the dax down 1.5%. wirecard is the worst performer in the dax, falling 8.7%.paris, the cac 40 is down .8% and in italy the ftse is down .75%. the stoxx 600 for may was down 5.7%. hsbc leading their. -- leading there. this is bloomberg. ♪ vonnie: let's check in on bloomberg first word news. here is courtney donohoe. president trump is escalating the fight with mexico over the border. the president says he will impose a 5% tariff on mexico unless they stop the flow of illegal immigration. the duties could rise to as much as 25%. crossanufactured items the border several times while being assembled. china appears to be on the verge of striking back at the u.s. for blacklisting huawei. state radio says beijing will establish a list of unreliable entities. those are foreign companies, individuals, and organization china says damage the interest of domestic businesses. china says more will be announced soon. president trump and turkey's president have agreed to form a study group on russia's f-4 one missile defense system. turkey wants to buy the system and the u.s.

for the month, the dax is the only one in the green. 100

we see the dax do well. 4/10 of 1%.p by euro dollar trading up by 1/10 of 1%. let's take a look at what is coming out of the u.s. they are sensationally stronger. great growth, no inflation. that is delivered right there. the euro is climbing back. i am fascinated to see what he asked the -- rich has to say. by 6/10 of 1% when it comes to the contract. are stillrkets digesting all the data that came out this morning and through the week and the fact that we are into a new month and it happens to bay may -- to be may. we are the same as we were all week. we are at 2.53% on the 10 year yields. the s&p 500 continues to grind higher, adding to its gains. earnings, although it is very oversold, so this move is a one dollar 71 game. expedia down 2.8%. coming up in a few minutes, we are speaking with stanford professor taylor rule. --e from the conference at university. guy: the data on both sides of the atlantic. joining us now is head of equity and strategy, peter got very -- barbie. i want to start with you. today we thought decent cpi numbers. the surprise indexes

the dax is trading up.d is having a solid day but siemens is by far the biggest points gainer in the dax. the numbers from the company earlier and the decision to split out the power unit adding impetus to this deconstruction we are seeing of the conglomerate that is siemens. the dax trading higher, up .9%. the cac 40 having a solid day. what is interesting is when you dig into the details of stocks like lvmh which are adding points to the market move, they have been lower. the luxury sector more broadly and lvmh in particular that the trade narrative would get more negative. lvmh pumping back, maybe just below the surface there are indications the market is turning more positive on the trade story. let's take a look the sector breakdown to give you a look at what is going on. technology not a big sector in europe but it is having gains today. media is doing reasonably well despite the itv front. industrials doing well. health care trading higher. a look at the bottom of the market. some of the brakes being

the dax outperforming the rest of europe. one of the other areas of weakness in europe today is oil and oil related stocks. we did see good news coming through for shell, mainly in the gas space. really doing well on that gas line, as a result of which is looking at dividends and buybacks in the market. juste: in the u.s., we are turning negative in the s&p 500, down almost two points, but grinding higher for most of the session. under armour one of the better performers, although it is off its highs. it was the top performer in the session, up 4.2% now. margins expanded in surprised. metlife up almost 5%. the insurer coming in with a great quarter. 3m on this major deal down just a little bit, but we have been higher as well. it is a very flip-floppy day for many of the stocks between positive and negative. it shows there's a little but of trepidation out there, i believe. guy: let's get back to the barclays news we broke a little earlier on in this program. shareholders rejecting edward bramson's attempt to get onto the boa

dax .1% carried ftse futures, down .25%. markets, the those merchants within the european space has been likely and we think of urgency in asia. we have to chinese markets closed. a number of markets closed yesterday are playing catch-up today. we get a mixed picture from asia. a fairly unclear picture as to the level of risk appetite in the asian session overnight. this is the weakness in currencies. the south korean won, down .2%. interesting to think about what the fed was trying to signal yesterday and what it ended up signaling. mean to be more hawkish than the market had expected? that is how markets interpreted the commentary from jay powell. lots to talk about on that but also some trade headlines. we couldia reporting see progress on trade, a deal as early as next friday. we will keep an eye on that. that is the overnight session in asia. mark cudmore, our markets live managing editor in singapore. a lot has been written about the fed already had what jay powell said yesterday and what he meant to communicate. where

dax unchanged and cac softer. indicesome smaller opening up, the 5100 up 0.2%.

the dax outperforming the rest of europe.

