tv Bloomberg Markets European Open Bloomberg December 13, 2019 2:30am-4:00am EST
deliver? christopher: i think the largest omission from the speech, which may be quite bullish for markets , was any mention of what happens after brexit is done in formal sense that the u.k. leave the european union on the 31st of january. no particular mention of the standstill transition, which will be so crucial. that omission i would suggest may be significant, that flexibility on that will be extremely important for reducing uncertainties, and maintaining confidence. matt: i just want to point out here, in germany, we have this result across the front of the most important newspapers. this is one newspaper. most of them show johnson with a dog for some reason. this looks quite churchh
illian. has joke at the end it reminded me of churchhill as well. do you expect boris johnson to try to emulate his idol? will he try to boil down the middle now that he has such a big church and keep all of these voters with the conservatives for longer? christopher: well, i thought that was a most interesting part of his speech. in my opinion, perhaps the most effective was his candid and disarming, even charming admission that a lot of the voters who put him back into power with a large majority have him on probation. a very nice parallel with his election as the mayor of london when a lot of traditional labour voters supported him and they have now supported a conservative party. that, i think is -- notice also
in the rhetoric, one nation conservatives. he remindednation, himself that that is the formula. what does that remind you of? , not labour,labour but new labour. that was the slogan of tony blair. clearly looking to put a very personal stamp, which arguably could be churchhill. i mentioned tony blair. there could be many other parallels as well. one other item i would highlight from his remarks was his mention of one united kingdom leaving the european union. well, the election shows that is not quite true. the england voted overwhelmingly for the conservatives. one nation conservatives, that was their slogan. the nation in question is
england and to some considerable extent also wails. england is the one nation. scottish nation has the diametrically opposite view and election result. francine: given all the money the tories have pledged also during the campaign, how different is this tory party from the previous one? or especially from the james cameron one? this is very anti-austerity party. christopher: yes, i think that the conservative party has realized that austerity is not going to be a vote winner. their previous fiscal plans to arrive at a balanced budget by 2022 were formally abandoned in the camping. if memory serves, they now now have a target of a 3.3% gdp deficit. clearly in the atmosphere of confidence, i think that the u.k. gilt market will absorb that issuance without excessive
difficulty, and there will not be tax cuts, according to the conservative manifesto, with the exception of perhaps some cuts on national insurance for lower paid employees. there will be debt-financed spending increases. matt: christopher, thank you so much for joining us. really appreciate your time on a busy day. christopher granville, managing director of global political research at ts lombard. some yelling in the background. i am not sure if that was stopped brexit steve. it is interesting you do not hear as much anymore as you previously did. maybe that is another thing this conservative victory has brought us. . let's get to the market view now. joining us from geneva is fiona frick, ceo of unigestion. what do you think about the election results? does this reduce uncertainty to
such an extent that investors are going to feel comfortable purchasing risk assets in the u.k.? investors assets -- investors have felt quite comfortable already purchasing risky assets. the victory and the majority that boris johnson has now on top of the negotiation between china and the u.s., which is getting in a better position, i think, yes, there is a bit of optimism that will be in the markets. the only problem is that there is also valuations which are quite high, and the fact that all the good news -- we are a bit worried about valuation. now some of the uncertainty around the hard brexit is out, we see a plan. obviously, we have to keep in mind that valuations are quite high. matt: what about the -- you
know, yesterday we saw equity markets soaring already before in.polls came a different uncertainty was stamped out with donald trump's tweets and the bloomberg scoop that the president has signed onto to a phase one deal with china. how big is that for ruling out uncertainty? or do you still have serious concerns about the trade war? fiona: i think it is a first step. some of the questions about the trade war have not been defined between what happens with technology, etc. agricultural goods, intellectual property. there can be more risk next year and even with the u.s. election coming. i think it is good news that we have found a first deal. andstory does not end there
2020 could bring some surprises. atncine: we are just looking prime minister boris johnson arriving at downing street with the very christmas tree, going in with his partner. fiona, when we look at the trade deal you were just discussing with matt miller, the fact that we seem to have more of an idea of what happens with brexit, is 2020 suddenly a little bit more predictable than we thought it would be two weeks ago? fiona: yes, it is, clearly. i think also the fact that central banks came today and said the situation in terms of rates will be stable, as it was set for the u.s., europe, as it was said for switzerland. it gives visibility on central banks. the central bank risk is low. the political risk as of now is low.
