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tv   Bloomberg Markets  Bloomberg  November 20, 2015 11:30am-12:01pm EST

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mark barton will be joining us for the next half hour. mark: the biggest weekly advance in a month, the european close starts right now. ♪ betty: we're going to take you from new york to london in the next half hour. mark, kick us off with post-mario draghi movements in the market. mark: the fourth day of gains in 5. investors rushing off. we had the worst terror attacks in over a decade the vast friday in paris. investors are shrugging off those, sending stocks higher. the best weekly gain in a month. don't forget, the feds dictated the movement. bracing this new buzzword, when
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it comes to the path of future rate hikes. the top story is abn amro's shares rose over 3%. bailed out by the dutch government at the height of the financial crisis. it has returned from a to grade, betty. betty: it has. on the macro front, though, we were just talking about the ecb president mario draghi. it sounds like we are on for his stimulus in two weeks? july 2012, he said the ecb will do what is necessary to reach its inflation goal as quickly as possible. what is necessary, or whatever it takes -- that is what we said in 2012. .1% is a fast rise from just under 2%. he said that that it's doing its best to prepare markets,
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internationally, for u.s. rate increase. mario draghi is essentially telegraphing that the ecb is prepared to add more stimulus in two weeks. betty: let's check in, let's get that for a moment. we will be talking to mario about this. in on our bloomberg first word news. courtney has more. mali.ey: the latest from there are no more hostages in the hotel standoff. gunman's head stormed a radisson the capital of the hostages are free. there is a report 18 people were killed, including a belgian diplomat. the gunmen are believed to be linked to al qaeda. in france, police carried out night'snked to last
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terror attacks. they arrested 17 people. the french senate is expected to extend the government's state of emergency powers for three months. has avoided passing a long-term highway bill. senators agree to a two-week extension of the current program, giving both houses a little more time to come up with a plan to fix the nation's roads and bridges. hillary clinton solidifying her lead in the race for the democratic residential nomination. she leads bernie sanders 55% to 30% among those who are registered democrats or lean that way. in september, she led 33% to 24%, but that included vice president joe biden, who decided not to run. that is our first word news. you can get more on these and other stories 20 or hours a day at the new
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on the first word desk, i'm courtney donohoe. at a speech in frankfurt, mario draghi said the central bank will do what it must to raise inflation as quickly as possible. it sounds a bit like july 2012 all over again. betty: it feels like so long ago. super mario, as i guess he is called in europe, strikes again. from one mario to another, the ceo managing $40 billion in assets. them orearing pessimistic comments coming from mario draghi, it seems stimulus is on. what does that look like to you as an investor? mario: he will be at the new york economics club in a couple of weeks. the playbook is fairly simple.
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flood the system, help financial assets, or the currency and stimulate the economy if you looked at the statements from the fed recently, the notion of the currency impact, the oil impact, the inflation in the united states starts unwinding itself in the second half of 2016. when does the market discount that? is trying to he lower the currency. we are at one and six. do you get a pair is see with what the fed's pentateuch and ecb does what it is meant to do. mario: they will do it they want . from 138 on the euro to 106, the incremental impact incrementally to go down 10% further. a year after it started, around .002, was around 87 currency has an impact on
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earnings. if you are a company in europe that sources its goods in local currency and sells and dollars, those are bargains. mark: give us some bargains. in the european markets we are picking stocks -- we started a fund in february and raisedlli plus money there and are trading in new york. miller column is about 100 million shares, $52 stock. they are in africa. reduce they sell that, their debt, and focus on central and latin america. they will be part of the roll up and consolidation in that market. secondly, i go to a company in denmark called christian hanson. products withific probiotics that you put into food. italy for wild bird then. i am a backyard, mark,
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buyer of rolls-royce. the stock has discounted the dynamics. they are negative. we are behind a lot of stocks for a lot of reasons. mark: they are down 20%. are you buying now, or were you buying before? mario: both. we owned it for a management to go, to management to go. we plan to do well, in part because of the growth in commercial aviation and the fact you have pratt whitney and boeing. -- and john: you mentioned malone. does this deal with cable and wireless preclude him from going back from going back and doing a deal? mario: they have wonderful assets in columbia. is a different situation.
