Welcome to bloomberg best. A weekly look at the most important Business News from around the world. Heres a look back at the top headlines. Just announced, highyield credit fund lucent is shutting down. He is going to return the 900 million they got under management. Just last week we heard about the distressed fund, stone lion, we heard about 3rd avenue, the mutual fund putting the gates up. What is going on in the highyield market . I will start. This is something a lot of folks have predicted for a few years now. You have more of a retail base in high yield than you used to. Flows are more volatile. And so you have some price volatility and liquidity that you did not have illiquidity that you did not have an prior cycles. The volvo role and doddfrank have affected the highyield. Are we mistaken when we blame this on the vocal rule or doddfrank . When you buy high, you are committed to selling low. That will play out again and again and again. I think the volga role has something to
Lowering their forecast for fiscal 16, citing what it calls weak supply chain data points. Everyones trying to game out not just the december quarter but the next year. Does this call make sense . It does. I think the holiday is going to be strong. Tim cook has already said expect the Holiday Season to be up unitswise and revenuewise ver versus a year ago but after that its questionable. The apple watch needs an overhaul to be a mass market success i think. Beats, i didnt like that to begin with for 3 billion. I think its still bad. The main defense for it is how do you tell tim cook how to spend 3 billion . But they have not overhauled the headphones, the key product there, in more than a year. Thats embarrassing given the demand for that kind of product so there you have it. Big product changes are what drives it. The consumer still has money for technology that they want. Thank god that they did the large form factor phone. Over the past three quarters, the large phone has gone from
David cameron holds Good Progress on reform talks but theres still more work to be done. Really Good Progress has been made but it is going to be tough because we are attempting something really difficult. That is to renegotiate our position at a time of our cho e choosing. The worlds richest footballer investors 40 million into the Boutique Hotel space. Ronaldo telling us in an interview why hes taking a stake in the hotel empire makes sense to him. Football is not for the whole life. I want other things. For me its fantastic. As i said before its number one and im number one in football. So you have everything. Good morning. Its friday. Quick look at the markets. The stocks europe 600 is down by 0. 4 . Were at 363 here. Yesterdays trading session we were up by 1. 3 . So that post federally fizzled out a little bit. Maybe a little bit of profit taking after that but also casino in france suffering from the negative research note. Well get to that in just a little bit. Lets get back to
Reaching 4 million last week. Thats the highest level since august 2014. The box office awakens. The latest star wars movie breaks all sort of records as it opens to fans in the United States and europe. Oh yes were all looking forward to the force awangs this weekend. Lets check in on u. S. Futures and u. S. Markets first off. Breaking that winning streak on thursday. So we are below fair value so looks like we are opening lower. The s p 500 could be down four points at the open. The Dow Jones Industrials being called down triple digits at this point. Lower than the nasdaq and looking at declienes of 31. Its a sea of red. Modest at this point. Lets call the ftse 100 flat. The cac 40 up by plt 5 but this is on from the session in asia last night and really some confusion over the bank of japan. The boj expanding its asset purchases which includes new Exchange Rate of funds and longer duration bonds. So the etf buying program will start in april but in a press conference just to clarify
Prices for the redemptions. This has roiled through this high yield space, as Many Companies have gigantic amounts of debt. They took on during the days of easy, cheap credit in the housing days. Those days are over. And these junk bond funds, particularly the mutual or open funds, are proving to be disastrous investments. I urged you is to sell the stocks of any companies that are borrowing money to pay their dividends, which is the case of many of the oil companies. Now im including a mustsell for any mutual fund where you are risking your principal to grab a little extra yield. A mustsell. Ive urged you never to reach for yield since the show began. I am reiterating that admonition lets go to next weeks game plan. First, well be on the lookout for more stories about Mutual Fund Redemptions just like we had today. Theyre going to dominate the headlines, because Financial Advisors all over the country were calling their clients all day today, urging them to sell junk bond funds so the