Transcripts For BLOOMBERG Bloomberg Markets European Open 20

BLOOMBERG Bloomberg Markets European Open July 12, 2024

U. K. Sounds a note of optimism. Make my day. Tough words from saudi arabias oil minister. Whoever gambles on this market will be quote ouching like hell. The under an hour away from start of cash Equities Trading in europe. Lets look what we have. Futures not all that convinced in any direction. Weakness in markets yesterday and equity markets, and nasdaq. Ar in u. S. Futures flat and mixed. We do see nasdaq futures heading to the upside. Because ofnificant the selling we have seen. Concerns about concentration and previous gains in the tech sector. We are digesting what we have heard from the fed. In assessments of weaknesses the u. S. Economy. The fiscal boost that will be needed. Lots of questions over the fiscal side of things. Modest gains coming through in asia. Asian stocks of around 0. 4 . The south korean market up a fraction of a percent. Elsewhere, fairly flat markets. Won up to anean eight month high. Dollar weakness part of the story. Keep an eye in oil prices. We mentioned and our headlines, we have seen a strong rally in oil races this week. 10 increase. We are in the low 40s. Brent, up 0. 7 or lets get a first word update. The eu climate chief says rising demand for green bonds the plans to start selling as much as 225 euros billion euros of debt. It will likely make the eu the largest issuer. You see organizations like blackrock making this enormous change into the Green Economy. Waiting for us to come out with green bonds because they want to be a part of that. I believe this is the moment to do this. Remainificant hurdles securing a brexit deal. The European Commission president has told the Financial Times she is convinced it is possible. Informalt round of talks were useful. The Worlds Largest Futures Exchange is launching contracts based on californias water supply, the First Security of its tight in the u. S. Supplies have been tight for years. Almost two thirds of the european population could face shortages by 2025. Global news, 24 hours a day. Than 2700 more journalists and analysts and 120 countries. This is bloomberg. Thank you very much. Laura wright with the first word news update. The european futures mostly flat. Nasdaq futures are higher. That as investors looking for the next catalyst to reignite the rally. Caseslobal covid exceeding onion, data continues to show a petri patchy recovery. We continue to focus on the spread of the virus, where it is and is not managed to be contained. A big question is what can Central Banks do in the face of that and how much support do they need . What will drive trade as we head into september and into the fall . People are looking for the next catalyst. It is not clear where it is coming from. Enough forome now. The fiscal side needs to do more. Every country is a different situation. Responseountries, the is we provided something extraordinary. We are not ready now ready to provide more yet. It is a difference between countries. It is hard to see what is going to let stocks higher. By how willed markets are trading. There is not much direction but im surprised there are not a few more losses. Been undermined and the last week or two. I know you have been asking this question in the live blog. Markets start to price negative fed rates . The verdict around negative Interest Rates is mixed to negative. When you talk to people in the markets. From the japanese, european experience. Is this something the u. S. Is going to have to consider . It will continue to be a conversation topic but i dont think they will go down that road. It is a difficult conversation. I remember being at a conference a couple of years ago. Clear from the psychologyicial, the is very large. Cash is a much bigger element in the u. S. Than other systems that have moved much quicker to the electronic side. They think it would be too big a block to go below zero. I think the fed is very reluctant to go to negative Interest Rates, but i do not see the conversation going away. It will keep up cropping again and again. There will be times when the market might state to price and the idea of negative rates, but it will be pushed back by the fed. About to get your sense what we have learned about the jobs market. The u. S. Arguably provides the cleanest reading of the effects of the pandemic in job markets. It has not kept people in jobs that may be in europe, people have been kept in. Data, itof reading the is interesting to see u. S. Claims with gradual improvements. We are starting to see or continuing to see a bit of an improvement. That is absolutely the case. It is take away doing much better permit the market is holding up better than expected. We have seen that consistently. Unemployment rates are coming down quicker. Whether you for your and the support, it is the case the jobs market has held up that are and is recovering quicker. That is not negate the fact we have seen incredible damage. Comparedmendously bad to a year ago. It depends, whether you are looking of a conspiracy in of the comparison of the worst possible outcome. It is terrible. That is why it can be spun either way. It is not as difficult as we feared a few months ago. Assets, we have Oil Prices Moving higher. Up 10 this week, which is impressive. When you are below 40, it does not take much. 4360 is where we trade right now. Telling those who have been cheating on production cuts to do their bid. A warning to the shores. Ouching or might be hurting. Opece communication from has been incredibly strong. It has not seemed like a coordinated, organized message. It has been a number of different shops making clear they want to calm down. They want to keep the price high. Saudi arabia has been most aggressive. The message of contrition and the fact they will make up for oversupply has been