vonnie: thank you.hat is kailey leinz with our market check. do remember the function vtb go on your bloomberg allows you to browse all of the recent charts -- the function gtv on your bloomberg allows you to browse all of the recent charts. this is bloomberg. ♪ ♪ live from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." let's check on the bloomberg first word news with ritika gupta. ritika: house republicans want her to -- want meant ability to transmit articles of impeachment to the senates of the trial can begin. democrats want guarantees about the scope of the trial in the republican-controlled senate. in new york today, jury selection begins in the sexual assault trial of disgraced movie producer harvey weinstein. dozens of women made allegations against the hollywood mogul. it led to the me too movement worldwide. weinstein has pleaded not guilty. he says any sexual activity was consensual. weather and some rain are helping attempt to fight australian bushfires,

vonnie: thank you. calling., natura brazilian company natura cosmeticos can now call itself the owner of avon. chairman joins me next. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. this is "bloomberg markets." avon products has been trying to make a comeback. today it officially has a new natura.razil's is the coexecutive chairman roberto marques. congratulations. what are your main priorities now for this new company? >> thank you for having us. it is a very exciting day that we got listed on the new york stock exchange after completing the deal. our priorities are to continue avon to this amazing new heights. we believe in the direct selling that a string forming itself to a social selling platform. we believe that what we used to ladies, ding dong, is becoming more click click, high-tech. we can accelerate to over 6 million consultants and representative globally. just deciding that multilevel marketing has social networks, how else do you continue to make multilevel marketing

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn.: from london, i'm guy johnson. this is "bloomberg markets." annual conference is taking place in paris, and this year's theme is accelerating growth in europe. joining us now from the conference with her perspective on this and a number of other issues, siv jensen, norway's finance minister. minister, the biggest story in financial markets today is blackrock, the biggest asset manager in the world, with $7 , hasion under management decided sustainability is going to be front and center for its business. do you think we are reaching the point where the rates of change toward the end of the oil era is really starting to accelerate? what does that mean for norway? ms. jensen: first of all, i don't think the era of oil and gas production is over. i think actually those that produce with low emissions is part of the solution, not part of the problem. highlye companies innovated through technical development, and that makes it possible for these companies to invest in renewable energy and b

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.uy: and from london, i'm guy johnson. this is "bloomberg markets." now to markets with abigail doolittle. abigail: take a look at the s&p 500 here in the u.s.. investors seem a lot of it relieved that tensions between the u.s. and iran have de-escalate it for now. perhaps now looking forward to the corporate profit outlook that will kick off next week. whether or not we can leave the earnings recession that the u.s. corporate profit outlook has been mired. by for a few quarters we have also gained in europe with the stoxx 600 higher. in london, the ftse 100 higher as well. apple the big gainer on the day. another all-time high over the last year. up 49%. last year, gaining just about that same amount. surprisingly the best year since 2019. upestors have been snapping tech shares after the buying appetite after the selloff of the great recession. the bulls very much in charge for tech. not so much for retail on the day. there is one winner here, but some big plungers. 18% bath & beyond

vonnie: thank you. more on what you need to be watching in the first couple of trading days in the new year and ke with us.have lu plenty of optimism to start the new decade. it is not how you start the year, it is how you finish. we should be careful not to read too much into today's actions. doneere was a good job between how the first day goes and how it ends. in general, not taking the day but thinking about the backdrop. the backdrop seems more supportive than it did at this time last year. it was january 3, where we thought the world was nearly ending, when you had the apple revenue and the japanese leverage and another blowup. the next day, you had a jobs report and china announcing measures. in terms of where we are, it is a different world from one year ago. europe does not seem to be stabilizing as much. data hasthat the bottomed is alive and well. we get to january the 14th, how critical are those earnings going to be? will they satisfy high expectations? high thosesure how expectations are.

vonnie: thank you.anasios psarofagis of bloomberg intelligence with us there. it is time for your latest bloomberg business flash. plane takes to the sky today for the very first time. is the first in the 777x range and the first model since they grounded the 737 max. apparentn as the heir to the 747 jumbo at a time when boeing is trying to repair its reputation. have a 50 likely to year of closing u.s. locations. according to researcher mcdonald's still has almost 13,800. american express has high hopes for 2020, predicting earnings will surpass many analyst expectations, and expecting more competition from its biggest rival. annex spends less than it -- amex spends less than some of its rivals to sweeten the bonus on charge cards. guy: still ahead come apart of our conversation with the ecb ahead, part still of our conversation with ecb president christine lagarde. she spoke with francine lacqua in davos. on that topic, this week marks the launch of bloomberg green, where we leverage the power of our

