>> good morning from bloomberg's european headquarters in the city of london. this is "bloomberg daybreak: europe." these are today's top stories. volatility source but u.s. futures are pointing higher. manus: traded talk. the trump administration is said to be pushing for a preliminary master deal by next week. anna: changing tips and apple is said to be planning to put his own chips in mac as early as 2020. spotify goes public today. ♪

anna: good morning, everybody. this is "bloomberg daybreak: europe." i hope you had it good long weekend if you got one. what has been happening in the asian equity session. it is concerns over technology or trade tensions, something is taking the edge off of asian equities, but not by a great deal. mentioning the technology stocks, takes me back to yesterday and what we saw in the nasdaq yesterday, down by 2.9%. this is the biggest move we saw in the u.s. major indexes. whether it was the tweet about amazon from president trump or elon musk tweeting about his own company or intel. apple is said to be going its

own way on the chip story. we saw another leg down in the technology story. put the dollar in here because we heard from the rba in the last hour or so. change -- gavete no change in its interest rate. very good morning and welcome back. hope you had a good easter break, not too much chocolate. yesterday was a very tough session for the market. don't blame it on the fangs. we broke the 200 day moving average. it is the worst start to april since 1929. even i don't remember 1929.

that was the worst start to april. it is a new quarter and we are battered and bruised by the fangs, by those tech stocks. we lost $2.3 trillion of value in february and march. this is the first quarter we have seen a loss. this was donald trump's best trend. he has become enemy number one for tech. tech could be a four letter word. not that i ever use those kind of languages. anna: absolutely, never. that piece is really fascinating, wasn't it? trying to find the source for the next financial rises, could it be in technology stocks? perhaps we get a reprieve for at least a day. we have nasdaq futures up by .4%.

what is coming up on the program and what is coming up on programming here at bloomberg television? plenty to look ahead to in today's show. we have a former member of the bank of england's monetary policy committee. later today, manus is going to be sitting down with the uae's minister of energy. lots going on here on bloomberg television. let's get to bloomberg first world news. good morning, juliet. e: in the u.s., the trump administration is pushing for a preliminary deal for the summit next week. the cabinet ministers are set to me in washington and to try to achieve a breakthrough. they say the white house wants leaders from canada and mexico to join in unveiling a broad lines of an updated summit packet. technical talks to hammer out

the finer details and legal tech could continue. the trump administration has announced its fuel efficiency regulations for cars and light trucks. the beginning of a process sought by the auto industry. it willwas also saying look at the waiver for california to set its own tough admissions rules. -- in missions rules. ssions rules. the prospect of pigeon -- putin visiting the white house is --ely to sharpen

france is bracing for cancellations to train and flight schedules as unions push forward with protests imposing the president's plans to overhaul the statements of some workers. only one in every a long-distance rains running in five due to depart today. passengers are encouraged to limit travel. five due to depart the bank of japan is offering a rather negative view on cryptocurrency with a downbeat q and a for those seeking information. a webpage asks where the bitcoin and others can be considered money, whether profits can be made and whether they can be hacked or stolen. --overnor has

global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. you can find it more stories on the bloomberg at top . that tech selloff from the u.s. flowing through to asia. some tech stocks in hong kong and apple suppliers in taiwan. important to know it is certainly not the selloff that we saw when the nikkei was down by over 1%. australia's market actually closed fairly flat today. we know that the rba led the official cash rate on hold. one of the worst performances down by .6%. hong kong the stocks have actually erased all of 2018's gain. the movers some of we have been watching, the likes of sony, nintendo, samsung.

provider uptronics by almost 10% in tokyo. report in japan is saying that a shareholder is likely to pare its state. mentionedide, i australia's third-largest energy producer rising by over 60% next to a $10.3 billion takeover offer. manus: thank you very much. stocks arean declining in selloff is heading over those much favored technology stocks. the s&p 500 finished below its 200 day moving average. that is the first time since 2016.