i think next year, a lot will be about the fundamentals, the macro risk. we see the situation stabilizing in the u.s. and europe, which is also what has been said about central bank heads. for the next six months, we see positive growth. less uncertainty on the political agenda. valuations are high, so perhaps one bad surprise could have an effect which is more than expected in the markets. fiona, because it is prime minister boris johnson and because there is a sense of continuity, do think there will be a bank governor appointed quickly? would that appease currency traders a little bit? fiona: i think so. also the fact that there is discussion about a fiscal plan. obviously, that will appease the currency traders.
i think that a lot will be next year about macroeconomic risk. negotiatione brexit , although we know that is the plan now, could be perhaps more bumpy than what is said to be by mr. johnson today. there could be some surprise there. how different the program will be from the u.k. to assemble -- europe -- matt: we will keep you with us. we have more to talk about with you. fiona frick is the ceo of unigestion on a very busy day talking markets with us after the british election is decided in a big way in favor of the conservatives and on the day after donald trump has decided to sign on to a phase one trade agreement with china. coming up, we get the business
♪ matt: welcome back to "bloomberg markets: european open." a real risk on day. gainse seen big 1%, 2% across asian equity indexes. now we are looking at european futures up more than 1% on the continent. the gain on ftse futures may look small but when you look at the fact that the pound is up more than 2% against the dollar, it starts to look a lot bigger. let's get the bloomberg business flash. the top u.s. aviation regulator is criticizing boeing's chief executive.
concerned the playmakers pressuring the agency maker 737 max -- airplane is pressuring the agency on the 737 max. it was grounded after two fatal crashes. -- is nearing a deal to purchase control of -- we have learned delivery hero will purchase an 87% stake from is this thing investors for 13% of the company held by senior management will be converted into shares of delivery hero. the thomas cook brand is set for a 2020 relaunch. the chinese owner plans to use operatorear-old tour for travel platforms targeting european customers. the company dramatically collapsed in september. the new platform will debut in
the first half of next year. that is your bloomberg business flash. matt, francine? francine: thank you so much. let's bring you a bloomberg scoop. this is something that we have known overnight. u.s. president donald trump has signed off on a phase one trade deal with china. that has stopped the additional tariffs on about $160 billion of consumer goods from being imposed this sunday. that sent markets soaring. joining us now from geneva is fiona frick, ceo of unigestion. it is a little bit similar to a status quo rather than a comprehensive deal that industries want. what does it mean for european stocks? they have been battered because they have been caught in the middle of this trade war. fiona: i think it is good news for european stocks and especially for manufacturing stocks and stocks in germany. is that we see
stabilization of the numbers in the macroeconomic environment. hasink that the u.s. performed quite strongly in this last year. perhaps 2020 could be -- for europe. fiona, you have i think 23, 20 $4 billion in assets -- $24 billion in assets under management. how much of that is in cash? how much do you see investors able to put more money into equities at this point? fiona: i think it is interesting, because the rally that took place this year was a rally with very little money. if you look at flows, for example, morningstar come up flows this year were mainly in bonds and cash substitute products. the flows and equity started in august, september. the rally that started at the beginning of the year was done with the year was done with very little money of investors.