andfutures have come down, dax futures are little changed. we are not saying a lot of movement in the index picture now, and that is typical ahead of jobs numbers and these big numbers come out. fors go to olivia hows first word news. pulled outmoore has of the running for the federal reserve board. president trump says he decided to which all himself. he was all in for the central dok and said he would only it if trump asked him to. >> i am not concerned about this. if we can steer the discussion away from things i wrote 25 years ago and more towards what with fed policy and how to create growth and stable prices, i will win a big majority. battling toay is get the allies to believe her country can be trusted. allianceers of the have clamped down on huawaei. does not want anyone to see his tax returns, but one group has had a look through. a team from deutsche bank who has had access since 2012. this was part of a fresh start in their banking relationship that had soured after the financial crisis. it entered into litigation. facebook banned

the dax up .9%.s a positive month for thanks to --dex deciding to spin off its elevator unit instead of splitting in two. 40 up .4%. luxury names helping their. the ftse 100. a meager gain. it is still ending the week on a positive note for today, having lost percentage points along with the other major indices during the week. let's move to the u.s. we have stocks lower in the united states. a handful in the dow are higher, but the s&p is down at 2830 and the gaining index is down .4%. it is uber everybody is watching. we are waiting for uber to begin trading. we have a special guest with us. you analyze some of these companies, the newer ipo's. give us an overview of what you do. >> arc focuses on disruptive innovation. i cover autonomous cars and 3-d printing. vonnie: of the universe that you look at, uber would be part of that universe. you think it is overvalued. give us some of the challenges you see. right now it looks like it might open below its ipo price. tasha: we think the future is auton

the dax in germany up more than .5%. the cac 40 up .5%.lower, being dragged down by some of the luxury stocks and some of the automakers. this is bloomberg. ♪ vonnie: time for the latest bloomberg business flash. a big transaction in the wireless power industry. american tower has agreed to buy you can tower for 1.9 million. that will allow the buyer to expand in the african tower market. has --s towers -- eden towers across five continents. goldman sachs has upgraded citigroup to buy. discounting a stronger interest rate and stronger global growth. in southern, disneyland is bracing for record crowds. the park has unveiled the widely axy'sipated star wars gal edge attraction. it is the largest addition ever to the theme park that open 60 years ago. disneyland will require reservations. visitors will be able to stay for hours at galaxy edge and then asked to leave. too means there will not be many lines because you will not be able to spend too much time in line if you are only allowed to spend four hours at galaxy's edge. , the u.s. justi

the dax has turned around the most.rms of the factors we're watching in terms of performance , to julie on the ftse 100, it is this. the cable rate at 1.2657. the line has done this over the last few days. the pound has priced and more and more political tension. we are watching number 10 to see it we will get to moments today, tomorrow, or friday. theresa may under pressure to quit. that is having a lead into the european markets. certainly for the ftse 100. the ftse is up .2%. hsbc behind this. you also have a safety trade-off. you have the stocks that are also exposed to that pound trade. stuff like unilever. hsbc also fits that bill as well. the british banks are not trading lower. banks taking a shine up the european trading story. the dax has turned around. up .2%. these markets are quite as we await the fed minutes later. pausing to figure out exactly which direction we will go. the cac 40 is down, it was down more early on. if you look at the points impact, it is the oil stocks that are taking the shine off the

dax futures, down more than 1%.is a look at today. 9:00 a.m., growth data out of italy and the big news will be rome's response to the eu over news that the bloc is considering sanctions. the key concern for brussels is italy's debt load. 11:00 a.m., angela merkel welcomes the u.s. secretary of state in berlin. that is before mike pompeo heads to the netherlands to meet the dutch prime minister. german inflation data for may, expected to come in softer than last month, another warning sign for europe's biggest economy. 5:00 p.m. london time, john williams talks about monetary policy and rates at a conference celebrating the 50th anniversary of the journal of money. for the termt day of the ecb chief economist. he will be succeeded by the irish central bank head philip lane. slumped as peso has president donald trump vowed to impose a 5% tariff on goods from the southern neighbor. he said the move would stand until the country stops the flow of immigrants entering the u.s. illegally. it goes trade negotiator said the

