tv Bloomberg Markets Americas Bloomberg April 4, 2019 10:00am-11:00am EDT
york, 3:00 p.m. in london, and 30 minutes into the trading day in the united states. from new york, i'm vonnie quinn. guy: from london, i'm guy johnson this is "bloomberg markets." 0.5%, thee dow is up s&p 500 up 2/10 of 1%, as is the nasdaq composite index. facebook got an upgrade at guggenheim, raising its price target to $200 from $175. macron is one of the chip stocks micron isr a week -- one of the chip stocks lower after a week up, lower on over enthusiasm. it was a downgrade from jp morgan which said it was not able to stand behind its ratings on some of its chip stocks. -- downk it's dashed out
over 3% before its spinoff later in june. guy: european stocks a little more sideways today. we are a little lower on the stoxx 600. we've got payrolls coming up, and betrayed story we want to focus on. those are two big things that may cause people to sit on the sidelines right now. it is interesting the industrials are doing so well on your side of the pond for the dow. doing pretty well in europe as well. you got this real gap between what is happening with the data and what is happening with the stock market right now. you take a look at the german data at the moment, it is horrible. as far as the german authorities concerned, it is going to be horrible for quite some time. we saw european autos entering a bond market.
what is happening in terms of the market depreciation in europe? stoxx 600 absolutely flat. euro trading a little lower by around 2/10 of 1%. banking also in focus over here. commerzbank seems to be in the eye of the storm at the moment. you are getting a bit of a squeeze, but there is this unicredit story worth paying attention to. if deutsche bank talks fail, the story goes to unicredit. might look to stepan. we understand -- to step in. we understand that those talks between commerzbank and deutsche bank might get a more intense this weekend. and then we've got the debbie morgan story -- the jp morgan story. vonnie: the ceo warning investors to get ready for more wild rides ahead. he wrote this. the fourth quarter of 2018 might be a harbinger of things to come."
we are joined by the ceo of the love consulting. i know you are a little trepidation of what is to come. is volatility a part of it? guest: it is part of it, but there is more. i think the key is in the united betes, the market seems to believing that the fed has changed its course to easy money. that is not right, in my view. the first quarter we have seen so far in the stock market is pushed by two special factors. one is the repatriation of funds by multinational companies, and the other is the treasury reducing its account at the fed. both together have been a relief to the credit and financial system of $200 billion, and that amount is behind the rally we see in the stock market.
both are one-off factors, so when they have run its course, then we go back to tight money. you will see that in the rising u.s. dollar. as soon the dollar begins to rise more decisively, which i expect this quarter into the next quarter, at that time you have monetary deterioration, and the stock markets around the world should peak. i think we have another two to six weeks left in the stock market, and then we go into a medium-term decline again. vonnie: there is a lot to digest and what you just said, but do tell me what wall street has wrong or why everybody sees it differently. the disparity between those who are bullish in the s&p 500 and those who are not has never been so wide. there is a 37% disparity with the top target coming in at 3250, and the bottom seeing a 17% downside from here. guest: i wouldn't be that extreme.
it really defends on -- it really depends on what the fed is going to do. the world economy has slowed now for 12 months, and will continue to slow, and therefore corporate earnings will surprise on the downside, not the upside. at that point the market will wake up to the reality. monetary situation is as deteriorating as i just described, investors will be disillusioned and the markets will selloff. guy: felix, good morning. can i come back to where vonnie started with jamie dimon and his talk about the volatility story at the back end of last year? when i listen to sergio ermotti at ubs and all of the investors, they say their clients are terrified right now. they are not making big trades. they are sitting on the sidelines. they are not willing to get engaged in these markets at this stage. if jamie is right and volatility
incidents only get bigger, presumably these people will spend more time on the sidelines. is -- we have had a deal a decent rally in the markets, so that is pushing stock prices up. you see that in the flows off of mutual fund and etf's, though there is a move back into the market. you can virtually sense these days that there is something on the upside here in the stock market. i think this is going to be the final stage of this rally, and not the beginning of a new bull market, even if the u.s. indices go to some new historic highs. guy: but do you need to have a higher risk tolerance? do you need to be prepared for bigger swings? felix: when you look at the long-term ratio between valuation and ownership, then you can expect in the next 10
years and annual return around the dividend yield in the stock market. that is all you get for the next 10 years. what you will see is much more volatility due to rising uncertainty politically, as well as economically. vonnie: you have in your most recent notes that the u.s./china trade deal is a source of anxiety and confusion. the brexit landing question remains open. the global economy is going to continue we getting -- continue weakening. where would you look for a little bit of safety during this time? felix: i think the u.s. treasury bond market, this is a place where you can place some money to be safe and have a decent return. i do expect some bounces in yields for the next few weeks, but then i do expect yields to come back down to around low 2% or so for u.s. treasuries later this year before you have to
sell them again. but it is not an investment market where you can buy and hold and sit as you could in bonds, as well as stocks, over the last 10 years. you have to trade and pick and choose very selectively. alsofelix, jamie dimon talking about how he likes share buybacks. felix, do you like share buyback companies? felix: share buybacks mick a lot of sense if the buybacks are financed by cash flows off of the corporate sector. the companies that then have to issue new stocks at lower prices some years down the road when the world is in recession, you have to be very selective of what you buy. if the buybacks are financed by free cash flow, that is fine.