investors started pouring money into markets in september, october, now it is starting. there is a space for more money from investors. i think what investors have -- thed is that equities new bonds, especially with dividends. it is very difficult to avoid. [indiscernible] francine: what industries will benefit from -- i am not exactly sure how you would describe it, traded truce or something like that. it's been 20 months of a to protect between the u.s. and china -- tit-for-tat between the u.s. and china. fiona: the trade war is clearly not finished. a truce was declared yesterday but the trade war is not finished. depending on what happens in the election next year, it could start again. some of the important factors
such as technology have not been solved yet. we would be careless if the market goes ahead of itself and tries to much optimism. at that point, and a risk will not be priced in. you could have more volatility. i think a lot of the news are in the market already. we have to be careful about the negative news that could be affected, that could have an impact on the market. matt: what are the biggest risks for your business? what keeps you up at night in terms of possible problems? liquidity has been an issue for a lot of fund managers lately. fiona: i think the biggest risk will be the macroenvironment next year, because i think we see clarity from central banks. what they say for now is that they do not see any move for 2020. we see that obviously there is good progress in political risk.
i think what will be very important next year is the macroeconomic and moment. obviously, -- macroeconomic environment. obviously, it will have -- on the consumer optimism, etc. the big risk next year will be, how does the macroenvironment evolve next year? we don't see risk of recession, risk of inflation either. it is quite a nice environment. we see mild growth. i see u.s. and europe growing at potential, not more than that. next year, the news will be more on the macroeconomic side than on the central bank side. there will not be this tailwind that we profited this year from the move in central banks. francine: what is the biggest risk to that macro environment you are describing? is it higher than expected wouldion taking hold that actually change policy
expectations for central banks? fiona: for us, the biggest risk is not necessarily higher inflation risk. it is more, worse economical data and the fact that we are growing at potential. at one point, we could grow beyond potential. we think the risk of recession is still far. there is a risk of growth fading out. we are at the beginning of stabilization of growth number. a present growth on moment and we try to see how many numbers are progressing and how many numbers are getting worse. on the numbers we measured, run 50% of the numbers are getting better and 50% which are getting worse. i think this diffusion index we look at is quite important that we will look at this in the months to come. loud.lake geneva is i think i heard a steamship earlier, now there are sirens very early in the morning for
that quiet little laketown. let me finally ask you hear about one of the other big issues overnight. we have the trade news out of the u.s. we had obviously the huge british election news. 25, the had the cac climate change movement that has been highlighted in the u.k. with extinction rebellion, has been highlighted with greta thunberg and don global wall street. what does that -- and on global wall street. what is that mean for you at unigestion? fiona: that means we have a park to play also. we are integrating esg to make sure we invest wisely and allocate capital in order to solve, contribute to solve some of the issues society is facing today in terms of climate.
it becomes a priority. this year, we have reinforced how we integrate esg in regards to climate into investment andess by avoiding call calculating the carbon footprint of our portfolio and trying to make it better. i think it will be a responsibility for government. it will be a responsibility for corporate. it will be a responsibility for asset managers and it will be a responsibility for individuals. will haveve our -- we to all play something in this project. matt: thanks so much for your time. ,iona frick, ceo of unigestion joining us at of geneva. we are minutes away from the open of cash trading across europe and in the u.k. up next, as the sterling sores on johnson's decisive victory for the tories, where next for the pound? we will look at some of the analyst calls.
♪ matt: this is "bloomberg markets: european open." we are just about six minutes away from the start of cash trading and we are looking at some big gains in terms of futures. very big here on the continent, up 1.4% in paris. we are not looking at such strong gains in london, only 0.25% but that is because the pound surged so much against the dollar after a dramatic election. decisivenson won a majority for the conservatives and the jump in sterling was the biggest we have seen since 2017. going forward, what will we see? dani burger joins us with some
of the pound calls of circumventing in the market. >> it has been a difficult environment to make any decisive calls about what the pound will do. we are starting to hear more from strategist. we heard from westpac and they said that during the asian trading, we might see the pound surged to 1.36. if europe gets back on the map, they say those gains might retreat because in london there was an expectation of a conservative majority. 1.37 ass we might go to brexit uncertainty glitz clear from the map. macquarie and ubs less optimistic. they say there isn't less uncertainty out there and we might see gains capped. we have 11 months until the deadline for a u.k.-u.k. trade -- u.k.-e.u. trade accord and that's why we see some of those trades capped.
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♪ francine: we are one minute from the open of cash equity trading. markets rally. while stocks hit record highs, bond yields and the pound jump. it is risk on as brexit and trade worries fade. bring on brexit. boris johnson it returns to downing street after a decisive win in the u.k. election. he says he can now deliver brexit and the pound sores. president trump signs off on a trade deal with china matt: let us take a look at futures. we have big gains on the european equity futures this
morning. not such huge gains on ftse futures. considering the pound is out 2% against the dollar that is a pretty strong gains for the ftse. just the markets are opening and we are likely to see a similar picture to what you just showed on the futures. the ftse is weaker at that is because of sterling. this is the highest level of sterling that has been flirting with since 2017. i have seen a ubs note that this is early christmas for the market. risk is taken off the table. not to mention the fed is going to pump $500 million of liquidity at year-end. we are seeing the market reflect that optimism. all of these are more than 1%
gains. we also have more optimism where the markets are betting on a lot of bearishness. moving into the cash markets, it is propping up some of these markets. the sector picture also should be an trysting. even though it is a big macro day. a lot of green around here. you will notice immediately that the staples include health care. we are seeking green in tech but we had weak oracle numbers affecting some of the chip stocks. yields are moving higher. we are likely to see a lot of u.k. financials benefit from a decisive conservative majority. matt, what about the individual moves? matt: tech stocks are big gainers.
the stocks are gaining. 440 of the stoxx 600 stocks are up. 60 three are down. another 100 are still in auction waiting to open up. one of the biggest gainers otherwise, thanks including santander, bnp paribas, stock jen -- all putting up big moves today. index finallynk .ose to its february 2007 peak it has taken 12 or 13 years for those bank stocks to get back to record. not quite there yet here in europe. i also want to mention that the gilts are tumbling. back in fixed income. they are tumbling sending u.k.
yields to the highest level we have seen since june. another result obviously of the decisive win by the conservatives in the u.k. we're looking at 10 year yield in the u k of 0.873%. 0.873%.e u.k. of in the u.s. as well. we saw the u.s. 10 year yield jump back over 1.9%. investors are comfortable selling off the perceived hd of government debt. a lot of investors are using those proceeds in order to buy stocks. and as a result coming european markets are opening up strong, in the green, the stoxx 600 index. up broader european index 1%. after that win i boris johnson
in the u.k. election. the phase one china deal cannot hurt risk assets. has beenlearly what the driver of markets in the last 20 and it is no different overnight. n.t just johnson's huge wi massive ls oss but also the phase one deal. they all have to be taken into account. francine: for more on the politics and the market reaction, joining us is our executive editor for the markets. and with us is jeremy stretch, head of fx strategy at canadian imperial bank of commerce.
david, do we have any idea of what kind of a brexit boris johnson will now go for after he gets the withdrawal agreement through? david: we had a bit of a clue. a bit of a harder brexit then .heresa may's deal he has a thumping majority now and the house of commons and he can do what he likes. he is no longer hostage to that part of his party. is he going to do that? in the coming days we will find out. the first part will be getting the withdrawal agreement through the comments. commons.h the matt: what has trading been like through the election?
the superlatives have been thrown around a lot but a very decisive victory when only a moderate majority was expected for the conservatives. what was that like trading markets overnight? the market was priced for a small conservative majority. when we saw the exit poll, we saw sterling rallying hard. the markets repriced the outlook in the outcome of the election. and pricing in the reduction in terms of the fear of the hostage nature that the previous administration felt under those auspices. markets traded up significantly. and the china news has also played positively in sterling. should you keep buying sterling at these levels?
