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tv   Bloomberg Markets Americas  Bloomberg  September 4, 2019 10:00am-11:00am EDT

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york, 3:00 p.m. in london. from new york, on vonnie quinn. guy: from westminster, i'm guy. funny: clear parliament debate continues. we are going to be following every in and out of what is happening in the u.k. parliament. the bank of canada maintaining its open interest rate. that was anticipated. just checking to see if there was any reaction. we are seeing a little drop. down three tens of a percent. the canadian dollar is stronger as the bank of canada maintained its monetary policy outlook. let's have a look at u.s. markets. we monitor the trade situation and the hong kong situation. the s&p 500 with a nice bounce up three quarters of 1% thanks to the likes of pbh.
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we saw the ceo by out $10 million worth of shares. the 10 year yields at 148. the worst performer today in the s&p 500, tyson foods is cutting its outlook as a meat processor. we are going to be speeding with nomad foods and its ceo. we are going to be talking about meat substitutes. about assets that are on the move. let's take a look at what is happening with sterling. being 120 yesterday on the cable rate, we have related to 122. in market starts to price the possibility that a no deal b rexit is off the table. we have seen a significant move in the gilt market. bonds generally are on the move. decent side move -- decent size move under the bond market.
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we are seeing a decent move to the upside when it comes to equities. stark contrast to what we saw yesterday. there is the other bond market move we are seeing in your. the german ten-year moving five basis point. a massive move to the downside yesterday. bouncing back today. very different session today. vonnie: exactly. we are just into the session here in the u.s. we will see how it plays out. there is the crucial vote we are escaping around 2:00 p.m. eastern on whether there will be a general election in britain. kumar, whoned by sri joins us from los angeles. we are getting another nice bounce in the u.s. in splay of continued chaos when it comes to hong kong, china tariffs and brexit. why is the u.s. market so resilient? sri: two things. i think in terms of the reaction
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today, there is a temporary bounds in my belief regarding what has been happening in hong kong with respect to the sleigh improvement -- the slight improvement. away isk fall off going the likelihood in the short-term in the u.k.. they are both positives. other than that, i do not see anything to have changed dramatically in the united states. the u.s.-china trade were is going to -- trade war is going to eat and you. the hong kong situation -- is going to continue. the hong kong situation is going to come under pressure for the months to come. i do not see very much more than that. the narrowing of the trade balance from last month, the trade balance came in at $54 billion. . we got the manufacturing data yesterday that showed factories in contraction for the first time in several years.
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how concerned are you for the u.s. economy? sri: let me take your first point. the improvement in the trade balance spoke about his very much a result of a lot of stockpiling that happens before the increase in tariffs. month these month to numbers, especially with people worried about what the new tariffs is going to be, to be essentially a temporary phenomenon. i would like to see what happens permanently. once all of the tariffs have been done on both sides, my expectation is the u.s. trade deficit will once again go to a high level. hadar as manufacturing, we the drop in purchasing managers, index and manufacturing for the first time since 2016. that is dramatic news that is taking place. that is one more indication the u.s. economy is significantly
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slowing. we also see that from the spending side from the consumer sentiment. the university of michigan's calculation having fallen off in the last month. the storm clouds are gathering. that is what you see. be pricedof that must into the bond market already. we saw a massive move in the month of august. given the move we saw in treasury, would you be buying or selling fixed income? where do you think the treasury prices going to go in september? sri: 1.48 to 1.49 on the 10 year. the u.s. treasury continues to -- they buy -- a i have been saying that since a couple of years ago. he continues to be a buy continues to be a buy. there is a lot more money to be
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made. with all of the uncertainty that equity, the safe haven you're going to go to is u.s. treasuries. the last reasoning, when you look at the german bund, we are today at -65 basis point. with the deterioration of the euro zone economy, the german , ad is likely to go to -1% full 100 basis point. that is going to drag down the u.s. treasury yield. guy: does that make equities look even better value? are you comfortable with where the s&p is? sri: i am not comfortable with where the s&p is. in the short-term, you can have a rally in the s&p, especially of the fed cut interest rates. if they cut by 50 basis points, you are going to have a significant rally in u.s.
