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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio plus mobile, last and on your radio,

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Speaker 1: this is a Bloomberg Business Flash and I'm Camra a Moscow.

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Speaker 1: This update's brought to you. Buy Sector Spider e t F.

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Speaker 1: So why buy a single stock when you can invest

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Speaker 1: in the entire sector? Visits sector spd r s dot

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Speaker 1: com are called six six sector et F and stocks

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Speaker 1: this morning are moving lower, sliding further from a six

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Speaker 1: week high reached on Monday as following oil prices continue

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Speaker 1: to pray on investors global growth concerns to check the

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Speaker 1: markets every fifteen minutes throughout the trading day. On Bloomberg

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Speaker 1: s n P five hundred down one point three percent

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Speaker 1: or twenty four points to eighteen ninety six. Dow Jones

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Speaker 1: Industrial Average down one point three percent or two hundred

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Speaker 1: twelve points to sixteen thousand, two hundred nineteen. Then as

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Speaker 1: backed down one and a half percent or sixty seven points,

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Speaker 1: Toto thirty six ten. Your treasury up eighteen thirty seconds,

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Speaker 1: the yield one point six six percent yield on the

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Speaker 1: two year point seven zero percent. Now I make screwed

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Speaker 1: oil down three and a half percent or a dollar

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Speaker 1: fourteen to thirty dollars seventy three cents of barrel comax

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Speaker 1: gold up two point one percent, or twenty five dollars

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Speaker 1: fifty cents to twelve ten announced the euro a dollar

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Speaker 1: ten oh to the N one eleven point five one.

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Speaker 1: Treasury Secretary Jack Lou saying the US wants a more

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Speaker 1: serious commitment from other G twenty countries to use monetary policy,

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Speaker 1: fiscal measures, and structural reforms to stoke demand. Lou made

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Speaker 1: the comments ahead of a meeting of a group of

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Speaker 1: twenty finance chiefs this week. Fiscal policy can't solve all

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Speaker 1: the problems. There are structural issues that need to be addressed.

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Speaker 1: Uh some in some countries, it's regulatory some countries as

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Speaker 1: labor markets. It's some countries it's financial reform. The structural

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Speaker 1: issues need to be addressed. But fiscal and monetary policy

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Speaker 1: are important tools. When used together, they're powerful, and that's

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Speaker 1: the message we bring. Louis heard earlier on Bloomberg Radio

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Speaker 1: and television, and Lows is lower down three and a

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Speaker 1: quarter per cent after posting fourth quarter results that trailed

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Speaker 1: home depots, signaling that the retailer isn't benefiting as much

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Speaker 1: from the US housing markets gains as it's a larger rival.

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Speaker 1: That's a Bloomberg business flash, Tom and Mike Karen thanks

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Speaker 1: so much negative to a teen is Karen mentioned in

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Speaker 1: the Dalta Vicks twenty two point five A quickly equity

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Speaker 1: markets This warning odd and foreign exchange out across all markets,

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Speaker 1: David Wilson, is your world odd? It has its moments.

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Speaker 1: I mean, Karen Moscot just mentioned lows in that stockdown

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Speaker 1: three point two percent after their fiscal fourth quarter earnings

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Speaker 1: only matched analysts average estimate and Bloomberg survey, while rival

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Speaker 1: Home Depot came out ahead. We also got numbers out

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Speaker 1: of Target and t j X, the company that owns

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Speaker 1: tj Max, Marshalls and home Goods, and really sort of

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Speaker 1: a mixed bag for both, and it's reflected in their shares.

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Speaker 1: Target down just three tenths of a percent at the moment.

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Speaker 1: UH last quarters profit trailed the average projection because they

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Speaker 1: were live more on price cuts and promotions. On the

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Speaker 1: other hand, UH, there are earning squerecast for this fiscal

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Speaker 1: Your bid beat estimates with with t j X really

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Speaker 1: little changed at this point. Their fiscal year earnings forecast

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Speaker 1: was lower than analysts expected fourth quarter, though of last

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Speaker 1: year earnings and sales coming out ahead. Ford Motor down

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Speaker 1: six point four percent. Another noteworthy move. You ought to

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Speaker 1: make our cut the equipment cut, the equivalent of self

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Speaker 1: from hold of credit Swiss. The firm sighting over the

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Speaker 1: optimistic sales projections, excessive inventories and cost increases. And you're

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Speaker 1: seeing a couple of other auto related to clients as well.

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Speaker 1: One of them in Mobile I, this is a company

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Speaker 1: that makes software for self driving cars, down about eleven.

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Speaker 1: They gave a profit forecast for this year that failed

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Speaker 1: to meet estimates. And Avis Budget Group, the car rental company,

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Speaker 1: down twenty percent. Their earnings forecast for this year failed

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Speaker 1: to meet estimates. They talked about a stronger dollar and

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Speaker 1: spending to improve customer service. David Wilson, thank you so much.

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Speaker 1: Lee Hartman with us He is with Bank of Tokyo Mitsui. Lee,

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Speaker 1: did you get out from under the desk early this morning?

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Speaker 1: How do you interpret a drop like that in cable? Yeah? Uh.

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Speaker 1: We're in very volatile times across all um foreign exchange

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Speaker 1: markets right now, in particular, the pound is very much

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Speaker 1: in the crossfire for the market. The market is moving

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Speaker 1: to pricing a higher risk premium ahead of the referendum

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Speaker 1: in jew Is there a one way that I mean

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Speaker 1: tell me about the speculation? Yeah, I think very much.

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Speaker 1: Though the market has increasingly a one way view on

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Speaker 1: Sterling ahead of the referendum, with the risk seeing very

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Speaker 1: much skewed to the downside. We've already had obviously a

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Speaker 1: significant weakening of the pound already this year. I think

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Speaker 1: cables down by now almost ten big figures since the

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Speaker 1: end of the last year. But if we look at

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Speaker 1: the pound on a on a trade weighted basis, it's

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Speaker 1: still around higher than than the lows we saw during

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Speaker 1: the global financial crisis, and also if you go back

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Speaker 1: even further than that too after the UK's exit for

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Speaker 1: the from the e r M in the early was

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Speaker 1: also about lower as well on that occasion. So we

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Speaker 1: still think there's the scope for further downside if if

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Speaker 1: a Braxit was to materialize. That that's not our base

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Speaker 1: case scenario, but I think the market will become increasingly

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Speaker 1: worried of that scenario as we moved closer to the referendum.

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Speaker 1: Have we seen the big move? Are we going to

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Speaker 1: see a lot more volatility between now in June. Is

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Speaker 1: are we praced into that point or is there still downside? Well, yeah,

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Speaker 1: I think there's certainly scope for the market to to

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Speaker 1: price in uh an even larger Braxit premium ahead of

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Speaker 1: the referendum, and like you said as well, I do

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Speaker 1: think as well we will see an increase in volatility

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Speaker 1: as well for the pound obviously increasingly the market will

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Speaker 1: be driven by a risk. Will be obviously closely following

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Speaker 1: the incoming opinion polls to see if there's any material

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Speaker 1: shifts in public thinking ahead of the referendum. And then

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Speaker 1: also this was the other risks such as obviously the

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Speaker 1: migration crisis in Europe, and then also perhaps even smaller

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Speaker 1: risk of pats would be potential for another flare up

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Speaker 1: in grease. Those kind of things obviously not anticipated, but

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Speaker 1: you could obviously have a negative impact as well on

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Speaker 1: on the breakfit risk. When we start talking big figure

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Speaker 1: moves like on seven those one point moves, folks, is

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Speaker 1: a big figure? Are big figure moves an opportunity? Are

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Speaker 1: they reason to put on hedges to protect yourself? Which

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Speaker 1: is well, I think certain lead would be looking to

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Speaker 1: to protect yourself against the risk of a further shop

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Speaker 1: the cline in in the pound. I think certainly the

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Speaker 1: risks are a secuted towards further weakness as we move

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Speaker 1: forward um in terms of the volatility um, certainly it's

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Speaker 1: becoming the pace of the pounds decline is becoming more rapid.

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Speaker 1: But like I said earlier, we have seen periods where

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Speaker 1: the pounds has even declined even more rapidly, like during

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Speaker 1: the cl financial crisis period also after the exit from

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Speaker 1: the r M. So yes, historically becoming more extreme in

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Speaker 1: terms of altilty, but the potentials if if Brexit was

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Speaker 1: to occur, that that you could see an even larger

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Speaker 1: spike in volatility. And I think the risk of Brexit,

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Speaker 1: although it's it's it's we think it's it's it's around,

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Speaker 1: that's still a fairly material material risk of the market

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Speaker 1: will will be well aware of not to go one

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Speaker 1: of the sophisticated bands. But how far apart are the

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Speaker 1: dynamics of sterling dollar versus euro sterling. Well, our of

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Speaker 1: you has been that the Brexit risk would would vote

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Speaker 1: more of a downside risk for the pound against the dollar.

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Speaker 1: I think that's that's the cleaner cross to to play

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Speaker 1: the Brexit risk, because ultimately, if there was to be

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Speaker 1: a Brexit event that would also have some potential negative

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Speaker 1: spill over impact on the rest of Europe as well,

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Speaker 1: which I could materialize in some offsetting a euro weakness.

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Speaker 1: I still think you'd see your sterling likely go up

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Speaker 1: towards the kind of mid mid eighties, but I would

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Speaker 1: effect that pound weakness would be more dampened against against

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Speaker 1: the Euro than than say, against the dollar. Lee har

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Speaker 1: been thinking so much banking Tokyo Minsubishi at this warning,

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Speaker 1: make me that's a real market deterioration Apple, just as

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Speaker 1: one example, up against support, going back to late January

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Speaker 1: ninety three dollars sixty nine cents sort of two is

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Speaker 1: that point earlier? UH, the markets are open, but on

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Speaker 1: a futures basis, SP was negative twenty four right now,

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Speaker 1: which is not what we saw at the opening. There

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Speaker 1: there's a weight to the market here at UH. We

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Speaker 1: have seen this correlation with energy prices for quite some time,

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Speaker 1: and I'm watching oil today down but not breaking, not

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Speaker 1: even close to resistance at this point. So you gotta wonder, um,

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Speaker 1: you know what's driving there's a fear that's developed in

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Speaker 1: the last hours. It doesn't seem to be related to

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Speaker 1: what we've seen in the past. Sterling has rebounded off

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Speaker 1: an ugly, ugly morning. Again that's a glimmer vote, but

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Speaker 1: I would note yields her in uh decisively. The ten

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Speaker 1: year German again making a move down to recent lows.

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Speaker 1: The two year German not quite there yet, but in

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Speaker 1: the US the ten yield is in seven big figures,

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Speaker 1: one point six six percent. That begins to get my attention.

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Speaker 1: Interesting also statistic here I'm looking at. We had a

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Speaker 1: little bit of a rally going into this week, and

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Speaker 1: volume moved up in general during that period. But now

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Speaker 1: we're seeing this decline on lower volume each day. So

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Speaker 1: there doesn't seem to be a lot of conviction um

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Speaker 1: and just gets maybe to what somebody told us not

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Speaker 1: long ago. But there are no that we're having a

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Speaker 1: lack of buyers. I well, I strongly agree with that

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Speaker 1: that the asymmetric nature going up and going down can

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Speaker 1: always be interesting. Where it's not about selling overtly, that

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Speaker 1: maybe just about no interest at hand by buyers. Whatever

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Speaker 1: it is, negative to twenty three on the doubt, We'll

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Speaker 1: give you extra data checks across all of Bloomberg Radio

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Speaker 1: through the day. David Wilson important participants through our day

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Speaker 1: on individual equities as well. We are produced in the

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Speaker 1: York by y U n Our Global technical director Ken Felio.

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Speaker 1: This is Bloomberg's surveillance. Again, the market a negative to

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Speaker 1: twenty four