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tv   Bloomberg Markets European Close  Bloomberg  September 19, 2019 11:00am-12:00pm EDT

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30 minutes left in the european trading day. from london, i'm guy johnson. romaine: in new york, i'm romaine bostick, in for vonnie quinn today. this is the european close on "bloomberg markets." guy: about 30 minutes before we end the session here today. stocks generally well bid, adding to the gains earlier in the session. banks are leading, up by 1.8%. a bunch of banks behind this. on the repo front and the decision that came through last night, we've had tltro's coming out of the ecb today. the take-up maybe not as big as anticipated. all of those factors into the mix. brent crude also catching a bid, up by 1.5%. maybe the saudis need to go to their neighbors to get some of the crew they need. romaine: thanks, guy. let's take a look at what is going on in the u.s.. -- s&p 500 upound
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around 0.4%. take a look at what is happening in the rates market. 1.74% year yield on the 10 year. that steepening we started to get off of the fed meeting yesterday on the twos and tens continues. still seeing some flattening and other areas of the curve right now, but you are getting some good news here. , holding aboveed the $1500 an ounce level for the second day in a row. thank stocks over in europe are leading the charge -- bank stocks over in europe are leading the charge, not quite leading the charge here. rising,bank index seeing a lot of strength despite the expectations with regard to fed rates here. a lot of folks saying things won't turn out as bad. maybe a little bit of flight back into financials. central bank is absently front and central, so waiting to see the impact of the fed's second straight rate cut
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and all of those other monetary policy decisions we've had around the world. we've been watching every thing from indonesia to switzerland to the bank of england. a whole range of central banks in focus. we are joined by chris turner, ing head of fx strategy. the fed, not a surprise. but in some ways, the fact that the fed and the chair didn't answer many of the questions market wants answers to kind of leaves us a little bit in limbo right now. we've clearly got a very divided fomc. jay powell last night really didn't answer any of the questions. it kind of feels like we are in a much more difficult to navigate period for the fed. how do we deal with this from a dollar perspective? what does it mean for global markets? chris: i think earlier yesterday, ahead of the fed meeting, the market was getting side -- was getting excited on what happened in the overnight repo market. they haven't hit it head on by looking at the bank reserves. i think they will probably look
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at that into the october meeting. to address your point, this morning we saw a bit of a flatter u.s. yield curve. generally that is associated with the fed not doing enough to fight the global downturn. that has been generally consistent with a strong dollar. two reflate the global economy, you've got to see the fed turned dovish. we just haven't been seeing that. it seems like they have been dragged reluctantly into these cuts, but they are not buying into the easing cycle yet. guy: what does that mean for the dollar? chris: i think the dollar stays relatively bid for the time being. if you look back in july, that did prove the peak for the dollar, so trade tensions picked up after that. for the time being, there has to be either some great news on , or in the many factoring sector for the rest of the world, or some thing that would justify a much sharper easing
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cycle. we had existing home sales today, which have been really strong, keeping firm, really. romaine: when you talk about evers central banks have, a lot of talk about the balance sheet after we had that repo ripple on monday and tuesday. do you think this idea that we were eight 800 billion on the at $800nced -- we were billion on the fed balance sheet, using we will go ever back to that? or will they have a choice to open it up? chris: i think they probably were discovering where was that touch point when perhaps a lack of liquidity really exposed itself through these overnight rates. we've reached the point with low weekve levels this with tax payments from corporate's on monday. i think it is going to be out there, and he market will be looking to do a sort of fix by
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bank reserve. do they add permanent liquidity? i think any suggestion this probably wide of the mark, but as we move towards the october meeting, there will be a lot of discussion over does the fed add some bank reserves. it might be negative for the dollar because the fed is effectively pointing money. romaine: obviously a big trade here, both for bond traders, even equity traders, is playing off these fx differentials. do you see any risk, whether you are getting dollar risk or not, of those differentials narrowing to any significant degree? chris: they are narrowing, but not enough to make a difference in dollar pricing because if you are a european or japanese investor looking at investing in treasuries, to hedge that dollar risk still costs about 2.5% or so, so it is like a no-brainer. you would leave that open. the position is too extensive to hedge, so i think probably you are going to see at least 50
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basis points of rate cuts from the fed, maybe more, before the differentials start to make a difference. guy: let's start working our way around the world, the boj. kuroda indicating we are maybe going to get action at the next meeting. that surprised if you people. what could he do -- a few people. what could he do? chris: a whole range of measures they are using. it won't be more qe or jgb buying. they've already got forward guidance keeping rates low until spring 2020 at the moment. perhaps they could extend that, but in reality, does it make much deterrence -- make much difference? i'm not too sure, really. they will see how the consumption tax hike plays out and then come back with a new set of forecasts for cpi and gdp
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at the end of october, but perhaps there might be a 10 basis point rate cut. i don't really think we will see much difference. guy: it doesn't make too much difference to financial markets. would your expectation be that it is not going to have a meaningful impact on the yen? chris: yeah. what they are trying to do that would have an impact on the yen, they are trying to steepen the yield curve for profitability in the japanese banking sector. but given all of the momentum towards a global slowdown and recession, bond yields at negatives around the world, how do you steepen the yield curve in that environment? you maybe switch your buying to the short end of the curve from the longer end of the curve. they've tried to do that already. but for the yen, i think the yen will be dominated by the global risk environment. romaine: kuroda is trying to pull that off. powell is trying to pull that off. are the central banks even driving the ship anymore? [laughter] chris: good question.
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no, i think we are getting to that point where obviously, the fed has got room to move, to cut rates to increase qe, should it need that point down the road. but we moved to this different chapter in august where it is all about fiscal stimulus. it is high time european governments got stuck into fiscal stimulus. we've seen some opening up in europe already in terms of the physical caps. i think there is focus in germany in terms of some modest fiscal stimulus relating to sustainability issues. i think the next story for the market is what do governments do central banks have exhausted their toolkit. romaine: talk to me a little bit about emerging-market currencies. do you see anything attractive there at the moment? chris: can peso stayed in crescent -- the mexican peso stayed incredibly strong throughout this because of
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readily strong to domestic policy rates of 8% or so. dollar wasn'te going anywhere for the rest of the year, it is not going to selloff, but doesn't have a big rally, perhaps you search for yield in nasa can peso. but a lot of people -- in mexican peso. a lot of people are doing that already. there are things going on in brazil, for example. we've got fiscal reform going through, which is very good news for the longer term in terms of the sovereign balance sheet. they are being able to cut rates aggressively, so that should be good for growth next year. should point, the rial cover more into 2020 than today. regarding the trade war, things could get worse before they get better. ,merging markets as a whole particularly those in asia, are still pretty vulnerable to acceleration of the trade war. guy: we haven't talked about the snb in switzerland. we haven't talked about brexit yet. plenty more still to come with
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chris turner, ing head of fx strategy. romaine: let's check in on the global markets right now with abigail doolittle. abigail: at this point, we are looking at a bit of a risk on tone after the volatility after the fed decision yesterday, when stocks went sharply lower and finished about even. right now, solid gains in the u.s.. the s&p 500 up 0.4% come on the nasdaq up 0.7%. we will take a look at why in just a few minutes. this is as the fed is injecting short-term liquidity into the system. the dax in germany up 0.5%. 1.7%, upcrude up nicely on the week after that attack in saudi arabia. where we are seeing gains as well, bonds. let's take a look at the four-day chart of the 10 year yield, down 11 basis points. of course, bonds are rallying after the fed did cut as expected. language a little bit hawkish
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purse on, but investors -- but investorsme, have the 10 year yield at 1.76%. for the s&p 500, this is the imap in the bloomberg. even though oil is higher, energy down about 0.2%. not a big loss. with yields lower, we also see that real estate, utilities, and consumer staples were trading slightly lower. typically you would see those higher, so some interesting actions here. financials, despite the fact that yields are lower, are higher. lots of flip-flopping here. let's to get some big winners within the tech sector. the biggest one of the mall today, microsoft, after announcing a big buyback. we see microsoft up 2.2%. we also have adobe, oracle, and andy up. amd up.ndy up -- and
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microsoft is the global leader for market cap going back to april 24, or 104 days. guy: absolutely. like it. thank you very much indeed. remember, you can find all of the fantastic functionality we show you on the screens here on bloomberg television, all the great charts. gtv . there are some examples. you can save them. this is bloomberg. ♪
