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tv   Bloomberg Markets European Close  Bloomberg  May 23, 2019 11:00am-12:00pm EDT

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guy: 30 minutes left in the european trading day. from london, i'm guy johnson. vonnie: i'm vonnie quinn. this is the european close on bluebird markets. -- bluebird markets. guy: a big -- bloomberg markets." guy: look at oil. waking up to the story. rent crude is down -- brent is down. wti is down even more. the european equity markets are down by one point to 1%. oil stocks are a big factor. other areas, we see weakness in the auto sector. there is a trait narrative through this, but certainly, the oil space is feeling at. euro-dollar is trading down -- feeling at. euro-dollar is trading down. the --ed earlier about earlier about the ecb concerns
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about not getting this pointing in the right direction. the ecb had a single needle in its covered, inflation. the ecb is struggling to deliver on that. you also see weak data from germany on the manufacturing front specifically. there is this brent move that is capturing attention. vonnie: wti is trading out around 58.50. we had the markets open and saw a selloff on china trade wars escalating. then, the 10 year yield plunged to about an 18 month low. money is flowing into treasuries. we are blowed to 33 earlier on. the s&p 500 is off of its lows, but down 1%. several stocks are performing in an idiosyncratic way along with the stocks down because of china. one of those is al brown's who had a great -- l brands, who had a great quarter.
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15% increase in its stock price. aaa and bloom and brands are suffering a little bit. analysts are talking about african swine -- blumenthal brands are suffering a little bit. analysts are talking about african swine. that has that stock and related stocks down today. the dollar index is down off of its highs. guy: let's get more of what we see in these markets right now. crude is down, equities down, bonds are big, economic data is not looking to rosie out of the euro. our next guest joins us here in london. market this year, the basically assumed all of the big risks would work out. braggs it would be fine, the trade war wouldn't -- brexit be fine, the trade war
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wouldn't continue. all of these are the concerns now. i wonder if we go from the pendulum over here, i.e., a little too complacent. -- in in trouble of it danger of it tipping to the other direction? >> i do think yes. risks on viewed the pause. , thead brexit on extension fed on pause, and we never believed we would have a trade truce just after the year. more, when the pressure builds on the u.s. president as we are closer to that election, is when we thought they would potentially get something done. we didn't see the true escalation coming, no one did. we can't tell our clients these risks are not going to be present. son of -- some of them play off of each other. you see what the yield are doing. the pressure on the fed is certainly to cut at some point
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if the data continues to be soft , especially inflation. maybe they will do that. guy: in terms of where you see the biggest risks for investors. say i have a balanced portfolio, 6040 or something like that, bonds look -- 60/40, or something like that. where do you see the biggest missed pricing in all of this? >> i think the biggest missed pricing is in government bonds around the world. you are hitting new highs in terms of the potential of bond market and absolute terms as well. i think this continues to be an exceptional be difficult market to invest in. things we try to push our clients into our focus on growth at the medium-term. a balanced portfolio world, it is tough.
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we have a modest overweight to equities, because of all of the bad news about manufacturing and investment services -- investment, services are good, labor is good. earnings have been better than we thought. they will have a stellar year or two, but it will be ok -- won't have a stellar year or too, but it will be ok. vonnie: what do you do? money is flowing out of etf's right now. where does this go? david: probably back into active management and single stock selection. in of the things about this era we are in now where valuations fall and the assets are pretty high, we don't love large chunks of different parts of the equity market. we do love individual companies and themes. you can find this growth, even if the world grows slower. we can generate yield even if
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valuations are not at targets. inwe use all of the tools the toolbox, we can try to find participation in those themes while protecting clients on the --nside, using derivatives o derivatives. we do think things like hedge funds, arguably the purest form of active management, may come back into fashion as you deal with the jo bond yields and look for april folio stabilizer -- forbond yields and look a portfolio stabilizer. vonnie: you say themes. can you give us an example? david: technology is a broad theme that a lot of like. 5g, gene therapy, these kinds of things, we have specific strategies focusing on that. nexgen vehicles, a ton of the
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striving, electric vacation, the increasing digitization we see. those are key themes for us. health care so do we. it has underperformed -- health care, so do we. it has underperformed in some sectors. that is a buy opportunity. even though we are dealing in a world where people question china's growth, what we can't question is the future of the chinese middle class, future of the consumption story around there, and look, there is plenty of stories. if you look at brazil, indonesia, there are currencies at cheap levels. get a fairly good earnings outlook as well. guy: you can never watch enough business television. david will stick around. vonnie? vonnie: deutsche bank is heading
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historic close as its annual hit -- annual shareholder meeting shows further backdrop weakness. following the breakdown of takeover stocks of commerce bank. joining us now is our next guest from frankford. did anything get said in the agm that we were not anticipating? anything new? we know that they are going to have more cost cuts. this will be to the investment banks. many people were predicting this. the question mark remains. he did leave out the equities business, which many say is going to get deep cuts. what exactly is going to be tough for the investment banks and the timeframe of it? the share price didn't move off of the fact that they said they
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would cost more. many analysts and investors say there needs to be a massive overall investment bank. so time has to tell whether this will be enough, enough cost cuts to really boost the share price. which, clearly, shareholders here are not happy with. that was the sense everyone got sitting in the building behind me. let's talk about the chairman of the supervisory board. how much support does he have? he doesn't have a lot going into this meeting, guy. going into this meeting, shares hit another record low. ahead of the meeting, a great said thatnews scoop the qatari royal family and a lot of these firms want to see him leave. they don't want to see him fulfill his term into 2022. even the ecb, regulators said the bank would be better off without him. that's not something you see every day, the ecb getting involved.
