tv Bloomberg Markets European Close Bloomberg September 30, 2019 11:00am-12:00pm EDT
left in the european trading day. from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: in european markets, it is the last day of the quarter and the month. this is the picture we find ourselves with over these last three months, and i think it is absolutely fascinating. july, nothing really happening. just drifting sideways, very tight range. then everything blows up in august. we get negative send it -- we get -70 on the german ten-year. equities get absolutely battered. then we bounce back. as we caught rotation within we would -- within the market, nevertheless, in aggregate, nothing has really changed. risk assets have held up to a lot of bad news. let's look at where we are today and figure out what the picture looks like. we have got holiday thin trading. that is certainly a factor we
are watching in europe and the united states. the stoxx 600, really like volume today, but up near session highs. the euro-dollar under pressure, so the single currency feeling the pain. the dollar goes from strength to strength. $1500, $1486.elow maybe some positioning around what has been a fantastic run for gold. vonnie: in the u.s., we are looking at small positives for the s&p and the dow for the quarter. today, the s&p is up about 0.25%. it could be adding to that gain for the quarter by the end of day. the best performer in the s&p 500 right now is newell, up almost 5% from an upgrade to $25 a share. as you can see, we are crawling up towards that mark as suntrust says the bottom is in for newell's strategy. the money coming out of
treasury market. some money coming out of the oil market as well. 50 to five dollars 55 since a barrel -- $55.50 a barrel for wti. guy: a lot of anticipation around credit suisse this evening. it's board is apparently backing a cruciale thiame in meeting that could be happening any second now that will determine who takes the blame for a spying scandal. let's find out what is going on. bloomberg's maria tadeo is outside the bank headquarters in zurich. tell us what's going to happen this evening, and what it could mean for tidjane. here ishe big question what exactly happened at credit suisse in this surveillance scandal, and what exactly was the management, including the ceo, thinking when they decided this was a good idea, that they push any of the limits here? we understand the board is still deliberating what to do, and they will have to come up with some kind of statement.
someone needs to take response ability for the fallout from this scandal. ,ust to cut a long story short a former employee was the star at credit suisse, who decided to go to ubs. there's a lot of speculation as to what prompted this. there's many reports about the bad relationship between he and tidjane thiame. at this point, we understand the board has removed some of the heat away from thiame. shareholders believe he has done a good job, and as long as nothing here is fully illegal, this is a very tough industry. credit suisse was obviously han stealingout k some of the talents. the board is still deliberating on this, but the heat has certainly come on at this point. vonnie: it really seems like banks are very scared about needing to recruit executives, as there aren't that many out there. what does that say about the
wealth management industry? maria: that's one of the things i've heard today many times. essentially, you are looking at two rivals that compete for the same business, compete for the same clients. we are talking about ubs and credit suisse, the two big national championships. it is very real that there is paranoia in this country about who.s doing business with when you look at the industry, making money is a lot more difficult than it was before. nobody wants to lose their portfolio. nobody once to lose their clients. this is perhaps why credit suisse decided it was a good idea to put a former employee who was known for his ability to make business under surveillance. they were concerned he would try to steal talent and use it for his own benefit. many will tell you this is a very tough industry, very cutthroat. sometimes things like this just happened. guy: thanks very much indeed. maria's is in zurich.
she will bring us a great deal of reporting over the next one to four hours. we are expecting a decision first thing tomorrow morning. maria will be bringing you that news from zurich. the banking sector not exact lay one of the best performers during the last quarter. we continue to monitor what is happening in the united states and with the trade narrative as well, probably the biggest factor going into the fourth quarter to determine where markets go. the trump administration is downplaying a revelation about limits on investment coming out of the united states or the possibility of delisting some chinese companies that are currently listed in the united states. we saw a big reaction friday to this story that came out of bloomberg in stocks like alibaba. we are joined by peter dixon, commerzbank global equities economist. in terms of what is going to happen in the fourth, how important are the trade talks going to be in the narrative? we have the story we broke friday. we have trade talks coming next week.