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equities. are the investors going to be nimble enough to jump off the treadmill before the inevitable sharp decline takes place? if you look at a one year time point, i am not optimistic on the s&p 500. it may do very well in one month to three months. vonnie: what do you imagine the fed should do and will do between now and the end of the year? sri: what should it do? has have to say the fed little to do with the trade war. the trade war is causing a big drop. if chairman powell were to make a very honest statement, it would be to say that the fed is powerless to stop it. not do anything at all. on the other hand, what will they do? he is going to claim the economy is weakening. that is way he is reacting -- that is why he is reacting. he is going to cut interest
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rates several times before the end of the year. investors are going to go by what the fed will do rather than what it will -- then what it should do. that is why i said you're going to have a temporary rally in equities. vonnie: which of the central banks do? you just said the fed should not talk about addressing the trade war. we have bill dudley today with a clarification column saying what he meant and he said do not enable trump, he meant do not make up for any fiscal mistakes or administrative mistakes that might be made if you are a central bank. on the other hand, we have mark carney saying, let the exchange rate do its job. he will not committed any response on brexit. who is taking the right direction? tactictaking the right on this direction? sri: there is a lot of similarity between the bill dudley statement today and the
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mark carney statement. both are saying, in carney's case, he is saying brexit is beyond the control of the bank of england. bill dudley is sitting the trade war is something the fed cannot do about and should sit by in order to influence the election, but because the fed economically is powerless to do that. who them are saying things close to each other rather than diverging in terms of the approach. what you are going to see increasingly is central banks do act. let me add one more point. you had christine lagarde, the next ecb president indicate that she would stand ready to help out. the problem is the ecb is not going to be able to do much to turn the economy around. the euro zone's problems are
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structural. labor marks are not having a common fiscal policy. monetary policy can do little to help with that. guy: why does the market put so much pressure on central banks? why is the market not finding a mechanism for the government to act ostensibly? to spend money in the case of germany. to not spend money in the case of italy. i am wondering why the markets are piling so much pressure on the central banks and forcing them to act. sri: the market is responding. the question is, which market? if you look at the fixed income market, both the u.s. treasury and the german bund are turning thumbs down in terms of their belief the economy can turn. the bond market is giving you a good signal of where the economies are going. the equities are not. they are continuing to go up.
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the equity investors have placed more confident in abilities to turn things around. the equity investors will lose out. bond investors will win. go back to the 2007 to 2009 great recession. the u.s. bond market was a much better predictor about the year startingthe recession in september 2007. the yield curve at already gone negative. equities cap hitting new records. 2007, as006 and into if there was not a care in the whole world. of course, the recession had already begun. vonnie: thank you for joining us from los angeles. sri: thank you. vonnie: global strategies president and founder. let's check in on the bloomberg first word news.
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countytaly, just epic will return as prime minister less than a month after he was forced from power. the president has given the professor a mandate to had a coalition. he was able to outmaneuver his former deputy. hong kong's chief executive has made an about-face that may help ease several months of unrest. carrie lam has formerly withdrawn legislation to allow extradition to china. that may not be enough to end the demonstrations. withdrawing the extradition bill was just one of the five demands from the protesters. rain and winds from hurricane dorian are lashing florida today. forecasters say the storm could make land in georgia or the carolinas. it has been downgraded to a category two. hurricane-force winds are sending -- are extending 60 miles from the eye. in the bahamas, the hurricane
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left many islands devastated. it killed at least seven people. the star running blog of the -- running back of the dallas cowboys has ended his contrite hoda. -- has ended his contrite holdout. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. vonnie: thank you. speaking of coming up, comstock jonesces investor, cherry joints. he will have something to say about the $90 million ezekiel elliott contract. that is next. this is bloomberg. ♪
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guy: from westminster, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is bloomberg markets. guy: let's check in on those markets. let's get the details. >> equities in the green across the globe. the s&p 500 opening 5/10 of 1%. stoxx 600 up close to 7/10. every industry group in the stoxx 600 in the green. that is following asia. hong kong rising close to 4%. jumping the most since 2018. after the news that carrie lam was withdrawing the bill to allow extradition's to china in what has been the catalyst to those weeks of protest. you can see that most clearly with luxury stocks. lg mh and tiffany & co. putting
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in something of begin gains today. they have been under pressure. stores have been forced to close in hong kong. we have seen tourists travel and spending decline. stocks considered to be most exposed has the retreatment of risk. in the u.k., we can see it in the way the pound is behaving. rising after cratering on monday and tuesday. lawmakers take back control of the parliamentary agenda. prime minister boris johnson still trying to force a general election. that risk has not completely gone away. gold has been dropping with a rally. some still think it could hit 1600 soon. vonnie: thank you. we have to talk about ezekiel elliott. for more on his contrite extension just announced this morning and also some thoughts
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on natural gas, we are joined by cherry jones, owner of the nfl dallas cowboys. congratulations today. jerry: it is going to be here on the floor of the exchange. probably fitting we are playing new york this weekend. 21 --great to have the that 21, ezekiel elliott back. i am $100 million later. we are glad to have him carrying the ball. vonnie: you mentioned the giants game. will he be playing this weekend? very much. one of the great shape -- one of the great things about him, he is an inspiration to the locker room. he is a role model. he is in excellent shape. he does everything right physically. he is a football players pop-up player. he excites are locker room.
