Chancellor George Osborne is out his plan for remaining in the eu. How are they look at . How are we looking . Let me show you. This is the bloomberg, and it shows you the fair value calculations on wei. The stocks are down by 1. 1 . Interestingly, the london market looks like it will open better than most, only down by. 9 . We are going to talk a lot about the dax. We are going to talk a lot about oil let me make that absolutely clear. We will come back to this, and what is happening in brazil. In the meantime, lets update you on what you need to know with the bloomberg first world ms. First world news. Reporter brazilian lawmakers have voted to impeach president dilma rousseff. The opposition achieved the 2 3 majority it needed to move the process on to the senate. There, a simple majority would see rousseff suspended as she faces an impeachment trial. Hisge osborne will ramp up campaign to keep britain in the European Union today. The chancellor will highlight a treasury report that
Activist attack on wall street. This time, United Airlines. Two hedge funds with stakes in united announcing they think the board stinks and they want its own birthdays. What is interesting im looking a the release from par capital and all item meter capital. They own united shares. And they say say we are not shortterm traders nor are we activists. Yeah, right. They are active right now on getting six people onto the board. Including Continental Capital gordon buffoon. There are not people who will argue that united lagged its competitors. Its performance over the last five years, it has been underperforming relative to its competitors. By the way what you are looking at right there those are members of a Teamsters Union protesting out the jp Morgan Transportation Conference Today where the cfo for United Airlines was giving a presentation to analysts. Here is lebeau talking about the Management Team performing woef woefully. If in a horse race and you are in fourth place you are not.
Here is what is most interesting. The defensive trades stood out as the biggest winners. Gold seeing the biggest quarterly gain in 30 years. Utilities up 9 . Telecom getting more than 15 . And the tlt rallying 8 for the quarter. So you stick with the winners. Do you stay defensive in q2, guys . I think the defensive nature is why people, specifically me maine still question the validly of this rally. Do you stay with those trades . I think you stay with certain things working. Home depot has been a monster. Cocacola has been a monster. Now were trading up against resistance. Gdx, for example, failed at levels we last saw at may of last year. Steve talks about xlu all the time that is also trading at levels that potentially are double top. So i think there are certain stocks that continue to work in terms of momentum. Some of the trades that have been defensive might be getting a little long in the tooth. You could take a look at the valuation, for instance, grasso on utilities. Utiliti
Rousseffs removal is not priced into the markets. He says the real is his favorite currency. We are less than half an hour away from the market open in europe. London is closed today. However, what weve seen overnight is this move in japan, but that is not being reflected in europe this morning. Looks like a positive open. Japan was reacting to what happened friday when u. S. Markets got crushed. Now we are starting to see a fresh start. , if you want to play along at home on your bloomberg, that tells you what is happening. Lets talk about some of the other assets that are on the move as well. The data out of china, reasonably positive, but dollaryen front and center. The nikkei down 3. 1 . Crude is softer as well. Aussie dollar, watch for that one. It is a reflection on what is happening in china, and we have a Rate Decision tomorrow. That is what Juliette Saly knows about. Juliette thanks, guys. Halliburton and baker hughes have called off their 28 billion merger. The proposed union
This is in seven days time, we will be waking up where the meeting with bond traders face off with the equity traders, who is prepared for the fed . That is the question, the longest losing streak in six months. Is it oversold . The relative strength index is below 30. But we are seeing the msci index, trading 11 times the 12 month earnings index. It is being punched as Global Growth concerns and of course worry about the fed next week. Theave day number eight of decline in emerging markets. The shanghai composite hitting a fiveweek low. All eyes will be on the yuan. Let us do you up to speed with a bloomberg first word. After decisions from new zealand, switzerland, and the u. K. Yesterday, it is the turn of Russias Central Bank to announce policy today. The governor is excited to keep rates on hold, despite battling the countrys first recession in six years. Bloomberg sources say argentinas new president is kicked off talks with several wall street banks for one year loans of up to 1