Speaker 1: Broadcasting live to New York, Bloomberg even to Washington, d C,
Speaker 1: Bloomberg to Boston, Bloomberg dwell Monders to San Francisco, Bloomberg
Speaker 1: to the country, US Exam Channel one ninety and around
Speaker 1: the globe the Bloomberg Radio plus Appen Bloomberg dot Com.
Speaker 1: This is Bloomberg Surveillance. They're running Get His seven thirty
Speaker 1: on Wall Street and Michael McKee along with Tom Keane.
Speaker 1: The Brussels bombings the news of the day. There are
Speaker 1: some corporate stories that will affect trading when US markets open.
Speaker 1: The US government saying it may not need Apple's help
Speaker 1: to unlock a terrorist iPhone accord. Hearing set today over
Speaker 1: a judge's order to require Apple to help the FBI
Speaker 1: bypass the phone security has been canceled. Former Intel chairman
Speaker 1: Andy Grove has died at the age of seventy nine.
Speaker 1: No cause given for his death. Deutsche Bank is declining
Speaker 1: after Moody's Investor Service signaled it may cut the German
Speaker 1: lenders credit radi AMID concerned it will struggle to restructure
Speaker 1: its businesses. But as we know, the main focus today
Speaker 1: is on the Brussels bombings. Let's bring in. Michael Byr
Speaker 1: Now with the latest details, Mike, Mike, thank you very much.
Speaker 1: Airport and subway blasts and Brussels have prompted a city
Speaker 1: wide lockdown. Belgian Minister Maggie to Block says at least
Speaker 1: eleven people were killed. You know what officials say our
Speaker 1: terror attacks. Bloomberg's Jones Hayden has more from Brussels. Well,
Speaker 1: at the at the airport, they're treating it as a
Speaker 1: as a suicide attack. I'm not sure if that has
Speaker 1: been confirmed, but that's what they what the prosecutor has said.
Speaker 1: They're also looking to see. You know, it just seems
Speaker 1: to be a coordinated attack, and this is one of
Speaker 1: the things that this UM, this network that they've been investigating,
Speaker 1: and they they arrested the main guy on Friday. In
Speaker 1: this network, one of their things is to have the
Speaker 1: spread out attacks. So it certainly seems like the same
Speaker 1: kind of attack that we had in Paris. Back in November,
Speaker 1: Cuba's national baseball team faces the Tampa Bay Rays and
Speaker 1: event of this afternoon, the game comes as President Obama
Speaker 1: is in Cuba for a third day. The President will
Speaker 1: watch the game and we'll meet with the dissidents political
Speaker 1: contests will be held in Arizona and Utah today for
Speaker 1: Democrats and Republicans. Idaho Democrats will also hold caucuses today.
Speaker 1: Global News twenty four hours a day, powered by our
Speaker 1: two hundred journalists and more than one d fifty news
Speaker 1: bureaus from around the world. Not Michael Barr Mike, thank you, Michael.
Speaker 1: Time now for the Katina Auto Group. Bloomberg NBC Sports
Speaker 1: Update with John stash Houre Mike. The Rangers went almost
Speaker 1: three months without a two game losing streak, and they
Speaker 1: had two of them in a week much needed win
Speaker 1: at the garden Over Division, leading Florida four to Victor.
Speaker 1: Stallberg scored first period, Matt Szucarello and the second, Rick
Speaker 1: Nash and the third, and then Tanner Glass and empty
Speaker 1: n and the waiting second. So in the Metro Division,
Speaker 1: Rangers sit second, two points ahead of red hot Pittsburgh.
Speaker 1: The Islanders, now fourth, are only three up on Philadelphia.
Speaker 1: The Flyers scored twice in the second and third periods
Speaker 1: they beat the slumping Aisles four to one in Brooklyn.
Speaker 1: A record breaking season for Mona wins a national attention
Speaker 1: With the antics of their bench players, many felt they
Speaker 1: deserve to go to the n C Double A Tournament.
Speaker 1: Their season ended losing to George Washington second round of
Speaker 1: the n i p IF the NFL owners meetings in Florida,
Speaker 1: Whitty Johnson tried to deliver a message the free agent
Speaker 1: quarterback Ryan Fitzpatrick with the words come back to the Jets.
Speaker 1: Their offer said to be around seven million dollars a year,
Speaker 1: with Fitzpatrick coming off his best season looking for considerably more.
Speaker 1: With the Bloomberg NBC Sports Something, I'm John Daniel, Thank
Speaker 1: you John. We are two hours away from the US Open.
Speaker 1: The biggest decliners so far in premarket trading travel related.
Speaker 1: American Airlines is down by three point four percent, Delta
Speaker 1: Airlines off by two point seven percent, Carnival down almost
Speaker 1: three percent on the day. Starward Hotels hasn't open for
Speaker 1: trading yet, but they say their hotels in the Brussels
Speaker 1: area are on lockdown. We can imagine that will have
Speaker 1: an impact on their trade today. In Europe, Air France
Speaker 1: off by four point six percent, Left Tons and down
Speaker 1: by one point seven per cent. The Belgian in the
Speaker 1: stock market is still open. The Belgian twenty off by
Speaker 1: two tenths of a per cent. You're listening, of course
Speaker 1: to Bloomberg Radio worldwide. This is Bloomberg Saveillance. I'm Michael
Speaker 1: McKeen along with Tom Keane US futures reacting to the
Speaker 1: terror attacks in Belgium. Right now, SMP features are off
Speaker 1: by seven points, three tenths of eight percent down features
Speaker 1: down thirty nine. That's a two tents decline. It's a
Speaker 1: four tents drop. For Nasdaq one e mening futures, they're
Speaker 1: off seventeen points. The stock six hundred PAN European Index
Speaker 1: down two points right now, six tenths of a percent.
Speaker 1: The Bloomberg n j I T STEM Report brought to
Speaker 1: you by the New Jersey Institute of Technology, partnering with
Speaker 1: government and industry to apply the university's world class research
Speaker 1: assets to innovate and spur economic growth. Learn more at
Speaker 1: heg I T dot edu. Here's Bob Move Michael, good morning,
Speaker 1: and here's what's making news in science, technolo, lergy, engineering
Speaker 1: and math. A heart lesson on the limits of technology
Speaker 1: out this morning. From the terror attacks in Brussels. People
Speaker 1: in the Belgian capital are being urged to resort to
Speaker 1: texting and internet messaging rather than calls because mobile networks
Speaker 1: are overloaded. Phone carrier ap Proximus says the company's network
Speaker 1: is operational, while encouraging the use of text messages for
Speaker 1: communicating if calls don't get through. Other wireless carriers, including
Speaker 1: Mobile Star, also asking customers to use WiFi networks or
Speaker 1: text messaging. That brings us to Facebook, which, after some delay,
Speaker 1: this morning, has activated its safety check service. The tool
Speaker 1: works by sending a notification to all users in the
Speaker 1: area affected by a crisis, which Facebook determines either based
Speaker 1: on the city listed in a person's profile, the location
Speaker 1: of their Internet connection, or from the location of their
Speaker 1: mobile phone. If the user has allowed Facebook to access GPS,
Speaker 1: asking if the user is safe. If the person says yes,
Speaker 1: a status update saying so is automatically generated for that user.
Speaker 1: A person's friend can also check them in as safe.
Speaker 1: And that's this morning's Bloomberg and j I t Stem report.
Speaker 1: Bob Boman, thank you very much the latest figures on
Speaker 1: casualties that we have from Brussels. According to UH minister
Speaker 1: in the Belgian government, eleven people killed at the Brussels airport,
Speaker 1: fifteen people killed on the subway there, so twenty total.
Speaker 1: All this remains unofficial, but those are the latest numbers
Speaker 1: from the government there. Francis President Francois Oland is speaking
Speaker 1: from his office live on television now saying that terrorists
Speaker 1: struck Brussels, but it was Europe that was targeted and
Speaker 1: that all of Europe must take part in the terrorism fight,
Speaker 1: all of Europe certainly being affected. In terms of markets.
Speaker 1: Simon Ballard is a credit strategist with Bloomberg News in London,
Speaker 1: and Simon and there was an initial sharp reaction to
Speaker 1: what happened in credit markets. Yeah, good morning, Michael Um. Yeah,
Speaker 1: obviously we had a sharp a shop reaction risk aversion. First,
Speaker 1: we had equities equities into the into the red um
Speaker 1: and corporate bond spreads marketly wider, particularly through the synthetic indexes,
Speaker 1: which are more liquid of course than the than the
Speaker 1: cash bonds we hit we hit into day wide. We've
Speaker 1: come back a little bit from those, but we're still
Speaker 1: feeling surry, fragile cash bonds holding a little bit more
Speaker 1: in actually the the investment grade spaces is net tieder
Speaker 1: here in Europe this morning, still getting some support from
Speaker 1: the prospect of that ECB corporate bond purchased program kicking
Speaker 1: in by the end of the second quarter, but high
Speaker 1: yield spreads marginally wider um and on the on this
Speaker 1: eye tracks indices, then yes, we're still six eight, six
Speaker 1: or seven basis points wider on on crossover with a
Speaker 1: primary markets fairly well stymy today other than from a
Speaker 1: couple of very sort of low risk issues that are
Speaker 1: still attempting to tap the market. Yeah, this would be
Speaker 1: a day when people are risk averse, and I would
Speaker 1: imagine that trading wouldn't be wouldn't be huge. No, I
Speaker 1: think the volumes will will certainly be muted. Easiest way
Speaker 1: to trade uncertainty and listeners is to is to sit
Speaker 1: on your hands and keep keep your powder dry. Um.
Speaker 1: And of course we're going into the holiday weekend here
Speaker 1: and over there in the United States, so we're already
Speaker 1: expecting liquidity to to be on the decline as the
Speaker 1: as the week progress, and I think this will just
Speaker 1: expedite that that move towards sort of a less liquid
Speaker 1: and less less volumeous level of trading. Should I say
Speaker 1: we're seeing the biggest impact in equity markets in the
Speaker 1: travel and leisure shares. Are we seeing the same in
Speaker 1: the credit markets? Yeah? I mean generally, credit, as I say,
Speaker 1: encapsulates all of that. The travel sector is being hit most. Um,
Speaker 1: we don't go down to isn't that that much liquidity
Speaker 1: within the travel sector per se within credit and corporate
Speaker 1: bond space itself. But if you would assume that that's
Speaker 1: probably towards the lower end of the credit spectrum. If
Speaker 1: you look at high yield eye tracks indusicries at seven
Speaker 1: basis points wider versus one and a half basis points
Speaker 1: wider in investment grade UM, it shows that the back
Speaker 1: end of the quality curve is under performing. This morning,
Speaker 1: the very nice and notably now do we have any
Speaker 1: indication of or any good guess of how this plays
Speaker 1: out in credit markets in coming days? And the reason
Speaker 1: I asked us, of course, as we've been talking this morning,
Speaker 1: is a political component to all this, the idea of Shingen,
Speaker 1: the free movement of people across European borders being shut down,
Speaker 1: and of course the Brexit whole question. And there are
Speaker 1: so many moving parts to sort of portfolio management and
Speaker 1: an investment strategy as it as it stands at the moment,
Speaker 1: this is just sort of one and new part of
Speaker 1: this UM. I think if we if we've got any
Speaker 1: sort of further spread widening, any risk sell off on
Speaker 1: as horrible it was got for a bit it happens,
Speaker 1: you know, any further explosions or negative news headlines. Um.
Speaker 1: Then over the medium term that may still be seen
Speaker 1: as a selected by opportunity by some given that the
Speaker 1: c B, as I said earlier, is going to be
Speaker 1: a marginal bar of corporate bonds perhaps by the end
Speaker 1: of the second quarter, which will give a new leg
Speaker 1: to a potential spread tightening and a technical bid to
Speaker 1: to the market. But yeah, you know, we're getting very
Speaker 1: much into sort of that protection studiosyncratic type approach now
Speaker 1: as we as we move through the geopolitical risk and
Speaker 1: events within Europe, as we get into the UK EU
Speaker 1: referendum debate and volatility and nervousness within Europe, sorry sterling
Speaker 1: credit um. And of course there we've got the you know,
Speaker 1: the headlines coming from the U S elections as well,
Speaker 1: and protectionist headlines that you know Mr Trump is managing
Speaker 1: to put out on the back of the the the
Speaker 1: Brussels events today, et cetera. So you know, loads of
Speaker 1: moving parts and you know, everything for for an importfully
Speaker 1: managed to keep his eye on. But bottom line is
Speaker 1: you know, in defensive In a defensive stance such as this,
Speaker 1: it's very much key to focus on fundamentals and bottom
Speaker 1: up analysis rather than just taking a broad brush view
Speaker 1: to know spread winding as a bi opportunity. Simon Ballat
Speaker 1: with Bloomberg News credit analyst in our London bureau, thank
Speaker 1: you very much for joining us this morning. German two
Speaker 1: year note yelled is down, but only marginally negative forty
Speaker 1: eight basis points. Ten youre note yelled in Belgium sixty
Speaker 1: one basis points. This is Bloomberg. Bloomberg News was a
Speaker 1: surveillance brought to you by Valvo Cars White Plains. Visit
Speaker 1: Volvo Cars White Plains dot com