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♪ guy: from london, i'm guy johnson. romaine: from new york, i'm romaine bostick. this is the european close on "bloomberg markets." let's check in on the bloomberg
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first word news. standing by right now, ritika gupta. ritika: president trump made the latest move in income tax records. according to "the new york times," there has been a subpoena of the president's tax returns as part of an investigation into whether the trump organization falsified business records. president trump says a peaceful solution with iran may not be possible. the president told foxnews there could be what he called "a very "we are the saying, strongest military in the world by far." the admin attrition is expected to release details tomorrow on the latest sanctions to be imposed on iran. another sign that the u.s. housing market may be breaking out of a slump. sales of previously owned u.s. homes rose last month to the highest since march 2018. antact closings rose 1.3% to annual rate of almost 5.5 million. that exceeded all forecasts in a
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bloomberg survey of economists. in canada, it is just what prime minister justin trudeau didn't need a month before the election. he was forced to apologize for wearing brown face makeup at a party in 2001. a picture of the incident appeared in "time" magazine. his opponent says the photo reveals someone who is not fit to run the nation. 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 ritika gupta. this is bloomberg. guy: thanks very much. still with us, chrisi'm ritika . turner, ing head of fx strategy. between now and the end of the year, where does the excitement come in fx? it is very quiet at the moment relative to other asset classes. if you take a look at the volatility indicators, not a lot going on. chris: we still got unresolved
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issues with trade, and perhaps we've got auto tariffs against the european auto sector. i think trump and his team, the commerce secretary's team, will that,ing on a decision on so that is a story potentially. i don't think that is priced in. we had enough negatives coming through in the manufacturing u.s.-china china and tariffs that i think the auto sector tariffs would throw another layer on top of that, and could potential he pushed euro-dollar down to 1.05. we've been flirting below 1.10. we've had a massive break out of ranges, but that could be one potential area. guy: what about the pound? is it reaching some sort of crescendo moment? we are waiting for a court case that is going to be announced next week.
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bank of england today did nothing. kind of sat on its hands, understandably. the bank of england has 10 basis points of cuts rest in between now and the end of 2020. if you take a look at where we are with the pound, there's not a lot of movement or action there either. chris: looking at the term structure and the options market for i was coming in today, there is still a very big kink around the october-november period, and flows haven't come off too much since we've had that court ruling which told boris he had to ask for the delay if he couldn't get a deal. the options market is still quite nervous that there could be some sizable moves around that october-november window. i don't think we should be too complacent just yet that the bad onlyis in there, and the way is sideways or higher for the pound. romaine: let's go over to asia a little bit. we saw the yuan we can a little
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a littlee yuan weaken bit. when you see how asian currencies are playing nice or not nice with the rest of the world, where do you see them heading at the moment? chris: i think it is still volatile the moment. you have a trade war emerging with japan, as well as subject to the u.s.-china trade trend. it is already undervalued, the korean won. if you take a two to three year view, these are great levels to get involved in the korean won, but probably just for the next three months or so, we are not looking for any major resolution. you've also got the unresolved issue with oil. obviously we are talking about production coming back online, but to what degree the saudis for the u.s. respond to the
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actions earlier in the week is very bad news for asian currencies, where they've got 90% energy dependence ratio. so the yen and korea are very exposed there as well. romaine: all of the fear we had a few months ago that we could be in some sort of currency war between the u.s. and china, do we need to worry about that? chris: i think what we felt at the time when dollar renminbi went above seven, and u.s. treasury called china a currency manipulator, the treasury was essentially saying you claim to be able to control your currency so well, how come you're going above seven? that was really a problem from the u.s. side. maytegically, the chinese at certain points allow the renminbi, allow market forces to ticket lower. i don't think they are devaluing it themselves, but they will not stand in way of those working forces. occasionally and strategically, they will let it go. ,he pressure comes on them from for example, a fresh round of tariffs coming.