vonnie: felix, you are staying with us. we have a lot more to talk about, including some of your most recent comments. let's check in first on the first word news. we need a young is here -- ready ng isung -- renita you here. reporter: today president trump meets with the chinese vice premier. the goal of talks over the next few days is to agree on core issues. that would allow the president and chinese leader xi jinping to hold a signing ceremony. in london, prime minister theresa may holds brexit talks today with the opposition labour party, looking for a copper mise on future ties with the european union. last night the house of commons rejected the idea of a no deal brexit. they passed a deal that compelled may to seek an extension of the deadline. it is the first official word on last month's crash of the boeing
737 max 8 ethiopia. in a preliminary government report, they call on the manufacturer to review the systems. pilots followed emergency procedures when the plane expect it pitched nose-down come up they weren't -- nose-down, but they weren't able to prevent the disaster. in japan, former nissan chairman carlos ghosn has been arrested again. prosecutors accused him of using millions of dollars from nissan for his own purposes. he calls his arrest outrageous and arbitrary. he vows that he will not be broken. ghosn had been free on bail for less than a month, already accused of financial misconduct. 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. renita young. this is bloomberg. guy: thank you very much indeed.
tesla is trading down circa 9%, off its lows. let's talk a little bit about where the european auto space is. the european auto space yesterday went into a bull market. what we get today is data showing that german factory orders have slumped the most in a decade. that is where european autos are right now. we are trading higher in stocks volkswagen.aler, we will talk about the discrepancy between the data in the stock market performance. that is next. this is bloomberg. ♪
let's check those markets with abigail doolittle. abigail: we are looking at very small moves for global markets. of 1%, 500 up about 2/10 but european stocks down about the same amount. the nikkei up fractionally, the em index down slightly. the s&p 500, though, for the sixth day in a row up, the longest streak since january. if we go into the bloomberg and take a look at what is happening, we are going to see that both the s&p and the dax are above their 200 day moving averages. we have a great chart in the terminal 2 take a look at. of the s&p 500, that was not true for the dax. but we see the s&p 500 above it for quite some time. the dax recently joining in, but that 200 day moving average for the dax slipping down. as for some of the big movers on
the day, let's take a look at the u.s. 2.5% after that ethiopian crash report came out squarely blaming the company, but investors seeming to think the worst is priced in. facebook bouncing back after on a bloombergl exclusive of millions of records being on cloud servers. and then tesla come of shares down deeply after deliverance for the first quarter really plunging 30% from the fourth quarter. it will be interesting to see what happens with this company as they try to hammer the kinks out of their production issues. investors clearly worried about demand. guy: it will be interesting to see what happens with that court kate this afternoon. -- that court case this afternoon. we have seen data showing german factory orders drop by the most in a decade. a bloomberg report says the italian government is set to cut
growth forecasts, yet yesterday saw italian bonds and the sector enabled market. i am wondering whether now market expectations are that european data is bottoming out, that it is going to get better from here. that is why the european industrials the auto sector are starting to pop. economy iseuropean reacting to the chinese economy. half of its growth has been due to exports to china directly and indirectly. your question is really is china bottoming out or not, and i think it is beginning to bottom, but it will be several months more until we see a pickup in the chinese economy. that means that the european
situation remains very dull on the economic side. i am a little bit worried by rising inventories around the world on a wholesale basis. inventory to sales ratios are extremely high, which really has to be adjusted down to a softer sales environment. that is usually slowing economic activity further and not really increasing it. that is why i think the hopes in europe are probably a little premature. guy: that is interesting. the other story that links back to the trade narrative that you brought up is the possibility that once the president of the united states is done dealing with china, he's going to turn his attention to europe. ins described europe as foes the past when it comes to the trade narrative. the european data is pretty grim right now, but investors are starting to turn more positive. are they underpricing the negative story that could come out of the white house? felix: i'm not sure about that.
