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tv   Bloomberg Markets European Close  Bloomberg  July 12, 2018 11:00am-12:00pm EDT

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--omberg markets are you bloomberg markets. ♪ mark: here are the top stories we're covering on the bloomberg and from around the world. theresa may releasing her brexit plan, keeping much of her economy tied to the single market. banks will be cut loose. president trump arrived in london after reaffirming the u.s. commitment to nato allies pushed back on demand before military spending. and it is an all-out bidding war for sky investors waiting for after murdoch's next move comcast raises its next offer to $34 billion. have a look at what's happening to european equities here, 30 minutes away from the thursday luxembourg, by
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switzerland, and denmark. all of those gauges rising today . if you remember, the european stoxx 600 fell by 1.3%, the biggest decline in 2.5 weeks. strategiststanley said that the second-quarter results they provide near-term relief. lots to chat about today, such as shares earlier rising the most in's june the first, up i 5.2%. goldman sachs, upgrading the company to buy from neutral. the price target is at 9500 increaseplying a 25% from yesterday's close. a number of analysts, interestingly, have cut their outlook on greece, even though of the 28 analyst covering it, only one is recommending a sell rating.
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that is the share price here, which as you can say, -- c, has only moved in one direction. owning a majority in a chinese thet venture, showing that government in china is following through on the pledge to increasingly open up the economy to global operations. bmw planning to unveil the new ownership structure in its joint brilliant china auto holdings very soon according to people familiar with it. bmw shares are up by two thirds of 1% today. the bad news continues for the yuan yesterday, which basically meant that we had a debt offshore with a rebound today offshore rebounding by .6%. inminutes into the session the u.s., abigail, how is it looking over there? abigail: the bulls are back on
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the major averages. the nasdaq is higher after yesterday's hold back. over the last 10 sessions the major average is now up eight of those 10 sessions as the trade war fears abate today. overall investors appear to be looking past the possibility or the reality of a trade war and that it may intensify towards earnings, with kicks off tomorrow with the big tanks. take a look at what is happening sector wise. eight of the 11 sectors trading higher, but the financials interestingly are slightly lower. investors are on positive head of those big banks supporting and a pop, take a look at tech, , they boosting the s&p 500 sector waiting for the average. let's take a look at the numbers within the sector for the s&p 500. thes up 18% since 2008 on news that broadcom and the
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chipmaker is purchasing enterprise software for $18.9 billion. texas instruments is up nearly .% ahead of the earnings report and the storage company initiated at guggenheim with a by, the company said to be making great nice progress with its hybrid cloud platform. but if we hop act into the bloomberg and take a look at the same stocks, these are the daily moves for the faint stocks. -- fang stocks. and overall they did gain just slightly today, up half of 1%. down more than 5% yesterday, his worst day since june of 2017. volatility.on will it spread to stocks, mark? mark: thank you very much indeed, abigail. right, let's get to that egg
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news out of the u.k.. the storm over brexit, theresa may announcing a plan to keep the u.k. tied to the single market with a free-trade area for goods and services being cut loose. our bloomberg news director for europe, the middle east, and africa is with us. we had the three page a week ago, 98 today. fill in the gaps. >> there aren't a huge amount of new headlines, really. nothing has particularly shifted since the end of last week. it's those big items that you mentioned, free trade areas for goods, services, divergence for services, including banks and telecom services, that the u.k. can reportedly strike its own deals. most deals don't actually deal with services, that's something of a rarity, but the government is claiming that we are large and freed from the interference of europe in our future trade relationships around the world.
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there is a lot of detail in their around how the different regimes could work in terms of banking as well. that is a big question that the city has been asking, these russians about equivalency and regulation. the city doesn't like it, they have called it a big low, this proposal, making it harder for banks to do business across europe. other businesses, things like carmakers, they are quite pleased because it will mean hopefully less friction across the board. the big question now is what europe's. this is the government have been working on for a long time and the ball really is in the court of the european commission. we have a tweet saying that they will look at it, nothing more than that and we will have to wait and see if this is something that the europeans feel they can start negotiating on. mark: what about northern ireland? thatere was nothing new in document about the northern irish border. the british government says that this free trade agreement will
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be so comprehensive that there will be a need for a backstop or anything to guarantee an individual border in ireland because this does the job for them. the sticking point at the moment with talks to avoid no deal in october is this question of northern ireland. but we haven't gotten anything that wills basel, so be interesting, will that continue to hold up talks over the coming weeks? what about the banks? the plan seems to abandon them and they lose access to you market. out a fairlyut strongly worded statement today saying that it is a real blow to their business, this proposal. having said that, this is probably what they have been planning for and expecting for some time. they have known for a long time that the unfettered access to european markets was going to go . this idea of mutual recognition for regulations was never going to fly either. this is a little bit better, in
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,act, then absolutely no deal going on to wto rules. the banks have really been planning for this for a long time, putting in place contingency plans, opening branches within the european union. they have come out and said it's a bad deal for them, but it is probably about as good as anyone can reasonably expect without britain signing of wholesale for the whole of the single market. president trump weight in this morning, saying that this is in the plan that the people voted for. on migration it calls for something open and tolerant, ending the free movement of people and eu citizens don't get any priority, it seems. iss that work? >> migration one of the big red lines cited as the reason britain voted for brexit. the document does say that free movement will end.