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn.ell 1.2%home sales in the quarter but that is the smallest year-over-year decline since 2007. we are diving into the report from miller samuel and we have jonathan miller with us. there is some really interesting things about the report. the threee overview, or four major things that impacted the housing market. >> 2019 has been a series of significant law or tax changes that have really hurt the high-end of the market. rental law passed, which scared investors. when investors close, they become landlords. there is a repercussion related to that. you also have the federal cell tax. that was 2018. that has taken a hold of the market, where it cap 10,000 dollars as a limit for exemption for property taxes, state and local taxes. then we have the mansion tax. that was implemented july 1. that has really slowed, targeted the high-end of the market, has really slowed activity down. vonnie: the different segments of the market were interesting, they always are, but with stocks at records, wa

happy friday, vonnie. alix: yes, and a --vonnie: yes, and a big week for markets. we have more data now. , thesale inventories down november final data. it is the jobs data we were all concentrating on this morning. it came in mixed, you would say. in terms of a market reaction, it is hard to say what the market is reacting to, whether it is the mixed jobs report, tensions with iran and so on. for now, a fairly sanguine reaction from equities. the s&p 500 just up 0.2%. the 10 year yield at 1.84%. oil continues to drop, down about 0.7% now. the vix is at a fairly calm 12 and change. we are waiting for a 10:45 press meeting with the signatory of state -- the secretary of state. guy: that is going to be fascinating. we have an emergency meeting of european foreign ministers as well today, but that story in washington is one to watch. i'm sure the crude market will be. european stocks up a little bit today. we saw a little bit of action around the payrolls number, but not much. saw our way back from earlier highs. the dollar continues to push on up. i am going to show

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets."'s go now to david westin. he has a special guest. david: we are joined by kevin johnson, ceo of starbucks. thank you so much for being with us. it strikes me there are two stories going on here. one is your earnings, which were impressive, but also, it is china. let's talk about, apart from china, how you came out up across the board. sales, margins, same-store sales across the board. then: we just had one of most successful holiday quarters in the history of starbucks. you think about it at our scale globally, we posted a 5% growth in same-store sales with 2% growth in customer traffic. we had a 6% growth in same-store sales in the u.s., with 3% growth in traffic, and 3% comp growth in china. all of that was fantastic. net news door count grew 6%, and channels business grew 5%. overall, we had 9% growth and a significant beat on earnings-per-share. they're very pleased with how we performed in the quarter, and that momentum discontinued from fiscal year 19 into q1 of fiscal year 20.

vonnie: in the u.s.e u.s., there's been a lot of talk about drug pricing. -- about drug pricing transparency. what are your thoughts for the next few years and how you are clear about the pricing? bill: i think transparency is generally a good thing. in the u.s., one of the issues we have as an industry is almost half of the cost of medicines born by patients in the system doesn't go to the innovative pharmaceutical companies. it goes to middlemen, intermediaries, insurance companies, benefit managers. so rebate reform and transparency are ways of ensuring that people understand, where is the money going? we think that innovation should be rewarded, and the kind of innovation we are bringing with new medicines for multiple sclerosis, lung cancer, liver cancer, so we generally favor transparency. taylor: we are in san francisco, which is a tech hub. you mentioned also it is one of your second-biggest locations relative to the headquarters in switzerland. how are you partnering with tech companies to ensur

this is bloomberg. ♪ vonnie: live from new york, on vonnie quinn.uy: from london, i'm guy johnson. ."is is "bloomberg markets let's check in on the market story right now. here's abigail doolittle. abigail: we are seeing gains right around the world. 0.2%.p 500 up about in europe, the gains are larger. the stoxx 600 up about 0.9%. the asian session was relatively solid. the nikkei up about 0.5%. confirming it from a cross asset perspective, we have bonds trading lower with the 10 year yield climbing by about three basis points. the top sector in the u.s. right now is the communications services sector. that includes telephone and communication companies, but along with some of the big internet names, you see up about 0.4%, the faang index higher. alphabet up 1%. yesterday crossing that $1 trillion market cap mark, let's go into the bloomberg terminal and see the elite club that alphabet has joined. here is in yellow and white, both amazon and apple in that $1 trillion market cap area. alphabet climbing up there. a very elite club for the and interne

vonnie? vonnie: for more on the intensifying market concern and economic impact of the deli --onavirus, we are joined economic impact of the coronavirus, we are joined by our guest from denver. why the big concern in markets over the weekend? there was trepidation last week, but there was still optimism, but that optimism is going away. >> good morning. it really has to do with the key structural difference between the current wuhan coronavirus and the truth and evidence coming out that the virus can be spread without an infected person showing any symptoms. that makes it very difficult to standard -- then makes it very difficult follow standard protocol on how to isolate people. virusomes fact that the can be transferred a symptomatically. that is a game-changer. you have to be a bit more creative in figuring out how to identify people, how to sequester and isolate them to prevent any further transmission or propagation of the virus, and that is -- and that has woken up the markets. vonnie:

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn.from london, i'm guy johnson. this is the european close on "bloomberg markets." let's check in on the bloomberg first word news with cornie donahoe. the head of iran's national security council said that retaliation would be a historic nightmare for the u.s., exploring 13 possible scenarios. they said the u.s. would suffer consequent is at a time and place of iran's choosing. japan striking back after the daring escape of carlos ghosn. havecutors have sued -- issued an arrest warrant for his wife carol. an deathbeen rocked by puerto rico has been rocked by a 6.4 magnitude quake that hit earlier today. it was followed three hours layer by an aftershock measuring 6.0. beenast one person has killed in widespread power outages have been reported. u.s. imports fell to their lowest level since 2014 as exports rose. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is blo

vonnie: i'm vonnie quinn in new york. the u.s.ury will start issuing 20-year bonds, extending insecurities as it looks to fund a rising deficit. they will likely draw more domestic buyers than global funds. they tend to prefer shorter maturities. here to break it down for us is katie. why now, why this announcement now? >> the u.s. is on track to hit $1 trillion deficits. kind of an unprecedented situation. treasury had to be created here. one of the options was issuing more debt. when we last heard from mnuchin in september on issuance plans, we were talking about ultralong's. 20-year bonds were not really in the conversation at that point, but it makes sense, probably the safer option, falls within the existing market structure and's we have 30-year bonds. they probably thought the demand picture was a little bit healthier. amanda: the point that is interesting, there are 30-years in the market now with 20 years duration left on them. analysis simply that given there was talk of 50 and even 100, why not go back to 30, which is a

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn.uy: from london, i'm guy johnson. this is "bloomberg markets." let's check those markets now. abigail doolittle has all the details. abigail: there's a risk on muthu markets after the signing of that phase i trade deal between the u.s. and china -- risk on mood to markets after the signing of that phase one trade deal between the u.s. and china yesterday. russell 2000 joining in, up 1.3%. a bit of a move lower, take a look at the shanghai composite. during the asian session, chinese stocks not reacting favorably to the signing of that deal, but not a huge loss there. here in the u.s., it is risk on. let's use the imap in the bloomberg. all 11 sectors are higher. consumer staples and utilities near the bottom, among the defensive sectors. 1%, bouncing back from yesterday. consumer discretionary also up 0.7%. yesterday, after defining of that phase one trade deal come of the chip sector come a very sensitive to china via the supply chain, sold off of the lows. today reversing that, up 1.

vonnie: it is 10:00 a.m. in new york. 30 minutes into the trading day in the u.s., i am vonnie quinn. guy: i am guy johnson. this is bloomberg markets. vonnie: tensions dominating today's trade. we are watching the first auto sales numbers coming out. have the first isn manufacturing sales numbers coming out. it is less than that by almost two full points. it is lower than the previous month, 48.1. we are moving more into the mid-40's. new orders disappointed, 46.8. prices paid at 51.7. that was a big jump from the previous month, 46.7. just one more piece of data, employment also drifting lower, 45.1. it looks like the manufacturing sector is feeling some pain from trade. let's check markets because we are to have a negative market impact overnight. given the heightened geopolitical tensions, we saw the 10-year yield dropped. we're back to 1.81 right now and rising once more. treasuries selling despite that manufacturing data. we have the s&p 500 down 0.7%. the only sector that is positive is energy. not tha

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn.don, i'm guy johnson. this is "bloomberg markets." let's hand things over to bloomberg's erik schatzker. erik: this is one of my favorite conversations of the year, the annual outlook with henry mcveigh, head of global macro and asset allocation at kkr. you started 2019 with a risk appetite of nine on a scale of 10. where are you today? henry: i think today, we are closer to a six. we said that there would be liquidity coming into markets. today we have a more balanced view. erik: we had just seen the selloff in the fourth quarter of 2018. obviously, equity markets, credit markets ripped in 2020. some people might think now is a more appropriate time to be cautious and not to lean in even to a six. why six? henry: i think central banks are going to remain positive. in a two, i think we are global era of inflation. i also think our models as we highlight in the report are turning up, so you are not as dependent on multiple expansion. i would say quantitatively, the work we look at gener

vonnie: i am vonnie quinn in new york.t is seeing the difference between five and 10% of scaling its workforce after its funds lost assets last year. joining us with the latest is bloomberg news finance reporter. how unusual is this? we get layoffs most places most years. >> we do get layoffs, but about a year ago, they had also cut jobs at this percentage. at the end of 2018, we had more than 1000 person headcount, and last year, a 900 person headcount, so another 5% to 10% on top of that, you start to see the find drop down below 1000 people. it is a unique story for certain. amanda: unique and yet, it rang a bell for me and you do a quick search. at the beginning of 2019, they headlines were, why is it doing so badly when the markets are doing so well. it really familiar. what has gone on? sonali: something that they said last year and that he would stick to his beliefs, and they were not having a strategy problem but an intuition problem. a lot of the factors they were using were not performing in this market. to be fa

vonnie: from new york, i am vonnie quinn.alling, treasury yields are following. .et's get more with mike regan he is not falling, at least not yet. yields have been plummeting, all of these moves, why? mike: obviously to me is the coronavirus. was duringteresting the world health organization press conference. we saw a strong bid to stocks even after they basically said this would is a global emergency but they had said they will not issue mandatory or recommend red -- or recommend mandatory travel restrictions. different airlines are doing that anyway. then you had the cases discovered in the u.k., another case in the u.s. i go back to that cliche that all news is local. the closer this gets to other financial capitals, london, or knock on wood we have not seen any cases in new york, but the closer we get to major financial capitals, the more nervous people get. regardless of how much of a health risk it is in the u.s. or britain right now. the real risk is the consumer reaction, the self corentin that quarantppen -- the sel

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.: from london, i am guy johnson. let's check bloomberg first word news. ritika: president trump has named alan dershowitz to represent him in his senate impeachment trial. dershowitz confirmed he will be making oral arguments. starr and added ken others to his team. he was independent counsel to the investigation that led to bill clinton's impeachment and 1998. the u.s. housing market took some momentum into the new year. 70% to analmost annual rate of $1.6 million. demand is being driven by mortgage rates that are near a three year low. i rods supreme leader blasted prayers, he led friday for the first time in eight years. slap toiran delivered a the u.s. image as a superpower. iran fired missiles at u.s. bases in iraq after the u.s. killed a top iranian general. there was nothing mary about christmas and the british region. they fell .6% in december. retail sales have stagnated for the last five months. that will add to speculation the european bank might cut rates. global news 24 ho

vonnie: thank you. we are seeing comments with earnings that are a little uspidation us -- trepidation -- trepidatious. let's bring in joe davis. caterpillar and other companies are saying there might be a howl impact for u.s. steel much of a broad impact as the coronavirus have on the economy? impact.will have an we will see that in the financial market. we have to assess how much further damage we could see. we have not changed our global outlook. for context, we were more pessimistic than most going into the year because we thought uncertainty would lead to a lower than expected growth in china, the united states, and the u.k.. expect a serious downshift in growth and less we see transmission of the unfortunate pathogen outside of china. but we did just get consumer confidence and it's holding up in the united states. consumer withstand the global uncertainties? i think it can, we were anticipating a modest downshift from robust consumer spending. in thisa silver lining unfortunate string of events i

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn.usan collins and mitt romney say new information from the draft of john bolton's book have bolstered the case for the senate to hear new testimony in the impeachment trial of president donald trump. for the latest, we are joined by kevin cirilli. proceedings have just gotten underway again. what are we anticipating hearing today russian mark -- today? kevin: there has been an open debate about whether john bolton's any script -- manuscript should the republicans to say that they want to have witnesses for the trial. susan collins, mitt romney have said this would lead them to want to hear from witnesses. a caveat here as to whether or not they try to get the manuscript issue in the court through mechanisms of the judicial system. has raised that point. other republicans are pushing back forcefully, saying the accusations made by bolton in the manuscript are nothing new, and unless there is new accusations that were made, it it wouldn't change the trajectory of the trial. let's say that

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn.: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's check in on the bloomberg first word news. here's courtney donohoe. courtney: pressure is building on senate republicans to allow witnesses in the senate impeachment trial. arepresident's supporters bracing themselves for the possibility of more damaging exposures. according to "the new york times," john bolton was concerned that the president granted personal favors to the autocratic leaders of china and turkey. today, president trump will unveil his mideast peace plan. he will boy joined by israel's prime minister benjamin netanyahu -- he will be joined by israel's prime minister benjamin netanyahu. the palestinians aren't even speaking to the president because they don't feel their side is being equally heard. there are fears today's announcement could spark violence. the u.k. is breaking with the u.s. over huawei. the british will give the chinese company a partial role in building the company'

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.ondon, i am guy johnson. this is "european close" on bloomberg markets. let's get a first word news update with courtney donohoe. courtney: the u.s. labor market entered the year with less momentum. employers added fewer jobs than forecast -- 145,000. wages rose at the slowest rate since 2018. the unemployment rate remains at a half-century low. iran is calling on western governments to prove their claims the ukrainian jetline was shot down. leaders of the u.k., canada, and australia say they have intelligence showing the plane crashed after being hit by a missile. the flash of light reportedly shows the mom to the missile hit the plane. the new york times obtained the missile -- the video. pelosirs expect nancy end her delay of president trump's impeachment trial. she has not gotten any consensus -- any concessions from republicans and that has left allies questioning her strategy. she has not said when she will send her articles of impeachment to the senate. northern ireland's politi

vonnie: thank you.reet's biggest banks are reporting their latest round of earnings, and it was an especially big quarter for jp morgan. profit jumps 21 percent, fueled by a rebound in fixed income trading. for the year, it posted the largest income of any bank in u.s. history. morganbasak's was on jp -- sonali basak was on jp morgan's call with analysts. there must have been something negative in there. abigail: sonali: generally -- sonali: generally, wall street seems to be shrugging off any fears that had existed on income pressure, rising tensions in the middle east, even trade tensions. jamie dimon said things are good for now. so we will see whether those things actually become issues, but for the time being, they really eat home the point that things are really good right now, and they were got across almost every business line -- they were good across every business line. guy: how much of this was about taking market share from wells fargo, and how much of that can continue? sonali: wells fargo

, i am vonnie quinn.guyom london, i johnson. let's check in on the bloomberg first word news. vonnie: in afghanistan, the taliban says it has shut down a u.s. spy plan -- spy plane. investigating. an explosive leak from john book.'s president trump told him to unfreeze aid until ukraine according to the new york times and that could put pressure on republicans to agree to call witnesses in the trial. new homes in the u.s. fell to a five-month low. a single-family home sales are down to an annual rate of 694,000. fog may have been a factor in the crash of a helicopter carrying basketball icon kobe bryant and 8 others. everyone on board was killed when a helicopter slammed into a hill. among the victims, bryant's 13-year-old daughter. bryant spent 20 years in the nba with the los angeles acres -- lakers and won five titles. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. vonnie: thank you. ,a

vonnie: let's check on the major averages.fter all that has gone of this week it is moving very little today. the s&p 500 up appoint. oil down by about $.30. the dollar index soft but going nowhere. amanda: we did see a reaction on the currency front and can into our jobs data. weak jobs in the u.s., not so in canada. we got some reversal of the weakness in november. two and a half thousand jobs added. basis that puts us as the second highest increase in jobs since 2007. unlike the u.s. we had wage gains continuing here. 3.8%. all of that puts focus back on our central bank with questions of what it might do ahead. vonnie: let's get to the geopolitical events of the day. steven mnuchin laying out more details about new sanctions on iran. they will target steel, aluminum, copper and iron, and eight senior iranian officials. >> today's sanctions are part of our commitment to stop the iranian regime's global terrorist activities. the president has been very clear. we will continue to apply economic sanctions until iran stops terr

vonnie: from new york, i am vonnie quinn.trike in iraq many industries, one of them travel stocks. our stock of the hour is american airlines. already struggling before today. here to survey the damage is taylor riggs. taylor: and improving picture at one point in the last few days. american airlines was down 3%. only down 1% to 2%. a lot of factors going on. you mentioned the increase in the price of oil, up 4%. tourism implications as well as people get nervous. american airlines was already dealing with a lot of other issues given the grounding of the 737 max, one of the most levered airlines. they are the greatest risk of an economic slowdown. all of the others, united and delta as well, given their exposure abroad heading lower on this news. i mentioned oil because jet fuel continues to be a big cost for all of these airlines. delta coming in spending about 18% of their total sales for some of the fuel cost than american and united as well at about 20%. i also mentioned terrorism because some of this impacts travel. the

vonnie: i'm vonnie quinn in new york.mer new york fed president bill dudley says a standing repurchase agreement facility would make the fud is new regime even better, adding trader os arens due to rep exaggerated. he spoke with alix steel from our princeton bureau. >> it creates more uncertainty about the economic outlook but it is hard to react because you don't know which way ins are going to break. think about it as risks have gone up, uncertainty has gone up, but it will not lead to any change in monetary policy in the near term. find things like this delayed or postponed is this decisions when you're are doing your fed surveys? bill: it could cause some uncertainty about what would happen to energy prices, for example. uncertainty affecting the economy has been the uncertainty on trade policy. that uncertainty has lessened a bit, as we are moving toward an interim deal with china. recently, with every bone markets, in a bloomberg opinion, you wrote a piece about how the fed needs to embrace the new monetary policy,

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn.s we approach compensation season, no better time to talk to ilana weinstein, the founder and ceo of the idw group. she joins us now for her views on the health of the industry, compensation, and how the pieces are moving around. 2019 seemed to be a year of revivals for certain big come along on funds. 58.1%, lend you had a great year. several others had great years. is this an inflection point or just a good year? i would almost call it a last gasp. if you look at the markets, let's not forget, up 30% this year. you have to look at how much of those rate returns were correlated to the market. then look at the composite of the return. 16, 17, 18, the four years preceding this year. you mention pershing square. this is the first year in five years he has had a positive return. green light, still not out of its high water mark. they were down 34% last year. reallyst 14% doesn't those who invested prior to 2019. hip to this, aware of what is going on, looking at the composite. if i asked

vonnie: that would be some move.re you convinced enough to put on some kind of position that might reap the benefits if that were to happen? guy m.: we are the second largest of london's endowment of charity managers. we have a lot of institutions, churches, universities, charitable entities that hold a large amount of global assets. most of the liabilities are from sterling. we are running for some of the largest currency hedging programs back into sterling despite costs on the dollar short on the grounds there is potential for of substantial increase in sterling if the funds return. guy: -- vonnie: what about real estate. i imagine if you're involved in those kinds of organizations, you have a view on real estate? guy m.: certainly we are hearing a lot from developers and patients focusing on the london prime commercial market that the cause of brexit, the pipeline of new buildings is substantially lower. yields look quite attractive, particularly compared to several of the european capitals, and if my view is righ

