x good morning. this is "bloomberg: daybreak europe." : these are today's. stories. u.s. will pull out of the iran nuclear agreement. >> we know exactly what will happen. >> the treasury under the hammer. a $25 billion bond sale.

up suggestse liberty could announce the sale of some european assets to vodaphone. right now, we speak exclusively to the dt ceo. ♪ >> ever the optimist at deutsche telekom. raising the numbers to 2018, the 23.3eadline, raising by billion euros. comes inrter revenue at 17.9, a little lighter than the market expected. why justifies the reasons t-mobile and sprint are going for four years again. they are going for this potential deal.

17.9,quarter revenue, under the 18.1 target. ad of the5.55, ahe 5.15. costs are the critical issue. raises consumer growth targets and the united states, raising the customer growth target. that's coming through on deutsche telekom. banks, take it away. anna: lots of reporting to the reporting.lots of ros. eu and the digital profit growth, engineering company digital business will make up for a deepening slump in the power and gas division.

manufacturing now expects earnings per share in that range, 770 - 8, compared to 720 euros to 770, they are upping that. the ceo says primarily our digital offerings show impressive performance. we demonstrate our commitment to the company capability to mark structural changes. structural changes has been with this business has been about as of late. changes have affected the whole sector. general electric as well came to an agreement with unions today. that has been a big part of their strategy shift as they deal with new sources of energy. iran, part of the story. they will comply with all export control regulations. >> a little bit of banking never far from the mind. markets,ates in the

this looks like a very comfortable -- cost to income ratio, 63.3%. the target is 52% by 2020. we have update again. 63% in terms of the cost to income ratio. track to invest 900 million euros worth of cost savings by 2020 14 ing -- 2021 for ing. a lead number for the market. it has gone red. >> numbers from the world's largest brewer. first quarter, adjusted gross, 6.6% is about the estimates. a solid third quarter for this company. when questions analysts were asking was how much was the ramp-up in marketing expense they were going to have to do it

ahead -- do ahead of the world cup, taking place in russia this year. how much was the marketing going to can tell -- curtial that ability it -- curtail that ability in the third quarter? they have to say on the world cup. let's put up the risk rate. lots to say in terms of where we are following the announcement from president trump. percent, moving lower, not a severe selloff. why? does the market see limitations in other assets? limitedications, or geopolitical effect? is it because we have to pin down facts about what this means and what other regions will do? up by 2.3%.oil

u.s. 10-year yield of 2.99% -- 2.99%.and percent -- you will be later with this interview, talking to the emirates airlines ceo. and numbers from tim cook. todayld hear as early as about a deal between vodafone to buy liberty assets and continental in germany -- and germany. here is juliette. france, germany, and the united kingdom say they regret president trump's decision to withdraw the united states for the 2015 a quarter to curb iran's's nuclear program. america will reinstate financial sanctions on the islamic republic, it will open an uncertain new chapter for the middle east.

trump called the deal horrible is one-sided. a point when the united states had maximum leverage, this disastrous deal gave this and it's a regime of great terror, many billions of dollars, some of it in actual great embarrassment to me as a citizen and all citizens of the united states. energydered the atomic organization to be ready for action, so that if necessary, we can begin industrial enrichment. until implementation of this decision, we will wait for some weeks and hold talks with friends and allies and other signatories of the nuclear deal, and those who remain loyal to the deal will talk. it hashe united states, been alleged a company tied to a receivedligarchs

$500,000 last year to an entity that donald trump's lawyer used to pay has money to actress stormy daniels. it is the latest twist in litigation brought by daniels, dollar payment michael: arranged on the eve of the 2016 presidential election ansecure her silence about alleged encounter with trump. delegates having arrived in court -- north korea to prepare for president donald trump historic meeting with kim jong-un. kimis symbolic gesture by will be the release of three american detainees, something president trump hinted may be high on mike pompeo's to do list. moon, prime minister

are and president xi putting aside previous conflicts to hold trilateral talks in tokyo. they will discuss infrastructure and the north korean situation in detail. global news 24 hours a day, and at tic toc on twitter, powered by more than 2,700 journalists and analysts in over 120 countries. you can find more stories on the bloomberg. a little bit of downside here in asian markets. you got the nikkei in late trade percent,lf of one but tencent shares supporting good buying in hong kong. most analysts think this is positive for equities. akarta is rebounding after 1.8% drop yesterday. still seeing a lot of weakness and em currencies and bonds. profitexpects an annual

above estimates. ofannounced a share buyback $2.7 billion. takeda, the news of acquiring shire. was up 4% yesterday and is seeing a little bit of a reversal today. numbersng through with saying that compliance costs hurt profits. commonwealth bank. >> the very latest on the markets. regrets as to president trump's decision to pull out of iran's nuclear program. the news that america will reinstate financial sanctions on the islamic republic has sent oil above $70 a barrel this morning. bring in our managing

editor for the international government in new york. the germans are coming up this morning. macron has come out with his tweet. germans are saying europe should continue to stick together. your immediate take is this is the most hawkish of breaks. >> in the sense it was a clean break. we could have seen trump be less clear with what he wanted. we could have seen him stay within the framework of the jcpoa for conflict resolution. instead, sanctions are back on immediately. 180 sanctions in 180 days. it sends a very direct message to iran. you were talking about macron and merkel. they have to quickly find a way to save the steel, -- save this deal, keep it from falling apart

from within. that is why you have the message from them last night. dovish, sayingly it is the five of us. but they have their work cut out for them. it is not clear whether corporations will want to follow along. >> will it be possible to save , or is some alternative possible? you mentioned how there could be butoling off period, sanctions are now on immediately with a defined time scale, so perhaps not. see thewe could negotiation of some sort of secretary agreement during the time that sanctions are phased in. you would have the jcpoa, and something on the side that would look at iran's other activities in the region, the development of missiles.

it would seem somewhat unlikely. you need iran to play ball for that to happen. in terms of holding together the agreement right now, you need to get the corporate on board. come in,of having fdi make long term investments, they give up everything and get nothing. europe will try and persuade them, to give them some reason to stand without falling foul of these u.s. sanctions, which are really sweeping and in perilous territory. you, our managing and europe and africa. and we are looking at the oil market impact, following president trump announcement. opec

go>, an excellent function in the terminal. this makes up a third of opec output. 3.70 5 million barrels pumped in april per day. million barrels pumped in april per day. saudi arabia is leading the pack. it put out a statement already saying it will mitigate the effects of sanctions with other opec nations. output told raise 11.5 million barrels a day immediately. key dates to look at four in terms of opec. 22nd, partners will be indiana for a few meetings. -- will be in iran for a few meetings. this,ed ministers about but it is faux pas to talk about another member, especially when

it is not official. at who is importing uranium crude -- asia, turkey, and europe. they are the biggest destinations. you have china, india, as well as korea, turkey, and italy. the united states made it clear they would go after other nations doing business with iran. reinsurance,rget any effective method of halting iranian oil tankers. -- an effective method of halting iranian oil tankers. saudis last week increased their asia, itfor crude in will be much more expensive for importers to get crew from saudi arabia. arabia. from saudi china and india repeatedly expressed concerns over u.s. measures.

their desire to fight this back must be even bigger, given these trade tariffs with the trump administration. thennamarie, breaking down markets for us and the reaction. let's bring in our guest host this morning. good to see you. a wonderful piece on the bloomberg, saying there is defiance in the u.s. bloomberg in the shows when the eu and u.s. implemented sanctions before. this is when they were lifted. we are looking at 25% of the market being taken out. one of the risks to the oil market, everyone was telling me it was all priced and, the united states pulling out of the iran deal, but it doesn't look like that to me this morning. >> i accept all of the talk in

recent weeks. this has been widely anticipated, mr. trump coming in hard. what should have been anticipated was the price, but that is not evidenced. we are seeing a reaction. i get the global growth story continues without break. many people anticipated the global growth spilling over, trends will weaken, but the most recent macro data we have's says economic growth continues to pay, which keeps the demand very healthy. >> we are interested in this move upwards and oil this morning. oile does this leave corporates? i have a chart that shows the way they have underperformed. there has been a crisis in

recent months. with the geopolitics explain some of that? -- would the geopolitics explain some of that? >> the correlation between oil and geopolitics is low, anyway. ipeople want to pay a high oil price, look at the -- it hasthe riyadh - historically had a higher correlation with oil because of equal commodities complex. >> oil is trading higher through this quarter. e -- shall get spanked because they didn't produce enough cash. we are looking at dividend yields. they have been quite sweet. 5.45% on bp.

5.53%, oil dutch. these dividends should hold, shouldn't they? >> the problem with the dividend yields is the real concern the market has, dividends are spending money that should be returned to shareholders at a faster, not slower rate. these companies have detrimental returns -- every new dollar they invest generates a lower rate of return than the historic dollar. saying, you are badly investing the money you are generating, if it back -- give it back. you very much. numbers.the ing reported underlying pretax

profits for the first quarter. let's talk with the ceo of ing this morning. in terms of the market, it wants to know about your net interest margin, the mortgage market. give us your viewing terms of how the quarter played out for terms of how the quarter played up for you. >> it played out well. we are booking new clients. we have 400,000 new clients. more, 11.2,000 million primary clients. we also make more loans. producedasis, we have $12 billion worth of lending. that is quite well diversified. it is partially in the

commercial and partially in the retail banks. within the retail, it is partially within the mortgage market. we are growing everywhere. if you look at margins in general, we have a slight margin of -- decline,t but part of it is due to incidental sectors. margins are climbing on the saving rather than on the lending side. anna: you mentioned growth in loans. some analysts have been pointing to the strength in the corporate loan growth over recent quarters. what happened to that most recently, and is it sustainable? usoverall, if you look at over the last quarter, you always find we are growing somewhere. that is on the retail and on the wholesale side. an industry lending,

maybe oil prices picked up, as well as the dollar. it might also be on the general lending. the pattern in what you see in our company, in essence, we are growing every quarter. this means the results are growing quite robust. that is what you see back in our financial numbers. >> i want to ask you about the costs. you come in with an underlying cost of 60.3%. you have a top market of 50, in the mid-fifties? this is something the market is going to focus on. what are you doing to reign those costs bac, and what happens -- back, and what happens to the cost to income ratio again? >> our normal cost we have internally generated.

we also have regulatory cost. if you see the regulatory cost has gone down by 161 million compared to the last quarter -- your contributions to the tax, guarantees, the biggest bill you always pay is in the first quarter. it on a rolling average, it is around 55%. this is theyou find level where we see the cost for this year. we are still making quite a want lot ofstments -- quite a investments combining internal platforms. this is what we are doing currently. that is why we expect our cost level around 55%, post-income. that is what we expect for the quarter.

next year we expected to go to our target. 52%.target in 2020 is 50- >> you have been doing deals includingnies, blockchain and tech. is this what shareholders want to see? tell us about the solid benefits for doing these kind of partnerships. clients things for our and ourselves. we talk about financials. we talk about innovation, our lifeline for the future. if you look at things we do ourselves, we are rolling things out in the u k, with 150,000 customers. if you look at partnerships, we acquired last quarter a company which will offer for our clients

something very nice, an acceptance method for payments over 80 different payment methods in 150 different currencies. our clients need this. we are not always able to make these solutions ourselves. that is why you partner with other companies, to connect the customer base to the technology and make sure it is for the benefit of our clients. we will continue to grow our client base the way we do, in the end, the finances will come. right now, we are still making oe around 10.3% on our capital. raise've managed to dividends up.

mentioned regulation costs as being the headwind for you. is that going to put a cap on the dividend payout you haven't ou have the moment -- y in play at the moment? can we expect that to change or are we cap by regulation -- capped by regulation? >> one element needs to be implemented, partially by 2021, partially by 2027. that would lead to more capital accumulation. we think our path of doing growth, as well as our paths of distributing dividends is something that does not need to be disturbed. our rate of capital accumulation will most likely be able and sufficient to grow. thank you so much, the ceo of

ing group -- cfo of ing groep. hosting china and south korea for the first time in seven years. this is bloomberg. ♪ mom you called?

oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around.

morning. you are seeing the dollar rising. geopolitical tensions are on the rise. the are bennion accord, reintroducing sanctions. the dollar is at its highest level in four months. anna, you have a little bit of breaking news from headquarters. andhe german maker of lives shampoos posting numbers -- glues and shampoos pointing -- posting numbers.

against 850 euros million. they delivered a positive organic sales growth. how theytalking about -- organic sales up 2-4% to up 2-4%. said their new north american logistic provider was hurting them in terms of sales. they are going into these numbers as a result. let's get the check on the markets. >> we saw u.s. stocks close flat. we see a mixed at session in asia. weakness in japan, south korea, trends in australia and hong kong. this is slapping some of the gains we have seen in the past couple of days. risk appetite is coming out of these market somewhat.

if we take a look at what is happening elsewhere, the big focus is oil. the next chart is trading above $70 a barrel. oil futures are jumping more than 2% after dropping more than 2% in yesterday's session. commentary in of the blog about how the u.s. reaction yesterday was quite muted to trump's decision over iran. it is quite a different picture in today's session. therecould be because isn't a lot of uncertainty, unanswered questions over where things go from here. we see volatility rising in oil as well. a look at how this is reverberating through emerging markets. weakening tos are a 2015 low. there has been a lot of talk of china actually being a little bit of a safe haven. south korea is something to look at.

this chart is showing the divergence over the past couple of months. we are seeing some weakness in the yuan today. this is something to keep an eye on. south korea is going to become a bit of a haven. that meeting with kim jong-un very much in focus in terms of political risk. take a look at what is happening in the 10 year treasury yields at the dollar. they are edging back toward 3%. today, we are around 2.9%. the dollar has tracked that. we are looking at a four-month high. japan's prime minister has welcomed the leaders of china and south korea for the first time in seven years. says they have agreed to corporate on infrastructure. more on this story from

hong kong with our asia government managing editor. what has come out of the summit so far? agreed to a lot of stuff they have already agreed to over the years. they agree to uphold u.s. eed to makeagr progress on the regional trade deal that has been sitting around for years. the trilateral keelboat -- between the three countries, ia's biggests -- as economies account for 23% of global output altogether. the fact that they are even sitting down is considered the big win. anna: has this meeting paved the way for a new relationship with china? big, month-long

plan to improve ties between china and japan, which has suffered over territorial disputes for years. that is the big picture. abe we'll head over to china to meet with the president -- w ill head over to china to meet with president. xi to visitts japan, which might happen in the next year. a long picture here is warming between japan and china, the two biggest economies in asia. let's broaden the conversation, james with ccla

investment is with us. we have talked about russia and turkey. we have talked about the challenges in those individual countries. more broadly, this could be a challenge for emerging markets with the dollar on the rise. what is the big take at the moment? economies,t the asia offering much better prospects. when i look at the free cash i can see a galaxy of great opportunities in asia. asia has a much more friendly focus. when people were cautious of asia, it is beer haps -- perhaps governments were less strong than one might've hoped. governments are now focused on returning dividends and value accretion.

i look at taiwan. there is a company that has huge cash flows and low valuation. i think this is an opportunity\/ gmm is one of our big view pieces of markets. i am seeing a wrecking ball. this political news we have of is taking a wrecking ball to em currencies. is taking a wrecking ball to em currencies. does that ring a warning bell in any way? >> it does in terms of the portfolio returns one might recently achieved. in terms of underlying economic activity, there is no evidence trump is pulling back on i brand. there is a particular challenge to economic activity levels. i would see weakness in pricing

now. if you have to think of sectors or companies that look at this in asia or emerging markets that can withstand a stronger dollar, the efforts to curtail trade in emerging markets by the trump administration, can you see sectors despite those headwinds? james: primarily in the technology sectors. curb trade --to he is keen to fair trade. opportunity tohe companies to demonstrate competitive advantages in the markets. >> in a sense, he has asked china to curtail trade. he has talked about reducing the

deficit by $250 billion. >> i think this is about trying companies.merican he has a point. president trump says is rooted in fact. corporations have been exploiting -- exporting deflation. change.beginning to mr. trump is working hard. mr. mnuchin is doing a great job. it is important that fair trade is important to the long-term future of free trade. that involves technology, where the real tumbling block comes in between china and the u.s. that will involve future generations in terms of technology development. we mentioned south korean exports. it is not often you and i

concur. you agree with me on the em. 2016, south korean exports. charts, weo the should be a little more concerned about global trade, more than we are. msci worldok at the index, they are just beginning to roll over. are you worried about the contagion of global trade from these discussions? >> i am and i am not. on the challenge of technology between china into the united states, the united states is keen to protect intellectual property rights. that homegrownan technology cannot be delivered into other economies. i think the trade numbers,

beginning to match up the lead indicators, say the global economy is beginning to slow. i would say we are going to see a return to subpar growth. i am absolutely not calling a recession. i do not think we will have a bear market. i think we will have a much trickier market. i think investors should be looking at quality, and long-term sustainable growth. we need companies that control their revenue and profits and cash flow's. >> is there a level of 10-year bond yields that threatens that picture? no recession, no bear market. we talk about the importance of 3%. not worried about three,

or even three and a half. as long as the u.s. economy is beginning to move properly, bf -- wears of real growth have had years of real growth. we could get 3.5% bond yields. 4% would cause particular damage with fresh balance sheets of corporations. companies would be a great -- would be in a great deal of trouble. i would worry about the impact on consumers. much more worried about the long-term health of the economy that has traditionally been borrowing a wad of money. -- a lot of money. i think the fourth quarter is going to be hard because that is when the treasury is going to be raising more money. >> let's see how much the bond markets can take on.

how much will the international demand be there? james, stay with us. we are going to move the agenda to asia, malaysia specifically. we have an election. whether -- will it determine whether the current prime minister can extend a 61-year-old on power, despite a strong opposition? joining us now to understand the election -- you are in kuala lumpur. state? at stake for the sophie: the next five years. relations go to the polls, myself included. is underister najib pressure to demonstrate a better showing than what we saw in the 2013 elections. this time around, polls are indicating a close race, with an

even wider margin of the popular vote going to the opposition party. coalition deals with a host of issues, including financial scandals. economic opposition -- the opposition is counting on economics to sway voters. najib faces economic challenges ahead, keeping investors interested in an economy currently booming. they are slowly improving when it comes to bringing down the budget deficit. thank you veyr much.

let's get to some breaking corporate news. the indian telecom company, 240 million customers in india, but also has business in africa, the list goes on. breaking news concerns the african business. airtel is planning to pair $4.6 billion of debt via asset sales. this would take place in london or south africa. that africa unit is said to have a value of 8.3 billion u.s. dollars. an interesting story affecting our reporting. that is a quick look at breaking news. let's get to -- 6:25 here in london. we continue to digest the iran decision. this is "bloomberg daybreak." ♪ : this is "bloomberg daybreak."

6:48 in london. here is juliette. : deutsche bank is considering a sweeping restructuring in the united states, and it could be cutting 20% of its staff in the region. the company is nearing a decision. final productions may be lower. a spokesman has denied there are such plans. limiting quarter first-quarter company -- the cable it is in talks with vodafone for the sale of much of its european footprint. an $18 billion deal could be announced today. has raised itsm

four-year profit forecast on growth in america. increased itsrier adjustment by 100 million euros, to around 23.3 billion euros. that's announced it added more than one million customers for the 20th consecutive quarter. the $26.5 billion deal to take control of its t-mobile unit remains. this is your bloomberg business flash. emirates has delivered full-year operating durham'sf 5.2 billion -- dirhams. the actual full-year profit comes in at 4.11. and north sure is ready to open

a launch into the united kingdom . this is the challenge we are seeing. they have a seat in france, the minister there. do you do this without damaging your brand? of the leasts one aggressive when it comes to ancillary fees. 67%, 24.1 one billion -- to 4.11 billion dirhams. i will ask the ceo how he managed to squeeze that amount of juice out of a very tough tall order. we will be speaking to him very shortly. he joins me in over an hour -- just over an hour.

travel to movies and theater and business. disney's second-quarter results. bidd about the $52 billion for the assets of 21st century fox, bob iger tells us he is confident. we believe in increasing our intellectual property profile as a company. we believe in increasing technology we have is a company, that we will reach more people in more compelling ways. we believe in diversifying more geographically. fox assets achieve all three things. if you look at the combination of the two, the fox assets we are buying and the disney assets we have, and all the changes we are seeing in the media landscape. think this is a compelling proposition for disney shareholders and 21st century

fox shareholders. that's why the board gave the deal that we made unanimous approval. we are confident it will ultimately go forward. but you need shareholder approval and regulatory approval. and comcast is expressing interest as a rival. for those assets worth more than thosere to comcast -- are assets worth more than they are to comcast? i prefer not to speculate on what they are doing, but i know these assets are great for the disney company. ofn you consider the value these combined entities, it is very attractive to shareholders. we believe fox will look at this quite favorably. david: you have made a number of successful deals.

none so big as this one. none of those deals, pixar, biddinglucas, involved with someone else. comcast might come in and openly bid. your competitor never won an auction because the last 10% of the price was ego. naive don't want to sound or optimistic to a fault, except i think it is way too early to speculate this is going to result in an auction. i will leave it back -- it at th at. if your shareholders of a in thisbeing bought case, 21st century fox, you have to consider not just the total price, but devalue of a combined entity currency. you have to consider the past to regulatory approval.

do you believe regulators around the world -- very important -- will ultimately approve this? we are quite confident we will gain that approval. that, versust another offer in terms of money or its source, you have to hold that up against our offer, on value and the real possibility of it happening. are offering shareholders of both companies and outstandingly positive or attractive proposition. nna: that was bob iger, the disney ceo. james bevan is still with us. let's talk about m&a. this chart underlines a strong start in 2018. does it come from a good or a bad place? james: i think it comes from a relatively benign place.

there are three factors that play. revenue growth is slowing. there is a bit of a mismatch between earnings on the back of the trump tax cuts. revenue is much slower. companies are saying, we need to increase the revenue line. 2019 -- irowth in don't know what it might look like. we are talking about north of 10%. the second issue is, companies will be thinking in terms of, how do they cope with much stronger competition? part of this is about recognizing the content is coming critically important in that sector. every has a competitive -- one has a competitive advantage. ccla james bevan, cio at

investment, thanks for your time. emiratesfind out how managed to bump off profits -- bump up profits by 67%.

♪ anna: good morning from bloomberg's european headquarters in london, i am anna edwards. this is daybreak: europe. crude climbsdti above $70 a barrel as donald trump announces the u.s. will pull out of the nuclear agreement with iran. >> the iran deal is defect is at its core. if we do nothing, we know exactly what will happen. anna: treasuries under the hammer, u.s. 10 year yields are on the rise ahead of today's $25 billion sale. will the auction be hit with 3%? -- tie up somet

european assets for vodafone as soon as today while deutsche telekom releases numbers. we will speak to the ceo this morning. ♪ anna: good morning, this is bloomberg daybreak: europe. we have a breaking news feast for you. we get to more breaking news this morning and we start with softbank. this is the japanese telecoms investor and they are announcing their numbers this morning, their full-year dividend at ¥44 thate operating comes in -- slightly ahead of what was estimated. sprint question is does -- how well does that part of the business managed to do as

all of this will be overshadowed by the sale of sprint. t-mobile has agreed to acquire the smaller rival for $26.5 billion in stock, but the merger is likely to face a lot of from regulators. softbank is planning an initial public offering for its domestic telecoms operation. a lot of questions around softbank, but the headline is the operating profit number at -- i gave you the bottom line number. the operating profit number for the fourth quarter, ¥155 billion, the estimate was for 137.4. that is ahead of estimate. -- updatean estimate on the tobacco interest three -- industry. we have imperial and what they have managed to do with operating profits. the estimate was one billion pounds. they are on track to deliver their full-year 2018 outlook.

the first half, tobacco net revenue 3.33 billion below the estimate. interesting the number for the first half comes in so far below estimates, but they are on track to deliver full-year 2018 they say. fors get a broader context these markets. let's talk about what has been going on in the market and the futures. equitythe european markets, we expect to see developed at the start of trading. a slight move to the upside, but nothing major. we are not seeing any greater sent off an equity market as a result of the administration pulling away from the iran accord. why is that? does the market see this as not a core issue? do we not know a lot of the repercussions this will have in terms of sanctions, companies affected? a lot of unknowns in that. let's see where that goes. let's move to the risk radar across the asian equities

session. asian equities under pressure, down by .3%. yesterday'sloff in session but after the announcement, it is at the $70 mark. up 2.2%. u.s. 10 year yield, 2.99 is where we trade. helping take the dollar stronger in the earlier part of the session. let's tell you about the interviews we have coming up later on. we mentioned imperial brand and the ceo will speak to us 9:00 a.m. london time. we heard from manus, he is off to speak to the emirates ceo. that company saw a uptick. and the deutsche telekom's ceo. consolidationfor in his industry and backyard. that is something that has gotten animated in the past. now the first word news update with juliette saly. germany, andnce,

the u.k. regret president trump's decision to withdraw the u.s. from the 2015 accord to nuclear program. america will reinstate financial sanctions on the islamic republic, a move that will open an uncertain new chapter for the middle east. "horribleed the deal and one-sided." >> at the point when the united states had maximum leverage, this disastrous deal gave this it is a regime of great terror, many billions of dollars, some of it in actual cash. a great embarrassment to me as a citizen and to all citizens of the united states. i ordered the iranian atomic energy organization to be ready for action if needed so that if necessary, we can begin our industrial enrichment without any limitations.

until implementation of this decision, we will wait for some weeks and hold talks with friends and allies and other signatories of a nuclear deal and those who will remain loyal to the deal will talk. juliette: japan's prime minister has welcomed the leaders of china and south korea. shinzo abe is putting aside differences over territorial claims in previous conflicts to hold the trilateral talks. ony have agreed to cooperate infrastructure and discuss the north korean situation in detail. global news 24 hours a day, on air and tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries and. . you can find more stories on the bloomberg at top . in asia, most markets to the downside. china off by around of one third of 1%. japan closing weaker by .4%. pretty flat in seoul. and uptick in australia after the federal budget, which is mildly positive for equities and

a rebound coming through in the jakarta composite, up .8% after indonesian stocks dumped yesterday. malaysia out of action today for the election. let's look at stocks we have been watching in the region. toyota in focus. one of the best performers when you look at movers in terms of index points, up by repointing percent on the close, forecasting and annual profit above estimates and announcing a share buyback of ¥300 billion. australia, budget in 5.3%, the most since february. that is mainly as we see the government saying it will change rules for the age pension fund. giving an upside to those financial companies. the have been looking for winners in the jakarta market. a little rebound today, but one of the asset management firms saying there are no defensive plays yet -- left in this embattled market. the only places to hide are in

standout companies. it named indofood as one. anna: juliette saly in the way -- with the way trading is developing. france, germany, and the u.k. regret president trump's decision to pull the united states out of the 2015 deal to curb iran's nuclear program. news america will reinstate it above $70 ant brent barrel. here is how world leaders responded to the move. implementation of this decision, we will wait for some weeks and hold talks with friends and allies, and other signatories of the nuclear deal and of those who will talk. >> israel is opposed from the nuclear deal from the start said that rather than blocking the path to a bomb, the deal actually paves i ran's path to an entire arsenal of nuclear bombs and this within a few years time. >> the nuclear deal is crucial

for the security of the region of europe and the entire world. >> we encourage all parties to continue to comply with the deal and we certainly will do everything we can to support that. anna: let's get more with our senior international editor jodi schneider from hong kong. what is next from the u.s. and from america's allies on this deal? there are a lot of implications of this that we are yet to understand. there is a lot of uncertainty, but one thing that is certain is the u.s. is making a clear they will go ahead with sanctions. president trump said the highest level of sanctions is what he is looking at. that immediately means $40 billion in aircraft sales from boeing and airbus to iran will be haltedl= other sanctions will take longer to play out.

a 180 day unwinding period for some sanctions and some that are related directly to the nuclear deal could take as long as until november to play out. there is a period there. the allies are looking at what they do. they are saying they are disappointed. france, the u.k., they had all spent time and energy in recent months trying to lobby the trump administration and lobby personally. president macron of france came over and had this first state visit of the trump presidency. focused largely on this deal. there is disappointment there, whether they will be able to use the time before sanctions are fully implemented to try and work out another set of theements is unclear and difficulty in doing that is unclear as well. we have seen this and a

short response from allies, but the path forward remains unclear. president trump's national security adviser's said they would try to pursue a broader deal. how likely is that? could such a deal come to pass when i ran said this was the only deal on the table? and a ran doesn't really have a reason to talk to the u.s. at this point. it is hard to see if you will open up a medic channels to have those conversations. iran will have those conversations with the other members of the agreement who have not left, so there is a possibility there. the trump administration saying they would be willing to look at other agreements, yet again, that looks extremely unlikely at this point. we have had the u.s. ambassador to germany say companies should figure that the u.s. will be pulling out and act accordingly. anna: thank you very much, jodi schneider joining us on this key story.

ceo of us in london, the hassey him asset management. i have market reaction to the iran nuclear deal announcement in terms of crude oil, the dollar, financial conditions in the united states. a little wobble in some assets and in asian equities this morning. no great strides downward in terms of risk appetite this morning. does that surprise you? was it all in the price? what explains the way the markets are taking this with a level head? >> markets will see what happens in this game of chess. there is an immediate impact to the action trump has taken, which is geared around what happens with inflation and oil prices. oil prices are now over $70. the last time we had this level was november 2014. we would expect oil prices to contributing to the inflation print number in the u.s., which impacts

inflation rate hikes in the u.s.. the debate over three hikes forces -- versus four. it will have implications, but everyone wants to see how this plays out. anna: where does that leave your equity strategy? on an: equities are upward trajectory at the moment. sentiment is at an all-time high. you have masses of stimulus in the marketplace at the moment and that remains, and earnings figures that have just come out. we have had a great q1. of 25%.earnings growth revenue growth of 8% with the s&p 500, 80% surprise on the upside. the europe side, still very good. that is what is driving share prices high. i the end of the year, we expect markets higher than they are now. anna: you talk about being overweight global equities and part of that massive stimulus in deregulation in the

u.s.. despite that, you are underweight u.s. equities. all these drivers seem to be emanating from the u.s., yet you are underweight there. yogesh: because we are underweight, we have exposure to the u.s. but that doesn't mean no exposure. we still have significant exposure to the u.s.. the reason we are concerned is valuations look stretched. is have a market place that stretched in economic data coming out. concerned about some of the geopolitical events and the impact that trump is having with policy decisions he is making. all we have done is taken a step back. still have u.s. exposure, but are underweight relative to the normal benchmark. anna: what impact are you nervous about when you look at the trump administration? manus was talking about korean exports and the canary in the coal mine data available there. aroundpoint to concerns

asian exporters and whether they continue to to export as they have done in the the of demands such as -- chinese reducing the deficit $2 billion. what are you looking for? yogesh: valuations are very stretched in the backdrop of this but we are concerned about protectionist policies and trade wars going on with china. this will impact earnings growth and that is what drives share price appreciation going forward. those are the main concerns. anna: are we in a trade war? yogesh: i think it is starting. there is a lot being said. i am encouraged by the meeting today in japan with japan, china and korea. they will reach a trade agreement, which we are overweight asia. if you look at the trade between japan and china, that is 330 billion a year. that is the size of denmark's

economy. they will continue to grow. it is a domestic story in asia we are encouraged by. the trade wars, i think the u.s. is more likely to lose. anna: perhaps we look to the asian economies ability to generate internal demand. and to generate more trade between the cells. yogesh: and we are starting to see that in today's meeting. ceo: yogesh dewan, the stays with us on "bloomberg markets: the european open." talk with matt miller at deutsche telekom's hq. ahead of his exclusive interview with the ceo. this is bloomberg. ♪

♪ anna: this is "bloomberg daybreak: europe." liberty global to sell some european operations to vodafone in a $19 billion deal. liberty operations include germany, hungary, the czech republic, 10.6 billion euros

estimated tax proceeds. has beend, this deal reported to come as early as today and we had that in front of us. march a retreat from continental and anfor liberty global expansion from vodafone. what are the implications across the sector? matt miller has a well-timed interview with somebody who will be affected by the deal. good morning. we know deutsche telekom has spoken out against the possibility of liberty selling assets in germany to vodafone in the past. interesting to get a perspective today. he have an announcement of that deal. interesting toe hear what the ceo of deutsche telekom has to say about this. it is important to keep in mind that dt playsts in. liberty will sell assets that include the czech republic and hungary. two of those regions where deutsche telekom, the czech

republic saw a revenue increase in the last quarter. they have reported earnings today. one of the regions, romania, where they saw a decline. keep in mind, deutsche telekom lineying liberty's fixed assets and austria, where it has had a revenue decline. it is not just vodafone that will be buying assets from liberty. deutsche telekom is also getting in there to take up what it can. i will last him if he thinks he can get more and if he thinks the deal is going to go through. deutsche telekom also has a deal at stake. very important to ask existence that it needs to get through. the t-mobile u.s. unit is buying sprint for more than $26 billion and that is key to deutsche telekom's earnings growth here. little sales decline because of the stronger euro in the first quarter. it is boosting its outlook for full-year operating earnings to 23.3 billion euros.

a lot of that comes from t-mobile's growth in the u.s.. that u.s. unit has added one million customers are more for the last 20 quarters in a row and it is going to need to build out an expensive fifth-generation network in the u.s. if it needs to continue that can -- kind of growth. germany, the ceo has a lot to think about. this deal willn provide to him in eastern europe. earnings at home and building out a faster internet on the last mile. politically, this is a huge issue. digitalization of germany has been very slow. the t-mobile and sprint deal in the u.s., finally. anna: lots of an end day. matt miller joining us from bonn. a few more lines from the vodafone deal, completion is anticipated around the middle of 2019. capital expenditure symmetries

of about 500 million euros a year according to vodafone. they will use existing cash and new debt. vodafone says. they will finance the purchase with around 3 billion of them cbs -- mcbs. let's get the thoughts of the ceo of hassium. telecoms space. does it make sense they are seeing a lot of assets changing hands at the moment? thesh: yes it does, across board. q1 has been an amazing m&a environment, 17 year high in terms of activity. we have had 900 billion dollars worth of deals go through in q1. that is the size of switzerland as in economy. when you look at the 900 billion, one third has come from the u.k.. getting involved in deals.

in the past, people have looked at m&a with a negative mindset. we are more optimistic. if you look at the corporate tax cuts in the u.s., there was a lot of capital on corporate balance sheet. they want to put it to work. this is a good environment. interest rates are low, so they can lock in fixed terms for acquisition capital and it is a great time. anna: i asked our guest in last hour if this came from a good or bad place. he said it came from a design -- benign place. tell usit doesn't corporate have run out of organic growth ideas. this tells you something positive? anna: absolutely, look at q1 earnings numbers. let's look at the revenue number . q1 for the s&p 500 and you see 8% revenue growth. 80% beat on the upside. this revenue environment is ok. the imf have come out with gdp growth forecast of 3.7% upwards. us is a good environment reflected in the m&a environment.

anna: why all the m&a in the united kingdom? the pound was weaker against the sellingwe saw softbank some of its assets, but also in the wake of the brexit vote. you can understand why the big move in sterling had that impact, but sterling has recovered against the dollar. is still concern about slight weakness in u.k. data at the moment, putting the bank of england possibly off hiking rates tomorrow. why the wave of m&a in the u.k.? yogesh: markets have not done well from brexit uncertainty. theling is still weak on tpp basis. it is 10% undervalued versus the dollar. this is an attractive environment. with uncertainty and a weak sterling, you have global companies in the u.k., a lot of global companies taking advantage of this, hence the activity we are seeing. anna: and d you get the sense

companies are getting deals done before rates go substantially higher? is that a reason as well? yogesh: absolutely. everyone is looking at rate hikes in the u.k.. if you go to april, there was an 80% of a probability this week. the reality is that is unlikely. i have seen 11%. probability of a rate hike in the u.k. by the end of the year, around 70%. anna: is there a yield on the u.s. 10 year that leads you to be worried about equities, the sustainability of all these deals? the magic number in our mind is 3.5% on the u.s. ten-year. unlikelyof 4% is because you will see capital inflows from equity markets into more markets before we see that. anna: thank you for that. yogesh dewan, ceo of hassium, that does it for daybreak: europe. "bloomberg markets: the european

open" is next. liberty to sell some operation to vodafone in a 19 billion euro , $23 billion deal. this is bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. 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. hey! let's basement. [ grunting ] 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. guy: wednesday morning, welcome to "bloomberg markets: the european open." we are live from london. i am guy johnson, alongside matt miller who is in bonn, germany today. right, here at deutsche telekom headquarters to cover the german behemoth's earnings. its merger in the u.s., t-mobile and sprint, and now the liberty global deal. the cash trade starts in 30 minutes time. ♪ guy: