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tv   Bloomberg Markets Americas  Bloomberg  April 24, 2019 10:00am-11:00am EDT

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it is to neglect a.m. in new york, 3:00 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." vonnie: the bank of canada abandoning its bias for higher interest rates and maintaining the benchmark overnight. a dovish decision from the bank of canada, once again, but abandoning the bias for higher interest rates. that is the dovish part here. let's look at what the canadian dollar is doing. it is weakening pretty substantially. a spike in dollar canada by two thirds of 1%. let's turn now to u.s. markets. the s&p 500 fractionally higher. we also have the dollar index stronger today. some buying in treasuries, the 10 year yield at 2.52% the past couple of days. the best performer in the s&p
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500, anadarko petroleum after that bid this morning. we will speak with the ceo a little later on bloomberg tv. boeing scrapped its guidance on 737 max uncertainty, but is up 1.1% right now. lots more stocks on the move thanks to earnings. in 15 minutes, we will get insight on boeing's earnings. guy. guy: over the last couple of minutes, we've also learned that outflows from dws, the deutsche bank asset management division which is said to be in advanced talks with ubs, have halted the outflows given what is going on with the potential talks around that business and the potential talks between deutsche's and commerzbank. here, stocks are generally lower. we have had earnings out throughout the day from the tech
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sector, credit suisse with good numbers, volvo with good numbers. we've also seen sap with good numbers. withtis in the tech sector good numbers. we've also got a german yield on the 10 year that is negative again. the bund is trading in negative territory. we saw disappointing data out of germany. we also saw disappointing data from france. the dollar continues to be on an absolute tear at the moment. another commodity currency, a bit like the canadian story, really disappointing inflation coming out of australia a little earlier on. that firmly puts the rba in a downward trajectory. that is not the aussie, as you can see. the aussie dollar trading down
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by about 1%. vonnie: let's check in now on the bloomberg first word news. here's kailey leinz. kailey: the trump administration wants to wrap up a trade deal with china by next month. a high-level u.s. delegation goes to beijing next week for talks. negotiations returned to washington may 8. washington officials hope to announce then they have a draft agreement. there are still a number of issues on the table such as intellectual property, forced knology transfer, and how i deal would be enforced -- forced technology transfer, and how a deal would be enforced. president trump tells "the washington post" he's opposed to former and current washington officials taking part in congressional investigations, saying they are not necessary after the mueller report. lanka, the death tolls from the easter sunday bombings have risen to 359. the country's president had
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asked for the resignation of the defense secretary and national police chief that failed to act on warnings about the attack. north korean leader kim jong-un has arrived in russia for talks on his nuclear program with vladimir putin. the kremlin says he will try to salivate the trends from president trump's meeting with ended without resolution. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. guy: thank you very much indeed. the earnings season is in full swing. generally it is going reasonably well right now on both sides of the atlantic. equity markets and the states continue to power ahead -- in the states continues to power ahead. so what do you do next? tom lee joins us on the side of the atlantic.
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if you analyze the gains we've got already so far this year, i think you get something like 68% on the s&p are. clearly -- on the s&p. going tohat ain't happen. guest: we said that for a variety of reasons, 2009 would be the best analog for this year. that ended up being it when he 5% year. i think we are halfway -- a 25% year. i think we are halfway there. investors still have 10% upside, but it is going to be a lot slower than the first three months. guy: do you need to pay attention to the earnings season thus far? the industrial numbers look pretty good out of the states. tech numbers coming out this evening. guest: this is the busiest week for earnings. we've noticed there's been some pretty significant positive revisions to financial earnings. i think financials are doing more lifting than we expected. i think the disappointment or
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risk in terms of sectors for the rest of the year is health care. that is a group we've rated neutral, but risks are rising for that group. i think it has taken off 25 points out of the s&p already just in the past seven days. in other words, the s&p would be another percentage point higher than it is now. bitie: we did see a little yesterday for health care. does that continue, or was that a little bit of bottom picking, do you think? tom: i think it makes sense there's going to be some buying because health care's gap relative to the s&p has been pretty sizable for the first quarter. one of the risks is there is a political risk which doesn't necessarily have an end date. as we wrote about a week ago, health care is a huge overweight in hedge funds and active managers because it has really been that growth toolkit people
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have used. i think more active managers want to de-risk their health care holdings, which means people are going to sell the rallies. vonnie: the other thing that may be surprising is that fangs are playing a part again, leading higher for the s&p 500. we get some earnings today from more, like facebook, microsoft, and so on. does that continue? can this whole thing continue? tom: faang, the companies themselves have found ways to grow and monetize, so those are true secular topline stories. what we found when we analyze returns of faang is that every other years, faang stocks have expansion in odd years, whereas earnings are continuous. when he 19 happens to be an odd year. we've been recommending -- 2019
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happens to be an odd year. we've been recommending thing since -- recommending faang since the beginning of the year for that reason. guy: the instinct continues to be for funds to sell vol, but are we in a real situation when it comes to volatility? tom: i saw an article i think from barclays that vol follows credit spreads. we had a rally in credit this year. financial conditions have eased. that makes sense to me that we should see lowered volatility, but of course, it is not a was going to be that way. vol,you have extended low you are going to get a volatility spike. guy: is the market complacent right now? you've got a higher target. think there's more to come here. risk-adjusted, is the next 10% worth taking? or not, because volatility is so low and portfolios can handle
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it? if that number starts to pick up, the heavily listing -- the heavy lifting is going to be hard. tom: since the start of this year, i would say our anecdotal observations talking to our clients is people are uncomfortably heavy in cash right now. there's too much dry powder. i think people have been skeptical of the rally this year. now that we've made new highs, everyone should have been 100% invested at the start of this year. invested, and% everyone was in defenses. on january 1, that was our outlook. there were at least five things that mirrored exactly what happened in 2009 that were present on january 1 of this year. that is why 2009 has been the best template in our minds. vonnie: tom, we will be back again soon. that is tom lee with funds track -- with fundstrat global advisors. futuresp, we get boeing
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with a directing manager of equity research. this is bloomberg. ♪
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♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." guy: boeing calls about to start. the company suspending its earning forecasts following the grounding of the 737 max . the call is going to start in around 70 minutes. i think it is going to be ash around 17 minutes. i think it is -- 17 minutes. i think it is going to be critical. we are joined on the phone bike herbert. genuity's ken
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how critical is the tone going to be on this call? ken: i think it will be very important. i think people are going to be very focused on how they gauge and quantify the impact of the max to the extent they can, but more importantly the message they are going to send to future passengers, regulators, and the industry around this situation right now. guy: in terms of the financial costs associated with the grounding, it looks like they are going to anna ties it over the lifespan of the max. i assume that is going to make it a lot easier for investors to swallow and focus on the order book and what is going on in the business. very likely, but on the flipside, investors are focused on clash low -- on cash flow. that is going to be a key factor
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this year when they resume guidance, but you are right, from an eps and earnings standpoint, i expect them to smooth this out. it will certainly be a headwind to margins within the commercial airplane segment, but i think it will be the main focus for investors as it pertains to grounding. vonnie: it is a bit strange that the stock is rallying at 1% or so today given how much uncertainty there is, including the fact there is no guidance, no idea about when deliveries are going to resume, or even when manufacturing is going to resume on the 737 max . does the of answers street need to know about that? ken: i think investors are a little bit relieved. some of the numbers in the defense business were encouraging. if you look at the early backdrop with p or companies have been reporting -- with what peer companies have been
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reporting with boeing, it has been very strong as it relates to broader economic growth. the stock has been incredibly resilient not just today, but since the grounding. i think investors are confident boeing will eventually reach a resolution that is favorable with minimal impact, but i am surprised because there is still significant uncertainty. the polling of the guidance points to the fact that boeing can't get in from the regulators. they have a good idea in their mind it when they expect the grounding to be lifted, but certainly they will not get in front of any glittery agencies or other bodies at this time with a firm statement on that, so the pulling of the guidance is probably the most prudent move at this time. vonnie: what is boeing's best hope? does it resume building the 737 max at some point with regulatory approval? will it have the blessing of the flying public? ken: that is something time will
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tell. i would imagine as you go through extensive testing and pilot training as part of the recertification process, it might take time, but i would imagine the flying public here in the united states will be willing in relatively short order to get on the aircraft. the reputational risk around this program for boeing, and obviously for the public in emerging markets and china, and parts of asia and africa, that is a different question which will likely take more time. but if they are able to lift grounding and there aren't any other incidents this summer, with time the public will come back to embrace this aircraft, and he will see a full recovery -- and you will see a full recovery. guy: ken, thank you indeed. great to get your thoughts ahead of the call. ken herbert with canaccord genuity. we will bring you that call as it progresses. vonnie: markets around the world are mixed to lower, with one or
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two exceptions. let's check those with abigail doolittle. abigail: we are looking at mixed markets around the world. very small moves for the s&p 500 and the nasdaq, both consolidating after yesterday's record highs for these indexes. investors trying to figure out what's next as they digest earnings. plus, this year's big risk rally , but there is a clear risk off picture in europe. the ftse 100 down 8/10 of 1%. we also have emerging markets lower. a bit of a risk off cents. that. is confirmed by the fact that -- that the trading euro is trading lower than the 1%, the first of time we seen that in a month, telling you that some investors and traders are on the sidelines. a little bit of a haven bid there. in terms of what is moving for the s&p 500, basically flat at this point.
