nanette from credit suisse stays with us.ll ask for more about the opportunities out there in the market. -- markets. up next, we talk travel and holidays. ♪ tom: -- francine: disappointing data in china's economy before president trump's latest terrorist talks dark in the latest -- terrace -- tariff talks dark in the outlook -- darken the outlook. returns toeconomy growth despite a slump in manufacturing. morning, everyone. a good afternoon if you are watching from asia. this is "bloomberg surveillance." let's check what is moving your markets. let's check the downside today, down nearly 3%. this is the first quarter net income falling 11%. the resiliency in trade revenue not helping stocks today. they plan to give a fresh set of financial targets. upside.the it was a clean beat across the top line. performance for the lender. erragamo, upat f nearly 10%. the biggest surge we have seen in seven years. itot of analysts are saying may be a turning point for the italian shoemaker. they are also pointing to positive performance

jonathan golub with us from credit suisse.act oculus anymore -- until it dies. are we close to the "until it does" licks in? -- clicks in? jonathan: i do not think so. but first of all, it is a big input cost for the economy and the impact on the whole economy part of the market, but also, it is a huge impact on the energy sector, which is something close to 10% or, in aggregate on the market. tom: where are you on the animal spirit of hydrocarbons after anadarko and the occidental play. play? jonathan: it is interesting. when i go to canada, all they talk about is the price of oil and energy. in the u.s., i am hearing a lot less conversation on energy and other areas. francine: but how does it play to inflation? should central banks around the world still be targeting 2%? jonathan: on that issue -- no. first of all, the 2% number is probably way too high. if you look at the fed's preferred measure of inflation, to 1.7%.t is closer it seems as if 2% is too far away from reality. here's what we will see -- we will see inflation

credit suisse is down. credit suisse is ex dividend. a few big ex dividend companies.neral you will not see a lot of movement and markets and equity indexes before the nonfarm payrolls number. in might see very little terms of trading until later on in the session. that is why markets are flat after a mixed session in asia. investors turn their focus to the earnings in the u.s. jobs report. joining us now timothy graf, head of emea macro strategy, state street bank & trust. let me ask you, what do you expect from the jobs number, and how important it is this month? timothy: it is always important, always watched. it has been in a steady range the last couple of years. the main component to look at is earnings and wage growth. in line with disappointments and inflation over the past couple months, if earnings growth is rolling over, maybe the fed's on hold stance comes a little more dovish again. it does not seem likely that will be the case with one number. it would take a big miss on earnings to change the trend. as long as wages are growing, and the payrolls does not

james sweeney of credit suisse is still with us. this trade war, do we need to get used to it for the next four to five years? hugo: entirely, we believe it is the new normal. any kind of trade deal signed in the next couple of months is just some kind of detente in a long going -- ongoing strategic conflict. the two superpowers of the world are at loggerheads, technological, sociological, and political. we think it continues. francine: to what point? does it break? does someone blink first? hugo: the pressures are quite acute on china. hot money flows because liquidity tightening in the world where growth is slowing. there is pressure on china to get a deal done. trump needs a deal. there is pressure to get a deal done but the rhetoric is the people have to back down from entrenched conditions. up the tariffsts on rare earth, it is another rat -- another notch and that rhetoric. some kind of backtracking at the g20, but we are not certain it happens beyond that. us, just rogers with trying to figure out where to be and not to be in

$1000000000.00 debt scandal ex minister allegedly signed off on loans used to pay bribes form of credit suisse bankers are implicated one has pleaded guilty u.s. authorities are also prosecuting those involved. and the london stock exchange is on an african road show it wants to boost its 115 african listings officials are visiting the kenyan capital nairobi and wonder in angola and other big cities the l.s.e. has the most african listings outside the continent and it plans to stay ahead already has ships with some of africa's leading stock markets including the johannesburg stock exchange and i jury is strange. i stay in business i think. entering the conflict zone. close. to the boldest move to try to get the military to come over to their side my guess is the fear. it is the most annoying most representative to the venezuelan a position leader and is so stiff that president one flight what happens next the conflicts of justice in 60 minutes. i. am not proud of they will not succeed in defining a shadow not succeed in taking the people off the streets and because we have tired of this dictat

