tv Bloomberg Markets European Open Bloomberg August 14, 2019 2:30am-4:00am EDT
the economy shrinks in the second quarter. in september, china is sticking to trade talks after untildelays some tariffs the christmas period. airport injunction, hong kong police at the city transport hub after a chaotic night when protesters were beat and detained suspected infiltrators. yen,a look at the japanese just to illustrate what happened yesterday when donald trump tweeted that maybe some goods do not need tariffs on september 1. it would help the christmas period. as a result, you see the safe haven bid come off the japanese
yen pretty substantially. we were down almost at 1.05 even, now you can buy more than 106 for your dollar. we have futures turning more positive in europe. u.s. futures are down for the most part, but nasdaq futures are rising. that support has shown through index futures. -- that support has shown through dax futures. hong kong police have posted an injunction notice saying protesters will be leaving the premises or restrained. this followed a night of chaotic protests where protesters eat and detained -- protesters beat and detained suspects. this injunction, this posting, tell us what it means for the hongs in light of kong way of doing things. >> this is an important document
because protesters as well as authorities and police are touting the need for the rule of law. hong kong is a british common law system. one country, two systems. this document, we had the posting and now journalists are getting photographs of it. 23 page document issued by the court late last night, but it took a long time to be posted because it had to be sealed on delivery. what this means is this gives airport authorities the right to restrain persons from unlawfully and willfully obstructing or interfering with the use of the airport. that is the problem yesterday and to a lesser degree the day before. this is the sixth day in a row that protesters have come to the
airport. the last couple of days they have disrupted operations at the airport. yesterday there was a surge of thousands of protesters going out of the designated protest to thed upstairs departure lounge, and physically preventing passengers from boarding planes. that has forced the cancellation of many flights. this 23 page document changes the game for authorities. if they cut this off are saying protesters still here. they can say it is over for this location. they are also putting steel barriers all around the entrances. if you want to calm to the hong kong airport, bring your ticket and passport. i have to have my journalist card or we will not get in.
they are finally putting security necessary. flights per day, asia's biggest international transport hub. matt: absolutely key for the economy there and the entire region. stephen engel at the hong kong airport. i want to get first word news from london. has delayed trump chinese tariffs until december. the levies on big-ticket items like smart phones and children's toys will not come into effect until the end of the year. output hasustrial fallen to a low. the world's second-largest economy is
struggling to stabilize. trade tensions are adding to the case as the trade war rolls on. the italian prime minister has been called before the senate on august 20 two respond to the political chaos. the session could lead to a confidence vote. there are other options including the prime minister's resignation. negative yields in the u.s. would not be a big deal, according to alan greenspan. he said he would not be surprised by the move. facebook has been paying hundreds of contractors to transcribe audio clips from users. it has rattled the employees. where thenot told recordings come from, only to transcribe it.
facebook says it will no longer do so. emerging markets in argentina had the largest daily drop since the 2008 financial crisis. argentine sovereign in corporate $12 billion of value on monday. global news, 24 hours a day on air and at tic-toc on twitter, powered by 2700 journalists and analysts in more than 120 countries. matt: thank you. shrank in thenomy three months to june, trade tensions between the u.s. and china could have weighed on its export heavy manufacturing sector. the pressure on politicians here to loosen the fiscal purse strings. germany's output fell 0.1% following a 0.4% expansion in q1.