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i think the currencies are playing a role in the trade war at the moment. is going tosuisse charge on declines for big balances. we are seeing negative rates being passed on to customers by big swiss banks. today, the s&p did nothing -- the snb did nothing. nothing.didn't do it protected banks a bit more in terms of negative rates. can i assume from that that the snb has reached the limit in its ability to cut rates, despite the fact it is able to protect its banks? it is not able to completely protect them, and they are now having to pass on some of these costs to customers. chris: i tend to agree with you in that the banking sector was screaming over the impact of negative deposit rates, and yet today, they already had generous exemption requirements. before it was 20 times minimum reserves. times -- now it is
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25 times been a member serves. so yes, they are reaching the limits. rates markets are acting a similar way. swiss yields moved slightly higher. there are so many market saying if they are completely protecting the banks, they can now cut away. if they were doing so, that would be primarily to weaken the currency. i think internationally, you've got problems if you were just out there purely manipulating your currency. i know they target that to try and reflate the economy, but i think it is quite difficult. they've probably done 12 billion swiss francs of intervention over the last six weeks or so. i think their ability to do 50 or 100, personally i think that is quite limited. guy: we are going to leave it there. thank you for stopping by to see yesterday. chris turner, ing head of fx strategy. this is bloomberg. ♪
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♪ time now for a bloomberg business flash, a look at some of the biggest business stories in the news right now. shares of target rising today. the discount retailer announcing a new $5 billion share buyback program. it will start when the current $5 billion program is complete. that will happen in fiscal 2020. the buyback authorization where percent about 9% of target's market cap -- authorization represents about 9% of target's market cap. tiffany plans to open more stores in mainland china, and wants to make its shanghai the moststore nycrtant location after its fifth avenue store. that is your bloomberg business flash. seeing a lot of bid inditex
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stock names. -- bid in the tech stocks names. the nasdaq rallying as well. if you are looking for a bit more positive lizzie -- more volatility, you're not getting much on the vix, down about 0.5%. . guy: european markets up my around 0.5%. banks absolutely leading the charge here in europe. some of the peripheral names really doing well today in markets like spain. cac upe 100, dax, and around 0.5%. three minutes to go until the european close. that's next. this is bloomberg. ♪ here, it all starts with a simple...
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that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. guy: 30 seconds to go until the end the regular trading here in europe, positive today near session highs, the spanish market outperforming, the banks leading the charge in europe.
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there certainly the best. toy continue to add weight the ftse, the cac, dax, all trading up. we see a number of different factors today, clearly central-bank news is one of the dominant themes, also some idiosyncratic individual stock stories with focusing on. let's take a look at what's happening with some of those stock stories, to give you an idea of what's going on. there are number of different ones worth focusing on. was is one of those, emme talking about this earlier -- emma was talking about this earlier. and cac has been having a fantastic run, including from the biggest u.k. retailers, it has close in hardware, those are coming off a little bit. it's an indication, maybe, that we are seeing weakness in consumers in the autumn. . -- the autumn period.