that becomes more difficult to continue to justify adding to the sterling position because while the decision may have precluded the bank of england ism cutting rates, the risk that there is still some uncertainty. there may be some difficulty in negotiating the future trade agreement. francine: pooja, what do you think the markets are pricing in? the market reaction was as expected. saw 13ay, the markets basis points of cuts. looking ahead, there is limited upside. we saw a dovish pivot from the boe in the november meeting. i think going ahead, markets
well turn more data dependent. but brexit uncertainty as well as u.s.-china trade war uncertainty -- the ecb, fed, and haunted byas been these concerns. we are getting some relief. up the want to round gains we are seeing in equities. 250 is rising 4.4%, the biggest gain since 2010. up someks are putting huge gains as well. rbs is up 9.8 percent. said gains -- it has to be they are magnified by the gains in the pound.
are a euroyou investor or a dollar investor, it is a great day to be long ftsebanks as well as long 250. the uncertainty is now out of the way and is a huge benefit to investors but trade is also having a big impact on any stocks that are related to the u.s. and china getting closer to a phase one trade deal. overnight thatg president trump has -- bloomberg breaking over night that president trump signed that deal. puttings like daimler up big gains in german markets and that is helping to bolster these markets. jeremy, how much further do you see these gains in sterling going? at what point do investors who
had this that right start to take profits off the table? expectingeople were abuy the rumored trade the news and we have not seen that yet. i think the market was already priced for that. we are seeing the rally play out over the course of the immediate aftermath of the news breaking about the potential outcome. forink there is some scope relief in terms of the rally because of some profit taking. some of the leveraged positions or leveraged short positions had already been taken off so i don't know if there was any real shortcomings that had to be covered.
francine: matt miller was bringing you the stock moves. u.k. utility surging. quite incredible, the rbs is surging some 9.8%. is that because jeremy corbyn is out of the picture? the fabric of the labor picture -- we could see wild swings in the markets. jeremy: the threat of a jeremy corbyn government was a bigger worry in many ways. then any form of brexit. that was the big story last night, the complete distraction of jeremy corbyn's vision and that socialist vision for britain. which direction will the labour party go? corbyn that mr. jeremy was trying to line up successors
to take the mantle when he steps aside. the rupture now is so big they may have to change tacts. labor issueiggest we need a big overhaul. it is really suggesting that markets were not happy with labor not having any idea what would happen with brexit. i think that is what markets wanted to see. pooja, thank you for joining us. pooja kumra will stay with us. stretch, thankful that
you had stayed with us. david merritt, up all night running point on our coverage here of all things britain and brexit. later today as royal bank of scotland group surges, rbs up almost 10%. we will speak to the chairman of that bank, howard delay. that is not the only big bank gaining. workplace gaining 8%. barclays gaining a percent and lloyds as well. and lloyds as well.
matt: welcome back to the european open. we are just 16 minutes into the session looking at huge gains. i wanted to highlight how much the ok elections had to do with the gains we are looking at. overnight, we had news that donald trump signed on to the phase one trade deal pushing off tariffs the -- pushing off the tariffs. if i look at the stoxx 600, almost all of the uk's docs, ,ndeed they are all u.k. stocks they are among the top 10 gainers.
you had the bank and financials that are the biggest leaders. virgin money is up 18%. andl bank of scotland lloyds both of more than 10%. this as labor had its biggest loss since the 1930's. there will be no radical manifestoes that these banks have to deal with and that has shareholders off to the races. interesting's tough in terms of the size of the gains we are seeing after the size of the majority that the conservatives won. looking: i think i was at a strategists this morning saying it is a must the perfect results. it takes away the threat of naturalization which jeremy corbyn had pushed for. frome back with joe cobra
toronto dominion. trump seems to want to deal and that was our bloomberg scoop overnight. what does that mean in general for markets? pooja: christmas early for markets. yesterday it seemed certain that the december 15 deadline had been pushed forward. this was he. -- this was key. come as a big relief. -25 basis points. gilts starting at 90 basis points. stocks as well as fixed income -- we are heading towards year-end so there are another few days of the move but another story as we enter 2020.
andcine: fixed income equities have been decoupling. pooja: when we see more normalcy from the central banks. what we saw in 20 was that central banks across the board were ready to use all of the total sets. on one side, we are fixed income that will continue to rally but that also supported stocks. when ite some normalcy comes to brexit as well as a trade deal. central banks will be more confident about growth. matt: what do you think of a more optimistic ecb president yesterday? -- and we didying not get in the forecast that we would have a lot more growth or inflation but christine lagarde
did say the downside risks are not as pronounced as they have been and indeed, she hinted that the uncertainty is to some extent loosening up. lagarde think christine -- markets were very skeptical markets were-- very skeptical about her at the beginning. thatthough she said uncertainty had loosened up, went ecb is targeting closer to 2%, we are still not there. brexit and the trade war should help growth worldwide. i think the process will be slow. for now, the ecb will remain accommodative because they need
credibility with respect to the inflation target. we should hear from them by the second half of the year about what tools they can use and how they can reach their inflation target. investors continue to reductions in rates, not just from the ecb but globally? christine lagarde said they stand ready to hold or lower even though they are already at -50 basis points. do investors count on more money in terms of quantitative easing? not just from the ecb but from banks around the world. pooja: i think banks around the the key inat will
january will how the data turns out. sentiment indicators. if manufacturing is still suffering. i think we are more data dependent. given how things have developed in the last week or so, it seems less likely that markets well in.e we need to see a pickup in growth. thank you so much, pooja kumra from toronto dominion was they with us. we have a look at stocks, markets and the u.k. elections. when of the homebuilders we are looking at is persimmon. this is bloomberg. ♪
the threat of added regulation has subsided. domestictse index, the index, seeing its highest prices since 2010. the threat of nationalization being removed. a more than 7% gain. as you said earlier, it is not just the election story but also the trade story. autos are doing better. the high beta indic that -- industries are also doing better. though shares gaining -- those shares gaining by nearly 3%. we got theoming up, business reaction to the u.k. election results and we will be seeking -- speaking to the director general of the british commerce. what will come after the
elliott. you came back! francine: welcome back to the european open. live from westminster and berlin. we are 30 minutes into the trading day. i am francine lacqua in westminster joined by matt miller in berlin. matt: stocks are searching around the world. we saw in the u.s. and then in asia as news of the partial the u.s. andth china reverberated globally. and then the pound leapt as boris johnson and the in britain.s won anything trade related -- take a
look at the sectors soaring. auto parts, retail, basic resources, all big trainers but also banks and financial services. thatf those investments may have been hard by a radical manifesto by a socialist leaning government really benefits from the big loss in labor and the resignation of jeremy corbyn. or is johnson's decisive victory making big waves of across stocks. maybe even bigger in europe and the phase one trade deal does. francine: it is interesting. to see stocks up on both news. you were saying boris johnson with this big victory in the u k elections putting the country on track to leave the european union next month. te -- johnson's
victory should allow him the extra time to negotiate a deal with the eu. joining us now is nejra cehic from downing street. , our reporter.ls 45 minutes ago, we saw boris johnson walking with his partner in two downing 10. what kind of brexit deal does he want? ejra: that is a big question. doris johnson made a joke about the fact that his campaign slogan -- got some laughs. done, -- itt brexit is clear he felt brexit would get done. the big question for markets what happens after that? where the trade deal is negotiated. on one side, you can view it as
boris johnson had such a willnding majority that he be enabled to ignore some of the more hardline, hard brexit look for his party and closer alignment with the eu. the question is whether we will get a u.k. separated from the eu? like anothermore european country or more like singapore? the other thing that johnson talked about was one nation conservatism. he was making reference to uniting the country economically but he also paid homage i would say to some of the areas of the u.k. that voted for the conservatives for the first time ever. talking about the labor heart lands in northern england and wales. he made a promise to those voters that they would make a
right decision for the conservatives. leading to the best majority since margaret thatcher and 1987. getting brexit done but also this one nation conservatism. the question remains if we will get an extension in negotiating a trade deal with the eu. for aets up the risk cliff edge again at the end of 2020. the other side comes from how well the scottish national party does and the results from northern ireland which means that boris johnson may have to contend with some issues in terms of the unity of england. matt: the best conservative majority since 1987. christopher randolph pointing out earlier that tony blair had a bigger majority with his labor government to the conservatives doing better than they have in
30 years. election win, big how is this all going to play out in brussels? maria: good morning. we are getting official reaction from european leaders who are back from day to in a summit here in brussels. the head of the summit said they welcome the victory and now they are operating on the basis of the withdrawal agreement and that it will be put to a vote quickly. the united kingdom leaving the eu in january 2020 which is good news for the eu. they had come to terms with brexit happening. the conversation is shifting to the trade deal. two of the things i am hearing here in brussels is the european union things and is optimistic to get a trade deal done before the end of next year. toxics a politically
decision that the prime minister will have to make if he needs more time and the second thing is that europeans are concerned or worried that an independent could undercut the eu and that is what they are looking at. the eu does not want to be undercut by the u.k. they want a trade deal that keeps it on and equal level playing field -- keeps it on an playingvinevel field. boris johnsondid win so big when theresa may lost? maria: you were asking something about theresa may but in terms of boris johnson and what he will be doing today, he has gone off to meet the queen where he well formal -- where she will
formally asked him to form a cabinet. we perhaps will hear from him later today outside 10 downing street. to the kind ofck brexit deal that will be negotiated between him and they eu -- and the eu. be looking towill get a deal that looks for closer alignment with the eu. he may have to give up control uncertain other elements. thank you very much, nejra cehic. we will have plenty more team coverage here today. and as matt miller on sagan, don't forget -- and as matt miller keeps on saying, don't forget about the trade deal.
>> the u.s. and china have a phase one trade deal. off onnt trump signed the package canceling a new round of tariffs. that is in return for beijing making large farm purchases and beefing up intellectual property protection. the terms of the deal have been agreed to but the text has not been signed off on. eu leaders have pledged to eliminate net carbon emissions end of the century. 26 nations given unqualified endorsement of the goal. in the u.s., the house judiciary committee is pounding ahead with articles of impeachment against president trump despite objections and amendments from republican members of the panel. yesterday, after hours of heated
debate, the chairman delayed the vote until today. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. thank you very much. your first word news. coming up later today after this landslide victory and after a and we arein stocks, talking 10% for a lot of these financials including the royal bank of scotland, we will speak to the chairman of that bank, howard davies at 10:00 a.m. u.k. time. his company benefiting big from the boris johnson win. it comes as shares in the group sore as well as other european financials on the global risk on sentiment and on a labor loss. this is bloomberg. ♪
change. francine? francine: let us get more on the u.k. elections. doris johnson has wo -- boris johnson has won an emphatic victory. the opposition labor party is headed towards its worst results in nearly 85 years. boris johnson is duly elected. it does look as though this one nation conservative government has been given a powerful new mandate. to get brexit done. >> brexit has so polarized and divided debate in this country, it has overwritten so much of a normal political debate. >> i think it has turned out to be a historic election that gives us now in this new government a chance to respect the democratic will of the british people. justicessues of social
will not go away just because brexit is dealt with in a way that boris johnson presumably plans to deal with it. -- i not only plan to get brexit done but to focus on the desires of the british people. >> these results will bring dread and dismay and people are looking for hope. i will not lead the party. >> the work begins today. francine: joining us now with more on the u.k. elections is sir simon fraser. thank you for joining us. are we underestimating how the fabric of the conservative party is changing? a much more socially aware?
sir fraser: it is a big change. the biggest thing is that what has happened is that the leave campaign has taken over the process in the country. this reconstituted conservative party is reaching out to a different electorate and replacing labor in its traditional heartland. francine: what do we know their prime minister won? sir fraser: it is clear that he wants to do the withdraw as quickly as possible but the question is, where are we going after that? there will have to be a mandate for the second phase. will he keep the foot to on the pedal and go as fast as he can to do that in one year or will he give him self more time to work out the best answer? half should boris johnson and the -- which
johnsonuld boris and the conservatives take? they have a much bigger church now. so many people have never voted what canre come up they do to keep those constituents? sir fraser: he himself has said that those people may only be lending him their vote. he said they voted for me because i said i would get brexit done so he will try to maintain the momentum to get that done or at least give the appearance of getting it done. what you heard in his first statement this morning was a lot of focus on the national health service, on police and education. he is trying to move the agenda off of a strict brexit agenda. matt: i wonder about the nhs. we have heard a cynical take
that boris johnson will put the nhs on the chopping block. what is likely to happen? that has been one of the issues. there has been a lot of talk about moving toward a free trade agreement with america. there is concern about how that will affect services including the national health service and the pharmaceutical pricing. agendas another nhs which is about the spending on the services in hospital. there has been a lot of attention placed this week on the shortcomings. of barannounced a lot wing under the new government in order to support infrastructure. did boris johnson do right that theresa did wrong last time? sir fraser: he had credibility
on the agenda. he is a skilled politician and a great salesman. he organized very effectively. yetesa may, you may recall -- the campaign in 2017 was not successful for her. francine: do we know the relationship -- we understand that boris johnson and president trump have a personal relationship? sir fraser: he is going to get support from president trump although that cuts both ways in britain because president trump divisive figure here. the reality is negotiating the ande deal will be difficult will take time and the expectations are probably very exaggerated. matt: simon, thank you for your
time. former foreignr, secretary. let us get to the top stock stories and for that we go back to any burger in london. -- we go back to dani burger in london. : this is all about the currency effect. moving away from some of the u.k. stories, delivery hero level. to its top the market share is expanding sending shares higher. lvmh, and other companies doing well with the global concerns in trade taken off the table. burger with a look at
francine: a landslide win for boris johnson. the prime minister's gamble on an early election has paid off. as a result, the markets really changing and the pound surging this morning. i am delighted to be joined here at westminster though it is pretty cold -- with me is adam marshall. thank you for joining us. stocks are soaring. because ofw if it is the victory of boris johnson or if it is because the specter of jeremy corbyn is gone. the prospect of significantly higher taxes is not what we are going to be seeing from the next government. businesses also want to see more detail from the conservatives now that they have won this
landslide victory. there were not a lot of details. francine: what do they want to know specifically? the relationship between the u.k. and the eu? think it is a mixture of domestic and international priorities. businesses need more information. they are leaving on the 31st of january -- it is about future trading conditions we will face. will it be a loose relationship or a tighter relationship? those are the kinds of questions we get day in and day out from companies around the u.k. we need to raise skill levels in this country domestically. we also have to cut the cost of doing business. we have to make it attractive for investors to pile back into the u.k. relief ismuch of a the loss of jeremy corbyn and
john make donald --john mcdonald? we heard jeremy corbyn and mcdonald talking about radical manifestoes and many marxist references. for the bcc is it good to get them out of the way and hope for a new labour party? adam: for us it is about the policies rather than the individuals but there was real concern in our business community about the radical proposals being put on the table. significantly higher taxation. deep intervention into companies and markets and nationalization. none of those things went down well with our business community. they did offer a significant degree of concern. and small and medium businesses were just as affected by some of those pronouncements as were the large firms that were the targets of nationalization.
francine: what do the small firms need? this is the strongest conservative prime minister since margaret thatcher. adam: small and medium businesses face huge increases in the upfront costs that they paid to government. for a lot of businesses it is about the costs they are paying before they turn over a single pound. will be looking to kiev property taxes will be cut. some of the admin costs that they face. that will be important particularly if with her exit we are going to see additional barriers and friction as we look to trade over borders. matt: adam marshall, thank you. we are seeking a game in the 250 -- a gain in the ftse