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there is a crack in the door and the new brexit secretary dodged the question slightly today, saying that a lot of this is up for negotiation. the question is if citizens from the european union will get preferential treatment over people from the rest of the world. it sounds like that is a card that is up for discussion and it will be something that will be negotiated. mr. trump of course, making his always welcome interventions on this, i'm sure, from mrs. maeve's perspective. saying that >> it should have met brexit but isn't what the government voted for. he's on his way to london as we speak, having a big man -- dinner at the palace and i'm sure this will be on the agenda there. mark: of course. thank you. let's check in on bloomberg first word news with courtney donohoe. courtney: theresa may is dealing with brexit and hosting president trump, who arrives for his first trip to the u.k. since taking office.
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demonstrators are vowing to protest his visit. the president has a formal dinner tonight at the ancestral home in churchill. tomorrow he meet -- you will meet with theresa may and the queen. in brussels president reaffirmed his commitment to nato, saying that his tough talk about not spending enough has had an impact. >> yesterday i let them know i was extremely unhappy with what was happening. they have substantially up their commitment and now we are very happy and have a very powerful, very strong nato. much stronger than it was two days ago. still, the french president indicated that spending plans have not changed. new indicators on the gradual track for interest rate hikes. the overall consumer price index 2012..9%, the most since last month it rose just 1%
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thanks in part to falling utility prices. first-time claims for unemployment and if it's fell to a two-month low last week, decreasing by more than an expected 18,000 214,000, reflecting the volatility normal around the fourth of july and other holidays. than 2700 more journalists and analysts and more than 120 countries. i've courtney donohoe, this is bloomberg. mark? mark: u.k. regulators have a stern warning, move away from product based on the libor rate or risk more penalties. john, what is the fca worried about? john: it's not just the fca, is the financial regulators in general. they are worried about contracts like the interest rate swells through the derivatives. as the bond market mortgages in the u.s. have ties to this
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, it isn'tenchmark going to exist, basically. it's a benchmark that supposedly represents something that isn't happening. so, it is based on estimates. or should we say guesstimates of what it should be. which means it's not very robust . that means it's also open to manipulation. as we saw, there has been a lot of -- a number of court cases going through, heavy fines, banks don't like it and banks don't like the reputation of sitting on the panels that supply the evidence. the regulators don't want them and the idear 2021 is that we won't force them to do it anymore, so get to it. go at it. find something else. john, why aren't people using the alternatives available? what are they? john: they are available.
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there's a thing in the u.s. .alled sos far -- sofr we've got overnight rates here, sonia. and the japanese have come up with tuna. basically, these are rates based on transactions, actually transacted rates, they are called, meaning they're much more robust than libor. the trouble is, they tend to be -- well, they are overnight rates. basically transactions take place on an overnight acis these days. libor was based on what a major bank agreed to lend another major bank, some money for certain lengths of time. banks don't do that anymore. they pack that in. that is one of the reasons that libor doesn't really exist.
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mark: what can regulators due to make sure that tanks comply with ease calls? thingsne of the regulators have his eyebrows. they raise eyebrows. mark: this is eyebrow raising? or is this sterner? sterner.s is a bit the european union has a thing called the benchmark regulation rates,requires benchmark it's at certain conditions for what they should look like and what they should do. it requires them to be representative. than the regulators have to rule on whether something is representative. libor, currently, probably doesn't fit that criteria. mark: john glover, thanks for joining us there. vonnie: president trump arrives
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in london after a contentious nato summit. we have the latest on what the president hopes to accomplish .ith bilateral talks and we get unprecedented access inside the tesla 10 -- 10 to factory for what elon musk calls production held. -- tent factory for what elon ll.k calls production he investors are now waiting for rupert murdoch us next move in the sky bidding. this is bloomberg. ♪
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live, from new york, i'm vonnie quinn. mark: and live from the city of london, i'm mark barton. president trump arriving in london earlier today for a visit
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to the united kingdom. it's his first official visit as president and he is set to have with prime minister theresa may and business leaders tonight at a 300-year-old mansion where winston churchill was born. meanwhile in london, protesters are pulling out all the stops, including flying a giant trump baby the loon in parliament square. we are joined now live outside the u.s. ambassador's residents. give us the sense of occasion. what's the atmosphere like? >> hey, mark. president donald trump probably did not expect this type of reception to the u.k., a country that he described as being in turmoil just two days ago. to give you a sense of what's going on here, it's a massive security operation. we have helicopters just tracking movement on the ground.
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keep in mind, we are going to have a protest here in a little bit under an hour under the banner trump go home. flying into london, trump says he doesn't care about this, but the reality is he is going to barely spend any time in london. just keeping a very low profile. just spending a few hours in oxfordshire. what will the discussion revolve around? it's not as if the president and theresa may have had the warmest of relationships. maria: that's right, and theresa may has been under some much pressure this week. she put out a white paper and has had a number of resignations this week. the one thing you can argue for go is that exit is just a no area. might be too late for that. trump said that this looks like a brexit that is not the brexit that the people in the u.k. voted for.
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the other big item is going to be trade. remember, theresa may put so much of her own political capital in get this huge trade deal with the u.s., but we have had no progress on that and trump is doing the opposite, just not taking part in international trade anymore. the conversation has shifted but maybe that is an area where theresa may want -- might want to get some clarity. mark: how significant is it that the bulk of his visit to the u.k. is taking place in historic sites of significance outside london? maria: i think it's pretty significant that he will barely spend time in the city of london. like i pointed out before, he said he's not bothered by any of this and it's mine, but the truth is that tomorrow for example we get the baby trump. this is a big controversy for viewers that don't know. it's a gigantic balloon of the
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president in a nappy with a phone. it's probably a hostile environment that he doesn't want to be dealing with. he has barely spend any time in the city and it is a source of tension with the mayor of london. remember, he had to approve baby trump for it to fly over the city and he said that it was only so that people can protest. maybe it is an indication of the fact that trump just doesn't want to spend much time here. is there going to be any kind of statement or joint press availability or anything like that? or is this just a stopoff on his way to finland and his meeting with vladimir putin? maria: that's right, we arty know that the first leg was very contentious. probably he and theresa may will have to have a different town, saying that the u.k. and the u.s. are two in countries that will always have a special
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relationship. when it comes to facts and deals, she may still be trying to get a trade deal, but it is just not happening anytime soon as far as we know. will we be getting a statement on that? that is something that theresa may, given the pressure she has been under this week, would like to get, but it looks unlikely, though. mark: maria, thanks a lot. maria tadeo in london today. onnie: browse our charts bloomberg tv go. most particularly, catch up on key analysis and you can even save your favorites. this is bloomberg. ♪
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vonnie: live from new york, i'm vonnie quinn. mark live from london, i'm barton three we are counting you don't to the european close in roughly five minutes time. vonnie: time for the bloomberg
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business flash. down. of broadcom are analysts expressing doubts about the reasoning behind the $18.9 billion acquisition of software maker ca technologies. the next move is up to rupert murdoch. he will have to decide whether to increase fox's takeover bid comcast hasthat topped its original bid with a $34 billion offer. it's the latest move in international m&a fight. both wantd disney fox's entertainment assets. appear to be encouraged by the departure of papa john's founder and chairman john schnatter. shares are higher today. he resigned yesterday over his use of a racist slur. his resignation comes in months after he left his ceo role for
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critical comments about the nfl's national anthem protests. that is your latest bloomberg business flash. mark: we are four minutes and six seconds from the end of the thursday session. stocks rising in europe today. getting for the seventh day after the big drug yesterday. the concern yesterday was trade. speculation that talks between the u.s. and china will be forthcoming. check out the currency board today. the big political event today with the release of the white brexit paper. this is bloomberg. ♪
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mark: i'm mark barton. this is what happened at the end of the thursday session. most industry groups on the stoxx 600 rose today bar oil and
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gas and telecom getting for the seventh day after the biggest drop yesterday in two and a half weeks. biggest drop into a half weeks. decline of 1.3%. making up some of those losses yesterday for high-level talks between china and the u.s. going to take place on trade. that's what's driving sentiment today. we have some house price data today. london house prices extending their declines last month slumping demand in the capital blue line price expectations. price balance.is you can see where we are headed from the highs of 2014 for a six-month significantly more estate agents falling prices and rising ones albeit slower pace than previously on a national level prices remain broadly fat -- flat. day we talk about the
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irish bond market. the ecb buying of i response has increased relative to the so-called capital tier guideline. corresponding to the size of a country's economy. that has pushed down the yield on the company's 10 year bond. investors should still by the note stalled at an auction today. those were the comments of peter sorensen because the ecb buying is likely to remain high. that's the 10 year yield on the irish bond and finishing up with sky the plot thickens. because as you can see it was fox's turn yesterday. today it was comcast. 34 billion is what gets tabled. the offer price for two -- 14.75. greater than 21st century fox's offer for sky
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yesterday. that's giving a big lift. it seems like we are in a bit of a takeover tussle here. tussle part of a wider between disney and comcast for the entertainment assets of 21st century fox of which sky is a part. that's a look at european markets. vonnie: interesting moves in the u.s. a much stronger dollar index. primarily to the weakness of the japanese yen and the euro and we have crude oil $70 a barrel. we saw inventories yesterday which showed us a massive drawdown. the 210 spread continues to narrow and we have the mexican peso strengthening as well by quite an amount in fact. 18.78. yesterday we had a sea of red across world indices today.
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asia and europe making a bit of a comeback. currencies i already spoke about the yen and the peso. 6.68 offshore right now. still potentially short according to analysts at some banks out there. then of course the commodity sector. you can see that natural gas is having a down day once again. move it on. investors seem to be welcoming the lowly and trade wars. marika dysenchuk is here. >> you really need to distinction between what has been actually announced and implemented versus what has just been proposed or even threatened. there's actually a huge
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divergence between those. as it stands today trade is certainly a risk. we don't see an escalation of full-scale trade wars at this point so we think we should be ok. certainly a source of volatility. mark: what gives you the confidence we don't move on to the next level of a real full-blown trade war? economy is certainly a bit more isolated from global trade and other economies given that it is a bit more of a closed economy. wars will not be good for any economy. we don't think the united states ultimately will want to have that suffering from global growth because they are enjoying very strong growth and they're looking for that to continue. vonnie: what do you do in terms of fixed income? what do you prepare for? >> with the heightened volatility that we will see from yougs like trade war's certainly need to be more dynamic. you need to be more selective. we will see markets trade in and
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out. dislocationsarket from that rising volatility. some of the areas we are looking for are exactly those markets that may have sold off a bit more. european high-yield is just one of those that has suffered with heightened political risk. vonnie: what yield would you be needing? now aboutelds right 3.5% and given where government rates are in europe right now the vast majority of that yield is in fact spread. we think that's attractive as it is. the interesting dynamics we are seeing is that european high-yield actually has a spread higher than the u.s. market which typically only occurs when we are going through more severe crisis situations. we think that current yields it's a very attractive lace to be in europe. its is likely we see a rate cut in 2020 and a rate hike
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in the united states. would you abide by that? >> in the united states we the federalnk reserve can hike rates faster than what the market is pricing. as we stand today the market is only pricing three rate hikes between now and the end of 2019. we think we could see five potentially even six. go back to the data. we've got growth this quarter likely to come in at or above 4% and unemployment rates are the lowest they have been in almost 50 years. mark: there has been discussion about the bank of england in august. what should they do, what could they do given the flip-flop we saw in may. given the brexit uncertainty or maybe slightly less in the wake of the last week's news flow. is august the current month for the bank of england to hike rates are not? -- or not? >> we think so. that is about 80% priced into markets right now. mark: which it was before the
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may meeting at some juncture. >> very true. .here are two components certainly one is brexit through the momentum seems to be toward a softer brexit which will allow them to hike rates. more importantly they have indicated they are very data dependent. that's what we didn't see in the lead up to the may bank of england meeting but we have seen the data come through. gdp earlier this week. we saw pmi's earlier this month. those have essentially cleared the way for the bank of england to be able to hike rates. vonnie: one final one on the 10 year yield and the yield curve. we are seeing a low today of 26 and change basis points. the flattening of the yield curve has been an interesting thing to watch. it is been pretty significant. we think it can continue. a lot of people are talking about the risk of recession that might indicate. thisink it is typical at
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point in the tightening cycle to see the yield curve continue to flatten and importantly the fed is hiking not to combat high inflation but rather to normalize policy. we don't think the flattening yield curve. . we don't think it will disrupt the fed. we think that recession as a far-off risk. you, marika dysenchuk at jpmorgan asset management. vonnie: here's courtney donohoe. >> both sides in the u.s. china trade war are signaling that they are willing to -- resume negotiations. learned that the u.s. is also in favor of negotiating. the trump administration increased the pressure by unveiling a list of 200 billion dollars in chinese products that could face higher tariffs. output may be stretched to the limit by supply
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crisis. the international energy agency warns that the cartels gulf members may have to pump almost as much crude as they can to cover the losses from venezuela and iran. the iaea predicts saudi arabia will have to draw more than ever before on its spare production capacity. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm courtney donohoe. this is bloomberg. vonnie: coming up, england didn't quite manage to bring it home in the world cup. but will it pull it off in the battle of the charts and will that be a consolation? we'll find out. this is bloomberg. ♪
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vonnie: time for our global
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battle of the charts. you can see these charts on the bloomberg by running the function g tv . kicking things off is bloomberg's hannah palmer. >> we are halfway into the year. let's take a look and see how hedge funds have done so far. struggled tolly beat the broader stock market. take a look at the first quarter of this year. they actually beat the s&p for the first time in about three years. investors are hoping this is the beginning of a comeback that they might actually be making money on some of the volatility that we have seen. the secondok at quarter data hedge funds yet again failed to beat the s&p disappointing investors. this comeback or turnaround hasn't quite lived up to fruition. we will watch for the rest to see how they do. in the meantime if you want to on theut the chart bloomberg had to g tv . vonnie: is wonderful chart. hedge fundy a manager would say they can feel
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the tingling. hannahve you got to be -- beat hannah? tinglingas feeling the as well. that disappeared. i had a choice today. it was to dig myself into a hole and dairy myself -- very myself ury myself or confront my demons. the period inat between england's last two world cup semifinal losses. i'm really hurting myself by doing this. the loss in july was against germany when we lost last night in extra time. 2-1 was the score. i thought if you had invested in sterling how could you have made money or lost money?
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the white line is sterling against the swiss franc as in the swiss franc has risen by 87%. so out of the 16 major currencies the currency to bet on against sterling in that period of 28 years was the franc. the yellow line is the singapore dollar. even the dollar has outperformed sterling by 24%. all currencies have fared well against the pound. four have fallen in that time. the mexican peso is down by 46%. the big loser is the rand. in that 28 year space of pain the mexican peso fell by 73%. that was cathartic. g tv . vonnie: are you sure? were you ruminating on that all morning? that is one tough thing to have to bear. i'm so sorry. i'm wondering if you're looking at croatia or france for the
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actual bringing it home? mark: i have to say friends because my wife is french. she tells me our kids are half french so i better go for france. vonnie: croatia did the deed. you are always going to top my bracket so you've got the win today. i hope it is some consolation. this is bloomberg. ♪
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vonnie: live from new york, i'm vonnie quinn. mark: i'm mark barton. this is the european close. in his quest for tesla
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to produce 500,000 model threes for the week he has been firing contractors and now a very large tent. bloomberg reporters got special access. you can read all about it in the newest edition of bloomberg businessweek. elon's inferno. to talk about tesla let's bring in jeff osborne. he joins us from san francisco. analysts are really not waiving the banner for tesla anymore. what's your base case scenario? >> we have some concerns on the production volumes hitting the targets to drive positive cash amount ofed with the initiatives that they have underway. writing from the china facility this week that was announced they will likely do something in europe. shopping list that elon musk wants to accomplishments close to $20
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billion. our concerns are both on the ability to actually hit the volume targets as well as the ability to pay for everything. vonnie: have you had a chance to read this amazing businessweek piece? it begins with all of those types of things. creditunt of debt and downgrades. some very to reveal troubling things like health and safety issues. are those things that you have been concentrating at all or problem for the carmaker going forward? in terms of those types of externalities they're certainly an issue around the edges. quality has been an issue we have been concerned about in terms of the availability of data for us to assess in terms of worker safety and potential unionization. those are all minor variables as part of our thesis of having an underweight rating on the stock.
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certainly the areas of concern the article highlighted but really just the nuts and bolts of manufacturing as the primary issue we have. this company was supposed to be a lights out fully automated company and they have not been able to hit those types of volumes using the robot. on the model three lines it has been robotic. but when the robots break down employees have to pick up the slack. currently tesla has 10,000 workers at fremont plant and gm and toyota have less than half that. is this sustainable? >> i think it is sustainable in the near term. in general there has been a lot of overpromising and under deliver net tesla sense of has become a public company. quite frankly for the other issues that have popped up they have tended to figure it out overtime. they bought a robotics company in germany. they certainly have the talent to get this done.
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i imagine all those engineers want to take a typical august holiday and are working very hard in july. i think the hardest part will be to transition for more manual assembly over to the full isotics and what the impact on the margin profile of the company when that transition happens will be key for investors to watch. they are under a bit of a gun. he reported this morning that the tax credit is starting to expire or phase out so they have had the 200,000 vehicles. they certainly have a gun to their head over the next six to nine months. vonnie: how concerned are you about the short interest? it's about 27% at the moment. probably the highest of -- listed companies. will shorts get rewarded? >> i think they will overtime. one of the issues is this company has a lot of convertible
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debt and so a lot of the short interest is offsetting people that are along the debt. there's certainly a lot of volatility in the market. there is an opportunity for people to make money and again there's not a lot of shorts out there that structurally think this is going to zero. there are certainly handful of them. in the near-term volatility can allow these folks to make money. vonnie: there are 10 cells and 10 buys. fair to say that the balance is tipped in any particular direction? what are people waiting to see if there is some kind of acquisition or something that might tip the scales in favor of elon musk or against? >> it is a fairly even balance of by holds and sells on the stock. tencent of m&a you saw take a passive 5% stake in the company. china is the largest market in the world. if someone were to buy this
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company a lot of people that i speak with think it would be a chinese type company and not a google or apple domestically. certainly that could happen. it isn't part of our thesis. i think for anyone to want to buy the company you would want to see they could effectively make high-quality automobiles that an effective margin. one -- jeff martin osborne, thank you. he's a $200 price target on tesla right now. that article is in bloomberg businessweek on your new stands right now all about elon's inferno. mark: let's get to the stock of the hour. the fox chase for sky stepping up. the show is far from over. rival comcast making a $34 billion play for the british broadcaster. 5.4% premium to fox's offer. joining us now with more on this skyhigh bidding war, joe mays,
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bloomberg media and telecom reporter. advantage who right now? >> comcast for now. some in the market are showing more sign of aggression and willingness to get sky asset. they haven't knocked fox out of the water. mark: it's not huge premium to fox. is there a knockout price? some investors are greedy and they want much higher. what's realistic? >> the shares are trading about 15 pounds. perhaps an offer in that region. the question is how much fire do disney and fox comcast have in this battle. we will have to say. what was the significance in the u.k. today approving the fox sky bid? does that have any bearing or not? >> the market had pretty much come to the conclusion that clearance was going to happen.
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the previous culture secretary said he was happy for the deal to go through. it has taken 19 months for rupert murdoch to get that clearance. he a very controversial figure. what would you expect the next move to be? from what i understand comcast does its bid won the backing of skies independent directors. it is lining up financing. do we know what sky's thinking is right now? >> at the moment martin gilbert has been simply recommending the offer at the higher price trade yesterday recommending the fox offer. this morning recommending the comcast offer. mark: he's trying to get the most money. >> the question is does fox come back? it could just continue. mark: is there a carve up?
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is that the most probable outcome? someone gets one asset. maybe disney gets 21st century fox and comcast gets sky. they seem to want sky. >> that theory is gaining increasingly. disney ends up with most of the fox assets. either party taking on too much debt could happen. neither party has come out and said they would be happy with a carve up. public positions of both parties is we want fox and sky. mark: we have a bidding war. bloomberg media and telecom reporter. what a day it has been today. stocks rising. seventh day and eight for european benchmarks. trade concerns diminishing after yesterday's fears sent stocks down for two and half weeks. this is bloomberg. ♪
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retail.
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under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store
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david: it is noon in washington. from new york, i'm david westin. shery: i'm shery ahn. welcome to bloomberg markets: balance of power with a focus on the intersection of politics and the economy. david: your the top stories. making the president happy. president trump says he has been very unhappy with nato allies butt their contribution they have agreed to up their defense budgets and he thinks nato is stronger than it was two days ago. let's talk. trade rhetoricn amid hints the chinese trade officials maybe trying to figure out a way to start talking again despite looming tariffs. and are we there yet? been on a rate hike path. the question is whether trade uncertainties and a stronger dollar may give the fed pause. from patrick harker.

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