how painful is all of this in terms of the market narrative? guest: it is front and center. is aorld economy right now huge amount of uncertainty, whether it be brexit, whether it be the slowdown in europe or what is happening in the united states with regard to politics. downf this can be pinned to the u.s.-china trade story, which is the beginnings of the cloud of uncertainty which has rolled across over the last 18 months or thereabouts. that it is in the president's interest to do a deal with china, but not necessarily now. i think you want to keep this going well into 2020. so again, it is a question of how long can you keep this going without something going wrong. guy: what i took away from friday's story, there has been some pushback from the white house today, but not complete pushback, is that the range of tools the white house is considering using may be > he
then -- maybe greater simply trade. that takes us into a new realm, and may be speaks to the fact that this is not just about dealing with the u.s. current accounts. it is more about status and the geopolitics that goes around that. that is much more difficult to price from a market point of view. peter: it absolutely is. i think this is always been much more than trade. this has always been about the superpowers buzzing against each other to see which one is going to give way. i think in many ways, it goes to something which economists worry about, the distinction between risk uncertainty -- between risk and certainty. we can't price certainty because it is a known unknown. markets wobble, but generally they recover because the fundamentals don't look that bad, but who knows. this is the kind of scenario that is very easy to
miscalculate. something goes wrong, we end up with a market crash scenario, or something goes badly wrong with the economy and people's livelihoods get hurt. we are treading a very high wire here, and we have to be careful about how we observe it. vonnie: how important is it for financial markets that there continues to be a two-way street very easily navigable between the u.s. and china when it comes to financial flows? as china'sink economy continues to increase in size, it becomes a much more important player on the financial markets, it is imperative for investors in the west that they can put money into china and get it out again. after all, investors want to be where the action is. china is where the action is. therefore, as you said, it is imperative the world remains open. i think if the u.s. is really thinking about putting obstacles in that, however, we really are taking it in a different
direction. i think it will have a significant impact upon markets because it will basically shut investors out of one of the growing paths of the global financial system. vonnie: speaking of that growth, how much slower is it getting, and will we see an amount of layoffs in china that will obviously have secondary effects on other markets? economy, terms of the what seems to be priced in for the next year or so, we don't really know exactly to what extent the chinese numbers really represent what is going on, but you do get the sense that the chinese authorities have no interest in allowing the economy to slow too far. we are celebrate in the 70th anniversary of the foundation of the peoples were public. they want to put a -- the people's republic. they want to put a good gloss on that.
what they don't want is a bunch of people being laid off. it is in china's interest to keep the show on a roll, and i think they will do whatever is in the power to do that at what is a pivotal time, both politically and economically. vonnie: peter, stay with us. globals commerzbank's equities economist. let's check global markets. here's abigail doolittle. abigail: at this point, looking at mixed signals around the world. take a look at the s&p 500, up 0.4 percent, moderately risk on. the shanghai composite down 0.9%. that could have something to do with those headlines friday that the u.s. was considering limiting the flows of u.s. investment into china, something the white house has backed off of a little bit, but not completely. this before the seven day holiday for the people's republic of china, their 70th anniversary. a little bit of a downturn there. brent crude down 1.4%, down for a fifth day. gold, the haven assets, also
down 1.2%, so you can make the case risk on. really neutral risk appetite on this monday, the last quarter of the day. we had those headlines not so long ago about the wework ipo, that the co-ceos delayed the ipo. this is the renaissance ipo etf. last tuesday, then ceo adam neumann had withdrawn as ceo. and noww the big drop, lower, down 5.7% over all of this news around wework. we will be following this very closely. the quarter is coming to a close. big moves here as well. take a look at this chart in the bloomberg. the dow and the s&p 500 in white and yellow, they are up on the quarter. the tech heavy nasdaq in blue down, the first down quarter since the very volatile fourth quarter of last year. that is true for the russell 2000 in pink, along with the dow
