allianz. and thenlookinat first-quter revenue, 40.3 billion euros. that is in line but the key line to look at is key operating profit. beating the highest estimate. we are going to be speaking to the finance chief. do not miss that interview after 7:00 london time. a lot to talk about. about inflows and outflows. we were talking in february about outflows from pimco. we also want to talk about some m&a. on the pharmaceutical side of the business in germany. a for them on earnings per share. them on earnings per share. merck with a small beat. guidance for the year the -- saying it is lighter than originally estimated. that was expected to weigh on the numbers. we have the cfo from germany's merck. he will join us on programming just after 7:30 a.m. for a conversation about the numbers. you have a look at some of the assets on your side of the fence. host 1: these are not the ones i wanted to look at but we well. i wanted to look at dollar-yen. you are seeing a little bit of a retreat in the y

marcus morris-eyton, portfolio manager, allianz global investors.h us on a day that wraps up what could be the third week in a row for stocks to fall globally, but a good day in terms of the one day trade. here you look at a world map ended it looks like everything is groovy. big gains in germany, big gains in france and italy as well. , and inin the u.k. spain gains instead of red arrows. the likes of what we saw in the u.s. yesterday. inare likely to see gains the u.s. as well as u.s. futures continue to rise. veteranthe hedge fund says he will return money to shareholders and focus instead ,n running his nfl franchise that is the national football league for those of you in the u.k. we will get the latest. this is bloomberg. ♪ matt: 30 minutes into the trading day, let's get your top headlines for you. timetable, the prime minister is expected to outline plans to step down today. brexit plans are in limbo. security threat or leverage play? president trump claims that quality -- that huawei is dangerous but could be part of the trade deal anyway.

joerg de vries-hippen from allianz global investors stays with us.rders a real round by narrow election lost president erdogan's party. we look at the wider fallout and e.m. risks. this is bloomberg. ♪ anna: welcome back to the european open. 24 minutes into the trading day and this is the picture. , thetse 100 plays catch-up ftse member of .4% and the dax and cac fairly frat -- flat. they stumbles election is getting a rerun. a new vote must be held on june 23. the did -- decision sent the lira plunging and wiped out his stumbles gains this year. the original ballot five weeks ago was the worst electoral setback for everyone -- president erdogan. joerg de vries-hippen is still europe is your focus rather than emerging markets, but are there companies in europe that you either hold or don't hold because you have a view on turkey? i would say we have a clear view on turkey and i would say at the moment, it is the economic situation we are looking for and economic situation is not the best one. you have to be cautious about those things, and i would sa

as is the second purchase allianz will make.is find the remaining 51% of algae janet -- alvey general insurance. it owns 9% of the u.k. market in general insurance and for l&g, this helps their solvency ratio. matt: thank you all for joining us. you can get the latest stock stories from the equity team by typing first go on your bloomberg terminal. or use the bloomberg mobile app. nds,nt to look at bu german ten-year debt, way less than zero at an all-time low. we're looking at german bunds yielding a -20 basis points right now. here,n see on the screen i've got the max open, so this goes back to the 1980's. you've never seen bund yields this negative. we got was in 2016 after the brexit vote. just like with treasuries, the lowest treasuries ever yielded was after the brexit vote and they are down to less than 2.70%. next, the market open. futures pointing to a risk off day. this is bloomberg. ♪ matt: welcome back to bloomberg markets, a minute away from cash trading. let's take a look at what the markets are showing us. first o

neil dwane from allianz global investors is still with us.u think the oil story is the most important for global markets here. what do you think of opec plus and its ability to pull together? thedwane: i think in short-term, both russia and saudi, they like the oil price ranges, they both have big budget deficits and the more they can sell their oil for, the less they have to dig into their sovereign reserves. we know that both economies are restructuring or trying to restructure rapidly. there is an i think it is still the biggest issue for many of us is because it is the only one we really know how to hedge. we. know what an oil shock does consumption in the u.s., in china, in india, and if you worry about that in your portfolio, you can head to that. the fact that oil stocks are doing well means you are getting a big dividend yield. so i think it is rational to sit there and feel like we have supply and the pressure both in u.s. shale, venezuela, libya and iran and iraq, therefore, one has to fear that oil prices might run lower. anna: we

