leveragingde glencore. a merger breaks down. plans and allergan make for a tire. cruztory for sanders and boosting the odds of a contested republican convention. ♪ francine: welcome to the pulse live from european headquarters.

i am francine lacqua. falling fore after the past four days. you can see stocks zero 600 again of 3.0%. i want to show you crude. a lot of gains we saw in asia are linked to that crude climbing for the second day, jumping 2%. this is after producers could not reach an agreement even if iran doesn't join in. copper, a little bit of a gain. let's get straight to the bloomberg first word news with nejra cehic. nejra: pfizer is terminating its merger with allergan ending the largest ever acquisition in health care. the move comes after the u.s.

treasury said on monday the new rules would limit what it will call "inversion transaction." -- after the prime minister's sudden resignation through the government into turmoil. -- it is the last hurdle before the country can start exiting capital controls which were imposed during the financial crisis in 2008. german industrial production declined less than forecast less -- less than forecast in february. compared with an estimate for 1.8% decline in a bloomberg survey. global trade forced factory in europe's largest economy to curve up right despite domestic demand. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world.

you can find more stores on the bloomberg at top . francine. francine: thank you so much, nejra cehic. ted cruz beating donald trump in wisconsin's primary boosting the odds of a contested republican convention. bernie sanders one over hillary clinton. joining us by phone is megan murphy. lossuch does tonight's company trumps cap to the nomination -- trump's path to the nomination. megan: by being stopped in --consin which we expected picking up only a handful of delegates in the final numbers. we see this "stop trump" really -- it makes us

have to 1237 quite narrow from here. francine: what exactly what happened? we had donald trump and a lot of controversies recently. the arrest of his manager. is this a breakthrough for cruz or is it a setback for donald trump? megan: you can see it is a breakthrough for cruz. the numbers he came up with in wisconsin are much higher in the kind of state. what that shows is we are seeing some strategic -- looking at john kasich and saying the low, therefore i am going to vote for ted cruz. , that could bees significant for ted cruz. his path to securing the nomination is very low but it is

looking increasingly likely that we may go to a contested convention in cleveland in july when all bets are off in terms of who is going to come out as you may nominee. pepco talk to me about the democratic side. does -- francine: talk to me about the democrat excited. does bernie sanders have a path to the nomination? megan: he continues his momentum. he continues to push the platform. we will see how much he can continue with that. francine: think you so much. megan murphy, our d.c. bureau chief. by heading to s electgo on the bloomberg. let's bring in our guest for the

first part of the show, valentin marinov. great to have you on the program. i am always quite surprised when i asked experts, i say is janet yellen have to think about a possible donald trump? dish you have to make sure that domestic policy is safe? valentin: it is something that investors are playing -- are paying close attention to. the way clients are perceiving what is happening in the democrat and republican side, it has evolved into something far more significant is an indication that things are not that well in the u.s. economy. people are not necessarily benefiting fully from the latest recovery. we see that in the weak wage growth. that is reflected in the gains that donald trump has been making.

francine: i spoke to investor who said it doesn't make the difference who gets the u.s. presidential election, because the system means they can do very little damage. i argued that we do not know what kind of damage what kind of -- what kind of damage a donald trump presidency could make. valentin: when it comes to repentance, we might have to wait until july before we get a comesnominee -- when it to republicans, we might have to wait until july before we get a final nominee. on the democrat side, i think it is fairly clear that hillary clinton is the front runner. likely to remain the case. we think that is one interesting a bit play this could be

more proactive fiscal policy simulated and appointing domestic growth here. dovishness.r ultimately you think -- consistent with the stork experience did -- with historic experience. a republican candidate may be seen -- there will be less tolerance for more dovishness. again, these are early days. i will definitely wait out and see who ultimately becomes the new president. that is grounds for speculation to go either way. francine: what are you expecting from independents? we had a very dovish chair yellen. valentin: that took quite a few people by surprise. the fact she did it twice. it feels like she may be not

necessarily representing the overall view of the fomc. minutes could highlight there was a range of views in march. esther george did vote for a yellen the same time view.aded her the minutes will provide more details about where the big difference lies. francine: valentin marinov there, thank you very much. stay with the pulse. 20 more coming your way plenty more coming your way including glencore. biggestils, plus the ever health care deal. why it is said to be dead in the water. trump's defeat in wisconsin.

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francine: this is the pulse. let's get straight to the bloomberg business flash with nejra cehic. nejra: shares and air france have fallen sharply in paris trade after the surprise the parts are of ceo after three years in the job. his departure leaves europe's

largest airline with out a leader as it tries to push through cost cuts. when the next corporate default weight comes it could hurt investors more than they expect. bank of america strategists take losses from bonds from defaulted companies are likely to be higher than in previous cycles. that's because u.s. -- has more debt. if a country liquidate, the proceeds have to cover more liability. u.n. --ct of august august yuan evaluation -- some 980 chinese firms reported combined losses of 7.5 lien dollars last year. -- $7.5 billion last year.

-- who often has access to one of the rare -- to the ceo ivan glasson berg. great to have you here. when you look at what it was announced at glencore today, markets and investors -- >> i think someone disappointed. the company has been hosting -- have been hoping for a better valuation. note valuing out a the entire business. this sale is battling the business -- is valuing the business. hoping for more but it is a fairly decent price. francine: what does it mean for the future? many times it is saying it is

that they have to work on. are they going to sell more assets? jesse: deposition was $26 billion at the end of last year. by the end of this year, that is $9 billion. they've got a few other assets in the pipeline. a couple of -- today they revealed they have an option to -- 28%. of they are not out of the woods yet. if you compare them to companies like anglo american who had a similar plan, we have not seen a huge amount of results from the company yet. francine: i spoke a little bit too soon because we were talking . the share price reversed. it is down to 0.2%. who is in line? is it a surprise that a canadian pension fund is buying these assets?

jesse: it is not a huge surprise. the majority is canadian. it makes sense. -- over $6quired billion canadian deal. we know from our reporting that was inivestock fund advanced talks to buy these assets. potentially, that note in the statement today, perhaps they line to buy 20%. francine: this has -- when you look at glencore, it is problems. how much -- i know you cannot talk stocks? is it 50-50? the commodity down cycle is so tough. jessica it is an indication about them. -- jesse: it is an indication about them.

significant.quite the oversupply concern is still there. one example of how challenging for commodity prices are looking to remain. what is happening with oil -- echo is it a year from now? francine: is it a year from now? see, they have been -- there could be another housing bubble. if that wasn't the main driver the outlook need not be as great. the close record inventor is oil. if you are hoping the price will be picking up. [indiscernible] that is growth that is going to

improve, the concern is still that prices may not price -- prices may not need to rebound as much. the outlook should remain fairly subdued. francine: jesse, when we look at some of the pictures. you are mentioning some of the miners. what happens? some of them cut it already. jesse: they have already scrapped their dividend. rio tinto has not cut their dividend. tough environment for these companies right now. -- that riothere's tinto may be forced to cut the dividend slightly weird -- slightly. php has outlined a new ratio. francine: jesse, thank you so much. up next, the one i just exceed billion dollar breakdown.

pfizer is set to cut off its allergan deal. ♪

♪ francine: pfizer allegan deal is off. that is according to people familiar with the matter. the company has taken quite a hit.

the interesting turn of events because yesterday bloomberg was reporting going to people with knowledge that pfizer was scrambling to save this deal with allergan. now we are hearing from a person familiar that the deal is off it if it turns out to be true. it looks like the changes to u.s. treasury rolls which came on monday really made this deal not so beneficial for pfizer in terms of looking at the text and version perspective. it is not the first time that changes in u.s. treasury rolls have derailed a deal. cast your mind back to 2014, when the deal fell through because of changes to u.s. treasury rolls back then. they had to pay shire want $6 billion back then. $106 billionhire back then. the big question, what is next for pfizer?

i spoke to sam frizzell he from bloomberg radio. he was thing to me if you look at ashes etiquette shares, because it don't forget pfizer abandoned that 2014 deal with after zeneca after they rejected their offer. their shares have come down. sam says a better fit would be lack so -- would be glaxo. if we are talking about a tax and version. an investor in pfizer shares said to some extent, the era of consolidation among health care companies appears to be coming to an end. whether you believe that or not, one thing is for sure, if you -- specific pacific deal, it is a win for a barack obama's administration. francine: let's bring in valentin marinov for final thoughts good we went --

thoughts. we went to some of the commodities to if you look at opportunity worldwide, it is likely to increase. what is your take on yen? governor kuroda cannot do anything right at this point. valentin: that is what the market seems to think. at this stage, an official intervention to stop the yen from depreciating is fairly unlikely. japan will be hosting a g-7 meeting in may so that remains fairly unlikely in this environment to do anything else did the markets desk anything else. the marks may continue to speculate the further the japanese yen rallies, the boj will be monitoring very closely those developments, in particular -- highlighting from 2013 g-20 communicate where they were saying an official interaction with the market, the moves have become too volatile. ultimately, it is something the

markets want to -- want. francine: what is to happen so that swiss yen does not get bought? valentin: it is a concern. it is becoming a testament to the market concern that central banks are out of options. there is not much they can do to support inflation. francine: they have only done so much. valentin: we do think the boj is not going to -- is not entirely out of options. they are on course. they worry about the low inflation excited and. they do worry about the polling inflection -- polling inflation. we think they could start buying stocks outright. as soon as the impact on the currency market will come from foreign investors line from --

buying japanese stocks. it is still to come it in the meantime, it may trend a bit more. is it definitely the pound? -- where will we see more volatility? is it definitely the pound? valentin: it is the case that the bull market doesn't seem to be pricing in a brexit. it is expected to subside. the pound is a bet. it is become way too expensive. -- it has become way too expensive. brexit,ertainty around but there are problems around greece and problems in the eurozone itself did desperate self. it is difficult for the pound to do much. elsewhere we think the ultimate losers are the commodity

currencies. francine: dalton married off, think he so much. --t valentin merrin off valentin marinov, think you so much. cruz embarrasses the front runner. we talk republicans. ♪

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thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. francine: welcome to the polls. to nejra cehic. pfizer is ending its acquisition of allergan. it comes after the u.s. treasury said the u.s. would limit what it called in version transactions. iceland's prime minister has promised to -- after it through

the government into turmoil. it is the last hurdle before the country can start exiting capital controls for households imposed durings the financial crisis in 2008. german industrial production declined, but less than forecast in february. from the prior month, compared with an estimate of a 1.8 percent the klein. forced economies to curb output. powered by our journalists around the world. you can find more stories on bloomberg. francine: markets are flat. let's head to mark barton.

t concerns would damage the u.k. stock market. this is proving popular among my colleagues. surprise of many, u.k. stocks are not outperforming me -- not only outperforming the european peers, but if you look , they are the most expensive relative to others in the region ever. 350 isow, the ftse trading. the valuation ratio is 1.08. it is the highest since this gauge began in 2005. even this year, the ftse 350 is as much as thet stoxx 600. this is due to the makeup of the

london market. commodity companies have rebounded. we have the weakening pound, adding up to a bone. -- to a boon. what a wonderful chart this has proved to be. onto one of the miners, largest, canada's pension fund agreed to pay $2.5 billion for a minority stake in glencore's agricultural unit. they advance their plan to sell off assets to curb its debt burden. i have shown the big four in the u.k. and how they have fared since they sell in 2003. tinto is up by 22%. bh billiton, up.

glencore, a by 98%. want to make money, anglo american would have given you a return of 138%. quite astonishing. from the stronger dollar will ease by the end of the year as the company reported first-quarter profit. it slightly beat analyst estimates. this is another favorite of mine. itex camethe tax -- ind to the market, it's shares have risen a hundred 69%. 669%.n it be time for the bank of japan to intervene in the currency markets?

the last time they sold yen was 2011. boosted of japan stimulus. introducehave done is negative interest rates. that has pushed the yield on the into negative territory, but the yen against the dollar has risen. not something the doj intended. you know that. francine: governor corona is probably trying to give it his best shot. over to wisconsin, the race for the party nominations. bernie sanders one over hillary clinton, adding to a string of recent victories. ted cruz a beast billionaire donald trump in the republican race. for more, let's bring in jan.

we wonder what is going on in the republican party. are you embarrassed that donald trump could get the nomination? jan: i get asked that question. the issue is that donald trump and ted cruz are hated by the establishment equally. donald trump is feared and ted cruz is hated. that tedan allusion cruz or some of the supporters believe the establishment wants him. want to do is railroad donald trump. they want to prevent him from getting the nomination. based on the loss last night, he probably will come in 30 to 40 delegates short. the establishment is driving into a contested convention. they are manipulating behind the scenes. the rnc has made a decision they're going to change their rules of order because they believe they have to head off or theti-trump

republican party will split terribly. we have a meeting april 20. there is a resolution that will be presented to get rid of the 1500 page house roles that they convention goes by and replace ofwith robert's rules orders. francine: the establishment does not want to donald trump or ted cruz. they are trying to split the party so a third person who is more moderate can come in? is moreon't know if it moderate. you never know which faction. the bottom line is the establishment will not acknowledge the 67% of the population. there is not much difference between bernie and sanders. are suffering from willful

blindness and they are only waking up going -- we thought donald trump would disintegrate. now, everything we believe in is falling apart. francine: is there concern the republican party splits or can they choose a third party we have not heard of to come in between ted cruz and donald trump. jan: the reason for changing to rules of order, as ted cruz said, if they do that, his supporters will revolt and donald trump said his supporters will riot. ,ou will have over 1000 1200 1500 delegates walk out. that is why they are changing the rules of order so it is

transparent. they will not allow the establishment to make a contested convention. we are planning for it. we have a call next monday to go over what the rules are. francine: you would never see establishment republicans backing donald trump? jan: you have to ask them the wordlly about never. the opposite is hillary or bernie. i do not think they would vote for hillary. foreigner. am a i live here. you look at what is going on in the republican party, i.s. to me was split. why not split into two different parties? if youit is unthinkable are republican american, but is that not possible? jan: it is not possible. are a solid democracy of two

parties. would there be a third-party candidate, i have heard rumors donald trump and bernie sanders have been talking that if they get thrown out, they could join forces. it is really crazy right now. what people need to understand is doingpublican party everything to keep the party together. everything to handoff these anti-trump establishment people. they truly believe one of the three will be considerate -- one of the three will be the nominee. up next, reaction from world leaders as the panama ripples around the

world. stay with us. it is "the pulse." ♪

francine: let's get to the bloomberg business flash. shares and klm have fallen sharply after the departure of the ceo after three years in the job.

airlinerture leaves the without a leader as it tries to push through cost cuts against opposition from workers. when the next corporate default waves, and comic could it hurt -- it could hurt investors. u.s. issuers have more debt relative to their assets. levels of borrowing means if a company liquidates, proceeds have to cover more liability. the impact of august evaluation has shown up in chinese publicly traded companies. investors are bracing for more pain. boarded -- forms reported losses of 7.5 billion dollars for last year, almost 13 times the amount in 2014. francine: thank you. german prosecutors are investigating the two lawyers at the center of the panama papers leak.