xetra dax is catching up ftse mib is down 2.3% as well. lot of red on the screen the sectors getting hit are all of the sectors that have exposure with china. here i'm talking about auto, luxury it's getting hit it is a u.k. bank holiday so ftse 100 isn't open for trading. keep in mind when things do open up there may be a bit of a catchup there. let's talk about u.s. futures as well which is the epicenter. you can see that equities are opening up 55 points lower dow is opening up about 500 points lower as well so in line with some of the losses, europe is trading 2% weaker let's get a little bit more color about where we go from here i want to bring in brett u wiew. we were going to talk about non-farm payrolls, but in the last 24 hours there have been developments on the tariff front. how do you see this playing out? are you working on the assumption that at this point we can work on the assumption that trade talks will be held up? >> well, it has been an interesting 24 hours for sure. how i look at this situation is it is probably one o

dax futures are up more than 1%.ect investors to be buying shares in frankfurt, but really across the continent. ftse futures off about 0.8%. , ashe trade war escalates garfield reynolds pointed out, could global investors be looking to europe as one place to put their money? we will find out next. this is bloomberg. ♪ matt: we are just about a minute away from cash equity trading in europe. annmarie: good morning, matt come happy friday. let's take a look at how assets are trading. the end of the session up more than 3.5% after a volatile session with heavy volume in asia. they digest the news of new tariffs, but we are seeing them positive. iron ore, similar story. up nearly 1%. s&p futures, slightly softer, but bitcoin, breaking through 6000. is that the best play for the trade war? here is a european futures are ahead of the open. dax futures up more than 1%. cac 40 futures up as well. looking like it is going to be a positive start in the city of london. we do have the european markets opening. here you can also

the dax benefit from a respite in trading or, certainly allowing the dax to put on a little bit to theide. it was probably the outperform her. we did see the ftse move down in italy. some of the nordic markets trading stronger. in the main markets, it was the dax that delivered the best gains today. we'll carry on monitoring the markets. we are in the session firmly. if you want to carry on doing so , do not forget to tune into the cable, the radio show. you can find us on dab digital radio. jon ferro is in new york. kobe joining him here in london. you can also find him on all your bloomberg devices. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. vonnie: from new york, i am v

a really strong day in the dax.'s talk about the single stocks, what has been going on throughout the week. we have seen some really .nteresting names moving higher looking at what we have for you lined up, we need to look at a how the stoxx 600 has done this week, and b, which stocks have been driving that. i want to talk about currencies as well. the stoxx 600 is on for a negative close for the week. technicians will be paying great attention to that. where is the weakness coming through, it has been in the ers, but interestingly enough, in the technology stocks as well. it is not a massive sector, but it has some names to it. one name that stands out is ams, an apple supplier that makes sensors for apples. it had an absolute cracking week, the stock is up 33% so far this week. there are some big heavyweight stocks that have really delivered for europe. a look at the currency market, the dollar is getting a knock this afternoon, absolutely fascinating. the german ten-year as well, to give you an idea of yields. th

the dax down, the cac 40 down 1.7%. china still. lvmh is trading down.r pressure as well. from a sector point of view, let's go to the grr on the bloomberg. wrecking this down from the stoxx 600. sectors in positive territory. iliad is helping the telecom sector. elsewhere it is a sea of red. let's say you were the real losses are being crystallized. banks under pressure, hsbc, stocks like that under pressure. oil and gas trading lower. chemicals under pressure. london's bank, the miners are trading softer as well. auto parts under pressure. insurance, technology, big sectors that are important to watch carefully. very much trading lower. let's take a look at some of the single stocks. it is not all bad news. giant,the french telco up. sends and receives the mobile signals. that business has been sold off. iliad trading up. bmw down 3%, coming out and basically saying the numbers are top but we still expect a bounce back in the second half. the market is less and less convinced about that second half bounce back. that is why the stock is trading lower. e

the cap and the freight for dax the -- the cac and frankfurt dax both down. britt crude is up around .5%. wpi up a third of percent. nexext, a new report in "the new york times" reveals employees of deutsche banc tried to submit multiple transactions betweenen donald trtrump and his son-in-l-law to. authorities. >> they prepared suspicious activity reports to be filed with the u.s. treasury department. the deutsche bank employees s sy they were hampered by a lax approach to money laundering laws. this comes as nenew york authorities in the u.s. congress are investigating trump's relationship with deutsche, which hass lent billions to his and jared kushner's companies over the years. genie: the 20th forum of the -- is here in in paris. 2002 focusreated in on the socioeconomic chahallengs faced byby unions a and workers. frce 2 24 a p parer in n is yearar's forms. employeesooks at what -- employment will look like in the decades to come. >> to get a job, what skills will future generations need? other be good jobs? -- will there be one ththat offers decent wage

