the unit of allianz will pay 5.8 billion dollars after misrepresenting the risk posed by a group of hedge funds who collapsed amid pandemic market turmoil. plus jamie dimon rebuked. a nonbinding vote rejects the jp morgan ceo's pump and station plan. -- compensation plan. francine: we focus on growth yet again and the focus on inflation and if i could wolf whistle, i would, but u.k. inflation at the highest in 40 years. tom: i would like to hear a wolf whistle. none of that within the context of the highest levels of 40 years. this is dating me, but also more importantly, points to the conundrum that the boe has with that cost-of-living crisis and what it means for real wages when you factor in what is happening with topline inflation. we had comments from jay powell saying that they will continue raising rates until he is convinced of sin stained -- sustained signs that inflation is coming down. we also have to factor in what is happening on the geopolitics. we have the g7 central bank meeting later today. in terms of how things are opening, the spanish ibex gaining 0.3%. the ftse 100 is

breaking news coming through from allianz. they are saying that they have taken some huge litigation from a past number of days. they are on track to meet their full profit. a comfortable beat for them. we are seeing the top line for them. we also had some comments from them. tom: the industrial giant seems to be winding down. it is confirming the full year targets for the business in terms of sales. this is an increase of 6.22%. 17 billion euros, the estimates were more than that. it seems they will be winding down there russia business. manus: looks like provisions are rising. more than double the estimate. this is what they expected. significant for this. that is the state of play on both of those. it should be said that on those numbers, they took an additional hit unstructured alpha. 5.6 billion euros on the hedge fund. tom: throughout the morning, we will be speaking in hearing from the ceo and cfo. commerce bank, the deputy chair as well. a lot to discuss to break down these earnings. what is happening across the market

allianz said in a statement that these settlements, quote, fully resolve the u.s. governmental investigations of the structured alpha matter for allianz we reached out for comment and are expecting a statement soon >> we know you'll bring that to us, thank you so much. >>> and checking in on the latest with elon musk's twitter drama. the tesla ceo tweeting that unless twitter can prove that less than 5% of its accounts are bots, the deal cannot move forward. musk believes the number could be four times higher based on an independent analysis he said yesterday at the all in summit that the real number is, quote, as unknowable as the human soul regardless, twitter is sticking to its guns. the ceo defending the 5% number in a tweet thread yesterday. this morning the company put out a statement recommitting to the deal, so what is motivating musculoskeletal's about-face that's what we all want to know. platformers casey newton had an idea this morning. >> the analysts are saying that even if musk were right, even if 40% of the accounts on twitter were bots, it would no

tom: allianz also it saying they were going to set aside approximately 2 billion u.s.lars in regard to the implosion of the hedge fund business, building on the $4 billion they had announced earlier this year. the stock is up 1.8%, maybe this is about the fact that they seem to be at least moving on from the applications of this. they expect further litigation. anna: so maybe that is in the mix as well. gas clash. european supplies are threatened after ukraine status russian pipeline flows through the nation could be disrupted. we saw gas prices jump a little on this story. anna: welcome back to the open. 30 minutes into the european trading day. the cleveland fed president says the fomc may need to hike by 75 basis points if inflation does not subside. u.s. cpi data is due out today. chinese stocks jump as coronavirus cases jumped, but i study warns china faces a tsunami of infections if they abandon the covid zero policy. european gas supplies are threatened after ukraine says pipeline flows could be disrupted. european market making some gains. feels like we are sti

believe that april of 2023 that the fed fund rate should be 3% that sounds excessive. >> eric at allianzk you. >>> the federal reserve is widely expected to hike rates on thursday this after jay powell confirmed a 50-basis point hike is on the table for the meeting as inflation spikes across the u.s. the price index rose 5.2% in march. looking at u.s. futures, the dow jones industrial average at 93 points s&p at 13 points it could be a bit of a recovery, julianna, much-needed after the selloff on friday. we have a lot of data coming out this week. pmi for the eurozone later in the week, i'm looking forward to the boe on thursday we were doing decision time program after we get fed chat on wednesday. it feels at this point that we know how these central banks will react we know the fed will react we know the boe will do something to get the rates higher the ecb will do nothing until tapering timeline. the markets should have comfort from that, but we still have volatility >> fromthere is a lot of convicn over the next policy meetings. before that, it is an open question i thought spoking

capital as it did in 2006 when germany held the woke up, the tournament will get underway at music's allianz subpoena. in june 2024 group matches will be played into regional classes to reduce jenny times for teams and fax it watching d. w use up next d w business. i'm painful and thank you very much for watching else you again next hour a by ah ah ah ah ah, in the room and with.

two of allianz's biggest investors slammed multi-billion-dollar losses.y warned that it had shaken investor confidence and may lead to more legal costs. allianz took a $2.9 billion charge to take a settlement with investors who claimed they lost billions when the funds collapsed two years ago. that is the latest bloomberg business flash. guy: angel, thank you very much, indeed. it was berkshire hathaway's first in person annual meeting in three years, and thousands flocked to omaha to hear from warren buffett and charlie unger. joining us now is catherine, who was there in omaha over the weekend. what i really want to get to is how were they? what do they look like? these guys are getting on a bit. how did they come across? reporter: they definitely came across as fully with it. buffett joked about it at the start of the meeting, he's 91 and monger is 98, so it was great to have shareholders back in omaha, but it is also important for them to see how they are doing and make sure they are fully running the company up to the standards. gina: tell us a littl

virginie maisonneuve there from allianz global investors.'s get to the bloomberg business flash. >> broadcom has agreed to buy cloud computing company vmware for about $61 billion. the move makes the chipmaker a bigger force in software and one of the largest technology deals of all-time. the transaction represents about a 44% premium to vmware's valuation before may 20. that was the last day of trading before bloomberg reported a potential takeover. workers at apple parts supplier -- in shanghai have clashed with guards. that's according to people familiar with the matter. media reports over the last we cap highlighted frustration among the workers, who have been trapped in a bubble due to mounting covid infections. --- and apple representatives declined to comment. that's your bloomberg business flash. tom? tom: thank you. alice atkins. the s&p 500 set to see first weekly gain after the eight weeks of losses. we will discuss retail numbers and investor sentiment, next. this is bloomberg. ♪ ♪ >> we cannot really think about energy without a

to goldman sachs' former cfo marty chavez, now the vice chairman of sixth street and we'll talk to allianz mohamed el-erian first up we'll start with the broader market and stocks taking this big hit mike santoli with a look at the recent pain we're seeing in stocks today compared to prior pullbacks. >>> it might or may not be a new fade as mohamed is saying. we were right down here in the s&p 500. moore like 3860, that type of range. 3925 more than 1% above that. the closing low 3,930. the bounce weep got friday and again yesterday i and a lot of other folks thought friday's rebound rally thought it had enough going to carry higher a lot of folks agree with that and they would be selling above. to go to your point before, sarah, in terms of what the market is trying to navigate it goes to what i've been trying to say which is we're navigating a narrow path to a soft landing. one side is a hawkish fed. the other side are we going to have enough growth to get us through the hawkish fed. i think you can deal with what powell said yesterday if growth is going to be okay, if the consumer is fi

who they believe themselves to be, they call themselves allianz. whatever is just the point is that they should not be prostituting that land to present a sizable as read to you and they're in big neighbor. now, i heard you say in the, in the country in ukraine began because russia understood that america never cease to target the russia as an enemy. why do you think that is because having an enemy is an expensive undertaking and especially an enemy of the size and character of russia? is there any benefit to the united states as a country, perhaps, to the american beliefs to have russia as others are? because the russians and i, you know, lived in this country for many years, a full it's policies. russia has no interest in seeing america. and then, i mean, we are interested in cooperating with them just as he said, is interested to cooperating with the rest of the world. why do you think the american society invested in seeing us as a bad guy or being on bad terms with well look, the fact is that there is a very strong european history in american

, every day, some of them it's irrelevant who they believe themselves to be, they call themselves allianz, whatever is just the point, is that they should not be prostituting that land to present a sizable as read to you and they're in big neighbor. now, i heard you saying another in this conflict in ukraine began because russia understood that america never cease to target russia as an enemy. why do you think that is because having an enemy is an expensive undertaking, i mean, especially an enemy of the size and character of russia. is there any benefit to the united states as a country, perhaps, to the american leads to have russia as others are because the russians and i, you know, lived in this country for many years, a full it's policy. russia has no interest in seeing america, and then i mean, we are interested in cooperating with them just as he said in his interested to cooperating with the rest of the world. why do you think the american society invested in seeing us as a bad guy or being on bad terms with well look up. the fact is that there is a very strong european history in

i mean, we update the, we have the french, the, the allianz and the germans are, you know, way we should talk about negotiations while pushing more of war sanctions. will. that's not how negotiations work. so as a sarah, i mean this is why i'm so depressed and worried is that they think something is winnable. i don't know what that means because that could entail in iowa ation of everyone. go ahead, sir. well, what does winning mean to u. s. strategists and war planners, it really means can they break the relations, the trade relations? he economic exchanges between the u, especially germany and russia. could they do this through war and the demand for sanctions? we shouldn't forget that buying promised nuclear war if, if the sanctions weren't voted said it's world war 3 or it's sanctions. so from the very beginning, it's been how to break the economic relations and it has come back and hit with a vengeance on the countries of the e. u. here in the u. s. globally, in terms of famine, literally in africa, when you have spiraling inflation, raises an energy cost. it is a war that has alrea

stadium in berlin, the opening match of the euro will be held on june 14 in munich at the bayern allianz be hosted by 10 cities, which are divided into three clusters, the first one entered dortmund düsseldorf gelsenkirchen and cologne in the second frankfurt-namine munich and stuttgart in the third hamburg leipzig and berlin stallion qualifying tournament will be held on october 9, this year as well as in the championship world in germany in 2006, the first match in munich was then played by germany costa rica, and the final in berlin based on italy's victory over france and the last match of zidane with a header in moderation, meanwhile , uefa approved a new format for the champions league with the participation of 36 clubs of the season 24 -25 place group stage teams will play according to the so -called swiss system. all 36 clubs will be placed in a single table opponents will be determined based on the pre-season ranking positions top eight automatic guarantees itself a place in the 1/8 finals, the next 16 teams will fight for getting into this stage in an additional round in the ma

a huge story for allianz, but largely in the price.g a huge claim with the sec but i think largely most of the money it will be forking over has already been provisioned. alix: let's dig deeper into that. global investors u.s., a wholly-owned pled guilty today to a single count of securities fraud will pay about $5 billion to victims. we want to get more on what that means from tom metcalf. what was your biggest take away from the settlement? tom: just the sheer amount of money involved the chairs are actually up. for investors they are perhaps breathing a bit of a side of relief actually and saying we at least have a little bit of clarity and billions later we are glad it's over. >> in terms of what jumps out. >> it's extraordinary reading. it's also fascinating details on how this was conducted. it goes -- the fund managers easily took returns at -18%. or they removed a single digit so it went from 42% down to 4% down. a colleague of mine was reading this with me and described it alix: what does it mean for the staff? tom: there's a

it's long road to recovery. minute fernandez. alger 0 colombo, esther allianz, go to the post this weekend with the liberal party seeking a 4th term in office. as sarah clark reports from sydney, security in the pacific is a major campaign issue. thank you very much. very soon as the security pact between china, solomon islands came as a surprise to australia prime minister, where very concerned the solomon islands were very concerned for the broader security in the south west pacific agreement. we'll see, basing increased time with the pacific islanders and helped a safe guard. national security is driving government morning. the pac threatens regional stability and allows china to expand militarily in the pacific. the islands, prime minister, declared peace on the right side of history. forging close ties with blazing. we've been treated as kindergarten students walking around with cold, 45 hands, and therefore we need to be supervised. we installed the on going full out over the pack has dominated the election campaign with recriminations on both sides. the coalition government has vowe

he's allianz adviser and president of queens college, cambridge.up, stocks down on this news because it probably means that the fed is going to have some more significant work to do and if not, inflation is going to be really hard to tamp down >> you're absolutely right, becky. what these hot numbers tell us are two things, for economy, for social and political aspects we have a persistent inflation problem that can also become a growth problem, and then for the markets not only are we dealing with interest rate risk and liquidity risk, which we've been dealing with for weeks now, but we have to worry about a bigger mistake. so these numbers are consequential and the reaction of markets, be it stocks, bonds, bitcoin, it's understandable >> let's talk about what this means for economy first. somebody pointed it out, maybe tyler who said that this means the real wage growth that we saw for month of april is wiped out and then some. people are going to be under more pressure. things like gasoline, things like food, things like rent, those are getting

allianz will plead guilty to fraud and pay 5.8 billion dollars after misrepresenting the risk opposeda group of hedge funds. it concludes an embarrassing episode for the german insurance giant which has agreed to sell the bulk of global investors u.s. as part of a settlement. shery: and take a look at how markets are trading at the moment. we are seeing a little bit of upside when it comes to kiwi stocks, up .8%. sydney stocks are also up about 1%. this after we saw some relief rally when it comes to their currencies, commodities, prices gaining a little bit of ground. nikkei futures higher by .1%. we have already seen three sessions of gains for japanese equity markets. we will be watching their first quarter gdp growth numbers coming up in just a few minutes time. we are seeing u.s. futures extending gains that they saw the new york session when the s&p 500 rose to the one-week high. it very solid data including consumer spending and factory production. coming up next, fresh signals from beijing that it may be ready to further ease clamp down the tech sector as it battles a slowing

, they're based in europe, but they sell all over the world, some of these global businesses like allianzinvasion along with the prices of the companies themselves, we have seen the euro extremely hard hit. so today you can access good quality businesses based in europe, but sell products and generate cash flow all over the world at very low prices doing so, you can invest in these businesses, via an undervalued currency, so it's almost like a double discount. >> 104, thateuro has been weakening all the way down here as the fed raises interest rates. if we do, david, what are some of the implications for stocks >> it is very possible you never know now, remember, it was six, seven years ago before the dollar bull market started, people thought the europo was going to go to two, and now people are talking about it going back to one i think right now it's fundamentally undervalued, but these european companies will have flatter income statements as a result of converting these dollars back to their home currency so generally speaking, a devaluation tends to be good for the companies that ar