. he still thinks there is a way to maybe undo brexit, that the u.k. may ultimately change its mind, and that you can keep a very close relationship. i do think it is a mistake to think that donald tusk speaks on
behalf of the european commission, the likes of juncker , but also to think that in this particular case he speaks on behalf of the eu 27. it has been made very clear by many other heads of state like emmanuel macron that they think this is a question for a different generation, that brexit needs to be put to rest now and the eu has to be move forward. i think you have to tread those very carefully. vonnie: european parliamentary elections don't typically grab the imagination of europeans. at the same time, this time might be a little different because the u.k. may have to take part. bothered,sn't seem but what would europe think of a parliament reelection happening -- parliament tree election happening in europe -- parliamentary election happening in europe? maria: the eu says if we get to a situation where the u.k. is still a member state, they decide not to run, and that
parliament would be in contempt. it would be a parliament that has not been done according to the law, and that is a big because mark for the eu they think anything the future parliament approves could later be challenged in court because it wasn't established the right way. details,ll about the but we shouldn't forget that the european union is a legal union, and those details really matter because the europeans do not want to be in a situation where legislation gets approved and then gets challenged in a court because it was approved by a parliament that was incorrectly seated. vonnie: we will continue to keep our eyes open for those headlines. our thanks to maria tadeo in brussels. hundreds of thousands of jobs have disappeared on wall street since the 2008 financial crisis. 802,000, actually. some of the biggest banks, though, have not stopped cutting. here with all of the details is
our bloomberg finance reporter. i guess they are not zombie banks anymore, but 802,000 job cuts seems like a massive amount. how much more than the usual cutting is that? reporter: when i did the same exercise about two years ago, it was 500,000 and some change. in two years, another 300,000 cut. but the good news is that when i did it two years ago, it was across the board, everybody cutting. this time, maybe nine or 10 of them stopped a year ago, two years ago. and they are adding. it is a mixed story. it is not as negative as it was two or three years ago. so that means the trend is at least reversing slowly, and some banks are doing better than others. deutsche bank still is going to keep cutting. that is going to keep going.
but others probably have stopped. there is some good and some bad, and there are some other trends that influence this such as technology. includingndustry, finance, technology replaces some jobs. that more secular trend will keep going, but at least it looks like we are at the end of this horrible 10 year period where all of the big banks have to cut. guy: are we really at the end of that? last week we had a story that j.p. morgan is looking to cut significant amount of jobs when it comes to the asset management division. now we have a story suggesting that ubs is looking for ways to take its asset management division forward. that could include a merger with another big operation. it is likely to remove significant amounts of costs from those businesses. we could see it merging maybe with ews and being spun out. clearly in asset management, the cost is massive.
jobs have got to go, presumably. yalman: of course. there are places where they keep cutting, and that is never going to end. i mentioned to technology, but there are other areas. for example, jp morgan, while it has cut certain areas, has overall added basically all of the people it cut after the crisis. while they are doing certain things in certain areas, jp morgan is also trying to expand branches now. that is another trend for 8, 9, 10 years since the crisis. the biggest banks, and even small banks, everybody cut branches. they closed down branches, and now they are slowly looking to reopen branches. morgan,america, j.p. even citigroup is doing the same. there are certain areas where there is growth, and yet there will constantly be pressure on other areas. asset management is another one.
the big banks all have mess it -- all have asset management, but even the big banks and lower-cost funds have really eaten into their profits, so that is the trend. there will be parts of the business that keep losing people, definitely. management' asset 'sen looking at deutsche asset group. the other deutsche bank story i want to look at is that compliance officers in florida at a pretty low level flag some bag believe your -- some bad behavior at deutsche bank, and nothing was done. does this kind of lack of oversight continue, or do we ever come to an end? yalman: it is a big problem with deutsche bank because they keep running afoul of regulations and monitoring of risk around the world, and the u.s., and europe.
d because ofide their connections to danske bank in germany. a tax evasion related case. there is just one after another. i think the biggest problem is they have been trying to restructure. they came to that much later than everyone else. their job cuts started much later than all their other peers. while their eyes are on this restructuring thing, the management is probably failing to see the other parts of the business which are very crucial, regulatory compliance. it has become a top priority for the biggest banks because they have really been under scrutiny since the financial crisis. stillhe constantly is getting fumbled and making mistakes, and this is another example of that, so it is not surprising. that is what changes in management don't seem to have really done anything about, and they need to.
the big funds almost put them out of business if you use ago -- business a few years ago. they cannot keep fumbling because that also hurts their bottom line and credit ability with their clients. guy: how many of the jobs being added are revenue-generating, i.e. help the bank generate profitability? not just deutsche's, but all of the other banks as well. to the top these add line on both sides of the atlantic? yalman: it is a different story for the u.s. versus europe. every time we talk about u.s. big banks versus european big banks, the profitability measures here on this part of continent are much better. u.s. built capital, and now revenues are going back up above
two digits, and europe is not. europe has a lot of other issues not just related to cost-cutting. that is the dilemma they face because they cannot make money. they need to cut costs, which means reducing personnel. in the u.s., it is not as bad. we don't know exactly how much of the new jobs are in compliance and other areas, and how much of it is really traders endrofit-making, but at the , it does help the company meet its obligations, even if it means avoiding an $8 billion fine. that is a good thing for the bottom line, and they are doing much better. vonnie: thank you. always a pleasure to speak to you about the financial services comp >>. that is bloomberg -- financial services complex.
