vonnie: moore bloomberg markets coming right up. this is bloomberg. ♪ >> this is bloomberg.ainst the yen and up against the dollar. this is bloomberg. ♪ mark: this is the european close. stocks finishing the wednesday session, touch and go whether we will finish the day higher or lower. down for the fifth day, the worst run since november. they all say sell in may and then wait. it doesn't work for the stoxx 600. each masons 2013, it's risen an losing of 8.3%, then 3.9% in june. this will fall for the fifth consecutive day. what a different sterling. earlier, we had reaction to this -- it will be a hung parliament. it was a projection, not a poll. polls.a couple of cantor says the tories at 10% ahead. chance --one month eight days to go until the election. this is a chart showing implied volatility pound dollar, gauging expectations. swings in that exchange rate for the next few weeks. what's interesting about this chart will volatility has risen to its highest level since february. but what happened pre-brexit last june. that was record volatility year. the vote last also t

this is bloomberg. ♪ mark: this is "bloomberg markets ."ie: time now for our segment -- it is smart beta tuesday. maloney --with mike you released a fresh look at commodity etf's. how they perform versus one another. generally over the past few years, commodities as a basket have not been terribly well. what are the different ways to track it? mike: the first way to start is the index -- the basic index is the goldman sachs commodity index. the equity beta put on commodities. they claim that doesn't work so well for commodities. the performance has been poor -- the gsp tracks it. then there's the bloomberg commodity index. that has the benefit of being second. gsci did wronghe and did it better and it broke up each sector two thirds. every year, it rebalances. it has had a better performance. if any index can be that come it would be smart beta. -- beat that, it would be smart beta. julie: that is incrementally a little smarter beta. there are a couple of others that up the ante and try to be even smarter beta. dbc, deutsche bank optimal yi

this is bloomberg markets on bloomberg television. with some of the biggest business stories in the news right now. intel has escalated the battle fornst amd in the market personal computer processors. the company unveiled the powerful chip. they will sell chips under a new core i 9 brand. china investment corporation is the front runner to buy european logistics business logicore. logicore is owned by blackstone group. opened's commerzbank has up 3000 employees. the familiar with the matter say $34,000r includes a sweep to cut 9600 jobs over the next four years. mark: that is your latest bloomberg business flash. vonnie: time now for our bloomberg quick take where we get context and background on issues of interest. leaders are looking at choosing not to make any significant policy changes on the issue of climate. it might just be the world's most controversial universal idea. the united nations declared it inalienable human rights. the discord starts when it comes to who deserves sanctuary. whether they can survive the flood of refu

this is bloomberg. "bloomberg technology" is next. ♪ caroline: i am caroline hyde in london.his is "bloomberg technology." coming up, g-7 leaders join the chorus calling on big tech to limit the spread of hate speech and propaganda online. we are live in italy with all the details. softbank's $500 million bet. the c.e.o. joins us to discuss the investment and using cash to build new realities. the highs and lows of bitcoin. we will track the success and wealth swings of the digital currency on the bloomberg. first to our lead. donald trump made his g-7 debut in sicily, the final stop on his first international trip as president. tensions were brewing over trade and climate change. there was one topic the group was in agreement on, the need for internet companies to do "substantially more" to take extremist material off-line. the meeting comes days after the terror attack in manchester which killed 22 people. joining us from the sicilian town, matt miller who has been covering the summit. before you destroy my pronunciation of where you are, matt, the words coming out of here,

this is bloomberg. scarlet: coming up, a bloomberg exclusive -- james bullard warning that washington will need to fulfill policy expectations or the president's honeymoon with the stock market may soon be over. from new york, this is bloomberg. ♪ julia: this is "bloomberg markets." julia: st. louis spent president jim bullard warning that u.s. washington needs to deliver on expectations that have driven the market higher since the election. the process of unwinding the fed's balance sheet should come in baby steps. i think a bullard: good thing about unwinding the balance sheet is it will create policy the committee in the -- we are not very far from the appropriate rate for the u.s. economy that will keep too far from target and the labor market performing well. what i disagree with is the idea that we have to go 200 basis points higher to get to some sort of neutral rate. that's not the environment we are in. we could stay above where we are. >> i want to bring up this chart for our viewers. what kat

this is bloomberg.onnie: coming up, we will discuss the biggest risk facing the global markets right now with head of research at deutsche asset management. keene sits down for a conversation with former fed chair ben bernanke. at that conversation live 12:20 p.m. new york time. this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. .ark: i'm mark barton counting down to the european close. the markets.k to theresa may making comments on brexit. many looking to a provincial -- presidential vote in france. joining us now is philip pull. thanks for joining us today. theresa may has spoken. seems like the fight is on between brexit and the eu given comments in recent days. it also brings us to the french election on sunday. if we overcome the french election, have we seen the upside in stocks? or is there further to go? further tothere is go actually. the first round was the most important one. i think there is still some risk in european stocks. further opportunities for peripheral splits. cut

this is bloomberg. ♪ this is "bloomberg markets."rlet: all this week, bloomberg technology is in boston speaking to fortune 500 companies and uncovering its burgeoning tech scene and that includes a closer look at the boston pops orchestra. the orchestra is paying tribute this year to the music of former conductor and hollywood superstar john williams, who was known for his work on "star wars," "raiders of the lost ark ," and other big on-screen hits. here is a look at the recording of his work in a high-tech studio. ♪ >> start with a little of this. ♪ >> at some of this. ♪ hours of keitho lockhart leading the boston pops , you will have a recording of the selected works of maestro john williams. the manned the managing director says -- >> the soundtrack of our time. john can write a melody better than anybody else. "star wars" comes right into your head. >> ♪ >> you say "et" you hear it in your head. ♪ the recording is overseen and , onevised by nick squier of the few full-time sound engineers employed by any u.s. orchestra. >> it i

this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn.ime for the biggest business stories in the news right now. blackrock, can come, and blue crest capital management are preparing litigation against banks over rigging foreign exchange markets, according to people familiar with the matter. they say the firms are looking to recover losses they blame on currency manipulation. the lawsuit targets but please, citigroup, jpmorgan, where bank of scotland, and ubs. u.s. regulars are reviewing possible payment of violations stemming back to an internal probe that started in 2015. the currency transfer company is in acquisition talks with jack ma. rivers could raise national security concerns by allowing chinese companies access to u.s. infrastructure. disney could be heading once again to the top of the summer box office. the studio hopes to capitalize on the power of proven franchises, rolling out sequels to "guardians of the galaxy, was quote "pirates of the caribbean ," and "cars." volumeans of the galaxy, two" could clear $1 billion of glob

this is bloomberg. ♪ david: this is bloomberg markets. i'm david gura. julia: i'm julia chatterley. let's get a check on the bloomberg first word news with mark crumpton. mark: more now from president trump us oval office interview with bloomberg news. the president did not rule out a face to face meeting with north korean leader kim jong in. north korea has in the president's most urgent national security threat and foreign-policy challenge in his first 100 days in office. under the right circumstances, i would absolutely meet with him. people wouldl never say that, but i'm telling you, under the right circumstances, i would meet with him. mark: the last top u.s. official to meet with a north korean official was madeleine albright who met with cam's father in 2000. house and senate negotiators reached a budget deal that rejects most of the presidents wish list stop the $1.1 trillion agreement would keep the government in operation through september. republican leaders bowed to democratic command -- the

this is bloomberg. >> this is bloomberg markets. puerto rico decision to head to court to reduce its debt to the islandes on security. not happy.m are aretitutional guarantees only as good as the willingness enforcing them. i want to bring in now, some say one of the restructuring kings, and financial advisor to puerto rico. represented the previous government there was an election. election. an election has consequences. we have a new governor and he of advisors. >> we're involved. >> did you get paid? they were able to pay out -- >> we were paid back. we worked for three years before the new governor took charge. >> let me ask you, would you threendorsed title solution here? >> for the statute they're working on, it has two different restructuring. one is consensual deal that creates legal mechanism for consensual deal. that's title six. startedree, it was yesterday. yesterday.ore it's a court supervised debt procedure.ng >> is a good solution for the island? >> i think it was inevitable. island capital structure is so complicated

this is bloomberg. ♪ scarlet: this is "bloomberg markets."k atet's get a quick the equity market. the s&p 500 at session highs. this would be the fifth straight day of gains if we hold in the green. the utilities come a realistic, and materials names are trading higher, by .6%. drag is coming from the financials and the energy stocks, a brief turn into negative territory after the fed minutes. tohave regained, back session highs. scarlet: let's get you the bloomberg business flash a look , at some of the biggest business stories in the news. the general electric ceo says meeting a goal of two dollars a share next year may be a stretch. he is under pressure to boost performance. oil market and headwinds and equipment pricing are optimal to meeting the goal. ge has it several quarter of weaker sales, and the stock has dropped more than 11% this year. dow chemical and dupont have gotten advice from an activist shareholder, saying changing the composition of the spinoffs they have planned could create $20 billion in additional value and further s

close on bloomberg markets. climbingan stocks high. stronger earnings. pricing most of the electoral risk of voters in france head to the polls on second round of the presidential election. this suggestid could potential turning point. nigel bolton head of the equity team. what's your assessment so far the european earnings season. a number of beats stand out today? >> this has been the strongest earnings seasons we've had over the last eight years. i think it really depends why we is a real opportunity for global investors. 2016 was the year that lot of love withl out of year. this year is the year people start to return to europe. really about the underlying earning story and the risk premium. which is embedded in europe over the last few years. >> where do we put our money? you say the backdrop is looking good.nd earnings looking we're breaking that eight year losing trend. thee do we put our money in equity space in europe? >> i think this year it's been story about the stocks specific fundamentals of coming

this is bloomberg markets on bloomberg television.or its biggest advance in more than a month, political turmoil in brazil and the u.s. bolstering it as a haven. joining us for our futures in folkestone -- futures in focus section, phil. what is priced in when it comes to this opec meeting? >> it is interesting here. looking at the driving fundamental and technical factors here with oil. the opec meeting is in focus. how long will they retain these cuts? it is the first cut that has been in effect over eight years. we had this massive washout toward the end of last week. we have one of the best weeks going on for oil this year. what it did was clean out everybody in their. it flattened out the position. traders are coming in, and reestablishing it. they believe in opec maintaining some kind of cuts. the cuts being in play for quite a while. they will move up to about $52.50 coming into the meeting. either we will see a big nosedive or the rally back up. mark: attention this week has turned to donald trump's domestic issues and issues

this is bloomberg. tom: that is outrageous. i am set up to watch 8 episodes of " house was london. -- ho usewives of london." guy: that is the reason enough for laptopa ban. it is being reported by the german presence thing something that could come in the next few days. do you work on the plane? tom: i read. it's the only quiet time to read. guy: everybody is getting involved. i suspect the bloomberg audience and our guests are going to take -- it's laptops and tablets. we use laptops -- tom: it is little confusing. the thank of for finland expected to raise inflation forecast as -- the bank of england expected to raise inflation forecasts. the u.k. and brexit were enough to prevent the boe from increasing interest rates. what will happen with michael saunders? we are down at the bank of england ha l talk about forbes and saunde. are we expecting unanimous decision today? nejra: you have hit the nail on the head. no change the policy expected. we are expecting an upgrade to the inflation forecast of 20

this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn.ensions rising between the white house and one of our biggest nato allies after the president tweeted, "the u.s. has a massive trade deficit with germany." this is according to party officials. is the president alienating our allies? kevin cirilli traveled with the president as he met with merkel and other leaders. he joins us from our washington bureau. doesthis escalate, or one of the leaders put this in their back pocket and forget about it? kevin: it is clearly an escalation after the president's tepid welcoming at the g7. notident trump is particularly a popular president, not only in the u.s. the president will continue to work with auto leaders like bmw. standpoint, ity will be interesting if we see a these 2 countries working together on a host of policy issues. it was several weeks ago when it seemed like chancellor merkel and president trump had turned over a new leaf. vonnie: are we witnessing a race to the bilateral? you had chancellor merkel meet with the prime minister of

this is bloomberg. ♪ this is "bloomberg markets."et's check in on first word news this afternoon with mark crumpton. mark: thank you. russia's president vladimir putin blasted u.s. politicians today for whipping up what he is calling "anti-russian sentiment." president putin spoke today in sochi during a joint news conference with the visiting italian prime minister. >> you know what surprises me, they are stirring tension in the u.s.'s internal political situation by using anti-russian mottos. they either don't understand they are harming their own country, and in that case, they are just as stupid, or they understand everything, and in that case, they are very dangerous. mark: president putin also says the kremlin initially viewed debate about russia's meddling as funny, by now says there are increasing concerns because of these seeming unpredictability in american politics. house speaker paul ryan said congress cannot deal with speculation and innuendo when it comes to the conversation between president trump and former fbi direct

you are watching "bloomberg technology." "bloomberg technology."tart with a check of first word news. the white house is congratulating south korea's new president. press secretary sean spicer says the administration is looking forward to working with moving -- moon to strengthen the alliance between the two countries. says they will meet again in bethlehem. the president has accepted the invitation to join him in the west bank city during his visit to israel in two weeks. senate republicans are getting down to work on their version of obamacare. senate majority leader mitch mcconnell says action is needed now, because health markets are collapsing. democrats sent a letter to mcconnell asking him to drop repeal and replace legislation. french police are searching for three men suspected of hiding -- plotting and islamic state attack. authorities conducted a major operation at a train station. the evacuation of the station came a day after the 10th presidential election, won by macron, saying that his priority will be entering france's security. glo

this is bloomberg. ♪ yousef: you are watching bloomberg, i am yousef in dubai.y ahn in hong kong. a quick check of the latest business headlines. abu dhabi commercial bank's he estimates with an 8% jump in first-quarter profits. earnings were boosted by gains in islamic financing and tighter controls over spending. they set aside less to cover -- with the kleins of the uae economy in revival mode your it before results were released, abu dhabi commercial bank had of 11t recommendations buys, three holds and one sail. 5% afterrofits fell the logistics firm saw a rise for a scheme. its revenue rose 7% of them by growth in the asia-pacific. that currency fluctuation in key markets, it took a toll on revenue according to an e-commerce section. securitye uae's commodity authority says it is changes as dubai listing union property. the regular dinner has receipt -- the regulator has received three letters denying those. been suspended on thursday amid heavy speculation about the structure of its board. bank is stillment with us. let's talk about some of the big market

this is bloomberg. emily: this is bloomberg technology and bloomberg television and radio are on the ground and showcasing the innovation, diversity, and power of the regional economy. we are taking a look at innovators from fortune 500 startups and talking to government officials. we are joined by caroline hyde. you have a eight week ahead of you for us. what do you have? >> we certainly do have a big week host up boston and massachusetts is the hub for all things biotech and it is expanding its reputation for tech. banking onctric is boston and they broke ground on the new headquarters today. the ceo spoke about the collaboration between the company and the city. >> ge has moved to one of the oldest cities in the country to create the future, whether in life sciences, renewable energy, tech knowledge he, aviation, technology, aviation, material sciences, these are things that we want to do together. when bostonst year cityhe bid and it cost the $25 billion in tax relief and an incentive package from t

this is bloomberg. ♪ mark: this is bloomberg markets. i am mark barton in london.nn in newvonnie york. it's time for the latest bloomberg business flash. insurance giant american international group has named its seventh ceo since 2005. he is stepping down as ceo of hamilton insurance. is succeeding peter hang cake because of lack of support from investors. aig is suffering from higher-than-expected costs and 4 losses and seven quarters. buymo fisher has agreed to a dutch maker. to $7.2 billion. thermo fisher is one of the roles largest makers of diagnostic and testing equipment. it has spent on to $2 billion and acquisitions over the past five years. the benetton company has agreed to by its spanish competitor that would create the world's largest operator of toll roads. the price tag was $17.9 billion. that is your bloomberg business flash. still ahead, four years, democrats and republicans have admitted the u.s. tax code needs to be rewritten and we will look at the biggest sticking points. how are things looking in european trading? mark: it's little changed an

this is bloomberg. ♪ ♪ julia: this is bloomberg markets.ptions insight with julie hyman. with me today is kevin lack of talk about the volatility going on. we are getting to the end of earnings isn't now. what tends to happen to volatility at this juncture. >> it tends to perk up, and everything starts trading on macro. companies are in blackout. we can't say things, then the tail end of earnings season brings the next one. so macro will move it around. the next six months, we have last six months we have seen it be 7%. over the last few days it has been around three. we get a doubling of that, what will be the impact because markets will trade in tandem as sector correlations go to one. the last time we had a big volatility bet, that was august 2015. we had a tech handle on the fix, then in the beginning of august -- by the 21, the vix broke. above 50. he could not be calculated. it can come back in spurts. julie: or not. >> absolutely. julie: everyone has been waiting for it. >> if you think about it, companies can manage earnings. they c

this is bloomberg. ♪ this is "bloomberg markets." i am vonnie quinn.escenzi talks about populism and the paradox in his book. he said it is failing to reverse what led to the rise and threatens to worsen conditions to the extent populism fails to produce faster growth. for more on what that means for rates, policy, and people in general, tony crescenzi joins me now. i guess that is a paradox, primarily because people sometimes do not vote their best interests. we have a president now who says this will not happen this time around. i am for the people and the economy will grow. >> populists have been successful in ushering change. you see that in parts of europe and the united states. they voted in individuals who lack experience and are independent-minded so they are going up against the political establishment. even with the republican party, president trump has difficulty pushing through health care reform even with a majority because there are actions within the party that made it difficult. it will be difficult with entrenched establishments and th

this is bloomberg. -- iran for the latest, next. this is bloomberg. ♪ "bloomberg: mar kets."n's president seeking a second term as voters head to the polls today. isning us now from iran bloomberg markets middle east yousef -- has been a busy night for you i am sure. the polls have been extended for to the massive turnout. does this benefit the challenger or the president? point was 72% for reference last time. we just got back from a polling station, and queues were going back as far as the eye could see. to, it is not even enough of a deadline tonight. 50 million eligible iranian voters passionately expressing their views, and all of these conversations happening on the sidelines of the voting. people want to engage and make a change, either way. two very different paths. clerics,e conservative and the current iranian is the architect of this nuclear deal with the u.s.. he is the first to engage with the west, the more liberal side of things. that binary?really is it so binary of a reform? is he really as reformist as we would hope from someone who is more part of the estab

this is bloomberg. vonnie: coming up, the tug-of-war between the united states and opec about oil supply levers -- levels continues. this is bloomberg. ♪ ♪ live from london, i am mark barton. vonnie: and in new york, i am vonnie quinn. this is "bloomberg markets." time for futures in focus. tug-of-war has kept the price from being sustained in either direction. is todd horwitz. do we get a breakout at some point this year? >> i think at some point you will see a breakout in both directions. i think the first will be to the downside. i think you will see that we are trying to continue to make our way down. we made it under 44, and i think we will make one more push to 40. it could be a bit of a rally back up to 48 or 50. there is not a lot of reaction to opec or any trouble they are having in the middle east because we have so much supply right here without affecting anyone in the green environment world. vonnie: it is back about 700 for the first time in a long time. talk to me about what gold is doing

this is bloomberg. ♪ ♪ is "bloomberg surveillance."b cuts are on the way at ford. the automaker plans to cut 10% of its staff worldwide. the "wall street journal" is mostly salaried employee. ceo mark fields is under pressure to increase profits. in europe, car sales fell the most last month in four years. sales dropped 6.8%. one reason is that there were two fewer selling days than last year. that is your bloomberg business flash. francine: thank you. angela merkel and emmanuel macron have vowed to work together to strengthen the european union. that as the german chancellor hosted the newly elected french president on his first full day at the job. >> we each represent the interests of our own countries. the interests of germany are naturally tied to the interests of france. germany will only do well if europe will do well. europe will only do well if there is a strong france. i am, as well as the german government, committed to that. francine: we are with moretz kraemer, fromtz s&p, and antonio barroso from teneo. macron went to tal

this is "bloomberg markets." moments away from release of weekly inventory data for crude oil in the united states along with natural gas and other metrics. users looking for a drop of 2.2 million barrels. let's go straight to julie hyman to see how the numbers are coming in. julie: we are seeing a much larger drop than estimated in inventories, 5.20 5 million barrels. declineillion barrels in inventories, larger than estimated by bloomberg viewers, also larger than what was reported by an industry group last night. oil taking a leg higher on these headlines coming out. also we saw a reduction in distillate inventories and gasoline inventories. gasoline, 150,000 barrels. 1.3 millionabout barrels. of thegetting some demanded numbers as well, taking up for gasoline, remaining pretty steady for crude oil. about 2% now that we see these larger than estimated drop in supplies. we got the world's largest oil trader cautioning against a demand islly, saying proving to be tricky, not just shale supply ish hsal expanding

mark: i am mark barton, this is "bloomberg markets," on bloomberg television. peek at equity markets, where one hour away from the end of the friday session. today we are unchanged, over the week, unchanged. heading for a third week, he will be by the smallest margins. that would be the best run since january the 13th. the ftse up by 131% in germany and france today -- one third of 1% in germany and france today. economic growth out of germany accelerating to the strongest pace in a year. mild weather boosting construction, exports benefiting from that. we will see how euro is faring today. dublin,ing to get to we're joined by the chicago fed president charles evans. >> mark, thank you. we have the president of the chicago fed, mr. charles evans. cast, welcome to bloomberg and welcome to dublin. the weather hasn't january favors. since you have been speaking this afternoon, with got another 1.9%, the breakevens are quiteing to dip aggressively. is this the goodbye to inflation? where that too harsh? mr. evans: i haven't had a chance to look at the most recent i

this is bloomberg. >> live from bloomberg's world headquarters. scarlett: we are 30 minutes away from the close of trading. stocks little changed as we await the long weekend. >> what did you miss? over -- ands tensions over trade hangover the g summit -- jacek summit. in washington, jared kushner is drawing the attention of the russian inquiry. one of the issues confronting the president when he can -- returns next week. the central bank getting to warnings. at where the major averages stand. abigail doolittle is standing by. abigail: happy friday. heading into the close, not a lot happening for u.s. stocks. where we see grain for the s&p 500 and nasdaq, that means new record highs, it will be interesting to see if they can close this way. it is fractional. we're looking at big weekly gains for the major averages all up well more than 1%. one stock taking a nice pop on .he day is nvidia softbank is considering boosting , 4.9 percent so below this closure level, investors like the fact that they are considering becoming a more official investor wh

this is bloomberg. ♪ ♪ vonnie: this is bloomberg markets.ive from the opec news seeerence, we have you can that is alexander novak speaking, but earlier someone said the nine-month extension commentsal. a few more , turkmenistan and egypt will join the deal, but they are working to institutionalize the non-opec countries in the future. perhaps they will join the meeting on the 30th in november. so we have a nine-month , and theyto cut cost say it is optimal. let's go back to donald trump and radel. his first visit to the nato headquarters. he called for nato to be more engaged in fighting global terrorism and said members must contribute their fair share. joining us is the bureau chief. i am sure they were prepared for president trump to talk about sharing and paying their fair share. it is a theme around europe. did he overdo it? this was assuring the strength of the members, and it is not really going very well. on one hand the e.u. leaders including the present -- president are not on the same page with the new u.s. administration in area

this is bloomberg. ♪ this is "bloomberg markets." .nnie quinn david einhorn has two of the most frustrating trades in the market, a short on tesla and along on gm, both in need of a catalyst. tesla is up more than 40% this year. joining us for more is david welsh. what are david einhorn and greenlight capital, what are their positions in gm in tesla right now? gm, one of3.6% of the 5-6 largest shareholders. it is short position in tesla is smaller, but he did call it out to green light shareholders saying he puts it in a bushel of stocks that are overblown, overhyped, and need something to take the air out of these and eventually they will come down. he did not elaborate on win. he did take a shot saying he thinks tesla bullish shareholders are hypnotized by elon musk and his vision and eventually the shorts were shown to be right. vonnie: many would agree. let's listen to what he had to say, because he did speak about tesla on the may 3 earnings call , "the enthusiasm for tesla is reminiscent of the 2000.com com bubble." is that going

this is bloomberg. ♪ vonnie: this is bloomberg markets. the trump economy.ersation with roger stone was really interesting. i want to mention some of the headlines we're getting from the sean spicer breathing. he declined to say if president trump taped conversations with james comey and the tweets fix for itself. say if thereined to were recording devices in the oval office. kevin: again, it seems they're not on the same page. vonnie: he is continuing to speak and get questions from many members of the media. on the accuracy of the briefings, we work hard to do what we can, is what he said. said, aon before him lot of the time they are just trying to keep up with the president. kevin: i think it is a broader strategy that president trump has tried to attack the media. w case of sean spicer returning to the podium and white house officials who are questioning the rollout of the viability of it -- question of it. think we also saw with with general mcmaster taking behind the podium w just, less than a week ago went on his first international trip. they are tr

this is bloomberg. ♪ ♪ live from bloomberg world headquarters, i am vonnie quinn.m mark barton with the european close. the financial industry is bracing for impact as theresa may moves forward with plans for what many are saying is hard brexit. andpoke about the costs implications of the looming divorce. >> brexit means brexit. >> that is theresa may's line. >> that is the point. markets have to realize there associatedsequences with brexit, and those consequences will probably be much stronger and go much deeper than anticipated or many people would like it to be. the reality we are experiencing today where the single currency of the eurozone is one of the european continent, 40% to 70% of trading done in london, is fine. where the finances in wall street, the technology in palo hollywood,ndustry in in a world where london has decided to move away from the andicit federal ambition strong regulatory convergence is an anomaly. things will be different going forward. >> well that fragmentation result in higher costs, and will that be ok? >> there will be costs assoc

bloomberg technology is live on bloomberg television and radio.gestok at the stories in these rights now. american airlines has increased the outlook of the key revenue gauge this quarter. they say agency mile flown will rise as much as five and have -- 5.5% over last year. lower fares and lower fuel prices. pimco forecasts the rise of a 10 year field -- yield. --an interview, mark people mark expects the economy to do " much better. ." burger king is looking to get its food out faster. burger king has been testing global payments since december, and a national rollout could happen within months. a mobile ordering app would help them compete with mcdonald's, which plans on launching a payment app in the fourth quarter. that is your bloomberg business flash update. coming up, there's a spring sale next week and a test of the market last year. the auction house is projecting $670 million in sales and sweet. that is more than have to come from the contemporary evening sail alone. we would hear from the head next. this is bloomberg. ♪ vonnie: this is

this is bloomberg. taylor: this is bloomberg surveillance. let's get to bloomberg business flash.ip design aimed at cracking a strong hold on the server market. the company says the new chip will increase performance by 50%. its predecessor is at the heart of many of the world's smart phones. a.r.m. is a division of softbank. the first private airline in vietnam is in talks to become the country's first company to list shares overseas. they say they've been approached by exchanging in london, hong kong and singapore. the airline will meet with officials in new york this week. viet jet controls 40% of the vietnam domestic airline market. lauren host says when it comes to building a casino in japan he'd choose osaka. he is one of the heavyweights seeking entry after lawmakers voted to open the country to casino gambling. >> i'm not so sure. i've been to tokyo probably 200 times in my life. i'm not sure tokyo needs an integrated resort. tokyo by itself is amazing. it's like when people ask me, do you think new york or london needs an integrated resort. no, you don't need an integrate

is bloomberg. u.k.r seeing their real earnings fall in the first quarter for the first time in 2 years, despite unemployment dropping to its lowest in four decades. now, regular pay adjusted for inflation fell 0.2%. nominal earnings slow to growth of 2.1%. the unemployment rate falling 4.6%, lower since 1975. these figures certain to fuel the debate over living standards in britain prepared for the snap election on june 8. real earnings is still below the level before the financial crisis. the recover over the last two years is going into reverse as a weak pound pushes up prices. a big piece of data. francine: thank you so much. that is your data. we look at wage growth and what that means for the inflation forecast. let's get back to brussels and a big banking conference. later on i will speak to the aribas, firstnp p of all, trying to understand financial stability and where europe nan brussels goes from here. i'm pleased to be joined by francesco papadia, the former director general of the european c

this is "bloomberg markets."est texas crude is hovering around $51 ahead of the opec meeting tomorrow in vienna. they seem to be building for a >> don't forget, we also have the eai number coming out here shortly. we can get reaction from that as well. we have seen a pretty tight range as we anticipate the number going into the meeting tomorrow morning. where do you anticipate going once it settles if we indeed accept there is going to be a continuation of production cuts? what should be the range? what is the correct price? want?o saudis >> i think they want it north of $50. we're seeing the trend back over $50. short-term, it looks a little bearish because you have a series of lower highs and lower lows there does seem to be support on the moving average. right now the saudis are keeping it somewhere north of 50. vonnie: what about the idea and the white house budget request yesterday that the strategic petroleum reserve might be sold off? to the oil market it is not that big of a deal but in the cme, whether y

this is bloomberg. ♪ vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn.ark: from london, i am mark barton, counting you down to the european close in roughly 14 minutes. deutsche's chief executive john cryan spoke in a conference in new york, saying europe to focus on its neighbors to the east after angela merkel signaled that relations with the u.s. have changed. >> she gave one of the most important pieces -- speeches she has ever given. that was aspeech real keynote address, following the g7, in which she made a clarion call for europe to start looking after itself. mark: he spoke about the proper potential of asia for deutsche's and the outlook. joining us now is stephen iran lenders.s the german it is interesting he made such a big issue of angela merkel's weekend speech where she talked about the developing relationship for the better or worse between europe and the united states. correct.s absolutely i firstly was surprised he made such a big deal out of it. it is a big deal for europe but it is not clear how much of the but it is for deutsche bank

this is bloomberg. mark?ark: coming up, the bti crude try to recover -- wti crude try to be cover. in november.o cut this is bloomberg. ♪ ♪ mark: live from london, i'm mark barton. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." week.llapsing 8% this bloomberg, ed moores explains oil's nomadic drop. expectations is technical in some parts. in the market got bearish. we had a record amount of open interest. it was all shorts coming into the market. evans.oining us is tim all technicals, tim? : oil technicals are playing a really, but i this agreement those comments. oil fundamentals play a rolling as well. vonnie: in what sense? tim: it is simple mathematics. if you look at the lot -- a lot to findrojections made balance over time, those projections have been proven to be wrong. or demandk at growth projections, that was assuming we would continue to see strong demand out of the u.s., but especially continued strong demand out of china. obviously, chinese numbers have been slow as of late

this is bloomberg. "bloomberg technology" is next. ♪ emily: i'm emily chang.his is "bloomberg technology." it is decision time on climate change. will the u.s. backed out of the landmark paris accord -- back out of the landmark paris accord? war hits home with apple set to roll out smart speakers. cupertino is rolling -- playing catch-up. cyborgs arrive at morgan stanley to back up its 16,000 financial advisors, but are they an upgrade over the robo-advisors? we will discuss. the paris climate accord could be in trouble. it was just teed of years ago nearly 200 nations, including the u.s. -- just two years ago nearly 200 nations, including the united states, agreed to reduce fossil fuel emissions. president obama: this is the moment we finally determined we would save our planet. the fact that our nation shares a sense of urgency about this growinge and a realization that it is within our power to do something about it. emily: now, president trump is considering whether to keep the u.s. in the landmark paris accord, but could be leaning towards the next it --

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this is bloomberg. ♪ vonnie: this is bloomberg markets.s time for the deals report did we do the m&a business on the biggest players on those deals. joining us is alex. alex: we may find out in the next 20 or hours or so if softbank will scrap its plan to merge with oneweb. this was a deal that announced back in february. it comes with a hefty price tag. they have more than $14 billion in debt. you can take a look at this stock chart. see that spike in february? that's when the merger was announced. you can see the stock prices come down quite a bit since then. where is covering almost the stock was trading back in january, well before the deal was announced in -- announced. vonnie: is game over? thinking market is not highly of the deal. the major reason is bond holders are not content with the offer that softbank has put forward. they were offering $.74 on the dollar. goinglders been back-and-forth, thinking of there is a counter proposal that will work? they were hoping softbank would up its offer. that has not happened yet. the deadlin

this is bloomberg. ♪ vonnie: this is bloomberg markets. i am vonnie quinn.: i am mark barton london. let's get to south africa because we will focus on the nation now, president zuma is facing pressure to resign following a cabinet reshuffling and march, which led to the country's credit rating being cut to junk status. then you finance minister malusi gigaba joins us from the world economic forum. thank you for joining us. do you think president zuma well last through his term in 2019? i think the president is stand determined in 2019. as a democratic country, we untilthe president and they change their minds, the president will remain the president. this morning, the president said this is a democratic country and people have the right to protest. those who protest must continue protesting but we have a country to run and an economy to build and we're going to focus on doing business for the government. minister, some voices in the business community have been critical of the president following that cabinet reshuffle and the ratings downgrade that took pl

this is bloomberg. manus: thank you.tandard chartered generates the bulk of its earnings from emerging markets. with south asia making close to ir income. great to you this morning. you are down at the 2017 asean economic forum. hey, manus, good morning. 600% growth ofat countries in this part of the world. ma.s get views from anna which market in south and southeast asia in particular are priority markets for you? anna: no secret, gdp growth is ate, asean is looking [inaudible] so the growth is everywhere. what is more exciting than the absolute domestic market growth is the growth in connectivity. trade grew at 6% over the last decade, and a lot of focus on connected infrastructure. looking over the next decade, we begin to see those cross-country railroad, bridges, highways, shipping routes. we open up even more connectivity and for us it is those connections that are more exciting. >> the same with emerging markets. if there is risk investors tend to pull their money out. what is the biggest risk? anna: we can no lon

this is bloomberg. ♪ >> welcome to bloomberg businessweek.s issue, we will talk about cyprus, a hotbed russian laundering. not just money but people, as well. 2017 is shaping up to be the biggest year yet for the u.s. harrowing -- heroin industry. all of that head on bloomberg's this week. -- businessweek. ♪ we here with editor-in-chief meghan markle. i want to do something

this is bloomberg. ♪ ♪ this is bloomberg surveillance. let's get the bloomberg business flash. offers to employees. the offer includes a $34,000 sweetener. ammerce bank wants to cut large number of jobs over the next years. the london stock exchange group, the price $685 million. akzonobel has a stronger hand in takeover talks. they avoided a legal challenge from elliott management aimed at removing their chairman. elliott has been pushing them to engage in talks with ppg industries. they have projected all three offers. that is the bloomberg business flash. tom: how about a report right now? i am looking at euro, maybe more than anything, yen comes in stronger, churning your a little the euro10 days ago, was stronger and it is time for 125 downo take it from to 123.85. look at euro-sterling for american viewers. it is a little strange, that is how francine things about people every day. francine: every day, minute and hour. we have a donald trump tweet saying we have -- early, about 6:40, we have a massive trade deficit with gemini, plus, they pay far less than they should on

this is bloomberg. ♪ francine: this is bloomberg surveillance.a in london with tom keene in new york. we spoke about brexit and the election coming up and the pound. we also need to look at another possible problem child, italy's government contacting investors to help fund the rescue of the banks. the administration needs permission from the ecb for a state backed recapitalization which means it must resolve privately. meanwhile, fox of an autumn election have seen it spread in recent days. left it back to erik nielsen from unicredit. in italy.two issues one is early elections, but also the fact that we still have not recapped these the nation banks. and if you start bailing in the italian moms and pops that could have repercussions. >> that won't happen. you cannot imagine ailing in privates. it could be different, but i think this is a done deal. you are not going to bail in moms and pops. that is not happening. i think the really curious thing is where the commission is spent on this. , wastory earlier today that a leak on purpose? was that s

this is bloomberg. ♪ >> this is bloomberg "surveillance".rprised increase in irst quarter profits for hsbc. earnings rose 12%. bloomberg spoke with hsbc's c.f.o. >> i would be a happy santa ana i could call 2017 now. we have seen 3% to 4% revenue growth over 2017. a very good start in the first quarter. that's the guidance that we are holding for the market over the course of the next few days. societe generale has paid a billion dollars to settle a dispute with a an investment authority. it led to a surprise drop in socgen's first quarter profit. they deny that the payment made was a bribe to secure investment deals. tesla ensuring they are on track to begin production. the c.e.o. is burning through cash to bring the car to market. the model 3 will be their most affordable car and production is expected to start in july. and that's your bloomberg business flash. tom? francine? francine: thank you so much. series of lies. these are words mack ron used to describe his rival -- macron used to describe le pen. she fired back saying macron repre

this is "bloomberg best."our weekly review of the most important analysis from bloomberg television around the world. to global politics dominated a big part of the week. starting with france's election -- presidential vote on sunday. >> the polls are now closed in france. so, it looks like we have a macron win. the pollsters are not filling it out. we think of it is likely a 65% vote or somewhere around that number for mr. macron. >> i am watching these amazing scenes. i am watching european flags being waived. how long will be before i can buy a eurobond? >> if it is up to emmanuel it is one of the cornerstones of his program. it is to give europe its own budget. it is a step in the right direction for europe. definitely. make emmanuelle -- emmanu macron in the second round of voting. >> i would like to say a few words to those who voted for marine le pen today. don't boo them, they have expressed their anger, the disarray, their disbelief at times, i respect those as well. but i will do everything i can in

this is bloomberg. ♪ francine: this is bloomberg surveillance.lix steel and david westin. what are you most looking for two? jonathan: regulatory overhaul, i think that is the big takeaway with their interview with the president of the united states. will it be a breaking up with the banks or something like the u.k. version? that with skyto bridge. river,am stuck on the and the only place to go is a new radio program, drivetime evening in london. how are you surviving this ordeal? jonathan: i am loving it. it is wall street meets the square-mile. remarkable me, the resilience of the u.k. economy, never mind the drama with politics, the manufacture day-to-day at a three-year high. tom: you see how this british accent has slotted right back in when he does his radio program? francine: i saw that. see why. the candidates for the french presidency are laying out races for the future of the country. in an interview, micron mocked pen's plan.cked le >> the national front party has not changed. it carries hatred and carries it concretely. that is what i

this is bloomberg. ♪ joe: bloomberg tech has been in boston all week.han 20 robotics companies that employ nearly 5000 people and generate one point $6 billion in revenue. here is a closer look at mass robotics, a nonprofit dedicated to fostering young, boston-base robotic startups and keeping that talent in town. this autonomous drawing belongs to american robotics, one of the handful of startups based here. massachusetts.n >> the nonprofit started in 2014 and opened his .5,000-square-foot facility >> a start up escalator is a new concept. this model has been very but when it comes to hardware, there is no organization there to help take a validated prototype into a finished product. >> products in the works include gear components and 3-d printers. according to the director, that number will grow. >> right now, we have six companies and two more companies moving in, and we can grow to about 30 companies in this space, and, hopefully, as we grow within the building, we will be able to house more than 100 companies. >> founded by leaders in the , startu