outperformance from the dax.e volume lackluster early on in the session but the bloomberg headlines. we are likely to see the lack of imposition for nearly six months. auto tariffs driving volumes higher. conversation the at bloomberg radio. the markets are moving at the moment. tune into digital radio and the lundy and -- digital radio in the london area. this is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: i'm money claim and this is the -- i'm vonnie quinn could this is the european close good investors are favoring when global companies. editor anded by chief, matt, who wrote an article on fossil fuels. they are looking at renewables and you are asking if this is a conundrum. why should this be a conundrum if the growth looks like it will come from renewables? matt: you have seen an unprecedented rollback of environmental protections. at the same time, you have seen access to fossil fuels across the state enhanced by orders of magnitude. growth andists for a just theels burial but opposite has ha

the dax down at the close. the ftse 100 finishing the day lower.- british tobacco down 3.3%. this is bloomberg. ♪ vonnie: from new york, i'm vonnie quinn. this is the european close on bloomberg markets. it is the payments industries third make a merger of the year. global payments has agreed to buy total system services. joining us is global payments ceo jeffrey sloan. congratulations. a nice deal. you have been eyeing each other for a decade. why now? effrey: the pace of innovation in payments has accelerated. , cars coming to the , theys, in asia-pacific necessity has more scale in our business to further compete and fund innovation. vonnie: there some pressure from competition. what about the likes of visa and mastercard. does this allow you to be better aligned to face them? jeffrey: those are our partners. the businesses that were the beneficiaries in the ecosystems -- we are good partners with mastercard and apple pay and all of those things. when we have competitors with other deals, it is to our favor. i know you guys of talked about growt

dax and cac futures both fairly flat.ng for more clarity around what happens on the trade stories. we heard from the chinese trade negotiator that he will be going to washington. perhaps that will be taken well by markets. u.s. equity futures point lower but not as much as half an hour ago. for risk assets, something positive. breaking into european equity markets to get the stride. .2%. up we have seen strength in the u.k. currency. conversations will continue between tories and labour. can we get a deal done? will we see a deal around brexit . ftse 100, down .6%. the swedish krona, some movement. .1% carried german data earlier, the factory orders number, very disappointing versus the estimate but perhaps there are bigger things at play this morning with regards to trade. that is where the market focuses. what do you see in individual stocks? see afor one thing, we fairly even split on winners and losers. 255 stocks gaining, 300 down this morning. weterms of the big movers, see some earnings stories playing through. dsm

the same with the dax, the trade issue is front and center.s is bloomberg. ♪ vonnie: it's time for the latest bloomberg business flash, a look at some of the biggest stories in the news. david tepper's following other big names who have quit the hedge fund industry to manage their own capital. bloomberg learned he plans to return money to investors. portion of the $13 billion belongs to the tempora family. bloomberg is learning that some bio firms are balking at the high price. and the slow pace of the deal. they are seeking a minimum value of up to $33 billion for universal music. the company held talks with china's tencent, but the u.s.-china -- u.s.-china trade war could put any an and to that -- an end to that. two hours into the open, another day of selling. , almost500 is down 1.2% all components of the dow are lower, just coca-cola holding onto fractional gains, but the dow itself is down 1.3%. the vix is slightly elevated, still below 17. that is your u.s. markets. guy: a quick look at one particular asset in the foreign-exchange marke

the dax down. the cac 40 down .2%.f you're not quite done with the week and want to carry on with what is turning out to be a very busy afternoon with breaking news surrounding the trade narrative story and what is going on with some of these ipos, tune in at the top of the hour. on dab digital radio in the london area and on all your bloomberg devices. jonathan ferro will be in new york. i will be in london with the cable. this is bloomberg. ♪ guy: breaking news. we now have another potential nominee to the fed. this time it is derek kan. he is being pushed forward for the board opening, one of the two board openings. i was just going back through some of his biography, just googling his previous. possible in 2017 that the trump administration would nominate him or some role in transportation. quite a big shift. he does have management experience over at lyft and he does sit on the national railroad passenger board. it is fascinating to see the turnaround in terms of the opportunity that now presents itself to him, po

