3:00 p.m. in london, and 30 minutes into the trading day. from london, i'm guy johnson. welcome to "bloomberg markets." this is the picture stateside. stocks down a touch. the real story continues to be the action we are seeing in the bond market. u.s. 10 year is circa 2% at the moment, down by another two bits. wherelar story in europe, equities aren't doing too much. ftse is down, but not by too much. we are watching closely how the situation in italy develops as we start to see a more positive picture developing from a bond market point of view, but what else do you buy? feels very much the mirror of what is happening stateside, though not a big move either way. the moves in some of the peripheral bond markets are worth paying attention to.

let's continue with these market themes and try and understand where we are this week. u.s. stocks fluctuating. i think we are building up to the payrolls. treasuries continue to attract a bid. we are watching the data. there's not as much now, but there will be more later this week. we saw the weak pmi's. italian tenure debt briefly going negative for the first time since the coalition was formed. ,ark cudmore joins us now normally based in asia, now here in europe, for a take on what is going on around the world. you are more bearish than you were last week. why the change? i've met a number of clients for one-on-one talks, and i think they are hearing the bullish arguments out there. none of them seem to be overly compelling.

think the two main hopes of the bulls is that ultimately there will be a trade deal. i think that argument is not very strong because i think the longer is trump the only person controlling these trade talks. i don't think china once a deal unless they can be seen to visibly win the negotiations. the other thing the bulls are hinging their hopes on is the fed. since 2000,fed we've had two large recessions, and it didn't stop a recession coming. they don't have the ammo, and rate cutting is not stop a recession when the economic cycle turns anyway. guy: so a recession next year. mark: i think a recession will declared later on at

the end of this year, start of next year. mark: if you are donald -- guy: if you are donald trump fighting reelection, the lesson you want is a recession. that's why he's putting pressure on the fed. how else do you avoid a recession? mark: something you've mentioned is the idea of trying to push through extra tax cuts. that kind of makes sense. i think there are hurdles to that happening. my worry is it comes through too late. data deterioration in the u.s. and globally has been extra near the last couple of months. i don't think officials in the u.s. have really realized it. there's a bit of an idea that it's not that bad because of equities, but equities are trading off the fact that bond markets are trading off of the recession that coming. last week i kind of gave a pitch in new york. whether the top comes in july,

august, september, i couldn't say with any conviction. i think equity markets will fall when he percent to 30%, but when the top will come i don't know. now after seeing the data, we might have seen the top yesterday. if you gave me a 50-50, i would say the top was yesterday. guy: so where are you looking? mark: probably em duration. guy: how does that protect me? mark: in the initial phase of risk off, i think the odds are you get a little bit of pain in em, but ultimately people realize the structural imbalances aren't in em that there were before. actuallying system is much more concentrated than the u.s. the real financial problem will again be in the u.s. guy: where does that leave europe? mark: kind of permanently disappointing.

that they are planning to provide more easing and will probably go towards qe again. guy: if the fed doesn't have the ammunition, the ecb really doesn't. mark: no they don't. i thick the plan would be pray and hope. guy: that's not realistic. if the u.s. is going to deliver fiscal, is there any hope that europe delivers the fiscal. , if you areermany not bothering -- if you are not borrowing now, when are you borrowing? now is the moment. is there any realistic prospect that fiscal is going to rescue europe? mark: certainly that is the argument, that german fiscal stimulus will come through in the next year. there are certain people that buy that. it is notl, i think going to come through next six

months. it is not going to come through in time to change the negative growth picture. guy: the governor of the bank of england mark carney says global trade tensions have increased downside risk. kind of sounds obvious to me. ecb policy makers see no reason to rush into a july rate cut. you say that is already too late. mark: one of the things most therent last night is that brexit story is getting a little bit tedious, but everyone at the story is like, what is the bank of england doing? is the u.k. and emerging-market are developed market now? the only reason they should be hiking rate is if they are in emerging-market and they believe they are really running their currency. guy: they are talking about the fact that the risks are reasonably balance between a rate cut and rate hike. mark: that's because they not sure what they are. guy: but i don't think they know what the outcome is. mark: that's fair.

guy: if you are trying to solve a problem but don't have a massive piece of the jigsaw, it is pretty hard to give an idea. mark: but given the growth data and the risks in any normal developed market, you would be easing policy. that would be the. next move. i think the bank of england -- that would be the next move. i think the bank of england are not sure. do we need to defend the currency? a leveraged economy with a large current account deficit, and they are worried about the currency. that sounds like emerging-market. that's why there's confusion. guy: that make me feel so much better. [laughter] guy: final quick question. as you look at what is happening right now, the delta on the data is getting pre-bad, particularly on the manufacturing -- getting pretty bad, particularly on the manufacturing side. when does that bleed over into services? mark: all the economists were waiting for the g20 to see how

that deal worked out. unless you get concrete measures over the next couple of weeks, they have to start slashing their forecasts. that means equity strategists can go against their economists and slash equity forecasts. then that will start feeding into the news, into the headlines. unless we get a real deal on trade where we remove all tariffs, i think that will start feeding through into the mainstream press, and that will change the sentiment. tariffs, i'llll be wrong, but we need to remove tariffs soon. guy: mark, thank you very much indeed. mlivcudmore, bloomberg managing editor. european leaders theoretically are back in brussels trying to break the impasse over who will be the next leadership of the european council, the european commission, the ecb, etc.

bloomberg's maria tadeo joins us live from brussels. has the main meeting even started yet? maria: well, it hasn't. we've been here for three days. we saw a record marathon meeting, 19 hours. nothing came to a conclusion that day, but we are hoping when this meeting does get started after being delayed for three hours, we will get the final package. the new replacement for mario draghi, for jean-claude juncker, and so on. but we are hearing now from a number of diplomats is that christine lagarde has gained momentum to replace draghi at the european central bank, but that is based on the other condition that angela merkel gets to get a german at the top of the european commission. that would be her defense minister. , and that will have to be approved by the european parliament.

what is key here is that christine lagarde's name is gained momentum over the last hour. there seems to be some support within those big european leaders behind the scene. guy: is there any concern that she doesn't have central banking experience? is there any concern that she's a lawyer? good: that's also a very question because if you look at the european central bank, if she does become the next mario draghi, that would be seen perhaps as someone who does not have experience in a central bank, who does not have experience in monetary policy. we frankly don't know if she would qualify as a hawk or a dove. but where the market is reading in hubert would not be hawk.- not be an uber about athis question is central bank becoming increasingly politicized.

guy: in terms of all of those pieces falling into place, is it likely? what do we know about the resistance to this plan becoming a reality? who is resisting? just give us a sense of the competing ideas that are out there to this plan. maria: two things to keep in mind. the list that we now have on the table, at this point it is not official, but the names are completely different to the names we got yesterday. we know the names from yesterday would not fly. the european christian democrats made it clear. angela merkel encountered a lot of pushback from her own political group, and that meant today they had to reset. that's why we've come up with a whole bunch of new people who were not even in the running yesterday. it has completely changed in 24 hours. the key here is that when european leaders come out of the summit tonight, they will

believe they have made the right decision. that when they have put it to a vote in the european parliament, it will fly, and that is the end of the story. political convention will tell you you do not put a package like this if you are not sure you will get it through the european parliament. guy: maria, thank you very much indeed. bloomberg's maria tadeo joining us from brussels. we will bring you more news as we get it, get back to maria maybe a little later in the program. let's check the bloomberg first word news with viviana hurtado. viviana: russia once all side of the iran nuclear agreement to do their part. foreign minister sergei lavrov to keepraging iran their agreements, and says the u.n. should offer iran relief from sanctions. hong kong cleaning up after theoric protests left

legislature in ruin. speeding up efforts to open up its financial industry to overseas competitors. life insurance companies will be allowed by 2020. conger froman alexandria oak osseo cortez -- congresswoman cortez is ocasio taking part in a congressional visit to facilities in texas where undocumented migrants are being held. investigations are underway. 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 viviana hurtado. this is bloomberg. guy: thank you very much indeed. just a bit of breaking news, saudi arabia -- this is a two-part bond, i think an eight and a 20 year tranche, has 3 billion euros. interesting in the light of what else we are talking about at the moment, and that is what is happening with opec. what we've got coming up for you, iran's oil minister speaking exclusively to bloomberg on the sidelines of the opec plus meeting. we will be live in vienna next for reaction. this is bloomberg. ♪

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guy: 60 minutes past the hour. you are watching "bloomberg markets." i want to come back to these mark carney comments, the bank of england governor, made over the last few minutes. the pound is trading down on these. "the spillovers from trade and brexit may be intensifying. the trade wars may be far more damaging than expected." remember, the bank of england currently sees the risk to a hike and a cut roughly balanced at the moment. these would start to indicate that maybe the bank of england is moving towards the direction of a cut. that would bring it in line with market pricing, and to be honest, most central banks around the world. let's figure out what else is going on in these markets. abigail doolittle is here with the details. abigail: small the moves mainly for -- small moves mainly for

global equities indexes. investors taking some chips off the table, but exemplary of the smaller moves, the nasdaq just down fractionally. the s&p 500 trying to flip higher. the ftse 100 -- we will see if it can join the ftse 100. the shanghai composite down just fractionally taylor:. -- just fractionally. where we have a little more action in the u.s., delta airlines shows the airline popping higher by 3.5%. they did announce a second quarter preliminary range of $2.35, a couple of percentage points better than what they forecast. we do have a rally here for delta airlines. it is not just stocks we have been watching.

we've got lots of fluctuations for oil, commodities and bonds. lows,down near session down 2.7%. perhaps consolidating the rally we saw in june. take a look at bonds. we have stocks rallying and bonds rallying. there is reason if we go into the bloomberg to think that the big rally we seen for bonds more recently could back off a little bit. this is a one-year chart we've been watching quite frequently. last year, the 10 year yield around 3%. then on fourth quarter volatility, investors seeking the safety of bonds. take a look at this, it does appear that at some point we could see the 10 year yield back up 2.3%, whether it is on the fed, the jobs report, or some other macro factor. guy: 20 dusek about. payrolls -- plenty to think about. payrolls coming up friday. abigail, thank you.

joining us now from vienna is bloomberg's annmarie hordern. iran's oilough what minister had to make of opec. annmarie: we talked about a number of issues, including those sanctions, the u.s. trying to bring them to zero. we do know that they are still exporting. . he wouldn't name names or give numbers. he says that by doing that, he would only help the u.s. determine what exactly they are trying to do, but they are working to still continue to export oil. when it comes to opec, asked him his thoughts are. they are exempt from these cuts. we are seeing these go longer, deeper for longer. they started in 2016. now they are going into next year. take a listen to what he had to say.

bijan: yes, i think they can do. annmarie: they need to cut more. bijan: many more. toy need to cut saudi arabia less than it is cut. when you look at the supply and demand side of the story, i think the key was yesterday, talking about u.s. shale. he said at some point it is going to peak and decline, and those with a stake in the market need to adjust. does that mean we are going to have longer cuts until u.s. 2030?peaks at year i think that was key coming out of this meeting. ede fact that they sign this charter of opec plus means it is the world against the u.s. guy: yes. it is interesting, you wonder which one is the swing producer now.

you used to think it was saudi arabia. i'm not sure that is the case anymore. the big company in saudi arabia is aramco. we now apparently are talking about the ipo in back on. what details do we know? in some ways we've heard this all before. annmarie: exactly. we've heard this story before. headquarters, they were saying the aramco ipo is never shelved. it was put on hold. you also had that huge bond oversubscribed offering of $12 trillion that we saw this year. so he says that was it, it was just on hold. but look at the challenges they have ahead. one is getting to the $2 trillion valuation they say they are worth. two, with oil prices, they need to make sure they have demand for it.

three is where they are going to list. mohammad bin salman wants to go to new york, but new york has a lot of regulation. i think it will be tough to get this out in 20 or 2021. guy: bloomberg's annmarie hordern joining us from vienna. thank you very much for joining us. this is bloomberg. ♪

♪ 10:25. that means it's time for a bloomberg business flash, he at some of the biggest business stories in the news right now. bitcoin is in the red again after a roughly 60% drop yesterday. most other large digital currencies are also under pressure. bitcoin is still up around 180% for the year. more's push to deliver cars in june appears to have had an impact on europe. data on european car sales is trickling in, and the numbers point to the electric carmaker

gaining ground in markets such as norway and the netherlands. j.p. morgan chase is expanding its use of artificial intelligence. bloomberg has learned the bank's asset management unit will invest in emerging and established machine learning statistical arbitrage headphones -- statistical arbitrage hedge funds. that is your bloomberg business flash. but we've got coming up for you, we are going to be talking about unemployment versus underemployment. we will take a look at the economic picture in the united states and the labor markets. that story up next. this is bloomberg. ♪ xfinity mobile is a wireless network

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xfinity mobile has the best network. best devices. best value. simple. easy. awesome. click, call or visit a store today. ♪ from london, i'm guy johnson. this is "bloomberg markets." let's catch up with the bloomberg first word news. here is viviana hurtado.

