the dollar drops, and u.s. equity futures point to a triple digit decline at opening bell. >>> trump versus comey. a memo by the fired fbi director claims the president urged him to drop the investigation into former national security adviser michael flynn. we take you to washington live straight ahead. >>> plus jumping jack. the parent company of cordoba surging amid reports of a spinoff. ♪ >>> good morning. welcome to "worldwide exchange." i'm sara eisen. >> i'm wilfred frost. good morning to you from me as well. great to hear coldplay as we come in. >> i thought you were going to say great news cycle. means we can't sleep. >> that, too. >> one of your favorites. >> i'm booked to see them in los angeles in october. >> better than elton john. right to the markets this morning. we are starting to see a reaction to what is happening in washington. we're off the worst levels of the session, but check out dow futures, pointing to a lower open by 95 points. about an hour ago that was more than a triple digit declin

if we do see dollar strength against the korean won and taiwan dollar, we would look to fade that andfor stronger levels for the korean won and taiwan dollar over the coming quarters. rishaad: thank you a lot for that. right, coming up, not once but twice, i look at how a hong kong listed company managed to fend off attacks by short-sellers. details on the way. ♪ rishaad: we are counting down to the start of the trading day in china and hong kong. let's look at the premarket auction. confirmingutures there. inare watching fullshare hong kong targeted by another short seller, the stock jumping 17% when it resumed trading. they have managed to fend it off to some extent last week, and another one this week. short-sellers don't like this. >> that's correct. a lot of the short-sellers have been looking at fullshare for a while. itself,ook at the stock since december 2013 when the stock listed in hong kong, the shares have risen a lot, more than 2000%. rishaad: we got that actually pick you can see the run up on this chart going back four years. walk us through it briefly. the shares have

dollar.hat's been in the eye of the storm with the political developments. we did see a bounce back yesterday in the dollar, only late in trade. that's a point i bring up in terms of this tepid rebound we saw yesterday. only when the dollar started rebounding that we didn't see equity markets extend gains. at one point yesterday the dollar was markedly weaker. the euro hit a high of 1.11. sterling, 1.35, and the yen, 111.50. the dollar down 1.3% for the week as a whole, over 4% year to date, and giving up all its post election gains. today we're back to the dollar weakness trend, not against the yen but the euro gaining almost a half percent, the pound back above the 1.30 level. >> yen trading at or around six-month highs, given the safe haven buy which we have seen pick up on this u.s. policy uncertainty. >>> look at gold. a similar story there. political drama not only in washington, brazil helping gold for yesterday. we did see gold buying. today down by $2. trading at 1,250. a quick look

dollar. oil of course surged. in the 200 barely moved last session, but when it comes to futures, they are pointing upwards .3%. the aussie dollar not doing much at the moment, but keep an eye iba.he the -- on the iva. the nikkei barely moved in the last session. the japanese yen was the only g10 currencies to weaken against the dollar overnight. we are seeing some strength now. 113.65. what wean early look at can expect in the regions this morning. betty. how did it look this morning and the u.s. with that first half of the s&p 500? betty: as you mentioned, the new high for the s&p and for the nasdaq. let us take a closer look at how we got to these records. su keenan standing by with more. su: we got a big boost with oil and we will get more for the optimism over the opec in a moment. if we go to the closing numbers, what we saw is not a big jump. there is a lot of green on the screen and fresh records. behind that, a combination of factors. earnings are still a driver. ae cyber attacks now

weaker dollar. it has to be a weaker dollar. overnight, you mentioned dollar-yen.dollar-yen always retreat a bit so the yen goes up a bit in this environment. look at the euro. there was too much emphasis in our view on interest rate differentials, that old, you know, interest rates are going up in the u.s., the dollar must arise. no, there are other factors to currencies, as you know, otherwise the swiss franc would be the lowest currency, many times. we are positive on sterling. that is a separate discussion. that is a rocky road. we are positive on the euro. anna: we will talk about both of those in the program. alan higgins stays with us on the program. we have a host of big an exclusive interviews for you today. we were talking to the international transport association and the bank of finland's board member. anna: coming up, we get a look into the health of the banking in be with the ceo of amro.- anb this is bloomberg. ♪ anna: it is just gone 6:15 in london. juliette saly standing by with a business flash. juliette. you.tte: manus, thank sorry aramco plans t

dollar?the preference should be here actually to play both currencies probably against other ones which have more clear disadvantages against hese two currencies. matt: what do you think about the pound? in the midst of the brexit negotiations next week, the pound has shown some real resilience and why does it hold here at 1.28? david: because the whole negative factors out of the brexit have not materialized. the pound has weakened considerably since june of last year, since the brexit decision was taken. what has not happened, what has not materialized yet is indeed that foreign investments, probably the strongest factor which supports the pound at these levels has not dried up into the u.k., so everybody seems to wait before he withdraws or slows foreign investment flows into the u.k., we think this would be the deciding factor when the pound can weaken. again so far we've seen very resilient flows and that's real money flows into the u.k. and as long as this persists, this can stay with t

a six-month high against the dollar. the dollar is reversing this morning.ould be a better sign for stocks. even though cramer said the weak dollar is such a positive for stocks, certainly multinationals, they've been hoping to see that in earnings, right now the correlation has been strong dollar, strong stocks. whether it's the trump trade, the u.s. growth trade, the fed hiking rates trade, whatever it is, the economy is on firm ground so you buy u.s. assets. >> more to the point, that had been the correlation until about six weeks ago. then the dollar moved south but not equities follow. yesterday was an important day for the bulls to realize, look, maybe this negative move could be correlated as well. those people that hold on to that point that it's good for earnings, earnings have been good, this is a buying opportunity, fair point for most things, but this was a big single day move down. you saw volatility pick up and volumes pick up. i think in the short-term today, those people can wake up with a sense of reassurance because of futures markets, euro

than ruble-dollar.looks in the longer term. it looked like it has found it kind of stability level for the moment. and ruble has been consistently stable over the past six months. even more stable than we would like it to be. lated fromwhat decorre oil. i would love to see their correlation returning back. it makes things much more predictable. guy: you talk about the risk. but this is the straight up dollar-ruble chart, and the ruble has been gaining quite significantly. how much pressure does that put on you to look more aggressively at the cost picture? clearly, you gain an advantage when the ruble is weak thomas are you guys are thinking more and more about how you take costs out of the business, drive efficiency into the business? maxim: i cannot think it should be triggered by the market performance. the parts for efficiency has always been there. we tend to think that these are efficient enough, which is our cost both by levels and our reserves. in the meantime, we do have quite a bit of sensitiv

i just -- the dollar has been sideways for a long time. and it's going to stay that way. >> comments on the dollar, it has been sideways, right? he's saying donald trump does not want a strong dollar. >> we've got details, plus the telecom space is on fire. what could be the next big deal? later, the oracle of omaha, what they are and why he's so bullish. much more "fast money" still ahead. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. dearthere's no other way to say this. it's over. i've found a permanent escape from monotony. together, we are perfectly balanced, our senses awake, our hearts racing as one. i know this is sudden, but they say: if you love something... set it free. see you ar

this is our public dollars going to the schools. would you send your kids to a school where they have a 93% of the students aren't english proficient? >> would i? thank you for the question. and i'm really glad to hear you're from wisconsin and you've had some of the experiences in wisconsin. i was just recalling the history of the program -- >> since i only have five minutes -- >> i know, but i want to remind you that polly williams a democrat city council woman was the one who first introduced -- >> who now says it's not lived up -- >> it's now longer living -- >> before she passed away -- >> students -- >> you're dplar wifamiliar with >> 28,000 students -- >> the question is would you send your -- >> 28,000 students in the city of milwaukee -- >> i guess you're not going to answer that question either. let me can, if i can take my time back. let me ask a different question you might be willing to answer. so the last expansion in wisconsin of this program 75% of the kids, the parents who got this money, their kids already attended

versus the dollar yeert -- year-to-date has ripped against the dollar.an that performance keep up 2017? >> it's tough. you wonder if this kind of price thin? you've go. a commodity cycle that is turning up against them. and that global growth story is going to be key. because europe's been fine. the u.s. has been fine. let's see if china is headed to the real boom in money supply growth. that slows, we've got a bit more problems in the economy but right now, you can clip coupons. you can effectively buy brazil. you're not going to get much from the currency side but you can get something from the rate differential style. jonathan: if you ask many investors why it was so long this year, it wasn't because that thought that treasury yields were stable. they had a fundamental view on global growth and china was at the epicenter of that. if you have reservations about china through 2017 now, how do you stay long emerging markets? >> for us, it's not necessarily entirely being built op a commodity story. food prices globally have been extremely weak which is g

the dollar and u.s. the ecb the taper president may face pressure from lawmakers in the hague when he answers questions on policy. how much detail will mario draghi give about his plans? american ipo. it intends to take its u.s. operations public and by back shares. back shares. good morning and welcome to bloomberg markets, the european up and. imf miller in our berlin bureau, i amside manus cranny -- matt miller at our berlin bureau, alongside manus cranny. manus: are they really reacting to donald trump? i ask myself. we are not lurching any lower in the market. we are much more focused on what mario draghi has to say here in the united kingdom. 2391.5, unclenched. there is not a movement in the market. they are digesting donald trump firing the head of the fbi. very much in their stride. yields rising ever so slightly in the u.s. and the dollar index down by .2%. i think that has to do more with the dallas fed president, who is saying he is questioning growth and questioning the proclivity for inflat

medium term, the dollar is close to peak. strong levels to g 10 currencies and emerging markets. >> thomas, we will continue this discussion after this short break. we're also going to talk about the euro and what we should be doing with the common currency in the run up to the second round of the french elections this sunday. thomas harr from ficc research at danske bank sticking around. get your e-mails in. your questions are always welcome. streetsignseurope@cnbc.com and you can find us on twitter, streetsignseurope@cnbc and tweet me directly @carolincnbc. i love reading your tweets as always. >>> still coming up on the show, as mateo renzi wins back the leadership of the democratic party, we'll have the latest on his return to the front line of italian politics. >>> all right. let's get to some corporate news. marks and spencer and owecado a considering a tieup. marks and spencer could be launching a grocer delivery service. look at ocado. it is soaring on the back of this. up by 8.73%. >>> bp's key earnings measure, repl

possible the dollar bot onlied last week. if it goes from 97 where it is now to 105, which would be a pretty substantial mover for a country even if it sounded like not very much, and would cause a slew of international cuts for the companies located in the u.s. how about the shorter term daily chart of the dollar index. broden spotted another cycle here that reinforced her view it is probably headed hire. look at data for the past year. it takes the dollar 37 to 40 trading days from one low to the next. 37 days, employee. 40 days, low. 37 days, low. if we assume the bottom index was finished going down, as long as the key sport levels we mentioned earlier are not getting violated she is willing to be patient. given you the bottom line. on this very contemporary view, as much as i like the focus on the fundamentals of big issue companies, big issues like currency matter to the stock market. if you thought the horrible freaking super strong of golf has gone away, she says, not so fad and will resume in a minute. programs it is

the dollar is the mover last night.his is where we saw reaction to the report from the "washington post" and the "new york times" that the president shared some highly sensitive intelligence data with the russians. you saw the dollar weaken sharply. the biggest move was against the euro. it soared to 110.41. the dollar wiped out all of its post election gains. the dollar shot up on this idea of all of his pro growth policies and confidence, it wiped all of that out this morning. the dollar weaker against the yen and the pound. but the big move is the euro. >> indeed. big move, 1.10. asian equities, let's look at them. we have seen some gains in china mainly, propping up most of the region. hong kong lower. china up 0.75%. we did have further confirmation the capital outflows is less of an issue once again. we saw the smallest sale of the fx reserves since june 2015. they sold around $6 billion worth in april. that was down from 60 billion or 50 billion the month before improving signs out of china. let's look at europea

can we have our federal tax dollars along with local tax dollars to make this happen? i spent three days last week with the international olympic members akin to los angeles. i do want to bring the olympics back to america. they were blown away with what we were doing with them for structure. $14 billion in airport $120 billion in public transportation and roads and $2.6 billion in our ports but these are american jobs. there is no rail car manufacturing in the united states. we have opportunities not just to talk about the needs of infrastructure but the need for middle-class jobs in america. what leads to success policywise and my last member i've laid out three things. we are calling this the high three. this is the infrastructure incentive initiative. one is leverage, to think about the life of projects in three is innovation and technology. leverage i think is clear. scan from a discussion with members of the house and senate and a few of us mayors were talking the same language. you need to leverage localities reward those who step up but put out there if you do

euro-dollar. level being pierced and we're holding above that at 1.1021. you can see it is a big move there for the euro-dollar. newly elected french president emmanuel macron met with end of the merkel in office. the two vowed to work together to strengthen the european union and the region's economy. >> i am today in front of you, happy to be able to represent france, but with a daunting task to accomplish. am -- it 1 -- and i reminded the chancellor, did implement reforms prance needs. the french agenda will be an agenda of reform the next few months. economic, social and educational reforms, like i said during the and campaign. not because the european union asked for it, but because france needs it. matt: macron also named's prime minister, a center-right mayor and relative unknown, but formerly a republican. for more, caroline joins us from paris. macron, marital and presented a united front, but what are the points of contention that we know between these two? >> there are many points of co

dollar. we expect the u.s. dollar to continue to weaken from here. throughout the end of the year. >> which markets are you looking at? is it the bond markets, the equity markets, to get a gauge of true market sentiment? particularly as relates to what is going on in washington. difficult to get the same signal from different markets. the stock market rallied in the u.s. massively in the wake of the trump election on the expectation of this goal easing, tax reform. and now it continues to rally despite those tax reform prospects diminishing or the u.s. dollar, for those same reasons is falling. what we are seeing is different signals from different markets. >> that is what i mean though. we have seen this before when it comes to views on the. in their rate hikes. is whom trying to dig at has it right in which market? if you are going to look at markets as a predictive mechanism or tool, who has it right? >> our expectation is in the u.s., most likely it will not happen this year. it will be a q1 story. if that is right, u.s. stocks look somewhat expe

seeing the dollar decline against the major currencies. euro against the dollar.inst the euro. the close is four minutes away. this is bloomberg. ♪ ♪ live from london and new york, this is the european close. i am mark barton with vonnie quinn. let's take you through the action. we saw a day of gains. basic resources leading the advance. wednesday seems to have been forgotten. that is something we will talk about in just a second. down for the week, first weekly drop in four. biggest drop since november. this is another chart. this is the euro stoxx 50 technical. the euro stoxx 50 is approaching a golden cross on its weekly basis. that is when its weekly average moves above its 200 day moving average. extraordinary, you have the 50 day there, the 200 day, and they are converging with the 100 week line, which is the closest they have gone since 1993. the power of the bloomberg. what a fantastic chart. let's look at the euro, heading for its best week against the dollar since that you're a last year. -- february last year. calculating 1.08 in the second quarter. in

dollar.oining me now is mark mccormack. what do you make of the dollar's slide? mark: i think it is a mix of a lot of things. we have d.c., a trump premium being built into the dollar. u.s. dollar is trading below where it should be from interest-rate differentials of the u.s. versus the rest of the world on a two signal move. the u.s. is creating this high level of discount around the dollar, but it is coming at the same time that they are getting better data out of europeans and outside of the rest of the world. what we are seeing is a lot of a headline risk people were focused on in the beginning of the year in europe is subsiding. europe seems to be moving in a different state. the economy has grown twice the level of potential gdp. seeing the same thing out of japan. what we are seeing is the negative tone for the u.s. dollar is building up. alix: fairpoint. we were talking in break what if what happened in d.c. happened six weeks ago or eight weeks ago? when we see the same kind of stre

the dollar is big and the yen is weakening.f you markets that are open are starting to rise a little bit. also prettyere excited about australia this morning, especially when it comes to the pmi prints. we had inflation data out this morning. why were you excited? australianxtra -- pmi data was the second highest print in almost five years. it was a great number. there was not enough people around paying attention to the markets to care. i think they will say this is a strong number. you saw melbourne inflation data and that was very high. it is hard to see the rba being devilish over the next couple of much. that said, still base expectations for the rba, they will not be hiking oil cut. yousef: i am looking at some of the initial details on this latest fiscal package. donald trump and being able to point at a $15 billion boost for the pentagon. he got $1.5 billion in border security, that he cannot use that for actually building that wall. in terms of moves of asset classes, we have not seen a lot of euphoria off the back of

the dollar fell. manus: crude is on its longest rising streak in more than one month after energy ministers from saudi arabia and russia proposed either cuts into next year. anna: macron's first 48 hours. in a meeting with angela merkel, he resists economic reform in france. ♪ anna: welcome to bloomberg daybreak. i'm anna edwards. manus: i'm manus cranny. another day and another momentous moment from the white house. we are talking about the washington post article which has been denied by the white house that the president classified information to the russian foreign minister and ambassador. how are markets taking this second big political punch? the dollar has dropped. it started pretty much in the middle of last week. poor sales, cpi data so the dollar fell in the fifth day in a row, the longest losing streak since march. the dollar is back at level when president trump came to our. this is the second political punch the dollar is lower. there is no aggressive market reaction to the story which ha

dollar long. these are the long positions in the u.s. dollar. now seeing them at the lowest since last august. the latest investor survey found 23% of the folks they surveyed say the u.s. dollar is overvalued. that figure was 21% in april. mark: records in london and frankfurt today. the stoxx 600 when just below that 20 month high. -- went just below that 20 month high. ere we getting pricey on th european stocks? members of the stoxx 600 trading at their highest valuations in the year relative to those on sci country index. equity funds seeing record inflows into europe today amid relief over the outcome of the french presidential election. equitiesan chase says will continue to pick up materially over the medium-term. this could drive a significant re-rating of the region. two mobile number phone carriers vodafone. shares of hypersensitive. -- carrier is vodafone. shares are up today. whilee a forecast releasing fourth-quarter results which were in line with analyst estimates. upwardon continuing movement -- the blue line from 2013. weak ster

and a huge win for negotiating standpoint. >> think about that, with one dollar for dollar to a dollar $.20 plus part of that 4 and a half $5 billion was stuff that we like. so minors help is included so even some of the stuff we gave away supposedly to get the defense spending is stuff that we like in the first place. what did the democrats get? >> the new obamacare bailout money in the package, that favors a couple different times i've seen in the news, go find it for me. it is not there. the democrats are telling you about that. it's false. >> there's absolutely no language in this bill that requires us to make any bailout payments for csr payments in any way shape or form. as a result of this deal. why are the democrats saying that, because it's told what they told their base they would deliver and failed to do that. that is not in the bill. >> the new money for puerto rico, the democrats trying out got $295 million for puerto rico, not a penny of it is new money. all that money was already spent as far as obamacare under a previous agreement, that money sitting there on spent and

the dollar.is what we will continue to see. rishad: if you're hunting for yield and you're getting less of 42, i the u.s., chart 86 will bring that up for you. yields have been falling. this has been compounded by both of these markets being affected by what is going on politically speaking in the u.s., right? >> a bit. the data set in the united states have been surprisingly muted. the u.s. is growing, just not robustly. crucially, inflation is still very low. unless we can core inflation inbers have been the lowest decades. because been the extent the fed has been more aggressive. beyond that, markets are uncertain. that holds the dollar back. in a world in which growth is pretty good, and the dollar is fueling-week, that is tremendous flows into equities and emerging markets. had, china, and japan has over $26 billion of net flow in equities. that is a lot of what is arriving currency. haidi: i want to take a step back and look at where we have gone in six months. we have been talking about th

the dollar is clearly a factor.have seen over this administration has been the reflation is the agenda that has led to expectation of a stronger dollar. a lot of the actions have resulted in a weaker dollar. does that mean the trump premium is only in the currency market as of this week? or is it too extreme to make that read it? a very: that's interesting question. we can look at devon futures to get a read. right after the election, we saw the outperformance of these futures relative to s&p. that was the expectation of tax reform and infrastructure spending. of the market.ut that does not exist in the current form. the market has gotten to this part on some of these expectations. treasuries are the last -- and. -- bastion. david: we went from the stock market being up to one that's up despite the fact that he is president? is that the shift we've seen? stewart: it's analogous to what happened last year. the stock market rally don some of the more defensive sectors. from there, the cyclicals took off. now we have t

are keeping an eye for and there's a 5-thousand dollars reward for information leading to his arrest. turning to sports-- not a plesant weekend for washington fans. the wizards traveled to boston for their second round matchup with the celtics. things started out well for the wiz. they scored 16 unanswered points to start the game. but-- they had given up that lead by the fourth quarter, as the top seeded celtics took over. boston's hot shooting leads them to a win. the wizards drop game 1, 123 to 111. washington say they need more defense, moving forward. game two is tuesday night in boston. night in boston. from bad to worse. the capitals are on the road as well. they are in pittsburg for game three against the penguins. the caps are still searching for their first win of the on saturday. the caps need to win at least one game in pittsburg to bring the series back to the phone booth. well, not so much. coming up-- a luxury concert weekend goes down in flames. why festival-goers say it felt like they were trapped in the hunger games? fios is not cable. we're wired different