transports in orange. mixed signals here, especially when you put it together with the big rally for bonds in the third quarter around the world. we may have a chart of the 10 year yield on the quarter. look at that, giving up 34 basis points, at one point -- at 1.69%. interesting considering the mixed-signal for stocks anti-big rally for haven bonds -- stocks and the big rally for haven bonds. vonnie: just an update on wework. a statement coming out from the new co-ceos, saying, "this was an official pause in our process of becoming a public company." wework publicly withdrawing the prospectus for its initial public offering. the $6 billion credit financing line had been contingent on a successful offering. they will have to find cash somewhere else, potentially from
♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." wework formally withdrawing the prospectus for its initial public offering. that cost its top executive his job. also, one of the major owners. let's bring in bloomberg's jillian tan. reporter: last week, we reported they were likely to go public in 2020, and it is just not come in for companies to leave filings hanging with the sec. c. with the fc guy: in terms of changing the
nature of this company, what has got to happen for this company to come back to market? we seen what happened. we know what has gone on in the company. co-ceos in,w restricting the access in terms of spending. in terms of what has to change, do we have any clues as to what will turn wework into a successful ipo? reporter: the company needs to focus on cutting costs, proving to the market it can be profitable. to show the pastor profitability, they plan on cutting staff in the thousands, approximately 4000. they are looking to sell some not so core businesses and really focus on the core business, which is leasing office space on a short-term basis to companies, so enterprise clients like microsoft, amazon, walmart, right through to five person startups. what we do have from the co-ceos
is an email they sent to staff today. "rest assured, wework will become a public company. we can only ipo once, and we right."do it they acknowledge it has been a tough few months, and they asked their team to focus on delivering a good product to clients. vonnie: the $6 billion credit financing line was continued on a public offering this year -- was contingent on a public offering this year. how all in is softbank? will softbank provide some cash? reporter: softbank's among the most likely to step up and inject a little more capital into the company. probably they will ask for some sort of restructuring to protect their downside, for example, if the company were to implode. tan, greatlian reporting. our thanks to you. guy: i just want to bring peter dixon back into the conversation. not on wework specifically.
are you surprised how resilient equity markets have been given what has been thrown at them? wework is just one example. in some ways, it is a confirmation that public markets do work, inasmuch as they haven't wanted wework to come to market. we have a bunch of ipos that have been really tough. you've got the impeachment story out there, the trade story out there. are you surprised, given everything that has been thrown at risk assets, the equities are basically just going sideways? peter: yes and no. in a sense, you are right. the news flow that has hit markets in the past, there would have been no coming back for many of these stories. valuations look a bit stretched. i've been saying for quite some time, i'm cautious. and yet, the one thing which keeps markets going is the fact that central banks continue to either keep interest rates low or start to cut once again.
in an environment where you are getting a significant evident yield on stocks which is way above what you are getting on 10 year treasuries, for example, you really have to say invested in equities, unless you think there is going to be a real selloff. at the moment there are no selloffs happening. guy: we have several very big, high-profile ipo's that have not succeeded in coming to market. given the level of risk there is out there, the fact that equity markets have held up, what message should i take away from that? peter: the way i tend to think of it, i stay invested, but i stay invested in fairly liquid assets that i know i can get out of very quickly if and when the tide turns. the problem we have seen over the course of recent years, too many investors have gone long liquid stocks. when things change, they can't get out quickly enough. that's what you don't want to do in the circumstances. if and when everyone tries to rush for the exits and markets
collect spectacularly, i guess that is the risk we have to take because at the moment, you really want some return in equities. whether it be executive orders or tweets or promises, china negotiations ongoing, have you begun to take stock of what impeachment proceedings might due to financial markets? peter: well, we have. we still think it is something which is way out on the edge of possibilities right now. i very much doubt that in impeachment could be made to stick, for example. i think for all circumstances, we remain cautious. but i think you have to start looking at where this might start to impact. for example, health care stocks have come under scrutiny recently. if the focus of u.s. intentions starts to switch to impeachment,
