tv Bloomberg Markets European Close Bloomberg April 12, 2019 11:00am-12:00pm EDT
trading day in new york. 19 minutes into the new york session. guy johnson is off today. this is the european close on "bloomberg markets." we take a look at what is happening in the united states -- in europe. the stoxx 600 barely holding on to some gains. we will see if it stays that way the next 30 minutes. it had been higher earlier. there banking index one of the contributors. thehe banking index one of contributors. the banking index up 1.9%. dax up. the automakers forming part of the green crew. the euro trading a today versus the u.s. dollar at 1.1314. in the u.s., the s&p 500 at the 2900 mark. we will see if it can stay above that. but it has trying, been a recent gains over the session. disney up 9% after the investor
day yesterday. unveiled, aisney+ major strategy shift for disney with a lot of details on data, subscribers, and what is anticipated through 2024. jp morgan up almost 4% after its earnings. chevron on this major deal to buy anadarko, down by 5.3%. let's continue with more from the imf world bank spring meetings. tom keene is there with a special guest. a special guest. thank you so much. to all of you worldwide, an important conversation on the ands of politics, finance, borders and tension. that can only mean austria. austria is at a point and its history where they are front and center on these themes. with our stuff finance minister
finance mr. of austria -- finance minister of austria, hartwig. -- hartwig loger. right now, your politics are remarkable. how does your finance fit into their coalition and populism of austrian politics? loger: the politics are strong in a conservative way. we first have the long 65 years and will reach a budgetary surplus which was down the last time in 1954. over this time, it will be the , so out ofin 2019 these, we try to stabilize and look forward to seeing enough money for investments in innovation, things like that. tom: there is a wonderful
monograph on populism, but it is not a thing now. in your nation, their freedom party is up. anddoes capitalism work corporations work within this coalition populism in austria? multinationals done, how have they responded? min. loeger: our partner in the governments, there is no need to deepen discussion, because our common way is to be part and member of the european union. austria is inry the forum. we are strongly oriented to work in the ideas that we are able ourselves. besides migration and topics like that, to handle it. in a positive way. and now also to be sure that we have to take our chances to come , therd and, in this form
in a conservative form -- be in a conservative form. tom: each nation has their own cultural calculus on migration. clearly front and center in austria. do you need population growth from outside? min. loeger: yes. we see the population growth is needed because we have demographic positions. we also have to see the public finance system. right way. find the there is migration for labor and there is also migration for the social system. this is what we try to work out. what is the way, in which form, can we develop our country? because we also see the situation of refugees and we are open to integrate this situation, but we have to work in the different forms. tom: there is such a heritage
here. no compare and contrast between austria and the united states of america, but what can president trump and americans learn about your board experience in austria? if olson to the financial system, doesn't it? -- it folds into the financial system, doesn't it? min. loeger: we have a high level of social benefits. borderot say we open the in the art. we have to clear up, as i said, in which more migration and immigration will come forward, but this is where we focus on. it does mean, yes, there will be the need for people coming from outside, for the labor market, but we tried to arrange it in the way we are needing. tom: the upwards on the technology side is a digital tax. you and your chancellor are leading on this, trying to
corral american tech companies. how much do they hate you in silicon valley? min. loeger: there is no need to be angry in that forum. out of a discussion i had with steven mnuchin in bali. in austria, we have three topics in this digital tax package. one is following the idea of america. there is a need of reporting obligation for platforms. this make sure there is a liability if they do not report in that way. i know also the americans already did that, so we are following the idea of the americans. the second step is, at the moment for online trading, there is a loophole in the way that there is a limit beyond 22-year-old online's findings outside the european union, for
example from china, are not taxed until the level of 22 euro. this is what we are closing now. and the other thing is there is a new tax, a digital tax, for online advertising in the amount of 5%. thein austria we had situation for traditional advertisement that 5% of tax was taken. this will be expanded to online advertising. tom: one question, the only question that america -- that matters in america now. how is the uber servicing vienna? min. loeger: it is working. tom: you will be at advocate for uber when they go public? min. loeger: yes. the finance minister of austria, and he welcomes all of you to vienna. we will be there the first week of september. hartwig loeger. vonnie: we will have to go and
have mozart chocolates. tom keene from the imf world bank spring meetings in washington, d.c. in the u.s., big banks kicking off earnings season. jp morgan setting a record while wells fargo initially surprised with its best first quarter profit in five years. but since the close, sentiment has turned negative. call --gs on the key things onour the call. two modest positives, but two negatives at weighing that. the number one thing is a net income interest guidance. they are guiding down 2% to 5% this year. the expedition was for 1% growth in net interest income coming into this call. that is 60% of their base as a midpoint. 2%, so notenue is at
good. vonnie: that is where you see the stock rolling over. theyn: the second thing is sort of let go of any guidance related to the asset cap, saying they will focus on doing what is right, but that could indicate that their expectations are pushed out. the expectations for a lot of people on the street after we have seen regulators come out negative across the bank. the last item they were given was through the end of 2019, suggesting it could be as early as 2020. i think a lot of people think that will be pushed down now. vonnie: what are some of the positive things we may not have seen on first pass? alison: the two modest positives with effect that they said that was the fact -- fact --
nextccounting guidance for year, there is a new accounting standard. it will be negative for a lot of their banks, but for wells fargo, it could be a modest positive to both the overall income statement and to their capital. vonnie: what did we learn about succession planning? late for that now. they are deep in the search. did we get any update? alison: that is the number one question. we did not get much of an update. that will be the kind of thing that we will not know until we know. once we have that answer, it is a critical answer for the bank in terms of what this strategy will be, are there other measures they can take to shore up the bank. is an negative, the fact that it could be longer, but it is not really impacting earnings because there
are not market opportunities. there the net entranced -- the net interest income guidance again. deposit pricing will get worse. they are also talking about the fact that lower long-term rates hurts investment deals. that is more of a factor for wells than others. willp morgan saying he leave our guidance alone for the moment. you could say that wells is being more conservative, but there are certainly other factors at play impacting them versus others. vonnie: that interest margin at now.rgan up 2.56 percent the overhead ratio came down. lots of good news across the earnings report. anything negative at jpm? alison: there are some things that helped it that may not be sustainable. we will have to see what happens with the yield curve. if it stays inverted, could there be downside to the net interest margin? the other positive was better
market revenue, so that is a positive, but it is still down significantly from a year ago. the good news is that april is looking more constructive. vonnie: after the seven or eight hours of hearings with some of the major ceos in front of congress, the only thing that came out of it was a question for jamie dimon on his minimum wage. did anything else emanate from those hearings? alison: there was a lot of politicians expressing their views, leverage lending concerns came up. that is nothing new. banks talking about mortgage, something jp my -- something jamie dimon talked about in his letter. we want to talk more about that as we are going into the next presidential election cycle. either more calls to do more on mortgages, the one product that, since the crisis, still tight over the long term? we have seen less listening in
recent years. we will probably see some regulations may be hampering credit to that market, can there be pickup their? vonnie: our thanks to alison williams, joining markets throughout the day. let's check first word news. courtney: massive deal -- chevron making a $33 billion bet on the permian basin, buying anadarko petroleum. the price represents a 39% premium to anadarko's closing price yesterday. chevron intensifying a battle with exxon mobil to be america's top energy company. could take months or years for the u.s. to extradite julian assange from the u.k. his lawyers say they will fight the attempt to send him to america. assange would face charges as part of hacking attempt.
he had been living in ecuador's embassy for almost seven years. jay powell told democratic lawmakers the central bank will not give into political pressure. those remarks came at a democratic retreat in virginia. powell said not to have mentioned the president's attack on the federal reserve. in china, exports have rebounded after the lunar new year holiday. if a trade deal is reached with the u.s., export growth could rise. import sales continue their slump, down more than 7%. that underscores the fragility of china's domestic economy. global news 24 hours a day on air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. vonnie: thank you. coming up later, we will hear from germany's finance minister from the imf world bank's spring
vonnie: this is the european close on "bloomberg markets." i'm vonnie quinn. let's get a check on global markets. here is abigail doolittle. abigail: we are looking at a bullish friday. the dow up seven times of 1%. the nasdaq up one-times of 1%. a little divergence there. up german dax also higher, about half a percent.