show with the worst start for u.s. stocks in april since 1929. thatave had time to digest anna has been eating easter eggs, where are we? is it tech or trade that is busting these markets? mark: it is both. i think both will be ongoing. thatll, trade is a story we know will take several weeks to pan out. we will have some positive headlines in that time and some negative headlines. eventually, this may pan out that negotiations are not a war and that may be some compromise that does not greatly hinder global growth. we will not know that for several weeks. there will be lower conviction and that is bad for equity markets. on the tech side, there are a load of micro-stories of feeding in. the fact that suddenly earnings are a threat of being downgraded due to increased compliance and

regulation, that is weighing on the macro as well. the tech story seems liable to play up for another few weeks to whether president trump is likely to do something about increased regulation. anna: we would hear a little bit more about regulation. how much is this still an equity story and how much is this infecting other assets? mark: at the moment, it is very much an equity story. what is amazing in the last couple of months is overall, fx has been relatively stable. we have seen in the yen search, but other fx markets have been remarkably stable. that is probably a good sign for longer-term heard it shows that when we get past these stories ultimately, tech, we can probably start resuming a more positive spin on general brought assets. we are seeing some weakness in

commodities and it does not appear that the credit cycle has turned. there are some assets that are reacting. mark.thanks very much, joining us there with the latest on the markets. let's talk broadly about this same thing. it is not necessarily affecting other assets to the same degree. how do you view this? this selloff we have seen and technology. how long does this last? julian: it should last 60-180 days depending on how long for both sideske to come to the table hopefully come up with an agreement. anna: you think there is room for a negotiated solution here? julien: i think no one has an

interest in seeing the escrow -- situation escalate and there is a strong push to get to the negotiation table. those are just negotiating techniques in order to get around the table and find a common solution that we believe should not be any worse than what has been the forward so far. that have a chart here shows some attention and some money markets and also high yields. this has been on the rise. is 7708 if you want to pull it up on the bloomberg. en: so far it is very much an equity story. it has not spread out to any other asset classes.

we think that is going to be the case. other things have been affecting whatarket, talking about is happening in tech as well. it still very much feels like an equity story. there is not a risk of contagion at this point. manus: does the red headline that is coming in before we continue this conversation, a shareholder is selling 269.9 million shares. that is one of the japanese government-backed incj's of , stands for innovation network of japan. we will certainly keep you up to speed with anymore news flow on that. renesas pledges the most in 10 months on that news that the

incj is paring their stake. in terms of the global market, we have a couple of columnist at bloomberg and one of them is a cracking columnist. tech could soon be a four letter word. what he is or four into is that tech is much left, it is hugely old, hugely influential in the industries, but it could see the specter of regulation as the banks did faced down the barrel of that in 2008. trying to determine the locust of the next bear market, is tech the locust of the next bear market for stocks? julien: we don't think so. tech is going to a soft patch, the moves mentioned, of the we are seeing are maybe outside for the actual impact that we are going to see on earnings. i think we just need to take a step back and realize what is

going on. you will see more and more regulation from the industry. that seems normal. nothing really to worry about. nothing that will country lever strain the company from growing and we still expect the sick growth coming out from this sector. goldman sachs said they are surprised by the amount of protection that has rolled off the board. broke the two-year trend line, the 200 moving average is gone. would you advocate spending money on protection? i imagine it is quite expensive at the moment. would you do what goldman suggests? would you agree and by of a bit of protection or is it expensive? think we would

necessarily advocate to buy protection because of the higher volatility environment that we are in, that creates opportunity to resist exposure and maybe gain exposure and a smarter way. whereby, you can replace your lower exporter by a combination of export traders, because at the end of it, we believe this market has further to run. advocating to necessarily by outright protection, i want to keep my upside. i want to keep the exporter to this market. strong i think there is the where the volatility dynamics are actually playing in favor of investors at this point. manus: we always welcome the brave on to daybreak. juilen stays with anna and myself.

the white house is said to what a preliminary master deal by next week. we take a look at the chances of the agreement. anna: later, train pain. france braces for transport chaos as unions strike against the president possible forms. this is bloomberg. ♪