maybe some focus comes off of the health sector, and that will give them a chance to catch their breath a little bit. there are some straws in the wind that say impeachment might be good for certain sectors of the market, but overall, it is something which, at the moment, we are keeping a watchful eye on, but no need to panic at this stage. vonnie: how strong does the dollar get? does it get to unsustainable levels? peter: you know, i don't think there's a huge amount of dollar upside at the moment from where we are now, depending on what the ecb does in the future. if the ecb is done for the moment, think there's every possibility that the euro could regain a little bit of ground. we have to say that right now, the weight of momentum is with the dollar making further ground. i would be surprised if we get below 1.07 anytime soon. vonnie: peter dixon is sticking
with us again. your dixon is commerzbank's global equities economist. this chart shows the european stoxx 600 has outperformed both its developed market peers and emerging-market equities in the third quarter. looking ahead, over the past decade, the fourth quarter has seen the biggest gains in europe, with the rally providing average gains of 2.8%. don't forget, all of our charts in the gtv library. this is bloomberg. ♪
chinese consumers may take up almost half of the global luxury market by 2025. microsoft's largest reseller is planning ipo. the swiss tech firm to software one is planning a deal for q1. kkr intends to keep a significant stake after the ipo. that is your latest bloomberg business flash. let's check u.s. markets now, the final day of the quarter, a monday. s&pdow up about 0.4%, the up almost 0.5%, and the nasdaq up 0.4%. we will see if we can make it a positive quarter for the nasdaq. before today, it would've been down about 0.6% for the quarter to date. guy: with the holiday, china closed for the rest of the week, it is a very, very light market session in terms of volume. nevertheless, there are some interesting things we can take away. it is the end of the quarter. the ftse 100, finishing the
quarter, looks like it is going to be fairly flat. some of the oil stocks, some of the drug stocks getting a little break today on the ftse 100. the dax being led higher by lufthansa, up around 0.3%. in the majors, we are seeing the biggest gains come through in the cac 40. in aggregate, all of these have been incredibly quiet. we saw a lot of volatility in august, but compared to where we started in july to where we are finishing in september, basically an incredibly quiet period for equities. we've basically gone nowhere, but volume quite like. european close is coming up next. we will bring you all the details on the session. this is bloomberg. ♪ sometimes your small screen is your big screen.
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sessions but there is plenty of action below the surface. ftse 100 finishing flat. some of the big oil names dragging the market down. you've also seen some of the big names that have done quite well. the bond proxies have been having a better time. let's talk about the quarter we have just concluded. in many ways, a nonevent for risk assets. below the surface, there is been plenty of action. july, stocks went nowhere in europe. then we got to august. what in august it was. bond markets on fire. bond prices higher, bond yields getting to -70. a sharp drawdown. then we come back, we finish where we started, up 1.34%. in terms of what the maid markets look like today, let me give you closing numbers. you can benchmark all of this.
ftse 17424. dax, 12,428. some of the buildings stocks in paris have done well. the cac 40 finishing the quarter at 5675. we stop the auction process to get through. some of these numbers will change of the next few minutes. we will bring you those numbers in a few minutes. let's talk about what has happened today in terms of volume. that is another factor worth focusing on. volume, you can see the huge volume spikes we get at the end of the session. volume has been quite light. we have holidays and we have china wrapping up the rest of the week as a result of which, the market has taken its foot off the pedal. a light volume day as we come through to the end of the quarter. you normally expected to be a little bit different. a little bit of window dressing, a little bit of risk adjustment
when it comes to what has happened as people adjust portfolios and their mandates as they come through the beginning of next quarter. let's take a quick look and break it down from a sector point of view. you can do this on the bloomberg with the grr function. what has performed? financial services had a great time. defensive have also done quite well. the bond proxies have continued to outperform. real estate has done well. you can see what that looks like the next time around once we get through this wework story. travel and leisure has had a good time. you've also seen the thomas cook failure. and we get into more of the defensive nature of the market. food and beverage up 5.87%. namesike proxy increasingly looking like they have quite stretch valuations. people continue to buy those. where are we seeing opposite end of the market? back to the more cyclicals.
mining stocks have not done well. the car sector has not had a great time. technology has not done well. thanks down 1.2%. that is the story of the quarter -- banks down 1.2%. that is the story of the quarter. we started almost where we finished. august generated a lot of volatility. vonnie: let's look at today in the u.s. 2978.p 500 at flirting with the 3000 mark throughout the quarter. even though the s&p and the dow will nd -- will end the quarter in positive territory, the nasdaq may not. we will see how that ends. the treasury yield on the 10 year at 1.69. the dollar index at 99.40. crude oil weaker by 1.5%, $55.11. let's take a look at some stocks moving. it has been a quarter of individual stocks, given we have been in stasis index wide. new brands the best performer in
the s&p 500. it is up 6%. well on doing victoria's secret changeup. we see bonds doing particularly well. that stock is up 2.5%. it is interesting on the day forever 21 is filing for bankruptcy. jp morgan upgrading apple's price target to 2% for the stock -- up to percent for the stock after an analyst said the street is looking at the next season of products and underestimating how popular they will be. guy: let's turn our attention back to the conservative party conference which is now underway in manchester. the u.k. prime minister is still promising to deliver brexit with or without a deal on october 31.
the chancellor of the exchequer, the finance minister, spoke earlier to the party faithful about the preparations for no deal brexit. the uncertainty around brexit can be challenging. has made a deal out, more likely and a no deal outcome more manageable. every department now has the resources available to prepare for no deal. guy: the chancellor speaking earlier. let's go back to manchester, where we are rejoined by bloomberg's anchor anna edwards. let's talk about what we have had today. what kind of response did we get from the chancellor to this idea we are going to get this brexit? what was the chancellor promising? , he was was saying justifying why no deal needs to be on the table, but he was
still talking about the possibility of doing a deal. he said we will be leaving in 31 days. it is october. we will be leaving on the 31st, deal or no deal, he said. he says the value of having no deal on the table means they have a better chance of getting a deal, which is a line we have heard from the government many times. getting brexit done is the message they want you to lead with. it is hanging in the sailing in the exhibition hall. this is a conference also dominated by some of the scandals that have been talked about in the u.k. media and the fact this government has no majority in westminster. we are watching what is going on in london because we are mindful of what could be happening in westminster with other parties still sitting in the house of commons. we also heard a few things around infrastructure spending and boosting income for low-wage earners, which sounds like it could be heading toward a general election which would not be a big surprise for anybody. is -- obviously
jeremy corbyn is not the only verse -- the only voice in westminster right now. anna: certainly not the only voice. we have conservative mps and opposition parties. the question is whether they can change the course of history, whether they can scatter the government plans around brexit. the question as to whether they can do that hinges on whether they can find common ground. --y are bought together brought together by dislike of no deal brexit, but there is nothing besides that that unites them. i spoke to the attorney general, one of the key tory rebels, who said he would not be backing jeremy corbyn as an interim prime minister in any kind of unity government to move us onto the next stage of the general election. whether that loose grouping can find any more in common that a
dislike of no deal is one of the crucial questions. vonnie: thank you for all of your reporting. that is anna edwards in manchester. guy: more market implications of the mounting brexit uncertainty. it has been going on for a while. , global bank economist good the chancellor is talking about spending quite a lot of money and changing the fiscal rules and all kinds of other things that could be possible. is very scenario difficult to nail down at the moment. presumably, all of this is contingent on an election. what i am trying to do is differentiate between brexit planning and what i will get in a no deal brexit scenario to what we are hearing in terms of the general election. how easy is it to define the two? peter: impossible. any election we do get will be a