i think the chinese/u.s. situation is key here, and the trade talks going on will be important. both parties are interested in striking a deal, but not as quickly as possible. actually, president trump is interested to postpone that to a later date because then he doesn't have to live with the results if the results are not to his liking, and they come after the election in 2020. he can still before the election say you will see results coming in the future. actually, the chinese are waiting for the economy to stabilize and doing a little bit better. they are easing on the monetary and fiscal side, but they are very constrained in doing so due to the currency situation and they're very weak balance of payments situation. therefore, both parties are actually interested to strike a deal, but later. that means that the stock market
is celebrating, and has been celebrating, a coming deal between china and the u.s. for so long, and it has been postponed and postponed. we will have to wait a little bit longer, and there may be more disappointment before we see that. vonnie: you expect no structural solution, just a temporary deal. so all of these headlines pushing the s&p 500 higher, do they turn into not much of anything? felix: i wouldn't say so. i would say the chinese are ready to buy more u.s. goods, but as they do, they buy less from other sources. the new world of unilateralism instead of multilateralism may be good for the u.s. short-term, but it is very bad news for all of the rest of the world. vonnie: brexit. do you have some thoughts on brexit? the does it play out for good, and how are you advising people to take advantage if it is going to be beneficial? felix: we all like the british for their sense of humor, and
now for their sense of for drama, it seems. i do not know how things will play out. i think theresa may was the wrong person to guide the u.k. through this parking process. -- this bargaining process. hard exit soon, there will be chaos for a few months, but after that the two parties would know exactly where they stand. every party could go by its own way. the u.k. could direct its policies according to the needs of its own country, and the eu would be thinking about what they have done wrong, and they have to change from centralized to a decentralized union. vonnie: i'm afraid we have to leave it there, but we look forward to having you back again soon. i know some of your recommendations are gold along with those u.s. treasuries. auf, ceo of zulauf
♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." value funds looking promising heading into 2019, but a strong first quarter has muted interest in value stocks. here to update us on that trade and what it is going to look is ais tom sarah vegas -- reporter with newburgh intelligence -- with bloomberg intelligence. reporter: it has been really tough for a while, almost 10 years since the financial crisis underperformance. first quarter of last year it was looking really good for value, doing really well for growth. it was looking really good for 2019. fast forward to the first quarter now.
all of the outperformance completely came back. this is a sort of trade that seems it can't catch on. every year it seems like this will be the year for value, and when it starts doing well it falls over. this year is not looking too good for value when i thought it would be looking better. vonnie: what are investors doing? are they leaving the value for growth? reporter: sure. value isn't reforming, investors are still believing in value. but if you actually look at flows over the last three months , value is the only factor that has had outflows. it has been full on inflows for all of the other factors. momentum, quality, low vol. but value, no one is really having a right now. guy: in terms of what happens next, walk me through what the other factors are looking like, where we are seeing interest right now. reporter: i would put value in the defensive bucket.
i put low vol in that quality. one thing to remember with value is there's a lot of financial exposures to it. financials are not en vogue right now. but there is demand for defensive factors, especially low vol. that is leading the way this year for flows. guy: thank you so much. if you want to find these on your bloomberg, is what we are looking at. if you dig a look at the third worst-performing factor this year, it is value trading down by nearly 6%. on can take a look at these your bloomberg. vonnie: of course, we have a look at factor funds every week, as we all know. . it is time for our latest bloomberg business flash.
shares of tesla are falling today. the electric carmaker reported record decline in deliveries, and that stoked fears demand is falling for the mainstream model three tesla introduced less than two years ago. one possible reason, shrinking tax incentives for electric vehicles in the united states. teaming up with adidas on footwear and apparel. the performer will act as a creative partner for the german sports shoe company. she will also relaunch the adidas park brand. that is your latest bloomberg business flash. this is bloomberg. ♪
first word news. renita young is here with us. a: bloomberg has learned a draft agreement would allow american companies to completely owned businesses in china. president trump and china's chief trade negotiator will meet today. that is a sign that talks are in their final stages. filing for first-time unemployment benefits in the u.s. has hit a 49 year low. jobless claims unexpectedly fell by 10,000 to 202,000 last week. the surprising drop is another indication that employers are reluctant to let workers go. meanwhile, president trump renewed his attack on the federal reserve for raising interest rates last year. the president tweeted that the economy is in good shape despite what he called the fed's unnecessary and destructive actions. this comes after months of criticisms of the chairman jerome powell, whom the
president himself appointed. in new zealand, the man accused of the christchurch mosque massacres will be in court tomorrow. the 28-year-old australian will be charged with murdering 50 and wounding 39 others. the attack prompted new zealand's government to ban military style semi automatic's and assault rifles. 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. young.ita this is bloomberg. vonnie: president trump meets with the chinese vice premier today at the white house as speculation grows that a trade deal is in its final stages. for more, we welcome bloomberg economic policy team leader sarah mcgregor, who joins us from washington, d.c. what do final stages mean, sarah? until recently, enforcement was one of the big sticking points. have we made some headway there? sarah: we do think it is
possible today. president trump is going to meet with china's trade czar at the oval office, and we do think it is possible that trump himself might announce that possibly they've reached a deal or some type of deal with china over trade. of course, this probably could lead to many more weeks or even months of talks and negotiations to sort out the final details and bring it all together, but today could be the day that we hear a bit more about a firmer deal, at least the broad parameters of a preliminary deal, that trump and xi could sign. guy: when could that be if they get to that point? sarah: we had been hearing that it could be digitally be the end of april, but of course, these are the two biggest world economies. the leaders are very busy people. we don't know exactly when a date would be, but we do think trump wants to wrap this up quickly. we saw a report yesterday that
trump wants to see progress as soon as possible at erasing this trade deficit with china. purchasing ofased chinese goods to start almost immediately so that when he hits the campaign trail for 2020, he can say we've reduce the deficit, the farmers can feel happy about may more soybean purchases or airplane or energy processes. -- energy purchases. vonnie: china is going to extend retaliatory tariffs and controlled substances it is banning. does it seem like that is enough? trump administration agreed to only a few token gestures from china. business has gone through a lot of pain from these tariffs. politicians are really doubling down on donald trump, saying go forward now. you've put these tariffs on the economy. there's been pain caused to our farmers and manufacturers.
now let's come up with a great deal. let's make this different than what previous administrations have agreed to. they want to show that they've taken a tougher approach to china. guy: at some point we are going to get trade talks between the united states and europe. the fear over here is that once we get the china deal done between the united states and china, europe is next in terms of the focus for the president. sarah: absolutely. the big threat over europe is also tariffs. whether auto imports pose a threat for the u.s., that is in the hands of donald trump right now. he has until late may to make a decision on whether to impose tariffs or other measures if they do represent a threat to the u.s. economy. deadline,xtend that but he definitely wants to hold that over europe as he goes to talks with them about a new
trade deal. vonnie: of course, we will bring you all the headlines if and when we get them from the meeting later on. sarahanks to bloomberg's mcgregor in washington, d.c. guy: global banks definitely in focus once again today. japan announcing job cuts -- japan's nomura announcing job cuts, and unicredit looking at a possible bid with commerzbank if talks with deutsche bank don't go well. let's talk a little bit about global banks. today we had nomura announcing a massive cost cut plan. on the other hand, we've got jamie dimon coming out with his annual letter to shareholders, and in that letter jamie sounds really positive. can u.s. banks -- are u.s. banks the only global banks left? [laughter] guest: that is a good way to put it. u.s. banks are definitely doing better.
we have talked many times on this show about how they are falling behind, losing market share. japanese banks and canadian banks have done better. they are not as bad as european banks. but when we look specifically at nomura, their problem has been in europe after they bought lehman's operations in 2008. they haven't had as much success as they wanted in all the areas. come last year, they lost market share globally. equities grabbed market share from european banks. in the areas where they lose market share, they are going to cut cost. that is what banks always do when they lose market share in areas. and in equities, they are doing better, so they will probably keep people there. but u.s. banks like j.p. morgan are firing on all cylinders, grabbing market share. j.p. morgan just said a couple of months ago they even want to
open more branches around the u.s., which is very unusual. for a decade we saw branches closing. so u.s. banks are doing great. europeans are doing much worse. japanese and canadian banks are in the middle. vonnie: it is partially due to regulation, right? if european banks want to do certain type of business, they have to have capital in the u.s., but i can only hold so much -- but they can only hold so much capital in the u.s. according to regulators. whatever they but do, in europe or asia, u.s. much harder are because regulators under the obama administration really went farther ahead than international rules required. they goldplated all of the u.s. capital and liquidity rules. that hasn't held them back, though. they increased capital levels
much earlier than european banks. it help u.s. banks to say now we've done it, now we have good capital. now we can do all kinds of things and expand, and they did, and they've been making more money because interest rates are not that low in the u.s.. we started increasing slowly. in europe they are negative. when you have negative interest rates, banks have a hard time making money because the spread really shrinks. you cannot charge negative interest to your depositors. you cannot make them pay for their deposits. but then the interest rates you are charging for loans goes down and down. you make very little in the spread between. that is banking 101. europe has really had a tough time with negative interest rates for a long time. the u.s. is different there. guy: net interest margins. i wonder whether a tiered structure from the ecb would make a difference there.
there is some suggestion that if the deutsche bank/commerzbank deal doesn't get pulled off, unicredit could potentially step in for commerzbank. in some ways, would a cross-border deal in europe be a better thing in terms of the european banking sector? alman: when the deutsche bank/commerzbank deal got serious a couple of months ago, i was talking about how it is a terrible idea because the two don't really make sense. they don't have similar businesses. it is hard to cut costs in germany by cutting branches and firing employees because that is almost impossible. there is definitely more sense to a cross-border deal for either of them to find complementary institutions that would actually help their businesses expand into areas where they are not, and cost cutting would be much better that way when they only cut the areas where they are together. but there is a problem in the article talking about unicredit.
the german politicians do not like their banks to be gobbled up by foreigners. smaller ones, maybe, but the biggest ones, deutsche and see them asy national champions, and they want the control in germany domestically. there's a huge political burden against this deal happening, so unfortunately i think still the deutsche/commerz is still in the running, although the other one would make much more sense. vonnie: you have a wonderful banks lookingon at hundreds of thousands of accounts in the united states looking for patterns of activity , and banks have to put billions into this. yalman: we talked about job cuts, but the trend on the other hand is where banks have been adding.
, and money, in aml laundering compliance, banks have added thousands of employees. on stress tests and other capital regulations, j.p. morgan just added more than 10,000 people. a one side they have cut, but lot of investment in spending money and hiring people because those rules and regulations have begun much tougher, and their implication has become much tougher. job, thedoing a better article is showing. they actually do things proactively instead of reactively like they used to. i think the numbers we were talking about yesterday about overall job cuts in the industry show that certain areas are actually adding in the last few years. vonnie: thank you for joining. check out his most recent story. all of his stories, yalman owner
and leasing companies. the clock is ticking for one of the country's most visible companies at a sensitive time with india's general election just weeks away. jet airways has become one of india's top airlines, controlling about 11% of the indian market. an abupart owned by dhabi airline. it posted lost is -- posted losses in nine of the last 11 years, and recently defaulted on loans. now banks led by the state bank of india have been planning to take a 50% stake by issuing new shares, but the supreme court of india just dealt an unexpected blow, striking down the bank framework that permitted that particular maneuver. if the airline goes out of business, it would likely push
in india and could leave prime minister modi with a black mark on his economic record just weeks before the election. you can check out more about jet airways and all of our quick takes on the bloomberg. we are staying with aviation now. guy: let's turn our attention to what is happening with boeing. , the latest -- with boeing, the latest surrounding their 737 max jetline. a report appears to clear the pilots and pointed the finger at boeing. clear that thee aircraft flight control system related to controllability should be reviewed by the manufacturer. guy: it is interesting. didn't actually specifically talk about the system that seems to be at the center of this whole story. let's get the latest now. kris bryant joins us from portland -- from berlin.
how definitive is this report? reporter: not very, at this stage. all we had today was a press conference where the ethiopian authorities outlined their initial findings. surprisingly, we don't have the physical copy of the report yet. what they were quite clear about was in their opinion, the pilots of this plane did everything they could have done, followed boeing procedures, and still weren't able to rescue the flight. while not directly pointing the finger at boeing, it does shift a good spotlight -- it does shift the spotlight onto them, and they did recommend that boeing review the flight software and that aviation authorities do the same. of course, that process is already happening. vonnie: how long does boeing have before this needs to get resolved? and i don't mean that there will be dire consequences for the company come about the same time, it can't afford to keep this in the news cycle, to keep the question marks over the
viability over its most popular and newest aircraft, kennett? -- can it? in recent reports days made very uncomfortable reading for the manufacturer. the pilots were doing their best to keep this aircraft in the air, and try as they might at following procedures which boeing itself laid out in a message to pilots after the lion air crash, they weren't able to do so. boeing is working on a software fix. we understand that is still in the works, but is going to take some weeks. then aviation authorities will have to review that fix, and international authorities have formed a panel to review the safety of the aircraft. this is all going to take quite some time, and boeing continues to many factual the aircraft in the meantime, so you can imagine the aircraft must be building on the tarmac outside its factories.
guy: is the future of the 737 secure at this point? the reason the system was put into the aircraft was because they had to shift the bigger engines forward. that changed the weight distribution of the aircraft and caused concern about a stall. this is a very old airframe, and in some ways you wonder whether or not it is time for boeing, despite what they are doing and producing all of those 737 max's, to look at a new, narrowbody. is that on the cards at this stage? chris: right now, no. investors are hoping there is no fundamental structural problem with this aircraft, that essentially a software fix when it comes should solve the problem. of course, the other scenario is that indeed, there is some structural flaw. but it makes sense to bring
forward the developing of a new aircraft. that would perhaps inspire airbus to do something similar. but we are not at that stage yet. right now the focus is on getting a software fix that solves this problem and prevents any kind of similar accident happening in the future. vonnie: are things to chris bryant of bloomberg opinion, live in berlin. this is bloomberg. ♪
♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." time now for futures and focus. joining us from the cme is dan deming. we are starting to see the movement we've seen in oil prices beginning to slow up a little bit. i am wondering if we are getting to the stage where the best solution for high oil prices is high oil prices.
dan: exactly. it does feel like demand is probably going to be very significant moving forward, and the increase in demand. we got a nice narrative out of china earlier this week. it is continuing to evolve here and showing a little bit of growth prospects. tradeand u.s. prospects continue. it does feel like we are reaching a critical mass around the 200 a moving average of both of these complexes come over you will have to see a pickup -- the 200 day moving average of both of these complexes, suggesting you will have to see a pickup in demand. there will be a massive out load of u.s. products from china in the lead up to 2020. dan: some of these initiatives are going to be rolled out over
the next six years. we are seeing a little bit of reaction to that today. up about 0.5%orn today. i think is that unrolls, there are going to be dynamics in the marketplace that are going to have to be sorted out over a longer period of time. guy: thank you for spending some time on bloomberg today. dan deming, managing director of kkm financial, joining us from the cme. vonnie: shares in tesla plunging 8.25% after the company reported declining deliveries. emma chandra is here with more. emma: they delivered 63,000 vehicles in the past quarter, down from nearly 91,000 in the fourth quarter. of those, it is interesting what happened with the tesla model three. they delivered 50,900 model threes, less than had been anticipated and less than the
previous two quarters. that is stoking concerns that we are seeing falling demand for the model three just two years after it was first introduced. is this a u.s. problem or a global problem? emma: with regard to the u.s., this did coincide with shrinking u.s. tax incentives for electric vehicles, so that would have played into it, too. but also in the past quarter, tesla really struggled to get deliveries on time. bloomberg intelligence saying it is the logistics of increasing supply that really explains sequential drop, but it also highlights that the business model isn't really prepared for high-level global production and distribution. short interests rising on tesla today, off of the low, but still the most shorted stock.
vonnie: we will be keeping and i on the tesla court case today as well, and bringing you up-to-date. aming up, and search of compromise, the u.k. prime minister and opposition leader try to reach some kind of a deal. diplomat, the u.k. ambassador to the united states. he joins us from washington, d.c. the dow jones industrial average is by far and away the winter today, up 2/3 of 1%. the best performer in the dow is dow. this is bloomberg. ♪
european trading day. vonnie: this is the european close on "bloomberg markets." guy: disappointing data out of europe. what we are seeing is actually an interesting response. european stocks drifting sideways today. euro-dollar trading down a little bit. is there a sense that europe is beginning to bottom out? plenty of our guests are saying no, it is going to be a long and bumpy bottom. that is what is happening right now. we are also watching what is happening with the brexit story. the dollar is a story we are watching.