tv Bloomberg Markets European Close Bloomberg July 15, 2019 11:00am-12:00pm EDT
look in the trading day. this is the "european close." let's check the markets. green on the screen, the cap 40 is one of the better performers. the dax in germany is up 6/10 of 1%. most of the stocks on the dax are higher, there are some lower, including deutsche telekom. and -- bank saying if they t-mobile spent deal does not happen, it will not be good for deutsche telekom. if it does happen, it is priced in. the dax is a shaking that off. altogether, we are up 3/10 of 1%. a little bit of movement in currencies today, mainly with the british pound. it is falling about 4/10 of 1% off speculation as to whether we will get a new deal brexit, or more months of negotiating. and some little maneuvers. in the u.s., the s&p 500 is
pretty much unchanged, but a few stocks are moving quite substantially, including gilead appliances, up, making a $5.1 billion investment into europe's galapagos. theill be working more on inflammation joe's, this is the hepatitis c drug goes away. broadcom is up one and three quarters percent, that is up on the idea that the broadcom deal may not take place because talks have broken off. city group has turned itself around, the first of the megabanks to report this week. some good elements come -- and some less good elements.
meanwhile, one of the major events overnight was china's gdp growth coming in at 6.2% for the second quarter. for more on the impact of this and of the global economy, stephen king is joining us, he is a senior economic advisor at hsbc. talk to us about the china gdp growth number. it is not seem to be impacting markets much. do you see warning signals? agohen: 6.2% a few decades would be remarkably weak, but by the standards today, not bad. i think that the chinese would probably say under the circumstances of the trade war and a huge problem with the u.s. , 6.2% is ok. bear in mind, the chinese economy is much bigger with billions of dollars now, more so than in the past, so that is sizable. economyct of the global
now compared to 10 years ago. it is not a disaster, it is not good, it is in the middle. that is why the markets have been indifferent. vonnie: it is a $14 trillion economy and i do want to get to how you are modeling out the trade war, but first, tell us what more china will do in terms of fiscal stimulus to keep this slow down engineered. things, peoplele talk about the high levels of chinese debt, but that is not a constraint on what can be done on the physical front, even some monetary stimulus coming through as well. it is important to reckon eyes that china has longer-term growth drivers associated with productivity gains, which is still massively undeveloped in china, particularly in the inland regions. they may grow faster in the future than perhaps the coastal regions. the belt and road initiative is designed to connect china with other parts of asia. the phrase connections, under
those circumstances, they can grow quickly. it is not just about stimulus, it is also about working outweighs in which china can grow against a background, where the u.s. is becoming more hostile compared to five or 10 years ago. vonnie: obviously my china dealing with its owwn ongoing issues internally, but president trump is continuing his a stance against china, so is that working, are they backing down or making a gesture toward the u.s.? stephen: it is tricky because one is the dominant currency for power, another is an emerging new superpower, so the idea that china would comfortably back down under u.s. pressure could be seen as an embarrassment domestically within china itself, so it is difficult to work out what would be a face-saving arrangement for the americans and the chinese is simultaneously. that is where things get awkward. bear in mind, underneath the trade story is a much bigger story of superpower rivalry and
a sense in the u.s. that it country that is not a full democracy or a proper democracy should be perhaps constrained in some ways in terms of its economic development. vonnie: it seems like we are entering into a dangerous phase. may be some small signals of laying offas huawei workers in the united states. are there outcomes for the consumer that are going to happen quickly and will be devastating or does the central bank of the united states offset that to some extent? stephen: it is not really the fed's change of stance, but it is because of the trade war. no doubt that the global economy enter 2019 not any particular healthy state, there were other parts of the world looking weaker than the u.s. but the recent data in the u.s. has not been particularly fantastic. at the the fed is clearly in an insurance mode, saying we are not quite sure about the future
path of the global economy, so we need to buy a little bit of insurance now to try to prolong the recovery. it is worth noting the recovery itself is already very mature. thatany people are worried because it is so much are, the trade war itself might be more damaging than just a modest slow down in the u.s., it could eventually lead to a harder landing, so the federal reserve is trying to prevent that from happening. vonnie: exactly, you have to ask yourself why the urgency? we have the 10 year yield at 2.09. the two-year spreader 25 basis points. has the fed already accomplished with forward guidance what it wanted to with the market? stephen: i think that one issue the federal reserve naturally worries about is the slope of the yield curve, the fact that the 10 year yield has fallen so much in a short amount of time is not a guaranteed indicator of recession, but when you have had an inverted yield curve it is a warning sign. of course, the fed must think about this, the future legacy,