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ryanair is also a story to pay attention to. we've seen a number of different story swirling around them now. one of which is that the shareholders are not quite as paycheckh management's , and there has been resistance coming through with shareholders. hopping around a little bit, near 06%. on, now in credit space -- and credit suisse has decided to charge customers for negative rates, and affecting customers with very big negative balances. this is stories feeding into individual client accounts. that's a look at the european close. remain. e. romain romaine: you can see that the s&p has been holding at 40 --
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has been holding. these are the numbers we're looking at at the closing an intraday high. this is interesting, we saw a bit of strength in the dollar today, but that weakness is starting to sweat in -- to set in. market is at .78 on the 10 year. remember, we are seeing some flattening in other parts of the on the six-month side year which is critical for the banking sector. gold futures are taking a reversal, down 7/10 of a percent, it was higher for much of the day on the u.s. side, not clear what's prompting the selloff. when you see the strength in the other asset classes, it makes sense you see this go down. we have not seen small caps lead the way, 810 seven percent has
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outpaced all the major indexes and that's a good sign. the markets went to see that there is confirmation that there legs, the transports are sitting it out, down a 10th of a percent. the house cannot -- the health care index, keep an eye here. these are up 1% but broad-based signs across the lk sector and including pharmaceuticals, particularly with a lot of animal health companies, that's a developing story on a lot of fronts. in microsoft we mentioned buybacks of target, a $40 million buyback program raising the dividend, not unexpectedly, but investors are eating it up back above the one trillion mark at a record level. liska back to oil story. prices are picking up, concerns mounting over the speed of saudi arabia's recovery from the attacks last weekend. joining us is anthony.
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on thiss belief earlier week that the saudi's would be able to get oral supply back online quickly. real --oil supply -- supply back online quickly. now there are doubts and that sally may need to go to its neighbors. it will take a number of months to get back to full a 12 millions barrel a day capacity and it will take them until november to get there. and now they have been buying oil products, diesel, potentially fuel oil they could put into power plants in saudi arabia. they had been cutting back their own refinery runs. the saudi's say they are using their crude oil storage so they
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are meeting custom or demand. that is of course a finite resource that will run out as the situation per tracks. they will need to bring capacity back online to meet the customer requirements ones that story starts to dwindle. and we have been reporting today , according to a month -- going to the analysts we spoken, they have about a month that they can use while they are repairing the facility. so we're watching for signs of them purchasing in the market. there is a trading unit which goes out and purchases oil and supplies refineries abroad. and we are looking for signs that they are purchasing more than they were usually. that has been the case. are tryingsly they to address the supply issue with regards to the immediate issues on with the oil field.
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when we talk about safety and security going forward, how much confidence is out there that we will not see a repeat of the incident we've had this past weekend? question, and i would say the oil market has been pricing the risk of that happening. we saw a big spike in oil prices on monday after the attacks, and now the analysts are saying that the oil markets are still not pricing that. yesterday we were at the debriefing by the saudi defense ministry where they show the drones and missiles which they alleged were built by iran. the defense ministry gave iran the responsibility for that attack what they said they were happy with their defense system, and were confident they could stop further attacks. in the same time, they were confident in their ability to fight the fires, and repair damage. nervousnesssee that that something like this could happen again publicly, yes.
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they are staying confident, saying they are not going to miss any supply shipments to their customers. that question is now there. could something like this happen again? the facility, the biggest crude processing facility in the world , is a target. the refineries in saudi arabia, those are targets as well. this is why the facility is so important, it needs to get the crude oil to the market. and this is why we see the crude price bouncing around. much.hank you very let's turn our attention back to the banking sector, specifically to eastern europe. ceo of thehael, the leading corporate investment bank in poland. good afternoon. onre's an election coming up october 13. there has been suggestions that
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the government would take more interest in the banking sector, how do you see it turning out, do you think it will have an impact on your bank? >> they're still three weeks to , but the campaign party and government seems to be likelyleading position, there is not a need to form a coalition. i think what has been very supporting to them is public social spending programs, but also the fact that we have the second fastest growing economy in europe, 4.5 per week, very week, very much driven by consumption and private investment is picking up. the banking sector state -- sectors stable. that we do have the banking tax, we don't expect nny more measures to be take against the banks.