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before our game, sometimes he will run up and down the locker room like he is a mustang, getting excited and getting the players excited. we are glad to have him back. vonnie: it is going to be what -- going to be more than $100 million. does it continue? jerry: i think so. bullishever been more about the prospects of the nfl. frankly, live sports. great place ingreat our country, internationally with our game. the game culminates. it's great time as in the fourth quarter of the year. thanksgiving and christmas. our content is very valuable. it continues to get more valuable. a lot of people say it is soft. that is not the case. it is the strongest thing on
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television. vonnie: you stay with at&t's directv or is the nfl seeking other partners? jerry: i think that all great companies in the media business are undergoing such dramatic change. how they are going to present content. the flexibility is beyond anything any of us could have imagined. i know at&t personally. i know their leadership. they will get it done. they are one of the most admired by me people in this country. the nfl wants to be part of at&t's future. vonnie: anything about the valuation of your own team? do you think it is correctly valued particularly after today's contract extension? jerry: no one knows what something is worth until the until it is --
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sold. that will not be the case for the dallas cowboys. i know that i would trade a lot of those evaluations for more first downs or more game wins. at the end of the day, i did not get in to football to make money. i got into football to compete and compete for super bowl's. on the other hand, it is with great pride we run the team, and we run it in a way that has that kind of recognition. vonnie: did you get into natural gas to make money? you are a 75% owner of comstock resources. at threeet is in stock dollars, three dollars 50. that is well below what you need to be profitable. where do you see natural gas prices? jerry: of course, natural gas is a commodity. on the other hand, it has all of the things you look for in commodities. it has to be in the right location. the cost of it, to grow it or
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produce it, has to be efficient to long-term, make money. comstock are joining with cubby park, the place that we drill. the leases we have. it is the most efficient place to have natural gas. our market is right there. we do not have very far to go to get it. ngo,ays, you get to have which is exported. starting at about 16. our country started exporting products. this is what sparked my interest. i got the money to buy the cowboys from natural gas. the way i approached it was from a marketing standpoint. that is the way i do it. comstock fits and checks all boxes. consequently, i have put over a billion and a half dollars of my personal money into this area,
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comstock area of natural gas is pure vonnie: haynesville last year, cubby park, you are announcing today. what is next in terms of acquisitions for comstock? jerry: we certainly want to get even more efficient. we want to nail these companies together. take the best of both in terms of talent. it is still about people, just like football. because ittake, just is not going good as an industry, when i bought the cowboys, they were losing a million a month. the industry was going down. dictatestry does not the promise of the individual or company in the industry. that is the way it is with comstock. we have a chance to be a leader as people get more confident in how much money you can make in
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natural gas business. vonnie: you're going to have to extend your stay in new york. the giants game on sunday will be an exciting one. congratulations to you and your team. also, your comstock resources deal. thank you for joining from the nyse. this is bloomberg. jerry: you giants 50 -- two giant fans, be sweet.
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vonnie: we're seeing a nice bounce across the board. konggood news with hong getting a little bit better. parliament continues to debate in britain. you see the dow and s&p up six tents of a percent. in europe, any major industries are up -- many major industries are up.
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vonnie: live from new york, on vonnie quinn. westminster, i'm guy johnson. this is bloomberg markets.