if it ignored the warning signs and did nothing about it. so i thick might be criticized in the event that a recession actually came through. there are some telltale signs out there, which may indicate that life is a little less comfortable than it once was. the other thing to bear in mind is the fed has much less in the way of traditional policy ammunition, than they once would've had because rates are already so low. they might think we must do something now, because in the event something goes badly wrong, we do not have the firepower of old. vonnie: so that brings us nicely to our in life question of the day, which i will point to you, when one to give yields a spread to the united states? stephen: i think that we are still quite a long way away from that. but it is worth noting that both in europe and japan we have had negative yields for quite a while, for a long time in japan. it is also worth noting, when you look at the u.s. -- the
economy is doing fine by the standards of other countries, but the u.s. has a problem similar to other countries, inflation is persistently lower than the federal reserve would like. in the event of a recession, and in no circumstances, yields could drop to zero. and could go below zero. but we are a long way away from that currently. vonnie: what is the primary problem facing the federal reserve? ,bviously, the current debates but is the fed still grappling with inflation that is persistently sort of stagnant, inching higher? how does it come back that? -- combat that? stephen: they have unemployment very low, traditional measures making the market looke ti ght. there has been upward pressure on wages. but besides that, there is still evidence that inflation it has
been remarkably sticky. meansnger with that is it there is a risk of that real interest rates end up being too high, the debt burden itself becomes too great. and that becomes less effective than would otherwise be the case. so some people would argue that in many ways, the rates should be lower than currently, so it will ward off that, but that is the issue that they have. -- they are hoping fed saying that they do not have the firepower of old, policy becomes utterly ineffective. and at that point you begin to shift toward a world where the stemless has to come through not so much through central banks, but rather from treasury departments, fiscal authorities of one sort of another, and you politicize the whole process in a way we have not really seen with a themselves. vonnie: correct, although i guess central bankers have been pushing to -- pointing to the
fiscal stemless as a solution for a while. moving to the u.k. come inflation data out on wednesday. it is kiefer in exchange market kiefer the big change market. any clue on what will happen? what is your forecast? stephen: the big problem with the bank of england is they themselves, they do not know what will happen with regards to brexit. frankly, i think the reason why the pound is so soft is not so much because of what is happening with inflation, it is because of uncertainties associated with how we end up leaving the eu, if we ever leave. the one big threat is the idea we could end up on the 31st of october with a new deal brexit. and i think that sterling is extremely vulnerable. now, in addition to the issue of no deal itself, the bank of england has been signaling that there is a, perhaps a greater risk than previously of being forced to cut interest rates
aggressively in the event of a new deal brexit because there will be a fear that confidence will fall away quickly. we are back to this kind of, not so much project fear story, but a story by which of the bank itself is fearful of the outcome of a no deal brexit, talking more openly about pushing rates lower. and that undermines sterling to a more significant degree. vonnie: right, it has been holding in. buts a little weaker today, 1.25 versus the u.s. dollar, does it go to parity versus the euro in a no deal scenario? stephen: i think that the biggest story is probably going to be against the dollar, rather than the euro, for the reason that a new deal scenario is not good news for the u.k., not great news for europe either because it was a just they have been unable to reach a conclusion. and of course, if the u.k. is as and economically important trading partner for europe, it will not help the european story either. so against the dollar, i think
the bigger risk in a new deal scenario is that the sterling moves down to may be a 1.10 or something like that, a big drop from where we are. bear in mind, that before the referendum in 2016, sterling was trading at 1.45, 1.50, so a very big drop has taken place. it is a reflection of not just the uncertainties associated with brexit, but the sense that the u.k. would struggle to trade quite so easily with europe and indeed the rest of the world. and in the absence of a decent trading relationship with those countries, not surprising it would end up with downward pressure on the currency. vonnie: the chancellor said he would do everything to prevent a no deal brexit, but said he would not remain chancellor under the new prime minister, so another conundrum to try to work out. stephen king, economic advisor at hsbc, thank you so much. let's check the markets.
dollars. they said that several more women have contacted authorities to let them know that epstein abused them when they were younger. the white house is moving to into silent protections for most central american migrants. the new rule states that asylum-seekers that pass through another country first will not be eligible for asylum at the u.s. southern border. the rule, which takes effect tomorrow, also applies to children who have crossed the border alone. the policy is almost certain to face a legal challenge. and china's economy has not grown this slowly since 1992. gross domestic product rose 6.2% in the second quarter. the slow down underscores the pressure that beijing faces as it tries to negotiate a trade deal with the u.s. at the same time, factory output and retail sales growth beat estimates, a sign the economy is a stabilizing. saysrkey, the president that u.s. sanctions are unlikely to be used against a missile
system. he says that u.s. officials want sanctions. u.s. has warned deploying the missile systems from russia could undermine nato's military cap abilities. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. vonnie: thank you. it is time to check global markets, and for that we will go to abigail doolittle. >> looking at small moves around the world. take a look at the s&p 500 down fractionally. earlier, putting in another all-time high. in europe, the stoxx 600 gaining by 4/10 of 1%. in the asian session, we were up about pretense of 1%. small moves ahead of the earnings season for the second quarter in the u.s., really getting off to a start here with the big banks. interestingly, yields are lower, bonds are higher. there is a move to safety to
some degree with investors bidding bonds up. that is influencing the sector come position for the s&p 500. it may be a small decline, but this is more risk off. we have more sectors lower than higher. high dividends looking more attractive. this is sector is higher. that is true for utilities. health care and consumer staples on bottom. energy and industrials included. on the year, a bit of a different story, more of a risk on picture on the year. the top four sectors for the s&p 500 on the year, in contrast to what we are looking at on the imap, this is the intraday look. flipping to the next board, that has the banking index. much interesting things happening on the day for banks. if we take a look the index, wild ride over the last couple days on the open, citigroup down more than 1%. bouncing back to slightly higher.
of course, those results for citigroup, you will talk about those in greater depth. on the surface, looking glossy, but beneath the surface we have some crosscutting. the index is down for 10 to one -- 4/10 of 1%. vonnie: citigroup is the first to report today. the lender cut costs deeper than analysts expected, while the consumer division posted its strongest second quarter since 2013. to break down the numbers, here is our finance reporter michelle davis. note, coming out with a post of the earnings call, saying citigroup shows margin pressure on all fronts. theelle: that is something, skepticism is something we are hearing from investors and analysts. before i came on, i was listening to the call with the and theysea -- and ceo were asked about income this year and their targets. the ceo said, yes, we are
optimistic that we have some levers to pull if things do not pan out. but it seems like so far analysts are not really buying it. vonnie: we are talking about deposit costs and also loan yields. some thing else we saw was a higher amount of delinquency rates, some thing like 9%. michelle: yes, that is one of the first finds that perhaps the consumer is turning. and with a change in the fed rate outlook from the beginning of the year, the expectations for multiple hikes, to now swinging the other direction, it is really a question of how much are they going to be able to lean on consumer business as you see weaker trading revenues because of the passive investing and automated investing seeping some of the transaction revenue that they were getting from equity trading. vonnie: take a look at the results, what can we use to read through to the other megabanks that will report?
michelle: probably that equities trading will be a little bit weaker than they were expecting. they expected weakness along that, but we will probably see some gains in fixed income trading because of trade doing its ipo, most of the banks were invested in that. so the vix trading will look weaker than it looks like on the surface. we will probably see a focus on the outlook, how are conversations with companies going when it comes to the investment banking pipeline, that thing that was mentioned today on the call, while they have a pipeline that they are happy about, the ceos are a little bit leery of trade uncertainties. that has put these conversations on hold. it is a a lot of, the rate, the change in rate outlook is affecting things from all sides, so it will be a big focus on how people are affecting their outlook. vonnie: right. macro stories, micro stories. for example, deutsche bank
quitting the equities business, how does a group like citigroup take advantage of that? michelle: citigroup and other big banks can take advantage by not only tapping them for that, butcause of -- also taking their clients. it is an opportunity to win business. vonnie: did they mention that? michelle: they are modest when those questions come up, because they do not want to be seen attacking competitors, but they say they are optimistic and they will be able to take share. vonnie: they did not want to have to go into the strategy, which you know is already being worked out. michelle davis, thank you, are bloomberg finance reporter. remember gtv on the bloomberg, it allows you to browse the recent charts featured on bloomberg tv. save your favorites for future reference. this is bloomberg. ♪
vonnie: from new york, this is the "european close." time for your latest business flash. bloomberg has learned that pro-locus is in talks to purchase industrial property trust for $4 billion. the black creek group put it up for sale in february. world's is one of the largest owners of real estate. and shares of symantec is plunging. they have broken off deal negotiations with broadcom, they could not agree on a price. it would've been broadcom's second big bet in software, last year they purchased ca technologies for $18 million. gilead sciences posting a stake in a company called galapagos, they will take $1.5 billion to increase research into inflammatory diseases and disorders that raises its take an galapagos to 22%.
gilead has been hurt by increased competition for hepatitis c drugs. that is your latest bloomberg business flash. we are checking u.s. markets. we will start right here with those companies that we talked about, symantec is down 13%. gilead is up 2.2%. a pretty flat market more broadly, the s&p 500 unchanged, 3013. the dow is up six points. the nasdaq is the best performer, up only fractionally. pretty muted market with the vix underneath 13. some of the other stocks on the move include broadcom, higher on that deal falling apart. in europe, we have some good news for the major industries. the dax is up two thirds of 1%. this as we approach the close. sterling is weakening versus the majors today. this is bloomberg. ♪
vonnie: stocks finishing the day in european trading in a few moments, it has been a pretty green session apart from some scandinavian countries. we have many of the industries higher, including the cac 40 in france up a quarter of 1%, in spain we are up .5% and in germany we are up 6/10 of 1%. the china data overnight cast a little bit of a shadow on early going. the growth in the second quarter not divorced -- not the worst, but it did give pause for thought. underneath all of this my there are some individual stories, only three stocks are lower at the close and they employed -- include deutsche telekom. they said that it is fully priced whether the sprint t-mobile deal goes ahead or not. we are down 1.2% for that particular stock.
am holdings it says it will pay out the final award, if you like , or repayment with a 50 basis point premium to wind down the troubles of fund, they hayward's four that is down 1.8%, at dollars 37 cents. they are desperate to wipe their hands of this mess. stocks taking a small hit today. receiving $5.1 billion in investment from gilead. research into inflammatory and other diseases. that will help gilead get away from its competitors.
sterling taking over from its competitors. stephen king saying it is sterling versus the u.s. dollar that is more risk in a no deal brexit scenario. but we wouldparity go down as far as 1.10 according to stephen king. we were taking a turn lower but just fractionally for the major averages. broadcom giving up on symantec, at least for now. symantec saying no thanks. you lower your price and we are not happy. our own ed hammond saying there was something wrong with the due diligence. broadcom took down the price. symantec said no and both parties walked away. it is up 1.4%. symantec down 13%, even though it had been down 1.2%.
gilead up 2.3%. citigroup has been waxing and waning all day. broad satisfaction with its results. we will see later in the week what the other big banks report. that is a look at global markets right now. now moving to south africa. more trouble for the indebted power activity. and the price is spilling over to south africa's investment corporation, which manages retirement funds for more than one million government workers. $150 billion in pic. joining us is elian investment management cio. thank you for joining. how much worst is a get with escom? >> this is probably the worst it can get. the government has indicated clearly that they will try to
rescue escom. the first thing they are distribution, -- generation, and transmission. it is clearly the case indicated in parliament by the prime minister. there is a plan. the news is still bad in terms of what is happening with escom but we have -- in the next year, possibly the bottom and they will probably come out with a public investment corporation. the inquiry is going on in what is happening there. a lot of news to come. lots of allegations. , we needhose inquiries that to expose what has happened . at this point it is a lot of allegations. it is important we go through the process. there are 150:
billion dollars worth of pension funds in pic. is it wise pic holds as much eskom debt as it does. something like 1/5 of the debt. asief: if it was not a state ited corporation, effectively -- as taxpayers we're online ford. you are probably saying it is not that prudent. on the other hand, there are instruments that the public investment corporation has invested in that by the south african government national treasury. it is not [indiscernible] it needs to be resolved. we cannot only rely in the public investment corporation. the needs to be able to survive on its own and it needs to unbundle as i mentioned earlier.
