Stake. Polls open in the iranian elections where Hassan Rouhani is seeking a second term, but challenger Ebrahim Raisi has gained momentum with his close ties to the Supreme Leader. Good morning, everyone. Yes, its friday, finally tried. Tgif is what most of you must be thinking, and on capitol hill given the drama unfolding there. The stoxx 600 is recovering slightly from the big selloff we saw this week. Up by a third of one percent roughly one hour into the trading session. For the wreak we are on course for a 1. 5 loss. That is the worst week for the stoxx 600 in six months since november. Given all the concerns about whether donald trump can still enact many of his policies, like tax reform and infrastructure spending. Want to show you what the sectors are doing this morning. We have most trading in positive territory. Basic resources, autos doing well. Rebounding from yesterdays weaknesses. Retail, telecoms showing slight underperformance. Lets remind you what happened in the u.
Loreal. Manus welcome to bloomberg daybreak europe. I am manus cranny. Anna edwards is out this week. This is the deal. There is value in water. That is what we have got here. This is the forward for nestle. It is trading at a premium. To its peers. On average, is about 4 over. This is a value creation. What does he want . He wants loreal. Mark schneider, activist shareholder could be his Worst Nightmare or create value. Sell a stake in loreal, taking 27 billion. Any 7 billion. This is rare to find a businesslike nestle with so many avenues for improvement. Set a target, the break. 80 to 20 in terms of your margins by 2020. What will nestle deliver . Lets see how the stock performs on the open. You go away for a begin to come back and nothing can stop the juggernaut of foolishness bullishness. The msci pacing higher. You have oil rebounding. You see technology playing into this market. Since on is up 1. 2 . The csi 300, what a storm or. A stampede continues. Mscis addition to mainland
Traffic may be heavier than usual. People are making their getaway for the Holiday Weekend. We will go to the beach and then be coming back. Reporter aaa says with july 4 falling on tuesday some people will get a four day weekend making a road trip more inviting. They predict that more than 37 million americans will hit the road and 3 more than last year. We are thinking san diego but the traffic is so bad. Reporter Traffic Congestion is on the minds of many folks. The Commission Found that 85 of 9000 people surveyed say traffic is worse than a year ago. This is the number one concern of resident in the bay area is a traffic situation. Permit the studys finding that people are willing to pay high toll fees. Nothing is free in life including transportation. Reporter the money would fund improvements. Adding rams and keeping they need to figure out how they are going to build more intersections. Reporter people say that they expressed skepticism. They are saving all that money by taking
European equities still lower, down 8 10 of 1 on the stoxx 600 , every Industry Group heading lower except for health care with Health Care Stocks in the green. Energy very much underperforming and telecom and financials closely following in terms of the worst performers with the stoxx 600 heading for its worst week since november. We have also seen volatility spike on the euro stock 50, this is an interesting chart, this is looking at 20 day realize volatility. Showing the spread between s p 500 and stoxx 600. Showing european equities are more volatile than the u. S. By that measure. In the bottom half, you see the spread fear a few days ago, the widest spread in one year which has tightened up. You see the difference in volatility. I am looking at sterling and currency markets, we saw broadbased dollar weakness following the u. S. Data coming in soft beard euro stronger in the session against the dollar and sterling. Sterling unchanged. The five day chart to give you context, down 5
Amazon prime phil 16 billion worth of longterm debt to fund its whole foods acquisition. If amazon can sell fortyyear debt at these kinds of prices, why cant the u. S. Government . Sinks. Ck profit we are going to speak to its ceo right after that market open, archly, matt . Matt absolutely, and interesting results, including an almost 300 million a year loss from a cyber attack. It will be great to get the details on that. Here we see the intraday futures trade on European Equity indexes, up across the board, and some pretty solid gains in futures after we had pretty solid gains in the cash trade yesterday, especially the ftse and the cac. Do quite as well, but it is gaining in futures, so that may even that gain out. Continue tobuttons rise, so investors are going to risk off. This is a threeday chart, so you can see what the trend has been, and it has definitely been one of yields rising, prices falling as investors selloff the german debt. They have been doing the same with treasur