tv Bloomberg Markets European Close Bloomberg July 30, 2018 11:00am-12:00pm EDT
"bloomberg markets." caroline: here are the top stories we are covering from the bloomberg and around the world. it's a big week for central banks with decisions from japan, the u.s., and the u.k. we will look at what it could mean for the markets. we will discuss brexit and tech earnings with neil mackinnon from the tb capital and a big deal in private equity as the sports company genius -- we will talk with the ceo, mark locke. thelet's look at how markets are performing after 30 minutes until the end of midday in europe and about a 10th of a percent, looking at the sector breakdown because that is where it is hurting in tech. stage one to look out for in
europe or it utilities off by .4% picking up off the lows. miners selling off as well as we saw that dip in copper. financials on the upside. we had the best week for banks since all the way back in april 2017 last week. will we see earnings continue to drive to rush --? creeping into the bank of japan, what is that mean for japan and the bond market? islly today, the action happening in the debt market. look at the selloff, the finish to year off almost by eight, nine basis points. yieldsthe board, seeing spike higher as we get the ongoing speculation we could see fine-tuning for the bank of japan and a rate hike from the u.k. forex pushing higher -- seeing forex pushing higher against the dollar.
soar you have got to -- a after an exuberant weekend, heineken shares dropping by the most in almost three years. their numbers show margins are under pressure and they are growing too fast in brazil. margins aren't so good as they pick up the pace and latin america and bring out the numberng to hit their one competitor. heineken dropping as they say no longer will margins improved, they are going to go down by .2% in the market did not like it. let's have a look at what is happening in the fx market. green across the screens in terms of european fx pairs. the swedish krona, off by almost more than a percentage point. the economy is so strong. it gdp grew more than eight percentage points, looking strong in sweden. julie hyman has the asset market breakdown.
julie: if you take a look at u.s. stocks, seeing a the virgins --seeing the divergence. even deeper if you look at the s&p 500 information-technology index. there does not seem to be a particular catalyst, just the continuing selloff in technology and perhaps the continuing loss of saves in the group as the market leader and perhaps people continuing to take profits. a number of different factors weighing on the group and we have yet to get apple earnings after the bell tomorrow. so-called faang expanded. this has been one of the big out performers if you look at many of the components of this index, even the amazon and facebook and netflix back comprises it as well as tesla. many of them have been big out
performers this year. if you look at the past sessions, that has changed in a big way and we have seen an 8.5% drop. even just take facebook and twitter, which are part of this index over the past week. the selling is continuing. this raises questions if there is a perception change of the companies or if it is a temporary setback based on the latest earnings reports. very far from technology, let's pigs because that is responsible for tyson foods disappointment in part from pork tariffs on china and mexico weighing on prices at the same time input costs are going up. and that is something the company talked about today and is having a ripple effect on the other poultry and meat
producers. vonnie: thank you. week ofy for a crowded monetary decisions. the bank of japan announces its decision tomorrow. thursday, the bank of england expected to hike rates. central banks in brazil and india hold decisions this week. joining us is stephanie flanders, senior executive editor for bloomberg economics. mark carney is the cover story for the latest bloomberg markets magazine parade let's get into that story because at said he wask carney spending half his time on brexit and said this "let's be clear, it takes 50% of my time. " he spent a fair time in contingency planning, but now it crowds out other things. he mentioned it because the issues are important, there is a responsibility to manage the downside. howdy they continue to do this -- how do they continue to do
this when they don't have a plan for part two, let alone part one. stephanie: they have said repeatedly we are hoping to have clarity on what this post situation will be once britain tradeft and has a new relationship that everyone is equally in the dark. i was struck talking to governor carney that he admitted it was taking at least half of his time. i suspect that is a conservative estimate. this was something hardly on the radar when he became governor. even the possibility of a referendum. for that to be absorbing so much time, i was also interested in what he said about the financial system. there has been concerns on both sides of the channel and the continent about what the impact of britain leaving would have on the european financial centers because the european policy makers tend to be wanting to bring things on sure, they are not as open in their outlook in the financial sense as the u.k. and i can be a shame for europe
if you have a more closed financial system with the u.k.. and the importance of a global financial system as well. being: you talk about data dependent and you have to keep an eye on what data is coming down the pipe. at the moment, we don't even know if theresa may will be prime minister for very much longer or not. stephanie: even on the basic macros, it is a challenge as it is even if you did not worry about the shape of the post-brexit deal. ony will face a challenge thursday and raise interest rates almost everyone thinks. after that second rate rise, which leaves interest rates extremely low by historical standards, they have a dilemma. they look to get a bit of inflation and although the economy is weak, we are not sure the u.k. has the same productive potential it used to because of brexit. that is affecting them now. many people say if you look at the data, you say why are they raising interest rate?