viviana: it looks like nasa successfully tested the emergency abort system of orion spacecraft. the orion is supposed to take astronauts back to the moon. imf managingy make director christine lagarde the next president of the european central bank. her name is one of the key pieces of the latest slate of candidates for the eu's top jobs. since sunday, various officials have been wrangling over the job. tanks on trump wants all for the july 4 celebration, it looks like he has them. a few hours from now, it is the u.s. versus the u.k. in the women's world cup semifinals.

the second semifinal is tomorrow between sweden and the netherlands. the winners face-off on sunday. 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 viviana hurtado. this is bloomberg. guy: thank you. by most measures, the u.s. labor market is at or very close to full employment. 3.6% is the number now, the lowest figure since 1969, yet some economists point to underemployment is a sign of the true malaise of this economy. barry ritholtz joins us to talk about why he thinks the u.s. labor market isn't really that healthy. i guess we are talking about unemployment versus underemployment. barry: that's exactly right. when we look at the usual economic backdrop to a full employment situation, we usually

see things like wages going higher, quit rates where people voluntarily leave one job to accept another, consumer spending and consumer confidence , and none of that really looks like a full employment situation today. barry: and what is the -- guy: and what is the impact of that on the way the fed is going to react? barry: i'm not sure it affects the fed. this is an outlier position. the fed has been discussing things like full employment and low inflation as their basis for keeping rates flat, not necessarily lowering them. i had an extensive conversation dartmouthfessor at and a former member of the bank of england's monetary policy committee. he thinks unemployment in the united states can fall by another 1/3, and thinks the fed

should cut rates 50 basis points. that is a giant cut, with markets at or near record highs. guy: i guess that is the point i would like to make. this focus we've had on inflation and the concern around inflation has failed to materialize. his point is that the reason for that is that jobs are being created, but not strong enough to create a phillips curve. i guess that is why we feedback into the fed. it reduces some of the upside concern the fed has. significantly lower than where normal economic models would suggest, and the fed has basically over tightened at this point. barry: i don't know if they've over tightened, but traditionally a huge source of inflation comes from wage push through to the consumer sector. there is greater and greater competition for laborers. wages typically rise. workers take that money and go spend it, and the next thing you

know, inflation has gone higher. we don't see anything remotely like that situation and the current circumstances, so the pressure on the fed to tighten, especially in people like danny blanchflower's view, is to cut to-- is to produce a generate inflation. i'm not sure what is dampening the demand for new workers. it is just a more complicated labor situation these days. guy: if that is the case, what kind of rates change anything? barry: i don't know, other than potentially staving off a recession 12 to 18 months in the future. we've had an inverted yield if youor a full quarter use the full year and the 90 day. when you have three consecutive months of inverted yield curve, we have a pretty much perfect

track record forecasting recession 12 to 18 months away. so if the fed lowers rates, maybe they will steepen the yield curve and potentially stave off a recession, although that pretty much is anybody's guess. guy: the trickle-down effect from interest rates, the argument is that the lower rate of qe hast effectively been regressive, not progressive. helped the upper income bracket rather than lower income. what would be a more effective tool in targeting that bracket? barry: absolutely correct that qe helps capital, not labor. has beenl policy missing both here in the united states and abroad. look at what took place following the financial crisis in the united states. a very modest stimulus, temporary in nature.

extension of unemployment benefits, extension of taxes for a couple of years, but not the sort of giant stimulus that we usually see coming out of a big crisis. mary that to what took place in europe and the u.k., with a very austerity.mbrace of that lack of fiscal stimulus over there and in the united states to some degree has led to the rise of right-wing populism in europe and the u.s. there are all sorts of ramifications by the failure to enact a traditional fiscal stimulus. if the president wants to get reelected, we are heading towards a recession that, in order to avoid that happening, he needs to deal with this. if you look at his base, he has traded a lot on the idea that

the lower to middle class thanks really -- lower to middle class angst really works for him. what is the policy mix that the president needs to enact? he's putting pressure on the fed. what else does he need to do to create the right environment to get himself reelected? ultimately that is how this question is going to be solved, through the ballot box. barry: the last tax idea that was floated was indexing capital gains taxes to inflation. that is very much great for people like me. that is not great for the middle class. that is a top 10% or even top 1% tax break, and the negative ramification of the 2017 tax cuts was that it benefited the wealthy and not really the middle class. so if president trump were asking me what should i do to get reelected, i would tell him a big middle-class tax cut, do not worry as much about interest