impressive. Support for saudi arabia. Longerterm, it is an asset and declining needs. Behavior. Fting it is a tough situation on the economic side. Pricinglower demand than a year ago. We have to change how people are using oil. Shortterm, has a bit of a tail wind. It is an asset where you keep on wanting to sell over time. Thank you very much. Remember, you can join the debate around the question of today. Get in touch on the questions of the day or anything. Next, after pledging to people rates low for the next three years, the fed is considering extending caps on dividends. Where is the capital going to go . We will discuss with the state street ceo next. Back to the European Market open. Futures, we are around 45 minutes from the start of the equity day. Undecided for a friday morning. It is anashing exclusive talk with on the also teliana sale. They have entered into exclusive discussions regarding the sale teliana. A the exchange was not the only party in the mix. We heard a lot about the Swiss Exchange and the degree they were interested. That is something we have been watching. They had previously said to certain italian newspapers they were open to an italian partner. We will see whether that continues to matter. For the moment, saying they are borsalusive talks on the a teliana sale. The Federal Reserve has considered it has imposed on the biggest u. S. Banks. It said it will decide in the next two weeks. This comes after the central bank proposed keeping rates low through 2023, sending a shutter through markets. To the confusion of some, i we arepoint out read joined by a ceo. Good to have you with us. We want to tackle a number of subjects, not of which is the least the running of your business in europe. Lets start with the market backdrop. You look at the markets . When we have the statement from the fed around low Interest Rates . Adds certainty for markets and investors. Morning from munich and thank you for having me. See the decision by the fed as a surprise. It makes their commitment to keep Interest Rates near zero for considerable time even more credible. Interest rate markets have discounted this. There is just some uncertainty surrounding the september meeting, how the fed would interpret the new mandate. Now we have the answer. Steady as she goes. Thexpect the volatility in markets will continue. Realize this is a real economic crisis, not a financial crisis. We are more reassured than concerned. In 2008,d and dislocations can create longlasting extensions with fiscal and even political consequences. Central banks are doing all they can this time to ensure the resilient positioning of Financial Markets is helping to mitigate the crisis. Rather than being part of the cause. That is why we believe please youread carry in thoughts and give me your thoughts on the fiscal side. Economichis is a real crisis, not Financial Markets. Should fiscal actors be doing. We need to see more on that front . Potentially, yes. ,hat the ecb has done yesterday by strengthening banks and the capital position, in reality was another push and designed to encourage lending. Corporates are financed a lot by bank lending. Hows another push to see can the central bank really encourage this lending . Is anpect there additional push and stimulus that could come into play. See will theto outcome of the election have an impact . You look at the democrats, there is potentially an inequality mandate coming into the mix which will trigger more fiscal stimulus. There is the opportunity to do more. We are expecting Central Banks will continue to do what is needed to create that stimulus. Stay with us. We will talk a little more about running a business such as state street. Plus, Goldman Sachs becomes the home. Bank to send staff we will get details next. This is bloomberg. Back to the European Market open. European futures put a flat. U. S. Futures next read nasdaq futures dewpoint to the upside. Goldman sachs has become the latest bank to send traders home. Employeefter one tested positive for coronavirus. Despite that, they are moving forward with plans to move employers back. J. P. Morgan told staff it expects senior traders to be back in the office by next week. Thoughts onget your bringing staff back. For statee strategy street in india. Is it to bring people back . If so, which structure . What is the path . We have a very detailed plan we worked out with all our offices across the region. Monitor the closely environment. We will make a decision on how and when to bring back people to the office. When we look at the current state, we have in germany right now 30 of the population back in the office. We have to get the others back from london where the environment does not allow us to operate. There is a desire to bring people back to the office. Where we gotn really prepared from a health and safety point of view. To the stuff we have under control in our offices. Aspect isllenging public transportation. With the environment allows us to do is a key element here. When we look at the productivity we see in this work from home set up, it is evident productivity is impacted by working from home. You have areas where productivity is holding up well. Others where it is impacted more severely. Those were factors we took into account. Look out further, we believe we will not go back to a scenario where everyone will be back in the office for every day. This crisis will accelerate driving the usage of digital to operateto get remotely. A lot of that will be part of the new normal. That is something we are focusing on. Prompted you to change strategy in any way . Does the pandemic have any of that kind of read across . Pandemic has led to more broadly how to operate. We are engaging with a lot of our potential clients in these much broader conversations to discuss how shell a future operating model look like . There is a lot of thinking going on right now. What part of the value chain certain organizations would like to do in house or where they would like to partner with an organization. That for us is good news. Moved the has discussion. Really, into the core of what firms are right now looking at. How should we operate our business . Believe this trend will be accelerated very much. Us, that provides a lot of opportunities. Have put out a platform an end to end solution. Thank you very much for joining us. Interesting to get into the managing of a financial business. Something we have covered a lot. Interesting to get a side of this thing. News, a lotou that would fundhow they this. Confirming they are in exclusive talks. An italian candidate would be chairman of the combined groups. We will talk more about the tech and what you need to know about that next. Hat next. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Welcome back to the European Market open. We still dont have any direction in european futures, still fairly flat. Lets see if we can get any inspiration from juliette saly. Pounds forousands of everybody told me to get out a gross value, i would probably be richer. Who is saying what about grace versus value at the moment . The key question we are asking everyone. J. P. Morgan chase saying, value is where you should be looking. Value has done extremely well over the month of september. On track for the best month since september, 2001. My charts showing if you had the , appleal weighted index gets the same waiting as everyone else, it is outperforming the normal market cap version. Take will start to leadership. The secondting in quarter of 21. We have been speaking she sees no serious rotation without rates moving higher. Abouthave been talking rates, and this week as we heard from the European Commission around their plans to issue green bonds. What are you hearing on the subject . Arehey are saying they facing even better returns in green bonds which is seeing store nary growth. Factors playing in, saying this has helped green the bonds green bonds returned 8. 2 . Saying notes will continue to enjoy these greater returns. From investors seeking out environmentally friendly investments. Do you have seen that sharp return coming through ahead of market. Der credit thank you very much, juliette saly. Business flash for you. Tencent under the microscope. The government has asked Gaming Companies to provide information about Data Security. Games, no official comment from the companies. They have agreed to acquire a smaller rival. The biggest deal in the Financial Sector for two decades. Bankingawaited consolidation is starting to kick off. Takeover. Loring a the bio firm has contacted the company in recent weeks. Market value is around 8. 2 billion euros. No official comment yet. Thank you very much. Germanlly of the chancellor says we are unlikely to see any about shift in policy. This will be a transition. It will course bring changes to the party. People shape parties. It is so rooted in the middle, i have no doubt in a time when Angela Merkel is no longer holding this responsibility, the cd you will still be in this course. The message is correct. The course is reaffirmed. One is such as clearly in the strongest position. 36 is certainly not nothing. This is a particularly good result in a local election where the splintering of parties is greatest. This is an affirmation of the goal direction. I think we should not doubt the centrist line. Confirmation of this political line and signals where et stands. A he is a different politician. It is much clearer as was the case under Angela Merkel. Lead his asts to the person who most stands for the center. That was the politician anna, joins us now. Ther almost downplaying the importance, but she has dominated politics for such a long time. What effect will that have when she does finally leave the political stage . Good morning. As an anchorseen of stability. Be leadingt she will the political stage causes concern the biggest the concern will be gone. A lot of questions arise. No matter what he was saying about strong within the cdu. Cdu and itshe relevance. The party vote for a new leader in december, does that person become germanys next chancellor . The Party Convention in december, two candidates who have the best chance to become the new leader. His opponent would be former caucus leader frederick, who has always been a strong critic. They are not really seen as being particularly strong. They are not doing well in the polls. Comesld be that the next from the serious view. We have been talking through this conversation as if Angela Merkel is definitely leaving. Is there any chance she decides to run again in 2021 . Definitely not. Well, shee knows very was always debating with herself. She took a long time to decide she would run again. This time, she has decided she would quit the stage and she would do something else. Nobody knows exactly what she will do. But not in politics. Ok. Thanks very much. Yourto get that and thoughts on it. Up next, by one of swedens largest Pension Funds is bullish on the work for real estate. We will speak to the ceo next. This is bloomberg. Welcome back to the European Market 20 minutes until cash Equities Trading. Still fairly flat on german futures. Come until futures picking up a little bit. And jp morgan have sent staff home. Some are concerned about the longterm impacts on prime real estate, not all agree. The woman running one of swedens biggest Pension Funds says good to speak to you. On cityfairly bullish center real estate. Is that outside of sweden . Where is the they are geography of this . There is something about commercial real estate that makes you move to a doomsday scenario immediately. Things immediately seem worse. What we could run through is different this time. Is that ok with you . Why is this

© 2025 Vimarsana