nejra: laurence mutkin from bnp paribas.oming up, the race to become the european commission's next leaders gather in brussels. ♪ manus: you are looking at a map of the world, the equity markets in:30 in dubai, 6:30 a.m. the united kingdom. you can see the green at the top, push and pull factors going on. the market seems to be more heartened by the japan-u.s. china-u.s.n than the conversation. when you see this relief rally, you ask have we tentatively protracted long discussion between the u.s. and china? but no further escalation. that is the question i have in my mind. nejra: if you look at u.s. equity markets, u.s. futures last week in equity trading is a long way away. they were closed for memorial day yesterday, but a third weekly decline for u.s. equities. for its thirdg monthly drop in 2019, the and tenure treasury yield moving relentlessly lower. storieshere are other regarding the dollar and what happens next, if you go into escalators -- escalated protracted trade war, does that reduce your growth and rate cuts w

bnp paribas bounces back. emerges from the doldrums after a tricky fourth quarter. >> fixed income is bearing the fruit of the changes we have applied. created digitalized and venture capital markets to really help people, investors, we brought them together and we for the first of that. anna: powell stands firm carried the fed chair brushing aside pressure for a rate cut, saying the central bank's next move could be in either direction. lots to talk about this morning. the earnings and also the fed. and oil, actually. i've got a chart of brent crude the past three days. we have come down pretty dramatically and at one point last week, we were above $75. the questionking of a lot of guests this morning, if we have seen the highs already for oil. if they are behind us in 2019, trading at 71.80. we were struggling for direction this morning. we have futures indicating a negative open in the u.k. but a positive open here in germany. dax .1% carried ftse futures, down .25%. markets, the those merchants within the

lemierre, chairman of bnp paribas, thank you very much for your time. let's catch up on the first reduce. here's kayla -- the first word news. here's kailey leinz. kailey: president trump told fox news he is very happy with the trade war. "we are taking in billions of dollars. china is obviously not very happy like us." -- imf has projected the stages being set for a possible legal tug-of-war over julian assange between the u.s. and sweden. swedish authorities have issued a request for a detention order. they want him for a rape investigation. he is currently jailed in the u.k. for jumping bail. ssanges. wants a extradited for allegedly attending to hack into a government computer. u.k. prime minister theresa may is looking for ways to keep her brexit deal alive. she is trying to win the support of opposition labour party members, but could lead some members of her cabinet to quit. eliminate jobs anund the world as part of $11 billion restructuring project, about 10% of the workforce. they will shrink the company management structure by 20%. global news

manus: speaking with the bnp paribas cfo. this is ing. other than -- on the net income, the beat had come in higher than the market had expected. billion below their market's estimate of 1.6. net interest income 3.48. a little that ahead and 675, that is a bit lighter on its feet in the market had estimated. net income is a mess at 1.1 2 billion. the market had tensile than 1.15. let's ask a man who knows about the numbers and the performance. cfo of ing. great to have you with us. welcome to daybreak. we will make a religion out of this for you. talk me through the numbers. my first take is where lighter on some of the estimates, net interest income is a beat. your feet and net income is lighter than the market estimated. how would you describe this quarter? >> thank you. very nice to be on your show. we are pleased with results of the challenging environment we operate in. what we are pleased about is our commercial momentum in the first quarter. 150 thousandher primary customers. we have robust loan growth of almost 9 billion euros in

bnp. -- of bnpnce hunter paribas and constance hunter.h the direct effects and the indirect effects. the direct effects are the impact from higher prices that u.s. customers pay on these goods that have tariffs. the cost of increasing these goods and possibly raising inflation overall not because of increased demand, but because of this shock to the system. that is the first effect. the second effect is the indirect, which i thing is much more significant. we seen the market reaction. we seen the reaction in the shape of the yield curve. we seen the reaction in the vix. we did analysis of this when this all started. , ife get a shock to the vix it sustains at 25 for a quarter, you get a market impact on baa bond threats. the cost of capital for u.s. companies goes up across the board when you have an elevated fix. -- an elevated vix. that to me is the most pernicious impact. lisa: we were talking earlier about whether or not's market -- whether or not markets have baked in optimism for a break deal. mark: what we saw over the last week wa

shares of socgen have been trailing those of larger rival bnp paribas this year, suggesting shareholdersas' profits in the first quarter beat analysts‘ expectations by about 10% despite failing to meet rising us demand due to supply chain problems. another of president trump's picks for a board seat on the us federal reserve has dropped out of the running. stephen moore, a vocal critic of the central bank, had himself faced mounting criticism over political bias and sexist comments about women. here's michelle fleury. two nominees 01’ names were being floated to join the board of governors in the federal reserve, america's central bank, there was a lot of controversy about these two figures. one of them was herman cain, who dropped out about a month ago, withdrew himself. this was because if you think back to the time when he was running for president himself, there were allegations of sexual harassment. those started to be dredged up again and i think before any of that took steam, he pulled out. in the case of stephen moore, a trump ally who has been very vocal in supporting the white

bnp paribas bouncing back. equities revenue slid more than analysts estimated.igitalized, created a joint venture capital market to help people. help investors bring them together. equity look at equity, was a big impact by what we saw in the market at the end of 2018. customers took some time to come back into the market. the firstompare quarter with the gradual pickup toward a strong first quarter, that is the evolution you get. hsbc shares have jumped in hong kong after the bank delivered first quarter profits that beat analyst estimates. managed toate -- moderate cost growth. we are continuing to invest substantially. year.not a full >> dots bank -- danske bank says interest income will be lower in 20192018. money laundering case requires attention. you talk about income being lower than 28 team. put some sort of proportion around that forgotten -- for guidance. >> we expected it to be in the volumenge, given we had growth to offset the costs. being lowerish rate for longer, we will not get the benefit from that. we are seeing funding costs have signifi

. >> bnp paribas bouncing back. a bid in fixed income.quities revenue slid more than the analysts had estimated. >> we have digitalized, created a joint venture capital market to really help people with issuance. we helped bring investors together. when we look at equity, equity was a big impact by what we saw in the market at the end of 2018. customers took some time to come back into the market. when you compare the first quarter with the gradual pickup toward a strong first quarter, that is the evolution you get. >> hsbc shares have jumped in hong kong after the bank delivered first quarter profits comf that comfortably beat analyst estimates. >> we managed to moderate cost growth. we are continuing to invest substantially. investment in spain was up 15% year-over-year. a very good start in one quarter. sprinteased with the 6% we added today. >> danske bank says interest income will be lower in 2019 than 2018. denmark's biggest bank reported net income below estimates and the estonia money laundering case requires attention. you talk a

. >>> and bnp paribas has reported a rise in net income that exceeded expectations, seeing revenue for period growth thanks to international financial services and corporate banking units. bnp also reiterated its 2020 targets. my colleague juliana is in paris this morning what does the bank say how to drive these improved numbers >> reporter: it was, indeed, a decent set of results, phil. certainly in contrast to q4 when hit by the extreme market conditions and their trading revenues were down significantly. now this quarter, cib, which houses bnp's market business, feksed income was the main bright point equity performance other hand was weaker on the cost front, key issue for investors, they're also showing signs bringing it down to 75.8% this quarter, down from over 76% in the same period last year and generating a positive jobs effect, putting it all together. really their transformation plan is beginning to bear fruit now on their 2020 targets, as you mentioned, they have reiterated those remember, of course, this is after they cut those targets just a quarter ago this is keeping

bnp paribas is bucking the slump in trading.osting a surprise jump in the first quarter, revenue rising 23%. total revenue was better than expected but income came up short. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. francine: thank you so much. u.k., theresahe may and her political rival jeremy corbyn are signaling they may be closer to a deal on brexit. theresa may is going to wrap up talks next week with or without an agreement. the bank of england minutes and economic forecast are due later on. kennedy ands simon iain stealey still with us. it is the first time we heard from governor carney about the delay in brexit and what that means for interest rate hikes or cuts. are we expecting him to keep that possibility alive? simon: they continue to be cautious and have moved it out to october on brexit. they will have to adjust their forecast for that. backdrop, and the talk that we might see policymakers start pushing for a hike, micha

. >> bnp paribas bouncing back.aid in fixed income -- -- equities revenue slid more than analysts estimated. -- it is due to the changes we have applied. so we have digitalized, created a joint venture capital market to help people. help investors by bringing them together, and we have seen the fruits of that. when we look at equity, equity was a bit impacted by what we saw in the market at the end of 2018. meaning that customers took some time to come back into the market, and there was a gradual pickup in the first quarter. and when you compare the first quarter with the gradual pickup towards a strong strong first quarter, that is the evolution you get. >> hsbc shares have jumped in hong kong after the bank delivered first quarter profits that beat analyst estimates. >> we managed to moderate cost growth. we are continuing to invest substantially. investment span was up 15% year on year. so it is not a full year. very good start and one quarter. pleased with the course. danske bank says net interest income will b

bnp paribas is an ex-dividend story.rted by percentage, you would see metals down quite substantially. we talked about that just before the start of trade, they are cutting from many facilities across europe. that seems to be a very interesting thing to think about when it comes to global growth. let's get a first word news update. anna.nks, up tog could be gearing use if the dominance of rare earth in its trade war with the u.s.. that is according to commentary from china. president xi jinping visited a rare earth plans earlier this that, fueling speculation the strategic material could be recognized. the differences of opinion over who should lead the european union are starting to become apparent. lots of names have been batted about for the key position of commission president. andrew weber was a favored candidate, but he has failed to gain traction. that opens the door for a compromise choice like michelle barnier, he is being put forward by france. >> my party is to have the most qualified people. those who share t

we also know that other banks have -- that have a position in germany like santander, bnp paribas have time lying commerzbank because of their position here will make a cross-border deal less difficult. people tell us that unicredit and ing are interested in the possibility of a bid. manus: the cfo would not outright say no last week when we were chatting to the ing cfo. great to see you, good luck with the interview later in the day. matt miller, our man in berlin. give you just give up quick let's have a look at european equity futures, a couple of different bolstering and entering rem's coming. there is the euro stoxx 50. i tv, talk about advertising revenue getting battered by 6%, down by 6%. -- the earnings season has not been as torture does everyone thought it would be so far. is a: yeah, and there mixed picture. in terms of how u.s. futures are set up, you're seeing them dead flat on the dow and s&p. equities or the branch of the selloff. the breath of the selloff that was stunning. it was mainly tech and industrials. was down. s&p we will talk markets and focus in on the outlo

sort of surprised market, seeing a little bit of stability here. , allean banks up 4/10 thanks to bnp paribasg the competition. mix dollar whipped yesterday on the fed's announcement. youhad some answers sing -- had some interesting leg which coming out of the boe, less hawkish than markets had thought -- interesting language coming out of the boe, less hawkish than markets had thought. now the question is brexit and what they do with stronger growth. david: they didn't change their position. alix: exactly. mandel of jp morgan asset management is here with us. benjamin: i think there is a neutral,of what is which has been plaguing all of the central banks, and which will define how far the bank of eglin has to go. alix: let's see if he answers -- the bank of england has to go. alix: let's see if he answers that as governor mark carney begins his own news conference. of this was happening against a backdrop of considerable trade and financial pressures in the economy. outlook wasrm subdued and the data expected to be unusually volatile and potentially less informative than usual. but provided

balld shing of emp perry will do everything to -- bnp paribas will do everything to avoid that. the bid yesterday on lyft. that was ugly. paul: i think people were trading out of lyft. they have been doing that -- tom: institutions that need cash, sell this dog, let the duopoly go to the winner. paul: and you the u.s., dutch in the u.s., it is clearly a duopoly. lyft is focused on north america but uber is everywhere, a global platform, that is what they are trying to sell. tom: it is a great selling point, but the bid will sink just like lyft if they do not nail the extrapolation. the vector of their path to process -- profit, is it the same as lyft? same,it is generally the but they have other businesses. they have a food delivery business and they are trying to say they are a platform, not just ridesharing. investors look at this ridesharing business and do not see a path to profitability like with facebook and google and others. francine: what is your take on these valuations? the tech sector has potential but feels expensive. edmund: it is all about narrative, not at all ab

-- francine:t bmp if you look at emp perry bought compared to society general -- bnp paribas comparedo different banks with different portfolios and fortunes. we heard in the last 10 minutes or so, i know we were looking at pound and maybe what it would labour move euro-pound, said the cross party brexit talks have gone on with the conservatives as far as they can. we are not helping or expecting an agreement between the two main parties. that means theresa may less of a chance of staying on. yesterday she was taken by some senior conservative leaders, pushing her to step down after june. this is brexit. this is u.k. politics and if one thing is certain, they change almost day today. boris johnson said he will challenge theresa may, so she puts one final vote to june, and we early will go to a leadership challenge to see who the next conservative pm is. tom: we have sterling weakness today. a chart that takes us back to john major, may be the breaking point within the deep litmus paper of the market. the success of the 1990's and the early part of last decade, the ugliness of the fina

only bnp paribas turned and a a better turned in fixed income performance. is the new fight between italy and eu in the making? to prime minister is willing breach budget limits to boost jobs. his remarks have triggered market turmoil it's -- turbulence. meanwhile, good news for germany as the economy is bouncing back. it grew 0.4% in line with estimates. that is despite a manufacturing slump that continues to plague the nation. still with us is our guest from credit suisse. do you worry that the european central banks don't have the tools to deal with the next downturn? >> there are limitations on the number of central banks that are running with negative interest rate. the international bank is also to be mentioned as well. at the same time, the policy mix is not one made by monetary policy. speaking about germany, there is a bit of firing power on the fiscal policy side. you see valuee do in europe? are they cheap compared to some of their asian counterparts? or is there still a lot of unknown? arcus were preparing between a possible fight between italy a

coming up, the bnp paribas chairman.se and whether european banks can fight the u.s. for some market share. that interview at 10:00 a.m. in new york, 3:00 p.m. in london. this is bloomberg. ♪ tom: i will not mince words -- fed presidents speak differently in asia then they do in the united states. mr. bullard out of asia will be more than interesting. francine lacqua in london, tom keene in new york. with our first word news, here is kailey leinz. kailey: the president is signaling he is in no rush to get back to trade talks with china. the president told fox news he is very happy with the trade war. "we are taking and billions of dollars. china is obviously not doing well like us." the president also says that chinese economy will not surpass the u.s.'s while he is in office. deutsche bank's anti-laundering unit reportedly sought suspicious activity in a counseling to to donald trump and jared kushner. 2017,appened in 2016 and according to the "new york times," and the staffers wanted to refer the matter to a federal wa