it has gonews how from being a powerhouse to one of its main laggards. joining us to discuss is daniel schaefer, bureau chief, bloomberg editorial. what i think is interesting is on till now berlin has refused to knowledge any economic crisis . we are starting to see crack's -- cracks in that mantra. daniel: yes, that is the case. in asmbers today came expected, but they have shown the export sectors, germany's crucial element of the german economy has suffered in the second quarter, and that is piling on more pressure on the german government to do of a fiscal terms stimulus. only yesterday evening angela hintedhas said she has
she might be open for some kind depending onmulus what will happen in the third quarter. where do germans need to see spending? here in berlin, we are hearing about not enough school places, not enough broadband coverage. anybody who drives of the autobahn notices it is a giant construction site with nobody working. where could spending be used? daniel: people have been talking about infrastructure, which obviously is not as in good of a shape in germany as it used to be. the thing about infrastructure is that it will take a while for
this to have an impact on the economy. if you spend on back, it could take too long to have an effect on the economy that might be heading for recession in the third quarter. byre are also calls politicians for tax cuts on the corporate tax rate. we likely to see anything on either one of those issues? and how strong is this coalition in order to put through any infrastructure packages if it wanted to. ? the german government at is heading for regional elections, and there has been talk about whether the government could control the
path toward the end of the year. i do not see the government being able to get its act of actuallyterms coming out with a big infrastructure program. that germanyething has done a lot in the past. they have not come out with big fiscal stimulus packages. even 10 years ago after the financial crisis, the german stimulus package of 50 billion euros was modest compared to what other countries did. matt: germans do not typically love to spend money. daniel schaefer, bureau chief, bloomberg editorial thank you for joining us. delays some u.s. chinese products
until mid december we are asking on the mliv blog how far can stocks rise on the tariff delay? we are seeing u.s. futures in the red. more on this next. bloomberg radio is live on your mobile device anywhere in the world. if you are in the city you can listen on dab digital radio. this is bloomberg. ♪
markets: european open." we are about 15 minutes from the start of cash trading, and we are seeing green arrows here even after the gains of 1% yesterday in europe. more than that in the u.s. we are seeing market's take a more risk on footing. let's get the bloomberg business flash with olivia hows in london. olivia: cbs has agreed to merge with viacom and a $12 billion transaction. the media giants split in 2006. ofadds them to the parent hair mount pictures and nickelodeon. it will be called the viacom-cbs. the federal trade commission is looking into allegations of the e-commerce site punishing
merchants with lower prices elsewhere. of atc stop short formal probe in amazon. says theyrican group will allow the better parts of the business to grow, and help bring down debt. we spoke to the companies chief executive. >> on a vertical integration restructuring and that model is not sustainable going forward. at the operational management should be underlying businesses and we must act as ap are shareholder. -- we must act as a peer shareholder. matt: president trump has delayed some of the new china tariffs he wanted to put on september. farm goods, clothes are on the
list, but levies on big ticket items such as smart phones and children toys as well as bibles will not come until the end of the year in order to allow the christmas shopping season to remain under way. let's get to markets with jan-patrick barnert, equities reporter, bloomberg editorial -- with mark cranfield, mliv strategist, bloomberg editorial. the olive branch has powered markets. the chinese data was a stumble in point, but it looks like we are getting back to another day of risk on action. what do you see? mark: it has been a decent day across asia. wall street carried on. we have a report china plans to ahead and meet the trade
representatives in washington in september even though there is nothing firm on the table to discuss. morehas also given markets of a push this afternoon in asia. a bit of optimism kicking around, but some must be related to the positioning that is skewed towards defensive positions. some of the short-term exposure they had is helping to lift the market. volumes are not great, an average day so we cannot read too much into that. it is a reason for people to push the market further for a few days. the underlying china data today was not good, some of the weakest factory orders we have seen for more than a decade. retail sales also week. there is underlying damage done for the long-term because of the additional tariffs this year still working their
way through. the german gdp numbers are a sign of that as well. has gonea lot that wrong, and it does not deviate much from what we have seen. growth is slow. people are not too optimistic. few good days,a but it will not go further than that. matt: the mliv question of the far can global stocks advance with the pushback of trade tariffs to december? how much can this help in terms of equity indexes? the feedback we have had so far in the case of the s&p 500 we could see yet pushback area. the 3100 if there are no more negative tweets from trump for the next
