cehic and this is "bloomberg markets" on bloomberg television. vonnie: we are going to take you from cleveland to new york to london covering stories out of turkey and germany in the next hour. here's what we are watching coul. a strong quarter for mornings damning -- for morgan stanley . roman pimco names manny as its next ceo. what it means for the next generation at one of the largest bond firms and the biggest public we traded hedge fund. vonnie: donald trump officially becomes the report and for the 2016 presidential election. -- republican nominee for the 2016 present election. what he has to do to avoid the missteps. let's head straight to the

markets desk where julie hyman is looking at what is moving. like a newooks record for the s&p and dow, but have been struggling since the open to hold onto the gains we have seen early. the dow is up 16 points and s&p gaining a little more than three points. the nasdaq is the big winner today with gains of half of 1%. you are seeing a clear divide and a clear push by tech which is higher, mostly from microsoft, which we'll get to in a moment. on the downside is energy. we are seeing a decline in oil prices. they took off on the downside at this morning here. the dollar is higher today. we are getting the weekly inventory data in about a half hour. i will be bringing you those numbers. in the meantime, the oil price going lower is putting pressure on energy stocks. the also got earnings from halliburton that initially looked sort of mixed.

on the one hand, the countries numbers missing estimates when you look at the north american operating loss, which was 8.2%. that was worse than had been estimated. the company did say that things are turning and going to improve. that is not helping shares right now and not helping energy as a group by extension. let's get to microsoft and the other part of the earnings equation today. the shares higher by 5.5%. estimates anding is making some progress in migrating business away from the legacy businesses, the slowing businesses, and into the cloud. the cloud business is the du jour platform. microsoft shares are trading higher and really helping out tech and the nasdaq as well. morgan stanley, which you heard earlier,lude to

shares are now giving up a lot of the gains. now only up a third of 1% after earnings beat estimates and its following on the trend. it looks like it is struggling to hold on here. we will keep monitoring the shares to see how it shakes out. nejra: your 90 minutes away from the european close. equitiesok at where are trading, the stoxx 600 has really been swinging between gains and losses over the past few sessions. today is one of the updates. the stocks 600 heading for a four-week high. you have 500 companies in the stoxx 600 gaining. tech shares and carmakers are leading the rally. if you look at tech, sap shares have hit the highest level this year. this is after the company reported results that topped analyst estimates. this was after putting a weak start to the year behind it and closing more software deals despite political turmoil in

europe, rallying at 5.3% at the moment. is -- gaming is thvw. its namesake car brand show signs of recovering from the omissions cheating scandal and starting to benefit from cost cuts. on the downside, i'm looking at anglo american. this actually cut its annual target for copper output after operations in chile. we have seen shares slump the most in three weeks, this for a company that has been the second-best performer on the ftse 100 index this year. today, we are seeing it down 10.7% at the moment. vonnie: thanks. let's check in on the bloomberg first word news. we have more from the newsroom. >> must no one gave him a chance more than a year ago when donald trump announced he was running for president. now he is formally the republican nominee.

trumps older son made it official in cleveland, speaking for the new york delegation from the convention floor. >> to be able to throw donald trump over the top in the delegate count tonight with 89 delegates and another six for john kasich, congratulations, dad. we love you. [applause] >> the convention also nominated indiana governor mike transfer bpence for vice president. hillary clinton will announce her pick in the next few days. most want the president to focus on improving race relations. that is according to a washington post poll. race relations seems to be the top issue. others prefer a pro-trade president.

six in 10 want to support the path to citizenship rather than opposing it. the u.s. is counting on winning commitments for $2 billion at a conference on helping iraq. the money will be used to de-mining areas once held by the islamic state. aid will also be aimed at helping refugees. two dozen countries are taking part. the u.s. says it is planning a substantial contribution. there will not be any hard bargaining today when british prime minister theresa may meets germany's chancellor angela merkel. there will be no concrete negotiations until the u.k. triggers the clause that starts the process of exiting the european union. this is mays first trip outside of the u.k. since becoming prime minister. she and merkel will talk with reporters today and you can watch it here on bloomberg television at 12:30 p.m. in turkey, president e rdogan is meeting for the first time with official since last

week cpoup. in the last five days, turkey has fired or detained professional credentials of 60,000 people. turkey will also consider declaring a state of emergency. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries, i'm alisa parenti. vonnie: thanks. stocks are resuming their push to fresh records with earnings news this morning. if you are on the function on your bloomberg, you will see more green than red in terms of earnings. rees,g us now is stephen the global head of equity strategy at j.p. morgan private bank. it is pretty typical that around 70% of companies beat estimates. it's the typical earnings

