tv On the Move Bloomberg February 22, 2016 2:30am-4:01am EST
got -- guy:, welcome to "on the move. we're counting you down to the european open. here is what we're watching. pound sinks the most in a month versus the dollar as the london mayor boris johnson says he will campaign for a your -- you can't exit from the european union. bank postedst quarterly pretax loss of $800 million as revenue slumps and
bad loan charges mount. the biggest conference kicks off in barcelona and we will be speaking to the ceo of ford from the world congress. dominating boris out in the story now making his mark last night. i guess that does make it harder for those who want to keep the u.k. in david cameron. how is that in berlin? hans: they are waking up to the story now and in some of the papers they had british polling on what the likelihood of the brexit would be. most of the conversation still dominate this refugee story but very much on the brexit in the financial press. will chat all about this throughout the show. let me take you to the bloomberg function and show me what you
think -- and show you what we think is the fair value. this is the line to focus on here. it looks like we will get a positive open for european equities after a solid week last week, one of the best you see for european equities for quite some time but you have to remember that there were some negative views before that. hans: that negativity is coming into the hsbc story this morning. the stock is indented two different places. then when you have the new the themselves are being investigated among the banks at the sbc. the dolly one strengthening a little bit. certainly going against this argument that we will see massive weakening and quicker tick -- take a quick look at brent. of course the euro pound story, we really saw the pound we can on the back of that news by easter johnson.
when -- by mr. johnson. it was already weakening and then it weakened even more. let's get the bloomberg first word within a vucevic -- with nejra cehic. nejra: hsbc has reported a surprise pre-quarter third quarter -- pretax third-quarter loss. acceleratingeen plans to scale back the vast global footprint seeking to boost profitability and reverse a share slump. they also said they have been investigated by the sec over hiring practices in asia. arabia is back in saudi -- backing saudi arabia's and russia's decision. energy minister may meet his saudi counterpart later. hillary clinton eked out a
victory against bernie sanders in the nevada caucuses while donald trump won the republican caucus in south carolina. ,eb bush was the front runner suspended his campaign after a disappointing finish in south carolina. >> i am proud of the campaign we have run to unify our country and to advocate conservative solutions that would give more americans the opportunity to rise up and reach their god-given potential. but the people of iowa have spoken and i respect their decision. so tonight i am suspending my campaign. >> global news powered by our 2400 journalists around the world. guy: the pound fell the most in more than a month after the london mayor boris johnson said that he basically campaign for
the u.k. to leave. this is what he said on his .oorstep last night >> i decided after a huge amount of heartache that the last thing i wanted was to go against david cameron or the government. but i don't think there is anything else i can do. i will be advocating that they leave. a better deal for the people of this country. to save them money and to take back control. guy: let's talk about what's happening in the pound. goldman sachs said it may fall to 1.15. what to take you to this chart which is the europe sterling group risk reversal volatility chart.
referendum scottish vote. this is a measure of how much the market thinks that the pound will fall and since the start of this year that chart has gone as youmuch vertical and can see it's a pretty negative story for sterling. richardson in stuart the cio who joins us now. a situation where we watching this story develop at a fairly elevated pace. we have a deal on the table and the boris decision made. give us your thoughts and how you think you trade next few months. >> you'll have to be looking at sentiment and headlines. and what you should be doing is trying to fade some of the noise .
you see these big gaps and if you try to chase them it will be hard to make money to sometimes need to fade some of these moves but the overall message is that this looks a comparison sterling story. it will be hard in the next four months to be getting a real story.positive sterling trading from the bearish side but don't get sucked into chasing these big gaps. guy: is a great story about how this is fantastic for the u.k. stocks. is that not a trade to make. does the sterling make you more positive for u.k. equities? is a great example of u.k. equities benefiting from a big decline in sterling. interest rates came crashing down which is great for the economy. this time it's a bit different. with interest rates that are expected to be zero already. we've seen somewhat weaker
pounds for a bit of time over the last several years. i don't big it was a massively obvious story because of the different interest rate structure that we see today. hans: moving away from the europe shores to the oil story do see this as one of supply or do we have a fundamental demand problem? >> looking back in the last 18 months it's clearly been a supply story and i think it's beginning to shift. bute not apparent today there has also been a lot of talk about the production freeze and potential production cuts in the next year or two as the big producers try to work together seenat the moment we have continual downgrades to global gdp growth. this is not a great story for demand.
