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tv   Bloomberg Markets European Close  Bloomberg  February 29, 2016 11:00am-12:01pm EST

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european matt: we are going to take you from new york to london to geneva. this is what we are watching. apple comes across with headlines saying they think this case should be decided in the congress and not in the courts. the volkswagen ceo tells us he is trying to restore trust the public after the scandal. europe's biggest carmaker. a big move inakes the u.k.. we will look at why they have the potential to challenge the industry. matt: the big upset at the oscars, spotlight takes the top
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prize. we are half an hour away from the close in europe. mark: we started lower and after the reserve requirement cuts in china, we saw markets improve. we are looking at being above the starting point. we are down for the month and we are down for the month, which is worth noting. it's a big move. amazon is signing a deal to sell hundred of products supplied by yours truly. the agreement is the first of its kind. it's adding pressure to an already crowded marketplace are in -- marketplace. you know the ones i am talking
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about. todaybonds are unchanged after the election results were inconclusive. failed to win a majority. he will have to go into coalition with his big nemesis party. this is before your chart. you can see no chain today. 14%yield has come down from to below 1% there is no movement in the irish bond movement after that inclusive election. matt: it's a couple of weeks until that ecb meeting. we have a disappointing inflation number out today. mark: basically it means get next for next -- stimulus thursday. economists were looking for no change. core in place and rose.
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that was a mess. ago, that time three years the ecb has been nowhere near its target of just below 2%. the gallo said on sunday that the danger we face is deflation, not inflation. we have to act. that seems to be the case. we will see in march. it's looking pretty certain the ecb will act a week from thursday. matt: the volkswagen ceo has told us the discussion over regulations could take weeks or even months. not say if a solution could be reached by march 24, the deadline set last week by the judge overseeing the case. drasticallyis
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scaling back its presence. how much progress had they made in getting to the bottom of the scandal? >> the investigations are going on. we have dialogue with all the authorities, especially in the united states. we're looking forward to having a result as soon as possible. is an idea you will have a plan by march 24. are you confident you can conclude or come up with some sort of plan that would be acceptable to authorities in a month? , thee discussions going on dialogue is making some progress. we will see what happens during the next weeks and months. are you going to find the money to pay for this
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scandal? you have artie said some of the money you set aside it won't be enough. reducingtalked about the models that vw produces. what are you going to find the money? >> that's an interesting question. volkswagen ishat a company that is able to handle the money and one of the most important things would be to set priorities for the future. we will do that. progressive a issue. the key is to scrutinize your investment plans. things like dividends, getting rid of some of your brands? >> it's not the intention to get
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rid of some brands. we have very successful brands. we intend to stay with that. analysts talk about this costing more than $40 billion, the you agree? >> no. i cannot agree. we have to wait until the authorities weigh in. ryan joins us live. good afternoon. how would you characterize the mood right now? ryan: reserved. i think going to this car show, the vw night was always a big party. after the former ceo of volkswagen.
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he would be surrounded like a rock star. it's not just because vw wants to save money. day, they wanthe to look like they are sensitive to this scandal. you say sensitive, what do you mean by that? : this feels like the vw golf good remember in the former sailing off the while of white, what up storm that caused they don't want to get into that same situation. the fines from the scandal could go as high as $46 billion. they set aside $7 billion. until the epa and the justice department and the regulators and the suits out there are
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resolved and the share price and improves, it makes good sense to be reserved. matt: first of all, i am jealous. i wish i were there. i see those hyper cars and two. what you seeing in general? the: right behind me is gotti. they just unveiled that car. they say it's very fuel economical. for a supercar, it is. prices are down and the price at the is down muscle cars are a big theme. suvs are a big theme. the q2.ns
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your urban family once a big car but they can't market. i think you want the maserati. that's what they are going to unveil right now or tomorrow. maserati is the first ever suv. for $78,000. go play --s are willing to pay a premium for suvs. that's the big theme. the last few years it's been electric cars. not anymore. i've seen some spy shots. it looks fantastic. if it has that maserati sound, i will be excited about that. -- so much. own let's check in on the news with courtney donohoe.
