Skip to main content

tv   Bloomberg Markets Americas  Bloomberg  July 8, 2019 10:00am-11:00am EDT

10:00 am
vonnie: it's 10:00 a.m. in new york, 3:00 p.m. in london, and 30 minutes into the trading day in the united states. from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." vonnie: apple down on a downgrade from rosenblatt. rates expertto a in just a moment. the lira is now 1.6 weaker in today's sessions, having paired 5.71loss it's, trading at after president erdogan dismissed the central bank governor this weekend. guy: here in europe, let's take a look at where equity markets are trading. we've been keeping a firm ion
10:01 am
what is happening with deutsche bank. stocks really, haven't strayed too far from the flatline today. we initially rose, then started to fade a little bit. the stoxx 600 down now only 2/10 of 1%. deutsche bank initially rallied around 5% this morning. this afternoon has really completely turned around. the stock is now trading down by nearly 6%. this was not the reaction, i suspect, that those in deutsche bank were really looking for today. this is not been a huge vote of confidence in the restructuring plan deutsche bank has put out. however, more of a vote of confidence in the new greek government. ,reek bonds continue to rally falling by another six basis points. that's get back to that big story on what is happening within the banking sector. --tsche bank glow very
10:02 am
deutsche bank delivering its biggest turnaround effort yet. it will exit its equities business and take a restructuring charge of 7.4 billion euros. 3 billion of it will be in the second quarter. here to discuss all of this is bloomberg opinion's marcus ashworth. what do you make of the market reaction this afternoon? initially the stock popped. now it is dropping pretty hard. marcus: i think most analysts have worked out that there is nothing fundamentally changed to their business plan, which is unfortunately not good enough. there's no real cut to the core business in europe, which is still incredibly weak, and not making any money. they are not likely to make any money, either. they are not guaranteed success in boring old, box standard banking. is in recession or, at
10:03 am
best, flatlining. the reality is deutsche bank has got a lot more to go to turning the corner, i'm afraid. vonnie: can deutsche bank withstand all sorts of price action in its shares and its bonds while this restructuring is going on, or does it need to stem losses too? marcus: you can look at the but youefault swaps, always look at the equity price. can it survive? i don't think people expect to -- don't expect europe to let deutsche bank fail. i'm not worried as much about bonds as i would be about the equity price. growth inneeds economies around the world, particularly in europe. that is a long, distant
10:04 am
prospect, i'm afraid. i spoke last night to the cfo of the business. this is what he had to say about where the growth drivers are going to be. >> corporate banking will probably be the greatest growth driver in the franchise as we see it going forward. marcus, you don't believe that they are going to be able to make sufficient money in those areas to compensate for the aggressive action they are going to be taking. did they have any choice? marcus: no, they had no choice, unfortunately, because they tried to be the goldman sachs of europe. unless you are fully committed and are getting those big m&a and ipo things that make them the real money, they tried to go for hedge funds, but the hedge fund business is not lucrative
10:05 am
enough, that leaves them with corporate. what makes them think they're going to make so much money out of corporate now? they can reallocate some assets that were perhaps wasted in the investment bank, but it is not all of a transform. otherwise european banks would not outrageously underperform american banks. vonnie: does this mean deutsche bank definitely stays solo, or is there the possibility of a merger? is there some outlook for how it will look in a couple of years' time? marcus: it makes it a more attractive position, but still a very unattractive one. at least they are taking some of their poison, but they haven't taken all of their poison yet. at some point they are going to need a capital raise, which they are trying desperately to dodge.