referendum on brexit. the question is when does the election happen? we hear from the government do or die we will leave by the 31st of october. let's not forget parliament has already said that is not going to happen. if the government has had to press ahead with the no deal on the 31st without a deal, they are basically breaking the law. under those circumstances, we tend to view reqs will have to be delayed, may until january, maybe longer. then the election takes place november, possibly december, but more likely november. the question is what are the issues going to be in the election? it will be a case of boris johnson saying i've tried my best to deliver and i cannot get brexit across the line, but vote for me, i promise we will get it done. lot there promising quite a and that clearly is something designed to win an election. -- is whatey are
they are doing now sufficient to deal with the outcome if we get a no deal brexit, which will be a shop to the u.k. laborre trying to push further and further to the left. how useful -- how much of what they're discussing now is useful if we end up in a no deal brexit scenario. basically, i suspect if no deal brexit were to happen, it would be a major shop. it may not be -- a major shock. it may not be on day one, the sky falls, but it gets lower over a few weeks. it is all well for the chancellor to say government departments are prepared, but what about businesses? businesses say they are not prepared. they do not know what to prepare for. i suspect this disruption which the business community will face could be quite significant
indeed. vonnie: from time to time we have an economist, on and say we booming -- things are in britain and it will not make a major difference. if anything it will improve things. what is the lie there, if there is one? if tourists were to spend time in london, would see many different right now? peter: if a tourist were to come to london the last thing they should do is watch tv news. you do not need to depress yourself. in terms of the way the country generally operates, obviously brexit is a topic of conversation which pops up from time to time. in terms of the way the country functions, it has not changed things. if you are running a business and you are exporting and want to invest, then it is difference because there is clearly evidence to suggest companies have cut back on investments and they may be waiting until times
are more clear on how to proceed further. on the surface, you do not really notice it unless you watch too much tv news. vonnie: as global equities economist for commerzbank, i youer where the math tells equities are going to do best in europe this year? extent, itome depends upon the economic cycle on one hand and the state of brexit on the other. with regard to the economic that, it is quite clear the economy is generally slowing across the european continent. i continue to favor defensive .tocks defensive's are doing quite well during the later part of this quarter. particularly decent dividend payers.
the insurance sector is another one to look out for. for is the place to look at [no audio] may be thinking about overweighting my u.k. holding slightly. we saw that in 2016, following the referendum result. the ftse outperformed briefly. i think we could see that again in the hard brexit scenario. guy: that is peter dixon. commerzbank global equities economist. let's check where european stocks have finished. the quarter is over, the month is over, the day is over. low volume today. a little bit of a dip toward the
end of the session followed by a brief bounce during the option. we are down .2%. the dax up .4%. the cac 40 up .6%. marketsuarter, these have basically gone sideways despite the volatility you saw during august. if you want to carry on the market coverage and are getting in the car and going home, you can do so on dab digital radio. the cable shall be taking to the air of the top of the hour. jonathan ferro is in new york. i will be joining him in london. on dab digital radio and allowed -- and around the world on all of your bloomberg devices. this is bloomberg. ♪
johnson. this is "the european close" on bloomberg markets. let's check in on first word news. >> president trump is suggesting the democrats heading the impeachment investigation, adam schiff, be arrested for treason. he is also demanding to meet the anonymous whistleblower behind the probe. adam schiff says congress will hear from the whistleblower soon. it is a matter of arranging security clearances. the trump administration is downplaying a revelation about u.s. investments in chinese markets. bloomberg reported the white house discussed the listing chinese companies from u.s. exchanges. the treasury department says there are currently no plans to stop chinese companies from listing in the u.s. raisesland, a law that the legal smoking age goes into effect. the new law raises the age from
18 to 21. the change does not apply to active military personnel. law willrs say the cover all electronic smoking devices and accessories. more problems for boeing. the company's $2.8 million of the air forces surveillance plane is being hampered by delays. the reason? twoar long closure of classified laboratories developing software for the project. the airport says boeing worked to address the deficiencies and gain certification for the lab. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. vonnie: thanks. time for our stock of the hour. today we learned there is not going to be one anytime soon. is withdrawing the prospectus for its ipo to focus on its core business. we are joined by abigail