if we escape recession and find some supply of ballots. reason we go to a global and u.s. recession. getse balance story further into 2017. but when you look at oil windfall in 75% from the high we have to be looking for some kind of stabilization. guy:, you are feeling fairly defensive? we'll get more of his defensive thoughts and we will speak to the ceo life from the world mobile congress in barcelona. ♪
that is the biggest decline that we have seen in a year on the cable rates as a result of what is happening. that is the story right now. let's get the take of what is happening for the mobile world congress. the delegates are swarming to see the latest in technology from virtual reality to 5g products. not just smartphones but smartphone providers. our leaders are speaking to one of the biggest. caroline? caroline: i am indeed, i. guy. none other than the chief executive of ford. launching a car at a tech conference. you are plowing in the technology. >> here we are really emphasizing the point that we
are transitioning from an auto company to an auto and mobility company. one of the reasons we are here is because we are talking about our core business which is designing and developing great utilities. it is also packed with great technology that will help you with the -- as a driver. what better way been seeing a technology-savvy audience? caroline: paint a picture for me. when will i not be driving? you are already investing a lot and driver assist. when do i not need to do any of that? >> we will probably see by the end of the decade that somebody will introduce a fully of economists vehicle -- autonomous vehicle. caroline: will it be you? >> it may be. the level we are shooting to come out with like the tech
companies is a vehicle or the driver does not need to take control in a defined area. when we do come out we want to make sure it is true to our brand and our brand has always been about accessibility. caroline: who wins out? is it you, google? apple? do they become competition? caroline: our view is we want to make sure that we can continue to be a leader in this area. we are not a leader in our core business but we are a leader in semiautonomous features. features that keep you in your lane or adapt your speed on the highway. one of the announcements we are making here is we are tripling our engineering investment in those semiautonomous features. at the same time we are
investing in autonomous vehicles and as we do that we will work with a lot of different partners. makes sense to work with others we will and where it makes sense to work on our own, we will. caroline: in silicon valley, you have r&d area, is it google you have been mostly discussing with? who would like to own the data? >> this is the wonderful thing about a big facility. we work with startups and incubators. we work with large tech companies and small tech companies. as we do that, we're learning a lot and establishing harder ships. -- partnerships. caroline: any key announcements? >> we talk with a lot of different tech companies about what we call our smart mobility plan. you can appreciate that for
confidentiality reasons we do not talk about that publicly. our it comes to the data approach is that the customer owns the data and we want to be a trusted steward of that data. if the customer opts in to share that with us we want to make sure we're giving them a benefit of return that makes them more productive or safe and allows them to enjoy their vehicle better. steward.o be a trusted caroline: what about the apple negotiations happening so strongly in the united states? we are watching the situation closely but we come back from our standpoint, we take the security and the privacy of our customer data seriously. stewardto be a trusted and we are committed to protect. caroline: you are so prevalent
being hit by the oil situation as well. bring it back to the u.k.. what do you think about the brexit situation in london. we have boris johnson coming out. >> it is an important issue for the british public and as a large employer in the u.k. what we have said is that it is really important for the u.k. to be part of a single market. good for all is u.k. businesses and at the same time we also feel that having the u.k. as part of a reformed eu is in the best interest of the u.k.. but that will be decided on by the british public. caroline: are you optimistic about the economic sentiment out there? >> it depends on what heart of the world you are looking at. in the u.s., we think that the economy is fairly strong and supportive of auto sales.
in europe we continue to see growth, moderate growth. we are back to profitability is a company. in china, we actually see the chinese economy -- the government said it would grow less than 7%. growth at anyhat time of the year and we think .he auto industry will do well down in south america, we see that market is very tough and the auto industry will probably contract. caroline: such a global picture for us and such tech expertise. chief executive of ford. not just an automobile company, but eight mobility company. throwing it back to you guys. caroline hyde joining us out of barcelona with that ford interview.