$1000000000.00 debt scandal its minister allegedly signed off on loans used to pay bribes former credit suisse bankers are implicated one has pleaded guilty u.s. authorities are also prosecuting those involved. and the london stock exchange is on an african road show it wants to boost its 115 african listings officials are visiting the kenyan capital nairobi a wonder in angola and other big cities the l.s.e. has the most african listings outside the continent and it plans to stay ahead of where he has ships with some of africa's leading stock markets including the johannesburg stock exchange and i jury is exchange. i was doing business with. i'm not laughing at the germans because sometimes i am but less than nothing with the 10 men think deep into the german culture. ridiculous drama. thus. it's all that. no time rachel join me to meet the gentleman from the gulf coast district on the other jews a very tender. point of long drawn out. and even probably legendary printed rolls told close. it doesn't affect one in 6 people in detroit. told me british strategy has really tried to understand a ve

chief equities strategist at credit suisse. always a pleasure. to the home depot businessmen, and friend of bloomberg, he has a new book called -- in defense of capitalism. he joins bloomberg's tom keene. >> thank you so much. ken langone, is on the cover, the boy with a shovel from a long-term ago. ok, biga book which -- deal, another guy comes out with a book about his life but. it is done exceedingly well. it is out on paperback. i want to talk about humility. you are giving a zillion dollars away, but mario on 20 six st is cutll doing your hair $17 billion it is a simple life. what do you say to the extravagances you see today out of so many? >> it is out of my best it is none of my business. you don't want to give money to charity, that is your call. i choose to share my good fortune. i can tell you right now that i thought making it was fun. i am having so much more fun giving it away to the those kids respond to the statement that they longer have to pay tuition to go to medical school. i felt like a king. i felt like, holy smokes, maybe m

equity strategist at credit suisse could to see you both.s what is we have been reduced to the tidbits on the wire services. how are we supposed to trade in this environment. >> first of all it's impossible for any of us us here to figure out whether we will get this i think the important thing is, you know, first of all we're going to get a deal eventually we want to get the best -- >> how do you know >> listen, there's no way that -- that we're going to break down trade between us and china. what we want to get is a deal that's going to be most useful to the united states we want to see things on intellectual property, not to simply get something like soybean orders which makes it look like window dressing to this if that means a president needs to stomp his feet if ek get more, the market may not like it but doesn't mean we're not better off for it. >> how much pain do you think the president is ready to withstand? >> ask me what equity investors are willing to withstand, almost nothing. as far as the president is concerned, i think that

joining me on set in new york is the head of oil and gas at credit suisse.ur spotlight today is geopolitical tensions in the middle east. here what we know. the uss abraham lincoln and b-52 bombers are making their way to the strait of hormouz. two saudi vessels were sabotaged sunday, in waters off the uae. two days later, pumping stations connected with the pipeline in saudi arabia were hit by drones. the saudis blame it on rebels in yemen. president trump responded to comments about sending troops into the region. president trump would i do that? :absolutely. but we have no plans for that. hopefully, we will not plan for that. if we did it, we would send a hell of a lot more troops than that. alix: you have oil jumping on that news. is this a legit threat? ellen: i think what we are seeing now is tensions are rising in the middle east between iran and saudi arabia. in terms of the actual threat to oil supplies, the events we saw, the sabotage of the ships and drone attack on the pipeline, didn't early do anything to oil production or oil transportation. th

tyson foods was upgraded to outperform from neutral at credit suisse and it cites the higher beef, aprices. the stock rose 2.5% to $81.57. capital one was upgraded t buy to hold from jefferies with the analyst expecting that stock to benefit froimproving efficiencies. the price15 target now the stock gained about 2% tod to $89.26 and valero was upgraded overweight to neutral j.p. morgan. the analyst expects the stock to outperform the rest of there ning sector. the price target $105 and the stock rose 3% to $82.96. still ahead, the biggest challenge facing main street small business ♪ ♪ >>> boeing reported a drop in deliveries in april. the compa handed over 24% fewer planes in the first four months othe year when compared to 2018. the reported decline was not surprising. the grounding of its popular 737 max aircraft halted deliveries for a second month. much like boeing, apple finds itself caught in the middle of the trade war with china. tariffs are costingpa the comny and just how big those costs could grow. john fort has the pdetails. >>ntil now the risk was for apple's actual sa

also here with me is the head of oil and gas at credit suisse.ur spotlight, geopolitical tensions in the middle east. here what we know. uss abraham lincoln and b-52 bombers are making their way to the strait of hormouz. sunday, two saudi vessels were sabotaged headwaters -- in waters off the uae. two days later, pumping stations connected with the pipeline in saudi arabia were hit by drones. the saudi's blame it on rebels in yemen. president trump to comments about sending troops into the region. >> would i do that? absolutely, but we have no plans for that. hopefully, we will not plan for that. if we did it, we would send a hell of a lot more troops than that. alix: we have oil jumping on that news. is this a legit threat? >> i think what we are seeing now is tensions are rising in the middle east between iran and saudi arabia. in terms of the actual threat to oil supplies, the events we saw, the sabotage of the ships and drone attack on the pipeline, didn't early do anything to oil production or oil transportation. that pipeline was barely out

starting off with some clouds a und, but again, credit suisse will be partly to mostly sunny by latern the day. there's a tiny chance for a r raindrop otwo near the chesapeake bay primarily and to the eastern shore. that's about it. tomorrow, clear skies overnight, could have some patchy fog first thing tomorrow. then 100% chance for tuesday. the front sags down. into wednesday, i think the cooler air and a wedge willet up. as a result, wednesday part to mostly cloudy, not -- partly it on mostly cloudy, not a rain chance. we'll have to wait until thursday or friday before rain chances really ramp back p. so becoming sunny and 77 today. 82 tomorrow. cloudy skies, the easterly breeze on wednesday. high only around 72. then on thursday, mid 70s. a better chance of some showers ound town on thursday. most likely day for rain this week, though, will be friday.rt we'll staalking about the weekend in the next half hour. now let's go over to first 4 traffic. >>> good morning, chuck. beltway, inner loop at central avenue, still have the left lane blocked. rest of the beltway no matter where yo

and dish network was upgraded to neutral from underperform at credit swis credit suisse. price target now is $34. shares finished right a that level of $34.71. >>> still ahead, what did it know and when did it know it? it's a question that has been asked before and now it is being asked about boeing. tlnceps are newts that boeing may have waited several months before notifying airlines and regators that there was a problem with a safety alert system on the 737 max. that news and the increased ssade tensions between the u.s. and china ped that stock into n. today's session. phil lebeau has more tonight. >> shortly after boeing devered the first 737 max in 2017, theompany discovered a safety alert on the plane was not working. the alert involved the angle of attackto indi. a vein on each side of the max nose that measures the flit angle and alerts pilots if the plane is in danger of stalling.d or some airlines, if the data from those indicators do not match up, there is a disagree alert to notify pilots in the cockpit. bong now admits it waited months until shortly after th

by the way, they have been doing this to some degree, credit suisse in particular. way too low. times talking about 6, 7 earnings, growing earnings. they are growing their capital positions, generating excess capital, and the market seems do not want anything to do with them. francine: how do you feel about your stakes in u.k. banks? happy,we are very notwithstanding what is happening in brexit, which is a crime. u.k. economy could be growing at 2% to 3%. people are not making economic decisions, because of the uncertainty surrounding brexit. the politicians are in malpractice mode. they are preventing the economy from growing to its potential. even despite this, the u.k. banks are still hanging in quite well. we do not see elevated long losses or a collapse in earnings or loan growth. andee capital buildup growing capital in rbs and lloyds, contained costs. francine: are you modeling a jeremy corbyn government and what that would mean for u.k. banks? include theave to possibility of a jeremy corbyn government. if you put something like that equal,it means all else

, aant to bring in imran khan longtime investment banker at credit suisse. it has been a wild.while. i am sure you have been thinking a lot about what you wanted to do next. why this? >> e-commerce is now only 9% of the total retail market. i believe over the next decade, 30%-40% of all retail will be online. there are not that many consumer choices when you look for products or having a better experience, or a better way to discover products. we think there is a lot of opportunity to innovate. if you look at markets like china where 25% of the market is there is more in china than in the u.s.. i think there is a better way. emily: you obviously focus on a younger audience at chat -- focused on a younger audience at snap. is there something you learned there? >> if you look at millennials, they like to do more research before they buy things. they also care about , the economy, sustainability. they want to buy sustainable products. where do you go? we have a lot of different ways to discover products. on our platform, we will have around 200 different ways to find products. it'

that created a credit suisse. 35 days of shutdown. everyone was in debt. everyone needed to go to their credit cards and get money out or cash out some credit to pay bills. that has nothing to do with being frivolous with your credit or buying a steak dinner on a friday. a lot of people have this conception of how we are children. supplynomy is based on and demand. you take someone's money of course the credit cards are going to be getting all this money, all this debt. we are hung out to dry by government. by the same token government should be involved. government bailed out banks in 2008. loand an $800 billion given to the five big banks because they were too big to fail. we are too big to fail. it's almost a trillion dollars in credit card debt. what if all america said we are not going to pay one more penny of your credit card bills? that would be too big to fail for companies. government should be involved and bernie sanders does have a point. they should put cap on it. my question is i have an american express card and i am retired. i'm 60. i got a l

saying it will take bold k's developments to support the stock at these levels, whereas credit suisses is priced perfection. this is not necessarily going to play out. valuation is a concern. also competition. this is a rapidly growing space, the meat substitute space, and there are entrants in the market that will compete with beyond meat. growth is the mantra. vonnie: yes. there could be a fast food deal in the future. who could be a candidate? kailey: mcdonald's is what jeffries is writing for a multitude of reason. the former mcdonald's ceo is on the board of beyond meat and impossible foods is having some issues meeting demand. beyond meat can make up for the supply. burger king rolled out the impossible whopper, and mcdonald's is going to want to have a rival offer. jeffries is saying if beyond meat can capture 6% of u.s. beef offerings, that could bring in $285 million, adding about $25 a share should that mcdonald's type happen -- tie up happen. a fast fooding chain is likely to become a customer beyond meat. vonnie: they would have to have separate cookers? kailey: i would im

still with us, patrick from credit suisse and bloomberg's sarah ponczek. basis, a pure valuation we have seen markets overall from the bottom at the end of last year. is that cause for concern? are they stretched? patrick: we think the market is undervalued. a lot of times, people look at pe as a way to gauge the value of the market. investors are trying to understand how much cash they are generating, how much they can return to the individual shareholder. pe does not accurately capture it. if you look at an alternative metric like price per cash flow, they are under the long-term historical averages. what happens if the valuation of the dollar continues to strengthen? patrick: the dollar is a very interesting dynamic. higher dollar is a slight headwind for earnings but it is positive for multiples. money tends to flow into the united states as the dollar strengthens. it goes into large-cap companies. what we typically see is, in particular, via -- valuations move higher as the dollar strengthens. caroline: a company that, after its ipo, finally getting s

turnaround stories so far this year joining us now is patrick paul, senior equity strategist at credit suisset it into bitcoin. no, i'm kidding. where are there now into equities any pockets of value, especially for our viewers, that maybe nervous and rightfully so about the ultimate outcome of this trade fight >> we think the trade fight is providing an opportunity for investors to get into the market on this short dip. is the discussion something worth fighting for if we are trying to safeguard the intellectual sprorpt, then absolutely yes that's a bye b part zblan issue. fits really just a matter of shifting global balanced payments, then i don't think it's really an outcome that's going to materially move the needle if we're safeguarding the property and from the u.s., then it's a great outcome it's going to be a great outcome. >> a great outcome for the market why is this going to be good are for the equity markets >> longer term the concern is whether or not china is going to continue to force us to transfer our profits to them from some of the investments that we make. about 85% of the

issues -- i mean look, this credit suisse piece, justifying lower tp is it that toilet paper? supposed to be pt? price target they put it tp they have it wrong >> target price. >> target price. oh, i easily confused when it comes to kraft heinz but david, they are saying that the s.e.c. could actually -- might be real. and this is not the s.e.c. the one that really plays hardball >> no, this has been a disaster. obviously sparks here and there -- >> target price is 26. >> all right, i did want to get to a quick faber report. >> you like velveeta >> not really. but i like kraft singles >> stuff comes in handy. >> wanted to talk about cbs and viacom yesterday they had a board meeting. of course we've been talking about the prospect of talks between these two companies. yet they aren't yet talking. >> they're not >> not yet there was a board meeting yesterday. and the board has not yet begun the conversations with viacom. but they are expected to begin within the next couple of weeks let's say. >> so they will talk >> they have been saying it for some time. but not seeing any roa

launching the company, he was the chief strategy officer at snap and a longtime investment banker at credit suisserce is 9% of the retail market. over the next decade, 30-40% of all retail will be online. there are not that many consumer choices when you are looking at buying branded product. so we think there is a lot of opportunity to innovate. if you look at markets like china, where 25% of the market is e-commerce, there are many more players in china than in the u.s. i think that is a better way to bring joy to the consumer mind. emily: you obviously focus on a younger audience. is there something you learned there in terms of the needs that were not being met in e-commerce? >> absolutely. millennials like to do more research before they buy something. they also care about responsibility when it comes to shopping. they care about economy. they care about sustainability. the consumer as an example, if you want to buy a sustainable product, where do you go? if you look at our platform, we have 200 different attributes. so i am real excited to bring a new way of shopping to consumers. in the mar

without having pre-sold all their production and coles also in iew after the stock was upgraded by credit suisseolworth's. london climb above the average for the price target. shares surge. heads up, mirvac has been suspended in sydney. reporting that the company is planning a $750 million aussie dollar be restructured as an institutional placement. much.anks very let's get a little more on what we should be watching under way ints asia. adam, as we've been talking sliding, nd yields a further aversion of the key curve. is this a trend or has all priced in s been and out? >> essentially, paul, there is nothing stopping this bond rally. focus over he the last 24 hours has been the u.s. with the treasuries closed ating been the start but this is clearly a global phenomenon. it's showing you that the reach for yield is reaching levels we've not seen in a long time. a look at this chart. this is the value of egative debt in the world that's now to 10.7 trillion so getting back toward those that we had a few years ago. yeah, as you said, reaching ew levels in certain parts of the curve, the three-mon

. >> i'm going to wear it tomorrow >> credit suisse named it a top pick in the pipeline and that was pete here pointed out in his fast pitch back in january. >> now there's not a lot of growth in revenue right now. you look at earnings and all of the rest of that, but when you look at the pipeline and you see druggings in the pipeline by 2022 that will likely make it to market, at least they think so, 19 of them are in the blockbuster category that really says a lot to me >> pfizer's actually down 2% since that call, but pete given the predictions -- >> i still like it going forward. from a valuation standpoint pfizer looks great and it would give you great dividend deal right now, but it's all about the pipeline it's had a great 2018 and it's been sluggish so far this year i anticipate that and i still think the stock goes higher and i'll wait because i'm patient with pfizer. >> with both pete and guy betting on a healthcare recovery, tim had to join in with a healthcare heavy hitter of his own and he's stepping up to the plate >> i am stepping up to the plate and johnson a& johnson

jonathan golub joins us from credit suisse and alicia levine from mellon investment management think we're going to have a little debate here, jonathan you're still very bullish on this market. not worried about the risk of a china trade war now that trump has escalated it with a few tweets >> first with the markets telling you today bit fact it rallied back the way it did is that this is not likely to happen, this is perhaps his opportunity to put himself at a little bit of an advantage as he brings this thing to a close the market does not believe that we're going to have a tariff war. >> but john, before we get the pushback from alicia, you're bullish because you think people are focused too much on the simple valuation metric of price to earnings and you dive into some other metrics and it looks like there's more up side. >> i'm smiling because that means you read the note we put out this morning, which is cool. it's really interesting that over the last decade companies have gone with these capital business structures where they're more toward services and the like and therefore

. >> i will say credit suisse just for balance initiating neutral and the $75 price target with a $67rice tag and i can tell you if you enjoyed beyond meat you will enjoy a rather large movement one way or another. >> nobody? nothing? you don't have a comment about that >> you have a comment about mine, and then you've got that for more options action, you can check out the full show, 5:30 on a friday i've got an emoji in my head check out bitcoin. cooling off a bit today after a red-hot holiday weekend and what's behind a comeback and is it a better option and we'll talk alt-coins live at the nasdaq, stick around ♪ ♪♪ ♪♪ ♪♪ your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. >>> so far it's shaping up to be a hot summer for bitcoin, just inches from hi

shares of kraft heinz are falling again after a warning from credit suisse, lowering its price targetssanderson says a cold wetsprin in the u.s. has put upward pressure on prices that's helping the case there. we're still showing kraft heinz still down 3%. shares of beyond meat which are lower now, bup more than 7% earlier today to touch $105 a share. that stock is up 290% since its ethiop ipo may 2nd. let's get over to sue herera for a cnbc news update. >> hello everyone. here is what's happening at this hour jared kushner and special envoy jason green blat greeted by israeli prime minister netanyahu as they arrive for a meeting to discuss the trump administration's long-awaited peace plan. >> the security of israel is something that's critical to the relationship between america and israel and also very important to the president in his heart. we appreciate your effort to strengthen the relationship between our two countries. it's never been stronger we're very excited about all the potential that lies ahead. >> leaders of arab and muslim states gathering in saudi arabia to discuss r

credit suisse saying it is the time to buy into those markets. elsewhere the same story.e seen a lot of weakness coming through into the chinese market which is tracking trade. the nikkei finished lower on a stronger yen and australia's market off by .51%. in the currency markets, the on sure you on weaker, down by .1 of 1%. and a strongan level so showing the markets are pushing back against that. we have seen the yield on australia's 10-year note hit a record low. it is down five basis points. [indiscernible] and the aussie dollar coming under pressure in the wake of trade concerns, although it is not the worst-performing g10 currencies today. that goes to the british pound, that title. thank you very much. juliette saly in singapore with the markets. the treasury market has rallied after the minutes of the fed last policy meeting were published. officials feel that patient approach is best. dani burger has the details. saw yesterday and the minutes, fed officials are in no hurry to move interest rates and in those notes, they said in inflation pressures are transitory.

getting hit as retail may be one of the biggest victims of china tariff hikes and some may be safe credit suisselower tariff exposure like lulu lemon, nike and target may be able to withstand the pressure which ones are you looking at, karen? >> i like target they're doing the right things and it did hurt them a little bit and i don't think a lot. the other one that i am long and has been painful the last couple of weeks is capri holdings while i think they do business in china, they sell in china they've been shifting their sourcing away from china and a lot of it towards italy. so i think this one has really been excessively hit, but you know, in a bad take like this. by the way, some options action there i did see. not really my area of expertise as these guys, but their there was big call buying there today. i like it. it was overdone and not trading well in this take. >> you mentioned nike before >> nike is one of them and also lulu lemon, and i owned it a little bit before a pitch where i got slaughtered and this thing just continues to make its way higher, mel. i don't think people fully

great results from credit suisse, barclays surprised with the best fixed income trading results.than wall street. considering they are implementing cost cuts, they are on the right track. obviously, ing and commerzbank, deutsche bank, has that bid unfolded, matt spoke to deutsche bank -- what are the reverberations of the moment? the assumption there will be another creditor on commerzbank? ksenia: right. that has been the drag on the banking sector. on --e positive results deutsche bank has been dragging the index down because of all the issues and the failed merger talks. what i am hearing from my sources, what investors are speculating about is a possible merger between commerzbank and ing. this is pure speculation. there is no inside information. there is this desire among investors for consolidation among weaker european banks. manus: let's see if there is a cross-border activity. some of the ecb has suggested there is a need. thank you very much. our bloomberg european stocks reporter with the latest round up. the cfo of the world's largest carmaker, you don't want to miss

launching the company, he was the chief strategy officer at snap and a longtime investment banker at credit suisseis 9% of the overall retail market. i believe that over the next decade, 30% to 40% of all retail will be online. and if you look at there are not , that many consumer choices when you look for buying branded products or having a better experience, a better way to discover products. so we think there is a lot of opportunity to innovate. if you look at markets like china, for example, where 25% of the market is e-commerce, there are many more players in china compared to in the u.s. so i think that is a better way to bring joy to the consumer mind when they are trying to buy things. emily: you obviously focus on a younger audience at snap. is there something you learned there in terms of the needs that wasn't being met in e-commerce? imran: absolutely. i think if you look at millennials, they like to do more research before they buy something. they also care about responsibility in terms of shopping. they care about economy. they care about sustainability. i think you as a consumer, for

credit suisse's chief equity derivatives strategist is with us now.the indexes have come back to unchanged, and the nasdaq is holding onto a loss of one point 25%. was there any indication in derivatives that suggested we would make up for today's losses? marketshe scheme in the throughout this year was complacency. we highlighted as late as last week emerging market volatility was at a one year low. week'scan say is the headlines, markets were not expecting it. given the price action, i would say investors are still fairly complacent and fairly optimistic around risks of trade. caroline: we haven't seen enough buying of protection, from your perspective? mandy: we have seen more. emerging-market vols have spiked, we have seen emerging volatility in vix options, which is a big change versus q4 of last year, so vix options this -- hit over two point this weekend over 2.4 million contracts. scarlet: we are not going to get a resolution to this next trade the -- to this trade war in next day or week. what does this look like going forward as people repri

compared 2018 to 2019, areas where the gender pay gap was worsening, hsbc, ubs, .arclays, credit suissed pr for them. >> no, it is not. david: they now require banks to report. last year was really bad. you would think the ceo would say i want those numbers to be better. the fact that they are worse, i don't know how that happens. alix: it is difficult to nudge people in these higher-paying positions. one organization is pushing them to publish their median gender pay gap. those proposals have not succeeded, but it is looking at whether they are getting into the higher paying positions. alix: they have a harder time climbing the corporate ladder. you can't see them more if they are not in the positions. it is a whole different cultural issue. it is a little bit different. david: you would think they would care about it and make it better. alix: it takes a while for corporate culture. david: you are very patient today. alix: i am, right? david: it is great. many thanks for being here. alix: coming up, you will be talking. at six months to agree to a deal to limit car imports into the u.s

the stock has been downgraded by goldman sachs and credit suisse. , the mosts up .4% since june 2016it -- first half cash profits. brexit uncertainty adding to those woes. this one is set for the biggest drop since 2014 after they reported net cash outflows of $143 billion but other parts of the business did fare better. now looking across, getting optimism, we had this one jumping 11.5%, climbing with which are finding support under wesfarmers waiting thisey agreed to buy lithium player for $545 million after the proposals to buy linus. thatcher rising after tuesday's earnings report that beat estimates. it was overweight by j.p. morgan. 4.9%g innotek is climbing this morning. in h investment does see earnings improving because of expectations for greater smartphone shipments at the firm's major north american -- story in the u.s. continues to be inflation. we are moving further from the 2% target and investors along with president trump continue to see a rate cut as logical. jay powell doesn't agree. our policy editor kathleen hays is here with his logic. i learned transitory is no

coming up on the open, i'm joined by mark connors, credit suisse global head of risk advisory as we seemips scenario. dollar-yen trends flat. this is bloomberg. ♪ alix: from new york city for our viewers worldwide, i'm alix steel. jonathan ferro is off today. the countdown to the open starts right now. ♪ coming up, president trump sticks with tough talk on china. investors piling into bonds with yields in the u.s. hitting multiyear lows. the fight for who will lead the european union kicks off. fiat chrysler renault? fiat makes a bid for the french car company. now is up to the politicians. in the markets, we were looking at a risk off day, now we are paring those losses. as an p futures flat on the day. euro-dollar also flat. now is about the aussie dollar. you're still seeing solid buying in the bond market. yields down three basis points. same in germany, multi-year low. crude talking that trend. we start with our top story and that is

jpmorgan and credit suisse joined morgan stanley in upgrading the stock after the company narrowed accordinglyurther. today, we have chinese industrial profits plus april trade data from hong kong. continuing with flat export growth seen for april compared to a 1.2% drop that was clocked in march. keeping an eye out for the data in hong kong. paul. paul: thanks very much. before we hand over to bloomberg markets: asia, let's get a quick check on how markets are trading right now. it is really only new zealand this week. markets stronger. we have the nikkei higher by almost .5% and the cost to buy .25%. the coffee up by -- kospi up by .25%. they received a takeover tgreement from eq infrastructure. shares in focus, up 21%. shery. ofry: let's get a check futures trading at the moment. not a lot of movement when it comes to u.s. futures. we are in a long weekend in the u.s. for memorial day. on thursday, we did get out preholiday gains. the taiex futures, up .2%. industrials profit growth, coming out this morning, and of course, all of the latest headlines out of the european union, not to mentio

joining us for the hour is the chief economic advisor at credit suisse and patrick armstrong, chief investment officer at clarida wealth -- plurimi wealth. if you look at the tools china has to retaliate, they are powerful. will they ever use them? >> definitely. they are going to find trumps pressure points. soybeans, his base in the u.s. and the farmers who produce them. trump has talked about pushing 10 year yields higher and will have an impact on the economy. these are pressure points they will put if they need to. they're still a window of 5-7 days with the goods are already on ships and gives a small window with there is some negotiation. francine: what they actually devalue the yuan? >> i think that would be a last resort. that, inbe considered the u.s., there seems to be perception the u.s. imports more , that china has more to lose, but that is not necessarily so. the imports china sources are much more easily sourced somewhere else, like soybeans. whereas the chinese exports into the u.s. are much more diversified. and when we look at the numbers , u.s. andast month imports -- u.s.

there is one bank that we are still waiting for, credit suisse that has not titled the case. is finally behind those banks. i was going to ask about other penalties. how many more fines are we expecting on other things? >> we are looking at some new cartels. we are looking at bond cartels, there is one for ssa's and eurozone. the banks have only recently been charged. we saw one in december and one a couple months ago. we saw one in options trading. there are new scenes out there. the shockwave we saw with the , those big fines do seem to the past. >> october 26 of the last year these regulators were crushed by a federal jury in new york. they were found to not guilty. is this extortion? are the banks paying the fines to the regulators go away/ >> these are settlements so the banks have agreed to pay the fine. the traders have not been -- were acquitted. >> the traders were acquitted, right? >> yes. by a new york jury. >> wait a minute. if the traders were acquitted what did the banks do wrong? the accusation here is a little different because it is about collusion. it is a c

credit suisse is looking at the volume of s&p versus -- it looks options have more volume relative toactually have some dry powder, that they can put it to work in the vix in a way they couldn't do in december. theyso likely means that are still looking for upside, because a lot of people are still under invested in that market. they missed that early rally and don't want to give up their stock positions. it's a predictive in terms of volume, but how much is it predictive in terms of direction? >> well, if you have the upside there is a pretty decent potential that things can at least hold better than they might have in december when people really had to get out of position, and you could have some upside potential from their. >> all right, chris. how do you up that? bring your a game. [laughter] i'm actually relying on yet another cross asset contribution. cormac pulled together this chart, which illustrates something that morgan stanley have put in their midyear markets outlook. that is one of the major valuation gaps that are concerning them at this point. if you look this year, th

cisco on fire this morning, morgan stanley wells fargo credit suisse first bon raising targets on thats well. company saying they don't see much effect from higher tariffs in china trade surprising has been considered high-tech hardware play combating -- combating trade by raising prices administrativing contract manufacturing out of china. >> bill de blasio in new york city mayor joining crowded 2020 democratic presidential field slamming he corporate america we get into it in exthen stand standing by for data he building permits housing starts in 10 minutes' time all numbers right here. ♪ dear tech, dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. are you working for all of us, or just a few of us? can we build ai without bias? ai that fights bias? ai that helps us see the bias in ourselves? we need tech that helps people understand each other. that understands my business. dear tech, dear tech, dear tech, dear tech, let's champion data rights as human rights. let's use block

that created a credit suisse. 35 days of shutdown. everyone was in debt. d to go to their credit cards and get money out or cash out some credit to pay bills. that has nothing to do with being frivolous with your credit or buying a steak dinner on a friday. a lot of people have this conception of how we are children. supplynomy is based on and demand. you take someone's money of course the credit cards are going to be getting all this money, all this debt. we are hung out to dry by government. by the same token government should be involved. government bailed out banks in 2008. loand an $800 billion given to the five big banks because they were too big to fail. we are too big to fail. it's almost a trillion dollars in credit card debt. what if all america said we are not going to pay one more penny of your credit card bills? that would be too big to fail for companies. government should be involved and bernie sanders does have a point. they should put cap on it. my question is i have an american express card and i am retired. i'm 60. i got a letter from ame

i want to talk china tariffs because according to credit suisse, 40% to 42% of your merchandise comesmposed, you've got to be worried, right? >> thank you, stuart. thank you for having me on today. it's a great day at dollar tree and our family dollar banners. we did announce top line revenue beat, same store sales beat, and eps is at the high end but the tariff piece obviously has our focus. we import about 40% at dollar tree. about half of that at family dollar. let me give a little credit to our merchants through our first lists of one, two and three. we have overcome the tariff impact so far. i think as we talk about tariffs, the question is does list four come into play or not. stuart: going forward, we have the possibility of 25% tariffs being added on to another, what, $350 billion worth of chinese goods coming in here. that's in the future. already today, at the port of long beach, california, they are imposing those 25% tariffs on stuff coming in from china. are you going to eat all of that increase or are you going to pass it along to consumers? >> keep in mind, for dollar t

nuclear option but would that do more harm than good joining us now, equity derivative strategist at credit suisseequity analyst at douglas c. lane and associates sirat is also a cnbc contributor. guest host kevin o'leary is also with us. i don't know who wants to start on this. but i mean, there was a while, just for someone to hold large balances, you actually got back less than you actually gave them, with negative interest rates. china's got a lot of money that it needs to put into investments. can you even imagine passing or not -- getting 2.45% and looking elsewhere for their cash balances >> i don't think selling treasuries is what they're going to do, but what's interesting is that throughout this year, investors have consistently underpriced the risk around trade and around potential escalation so, one of the things we've pointed out about two weeks ago was that actually emerging market volatility had fallen to a one-year low, and that was despite emerging market credit spreads rising, despite a stronger dollar, despite obviously ongoing trade negotiations so this tells you investors have

fast-food service chain will be a customer by the end of the year analyst teams like goldman, credit suisse shares of apple, though, are kind of moving slightly positive around 115,000 shares per premarket. analysts at citi have cut their price target to $205 from $220 and kept their buy rating, citing among other things an anticipated slowdown in demand for iphones in china, given those confirmed u.s./china trade tensions but overall, they remain bullish on the growing services business at apple and then there are shares of southwest airlines, which are down fractionally on very thin premarket trading volume analysts at ener core on friday downgraded shares to in line from outperform while maintaining their $60 price target, citing its greater relative reliance on the currently grounded boeing 737 max jet. and we'll end with a quick check of what's happening with drug stocks johnson & johnson, pfizer, eli lilly among those stocks started with coverage by goldman sachs with buy ratings they say that while volatility from pricing and drug policy headlines ahead of next year's elections could

everything you expect to be stronger between the yen and the suisse is stronger, even commodity currencies, chinese currency weaker, creditts trading accordingly, i think everything is very consistent so far. >> your best trade ideas in that context what trend continues >> i think it is going to be very little gain without additional pain unfortunately. i think pain in terms of the economic data, pain in terms of the financial markets is what is going to drive this bargain really, drive the two parties to the table. so things are going to get worse before they get better just strong opinion on that. it is more of the the same as far as a lot of what's going on in the fx side probably weaken a little bit against the yen, but be stronger against pretty much everything it is going to be very, very interesting to see whether dollar china starts to break higher what the chinese do there will be very instrumental in terms of how destabilizing these markets will become. they hold it below 7, a little bit more comfortable, shall we say, than if we start breaking through 7. >> so, jim, can you buy the dips in this stock market on