a risk on day considering we have haven bonds falling on the day. the 10 year yield up five basis points. at jp looking at disney, morgan, and chevron actually a drag, but disney hitting an all-time high. justrgan, as you were talking about with alison williams, put up a strong quarter. at its highest level of the year. anadarko petroleum clearly soaring after its 33 billion-dollar buyout from chevron, which is lagging on the day, typically happening with the acquirer. , therento the bloomberg is a divergence for the dow on the week. what we are looking at in white, the dow, and yellow, the s&p 500, in blue, the nasdaq. mainly gains. the s&p 500 on pace for its best chart since 1987. the doubt down about 4/10 of 1%
-- the dow down about four times of 1%. fiveg fuel to the fire, a a chart of the shanghai composite. chinese stocks on the week having their worst week of the year, down 1.8%. this could be consolidation of this year's big gains. there could be volatility next week in u.s. stocks based on china. vonnie: we will get through today first and then see about that. uber filing for its long-awaited ipo. michael regan wrote about the heard of unicorns going public recently. he joins us now. what is the first thing to look at? michael: a lot of smart investors, before they dig deep into the numbers, they look at the leadership, read this eeo letter in the prospectus -- read the ceo letter in the prospectus.
a lot of these have been led by iconoclastic sanders -- found ers. they are kind of worshiped in the startup world but are less known on wall street and maybe not as much worshiped on wall street. uber is different in this heard daraat you have ,hosrowshahi in the ceo role formerly of expedia. he delivered for shareholders. the stock, and the second half of his leadership, greatly outperformed the s&p, the nasdaq, whatever benchmark he put it against you get to take a company losing this much money public is a challenge. to have a guy like this in the ceo role mitigates that to some degree. wall street will take some comfort that has a ceo with this track record. vonnie: in terms of valuation,
what did you make of the numbers? michael: we do not know yet what it will price at. the compensation target for the management is $120 billion valuation. it would put it in rarefied air as far as companies already public. if you look at the s&p 500, uber would be about 10.6 sales, almost 11 times sales. than 20 companies in of a&p 500 and that high price and sales ratio. them, there is only one that was money-losing. in fact, there is only one money-losing company with a price and sales ratio above. viewy not matter if people
uber as an amazon-type company, that they are willing to ignore losses as long as a top line keeps growing. growing.p line keeps the question is will it come back to that spectacular growth or is that sales growth .ecelerating vonnie: and there is no way they will be accused of hiding back the challenges. they put everything under the risks. michael: it is a real kitchen sink. they gave a laundry list of all the bad stories you have heard about uber over the past years. the macro risks are interesting to their coming to the public markets at a time where unemployment is very low. we are close to full employment in this country. finding drivers, if this employment environment continues, could be a problem. gas prices are inching higher.
there is a lot of risk. they have to sell themselves as the amazon of transportation, which from a lot of the reporting is what they are trying to do. they are investing in growth, investing in auxiliary businesses, flying cars and autonomous car's. that is the future. if you all of a sudden have self driving cars in uber, that changes the paradigm. it gets rid of a lot of the risks and would greatly reduce costs, to some degree. how close we are to self driving cars, i think it is hard to say. they are optimistic, but it is a few years out. vonnie: michael regan with that wonderful story on uber in unicorns about to hit the market. ont is on "businessweek," newsstands now. hear from the magazine's
closing. i want to take a look at some of the major averages we are watching. the ftse 100 is the underperformer. it is the dax and the cac 40 that are the out performers. german market up .5 percent. sinceggest percent gain wednesday, positive news in deutsche bank and unicredit giving these indices a lift and the cac 40 up for a third straight session. you have underperformance in terms of volume in the first half of the day. positive banks earning and calm in the brexit. that is look at your european markets. vonnie: now is time to get down to washington dc and the imf world bank meetings.
tom keene is there. tom? to be withwonderful the first of the managing director of the international monetary fund. does first-order economics but out of harvard he has landed to rest and risk management doing that it citigroup and other spots along the road. he can link in the stability of the system into our present day economics. she calls it a delicate moment. what is the delicate moment of our global financial stability? >> it is a risk management moment. we have the forecast of the economy slows down. thate downside risk and means one has to be very careful. we expect growth to strengthen back next year but with trade tensions, not knowing where
monetary policy is going to go, not knowing how chinese growth will turn out, is time to make sure policymakers do no harm and they try to be supportive of growth. the last thing we want to see is a downturn. tom: when you say do no harm that speaks to the trade policy, the almost mercantilism of the president of united states. interview,rview to it is not bad but the trade dynamic is messed up. david: the u.s. economy is doing well. it is slowing down, it may not be as high as the administration hopes, but it is a strong economy. we want to make sure there is no downturn globally. we would like to see the trade tensions diffuse. this is not a one-sided matter.