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courtney: let's start with the election. front runners donald trump and hillary clinton have widened their leads. 49% of the support of republican voters. cnn.s according to a clinton now leads bernie sanders. cup and clinton will get the party nominations. donald trump is claiming and earpiece for his failure to condemn a former ku klux klan leader during an interview. he said that he was being asked about david duke and various groups. he wanted to know which group. for president last week. north korea says a student has confessed to a hostile act. he appeared at a news conference.
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he is accused of taking down a propaganda sign. this is happening as the u.s. is pressing for more sanctions against north korea. demolition teams are tearing down a migrant camp in france. they are trying to sneak across the english channel. french authorities will locate those who are uprooted. we are powered by our 2400 analysts. i am courtney donohoe. mark: thanks a lot. coming up, amazon is stepping up its move into the u.k. grocery market. they are joining forces with morrison's supermarkets.
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mark: live from london and new york, this is the european close. matt: we are 90 minutes into the trading day here in the u.s. julie hyman has the latest. big movers isthe intrepid potash. plunging there are concerns about the future business prospects. the company posted a fourth-quarter loss of $518 million. they are in talks with predators. chart,take a look at the this is the weekly price. this is an white. it's priced on a weekly basis. it does not trade daily like oil does.
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potash has fallen. it's down 40%. it just shows that we have seen this route across the commodity landscape. potash has been subject to that. you see the report back to some of the producers. western energy was down. the analysts say they are surprised by the forecast of low cash flow. the declineed about in production rates. this is something that southwestern talked about. signet jewelers has risen. they are assuring financing. they came under finance because of financing of jewelry purchases. 63.9 millionid dollars in interest.
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amazon is stepping up its move into the u.k. grocery market. they signed a deal to sell products from them. it's a crowded industry. after are plunging 10% morrison said it is taking on a partnership. let's bring in our retailer. she is a columnist bloomberg. it's great to see you again. why william morrison? out of all of the retailers, why have they chosen the smaller? make a lot of its own food. about a quarter of what it sells they make. it's not that concentrated in london. much's not that
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cannibalization. why wouldn't want to get in on the supermarket area of the industry? it's facing a multitude of issues. getting peopleer into the prime service. grocery toy -- using get a way for people to sign up with time. -- prime. mark: who wins more here? >> it's very good for morrison. they have spare manufacturing capacity. they are closing stores. they have sold off their convenience arm up. this will utilize that for profit. -- morrisonn shareholders are smiling. share prices are up 5%.
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thought amazon might buy accardo. >> they decided to go a different route. that is very bad news for a cargo. they lost a dental partner. amazon aired up with its partner. it could buy a cargo. i think that's really unlikely. by would you go to the trouble of doing this deal with morrison? later you just buy accardo, it has thousands of products and it doesn't make sense to me. commentary,re fast go to the website. matt: newmont is the world's second biggest world producer. we will hear the ceo at the
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global metals and mining conference next. ♪
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matt: executives from 500 mining companies in 28 countries will converge on floor this week for the global conference. hosted by the capital markets. the ceo joins us with of newmont. >> thanks very much. i want to start by congratulating you. it is your third anniversary with newmont tomorrow. >> that's correct. thank you. >> you have been to a few of these. that isa conference very much about dealmaking. it's a start.
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are you in terms of acquisitions in sales? >> we have been very focused on the last three years. are improving our portfolio by selling assets that did not fit. we invested some money in new assets along the way. an acquisition of a creek in victor. delivered $900 an ounce. it will be successful in the future. there really is no room for anything and a portfolio nowadays that doesn't work. you have a little more leeway with gold coming up. are there core assets you would consider selling right now given how challenging it's been a? >> we are in discussions with some parties in indonesia. we have not able to reach terms and conditions yet.
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that's one that we told the market about. we have an option to continue to invest there. we need the financing and the project financing to bring that forward. it's important to sit back. this makes the most sense for our shareholders long-term. >> when you talk about a sale in indonesia, there was a consortium that was interested in buying the entire unit. how far along are you in that process? are you talking about completely getting out of indonesia? >> we are in discussion with the parties right now. we don't normally share those details. reacheda reach -- have
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-- not reached a final deal. from this a move away copper? >> it's more tied in around the valued asset. how do you feel about copyright now? has extricated itself from the copper market. it's about 12% of our total revenue. it's a small part of our overall folio. we have two other operations. we still have some copper. arming product is gold. >> you haven't shied away from making acquisitions. will you keep dying? >> it depends on the value of the opportunity.
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we look at all of our opportunities. you look at our projects internal and our operations. we look at value from the standpoint of return on capital. risk, geopolitical risk and technical risk. we rank are assets that way. we rank our competitors. sense, we would consider it. >> i have to ask you about their experience -- terex. largest gold company in the world. running our is on business as efficiently as we can. we do have a joint venture in nevada. they are exiting australia. they agreed to let us manage
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that. that is where we are at. >> thank you very much. mark: that was the mining industry reporter. she is with gary goldberg. we are about four minutes away from the end of the monday session. it's been a topsy-turvy session. it set the tone for the day after china cut reserve requirement ratios. that gave investors of boost earlier. the stock looks like it's going to close higher. the close is minutes away. stay with us. ♪
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mark: live from london and new york, you are watching the european stocks are finishing up the day in europe.
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let's take you through the action. stocks started the day at lower. china sank for the seventh day. the stock in china went to the lowest level since november. then we had this move by china to cut its reserve requirement rates, it gave a boost. stock is up by a quarter of 1%. william morrison is one of the big movers. it's a smaller supermarket chain. they struck a deal with thomas on -- amazon. it adds pressure on an industry that is already under pressure. they are grappling with a higher minimum wage. chores are trading here. william morrison is up by 6%.
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check out inflation. inflation held. this is what the ecb wants inflation to be. just below 2%. it hasn't been there for three years. week from thursday, the ebc meets again. it is highly likely that they will have composite rates once again. the elections in ireland were inconclusive. the response is fascinating. coalition didster not win a majority. most seats,n the it's not going to be enough with the ruling party. wealthy have to jump into bed the opposition.
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it would be unprecedented for the two historical parties in ireland to come together. this is the bond market. i wanted to show you the performance of the irish bond market. it's risen by 92%. that is the best performing global bond market. we are at 14%. we are at 20% today. the market is shrugging this inconclusive election. we will see if that remains the case. matt: let's get more insight on europe and how the market can be affected by china. joining us is andrew lynch. i'm sure just as we all work, i was surprised and excited this morning when i saw that china good weing its rrr haven't seen much impact around
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the world. what do you think this means going forward? it's not a game changing move for me. we have seen them cutting their reserve requirements over the past 18 months. samenk this is more of the they are trying to free up their banking system from the constraints it's been operating under. they get more excited with the commitment to more physical spending. impactuld have a greater on the chinese economy near-term . matt: maybe the other really exciting piece of news we got euro to the downside was
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area inflation. the headline number was back below the zero bound and the core number missed estimates by a lot. do you think this sets us up for some real action from the ecb in two weeks? i am convinced they will go into do something. there will be a further cut of , maybe acuityte extension period i'm not convinced that will actually be effective. onhave seen the impact moving negative rates earlier this year in japan. that ended up having the opposite outcome to what the policymakers want to. my fear is pushing the rates will be toxic for the european banking system rather than supportive.