vonnie: let's get a check on those markets. basically a risk off kind of day, but we have stabilized somewhat in the afternoon. now,&p down just .4% albeit most of the stocks are lower, with the exception of energy. crude oil is up 2.6%. we spiked as much as 4% in the overnight session. the 10-year yield at 1.80. ism menu fracturing came in a little disappointing. rightutures above 1550 now. jon: certainly, when you talk about the change in the marketplace right now, let's take a look at what's happening with global bonds, specifically the yields. the u.s. 10-year the at the lowest level since december. questions on what ultimately the federal reserve will do based on not just this developing story but also the week manufacturing data we saw earlier today. this is certainly a global story, whether we look at the yields in the u.s., germany, the u.k., or canada in reaction to this news. some new developments, breaking news the developing situation between iran and the u.s. ,oining us now is bill faries who leads national securit

vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets."let's get back to our special coverage from the world economic forum in davos. haslinda amin is standing by with the ceo of temasek international. haslinda: we are talking about pillay joining us. blackrock says it was to halve greenhouse gas emissions by 2030. where are you in this target? dilhan: the first is that we have decided to but esg at the heart of what we do, so that means embedding esg metrics within the things we look at for each and every one of our companies. the second thing in terms of climate change, which is a much more specific issue, number one is to make sure we are carbon neutral this year, temasek itself, and second, to make sure our portfolio companies halve emissions by 2030. in addition, we are thinking about how we can expand a number of sustainability investments. we just announced one yesterday for renewables in india. we are thinking about how we can get companies to work with us on a sustainable solution. we are singing about how to thesestable financing

this is bloomberg. ♪ vonnie: i am vonnie quinn.: i am guy johnson, time for the stock of the hour. here is abigail. >> looking at target as the big box retailer has essentially slashed his way to the focus, the retailer sharply lowered its same-store sales outlook, and right now, the stock as you can see in the moment, it's on route for its worst day since 2018, down about 7%. as i mentioned, when you take a look at the recent comp action and the/estimate, you can see the shares are down 6%. but this is clearly moving in the wrong direction, the estimates of the fourth quarter are up one point 4%, down on a year-over-year basis, but also well below the previous target. behind the weakness are the toy and electronic categories, toys are flat from target investing in that category, that's weighing on some of the other toy makers like best buy and mattel. into otherhrough retailers is certainly having an effect and that's the big discussion. if you look at the one year chart of target relative to the consumer discretionary, you can se

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. london, i'm guy johnson. this is european close on bloomberg markets. let's check in with bloomberg first word news. here is ritika gupta. filing for unemployment benefits dropped to a four week low. in a bloomberg -- that was in line with estimates in a bloomberg survey of economists. president trump's campaign says it raised $46 million in the last weeks of 2019. it ended the year with $102 million in cash. the president's campaign has urged supporters to donate as a way to show their disdain for the impeachment investigation. bernie sanders likely has the largest war chest of any potential nominee. 34.5ampaign says it raised million dollars in the fourth quarter. julian castro has dropped out of the race for the democratic presidential nomination. he was the only latino candidate and supported progressive policies. he was unable to rise in the polls. in a video message, he said it is "not our time." benjamin netanyahu will ask parliament to grant him from immunity on corruption cha

vonnie: thank you. with us in london is paul danis, multi-asset portfolio strategist at brewin dolphin. you talk about how if bernie sanders were to become the democratic nominee, that would have an impact on markets. how much are your clients asking about that at this stage in the game? paul: we are getting more and more questions as we get closer to the november election. last year, the story was the rise of elizabeth warren. over the last couple of months, we have really seen a bernie sanders surge in the online betting markets and in the polls, so i think investors in general are starting to think about what would happen if you actually saw bernie become the democratic nominee, and eventually if he became president. vonnie: what are the strategies you are laying out? i don't know if you want to call it a hedge or a bat or what have you. paul: that is one of the biggest risks to our bullish view on global equities, and also a big risk to our recommended overweight position in u.s. equities versus the

vonnie: from new york, i'm vonnie quinn. the rpm close on "bloomberg markets -- this is the european close on "bloomberg markets." the dow is up zero point 6%, the s&p 500 up 0.5%, and the nasdaq up 0.8%. some of the best performers in the s&p include the chipmakers, amd for example, and starbucks up 2.25%. guy: in europe, the dax is outperforming. stocks like lufthansa doing well. stockshas got 20 of oil -- has got plenty of oil stocks as a result. underperformance is coming through for the cac 40. we will deal with the details next. the european close is coming up. this is bloomberg. ♪ guy: 30 seconds to go until the end of regular trading in europe. 40 has gone down and down throughout most of the day. that is the picture in terms of the 30,000 feet you. this is the view in terms of how the session is developing. the stoxx 600 has moved higher. we are not quite at session lows, but nearly. volume has been all right. individual markets look like this. oil has been a laggard today. they are that in mind. that in 100 -- bear

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn in new york.nda: i'm amanda lang in toronto. china promising to bring the coronavirus under control after the u.k. and russia confirmed the first cases of the virus earlier today. hong kong reported its 13th case. in the last hour, a new york city spokesperson said there were no confirmed cases in the five boroughs, but there are some suspected cases. joining us from hong kong with the latest is yvonne man. how can china bring this under control, does it have an absolute teacher of what has happened with those already affected? >> they continue to say they've been transparent with the disease and the spread of the outbreak at the moment, really pushing back on some of the comments we heard from the u.s., when they began to urge americans to avoid travel to china. they took issue to that. the washington post today also reporting that perhaps president trump is way more tighter travel research and's, perhaps a full on band to china as well, which will not bode well for beijing. at this point, still

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn.uy: from london, i am guy johnson. this is the european close on bloomberg markets. vonnie: the consumer electronic show is underway in las vegas. at the event, procter & gamble is showcasing high-tech solutions to traditional products. joining us is procter & gamble chief executive officer david taylor. give us a highlight or two of the p&g products and the innovation you are bringing. you seem to be spending more and more on your venture arm. david: this is the second year we have been at ces. this year is bigger than last year. we have five categories and nine brands. many of these are connected products that take human insights along with leaving in technologies to deliver great consumer experiences. we have a baby care example, which is our connected system. we have our great skincare system, as well as a new power brush that has been reimagined that gives outstanding performance. it lets the consumer see how they are performing and give positive feedback. vonnie: there are a coup

vonnie: we are keeping an eye on airlines, too. breaking crude oil inventories in the last few minutes. crude oil inventories showed a build from the last week of 1.6 million barrels. the market was looking for a drawdown of 3.8 million barrels. but don't forget the massive drawdown of last week of nearly 11.5 million barrels. it has been a little bit volatile. we weren't expecting a build this week. it will likely take a little bit of the pressure off oil prices, which obviously soared last night, and indeed, wti down at $61.33.now refinery utilization was down 1.5 percent, and gasoline inventories showed a build about four times what was anticipated, 9.13 million barrels. let's check in on the bloomberg first word news. here's ritika gupta. ritika: a u.s. official says iran appeared to avoid u.s. casualties in that missile attack. iran fired more than a dozen missiles at u.s. bases in iraq, but gave iraq a heads up before the attack, and no americans were hurt. that could avert dramatic escalation. president trump will give a sta

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn in new york.nda: i"m amanda lang in toronto. seen a risk off tone embrace the markets since this morning. lows ofw we are at our the session with the s&p 500 down 1.1%, the dow down 0.8%, the nasdaq down 1%, even with semiconductors performing well today. consistent at 1.68, with that risk off tone. one stock i want to point out, boeing, down 1.3%. the reason i'm mentioning it, we another piece a relatively bad news for the company, saying it's considering another cut to the 787 dreamliner production. at the same time they are fending off all of his dad news, it is also debuting today it's 777x line. the wingsthe wings have just bet into place, the first time that's happened for a jetline. the wing tips are so long, they are facing up on the runway. right before it takes off, they fold into place. we are waiting for that to happen. it will be the first time for a jetline of that size since the 747 was retired. amazing that they are introducing this in the wake of those fatal crashes. this is the f

vonnie: this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: i'm guy johnson.s is the european close on "bloomberg markets." let's get a check on first word markets. here's riddick a group to. gupta.'s ritika admittedran's leaders that the country's military mistakenly shut down a ukrainian jet. president trump warned the arena and government not to kill protesters. in the philippines, and erupting volcano south of manila has forced thousands to flee their homes. it could getarn worse. scores of earthquakes could signal and another eruption is eminent. the british economy unexpected lay schrank just before the general election. gdp -- unexpectedly s hrank just before the general election. officials are debating whether an interest rate cut is needed. house speaker speaker in a civil oc is accusing senate republican leader -- speaker nancy pelosi is accusing the senate republican leader of trying to the impeachment. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm

vonnie: thank you.e back with james bevan, cheesed -- chief investment officer at ccla investment management. to europe the u.s. and europe to the emerging markets. why is it at a time when many and investment managers are saying if the time for em to shine? james: it would be time if we were confident the global economic recovery will continue, my great concern is we still have some serious structural deteriorating demographics, disrupting technologies. and more risk which despite the u.s. china agreement really hasn't gone away. quality andick with we get an in norma's number of companies with sensible value contrasted to far fewer number in europe and a mere fraction in the emerging -- emerging markets. where does britain come in? a week left before brexit. yesterday, what do you make of valuations in the u.k.? james: they have made an awful lot of ground since the general election. going income of the u.k. market was quite fearful. more --re shifts story johnson got his essential majority and agains

vonnie: exactly. oil now, butt shipping lanes. win: exactly. i think it will be hard for markets to be bullish on this backdrop. guy: walk me through the currency story here. oilhere is a problem with going higher, does that bring the fed back in? a -- if we have a significant rise in recession risk, the fed would have to take that into calculus. unless there is material change to the outlook, they are on hold. qualify would clearly as a material change. that said, we had very different responses. you look back to 19 to be three, -1974 oilo the 1973 shock, policymakers kept policy loose in response to the oil shock. moreolker in 1980 was must serious about fighting inflation. if i had to guess, the fed would probably follow the 1973 model. to me, yes, the fed would probably have to reconsider starting the easing cycle again. guy: what is the price on gasoline that this becomes a problem for the u.s. consumer? the u.s. consumer is the global economy right now. win: that's exactly right. we are looking