the countries the u.s. is complaining about have problems. there are trade impediments, they should beat out with. there should be a negotiation -- they should be dealt with. there should be a negotiation and a deal. uncertainty hanging over the economy right now could tip the delicate economy. tom: a delicate question. is multilateralism dead? do look at the year as a one-off and we migrate back to where we were or is there new permanence? david: i think it is a difficult moment for multilateralism. there have is never been total support for free trade in the world. globalismt decade, has won out because the benefits have been seen as so important. now people are questioning whether the dislocation and the displacement are so important
that they should retreat from multilateralism. with the imap think not. findink it is important to ways to address their domestic problems while still sticking with international rules of the game. those rules may have to be changed. we may need smarter rules. these countries have ways to take care of their people at home. when they subscribed international rules and institutions, they are still able to take care of their people. tom: very good. breaking news. if you want to bring this up. i do have a monitor. this is on the eu looking for duties of a large amount on a smart airplane company in the u.s. we thank the eu for releasing this while we speak to the first deputy managing director of the imf. there is in living color. david: that is the threat. i think solving problems through dialogue will be better.
trade actions lead to retaliation and retaliation leads to escalation. at a delicate moment like this, that does not strike me as a good way to go. weed mathematics, the first derivative and the second derivative of these rapidly declining interest rates led by europe. people mentioned the five-year forward of plunging inflation. is that amount of stability or can you ignore that? david: we are concerned with slow down and europe is slowing because of events in europe and the global economy. slowing and aa low inflation and in expectations that it take the ecb much longer to get back to zero interest rates. that is worrisome. the answer is not just monetary policy. the answer is to use all policy instruments, have a coordinated global approach to try to keep so economy on a steady keel
the disinflation does not become inflation. tom: you have taken a personal what we're seeing in the economics in venezuela. it is a mess. it is the social catastrophe. how can this institution assist to a better venezuela? david: i hope we can get to the point where we can assist. we have huge capabilities. until our membership, we are guided by her membership on which government we recognize when. they have not decided. it is a food crisis, it is a hyperinflation crisis, it is a physical capital deterioration where the energy to get -- the energy sector is down two thirds if there is even power on. it is a huge debt crisis. we've seen those elements in some places around the world, but never all in one place.
we are ready to try to help and help coordinate and never, but we cannot get to the starting -- coordinate an effort. the real problem is the government of venezuela is not acting to fix these problems and address the hardships of the people. that is the problem. until there is change there, it will be hard for the international community. doctrine has to come in here at some point. we're the big guy in the room. assist president trump advocating for a better venezuela. we have been working with our members to put forward what analysis weekend, given we have been persona non grata for 15 years. we do not have all the data. i do not think the monroe doctrine will hold. venezuela will need the entire international community, embody bank, and, the world
possibly bilateral efforts. the u.s. will play a key role. i think it will have to be a truly international effort to deal with a case that is difficult. david: one final question. i know you have to go to the imf photo opportunity. they all get in the same room together for quick photo. one more question. are you enjoying being the american representative to this institution? david: i follow in a great line of people. predecessors. i am pleased to have this job and to have it at a time when there are so many interesting things and so much responsibility. tom: state to president trump why this institution has value. david: this institution helps
promote global growth and global stability. it is in u.s. interest, it is in the interest of every u.s. exporter. steve mnuchin has been a strong supporter of the imf. they understand this is one institution that works for america. tom: david lipton, thank you so much. first deputy managing director. thank you so much. vonnie: our thanks to tom keene from "bloomberg surveillance." at the imf meeting all weekend. union said to raise duties on $10.2 billion of u.s. goods in the boeing case. let's check in with courtney donohoe. courtney: president trump considered nominating his daughter to be the head of the world bank. the president told the atlantic magazine she would've been great because she is very good with numbers. he also considered her for the
job as u.s. ambassador to the united nations. he said he was persuaded against it because of the appearance of nepotism. president trump is said to realize herman cain will have trouble getting confirmed to the federal reserve board. some of the president's advisers said they would not be surprised if herman cain withdraws. four republican senators say they will not vote for him. one has cited sexual-harassment allegations. the british chancellor of the exchequer sees a good chance of the brexit deal within weeks. philip hammond says theresa may's government and the opposition labor party agree on the fundamentals. he says the government has not set any red lines during the top but he also said the uk's reputation has been damaged by the political uncertainty. billionaire warren buffett calls elon musk a remarkable guy, he just doubts whether the ceo of tesla should be on twitter as much. he says musk has room for
improvement of the chief executive. a federal judge has given must the deadline or guidelines as to what he can post on social media. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am courtney donohoe. this is bloomberg. vonnie: thank you. let's get a check of where the european stocks settle as we head toward the second half of the day in the united states. your thestoxx 50 up ftse 100 clambered back up. the cac 40 in paris up .33% -- up .3%. the ftse, the dax, and the cac 40 benefited from higher banks. banks, putting a brighter tone on european banking. this is bloomberg. ♪
vonnie: this is "the european close" on european -- on bloomberg markets. shares of chevron are down as chairmaniant bob -- told david westin alix steel that access to shale was a big part of the deal. continuous -- that runs across the delaware basin, which is the core of the permian. this allows us to bring things we have become good at, factory drilling and the service infrastructure to a much larger portfolio. we saw this tremendous royalty advantage. this brings together two nice assets and makes her permian position better.
