still with us, james foley, rabobank head of fx strategy.at a mistake, not focusing on the potential cliff edge that could come at the end of next year? jane: i think that is quite possible. the market perceives that boris johnson possibly has the numbers to get through his withdrawal agreement. i don't think many investors are thinking what is going to happen beyond that. potentially, we've got quite a rough road of trade negotiations. one thing that worries the labour party in the u.k. was the changes to the withdrawal agreement or the future arraignment as designated by prime minister johnson. these are the labor laws. the labour party said that this is something that could still be a trap to a hard brexit. if the u.k. tries to pull back on certain regulations, it might be quite difficult to get a free-trade that ish the eu, and during the transition phase, and that is what leaves open the possibility of a no deal brexit potentially at the end of the transition phase, which is only at the end of next year. i believe prime minister johnson

christian lawrence of rabobank will be staying with me. can run gtv on your terminal, browse recent features, and save your charts if you want by running gtv . this is bloomberg. ♪ viviana: this is "bloomberg daybreak." lower in deere premarket trading. the maker of farm equipment delivering a weaker forecast than expected. they say sales may fall as much is 10%. deutsche bank selling another chunk of unwanted assets to goldman sachs. the latest seo involves securities as a notional value of about $51 billion. they are tied to emerging-market debt, previously housed in deutsche's wind down unit, where it has been able to compete. dell has lowered its annual revenue forecast. . component shortages from chipmaker intel hurting growth prospects. that is despite surging corporate purchases of new personal computers. still, dell faces falling demand for services and networking gear. david: for more on tech, we are going to talk now with christian lawrence of rabobank, who is still with us. . the valuation is pretty high. the s&p price

foley is my guest host from rabobank .hing i was struck with with the fed is the internationally and the global deflation risk reference. if global deflation is my threat to the fed how do i position for that? >> if that is your threat, the next move from the central bank is likely to be an interest rate cut rather than interest rate hike. for the dollar, course, that is the reaction between the currency and the central bank is not as straight line. it is not your normal textbook scenario. this is because the u.s. dollar is the dominant currency in international payment systems. there is an a lot of demand for dollars all around the globe. and often when risk appetite goes down, you see demand for dollars remaining extremely robust. in that respect it tends to behave a little bit like a safe heaven. so i think what we have here is that if we have a scenario where it looks as if the u.s. economy is doing well, what you could as is the dollar softening money comes back out of the u.s., back into riskier assets and she riskie

with me is jane foley, senior foreign exchange strategist at rabobank. good morning, jane.orning, jane. are you someone who likes to go on a run? i do go running. yes. i am not good at that. they don't know why they call it a fun run. it's not fun at all. most honest miserable to me. we look at the independent, security chiefs, they must release the russia report. it looked into moscow's attempts to influence things like the brexit campaign, and other high—profile figures in russian and russian business, and their influence in the uk. this is right. if we go back to before this report was commissioned and look at some of the evidence, for instance in 2017, swansea university, one of the us universities,

with me is jane foley, senior foreign exchange strategist at rabobank. good morning, jane. are you someone who likes to go on a run?” good morning, jane. are you someone who likes to go on a run? i do go running. yes. i am not good at that. they don't know why they call it a fun run. it's not fun at all. most honest miserable to me. we look at the independent, security chiefs, they must release the russia report. it looked into moscow's attempts to influence things like the brexit campaign, and other high—profile figures in russian and russian business, and their influence in the uk. this is right. if we go back to before this report was commissioned and look at some of the evidence, for instance in 2017, swansea university, one of the us universities, said they had 150,000 accou nts universities, said they had 150,000 accounts identified links with russia that we did about brexit. there are other ones, accusations about some of the big funders of the tory party, inks with russia. so there was an investigation. the investigation was or the enquiry was by the, security and i

jane foley from rabobank joins me now. lovely to see you. earnings today, but in the meantime, in terms of its reputation, a lot of people's opinions have changed about where they shop and why. that's right, there's an awful lot of influences about sustainability. an disposable fashion doesn't really ring true with that message. i think for primark they are coming up against different consumer choices, but of course, they do have in their sort of strength price. and this is a difficult thing, particularly for young people. they are aware of the sustainability arguments, but on the other hand, they can't necessarily afford more expensive, better quality clothing. so i think this is the decision that many people do have to make. it is really tricky, but also it is notjust the have to make. it is really tricky, but also it is not just the fact have to make. it is really tricky, but also it is notjust the fact it is so cheap. it is also the fact that it is so cheap. it is also the fact thatitis is so cheap. it is also the fact that it is so easy

coming up, we will speak with rabobank's jane foley.berg. ♪ guy: stocks stabilize after that trade driven bounce. what would be the next catalyst to take us higher or lower? a hard landing. air france klm stock drops over 6% as a new strategic plan falls flat with investors. we will hear from ceo ben smith. and on the eeev of south africa's investment conference, we will speak -- and on the eve of south africa's investment conference, we will speak with colin coleman of goldman sachs. withuy johnson in london, vonnie quinn in new york. this is "bloomberg markets." ♪ vonnie: we have a race to those earning these gains, down about 0.1% on the s&p 500 -- we have gains,those earnings down about 0.1% on the s&p 500. investors continue to sell treasuries and

. >> jane foley at rabobank, thank you very much. >>> new this morning, a strong debut for alibaba'sting in hong kong, shares rising more than 8% before closing 6.5% to the up side. the offering of 500 million shares raising more than $11 billion hong kong's biggest listing since 2010 and the largest ipo year to date, a rare boost for the city after months of civil unrest. joining me now is the partner and head of research at manhattan venture partners, which was an early investor in alibaba back in the day. are you feeling pretty good about the way things went off for that hong kong listing today? >> absolutely. i think this was great for alibaba. it validates their business model, their business. it validates the hong kong exchange for the liquidity i think net-net it was good, a good strategic move on alibaba's part, to hedge against the turbulence in the trade wars and all that, provide liquidity and access to the mainland users so in many ways it was a good move and getting $11 billion doesn't hurt, so it's great. >> jane foley just mentioned this idea of what's happening with r

bank --reak -- of rafa of rabobank. what do you think?difficults to value a company of this size, but it is nice to see an ipo from a company that actually makes a profit. alix: fair enough. this is not an uber or lyft, to be sure. you know the dividend is going to be growing. christian: it should be a relatively solid investment basis, but it all comes down to the valuation. that is where the uncertainty really lies at the moment. alix: that brings me to the dividend. like i said, part of it is, here is this enormous, stable dividend that they will be able to pay. they can increase debt. they can cut back on. 1.6 in that world, at a trillion dollars valuation, this redline is where they would be at, 4.7%. l, belowbelow shel bp, below exxon. ellen: that is a huge issue. and you have this mystery dividend which the government takes, which varies based on how much the government sees that it needs. that should send warning signs to investors. this is a company that makes a huge profit, but at the same time, the question of the relationship