also managed a lot more effectively and efficiently. only then can you move to a situation where local investors and foreign investors will common will by the government bonds. the bonds are issued by eskom and hopefully by then we will get out of the situation and achieve a much better credit rating. vonnie: the former ceo of africa's largest bond manager said there was a lot of corruption to deal with pic. you think there is still the risk of the funds being pilfered as yet? asief: i doubt that will happen. it is all in the open now. there is a lot more governance processes. there's a new board of public investment operation that has been appointed by the minister of finance. some credible people has been appointed to tighten up the processes and procedures, especially when it comes to new investments. include -- improve the
government significantly. the risk off on investment decisions or decisions that influence or by allegations of corruption, that hopefully will be minimized to a large extent and we can offer a terribly low base in terms of sentiment at this point. situation, we are close to the tipping it. one thing we have to remember is business in south africa has a lot to lose if we do not sort out the governance at both the private sector and also the government sector. that includes municipalities, state-owned corporations, and government. everybody seems to be pulling to try to get this right. people are getting impatient at this point. i've always said that from a ramaphosa, it will
take him time to fix the last decade under president jacob zuma and the leadership for the state of affairs we are in. we can work ourselves out of this. vonnie: that is on the public side, but then there is the private side. we have heard a lot about stein --e and other scandals like and more we hear of from south africa. what are the structural problems with the private sector that need to be addressed? asief: the problem with the private sector is the one that stems from apartheid. competing with white south africans and i can talk about white south african management. profits because they protected industries, they
got banking licenses, mining licenses, hospital licenses. they make profits at the expense of prices to the average consumer. when south africa markets opened up, south african management thought they were exceptionally good and they invested overseas and allocated capital to overseas markets, australia, the u.k., sometimes the u.s., but they lost money badly there and it exposed the fact that south african management were not as good as what they thought they were. they were highly regarded in the world credit management, but in reality, they were not. there were couple of exceptions that did well. inbev.tioned they went to china and did well. why they were successful as they partnered with local chinese partner, which was a 50-50 joint venture. in most instances, south african
corporate discovered they were not what they thought they were. coming back to south africa, there were scandals. they got away with for corporate governance, institutional asset management that supported them all away without questioning of quality of financial statements. there was evidence that things were not like and there are couple of other companies that i could also mention where the quality of earnings was not -- vonnie: we are watching the sun declined by the buildings behind us, so give us your companies and tell us some of your best ideas. the one is a company based in south africa. lots of acquisitions. they overpaid.
you're talking an i.t. company. you would not understand how they were making their profits, fueled by acquisitions. expensive paper. playing the earnings game to try to ratchet up earnings. the reason is omnia. badly managed, a number of these companies. the other company that has come under spotlight, not necessarily for bad governance, just overenthusiasm in terms of offshore, possibly overpaying for it and running into high debt levels and not achieving remittance on fed investment capital above the weighted average of the cost of capital. a number of those companies not doing well. what saves south african markets is the fact we have [indiscernible] borne out the apartheid ands as a newspaper company
is listed on the hong kong stock exchange, the chinese internet company has done exceptionally well. if you remove that successful investment over a number of years, then you can see the south african equity market has not perform that well. there's always the move to people saying now is the time to invest in south africa in corporate or equities. they have come down a lot. the multiples are low. that then still is quality of the earnings, the quality of the management, we're not getting gdp growth, we are getting techie gdp growth of 1% or 2%. retailers under pressure. lots of pressure. food producers are under pressure. it will take is time for consumer confidence to come back for those specific sectors to perform. vonnie: thank you for joining us today, particularly at this time.
we got to watch a beautiful sunset as you are speaking. thanks to asief mohammed. now to more extreme weather. barry has weakened after making landfall on the louisiana coast this weekend as a category 1 hurricane. -- gulf of mexico fearing to 73% of crude output was halted in the region. joining us from boston with more is bloomberg's brian sullivan who covers weather analysis. all told, how was very in context -- how was barry in context? brian: not as bad as initial estimates thought. new orleans did not get the amount of rain that would've caused a lot of problems. the mississippi river was relatively well behaved. across central louisiana and mississippi, they are getting 10 inches of rain. some reports are up to 17 inches of rain. further north, above the main
production areas, that is were the heaviest rain is falling and that will swell tributaries. vonnie: where does the focus go now? clearly there is a cleanup. are there other weather events that may be on the horizon that people are already beginning to worry about? brian: on the horizon things seem clearer. late last week there was a potential of another storm, but the chances for that have fizzled since then. wet is going to happen is will go through an evolution of the onshore platforms -- offshore platforms will start to come online today and tomorrow followed by the refineries and everything should be back to normal by wednesday or thursday. vonnie: it does seem like it has not impacted oil prices too much. will the refineries be able to make up for lost time quickly? brian: i think it will. i do not think this had as big of an impact as we could have