doolittle. abigial: this is not a huge the prize considering this company lower the value of the ipo made official in august. they delayed it last week. downweek, the ceo stepping . you have new co-ceos, basically saying they are taking a reset. it is not just relative to this ipo. they are doing it with the leasing business itself. they are taking stock of everything going on. when you think about adam neumann's plans, many thought they were aggressive. it makes sense. here we are looking at the bond. the wework bond. this is the proxy we have for the stop. tradingust, a huge -- above par, and as these headlines came out that the ipo would be reduced in value, we now see the bond trading below par, similar to where it was a year ago. backing all of that up, the
numbers not going the right way. wasloss they put up in 2018 1.7 billion dollars, far greater than the two years prior. this makes sense. guy: this next question is kind of chicken and egg. does the fact that the ipo has been pulled have anything to do with the fact that the ipo landscape looks difficult, and then you can argue the reason looks difficult is because of all of the problems with wework? abigial: that is an interesting question. from a macro standpoint, over the last 12 months, we have a number of high-profile companies ahead of wework that came out and their ipos did well, but now not so much. the point i want to make is that while we are looking at the s&p white the s&p 500 -- in white, the s&p 500 up.
all of these other companies, , these companies have been not doing well since their ipo good that is a negative backdrop. the ipo's that went off last week, you can make the case that is influenced by wework, considering the weakness. out of budweiser, anheuser-busch in hong kong, though shares are still higher, but the german software company, those are down. from a macro standpoint, this reminds me a little of 2006, 2007, when you had a lot of companies rushing to market, along with private equity firms. you have to wonder what they were seeing. you have to wonder what are the bankers seeing they are pushing the unicorns out before they are well supported by investors? vonnie: i can think of one thing. it is time for our greatest bloomberg business flash.
the retail apocalypse claims another victim. forever 21 is filing for bankruptcy protection. the los angeles-based chain has more than 800 stores around the world and plans to close most of the stores in europe and asia. brewing roseweiser in its hong kong trading debut. the beer maker raised $5 million in the second-biggest ipo of the year. that gives it a $45 billion valuation. the deal was put on hold because of lackluster demand. that is your latest bloomberg business flash. coming up, it is our global battle of the charts. this is bloomberg. ♪
on track for the best quarter in a decade. outperforming other metals. that is a supply story. indonesia, the world's largest exporter of nickel put in place and export ban as of january 1, 2020. it will not export as much nickel. we are seeing underinvestment, which means new sources of supply are missing. as you know, i am focused on electric vehicles in california. nickel sulfate is important to the factories that go into those evs. 7% of nickel goes to stainless steel, but bloomberg is reporting factory demand in evs in nickel could increase 20% and that nickel could come from indonesia. couldndering if ev's drive the price of nickel higher. guy: i thought it was old school, the way you kick that off, but you turned it around. vonnie: a worthy adversary.
i am bringing clarity to rich clara's conversation about -- two rich clara's conversation -- to richard clara's conversation about national income. it could be an indication that wage pressures are not there, and if they are, what pressures are there are not adding to inflationary pressure. rich clarida for the second time this year pointing that out. it could be a $for the federal reserve. dovish sign for the federal reserve. guy: i'm going to give it to ed ludlow today. nice job, vonnie. ed ludlow is our winter. coming up, "balance of power." ♪
kevin: from bloomberg's washington bureau, i'm kevin cirilli. shery: and from new york, i am shery ahn. .e start today with trade the trump administration is downplaying news that it is discussing limits on u.s. investment in chinese companies and china's financial markets. china has vowed to continue opening its markets to foreign investment. we are joined by shawn donnan, bloomberg senior trait reporter in washington. great to have you with us. we are talking about a partial denial of this news but not necessarily a complete denial of all of the options the administration could be considering. partiale have seen a and we should say qualified denial from the u.s. treasury and white house traded iser advisorvarro -- trait peter navarro -- trade advisor peter navarro.