and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. ♪ francine: t-mobile finally agrees to acquire rival sprint. with the resignation of the u.k. secretary provide traders is another reason to sell sterling? chineseo the market, company shall be could raise up to $10 billion in an ipo but will it create a cash crunch? ♪ francine: good morning and welcome. i'm francine lacqua in london.

these are your markets. the european stoxx 600 is pretty much flak. -- much flat. in a moment, earning seem on the upside. investors -- investors weighing that against the world economy. looking accrued, 67.40. a little pressure on back of possible sanctions on iran. the deadline on the iranian record is may 12. pound 1.3 754. the main story here in the u.k. was the resignation of amber riley. that's with immigration and the accusation that she misled parliament. theresa may has a little bit less of an ally when it comes to softening the blow of the customs union within the cabinet. speaking toill be's

the director of oral assets, treasuries and gold. -- director of royal assets, talking treasuries and gold. throughout the day we will bring you our exclusive interview with the egyptian finance minister. little bit of a treasury carry trend story in that. look for any kind of sub hiking signal. in the u.s., the trump administration plans to extend relief on steel and aluminium tariffs to some countries but not all. speaking to bloomberg, wilbur ross declined to identify which nations would be spared. he said in now so we made right before tomorrow's deadline. he on friday nations have been to negotiate.

joins us from the conference at 1:30 p.m. u.k. time. rudd has resigned accusations she misled parliament. she was the pro-european voice in the government and was the counterpoint to horse johnson. north korea's kim jong-un is turning on the charm, adding pressure on the u.s. president to ease sanctions against his country even before it made significant concessions. south korean president's spokesman says that tim fans -- kim plans to invite foreign journalists to witness the shutdown of a nuclear test site in may, that came shortly after kim pledged complete denuclearization. denmark said it will consider boosting subsidies for electric vehicles.

the government is on fire for a tax policy that is put customers off dying green vehicles. danish sales of nonpolluting vehicles fell from 5000 and 2015 to us than 700 last year. the government will now reconsider the scheme. >> we have a tax incentive for electric cars. willould be bigger and i not deny that. this is about the supply side, so to speak. break, we willr present a package on the bond side. nejra: global news 24 hours a day on-air and at tick-tock on twitter. powered in more than 120 countries. i'm nejra cehic, this is bloomberg. francine: the u.k. grocers

ellsbury -- sainsbury plans to buy a walmart owned rival. stake. will hold a 42% talks with greg lit his will begin today. >> u.k. market has changed dramatically with so much choice for customers in so many new entrance coming in. time, very demanding hence the benefit of combining these great u.k. businesses to create a stronger business that we believe will be better for customers because we can lower prices on the shelf. better for colleagues, suppliers, and shareholders. more,ne: join us now for from our deals team. it's a joy to have you. it's a look at the deal side and m&a is back.

how big of a surprise is this was the rationale behind it? there has been talk that there has been consolidation and retail but i think investors are thinking that this deal will go off well. they are probably seen what he did with our goes when they bought our goes -- what he did with arhgos. o'brien, thatevin was a pitch to the regulators. there are many other discounters in the market so will be so much of a problem. francine: i come early in the morning and a bump in the charles. i say what does this mean for who, and is is the plague and's amazon oregon style the? amazonhis a play against or a play against how the -- against aldi?

it's a play against aldi. they expect the discovers to grow further. we need to get bigger so we can get smaller again. me through this. why is bigger better? that releases, is it better for the supply chain? charles: the basic ideas you can do better deals with your suppliers. people will dispute exactly how much it is but you definitely get basis points off your buying terms from a -- from being bigger. francine: what does it mean for walmart? ruth: walmart is taking a loss of $2 billion on this. this is them retrenching. you have to ask the question about the elephant in the room. is this insane we need to focus on the u.s. market and see what we can do this amazon? francine: does this make it easier for online sales?

does it make it easier for you, me, and ruth to shop online? argos asi think attributes that will be useful for everyone because it is this marks instant delivery system that is ahead of what amazon can do at the moment. , up 8% lastowing year. for all that, no one has yet shown that they can really make money in grocery online and amazon's position in online grocery remains very small even in the u.s.. francine: is this the start of something bigger in retail in the u.k.? or can we infer some kind of consolidation in the industry in europe? ruth: the u.k. is where we are focused.

with all that's happening around brexit, they have been suffering. the u.k. retail has been seen as a struggling area. the question is, what is more since the next? morrison's do next? how does their market position change? it ais going to make different market for them. even if sainsbury is saying now, were not going to increase prices, we are actually going to reduce prices. that see in five years time if that holds true. the french have another model which is the hypermarkets that are huge. they are also not doing great. the midsize hypermarkets are doing pretty well but not as much as it was. tesco in particular has a lot of hard -- large stores.

those are definitely the ones that of been harmed the most by online. the point of a hypermarket is you had a bigger selection and loyal prices. a bigger have selection than the internet and you don't have lower prices anymore either. ok becauseerally people buy in small baskets. it's a number in our local for online. but the online -- the nonfood part of online retailers different. other obvious targets up for grabs? some analysts were expecting letting that the room is now for more since take a -- room is now for morrison's to take over sainsbury. that sounds like fantasy. is achieved to make these offers? theseit cheap to take

offers? the industry, whether it's pharma or retailer consumer, they are structurally changing and companies are dealing with that destruction by consolidating. m and a volumes are up 25%. have ae: every time you big merger for banks, you talk about culture and fit. is there a supermarket culture? or is it different because its aisles and supply chain? charles: the definitely is a culture issue in a can go on for some time. that's partly why they said at the moment they will run it as two separate is mrs.. alwayslong term, you have to run businesses as one business to get all the savings. maybe the first time around we get to businesses and then if it

were to go ahead, which is in big question, it's a regulatory risk. you would see eventually a single chain operating. francine: thank you both. ruth david and charles allen. let's get straight to the bloomberg business flash. nejra: madison petroleum reportedly plans to buy rival andeva for more than $20 billion. at about $150 a share. that's a 20% premium over friday's closing price. prologic agreed to get dct. dct will get 1.2 prologic shares. that's a 60% premium.

world's largest warehouse owner even bigger. nominal lines extending its transformation by preparing to launch a dedicated cargo unit. the carrier has been revamping its fleet to tap into the growing economy and demand for flight. international companies such as samsung, and nestle have turned vietnam into a major manufacturing hub. we are now accounting for a lot of goods in transportation. the imports of parts and things into vietnam, for example and the exports of the products. we now look at both the cargo unit as well as the logical system. nejra: and that's the bloomberg business flash. francine: it's been a big day

with another huge deal on the table. t-mobile has agreed to acquire sprint for $26.5 billion. if he gets approval, deutsche telekom will own 42% of the company. bloomberg's telecoms reporter joins us. one of the key benefits of a manager? there are lots of benefits for both softbank as well as deutsche telekom. scale, theyve more will have more financial firepower to invest in new technology such as 5g, and he will have a bigger customer base. they will have complementary spectrums that will cover a wider space of the u.s. continent. lots of regulatory hurdles, lots of benefits, the question is

will regulatory decision-makers approve that kind of deal. what exactly are the rick latorre hurdles? how difficult would it be to convince the authorities that this should be approved? will reduce the number of players from four to three, which has been criticized in the past by the past that minister asian's. administrations. the companies will try to argue three players will be bad for competition and they will also try to argue that they need this scale to invest in 5g and make the u.s. leader in this new technology. it will certainly be an uphill battle. as you say, it reduces

the u.s. wireless industry to three major competitors from four. the we likely have authorities decide whether they are ok with it or not? they will give a hard .ook at that the regulatory environment is a bit more favorable in the u.s. currently. that's what analysts say. the republican government and the republican congress tend to look more favorably towards the street consolidation. bodycc is an independent and we will have to wait and see what happens there. there is optimism both on the softbank and the deutsche telekom side. francine: thank you so much. our telecoms reporter in berlin. data today, the t-mobile and sprint chief executives will be join us on bloomberg. catch that at 4:00 london time.

up next, theresa may this is a top ally following the departure of her home secretary. what would this mean for the count its ability to come together over brexit? we discuss that next. ♪

♪ good morning, everyone. this is bloomberg.

i'm francine lacqua from london. the u.k. home secretary has resigned following allegations she misled parliament over targets for deporting illegal immigrants. she's the fourth member of theresa may's cabinet to quit in six months. hate the way for a harder brexit? we are joined by bloomberg's brexit editor and our bloomberg u.k. fx reporter. all, this is amazing brexit column. you tablets, key departure. was pivotal to theresa may. for a long time she's been a very loyal ally. mei trusted her to take over the home office where may spend many years.

the and not only within the cabinet but within the inner brexit war cabinet. delicate balance between remain as and levers. we will look carefully at who will try to replace her. she was not only trusted by may but someone in that potentially a future as a leadership candidate. we don't know who is going to replace her but the mathematics says the balance between the sides will be important. even though we only have a year to go, we still really don't know what the trading times will look like after brexit. we know that's happening today. is she going to get a list and choose? emma: we are expecting it.

a few names are doing the rounds. there is someone who campaign for remain that is seen is not a hard-core remain a. a lot like jeremy hunt. also, cap bradley. -- also, cam bradley. francine: does she have to choose a pro brexit secretary or can she chooses she wants? emma: i suspect that the balance will remain the same. rod will remain in parliament and be liberated from the constraints of cabinet discipline and the loyalty. we will have to look carefully to see if she really does help.

they're using the tools of parliament to help to medically. -- to help dramatically. the be interesting to watch. francine: what the this mean for pound? john carney talks down expectations. this?re an impact like watchers, for pound it's the latest in the line of bad news. we've had this disappointing u.k. data, markets cut back their expectations. i wouldn't imagine this is going to play into the decision-making process but more in terms of the overall pound outlook. we have key moments coming up in terms of frexit. we also have the customs union vote. i think a lot of investors are

struggling with how to play that pound. we would have to have a pretty big shift for pound to move. would it be boe or something politically? people are saying that looking at both factors. the bank of england is the bigger story. if data comes in better than expected, we could grasp at that new rate hike the last second. but the politics is also playing a role. francine: we have pmi figures later on. what you watching out for today? bonnie a, the chief eu is taking a visit to the irish border.

everyone supports irish unconditionally. he'll be giving a press conference about now. francine: thank you so much. up next, egypt gets ambitious. the country's finance minister lays out his plans for reform. the fed hike is one of the currencies you may want to watch out for. we'll talk about currencies in emerging markets. this is bloomberg. ♪ we use our phones and computers

the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get up to 5 lines of talk and text included at no extra cost. so all you pay for is data. see how you could save $400 or more a year. and get $200 back when you

sign up for xfinity mobile and add a new line of unlimited. xfinity mobile. it's a new kind of network designed to save you money. click, call or visit an xfinity store today. francine: economics, finance, and politics. there's plenty still to come from europeans earnings season.

analysts and bloomberg intelligence see improved growth . this comes as the stoxx 600 makes another run to breaking the 400 mark. joining us now is trevor gleason. she works at royal london asset management. when you look at market overall, how much to look at earnings and how much do you look at their trevor: into the future when earnings matter most of the revisions to earnings. it will look at earnings revisions to decide if the reason is more attractive or less attractive. over the last six months, european revisions have been downgraded due to your strength.

thee saw anything change in direction of the euro, that would be enough dustin the markets. francine: do you see euro changing? trevor: it matters how soggy the summer is. it feels like the summer markets have come early because the first of may this week is usually the beginning of that range trading soggy sideways stock market. we've seen it since february. it's a bit of a peaking of global growth at high levels and that means earnings forecast are seeing some downward pressure. francine: two months ago was asking whether the german economy was overheating and now the question is if the german economy has. trevor: when the correction started, was pinned on an average earnings number the u.s.. the next month, it's expect the ever way -- other way it nobody pays any notice.

selloff recently has been about negative earnings guidance. you get al that when peaking of global growth, the markets turn volatile. people are saying 2017 is cooling off and not necessarily collapsing. i think the dollar will strengthen again in the euro will weekend that will help european earnings. it means monetary policy will be tempered because chief executives are concerned about their future. they hike more aggressively because they are worried about sharp downturn? trevor: the last point you made is the reloading system. hiking now and cutting later.

i think the fact that growth is beginning to show signs of cooling off is a good thing in terms of the longevity of the business cycle. again,saw 2017 repeated interest rates would go up until they cracked in the you see a recession. before using the chinese easing policy. there could be another run at extending the cycle into 2019. i'm not pessimistic. -- dips andhe selling rallies. francine: overweight equities worldwide are overweight europe and cautious in the u.s.? trevor: overweight worldwide.

we've tempered our positions a little bit. regionally, where quite neutral. we are expecting a bit of the adjustment if you like. look good year could again. do you look at the treasury you? the inversion curve? if it doesn't hurt, is there a slowdown? i think you look at a range of different things. routes are coming up and people are talking about a slowdown. i've struggled to get too worried about it. housing is still making new highs. francine: any bubbles out there?

my concern over the longer run is still fixed income markets. if it happens gradually come it doesn't necessarily cause big problems. i think it will be a bit of concern over the summer. this a whiff of stagflation in the air. core inflation is likely to keep rising despite growth weakening. the fed may well keep on hiking because of inflation and that could worry people. francine: we have sprints, we had the sainsbury's deal. are we seeing good deals that make sense or could a lot of these turn bad? hard to know so i'm going to duck the question a little bit. in hindsight it will seem very obvious.

cost of capital is very cheap. you will get some leverage mergers. it depends on the logic of that in each individual case. francine: pound is dropping so i have to get you on brexit. up next, egypt gets ambitious. the country's finance minister lays out plans for reform. this is bloomberg. ♪

♪ francine: this is bloomberg surveillance. i'm francine lacqua in london. the pound extending some of the drops. we have a chart up for you. since march 1t and you can see there's a key

support number. i will get that chart up for you. at 130 a key support 712. .revor is still with us this is partly to do with the customs union. a key ally of theresa may having to leave due to concerns of her possibly misleading parliament on immigration. what gives -- what gives the impetus to pound at the moment? this is a big deal. focused on boe. way the pound trades, it does care what the boe was signaling like it expected to. the policy expects interest rates. mark carney did say that because of brexit, the interest rates will stay lower for longer. thatfore they've made direct link and the markets have heeded him on that one.

the markets care about the bank of england and politics raise up again. you tend to see it in fx volatility rising. at the moment, it still feels like a false calm. pound wenteuro, the down and stay down. he still have this very big bimodal distribution. the possibility we leave with no deal. these are both realistic us abilities. it very different locations for sterling. it's like a pegged currency, no one knows which way it would jump. the pound can move quite quickly. a lot of people are saying the negotiations must be going well because the pound is roughly back to where it was but we all

know the dollar has been weak against pretty much every currency in the world. the sterling euros the really one you should watch. that's still quite low and it's still quite edgy. with saying for sterling-based investors, make sure you have a lot of money in your home currency and that we don't to think too much. francine: this is euro pound which you were talking about, moving sideways. do you think pound will actually move on the back of this? wilbur -- if it's a brexit person, will pound move? trevor: i think -- trevor: i think it's a bit in the weeds. might say well, this whole thing isn't going to work and there's been a compromise voted down. there will be may be more likely hard brexit. by that i mean no deal.

, theore likely no deal more likely exit becomes. it's a hard brexit cabinet. maybe we leave with no deal and made we don't leave. francine: thank you so much. trevor stays with us but let's get straight to the first world news. u.s., the trump missed ration plans to extend relief the and aluminium tariffs to some countries but not all. bloomberg, wilbur ross declined to identify which nations would be spared. he said he now will be made before tomorrow's deadline. he indicated that nations have been asked to accept import quotas in return for no tariffs. u.k. home secretary amber rudd

has resigned over a claims she misled parliament on targets for removing illegal immigrant. she has been asked to step down and theresa may has accepted her resignation. she was a pro-european voice in the cabinet at a counterpoint to boris johnson. turning on the charm ahead of his son the with donald trump. adding pressure on the u.s. president to ease sanctions before it's made any significant concessions. the south president spokesperson has said kim as a -- hasn't -- has invited foreign journalists to witness the shutting down of a nuclear plant. global news 24 hours a day. on to talk on twitter area did -- on tick talk on twitter. francine: egypt is in the spotlight as one of the favorite em destinations for investors. the finance minister spoke

exclusively to manus cranny in cairo about the specs for growth and economic reforms. that want to make sure whatever plan, there's no fatigue in the economic program. we control the level of debt. no economic reform takes place bothering people. it's something you need. if you didn't do that, things would have been much worse area you do that, it could be a level of pressure. toyou improve and people try find opportunities to disrupt, you rebalance things. i know you've been in london, i know you've been around, will we see you go to the asian market? will you issue in other currencies apart from dollar and the euro? >> we didn't have much for that

right now we are checking it out the what is best for us. europe, europe is our biggest trading partner. the opportunity we have in euro and also a level of power that is in euro as well. we like a target. what can expect? >> we are talking six to seven between dollar in europe. >> are you worried about interest rates rising? >> its rising but so far performance its january of last year, even with the increasing , etc. good level below where was last year. are -- its the bets

wouldn't say credit rating, but the better assessment of the investment in our credit risk. a better look from the rating agencies. >> you've had good luck with money coming in. $20 billion and counting. >> $23 billion plus. >> there's a risk that money can turn on a dime. that's your risk, isn't it? at two that -- in 2010 we're at $12 billion. we are at a level of development with the foreign investors were we think it's manageable. from thethought

beginning were going to 20 billion then 40 billion and 60 billion. the carry trade -- >> the carry trade is alive and well. you have no concerns. >> this always a concern but our performance is actually improving. and we have seen a rise in these amounts in recent weeks and months. we never expected this would go through the roof the way it has. we were at almost zero level in november of 2016. the finance minister said there was good momentum for inflation. >> when you talk about inflation, people mixup things. because there was more than one timen, but at the same

there was the flotation which was a big thing. the other thing when we look at what happened before, it was not as bad. the target that we have for the end of the year for the inflation target is around 15%. in my opinion it could be around 11 to 15%. on a good momentum so far, and the four months together, the level of inflation is at 20%. that was egypt's finance minister speaking exclusively to manus cranny in cairo. let's bring back trevor. trevor, there's a link with the fed and some saying the egyptian currency may a good carry trade. you believe emerging markets are well prepared for three or four hikes in the fed this year? trevor: -- trevor: they may have some

difficulties run the reasons. i don't think u.s. interest rates at the point now where they're on the verge of great recession or creating a big emerging market crisis. but over the summer, if global growth is coming off the boil, and china is possibly softening , that i wouldn't be surprised emerging markets have a bit of a choppy. -- have a bit of a choppy time. francine: would you pick the ones that went through structural reform? trevor: we've been scaling down. casen down the hatches in stagflation feeling worries people. if you have a feeling that global growth is slowing, for a lot of the resource exporting companies in emerging markets, that will be seen as a difficult environment. i think there could be a bit more challenge.

if you think that global growth is going to re-accelerated again thennext year, which i do, i think it'll be another chance to profit from emerging markets. the carry trade is generally in the developed countries. interest rates are really so low they're very close to each other. there won't be a lot of carry trade money in emerging market countries. and itivil possibility could be another few years left in carry trades before they have difficulties. how must you like the emerging markets of -- that are exposed to tech stocks? trevor: i think -- trevor: i think there's a bit of a digestion. in -- i think there's a bit of a digestion moment in tech -- in tech.

more onwill depend much what approach the u.s. consumer and the global tumor has to recession and does nothing on the immediate horizon that will push the consumer to recession. we have hyperdrive which is like our outlet on the website to look at the future of transport. in these cool things like as a solid transform our lives. how do you view these? trevor: as a macro investor, i'm not thinking individual stocks. i'm interested in the impact these individual technologies are having on the numbers as a whole. technological advances some security in capital for labor and keeping prices lower. that's a sort of way to look at it. there may be a lot of individual

stocks out of the new amazon's but they might be the pets.com. you don't know which. when markets give a low cost of capital to a sector, you get some massive technological advances because the capital is free. people will burn it and invent new electrical cars quickly. that technology stays with us. what stocks you can stay invested in it which ones you can return. let me alert our viewers and listeners on radio that there is a news conference going on at the moment in ireland with michel barnier. and the prime minister of ireland. they are talking about brexit. the irish prime minister is saying the need to finalize legalized -- legal tech. the foreign minister is seeing extraordinary unity. this that surprise you?

we talked about the domestic concerns. it doesn't surprise me at all. i don't see any signs of german manufacturers hammering of the doors of brussels to try to get a sweet deal for the u.k.. it's tough. the european unity is more about politics than economy? or will economy prevail because the german fractures will be hurt quite significantly? i think very early on it became very clear that you can't approach this kind of negotiation is individual countries. governments are lobbying brussels but i think brussels is trying to do a unified approach. if they get this wrong than were these things all all over again. francine: michel barnier has

just taken the podium and will bring you news out of that. this is my italian credit default swaps. we still don't have a government in italy and every things a little bit wobbly. the risk premium is the lowest since 2014. is this a mistake? worrying?ors under trevor: i'm a little bit circumspect in this. where we are seeing the most evidence of economic data is in europe. i don't think this is the big slowdown when the next one comments because interest rates get too high, which could be two or three years away, i think all of these pressures and the unity of the economic case for the eu will come back to the forefront. you're worried about

two or three years. but we have a new european central bank president? should be a german? maybe they need a german in the top spot. i think the whole question about fiscal transfers in europe has not gone away. after gingerly haven't changed between the periphery and the core. really haven't changed between the periphery and the core. i think for the eurozone to survive long-term they have to introduce more fiscal transfers a la macron. i think we will. francine: jake is so much. the head of multi-assets and were london asset management area coming up next, we will be

talking to treasury. we really talking to the london school of economics. we will be talking a little bit about yen. there was a little bit of movement on korean yuan. and a deal worth $10 billion plus sprint and t-mobile agreed to a $26.5 billion deal because they want to get a closer eye on networks. this is bloomberg. ♪

♪ francine: mlm monday. t-mobile finally agrees to acquire rivals sprint.

shares rocket. of u.k. home secretary provides traders and to sell sterling this week. toding eight u.s. delegation beijing, escalation or de-escalation? tom keene is in new york. we are looking at what the pound is doing and a replacement part amber riley. u.k.is significant for the tom: i am looking forward to getting briefed. i am not up to speed on that. we will do that in about 10 minutes. i am looking at the huge drama we saw last week in korea. a focus on the pacific rim, robert kaplan will join us in the next hour. francine: let's get straight to

the bloomberg first word news. taylor: sprint and t-mobile are betting that together they can get a jump on the leaders in the u.s. wireless industry. t-mobile has agreed to purchase sprint for $26.5 billion. that would reduce competition in the u.s. to three major competitors. later today, we will talk to the ceos of t-mobile and sprint. that is 11:00 a.m. eastern. the trump administration plans to extend relief on steel and aluminum tariffs to some countries but not all. in an interview with bloomberg, commerce secretary wilbur ross would not say which countries would keep their exemptions. the chancellor of austria says no one would win in a trade war. he was in abu dhabi, where he spoke to us in an exclusive interview. a trade war would be

extremely negative for both sides cannot the eu and the u.s. we are a small but very export oriented country. that is why we have a deep interest in an orderly and fair free-trade system. i think the u.s. should share this. kurz is seen as a nationalist and eurosceptic. home secretary amber riley has become the fourth cabinet member to quit in six months. lawmakerse to address today over allegations she overd lawmakers deportation of illegal immigrants. global news 24 hours a day and on tic-toc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. francine: thank you so much.

the eu chief brexit negotiator is holding a conference. what they are talking about is the question about ireland. the eu saying that june is a stepping stone in the brexit talks, but all sides are asking for something a little concrete on how to deal with the irish border. risks remain in the brexit talks. we will follow that press conference and bring you any headlines. tom: let me go to the data check. it is quiet this morning. a little continued dollar strength. futures are up. the euro getting down near 1.20. that is of interest. vix settingeen, the under 16 it's my attention as well. francine: european stocks edging higher. we saw some gains in asia. the one rally as the two

korea's move towards peace. media and telecom companies seem to be leading advances in europe. -- rawrial material providers are the biggest losers. tom: 140 billion gets your attention. finally regulation. we will touch on this. the guy with a lavender or magenta t-shirt, t-mobile, unreal. up 300%. sprint simply cannot get it done. there is no question about who is the merger and the mergee. the t-shirt wins. francine: this is what i am looking at. this chart matters because it is a little different. i did it for the silliest you

knock us. he is coming up -- vasileios gkianakis. he is coming up shortly. italy once again thrown into disarray and credit default increasing momentum. let's get back to our top story, the u.s. planning to extend a sentience for steel and aluminum tariffs for some of the affected countries according to commerce secretary wilbur ross. let's get to the silliest you knock us of -- best the latest ileiosust -- vas gkianokis. i think we will get an extension for some countries.

i think we may not get one for the european union. think the important thing is how negotiations are going to pan out. the dollar right now is being dominated by what is happening in positioning without extreme short positioning. there was a rally in the dollar of 2.5% in november. the yield curve has been flattening this year. over the last couple weeks, it seems to have resumed flattening. there is a close correlation between the yield curve and the dollar. francine: do you worry that the yield curve will convert and that there is a pending economic slowdown? vasileios: i am not suggesting

that the yield curve is about to invert anytime soon. my scenario is that it will continue to flatten. we are at the stage in the business cycle where the yield curve continues to flatten. curve go back, the yield flattens during this process. the fed is underweight hiking rates. it receives maximum flatness at the peak of the fes boundary. believe we have room for another 75 basis points from the fed. it would be early to presume that the curve is done flattening. tom: thank you. i look at where we are in setting up for may. what is your level of conviction right now? last week there was a lot of uncertainty. what is the unicredit conviction

now under various calls? vasileios: first of all, structurally we will remain bearish on the dollar. we think there is a lot of concentration of wealth of u.s. assets at a point in time when cycle is -- we will have outflows. that is a medium-term structural view. it is undeniable we have had a pickup in momentum and at the same time the fact that we are running a quite spread short positioning is adding some support to the dollar. i believe that support is going to start waning over the next few weeks as the yield curve and thatattening again temporary support they in shares

-- basically vanishes from the market. hold that point, how do you hold the gas of inflation? we see the headlines from draghi, carney, and powell on wednesday. you wonder where the inflation is. are you certain of inflation given what you just said? operating in are an environment where the inflation readings are having a weird effect on exchange rates because we come after so many years of unprecedented monetary policy. is a bad thingn for real exchange. it erodes the value of the currency. over the past few years, higher exchange rates have been associated with -- higher

inflation rate have been associated with stronger exchange rates because of expectations of the unraveling and unwinding of excessive monetary easing. i think there have been some strong signs that inflation is picking up. at the same time, i can make knowledge that these upside momentum has not built to a point where we are about to see a significant new reversal of monetary policy. inflation and the u.s. has gone up. given where the unemployment rate is and the output gap, one would expect the inflation rate would have picked up more considerably. it has not. that is something we need to accept. all of the analysts were pretty much agnostic as to why we have not had such a rapid rise in inflation. in the eurozone, it has got up, but it has gone up at a lopez. pace.

i still think the inflation in the pipeline in the eurozone is still there. i think we will see inflation picking up later down the road. francine: thank you very much. you are staying with us. today, we are live from the milken institute global conference in beverly hills, california, speaking to top business, finance, and political guests. we are talking to steven mnuchin, and john thompson of microsoft. it will be a wide-ranging and interesting lineup of conversations. this is bloomberg. ♪ ♪

♪ taylor: this is "bloomberg surveillance." i am taylor riggs. regulators are expected to take a close look at the t-mobile agreement to purchase sprint for $26.5 billion. the deal would reduce the wireless industry in the u.s. to three major competitors. t-mobile and sprint are hoping the combination will help them to get a jump on verizon and at&t. later today, we will speak to the ceos of t-mobile and sprint. there is a report of a deal that could create the largest independent feel maker in the u.s. marathon plans to purchase its at $20 billion. the world's largest warehouse owner will get even bigger. dctogis has agreed to buy

industrial trust. that is your bloomberg business flash. francine: thank you so much. let's bring you another of today's big m&a stories. u.k. sainsbury's has grown on plans to purchase walmarts avda. joining me is christopher pissarides and vasileios gkianakis. how big of a deal is this? >> it is a huge deal. it is a surprise. everyone knew consolidation was needed in the u k grocery sector. the fact that you have sainsbury's emerging as a dealmaker and going after a walmart unit, that is a

surprise. francine: is the idea to grow online and face amazon in the u k or face discounters such as aldi? >> it is both of those. the discounters have gone from being also-rans to growing to 15% of the grocery market in the u.k. people are shopping more online. the u.k. is one of the world's leading e-commerce markets. francine: we are just getting some possible breaking news out of the u.k. this is after amber rudd left. we understand from our sources --t theresa may will appoint david as the u.k. home secretary. he was the favorite for the job. bywas already being tipped

mp's. back remain, but he has not really backtracked on that. and sosort of cautious he would keep the balance in the top job. an ally -- theresa may has an ally. in thee was ever a vote on the it would lean towards softer brexit. it is having a little impact on the pound. let's go back to the deal with sainsbury's and avda. how much does this have to do with brexit? there has to be some worry. rexit has squeezed all

the u.k. retailers because of the effect on the pound. looming,hat is still but it is still mostly around the edges. tom: is the grocery experience in the u.k. applicable to the united states, or does francine purchased a dozen eggs differently than i do? francine: you buy eggs? tom: i do. i am all eggs. >> i am not in that basket i guess. u.k. shoppers have been leaders globally in buying stuff online. across europe, the discounters have been more aggressive than they have been in the u.s. today. there is a big battle between amazon and walmart in the u.s. obviously. francine: this is the breaking news, tom goes grocery shopping. i don't believe it. whatyou would be amazed

you see when you go shopping. this is the whole foods here. you run into fancy pants chairman and ceos. in new yorke is next, we will take her to the columbus circle all foods. that is an experience. thank you. loved the briefing. is trying toanakis leave the set after talking about shopping. coming up in the next hour, this is the book of the moment, robert kaplan, the return of marco polo's world. stay with us. this is bloomberg. ♪

♪ tom: "bloomberg surveillance." monday fed day. rudd is so last week's news. we will talk about that in a moment. vasileios gkianakis is with us. let's go away from the fed. as we were talking earlier about the uncertainties out there and lack of conviction, does mr. draghi have any conviction on his inflation outlook or is he the mother of all data dependent central bankers? vasileios: i see in general that draghi has been quite

constructive on the inflation outlook. they have highlighted the number of risks they are facing, and at the same time, they have said they would like to see a sustainable cap to inflation. the sustainability has not manifested yet. i think these people are being encouraged, and rightfully so by the closing of the output gap, which should lead to a meaningful pickup in inflation. that, other than specific monthly readings, my personal reading out of draghi's press conference last week is both on the inflation and regional growth outlook, given the previous two months of sharp i think draghi, was as constructive as he could have been. i did not read it as a very dovish ecb.

tom: did you see growth? what is fascinating about the growth slowdown in europe is it is as good as it gets. are we going down to 0.5% or 0.7% growth that we saw two years ago? vasileios: you mean on quarter ver quarter basis annualized? tom: are we slowing down in europe? vasileios: i think yes. we are slowing down from high levels at least from a historical perspective. i think there are a number of europe.o suggest in you they will not be printing 2.5% indefinitely, and these tobers will converge

the 2% level. we know the first quarter was a weakish. it has been a growth that has been widespread, which means the growth has come from pretty much every country across the eurozone. the second thing is we have seen a gradual rotation towards investment. this is a fundamental development. tom: we are going to leave it. we will come back. vasileios gkianakis on a widespread european slowdown. coming up, peter henry of new york university on the fed.

♪ francine: this is "bloomberg surveillance." in all talk about brexit second, the new home secretary of the u.k. and the impact on the pound.

first, let's get bloomberg first word news. taylor: sprint and t-mobile figure out the way to compete with verizon and at&t is to join forces. t-mobile has agreed to buy sprint for $26.5 billion. later today, we will speak to the ceos of t-mobile and sprint at 11:00 a.m. eastern time. in capital, afghanistan, suicide bombings have killed at least 25 people and wounded 45. eight of the dead were journalists killed by the second blast as they were rushing to the scene. the islamic state has claimed responsibility. austria takes over the presidency of the european union in july. chancellor sebastian kurz agrees there is one issue that

can be avoided. he spoke to bloomberg. >> there are some themes we would not choose but will be keeping us busy. at the top of our agenda will be brexit. this year is the year that brexit has to be agreed to so that in 2019, it can take place. taylor: he also said that a trade war between the u.s. and the eu over steel or aluminum tariffs would be negative for both sides. global news 24 hours a day on air and on tic-toc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. francine: thank you so much. the u.k. prime minister theresa may has selected said he get javid as her new home secretary. amber rudd resigned yesterday. remaining in the

2016 referendum. he now backs brexit. ourre being joined by politics reporter and vasileios gkianakis still with us. what do we know about javid now? referendum,e 2016 he had a very difficult choice to make. he could see that it was a hard decision to come to come and eventually he came down on the side of remaining in the european union. since then, he has remained much more supportive of brexit. in the last few days, he has sent out signals that the u.k. has to come out of the customs union. francine: is this a conviction or is it possible that if parliament came out against brexit, would he drove his vote to a softer brexit? >> it remains to be seen.

tom: i am fascinated by this selection. today fore symbolism the people of the united kingdom that a pakistani son of a bus driver, obviously excellent career, has become the major domestic official for the prime minister. isn't it an extraordinary moment for the united kingdom? >> i certainly think it is a big moment for the reasons you set out. he is the first asian man in the cabinet in 2014. he has a record of breaking ground in the u k, particularly conservatives who have come under fire for the way they have emigration scandal in the home office when it comes to the treatment of minority ethnic individuals in this country. it is a signal from theresa may

that she wants to move on. islamhat does it say of in the united kingdom? when i look at the mayor of london and now the home secretary, this trend is extraordinary. how will labor respond to that when they see the conservatives doing this? >> i think you can expect absolutely no let up from the labor department in their criticism of psyd janet -- sajid javid. before it was announced, they were sending out criticisms of his time as a financier. tom: where are we with prime minister may? i listen to francine do the brexit derby five days a week. i try to take a break on the weekend. where are we entering may on brexit? where are we right now? >> it is a big week.

there is a meeting which will be one of javid's first ones on wednesday in which the prime warster and her closest cabinet of brexit ministers will have to decide or consider very carefully for the first time what customs relation they want with the eu. francine: when you look at the pound, what does it move on the back of? does it move on the back of political machinations like this or does it just move on the oem mark carney? -- boe and mark carney? think it is fair to say that over the last 10 days it has just moved on boe. on a two-week basis, cable has sincee worst performance october 2016 on the back of theresa may's speech in birmingham. that tells you there has been a selloff that was initiated by

carnies comments that led to a severe repricing of rate hikes. then you have the u.k. gdp numbers. all of these political developments are not helping, but they are not the catalyst. francine: will we have more of an idea this week of whether we are in the customs union or out of the customs union, or will it take much longer? >> i think the truth is that theresa may and her cabinet have been clear so far that the u.k. is coming out of the customs union itself, but they have to decide which of two particular models they want to pursue for the customs relationship. this could all be taken out of her hands it parliament votes in a few weeks or months to keep britain in the customs union, in which case there will be another big decision to make. tom: what i have seen in the last couple weeks is a lot of red letters. i have seen boards and lords and

lords, when does the house of commons become involved? >> we are expecting a vote on a there were elections this week. a lot of people wanted to avoid controversy around elections. there will the vote on an amendment to keep the u.k. in the customs union. that could be in may or be put back until the autumn. it depends how ready and willing theresa may is for that particular fight. tom: thank you very much. a lot to talk about moving forward. on the radio, your monday briefing. look for that coast-to-coast. also radio london. this is bloomberg. ♪ ♪

♪ are advantaged by our geography. a beautiful shot of the capital. in the background, the thomas jefferson building of the library of congress built in 1890 or 1895. one of the great jewels of america. considers anuchin entourage to china. that will be most interesting. we will get a briefing in about 15 minutes from robert kaplan of and his wonderful new book on the pacific rim as well. right now, vasileios gkianakis is with us from unicredit. we are bringing professor christopher pissarides he's of

the london school -- christopher pissarides of the london school of economics. happy with us today. of mr.uld your view mnuchin and china and trump-lateral versus multilateral? christopher: the lesson we have learned from the elections and political changes in the last few years is that losers need to be compensated. there will be losers, but there will be benefits on average. therefore our governments need to take into account the fact that they need to make some allowances, some fresh policies

that will compensate those that are losing out. china has taken that route. they had been pursuing it. it is now a year and a half since president xi made a speech. i think there should be a response. , he should noty want china to take the , asia ore, wherever the rest of the world. say loserssor, you should be compensated. american rail of political discussions between republicans and democrats is the agreement they were the last time around. of au see any evidence mechanism that can compensate

the losers of globalism? when you say do i see the mechanism, the correct to saveo about it is the losers need to be employed somewhere else. when we say losers, we mean people who have lost their jobs. the question is how do you help job.move on to some other francine: isn't it retraining? it is not about hard cash. it is about fitting that in society in a different way. christopher: retraining should be the focus, lifelong learning. the best way to offer it is through a company, but companies may not be prepared to take it on because they had their own costs and priorities to consider.

that is where governments should step in and subsidize training in the initial stages. it may take time for them to move on. they may need to move from a different area they had been living and working before. you need some income support in the meantime. this is not just talking the --tracted we have examples the abstract. we have examples, germany succeeding a lot in that. there is no reason it should not happen in the u.s. do you expect a trade war between the u.s. and china to escalate? christopher: no. that is not my control scenario. as far as the u.s. administration is concerned, it what me to say it, despite

is happening within the u.s. administration, it seems there are steps that are being taken so as to educate a number of people about the losses even in andu.s. of an escalation transformation into a global trade war. what i find fascinating is the response by china has been very measured. it has been very calm. china seems to be going down the road where it wants to avoid disrupting global trade. i am quite optimistic that we are going to go through a period during which there will be adults in the room. i don't think this is going to be a full-blown global trade war. tom: please go ahead. christopher: i agree with that entirely when it comes to china. china is a major beneficiary of trading. i might be ironic, but where

am worried about trade war is with respect to the european union because if you look at the benefits from trade at the bilateral level, the u.s. and the european union are about level. any action the united states takes can harm the european union, and the european union could respond in a way that would harm the united states. that is a typical case where you can inflict something on the other party. academicin your acclaim and the game theory that is out there, it is about hard power before soft power. does america still have hard power of a dominant trading partner, or is that a delusion that america is living within now? christopher: i think it is a delusion. if you look at international

trade, there are three blocks, the united states, china, and the european union. they are about level. if you see trends, china is growing much faster. and the european union is getting there, especially now with recovery. i don't think the united states has as much clout as it used to have before, but it is still day. -- big. it is still there. there in the way it was before. francine: will china take over in influence and power in the next 10 years? christopher: there is a possibility that unless the united states and europe play right with respect to china, that will happen. i meet people from central asia and pakistan and lebanon, they

expect it. they are looking at china much more closely as a much better partner in the next 10 years than the united states or europe. francine: thank you for joining us. vasileios gkianakis and christopher pissarides will stick around. you can browse recent charts featured on bloomberg tv and save them for future reference. it is a cool application. this is bloomberg. ♪ this is bloomberg. ♪

♪ taylor: this is "bloomberg surveillance." an acquisition that could transform the supermarket business in the u k, sainsbury's k., sainsbury could create a supermarket giant to rival tesco in market share by acquiring asda. rising gas prices to the highest on record. gasolineat a time when

futures are the highest since august. inventories are covering lower since january. danish electric vehicle sales fell dramatically after the government faced out subsidies. bloomberg spoke to the prime minister. >> we have a tax incentive for electric cars. you can discuss whether it should be bigger. i will not exclude that. today's paper is about the supply side so to speak. i have announced today that will summer break, we introduce a package on the demand side. a dedicated webpage that features the best reporting on transport from across the number news -- bloomberg news universe. tom: we are launching into a

discussion that drives us to may 2 and the fed meeting. vasileios gkianakis with us of unicredit and christopher pissarides of the london school of economics. this is the real inflation-adjusted fed funds target rate. this is one of the indicators. speaking to the economic club of new york where he said we are altra accommodative. we come back. here, what is the inflation-adjusted nominal conundrum that we face as chairman powell raises rates? comeinflation, as the -- up as the same rate that they tread water? >> it should be the case that inflation or the momentum,

increasing inflation, slows down, and therefore you maintain inflation rates close to your targets. i think the issue i am having right now is it is not with monetary policy. i think monetary policies are pretty much well read by the market. we are looking at two to three rate hikes this year. right andat is potentially another rate hike in 2019. the issue i have with the u.s. is mostly this the policy. pol it is beingicy. cyclically adjusted basis, the fiscal expansion is the biggest it has been in modern u.s. history. it has the potential to push

inflation higher. this is happening when the cycle in the u.s. is very much on. we may be entering into a phase in which we get higher inflation, higher u.s. risk slowdown, quite possible over the next year or so. the recovery is old. we go into a bad feedback loop. this needs careful monitoring by markets. tom: thank you so much. think is so much for joining us today. greatly appreciate that. we have much more coming up, lots to talk about particularly in the united kingdom with amber rudd resigning and a new home secretary. we will drive forward the conversation on the fed and on washington with peter henry of new york university and our interview with robert kaplan. we will look at china, the pacific rim, as secretary

mnuchin travels to china. so much more coming up. let me do a data check. we really ignored the data. it is a quiet day. thank you. dow futures are up 112 with the vix coming in 15.35. oil is pretty solid. we will do much more for you. don't forget wednesday. we have our special fed meetin g. scarlet fu beating our coverage. stay with us. this is bloomberg. ♪

♪ tom: this morning, quiet markets. central banks view higher

inflation. be aet fu says it will very alive meeting. it is down the stairs. secretary pompeo managing a message on north korea, iran, and china and also managing his president. in this hour, robert kaplan on the return of marco polo's world. it is not from the high middle ages, it is steeped in the nostalgia of the 1950's. this is "bloomberg surveillance." we are live from our world headquarters in new york. tom keene in london. francine lacqua in london. rudd exiting amber as home secretary. francine: this is significant because amber rudd had to step down following allegations that she had misled parliament over immigration targets. she was a key ally to theresa may.

she was very well listen to and considered within cabinet. we are considering, does theresa may become weekend because of this because she was so close to amber rudd and who is the new man in charge of home affairs? we know he is sajid javid. he was pro-remain. because theto say people voted, he would push through hard brexit. rudd one is taylor mrs. riggs. taylor: theresa may has moved quickly to replace her key ally on brexit naming sajid javid to replace amber rudd. to addresst parliament today over misleading lawmakers on immigration

targets. sajid javid campaigned against brexit and is now for it. t-mobile and sprint joining forces. t-mobile has agreed to buy sprint for $26.5 billion. it is likely to attract close scrutiny from regulators. they are hoping i can buy they will get a jump on building the next generation wireless network. we will speak to their ceos later today. look for that interview later today at 11:00 a.m. in new york. austria takes over the presidency of the european union in july. agrees there is one issue that cannot be avoided. he spoke to bloomberg. >> there are some things we would not choose but will the keeping us busy. at the top of our agenda will be brexit. this year is the year that has to be agreed to.

he also said a u.s. and eu trade war would be extremely negative on both sides. in afghanistan, a bombing has killed at least 25 people. dead werehe journalists as they were rushing to the scene of the first bombing. global news 24 hours a day on air and at tic-toc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. francine: thank you so much. we are just getting breaking news. this is a merger in the oil space. this is marathon petroleum. this was reported by some of the u.s. press. $20 billion.at if you merge upstream and

downstream, you have better control on the prices. we have premarket trading. confirmedetroleum has to purchase andeavor. tom: quiet day with futures advancing through the morning. let me leave it there. francine. francine: stocks in europe drifting higher. equities in asia also gained as we saw dealmaking bringing excitement to the start of a busy week. the pound facing pressure as theresa may lost a key ally. tom: joining me now kevin cirilli. i want to get to politics, but first the greater picture for the white house. what do you do after the drama of last thursday and friday in korea? how does the administration reset asian policy?

it will be interesting because steven mnuchin is scheduled to take off for beijing for a series of meetings. to woong how china plans the trade representatives as well as secretary mnuchin. there is no question that even with the developments coming off of the korean peninsula that this administration wants to work with china. tom: does china want to work with us? kevin: on the issue of north korea, they want to. on the issue of trade, that is a different question. specially when you start talking about things like intellectual property and opening up business development and agriculture. there have been very tense negotiations.

we don't know whether the ultimate policies will match president trump's rhetoric. francine: good morning. if we don't see any advancement from the two koreas and any , couldnt to come closer it be blamed on the u.s. and trump administration? kevin: the general feel was that last week was a big development with regards to north korea and south korea and their talks. it was also greeted kevin: it has been greeted with great skepticism. here is an interesting op-ed on domestic politics. this is from the congressman from arizona, progressives often

reforms. a recipe for failure. ,ur focus on economic fairness uncomfortable with capitalism's imperfections. progressives should remember, on issue after issue, what is once vision told as a progressive issue has since become. are the new democrats anything like a progressive question mark kevin: i don't know who the new democrats are. weekend, who is leading the democratic party right now? that is a tension that will be on full display, especially as we inch closer to the midterms. we will be talking about it well below -- well beyond the

november election. we will get a press conference at 10:30. i think, in terms of how he has been framing democrats as obstructionists, you have to dig deeper. what kind are they? centrists who have worked with the administration and the white house is targeting in the midterms because they think they can pick them off, or are they more dirt more liberal? or are they more liberal? date.hank you for that we look forward to the complexities of washington. guests, are you feeling very americanized? energized.ery

i am back in the teaching again and i have more time to write again. tom: young turks have a certain view. not govern was everything and now it's the right of trump. liberalou teach progressive theory in a time of trump? > we teach truth and we teach with logic. number one, the world has gotten a lot better because of free trade. we have to continue to have open borders. we have to think about the u.s. economy being 25% of global gdp and only 5% of population. that does not happen without free trade. francine: how does that change in the next five to 10 years? like now, we see real challenges to real open trade regime. 10 years from now, we will see

more trade, not less. we will go through what i like to call a trade sect. the policy cycle right now is that there is a act last against free trade for different reasons around the world. inhave to continue to push the direction of the trend, which has been toward more, not less trade. otherwise everyone will suffer. francine: is it not only a lesser problem? if you look at asia, they want more trade, more globalism. >> oulu -- absolutely. we see this in asian economies in particular. the best times for prosperity layer had if we can have a positive economic outlook. the united states, western europe, we see the opposite. it's a clash of two world we use

-- worldviews that needs to consolidate tsui -- to see a world economy. francine: thank you. we see conflict in beverly hills, california. we hear from steve mnuchin and david solomon. this is bloomberg. ♪

this is bloomberg. ♪

taylor: let's get to the

bloomberg business flash. it is a deal that could create the largest fuel dealer in the world. ofhas a total equity value 23.3 trillion dollars. the world's largest warehouse owner will get even bigger. prologic's has agreed to buy ecb transfer stock and assumed debt. both companies serve amazon another commerce tenants. it would create a supermarket giant that could rival or surpass tesco in market share. >> the u.k. market has changed dramatically with so much choice for customers and so many new

and trends coming in. it's a dynamic time. matter for our colleagues and suppliers and shareholders. taylor: that is your bloomberg business flash. francine: a big day for m&a with a huge deal on the table. with antitrust approval, deutsche bank will own 40%. john butler joins us by phone. henry is still with us. john, when you look at regulatory concerns, this is the

you is going from four networks to three. will regulation say yes? john: it's not that cut and dry. one issue is consumer pricing and the potential impact on prices to rise higher as the market concentrates. as we move toand, the next generation of wireless, these high speed five g networks, it will take a massive investment. i don't think sprint or tmall will are in a good enough position to compete on par with at&t and verizon in investing at the level required. francine: by john -- wasn't there a big merger in 2014 that was flopped down by washington? is it different this time? john: it is different this time. that's a good point.

looking five years or 2014, you did not see the massive in front -- massive investment in front of you. if you want to realize that 5g vegan, you have to have carriers with scale. tebow -- t-mobile and sprint don't have it. tom: what does sprint do if it does not go three? if they don't get this train wreck through in the next year, in the next two years, can sprint survive on its own? survive.k they can they will have to do their best to build their way out of the problem. they will have to do it one market at a time. obviously, you start with the biggest market, the nfl markets, as they call them. you begin torely, recover the business as you tap those larger markets. it allows you to fund the smaller markets overtime. tom: we have apple out this week as well.

you are an expert on the iphone. isone william, the world coming to an end as we know it, you always pushed back against that. is the iphone gloom for real for this time? john: it may be. for this quarter and this time, we have a much broader product line in the iphone right now. outink there are nine skews there versus last year. theythe ipad product line, have been broadening out the high-end. the iphone is at the top of that. the iphone x, should say. but it is a much smaller percent high-ende than their phone contributive last year. when it does for the quarter and what it means for the future is tough to tell. tom: thank you. much more to talk about with

dean henry. sprint andoday, ceos ceo of t-mobile, this will be adjusting as they begin to battle to sell this transaction to washington. at&t time warner will come up as well. this is bloomberg. ♪

tom: once the timeline to get us to where everybody wants to be? from my perspective, efforts

are being made. to consider putting my hat in the ring for the job. i said no. happy to be a professor and do the research that i want to do. i do see an honest effort by lots of people to bring more voices to very important conversations. effort deems academic excellence. i was the dumbest guy in the room. the stereotype was that everyone was mail-in from bulgaria. that is the case, how do we drive forward to where we want to be? >> we have to signal to our students that you can look different than the current .rofession and be successful the main goal is to bring more

ed -- under representati minorities. what you need is more role models. i can be tom keene or i can be few henry. francine: one do you do to make a difference between windowdressing and the real deal? more you want to create students, you have to teach them timethey have to spend learning mathematics and developing the tools that allow you to become -- whether it is a micro icon mystery macroeconomists. you have to do the hard work. examthe entry-level math is a flunk rate of about 74% or so. the math hurdles of all this heavy talk are brutal. we get more people that we want in the game to get the core math to get there?

>> you have to start early. -- if you want to become a professional athlete, he have to lift weights and run. if you want to be an economist, you have to do mathematics and history and writing and treat them the same way if were enough way. with us, i want to talk with you about education and the place of the job economy. , stay up, robert kaplan with us. this is bloomberg. ♪

welcome across this is aada,

wonderful program. report. to these words this is an outrage. it is a little hard to see america, america, america, america, america, america, -- the onlyrica canadian team is the winnipeg jets. the official team of bloomberg surveillance is the winnipeg jets. let's go to taylor riggs. may has moveda quickly to replace the pro-european ally on brexit. . he is the homer secretary replacing amber rudd.

-- he used to replace secretary amber rudd. sprint and t-mobile figured a way to compete with verizon and at&t is to join forces. t-boned ball has agreed to buy to attractal that is close scrutiny from regulators. they will be able to get a jump on generating the next generation wireless of network aired -- network. afghanistan, a double suicide has killed at least 15 people. eight of the dead were journalists killed as they were rushing to the scene. islamic state has claimed responsibility. easier to remains one of the emerging-market destinations for

investors. bloomberg spoke with the finance minister and gas about the global credit market. you want to take the opportunity of the swift -- the upswing in the economy. taylor: global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm taylor riggs. this is bloomberg. ♪ tom: for the first time, i have .wo books, the threat matrix the other is a no-brainer. , seniorert kaplan youser, when he publishes, purchase it. --is a terrific set of aces essays on eurasia and indochina

and china as well. we are thrilled that robert kaplan joins us. congratulations on a must-read book. if president trump read your book, if you even read one chapter, if even read one paragraph, what would you want the message to be? >> thank you for having me. i would want the message to be that there are processes, vast, , going on insses eurasia now where china is thereating the routes of dynasty from the high middle airasia,ss new building up with iran, building roads, railways and pipelines in order to connect east asia with europe. locked out of this competition if it does not support free trade. all america has to offer in this

, aseurasian landscape cliche as it sounds, is a democracy free trade society. so much of this is asian patients. robert clapp -- robert kaplan, does asia and way president trump? >> in the short run, maybe yes. they will outweigh him. but here's the problem. trump, as another docs as he is, happens to be the president of the united states. which means they cannot ignore him or outweigh him. he has given them an enormous advantage. the initial withdrawal from ttp, the transportation -- transpacific ownership, when term first took office, he it has you in china to develop

trade and diplomatic links with toies and make offerings india and other powers, which is a part of the matrix for this new silk road initiative. a is very much in keeping with china's own imperial history. francine: what role does trump have to play with the korean peninsula? >> china has more skin in the game that united states -- than the united states. . you can have up to 2 million refugees crossing the river is into north and into northeastern china. do -- it isl china's interest in south korea's interest as well to

never have a weekend or imploding north korean state. the fact is that this north korean state, its main legitimacy,tone is its nuclear program. francine: when you look at the various stakeholders, who has a chance of rain the two koreas back together? >> china does not have an interest in having the two koreas together. united, it would be governed from seoul. would govern the north korean economy.

it would be a south korean-run state that would be free and democratic. china does not want that. south korea does not want the implosion of north korea. it does not want the burden of having to rebuild it. for southr programs korea is secondary. revisit vietnam. you had the definitive chapter on the new vietnam. what does the president and you american foreign policy and need to know about just one linkage, which is china. what do we need to know about that relationship? >> the united states fought one warwick vietnam. but vietnam fought about 13 wards with china. the vietnamese are very much afraid of china.

love us asso much need us to balance against china. because chiname, is on their border, vietnam has no choice but to get along with china. so what the united states has to do is essentially -- you know, to get buy-in from vietnam is show we are serious about defending against chinese encouragement in the south china sea and that we have an actual vision for asia, more than just a better trade deal with china are getting rid of north korean nukes, but an actual economic and political larger vision for asia in general. let's talk was someone who has done the vivid.

when you listen to the language of president obama, is not a language of another time and place. ? >> economic growth is what it is all about. can you explain why democratic and a republican on --s and -- ravaghi republican president jettison avp? >> in order for us to maintain growth, we need to see faster growth in emerging economies. we will need more trade, faster growth. it won't happen unless we have a more integrated economy.

francine: i don't know if inbalism means a stop technology or reeducate to help people feel like they are people waiting in globalism. i do see a way where gdp growth grows globally but you put up a tiny barrier to resolve the domestic crisis in western countries? i think barriers are a falls hope. citizens ofducating countries where they feel up behind. preparing for jobs in the future. that is the first part. the second part is making sure that the world is connected in ways that will allow a new emerging economists to play a critical role. robert kaplan mention the role of one belt, one road. thee's no secret of was economy needs to grow.

there's 1.2 billion people who still don't have access to the internet. tom: we will come back. we will continue with robert kaplan. my books ofs one of this summer as well. front and center for secretary mnuchin, our conversation today good morning in canada

taylor: it is an acquisition that could transform the supermarket business in the u.k. a $10 billion deal would leave it as the biggest shareholder. it would create a supermarket giant that i could surpass tesco in market share. going all ins are on gasoline. hedge funds have agreed that prices are the highest on record. futureswhen gasoline are the highest since august. denmark is having second thoughts about so through these on electric cars. dropped tremendously after the government phased out subsidies. quest we had a tax incentive. you can discuss whether it should be bigger.

i will not disprove that. is about theaper supply side, said his beat. i have announced as well that we will present a package. resemble --ore, visit bloomberg.com. the best reporting on their favorite teams. that is your bloomberg is this flash. quacks thank you so much, taylor. she supported remaining in the eu, it now smacks brexit.

thank you for joining us. for the new home secretary? he has always been a eurosceptic, but never did anybody think it -- his heart was in it. he was quick for the referendum to come out and said we are all brothers and now. he came out last sunday and we did that the u.k. should leave -- where the debate is right now . he is in favor of leaving. does it make theresa may's job she will difficult have the will of the people the cabinethe has

and in inner war cabinet. now, with this appointment, road was pro-eu. one ofood point the things that we need to remember is that parliament way -- may not be essential. it could be as soon as next she has made this a vision .he would have made a direction robert kaplan, a wonderful new have -- have

average. what is it they need to know? >> china's belt and road initiative, the prime subject is iran. not only the middle east, but central asia appeared 80 million haidi educated people wanting two hydrocarbon zones.

china is investing in iran, daily -- dating in its row i'd the chinese will remain -- continue to do this time after dime. usn: senator trias calls pathbreaking and village or and pavement wel narrow have to go after three profit for those. think we can do with our current. we have 280 platforms. berries greats remember, we have somebody

platforms that will be 80 20 costs a new gnome it's a lot of money, just to maintain a healthy very harry now. now,ize of the navy we had we have to figure out why foreign-policy is, eric garcetti russian russia has a new system the o'reilly with the just

united states knees -- remember, russia is a country that has meetinguclear live with the way you do that is you have to build up leverage. something we have not done in many years at first, you renegotiate for the new issue reserve right now, dean harry, forefront .ducators we go with a real pop on the 24 androliferation 25,

engages society. to howan afford a lawyer do we dry the earth a loss into .heir education process the are trying to rewrite had to grow the economy without growing more inflation. even with an increased locals we blame for its strong,

but it will be all of us from the press full-time in the past. get the new reality as the while the process thoughts the further and three is to do her that future. we can go back to the economy have. that can be a great feature. unless we do a horror. . quest youto be there

really think the the junior remsen of robber is this. the numeral gentoo the first for.government .ou displace the cha-cha quacks we have to think about the right skills that need to be parted.

they. .o we have to transition. college though we are not able to place in. here we have a number of ideas. this is an assured me. can you have the me. two missiles to use accuray. , we are bringing

.ur we will how they were. i need a jack. . i .

. . that is why i am independent. had an early retirement.

talk with your advisor. willing -- were no gary. willing -- were no gary. slowlys shot and retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered.

leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. mr. elliot, what's your wiwifi?ssword? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. now, far closer than you ever imagined. detailsafta negotiators

it outthe move over eight will get pretty wild. it is aur insurance and highest estimized