Bloomberg, United States, Europe discussed on Bloomberg Daybreak: Europe
The frontrunner in Brazil's presidential election. Cheyenne Bolsonaro wants to cut ties with Venezuela and recognized a slim as Israel's capital, that's according to his son from Brasilia, Bloomberg's Rachel Gamal ski reports. If the firm, I'm captain wins the election. Brazil would also put an end to its friendly relations with era both on I will face dodgy from worker spotty in a runoff vote on October twenty eight Rachel Ghimire ski Bloomberg daybreak Europe. Donald Trump has said he opposes blocking arm sales to Saudi Arabia over the disappearance of journalist. The president's comments come as a bipartisan group of US senators forcing his administration to investigate the disappearance of Jamal. Cashcall. That triggers a human rights. Pro black could result in sanctions against Saudi officials and entities. And president Emmanuel Macron is an Armenian attending a summit in era. Von macaroni is testing French patients as the government reshuffle will not take place until he returns on Friday. Bloomberg's Greg viscosity reports. But Emmanuel Macron's office said Wednesday that a long delayed cabinet reshuffle will be announced until the French president Richard Smith two day trip to a conference in Iran. The reshuffle fed off by the resignation of microbes interior minister has been held up by the need to vet all candidates Hennion need to maintain a political and gender balance in the cabinet in Paris. Gregory EA, Bloomberg daybreak Europe. Global news twenty four hours a day on air and it took on Twitter powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Leon guarantee. This is Bloomberg Marcus muchly on that's squeezing the sport as well. Here's Betsy Aston Villa? Have appointed Dean Smith as their new head coach. With John Kerry, his assistant, then e boss joins from championship rivals Brentford after nearly three years at the club. Terry spent the final year if he's playing career at Villa Park lead in the playoff final former Valencia and Madrid sporting director Hazies Garcia Pitarch is coming into elsewhere England goalkeeper Jordan Pickford says he went rest on his laurels. As he aims to stay the country's number one England stopper secured the shed following his excellent performance at the World Cup in Russia Wales returned to the principality stadium for the first time in seven years when my hosts Spain at an international friendly later Gareth bale will miss the game with an injury. But it's hoped he'll be fit for next week's nations lead tie with Republic of Ireland a world number-two Justin Rose headlines the field at golf's British masters. He's joined by fellow European Ryder Cup winners Francesco Molinari and Tommy Fleetwood playing the event Walton Haith the sports update there where that Colin Besley. Now, let's get back to the mall kits. And let's get back to the stock selloff that we're seeing globally for that. I'm pleased to say. We're joined by cuck Hoffman here in the studio. He CIO at Wells Fargo, and he's usually based in Los Angeles. I believe so welcome to London. And welcome to Bloomberg radio here in the UK. I just wanted to start by asking you. I was reading your notes, and you were saying that the market has sort of turned into or you've seen signs of a more defensive posturing in markets in the past few weeks. Also is the sell off that we're seeing today an extension of that absolutely growth has beaten value now for ten straight years. So I think it's to be expected that there would be a defensive rotation, for instance, healthcare stocks have done extremely well. The healthcare sector was up something like eighteen percent utilities interestingly, which usually don't do well in a rising rate environment of actually done very well of late. So I think you're seeing the rotation to the dividend yielding stocks and the more defensive nature. How do you look at it? Now. I mean, it's still early on so to speak in this selloff. But how do you look at it is this just a temporary blimp? Essentially all could there be something more nefarious to it? I don't think there's anything more nefarious to it. If you think about it. We are testing we tested the January highs. We were at very high levels early in the year the year sold off then we came back when above the January levels the s&p went above twenty nine hundred. So I think a bit of a correction is to be expected on the other thing, I think that had to give was the strong dollar from strong dollar just continued to soar and that was doing a lot of things was making a US exports more expensive and also was hurting the emerging markets. So I look at some of this as a logical progression of the market. And actually, I'm of the view that the fed actually through its tightening is actually done the market favor. Meaning it slowed things down a little bit. And I think you're seeing the impact of that. What about the treasury yields? I mean, where do they go from Hayden? Sure. Well, it depends on what part of the curve meaning that I thought all year long that the yield curve would flatten because I thought the fed would continue to tighten as they have. Normally, you would think that the curve would actually be steeper. But I think because of. Central Bank buying around the world. It's actually kept rates low. So for example, very hard for the US treasury in my mind to go up ten year too, much more because German boys rankled, anchored a fifty basis point. So the spread differential between US yields and the rest of the world got to be so large that it was probably too much. And also what contributed to the very strong dollar? All right. Thank you very much for now. Coke stay right there. Because you're going to be staying with us for the next segment. We have plenty more to talk about we've had some comments, of course, from Steven Mnuchin who's over in barley alongside other finance officials for the World, Bank and IMF meetings. So we'll be going live to Barney for more on what the US Treasury Secretary has been saying regarding this selloff. So cartman CIO at Wells Fargo will be staying with us. Just a quick look at the future as we're twenty minutes away from the European open. Euro stocks fifty futures.