rates as he should worry about fiscal stimulus, and to cut a deal across the aisle to enact a $2 trillion infrastructure bill. redo the highways, bridges, tunnels. clean up airports. united states infrastructure is in desperate need of a refresh. this is such a no brain winner that every side wants. i am absolutely perplexed why this hasn't been done. we are coming up on two years. i don't get it. i am completely lost in this. guy: yeah, you wonder how much of this infrastructure is shovel ready and would have an impact on the 2020 elections, but we will see what happens. thank you for joining us. let's turn our attention to where we are seeing protests, and that is hong kong. hong kong remains on edge after that historic night we just had. teargas, vandalism, breaking into the legislative building. bloomberg's david tweed filed this report from the scene a

little earlier. david: hong kong's legislative council seems like some sort of post-apocalyptic movie when you consider the damage that has been done here by this group of extremely aggressive protesters. just over here you can see the side entrance of the legislative council. you can see they have actually smashed through these windows. it is really quite extraordinary what they've done. further around, there must be about 12 windows that have been smashed in. if i can show you also exactly what's been going on, here you can see the sorts of weapons that they were using to batter through the windows. these are the sorts of hats they've been using to protect themselves. they've been using masks to cover their faces, so the police haven't actually arrested. i want to show you something down here that is really mind blowing. these are protesters who came and were so organized, they knew form aey could

fence here and rip off these metal slats, rip them entirely off-the-wall, and then use these as rams going in through the windows. it is really quite extraordinary when you consider what has happened by this group of protesters who all attacked the building, went inside and trashed the place after the police withdrew. the big question being asked now is why did the police withdraw. was it a tactic by the government to say that they could now blame the violence of the protesters and try and swing the public mood away from any sympathy about these protesters demanding democracy for hong kong? guy: david tweed reporting from hong kong. great reporting there from the scenes of the violent protests we saw late last night, around this time yesterday. on the bloomberg terminal, feeling bearish.

the u.s. and china have reached a trade truce, but we haven't exactly seen enough detail to shake one of the favored trades. that has we can -- that has weakened the dollar. you can find all of these charts at gtv on your bloomberg. you can save them. there's some fantastic work that goes in here. gtv . this is bloomberg. ♪

♪ guy: live from london, i'm guy johnson. this is "bloomberg markets." automakers in the united states reporting sales today for june and the second quarter. last month will show the strength of the summer selling season. are consumers flocking to the show rooms or our sales continuing to fade? here with us is david wells. let's start off with the big picture. his demand softening, stabilizing, or picking up? it: it is softening --david: is softening. this is a continuing narrative

we've seen all year. even fiat chrysler, which had an incredible month with the ram ram,p truck, up 2% for the but a lot of it's other models down. consumers aren't running away from showrooms, but bloom is off of the rows here, and that's why auto stocks have struggled this year. it is just not a great market for vehicles at the moment. everybody can make a lot of money in this market, but there's more sales going to rental fleets. there's a little bit of discounting going on, and sales are softer. not horrible, just softer than the past couple of years. david: but the narrative that it is all about trucks continues, right? guy: that's right. i was looking at toyota's numbers in the lexus luxury sedans. some of them are off 30% to 50%. it is all about trucks. how are they doing that?

they have a very nice new ram pickup truck. no question about it. great style, luxury amenities in the cabin. then they have this truck called the classic that sells for $6,000 less, plus has some deep discounts. selling ae cheap truck to the contractor and something very nice to the urban cowboy, let's call it. that is making life very difficult on general motors, trying to get production up for gmc and chevy pickup's. the ram is kicking them at the top and bottom of the market. floor, the big profit and right now fiat chrysler is getting a lot of it with the ram pickup. guy: can i ask how this fits into the wider narrative of the trade story? we in europe are terrified that the president is going to impose auto tariffs. how much affect would auto

tariffs have on the narrative you've just discussed with us? david: if you start to put tariffs on vehicles coming from europe to the u.s., it is really going to hit luxury buyers in a market that is already softening. it is just going to hurt sales more because you're going to have automakers trying to recoup some of that with pricing, and right now vehicle affordability is already an issue. last month we already saw vehicles hit near record prices, almost $40,000 for your average new vehicle. that is very expensive. interest rates are rising. that is adding to sticker prices as well. and credit even tightened up a little bit. you're talking about a market softening for a variety of reasons, so if you're going to try to have car companies stuffing tariffs into sticker prices, it is going to be difficult and it will hurt sales. it is just going to hit the bottom line, and that will hurt the german luxury brands the

most because they export quite a number of vehicles to american luxury consumers. guy: it was interesting to see the airbus-boeing story feeding into that. bloomberg's detroit bureau chief david wells joining us. we will get more later on. tliv is running to get the latest on these out of figures. it's time for the bloomberg business flash. let's talk about the governor of arizona, firing back at nike. the sneaker giants has pulled fourth of july sneakers from stores because they had the betsy ross flag that some thought was offensive. now the arizona governor doug ducey has ordered the state to withdraw financial incentives. it was planning to open a factory near phoenix. he says the company denigrated the nation's history. it would be the biggest ipo this

year. bev --r-busch at v seekingbusch ab be a listing in its asia-pacific brewing on july 19. oilfield services provider weatherford has filed for bankruptcy. they are struggling with in a billion-dollar debt load, while energy producers are looking for ways to cut costs. that is your bloomberg business flash. still ahead, what have we got coming up for you? analysts are expecting tesla to report that it delivered around 88,000 vehicles in the second quarter. will tesla be able to make good on its expectation of delivering up to 400,000 cars in 2019?

if so, what does that mean for margins? we will talk to an analyst about this in the auto sector more broadly in the next hour. this is bloomberg. ♪

♪ guy: time now for futures and focus. scott barrow joins us in chicago from the cme. there's a lot of focus on the fact that opec/opec plus is going to be extending its output cuts. however, the bigger story over the last 24 to 48 hours is some really weak manufacturing pmi's from around the world. as you talk up there in chicago and try to figure out which way the price is going to go, which of those factors is the more important? scott: in the short-term, i think it is the lack of global demand, the weakness globally in

economies around the world. that is really keeping a cap on oil here. we saw the announcements with opec/opec+ almost in jeopardy of not happening at all. then it did happen. what happened was we saw oil run-up ahead of that, and now the focus squarely is back on economics, bottom line. guy: so where does that take us? what is the expectation of where prices go from here? oil has really struggled to make any headway. we've come up a long way, but i am wondering what the next impetus to the upside could be. have we peaked out? scott: barring any kind of geopolitical risk, unrest in the middle east, or anything like that, yes, i do think we have peaked out. the number we were approaching was not only a psychological barrier, but also a big resistance area.

it honestly would not surprise me if we see oil prices back down around $52 if we continue to see the same weakness we seen through global economics coming out over the last weeks and months. guy: great to be with you. scott bauer joining us out of chicago. let's talk about our stock of the hour now. u.k. money managers have been in the news recently. today it is the term of jupiter assets management, losing the head of its high-performing 10 billion euro fund after five years. he is launching his own fund and could manage some more of jupiter's money. abigail doolittle is here to examine the impact. this is a reasonably heavily shorted stock. it's been under pressure today. i guess the idea that superstar money managers don't make any difference is being put to the sword a little bit. abigail: you're absolutely right. the share is down about 8%, on pace for the worst day in's

twice 16. the reason -- worst day since 2016. the reason that is being put to the test, they have had outflows over the last few years of about 6 billion pounds, but alexander alexander darwa l leaving really doesn't help their situation. you can see their outflows last year. that is probably why this is hurting the stock so much. on top of that, the idea that he could attract some of the current clients to his new company once it is up and going. guy: so what is he going to be doing? give us a sense of what this guy is going to be up to. abigail: his new company is devon equity management, and it is still in the regulatory process of getting the approval to get up and going. whether or not it is going to be

similar to what he was doing at jupiter fund management, you would have to think he would probably take a play out of that book. is that he will attract some of jupiter management's assets to his new company. guy: we will leave it there. abigail, thank you very much indeed. leave as darwall to head of strategy over at jupiter. coming up, the ecb meeting to determine who is going to get the top jobs within the european union, the council, and ecb. we will take you back to brussels to get the latest. that is coming up. this is bloomberg. ♪

>> 30 minutes left in the

european trading day. from london, i'm guy johnson. this is the european close. let's walk you through the action. this is the price action as we have it. european stocks are up by about four tense of 1% -- .4%. , the bondive names proxies are doing well. is doing well and the dollar is trading up right here. we have seen a bit on the bond market. take you to the -- took you to the italian two-year early on, and it was negative. a huge bid being attached to bonds right now. it's a similar story in the united states with treasury markets on the tenure basis, sub 2%. we are trading 199. over the last 10 minutes, the bond market in the states caught a big bid. the bloomberg dollar index is trading south, not by much.