we are in baden-baden, germany.t may prepares to pledge a closer union with scotland after a bid for an in the independence vote for brexit. comes trump's proposal under fire in congress. warm welcome to "bloomberg daybreak." i'm anna edwards. program.r 7:00 here in london. let's look at where the futures open up on this european equities session. fed move seems to be running out of steam. flat to negative in the asian session by the end. here in europe, euro stoxx seem down a 10 -- 1/10 of a percent. asia pretty flat, but some emerging markets doing better. japan the weaker link there. volatility still retreating. quotes around it being scarily slow. checking in on currencies. a lot of movement in key currencies this week. 123.65, kristin forbes is leaving soon but raised questions about how far behind the rest might be. how scotland could abandon its current union with the u.k. on currency. euro, 107.79. the talking about a rate increase maybe on the ray -- on the way. way -- seems to be coming to her from the ecb

matt miller finds himself in baden-baden.bing shoulders with finance ministers from g-20 countries. what can we expect? matt: i just saw the turkish finance minister taking a jog through the restricted area. only finance ministers are allowed to run here. we saw wolfgang schaeuble this morning. we saw steve mnuchin. we saw the japanese finance minister. they are getting ready for a meeting which looks like it or a lessonciliatory contentious mood than we initially expected. there had been a fight brewing about the use of the word "protectionism." some consider that a loaded term. the u.s. wanted to use "fair and equitable" in regard to trade. it looks like they may come together and calm the storm in baden-baden just to appease the new team out of the u.s. guy: interesting. do you think the germans are doing this deliberately because angela merkel is in washington later today? why them not sure germans are being nicer. from conversations i had yesterday in frankfurt, there was just the idea that, look, the treasury is just pu

of course, this weekend finance ministers meet in baden-baden.teven mnuchin is suppressing his apologies that -- expressing his apologies he will not be able to meet angela merkel in washington tomorrow. the first question from michael mckee was about who speaks for the u.s. government on the issue of monetary policy, currency manipulation -- who should the markets listen to, and steve mnuchin said they should listen to the president first, and well. to me as he went on to say it is important that countries do not manipulate their currency. he said in a long-term best interests, the strengthening of the dollar is a good thing. his words. he repeated something treasury secretaries often say -- they will not comment on short-term movements in the dollar. he would not comment on the euro, for that matter. most of the questions went to the u.s. trade secretary. -- treasury secretary. wolfgang schaeuble chiming in from time to time. the treasury secretary said he believes it is possible to get 3% growth or more. at myd they are looking alternatives an

. >> finance ministers representing 20 of the largest economies are meeting in baden-baden. they will address free trade ofd nationalism in two days talks. after meeting with his american counterpart, the german finance minister warned against the dangers that nationalism can pose. learned anything from the past, it is that nationalism and protectionism are never the right answer. we cannot cut ourselves off from the problems of the world. ed byould not be fool blinders of the complex challenges facing us here at it can be tempting, but in the long run it undermines trust, destroys wealth, and damages societies. openedpean markets slowly but picks up in the day. a short while ago the ftse 100 .2% after a record high. up .4%. frankfurt dax close to the flat line. now for more business headlines from around the world. former barclays chief officer bob diamond is coming to london, teaming up with the royal to buy ainvestment arm stockbroker. their offer is 10.5 million pounds. shares shot up 60% after the announcement. the german economy minister said germany could file a suit

yes, that was that meeting in baden—baden where they wanted that word, antiprotectionist measures, putting't happen because the americans wouldn't sign the paper. what is interesting about this particular meeting is that it kind of paves the way for future discussions, because prior to this, rex tillerson arriving in beijing, it was president trump coming into the house, it was president trump coming into the - house, and he did say the white house, and he did say before he was elected, i will the white house, and he did say be day he was elected, i will the white house, and he did say be day one, is elected, i will the white house, and he did say be day one, china :ted, i will the white house, and he did say be day one, china a ad, i will the white house, and he did say be day one, china a currency on day one, china a currency manipulator. i am going to be slapping tariffs on goods coming out of china into the united states. it of china into the united_sta.tes_lt all very aggressive. and that was all very aggressive. and that was all very aggressive. and that was the tone. whereas this is

. -- baden baden.g schaeuble chiming in from a conference in frankfurt today. >> is always the wrong choice. it can be very tempting in the short term, but in the long run, it only serves to animate [indiscernible] globalization means we are more connected and more dependent upon each other today that at any other time in our history. reporter: now rental -- renault shares skidded off the track. the french carmaker denies allegations levied against it, but the entire management is kind defeat devices planned to dodge environmental rules. >> the so-called questionable practices started in 1990 with the first generation of cleo. the former employee revealing the devices that reduce emissions when put into test mode. they carried out tests on multiple brands, finding renault breaking emissions standards, opening a case in january. in a report on wednesday, fraud investors blamed the entire leadership, including the ceo. the pressure on him is mounting. renault has denied these allegations. the second in c

miller joining us in baden-baden. plenty more coming from the g-20.p guests from that meeting, including debt southan commission's, africa's finance minister and the australian treasurer. conversatione the about trade themes coming out of the g-20. joining us on set in london, jeremy kurtz. jeremy, it is fascinating to tussle that is going to go on around the communique. it seems the u.s. wants to drop multilateral and rules-based and want tonce institute a fair national trade reference. the fact they are talking about rules base has led to the -- something the g-20 has to wrestle with. simon: -- jeremy: we saw one of the first was ttpump did on trade is dead in the water. no one has talked about it. leches hurdlesf that trade has to jump over over the course of the next couple of months, couple of g-20 meetings. we know exactly what this trump administration truly wants. with a small team, probably not doing the job trump wants to do yet. perspective,ropean steve mnuchin lending a different tone yesterday. hadgermans and europe have cognizance of wha

it will be interesting to see what happens when we go to the meeting of the g-20 at baden-baden.we heard from the fed overnight and what we heard from the dutch voters overnight as well, i want to bring in the chief economist at societe generale. start with theo fed. did janet yellen pull off the perfect dovish hike, or did she leave something on the table? >> we can say it was a perfect type. prepared the market. it sent a message, rather dovish . the markets were wondering whether they would accelerate the pace of tightening, and so far, they hinted that there would be two more hikes in 2017, as expected, so, so far, so good. guy: let's talk about political risk. .'ss morning, we see o.a.t over bunds tightening up a little bit. is that what we should be doing, or do you think we are not done yet? olivier: the dutch elections were rather good news for europe. far, thewing that so polls are not always wrong. it is good for that. ad also, that there will be government that is reducing uncertainty. we know many elections are coming ahead in europe. matt: let me shoot a question bac

the eurozone came together this week at events around the meeting of g-20 finance ministers in baden-badenm. let's start with ubs group axel who spoke exclusively to bloomberg from the iif g-20 conference in frankfurt. >> european integration is challenged at the moment by brexit. that has been the first data point where the market was very concerned. there was a lot of uncertainty and really strong movements and volatility in the market. and that is going to continue. europe is going to be plagued by political uncertainty the entire year. and even greece that is looking for another mission might come back as a problem over the summer. plenty of political risks that might materialize in europe. the market will react with volatility and caution as the data points materialize. and as these elections happen. reporter: hints of early elections in greece now as you bring that up. let's talk about brexit. you mentioned you are thinking about 1500 jobs moving from london as a result of brexit. are you making an assumption at ubs that we are going to see a hard brexit? >> i think what we need to d

really exciting time following the d -- g-20 two in bodden bodden -- baden-baden. and here onn berlin their daybreak show, good to have you on the program. let's characterized we saw in u.s. equity markets. substantial loss of 1% coming through on the major u.s. indices you do you say this is a questioning of the reflation trade, a questioning of the trump trade? it depends on a extent to which you think the trump trade was priced in. you saw indices to look at help here.de us through this is companies that have high tax bills and in the blue we have companies that typically benefit from share buybacks which might get a boost and he might see that repatriated. neither of those categories are stocks have been doing all that well since the middle of january. neither of those are what you might call trump trade have benefited in the month and a half or so. what has been doing well are the companies with big international businesses. interesting question to what this buildup was a out in the first place and is it being unwound? let's recap on the risk rate or. what hap

bilateral with the chancellor and later met with 18 of his counterparts during the g20 ministrial in baden baden. microeconomic policy, financial regulation, international tax and elicit finance. during the meetings the secretary and his counterparts submitted a platform on steps to promote growth and financial stability. in terms of the schedule for the rest of the week, tomorrow the president will sign s-442, the national air naughtaeronautics remarks at the republican national committee dinner in the evening. he will meet with the congressional black caucus. thursday he will hold an event with truck drivers and representatives from the trucking companies and industry on health care and its negative impacts on their industry and livelihood. which happens to be the largest employer in 29 states. and on friday, the president will hold a brief independence day celebration. further updates on all those events later. finally i want to address the house intelligence committee hearing that is currently happening in which the fbi director and nsa director are currently testifying and comment to the ex