back becausee you we have seen a fairly big move on the cable rates. we have been down to 141 .75 on cable. leverage selling is causing this. to bounce offng of that. but nevertheless, the boris effect is certainly front and center for the fx market this morning. there are going to be people in certain instances who are reasonably happy. the bank of england is concerned about this elevated level of sterling. plenty of ceos would like lower sterling. maybe boris has done them a favor. hans: but probably not mr. fields from ford. when you look at the strong dollar that is such a way on the u.s. economy. what has the strong dollar done and has it been a rate hike for the u.s. economy?
in europe, when we look at the macro picture, we are getting back into currency wars and we will see how that plays out on the macro effect. guy: who would have thought that boris would be leading the charge, but you cannot exclude that. few minutesack in a time. we are minutes away from the market open. we will look at the potential movers including hsbc which reported a break -- big pretax loss this morning.
europe's biggest bank reported a surprise fourth-quarter pretax loss of $850 million. estimates of been for $1.59 billion profit which comes as stuart gulliver has been accelerating plans to scale back the lender's vast global footprint. headthe other does with this morning is that hsbc is among financial institutions being investigated by the u.s. securities and exchange commission in relation to their hiring practices in asia-pacific. home depot is being calm down as as one 10% by analysts company has made a $200 billion counter bid. guy: european stocks cash open up 1%.
guy: welcome to on the move. i am guy johnson. right here in the city of london. alongside hans nichols. where moments away from the start of european trading. he is your morning brief. the brexit battle begins. the pound sinks the most. moore's johnson says he will campaign for a u.k. exit from the european union. a big mess at hsbc. europe's biggest bank posts a loss of $800 million in revenue slumps and bad loan charges mount. barcelona. cells --ing smartphone
sales -- seconds away from the european cash open it looks like european equities are going to open on and up on around 8%. let's go to nara for the open. nejra: we saw gains in asia. if you look at the shanghai comp said rising the most this month. let's take a look at how european stocks are opening. we are seeing ftse 100 going up .3%. this after david cameron got that deal in brussels on friday night. deal to try and avert a brexit. since then we have heard london mayor boris johnson saying he is going to support the lead camp. cap 40 unchanged at the moment. -- cac 40 unchanged at the moment. 9/10 -- up .9%.
let's take a look at the pound because this is a trade we have been keeping an eye on. you can see the pound down against the dollar. dropped the most in a month after boris johnson came out saying he would support the lead camp. we have seen the pound gain the most in two weeks after david cameron got that deal in brussels. having a look at euro versus the pound, the pound weakening versus the euro. the euro at sterling volatility highest if you look at six-month volatility at its highest since 2011. britain's position in the eu going for now. looking at the stocks we are watching today. hsbc is a big one. you can see there, down almost 2.6%. down in hong kong earlier as well. this is after the europe's
biggest bank reported a fourth quarter loss. analysts had been expecting a profit. this report comes against a backdrop the ceo really trying to accelerate plans to scale footprint. global also of course hsbc saying it is a multinational institution, inng investigated by the sec regard to hiring practices in asia. uptish foods we are seeing .9%. it only saw a marginal decline for the group full-year. home retail unchanged at the moment. and a moment of madness i said the stocks to watch, home retail was down 10%. of course it was called up 10%. this is after steinhoff coming forward and putting in a counter
bid, pitting itself against home retail group. guy? just crossed the bottom of the screen. euro-dollar is moving on the back of that. just pay attention to that move. your sing a decent move, extending losses on the back of that weaker than expected french data. around .4%.own we will get you more details. i want to give you a sense of how the flows are moving this morning. financials unsurprisingly down. it is in health care that are leaving the moves. hugey, a huge rise, with a conference sticking place in houston. energy is trading up at 1.3%. 1.65 percent. that is the rotation you are seeing. let's get more on the hsbc story. bank'sd chin is at the
asian headquarters in hong kong. rosalind: a big surprise for investors, hsbc posted a fourth quarter loss, compared to estimates of a profit of $1.95 billion. operating cost came in at $11.5 billion for the full year. the bank says profit came in at 18.9 billion dollars. -- $18.9 billion. equity came in at 7.2%. infected byted -- the bad loans given to oil companies and gas companies. quarter increased of 32% on bad loans and credit risk is it -- credit risk provision. income. fog in
-- 124r, the ceo says million -- $124 billion last year which is almost half to this time 2017. for the fourth quarter though, $.10. sayshairman, douglas flint the group financial performance was broadly satisfactory. guy: rosalind, thank you very much. rosalind chin at hsbc hq in hong kong. dubai stocks selling to a bull market. january 21 loans. european equities on their foreign for as well, hans. hans: i am joined by marcel fratzscher. i'll is have to remind that it is an acronym for the european german institute.