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i think it will happen. your quote today, kryptonite to bank shares. is it time to be buying thanks? banks?ks -- can we see further moves into negative interest-rate territory? >> to go and buy the broad bank index, probably not. whereare some countries the banks are probably safer. scandinavia. a story todays about which banks benefit from negative rates. they are able to boost their margins. it will allow you to push up the mortgage rate, then you theoffset the damage
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negative rate does on your liability. that is completely counterproductive to what policymakers want to happen. days, you cutd your policy rates. people had a bit more money to spend. the economy picked up speed. is quite as it seems. is the bank stock is seen the margin come down. there is less profit unless capital. that is a headwind to any kind of growth. mark: we know what has happened to sterling. of the u.k. leaving the eu priced in to the u.k. stock
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market? many are looking at the small cap and possibly the one that could be hurt the most by brex it. leave,he u.k. decided to that is probably not priced into the stock market yet. if you look at the betting firms where people are putting their , that all at the moment is declining very much toward decision to remain. in the event the polls lose and we start to see a majority for exit, that will cause things to weaken. it will be negative for the caps. you have a lot for trade in the eurozone. i think they are quite domestic.
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that is not so much the problem. brexit doesn't matter. mid-caps where i think we will see the biggest impact if and when it happens. mark: it's great to see you. he is a portfolio manager. matt: european markets are done. abigail market is still doolittle has more from the nasdaq. abigail: have a nice rally. the nasdaq is up half said. have an interesting strategy. investors should sell more tech names and buy more utilities. sticking with the tech side of the equation, value tech names are set to suffer.
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growth tech names could come down on multiple factors that investors view as bearish. a few names include apple, --bat, colleges and cognizant technology. matt: i know there are some opposing views out there. head of technical analysis for a long time had a great call on his correction. he said the stock markets were likely to come in the first quarter and first half. he said the big tech names are likely to leave the market. is microsoft. he thinks microsoft could inlaim its record high set 1999. matt: thanks very much. let's check in now with our first news. courtney donohoe has it.
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courtney: final results are in from the election in iran. the moderates have put a majority in parliament. through changes to the iranian economy. police in macedonia used tear gas and stun grenades after refugees broke again on the greek macedonian border. the police.ocks at they tore down a razor wire fence. bernie sanders is counting on a white working-class voters to keep them in the race for the democratic residential nomination. he is behind hillary clinton in nine of the 11 states that hold elections tomorrow. michigan, massachusetts, and ohio could be helpful. oscar celebrates the best hollywood has to offer. for the worst, you have to go to the razz ease.
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50 shades of grey came out on top. the adaptation took five prizes at the golden raspberry awards. it won worst screenplay, worst actor, and worst actress. global news 24 hours a day fueled by our news bureaus. it's that time, again to get the best performing assets. the winner may surprise you. stay with us. ♪
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matt: it is time now for our global battle of the charts. we will take a look at some the the dayling charts of and tell you what it means for investment bankers. kicking things off is joe weisenthal. joe: remember at the start of the year everybody was talking divergence, the u.s. was getting it better while the euro was weakening. people stopped talking about it. maybe there is something to it. let's look at two indices. citigroup does them. others do them. you can see this white line. sorry, this blue line. it's been coming down for a while. data in the u.s. has getting better since the first of the year. the eurozone gets worse and worse. the data is coming in worse than people expected.
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before too long, we will start talking about how the u.s. is diverging away from europe and breaking up of the economic doldrums. check it out. mark, what have you got? this looks different than the oscar chart. mark: i didn't want to do to a narrow. , i likend of each month to look at the best-performing global assets across all classes. it's fascinating what we find out. this starts with stocks. the baths performing a stock market in the world is argentina. it's up 17%. reached a 17 year battle. that is the stock market. in the currency market, it is global currency against the
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dollar out of the many we survey. it's up by 6%. in commodities, it's old. it's top of the commodities board. it's up 10%. in the body space, the best bond market is the japanese bond market. the worst is portugal. the best emerging market is russia. that is something you don't learn every day. matt: that's very interesting. i love it. that's an interesting look at assets. it doesn't move me as much as the trend that joe is seeing. i am going to choose divergence.