they look down the road to a week situation out of the e.u. caroline: it is a fascinating interview you conducted with the central bank of england's head. what about normalizing policy? you talked to him about the challenges and this is something we have to be thinking front and center with the boj having such marked ripple affects at the moment. stephanie: the bank of japan is another issue i would love to get into. the conversation i had with governor carney -- i was pressing him a little bit, difficult when you get these guys on the record, the interview was last month. hard to be talking about specifics. i was pushing him on whether we had gone past the point where the risk -- said for many years the risk of tightening too soon were greater than the risks of tightening too late and i think that has been true for all the years since the global financial crisis and we are seeing that shift.
he admitted it was more of a 50-50 thing, that you did have to consider the risk of going to slowly when you think about the future. the other interesting thing that will happen on thursday is the government for the first time, the governor is going to release the bank of england's estimates of what the long run neutral interest rate is for the u.k., what we can think of as a debate. the fed has always had its estimate, but for the u.k. to weigh in to that debate will also help guide expectations. do we expect interest rates to be higher than they have been? and what are the global forces that are affecting that? caroline: you said as you started that you would want to get into the bank of japan discussion for i will lead you there. what are we looking at in terms of the tea leaves for the market? stephanie: our economist thinks the market has got a bit of it
-- a bit ahead of itself and expecting a great deal to happen tomorrow because although there is clearly a desire from the bank of japan to have a little bit more flexibility around that yield cap they have had for all these years, they are also concerned about the uncertainties in the global environment and there are domestic uncertainties on the political side in japan and the yen. the yen is the first thing to react when they think about potentially normalizing policy. i am not sure we will see as much as the market is anticipating tomorrow. it has reminded us all how important the bank of japan is to that global yield curve story. if is the thing pulling down at the far end, the final frontier of that very low, long-term yield if we see the bank of japan normalizing, that makes the story different in the u.s. as well potentially. vonnie: what about the other central banks we see this week? india? brazil? 's india -- stephanie: india is
interesting. our india economist is not expecting another rate rise from the r.b.i., which is a counter consensus call. he thinks they have done enough earlier this year. it will be interesting because they are weighing the impact of inflation on the oil price rise against the fact the domestic .conomy is not that strong i think brazil, not expecting so much and we have the u.s. it is interesting we mentioned the u.s. last, but nothing expected from the fed at all this week. vonnie: we are not even hardly talking about it. stephanie flanders, thank you for your input, senior executive editor for bloomberg economics joining us in new york. you can read's stephanie -- you can read stephanie's full interview in the latest bloomberg markets magazine online right now and on your newsstand. let's check in on first word
news. here is kailey leinz. kailey: italy's prime minister is preparing to burnish his government's ties with the trump administration. he meets with the president today at the white house. his political sponsors share president trump's antiestablishment rhetoric. he is expected to tout italy's role as a facilitator in u.s.-e.u. relations. a deadly wildfire that has forced tens of thousands to flee their home has slowed down. authorities are feeling optimistic. 6 people have died in the fire. a report from the malaysian government does little to solve biggest-aviation's mystery. malaysian airline flight 370 was steered off course deliver the and flown into the ocean. --vanished march 8, 2019
2014. global news 24 hours a day, on air and tictoc at twitter, powered by more 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. vonnie: more ahead on labor markets. hear what mark mobius has to say about emerging markets and whether the selloff is coming to an end. we focus on sports betting with genius sports ceo mark locke. the market from neil mackinnon, global macro strategist at vtb capital. this is bloomberg. ♪
miami vonnie quinn. i am vonnieyork, quinn. caroline: now it's time for the bloomberg business flash. bloomberg has learned the board of cbs will discuss the future of the ceo today. 16 women accused him of sexual harassment. he admits he may have made women feel uncomfortable by making advances. shares of the largest meat producer in the u.s. are falling. tyson foods cut the four-year forecast and said the escalating trade dispute is partly to blame. tyson says increased tariffs have negatively affected chicken and pork prices. a signed network appointment sellers -- network equipment sellers are gaining from new
technology. -- build fifth-generation mobile networks in the u.s. t-mobile set of customers in new york, los angeles, dallas, las vegas will run 5g technology next year. that is your bloomberg business flash. vonnie: it has been a tough year for emerging-market stocks and we may not have hit the bottom yet, especially in china. this is according to mark mobius . he told bloomberg how much further he expects shanghai shares to fall. been saying we expect a 30% decline and we are now 20% down in emerging markets depending on which index you look at. i expect a little bit more because of the interest rate fears you have. vonnie: human on to say there's a good chance we will get a recovery after the continuing decline. caroline: interesting comments. go> allows youtv <
♪ i ame: live from new york, vonnie quinn. caroline: i am caroline hyde with the european close minutes away. apex partners agreed to acquire genius sports, a london-based stats onthat collects games and players. you are saying it has been a couple of months or so you have been negotiating. what was the catalyst? mark: there was a ruling where something called -- outlawed sports betting was struck down and opened up a potentially $6
billion market for the potential companies like us to work with. caroline: we just need to remember how it is already problem in the u.k. betting on games left, right, and center. how big is the market in the u k and how does it help you educate us to how big it -- the u.s. could become? over during the world cup, $2 billion was bet in the u.k. on the world cup alone. if you look at the potential market in the u.s., some estimates have it at $150 billion a year. that will come into the regulation space in the next five years. caroline: i will jump in and asked what kind of services do you provide? do you work with all the major gambling companies? mark: yes. we work with most of the regulated sports betting operators. we also work closely hand-in-hand with sports
themselves. we provide integrity services to bothnology services the sports league federations to help them engage with their fans better and protect the integrity of the game. some concretes examples. i can understand what you mean when you say connected to fans, -- gamblinghelping shops, are you trying to figure out odds? how does it work? mark: the whole market is an ecosystem as -- and what we do is we work with gambling operators to help them understand what the risks are and the prices are and we use that to make sure the integrity of the game is protected for the sports. pga tourith mlb, the and the premier league and make sure the games are protected for the fans and the players alike. is something that fans need to be educated on. i know many are concerned about
what it means for the players and teams, but not something we concern ourselves with too much. mark: the u.k. is the gold standard. we have been dabbling in the u.k. for years, the queen has a bet well known on the horses. it is a well-known market in the u.k. k and in america, there's a lot of focus on the changes and we are helping to educate the market and understand the risks and the potential opportunities that will be able to benefit sports going forward. veryine: it has also been forward thinking when it comes to regulation on gaming. it does it remains so when it is distracted by brexit and the like? mark: obviously there are challenges. the u.k. is not perfect. regulators work hand-in-hand with the government. there is a lot of transparency and the taxation works well. all of these aspects put together means the u.k. is a good example for other countries to follow. vonnie: how do you safeguard sports from potential match
fixing? you say you work with premiership, but football has been one area where there has been a lot of scandals and i don't want to go so far as to say match fixing, but fifa has been embroiled in all sorts of scandals. mark: this is about education. our role is to understand and analyze data that is given in a way that makes sense to sports and leagues and help them educate the people involved in the sports. we are talking about the umpires,the officials, the whole ecosystem of the sport to make sure they understand the risks and how they can prevent things going wrong. vonnie: what are the numbers involved? partners pay apex you and how much revenue do you get every year? mark: we are keeping the financials of the deer under wraps at the moment. i think the key message from my point of view is the size of a
tax and the position they have -- apex and the position they have in the market. to invest in the organic and the acquisition led growth strategy. i am really excited about the opportunities provided to us. caroline: invest aggressively. many think when private equity get into a company they are aggressive about margins at cost. how have you talked about this with your own team? mark: our team understand the opportunities and it is clear with worldwide regulation changing that this is a growth story. we are very much investing in our staff and software and technology and acquisitions to make sure we capitalize on these opportunities as they arise. caroline: a little bit of m&a, come and talk to us about that. let's have a look at where european markets are trading just ahead of the close. it has been a risk off day. seeing utilities selloff, technology in particular.