♪ guy: boeing stock trading a little softer today. one of the reasons is we are starting to understand some of the details around the lion air crash, the first of the two october that in ultimately led to the grounding of the 737 max 8. what we are beginning to understand is that the pilot on that aircraft actually managed to turn off the system at the center of the story. basically, this is the system that forces the nose of the aircraft down to try to regenerate lift if the aircraft thinks it is stalling. let's get some details on this
with our aviation reporter. this is a significant development because it opens up boeing to a range of potential liabilities. if the pilots were able to turn the system off, it means that boeing's training and training manual may not of been up to scratch. reporter: exactly. you start off with the lion air crash in indonesia in october. that happened. they found the cause, which was the system. boeing then came to its customers and said this is an error. there is a procedure. we need to do additional training with the pilots. if this happens again, you know how to fix it. what is coming out now in the evidence from the black box reports is that the lion air pilots knew about this issue, turned off the system, and still the system managed to turn itself back on, eventually triggering the crash. this is still preliminary. we don't have the official report yet, although we are
expecting briefings in the next couple of days, if not sooner. then we will get the actual details of this, but this is where investors are really watching the competency boeing has in the actions they took after the lion air crash. vonnie: does boeing have a handle on this? is this ultimately going to be ok for the company? reporter: this is the big question everyone is wondering, the extent to which the fallout from the groundings impact the company. we've got nearly 400 aircraft that are grounded. we don't know when those will come back to the skies and start playing passengers again. this is a question about branding, whether the max can recover in the eyes of the public, and whether they can really feel safe to fly on this aircraft again. boeing did come up with a solution. they took it to the faa. they now say they need more time , the faa is indicating.
clearly you would want the results of the ethiopian investigation before you start rolling it out to all customers, but there are a lot of moving parts in terms of how boeing responds to it. guy: thank you very much indeed. ben katz joining us from bloomberg's aviation team. vonnie: coming up later today, westin's interview with starbucks ceo kevin johnson. this is bloomberg. ♪
this relieve markets just a little bit? we were just above the 200 a moving average yesterday. guest: i don't think it changes much. it is showing resiliency. we are showing a macro market march, and oil is benefiting from that. point above the halfway of the high to low back in mid-january. crude oil has finally done that. it took some time, but it is also the midpoint of that drop from the top, so we've been able to track was the same path as we have seen in stocks, and today is a good example, even with some bearish news. the market is still holding ground. it was a build of more than 7 million barrels. what is going on with the data? how is the market getting it so wrong every week? alan: well, those are
expectations. it is just a matter of our viewpoint. but overall, the path of the market is strong. what opec has done is pretty impressive. they've gotten everybody together and actually overcompensated and supported the oil market once again. the greater worry was obviously global growth slowing, and it doesn't look like that is going to happen anytime soon the way our stock market is coming back. those concerns are less and less every day. you are seeing the energy markets start to evolve. vonnie: finally, where does the dollar index go from here? it seems to have diverged a little bit from the commodities. should not bear stronger, but it is. we are not raising rates. i am not so sure why, but i think what is more important is you are seeing other currencies hold ground as well. you are seeing the pound staying
up there, even with all the concerns over brexit. catalyste the next giving some markets shakeup, but that will be some opportunity for us as traders and investors. uckman oflan kn agoura financial, think you for joining us. guy: let's talk about our stock of the hour. here with details is in much andra -- is emma chandra. is emma: the rally very much supply driven, and it has been rising for iron ore since we saw the tragedy of the dam breach in brazil back in january.
overnight we heard that dams related to the industry had been ordered closed by brazilian regulators. of course, that is creating concerns that supply will be further constrained. we are seeing other companies across the mining and steel space rising, putting in some solid gains, like glencore and rio tinto. guy: absolutely. the china story also in that focus has well. coming up, u.k. energy minister claire perry is going to join us in the next hour. we have an ongoing meeting between the prime minister of the u.k. and the leader of the opposition, jeremy corbyn. takell get claire perry's on that meeting. this is bloomberg. ♪ . ♪
guy: 30 minutes left in the european trading day. from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: we got some decent data coming out of europe in the form of services pmi. that drove the risk on story we've been watching, circling around the world. bit ofave potentially a a story where investors, portfolio managers are now fearful of missing out. some of them behind their benchmarks are beginning to chase this rally. the data is maybe augmenting that decision-making process. 1%.stoxx 600 is up 8/10 of the card and mining sectors doing well. the card sector could close into a bull market, up 20% from its lows. the pound is also rising as well. we have this meeting taking place at the