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mark: matt is taking it out on me because i beat him earlier. he is trying to punish me. because of this chart right here. this destroyed matt earlier. matt: let me tell you what i noticed. the willful wall street, blood diamond, the aviator, i think he did a better job of acting the lead role that he did on the revenant. mark: i think that's a valid point. this probably was not his best. i love him in inception. matt: basketball diaries. i think he's great in titanic. i will see you in just a moment. joe, you have a big guest coming up. joe: there is a call for a global recession. join him for that at 4:00. if you want to hear more about
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the oscars, ♪ stay with us.
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matt: you're watching the european close. i am matt miller here with mark barton. mark: it's time for business flash. we're looking at the big business stories. it's been six months since the vw scandal broke. the volkswagen chief executive says it still may take time to figure out a solution with regulators. they talked to us in geneva. >> discussions are going on. making some is progress. during see what happens the next weeks and months. mark: they won't say whether they will come up with a solution by march 24.
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that is the deadline set by a federal judge. citigroup will buy american expresses hope for leo credit card loans. gain $1 expected to billion from the sale. goes --rompted by cost cosco's changing. buyers may be turned off by turmoil in the financial markets. knightsbridge, prices fell 7%. that's the latest business flash. rock last night, chris address the elephant in the room. >> i'm here at the academy
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awards, also known as the white people's choice awards. if they nominated hosts, i would not get this job. this is the 88 academy awards. that means this black nominees thing has happened at least 71 other times. all of the controversy did not do much to boost ratings. early estimates show the ratings hit an eight year low. let's get more on the shock and from our entertainment reporter. what do you think? he was very funny. there is a little bit of truth to what he's saying. >> for sure. it resonated with a lot of people. was its interesting wasn't the opening monologue, it
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was throughout the show. he pressed the point consistently. there was no getting away from it. there was no tiptoeing around the subject. they continued the discussion around diversity. it remained a very political night. one of the popular moments was they asked if people had heard of any of the best picture nominees and they hadn't. their reactions were funny. matt: it's not a huge surprise. we know hollywood has been called white washed for a long time. were prizes of last night? >> there are a couple. but was interesting was mad max was sweeping the board. favorites one. there were some shocking ones.
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one was mark ryland's who was the russian spy in the justifies. sylvester stallone was expected to take that. spotlight beat the revenant. it was the front runner. the biggest one was probably sylvester stallone not getting on stage. best chartscar for went to mark pardons leonardo dicaprio chart. i'm showing it right here. matt will appreciate this. in all of the years that he was he did not win for any of those.
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the s&p 500 rose in all of those years. it's down this year. matt made a great point earlier. was this his best performance? we know it was a hell to shoot this film. is it his best? should he have one for something else? it's an interesting film. there is hardly any dialogue. it was one of his most challenging roles. it was a polarizing film. some people did not love it at all. maybe that's why it did not win. if it's a film that people feel strongly about either way, they tend not to win. spotlight was a general crowdpleaser. he did a great job. if you see the bear mauling seen, it's pretty unforgettable.
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thank you for joining us live from los angeles. one more programming note that behalf. it's not just what you missed. tomorrow morning, we will have an interview with alan greenspan . that's at 5:00 a.m. eastern. your morningwith tea over in london. check out how stock markets finished. the big news was from china. reserve the requirements. that's ♪ it for bloomberg markets.
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>> it is noon in new york. >> welcome to bloomberg markets.
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good afternoon. i'm scarlet fu. this is what we are watching. if you wanted to avoid the worst of the equity route, look at what analysts are recommending. wall street's favorite calls are not heading out. super tuesday is almost honest. we will tell you what donald trump could mean for investors. a crucial time for their industry. what it could mean for dealmaking. we want to get a check on the activity. julie hyman has the latest. a surprise move from china central bank. stocks are rising.


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