season. >> i think it is still close. we are 20% of the way through the season in terms of the market cap. the difference versus the last few quarters is that we are so close to a significant earnings recovery, meaning we think we are going to go back into positive territory in terms of earnings growth starting in the third quarter. what is driving that is stabilization and oil prices. we have had the energy sector show profit declines between 70% and 80% and that is starting to lessen a bit as you head to the back half of the year and next year. the u.s. dollar went through a significant perio a d of strengthening. we think this is the last quarter, meaning the second quarter reported today, of negative trends. investors are looking to positive trends. there's a significant positive year in 2017. vonnie: if those two headwinds go away, the oil had when and

the dollar had when -- headwinds and the dollar headwinds, there still needs to be a driver. what would that be? movemente have seen outside of the sectors. we think toy 16 will show double-digit earnings growth. health care will be on track for highs double-digit earnings growth. it might be lower given news on the m&a space. health care, consumer discretionary, and technology still showing favorable growth trends. the issue ha is that has been masked by the energy sector in some the larger multinationals. nejra: i want you to talk to me about defensive. the favoring that we have seen toward defensive yields, you think that is going to start to shift now? steven: i think it is already starting to shift. if you look at the sector trends over the last few weeks, we are seeing telecom, utilities, consumer staples lag

significantly in the market. i think that makes sense. i'm not in the camp that the bond proxies or the defensive dividend sectors are overvalued. i think they are justifiably valued where they are today, given what has happened to interest rates as well as the outlook for interest rates. however from here, we see a lot more upside in the sectors and stocks that have above market earnings growth potential. i think a couple things are going to happen as we had in to the back of the. year. the markets are going to focus on it more as the dollar impact cloud starts to lift. we do think the u.s. economy remains on track. we think the fed is likely to increase rates at some point they did this year. i think that will be positive for more growth oriented sectors. you might see telecom and utilities continue to lack of it. -- to lag a bit. nejra: in terms of the fat and despite the fact that markets are repressing expectations, we keep getting call after call for

10 year yields to go ever lower. i spoke to somebody earlier today who talked about protecting a multi-asset portfolio. you talk about these as well. tell us more about that. steven: we want to monetize the volatility when there's opportunities. hesitancy.e some some of the stock performance is very strong. we see opportunity to monetize skew. what that does is allow us to take in some premium in the attractiveand some annualized yields in the double-digit range and the opportunity to buy a stock that we want to own a bit lower. this is a strategy that we are employing today given the nice rebound we have seen and markets and across the different sectors and stocks we are recommending. seeing european

equities higher today after a few sessions where we have seen an alternating between gains and losses for the stoxx 600. what is your outlook for european equities versus the u.s.? steven: the outlook is relatively range found. we do think there's a prolonged earnings impact and uncertainty impact in terms of what will be the absolute impact on the economy from here. we are essentially at our price target, so we do not see a lot of upside. as not to say that there are not opportunities within europe. right now, we see a lot of value in some of the more defensive dividend payments. on a relative basis, that yield looks attractive when you have some he negative rates across the continent. we also think there are opportunities for consumer and health care and the more growth parts of europe as well. we are a lot more selective than we were six months ago, but we do see upside. vonnie: your team is global and you must get a lot of questions

from your clients about the geopolitical situation. is there a place where you are saying we cannot allocate anything to that area? steven: we are pretty much allocated around the world. we are overweight and underweight in different regions based on the risk and sort of the valuations we have seen. we live in a global world. unfortunately the geopolitics you're talking about aren't isolated to just one region of the world anymore. there happening everywhere and it's something to be aware of. it really speaks to the need to be globally diversified. vonnie: the msci index is climbing and climbing. rees, thank you. coming up, we will look at the stocks moving on earnings, including shares of united continental after low deal and operating costs overcame week fares. stay with us. this is bloomberg. ♪

vonnie: live from london and new york, i am vonnie quinn. nejra: i am nejra cehic. you're watching "bloomberg markets." it is time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. hasnior manager at hsbc been arrested in new york for his role in a conspiracy to rate currency benchmarks. thmarch off and as the first person to be charged in the justice department's three years investigation into foreign currency rating. igging. this is after five banks were found guilty. hsbc was not one of those banks.