it --p 40 just behind cat40 just behind it. u.s. dollar has been the week performer and nearly every european fx pair has been in the green. euro pound coming up .2%. let's get into the bond market because this is where the action is, all about the -- tomorrow and the ripple effect in developed markets yields. upmany, the blend currently five basis points and seeing movement in the italian market as well. seeing a movement in that across the board. this is bloomberg. ♪
-- 1.4%. some key companies, sayed on the downside. utilities seeing a bit of pain. -- sage on the downside. miners also off, seeing metals and copper grade -- top or trade lower. a little bit of green, financials up .3%. last week was the best week for european banks since 2017. seeing green as we talk about normalization and the bank of japan coming as soon as tomorrow to its monetary policy and this week we have the u.s., the u.k., india, so much central-bank action to be had. i want to share you what is this dragged down food and beverages. we had earnings from heineken. who doesn't like a bit of beer? brazilians like it so much they
are seeing rampant uptick in brazil and that means it is hitting margins. we saw the share price pummeled, as much as 3%, the worst today we are seeing for heineken all the way back three years ago. the reason is they had to guide down their margins for 2018. no longer do we see an uptick of a quarter percentage point. we will see margins downward. they are ramping up in brazil and trying to -- they are spending on marketing and it is not as profitable. they say give us three to five years in the margins will raise up in latin america and support our overall market growth. the market did not like what it heard this morning from heineken. i bring you what was the market move today, gmm that gave you what happened in terms of sovereign bond. we see a selloff across the board and yields higher and everyone focused on the bank of japan having to support the market and come in and buy
unlimited amounts of bonds in the five to 10 year spectrum trying to hold down yields all ahead of some fine-tuning we expect. have we got ahead of the curve? that is what stephanie flanders was telling us pray to perhaps a little bit too exuberant about the monetary policy change from the u.k.. spain up on the 10 year. finland up on the two-year. that is a look at the european market. vonnie: stocks are lower in the u.s. today. down 1.2% being ang.lower by the fa specifically twitter and netflix down and another 4% decline for facebook around 22% in the last sessions. other tech stocks are also lower by multiple percentage points at the moment in the session. caroline: let's get more on the
markets. we have global bond yields climbing as investors -- decision from the boj, boe, the fed and joining us is neil mackinnon, the tb capital -- vtb capital. how much is the market getting a bit over exuberant about the normalization we may not see from japan tomorrow? neil: there is clearly a risk of that. is reallye boj testing the water on how they may sort of retreat from this unconventional monetary policy they have had and we see the reaction in the .ond market right pronounced i think it is -- quite pronounced. i think it's one reason the dollar index is starting to roll because non-us bond yields have gone up little bit more than u.s. yields. i think what many boj watchers are thinking about tomorrow
morning is there has got to be some sort of discussion about that and it may be a little bit too early for the boj to fully retreat and may have to wait until october. in an environment where bond yields are generally pushing higher, we are seeing the u.s. 10 year near 30%. certainly it will be very challenging if not impossible for the bank of japan to stick to this zero yield curve. in the end, they will have to abandon it? caroline: what about the other central banks we will keep a close eye on? .he u.k. comes thursday it is pretty much a done deal they will be raising interest rates by a quarter of a percentage point. neil: it seems like it. most bank of england watchers are thinking it does look like a done deal and markets are giving an 85%, 90% probability to a rate hike. the u.k. economic data generally has been reasonably ok, quite
solid. positiveys have been as far as the manufacturing sector. inflation is coming down. i think the bank of england is perhaps concerned that wage inflation might start pushing up. again, that is not totally clear cut. ,t does look like a rate hike mark carney is infamous for his inconsistency as far as forward guidance is concerned. i want to point out the at sixi trading today point 82 offshore. talk about the chinese exchange rate and what it means for you at vtb capital. neil: i think that is a very relevant question because a lot of people in the market do keep an eye on the dollar renminbi
exchange rate when the renminbi weakens, some converters argue that is associated with risk off investment themes in the marketplace because we remember the previous devaluation that corrections stiff in global equity markets, feltrily because investors a currency devaluation is essentially an export of global deflation. this time around, i felt a china watchers think depreciation is a retaliation against president trump's tariffs and i think the real risk is we see further depreciation, a loss of technical -- a lot of technical analysts will have their eye on the 2016 level as the next technical target. i think you are right to raise that issue and i think it is relevant. the danger of the chinese authorities is if the depreciation becomes one of --
isaway and uncontrollable -- something we don't want to do at the moment. vonnie: i was going through the tech stocks and the faangs in particular. are you of the camp that says that is a sign of a rotation? neil: i think we have got to keep an eye on it. there are hearing parallels with -- eerie parallels and some have referred to this as.com two. the record high in facebook was 22. we have seen quite a tumble for facebook and twitter and the faang stocks is a group falling out of favor a little bit. broader into a much correction or very similar to mhat we have seen with dot co remains to be seen.