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he has seen three management changes, four strategic overhauls, and the stock has his tenure.% in shareholders were very frustrated at this meeting. some of them are talking about the fact that deutsche bank is cheaper than buying a pack of cigarettes. another one recited a poem to get his frustrations off of his chest. people are frustrated with how this company is run. ,ob diamond recently said it what is on people's mind, this is a bank bill for traders, by traders. the investment bank, which the chairman has had hoped for, to really have it be a rival to wall street, it is just too costly in this environment. vonnie: we will leave it there. let's chicken in on the bloomberg first word news. -- check in on the bloomberg first word news. american known as the
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afghanistan. john walker has been freed from a federal prison in indiana. he received a sentence after pleading guilty to helping the taliban and got out a few years early because of good behavior. the pentagon will brief the white house on options to deploy up to 5000 troops to the middle east. u.s. officials say the deployment will be for defensive purposes. the u.s. has already sent an aircraft carrier group and bombers to the region because of tensions with iran. in tokyo, carlos ghosn's fight to prove his innocence has moved to the courtroom. the former nissan chairman has appeared at a pretrial hearing today, and the allegations range from falsifying financial records and redirecting company money into his own account. ghosn's trial is expected to begin next year. global news, 24 hours a day on air and on tictoc on twitter, than 2700 more journalists and analysts in more than 120 countries. vonnie: courtney, thank you. coming up, we get an insight on france's economy from france's
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france's ambassador for investment. this is bloomberg. ♪ ♪
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vonnie: from new york, i'm vonnie quinn. guy: and in london, i'm guy johnson. this is the european close. a tough day for risk assets. let's find out what is going on. abigail: you are absolutely right. it's a tough day for risk assets. take a look at these stock indexes. the kleins on the day. in the u.s., the s&p 500 and nasdaq are down 1.3% or more. we are on pace for the worst value of the year. shenzhen,k at the
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down 1.8% in the asian session. we go to the bloomberg and we see it is not necessarily new. at least in asia and em. this goes back to april. what we are looking at, in pink and blue, those are the asian and em markets. they started to turn down in april, ahead of the s&p 500. some of the other indexes are all-time -- putting up highs. em is down 9.5% over that time period. in the u.s. today, technology, let's look at the big losers. apple is down 17%, nearly in a bear market from the april peak. mike or soft is down sharply and , amazon -- microsoft is down sharply, and amazon. investors are now selling. speaking of selling, here's a big slide on the day. a risk assets being sold off, down three days in a row. investors are getting out of
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this less liquid commodity. that is weighing on the energy sector. we take a look at some of those movers. this is the worst sector for s&p 500 -- the s&p 500. the big energy names, a big decline for these cap stocks. investors are getting out of risk assets. vonnie: thank you. the selloff is worsening. mobile trade tensions are weighing around -- weighing on markets around the world. cal.ing us now is pas today is an individual day that we see a pretty major selloff today, but more generally, how has the dialogue been going between france and the european union and counterparts for trade and for bringing investment into france? >> one of your friends from the start was up in trade, and not reaching the tariffs. we do this because right now, the attractiveness of funds have
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never been as good as it has been for the last two decades. fact that france is not back to the top five most attractive countries, this is really the success of the reforms agenda, but also the fact that we rediscover the deep asset france has to offer to investors. the u.s. are the best investors -- is the best investor in france and they represent 18% of all investment. we are pleased to go back and take the lead on this one. vonnie: that is well and good, and congratulations, but i can't help but wonder if companies are talking to you about the yellow vests protests, the strikes, about how there seems to be a lot of worker concern and why that would not stop them from expanding or moving into france. pascal: [indiscernible] i think that make sense. he has been a strong movements that we have to take care of.
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despiteirst quarter, [indiscernible] not changing the agenda, we have 23% to invest in france, peopled by a study or who are knocking on doors saying they want to take full benefits of the infrastructure networks. the talent we are offering requires more and more talent. between a paradox having the yellow vests on the front cover, and in the meantime, investors are investing deeply in france. guy: ambassador, good morning. allowsce invests and huawei to build infrastructure in france, if france continues to allow chinese companies to invest into france, do you think the environment, the
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relationship with the united states will suffer? >> if you talk about what president macron has been stating last week, which was the week,g tech event -- last at the leading tech event, he said we are not banning huawei for the french area in the meantime, we are going to be vigilance. -- vigilant. meantime, we recognize we need to continue a dialogue both with chinese investors and any investors. we form a country as all of europe, that france is the best entry for the continent. demonstrating, one more time, with the private sector, that france is attractive. in the meantime, france is the guest investor in the u.s.. [indiscernible] and we intend to continue to do so.
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the micro decisions of investment today is [indiscernible] we will continue to monitor the situations because it is critical. guy: if the situation with china and the united states gets more and more difficult, is that good news for europe. presumably, the united states is going to need allies in this trade fight. is france one of those allies, and is france going to pick sides -- going to be forced to pick sides? >> we leave operations to discuss and support that, -- lead operations to discuss and support that, but we have an alliance with the us. we don't see china as a [indiscernible] we need to find a new balance going forward. that is what we are demonstrating time after time. president macron has been supporting both the dialogue, being vigilant, but also the concept that we won't win unless
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we get back to protectionism, populism, which is why we are so adamant about continuing these forums, these dialogues, and ensuring that the chinese can come to europe, the same way we need to go to there and serve the markets. that is what we are after. vonnie: france can negotiate any trade agreement on its own. how much is being part of the eu harming or -- helping or how purring -- helping or arming? -- harming? >> when you have these trade agreements and don't hike up tariffs too much, you create wealth, and that is the fundamental belief that we have. that our view is maybe different than the american administration, which is really about trying to encouraged trade agreements and this free flux of goods and people. wet's why we basically -- are celebrating the one-year
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anniversary of the gdpr. we believe we should reframe the way we go after business. the 21sto reinvent century. it is only through dialogue that we will be able to do that. vonnie: ambassador, thank you. that is pascal cagni, french abbasid or -- french ambassador for investments. guy: the cac is trading down by 1.8 percent. it is one of the worst performers in the european space today. the reason for that is, lots of luxury stocks are exposed to china. on the year, the -- is up by over 11%. one of the best-performing markets in europe this year, your today. today is a tough day. the same with the dax, the trade issue is front and center. this is bloomberg. ♪
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vonnie: it's time for the latest bloomberg business flash, a look at some of the biggest stories in the news. david tepper's following other big names who have quit the hedge fund industry to manage their own capital. bloomberg learned he plans to return money to investors. portion of the $13 billion belongs to the tempora family. bloomberg is learning that some bio firms are balking at the high price. and the slow pace of the deal. they are seeking a minimum value of up to $33 billion for universal music. the company held talks with china's tencent, but the u.s.-china -- u.s.-china trade war could put any an and to that -- an end to that.
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two hours into the open, another day of selling. , almost500 is down 1.2% all components of the dow are lower, just coca-cola holding onto fractional gains, but the dow itself is down 1.3%. the vix is slightly elevated, still below 17. that is your u.s. markets. guy: a quick look at one particular asset in the foreign-exchange markets. this is euro-dollar, bouncing back. earlier on, it was down to a two year low. it had a reasonably impressive bounce off of that low earlier. we are now trading 11.65. -- 1.1165. pay attention to this little bounce back. ♪
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european equities just obsession lows. a top session. the oslo market one of the big underperformers. it is exposed to oil. elsewhere, i have to wonder whether this is the market getting ready for a long weekend. do you want to carry positions over this weekend? there's a lot going on in the world. do you want to have that risk on your books? kind of feels like there might be a little bit about that story today in the market. the ftse 100 is down by 1.41%. the dax down 1.71%. the cac 40 down. the heavyweight oil stocks are down. brent and wti having a tough time. the worst day this year. the dax is down on autos which are the second worst performing sector. at the top is health care.
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it is a little bit of an out performer. a look at where we are seeing the safety today. health care, food and beverage, personal households. these are the safe sectors that are doing better. a look at the downside tells the story. oil stocks are down. down 3.25%. autos down nearly 3%. tech is trading lower. basic resources, that is a china related sector and it is suffering. there is a trade narrative here. i still wonder whether it is long weekend we are watching. a look at individual names. vw down 1.43%. also worth remembering daimler has gone dividend today. bp is trading down. one of those majors worth paying attention to. kering, big exposure into the
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chinese market. lvmhnot want to pick because i would have to talk about rihanna's latest outfits. u.s., weere in the have the major asset cap's all showing signs of what is going on in equities. the 10 year yield down to 2.33%. it got a little lower. a lot of money flowing into treasuries as it comes out of equities. crude oil is seeing a drop of more than 5%. 58.32. that is change from the last couple of days. the dollar index has just gone below 98. quite strong today. i want to point out stocks are moving lower. let's move to our next board. you see some that are moving. contraband started trading. we will be having interview with is the yield. down 7%.
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that is an ipo that bears watching. best buy was higher earlier. a great quarter by trading down 4.4%. slight on theng trade headlines. brands and chipotle reacting to the idea from the street that african swine flu could be more of a problem for these chain restaurants than they are looking at. it could be on gadget could go on for longer. -- it could go on for longer. tinoarent company of cap has been suspended. we are waiting to see what that means. guy: we could get an update on that. we were ringiner pricing. let's say the number tomorrow morning could look different than it does today. let's get a take on what is
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happening more broadly with these markets. bloomberg's in your marker -- bloomberg senior market editor mike reagan joins us. i wonder managers are saying i do not want to carry risk over the weekend. there are a lot of things that could potentially happen, as a result of which i will take some risk of the portfolio. are we seeing that today? mike: i would not rule that out. the long weekend is coming up in the u.s. and the rhetoric from the chinese state media, there is definitely a shift in tone that is spooking investors to some degree. the original commentary when the trade tensions escalated earlier was cryptic. last night's commentary that we are reading was very want -- very blunt, accusing the u.s. of ignoring international norms, not going through the wto. it seems like the tension is getting ratcheted up on the china side.
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quiet,they had been more a little more introspective. the market is trying to figure out where donald trump will blink in this issue and when the rhetoric gets ratcheted up on the other side, i think it makes it harder to imagine from blinking in the near term, even with little bit more volatility in the market. vonnie: at some point, we were talking about this yesterday, doesn't it look like markets will be the deciding factor? when will that be? michael: everyone is trying to make that guess. i have heard people mention the 10% drop in the market would light a fire under president trump. i think it is all guesswork. i do not think anyone knows. strategists,morgan who were closely followed, set
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of 4% drop in the s&p would be enough to have trump back off. we are more than 4% off the record at the end of april. we will see. i think it is a lot of guesswork. they assume that at some point the volatility will be enough to cause the president to back down. i think it is a risky thing to try to figure out. one of the things that struck me over the last couple days has been the fact that the bottom-up analysis for individual companies on what the trade story might mean is starting to get a little bit more detailed. are we starting to get an understanding of what tesla being cut off from the chinese market would mean, what apple being cut off would mean? is that granularity what could be the catalyst for this move to the downside? shifting.veryone is
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everyone on wall street did a series of scenario analysis. what would happen if we go to a full-blown trade war where the next batch of tariffs is introduced? that scenario has gone from being a long shot risk to being more of a baseline case. there's a story on the terminal today talking about how a full-blown trade war is now creeping in to become the baseline case for a lot of people. it is lighting a fire under those bottom-up analysts to dig in and figure it out. we will see a lot more research like that coming out on a stock by stock basis. vonnie: seems like it is getting harder and harder for everybody to hold their opinions. michael regan, thank you. hiatus, let brief us bring back david stubbs, jpmorgan private bank chief
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investment strategist. i was just mentioning jpmorgan and their analysis. can we rely on this trump put? if the market gets back, he will back off? david: i think, absolutely, there is a put in the market from two sources, what is the fed, one is trump. there is the fed caller and the trump caller. things get too good, trump will be more bellicose, things get bad, trump will back off. it is not just the amount of the decline, it is the nature. if you look at your bloomberg terminals, it is fairly orderly. this is not a disorderly decline. this is a fairly orderly move. you not seeing anything like the kind of spikes we saw in late december, which is usually the sign of a bottom.
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for me it is not about the amount but the speed and also how the market is trading, if there is real signs of a panic, i think that is the kind of things which makes all policymakers think twice. vonnie: to cost your desk ramp-up on days like today? clients willing to wait things like this out? david: anyone in the finance industry has a busier day when things are going badly. people, even if they are not concerned, are interested to know why. what does it mean for my portfolio? it is a busy day in the office. private clients do tend to have an aspect of their investment strategy which we are able to focus on the long-term. you are able to lock away your capital should you wish to do so and used vehicles designed for long-run investment. i see portfolios where there is too much -- people holding on to
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cash where they know they will not need it. we explain the importance of setting a goal for your money. some of it you need now, the rescue don't. you can also be aggressive with risk and return. guy: thanks for sticking around this afternoon. david stubbs, jpmorgan private bank chief strategist. vonnie: let's check in on first word news. courtney: china is making its position clear. it has no intention of making concessions to the u.s. the ministry of commerce says the u.s. unilaterally escalated tensions. u.s. formes the escalating the trade war by imposing tariffs. the u.s. blames china for backing out on parts of the deal which were already settled. there is a fresh sign the u.s. labor market is staying strong. filing for first-time unemployment benefits fell to a five-week low.
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jobless claims fell to 211,000 last week. the unemployment rate is at the lowest in half a century. in missouri, residents are cleaning up after tornadoes ripped through the state, killing three people, injuring nine, and causing extensive damage. twisters separate across the great plains and the midwest, along with violent thunderstorms that have led to widespread flooding. the severe weather is expected to continue today as the storm system moves east. in india, prime minister modi has surged to a majority on his own in the countries six-week long election. his ruling party is set to win more than 272 seats in parliament needed to form a government. that is seen as an endorsement of modi's hardline internationalism and populist economic policies. 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'm courtney donohoe. this is bloomberg. guy: thank you for much.
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let's check where european markets have settled on the equity front. a small movement during the auction process. we are trading at session lows at the end of the day. interesting to see the euro picking up in the dollar turning tail. equity markets finishing softer. the ftse 100 down 1.5%. miners down, auto sector down, oil down. oil price under pressure. if you want to carry on with the market coverage and you are getting in the car after a hard day at the office, you can tune into the cable show at the top of the hour. jonathan ferro is in new york, i will be joining him in london. the cable show live on dab digital radio in london and on all of your bloomberg devices. ♪
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guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is european close on bloomberg markets. the new york stock exchange is making a bid for more biotech ipos. techsve traditionally -- have traditionally listed on the nasdaq because of its cheaper fees. best buy is transitioning to a new ceo. the retailer posted comparable sales that beat estimates and reiterated guidance for the full year. the ceo is handing over the reins to the finance chief. he is given credit for bringing best buy back from the brink of disaster. that is your latest bloomberg business flash. off the newest retail spin is all about denim.
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leeds like wrangler and have separated to make a public trading debut. bloomberg spoke to the new ceo about the company's expansion plans in china. lee and theler and ability for us to focus on these businesses. they have not been the focus in the previous company, and now as we spin off in this publicly traded company, we have the ability to focus on these brands globally and make sure we are making the appropriate amount of investment in the brand and our strategy going forward for 17,000 global associates. you doing with the supply chain concerns with the latest terrifies going on and the latest headlines that we could see consumers getting hit with these tariffs? scott: we are in a big advantage position. we start with the 30% in the western hemisphere, which is
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helpful. the second point is we had moved manufacturing out of china so it is less than 2%. most of that is in accessories. we feel good about where we are right now. taylor: when did you move that manufacturing out of china? was it in anticipation of some of the tariffs and changes we have seen within the global supply chain? where did you move manufacturing? was it other parts of asia? scott: we moved it a long time ago. it was not in anticipation of the current situation. it is mostly in bangladesh. taylor: where our future growth opportunities. there are comments the u.s. market could be saturated. do you plan to grow overseas in the asia-pacific region? where are you looking for future growth? that isne of the things important to us is becoming a global brand as we globalize these businesses. wrangler is not sold in china.
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in january of 2020 we are introducing wrangler to the chinese market because there is an appetite from that global consumer for the wrangler, old cowboy western authentic brand. that is one example of where we will grow our business. taylor: you do plan to grow in china. it is interesting given the environment we are in. have you gotten any pushback or any concerns about those plans in china? any pushback from china as well about your plans to expand an american brand in their domestic market? scott: right now we do not. we have the leading denim brand in china with lee. it is a lifestyle brand. a strong consumer base. they are already tied to our brands and there is a significant appetite for wrangler because the global consumer now shops all around the globe and once to bring that product back into the
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marketplace. they also want to have that product available in the marketplace. right now we are not seeing any pushback of the brands we have andarket and our plans strategies we have for introducing wrangler in china. ontoor ceo scott baxter speaking exclusively to taylor riggs. vonnie: kontoor is now down a percent. our stock of the hour is the best performance in the s&p 500. kailey leinz has the details. brands- kailey: l staging quite a recovery. that sentiment was weak going into the sprint. the fact that the company surprise to the upside and turned a profit of $.14. , sales came in at 0 -- comp sales did not grow but were
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expected to fall. they raise the lower end of their guidance. this comes at a time we saw a lot of retailers cut their guidance. what is driving growth is bath and body work. those comp sales were up significantly higher than expectations. interestingly, bath and body works are not having to do as much discounting. they have had to do that and it has compressed margins. they are at just over 35%. not for bed and bath -- bath and body works. those margins are 18%, much higher than the area secret. -- then victoria's secret. guy: can that carry the company? kailey: i have a chart showing bath and body works is doing well but victoria's secret is not. it has been a consistent drag and analyst taking note. jeffrey says to sell to the share strength, given how poorly
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victoria's secret has been performing, they say victoria's secret is on the verge of collapse and bed bath will not perform like this forever. vonnie: our thanks to bloomberg's kailey leinz. coming up, it is our global battle of the charts. this is bloomberg.
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vonnie: time for our global battle of the charts. you can see the charts on the bloomberg. just run the function gtv . kicking things off is alix steel. alix: both of these charts will be on my show but i cannot pick which one i like better. explain --ll try to the majority of the build is coming to china from the u.s. and this chart shows the price impact. the white line is outsold -- is the china diesel prices. the glut of product in china has the highest level since 2011 and that means the prices for those
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diesel products are quite low. they have only rallied 5% after oil had its monster rally at the beginning of the year. it is a similar story when it comes to wti, the yellow line. stockpiles had a huge build in that oil price underperformed the brand price. the brand price -- the brent price holding up relatively well. the oil that brent tracks is tight. becoming a regional global story, asian the u.s. oversaw live. brent and other markets tight. they wind down the stocks, they wind down supply, they will be in the market buying oil. vonnie: i cannot wait to see commodities edge later on. that was fabulous. what you have for us? guy: i think alix steel just admitted this was a great chart so that is a good starting point. i will talk about the periodic
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table and the 17 rare earth metals that could potentially become important from a geopolitical point of view. at the beginning of this week, xi jinping visited a rare earth magnet plant, sending a signal to the rest of the world that in this trade war these rare earths could become a critical part of the narrative. we could see restrictions of china exporting them. it is far away a big exporter of these metals to the rest of the world. this is stuff that goes into batteries, lithium. this is stuff that is important for the u.s. military. say the etf tracking this, they say it is had a mixed performance. take a look at the price spike we have seen, one of the biggest since 2012. in 2010 the chinese went off and the japanese restricted some of the supplies in japan.
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could we be about to see prices spiking significantly higher from the highway saw in 2011, 2012. keep an eye on this. this is one of the stories china is clearly focusing on. vonnie: i think you said it yourself. alix steel did part of the judging for me. i feel like alix steel might be in agree with me if i say guy johnson. alix: i said both charts were good. i did not say yours was better. vonnie: you will get another chance to get through the alix charts in "commodities edge." thank you. coming up, "balance of power" with david westin. the democratic presidential candidate joins the program. this is bloomberg. ♪\
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♪ david: from bloomberg world headquarters in new york, i'm david westin. welcome to "balance of power,"
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where the world of politics meets the world of business. on the brief today, from washington, anna edgerton on what president trump stand up democrats means for business, shawn donnan on the lines between washington and beijing resources fors on a possible conflict with iran. president trump and nancy pelosi squaring off at one another. what will not get done that otherwise would have gotten done. anna: it keeps getting more dramatic. we just heard from nancy pelosi who slammed the president for throwing a temper tantrum. like you said, there are important things that need to get done. infrastructure and prescription drugs are things people talk about that we could accomplish on a bipartisan asus. there are some things that have to get done, such as coming up with a plan to raise budget caps
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and lit the debt ceiling.

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