the unemployment rate in the u k has dipped below 5%. to british jobless rate fell the lowest since the third quarter of 2005. the number of people working rose to a record almost 32 million. that is your business flash. vonnie: let's head straight to the markets desk where julie hyman has the latest on some movers. julie: looking at some travel stocks right now. united continental is out with earnings, so we have been watching the shares. their hang onto a gain of 3% right now. second court of profits beating estimates. they saw a drop in operating costs generally and that counterbalanced some week fares and some week pricing for the company. justnteresting among not united but all the airlines is that they are trying to have some capacity discipline here. fored says it plans to trim 2016 and increasing capacity to know more than 1.5% from last year. it prior plan had to expand as

much as 2%. united and its peers are seeing declines from unit revenue. it is trying to stream capacity in order to combat that phenomenon. however we are also watching hotel stocks after ever court att and hostigy hotels. analysts are seeing recent outperformance and the host sectors unjustified because of deteriorating fundamentals. there's no improvement in the sector within the second quarter and a sizable likelihood of full-year guidance cuts. that said, it is especially hyatt holding up relatively well. we're looking at wynn resorts and there was an analyst call. ubs downgraded the stock to neutral from buy. it set the stock is reflecting the improving trends that we are seeing in macau and that the your over your comparables will

be tougher to be going forward as things improve further. that stock is being affected by the downgrade. overall, we are still seeing gains across the board. vonnie: julie, we will see if that holds up for the rest of the day. still ahead, it is official. donald trump is the republican presidential nominee. can he widen his appeal to successfully run for the white house? we are live in cleveland. this is bloomberg. ♪

vonnie: you're looking at the quicken loans arena in cleveland. last night, donald trump officially secured the republican nomination. his son, donald trump, junior, was among those cheering him on. >> i know that when people tell him he can't be done, that

guarantees he gets it done. i know that when someone tells him something is impossible, that's what triggers him into action. vonnie: trumps son and the other headliners try to regain momentum after melania trump's speech monday. obviously donald trump's daughters and sons, did they make the impression along with chris christie that delegates wanted? >> i think that this was a night that the trump campaign needed to regain momentum after losing the political narrative on the first night because of that incident. that is clearly not behind them. what we saw from tiffany trump was a very personal speech. she spoke about donald trump himself writing on her report card. what we saw from donald trump,

junior, who has emerged not only as a character testimonial for his father, but also a senior advisor within the campaign. what we saw from him last night was not only a personal speech, but a policy driven and political speech. it will be interesting to see how we remember that speech in the years ahead. vonnie: day three is make america first again. do you think the speakers today, including mike pence, will stay on that theme? kevin: later this afternoon, donald trump and governor pence are expected to touchdown in helicopter. they will be arriving at the convention together. you will see a lot of images of together here in cleveland. i think a lot of questions about their chemistry and whether or not we are seeing them together. i think that will be the image they are trying to project. unity is what the trump campaign

wants to project. seeing mitch mcconnell as well as paul ryan on that stage, just a couple weeks ago, or even months ago, that would've been unheard of. to see that happen, i really think they need project party unity heading into the general election. nejra: you talk about the need to project party unity. what about the dissenters? where do they stand now? kevin: well, you know, i think that when you look at some of that the trumpes campaign have really preached on immigration or trade negotiations or the economy, i think they are trying to not only talk about the criticized hillary clinton, but also to show new dimensions of donald trump, the personal side of him. if you look at the polls, hillary clinton and donald trump only have approval ratings in the 30's.

the majority of americans are not satisfied with either choice. this week, the gulf of the trump campaign is to try to win over many of those voters who really are dissatisfied with both choices. nejra: what does trump need to do now? voters seem not satisfied with either side. have the past couple of days been enough for trump to make pivot to become president? kevin: i think there was a heck up on the first day obviously, but i think they are now on track after last night. thursday night in primetime, when donald trump is giving his address, there's a lot riding on the. at. voters dissatisfied with both choices are looking to see if they can see a different side besides the brash, bombastic billionaire that candidly

allowed him to win the nomination. he now has to win over independents and more moderate voters who are taken a at the state of political affairs right now in the race. nejra: a lot of work ahead for both candidates. irilli reporting from cleveland. better-than-expected than expected earnings for morgan stanley, but have analyst lowered the bar for the bank? that story is next. this is bloomberg. ♪