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let's send our attention to what is happening with brexit, the european banking sector, and the ecp. let's go to brussels were the top mines are gathering. joining us is lorenzo bini smaghi. an exclusive interview with him. let's talk about what is happening in london. soc gen.the chairman of is what is happening with british politics changing your plans as you see capital markets, how you position people, what you do with your bank in london? relativelyn a published position because we are both in london and in the continent, in paris. we have the ability to move people rapidly. asare in a wait and see mode we have been over the last three
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years. waiting for the british political system to make a decision. eventually, released a great summer. a few more weeks or months if needed. at a certain point, a decision has to be taken. the whole business model of banks is evolving. we need to have a clear decision where the financial center will be in europe. guy: linda you think that decision will be made -- when do you think that decision will be made? it looks like the process may be extended to the beginning of next year. when you have to make a decision? -- when do you have to make a decision? lorenzo: we do not have to make a decision. it is better to have a clear decision rather than no decision. hopefully this will be the last postponement. what is important as not only to have a decision, but to be clear
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on what kind of relationship there will be after brexit or no brides at. -- or no breaks. that there is a clear relationship and family relationship between the european union and great britain. the worst would be to have a divergence as is it is starting to look under the auspices of the new prime minister who indicated that mutual recognition or convergence on certain regulatory issues would be much weaker under his government. it would be a threat for the financial system in europe. former executive board member of the ecb. the financial markets are currently expecting circa 16 basis point of cuts. some sort of qe. some sort of pairing to be happening.
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are the markets expecting too much from the ecb on the 12th? think the key decision is, will there be a big package or will there be a beginning of a package? the rest may be announced or preannounced. the implementation will take place maybe later, depending on the uncertainties on exit, the trade war, and other issues will develop. package or thee beginning of a package. this will be the discussions doves inhe dogs -- the the hawks. expect?ch one do you which one do you think is more likely to have an -- to happen? hawks have been very vocal the
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past few days. thatzo: my impression is if there is a beginning of a package, mario draghi will have to make it clear in the press conference the rest is going to happen. it is not going to be -- the change in presidency of the ecb is not going to affect the pattern and intervention, the impact of the overall package. if they do one piece, they have to make clear to the market more is going to come. especially if we see a hard brexit and the worsening of the economy. on: one final question italy, it looks like we are going to get a government. it is going to be between the pd and five-star. is that going to be good for
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investors? how stable do you think it is going to be? certainly, the markets fearson shows some of the the previous government had created, in particular with respect to the euro and stability, all of this is disappearing. this government is pro-european. it wants to work together with the european commission. the issue is, what is keeping the two parties together? is it the fear of having salvini back? do they really have a program we went to implement that will change things -- that they want to implement that will change things that will try to engineer growth? my impression is it will last longer than some people expect
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because the parliamentarians do not want to go home that quickly. they were to try to work together. -- if there is no big in the economy, this government lasts a couple of years. the objective is to try to get to the election of the new president of the republic, which will be in early 2022. .hat is the expectation the target for those who want the government to remain stable. lorenzo bini smaghi, thank you very much for joining us. let's turn our attention to what is happening here in westminster. independentd by an mp. last night, he was a conservative mp. he voted against the government. difficult decision? >> to vote against the
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government? it was. really up into the last minute. i knew in my gut i was going to vote against the government. i have no knepper -- i have known that for probably a week. i knew what the consequences were going to be. i was looking for an opportunity to vote on principle of the government. i cannot find it. if we are looks as heading for a general election. what are your expectations? doneat the rebels have yesterday, they have done boris johnson a favor. he has one strategy, which is to get britain out by the 31st with or without a deal and then have an election and when. -- and win. now there is a plan b or you have the election before, but you have to deal with the brexit party before.
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farage farage. course, the terrible europeans who have been so nasty to us the last 45 years. off you go. boars is also -- boris is going to -- he is a much but a politician. i do not think it will be close. or you come a win back and say, i have a mandate for no deal. it could go terribly wrong for people like me who are trying to keep no deal off the table. where are trying to do is get this locked down before boris can call his election. i would like him to win. this is not personal. if he comes back, at least we crashimited his room to britain out of the european union and try to get parliament to vote for a deal. guy: is that a positive way to
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look at it if you are on their main side? i'm trying to figure a way -- at the moment, he relies on the dup. that makes the issue of the irish backstop intractable. majority,e to win a what and that give him a bit of wiggle room? do you believe him when he talks about that he wants a deal? ed: i did not believe him in august. i believe him slightly more now. over the summer, i thought the strategy was to run down the clock. i do think he thinks he can get a deal. while he thinks -- well i think he thinks he can get a deal, i do not think you can get the wrong three we did years ago was as free three things that are incompatible. now, he is asking for two things that are incompatible. get a deal and leave on the 31st of october. i'm not sure he can leave on the 31st of october.