the dax is trading recently flat.own is a little more, this as we head toward trading in europe. this is bloomberg. ♪ vonnie: live, from new york, i'm vonnie quinn. guy: and in london, i'm guy johnson. this is bloomberg markets. let's get caught up with the latest bloomberg business flash. some of the biggest doors we are watching, let's kick things off with the man who ran mercedes-benz's parent for years. .e is stepping down his successor takes over at an unprecedented time. for boeing over the grounding of the 737 max. of the 96perate 53 max planes lying idle in china. that was your bloomberg business flash. vonnie: as the trade tensions between the u.s. and china rage on, many investors wonder if, or when, tariffs will impact federal reserve policy. jim bullardoke with about where the pressure is falling in the u.s. economy. have a listen. jim: our farming communities are the trade war, soviet issue, and exports are done a lot if you look at the charts. the government is trying to come back and offer some payments

now simply the announcement of these of these tariffs they made themselves felt immediately on the dax i mean it was it was unbelievable the impact they had on the auto sector the auto industry as you know they went down about 4 percent that's right it was it was immediate and the car makers are very exposed their folks who are going diameter and b.m.w. all have big they do a lot of manufacturing there for export up to north america b.m.w. is about to open a 1000000000 dollar plant there are in wood in coming weeks and it's the 1st plant in mexico so it's having a big impact on them these because the time is is not good for them atoll ok so it's as we were talking earlier it's not just wall way it's not just you know the tech industry it's also the auto industry that that's involved in this and this is all wideout to effect yet the auto industry is playing a big role in all of these trade issues europe has been told that it has a year or it's a year now since europe was told that there will be no terrace in the u.s. but europe must be nervous about being introduced that could be the ne

overall dax is down nearly 2 percent v.w. dime lower and b.m.w. all have big manufacturing facilities there i think in 2017. i put was a buy 50 percent it's they're doing really really well so this is a big hit for them it's very important for their overall american strategy ok so there's a knock on effect from the mexican tariffs on european car makers very important point they're clever thanks very much for coming on clifford to and from the business this. on thursday chancellor merkel delivered the commencement address we're talking about it already university in boston heard vice the graduating class there was laced with indirect criticism of american domestic and foreign policies to add their own walts of ignorance and narrow mindedness on that one thing has to stay as it is. it was one of several standing ovations for the german chancellor during hurricane and speech she ended and began an english highly unusual for an american at such a major event. then gets off if we step out and embrace new beginnings everything is possible. so the norma

the dax under pressure, as well as the cac.for >> let's get it off with this danish medical equipment maker striking a deal with another medical company to supply endoscopes in the u.s.. they are still awaiting approval from the fda, and they expect into my september, 2020. for that reason, their stock is up. the ceo says he is cautious after september 2020, that he is affectinghat is ryanair. also, merlin entertainments down, their hsbc price target cut, the lowest level in a month. the u.k. estate agent also with lower calls. revenue was in line, but sales fell, record low volumes, as ayers in london are just not making the move -- buyers in london are just not making the move amid the political uncertainty. matt: thanks very much, sebastien. with your stocks to watch. the power of populism in europe is about to be tested twice. stakes are high in the eu elections this week. it could be the first time the grand coalition of socialists vp failed to win an outright majority. in austria, a snap election after his nationalist dep

the dax up 0.5%, as is the ftse mib.he top individual stock stories we have prepared for you. for that we bring back sebastian salek. >> let's talk about norsk hydro, which owns the alunorte mine in brazil, the world's biggest alumina mine. it's been -- aluminum mine. the brazilian court allowing that to be ramped back up. you are seeing money can go back into north country. this is positive -- norsk hydro. this is positive. the net debt of telecom italia is falling. investors were expecting it to increase. that's a good showing. finally, wh smith, they have got a new ceo coming in from october 31. he ran the high street division and will step in and take the place of ceo. anna: thank you very much for that. let's talk european politics. european parliamentary elections take place this week. let's take a closer look at france, which will be voting on saturday. emmanuel macron's party facing a tight race with a nationalist. for more on the issues that are driving voters in france, we have a guest from paris. good morning

dax index is lower by 138 points, better than 1%.kets, japan was down one and a quarter percent, as was korea, as you can see. those two hit the hardest on the heels of the selloff on wall street. the iran scries si crisis now, s claiming iran was behind the recent attacks on the oil tankers, as facebook and twitter remove accounts associated with iran misinformation. jack keane said, yes, ran was behind that upset. twitter in chief, the social media giant is looking for somebody to be the face of its platform. the stock is down this morning by three-quarters of a percent. teenage phone use, a startling new survey during the middle of the night, plus pokemon is turning sleep into a game. we have all those stories coming up. markets are in focus, government bond yields dipping near multiyear lowings yesterday due in part to growing concerns about slowing economic growth. bonds from the u.s., all the way to germany, are dropping like a rock. joining us right now -- the 10 year is at 2.24%. joining us now is senior portfolio manager, ke

the dax is down.the best performer, and the ftse may have gone down more than 10% this month. that would've had something to do with your pain moves, too, right? moves, too,pean right? >> certainly. right now we are actually on a streak of rest of world equities , outperforming the s&p 500 for the sixth straight session heard that is the longest street stash streak of this year. this speaks of the idea that if this becomes a technology battle , guess where the tech companies are, where the high growth is? we are hoisted on our own petard on this front. vonnie: we will get to that a little later. even as trade tensions swirl kashkaria and mexico, is confident that the u.s. has has room to run. >> it's more noise and rhetoric than big action. obviously tariffs with mexico could damage the u.s. economy. if the trade fight with china really goes down a bad path, that could trouble the economy. i am trying to separate out what is noise and rhetoric and what will affect the economy. so far the fundamentals

the dax is down over 200 points today. the italian market in milan down by 2.74%. some idiosyncratic technical factors impacting the italian market. if you take a look at the italian market, you will see a couple of standout stories. fiat chrysler down double-digit percentage, gone ex dividend today. market having a huge number of dividends being paid out. happening you what is in terms of the sector breakdown. there is only one sector in positive territory, the telik mutations sector. we -- the telecommunications sector. it is trading higher today for you much in line with the rest of the sector as well. some of the places to hide, utility streaming a little better today. are bond like businesses. low volatility stocks are trading quite strongly today. at the in of the market, let's look at what is happening. technology is trading down. i will show you numbers in a little bit. these kinds of stocks are trading weekly today. the auto parts sector is off by 2.2% and the banking sector is down as well. trading with a six handle today. continues. sector on whatever's

bond market the german dax britain's footsie $100.00 and the dow jones industrial average all ended in positive territory after days of sell offs global stocks have taken a beating over fears the u.s. china trade dispute is far from resolution investors have meanwhile streamed into bonds which are considered a safe haven during troubling economic times. and for more on this let's go now to our financial correspondent in new york jose luis de haro jose what is this investor rush to bonds telling us right now. well normally stephen investors buy bonds especially. from the countries such as the united states so when they want to run away from risks and uncertainty doubts why do u.s. treasuries and notes which have basically our public debt to issued by the u.s. government would differ in my children meaning the period of time bateman's on those bonds will be do you are also known as you mentioned before save haven are saved in to financial jargon bonds in general or for a lower geale dennis stock so investors get less return on their investment but at moments like at the current situation

let's not even begin about the impacts of corporations like apple major stock market side the german dax and the u.s. stock markets essentially investors are going into defensive and they are back in the trenches because these battle shorts are still beyond 5 there's another escalation what everybody actually hopes that this movie between the u.s. and china and trade sanctions would wrap up by this month but not at all it's going for a sequel on this why investors are defensive so that was means there are wider implications there not just for the united states but for the u.k. as well and for europe. absolutely these implications are far and wide and that globally we can expect global economic downgrades any day now based on the weakening market sentiment and the we can sense and around global economic health and let's also not forget that investors were preparing for a global economic downturn in 2009 seen based on external headwinds but it's because these had once again louder because the escalations also drifted wide these downgrades the good coming thick and fast in part sure it impa

and europe down whether it's frankfurt where there's incidentally not one of the 30 companies in the dax in the black they're all in the red paris is down london is down the line is down and where investors going they're going somewhere with the money they're going to so-called safe havens among others german corporate bonds their prices are going up and that sends the yield down and the prices are going up so much that the yield is going down to a 3 year low so the investor is paying germany to take their to take their money. the frankfurt stock exchange interesting stuff. now to some of the business stories making news japan's new sun says it's not opposed to its european partners and no urging with chrysler that's according to tokyo's nikkei newspaper the deal could up the over the industry there are reports the boast of porsche is under investigation officials are said to be looking into whether the approved disproportionate payments of the comic his works council dozens of police and tax inspectors have been searching portions offices as part of a broad approach. of european central

ben let me 1st begin by saying that how the dax reacted to news did that's when just not words when the news drug did that just shows how what it investors were that they had already bought the prize did that that is. even before the announcement was made now coming back to a question yes he is certainly keeping a buggy bargaining chip with himself and that is not good for the industry that means another 6 months of uncertainty and uncertainty is not good for any industry no matter what the purpose to focus today didn't say that problem delayed is a problem solved this is being a fully fledged trade war between germany at least and and the u.s. and japan as well. what is the likelihood of trump actually using this partnership . is i've stopped guessing what the president of next move is going to be a long time back i'm sure it's the same case with you but having said that he's definitely going to wait what kind of concession he's going to extract from the european union with the negotiations on and also i mean there are suggestions that he'll be back on europe's case once his spat with

that includes the dax and ftse. we saw a similar story in asia.apan's nick ayers -- japan's nikkei finished down. exexpecting aere ac hi.. there will be closer talklks in washington to see if there will bebe a s sign of a breakthrorou. emmanuel macron is set to meet wiwith mark zuckererberg. fire fromomer regularsrs and lawmamars. they look at some of the issues over the summit. >> they prepare to meet once more in paris. what has changed since their rendezvous a year ago. they will meet to discuss tackling hate speech online while balancing concerns of protections of freedom of speech. the findings will be presented friday. they have admitted the need for greater oversight. on the agenda, issues less welcome for facebook. the company is facing pushback's in europe. modeled after a german law that imposes a fine of 4% if illegal content is not removed. legislation is also likely up foror debate. >> a conontroversial reform m fm emmanunuel macronn hasas hit a setback. the constitutional council has given green light to a referendum over the privati

dax up 4%.e talked about adidas earlier those shares are up around 7%. >> the payroll trends are coming up in two hour's time. the dow is opening up about 60 points higher where, s&p about nine points higher crucially s&p is still above that 2,900 mark. all eyes really will be on the headline trends. more so as well on average hourly earnings. whether we get more inflationary signs or whether or not the low inflation trends are transient more clues coming up later today. >> a mixture of bonds and shares ceo elan musk says he intends to buy around $10 million worth of stock in an investor call musk said autonomous driving will give the firm a $500 billion market cap tesla's factory as the machine distills -- the machine for visual tour inside the site located in the state of nevada head on-line to cnbc.com. >> as shares have traded higher in after hours >> stamp of approval turkish inflation growth has slowed in april. clothing and transportation prices fell. the economy is currently in a recessi

dax trading up .1% marnl naturally firmer cac marginally weaker. ftse mib up 6.6% one thing to watch out for from a macroperspective later on this morning we'll be getting the european commission's updated gdp forecast for the e.u. economy later this year. all eyes, of course, will be on italy. that's one to watch out for insofar as it's going to affect the budget forecast, and germany as well given the weakness in that economy over the last six months telecoms also 1% some positive news out of vodafone there utilities, we had performing quite well on the down side we've got banks down .8% also, autos, i think this one is interesting because not only do we have a slightly weaker earnings from bmw dote, but this industry as a whole is really clouded under the threat of section 232 tariffs. it's but reasons why perhaps other china-related sectors in europe are recovering today, but autos not so much. there's still that threat of section 232 tariffs. oil and gas also underperforming a little today down .3% in line with some of the weakness we've had o

the dax up after yesterday's brutal selloff in the week prior the worst week of the year.nvestors fretting the trade tension between you as an china. the commodity complex is on pace for its guest -- best day since february. risk assets less liquid and this is confirmation of what we are seeing in stocks. also confirmed, at least here in the u.s., we did have bunds rally on the day. in the u.s. we have bonds trading lower and rates higher. that is helping the banks, one of the top sectors, which has sold off. we are seeing a rebound on the day for the banks. over the last seven days, a big drag on the s&p 500. the down the nasdaq. apple, take a look at this, seven-day chart coming into today. down 12%. the worst seven days since january 2013. that is when the company was in a bear market. today up .8%. not registering. if you going to the bloomberg and take a look at the chart of the s&p 500 we have not looked at for a month, this was the trading envelope around the s&p 500. we see it has been reliable. during last year's fourth quarter turned down, we see there's been an

