♪ yousef: our top stories this morning, a risk off monday as asian stocks go lower at the start of new trading week. took it in debt for since late december. robert mueller finds there has been no collusion but does not clear the president of obstruction of justice. trump said he has been completely exonerated. theresa may needs top brexiteers as she tries to save her brexit bill. the clock is ticking as hardliners are trying to force her out. ride in may pick up a dubai. they could announce a $3 billion deal as early as this week. ♪

yousef: it is not :00 across the emirates, this is "bloomberg daybreak: middle east." we have the bond markets flashing recession warnings, the gap between three months and 10 year yields going negative for the first time since 2007. it came off the back, a week of pmi's in the u.s. and europe causing a sort -- the search in corporate bonds. looking at treasury note auctions with an environment of already low yields, the lowest in months. the u.s. is going to sell 2, 5, and seven-year bonds. appetite, u.s.y equity futures clearly lower.

this is the sentiment we are talking about, this shakeup in global confidence or the lack thereof tecumseh some of these asset classes. let me show you the asian equity sessions. we are basically picking up where we left off late friday in the u.s. session. you have japanese shares headed for the biggest decline of 2019. the other major losers, you have the south korean kospi down 1.7%, also stocks in china under pressure. down 1.7%. in the forex base, emerging markets generally a little lower with the exception of the turkish, rebounding from the big move on friday. we will get to the turkish story later in the program. let's get thoughts on what's happening in the markets. joining us now is gary blackwell. your initial reaction to what we are seeing, especially perhaps in the currency markets?

gary: i think we are seeing a risk off, right after the pmi data that was shocking to the market. causing asion is perception -- bond inversion is causing a perception that the stocks will continue lower. in aussieng risk off -yen. inversion, there are couple of viewpoints here. there is an article that is trending on the bloomberg as we speak. he writes that getting too obsessed about what is happening with the curve inversion could actually be a self the filling prophecy and ultimately lead to other indicators going much lower. say don'ts live team fear a temporary inversion, you

should be fearing steepening after a proper inversion. where does that leave the dollar in all of this? garry: the dollar to me is still the place to be. at the fund, we are looking for buy dollarsto somewhere. well.llar is still doing pmi's on friday were pretty herman gref -- pretty her iorrendous. we are seeing a flow from equity straight into bonds, which is why bonds are rallying and yields are getting hit. yousef: what you think the fed will do this year? garry: i think there will obviously remain in hold for now, what the dot plot has said to us. hike, maybee is a

one more, we have priced out too many. think they are going to have to see -- they were frightened at the end of last year by the sudden drop. for only 5% off of all-time highs in equity market now, even giving friday's drop. i don't see any rush for them to panic. yousef: has that been moving too fast too soon in their communication and back-and-forth? now weember u-turn and have more fed speakers in the pipeline. garry: i don't think it's just the fed, i think it is a central bank issue. the central bank seems to want to tell us that everything is going well. and yet, they stop and turn around. the fed at a nice cycle, the markets happy, and all of a sudden we saw the u-turn, the 60 minutes interview, and the

markets are turning around and going actually, if something is not right here, why are the central banks and the fed turning around and saying we don't need tightening up? yousef: hold that thought, we have a lot to talk about. a roundupyou a bit of of what is happening with annabel. annabel: thank you. u.k. prime minister theresa may has held talks with euro skeptics she fights to save her brexit deal. she met boris johnson and david davis to see if they support in agreement that has only been defeated'twas in parliament. the meeting came amid reports that cabinet figures are planning to remove may and install a hard-line brexit backer as p.m.. italy has joined the belt and road trade project, stoking tensions within the populist government in rome.

italy is the first g7 nation to join the initiative, signing deals potentially worth $23 billion. washington and brussels had urged caution, and the decision has strained relations between italy's five-star movement and its right-wing coalition lead partner. the turkish lira is recouping some of friday's losses after an investigation was launched into jpmorgan and other banks that regulators say still the country's biggest plunge since last year's crash. turkey says jpmorgan recommended selling we were ahead been misguided and manipulated content, and hurt the reputation of turkish banks. is the link its -- delaying its election results. the tally was expected sunday atning but will be released 2:00 in bangkok.