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that is why i want to do his dirty work, not only by giving him an excuse to call an election, but i have given him a use to go for an extension. -- an excuse to go for an eccentric. i think you will need more time to get his deal. i do think he wants one. guy: thank you very much indeed for the insight. , independent mp. vonnie: it is clear there is an internal debate, not just in parliament, but each individual member of parliament. the pound is stronger than death stronger but almost 1%. almost 1%. by let's move on to the debate heating up. one company finding itself in the crosshairs. we are pleased to welcome back ceo of nomad holdings. last year, the company had
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notable acquisitions. you are here with us again to discuss this environment. we are joined by ed hammond. brexit, how is it impacting you now? you said there was little of an impact last year. is it more as net peg now? -- is it more of an impact now? stefan: 85% of our business is not impacted because we are widespread in europe. 85% is not impacted. when you take a bit of perspective, the important thing is, we have been through a lot of interesting times. we went through a unprecedented -- your member five years ago -- your memory five years ago when the business was wrong. year, we had an
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unprecedented level of inflation. this year, we have briggs. -- greg's it. .- brexit we are fully ready. we are not changing anything in terms of guidance. for 2020, a lot of thanks are being prepared right now. howie: are you changing your supply chain works? are you changing who you get to deliver? how you send frozen food across water? stefan: yes. these are things we are considering. we have plans in the u.k.. we have plans in other countries in europe. we may go to some of the countries. we are -- we have a lot of mitigating measures before the. how to make sure you're going to be only -- if there is a tariff.
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supply chain, big things. a lot of things. like,ams are taking this let's go for it. we are going to thrive. ed: amid the chaos, there opportunities. you have 700 million euros of cash. we are you going to spend it? stefan: frozen food in europe is a great place to be. we are the undisputed leader. it is easy to buy. it is also easy to generate this energy you need. to thatynergy you need is where we think we can leverage the balance sheet. ed: what are you going to buy? stefan: we are not going to say. i am giving some directions . start with frozen short-term in
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europe. -- it should not necessarily be retail. they can be food-service at some stage. they can also be other categories. those are the things we have in mind. you can find a lot of -- i will never compromise in terms of discipline and what it has to be. selling,rms of who is there is a lot of pressure on a lot of companies and on private equity. how is that market? stefan: we are ready. -- remember firms are at the end of the process. we are ready for the family businesses that think they are running out of frozen food.
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we are ready for the big companies that think at some stage, is frozen food strategic for me or not? we have a series of different situations. we have to be flexible. we have to be smart. very fast on the ball. that is what we are doing. without forgetting discipline. vonnie: it is a difficult time for meat process. you are looking more inroads into meat substitutes. you have been in meat substitutes and green cuisine for a long time. it makes emily 2% -- a mixup only 2% of your pie so to speak. how do you grow that? stefan: we are going to grow big time. we are putting all of the resources behind. instead of having something that we are deciding
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to dedicate the food organization. it is theirs to stay. it is very fragmented. it is growing big time. we are the market leader in frozen. it has to be ours. we have great risk product. bacterial point about green cuisine, starting to be well received by consumers. vonnie: good luck with it. thank you. please visit us again. that is stefan descheemaeker, nomad foods ceo and ed hammond. in dramatic move earlier on, chief executive carrie lam withdrawingrmally traditional. the next 13 weeks over sometimes went protest. us from hong joins
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kong. will this end the process? is that sucking that is going to happen? -- is that something that is going to happen? thehe indications from pro-democracy camp is no. they'll most immediate he responded to the gesture, and olive branch by withdrawing this bill going beyond suspending it. formerly withdrawing it from legislative procedures. that was one of the main top demand. protest movements say they have four other demands. if perhaps carrie lam had offered this gesture two and a half month ago in june, perhaps things would not have gotten out of control as many people say with the violence. now, many activists are saying too little too late. wong, a protest leader five years ago speaking
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in taiwan where he is trying to really support in taiwan. he said, the protest will continue. initially, -- we sell initially that she was going to withdraw the bill. the market shot up. 2011.t up the most since now, we are seeing futures in the faang index dipped down after the speech and after we are getting some of the comments from the protest groups saying, we are not done protesting. we have four more demand. -- more demands. you stephen engle joining us from hong kong. let's turn now to a bloomberg exclusive. reviewingirlines is fleet requirements. the demise of the
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airbus 380, the president says the current economic slowdown is already affecting the business. i spoke to him earlier today ahead of the aviation festival tomorrow. ofwe are seeing signs diminishing demand, rate of growth falling off. not going negative, but slowing. it is beneficial for of -- for us if the price comes down and remains down. it will take advantage of that going forward. certainly, not just emirates, but most of the international long-haul carriers are facing problems in regard to what is happening in the global economy. this is driven by not just the potential trade wars between the major parties today, but also all sorts of other things whether it be the geopolitics of the region, the socio-economic clinical regions. we are not in a good place at the moment. we will deal with it. guy: you expect things to
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improve or do you expect things to remain as they are, or do you think things are going to get worse? what are you planning for? this is a particularly different -- particularly difficult time. in the past, emirates has been optimistic about the future, particularly as we have experienced all sorts of adversity in our region over the years we have existed. structuralit is more in terms of what the global economy is going to look like in five or seven years. we see a major trade rebalancing. you can call it what you like. causing a of that is slowdown. whether this will continue as it is, is it is -- it is anybody's
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guess. at the moment, i do not see any green shoes. i do see it getting worse. when it will bottom out, i cannot be sure. as far as global demand for air travel, that is likely to follow. probably by one or two percentage points over the next two or three years. the airline community is going to have to do without. whether that has been driven by things i have mentioned or concerns by environmental lobbies throughout the world today, there is a hodgepodge of reasons why two push us further southwards before we start seeing bottoming out. maybe three to five years. guy: how is that going to a fight the way you plan for your business? 787's versusg at triple x is.
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-- as a resultly of what you are seeing on economic landscape, rate examining your fleet expansion? rate the aircraft you need? is this a wholesale bottom up review of what you do? domains in the public that with the demise of the 380, we have had to look at a range of other alternatives, smaller than the 380. to retain the structure of the network today and the fleet that supports that. airlines president temer clark earlier on today. -- president tim clark earlier on today. vonnie: muni showing best returns so far this year. rug's head if
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municipal strategy is shawn carney. up 8% this year. what is behind the rally? factors --ibute in contribute in factors. it has been robust and sustainable. what is driving is this supply and demand dynamics underlying the market. traditionally, when rates rally, issuance would decrease. not beenuance has increasing. we has been in the net negative issuing environment. coupled with following issuing rates and using monetary policy, you have a backdrop that supports the fundamentals from missable credit and duration fire lower interest rates. taylor: you were talking about what is behind the rally also coming from the demand side. we have ici out with their weekly inflows. it has been inflow after inflow.
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talk to me about that. if that does continue into q4. sean: close have been sensational. we just received our 34th consecutive week of inflow. second only to do thousand nine. by our calculation, we will set a due record by early october. -- set a new record by early october. they may not be this robust heading into q4, which tends to have a different seasonal influence. we do not see any reversal of flows as performance has been strong. supply has been minimal. demand will continue into that environment. taylor: in the minimarket, you look at the yield divided by the treasury yield, which we call them you need treasury ratio. informativeat it is but less than it used to be. sean: in markets where you have crossover buyers and retail buying the asset class, ratio is matter. when it is a retail driven
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reality, retail tends to care less about that ratio. while they do have information of value, they have less creative power when retail is driving the rally. we put a little less influence on them today. we are looking for a crossover bid or nontraditional buyer. that is when ratios will become important. taylor: a few bankers say they have never seen a time like this before with record low yields. fewer and fewer protections for buyers. you are on the buy side. from your perspective, how does this feel relative to 10 years ago? sean: those types of deals are coming more in the high-yield space. this is what happens when there is a 10th month -- a 10 month rally. you get issues that come with less protection. that is why you need a large dedicated research team to understand what it is you are buying today and that you will
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become trouble holding it one year, three years, five years down the road. taylor: it feels like 2700 2008? sean: in the high-yield space, you begin to see some remnants of what we saw in 2007 and 2008. of we: blackrock's head disciple strategy, sean connery -- sean connery -- john carney. vonnie: joins us from the annual meetings in brussels. looking forward to the conversation. that is next. the canadian dollar is half a percentage weaker versus the u.s. dollar. boc holds fasthe interest rates. this is bloomberg. ♪ from the couldn't be prouders
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underway. you're looking at a former chancellor on his feet. one of the rebels last night of voted against the government. one of the rebels last night no longer ahewhip, member of the conservative party. there are 30 minutes left in the european trading today. i am guy johnson. quinn. i am vonnie this is the european close on bloomberg markets. let's talk about those markets and figure out where we are. probably one of the critical factors everyone is watching is the value of sterling, bouncing back sharply over the last 24 hours. around 1% overg the last 24 hours as the we have also seen a significant selloff in the gilt market as well, trading north of around 10 basis points. higher in yields, lower in prices for u.k. gilt. as you can see, the cable rate


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