all the german companies looking at what is happening across the cake potential -- the u.k. potential brexit. have a price in the prospect of a exit? >> people realize what will happen if one of our most trading partners brics away. what will it mean for financial markets in particular? maybe there's something good in their for frankfurt. it is all starting now. so far, we thought it can't possibly happen. hans: this is your by real estate in frankfurt pitch? this is your play? traded.the euros london, most of the financial market products are based in london. they hope the continent might profit.
hans: when you look at these , your written about the banks, there is also macro uncertainty. what is the biggest threat to the european economy? we have major problems in the banks. ahead of the major consolidation in the banking sector in the euro area. not just in italy where we have a lot of banks, but also germany where the is huge difficulty because of interest rates. the macro economy, we see the global demand for exports slowing down. confidence consumer and company confidence is falling. that is weighing on growth. we expect the projections for this year in terms of growth to be revised down quite significantly. on: marcel, that's hans: marcel comment i've question about
london. are you worried about deutsche bank's business model? marcel: the feeling here in germany is deutsche bank has quite a strong position. an issue of liquidity and not really of solvency. what we see is deutsche bank is pulling through. the worry is more each -- is much more about smaller banks. business models in particular, less about its bank which is a global bank can diversify its risks. is this was really a temporary episode and people are not worried that deutsche bank might have difficulties. hans: marcel not worried about deutsche bank. should we be worried about europe's biggest bank? the numbers are quite terrifying. so much negative rate, revelatory stories, just
nejra: thanks guy. a busy weekend. primaries,esidential hillary clinton eat out a victory against bernie sanders while donald trump one the group republican contest in south carolina. jeb bush once the front runner to become the replug in nominee, suspended his campaign. >> i am proud of the campaign we have run to unify our country. to advocate conservative solutions that would give more americans opportunity to rise up and reach their potential. the people of iowa and new hampshire and south carolina have spoken. i respect their decision. tonight, i am suspended my campaign. yeah. makeup shares at hsbc are trading lower after a report of a surprise fourth quarter the text loss of $858 million.
stewart has been -- mobile footprint seeking to boost profitability. oil is on the rise after russia said talks on an outlook should be done by march. nigeria is backing saudi arabia. africa's biggest producer says iran and iraq should be given some room to win back market shares. global news, 20 for hours a day, powered by our 2400 journalists and more than 150 news bureaus around the world. guy: talking about the fact you but it used to volatility. it is the new world. strategy of financial repression , is now not working. stewart richardson still with us. where in a world of negative rates now. very hard to calculate. canolatility one thing we
deduce we will be coming out of this echo stewart: -- out of this? stewart: the u.s. was trying to -- we had this big explosion and also some volatility led by fx. i think it is not just low rates in central banks. we got this question now of central bank policies period a working? what are the short-term and long-term costs? this is leading to this higher volatility environment. what is the high that's what is the long-term prospects for growth -- what is the long-term prospect for growth? spiking higher? -- doould depend on other we go spiking through 30 where
we need some other trick it's very possible. i think they're going to be worries on volatility spikes in the economy. on then't put a handle economy. draghi is claiming one thing. guy: can you make that trade. -- can he make that trade? the problem is he is a regulator. there are other problems to go along with that. does the central bank have wiggle room here? view, they are close to end of the road. they're trying to lose their tools they talk about. try to make a small difference and get all of us to buy into the narrative. the market is not buying into the narrative anymore. you still the reaction from the boj if you weeks ago. he saw a pretty poor performance
from the european equities. i think voters -- investors don't quite see what the end game is. you got to give us something more here. draghi can't. guys in to the fiscal terms of and for such a spending. i to? some of the other things around -- trying to balance some the other things around the world. draghi can fiddle but the risk is here. guy: difficult. stewart: very difficult situation. guy: i was fascinated by boris johnson's statement in front of his house. he did his best to be britain's tourism minister. probably going to bring in a lot more business. we talked about equities. what other industries in the u k would you be looking at that can
benefit from this longer, weaker pound? stewart: it is a very generic comment. you are looking at some of the exported companies, a weaker pound is meant to help their bottom line. you're looking at the tourist industries. london is still a very is a place. it is packed with visitors. a cheaper pound is going to help those guys. i think there are certain industries does one to help the u.k. economy. the whole debate about brexit is going to be an uncertainty that is a relatively short-term thing. matter what comes in terms of sterling street. that is going to stop the tourist industry, but there are going to be massive issues around everything else. it is not about a cheap pound did when we saw the 1992 exit, our interest rates crash to 10%.