the prime minister in position to return. boeing is inviting regulators and about 200 pilots to review updated safety measures for the grounded 737 max family. southwest, american, and united will travel to the production plant in washington state on wednesday as boeing tries to to deliver a fix that allows the planes to fly again. southwest is the largest 737 max operator and its training team will review the safety of great. day,l news 24 hours a powered by more than twice 700 journalists and analysts in more than 120 countries. this is bloomberg. yousef: thank you. let's get back to one of our top stories, president trump: be mueller investigation and illegal take down the field after the special counsel found no evidence of collusion with russia. the attorney general says there is not enough evidence to charge them with obstruction of justice. >> there was no collusion with

russia, there was no obstruction. none whatsoever. total was a complete and exoneration. yousef: our national editor jodie snyder joins us. you had a chance to go through the letter in some of the initial reactions, what do we know now better and what remains ambiguous? a four-pageis letter to congress, a summary of attorney general william barr, who was appointed by president trump after he had fired jeff sessions as attorney general. in the four-page report, the letter, the report itself remains secret, but in the four-page letter, he says it is clear that there is no evidence of collusion. that point is pretty unambiguous , that there really is no collusion. yet on the issue of obstruction of justice, he says there is

evidence on both sides, so he and the deputy attorney general made the conclusion that there is not enough evidence to say that president trump had committed obstruction of justice. but that is more ambiguous than the collusion argument. of course, president trump, as we saw, saying he thinks there is no collusion, no obstruction of justice, and it is a complete and total exoneration of him. but now the question will be, will this report be made public? will congress get to see it, and what action they may take from there. yousef: what has been the reaction so far in washington and elsewhere? is it a case where you have two cams, republican and democrats, democrats trying to use whatever they can from this against the u.s. president, and republicans will try to use it to vindicate their position. is that the way it is divided?

isi: that is part of what going on. certainly president trump and his supporters view this as a total victory, and of course president trump been calling this a witchhunt from the beginning. they are quite pleased, and certainly they will try to use this in the 2020 presidential campaign. democrats, on the other hand, are going to try to use this for their own investigatory apparatus. control the house of representatives, so they can bring investigations. they certainly intend to do so. as a matter of fact, we heard from jerrold nadler, the head of committee, aiciary democrat, and he said not only does he think it should be made public, that in a tweet said he wanted to call attorney general barr to testify, given that there is some ambiguity on the question of obstruction of justice. we may even see the attorney general be called to testify,

and certainly other investigations of president trump, his company, his campaign continued. yousef: you mentioned some of the other investigations. in terms of what they are able to do at this point, because the letter is quite clear about some of the restrictions that are in place in terms of releasing that information, and from what it seems, it could take quite some time until perhaps the fuller extent of the report becomes clear. jodi: that's right. that's something the democrats are going to push for. they have asked for robert mueller's underlying evidence to the released to them. but as you say, given the other ongoing investigations in which robert mueller send them information, some of the investigation information, such as is going on in new york, virginia, the attorney general's office, the justice department has an investigation going on as well. that certainly complicates the picture of what could be released and what will be made public and what congress can do.

but the democrats are certainly going to push, they are going to use this and try to continue to investigate. yousef: thank you very much for that, our senior national editor. we have a turkish lira that continues to be on the move, and we mentioned earlier, currently the dollar-lira trade about 3% lira strengthening. this is the biggest mover in emerging markets affect space. giving you a snapshot of other stories we will cover in the program, uber set to seal a $3 billion deal to acquire its dubai-based rival. first, theresa may battles a plot in her cabinet to take over the brexit agenda appeared we will bring you the latest on that front, and what it means for some of the u.k. stocks and asset classes. this is bloomberg. ♪

♪

let's get you a quick recap of what happened in recent equity markets. a tough day if you're looking to go along and some of these asset classes and equities in particular. hitting up on what happened, global markets on friday had a downside push in dubai, down 2/10 of 1%, properties losing 2.1%, properties in general under pressure. abu dhabi down 161%. but investorsp, taking profits. qatar a bit lower. exceptions in kuwait, lenders got quite a bit of bid, and egypt as well. let's check on the business flash headlines. quality -- huawei is reportedly investing in foreign

universities despite the u.s. cutting ties with the company. a board member saying the collaboration with research bodies will increase, and also says more than 8% of their investment in u.s. schools is characterized as gift or funding money with no strings attached. the israeli energy explorer controlled by a billionaire is taking a stake in an egyptian lng plant to broaden its aforesaid is. it released its annual report sunday. capacity at the pumps, as does rather than equity stake. sell a stakeans to in the company through auction. it would give the airline emergency fund in more than $200 million, and find stakes in the

next two months. this comes as the government plans to keep months -- key planes in the air ahead of the election. yousef: thank you. u.k. prime minister theresa may fights to save her brexit deal. talks, amid reports that senior cabinet figures plot to remove her. joining us now is our reporter in singapore. quite a bit of political noise once again in the last 12-18 hours. how does that set the stage for some of the trades over the next few hours? cable particularly. david: i think markets are waiting to see what developments are today in the u.k.. meeting, howabinet much the pressure built we have a lot of uncertainty. with cable, not really going anywhere at the moment, trading