vonnie: live from bloomberg world headquarters in new york and london, i am vonnie quinn . nejra: we are watching olio hold hold near $45 a

barrel. many expecting a decline. let's get the julie hyman for a closer look. oile: we are indeed seen plunge back. we are getting a decline that is larger than estimated. it's a drawdown of 2.3 million barrels last week. it looks like we still saw a build in gasoline inventories however. that was sort of the fly and the appointment last week even as we saw a drawdown in crude. we saw a built in gasoline and that caused oil to drop. let us see what happens this week. distillate inventories down to 214,000 barrels. crude oil fell 2.3 million barrels week over week. this is a ninth straight week that we have seen a drop in inventories. there not been a street like that since 1982 -- there has not

been a streak like that since 1982, so this is pretty unprecedented. gasoline inventories climbing and distillate inventories dropping 214,000 barrels. we have seen oil move below its 100 day moving average this morning. ,nd reaction to these numbers remember i said a few moments ago that we had seen oil climbing from the bottom. it is now dropping back down again. at the moment, oil is down 1.7%. i will be back to give you the latest in terms of what we are seeing an and reaction to these numbers. it is the driving season. why aren't more people driving? vonnie: wire traders surprised week after week? let us check in on bloomberg first word news. the u.s. government has

launched a huge asset seizure case involving the malaysia sovereign wealth fund. prosecutors are seeking real estate, art, and proceeds from the willful wall street -- " willful wall street" movie. is under investigation. the teenage afghan immigrant who attacked train passengers with an ax was inspired by islamic state. he probably acted alone. the attacker wounded five passengers before he was shot and killed by police. the president of taiwan is urging structural overhaul to fix the countries slowing economy. conventional monetary and fiscal policies have limited impact. he spoke at a financial forum organized by bloomberg. taiwan's economy has contracted for three quarters in a row. the hollywood writer-director

behind "pretty woman" and the days" has died. gary marshall was 81. "happy days" was i a nostalgic look at the 50's and 60's and he also created the iconic "laverne and shirley." dayal news 240 hours a powered by journalist in more than 120 countries, i'm alisa permitting. vonnie: revenue from wealth management and bond trading beating expectations. net income came at $.75 a share. it beat forecasts of just $.60 a share on average. now,s are up on the news so let's dive deeper into the numbers. we're joined now by security analysts who has a neutral rating on the stock. given that most big banks have reported, what is your take away overall?

what does this hold for future quarters? >> i think that you take away is that while better bond trading had a little bit better balance sheet expansion drilled beats relative to what were reduced expectations coming into this. returns on equities or the key measure of profitability remains pretty compressed. in the absence of a more robust revenue environment, cost-cutting is going to be a key strategy to improve profit ability. vonnie: trading revenue has been good at the major banks, much better the next rotations. can that continue? what was that a factor of? eric: i would say it's a little unclear. one of the key drivers of the big increase from last quarter to this quarter was all the volatility created by the brexit vote, which helped fixed income trading and unsurprisingly foreign-currency. i'm not sure that that particular catalyst will occur. generally speaking, it seems

like the overall macro environment is a little supportive of trading revenues, but they are not the driver that they once were. brexit, young about mentioned that having an impact on the trading revenues. what impact do you expect it to have on quarters going ahead now? is it likely to be a more negative impact because of the lower rate environment than the global bond yields impacting banks that way? eric: that is a great question. i think it's a little unclear. the overall compression in long-term interest rates in the united states and globally is going to be a long-term revenue generation headwind for the banking sector. the other factor is that it is just too early to know what it means for cost. these companies attention to need to staff other regions outside of london to deal with continental european business. i am glad that you brought up cost-cutting again because i'm interested to know how much more they can trim the fat as it were and which banks

have actually more capacity to do that. eric: certainly many management teams have a dress this. morgan stanley reiterated their goal of removing a billion dollars of costs into next year. i think they are a third through that process. bank of america highlighted 3 billion in cost that they are taking up. out. that theme since 2010 is certainly getting long in the tooth. we imagine that we are closer to the end of that trend than the beginning. vonnie: you covered many of the major banks and you have by ratings on several of them, including goldman sachs. not j.p. morgan chase, interestingly. what is your deciding your preference here for the likes of goldman sachs? eric: i think it's a couple different things. generally speaking, i prefer names were i think there is earnings upside irrespective of improvement in the broader macro