it suggests perhaps investment strategist are thinking about moving away from thats sector, perhaps moving into something like emerging-market equities, especially if the dollar index is to hold steady. those sorts of things are on the agenda and i think investors are watching closely the tech sector because it has been the leader for u.s. equities and that narrow leadership is a worry for many investors. caroline: this rotation is exactly what bank of america and merrill lynch was talking about. stock,oking at one tech tesla dipping into session lows and investors should prepare for an earnings miss. what do you think in terms of overall earnings estimates and how much does is it the slightest -- is it the slightest risk and you would be punished significantly? neil: it might be.
the u.s. earnings season, quite solid generally. what has caught everyone's attention is facebook, twitter, people are looking quite closely at profits, revenues, sales, all of these things. i think investors are very sensitive to any sort of deviation from expectations as far as the tech sector is concerned and this merit -- --row market leadership is in the past it has often been associated with market talk. you can understand why investors are sensitive to all of this and i think over the next week or two it is quite crucial for the direction of the overall u.s. equity markets, perhaps sort of the rest of this year. caroline: certainly when there -- they are still the most powerful stocks in the world. that is neil mackinnon. vonnie: checking on first word news, kailey leinz has that.
kailey: it is a sign the u.s. housing market may be stabilizing. contract signings to buy previously owned homes rose for the first time in three months. point 9%ome sales rose in june. the national association of realtors says more supply is needed to meet demand. major car producing nations man to meet tomorrow without the u.s. to discuss a response to president trump's threat of tariffs. the european union, canada, mexico, south korea, and japan will take part in geneva. president trump has backed off his plans for tariffs on cars from europe. -- technology and pharmaceutical companies from shifting products offshore. it will hit big banks with offshore operations even when they are paying for an taxes. bank lobbyists are urging the treasury department to come up with a fix. in zimbabwe, the first election
since independence in 1980 that doesn't have robert gabi's -- robert moog be -- the main opposition party is claiming the odds are stacked against it. global news 24 hours a day, on air and tictoc at twitter, powered by more 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bluebird. vonnie: coming up on -- this is bloomberg. vonnie: markets taking a bite out of tech today. we have two charts on that. this is bloomberg. ♪
vonnie: it is time for our global battle of the charts. you can see these on the bloomberg. it just run the function gtv < go>. >> we have tech stocks dragging down the sector quite a bit. out that industrials financialsons -- lifted up more when tech is more than 25% of the entire index? we have for the month, quite a lift and we have caterpillar also reporting, lifting the earnings estimate for the second time this year. even with trade tensions and financials and industrials, we see -- hopefully outpacing the drag tech caused. vonnie: that is a very, very contrasting chart. thank you. i think it is caroline battling today.
caroline: it is, indeed. i am sticking with the theme of all of our faangs. bank of america merrill lynch saying it is time to start shorting these tech darlings, facebook,he faangs of alphabet, netflix and google. we are also seeing the likes of apple that should be shorted. amazon, too. what i want to really show with this chart is how much we have seen a selloff. a quarter of a trillion dollars entire marked off the market cap of the faang sector over the course of the earnings season. this is how much you are like to see facebook hit so significantly and the fact facebook fell so much was a historic move. that is what bank of america merrill lynch is saying. this is what is really showing you we have a peek in the market -- peak in the market. now is the time to get out and move when you have slowdown in
monetary policy and likely to see this change up in the cycle. it is time to get out of these so-called technology darlings. it is time to short them. that is why i am showing you how much they have fallen and how much further the overall market capitalization can go. vonnie: we should take a little bit of credit because we had milton berg on before the talk for netflix and he said time short is now. you were onto something. imf rate i am going to give the crown to -- because -- i am afraid i am going to give the crown to -- because i feel like we have been ignoring other earnings. this is bloomberg. ♪
in its first quarter earnings, they said they were looking at doing the legal work to see if they can find new owners for universal music group and .ooking at ipo or estate sales they want to potentially make more acquisitions. today we get a furthering of that conversation, saying they are seeking strategic partners for universal music group. at the moment, we are hearing we are in exposed -- they are in exclusive talks to buy -- this is an acquisition story as a stake sale ipo story as well. vonnie: closed up 1.6% in the .ession did vivendi heineken forecasting a drop in profits. the brewery has been expanding more quickly than expected in brazil, where the business has lower margins. we have been speaking about the cfo about the challenges. >> you have to accept when you
are coming back with guidance that is lower for the year then what you said before the big market is not necessarily going to be happy. that is a fact of life. we say the market is right whatever it does. what is important is to take it one step further and understand this is a very good problem to have. it is true and we came out with our guidance, we did not expect this turnaround and this growth to happen this fast and that does play quite a bit. we are a portfolio company and have more than 80 countries and today in terms of volume, brazil is becoming pretty much in volume our number one country. in terms of profitability and not at average group margin because what we see is it is profitable for us to get it there. indeed, quite good news in the long term and good news for the fast integration. the short-term consequence is that we have to lower the
guidance for this year. >> you have to lower the guidance on the bottom line or else you are looking at lower margins. it seems like that is at the higher -- or because of sales, you expect more revenue. you expect more volume. you just put out 4.5% volume growth and the market was looking for 3.1% market growth. can you give us guidance as to your renewed revenue expectations? your renewed volume expectations going forward? >> absolutely. the topline came in really strong on the back of very good volume and also pricing, which is not easy. what we say for the second half without giving a precise guidance is that we expect the rose to continue on the topline and accelerate on the bottom line.
definitely growth expected. more growth in europe, for instance. also on the back of more -- comparable from last year. thehree to five years turnaround plan you are talking about from brazil to get the numbers up to the average group margins. into the factread that things are happening much participated, rather be below 3% and closer to 5%. is three what you are targeting? >> i would not confirm that today, but i am coming back to the fact that we do -- did acquire a business losing money and our business was high single digits and by combining the portfolios, we already delivered a number of synergies close to breweries that have a much acre footprint that enables us --
much bigger footprint that enables us to take the heineken brand and we can probably double it, get it everywhere in brazil because it is a huge country. caroline: that was the cfo of heineken speaking to us earlier. time now for the bloomberg business flash. it's a look at some of the biggest stories in the news right now. how long group has closed the biggest fund group ever. raised $18 billion for a fund in the u.s. across five industries bring among them, defense, and government services. they set a fundraising record last year. bmw is trying to offset the cost of higher tariffs triggered by the china trade war with the u.s. they are raising the price of some midsized sport utility 7%.cles by up to those models are built in the factory in south carolina. tesla has also raised prices in china. that is the latest business
flash. vonnie: top of the hour, -- suffered its first slide since 2018. tyson food slid. emma chandra is here with more. a victim of tariffs talks? the largest u.s. meat producer without with earnings and the key was the forecast. it slashed the outlook and reduced the etf range by $.70 and blamed the trade war for that. both china and mexico into -- imposed import tariffs on china and port -- chicken and pork. hog prices have plunged and eroded tyson's profitability. take a look at this gtv chart that shows that since march, number of big protein producers in the u.s. have been suffering. .e have got tyson here
in terms of tyson going back about what they said about trade, analysts are looking at that. they say while we won't know the magnitude of the impact of these trade tariffs, we can see the direction of the impact. vonnie: the thing about tyson is two thirds of the sale are from chicken and beef, does not -- does that not insulate them a little bit? emma: you would think so. 29% from chicken and just 14% from pork, but they are grappling with an oversupply. prices are the cheapest they have been since 2010. vonnie: 8 years. thanks to emma chandra with that stock of the hour. caroline.
caroline: fascinating implications of trade tariffs. let's have a look at how european markets finished the day. pretty much flat on the ftse 100. the story is tech falling. .10% -- x down by all about the faang selloffs and tech on the downside. fx was all about dollar weakness. we saw the fx in europe green across the board. today was a story of bonds. yields go higher as we see that anticipation of normalization just starting to creep into the bank of japan. the bond market it really wasn't yields on the higher side in europe. this is bloomberg. ♪ ♪ retail.
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balance of power. kindred spirits. >> president trump meets with the italian prime minister as the two leaders seek common ground endearing -- in dealing with the european union. stupid, butonomy, which way does the economy cut as november midterm elections loom. with secretary mnuchin forecasting 3% growth and some trump supporters worried about tariffs. we talk about -- the duel between president trump and robert mueller intensifies as the president attacked the legitimacy of the independent there mayid reports be evidence mr. trump new about the meeting with russian representatives during his campaign. shery: