prosecutors puts their case towards the hp and vale. -- bhp and vale.doesn't think will be about 218 million dollars for the year, sending its share price lower. oil producers coming under pressure in the region, dragging on the regional index. emerging-market currencies also coming under pressure. much indeed.u very let's turn our attention to what is happening in europe. stocks softening up a little bit. fair value numbers are negative, but only just. talk about sheltered worst number since 2008 on the profit line, but a beat in terms of where the market was on deliverable numbers. it will be interesting to see how that one opens up. socgen looks like it will be higher. the retail business standing up at the moment. adidas as well. ignore the numbers. the fact that they are talking about selling their golf business, which has been a real drag -- i am going to avoid my golf jokes here -- on business, seen as a real positive. that is likely to be good news. a new ceo coming into the business as well. is still with us. its earnings season, what is tellin

what is the trigger for bhp? >> well, everybody is concerned that the business model is broken into perpetuity and it is never going to to work. i like that story, because when you have absolutely no institutional demand anymore, you are will get p.e. compression out of the wazoo, and that is what is happening here, and the company is not going away my friend. >> and i didn't mean to interrupt you, i apologize, but the stocks, bhps and ree e owe, and freeport, ands, you know, obviously, they rallied off of the ridiculously low base, and maybe they were primed to do that, but isn't that, isn't that with the potential of over? >> no. you have the look at the balance sheet, and say to yourself, if i have a sector that has had the living stuffing kicked out of it, i want the one with the biggest balance sheets, because the intrinsic assumption is with the consolidation of the weaker ones, they are swept into bankruptcy, and so it is the others who will buy it at massive discount, and it happens every cycle. now, look

that's just weighing, in addition to the general environment on the likes of bhp billiton down.nd after hitting $22 million, higher than expected, they've had cost cutting, the danish shipping giant they've kept the outlook unchanged. they had warned us. societe generale, the french bank, soared up almost 4%. they announced cost cutting. some of the stories that we're watching here. back to you, guys. >> louisa, thank you very much for showing us some of the movers earnings season well under way as well. >>> when we come back, ted cruz drops out of the presidential race. so what is next for the republican party? the latest on the campaign trail. >>> but first, here's the weather channel's jen carfagno. >> hey, sara and wilfred. it's wednesday, we are missing the sunshine in the northeast. it's another day before you grab the rain beer, the umbrella is the staple every day. more rain in the forecast and below average temperatures, we are looking at this front diving down to the midwest. this will bring rain, maybe thunderstorm into the midwest. the stormy spot will be florida. th

if we look at some independent numbers of bhp, investment in renewables will make up two thirds of allnergy within the next 25 years. time, the share of renewable energy when it comes to the global electricity supply will double to around 43%. things like solar, wind, and hydro generators are very copper in tencent and need 12 times more copper than traditional energy generating techniques, so this is the demand that bhp is talking about. we have bhp looking to raise output at its olympic dam and will make a decision on output out of chili. plans to expand its mine in mongolia. however, one cloud hanging over this is the price, more than halved since 2011. it is that she price that makes these renewable projects economical. it will remain under pressure as the mines supply continues to expand. rishaad: thank you very much indeed for that. paul allen in sydney. objection overruled, google defeating oracles copyright claims. oracle says it is not done fighting. that is coming up next on "trending business". ♪ >> it is 941 in hong kong. these the stories making headlines. killed, 100 inju

shares in mining giant bhp billiton have been slumping. it comes after brazilian prosecutors launched a $43 billion lawsuit over a deadly mining accident. the suit seeks compensation after a dam burst in november of last year, killing 19 people and causing widespread damage. the site of the iron mine was run by a joint venture belonging to bhp and vale. german sportswear maker adidas will sell off several golf equipment brands come say it will focus on shoes and clothing for golfers while selling off the names. adidas has become the world's biggest supplier of golfing goods but sales in the division have slipped. the announcement came as adidas announced profits of 351 million euros in the past quarter, sharply higher than the same period last year. next, to what must seem like an s parent company alphabet has announced a joint venture with the chrysler. it the first time google has chosen carmaker to work on a project and it is also a boon for fiat chrysler. .eporter: self driving cars an innovation that is just around the corner, now eve

bhp stock down today. it looks like the store it in china, in terms of the commodity prices turning south aggressively, are we heading back to january lows? >> i would say it is quite possible. we have seen a decent rally, which is why we saw that number delivered from china that was dumb a not as bad. have alarger picture, we supply side issue. people are not demanding money. so if you come back with the see thing, you are going to not much growth happen. then you will see miners and everything else with lower value. don't see a cyclical output in mining stocks. caroline: manish, do you feel we will see more chinese stimulus? good morning. today, prices were showing a little bit of stabilization. i think cpi actually picked up. where do you sit on the future of china? >> i said the inflation number was encouraging, at the sense that it came in at 2.6%, the same as last month and lower than what people were expecting. we wil sl see what the pboc does. the second point about bpi, we had seen that ease a bit

prosecutors in brazil filed a billitongainst bhp over the dam rupture that killed as many as 19 peoplehe challenges of previous deal they had signed with federal and state government. probably result in the lower settlement. in poland, the five-month-old government is boosting business credentials. 574a promised to spend million dollars to build a mercedes-benz engine factory in the country. bloomberg is the splash. this morning, we are tracking what is going on with the dollar. bloomberg's gauge of the dollar is common from their lowest level in one year after san francisco fed president said he would support raising rates next month, provided the economy stays on track. want is a likelihood because we are never supposed to talk about what will happen and we look at live data between now and then, in my view, yes, it would be appropriate given all of the things we talked about to go in that next step, but a lot can happen between now and the middle of june. is pushing back against market expectations on rate hikes. joining us is jim wreckers, editor and author of "the new case for gol

bhp billiton up by 0.5% today. >>> glencore is looking for a way to reduce its debt burden. mine based in kazakhstan reportedly worth $2 billion. >>> gold prices retreat for a second straight day after hitting 15-month highs earlier this week, this as hawkish comments and the dollar, the coordinator at fx precious metal strategy joins us from amsterdam. good morning, georgette. great to have you on the show. speaking of a rally that is looking like it's running out of steam. what are your thoughts on gold here? >> yes, quite big move so far. the only thing is, we have -- yeah, we have that coming up on friday. that's also giving a bit of a setback on gold prices especially with gold but the dollar re. kaing somewhat ahead of these numbers. i would expect some range trading ahead of the numbers. the numbers come in weaker, we expect gold prices to continue to rallying. overall, cautious for gold price and other precious metal prices. the main reason is the lower dollar. a major positive for gold other places as well. the ultra low interest rate which is is good support for go

bhp shares 5.9% lower today.'s a $44 billion suit the company for a november dam rupture that cause severe and by missile damage . deutsche telekom is one of the companies in the news today that released earnings. earnings beat estimates in the first quarter. phone unit onele subscribers with aggressive promotions. getting users. shares are lower. that is the trend today. finally, i want to focus on a couple of big u.k. retailers. that the british clothing retailer actually cut its sales forecast for the second time this year. it reported first-quarter estimates for unfavorable coldspring weather. the company cutting its guidance in march. we have seen signs of improving business in recent days. that is providing some crumbs of comfort for shares that are up a cut indespite its sales forecast. shares are down by 2.7% today. the supermarket chain reported i a profit that beat estimates, but now we are seeing shell sales that fell for the first time since july. that is why it is lower despite the beat today. figure

but bhp is not faring much better, it is off 5%, and rio off 4.7%.he government, evans are i decline in the price of iron e is a decrease of $50 million. rishaad: thank you for that. that is paul allen for us in sydney. ahead we are going to be speaking to the philippines former socioeconomicic planner. he talks about the problems facing the next administration. this is bloomberg. rishaad: 13 minutes past 10:00 in pyongyang. the people's worker's congress kim g to an ends, will jeong un party chairman. they are pursuing their nuclear weapons program. many north korean watchers are taking this was really cementing and consolidating his power base. that is the scene in pyongyang. we are going to look at some of the other stories making headlines around the world. with the brazilian senate that could convert as early as tomorrow on impeaching the president. some are calling for the process to become annuled. the senate chief is not ecognizing the decision. they would see rousseff suspended from office while she is faces trial. the united states and russ

billitonlliton -- bhp facing legal challenges in brazil.e shift is after two federal officials raised concerns that investors have become too pin placement -- too complacent. it has taken them in a while for them to realize this. you can see sentiment shifting in the last few hours. tom: we have the same chart. yours is more short-term and immediate than mine. tom.ine: i changed mine, i wanted to give you all the love on productivity. tom: i will do productivity later. do yours now. francine: this goes back to what we have been discussing, about container ships and trade. when you look at oil, they basically have set up confidence oil unit. look at container ships. if you look at the white line here, the container benchmark rate has been dropping with brent oil. this indicates that the trade is grinding to a halt, as you put it. tom: a beautiful way to introduce our next guest. ourre thrilled to continue discussion after adam posen with the peterson institute, with 'slliam lee from willem buiter citigroup. the chart francine showed goes rig

by .5%.own bhp seeing some upside despite selloff in iron ore for that this is what we're seeing in the's russian. automakers, electronic makers seeing a downside as a result of that stronger yen. toshiba off by over 2%. they expanded that to cut a recall -- takata recall. some pressure coming through for commodities. as a result, the aussie dollar has a bit of don't slide. gold has its longest streak of decline since mid-march. a reassessment of fed tightening expectations weighing into this demand we have seen. this rally in gold we have had seemingly coming to a stop. finally, a quick check of the end. not a lot of moment but certain -- movement about definitely strong, at least if you are a japanese exporter. rishaad: james goldman says china's economy will continue growing quickly but it face some bumps in transition. steve spoke. economy is the second largest economy in the world, growing apparently last year at 6.9%. it's certainly growing at a rate faster than the rest of the world. the third-largest, japan, has negative growth. fourth-largest, germany. is slowing.se, it china a

we have pressure on bhp. -- but also brazilian prosecutors filing a $44 billion civil suit over the november dam rupture. i'll be back in a couple minutes when "surveillance." be gins. ♪ francine: the day after indiana, trump wins. cruz quits. can he take on hillary clinton weakened by the sander setback? >> we're never supposed to talk about what is going to happen -- francine: fed presents a rates could rise next month. going down string to beat. -- going down stream. shell focuses on oil refining on, but production. this is bloomberg "surveillance." tom, a little bit of movement on currency, a lot of earnings in europe. of course, we ar

bhp down in london. vale down in london. a couple of u.s. stocks unchanged on earnings. we still have 2.5 hours to go until the u.s. stock market opens. let's look at the other stocks that are trading overseas right now. shell is out, also down right now after a 58% drop for the first quarter. offsets from refining earned 1.6s, but billion dollars, the smallest profit since 2008. we want to go to ryan chilcote in london. take us behind these topline numbers in the earnings of shell. ryan: it is the same stuff that exxonompanies like bp, surprise when it comes to the earnings. it was the downstream side of the business, the refining side of the business. street -- the up upstream. the chemicals business at sheldon really well. loves to talk about how it's been performing so well. -- the chemicals business at shell did really well. $1.6 billion is not that bad if you think about it. did better with $1.8 billion. pretty solid results. the i was looking at combination my capital spending down one third over the same time. is there more fat to go? ryan: there is more fat to g

what really, i i this morning was a line out of bhp.lking about the real spark for copper demand which will be renewable energy. i guess the electrification story, everything else is going to happen surrounding the renewable story. it is going to be fascinating. the european equity market story about to lift off. we have a live shot of the amsterdam stock exchange as we wait for the philips lighting ipo. markets not going to do very much. this as we await news from janet yellen. ♪ guy: good morning. welcome. you're watching "on the move." i am alongside matt miller. he is in berlin. matt has your morning brief. matt: put your barbecue on hold. yellen delays traders long weekends i giving a crucial speech this afternoon. jeff good luck takes she will be dovish. market pricing agrees. the g-7 ends with a whimper. japan's prime minister fails in his bid to have the group one about global crisis. one mention has been the brexit. david cameron using the g-7 to commit to the eu. we will discuss the latest holing, politics and market action at

. >> talking about freeport, bhp, and those types of stocks? >> a number of them, but we are not talking about them today, but it is a good bet if it is levered and negative free cash flow, and if you are betting on china, we are interested in it. >> you have made a case that you are no longer betting against the winds of the world if they were there, and the las vegas sands, that ship has sailed. you brought up alibaba in the past as it relates to china, and are you short that name? >> we are short, and short for accounting reasons. we are real questions on the metric, and we have real questions on the cash flow. and most importantly, the biggest part of the business which is the fulfillment side of the business delivering you the package is unconsolidated on the financial statement. we just don't see how profitable or unprofitable that business is. i suspect it is unprofitable, and they are funding it from the cash flows apparent. and so no real free cash flows at alibaba, and that is what is interesting about the story. >> and the sector pla

overnight we had news from bhp and vale.ernment is suing them around the catastrophic dam failure in brazil suing for $43 million them and vale. you see those stocks trading down here 4% each essentially. also there's been a lot of discussion about the overall market tone and the political season with donald trump now the presumptive nominee of the republican party, hillary clinton the presumptive nominee of the republican party, a lot of people asking what trump versus clinton will be for the markets. i don't see impacts. i don't see trading on that right now. these are the themes related to the market right now and not to the election. we've had choppy data hard to figure out, recent dollar weakness but some are debating whether that will continue or not. and we've had oil well off of the lows but production is high and we're not going to go much further past $40. these are the three issues affecting the markets even today. so the pain trade right now look what we've been doing here. the s&p was 18.30 in february. we're at

so bhp, rio tinto, anglo american all down and dragging on the ftse.et's take a look at what the leading markets are up overseas. there are gainers pulling stocks. european drug stocks, big stocks , really boosting the index there. you can see that roche is up 2.5%. novartis is up 2%. , up almost 3%. a lot is going on in europe, but it is to the upside. amanda: it is time now for bloomberg friends, a look at the top stories the readers are looking at on the bloomberg. i love this company because i get a read on the global economy, not just on demand but on supply. one of the things that has plagued this company is overcapacity. i have sat down with the ceo several times, and it is his comments on negative interest rates, the idea that negative interest rates are deflationary because it carries on promoting capacity. the companies that should have shut down, that should have gone on with others for consolidation are not because of negative interest rates. i think that is an important discussion. david: the misallocation of capital we have been talking a

bhp up over 4%. downgrading bank of america saying it's a decent franchise but needs to do more to improve returns, the group in general higher this morning as, again, i mentioned that the yield on the ten-year ticking up a little bit. that's good news for those banks, of course we'll be watching the ipo market as well. june the upcoming month expected to be -- or typically a strong one for ipos which of course is critical to their investment banking business, but of course the ipo market has not exactly been blockbuster this year. investors hoping for a pickup in june and portray better months ahead. buffett impact also being felt today, taking a look at some of the stocks his berkshire hathaway has sold and acquired, lowering his stake in walmart, getting out of at&t, its stock down half a percent and apple the big news as he's initiated a stake there. apple up more than 2%, the dow component giving a lift to the blue chip index along with ibm where it raised its stake in yahoo because he said he w

. >>> brazilian prosecutors filed a civil lawsuit demanding that bhp, vale pay up to $44 billion in damagess are responsible for a catastrophic dam failure in november. the accident is believed to be brazil's worst environmental disaster. killed 19 people. destroyed villages and polluted 400 miles of river. >>> glen core reporting lower copper and zinc production in the first quarter. it's promised to cut output as it seeks to slash costs. lowering targets for the full year. >>> apple and google are turning india into a mobile market battle ground. josh lipton joins us with a closer look. good morning, josh. >> cnbc can confirm reports that google is launching carrier billing on the play store in ind india. that means users in aindia can purchase music, books and games from carriers rather than billing credit card companies. that's especially important in india where credit card penetration is limited. less than 5%. but smartphone adoption is surging. india is the third largest market for smartphones. last year alone, 102 million smartphones were shipped there. that was a 49% jump from the