10:06 am
i would think this is a value trap. it is a long outdated option which doesn't look anymore perspective in realizing value just yet, said to say. guy: marcus, thanks very much indeed. bloomberg opinion's marcus ashworth joining us in london. let's get another take on this story. joining us from denver is janice henderson global head of fixed income. when you look at the european banks and try to understand how they will generate money going forward, what do you see? the environment is incredibly tough. the ecb is going to be cutting rates again. the data out of the euro zone economy gets tougher and tougher. how on earth are these banks meant to make any money? guest: well, they are going to make a lot less. there's just layers of issues here. i think we talked about the deutsche specific issues, but
10:07 am
on top of that you have weak economic growth. europe is more bank centric, so you can't really see the competition waning at all. occurs you will likely see the ecb redeploy the same bag of tricks, and that means more negative interest rates, the flatter curve. i think the profitability picture is going to be a challenge not just for deutsche, but all european banks going forward. guy:guy: so what does european bank credit look like right now? a good investment? marcus was talking about it may be revealing a value trap. what does it look like from a credit point of view? many of these banks are systematically important. i think what you are seeing is some stability in the underlying cash flow. from a credit risk perspective, i don't get looks like a massively improving story, but
10:08 am
again, this is more of a an earnings and equity and long-term growth story to me. i still believe that banking in europe and across markets still have some value, although in some areas probably getting a bit stretched. vonnie: what do you make of christine lagarde as the next ecb chief? what would it mean for rate in europe's, if anything -- rates in europe, if anything? jim: i think the choice was a good one, first of all. i think it is probably more of the same. for where we are in this economic cycle, that is probably a good thing. she was first to the punch on unconventional policy. remember her beating draghi to that. i believe she will be dovish. i think she will resort to unconventional measures. at first, those are probably going to be the same ones she has seen over the last few years , but if those don't work, i
10:09 am
could see her taking it a step further. i think that dovish mentality we needed from europe very much gets another boost from her selection. vonnie: are there pockets of fixed income in europe that are attractive to janus henderson right now? jim: i think europe is a strange fixed income market. it is not particularly high-yielding. italy looks like it had some very attractive yields. those have disappeared. i think it still probably has a bit further to go, but i would look to credit. as long as you get the search for yield continuing, and i see nothing stopping that, particularly with the policy inflection points we are now looking at, i think high quality isry, high quality credit probably the best place to be. i still think there's value in many european credit names, and that would include those investment-grade and high-yield. did the market mispriced
10:10 am
the fed? you look at the payroll data from friday, relatively strong. we are waiting to hear from powell this week. what message is he going to communicate? what is he going to tell us about what happens beyond july? jim: i think july is certainly a high prep ability. i wouldn't say it is nailed down. i think the market probably did mispriced the fed. a 50 basis point cut in july i don't think was ever probable. when you look at fed inflection points, you tend to need a fairly material weakness, and frankly we don't see that my outside of the industrial sectors. growth is holding up reasonably well. employment growth is still relatively strong. i'm not sure 50 basis points was ever in the cards. when i look forward, you still have to argue that a shallow easing cycle is what we have in
10:11 am
maybe not a robust one is the markets were pricing in. i would think an insurance cut is more likely than any kind of statement that we are heading down a path of easing. vonnie: with the 10 year at 2.021% right now, do we see any movement on that if we get just that insurance cut? jim: i don't think the 10 year moves too much just on a single 25 basis point cut. i think that's what markets have priced in. i think the markets are going to be looking, and we will get evidence this week, how much weakness do we see? are they pointing at global weakness and global trade slow down? if you see some of that really show up as opposed to any reflection on where markets are, which of course are near record highs, i think you will look for clues in the testimony this week to get a read on the future path. to me, that's what is important now, probably not what happens in july. vonnie: all right.
10:12 am
is staying with us. let's check in now on the first word news with kailey leinz. kailey: european leaders are urging iran to reverse its latest decision to breach levels of uranium enrichment. for now, no one is threatening to impose sanctions. iran says it will resume purifying uranium beyond the level allowed in the 2015 nuclear agreement. that takes iran another step closer to being able to build a nuclear bomb. it's an extraordinary downfall for the admiral set to become .he u.s. navy's top admiral for what theetire navy secondary called "poor judgment." leader of the center-right new democracy party has been sworn in as prime minister. mitsotakis posted a
10:13 am
resounding election victory over alexis tsipras. the turkish lira fell after president erdogan surprisingly fired the country's central bank governor. now there is concern that the bank will lower interest rates by more than expected. central bankers that they need to get behind his policies. 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. this is bloomberg. vonnie: thank you. coming up, more on turkey's central bank shock. president erdogan abruptly ousting the central bank governor over the weekend. we will discussed the latest move -- we will discuss the latest moves in turkey. this is bloomberg. ♪
10:14 am
10:15 am
10:16 am
♪ guy: from frankfurt, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." we are just a little into the monday session. abigail doolittle is with us. abigail: starting off the week with a little bit of a risk off tone. the s&p 500 and the nasdaq in the u.s. down for a second day. the s&p 500 down about 4/10 of 1%. the tech heavy nasdaq underperforming, down about 8/10 of 1%. tech the worst sector of the day for the s&p 500 and the nasdaq. the german dax down just slightly. the risk off session really started in the asian session. investors selling that shanghai composite. let's check on a chart we
10:17 am
haven't looked at any while. in yellow we have the shanghai composite, in white the s&p 500, blue the german dax. beginning of the year, risk on rally, all up about evenly. then the shanghai composite really took off, leading the way, at one point up 30%. then i head of the risk off here in may, the shanghai composite falling april. take a look at the decline for the shanghai composite. something to think about tactically, but anyway you slice and dice it, a great year for stocks. dragging today on the s&p 500, downgrades.niper on ell at rosenblatt for apple. tap andngrading both in juniper networks uncompetitive fears. up year, but a bit of a down
10:18 am
day. vonnie: thank you for that. i,ill with us is jim cielinsk janus henderson global head of fixed income. in turkey, the central bank governor was dismissed, another move by aird want to take control over monetary policy -- by erdogan to take control over monetary policy. what looks attractive there to you, or does this make them uninvestable? jim: i don't think we feel a lot of value in those markets. i do think central banks for the most part remain independent, and that is true in the u.s. as well, but i think when you don't have those qualities, it does make investing really tricky. i think you get regime shifts, big jumps in volatility. i don't think you are paying for that at current valuation. in general, that is something i look for in asking myself where to invest. independence to me is important.
10:19 am
vonnie: given everything you said about europe, i, jeanette greece is also not particularly attractive to me -- about europe, i imagine that greece is also not particularly attractive to you at the moment. jim: if you believe in the sanctity of the monetary union in europe, it is probably not that unusual. say there's value in a lot of risk assets today -- to say there's value in a lot of risk assets today i think is a stretch. the mismatch with the performance and risk assets is probably one of the most unusual on record, so i find it more difficult today to look at risk assets, whether it is equities or credit, and say that the explosive part of this rally, the big initial adjustment to the easier monetary policy that i think is coming, most of that has to be done.
10:20 am
it is probably well-deserved. think the idea of not having a policy mistake in this cycle, learning the limits of how far policy can move just by watching the u.s. move, you really never got that whole cycle kick started. that is probably what was leading risk assets to do poorly. i think the explosive rally we've had really across almost everything we look at means that valuations are much more tempered. but again, we see earnings and cash flow at least stable to hold up credit risk and keep it looking pretty good. but if you look a step further and say where has the debt built up not occurred, it's where it was in the last crisis. securitized credit, asset-backed credit. i think relative to the quality you see, there are opportunities in those markets. i think spread and spread product remains in demand. you just have to pick much more
10:21 am
carefully given the strong rallies that we've had year-to-date. jim, i just want to circle back to turkey for a moment and use it as an example. turkey's real yield is circa 8% at the moment, which is quite punchy by anybody's standards. but i hear a lot of people talking about emerging markets and emerging-market credit as being a place you want to go. i assume that is based on the fact that the dollar is likely to dip. do you like the emerging markets more broadly? do you propose people have allocations in that space? jim: i suspect there will be increased allocations. atncourage anyone to look something like real yield when it comes to turkey, given that it is so idiosyncratic, but the collapse in real yields globally is a big story of this year. not only does that help the economy, it is one of the good
10:22 am
long-term indicators of default risk across different segments. that would include both em and corporate credit risks. economies that are able to witness lower real yields, i do think there's value there. i like to em a lot better six month -- i liked em a lot better six months ago. i think people will continue to find value in emd. vonnie: jim, thanks for all your time today. anderson'sus global head of -- janus henderson's global head of fixed income. new greece electing its p.m. with a stock market that is soaring. the banks really driving higher. ahead. that story if you are a bloomberg terminal
10:23 am
user, you can find all of these fantastic charts at gtv . find them on your bloomberg, pop them out, put them into a presentation. . go on. this is bloomberg. ♪
10:24 am
10:25 am
♪ vonnie: it is time now for your latest numbered business flash -- your latest bloomberg business flash. it's been a while since wall street has been the step at about apple. five analysts -- has been this tepid about apple. morgan stanley has downgraded its view of large-scale banks. the group has rallied 23% this year, but a new note cuts the view from attractive to in-line. wereellon and state street also downgraded from overweight to underweight.
10:26 am
morgan stanley is forecasting lower growth for the banks. that is your bloomberg business flash. guy: thank you very much indeed. coming up, greece's new prime minister sworn in and trusted to tackle the problems after a decade long financial crisis. quick look at the european markets. this is where we find ourselves, down, but not that much. deutsche bank has a steep decline this afternoon. the markets not confident in this bank's new plan. we will continue to talk about that as well. this is bloomberg. ♪
10:27 am
10:28 am
10:29 am
♪ guy: from frankfurt, i'm guy johnson. vonnie: in new york, on vonnie quinn. this is -- i am vonnie quinn. this is "bloomberg markets."
10:30 am
jeffreyfund manager epstein appears today in court on federal sex trafficking charges for girls as young as 14. he was arrested after years of accusations of child molestation. prosecutor who agreed to a previous plea deal, alex acosta, is now secretary of labor. british prime minister theresa may is moving to contain the fallout from leaked memos regarding president trump. the investor to the u.s. referred to the president as inapt and the white house -- as house as the white nonfunctional. british lawmakers opposed to a new deal brexit want to stop the next prime minister from forcing a chaotic break from the eu without parliament's consent. boris johnson is the
10:31 am
overwhelming favorite to defeat jeremy hunt. the new prime minister is expected to be announced during the week of july 22. the u.s. women's soccer team will celebrate their world cup victory in traditional style. there will be a tickertape parade in manhattan. -- theyt another lens beat the netherlands 2-0 and france. 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 kailey leinz. this is bloomberg. guy: thank you very much indeed. greece's new central right leader has taken over as prime minister after yesterday's election handed kyriakos mitsotakis a mandate to tackle the nation's chronic woes. mitsotakis: i have an agenda
10:32 am
to create more jobs, grow the economy, and make sure the greek people feel safe again. -- tereus bankk bank's chief economist is joining us now. achieving 4%k that growth in 2020 will be a very big challenge for the greek government. the newgovernment, democracy, has very big issues and a very challenging economic program, but given that as we speak, the economy is slowing 1.6%, it istune of going to be a very difficult task to bring growth directly to 4% come 2020.
10:33 am
well, themably as fact that the europeans are the government will run a surplus for the next few years. do you think greece will be able to run a primary surplus, particularly given some of the giveaways the past government just delivered? guest: i think it would be very difficult for greece to continue for percent growth without any kind of fiscal relaxation. the previous government maintained growth of 1.5% to 2%. in 2018 we had 1.9%. this year it is highly likely of 1.6l have growth percent. if we have a new government that is progrowth, pro-privatization,
10:34 am
pro-private sector investment, i think that they can engineer growth rates between 2% to 2.5%. anything above that benchmark would require some kind of relaxation of fiscal targets. i think there are two ways to achieve that. one is for the government to renegotiate with the europeans the level of fiscal surplus. us -- what to talk wants is tois reduce the surplus to something close to 2%. another may be easier way to achieve fiscal stimulus is not the target, but to change the use of the primary surplus. very few people realize that greece is committed to using the 3.5% towards repaying debt. the problem with that is that greek debt is by and large
10:35 am
external debt. so each year we put 3.5% of gdp into an escrow account that is basically used to repay external debt. what we can ask from europeans is to change the use of that money. for instance, we can advocate to use only 2% for repaying external debt and use the remaining 1.5% to spend on infrastructure projects. if you assume that infrastructure spending has a multiplier of one, that would be enough to move the greek economy from this range of between 2% and 2.5% to something close to 4% for the next two or three years. vonnie: was the market reaction a little premature? we saw an 11 basis point drop in greek 10-year gilts. do we know if that -- 10 year yields. do we know if that is warranted yet?
10:36 am
elias: throughout the last three theour months, i think stock market, but especially the greek bond market, have priced in more possible good news. i think that what is going to happen from now on is for the market to take a breather. there's going to be some profit, but overall, the bond market has performed quite robustly over the past six months or so. elias, what should the european central bank think of this? is this a good develop and for europe and for the political union? elias: i think it is a very positive development, and i think that the european central bank should think about how they should help the current
10:37 am
government to increase the growth rate in the greek economy. there are two ways to think about that. one is that the decline in the level of 10 year gdp's, they ore different schemes different systemic solutions towards addressing the issue in the greek banking sector. that is one thing that can happen. the second is that, given that the ecb is taking about restarting qe, we need to think about how we can use this to help the greek economy. one issue is to allow greek bonds to be included into the qe. the other is maybe we could think about issuing special bonds that can be bought by the ecb, and again be used to finance infrastructure spending. vonnie: lots of great ideas there. thank you for joining us today.
10:38 am
ekkos, chiefs l piraeust at pr -- at bank. coming up, the current environment in geopolitical concerns, and much more. this is bloomberg. ♪
10:39 am
10:40 am
♪ guy: from frankfurt, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." the market is weighing the case for lower rates come about pricing in a less aggressive fed rate cut. bloomberg's erik schatzker is
10:41 am
joined by a special guest. mcvey is head of global macro and asset allocation at kkr. you firmly believed the market was pricing into much fed easing. what do the labor department data mean for the july meeting and fed policy through the end of the year? henry: thanks for having me. i think the market got to dovish on the fed. i think the idea they would do 50 basis points in terms of easing in july is too optimistic. ultimately, the fed sees low inflation, and i think they see slowing growth. the prudent thing to do is 25 basis points. when we were talking ahead of the jobs report, that is sort of where we stood. erik: i think the markets have come around to your point of view. henry: we are playing that out. there are four or five times in history where the fed funds are more than 50 basis points above the two-year.
10:42 am
every time that happens, the fed eases. erik: this is a key point. i'd like to bring up a chart that illustrates this. we can show everyone what's happened in the short run. amazingly, some people may have missed this divergence between the fed funds rate -- here we are, here is what is happening your to date. ,enry: this happened in 1989 1998, 2000 and 2006. the fed was trying to get ahead of the curve. it got bumpy. in 1998, the market ripped to the upside. our view is we are not going to have a nasty recession, but we also don't buy off on the case that we have a big 1998 to 2000 run-up. erik: that's the big question. does this look like 1998? does it look like 2000, when
10:43 am
instead of having equity markets substantially higher 12 months hence, you actually had a major correction? henry: to me, the case that it is 2007, that companies are earning abnormally, i don't see that. probably wouldn't be a bad test case. it bubbled through and maybe -- and made it through, the central bank got dovish, but you issues. corporate ultimately, we think the market has capped on the upside. you won't get anymore multiple expansion from here, but on the downside, you have a protective fed, as well as some of its peers in the global central banks. erik: you now have a new head of the ecb, christine lagarde. not a technocrat. nowhere near the type of background in monetary policy and finance that mario draghi had.
10:44 am
what implications is that going to have for the fed? obviously jerome powell and his colleagues would like to believe they control monetary policy, but it seems increasingly like if the ecb -- like the markets react if the ecb acts in one way or another. henry: we follow the ecb as closely as the fed because ultimately, the ecb helps to set the lower end of the bound, and the treasury never trades that much above it. if you look at it, 10 year treasuries in the u.s. have never traded in the last 30 years or than 250 basis points above the german bund. the german bund is -40. even if the fed wants to get the long end up, they are going to have a hard time doing that. draghi will i think be very aggressive going into his exit to set the course of action. i think he will do more around
10:45 am
quantitative easing. we think he has lowered the cost of debt, but we don't think he's lowered the cost of equity. we wouldn't be surprised to see him move away from sovereign debt and move into either corporate bonds or even something that is equity like to drive down the cost of equity. there's still a lot of stocks in europe with a huge amount of yield. the european high-yield index actually now has negative yields. that strategy has worked on the sovereign debt side, and it seems crazy, but that is true. but when you look on the equity, they haven't really lowered the cost to equity. erik: i want to point this out. you went into 2019 overweight public equities and overweight the short end of the treasury curve. -- that those were both was a very good trade. henry: even a broken clock is right twice a day, so we will
10:46 am
take a lap there. erik: but the question is what to do now. we are in the public markets, but we are primarily a private equity or private credit or private infrastructure. i will tell you where we see value. equity and credit are very bifurcated. people are overpaying for some of the secular growth stocks, and don't care about companies that have good fundamentals that may have had a misstep. it is the exact same thing in the credit world, where we really see high-quality credit trading extra nearly tight. ,f it has some story around it nobody wants to own it. given our operational expertise, we are aggressively going after those parts of the market. right now, i think we are as active in private equity in europe is any in the world. given some of the noise you've
10:47 am
heard, that might surprise people. but it is very active in terms of technology, operational improvement stories. on the infrastructure in the real estate side and private credit side, we are doing much more in asia. i also serve as a cio of our balance sheet. we've used a fair amount of our own capital and we are moving into asia and extending our brand there. that is a very exciting opportunity for kkr right now. erik: i want to know what you make of these liquidity issues that we have seen in a couple of noteworthy places, the woodford h2o funds owned by natixis. henry: what i see around the world is there are two things going on. there's a bifurcation between higher quality and lower quality
10:48 am
credit. it is making some money, but not as much. the second thing is when we run our business and private credit or asset-based lending, we want to be able to control the entity that doesn't work out. i think some people have moved into private credit and other areas where they don't have the liquidity lockup that a kkr or some of our competitors do come over you have five to seven years and you can actually take control of the company. i think that is something you are going to see in the market, and that is why in our view, there has been maybe over movement by some investors to move into areas where they wanted yield. they just need to protect themselves. they need to watch that they are not overleveraged, that the manager has good lockups, and that they can really underwrite properly. erik: bank of england governor mark carney has said there are credit vehicles out there offering daily liquidity that are "built on a lie."
10:49 am
do you think he's right? henry: you know as well as i do, but anytime you have an asset liability mismatch, which is you buy longer duration assets and short-term liabilities, that is something you should always ask going into a fund. erik: henry, it is great to have you here. henry: thank you for the conversation. erik: that is henry mcvey, head of global macro and asset allocation at kkr. guy: thanks very much indeed. interesting to see what henry has to say about opportunities in europe. our thanks to erik schatzker. this is bloomberg. ♪
10:50 am
10:51 am
♪ vonnie: time now for futures in focus. bob i a chino -- bob iaccino
10:52 am
joins us now from the cme. what happens this week? you probably are going to see a steady move upward in prices as the week progresses. rig counts in the u.s. have continue to drop in 2019. we had about 800 in january. the last week that was up was only up one rig, while u.s. production is still climbing. refinery utilization above 90% five weeks in a row. the potential loss of demand from global economic weakness has not materialized yet. tensions and iran can spike crude oil. you're seeing volatility climb, which it has been doing for most of this year. spikes come from geopolitical
10:53 am
tensions, so that is kind of always in the air. vonnie: when do we see $60 on wti? bob: we could see it this week. we broke above it, and it turned out to be a bit of a fake. but if we see any progress at all in the trade talks, if we see the fed decidedly talk words cutting rates, which we could see this week with bullard and powell speaking during the week, that is impetus for more ,peculative longs to come in particularly based on iran tensions as well. that.: bob, thank you for bob iaccino, passed trading pathners -- bob iaccino, trading partners, joining us from the cme. guy: time for our stock of the hour. bowing under a little bit of
10:54 am
boeing under a-- little bit of pressure today as we see one airline switching sides from boeing to airbus. let's get the details with emma chandra. emma: yes, it is further fallout from the 737 max grounding for boeing. they had their first customer officially say that they were no longer buying those 737 max jets. we are talking about the saudi arabian budget carrier flyadeal. they will no longer by some 50 of the max jets that they planned to buy, and possibly another 20, and what would have been a $6 billion deal. the company now saying they will operate an entirely airbus fleet. airbus has been the beneficiary as boeing has suffered following those crashes and the global grounding. if you compare the stocks this
10:55 am
year, airbus gains are outperforming boeing. vonnie: so the news must create some concern that other carriers will follow suit. emma: yes, of course. we know that other carriers have said that they are weighing their options. there are carriers in indonesia australiam, and in that have pushed back their orders by over two years. we saw at the paris air show ast month, we heard from iag letter of intent saying they would by 200 of the 737 max 8 -- maxd buy 200 of the 737 jets. emma chandra with our stock of the hour. that is boeing today, right now down 1.3%. let's check overall u.s. markets now.
10:56 am
indices are lower today, led by the nasdaq. chip stocks are climbing. the nasdaq down 9/10 of 1%. the s&p dragged lower by chip stocks as well. banks like state street down by 3.5%. symantec up almost 3.5%. there's word that the broad, effort to take over symantec -- the broadcom effort to take over symantec is gaining steam. stay tuned. this is bloomberg. ♪
10:57 am
10:58 am
10:59 am
♪ guy: 30 minutes left in the
11:00 am
european trading day. from frankfurt, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: clearly deutsche bank a big factor in what we've been watching today. focus is what is happening with deutsche bank. that continues to be the story. initially popping up this morning. it is finishing towards the bottom end of the daily range, trading down by 5.31% at this point. the stock really getting knocked as we approach the afternoon. a big movement to the downside. the market voting, and it is not a vote of confidence. the greek 10 year one to focus on. the new democracy party winning the election over the weekend. vonnie: as rd


info Stream Only

Uploaded by TV Archive on