vonnie: i am vonnie quinn in new york.edge fund accusing it of accessing information on a crucial automated trading model. when gsa wasy all attempting to hire one of the security senior traders. here to break it all down is bloomberg's sonali basak. is this the first of what may be all of these programs that may be numerous? sonali: there have been suits like this before but it could become more common as things go along, people want to closely hold their own algorithms. talent would be going all over the place at wall street, and the traders here had been at securities for about 11 years for became an issue. you are right, it is not a one-off issue, necessarily. but it is a big targeted hits. amanda: how much money is at stake here? cost $100 million for them to even develop this model, plus the abc strategy that is being discussed here generate another $50 million annually, apparently, in u.s. and european equities. securities isdel one of the initial traders and they were making markets an option market, gotten big and

vonnie: how much of that demand is mandated?oes that sour the whole green that isuance if some of specifically because of mandates ? well, i think where the true demand comes from is the retail investor, the asset allocator. what are they choosing to do? if they are just investing in a broad index, if they are focusing on an esg or a green fund, then there is a selection. there's an active decision which is driving demand for these assets. i think it is not just about building more demand by increasing supply. i think there's a conscious and societal decision which is being made, and i think this is only going to continue as the country and the world becomes more educated on these topics. vonnie: how do you value these bonds, and other bonds as well? we talk about the complex of bonds in europe, sovereign bonds. is there relative value in europe, for example? peter: one can construct a calculation of the green bond discount. these bonds would actually trade typically a few basis points expensive relative to nongreen bonds on the

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.uy: from london, i am guy johnson. this is "the european close" on bloomberg. annie: adam schiff will lead team of seven managers who will present the impeachment case against president trump and the senate. nancy pelosi announced the managers saying she has great confidence in them. the president was impeached by the house last month on charges of abuse of power and obstruction. moving closer to a brute a president trump over iran. tim king says he has enough republican votes to pass a war powers bill that limits the president's options. several republicans have complained about the administration's changing justifications for killing a top iranian general. michael flynn has changed his mind. he wants to withdraw his guilty plea two weeks before he is sentenced. he was charged with lying to investigators in the russia inquiry. he said that prosecutors acted in bad faith when he cooperated after pleading guilty more than two years ago. global news, 24 hours a day on-air, powered by mor

vonnie: that services data number will tell us more about the consumer. our thanks to both of you, damien sassower, matt boesler. this is bloomberg. ♪ viviana: i'm viviana hurtado . let's get to bloomberg first word news. american citizens are being asked to leave iraq or the u.s. state department after the airstrike in my bag. -- in baghdad. one of iran's powerful generals was killed. qasem soleimani was killed. mike pompeo called on tehran to deescalate tensions in the region. we don't seek war with iran, but at the same time, we will not stand by and watch the irradiance continue to put american lives at risk without responding in a way that disrupts, the fans, the terrors, and creates an opportunity to deescalate the situation. viviana: marco rubio says salamat he was planning a coup in iraq. the federal reserve may drop hints on plans for a repo market . we may also get an idea of what could shift the view that interest rates are on hold all year. through 2020, 13 officials forecasted that rate would be unchanged. er

vonnie: we added $5.9 trillion in value to u.s. stocks, the s&p 500 in fact. >> if i talked to you one year ago after the worse december since the great depression and told you all the headlines we would have in 2019, and i said where would you see the market, i don't think many people would say we would be near 30% up and have several new highs. we are closing out not just a good month, great year, and great decade, and i think there is room to run for this. >> the pboc has slashed the required cash reserve ratios for commercial lenders by 50 basis points, unleashing $115 billion into the financial system. does this give us some signals about the outlook for stimulus from the pboc in 2020? >> the key here is how they view the macro prudential risks. they are terrified of the next lehman crisis, and plainly with the amount of credit that has been extended into the chinese economy, it makes sense to worry about that. what we saw last year was initially a belief that the pboc was stimulating and the realization they were just allowin

vonnie: some breaking news now on johnson & johnson. a u.s.ms that baby powder boosts the risk of ovarian cancer. drew: one of the big issues with these cases, which essentially claimed that talc powder produced by j&j, their claims that this was tainted with asbestos gave women types of cancer, has been attempting to assess what is the scientific evidence for whether or not this happens? and that's really, really hard to do. you try to confirm that sort of thing, you need a massive study that can overlook years and years. it is always a problem with these type of product claims that come in. this study that has come out, published in a very reputable medical journal, "jama," sponsored by the u.s. government, federal and private researchers. it basically says we looked at 250,000 women, found very small differences between the two groups, those that use these baby powder products and those that did not. it's essentially saying there is not a strong link here. this is probably excellent news for j&j in terms of weighing the evidence considered,