david: that is not all anadarko brings. you have the deepwater assets, you have gas assets. last time you were with us you are saying permian, permian. does this shift your company to other places to look for gains and are those longer-term gains? i think the permian can sometimes take the air out of the room. we are a global company across many asset classes. the permian is what everybody likes to talk about that there is much more. anadarko's world-class company with terrific assets. we have high graded their portfolio and of a highly consummately position in the gulf of mexico and they have a nice lng position they are developing in mozambique which will consummate investments we have made in australia and help us grow our lng portfolio. the industrial logic and the fit between the companies globally is very strong. alix: he will not sell lng mozambique, you will develop?
michael: we like the way they have developed. they have a world-class team of people and we're excited about it. vonnie: that was the chevron ceo michael wirth. the stock down about 5% on news of that deal. when you wish upon a star, you get kailey leinz. disney headed for its best day since 2009. shares up 10%. disney has added more than $20 billion to its market cap and netflix has lost $8 billion. disney is coming into the direct competition to netflix and trying to seize on this boom we have seen and streaming and that direct to consumer segment of its business. be 810 million subscribers for these kind of services by 2020. disney is trying to take advantage. right now direct to consumer only makes up 6% of its revenue. with the disney plus service, they can expand on that. because of this they did have to
give up a content partnership with netflix. they will be sacrificing the revenue and they will take other financial hits. they will invest about $1 billion in the streaming service this year and will not turn a profit for some time. will not break even until 2024. there will be near-term financial impact but they're hoping. vonnie: kailey leinz, thank you for that. that was kailey leinz on disney, up nearly 10%. bloombergs tom keene and francine lacqua with another key voice in washington, d.c. guys? tom: it is near the end. amongo opportunity central bankers, finance, and the leadership of the international monetary fund. it was a delicate moment. a delicate moment. they did the photo op. francine: all of the attention when we talk about trade. you are smiling for the pictures. one man always smiling is the
finance minister of canada. thank you. tom: there is always good news in canada. francine: there was also a little bit of a slow down. you worry about the canadian economy? >> my job is to worry about everything. in terms of the canadian economy , we had a slow down because of changing oil prices in 2018 and we had a particularly good month last month. we are hopeful we will see a positive change in the second quarter which will be good for our economy. francine: out of all the finance ministers of g20, you probably know steve mnuchin more than anybody else. what does he tell you about trade, about u.s. and china? will they find a deal? bill: i do have a good relationship with steve mnuchin. he is intensely involved in these discussions. i asked him on every occasion and i get the sense there is project being made but a deal is
not a deal until it is a deal. i think they need to continue the hard work and it is to all of our benefit. we're all looking for what we hope would be a positive outcome. tom: one of the great things that comes out across the 15 years as it seems to be the most sane thinking system. we see now the complete backstory, a european banking model. somebodyy month or so says if we can only be like canada. how you get the eu banking system to be like toronto, montreal, and vancouver? bill: we do not have the hubris of telling other people what they should be doing. we will set ourselves as an example. what you see in the canadian banking system is well-capitalized banks that carefully look at the risks and manage those in an appropriate way. that has been a positive
backbone for our economy. we like to think that is a good example for the world. francine: your countries -- your country has been getting the wrong type of attention. the great white short of canadian bank seems to be coming back. bill: it is not my role to do anything about it. investors will look at the facts of the situation and try to evaluate what short-sellers will be saying and come to their own conclusion. my conclusion is the economy is doing well. we are managing the housing system. francine: what does it tell us about the strength of the canadian banking system? bill: it tells you something about some investors, not the canadian banking system. the underlying thesis people are working on is our housing markets, and our housing markets have stabilized. friedlandkrishan front and center on this argument on trade -- you and christian freeland in this
argument on trade. what is the next step for the united states of america and canada on trade? isl: christian freeland central to that. she is the lead on that. what we are doing is pushing forward the agenda we have, which is things like the steel and aluminum tariffs. they do not make sense for the canadian economy or the american economy. we think ratification of the new usmca make sense. tom: i just asked david lipton, the deputy managing director, absolutely critical of the idea -- is the idea of the relationship. is there a permanence to the attention we've seen between the nations? bill: we have a broad and strong relationship and there always be flashpoints in a relationship that brought.
as united states looks at making sure the trading world is working for them, we come into that because of the size of our relationship. we're working through the ways this has been productive. are you worried the u.s./canada/mexico deal will never be -- will never see the light of day because it has not been voted yet? bill: we remain cautiously optimistic. we continue to look toward united states ratifying the deal. tom: what have you learned in vancouver about the dynamics of china? on the from a distance east coast about china and vancouver real estate dynamics. there has to be lessons learned about the uncontrolled nature of the money coming in and coming out. what is the lesson there? bill: we have seen some lessons in our real estate sector. it is a place where people have decided to invest. seeing some significant funds. we are good with foreign investors and want to make sure people are not throwing money
through and flipping profit. tom: is there been a canadian solution that eludes us in the united states question mark bill: it has been relatively affected, what happened in british columbia. there are connections around looking at foreign investors to try to manage that. it has gone relatively well. on this date chevron and occidental in the news, anadarko as well. there was a line off the cliff on the bloomberg of canada oil. that was ugly. how you resurrect that and get chevron and occidental to get after canadian assets? bill: the fundamental thing is access to international markets. we need to have pipelines to get access to international markets. we are working in that regard and have purchased a pipeline to try to move forward in the right way. that is long-term going to be
positive to get through the approval process. francine: the bank of canada was one of the few central banks that saw the rate hikes. president trump is now worried there are too many rate hikes. are you worried there was too much aggressive interest rate hiking? bill: our central bank is independent from the government, so they are taking decisions based on how the economy is going. it is always positive from my standpoint. the economy is going well enough that it needs to consider rate hikes. i saw that as positive. if you look at the risk in the world, where do you ?ut monetary policy how does monetary policy compare with extra terms? is it number one or number two in terms of risk? bill: we see our central bank being prudent.
what we are seeing around the world's people pulling back. in the context of what is going on, that is appropriate. in our economy, not my decision. it has gone well from our standpoint. important.s i've been cheating off of the bloomberg cell phone, looking at what -- francine: this is hockey for our international audience. tom: finally the resurrection of the mother franchise. bill: i did not get to see the game. should've ducked out for the empty net goal at the end. i'm going saturday night to the bruins game so i'm excited about that. i've a prediction on that front. the bruins are done in on saturday night. francine: we will get you back on monday. thank you so much. the finance minister of canada. with that we will send it back to you in new york and have plenty more throughout the day
right here at the imf world bank. vonnie: a lot of great interviews already done would you can find on the bloomberg. elsewhere, on "balance of power" outgoing small business administration head linda mcmahon joins. it will be her exit interview. here in the u.s., we are heading toward the midpoint in the u.s. session. the dow is up when it percent. at 2901.00 trading holding on above the 2900 mark. up .5%. the nasdaq of .25%. the best performer in the s&p, anadarko petroleum. this is bloomberg. ♪
welcome to "balance of power" or the world of politics meets the world of business. george ferguson from princeton on the eu tariffs over the boeing problem. in new york, alix steel on the chevron deal shaking up the oil industry. george, thanks for joining us. the eu is weighing tariffs. they say-tat because we are subsidizing boeing the way the eu is subsidizing airbus. george: this has been brewing since early this week. the case against airbus is that they abused subsidies to develop the 350 and the 380. the 380 has not been that competitive and air an airplane but the 380 competes with boeings most profitable airplane. we have looked at this. these trade disputes get quite messy. i think boeing has a good