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there could be some alleviation. the government is coming to a realization that in order to grow and sustain the economy and for the banks to grow outside of poland, you probably need to alleviate some of the measures. guy: one of the things that could affect the banking sector is an upcoming year court ruling we sawg to the way that amending taking place -- lending taking place in foreign currencies. this could have impacts in terms of the fines levied out, i have heard numbers as high as 20 billion. that's a lot of profitability that you need to compensate for. how do you think this will turn out? how it affect your bank? >> we're in a lucky position. exposure to chf mortgages is marginal. we were lucky to make the
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decision not to lend in terms of chf mortgages. it does not affect us directly, but it can create a systemic ruling is more on the conservative side of -- side. i think no pre-has a crystal ball and no one can anticipate. we will have to wait and see. it's a sector that's well-capitalized, very liquid. be ank this will sustainable situation. at the same time it seems like some owners of the banks in tested, in case we have a more conservative ruling. investors do seem to ise concern, re: is down -- going to be neat -- our oez --
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are the expectations realistic? >> it is. are looking at retail growth which is at its fastest in 10 years. we are growing in terms of midsize companies by 20%. we also have significant savings cost ofk, and a stable risk in running operations. we are positive on the $3 figure whichrofit means 12% roe. and given what's going on in europe, we think weights will be stable and we will be watching carefully the alignment. including the potential ruling of the ecb. romaine: and you have made a lot the income with
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ratios and streamlining operations. when you have the regulatory pressure, the political pressure that could come after the election, the results are known in october. how are you preparing, to deal with that? those factors that are outside of your control? >> i think it's an interesting question, and there's a lot of discussion. i don't think the current situation with the interest rates in western europe and the regulatory environment should be an excuse for the banks to transform themselves. we had the biggest transformation in this industry in a hundred years. you have on one side too many banks in europe, there should be consolidation. on the others, if we look at technology today and of the future including blockchain
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advanced analytics and data, it would be a missed opportunity not to be able to catch up. been doing sizable programs of redundancy, the polish banking sector is losing 6000 people per year, cost income is going 40%. despite the regulatory environment we have to do what's necessary and we have been leaders. guy: let's put that together with something you said early on , you said the e.u. court ruling may test foreign owners of polish banks. let's talk about commerce bank. it's a local bank, it does have exposure to the foreign-exchange story, how do you think that will turn out? will exit from poland? is that something you're planning for? how would that change the landscape? it'sen you do the math
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easy to say which banks might or might not be exposed. but it's difficult for me to comment on their position. is a targeting of the bank leaning towards younger clientele. we have not seen any acquisitions. guy: do you see any exits? do you think it were a decision coming through the people court, that it may force banks to leave poland? >> i think if you are a western european banks, the valuations have not been great, put simply. you have to look at every way you can grow. for banks like ing and commerce bank, this is one of the unique growth areas where you can grow and get stable dividends. guy: you don't expect them to leave? onlywouldn't, but this is
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my speculation, it's difficult to put myself in their shoes but i think it's a good market for western european banks. guy: thank you for seeing us. alluding polish banker let's take a look at the stocks. banking stocks are leading the story in europe, european banks are very much on the front first, up by half a percent. if you want to carry on the coverage you can do so on bloomberg radio. dab digital radio is where you can find us. you -- this is bloomberg. ♪
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live from new york, i
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romaine bostick. i'm guy johnson, this iss the european close. let's check in with first word. >> a whistleblower complaint in washington reportedly involved president trump's communications with a foreign leader. that's according to the washington post. it has led to a showdown between congress and the intelligence community because the presidents acting national intelligence director has refused to share details with house democrats. the inspector general has determined that the whistleblowers complaint is credible. ran tells cnn -- i run -- iran said there would be a war if there was an attack on their country. claiming they were not involved in the attack on the saudi oil facility. president trump says a peaceful solution may not be possible. ispical depression imelda
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causing flooding in southeastern ands, flooding roads sending rescuers scrambling to get to those most in need. houston,les east of and oil -- a tornado launched an oil tanker into a house. couldd deliver 35 -- it deliver 35 inches of rain in some areas. this is bloomberg. stock oftime now for the hour. shares of overstock are falling, at one point they reach their lowest level since july after the largest shareholder in founder told -- pulled his entire stake. heart taylor riggs with a it -- here is hardest working woman bloomberg, taylor riggs. >> you're so nice to become i should talk to you more often.
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at one point, this was at the lowest point since july, there was a bit of a rebound, now offer one half of 1%. this is an interesting story. the former ceo resigned came out and sold all of shares in the country between 15 and $20 -- and he iseen going into gold and cryptocurrencies. you see quite a divergence in shares. this is certainly something that had it -- shareholders nervous, having the former ceo getting out of the company completely. we are not sure why he's doing that, but we do know it has been a rough ride as patrick byrne did step down last month, leading -- leaving the question of who is in charge. as an interim ceo, the average age of the board is 54.
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a lot of questions remain about the company. guy: a lot of drama, but what about the fundamentals? >> a great question. revenue has been falling on the top line, they are now posting losses on the bottom line for the past three years. in july they said they were of $120for recovery million by the end 2019. the questions remain about the top and bottom line. romaine: that's taylor riggs joining us for san francisco. coming up, my favorite part, the battle of the charts is next. this is bloomberg. ♪
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bottle of wine, but don't let that influence you. i'm looking at oil, but looking at the 30 day skews. the lower it goes, it means the are, and thens more expensive call options are. you can see the relationship, we see the highest premium since march of 2011, meaning even if this does not reflect the volatility, you could see more picking up as you see these call options coming into the market, all worries and surroundings are -- saudi arabian output. or do youuy come have? guy: i'm going to something similar but different asset class. i had the s&p, you normally expect skew to rise in the market to go up. the markets will be looking for protection, the higher you go the more you worry about the big draw down which could affect
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that story at the end of the year. however, what we have at the moment is an indication that maybe the -- the market is not buying as much protection on the rally. you can see that. this is 2018. you can see the market has gone up and skews the rhythm. after the big december drop that we saw, this goes to the floor. i think this is something the market wants to pay attention to. we are looking to see if the market is protecting itself, volatility is low at the moment but if the market continues to climb to record highs and struggles with that, is that protection story saying that there may be a few more asset that should there be paying attention. you can find this on gtd -- g tv . romaine: i'm always amazed at how intelligent everyone is. i'm good have to get this one to
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alix, because i want some of her wine. >> i will share that with you. romaine: until forget, you can join alix steel for commodities edge coming up in an hour at 1:00 eastern and 6:00 in london. coming up, balance of power with david westin. on theget a quick check markets, the dow jones industrial all of the u.s. indices are higher today, rallying a little bit following that fed meeting. volatility is subdued. this is bloomberg. ♪
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david: welcome to balance of
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power, where the world of politics meets the world of business. kevin cirilli from capitol hill has an increasing more words between united states and iran, and the continued review of suspending -- and david scanlan from toronto on new revelations about justin trudeau with a month to go to the election. let's start with kevin. we have exchange with the president saying i would like a peaceful solution but it may not happen with iran and we have the leader saying there may be full out war. cnn, theerview with iranian foreign minister said they were fully prepared to go to war with the united states if there were to be any military action, this comes as mike pompeo is meeting with the saudi's, saying the drone strike over the weekend on saudi arabia was an act of war. meanwhile, senate majority leader mitch

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