♪ manus: it is about 9:20 here in dubai. tech.y ride for a bumpy ride from trump in regards to trade tariffs between the u.s. and china. there is no call in the market storm on trump's audit decision-making. markets remain chuck -- choppy. i love to find a bull's-eye. anna: interesting though that we

have seen this selloff in asia continuing trade equity futures are pointing just a little bit higher. this is the picture across asia right now. certainly see some weakness humming through the shanghai market. uilette: apple is said to be planning to use its own chips and matt -- mac computers beginning as early as 2020 replacing and tell. the initiative is still in the early developmental stages. that comes as part of a larger strategy to make all of apple's max, -- macs,ding ipads more efficient. tweeten must's bankruptcy

came with cash reserves under pressure. tesla may need to raise up to $3 billion because the slow build has learned returns on investments at the company has made. tesla is excepted to say that the place is still below target. that is your bloomberg business flash. anna: the trump administration is pushing for a preliminary master deal that can be announced at the summit in peru next week. that is according to three people familiar with the talks. he wants leaders from canada and mexico and updated pack for the summit. talks to hammer out the more legal details could continue. what is the trump administration hoping to accomplish with a

master deal and why is it significant at this time? jodi: the trump administration really wants some good news, or news that the world is going to want to seem to embrace on the trade front. the recent weeks have all been and the volleyfs between u.s. and china on trade and on tariffs. this is obviously having an effect on the market and the trump administration wants to change the tune here. if they can get an agreement, it would seem that they were moving forward on trade areas. of course, there is a lot of work to be done. the parties are far apart and they have been negotiating a long time. this will be the eighth round of such talks. just weeks ago, the trump administration have been singing a different tune that they were going to walk away from the talks if they did not go more in their favor. president trump famously on the

campaign trail had talks against nafta and said it was a bad deal for the u.s. has -- had negotiated. what aree question is the stumbling blocks? we interviewed someone a headset trump has been absolutely consistent. what do think the biggest stumbling block would be getting the deal over the line next week? -- jodi: onehe big of the big stemming blocks is that the u.s. has pushed for there to be an increase in the amount of materials from north america. the cars that would be coming from north america on the world stage, this is something that has been very contentious with other countries and it is hard to negotiate. there are a lot of technical details but still have not been ironed out. the administration itself is telling us that they would

really be talking about a broad outline that they would want to try and announce in peru, and then hammer out some of these things later. of course, the devil is always in the details. they seem to be far apart even on being able to announce that broad outline. manus: the devil will be in the details are in -- details. let's bring in julien. this could be the roadmap to success. how important when a nafta deal be to reset our angst over trade wars? a new development we will see on that front will definitely be positive and i the model's death worried about the possibility of a trade war. as long as we see progress being made, i think the market will respond positively.

that could be the first step in calming down everybody. anna: this is pulling out from the isn survey. this is pulling out the factory price dates and it shows concern about prices. are you concerned about commodity prices as a result of trade tariffs? not really, if anything it would bring up the inflation of it. we have been dying for inflation for so many months and years that seeing some of it will not necessarily be a bad thing. the key question is can companies pass on those costs to their customers? our review is that the global demand feature is just a strong enough that you can see that being passed on with a healthy backed up. anna: the careful what you wish for. ulien stays with us. trains and planes face disruption today.

we are live to paris for the latest on a train situation and a strike. we will have the details. this is bloomberg. ♪ retail.

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♪ anna: this is bloomberg daybreak: europe over in tokyo, 2:30 in the afternoon. the equity market selloff that we saw around technology stocks in the u.s. yesterday seems to be at the moment mostly it and equity story, not affecting other assets to such a degree. digestion, wes of have been open sunday and monday. we could have adjusted to that. this is how the futures are looking. the s&p 500 dropped below the 2600 level. you are now calling our way

back. goldman sachs says it is a little bit time for hedging. they say it will be a bit of a bumpy ride. up 64.04%.is could things become a dirty word? going to be a pretty busy week -- we have not even them interesting to see issuing -- the reserve back of india gives its latest policy decisions on thursday. two very different stories in terms of the decision-making a what is going to happen in emerging markets as we see the fed on the move.

program,s into the jobs weekend. the economist at looking for another solid month in terms of gains and employment. the feds are making potentially a mistake in terms of understanding the real natural rate of unemployment. i read a couple of pieces over let's get the latest on the markets. the selloff continues in asia as you can see regionally, we are seeing a sea of red. tech markets. the nextswitch to

chart because the first quarter was a punishing one for global equities over all your it was the worst third quarter for global equities in almost two years. youquestion is where could have hidden if you are going to hide in the first quarter. the answer is emerging markets. we did see some gains and emerging-market equities whereas we saw losses in the s&p 500, and the topix, the stoxx 600. that was summer to hide as was gold. gold having a three straight quarter of gains. we are to see gold top 1400. if it did that, it would be the first time since 2013.

this isas one space showing money pouring out of ttx tracking both high yields and investment credit. tradingbiggest investment trade credit, this was the worst outflow are in a quarter ever. you really want to walk away. you have thousands of french will workers to go on strike this week for two out of every five days. the strike is a response to the government proposal to expand competition.

perhaps to really have an impact. do you expect this will be a major strike? expect the millions of people traveling by france --ry day, as much as the half of the employees will be on strike today.

the reason behind all of this is that the french government wants to reform the railway. --y want to end apparently they have a job for life and the president wants to end this. anna: how is he going to fair than taking on the 75,000 or so employees? what does this mean more broadly for the liberalization of the labor market of which this is a part? this is a real major test. we have 200,000 people in the streets protesting.

this time, with this rolling series of to a strikes they arek, of course hoping that the government will back down. n'sthe other side, macro government is thinking that the public will be upset with having a transport effective today's french are% of the actually in favor of these reforms. anna: thank you very much. joining us there from paris. julien is still with us on set here in london. this is just one part of the french reform story, the french reform agenda. how significant will this challenge to macron be?

chance to bes the immune from's strikes so far, but at some point, he will have to face the street. fairly determined and going forward and moving the country forward, therefore, although the month and a half of strike that we are likely to see could be a stronger impact on the economy. broadly speaking, i don't think that changed. anna: i have a chart here. this shows the global crack perhaps emerging in the pmi story. -- other indicators we can look at. you're quite optimistic about what european equities could achieve.

juilen: at the beginning of the year we were a bit more cautious than last year. now, what we see is just a normalization of seeing what the .arket is doing hopefully the april data will --nforce manus: you make a very clear distinction here.

it is almost like a vicarious relationship statistically and perhaps not just a negative for europe. julien: one of the reasons european equities have struggled is because we don't have this exposure to tech. tech has been the main later everywhere in the world. now the tech is showing some , it puts europe and a much better position. it is not that we are calling for tech to collapse, but this moderation and leadership and other sectors taking the leadership after tech has been almost a so leader of this --ly, julien, thank you so much for being with us. spotify will begin trading today at a price yet to be

the opening price will be determined as the price rose in. let's start with the minutia at first. >> the stock market will open and their shares will be out there working. this is not the classic book building we might have seen in the past. there are a few possible reasons. they did have this convertible debt which was about $1 billion worth. every month they do not list the

amount that could be converted. by announcing that there was not quite an ipo, it causes more disagreement. that gave them a bit of bargaining power. employee, a spotify there's a chance that a lot of your pay is tied to stock options. all of these employees have been on the hook for a long time hoping they can finally cash in, they now get an opportunity to do so. good morning to you, alex. i look at what elon musk did. tree, this is surreal coming from the ceo. car ceo, he has a fatal

crash on his hands and this is what he puts out? what do you make of that? this seems to be a certain amount of town of deafness to say the least. there's been a short amount of interest. we are very bullish on the european car industry. aey see the ability of volkswagen to flip a switch and dropped $25 billion. clearly coming -- tesla is clearly coming under a lot of pressure. liberty targets they set themselves. they are ambitious and it speaks to what elon musk has. that is evidenced by the nature of these tweets. the arrogance of it. >> looking at the regulatory

concerns around technology, we heard from president trump over the weekend around amazon. this is something in the past and that he is talking about -- about again. where does this regulatory single next? >> was going to cook. facebook, has been largely unregulated. he said by default he would prefer there would be little or no regulation. he has looking -- been looking at things developing recently. he said perhaps there is a need for an amount of regulation. when you look at amazon, they do not like to be called a tech company. that to be a very different story. they like to become a result company. there is a certain amount of

bouncing what they want to be considered an president trump is perhaps leaning on a little bit of political capital. regulation is a huge issue with tech. we are seeing a kick in a bid in europe. to the extent to which the u.s. is being followed the narratives, it is -- init is fascinating how the you can't does not want to be seen as a retailer but a tech company. whether thessue is u.s. postal service is really making money and whether that is true or fake news. alex, great to break down the tech sector this morning. graced for no break the deal. the eu is set to warn the u.k. banks to prepare for the worst case scenario for finance. we discussed.

>> and, april fool's. markets selloff after the easter break. volatility back on the rise. ♪

>> this is daybreak: europe. . a: apple is said to be put to use its own chips and mac computers beginning as early as 2020, replacing processes from intel. according to people familiar with the plan, the initiative is still in the early developmental stages that comes as part of a larger strategy to make all of apple's devices, including max iphones, and ipads work more similarly and seamlessly together. they said we do not come out regulations about customers. linda cook has said she seeks to

expand in asia and africa after making a 10.3 billion u.s. dollars offer for australia's third-largest energy producer. she said harboour would grow santos. harbour duegranted diligence after receiving the indicative prin proposer. asal. is your number business/. >> the european union has warned not to rely on a brexit transition deal. the times reported the ecb instructed companies to prepare scenario.eal dk economy is sending signals. is following but consumer spending remains stubbornly low. will the bank of england follow the fed? falling at a level higher than

the bank of england wants it to be/ training us. formering us here is the bank of england mpc member. give us your thoughts on where inflation is. do you think we have peaked? could it so the higher from here? >> i would not be surprised if it information wobbles around a bit. we've seen over the course of the last year or so. bit early. that may have brought forward some price increases into march that would have otherwise taken place in april. it was quite gradual so all not be dramatic but it will gradually ease the squeeze consumers have been feeling. >> this is a good chance to paint a picture of that squeeze. it shows in the way to the u.k. inflation rates in the fact that it has the dennis coming down. it wobbles around a bit. we will see.

it shows that inflation has been higher than wages but it still seems to be correcting. as of the direction of those lines that the bank to come for it can raise interest? >> i think there are two reasons, probably three reasons why the bank might raise interest rates. one is a longer-term requirements to try to get interest rates up. when i was on the team and we cut interest rates, i did not think we would be sitting here nine years later not having significantly raise them. the world economy is quite strong. the consumer squeeze is starting to ease. growth aboveraise inflation. we're not going back to the very strong consumer spending growth that we saw from 2014 to 2016. >> good morning to you.

from some global perspective i want to try to understand what might be happening in the psyche of the central bank the moment. we now have tariffs between the united states and china. give me a sense of that kind of hubris and what it does with the compensation in the fcc. >> you can always find a reason for not does a reason for not raising interest rates. we have seen a lot of that over the past four or five years. looking back, 2014 looks like a bit of time to raise interest rates but they put off then and they will put it off in subsequent years. there also is -- there are always some worries. the globala look at economy as a whole, the global economy is really quite strong at the moment. we have all the three main engines of the global economy. they are growing reasonably well in their own terms.

there always be a little bit of nervousness around it. more important issues is strategically central banks do need to move interest rates up from urgency levels. we've seen it done relatively well in the u.s. i'm not sure it will hamper growth of it is done gradually over here as well. >> and this is going to be the first year that net money into the global markets from the central banks is set to turn negative. are we in much better shape to handle the return to a new normal, where is new normal in terms of the terminal rate? what can we handle? we can only look at two or three years ahead, but i think central banks in the u.s. and u.k. should be thinking of getting rates up to summer between 2% -- somewhere between