at 132, but how it is manifesting itself is implied volatility from one week to one month, shorter term going higher and higher. purely because they know how this plays out, the option of no brexit, even with votes this week, the no deal brexit is always on the table. one of the questions is if they do have a no deal vote in parliament cannot come up with a gets even no deal more and that is best for sterling, and that is a big extension. with a big extension, this parliament want that? some don't want that at all. that is their worst case scenario. it's hard to see how this will work out, what investors are doing with implied volatility whatever way sterling moves. yousef: what else are you watching as we head into a much busier european trading day? we had pmi's on friday, we have the brexit noise, still quite a

bit of an overhang. what is going to catalyze some of the euro play? david: i think everyone is looking at rates as well, i think it is a key thing. globally you see them selloff the 10 year yield pretty much across the board. in the u.s., the three-month to tenure invert on friday, and looking at the u.k. yields down about 1%, will it go lower? i think all of the risk off aversion, we expect to see european equities open lower. we are looking at that will feed into sterling. yousef: great catching up, thank you very much. of reporter live at singapore. let's get back to garry blackwell. you had a chance to hear some of david's comments, do you think the prime minister is going to survive the next few weeks? garry: i do, i think she has been very stubborn, and she is

playing a little bit of a dangerous game, almost russian roulette with the dates now. i don't think she will get a meaningful vote through this week. not without some serious amendments. that's the problem we are having, these amendments, people are not really sure what each one is as we come to market. this is said, as happening, we're seeing volatility go up. and it is not moving. yousef: does that mean you stay away from the trade? how do you approach it? garry: you do. most of the hedge fund communities we speak to, and ourselves to some extent, we are waiting to see we have some certainty, why play this game? yousef: what is the next target for cable, your base case? garry: i think you could look,

with a no deal, you could look for it to dip to 110. if she gets the vote through this week, we saw last week, 135 as a possible target. and we are back to 145, see some investment may be return, flow back into the u.k. when people know what they are investing in to some extent. yousef: thank you for a, it was great to speak to you. garry blackwell. here is what is coming up on the show. uber is buying a dubai-based rival this week. we will assess the implications of the potential deal. this is bloomberg. ♪

♪ uber may announce a $3

billion deal to base a dubai-based rival as early as this week. this comes ahead of their planned ipo, which could be one of the new york stock exchanges biggest ever. we have the story. matthew, it is quite a big amount they need to come up with a month that uber has done bigger deals in the past. perhaps the timing is more interesting. what are they thinking? uber is tryingk to solidify the position in the middle east. as you mentioned, they had this massive ipo coming up soon, under a huge amount of investment scrutiny as to the sustainability of the company going forward. they want to stop some of the cash burn going on in the middle east competing with kareem. we have seen kareem have been innovative, lost a lot of

services first. this would enable them to stop wasting huge amount of investor money trying to compete with somebody else. yousef: who are the investors likely to be celebrating in bringing out the champagne bottles off the back of this? --thew: interest owing interestingly, there's quite a lot of saudi money, so i don't know that there will be champagne, but they will be celebrating. in a funding round of the end of 2016, the venture capital unit of stc investors in careem that , billione company dollars valuation for the first time, and no less than three years later, the valuation of the company has tripled. clearly were going to be looking -- stc are going to be rejoicing over investments they have made. another saudi company was an early investor in the company

and still have a significant stake. it's going to give them healthy pay off. kingdom holding as well was a cheerleader for careem. the interesting part of this is that the deal will be cash plot stock. these investors are also getting a stake in uber ahead of the ipo, which will also give him significant upside. yousef: briefly, what does this mean for the tech investor capital business in this part of the world, which is been slow going? matthew: if we look back a few years ago, the big deal was amazon humming in and buying souk.com, which operated to similar business. since then, we have not seen any international cheerleaders come is so the fact that uber coming in and putting all this money into the region is going to demonstrate that for technology companies, their exit routes available for investors. yousef: thank you very much for

that, matthew martin. coming up, we will talk about the turkish president morning bankers responsible for speculating against the lira, paying a heavy price. this is bloomberg. ♪ mberg. ♪

late at night is in new york area 1:30 a.m. in midterm -- midtown. appetites for safe havens undoubtedly firmer after the slump we had on friday. risk assets feeding into the asian equity session. u.s. equity futures reflecting the yieldrn we had curve inversion in the u.s. and the search for the core bond at lower.oking

the japanese nikkei lower. >> special counsel robert mueller has delivered his report and has found no evidence of collusion with russia in the 2016 election. however, the report does not exonerate president trump of obstruction of justice, even though it's attorney general william barr does not see enough evidence. the president tweeted in triumph, saying he has been completely cleared. pres. trump: there was no collusion with russia. there was no obstruction. none whatsoever. total a complete and exoneration. >> u.k. prime minister theresa fought for brexit deal.

she met to see if there is sufficient support for an agreement that is already been defeated twice and parliament. the meeting came amid reports cabinet figures are plotting to remove may and install a hard-line brexit backer as p.m.. updated safety measures for the grounded 737 max 8. southwest, american, and united travel to the plane's production deliver boeing tries to a fix that will allow the planes to fly again. southwest is the largest -- global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. with a check on the markets. >> that fear trade sinking in in

asia. we are seeing the stock selloff catch up in asia as well after we saw in the friday session. the nikkei 225 down 3% in tokyo. that is the worst decline we have seen since that christmas day selloff where we saw 5% lower on the benchmark. everywhere else, you are seeing -- when it comes to stocks as well as asian currencies. as opposed to taiwan, we are seeing is strengthening 0.5 -- 0.6%. pushedults have been later this afternoon. the military party leadership is remaining in power. they are leading the bill at the moment. let's take a look at what we are seeing here, this relentless buying, this morning of bonds that continues in asia. what started with bad data out of germany and europe, we did see that ten-year german bond yield that negative basis points.

negative territory for the first time since 2016. that u.s. 10 year yield, we are at 2.44. jgb's in negative territory, the lowest yield since 2016 as well. your aussie 10 year yield is record low territory at 1.78. let's show you what we are seeing when it comes to movers. we are seeing earnings front and center. tencent, weighing the losses on the hang seng. one stock up a second day. and apple supplier got an upgrade despite the fact earnings were a mess. -- miss. mentioned those bond yields tumbling lower in japan. that is certainly weighing on a lot of financials. >> thank you very much.

let's get back to the story of turkey. the president there, the bankers responsible for stoking the lira's largest -- since last year's pay a heavy price. the lira is rebounding today. some lines hitting the bloomberg now from the turkish central bank. they are saying they are determined to -- determined to accumulate reserves, reiterating from the central bank. it is not uncommon to hear very controversial rhetoric from this turkish president. this time around, directed at bankers. >> you are right. it is not uncommon to hear this, especially when he is on the campaign trail, which he is. he wants to show the turkish people he's not going to take any flack. this sort of accusation

foreigners are attacking the , these are things we have heard many times before from this president. it is not that big of a shock. whether or not they are going to hold true and actually take jp morgan to court and so on, that remains to be seen. there is still an investigation going on. even beforeon mind, he made these comments, investors were starting to become nervous about what was going to happen after the vote. they wanted to know what was the monetary policy going to be and whether or not the central bank was going to start unwinding all of those interest rate increases we saw last year. >> the weakness we saw recently with this drop in currency reserves, we put together a graphic that shows this step lower. the central bank itself is quite adamant there is nothing

unusual. what are they saying? how does that differ from what investors are seeing? >> they have come out and said this is not abnormal. aaron mind, even before -- bear in mind, before this came out, there was a confidence issue. what investors wanted to see was reaction from the central bank. what they wanted to see was a statement before things got bad in the market. we have seen this time and time again in turkey. this is not a central bank that waits too long in order to make a statement. if you were to compare the central bank with those in the middle east, they are quite verbose. however, because of the confidence issue, they need to start to make statements before in order to calm down. some investors are saying this is too little too late.

let's take a closer look at the recent markets. a lot of key investors have been positioning around the inclusion into some of the global indexes. at one company is taking an out of consensus stance. there is going to be selling. you sell on the day. but what your research points to is that selling is not going to be as pronounced as other market -- say. >> that's right. most investors are trying to ,raw parallels with uae upgrade pakistan upgrade, and qatar upgrade. the reality is saudi is a different animal. this is a country that was closed for foreign investors. a lot of events have happened over the last 12 months as you remember. ,e had the ritz-carlton event

which meant that foreigners did not front run this trait as much as they could have. it's not as crowded as people think. the onlyf is that large seller would be government related entities. my sense is that the market will continue to rally a little bit. not in a big way. you will not see the type of correction with msci you have seen in other markets. yousef: a lot of people we have had on this show have a firm belief money should be allocated into trade around the lenders. the on the other hand, make point you should be looking at the saudi consumer. the saudi consumer has been done a disturbance -- disservice is the argument you make as you point to point of sales figures

which we have put up on a chart as well. also in terms of the equity sessions. why are you a believer in the saudi consumer given the difficulty they have had in 2018? >> we talk about the flow. the flow story will continue. the main beneficiaries are banks and petrochemical. they are the largest in the index. these flows are still very low. very low compared to overall msci. active plus passive could be double that. like $30 billion. what i believe is if you are looking from a fundamental perspective, banks are sound in saudi, but you are not seeing the type of loan code that

warrants the current valuation, or at least another 20% higher from where we are today. however, today is the right time for other industries such as the consumer because these are the ones struggling on the back of the introduction of the weaker economy as a whole. as you mentioned, point-of-sale and cash withdrawal has progressed 7.9% year on year. you are looking at even credit card loan growth. finally, 2.8%. it. is the time to look at >> we look at some of the stocks in the food and beverages space. . someame we like, and maybe data is pointing to quick recovery, if you look at

mortgage, residential mortgage disbursements have grown 40% year on year versus 2017. over lastually up year. formationhousehold , investingnew houses in saudi hardware, the home default of the u.s., that is ain't name we like -- a name we like. the first half of 2018 where the cost of doing business in saudi arabia has increased dramatically. what about lenders in kuwait? this is partially linked to the inclusion. you are saying they are over provisioned. >> coming from the financial crisis, central banks have been

extremely tough on banks. there is what you call detrimental provisions taking place. in the case of mbk, you talking about coverage of 250% in terms of provisioning. i think it's going to put a cap much kuwaiti banks will have to provision going forward. that means you will sing the cost of risk declining. they have been over provisioning, and they are not using capital efficiently. that is the end of the cycle. if i am looking for -- yousef: if i'm looking for opportunities in a cycle like petrochemicals, some of the compression we are seeing is to stay away. >> i agree with that.

i don't think the petrochemical space is interesting today, especially where valuations are. i would not venture there. if you want to get exposure to , businesss services has been tough the past four years. oil prices have never recovered. the one name i would look at his -- the reason for that is they manage to buy assets at a fraction of the replacement cost and they have, i think their earnings can double on the back of the recent acquisition they made. next year, they will start paying hefty dividends and have a yield of 11%. yousef: that sounds very sensible. we will see how it plays out. thank you for coming on the

show. coming up next, the auction house could be sold. the world's most expensive painting back in 2017. year's sales resilient on economic slowdown. this is bloomberg. ♪

yousef: christie's holds auctions in over 30 countries. record sales show resilience from the economic slowdown. let's dig deeper into regional trends. with christie's international managing director for the middle east. thanks for coming on the program. early this year, you maintained there was not any evidence of a slowdown affecting you. a few months into 2018 -- 2019,

do you stand by that? >> christie's began the year strongly. we had the george michael sale in london two weeks ago that performed extremely well. actually up on to. we began very well, we keep an eye out for the headwinds globally. >> in terms of the region, are you seeing shifts there? where are your buyers coming from? what is the ranking at the moment? >> we see clearly a focus on contemporary art. a lot of new collectors coming on the market from the contemporary art space at an increased -- increasing focus on luxury in the middle east.

jewelry, handbags. an increasing trend toward the luxury specter. -- sector. yousef: i'm sure you have charted before, how close is the link between oil prices? go,t the higher oil prices more appetite for the product you featurette your options? >> that sentiment. when people feel good, they spend more on art. that liquidity is the reason it is performing better generally. people tend to spend more on art. there is a relationship between sentiment and spending. yousef: what are you most excited about that could be in the pipeline and could help catalyze some of your income? we areink clearly looking to put together a very -- very curated auctions globally. we have a clear idea what collectors are looking for.

we put together curated auctions based on their needs. recently christie's invested heavily in the region. we redesigned our office space. we are looking to hold more exhibitions in the region, increase education. indid online education arabic for the first time. a sense of the number you can reach in terms of growth or in terms of -- give me a number to help quantify some of the progress you would like to make. dubai wefor example in sold over $300 million of art since 2006. the appetite and enthusiasm for it has increased significantly. about end, it is also christie's globally. we are talking about more clients from the region buying art, which is encouraging. yousef: we have to leave it

there. i'm going to have to make a point to check out one of your options. deputy --ha, executive director for kristi's middle east. we will be live in room next -- rome next. this is bloomberg. ♪

yousef: italy has joined china's trade project, drawing concern from the u.s. and western allies. nation tohe first g7 join, signing deals worth $23 billion. kevin, set the stage for us. for what appears to be a critical few hours for italy.

>> yes, as a matter of fact, the deputy premier matteo salvini criticize the deal almost as it was being signed on saturday. he said china is not an open economy. the state has a heavy hand, including in the legal system. the european union is also upset. they have been looking for a united front regarding china. italy is abandoning that idea. what needs to be done to perhaps resolve the concerns that critics and skeptics on the sidelines have? >> right now, italy seems to be plunging forward with this idea. they are shrugging off the concerns of the eu and the u.s.. right now, italy will be going it alone. there will be plenty of talks

among various eu leaders to see if they can restore some kind of united front regarding china. we will have to leave it there. bloomberg's western europe economy team leader. littletay with developments. the promilitary party is in the lead in the first elections, putting the former general in the position to return as prime minister. our chief southeast asia correspondent is in bangkok with the latest. run me through what the reaction has been like so far. >> it was a difficult election to call in the first place. theave had reactions from delay of the results related today at 2:00 p.m. local time. that was delayed from 10:00 p.m. last night.

going into the election, we have to talk about this legal framework that puts -- gives the competitive advantage to the military party. 90% of the vote so far has been counted before it was put on hold. here is how it is looking. we have the junta led party garnering more than 7.5 million votes. we have another party garnering 7 million votes. , another party gathering 5 million votes. the june to linked party, many expected it to be in the leading position at this point in time. >> i'm looking at some of the key trades. stocks and currencies. there does not appear to be a huge reaction. are the investor base taking this in stride?

>> well, investors see this as possibly the best outcome for it wouldt, given that the to -- when you look at thai baht, it is strengthening. equities are strengthening. i have spoken to investors. they say this is a good scenario going forward. fundamentals will ensure thai assets will accelerate going forward. yousef: thank you very much. excellent reporting. our chief southeast asia correspondent live out of bangkok. let's check with these markets. the asian equity session remains under pressure. picking up from where we left off late friday. the bond market flashing those recession warning signals. the market spooked. losses led by the nikkei down 3% in the asian session.

u.s. equity futures reflecting that broader concern. the focus of the emerging-market fx space -- that's all we have for this edition of the show. daybreak europe is next. ♪

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nejra: good morning from bloomberg's european headquarters. this is "bloomberg daybreak: europe." pres. trump: there was no collusion with russia. there was no obstruction. none whatsoever. it was a complete and total exoneration. nejra: president trump claims vindication. robert mueller finds no collusion with russia, but the fight over the report is far from over. bond yields tumbled to the lowest levels in years amid concerns about slowing global growth. theresa may is set to face a plot by her own cabinet to

ouster as she tries to put her brexit deal to another vote. lots to talk about in the markets, but first, our top political story. president trump is calling the mueller investigation and illegal takedown that failed, the attorney general says there is not enough evidence to charge him with obstruction of justice. joining me is bloomberg's senior editor for breaking news in singapore. great to have you with us. is this total exoneration for the president? where does the political fight go from here? >> thank you for having me. this is a great headline if you are president trump. this is one of the better

headlines president trump has had throughout his administration. in robertal question mueller's inquiry about whether or not there was collusion between the trump campaign in russia comes back with very clear that there was not. the secondary question of whether or not president trump obstructed justice, including by firing james comey, comes back saying not blameless, but not enough to move forward. both headlines very good if you are the president. that does not end the inquiry. there are many other lines of questions ongoing, including in the southern district of new york, including related to the trump organization. those are separate. that's a separate process. democrats are immediately demanding that as much as possible of this report be made public. right now we are reliant on a

four page summary by president trump's attorney of what is in robert mueller's report. the report is more expansive than the summary we have been given. see how thatg to fight will play out. certainly, many fights to come. it's one of the better headlines for the trump administration during donald trump's entire time in office and it is going to see a president walk into the 2020 campaign feeling completely vindicated and telling anyone he meets in any swing state he goes to how vindicated he is. thanks to bloomberg's a senior editor for breaking news. the big story is around bond yields. the 10 year fairly steady, but we are seeing bond yields dropped globally on concerns around global growth. a three month tenure curve inverting for the first time

since 2007. this was back on friday. be careful of mislead -- misreading the yield curve. big questions to discuss with our guests. lowerp 500 closing friday. it also close lower on the week. futures on the back foot. in europe, the 10 year bond yield -- bund yields dropping. cable off just a little bit. theresa may perhaps waiting for some kind of political fight. she is battling a plot to push her to resign. is that vote going to parliament again? meaningful vote this week. crude on the back foot. of risk offig pulse today. let's check on the markets in asia. yvonne man in hong kong has more. reaching record

lows in asia. >> absolutely. we are seeing this spillover effect into equities. a look at what we are seeing when it comes to asia. 3%.nikkei down the last time we saw losses like that was in that christmas day selloff of 5%. we continue to see yields tumbling in japan and money being taken out of that market share. 1% losseeing more than for most of asia. hang seng down more than 500 points. you mentioned the bond market. if you take a look at these asian fixed income spaces, we are seeing the 10 year jgb yield at negative eight basis points, the lowest since 2016. of 0.2 ton that range -0.2 the boj watches. they may not feel too worried

about it just yet to have to step in. you mentioned about the record low yields we are seeing in australia, new zealand as well. chinese bonds are rallying once again. some movers as well. we have been talking about earnings. we are seeing big moves in equities today. tencent, one of the biggest laggards in hong kong. we are down 0.75%. cicc afterf earnings. sinopec taking a nosedive. we mentioned jgb's. mitsubishi down 3% 10 the day. -- 3% on the day. ajra: investors are betting recession's coming. does our guests feel the same? william porter, head of european

credit strategy at credit suisse securities. curvehe u.s. yield recession signal, and we are talking about the yield curve here, be valid this time? periodsot form and the that strike me are 2001 and 2007. i take market indicators more seriously than i take a lot of comment. yes, it has got my attention, no question. there are other markets telling different stories. whetherforced to wonder central bank has had an impact. we have had a very active fed if we think about the recent six-month history of the fed. they have dominated the discussion and things are under change their. big changes in fed policy. i put it in a scoresheet, i would give it a big red light,

but it is not the only light. you mentioned other things. one thing is credit markets, yield curvesg and relatively tight. would you say you are not seeing the same concern in credit markets? >> absolutely. we take a lot of incoming in our 2007., especially a lot of people tell us we are wrong. we have to look at our own indicators. when we look at those, credit distress, there is leverage and there are pockets of distress, but if we look for really systemic -- european retail is an obvious example. if we look at systemic macro problems coming from credit markets, they are not there. nejra: if we go back to the sovereign curves, are they saying the fed should be

cutting? or are they simply predicting it will? is there a difference? >> we have not talked about demographics for a while. some of the really big demographic -- on brexit we have to talk about global inequality issues as well. these are big themes that were well covered a few years ago. you don't hear about them now. influxs a demographic and you're looking at it as populations age and financial assets find their way into the hands of people looking for security of income, that changes the supply demand dynamic. we have to be careful. i hesitate to write off indicators, but we need to understand the context in which this is happening. >> what do you think the fed should be doing from here? they are saying there's going to be a rate hike in 2020 or beyond that. would that be a policy mistake? that is one year away,

so it is impossible. a rate hike now would be a policy mistake. in my judgment of the trends unfolding, relatively full employment, there are uncertainties about china clearly. no doubt we will talk about those in the european context. if i look at the trends taking place in the u.s., i think the -- will find himself back on find themselves back on hiking track. are a lot of questions over whether the fed is trying to extend the cycle. the three month tenure is flashing a warning signal. that may not come for 18 months. what does that mean for rate assets? is this the time to be adding to risk assets, especially of sentiment and conviction to solo? >> we had a genuine scare. in october, it was when powell of globalech in terms

risk that was really unfriendly. we went into december and the fed told us something much more tolerable, which is it is going to trade the data. to aled recently tremendous risk off. are we going to replicate that again? i'm not sure. a lot of people got offside. the flows we see, and we typically witness in equity markets are as liquidity has improved, money supplies around the world are picking up now more money chasing fewer assets. we think there are substantial buying below. the market is back on dips. it would take hard work now from the fed, the sort of hard work they did in october, to mess that up. be looking toou quality? a lot of people say now is the time to look at quality. actually, could you take more

risk? william: that's very interesting, because if we look back at that period, one of the things that really blew up big red lights on our dashboard was we called the distressed ratio the proportion of credits, i follow it more closely in europe, but this was true globally, trading at a price and thatjust to spite, is heavily correlated with the future default rate. that one really got our attention. the has come back down. what happened is there is a recomposition of risk taking ability and markets. they have obviously made massive changes to the banking system. other risk-taking pools have their own challenges. that created an air pocket, effectively. theot very worried about lower quality part of our markets and looked for future

defaults. that has now turned out worst amber. our view is that actually, being forced into quality is probably not a great trade. we are more risk prone at this point. >> very interesting. thank you. william porter stays with us. we are going to talk about this, including the bond yield -- bund yield -- going lower. >> special counsel robert mueller found no collusion between president trump and russia during the 2016 election. the report said there was not enough evidence to find the president obstructed justice. that did not exonerate him either. the fight over robert mueller's findings is far from over. top democrats are demanding the release of his complete report. >> there was no collusion with russia. there was no obstruction and

none whatsoever. total a complete and exoneration. istheresa may's cabinet pushing her to name the day she will step down. this weekend, one million protesters marched to call for a second referendum and petition to asked the government to scrap article 50. >> the government has failed. absolutely failed to deliver on the results of the referendum. when parliament and government fail, the only sensible thing to do is put the people back in charge. >> the turkish lira is rebounding. this after president aragon warned -- president erdogan

warned bankers speculating against the currency would be punished. the nations banking regulator says jp morgan has recommended selling the lira has manipulative context. global news, 24 hours a day on air and @tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. nejra: after securing a short extension, theresa may is on the verge of losing control of brexit. we will discuss that next. when you are traveling to work, tune into bloomberg radio on dab digital radio in the london area. ♪

nejra: let's get a check on the markets. risk off on the headline level and broad-based across asia. the msci asia pacific index in

the red in the context of global bond yields continuing to fall. jgb yields fall lower into negative territory. a 243s. 10 year yield on handle. the curve inverting for the first time since 2007. it has predicted seven recessions. we saw u.s. equities fall, taking on friday. the s&p 500 on the back foot again. aussie yields hitting a record low. all that in the asian session and globally. cable on the back foot. the dollar bid overall. idiosyncratic challenges to the u.k.. what could those be? we will discuss is the euro tanked on friday along with the 10 year bond yield -- bund yield. let's get the bloomberg business flash. uber is set to announce a

$3.1 billion deal to acquire a dubai-based rival. it was valued at $1 billion. making it one of the most valuable technology startups in the middle east. the company says it has over one million drivers and operates in more than 90 cities. youtube has reportedly canceled plans to hire -- a pullback from its plan for a paid service with hollywood shows. the decision is reportedly due to the high cost it would take. deutsche bank's investment banking arm has become a focus of merger talks with commerzbank according to the wall street journal, which reported the tone of discussions is constructive. lenders have only just started to touch on tougher issues. that is your bloomberg business flash. nejra: thank you so much.

theresa may is fighting for her political life. she battles a cabinet plot to push her to resign. the uk's prime minister is hoping for a chance to bring her brexit deal to about. she will first have to seal off attempts by lawmakers to take control of the agenda away from her. meanwhile, a former tory leader said the leadership conflict with throw the country into chaos. >> any idea of a leadership election would create complete chaos. we are in the middle of trying to figure out what we do. sayhange the argument is to to the european union, we have lost control completely and to make us a laughing stock around the world. joining us on the phone is bloomberg's managing editor for european politics. great to have you with us. can theresa may survive an attempt to oust her? >> difficult to predict. it really looks like we have

reached a turning point. by seems to have squeaked , so thatain contenders has bought her reprieve. she is going into this week almost fatally wounded. weeks to try to get her deal through. the way things look in parliament, that just looks not possible. howa: explain to us if and parliament might be able to take control of the brexit process and what that means. >> we often talk about parliament taking back control. what that in effect means is lots of people want different things and there is no particular majority in parliament for anything. we are waiting for moving right now after theresa may lost twice

by massive majorities. the series of amendments, there's going to be one today, that gives lawmakers are -- control over the process, which means over the coming days, as soon as wednesday, we could have votes where members of parliament get to vote that they want a second referendum. there will be a suite of options. the ideas this will clear the way for the majority. as i said, we are not there yet. theresa may seems determined to try and put her deal to a vote a third time. essentially, trying to see if she will be allowed to do that. so much tok you bloomberg's managing editor for european politics. william porter is still with us. are we going to see the meaningful vote for a third

time? will it get through? william: i don't know whether they will put it through unadulterated. my view of where we are going to end up is that it will end up being passed adulterated. a majorityan reach is by tacking on the customs union. the eu has made it clear, and we have done the theory on this, they will not reopen the withdrawal agreements. ,ut the political declaration that can be agreed at midnight on the 11th of april. i think that's where we are going to go. whether theresa may can get there without adulterating the does become likely, and if she is not, she's going to try. i think we are likely to get there on time. nejra: you do think some form of

deal might be passed within this extension timeframe you have given the u.k.? for a long time, you have been calling for zero chance of no deal brexit. william: i had a bad moment at 5:00 p.m. on thursday as she was eyeball to eyeball with micron -- macron, and i thought actually, what this has been about is it is not about personality. theresa may is not the u.k.. you could end up with a very interesting situation where the eu and the u.k. in some form disagree about where sovereignty lies. if theresa may and parliament and about odds, you could adjudicating cj eu on whether the u.k. is in or out. i had a bad moment at 5:00, but the u.k. system is much more

complicated than one standoff. the uk's dynamics were so much more complicated. all we can do is ask the question about what we could get through parliament, which was the right question. nejra: where do sterling assets go from here? >> the problem, of course, is the global growth issue. the u.k. is actually a good play on global growth. economy, the u.k. ifks relatively well-placed you can clear this hurdle, which i think we can. nejra: william porter, head of european credit strategy stays with us. theng up, how worried is prudential ceo over yield curve inversion and the economic slowdown? we hear from him next.

when you are traveling to work, tune into bluebird radio on your mobile device or dab digital radio in the london area. this is bloomberg. ♪

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nejra: the global stock crowd gathering pace. look at the sea of red in asia. broad-based losses. the msci asia pacific dropping 2%. joining us from our bloomberg partner in mumbai is near russia. let's kick it off with you. we have talked at other times about indian markets outperforming the rest of asia. india has not been able to escape the risk off today when it comes to equities. talk to us about the bond market. >> you nailed it.