Speaker 1: Global business news twenty four hours a day at Bloomberg
Speaker 1: dot com, the Radio plus Mobile Act and on your radio,
Speaker 1: this is a Bloomberg Business Flash and I'm Karin Moscown.
Speaker 1: There's updates brought to you by Eisner Emperor. When entrepreneurs
Speaker 1: face challenges like choosing a business structure or access to capital,
Speaker 1: they call the accountants and advisors at Eisner Emper connect
Speaker 1: with them Eisner Emper dot com slash tech. European stocks
Speaker 1: were lower for much of the morning, while German government
Speaker 1: bonds rise with gold and a yen after explosions rocked
Speaker 1: of Russell's airport departure hall and a downtown subway station.
Speaker 1: Right now, the decks in Germany, though is little changed,
Speaker 1: are racing its declines. CAC in Paris and f T
Speaker 1: one hundred are both down about three tenths per cent.
Speaker 1: They're well off their lows in the morning as well.
Speaker 1: Futures are lower. SNP EVENY futures down six points, Dow
Speaker 1: e Many futures down thirty two, and nasdack emny futures
Speaker 1: down thirteen ten. Your treasury up three thirty seconds, The
Speaker 1: yeld one point nine zero percent, NIMEX s crude oil
Speaker 1: down half per cent or twenty cents to forty barrel.
Speaker 1: Comex gold up seven ten percent or eight dollars twenty
Speaker 1: cents to twelve fifty two forty anounced. That's a Bloomberg
Speaker 1: business flash, Tom and Mike Karn, Thanks so much, Michael
Speaker 1: McKee before we go on to international relations and market impacts,
Speaker 1: and that there's always certainly headlines that get your attention
Speaker 1: in a tragedy. Belgian Red Cross appeals to oh and
Speaker 1: aid blood donors and Wallonia, which is one half of
Speaker 1: Belgium not in the cultural certainly not a surprise. The
Speaker 1: latest from the subway system, the Belgian subway system which
Speaker 1: is by the way completely shut down, all transit in
Speaker 1: bustles is and Eurostar shutdown fifteen victims, fifty five wounded
Speaker 1: according to the officials. There. Biggest reaction we're getting in
Speaker 1: the markets is in the currency markets. As we mentioned earlier,
Speaker 1: the euro at one twelve oh nine uh. The swissy
Speaker 1: at the moment is also trading higher as the great
Speaker 1: the British pound falls to one two seventy four. Japanese
Speaker 1: yen is gaining one eleven. The haven trade. Jane Foley
Speaker 1: is a senior currency strategist at Rubble Bank in London
Speaker 1: and Jane this is really a reflection not just of
Speaker 1: Haven demand, but you can almost see the political aspect
Speaker 1: to this happening. You certainly can, because I mean this
Speaker 1: is two twofold. Rely, I'm sitting in London. We have
Speaker 1: the referendum and the EU coming up, so it does
Speaker 1: it does figure into that debate, but I think more widely,
Speaker 1: of course in Europe, there has been concerns about immigration,
Speaker 1: there's been concerns about terrorism. That the two are separate,
Speaker 1: that they are at LinkedIn in some way, and already
Speaker 1: we have some compromises in the Shenang agreement and Shangan
Speaker 1: is very very important for the EU. What it means
Speaker 1: is that there's there's visa free travel for the different
Speaker 1: citizens of your round the region, and we've already seen
Speaker 1: some of that breaking down as a function of the
Speaker 1: immigration crisis, and these sorts of terror attacks do put
Speaker 1: fear into people's mind. What you probably will also have
Speaker 1: as as a movement towards, of course, the far right.
Speaker 1: We've seen that really since two thousand and fourteen, particular
Speaker 1: countries like France, far right people have just frightened of
Speaker 1: terrorism and perhaps confusing that with with with with immigration too.
Speaker 1: So that is an aspect in the UK at the
Speaker 1: UK courses an island, there's an island mentality that a
Speaker 1: lot of people already isolated isolationist in that form. But
Speaker 1: again this could it could potentially bolster that they leaves
Speaker 1: campaign ahead of the June referendum on EU membership, and
Speaker 1: that is why Sterling really had fallen hard this morning.