few days. there is a little momentum to take us back up a few hundred points. are quite a, there few fund managers who have started holidays. it could drift higher just on low volume with nobody there to push it the other way. there is a chance for a rally that would probably spread to european and asian markets as well. i do not think people are it too excited with what they heard the last couple days, and the chinese are adding caution, saying they are not optimistic september will bring anything with negotiations. matt: thank you for joining us, mark cranfield, mliv strategist, bloomberg editorial out of singapore. you can join on the question today, how far can talks rise? reach out to us and the mliv team. we are minutes away from the
big news for the shareholders. matt: you can get stock stories from our equities team on your bloomberg terminal. you can also get first word news using the bloomberg market app. huge are pointing a little higher. mixed trade is the best way to describe this. ftse futures are gaining even after the gains we saw yesterday and around the world. you could see a slightly risk on session. this is bloomberg. ♪
matt: we are a minute away from the opening of cash equities trading across europe and the u.k. let's go quarter for a look at the market. close up nearly zero point 5% this morning, a tug-of-war in the asian session. a reprieve from the trade war. but aboveit softer $60 a barrel. donald trump pushing tariffs to december is good news for oil. the yen a little higher, dollar-yen had its biggest move since january 2017, and the 10
-6.2%n the german bund we could see dax futures softer, a contraction of 0.1%. ftse futures are higher. be a little bit of a risk on day given the trade news. economic data around the world could impact markets. we have the european market opening, the ftse 100 to the upside more than 0.1%. flat.toxx 50 relatively we need to see what the dax opens given angela merkel speaking yesterday and hinting they could be ready for fiscal stimulus. the netherlands opening to the upside, 0.2%. france relatively unchanged. in individual sectors a bit of a
mixed richer especially with financials. health care in the green. masuda goals leading the way -- pharmaceuticals leading the way. i want to see how the supply chain of apple looks and how luxury may look given the airport in hong kong is open. and what is going on in hong kong might be a risk on day for them. matt: if you want to see the supply chain of apple, i will pull it up here. you the appleshow supply chain. it is a fascinating function especially for this company to look at on the bloomberg because you can see everybody that supplies apple with parts. you seek want
here are all of apple's customers, verizon, at&t. to look at the one day price change so you can this announcement on trade has done to the price. mostly green. splc is a great way to look at the supply chain for apple. i can show you the markets right now in terms of the stoxx 600. expecting mixed trade this morning. 311 down. stocks up, there is not a lot of breadth to one side or the other. nest lee is one of the first giant corporations to go negative in terms of debt.
sanofi and novartis as well, more defensive stocks on the stocks.han the growth airbus falling. not a lot of huge movers or 2% to 3% movers on this list. see this heavy stock down more than 1%. european markets opening flat with investors pulled in two directions. in europe you have the contraction story with germany. the german economy shrank and the output fell 0.1% in the second quarter following is 0.4% expansion in q1.
here is what executives of top german companies had to say about the slowdown. >> we have seen impacts on the industrial base. exports are getting slower. it is having an impact. you see it with our competitors around the world that they are hit by the higher iron ore. >> we are not immune to what is happening around us. we have a broad and diversified portfolio. we see more uncertainty in , but also in the macroeconomic environment. that is why we are more careful. >> we know the overall environment is weakening. we are aware of that and why we have to work cautiously on our
costs. >> the trade war makes production down, nobody said it would be easy, but stick to the guns. is marijaing us now veitmane. marija: senior multi-asset strategist, state street bank. to be axpect this wake-up call for berlin or the ecb? marija: good morning. it is not a surprise. kind of confirmation of what we know, the european economy is slowing. we saw that with previous numbers. the stocken that with
market troubling. we are trying to do everything we can. the sluggishness is not a surprise. see, oruld you like to do you think we will see fiscal stimulus wreckage from angela tooel or are the germans stingy to surprise the markets with something that positive? suspect it is something the market is hopeful for. people are calling for more fiscal stimulus from europe and so far that has fallen on deaf ears. point where the german government has to do something to stimulate the economy. i think it is coming sooner rather than later. this, --erms of boon
in terms ofbunds we see it everywhere. is not putting money aside for retirement, this is price appreciation. do you hold any negative debt? we have not got that desperate yet. we would rather hold treasuries. it is still a safe haven and has some yield. negative yields is very serious and something that to takeng investors more risk in their portfolio to generate returns. -- in them
medium-term it suggests you have to take risk. buying treasuries is one opportunity. play, andfed is in how long that can continue. the other opportunity is buying italian debt. it is potentially something that but thisract interest, negative yield to us means investors have pushed and pushed. we have one anchor here,
never tellhal, i can if he is trolling or a huge fan of negative debt. why do you think it is dangerous? ultimately it is making corporate investors miss allocate capital. -- miss allocate it can create a situation not very high quality, and argentina is the perfect level of that. two years ago we saw it as a turnaround story. debt, cheapereat by the underlying fundamentals. investors to buy low-quality high risk that -- low-quality high risk debt.