2% and 3%. the u.s. is well down that path be possibly it will over the course of this year with rates of over 2%. at least the interest rate is covering the rate of inflation, assuming it is around the target of 2%. i think the worry you will have about the bank of england is they have shown a lot of nervousness about going on that course. the nervousness translates into the financial markets, that surfing nervous as well. >> we have been talking for at least three minutes and we have not mentioned brexit. let us do that. we started by talking about the times newspaper story whether they were warning things about not relying on the transition agreement. some say the arrangement is significant. others say you cannot rely on that. how significant is transition for you? >> is transition means we keep,

more or less, exactly where we are in full end of 2020, that is reassuring to business to some degree. they're also concerned about what comes after that. big investments that businesses are making, whether in the financial sector are manufacturing, often will be bid in 2020.eir activities the fact that we have a transition until the end of 2020 is helpful but it does not remove all the investment uncertainty. i voice spoke the financial sector is one of the more vulnerable sectors, even though it has very strong underlying fundamentals. there are probably more commonality of interests and getting a good deal on a good straight but perhaps it is hard on services. >> thank you so much for being with anna and me this morning. in april boost on the g10 currencies base. what happens next is inescapably linked to the bank and the u.s..

u.s. tech stocks got flagged. we will take a look at the .arket moves you this is bloomberg. ♪

>> good morning from dubai. this is bloomberg daybreak. >> i am anna edwards live from bloomberg's european headquarters. >> stocks tank in asian equities. and futuresource, are pointing to hire opened. sorts for the trump administration are pushing for a preliminary have to deal. the peso and the canadian dollar trade higher. manus: apple is said to be macsning for its chips in as early as 2020.

spot if i goes public today. today.ify goes public ♪ manus: looking to daybreak europe. live from dubai and london. equity markets at the moment, you have a little shift here. we are playing catch-up game with the united states. we had easter vacation. we are trading the gap at the moment. no, in the markets. look at the bottom. u.s. futures. 23554. we broke the 200 day moving average. it has been the worst start since 1929 for april in the markets, so we are playing the catch-up game. the global markets look supportive.

this is less contaminated by tech. much less contaminated by tech until the other equity markets. you want to buy yourself some protection. close-up of the bond markets. equity markets looking into the catch of games. one markets also have to play. your thing this flip around in terms of the bond market and the lat. -- oat. atasury markets are looking a higher open. you are seeing this move in the bond market. a dip in prize, rising --p pircrice, rising yields. where do we go next? volatility of 20% but in those january has been anna: interesting to see you talked about it being pretty flat is morning and they are. some of the future is coming off a little bit compared to where we were an hour ago. worth pointing out s&p and nasa

futures pointing higher by just about 0.2 percent. all that playing into the asian session and went down but not by a great deal. it is a concern about trade. indeed concerns around technology. ,that is why we put the nasdaq from yesterday, down 2.9%. this is yesterday's picture. perhaps a drying temporary line in the sand. concerns around tesla, intel, amazon, facebook continuing. lots to talk about intech. the obvious dollar is there as well. the are the doll -- aussie dollar holding well. inflation picking up gradually but likely to remain low. later today, we will be sitting down with the uae's minister of energy. let us get a bloomberg first word news update. juliette: the trump pushingration has been

for april a minor to announce that a supplement next week. according to three people familiar, cabinet ministers are trying to achieve a breakthrough. they say the white house will join in unveiling the broad outlines. alks to hammer out the finer details could continue. hastrump administration announced that fuel-efficient marks are cars and trucks are too stringent. the environmental protection agency also said it was considering whether to revoke the waiver that allows california to send its own tougher admissions rules. that decision drew criticism from consumer and environmental groups.

donald trump and vladimir putin have discussed holding a summit at the white house. there had to be standards confirmed the two leaders to have talked about meeting and potential venues. the prospect of food and visiting washington is likely to sharpen the visions -- divisions over relations with russia and tensions over alleged kremlin meddling in the 2016 on election. france, who is bracing for cancellations to train and flight schedules, as unions post for -- push forward with protests. the president has plans to blo-- lateonly one in every long-distance train running and one in five to the park today. they advised passengers to postpone trips and avoid going to stations. airfrance visit the plants operate 75% of its flights today. the crown prince says he

recognizes the rights of israelis to have their own nationstate. sticking to the atlantic, he said israelis and palestinians have the right to their own land. he added there needs to be a peace deal to ensure stability for the region. he is on a three-week tour of the u.s. to promote his efforts to shift his country away from its reliance on oil. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg. when you look at the world map function focusing in on asia, it is pretty rare. they have this tech spreading through across and asian equities. you can see in china a lot of companies in the large tech stocks. small cap stocks under pressure. you have that apple supplies, the likes of $.10 in hong kong. also a lot of the electronic makers in japan under pressure.

changed overlocks the weekend so they are now finishing up the session. in hong kong, we saw all of 2018's gains a race. renaissance stocks confirming in the last hour there is confirmation that some of its urges shareholders are going to sell as many as 269.9 million shares. that is the reason behind that big drop. santos is the third-largest energy producer and australia. this after we heard yesterday that china is set to resolve those issues. biggestbloomberg the players will be china in the south pacific.

anna: thank you. hearing, asiann the climbing.en follow silly sword. then i set down by 2.9% in yesterday's session. the vicks index jumped 18%. manus: we know there is a vicks index. white house is pushing for a deal on nafta. that is according to three people familiar with the talks. cook'slose get jeremy interpretation on events. good morning. lots to put into the mix and digest.

but as the hell the dollar response to the various threads threatening the equity market. whether they are trade tensions or a top -- a selloff. of course, the dollar weakness remains a factor in these markets. how long does that continue? >> we see the dollar taking another leg lower as the trade tensions racket up. not calling for a full-blown trade war but the velocity of this may be increasing a little bit. we saw from the isn the prices paid. to rige already starting up as a way of increasing terms. how able is the u.s. economy to be able to pick up those price rises? it will have growth a little bit over the course. we hear the fed policy is overpriced a little bit at the moment. generalizedad overgrowth continues.

it leads people to move away from the u.s. public. manus: there is this wonderful relationship. it is between tech and ten-year yields. if you were a betting man at all, this would have you believe that they could come under further pressure. i have one guest this morning 3%.2.75%, we will get there. but this suggests that it could become the angst of bonds. agree, disagree, where do you go? >> this rate is starting to roll over and the markets will continue to remain under way. equities shall the bond space moving forward but they will continue to remain supportive and those higher yields could continue to support the u.s.

dollar. the key thing for tech and the key thing for that chart moving forward is the second day news story about the regulation of tech, and we have seen politics and tech and this is politec h. this happens with facebook and the congressional moves into that. in the grand scheme of things, and makes up a huge amount of these u.s. indices that there will be some volatility in most of the yields at bond curves. a yields crashve as a result of facebook and tesla. anna: that is putting perspective on the side of the technology story. in terms of these comments, we are focusing on the conversation around nafta. link for talking about the political agreements.

in terms of global trading sentiment around it, how would it be if we manage to get a new nafta mark so all of the leaders could go away until stories about it? >> it depends on the ins and outs of the details of the deal. i believe trump may be a little bit bored with nafta it now. i think he may be wanting to get nafta out of the way. his business is used as opposed to north and south. while we would want to get something done by the elections because it may complicate matters further down the line, they have given exemptions and talkingn bombastic about a new nafta and started to roll back. i think he wants to continue to be bombastic and that cannot happen with nafta anymore. east and wet moves start talking about china once again. something within the next month i would not be surprised. manus: a little bit of breaking news here. his is one of our key stories.

we will get some undertakings to the u.k. governments in response to the most recently updated the cma.from -- by this is about the number of institutions and ways and means that they can do with it government. the newspapers, sky, but usually they have. skype leaves the remedy proposals. a new company for sky news. to disney.re that is the current proposal. in terms of trying to get the deal across the line.

of the going to be one big stories throughout the trading day. that is a the best interest of background. but his goodbye to on this market conversation. we were trying to decide this morning to what extent we consider contagion. if you look at the high-yield market, we are beginning to seek a little bit of a ratcheting higher within the high-yield space, this is very contained. volatilities contains. the equity market, not necessarily the bond market. do you agree with that? sky interrupted me. >> i do not think we are seeing signs of contagion yet and we are not saying rich reversals skews.

the outlook moving forward. i'm would be watching this skews is the first indicator certainly and bonds. the contagion story will likely be quelled by the economic data. obviously, economic data has been put aside over the course of 2016 and 2017 in favor of political headlines. more and more ways as they become more and more positive. so, we could outweigh things. if something happens, that is obviously going to be front and center. anna: looking at your screen right now, jeremy, thank you for joining us. the program, we will be speaking

livee property chairman from the bloomberg businessweek event that is taking place in dubai. >> these rounds are falling. what is he going to say? forill have a conversation the first deputy managing director who joined to the bloomberg markets seem in the united dates. you can see that exclusive interview at 3:00 p.m. in london. this is bloomberg.

anna: this is bloomberg daybreak. 40 minutes until the start of the european cash trading day. but as look at where we are on the market at the asian session has been a little underwater brought down by trade concerns on technology. as a result of that we saw in the united it's yesterday, this is what we expect from europe today. playing catch ups with the close

yesterday. we are expected to see selling. look at the s&p futures on the right side of your screen. for in mind the features u.s. markets are picking up once again in the u.s. what is get to bloomberg business/procures juliette. juliette: apple is planning to use its own chips in mac computers as early as 2020. the initiative, code-named cala early sos in the developmental stages for comes part of a larger strategy to make all of the devices work more similarly and seamlessly together. apple declined to comment. intel says "we do not, on speculation about our customers." the world's biggest music streaming service spotify goes public today. lastly, four analysts released bullish research. averageg to data, the

price target said that approximately $193. in 45% premium to where shares are traded and private transactions. but if i indicated the low and high sell price ranges $232.50 from the start of the year to march 14. that is still bloomberg business splash. -- flash. manus: i will pick it up from here. bloomberg businessweek forum takes place here in dubai. the event will cover leaders from public and private sector's to focus on trends, challenges, and solutions in the middle e ast.one of today ' biggests speakers is this man, ack chairman of dem properties. good to see you this morning. what a sight but the marketplace here in divide. they have been gone for six month and have come back. there is an explosion of supply

are, and the question is the regulators doing enough to keep control of the supply side? havethink the regulators done a fantastic job, especially since 2008. interfereey do not much in the supply area. they leave that to the market. they require around -- because we 500,000 units. it is that through percent or 4% growth but we need about dickstein thousand to 20,000 units. this year, there will be another

12,000 units. muchnot think we have too oversupply coming in. i think supply and demand are pretty much at odds. we have seen this in the last couple of years and i think now i do not see further reduction. see it stable. manus: you're calling for stability. the last time we caught up, one of the big things was about your to further equity sales. are you preparing for anymore equity release? any interest in terms of buying equity in the company? i just the best time, the question was, would we sell and the company if the right thing comes for liquidity and the

answer is yes. when it comes is needed to get we are willing to sell that cannot -- in the near term. manus: so no near-term plans. it is a local story and perhaps we can consider localization? i look at property prices in new york, and london they are falling as well. are you looking at international opportunities for the company? >> yes indeed. we have a general launch on a tower in london. we are looking at opportunities mostly in europe and maybe in some parts of the states, especially in the east coast. do you think frank for a summary would go given the brexit conversation?

where in europe are you looking? >> yes indeed germany. frankfurt and munich. opportunities. we are interested in germany very much. what might you consider there to give me some sense of scale? i mean, we typically look at residential. at where the components of offices and retail are. manus: tucked to me about revenues for this year. where are we?talk about the market putting in no further drop in prices, so guide us a

little bit in terms of revenue. single-digit growth, what would you use to say? company, weublic announced the revenues for the last year and we will be giving guidance for 2018 but at the moment i cannot give you any numbers. manus: no concrete numbers. great to have you with us. enjoy the conference. i will be there to in just under 40 minutes. i will join you in person. you want to get into the property market. on the marketsck than we are expecting to play catch-up to the european equity markets. we expect to see something negative at the start of trade, but keep an eye on the u.s. features. catch up here, we will also be

watching sky shares. proposed fencing for sky news. we'll keep an eye about one. manus: let us to all again tomorrow morning and let us see how these markets hold through the day. that is it from in a and me.

guy: good morning, welcome to "bloomberg markets: european open." i am guy johnson in our london headquarters alongside matt miller in berlin. ♪ guy: u.s. tech stocks take a beating again. asia a little lower. europe returning and is lower as well, but not by much. why are havens like treasuri