Speaker 1: Jane with him the years you have had at Rabble Bank,
Speaker 1: coming from a set of agricultural banks over a hundred
Speaker 1: years ago into a leading Dutch bank, and obviously, Jane,
Speaker 1: with the international exposure that you give us every day
Speaker 1: from London, how do you see business decision making will
Speaker 1: be after the sequence of these attacks and moving from
Speaker 1: Paris of November now on Belgium of this March, business
Speaker 1: decisions get made. How do you perceive where you use
Speaker 1: it they will be made? Well again, it makes things
Speaker 1: more difficult on a day to day basis. If you
Speaker 1: have Sengan under pressure, then trucks just take longer to
Speaker 1: get through borders. That increased costs. It can be detrimental
Speaker 1: to growth in terms of investment, which is probably more
Speaker 1: the question that you're asking again, it can have an
Speaker 1: effect um volatility markets we know that can have a
Speaker 1: detrimental impact on investment. These sorts of events have the
Speaker 1: same effect create create volatility, create uncertainty, can hinder investment,
Speaker 1: and that could cause can hinder growth. And this all
Speaker 1: at the time where the Eurozone economy has been really
Speaker 1: very slow to recover and we need growth desperately. So
Speaker 1: from a clearly at processor reactions to an events that
Speaker 1: this is really the human aspect and in the pain.
Speaker 1: But it does of course have a quite a significant
Speaker 1: secondary impact on growth potential. We have very poor economic
Speaker 1: data in Japan today, the March p m IE one,
Speaker 1: the Lowesson's February of two thousand thirteen. But the money
Speaker 1: is flowing into Japan, into the Japanese yen. Is is
Speaker 1: that likely to continue? Well? Again, it really depends on
Speaker 1: what the fallout of these attacks are, whether or not
Speaker 1: that your remains on high alert, has to remain on
Speaker 1: high alert, and of course on other events, other geo
Speaker 1: political and growth events around the world. But I think
Speaker 1: what we've seen this YERI is the end is in
Speaker 1: demand and and people are very reluctant to give up
Speaker 1: the end. I mean, over the last few weeks, market
Speaker 1: politility has actually been dropping back. But even though we've
Speaker 1: seen a better tone of some of the commodity currencies
Speaker 1: on the back of that, people are still being very
Speaker 1: reluctant to relinquish their hold on the end. And that
Speaker 1: suggests that there is an underlying fear still in the market,
Speaker 1: perhaps about growth, but now perhaps about your political events.
Speaker 1: Where do your phenomenal g d P in Europe? I mean,
Speaker 1: are we sub three? Now? Is that possible? Quite? Quite possibly.
Speaker 1: There has been a better data really this morning from
Speaker 1: from Germany, which is a little bit encouraging, but we
Speaker 1: still see very slow growth. Now. Of course this cannot
Speaker 1: all be pinned on terrorism um and is related to that.
Speaker 1: Of course, a large part of this is is is
Speaker 1: structural Beneath the structural forms, more structural measures low productivity,
Speaker 1: which is called something in the UK and in the
Speaker 1: US to demographics. Various reasons that we've we've got slow growth,
Speaker 1: but certainly the breakdown or the or the question marks
Speaker 1: favor free movement and terrorism or certainly go the wrong
Speaker 1: way as far as bolts in the economy is concerns
Speaker 1: and James save travels on particularly to all of your
Speaker 1: Rebble Bank personnel and Antwerp and in Russells as well,
Speaker 1: and fully is with robo Bank this morning. On the
Speaker 1: financial reactions, Mike, I would say it's we've got a
Speaker 1: dampening the last few days on news and just further
Speaker 1: damp in this morning. We Mike and I have in
Speaker 1: front of his folks the Bloomberg terminal and you can
Speaker 1: see from the pulse of the screen Mic, the red
Speaker 1: and the green what's moving and there's just not much
Speaker 1: pulse right now. Surprisingly contained reaction compared to some of
Speaker 1: the terrorist attacks we've seen before. But as Tony Dwyer
Speaker 1: from Chanically put it on Bloomberg Surveillance earlier today, unfortunately
Speaker 1: markets getting a little bit used to this kind of action.
Speaker 1: I would say that is true. What is also true
Speaker 1: is we've got any number of guests coming up, including
Speaker 1: Hoder's Core on the international relations after terrorist attacks in Brussels.
Speaker 1: Bloomberg Surveillance is wrought to you by Mercedes Bens. This month,
Speaker 1: hear Mercedes Ben's Tri State dealers welcome Spring with limited
Speaker 1: time offers on select models like the Sporty c L
Speaker 1: A and versaon l G L a each engineered in
Speaker 1: price to move, and the USA dot Com