environment. goldman, that strength has largely come from their strong m&a practice. they put up almost two times the revenue of competitors in that area. i would see that that steam is probably starting to the diminished. jpmorgan is a well-run company, but goldman sachs is better than their peers. nejra: eric, thank you very much indeed. pimco is getting a new ceo -- emmanuel roman. he faces new pressure at the bond fund. is he the man for the job? that story next. this is bloomberg. ♪

vonnie: you are watching bloomberg. i am vonnie quinn. nejra: i'm they rich a hitch and this is your global this is report. vonnie: india's prime minister is ready to let the company opened its first retail store their. re. isra: the emissions scandal not slowing down volkswagen earnings as they beat estimates. vonnie: we are looking how the revisedoat has

independence talk in scotland. nejra: we begin in india where the premise for is clearing the way for apple to open its first retail store in the country. that is according to people familiar with the matter. that is after tim cook visited india for the first time in may. willhopes that it help cap the fastest-growing smartphone market. volkswagen is recovering from the emissions scandal with earnings better than expected. performance was improved at its namesake car brand and vw is starting to benefit from cost cuts. vonnie: time now for our bloomberg quick take, where we provide context and background on issues of interest. scottish nationalist may have failed in their 2014 bid for independence, but that was not the end of the story. they have grown in strength and numbers and now have another chance to push for a split from the united kingdom. this quick take video explores

the resilience of the movement and how brexit boosted the scottish case and why some say that's about thing. -- that is a bad thing. >> scotland claims credit for giving us television, penicillin, and some of the biggest ideas that shape how we live today. it is also home to an independence movement that refuses to die. in 2014, scotland was on the ropes. did they want to break away from england and the rest of the united kingdom? 55% voted no and that was less like an end than the start of something new, a change in scottish politics. a large part of the reason why scotland rejected independence in 2014 was fear -- fear the economy was not strong enough to strike out alone, fear jobs were risk, fear ties to the european union would be cut. fast-forward forward to 2016 and when the u.k. voted to leave the

eu, overwhelmingly scotland voted to stay. >> scotland faces the prospect of being taken out of the eu against are will. i regard that as democratically dramatic. >> there is widespread support to bargain on behalf of scotland. partyottish nationalist exploded after the 2014 referendum. to a whopping 115,000 in april this year. election,15 general the s annp one all but three seats, making it the largest political party and now brexit is giving and another boost. is this scotland's chance at independence finally? here's the argument. nationalists say the united voted forat scotland

two years ago is not the united kingdom now. brexit changes everything. this is the opportunity the movement has been waiting for, albeit less than ideal circumstances. >> this referendum is clearly an option that requires to be on the table and is very much on the table. >> while brexit may have split up the possibility of another run at independence for scotland, it has also made the prospect of it far trickier. opponents say the economic case for independence is even worse now than it was in 2014. since scotland's economy would sea oil,inned by north they say the plunge in crude could -- to risk you makes going alone to risky. even if scotland gets far in independence, it will still need to convince eu member states it is worthy to join the club.

it is uncertain how ecstatic members might be if they are battling separatist movements of their own. vonnie: you can read more about scotland and all of our quick takes on bloomberg. that is your global business report. had to bloomberg.com for more stories. nejra: the giant bond fund manager pimco is getting a new a manual roman. replaceke, roman will pimco, roman willan wil replace douglas hodge. for more, let's bring in john from los angeles. great to have you. yet heard the numbers there could is this decision that alliances not happy with pimco? john: we have heard a couple

months ago that they were considering looking for somebody to replace douglas hodge. it has been a really rough time. you have also heard that maybe hodge is may be facing burnout. it is a really job that he has had to face. he came in after mohamed el-erian abruptly resigned. the reason mohamed el-erian resigned was because of feuding between him and bill gross. hodge inherited a lot of turmoil. and the larger landscape of money managers is changing. pimco is actively managed. their fees are higher than vanguard. you have automation coming in. they are facing a lot of pressure from many factors inside and outside to adapt and figure out a path forward. roman what makes manny the person for this challenging job? john: he is got a really diverse

background. right now, the man group, they are the world largest publicly traded hedge fund manager. hedge funds is an area and other alternative assets where pimco might grow. they've also done some acquisitions, which might be a possibility for pimco. or ae he came to man group subsidiary that was bought by them, he worked at goldman sachs for 18 years. he got his mba at the university of chicago. he is french born. he has got a really diverse background and brings a lot of different experiences and multiculturalism, you might say, to managing this money. it's a european headed firm because pimco is owned by a german insurer. vonnie: if you did into my terminal, i have a chart of man groups stock price over the last five years. was goodout that manny in certain ways.

what would he look to do to flex those muscles a pimco? john: there are a lot of asset areas where pimco is struggling to diverse if i into. right now, alternative asset at billion ofnly at $25 their $1.5 trillion assets under management. that is cruell clearly an area they can grow. they tried equities and that did not work out for them. they had three or four different stages where they became a stock picking from, but culturally it didn't work or whatever product they had to offer just didn't work. i think that they just have to figure out some way to bring themselves into the new 21st century. as bill gross said and other people have said, there has been dhis long forty-year perio where bond prices have gone down -- not on prices, but bond

rates. interest rates have been going down, down, down. there's got to be an end to that sometime. they have enjoyed this long ride whereupon prices and bond values have gone up as rates have gone down. it is this era that has been slow to turn around. everybody is trying to figure out in the money management industry how best to adapt. vonnie: john, thank you. you can read his story on the changeover. it's very interesting on blaber.com. -- bloomberg.com. bill ackman is said to be maintaining his bet against herbalife. he plans to maintain it according to a person familiar with the matter and will push regulators outside of u.s. to investigate the nutrition company. this comes on the heels of a settlement with the u.s. federal trade commission last week, which gave his effort according to this person.

herbalife shares are trading in the last few days a spike. today, herbalife is up 3/10 of 1%. nejra: thanks, vonnie. they were actually at one point at their highest since 2014. still ahead, singapore becomes the first southeast asian country and only the fourth asian territory to be chelin.y mitchel this is bloomberg. ♪

ichelin guide is prized by foodies and is considered the abortiv authoritative voice on dining. has earned the

distinction and the inaugural 2016. michael ellis explains why singapore. >> we have been developing the guide outside of europe now for the last decade. we have developed, first of all the united states. then we went to japan. we have hong kong, macau. singapore is really the logical extension of our expansion. awarded.e been what is that? michelin is not just about expensive food. that's not what people realize. >> the stars are the most visible part of what the guides they only represent 10% or 15% of a given guide. just being in the guide is important. we look for five criteria.

the quality of the ingredients and the freshness of the ingredients, mastery of cooking technique, thing should be rather undercooked or overcooked, harmony and equilibrium and the flavors and the textures, the chef's personality expressed in dishes, consistency over time, and value for money. those criteria are really what we use. it's only about what's in the plate. and have been very critical say that the selection does not represent the array of foods that you get in singapore. >> they say who are these people coming to judge us? do you hear those comments often? >> the guide comes out tomorrow. we have a much larger selection coming up comes a we will wait to see what people say when that comes out tomorrow. i think we have been doing what we have been doing for now 115 years. we first came out in 1900 and france. we have a unique inspectors. that job is unique in the world.

they are full-time salaried employees. they are food experts. most of them have gone to cooking school and are often former chefs. they are anonymous when they eat and they always pay their bills. we feel that that gives us the need to really be able to explain and express ourselves about what inspectors find. >> there is also the michelin curse because those with stars really happen to raise prices or lose customers. what is your own thoughts on that? >> in my experience, i get to meet a staff who is not wanted to be part of the michelin family. the michelin guide has unique ability to put an international spotlight on a dining establishment. we have our methods. we have our traditions. we have what we have been doing for over a century.

world, that is appreciated and recognized because we are independent. vonnie: that was michael ellis. you can read more about luxury on the bloomberg. i believe you have been to one of those restaurants. nejra: i have. i am part southeast asian and i can vouch for the stores. is a dinnertime yet? [laughter] coming up on the european close, the ecb begins their two-day meeting. we will look at the delicate job for mario draghi as there is divergent views on output gap and employment. let's head to the european markets. the stoxx 600 -- we have seen that moving higher today as we head for the close. this is bloomberg. ♪

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vonnie: it is 11 a.m. in new york and 11 in p.m. in hong kong. nejra: there are 30 minutes left

in the trading day in europe. you are watching the european close on bloomberg markets. we are going to take you from cleveland to new york to london and cover stories out of frankfurt and is tumbled in the next hour. here's what we are watching. a week after taking office as uk prime minister, theresa may is set to meet angela merkel in berlin. why the german chancellor says there will be no negotiations with the u.k. until may triggers article 50. nejra: donald trump -- vonnie: donald trump officially becomes republican candidate for president.