had. if we had gotten two feet of rain in the crucial area where most of the refineries are, then we could have had a problem. i think things should be back to normal. vonnie: we were focusing on oil. crops as well had a tough few days. any major damage? brian: in the rice and cotton areas, i think they will have substantial damage. talking six to eight inches on some of these fields, and these fields have been saturated for months. further to the north, that actually might be a benefit because you will get one or two inches of rain, about as much as they can handle, and it should be well. the area is about to undergo a very dry and prolonged heatwave, which might put stress on the crops. getting that boost of rain will help things. vonnie: brian, thank you for much for your coverage over the weekend and into this week. that is bloomberg's brian sullivan in our boston studios. let's check were european stocks
have settled. a nice gain for the dax in particular, although off its highs after the auction process. up .5%. the cac 40 dragged down a little bit by luxury stocks. this probably on the china gdp data overnight. the cac 40 finishing the session up just .1%. the ftse 100 got a boost from weaker sterling. it is up .3% after the auction process. this is bloomberg. ♪
partnership they already had a small agreement with. this expands an agreement they had in place. gilead, about 60% of the revenue comes from hiv and another from hepatitis b. 80% of their total revenue in two key areas. this partnership with galapagos well emphasize key areas. it is all about slowing growth for these key areas. sales over a quarterly basis declining or stagnant, now only 5.3 or $5.5 billion. the partnership with galapagos should be in diversification and this is a huge investment in r&d and the future pipeline to provide growth for the company. it is interesting that the ceo of gilead said 30 years. this is the same strategy where he avoids an outright m&a and focuses on some of these partnerships. you have some upside potential
but you're not having to outlay as much capital as you would for a pullout m&a deal. vonnie: certainly galapagos stock higher. there might beea paying going on? taylor: analysts are mixed on the street. the last price for gilead is about $67. the target price by the street is $80. analysts are expecting the price to have some upside potential but there are concerns about overpaying. things, bairde of is expensive. saying they're basically offshore in r&d to galapagos and they do not know if they could have done the same thing by bringing it in-house and investing internally versus outsourcing to a new firm. there's a great opinion columnist on the bloomberg talking about how this is taking on a lot of rest and not quite
sure if the risk-reward can justify the expense. with whatit and see becomes fda approved or not in the next five to 10 years. vonnie: that will continue the flow of money into europe. taylor riggs, our stock of the hour, thank you. taylor: coming up -- vonnie: coming up, our global battle of the charts. this is bloomberg. ♪ wanna take your xfi to the next level?
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vonnie: it is time for our global battle of the charts. you can see the charts on the bloomberg this month. dataam sticking to my which is health care. with j&j picking up earnings, take a look at how investors are positioning in this space. i have an index of medicare stocks in blue and it index of pharmaceutical stocks in white. as you can see, health insurers have gone down for pharmaceuticals for the most part of the year but have
recently pulled ahead of their fears after president trump abandoned a plan to end rebates. that raised a lot of concern about what it could mean for pharmaceuticals but it tends to benefit health insurers. earnings are also expected to be good. things are looking good for them. one caveat i should add is that the next round of democratic debates is in two weeks so that could see volatility returned to the space. you can find my charts on the terminal at gtv . vonnie: that is a great chart. thank you for returning. it has been a while. abigail doolittle goes up against tatiana. abigial: i want to look at the roller coaster of bitcoin. than one --own more down more than 10%. the roller coaster goes back to 2015. bitcoin trading about $200 per bitcoin, all the way to 2017 highs, closer to $20,000 for
bitcoin. you can see that uptrend broke the uncertainty around that buying, giving way. a 90 degree angle cannot hold. we're looking at a similar situation here. we may have to consolidate down to one of its weekly moving averages below 7000. long-term, probably bullish. you can see my chart on the bloomberg at gtv . vonnie: i am so torn. those are excellent charts. fantastic subjects. we do not get to either of them too much in the program. i'm very torn but i have to say today's winner is tatyana. abigail, there was a great start. we have breaking news. thank you ladies for a wonderful performance. blackstone nearing a deal to buy the european distribution arm of crh, the buildings materials maker. blackstone is down about .25%
and looking at acquiring the distribution arm of crh based in london and dublin. we will see if that happens as people familiar with the matter are telling us that will take place. coming up, "balance of power," with david westin. on the program, former white house budget director on steve mnuchin's debt ceiling warnings. checking markets, where relatively unchanged. a fraction down on the s&p 500 and the dow. this is bloomberg. ♪
cirilli from the white house on president trump's made in america exhibition. onian sassower in new york china's weak but not disappointing economic numbers. kevin, what is going on at the white house? kevin: kevin trump says it top --iness leaders continue to a business agenda that will bring jobs back to the u.s.. don't forget about nafta 2.0 or the usmca, specifically with regards to china, the president tweeting out earlier that he believes the second quarter slowing of growth in the chinese market is largely because of his trade policies, despite many economists saying that tariffs have not had as much of a negative impact on price growth as they would have begun to have thought.