for britain to leave the eu and that june referendum. big ramifications, not only for europe, britain, we are joined by someone who knows very well come out in crawford, has of our government coverage. he stayed late night in brussels on friday night to get back to berlin on saturday. what is merkel's government going to do? not only against boris johnson, what to make a case to state in the eu easier? >> it was clear throughout the summit which lasted 48 hours that there was a lot of goodwill. everyone agreed to keep the u.k. in the eu. it would be damaging for both deal.s, but that was the merkel made it clear afterwards, we have provided david cameron with a deal that he can sell to his voters to try and win this referendum.
what more can they do? very little. guy: boris said last night the prime minister did fantastically well but did not go far enough in changing the relationship. did he have a point and it did not change the relation very much? alan: the u.k. has always had a special relationship with the eu. projects, the passport free travel and the schengen area, they made it clear they were not in the perceivable future going to do so. he had a case in that sense. thate same time, i do feel it is unclear whether the electric will be voting on this -- the electorate as a whole will be voting on this. brexit debate
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guy: welcome back. markets have been open half hour. listen to look at what is happening. we have a positive picture. lastly, very strong. this week continues that trend. london up. dax up 1.6%. a loss of volatility around sterling. that on the back of last night night andback of last boris johnson. were 54.7.ions manufacturing following to 15.2. close to that 50 yellow which
signals contraction. the german economy is starting to feel the effects of other slowdowns. it is the industrial park that is holding things back. we have a strong story on the services. have not seen the composite. composite falls into the .8. forecast was 54.1. they do not look like great numbers except for that services one. skidmore on our top stock stories with -- let's get more on our top stock stories with nejra cehic. nejra: starting with hsbc, the biggest decline on the stoxx 600 this morning. europe's biggest bank reporting a surprise fourth quarter loss, a loss of it hundred $58 million. analysts had been expecting a profit of $1.59 billion. partssults, depressed and by the rising cost of bad loans to oil and gas companies. fallback for the
ceo. said it isat, hsbc among financial institutions being investigated by the sec in relation to the hiring practices in asia-pacific and we saw the stock slump in hong kong. it is wrapping in london. he can see that down 5% at the moment. sainsbury, earlier this year bed --date bed decimated cap to bed, all caps did it --ued each on retail share one at 61.3 cents per share. glencore rallying along with other minus. we are seeing miners as the best -- along with other miners. we are seeing other miners as the best sector today.
securities regulator was replaced. there was a reshuffle for that back in china. ask you guys. -- back to you guys. guy: let's get back to britain and focus on the referendum. our top story this morning. written's membership in the eu very much -- britain's membership in the eu very much in question. cards green played his close to his chest on the subject when francine lacqua spoke to him backstage last year -- yesterday. >> i don't. again, most of our business in europe is online. hopeful. that is fine. big exposure or staff exposure.
let's wait and see. who knows how things are going to go out? i don't examine whether we should leave or not? >> and i couldn't get into politics. guy: philip green. busy last one for hours. how much harder has life just become as a result of what bores said last night? -- what boris said last night? economy is 75% services based. where the world's leaders -- the world leader and services. -- theority of people majority of gdp comes from services. it is important we negotiate with the eu and preserve the city's role in europe's financial center. with the prime minister did is bring back a deal that went in particular areas. multicurrency --
certainly on competitiveness. the trade deal that the u.k. will be a part of guarantees -- u.k. is no longer fully signed up to a union. ae u.k. has emerged with special deal in europe. it is for the british people to decide. echo do you think the british people are going to be looking at all you just described? as a result, come to a rational decision? i very much doubt that. situation where we have a whole load of a very important decisions to make it we are making them really based on heart nor head. i raised the issue of force, because he is a ferocious campaigner and has the ability to change hearts and minds. christopher: i think the british public is really quite savvy. the facts andvern
information. they want to hear from their employers. ahead of politicians and reality stars came business leaders. the british public understands this is about what is going to create jobs and keep jobs in the u.k. for our children, where whether future -- where will their future be most secure? itself.it speaks for i'm glad you through it forward to another generation. to extent are these the final reforms that mr. cameron brought that he finally got? will he need additional reforms? is this an evolutionary process? christopher: what we saw with president joker -- president juncker, i think the prime minister has done well in securing this deal. what i hear across europe, talking to leaders, is that since that everybody wants to
see a more competitive dimon dynamic competitive outward looking europe. much clear vision these days. europe needs to come to the global stage. that's why everyone looks to the u.k. to lead on that. that is been one of the reasons why the prime minister has managed to get the special deal inside the european union. guy: there is a letter floating around that we are going to hear about tomorrow. your board is made of serious heavyweights. have you got any sense from them of what they think we got and whether or not it is enough to convince everybody that this is the right way forward? thattopher: we found business leaders and people who run the major corporations want to stay in the european union.
this was no blank check. when people want to do is see europe become more competitive. to create the jobs we need. what we get is a strong central business leader but staying in the european union makes good practical commercial sense. sweetened the deal even more. we are moving in the right directions. guy: more retail focus the institution, the more likely it is to sit on the sidelines. christopher: individual institutions will reach their own decisions. isn i hear across the city the sense that they want the u.k. to stay. financially, it is good for the u.k.. it is good for the whole of the european union. hans: is a good if other countries try to negotiate these side deals.
it is a sense that brussels is done negotiating with other sovereignties. christopher: when i go to other european member states, what i have heard in the last six months is they've got thinks they like to see in europe to improve. in fact, it was the dutch really started the ball rolling with their reform ideas and came up with the phrase "europe should be big in big things and small and small ones." european leaders want to see europe modernize. guy: you are satisfied with the safeguard this city of london has been given as result of the negotiations. these safeguards are enough to make sure the euro area will not be encroaching and have a good coexistence? christopher: the prime minister has broad back a special deal. possible vassilis will be
required. what i hope -- possible vigilance will be required. they will look for the knowledge and information to make the sound decision. having got through the referendum, the government will try and win the peace. what we will do is seek further and better deals, not only for the u.k. but to make europe work better. guy: i'm sure we will be seeing a great deal of you over the next weeks and months. up next, in a bloomberg first, we'll be heading to barcelona to talk about world progress. that is up next. ♪
guy: welcome back. 8:43, london. let me bring you some breaking news. the hsbc call is on. they start asking questions now. we've got to get some of the headlines coming through. hsbc of seo saying to the restructuring has now been completed. he is saying the business is strong. this is how the market has been trading is in the, well-capitalized. however, there is only two banks in negative territory this morning. inld bank of scotland negative territory. hsbc, the big loser here test big loser. test tel iv is the life
of blog of the call it if you are a bloomberg customer, check it out. bank that is another has been battered on the back of restructuring. the market not knowing what is happening did not expect it to come through. hans: if you look at the tone of the ceos comments, their similar to what we heard from john cryan which is to say we are strong, well-capitalized, nothing to see here. even though that tone is similar, they seem like different stories. about oil andy gas provisions. you look at deutsche bank's challenges, they are basically unknown. they do not know what the overall litigation exposures going to bp hsbc, they are some of that as well with the new support that their confirming that the sec is investigating them on hiring practices in the asia-pacific region. the tone from all of these bankers saints similar even
though the underlying fundamentals may be different. guy: the other thing he is talking about is the deduction in assets. the global market business -- in the process of trent to do with that. the confidence is meeting the reductions. hsbc ahead of where it expected to be on rwa reductions. that is a critical element. one to watch. we will talk about this later on. i urge you to check out rtlitli. that is the life of blog. great stuff going on there. shakersustry movers and gathered in barcelona to discuss the future of tech devices, including a revamp of the smartphone. bloombergs caroline hyde is at the event and is joined.
caroline come over to you. caroline: i am indeed. pick lenovo, the biggest test the biggest maker of pcs in the world. francine: --y john how concerned are you about your home country, china. how worried are you about the slowdown? >> today more than 75 to 80% -- is outside china. china is still bigger, but more than three quarters are set of china. on the other side, we see some slowdown in china, no doubt. i think it is mainly coming from the situation in terms of the slowdown of the economy.
see this is a worldwide -- switch from premium smartphone. this is very true in all markets. we see smartphones slowing down. for us, this is good news is we are much more stronger in emerging markets. caroline: the middles, you don't want to be playing in the higher? gianfranco: we had a good range of products. stronger in emerging markets. even eastern europe [indiscernible] caroline: there been headwinds
in latin america and are you feeling concerns? gianfranco: [indiscernible] there are other countries in latin america growing very nicely. we need to see what the political situation in argentina. latin america is a mix of some countries slowing down and other countries still growing. caroline: are you growing your market share at the moment? gianfranco: we are going market share. [indiscernible] we need to fix china. caroline: [indiscernible] gianfranco: on the one side, and on the other side. we need to make sure we're
china -- ronger with caroline: you're still number one when it comes to the pc market. -- idc seesther another year of falling sales. you see stabilization. gianfranco: when you look at the pc market, we continue to decline. it is not good to be a deep decline. elements two important we look at pc market, one is consolidation. we probably speed up. caroline: will you be a buyer echo gianfranco: we don't have any plans to look at any acquisition for the time being. we see japanese player struggling.
some other players struggling. opinion ison in my the year we may seat four to five players continue to grow and the other players getting smaller and smaller. when we look at pc, idc is looking at -- they don't include convertible [indiscernible] kit: the new growth area? -- caroline: the new growth area? that pcco: you'll see is not really declining. caroline: we have pc in the single digits decline. we got the smartphone area that you perhaps want to grow. what about the rest of the market? are you still looking at storage ? could you make acquisitions there echo -- acquisitions
there? gianfranco: $5 billion. we continue to see good growth here -- good growth last quarter. here, it revenue 8%. we grow profitability. the opportunity. gather important things when you -- you'll see a big switch from traditional architecture to converge. in this area we are investing heavily. there a huge opportunity as soon as architecture will change. we often can't appear. john frank alessi, chief operating officer -- john
elation ships with the eu is taking a toll on sterling. joining us now, richard jones. who would've thought boris johnson could have such an effect on the foreign exchange markets. shock, drop indicating rate it is that boris? richard: i think boris is a part of the broader source. even within the cabinet, i think a vast majority of the cabinet will vote to stay in. it is not unanimous. boris is a big figure it you look at the -- the big dashboards is a big figure. hans: richard, i am looking at the pound dollar, pound euro. we are seeing big moves. walk me through the moves. it wasn't priced in last night. is it just more volatility?
richard: i think it is a bit of both. volatility has been rising as of late. shameless plug, i wrote a piece of the weekend saying i think that is the big thing that is going to characterize the next four months. sterling volatility will remain high. the pound opened much lower in asia. liquidity perhaps not the same. that was exaggerating factor for higher?a going to go richard: i don't think it is going to push a lot lower. your volatility dips, you'll see people buying those dips. 16 weeks to deal with in this campaign. there is a lot of room for volatility. guy: this is going to be fun. we're going to love it. where would have such a laugh. it is going to be an interesting few weeks. bloombergs richard jones.