still with us, lucy macdonald, managing director, cio global equities, allianz global investors.ng to our previous guest, laurence mutkin, global head of g10 strategy, bnp paribas about the moves in the last couple of days. let's talk about equity markets, your space. you were saying there might be areas sold down and europe were companies are improving quality, and that is where you want to pick opportunities. where might you see those opportunities, geographically or in sectors? , if: clearly in the u.k. -- can find companies which because of the location, because of the sector, and possibly because of perceived impact from trade wars, that is quite interesting. clearly, you have to make sure what you are investing in is mispriced and does not have the potential impact of those things. but there are companies who have been sold down because of perceived concerns, partly because their business is more global and diversified than the market perceives, or they are in areas within china that are not in the forefront of the trade tensions. i think that is an area i would be interest

still with us, neil duane at allianz global investors.re mustier saying of their top four investors, three of them are u.s. value investors. i can tell you who they are. you still don't like european banks. why not? >> euro zone banks are trading at record lows. we are back below 2000 relative levels. you want to be a contrarian and get in when they are cheap. with the central bank, the ecb keeping negative rates, this industry needs a subsidy. therefore it tells me it has not worked out its mpl problems --pite the opportunism of ustier,imism of mr. m european banks have yet to write off years of profitability. there are large private players that have -- that are owned by the government's, which is inhibiting the industry for profit. i agree with him about the need for consolidation, but we also have this new european directive which is going to allow you and me as european citizens to choose who we wish to bank with for the first time in a much more easy -- there is disruption coming. to sit on the sidelines and watch as well as the sov

mckinneyh us is burns of allianz global investors. what do you make of it?8, the s&p was at about 2850. nearly a year and a half later, the s&p is at 2850 despite the fact that earnings have grown in the interim. you have seen multiple contractions. that is one great example of the massive costs of a trade war. aree costs that investors starting to digest, i think that you are starting to hear a lot of strategists suggest there is an increasing risk that this does become the baseline. ,ariffs are very easy to impose whereas a lot of folks in the market think that maybe this is ,ust trump's way of bargaining but they are very difficult to roll back. you have vested interests that will push to keep them in place. david: what does the baseline look like? where is it drawn? we had bloomberg economics doing studies that if this continues, we are going to have 4/10 of a point of gdp taken out of the united states, and something worse in china. what does that due to to the market if that is true? burns: that certainly has an impact. that is the impact to gdp. if us

.- allianz out with earnings that beat estimates, rising right now 0.2% -- 0.6%.ent sized company, 83 billion euro market cap. vodafone on the downside. down at the moment 1.5%. notr popping up as a loss, as bad as what we saw on tradegate, but down 5% still after a judge awarded two plaintiffs $2 billion in roundup suit, saying it caused the cancer they had. after the for bayer, $63 billion purchase of monsanto. anna: let's talk about the big picture and where we are. european equity markets opening higher, u.s. futures advancing after president trump said he had a feeling talks with china will be "very successful." , great to get your insight this morning. do you feel comforted by trump saying he thinks he will get success, that he will know in 3-4 weeks meeting xi at the g20, or do you feel despondent by this very fast escalation? >> what really concerns me is the rhetoric inside china, which changed dramatically the last way four hours. there's a reference to the theing just passed, heineman bank, 200 years before christ when there was a power struggle in chin

there was quite the celebration in the allianz arena after the match as bayern celebrated winning theirhe party hasn't stopped just yet for british number one, johanna konta, as her good form on clay continued at the italian 0pen. konta came from a set behind for a great semi—final win over world number four kiki bertens and will face, fourth seed karolina pliskova in tomorrow's final. patrick gearey reports. for most of the past two years younger heine has been searching for something and there, somewhere. when you find it it's obvious that kind of tennis and made her wimbledon semifinalist in 2017, that could send the number one —— numberfour to the floor. kiki beeped that count, one moment she was setting for the set she wanted. but she grew u nsteady for the set she wanted. but she grew unsteady and a second and contest seized on the mistake. 0nce unsteady and a second and contest seized on the mistake. once at all, momentum with jan heine. previously she found things nationally, but in the third she melded to it. feather touch blended with sledgehammer power, by now than i try to e

there was quite the celebration in the allianz arena after the match as bayern celebrated winning theirk, the party hasn't stopped just yet for british number one, johanna konta, as her good form on clay continued at the italian open. konta came from a set behind for a great semifinal win over world number four kiki bertens and will face, fourth seed karolina pliskova in tomorrow's final. patrick gearey reports. for most of the past two years she's been managing searching for something, when you find it it's the kind of tennis that made her a semifinalist in 2017, that could send the weld number four to the floor. kiki deep account, one moment she was having the site next they wanted. the group unsteady and she sees on the mistake. once at all, momentum with content. papers she found things ending nicely but size and the third she moulded to it, that feather touch blended with sledgehammer power, by now that my chest get burton's script, the line judge to pt. she did not though, she's in the first 12 final before the french open and found a form in the french open and found a form in th

the german insurer allianz will become a market leader here in britain after an 800 million pound dealneral insurance but today it's announced it will buy the rest along with a deal to buy legal & general. hello there. we are going to start with houseprices and the mood in the market is not great. nationwide building society reports that prices dropped 0.2% between april and may, despite the fact that conditions in the labour market are good and borrowing costs are low. and year on year growth of 0.6% is slowing down too. nationwide says it's because of the wider uncertainty of where the uk economy is going. earlier we asked the senior analysis at nationwide how much this has to do with brexit. for some buyers, it is certainly a concern. it is just a number of things people will take into account, clearly buying a house is a major decision. what we have seen over the last few months, really, is people are perhaps a little bit more reluctant to enter the market at the moment. that said, if you look over the last couple of years, activity has been broadly stable. as you mentioned, we hav

chrisjones was at the allianz arena.ast four, not since 2011 has there been at this stage, but it was all that one tea m this stage, but it was all that one team today, they were the men in black. saracens and natasha, they england half, gloucester scored early, without all, will someone call something special here from the gloucester point of view, but when saracens took control, they took total control. you only get, they do have a stranglehold on the come on teams that they managed your time your time teams that they managed your time yourtime and time teams that they managed your time your time and time again. especially when it comes to knockout rugby. gloucester and the first three minutes, everyone was on the edge of their seats, thinking they would do something special, and that it was just the saracens from thereon. saracens completely ruthless. six tries, three of them scored by replacement, the tiles medic saracens captain limped off with a hamstring injury, doesn't look like he will be fit for the final next

chrisjones was at the allianz arena.appearance in the last four for them and not since 2011 have they been at this stage. but, it was all about wanting today. they were the men in black, the saracens, and natosha, gloucester scored early, we thought is someone going to call someone special you from the gloucester point of view, but when the saracens took control, they took total control. the omega, they took total control. the omega, they do, and theyjust have a strangled hold on pay on teams that they've managed to do time and time again especially when it comes to knockout rugby. a fair bit of gloucester in the first three minute some everyone was on the edge of the seats thinking that they were good to do some thing special, and that it was just the saracens from then on. saracens completely glued, six tribes, three of them scored by re placement, nick tompkins, the talismanic saracens captain limped off with a hamstring injury, does not look like he will be fit for the final next saturday. thompkins came on and mr tr

separate recent reports also mentioned several potential suitors, including allianz and ubs.ig week for german banks with both commerzbank and deutsche bank holding agms in the wake of their collapsed merger talks annetta, who is joining us in frankfurt this morning has been covering these stories for quite some time. now, annetta, you have spoken with wufrt executive board members of the bundas bank i'm cure wrus what he had to y say. >> actually, he was saying that it kind of is positive, but the banks didn't merge just because it is a good idea, like in terms of having a bigger bank. he was saying that in ermz it of consolidation, things have really made sense, but why don't we, first of all, take a listen and then speak a little bit about the wider picture for the german banks take a listen of what he had to say about the consolidation efforts in the german banking industry >> the large scale consolidation is more difficult. finally, it's the institute that's just -- there is the results case, because it's reasonable, but it makes sense, and in previous discussions, there

allianz is one of them. stocks withetal difficult numbers, talking about steel demand.t punishing that stock. the auto sector is lower but there's an interesting story around psa. we saw a story earlier on suggesting we could be getting close to a deal between psa and jaguar land rover. trading down 2.48%. a tough day for european markets. but the auction process about the close-out negatively. andor: i'm noticing a theme it is called red on the screen. starting in your market and translating to our markets. s&p off 1.4%. our worst weekly losses since december, which means yields are coming in by four basis points to 2.44. we had earlier seen an inversion on the three-month 10-year yield curve. last time i checked positive one basis point. usually you see dollar higher, oil lower. you are seeing selling in both the dollar and crude. a big day. we will have more on that, next. guy: we well. let's get some insight into these markets. christina joining us from our markets live team. is a beginning to feel like december? christina: it is not feeling like december just yet.

there are a lot of ex-dividends we need to pricing to markets, lots of big names like allianz. you want to figure out where we are going with this story? keep an eye on dollar see ny -- dollar-cny. trading at 6.8. seven?going back to if we get a break down talks come could that be possible? i bring the south african market for a couple of reasons. one come of the trade is being represented here. but the second thing, we have counting underway after yesterday's election. suggestedng may anc may have just won 55% of the vote. taylor: emerging markets are really all starting to unravel because of this trade. that is certainly hitting the u.s. as well. tensions increasing between the u.s. and china, with president donald trump saying china "roque the trade deal -- "broke the trade deal." pres. trump: they broke the deal! they can't do that, so they'll be paying. taylor: sarah mcgregor leads our coverage of u.s. economic policy, and she joins us from washington. markets clearly caught a little bit off guard, thinking that a trade deal is not happening. are we any closer today than w

bernsteinth alliance -- with allianz bernstein.ld curve is now inverted, and the muni curve now also very flat. from theany panic treasury side that comes over into the muni side? guest: first, thank you for having me. of going back to 1990, the muni yield curve average has been about 250 basis points, and now it is about 100. that is about one and a half times standard deviation rich. with that yield curve flattening , investors aren't really confident to go out very long, so for us we are really focusing on the three to 10 year part of that curve. all of that being said, these are in the midst of a huge trade. our 20thxperienced straight week of massive inflows, and there's very little issuance from a new issue perspective to set that up. this is what you get. this is a supply and demand issue. taylor: talk to me about another trade you are looking at that really relates to infrastructure. we probably won't get a big plan from the federal government between trump and pelosi, but you are still finding ways to invest in infrastruct

elian'sthat thing for question -- allianz? are the key for the biocide -- have been investing heavily in the nonpublic market side of the capital markets. to some degree, focusing too parton alpha generation as of the problem with the active management industry. asset management errors -- managers will want to have -- go further into the value chains in terms of a device and being part of the value chain of suppliers. that is the key, and being a product developer at the same time as an advisor, at the same time as someone who has done the work for the end client. francine: is that changing? andreas: that is changing for our firm and i see that for those who want to continue to be committed in the active space, thinking about the active value proposition in a broader space. francine: how much more consolidation will we get over the next 12 months? is it longer-term or will it happen quickly? andreas: it will happen quickly and will go on a long time. there has not been that much consolidation, but the proportion of assets of e

becky is off today our guest host, mohamed el erian, chief economic adviser at allianz.he dow add the 60 to yesterday that we did and we're down 250, which is still 200 less than the lows yesterday. so, since that sunday tweet or saturday night tweet, which looked like we were really going to be down 500 points or more, we're still down 250, so we'll see what happens i don't know how it plays out thursday and friday of this week, but this is where we are this morning treasury yields, as you might expect, headed lower on some of this that 2.46% dollar, a little weaker on some of this trade sension that we're seeing. >>> let's get you through some of the stories investors will be talking about today. perhaps the biggest one in m&a land, anadarko officially saying the bid from occidental petroleum is officially superior to the deal that had been in place to be bought by chevron. it's finally informed chevron that it is terminating the $33 billion deal, though it's given chevron four days to respond with another bid anadarko would owe chevron a $1 billion breakup fee. it's w

on the losing side of the ledger, allianz has gone ex dividend, and bp has gone ex dividend.ree there are ex and that is why you see the moves down. hsbc down today. bayer.s well as the anna: it is definitely a risk off day. let's discuss that with our guest. asian stocks hit a two month low after president trump says the chinese leaders broke the deal. president trump: you see the tariffs we are doing? they broke the deal. they broke the deal. now fromning us edinburgh is luke hickmore, investment director, aberdeen asset management, very good to have you with us. dealing with the short-term, we heard from goldman sachs and j.p. morgan, they do not expect an 11th hour trade deal by friday. what do you have priced in? unlikely wes seem will get anything before friday. part ofoming into this the trade war in a better position than last year. earnings are forecast lower, and beating q1. people got more nervous. the fed has pivoted. we could see more weakness and a volatility from here, but largely we are seeing most of , i could be complete be proved wrong, but it feels as if t

--a: one thing i was noting an analyst from allianz was pleading a moment ago saying the federal reserve to cut rates or signal they are going to to avoid negative market feedback. disappointment in the market is all were --is already being priced in. do you agree? what tends to happen is the fed resists those types of market signals until they cannot resist anymore and then they move quickly. that is what we saw, for example, last december. they resisted. and then they went through the rate hike anyway and then markets fell apart. and then they changed their tune. i would not be surprised to see a similar dynamic again where the fed sets the stage for the june meeting saying we are not going to change policy. and then markets become very disappointed. may follow that path. but i would agree that they are going to most likely cut interest rates for the back half of the year. romaine: when we look at inflation and the outlook for inflation in the context of this trade war, do you buy into this idea that the trade war to a certain extent could be deflationary? that consumers will switch to

have been relegated from rugby union's premiership today as the top two, saracens and exeter, met at allianzn the premiership would normally have real significance. but they have both secured home semi—finals. so key names were arrested but for those who did get a rare start, the intensity wasn't lacking. the chiefs applying much of the first half pressure but the windy conditions helped them into the hands of alex lillington. he had the first train the first 20 minutes. then the floodgates open. his second having not scored since november. it was the power of wallaby will skeleton that allowed nick tompkins to make it 21-0. and that allowed nick tompkins to make it 21—0. and two great scores from don morris were enough to secure a bonus point victory for them. they 110w bonus point victory for them. they now turned their attention to next weekend's european cup final. they do indeed, what a match that will be. confirmation of that 38—7 win for saracens. newcastle needed to beat gloucester to stand a chance of avoiding relegation but they lost 28—19. northampton regain possession of the fina

allianzment to sell to for 250 million pounds.otential payments over three european bank. it is expected to be complete in the second half of the year. proceeds will be reinvested in the core business. has reported a loss of $1 billion, the largest of it public company and more than lyft lost in 2018. the company's cfo says they will cut back on promotions and rain in expenses. amazon is interested in buying boost from t-mobile and sprint according to reuters. the companies are trying to get approval from the fcc over the toy $5 billion merger. the regulator chairman says he will move for approval if boost pledges cannot raise prices while being constructed -- 5g is constructed. nejra: olivia hows in london, thank you. fed richardn of the clarida says the central bank is prepared to cut rates if it sees mounting risks to u.s. growth. he stressed the economy is in a "very good place" with low unemployment and muted inflation. >> we are attuned to potential risks to the outlook and if we saw downside risk to the outlook, that would

opposing renewed efforts by allianz partner renault to merge under a holding company structure.n, it won't help turn the japanese carmaker around. talks have been going on since renault made a proposal in april. tomorrow, nissan is set to report its lowest annual operating profit in a decade. lloyd's of london commissioning an independent culture crackdown following a bloomberg report on sexual misconduct. the report finding an atmosphere of near persistent harassment in the world's oldest insurance market. they have already threatened to give potential lost time -- potential lifetime bans for, rate behavior. upcoin surging above $7,000, 11% from friday's close. other cryptocurrencies also rallying. since mid-december, bitcoin has more than doubled. still, it is a long way off its 27 peak of more than 19,000 -- it's 20 peak of more than 19 -- more thanpeak of $19,000. -- is it asearch search for yield in bitcoin? i'm not sure on that one. david: i just don't know. alix: we turn now to wall street beat. m&at up, unicredit warns of hurdles, saying european bank mergers are facing

joining us now mona mahajan from allianz global investors of course stephanie link still with us for the whole hour mona, relative day of calm compared to what we've seen recently does that give you a chance toed more risk to your portfolio or add more protection? >> i think it's the latter at this point what we've seen coming into the year there was a lot of risk on sentiment but that was driven largely because we were seeing green shoots out of china, earnings in q1 were better than expected but what really surprised the market clearly was this china trade war and i think this has now become an overhang, a cloud or a dark cloud on the market for the foreseeable future and it's interesting because we were used to seeing the u.s. dictate terms of this trade war. president trump's tweets, et cetera but what we're really seeing now is the chinese and the chinese media come out pretty strongly saying they're willing to be patient, they're willing to take a long march president xi indicating that they may have to start over. and so those rumors that perhaps they will wait out till the 20

joerg de vries-hippen of allianz global enjoying -- joining us.ation. billionaire founder strikes a defiant tone in the face of the u.s. sanctions. more from our exclusive interview later this hour. this is "bloomberg." ♪ live from berlin, i am matt miller. this is "bloomberg markets." on's check out what is going in the index is open and the markets trading right now. it is a holiday in the u k and the u.s., but dani burger has a latest on the continent. the break, you're talking about fiat chrysler. i wanted to give you an update on where those shares are trading because this is what is driving the market higher. renault with a 14% gain, its biggest gain since 2008. for fiat, 2014. theyolding parent ,exor, are gaining a lot. currencies having some action as well. the yen is folly against the dollar so we're seeing some risk on. in crude, shares fall. iron or is the real standout here. prices surged past $100. mainland china shipping ports, supplies drop. that is really propelling some of the gains. i want to show you what is happening in greece.

the german insurer allianz will become a market leader here in britain after an 800 million pound deal. you have to have your application and before august 29. billions of pounds has been repaid to consumers. the question is, is there more to come and how much more? joining us now is becky o‘connor, personal finance specialist, royal thank you very much forjoining us. is it possible to estimate how many people haven‘t claimed and how much more money they could be for them? it is possible to estimate but we don't know exactly how many people haven't claimed and how much the pay—outs are that they could be entitled to. we think there could be around 10 billion, left to pay out. i think almost 35 billion has been paid out to date, ga million policies were sold, roughly ga million. we think about a quarter of people have claimed, there is still quite a lot of room for claims to get to. so three quarters of people who were mis—sell still have to claim? how can you know, if you are unsuspecting at this stage, if you are among them? those tv ads have been running for years. that's the tricky

allianz of germany is about to become one of the country's biggest insurance businesses.ance, in total costing about £800m. it's planning to merge these two businesses together. the housing market is still looking fairly downbeat. the nationwide's monthly survey showed house prices in may fell 0.2% from april. it's our old friend uncertainty that is dragging the market to a standstill. if you compare the prices to a year ago they are up just above 0.5% which is a smaller gain than a month ago. slightly more positive news from the bank of england which said there was a slight pickup in mortgage lending in april. we can talk about this more with andrew harvey. a senior economic analyst, at nationwide. uncertainty seems to be slowing everything down. do people look at houses and say, i am not going to buy a house because i am worried about brexit? for some buyers it is about brexit? for some buyers it is a concern. it is a number of things people will take into account. it is a major decision to buy a house. people are perhaps more reluctant to enter the market at the moment