matt: welcome back to "bloomberg markets: european open." we are 13 minutes into the trading day, and we are not seeing much green on the screen. we see red arrows on the dax, the cac, and the ftse. only the ftse 100 in london is treading water, although just barely. we had gains yesterday here, the u.s. and in asia as president trump delayed china tariffs until december, farm goods, clothes, book where are on the list to be hit september 1. big-ticket items like smart phones and children toys will not come until the end of the year before christmas. marija veitmane, senior multi-asset strategist, state street bank is still with us. it alloweprieve, does
?ou a sigh of relief do you see an olive branch being handed to the chinese after they set their you want fixing? will they get along in september? it is more ank negotiating tactic. we know donald trump sees himself as a tough negotiator. i suspect we will see similar brinkmanship going forward. what i find interesting is investor reaction is getting more muted every time we go there. the first news of tariffs
came out last year, it took a long time for markets to recover. a big selloff, it took markets time to recover. what is interesting, at state street we have a product that , and it media sentiment is interesting. the sentiment on the trade war is negative. every time it spikes, but not as much as the previous time. i think investors are building a familiarity with the negotiating and the other point is to bring this idea that it is increasingly in chinese interests to get some sort of a
deal. we are getting into presidential campaigns. the chinese economy is suffering. that we should deftly therewhere, are bumps in the road and volatility. did direction of travel i think is towards a deal. matt: it is interesting to get your take on the mliv question of the day. how far can stocks rise on the tariffs delay? your reduction expectations each time we have more news on this, you do not think so much. marija: i think that is right. sides, when we get the next announcement that tariffs are coming, stocks will sell off a little less. sensitivitye is
that it is going down a little bit. increasingly markets are perceiving the trade war as two come, we have seen tariffs and go, and that is important to realize. matt: in that case, do you think we have seen a run-up to the levels we are going to in safe haven assets? is that as far as we will go with those assets? marija: i would love to say yes. our long-term view is constructive, but it is very risk.ive to headline given that it is unpredictable, i would stay away but medium and
longer-term we should be in risk assets to some degree. matt: marija veitmane, senior multi-asset strategist, state us.et bank will stay with i want to get to the top individual stock stories with annmarie hordern. soaring uphis is more than 9%. 14% ande profit up boosted their cash net outlook. 4.5%.nsurance company up schindler down, more than 4%. they maintain their guidance, but the second quarter was below expectations. it came in less than the market was expecting. matt: thank you very much. up next, earnings from antivirus
across all european equity indexes with the exception of the swiss market. the ftse little changed, down 1.8%. u.s. futures turned red as well. let's talk about tech. avast is planning to keep expanding through acquisitions as the rollout of 5g present new business opportunities. joining us to discuss is ondrej vlcek, ceo/coo, avast software. let me ask you first off, what was the biggest driver for earnings and why did the street underestimate your numbers? ondrej: good morning. drivers, ouro consumer segment. .t grew the second was consumer interact
.- in direct these were the two main things. matt: what are you hoping for in the rollout of five g and how will that affect your business? as consumers it does not seem like it will come quickly enough . 5g brings a couple of things, the density of the enabling the is internet of things. that is an exciting thing. it poses new security risks. and the speed of connectivity, which we all want and are hoping to get better. timing, eastern asia is ahead in that regard. in europe we can realistically expect something within three years. matt: you have given up your
salary and bonus in order to tie yourself more closely to the movement and the stock. what do you expect for investors in your company? by the i got inspired captains of silicon valley, google and facebook, leaders. i gave up my salary and bonus and then getting compensated by stock, which i think is the right thing for the ceo to do. clearly, my objective is to keep the company growing. i amve a great runway, and optimistic and seeing opportunities. you abouti ask security and privacy? the big platforms on the west coast of the u.s. have gotten into a lot of trouble in the
past. amazon and google for listening in on conversations. now facebook is at the forefront of the issue after admitting it had people transcribing users voice messages. what do you make of these big that forms and their inability to avoid trouble in the privacy front? ondrej: i think privacy is a new category. we see yet as the other side of the security coin. we are heavily investing in creating privacy oriented solutions. today is not just security, but less than half of our business is made of tools like right as he controls because we see a big opportunity, and the need is real. consumers are realizing there are privacy risks in what they are doing online, and there is something to be done about it. ,att: thank you, ondrej vlcek
ceo/coo, avast software. they beat earnings and are bucking the trend and the stock is rising in what looks like a falling market. let's check in on equity indexes here in europe. we have red arrows for the most part. in the see a little gain czech republic possibly because of avast, but otherwise most falling. turkey is closed. the biggest drops coming in italy and austria, not a lot of movement on the ftse. the u.k. in the grave. calls for at minard fed cut before next month's meeting, bigger than 25 basis points. a little bit of a shock and awe
matt: 30 minutes into the trading day, let's get your top headlines. germany's economy shrinks in the second quarter as angela merkel signals possible fiscal stimulus. says it is sticking to trade talks next month after trump delays tariffs. many are still scheduled to hit on september 1. , hongrport injunction accesslice implement control to the city's transport hub after a chaotic night.
good morning, welcome to "bloomberg markets." this is the european open. we are 30 minutes into the trading day. let's look at how things are shaping up in terms of the equity indexes and the individual equities. we now see more breadth the downside. gaining.s losing, 176 nestle is one of the biggest gainers, as well as sanofi and novartis. but these defensive stocks cannot hold the index in positive territory. take a look at some of the losers, you have heavyweight fallers as well. on the downside, bank of santander is down almost 2%. alsoaribas and total waiting on the stoxx 600. let's get first word news in london. >> germany's economy shrank in
the second quarter. economyerkel said the is going through a difficult phase. output fell from the previous months and exports slumped at the trade war hit manufacturers. hong kong's airport has restricted access to its terminal building. that is as flights return to normal after another flight of chaos. meanwhile, president trump stoked fears of an intervention. has delayed some of the new china tariffs until september. farm goods and footwear remain on the list, but levies on big-ticket items such as smart phones and toys won't come until the end of the year. china says they are sticking to trade talks. facebook has obtain hundreds of outside contractors to transcribe audio clips. they are not told where the audio was recorded or how it was
obtained, only to transcribe it. facebook confirms it has been transcribing news audio says it will no longer do so. viacom is merging in a $12 billion transaction, capping years of attempts to unite the media giants. it combines the most-watched u.s. network with paramount pictures. the new joint entity will be called viacom-cbs. iseppe a content -- gu to speak been called before parliament. the session could lead to a confidence vote, but there are other options, including his resignation or for the delay. global news, 24 hours a day on air, on tictoc, and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. matt? matt: thanks very much.
yields on 10 year treasuries have fallen lower on weak economic data out of china. and in the annual fund manager survey, traders were most bullish on rates since 2008. but the rush for cover overshadowed data. inflation minus food and energy. that might limit the pace for additional fed rate cuts, but a guggenheim partner told bloomberg that a quick reduction would send a clear signal. >> given the fact the fed is in, they shouldd- cut rates dramatically and do it and get this over with. matt: a senior multi-asset strategist at state street is still with us. -- interesting to see
him call for a cut from the fed between meetings. previously, he thought the fed should raise rates in this economy. what is your view? our view is a little bit more benign. we believe the economy is not entering a recession. we see labor markets and consumers being strong. the economy is not collapsing, and he is probably looking at u.s. economies. they do not need rate cuts for however, there are external forces. the trade war is in full force and we know the global economy is slowing. the question is how much that will affect the u.s. economy. if you treat it in isolation, probably not that much given that it is very service-oriented. thinking about the economy, not
much. but the negative headlines affect asset prices. that can be potentially very damaging. the fed is in a difficult situation, they need to almost forecast the potential path of the trade war negotiation, which is fraught with uncertainty. so it is very difficult for the fed to give strong forward guidance. then the fed is clearly tilted in that direction. the president certainly wants them to go there, and so do the markets. the we get to a situation where the u.s. has, though alan greenspan says it's no deal, we get to a situation of negative nominal yields?
the road there is long and why the, we are probably quite far away. hopefully, we don't get their but i would not be surprised that yields get lower. how much lower, that depends very much on how trade negotiations go. just imagine for a minute the trade war is resolved. that would be a very different scenario and financial markets will improve substantially. we probably will not be having that conversation. hypothetically, i would be very surprised if trade tensions go away completely, but should we be on that path you will get more and more commentators calling for a rate hike. expectations your
on a u.s. recession? we have seen goldman sachs and others raise their forecast. orit likely in the next year two? said, this is strongly predicated on the greatest unknown. i come from an equity's background, and for me, the key hard number that gets a lot of guidance is the corporate earnings. we have just gone through the q2 earnings season. the way i would describe it is as better than people feared or priced in. it was not fantastic, but it's better than what we had. suggests the economy is not in a dire state. ,att: america's -- in that case
it is interesting to look at this chart showing bloomberg estimates compiled and the expectation or recession -- four ecession. -- for r higher than we see in germany, an interesting chart. seniorou for joining us multi-asset strategist at state street. continues the conversation in 20 minutes time on bloomberg radio. if you want to tune in, wait until i'm done on television. obviously, you're going to stick with me for the rest of the open, but then go to dab digital or sirius xm or anywhere around the world on your mobile device. , some of the stock movers. we will show you what's going on after earnings were
holding its head above water as the pound falls a little bit. bloomberg has learned that facebook has been paying hundreds of outside contract to transcribe clips from audio users. the workers here user conversations but don't know where the audio comes from or why the social network needs it. facebook has confirmed they have stopped transcribing audio, saying that users consented and clarified they needed it to match up with ai transcription. joining us from beijing is our china correspondent, selina wang. how much pressure is the story at -- add/ -- add? the company is already being hauled in front of congress. >> is certainly further dents that relationship.
they have been working hard to rebuild that trust and only billion withled $5 the ftc over privacy probes. itself, is defending saying the users agreed to have their audio transcribed. what they did not tell their users is that a human reviewer may be looking at it. fact that contractors told bloomberg, anonymously, that they felt uncomfortable and unethical shows facebook did cross some sort of line. facebook is not the only company that has come under fire for this sort of practice. google and amazon have engaged in these practices or their voice assistants is, collecting snippets of audio. the purpose for all of this was because these companies want to improve ai algorithms. atis getting much better recognizing human speech, human patterns. but there is an element of human
review that is necessary to get it to 100% accuracy. matt: and these users consented, just to be clear. they consented to having their audio transmissions transcribed, so not they understood what hundred percent, but at least take a box -- ticked a box. >> it would be like if i sent you a message and said i wanted to have it transcribed but i did not know a human might be on the other end reading that. matt: ah. well, typically, humans are the ones who transcribed things. 45, so maybe the kids expect a computer. >> [laughter] right. matt: this, of course, is what facebook is working on. results for tencent are out and are on -- and are a massive
company. ook/does 2019 book -- l -- look? >> it was battered by the long delays regulators put. they could not monetize the most lucrative games. so we can expect a big revenue boost. on the gaming front, which is its most important revenue line, that is supposed to have improved quite significantly. but investors will also be watching newer business lines, areas like financial technology, payments, business services. that is a big new focus of tencent as they start to see saturation and slowing growth in core areas. , investors are also excited about the possibilities for tencent to continue to monetize its more than one billion users, which
here in china, is necessary for everything. everything from flights, payments, cars, there's a lot to watch out for in this quarter. matt: thanks so much for joining us. bloomberg's china correspondent selina wang on facebook, tencent, and all the biggest tech stories. let's go back to london with annmarie hordern. annmarie: the biggest loser this morning is our slower mattel -- arcelor mital, wiping out all of the games. some of it -- gains. some of it is the weaker industrial data. lundbeck is climbing its way back up, it was one of the weaker players. ag to the upside, profits rose in the first half. matt: all right.