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anadarko petroleum the best performer for the s&p 500, up 11.4% on its bidding war between occidental petroleum and chevron. occidental one of the worst performers for the s&p, down 3.4% after it put up its bid for anadarko. as for norfolk southern and at&t, and earnings winner and an earnings loser. the railroad company doing well, beating first quarter estimates and operating margins. at&t a disappointing quarter, down 3.3%. they lost revenue and wireless subscribers. the big question is, with stocks at record highs, what is next? let's take a look at a chart we did analyze with kevin kelly yesterday with a very clear message. in blue, the s&p 500. in white, the vix. we see last year, during the
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first spike in volatility, the vix went sky high and the s&p 500 down to about 2600. then they diverge. we see a reconnection. now we have this big divergence. kevin kelly of benchmark investments says it is clear we will see a reconnection between the vix and the s&p 500. it is tough on timing when you could see sort of a capitulation to the downside, but definitely a chart to keep an eye on for a sign of volatility ahead. vonnie: thank you for that. we will be back to you shortly. still ahead, the legacy of sergio marchionne, fiat chrysler's charismatic leader. this is bloomberg. ♪
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♪ vonnie: live from new york, i'm vonnie quinn. guy: in london, i'm guy johnson.
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this is "bloomberg markets." let's turn our attention to the auto sector. since the death of sergio , our reporter's book -- good morning. hello. i think my memory goes to his words. i just got my book physically into my hands here as we speak. i was reading what he told us in one of the several interviews i had with him. he was essentially driven by one
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obsession, which was making a difference every single day. this obsession he carried on until the end, even if he was seriously sick, and he didn't tell anyone that. vonnie: right. you decided to write this book, having followed and reported on sergio marchionne for many years. he was definitely a bit of an enigmatic man. he didn't tell shareholders, for example, that he was sick. he was also absolutely dead set on making partnerships, and perhaps even a merger, maybe to the extent of not listening to the advice of the other side of things, correct? tommaso: in terms of his illness, as i write in my book, no one outside his family knew he was sick. this included the chairman of
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discoveredssentially that he was never going to come back at work once he went for the second time at the zurich hospital. to get intollowed the intensive care unit for privacy reasons. the second time, he understood immediately that marchionne was never going to come back. on the other, marconi had one big regret. this was clearly the fact he didn't pursue until the end a merger with general motors. guy: i was going to ask, what did he leave on the table? what is there left to do for his successor? he created some pretty big companies. fiat chrysler is the one that stands out. he loved deals. he loved playing poker. i am wondering what is the last hand he could've played. the g.m. deal looks like a deal
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too far. no one was interested, so what was left? tommaso: this is true, and that is what warren buffett said in 2015 as marchionne was considering going hostile. priced a hostile bid for general motors, but conditions were not there for such an attack. clearly the auto industry is rapidly changing. there is this disruption coming from technology. m&a is going to come. fiat chrysler has never been so strong, but is it strong enough to survive the tech disruption? vonnie: you say you may have been obsessed from time to time with sergio marchionne as a leader.
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what makes him different from other leaders? right wordthink the to use is obsession. he was obsessed by his job and the fact that he had to fix first fiat, and then fiat chrysler, before leaving. he told me in a long interview did not before -- that the night before his last detroit auto show, he wanted to leave fiat chrysler strong enough to survive. guy: looking forward to reading the book. chieferg's milan bureau on sergio marchionne. this is bloomberg. ♪
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♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." vonnie: we are getting oil
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inventories and just a moment. as we know, oil has been rising. at crude right now is $76.17, down $0.13. we got a build of 5.4 8 million barrels, a massive build. the market was looking it hundred thousand barrels of a bid and got 4.5 8 million. distillate saw a drawdown. --oline into stories gasoline inventories drawdown 2.1 3 million barrels. let's take a quick look of what that is doing to oil. time now for muni moment. with a rally and credit, all eyes are now on lower rated
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credit, particularly illinois. the market has seem to turn or positive on the state, with aaalds trading above munis. as you heard, the market appears to be a little more positive on illinois. you have a great report highlighting some of the concerns, particularly with some structural issues within the budget. what is the biggest concern when it comes to illinois? guest: anchor: these -- guest: i would say it is the structural budget gap for 2019 they need to address. the 2020 and acted budget is going to be a big question mark for us in how we change the rating going forward. taylor: one of the biggest problems has been the pension issue. what do you need to see from the state to become a little more positive as it relates to pensions? eric: we are on a negative
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outlook, so it is a long way from now. the first thing illinois needs fund theirally fully contribution on an actuarial basis. , with: what about illinois, a lot of people talked about the cap self deduction, and people fleeing high tax states for better opportunities elsewhere to lower the tax burden. are you seeing evidence of that yet in illinois? eric: we've heard the same anecdotal stories, but it is way too early to make any real determinations about that. for illinois, which has chicago, the economic epicenter of the midwest -- taylor: is that really the positive for illinois, or are there things that make you more excited about the credit? eric: chicago is pretty important, and the state does have a lot of revenue flex ability in terms of its legal abilities and growth prospects. it has potential. it is a question of whether they
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can utilize that on the expenditure side. taylor: you mentioned you have a negative outlook. what can we look forward to in terms of a change on that rating , when it would get a downgrade given it's on negative outlook, if there is downgrade at all? state toexpect the adopt the 2020 budget for the fiscal year that starts july 1, so we anticipate this summer making decisions on the ra ting. taylor: the progressive income tax was really highlighted in the budget. for the 2020 election, how does that affect your view on the state? if.for us: it is a big it has to get both through the house and the senate, and then voters. it wouldn't be effective at the earliest in january 22 anyone. taylor: thank you january 2021.
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in january 2021. taylor: thank you. that was eric kim with fitch ratings. guy: let's turn back to the markets here in europe. real divergence between the ftse 100 and the dax, despite disappointing data from germany out earlier on. stocks really driving the dax's performance right now. wirecard is up about 12.5% softbank looks to take a $1 billion stake in this business via convertible bond. that certainly is turning the story around for wirecard today. the other is in the tech space as well, sap, the tech giant out of germany rising by 11.23%. the numbers were really strong overnight, and the stock is absolutely flying on that. as a result, the dax is outperforming. the same cannot be said of the
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ftse 100, underperforming right now. we've seen what was doing well yesterday not doing well today. bp is trading down. shell is trading down. some of the industrial metal companies are trading down. rio tinto, anglo american, bhp trading off. it is a resources sector story for the london market, and a tech sector story driving the dax outperformance today. vonnie: we have our annual visit from one of our friends in studio now, coleman sex -- goldman sachs asset management releasing its survey. joining us for an exclusive interview is goldman's head of insurance mike steel. here.you for being more than oneing
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-- more than $13 billion in assets here. i was wondering what is different from last year. thehere is slowdown in global economy and the chinese economy. they feel we've made a major shift from the later part of the credit cycle to the last stage of the credit cycle. typically that means credit deteriorates and falls start to increase. a lot of anxiety about where we are in the business cycle. having said that, the industry is flushed with capital and is looking to put it to work, so we don't see anybody stepping back from the markets. vonnie: many of them are decreasing hedge fund exposures, so where are they putting that money to use in the alternative space that they are taking away from hedge funds? guest: hedge funds have always been a fairly small portion of asset allocation. over the last several years,
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that has been continuing to come down. i think that trend will continue. while performance has been week inconsistent, a lot of that is now going into private equity. reporter: your survey came after a record year of fundraising. why do insurers want to flush cash into this asset class, and are they worried about overcrowding? insurers are optimistic about where we will be for returns this year, especially in terms of private equity. more and more companies are private and are staying private, and getting larger in the private markets. that requires a lot of debt and equity to support that capitalization, though the industry is continuing to invest . we don't think the space is overcrowded. the other thing i will say is there is a movement from public equity into private equity, as we saw in q4 of last year. public markets can be quite
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volatile, and the public markets tend to be more disciplined -- the private markets tend to be more disciplined or less volatile. sonali: people were really leaving stock markets, leaving public equities. what does that say about where they feel we are in this cycle? optimistic about where equity markets are going to end up, but we are seeing a shift out of public markets, public equity markets, into private equity markets. they are keeping the exposure, just changing the shape of it. guy: why are u.s. insurers behind on esg? [laughter] mike: that is a very good question. in our survey, we found the insurers really tak pay quite a bit of attention to esg. it is part of the investment. it is increasingly becoming part
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of the regulatory process. i think u.s. insurers are just a step behind, but we see that trend increasing. i think if you look at the annual reports of the public companies, increasingly you see esg and social matters being mentioned in the annual reports. that is being transitioned down to their policies. guy: i am curious as to how the regulators are impacting insurers in the states and here in europe, whether european insurers are going to have to run faster because of that revelatory requirement, and whether that is an advantage for u.s. insurance. differentlators in parts of the world are increasingly asking companies what their policies are, and increasingly asking them to provide different metrics for
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the way they are investing. i think the europeans are actually ahead of the u.s. industry at the moment. sonali: there is something you and your colleagues call the amazon effect in bond markets. what does that mean in terms of how insurers, and terms of liabilities, are shifting their debts in terms of bonds? mike: i think when we refer to the amazon effect, we are referring to the use of technology creating disruption for industries and companies. the insurance industry is front and center on these issues. positive, and the other, it is a negative. on the positive side, we see companies investing in their own technology they are using to improve their own operations, risk management, underwriting, and the way they reach out companies. those companies' operations are
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improving, their costs are coming down, and they are becoming more competitive, putting pressure on the rest of the industry. that is on the business side for the insurance companies. on the investing side, it is a much different story. where is disruption going to take place, and which industries? within those industries, which countries? i will give you an example. the commercial real estate industry, particularly the retail malls. we've seen over the last several years the movement from physical -- twog to eat shopping e-shopping. the investment which these insurers hold. so what's next? cycle ishe credit
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premature at this point. i am curious what they are doing -- is pretty at this point. i am curious what they are doing about that. are: in the u.s., they basically moving up in credit quality. they are moving from public credits to private markets, where the conditions are stronger in the private markets. in europe and asia, these companies are heavily invested in government bonds. yields in these government bonds are zero, if not negative, and these companies need return. they are coming into the u.s. corporate grade bond market, getting out of japanese bonds, bonds,and other european and into our corporate bond market. insurers good at predicting equity market performance? i am looking at what they expect total returns will be for the
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s&p 500 index this year. most of them are between 0% and 10%. if you any allies the returns we've had thus far, we end up with 68% return for the s&p this year. going to happen, but nevertheless it seems like they are behind the curve. are they behind the curve? is there a danger they have to play catch up with that in terms of some of their models? they have generally been very good indirection direction, not so much a magnitude. in 2012 they pretty good the equity markets would rise, and each and every year that has happened. this year they are still optimistic about the equity markets. they are forecasting on the debt markets -- they're forecasting on the debt markets hasn't been a strong. half of the time they've been right, have the time they've been wrong. this year, their view is that
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rates are going to remain basically where they are. one of the things we are seeing in the survey is many are thinking about extending the ration, moving further out the curve. we see that in all of the markets we surveyed. sonali: obviously your business of been a huge beneficiary these outflows since the financial crisis. do using this trend will continue, especially now that blackstone and blackrock are also in this business? mike: we see more capital coming into the industry. we see other private equity capital coming in. however, there is a huge squeeze on margins. i mentioned the use of technology to reduce operating costs. one of the operating costs is investment management and large-scale asset managers are basically able to access these markets at a lower cost, and have more access to these markets. we think we are going to
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continue to see the trend of outsourcing to continue in all parts of the world in all asset classes. vonnie: mike siegel, we will have to leave it there. mike siegel is the global head of insurance at goldman sachs. this is bloomberg. ♪
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♪ guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." guy: let's check in with the bloomberg first word news. here's kailey leinz. kailey: president trump making a new threat to send armed soldiers to the u.s./mexico mexicantweeting that soldiers recently pointed guns
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at american national guard "better, saying that it not happen again." theu.k. is set to toughen rules under which huawei operates in the country come about the government will stop short of an outright ban on the chinese telecom equipment maker. the trump administration has limitressuring allies to while way -- to limit huawei. the u.s. will stop issuing sanctions waivers to countries that buy oil from iran. here is the saudi oil minister. >> i don't see the need to do anything immediately. we will not leave our customers scrambling. i think we can balance all of those.
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it is not an easy job, but we will make sure the oil markets on a global level remain balanced. we will make sure that customers know which number to dial in all of that. kailey: global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. vonnie: thank you. pharmaceutical giant novartis is our stock of the hour, posting their biggest intraday gain in a year. emma chandra has more. emma: earnings-per-share came in higher than estimates, but they are focusing on new treatments, really going after new drugs that might treat cancer and perhaps more rare diseases. innovative medicine delivered a $0.10 sales rise for novartis.
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they addressed the pipeline for new drugs in an interview with bloomberg. >> we have 26 potential blockbusters in late stage development. in our industry, as you focus as a medicines company, you've got to make sure that your innovation and replace manpower is strong enough. that is the bet we make as a company. emma: that replacement power and the innovative business some even that was supported to help shares appreciate even further. novartis staying ahead of the pack, outperforming the bloomberg europe pharma index, but still trails swiss rival roche. guy: health care stocks in the u.s. has been pounded over the last few weeks. novartis thinks it can charge some pretty high prices. talk to me about the discrepancy between what is happening with the health care stocks in the states and what is going on with
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novartis. defend higheo did prices, especially when it comes to gene therapy because they are so innovative, that high prices are justified. he did talk about payment plans and making it easier for payments to be made, perhaps over years, or perhaps offering rebates if drugs don't work as well. he addressed medicare for all as well in the bloomberg interview, saying novartis' exposure to the u.s. market is one of the lowest in the industry. they are number one outside the u.s., and because of that, they are very used to navigating different pay systems. depending on how things may or may not change in the u.s., he seems to think novartis will be very well-positioned for that. vonnie: thank you. that is emma chandra with our stock of the hour, novartis. this is bloomberg. ♪
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♪ guy: from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is "bloomberg markets." bob.ng us at the cme is again in oile once prices. guest: it kept a little bit of the bid, reversing the selloff after the api yesterday. with the talk from the iea saying crude is well supplied, that doesn't really match necessarily what we saw just a few minutes ago. refinery utilization is up above 91%. as i've mentioned before on the show, that represents immediate demand. gasoline was a draw. again, demand at the pump. when you look at the statement by saudi arabia and juxtapose it over what is going up with u.s.
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rate counts, we are at the five-year average for inventories now, not above or below it. the surplus is gone. if demand creeps up, saudi arabia and russia might have a case do not necessarily extend production cuts, but pump out this price. vonnie: it is interesting the spread between wti and crude is narrowing as well. i want to ask you about the 10 -- 10ield come about to year yield, back to about 2.52%. in thepeople forget, 1990's the fed was much more hasve, and the last pivot given the idea that the fed is going to pivot with any little bit of news. look at what happened with german iso this morning and the 6%xx 600 still just under away from its all-time high. the rest of the globe not
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necessarily following the u.s. that should keep the fed at bay. that should keep yield across the curve. vonnie: bob come our thanks to you for your time today. that is bob i a chino -- that is past tradingf partners coming to us from the cme. coming up, positioned for late cycle and a weaker dollar. this is bloomberg. ♪
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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: as we approach the end of trading in europe, basically we are down, but not by much, and aggregates. the dax outperforming, doing really well today relative to its peer group because wirecard is potentially in play, or at least softbank is taking a decent stake in the company, it would billion dollar investment into the business. convertible,ng the and the s&p has some cracking numbers as well. that is why the dax is outperforming. london is underperforming. stocks of bp, which did really well yesterday,

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