beaper suggests they could suspected accessories to tax evasion. of scandal saw the release 11 point 5 million documents and has forced world leaders to act. pres. obama: we have had another reminder in this dump of data coming out of panama, that tax avoidance is a global problem. it is not unique to other countries. there are folks in america who are taking advantage of the same stuff. a lot of it is legal, but that is the problem. francine: david cameron has defended his family's tax affairs after it was alleged his an offshoreunning fun. >> i own no shares. i have a salary as prime minister. savings, which i get

some interest from, and i have a house, which we used to live in, which we now let out, while we are living in downey street. francine: yesterday, the scandal claimed its first casualty with the resignation of iceland's prime minister. the icelandic prime minister steps down. it does not look good having a panama account. himne of the problems for was his reaction, walking in the interview was not good for him. thatwas one of the reasons lay behind his resignation, a reminder to all politicians and executives around the world who might be implicated in this. two things matter, the substantial matter of whether you have an offshore account and how you react to it. francine: you were telling me

about a party i never heard of called deep hire a party. the main drive is to eradicate inequality. >> that is part of it. be hearing more about this in the next week. there are a lot of calls for snap elections after these scandals of the past weekend. the party that would stand to gain most from this is the pirate party. they are a peculiar mixture of political instincts. libertariansemist on one hand, left leaning. one colleague said they make bernie sanders look like ronald reagan. on the other hand, they have specific recommendations for what should happen in the icelandic banking sector, yes, there is great political, but there is a big money angle here.

francine: the panama papers were released four or five days ago. how much do we know about the money behind it? >> the documents are still coming out. we don't know how much is out there. iceland, looking at the money angle, there is a big play here for important things, for hedge funds. part of this process is whether iceland can pull itself out of capital controls by the middle of the year. there are $2.4 billion in glacier bonds that have yet to be unfrozen, which is the implication for hedge funds out there who still hold some of these securities they cannot get rid of. there is a lot in play for iceland for some managers. cameron, wevid

heard him say what he owns. are things looking bad for him? >> they are looking uncomfortable. i don't think he is near in the front will the icelandic prime minister was in. the way to look at this, this is coming on top of a lot of bad things with david cameron in the last few weeks. hime was a photograph of sitting with his wife, the brexit is not going well. he is not having a good time. francine: thank you for coming on. next, the search for clarity since the march policy meeting. messages fromxed fed speakers. we are live in new york with the latest. ♪

francine: oil extending gains. air -- javier, i am confused. kuwait says they will move even without iran, who do we believe?

saudi arabia cannot join. the fact that kuwait and the united a robyn meredith usually take the same position as saudi -- to find some kind of compromise suggest -- was unexpected within oil officials. now everyone is scrambling to find a solution. francine: are we going to have a breakthrough? >> we have about 11 days to go to doha. we may have a breakthrough. comments, the market is going to take the agreement -- or they just found a

diplomatic solution with fancy language to get into an agreement. whatever is agreed to in doha, the comments by the crown prince water down whatever happens in the meeting. francine: the stocks were gaining. it is now down. people are saying they did not get enough money for it. they always say they wanted to have between $2 billion and $3 billion. they have to sell more than they expected. if you look at the equity and enterprise valuation, it is coming below what we would expect. it is coming below market expectations. francine: thank you. commodities we get minutes of the federal reserve's march meeting later today. what will they reveal about the fed's current thinking. you can follow the release

alive. first, let's get to new york where michael mckee is standing by. what are we expecting? will these minutes move the markets? michael: so many fed officials have spoken out and told us they were worried about markets, the dollar, a global economic slowdown. we will have to accept again at the time of their april and june meetings. janet yellen has said she is going to err on the side of caution. francine: she is concerned aboute she is concerned global developments. michael: they have not been that bad. markets have settled down, at least until this week.

we saw a hit to trade balance question isut the what happens in the global economy. that will take time to play out. not see a lotll of investor reaction in terms of pricing in the next fed move minutes.ay's francine: thank you. great to have you on the program. you can follow michael on tv and on twitter. he has a great twitter feed. stay with bloomberg. "bloomberg surveillance" is up next. we will bring you our interview with the swiss national bank's president. it is interesting to follow his comments. we see a big movement on yen. it is going to be quite difficult for you to move your

currency. let's see what central banks throw at these two currencies. european stocks advancing. oil gaining. surveillance is up next. ♪

francine: a mega merminger al ks down, and feedser and abegan scrap plans. and frontrunners falter. the primary's frontrunners are pasting the odds of a republican contested convention. we are actually watching the u.s. elections very closely today and something else i am