♪ anna: good morning, from bloomberg's european headquarters, i'm anna edwards. >> this is bloomberg daybreak: europe, and these are today's top stories. grace.rump's a road he extends an exemption for steel and aluminium tariffs for the eu, mexico and canada until june 1. matt: confidence lay. the u.s. treasury secretary steven mnuchin tells bloomberg that he is not worried about the bond markets. >> wreps just say, it is a very large, robust market the most liquid market in the world, and there was a lot of support for

the market that it can handle. anna: heading to the havens? . this millionaire tycoon says half of his net worth is in gold. my net worth is in gold, so it is a very high percentage. ♪ anna: a very good morning. welcome to "daybreak europe" and welcome to our audience across canada. welcome to the viewers in canada. let us talk to men us about what is going on on the markets overnight. not as much as the normal handover from asia to europe, because the markets are close in europe and asia. but we do have an update on the australian market. no change in interest rates, by

the rba, that was a big headline there. closed, markets are china, singapore, south korea, you get the picture. u.k. ande open in the denmark and many other places will be closed. i wanted to highlight where we are at the moment as we head into the first of no code days of fed deliberations. the focus will be on three or four rate hikes in total in 2018, including the one that has already passed. the price of oil, we will keep an eye on that due to the news surrounding iran. the israelis are alleging about iran has put the -- price on an interesting manus: very good morning. there is a lack of conviction, that is what that. chart here says we broke the two sequential losses. money for two shores,

earnings per share ratcheting up, the most in seven years for the first quarter. the fact of the matter is, since 2007, the s&p has only closed with a loss in april once. it is not above what we are earning now, but about what you aren't in the future at/and burn. the analysts have the razors out. we ran the numbers, and earnings growth will decelerate from 20% in 2018 to just 8.9% going into next year. the biggest detractor from the earnings story will be technology and the discretionary sector. , allight look at this risk the relief rhetoric around kim jong-un around donald trump getting set to meet. but the bill or near that i spoke to, he told us that 50% of his money is going into gold and stocks.ysical

. he is also calling for a market crash we will hear from him later on in the show. anna? we will hearead, from him along with other voices. there is a lot of interesting voices weighing in around the yield curve. we heard a little bit in your program about the fear, how he characterizes the attitude in the equity market at the moment. we expect the features to be higher by about .10%. here are the news headlines. >> u.s. president donald trump will delay imposing steel and aluminum tariffs on the european union, mexico and canada until he finalizes deals with them. the administration has reached agreement in principle with argentina, australia and brazil. the decision comes as negotiators continue talks to agreement.nafta

than a trump also said he is considering holding a potential meeting with north korea's kim jong-un at the demilitarized zone marking the north and south korean border. or in other countries, including singapore. speaking at a joint white house press conference with the nigerian president, he also expressed optimism that the summit would take place. he reiterated that. that he would leave if it was not successful. israeli prime minister, benjamin netanyahu, says his country has a lot of imminent documents proving that iran has a nuclear program. he is trying to give the president ammunition to pull america out of the iran nuclear accords. the u.k. is proposing a new plan to kickstart stalled brexit talks and make progress on the issue of the irish border, as negotiations resume this week in brussels. prime minister theresa may's tom of negotiators is trying

work out how the u.k. and the eu should work together on the border question. wantedavis has said he to move quickly when talks restart tomorrow. 'sazon founder jeff bezos aerospace company, blue origin, has successfully. tested its booster it was a rocket.est of the sub it is named for alan shepard, the first american in space. he hopes to start working on it more as soon as next year. you can find more stories on the bloomberg at top . anna, manus? manus: thank you, very much. they asked treasury secretary stevens -- the u.s. treasury secretary spoke to bloomberg at

a global conference. forward to ang very frank and the continued discussions, to see if we can solution.tual i think the good news is that president trump and president sh xi jinping have been talking about the trade imbalance. acknowledged that we need to have a more balanced trading relationship. i am going over there with our large economic team to see what we can get. >> if i were the chinese and i was looking to that team we just described, it will be you, u.s. trade representative's and advisor, peter navarro, you often hear rather different things -- >> and larry kudlow and secretary ross. reporter: so should i believe sitting to you if i am the chinese, to prepare for these questions, or should i be listening to peter navarro? guest: you should be listening to all of us.

we have a terrific economic team, we meet a most daily on these issues, with the president regularly as well. i think it is good to have a diversity of opinion. when we go over there, we will have one voice. reporter: what is the hope for success on your way back? guest: i think you will know when you see it. anna: in intimidating list of visitors to the chinese, perhaps. this comes as president trump delay the imposition on tariffs ,. the eu, mexico and canada pushing it back to the first of june the white house is hoping to broker deals with those groups. let us look at what this means for europe with our next guest. and marie who is the most exposed when it comes to the metal tariffs we have been talking about for some time? >> when you look at them up, it is certainly germany and the netherlands. those countries are big exporters of steel. the trump terrace would hit exports of kneeling 3.5 -- of

ofrly 3.5 million tons finished goods and semi finished goods as well such as wires, tools, things like that. ahead of this new deadline, investors may be bracing swings.es for price as said in a recent earnings .all, prices are skyrocketing the european premium as you can see here, has claimed much more than the u.s. rice counterpart since march 8, when trump with these tariffs on the table -- the u.s. price counterpart. on the company front, the company's stock price is the most we have ever seen ever. with a 20% surge in prices, the revenue jumped or we had the revenues on the bottom, so you can see a closer look at what is happening on the industry, more corporate front. anna: thank you so much,

anne-marie. tariffst how the metal could impact the european markets. joining us here is bob. and a friend of the show. the numbers are translating into the trade conversation, europe getting another month, but there is also steven mnuchin and his team going into china. on the be picking up comments from steven mnuchin there, what will you be looking for from this view as delegation as they take this trip to china? to: i think the first point make is that the u.s. is negotiating on trade on three fonts. there have been negotiations on a nafta, negotiations with the chinese, and a potential dispute being delayed with the european union. i think the first point to make is that u.s. resources on trade negotiations are currently looking very strict due to the negotiations on his free --

these three fronts. with china, let us not forget that the underlying issue is chinese trade surplus in excess with0 billion annually america. clearly, the chinese are sensitive to wanting to get the number down. if you look at recent speeches from president xi jinping and other leaders recently, have said, yes, we want to increase imports. he wants to improve intellectual property rights for companies. from the american companies, that is a huge complaint, of companies working in china. literally every week over the last month, you have seen announcements being made by the chinese, opening up china to foreign investment. most importantly, ensuring that legal rights of foreign investment our secure. anna: you wonder how much the mood has been changed. manus?

manus: bob, good morning to you. the three most read stories on bloomberg today -- israel claims proof of secret iran plans, whether this is true or not, we will wait to see in the big unveiling by benjamin netanyahu. the bottom line is, the temperature is rising in terms of the u.s.'s propensity to restore the agreement. have markets -- are they ready for the u.s. to walk away from the current agreement format? guest: to befriend, i am much more worried about developments over iran, than i am on the trade negotiations with china. coming back to my earlier comments, i am fairly optimistic that america and china actually will find some accommodation. that we will not see a trade war there. ofer turning to the issue middle east and iran, i think the first point to make is that we clearly have this divergence of opinion between the united

states, the united kingdom, the eu and russia. and recently, we just heard both on the lamarck all and among omicron in washington, -- angela emmanuel macron in washington, trying to dissuade them from pulling out of the agreement. we don't have a coalition of opinion between the u.s. and its other partners here. i think there was a high probability that the u.s. will certainly threaten while it is already threatening to withdraw, but it could take action. therefore, that could invalidate the existing agreement or throw it into some turmoil. the net result of all of that will be i think, investor uncertainty about the oil price. i think we have to recognize that political uncertainty is supporting the oil price, therefore, we could see some further upward spike in. anna: oil prices. anna: clearly, the geopolitical story here in conflict, is uppermost in people's mind. but there will also be a

inflationary impact with prices going higher. tvhave bloomberg tv chart, g price shows how the hit its target for the first time in a year. is aon the u.s., there different inflation story been in europe and japan. specifically on the u.s., we have wage increases, it was clear that there is a tightness in the labor markets, we are quite significant wage increases and notably for skilled labor. you saw that in the background data in the institute for supply management surveys, i think there will continue as well. additionally, the rise in commodity prices. trade tariffs will feed into higher inflation in the united states. aluminum prices have risen from less than $2000 a ton to less

than $300 per ton, that will have an inflationary impact, as will further trade tariffs. if one looks at headline cpi, currently two point 1%, two point 4%, i think we will probably see headline cpi close 2.7 percent. that has implications on fed policy. bob, last week, bond traders tripped over themselves to get a hold of the seven-year yield on the auctions. i would like you to listen to this: ok, unfortunately we have lost the audio. basically, the treasury secretary, steven mnuchin, i will paraphrase for him, we have the hard copy here -- it is a very large and robust market, the most liquid market in the world, and there is a lot of

supply. of course, germany -- january to march, the government bought seven bonds. would you be tripping over yourself to purchase seven-year bonds at 3%? of june, myend forecast for 10 year u.s. treasury yields would be slightly over 3%, i think one has to work on the assumption for year end, that the 10 year yields will be close to 3.5%. i think there are two seems here. the first is that the trend in yield increases is very much intact, certainly intact for the rest of this year. but it comes with a big caveat. the rate of yield increase is going to be i think, fairly slow. anna: bob, thank you very much. bob barker will be staying with us. investment committee member and regular here at daybreak europe. next, brexit talks

falter over the irish border dispute. manus? manus: a little bit of apple iphone x, there is a bit of a problem, or is there? have you upgraded? we will get on that a little bit later on today. it is all about the upgrades. this is bloomberg. ♪

♪ anna: good morning, this is "bloomberg daybreak europe." 137.57 is where we are trading on the pound against the dollar. we will have a brexit conversation and talk about the

pound and united kingdom stocks shortly, the united kingdom being the only market that is open today in europe. here are the headlines. k anna, boeing is acquiring alexa in an all caps transaction that includes $1 billion of net debt. the deal is conditional upon a successful divestment and separation of klx's energy services group. airplanecomes as the maker focuses on a new energy division. &a have agreed to drop their plan to acquire the investment firm. founder,er -- the anthony scaramucci, will return as a managing partner. plans to raise salaries and offer quicker promotions as part of its euros long push to improve

conditions for bankers. base salaries for most associates in investment banking and capital markets will rise by 25%. morgan stanley is boosting pay to try to retain young talent. that is your bloomberg business flash. anna, manus? anna: thank you. negotiations are set to resume in brussels on the irish border dispute. prime minister to resume a and his main campaigner, tony blair, have said that these negotiations are hard to handle. we learned since the referendum and 2016, is that these negotiations are much tougher than people thought. there was a dilemma that the government has not resolved, about our future trading relationship with europe. withr the government goes an arrangement to stay closer to

europe, in which case we will be abiding by a lot of rules, in which case capable say, why are we leaving been? or we have a clean break with europe, go our own way, in which case the economic dislocation could be significant given half of our trade is with europe. manus: tony blair there at the conference, his comments coming may's team put options on how to address the irish border question. so the question does not look like it is going away easily at the moment. bob, the last time you were here, you work bearish on the pound. we have a chart in the library, the far value of the pound. it is under pressure at the moment. does that persist? yes, for aswer is number of reasons.

i do think the trend of. the u.s. dollar recovery that we have seen in the past month, continues against all other currencies. by the end of june for example, i think it is entirely possible that we will see the dollar euro at a slight yield of 1.20, we could see a move of one point 16 end.17 but the of the year for the euro i think the sterling will slip slightly against the euro, possibly euro. to .90 against the it is quite possible that if we have this conversation in two months, it will be close to 1.30-1.32. that is against the background of trend weakness in the u.s. economy. i think we will get slightly better numbers and we saw in the first quarter. but the operative word, here is slightly. , upn be .3%, or .1% -- .3% from .1% in the first quarter. anna: hsbc said yesterday that

they are pushing their forecast, that there could not be a move from the bank of england in 2018, or 2019, something to do with the weakness in the data. bob: the headline cpi at the 2.5%. is actually, i originally thought a few months ago that the cpi would come down toward 2%. i think one has to change their that.n higher commodity prices as we talked about earlier, some weakness in the pound sterling, if you look at the cpi numbers for those couple of months, we would be closer to 2.6 or 2.7. i remember the monetary policy committee -- i am a member of the committee, so i haven't and excitedly high level of inflation plus a weakening economy. so what do you do? the answer is, you probably guide investors that the best rates will increase, but you do increase.

them in the near term all of this discussion about a base rate increase in may, i think that is on the table. manus: bob, i would like you to take a listen to someone who i know you know well. take a listen and see whether you agree. honest.e to be my opinion, brexit is a catastrophe. people voted on something that they didn't know. manus: ok, he says, it is a catastrophe. do you think we are going into the eye of the brexit storm in terms of investing in the united kingdom? bob: i wouldn't use words like "storm", i think the key point on the economics is that the u.k., over the last 18 months, has moved from the top of the growth league in the g7 countries, to the bottom. clearly, there has been a growth debit for the united kingdom, from brexit. you see that in the investment numbers. anna: thank you, bob.

us.s staying with up next, we talk corporate earnings, big world earnings continuing this morning as well. we will discuss that nextthis is bloomberg. ♪ .

>> a live shot of the palace there at 2:30. the dollar-yen is not fazed and on moved. there is a renaissance in the dollar overall and will this move the dollar? and we shifted things are on a tentative risk.

>> good morning. let's talk about the aussie there is some of the gains in this session and this is the past few months and we have seen a cut back on that's in this is the second-worst performing in 2018 and this andt is showing the support , as you are saying, we have seen some strength and i will switch to the next chart. you can see that it approaches this and we will keep our eyes on this.

we have some of the softer areth data and we averageing the moving for the key support level and we are looking at the equities with and markets closed in asia we saw the losses pointing higher and this is the hedge at the secondbets fastest pace ever and really betting on lower volatilities after this that the record high and was below 16. let's talk about the oil price and the perils of success. rising giants reported

profits and disappointed investors. it is bp's turned to deliver numbers and what can we expect? let's bring in kelly and bob. straight to you. i suppose the question is, will they follow the trends set by the other majors? upside of thethe business. see a yes, you should rise in earnings that bp. be higher oil price could hurt the downside of the business and and we maye exposure see a better one have bp than some of the others.

has is an industry that wee down at tufts times and see oil prices as high as they are. think that we should see if they get paid back and the earnings are great. to some degree, they do not matter much. that's -- go ahead. you think the future strategy is going to be, given this geopolitical tensions. is a large part of a thinktion base and do you

-- >> there is a lot of exposure to rosneft.d a stake in there have been a lot of sanctions before. bob dudley has worked in russia a long time and knows how to deal with them. there was a complaint where he he was nott this and so thrilled about that. the next round of sanctions does not affect him. let's bring it back to you you are looking at the and there isp

undeniably $75 oil and that is good. dividend health. dividend --pare the the dividend yields. although i still think the bond yields are going to rise and the dividend yields are attractive, it is the oil prices trading for brent over the balance of this year and i think that that underpins the energy sector. you look at consensus earnings for the energy sector and they are very strong indeed and the consensus is the earnings forecast is going to be up 40%. >> you stay with the sector.

are you concerned that they might be tempted to spend the cash? >> there are plans with the oil majors and it is quite interesting. a lot of this is on alternative energy or diversification. forinteresting question shell is if they are an oil company or a gas company. the economics of energy looks more attractive than it did five years ago. >> bob, stay with us. bp reporter, thank you very much.

this ceo will join the bloomberg team at 7:30 and there will be a full market coverage there. >> do you know what? i left the apple iphone on the plane. it is in transit. they are going to report the numbers later today and apple has been on shaky ground going into the earnings tonight. investors got some relief when the stock climbed. let's talk about that and what will we hear about the iphone. are enough people upgrading? alex.bring in he joins us on tech matters. apple's.we expect from

what is happening with the rest of the business is fewer the czar that revenue is going to grow and the iphone x is very expensive. the other side of the equation andhe tax breaks introduced it could be as much as $100 million. over the next three years, they said they want a neutral $170ion and they have billion and that gives them something to play with. >> where do you focus the numbers tonight?

do you look at that or do you look at itunes? where do you look at the most critical part of the growth story for some of the earnings we have written up today and this has not lived up to the hype. what are we really focused on? >> the story apple wants to tell facebook andf google and this quarter, the march quarter, it is big for services. this -- t >> does it come down to them saying they are making 50 billion here? do they need to confirm that? a hard numbergave and said that they want to triple what they had done and that equates to about 50

billion. how they are going to get there is not going to be told to us. there are a few things they can do to bring in the revenue for media and video and i can expect this.ze of ironic in themost software business at a time when lots of investors are nervous and confident around hardware. >> the question i have for you is, given the manufacturing base, to what extent are they upnerable and are they tied in this visit to beijing? andhis is a massive concern economic zones, they don't have

anything going into those zones. this is absolutely a concern and that is why you so tim cook having lunch with the president last week. do you look to it? what are you looking for for a set of earnings the size of apple and the diversity of apple ? >> to what extent do they diversify and you could argue the consumer is getting there is a risk of it is noturation and surprising that there is disappointment.

diversification, that is the way they have to go. how do they achieve that? >> joining us this morning and continuing his conversation on bloomberg radio. you can stay tuned for that. this is where you go to on your bloomberg terminal and you can browse through the charts and catch up on the key analysis. up, a little bit more from the egyptian billionaire. that is next.

joining me right here on daybreak europe. this is bloomberg. this is bloomberg.

good morning. this is bloomberg daybreak. it is early on a tuesday morning. let's get to the bloomberg business flash. it is an all-cash transaction and theludes $1 billion they offeras maintenance and spare parts to airlines. the goldman sachs president said

that the new technology working on the trading desk has been smashed. were years ago, there people making markets and stocks and they now have three. they caution that the introduction of more technology into the trading business made it more efficient for clients and introduced more risks. includedl conference wilbur ross and a former microsoft ceo. that is your bloomberg business flash. president trump has put his trade war on hold and is holding off on tariffs until june. risk off ofo take the table? he says that he is keeping

nearly half of his wealth and gold. >> i think that the stock market and i think that another crash will happen and that is why i'm in gold above my ratio. i have 50% of my net worth in gold. it is a very high percentage, you know. >> you don't think you should divert? and iteated some value was not the top of my net worth when i started. issue go back to five years ago. you have china and the onsumers and people also

tend to be afraid of crisis. , it doesn't help. something that is a longer-term view in terms of moving to commodities? i have to convince my mother and it has been a good investment for me. i found this and there are no businessmen on the boards of these companies. it is mostly just miners and bankers. some vision and

imagination. >> the investment strategy speaking to -- in financial center's ceo is london with us and it is great to have you with us. about? the european trip we visited paris and madrid and we were in london. reaching out to the long-term partners for the new era. this was a lot of economic reforms. >> we are not post blockade, are we? there is a time for reform

and we want to make sure that our partners are aware how the economy has been resilient and we reveal the strategy for asia. i want to give you some breaking lines coming through call for is a repeat u.s.e is the the euon of aluminum and

says that this prolongs market uncertainty. thing you replicate is competing on how to establish yourself as an authority into other markets. phyllis in on other moves. basically, this is been around since 2005 and we started a year after and we see ourselves as, lamenting other centers globally. were is a niche angle and have basically put this together to develop the local financial services sector for and i think that, 15 years into the making, we are looking at how to

withine the activities financial services and we are out to long-term partners. qatar is an alternative hub and we are looking into a strategy iran,w markets, kuwait, pakistan, turkey. these are markets that have not fully been covered and we have a , given the political alliances. >> you think that you can do dubai andsiness than that is why it helps to be in q atar. >> we have tax agreements with these countries and we are

looking to incentivize multinational presence. those countries are more risky, especially when it comes to iraq and pakistan, but we believe that this can be a generous incentive plan to tap into these new territories and new markets. >> one of the things that people have said to me since i have in here is in regards to growth and you get the business is in and institutions, to dubai. penetrating the local market is the challenge. help thegoing to do to local market more? we have allowed them to penetrate the local market and what we are doing differently is we are allowing all of the

financial institutions and unknown financial institutions this isull access and driven by oil and gas and it goes to health and financial services. this gives multinationals full access and this is incentive by itself. standoffhard with the and is it making it a harder sell? >> there definitely is logistical problems and we are taking full it vantage of the situation and we are making a lot of changes. changed our equity ownership and we are taking full

advantage of the situation, turning the short-term problems into long-term gains. >> thank you for joining us. treasurywe are talking and will bring you the interview . this is bloomberg. this is bloomberg.

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>> good morning. this is bloomberg daybreak. ofi am live from the city london. these of the top stories. >> the president extends the exemption from steel and aluminum tariffs for mexico and canada until june 1. >> the confidence play. says.s. treasury secretary that he is not worried about the market possibility to handle the wreck heard bond borrowing.

>> i will say again that it is a large and rub lost market and there is a lot of supply. i think the market is like that. >> the a's on the prize with the cash flow that will be the focus. we bring you those numbers right now. >> raking numbers coming in from bp. the adjusted net income is $2.59 million and the capital expenditure in the first quarter would be $3.54 billion. the dividend is in line with what the market had anticipated and it is a comfortable beat.

by the way, chevron beat the estimates and exxon fell short of the target. this is a company that suffered the penalties after deepwater and it is all about that cash flow. calmt for that number to down. bp will continue the buyback program, buying back shares for $120 million in the first quarter. that will continue with a vengeance and the number that i penciled in is 5.2 billion dollars, including the condo payments. here we go with the operating cash flow and that is $5.4 billion and this got battered. they generated less cash ban what the market anticipated and beat, in terms of cash flow. 7:30 with joined at

the bloomberg team. anna, you have tobacco earnings. the tobacco earnings give a red headline with numbers coming through. the first quarter operating profit is a little bit ahead of the estimates, the future is all about substitutes for traditional products and new technology. the thing they have to say is to watch this and they are talking inut expanding to nationwide a move towards new technology and how much, if at all, that is offsetting weakness. you see tobacco caught -- tobacco products as a question and we are getting a share buyback announcement from a insurance business. this is the share i back going across the screen.

let's tell you what is going on with the asian equity session and it is not as much as would normally take place stop you can and ae australian market number of markets are out of action here. china, singapore, india. to list thequicker markets that are open today. and we going here andhe first of the meetings because thisof oil was below. more breaking news? >> we have more breaking news this time and they will sell the and theg percent

proceeds will be about 1.2 billion pounds and these a potentiall be that they used. proceeds and the have agreed to sell the remaining. there is this extension for the eu in regards to tariffs and there is the north korean negotiations for the relief of tension and you are seeing the there is this nice little lift. geopolitical of plays and it suggested the

ability to have nuclear weapons. the equity markets are slashing the outlook for earnings and this is the market. off and what does that mean for the market? they say there will not be a bear market in the u.s. treasury market. big moves from the pimco team. these are the markets and the treasury is below this level. tripping over nothing. he has the first word news. >> donald trump will delay imposing steel and aluminum tariffs until june 1 as he

finalizes the deals. white house says that they have reached an agreement with argentina, australia, and brazil. talks continue to revise the north american free-trade agreement. zone markedrized the border with south korea. speaking at a joint white house press conference, trump expressed optimism and reiterated that he would leave, if not a success stop the treasury secretary says that he is unconcerned with the rising there was debt after a record amount borrowed for the quarter. >> it is a large and robust market and the most liquid

market in the world. there is a lot that the market can easily handle. us after ross joins 6:30 u.k. time. >> benjamin netanyahu says that thatountry has proved there is a secret program to build nuclear bonds. this gives president trump ammunition to pull out of the accord. the allegations were called lies that were dealt with by the international atomic energy agency. 2700l news powered by journalists and analysts. you can find more stories on the bloomberg top . the rates in march, the fed is expected to and thispolicy steady

increases creating a tough environment for the bond investors who have seen the treasury yields at the highest level in the last four weeks. speaking with the ceo at the institute about strategy in this changing environment and he said that they were starting to reduce the risk in the bond market. benchmarks above the and they have given us more money. i think we are cautious right andand we're reducing risk run andot to hit a home we are just trying to stay on course and making sure that we do a good job, given the fact that there is not a lot with that interest rate environment.

we may have a shock, if we think that goes up and we would try to do the best we can. >> you are down in the first quarter. you were down because that market was tough. had at is right and we raise in the rate in the u.s. and there is a lot to play for and it means that there is an opportunity. bedid you not expect this to that? >> most of that rise in the rate is behind of and we think that is not going to see a bond market's in the next two years. >> that was the ceo speaking

exclusively at the global conference. joining us on set is the economist, jeremy. nice to speak to you. the context. where do you see the dollar going? where do you see it going as the fed titans? rise, butt always what do you make of for this goes next? >> to be honest, the markets have been a little bit easier and we have seen a trend developing with a lot of this elsewherethe weakness fearhere is a slight coming with the euro question

and it is all putting together constructive views and, whether remains toe or not be seen. we are probably likely to see three or four over the course of the year. trigger and the there is the structural issues and political issues that still had to be dealt with. the dollar strength may be here now, but i wouldn't put too much in that much longer. look of the glasses. very intellectual. >> thank you. >> help me understand what the and if itor the fed will harden the case for a more

aggressive fed. is 1.8%. >> i think that it will harden the case and we are likely to talking and the reserve about the higher bond yields. to be honest, i inc. that the sentiment within the is to allow this core number to run a little bit andover the next year or so we have to have this pass basket the consumption and this will continue to build of build over the course whether that translates to dollar strength remains to be seen. >> we have heard the views of

speculativee short is quite a large amount of money. >> if you look at the chart, every time we have gone back, it was pretty quick and i wouldn't be surprised to see this get squeezed within the next couple of weeks. will be determined by the inflation in the united will come this be the and there will supply coming into these markets that will be picked up if china remains part of the market and if we see this and whatever it may be.

>> we see the high-level delegation and other characters heading to china this week was a about there not being any indigestion. and it is a flow of the dollar is bouncing and there is a belief that equities are a stalwart. withwill fade that move the equity market getting called and not having anything to do with the dollar. >> to a certain extent, we are continuing to see the equity markets and looking at these across the board this morning in order is still a global picture.

prepares the dollar to no longer be a funding currency for certain traits and the only story is an interesting one that will continue to evolve and we would like to see move further share buybacks in the usa and in productivity's which would obviously boost the results, but as it stands, this is certainly being held by the equity market. course, those equity buybacks greg ray fear in the market and we have talked about that. we have much more to get to. jeremy stays with the team. killing the hard brexit. the house of lords votes down the threat to walk or from the talks without a deal. how would this affect the

negotiations? andhe oil earnings continue we discuss what to expect in the first quarter. we are joined at 7:30 with the market open. this is bloomberg. this is bloomberg.

>> this is daybreak europe. a number of markets are closed today. in europe, i know the the u.k. is suing to be open few and far between. the pound against the dollar, we'll get to that would jeremy the bloomberg get business flash from ed ludlow.

this came in a $2.59 billion. cfo joins us at 7:30 u.k. time. this transaction includes the net debt and they will pay per share for the successful this move comes they -- do on >> the goldman sachs president has said that new technology has been slashed over the last decades. speaking at the global they had people

making markets and stocks. it also introduced new wrist. tom barrick and the former microcell ceo. that is your bloomberg business flash. the u.k. is proposing a new edan to kickstart the stall brexit talk says the new oceanic asian's resume in brussels. has directed and new template for how the u.k. and eu should address this. forward, we seem

to be taking a step back. a fairlys to be intractable problem. this? going to >> yes. it is tied up in the customs union question and that got a lot more airing in the house of commons. they throw a back in the government's face and the plan in eu and to be honest, it doesn't look like they need a the customs union has

to be part of this border solution to allow the frictionless transaction that everyone is used to and simply borders exist and our between france and switzerland. this and we have the this tradeow does around? an interest in degrees of certainty and we will be interested in the agreements and conversations we are having around the customs union and i think that there may be a vote to keep the u.k. within a that is hown and

andesa may guides are mps it is positive for sterling. we talk with a negative for sterling and we could be looking for another general election. and wer-term is positive down bythis was shot the gdp figure and we're looking at this for the end of the year. at this forwe look is theys in a row and said for the two bikes? >> yes.

a point whereo the wagers go higher because of any othery and pressure is likely to be transitory and will likely look through those. ,n the grand scheme of things this makes borrowing costs more expensive. >> we asked which direction will be next for the bank of england. >> i don't see the cut anymore. at .5% and that was was for seven years. why can't we do seven more. we can tread water for a while.

>> great to see you. they will be speaking to bps ceo and many markets will be closed today. many markets are not. bear that in mind. this is bloomberg. this is bloomberg. retail.

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♪ guy: welcome to "bloomberg markets: the european open." we are live from london, i'm alongside matt miller in berlin. happy may day. matt: there isn't a lot going on across european equity indexes. the cash trade is less than 30 minutes away. the u.k. will be the only european market trading. ♪ guy: