>> good morning from bloomberg's uropean headquarters in london and live from abu dhabi. this is bloomberg day break top stories.'s new threats as president trump roposes a raft of new tariffs on the european union to counter plan for as brussels an e.u. china summit today. for a short brexit delay at home. members of her party try to outstanding her yet again. $75 billion and counting, aramco prepares for its debut bond sale.

>> day break, we're still on the riyadh to abu dhabi, if you were frightened at all, longer term t the because blackrock says we are cooling on our treasury positions, we're too confident, market is too confident. the next move from the fed is cuts the market has two by 2020. blackrock says get ready for a hike. they like short paper and protected paper. they're saying that inflation come back to life and you'll hit 3%. you want to be patient before buy your bonds. w.t.i. getting back a little in w.t.i., rd goldman sachs have raised their

$72.50.o it will be higher than opec to xtricate themselves from the cut. you heard from the military yesterday basically saying, ook, we're ready to do what it takes. we're going right to the wire to cuts.d those have a look at the dollar from standard charter this morning over there saying fading in g to see a strength, growth that will suck u.s. and s out of the into other currency, maybe not the euro, good morning. >> manus, good morning. let's talk about equities first. we have seen an eighth straight equities ending in the green. yesterday, futures were ever so slightly in the red. looking at we're right now, u.s. futures flat treading water here. goldman saying there is a fear of missing out when it comes to equities. saying you should hedge the risk. the blackrock call is

nteresting, still treasuries are an attractive hedge if you and risk asset. challengers for teresa may, i put the equities up there, yes, that's right. got a ninth straight day of days of emerging market, the since january but a little different if you look at to highlight g turkey. turkey ome weakness in with the questioning of the result of the municipal vote, it strong as quite as the run in equities. is brewingthe debate why it is soft. canary in the coal mine warning says some. question, to your c.p.i. and fed minutes, that direction. you some jewels. to singapore,

> we are seeing treading water and cautiousness in asia. you are seeing some good buying in hong kong and china, up by half of 1%. it's what they're dubbing super wednesday tomorrow, no surprise on investors are staying the sidelines today. interestina's one-year rate climb to its higher of the liquidity will tighten. we flat on the nikkei and are seeing a little coming through in indian stocks, fairly well.s let's look at the stocks that we have been walking in detail. been about the surprise space.n the casino that has seen crown shares 21%, the most since

2007.ere listed in they are offering $14.75 for the more than the closing price on money. air watching this conditioning maker in hong kong deadly limits.he hey like the plan to sell out of their parent's stake. heading for a six-year low, starting to recast disappoint. manus. julia, thank you very much. let's kick off with the latest news on trade. is proposing tariffs on a host of european goods in response to harm the white house says is being caused by illegal subsidies to airbus. it's been 15 years since the u.s. first complained about boeing ompetition for and now it plans to target

products. that threat comes just as e.u. final stages the agreeing on terms with trade alks with trump and his administration. dubai joined in our studio and the chief economist china.eater let me bring you into the conversation first of all from think el of angst if you that we move, it's like a rolling roller coaster. from china, u.s., europe is rising. deefficiently and europe?u.s. >> i think we should not be too announcement.uch it's true that the market has

een extremely focused on the pure u.s.-china trade deal. o a lot of attention here, forgetting there are trade wars that are ongoing. canada, mexico, u.s. trade, we haven't seen any progress on that one. europe coming. so this is something which is for some time and o over with these trade war risks, now it's moving, attention is moving to europe. that's another, let's say for unfortunately.ts >> charles, great to speak with you this morning. ne of your key themes is trade war casualties. are you able to act on that heme and make money from it yet, or are you still waiting on the sidelines? that's one of the theme, some kind of resolution war.he u.s.-china trade one way to play that is to come back on the trade

w if you do see some kind of esolution happening between .s. and china, some european exporters will benefit. here is no focus moving to europe, we need to decide which losers from rs and a new shift in terms of a trade war. >> let's take the conversation to the east. raymond, raymond, thank you for joining us there. that this level of political and trade angst china will u.s. and push the chinese and the closely even more together. hasn't ce it, europe expectback on 5g, do you

a closer relationship to evolve? >> i believe so. the u.s. not very welcoming and need some time they room for european to receive support. they can find some common ground. and enchl the china u. needs to deal with the bilaterally. it's pretty naturally for europe closer at o come least on certain issues. for example, climate change and w.t.o. reform. e.u.-china summit this week. even though they may not come a joined declaration or a closing statement, at least a between the two sides. >> raymond, are you expecting stimulus to come from chinese authorities for the rest so, what ar and if

kind? still he moment we are looking at further cuts, the some room ratio has to be lower. another 100 basis points is possible. impression of timing and even though that we're expecting the better in april, it might be some case that china likes to launch some other stimulus or instrument in order alleviate the final condition example. verall we're not that pessimistic about the growth outlook this year. 6.3% gdp growth or the full year. the first quarter number will be released next week. it will be on the upside that in the first g 4% quarter as well.

investment, cture we are seeing some momentum months.over the next few >> raymond, just stay with us. we're attacking the south january story signature there 1,500, 1600 jobs to get. c.g. union, 1,600 france. in we broke the story a couple of eeks ago in terms of the reorganization. his is commerce bank and deutsch bag. the confirmation and let's get into the markets as a consequences of european slowdown. one of our bloomberg opinions that wouldonly thing save the minnesota equity market hero. drop of a >> i was wondering is it already

passed on that side. ee the positioning, the most 2016.sh in me, to ked crowded to you, how does it look? difficult outlook for the equities, there was a bounce first quarter, the u.s. could use in merging markets. two stronger head winds here with liquidities. momentum.is weak we have seen this with the manufacturing orders, solution and the tween brexit, >> these are two strong head attractive.

nor europe besides, a hero weakness. resolution on brexit, improving th some with the numbers. e.u. trying on the to fund what we have already touched on, you said we might huge amount of by the nd of the summit, nonetheless, are there any conversations of hat started this week from today on relations between china and the u.s.? u.s. is running a china.deficit for have the check win and a t to a win close relationship between the

two blocks. that will possibly happen at the same time. it is quite that for china to push a closer relationship with the they row,specially if that's the baby of the president. to get the economic relationship closer to the allern side of the country, the way through the middle east europe. i think that's fit pretty moreal for china to play a active role in having a close-up europe.ship with they may not have come up with agreement, but i don't think that matches. there can be a relationship that should be closer under the current foundation. >> raymond young, thank you for

today.g us the managing director stays with us. thank you both. let's go to bloomberg first news with dudley in dubai. >> saudi aramco has received 75 for its debut.rs paper from the world's most profitable company. it makes a tremendous turnaround. wall street briefly shunned saudi arabia following of journalist on jamal khasoggi. benjamin netanyahu is the ongest serving leader if he wins a fifth term. prime minister has been wooing right wing voters with annex parts of

israel's west bank. announced ts will be thursday. the trump administration has barred from forcing asylum seekers to wait in mexico while he applications are being processed. back uling is a set for-president trump. his after demanding the secretary of neilsen. back to you. i'll pick it up from here. may will meet with er french and english counterparts today. the exact conversation is next. > we are traveling to week, tune into bloomberg radio live digitalmobile device or

radio in the london area, this is bloomberg.

>> i think 2019 is setting up to i.p.o. year exciting since 2012 for a couple of reasons. you have wonderful companies, ber, lyft and airbnb are investors to the

economy. remainss something that a plan b. > it's bloomberg day break europe on tour. abu dhabi.n a few minutes s jobs are cut in a restructuring plan. job losses the include over 750 in france, lobal banking and investor solutions would reportedly be the worst hit. we'll continue keeping an eye on you. for let's get to the bloomberg usiness flash in dubai with dudley. >> tesla has cut another wave of sales staff. it's shifting it's ordering process online. a s after announcing

disappointing deliveries report. this fresh round of dismissals latest shake-up at tesla. almost a signaling complete withdrawal from physical stores, the company backtracked. officer and k senior traders are reportedly company, this as japan's largest brokerage cuts back in several markets credit.g it's part of a plan to cut costs n its investment trading operations. it plans to save $1 billion in coming years. bill gross' fund has shrunk by 70%. gross' own mainly by withdrawal. billion by 2018 but tumbling after a serious

of launches. bloomberg business flash. >> thank you very much, the very latest. let's talk about teresa may will meet with her french and german today as part of delayforts to win a short to brexit. her position at home is unstable.ly talks with the opposition remained stalled. she has not shifted from her red toru m.p. is all forng a fresh vote, grabs. joining us from brussels with see uropean angle, good to you this morning. teresa may has a lot of work to paris, can she onvince the e.u. that she really have something taerl to offer. morning, manus, the

prime minister wants a short doesn't want into the elections. you can see why it's problematic. it's significant that one day before this summit, she has dyed her.o see the french have been very different. macron has flirted with the idea brexit.eal the germans and the french behind the scenes actually are more ing a much coordinated response to whatever result of a e the compromise between the two. also at the same time it's worth in mind that here in brussels, there are many other point states who at this do not want to see be seen

no deal brexit. maybe a debate on a veto. reporter maria in russels, still with us is the managing director and c.i.o. who in dubai. enjoyed reading your april perspectives, 20 pages for your utlooks, it covers every asset class or part of a globe. i didn't see anything on a though, should i be in the for you to come in investing. >> coming to brexit, we may be to a surprise on super win. something new and these compromises need to be very convincing, when she presents

it. they are expecting another extension. no. why no? might beesident macron able to go for these moments. the her words, say no to u.k. we'll see tomorrow, again, i think it surprises, it's it happens, then you create a parliament with to decide between these no deal and the new deal 50. coming back to investments longer on the cable. french that he the laid plaster off of hard breakity.

we are trying to conjecture that might -- investment would do. what about the euro sterling? most versatile would be the cable, but you know how it equities, once the cable is too weak, we see and it collapsing. phases, probably the market panic aal markets might little bit. higher for re-vote votes. 60-40. like efinitely there is some relatively, there is face on the side which is interesting for

investors. > could pack the country and stays with the bloomberg team ♪d c.i. o. >> a mixed picture when it comes

to asian equities. the msci is higher by 2/10 of 1%. you get a sense the markets are finding their feet today. mixed picture inequities. 10 year treasury yield a steady. getdollar is steady as we this potential threat of u.s. eu trade tensions rising. but in your region, the aramco bond sale, wow. manus: it is wow. it's just a monster. $30 billion, the

team went to work like beavers. the most important point from yesterday's conversation in riyadh was this. he's creating a yield curve. it will offer you access to the bond and equity. permanent presence and capital. that's my take away headline from the conversation. what a monster bid. nejra: absolutely. look, this could be a wet friend of on the oil -- referendum of the oil market. quarter, the best in a decade. you have goldman saying if you want to look at the oil markets future, go back to the 1990's. it's interesting how they focus on what happens next. we are sticking to the cuts, we

will go right to the wire. goldman focusing on that note. saying, how you get yourself out of this? you have waivers on a ron and natural squeeze from venezuela and the likes of that. oil essentially overboard at the moment on wti a. -- them uti. let's check your markets around the world. we have the team stranding by. horton.n, and ray good morning. indian markets up and running. been a little bit of apposite this point in time, issidering the benchmark trending largely where it left off yesterday. as faras been some loss as the banking index is concerned.

if you leave that aside, we are looking at not too much momentum. the rupee is a concern considering weakness against the u.s. dollar. this is after we saw the surge in crude prices. the biggest talking point in today's trade is the indian volatility index which continues to trade at reasonably high levels. levels highest in the last five months. account ofgely on getting into the general elections. that remains the biggest talking point. manus and i were just discussing oil, talking about the relative strength index. the technical indicators might suggest the rally has gone too far. >> you guys left off on a perfect spot were going to pick up. rally,seeing this pricing the highest since november. it is now in stretch territory

for wti. this rally is contradicting these technical levels. a lot of this has to do with geopolitical concerns. things in libya are escalating. they bombed the tripoli airport yesterday. we have a fresh concern with the ram. iran. ran -- there's a lot of pressure right now in the oil market. i also want to talk about what you were also talking about at the top. saleis this massive bond for saudi aramco. $75 billion. we just kept seeing this number take higher. it is well north of $30 billion. issuance may be pressuring the saudi sovereign debt yields which you can see here. --mco is expected to pay

raise 15 bill -- $50 billion. we are expected to get that final number in london. nejra: thank you so much. nellis get the bloomberg first word news. the trump administration is proposing new tariffs on some european goods. this is in response to eu subsidies to airbus. the threaten tariffs would be on $11 billion in imports. it's nearly 15 years since the u.s. first complained that airbus was benefiting from illegal subsidies. protests in sudan as demonstrators hold us it out outside of the president's residence. this is the third third day. they have urged the back their uprising. they want to oust the nation's longtime ruler. forces fired tear gas in a bid to disperse the crowd. felicity huffman is among more

than a dozen people who pled guilty in the u.s. college admissions scandal. she is accused of paying at least $15,000 to cheat on an administration test for her daughter. the actress best known for her roles in desperate housewives. many are making a plea deal that carry at least minimum prison time. blackrock is calling towards u.s. treasuries. they are wagering that investors have become too confident that their reserve will cut rates. still seeing the move as a hike. this is despite investors pricing in two decreases by the end of 2020. global news 24 hours a day. powered by more than 2700 journalists in more than 120 countries. this is bloomberg. i got your name right now. we are all good.

cautiong on from that, from blackrock. today we are asking the following mliv pression. which sovereign bond market is most reliable to reversal. -- vulnerable to reversal. fear of missing out is likely to go -- grow in equity market. a sentiment backdrop that begs for caution. goldman remains constructive in their after allocation. risky assets continue to outperform and volatility resets lower. see says that's where they see growth going forward. believe thately the emerging markets are where most of that growth will come over the next decade.

i spend quite a bit of time in asia. we absolutely are investing a crowd -- across the region. still with us is the managing director at al mark capital. let me just refer back to the comment from goldman sachs around fear of missing out in these equity markets. equity exposure has been picking up. it still remains relatively neutral. would you be preferring u.s. equities over u.s. bonds? >> definitely. we are positive starting the year. the past is getting narrower for equities. we stay constructive. we expect volatility to pick up. we're getting sentiment. looking at q1, that's the most instant rebound ever.

etf flows showing negative inflows for u.s. equity during q1 despite a strong performance. this fear of missing out might in the earlyack weeks of the spring quarter. if we are looking at the global picture, there is a good part and a less good part. the good part is that earnings revisions have been too strong. we move from 13% to just 5%. we believe that there might be some upsides on that front. , in line withpart the blackrock comments you mentioned before, maybe the market is expecting too much to vicious from the u.s. reserve. we might not see these rate cuts this year. we might only see red highs in the single half. this would cap the valuation for equities moving forward.

manus: is that kept the equity that takes us into the bond market. take a look at this chart. this is aussie rates and u.s. rates. said, has you just the bond market gone too far too fast? i'm talking about record lows in new zealand and austria? -- australia? ? how do you apply your thinking to that? looks like a continuation of financial repression. australia and new zealand have their own issues. regarding the u.s., was a big run in q4. this yield for -- might come back later this quarter.

let's keep in mind that the u.s. economy is doing decently well. there is some inflation. look at wages. above 2% growth. we had the numbers yesterday. brent going up 3.2%. 92% of u.s. cities are seeing rent increase. there is inflation. we went back to dovish because q4, economic momentum was not good. if things improve, they might come back to a less the best dovish --dovish stance. nejra: is that not a risk to earnings? you said the consensus has gotten too pessimistic on earnings. why is it that you think that we need to recalibrate our expectations? on u.s. earnings? does it have something to do with china? >> it's a technical.

most of the first quarter of one year, we start with optimistic expectations. then there is some pickup. indeed, china. china has had headwinds in terms of global equity markets. it looks like they are coming with fiscal and monetary could help the chinese economy but also worldwide. this is going to increase the expectations in the u.s. and other parts of the world. brieflyet's just finish with the by backstory. it was a big driver of 2018. goldman sachs is running the numbers on a world without buybacks. $420 billion has been bought back by corporate's. more than household pension funds. can you envision a world which

has starvation of buybacks because of politics? what would the consequence be? >> that would be very difficult. numbers show that it has been a big contributor. with more dovishness from this enables, companies to leverage themselves. do more buybacks and they have been doing in the past. unless some very strong political stance comes here, i don't see buybacks coming down. on the contrary, they might increase. it would be headwind for the market going forward. manus: that's what makes the market. the entire institution. coming up, world's largest oil company gets $75 billion for its debut bond sale. we will bring you our latest stories.

dumbest our exclusive interview with the oil minister of equatorial guinea. we bring you the international arctic forum. vladimir putin speaks on a panel moderated by bloomberg's senior executive editor. he is joined by world leaders from finland, iceland, norway and sweden to discuss the future of the arctic. this is bloomberg. ♪

manus: this is bloomberg daybreak: europe. i'm an hour european headquarters in london's. let's get the bloomberg business flash now. generale will reportedly cut 1600 jobs in a vast restructuring plan. -- losses include

750 jobs in france, globe are banking and investor solutions. of's has cut another slate still staff. they are continuing to shift its ordering process online. this after announcing a disappointing deliveries report. is the latest checkup at tesla. just days after signaling an almost complete withdrawal from physical stores, the company backtracked. the chief risk officer and senior trader is reportedly exiting the company. this as japan's largest rockridge cuts back in several markets including u.s. credit. this is part of their plan to cut jobs in its global trading and investment banking operations. it plans to save $1 billion in the coming years. twins cofounder has just received a salary of 140 cents. the modest sum is a reference to

the former character limit for tweets. it was increased to 280 characters into 717 to boost with -- user engagement. that's your bloomberg business flash. manus: thank you very much. let's get a little bit more now on the aramco story. the world's largest oil company has received $75 billion in orders for its debut bonds. yields are expected to fall in line or below saudi arabia sovereign debt. investor appetite for quality paper. let's get to our middle east commodities editor. he's in our dubai studio. the appetite for bonds, $30 billion yesterday morning. billion, this is a real validation moment for the kingdom. in terms of aramco and what it can offer as a proposition to

international investors. >> exactly. the we first started seeing numbers from aramco last week, the world's most profitable has the same amount of net income as apple, google and exxon combined. i don't think it was surprising to see this feeding frenzy on the bond. most analystse predict they will raise $15 billion. the company doesn't need the money to close the deal with sabic. it is part of what yesterday the is aman of the company long-term plan of increasing debt. providing the instruments necessary for it to fund its future expansion. nejra: good to talk to you. the size of the order was $75 billion. it exceeded analyst expectations. how big could to deal -- the

deal eventually be? >> that's the big question, the pricing. .he size of the deal depends the pricing will be key. if it comes below the sovereign curve, that's one thing to report. the other one is, we have to look at the curve for bp which has the same rating as aramco. wants something they would to entice as much as possible. let's see whether the secondary market tightens it up for them. our middle eastern energy commodities editor. the managing director and cio of our capital joins us from our dubai studio. this is a monster deal. if you can get your hands on this paper in the secondary market, with you? would you buy it? >> definitely.

the first reason is that we have been positive on gcc bonds for a very long time. on the bond side, definitely on the risky side. they are offering this value. there is too much geopolitical risk premium in the price. we definitely avoid the bonds. another strolling number of the gcc moving from being very niche to the map of global equities. not only on the bond side. just on the equity side. saudi and kuwait. the two trends are getting together. that's very much developing the region. nejra: there's a couple of directions we could take this in. we'll would be an obvious one. the msci emerging market index,

is the gcc one of your preferred selective regions in emerging markets? are there any others that match it? >> yes. it's not my favorite region. foreign participation is very low. it can only go up for it. that's one of the tailwinds we have for the region. beyond this, we like emerging asia. also for valuation regions. the main reason being what we discussed earlier. bes expected to disproportionately benefiting this region of the world. we are writing the reflation story. i had the bank of singapore in the same scene on sunday.

he talked about the reflation propensity for china. how would that manifests itself? how soon will that come to bear? i think we have a problem there. and you can me? >> yes, sorry. see somearting to numbers on the china side. that's one element which is going into this direction. how much it is priced by the market, even the very strong advance we had in the first quarter definitely is pricing the market. aree reflation stories expected also to benefit some parts of the market which have been lacking until now. it has been mainly about growth strides, for instance. value side has been lagging. if we do see more interesting developments on these china stories, maybe we will see value

sectors doing some ketchup with the growth side. nejra: that's interesting. one of your themes is growth stocks. does that mean you would start pulling back a little on the growth stocks or just adding to value simultaneously? >> yes. was at thestock start of the year for the very simple reason, when growth is slowing down, investors are willing to give premium. we have seen the first few months of the year, maybe we have been too far on that front. or valuation of the funds the performance of nasdaq or s&p 500, this has already played very well in the first quarter. we might see some kind of inversion between the two. on the long-term basis, we do not expect gross to be too strong. we might stick with the growth story. there is a valuation component. , probablyershoots

wiser for investors to take it down and look at other possibilities. talking about the china repatriation story. the value story to be one of them. nejra: thank you so much for joining us today. great to have you. the managing director and cio at al-maliki capital. coming up, we will bring you the international arctic forum, live from st. petersburg. vladimir putin bigs a panel moderated by bloomberg's senior executive editor. he's joined by world leaders from finland, iceland, norway and sweden to discuss the future of the art that. -- arctic. bloomberg users can interact with all the charts we have shown using tv . we have more to discuss on trade in the market. manus: we have indeed. we will pick up the things discussion.

$800 billion. we will carry you through the next 30 minutes of the show. if you are traveling to work, you know what to do. we are live on your mobile device or on dab digital radio in the london area. ♪ want more from your entertainment experience?

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manus: good morning from abu dhabi. this is "bloomberg daybreak: europe." new threats. raftdent trump proposes a of new tariffs on the european union. for an brussels prepares eu-china summit today. in paris.y at home, members of her party try to ice her once again. would/jobs at the banking giant.

nejra: welcome to "daybreak europe." equities..s. eight straight days. a little softness in u.s. futures today. the equity market trying to find its footing with concerns around u.s.-eu trade. futures ever so slightly to the downside on dax and cac 40 futures. goldman urging investors to hedge risk. i'm talking about goldman and equities. you are going to talk about blackrock and bonds. manus: treasury yields are dipping. in middle of your sheet. you are all too confident about

the next move from the fed being two rate cuts. get ready for a rate hike. we will show our last guest also said -- we are going to show you some carlos ghosn pictures, but the equity markets, you want to be short dated paper. let's have a look at these live pictures. carlos ghosn is in prison. this is his lawyer. the news conference carlos ghosn intended to hold, then he was rearrested with the new suggested or alleged misdemeanors in regards to finances. we are keeping an eye across that. in.re going to listen we will come back to that in a second. juliette saly is ready to rock 'n' roll in singapore.

>> we have started to see more of an uptick in late trade in asian equities. it was a cautious day. they are tomorrow super wednesday. today, not a lot occurring in terms of market moves. you have seen the nikkei closed higher by 0.2%. flat, along with australia. a bit of a pickup in ems. em currencies today as well. the msci asia index higher for a third session. let's have a look at some of the assets we are watching. some volatility has dropped to the lowest in more than four years. we have been looking at the jp morgan volatility index. it is unchanged after falling for seven days in a row. the yen on the front foot up by 0.1% against the dollar. still holding onto gains from yesterday. we started to see more turnaround in japanese stocks

toward the latter part of the day. having a look at the korean yuan, the worst-performing asian currency yesterday. a lot more money going into ems today. that has lifted the korean yuan. it is up by 0.2% against the dollar. we have seen global funds continuing to boost holdings of south korean equities today. tuesday.quiet for this nejra: let's turn to oil. sincear its highest november as political tensions see libya and iran, production cuts made by opec and its allies. nation offrican equatorial guinea as a member of opec and produces 120,000 barrels of crude per day. joining us now from johannesburg , then exclusive interview

oil minister of equatorial guinea. think you so much for joining us this morning. gainssee a third day of for oil, some technical signals showing it is in overbought territory. with that in mind and where the price is, should there be an extension of opec plus cuts? me.k thank you for having oral -- oil is very important for equatorial guinea. -- and clearly the decision was we needed to monitor a little bit how the price was going. in june, by the time the june meetings arrive we will be able to have more information to make decisions. we believe the stability of the price is important.

opec is not really controlling the price. we want to make sure it is a stable price because that instability allows companies like us to have a more sustainable planning on our development. we don't like volatility. clearly what is very important is that we maintain long-term pricing. we do not control politics matters. we know members have issues. that is important to monitor and dependent on different factors. we are going to dig into what you are doing with strategy for regrowing. can i push you in terms of russia? opec plus and the cohesion of that grouping, is it as strong

as it was administered? do you think the russians are onboard with the principle of an extension? >> i think the alert to understand what we have done for opec and non-opec alliances, before all this crisis, we never spoke together. we never talked about the loss of production, about what opec is doing. what we have achieved is oil producers around the world, opec member and non-opec member, they are talking. that discussion we have three , we all have our different geopolitical things we need to evaluate. in terms of the relationship with opec, non-opec, russia, saudi arabia, it is great. we have a great opportunity to understand better what is the

problem with each one of the players. my conclusion would be, yes, we have to have our own politics, but you have to remember what i said. what we want is a stable price. do not like volatility. volatility has not happened almost two years. the prices have been around in the same areas. havepeople would like to 100. other people would like lower. what is very important is the producers who need the price and the consumers need a price that is sustainable for economies. we will come back to you in just a second. we just need to get to some pictures here as we are seeing carlos ghosn's lawyer speaking. that is carlos ghosn himself we are seeing.

seeing -- he is saying in a statement he is innocent. a pre-recorded statement from carlos ghosn saying he is innocent. saying the accusations against him paint a picture of greed. that is what we are hearing from carlos ghosn. let us get back to the equatorial guinea oil minister. thank you for your patience while we got to the breaking news. thented to turn back to question of equatorial guinea's oil production. of what ita third once was. you have said you are known among oil executives as the godfather for your tough drill or drop position. that is after you have given talks with companies, including tallow to take over exxon stake.

i want to know about your strategy. is your strategy working given that oil production is only a third of what it was? flattered by the name. some people are having doubts on that name. what we are trying to do and what i have been saying is we have suffered through the period in which the price was not really there. the price we wanted. we were very flexible. we give extensions to companies. we understood there needed to be liquidity. now the need to prove the need to go into investment. you know youl, need to help oil. if you don't have discovery, you don't have production. the companies need to understand , companies that have liquidity

and know what they do, they have not a problem. companies -- companies who for any reason is because we don't have the gas. clearly this is not a mom-and-pop business. this is oil and gas. we are very confident by the summer we will have good news regarding drilling. exxon mobil, they need to get drilling to maintain the product. we have products that by the summer we will be able to have good news. isarly, the other key thing we need to go to the license round. we need to make sure there are new players willing. it is attracting a lot of interest.

we have recently confidence that 1000 100lose to delegates. manus: can i interrupt you? ra may have given you the moniker of drill or drop, but you are more show me the money. they are drilling and they are producing. what are you going to produce this year? you part of opec. you are a small part. that is what matters to the cohesion of opec plus. what are your numbers? >> our number at this moment is 120 barrels per day. we have a production of 300,000 barrels per day.

a whole new moniker for you, minister, which is show me the money. equatorial guinea minister. i will be seeing you -- you know what? it's all about growth. minister, i will see you in vienna. thanks for joining us this morning. >> it will be a pleasure. manus: it is always a pleasure. let's talk about politics now. it is decision day in israel. the country goes to the polls. facing theinister is political fight of his life amid corruption allegations, a strong challenge from a retired general. b's are standing up to one another. let's discuss this with our israel governor reporter. how is the campaign leading up

to today? some really momentous moments. >> it has been a fiercely fought campaign the past three months with a group of former generals that banded together to deny netanyahu a fifth term with the corruption charges potentially looming over him, he can't continue leading the country. netanyahu for his part has tried to brand the centrist party rival as weak leftists. he has said he is the country's indispensable man and played up his international stature with trips to the u.s., hosting the brazilian president. he has made the case he is the only one who can continue to lead the country. thank you so much to bloomberg's israel government reporter for us in tel aviv. let's get back to the pictures we were looking at earlier of carlos ghosn on a prerecorded video saying he is innocent,

saying his biggest wish is to have a fair trial and also saying in the video a few executives played a dirty game. he says the accusations against him paint a picture of greed. this is what we have been hearing in a prerecorded video from carlos ghosn. also saying he doesn't think the vision of the alliances being built. we will come back to those pictures and talk more about the markets concerned about -- concerns about the relationship between the u.s. and the eu in terms of trade. markets struggling for direction. futures treading water. futures edging into the red. this is bloomberg. ♪

nejra: 7:18 a.m. in london. this is bloomberg daybreak: europe. a quick check on the markets. shaken and not stirred. asian equity markets giving a little bit back. punching perhaps a little bit above wait. blackrock say they are cautious on treasuries. we have to be patient. they want to be longer a little bit. good morning. nejra: blackrock do say treasuries are a good hedge if you see a fall in equities. after eight days of gains in the 500 futures on the back foot, we were here yesterday and we ended in the green. euro stock feud -- euro stoxx 50's futures down.

prevarication in the markets. cable up for a second day. u.s. isof trades, the proposing tariffs on a host of european goods. the move comes in response to harm the white house says is being caused by illegal subsidies to airbus. it has been years since the u.s. first complained about aboutints -- complained going. it says it needs to target european products. peter, we talk about u.s.-china relations, we often say good news is priced in. how much of the next leg of potential trade tensions between the u.s. and europe is priced in's equity markets? >> people talk about it too much. no one is designing -- denying these subsidies. it is $11 billion. it is a slap on the wrist.

going tothink it is escalate into a trade war. the european region is quite tariff orientated. there are tariffs all over the place. argue theicult to argument americans make are incorrect. they are not exactly embracing free trade. it could be there is an escalation with europe. let's wait and see. market is telling me a couple things. we have a chart. u.s. treasuries, new zealand and aussie bonds, you saw that collapse in yields. to me, that signals real levels of angst. has that been overdone? you are talking about minuscule changes in terms of the big think tanks in terms of global growth. our the bond markets overpricing an overly dramatic drop?

>> in simple terms, the answer is probably yes. if you cannot get a year off a japanese bond, you have one developed market left. wee of the buying probably see in the way we are seeing allocation from mutual funds is u.s. centric buying. that is pushing and pulling the yield curve lower than perhaps -- an inverted yield curve. we don't have particularly high interest rates. we think there is good evidence it is forcing the yield lower. having said that, the growth of, we can get gdp of 7%, that is la la land. real gdp growth is harder to come by. nominal gdp growth is hard to come by.

that has implications. it isting a recession -- not automatically the case following through. trade stille pain higher for equities? would you not be wanting to buy at least now in the short term even if you might be concerned in a years time? >> what is the buying done by this year? some markets got cheap. you have to hundred 70 billion corporate share buybacks. record number. interest in the u.s. causing this push higher. professional investors are scratching their heads and don't see why this is happening. you have pushed 13, 14% upwards already. no one really understands why we are doing this. the bond market is open. they can issue their bonds and

buy shares back. nothing is changed. the pyramid scheme continues. outflow, not inflow. there is inflow into bonds and outflow out of equities from investors, not from corporate. goldman are running notes, aren't they? socgen.r story is socgen cutting jobs, numeral cutting jobs, commerzbank, deutsche bank potentially cutting jobs. what remedial action has the ecb got to do to protect banks the echo would you buy them at any costs? >> the americans won. that is just the truth of it. in terms of the retail side, the

interest rates near zero, no use to any bank. unpleasant if you are there. none of this helps the banks. it is not a positive environment for european banks. they don't want to let -- they are not lending. the region of europe is not going to be a very strong credit story. it is an aging demographic. i'm sorry if that seems negative. it is hard to get excited about european banks. nejra: a lot of people have talked about the japan if occasion of europe. -- japanification of europe. the good old days are long gone. trade.e is nothing to no one is doing anything. nejra: what are you buying? i ask you every time. >> we have a global savings

plan. everyone has misunderstood what is going on. the fact of the matter is any yield is better than no yield. if you generally -- genuinely think the cycle has peaked, there is reason, i just don't agree. if you want to play the equity trade, i think 30,000 the dow, 10,000 the nasdaq is where the market wants to go. it has got the enthusiasm. goldilocks is back and it wants to go there. i personally would not go near it. manus: knock yourself out. to get hardhats and wear them the next time you come on the show. peter toogood. there you go. i leave you with that thought. we have the international form in st. petersburg. i think i would look good in a hard hat, what do you think? nejra: you would look great.

not sure how good i would look. we will be back tomorrow with more markets. bloomberg daybreak: europe. the european market open up next. ♪

anna: welcome to "bloomberg markets: european open." i am anna edwards alongside matt miller in berlin. matt: the markets say beware of fomo. goldman sachs says it's time to missingsks as fear of out grows in equity markets. cash trade is less than 30 minutes away. anna: helicopter money.