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they will do clustering and consolidation in central and latin america in cable. what he picked up with lilac was orderly go and chile. -- was puerto rico and chile. betty: you think they should go back? mario: of course. in terms of trade, if i were malone, i would not want their currency. that notwithstanding, they will figure it out. betty: what assets do you think he is looking for in europe? mario: malone looks everywhere. he only has $13 billion for himself. he is being careful. on the other side, discovery, which he has a fingerprint on, bought euro sports. i like that. there is a lot he could look on. his goal is content and distribution. betty: you want someone to buy ?ompulsory -- to buy compari whatever works.
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their products are globally consumed. there are a lot of companies in the united states that are bargains. we are talking to mark, that is why we are focusing on europe. betty: the sabmiller deal, a huge deal. you think there will be more consolidation in the beverage market? you don't drink beer? on occasion. the growth in china and india, they are good at consuming. mark: can i? mario: please. mark: can i get a question and in the wake of the pair's terror attacks last friday. you are a buyer of european stocks. they are at the highest for three months. last fridayke
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in paris, deter you as a buyer of european stocks, or not? mario: we don't look at it as european stocks. we look at it as investing in companies with an approach on the global marketplace. i flew to london, the first flight out of new york after 9/11. that was a terrific buying opportunity. what is a company do, how do they position themselves, the cash flows, and what am i paying? if the market goes down more than it should, you say i want to own it. the european market continue to outperform the u.s. market? generally, will it continue to outperform by double digits like this year? mario: you may want to make me a general, but i am a private. i look at the private market value. i am looking at stock specific spirit someone else will answer that question. go,y: before we let you
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mario -- we don't want to let you go, but before we do -- mario: i will see you on december 4. betty: getting back to media. jo malone and charlie, what will they do with their wireless aspects? what you think? mario: it opens up a very terrific spectrum. you have a reverse. that is where our interest is. what charlie ergen will do is up to charlie. betty: will you bid in the next auction? mario: i have bid in every auction since 1993. betty: will you bid on this time? mario: i cannot comment on that. we were outbid materially a charlie ergen in the markets last time. betty: we'll leave it there. mario: i'm delighted to be there, but don't ignore taylor
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swift. she started as a country western -- betty: why would i ignore taylor swift? mario: one stock was the ryman. it was the only one that is a terrific discussion point. we will do it another time. betty: they give for joining us for the european close. mario gabelli. mario can put taylor swift together. more ahead on the bloomberg "markets." close.opean one bank is attempting to make a comeback after being dealt out during the financial crisis, that is next.
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♪ welcome back to bloomberg "markets." london and new york,
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this is the european close. i am mark barton with betty liu. the first day of trading. ipo day. 3.4%. a dutch lender was bailed out by the government during the height of the financial crisis weary they sold 188 million shares in its ipo. bloomberg spoke with the abn amro chairman and chief executive in amsterdam. that out ofe to see 2 banks in shambles seven years ago, we have re-created a very solid and successful bank. equity,ital, return on and investors. that is why we were able to successfully ipl abn amro. >> can you tell me about the process.
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what were the main struggles that you encountered? bethe old abn amro had to split up. it was a technical, legal, complicated issue. they had to be split up from brussels. that took about two years. we then had to merge the two elements into a new bank. .e finalize that then the dutch economy went into a recession. it was bumpy. we are not oute, of the woods. the dutch economy has a strong recovery. the gears are returning 13% on equity, and nice percentage. we are well capitalized. i am happy we are here now. >> you just came back from a road show that you described as a school trip. what have you been telling investors in the u.s. and europe
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about the shares of abn amro? >> that we are a solid bank. will bence sheet modest. we are well capitalized and able to pay good dividends and may good returns. that is the story investors like. they like a solid bank with a good return on equity with high dividend payouts. was another discussion about a scandinavian business model. is that really what you are looking at as a business model? >> we are looking all around the world. i think we must especially build on our own strengths and qualities. her example we have a large private tank, which the scandinavians don't have. we have a long tradition in trade finance, which we can expand on. i think it is best to look at your own strengths and exploit them, rather than looking at someone else. are you said that mr. issa
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bloom isn't here? >> he must be very busy. i saw him yesterday. he was pleased with the progress we have made. >> are you happy with how it is going so far? >> yes. mark: with the abn amro chairman. european ipos this year have risen from the first day of trade on average through today 17%. they have lifted from the first day through today, have fallen by 2.7%. .sian ipos have risen by 67% let's talk about the s&p. is it on track or its best week in over a year? that seems to be gaining traction is square. high of theour
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session. we will get to abigail doolittle for more on the company movers. abigail: a great day for retail. suntrust says it's a quality third quarter beat, and guidance should be conservative. the stock is having its best day since january 20 15. lululemon, the commentary around the street for nike's use of cash. making what would have been theer off buying lulu over $12 million buyback that was announced. it could be a pretty for paris for lululemon, considering the selling pressure over the last six months with the stock down .7% urban outfitters, after posting a disappointing quarter this week and announcing the purchase
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of a pizza chain, is rebounding abercrombie & fitch feed. the stock is down 30% year to date. more ahead, mark, including -- the big one. the battle of the charts. ar investors ready for december rate hike from the fed? i have 2 very important gauges of volatility. that is up next. stay with us. ♪
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♪ betty: you are watching bloomberg "markets." the european close. it is time for the global title of the chart. it is taking twitter and social media by storm. in newsenthal joins us york. mark barton is still standing by in london. he is ready to give us his charts.
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joe, you go first. dovishrio draghi made comments reiterating december looks unlikely. the german two-year yields have gone into negative territory. they are sensitive to policy, down -0.389. they are nothing compared to swiss two-year yields, yielding -1%. an extraordinary gap that shows how far investors will go for safety giving the swiss one year to hold swiss government debt. betty: is that part of the inflationary pressures in germany are not quite as bad? inflation is no anywhere that people see, so they are not worried about hedging for inflation. betty: mark? ready for avestors
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december fed rate hike? we will look at measures of volatility. america merrill lynch move index measures price swings in u.s. debt. earlier this week, it fell to the lowest level of the year. abnormal two charts. 2 for the price of one. market risk index measuring volatility across equities, rates, commodities, and currency. i've drawn a green line through anything above zero, showing more relativity than zero. normal. look at the last month. volatility has been little changed from where was in september and it reached its three and a half year high. that leads to the question, are finally succeeding in their methods of communication. there is no volatility?
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joe: one of the big criticisms of janet yellen was she is failing to communicate. if you look at the market, the market does not seem particularly worried. mark: betty, go for it. drumroll. betty: thus the only thing that mark wants to hear. mark wins it today. he has 2 for the price of one. joe, you forgot to turn off your appointment reminder. joe: somebody show me how to do that. mark: and also, joe did the chart that he was going to do two days ago. like i did yesterday. betty: mark, walkers through how the european markets closed for the week. mark: four days out of five, the highest in months. quite again when you consider what happened in paris last friday. make things to watch out for.
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data on manufacturing and services may highlight the region's resilience to a slowdown in emerging markets. figure comes 10 days before the ecb is expected to expand its stimulus program. david cameron unveils his defense review. the u.k. will spend 1.9 billion pounds countering extremist use of the internet. we have a lot coming up, including next week, mark, it is black friday. we are going to have a lot of numbers. i smell more charts for battle of the charts. have a great weekend. ♪ you used to sleep like a champ.
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>> from bloomberg world headquarters in new york, i am scarlet fu. >> i am alix steel. mali, stormed a hotel in taking dozens of hostages. at least 18 are killed. the latest on the attack, and who may be behind it, coming up. nike announcing a buyback and a split. scarlet: mario draghi vowing to do what it takes to spur prices higher. we want to start with the market check with julie hyman. are we getting the volatility? julie:


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