annmarie hordern with your movers. just over 18 months ago, steinhoff was a billion-dollar company is shipping products worldwide -- company, distribute profits worldwide before shifting to a fraction. now, they see the company's future as a hands-off investment holding company. they say steinhoff will also consider further retail acid disposals. -- asset disposals. , there was a lot of emphasis on a vertical integration model and a lot of focus on services. over the last 18-20 months we debtrealized as part of a restructuring that model is not necessarily sustainable. that believe the way to do is that operational management
should be in underlying businesses. from that perspective, we must act as a shareholder. solvent or both of these? >> i think it is. is aay we will go forward restructured we hope is imminent, completed either today or tomorrow, the implementation thereof. also assist the balance sheet of the group. >> so your main option is to bring down debt levels? >> the options are twofold. the first is we believe we need to find a solution to litigation, and simultaneously with that we have to reassess the portfolio of investments and
see which are to be realized to bring down the debt. >> in terms of law enforcement agencies, are they getting full access to the friends of investigation? >> our interaction with the various agencies is ongoing. they obviously have their own investigation that governs the operation. they've gotten full access to documentation and information we believe we are in a position to give them. the company has got several going, andre they how close are you to settling some of those claims? >> it is still early days. , those discussions
have commenced and are ongoing. as i said to some of your colleagues earlier today, they appreciate i would like to keep those cards close to my chest. ultimately, it is an adversarial process. when we are in a position to update the market, we will. matt: that was steinhoff's ceo speaking to bloomberg in cape town. day after the night before hong kong restricts access to the airport in a bid to stave off protests, we bring you the latest. this is bloomberg. ♪
matt: welcome back to "bloomberg markets." open, wehe european are almost one hour into the session and looking at red arrows everywhere, including london, where the ftse is down, even with the pound down as a tailwind for equities. one of the events that may be contributing to the negative feeling is the protests in hong been the airport there has a meeting point for demonstrators and has been a real bottleneck for the asian economy. now, the airport has been
granted an interim injunction to limit actions of protesters after a chaotic night yesterday that involves the detention of a protests -- couple by the protesters. trump has said the chinese government is moving troops to its border with hong kong. joining us is yvonne mann. what has the response been from china? yvonne: at the moment, china has condemned last night's events, saying this was showing signs of terrorism behavior. the same rhetoric we've seen, the ramped up a bit, saying these protesters deserve to be punished. we are seeing a much different seen here. -- scene here. , thisty is tight
injunction was issued just hours ago, basically only allowing people departing hong kong with an air tickets and boarding pass that are set to leave hong kong. staff are checking identification and passports here and allowing passengers in, but not protesters. there was a commotion here earlier from some of the protesters, they are not happy with the responses. they say this will just make the situation worse and possibly allow protesters come back and block some of these entrances from outside. we taking a look at their are small pockets of protesters that are still here before the injunction was put in place. they are waiting to see. the airport has also sectioned off other areas but they are not
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tariffs on chinese manufactured consumer goods. markets breathed a sigh of relief. the day after the night before hong kong's airport resumes operations, the government takes steps to keep demonstrators out of the terminal. and europe's engine sputters. the german economy shrinks, piling pressure on angela merkel to provide fiscal stimulus. ♪ francine: welcome