the dax is under pressure. auto stop stealing the page.ocks under pressure -- auto stocks are feeling the pinch. london down around 1%. there are some stocks doing better. tobacco stocks are having a good day. one area you could potentially go to if you are seeking safety. on the downside, stocks like bp. the auto sector is trading down. the cac 40 is trading down. a lot of luxury stocks that are very exposed to what happens in china. let's show you the breakdown from a sector point of view to give you an idea of how we are looking at rotation in europe. everything is down. only one sector in positive territory, real estate. look at where you are seeing the market rotating, rotating to safety. utilities a dividend play. rotating into the household good stocks. nestle in the food and beverage sector. telecoms doing better. still down 1.27%. money flowing out of the sectors. in aggregate because of the atf affect. what you are seeing is the market rotating around. you what is going on at the bottom end of the market, dominated by the china m

the dax is really under pressure today. the auto sector is really under pressure.s is bloomberg. ♪ this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." vonnie: traders are reassessing the process -- prospects of a trade deal after the chinese say the u.s. has been playing " little tricks." the attention will shift to next month's g20 meeting in japan when the two presidents will discuss the impact on the market. of, we bring in the cio active quant equities at straight street -- state street global advisors. how do you adjust to something as macro as this impacting the market? >> what is really important is having an investment process waiting to handle these events when they occur because you never know when they will come. they are impossible to forecast. you have to have a protest designed to withstanding them. it's like wearing a seatbelt in preparation for an accident. you have to always be prepared, not just when events occur. vonnie: the idea is to heighten volatility, right? we do

let's just flip over and talk about the individual indexes here i want to start off with the german dax you can see index is leading the decline. well, just about pretty much all of them are down 1% already. germany is very much in focus. some of the sector that is are under scrutiny as well the auto sector having declines at the moment as well as the banking sector, too. we'll get to that in a second. cac, here surprisingly we had better numbers on both the manufacturing and services side of things, but that hasn't really helped or dew point dented some of the trader pessimism that's being expressed in that index today as well. ftse mib down 1% then just a quick look at the u.q. ftse 100, also down .6% i talked about sterling weakness in just a few minutes ago with steve. yesterday that had a positive impact on the index. today the market is really gripped in the risk-off territory. switching to sectors, let's talk about some of the performance there. the only sector in the green today is health care up about .2% some of the defensives also, as you would imagine, on a day like this, ar

some of the minors and that particular index the dax also slightly termer today.oximateth 2% crucially we are pairing back some of the gains that we had early on in the session. things are beginning to slip just on germany, i want to point out where the german fed index comes up in half hour time very good news for how businesses and consumers are thinking about the economic environment. keep an eye on that one from the market perspective it's an indicative vote or meaningful vote, and the parliament this week all eyes on that and whether or not these cross-party talks will actually yield something not a lot of optimism there. the pound is trading on the back foot u.s. futures are pointed in the green as well. we are seeing a safe haven bid as well. there you can see the picture for u.s. markets is pretty much all over the green i just want to point out, though, that the dow futures has started dropping about an hour ago they were pointed to open up in the triple digit positive territory we're now looking to open up 40 points higher. the tariffs between china and

down0, dax, zurich, all 1%. talk more about the cac 40 in the french market because i think it is instructive. on a percentage basis, stocks taking the shine off the market. once you dig into the point story, it is stocks like lvmh that took the biggest number of points off the cac 40. that is a china related story. the luxury story has been under pressure. the other stock trading lower in the french market was total. we are watching the global demand story, the second reason is total is now involved in the anadarko story by occidental doing a deal with total saying it will sell off its africa unit, specifically its mozambique. that is a factor why total would be under pressure. in the dax, chip stocks going down as the auto sector has been under pressure. you can see what is been going down in more detail, you can do that with the grr function. that is where the safety has been. those sectors are in negative territory. the bottom of the market looks like this. the auto sector the biggest losing sector. i would

the board and it's probably no surprise to hear that export shares are among the worst here and the dax in frankfurt where there are a lot of those on the ticket you see v.w. di miller b.m.w. auto supplier continental under pressure but basically almost all the shares losing and investors seeking safe havens again like treasuries from the united states are european sovereign bonds especially german bonds because they're nervous. back to you here in the studio the united states is mexico's biggest trading partner now obviously this is a politically motivated move by donald trump but one of the economic implications well as you say it's a pretty motivated move but the economic ramifications are enormous it's such a close relationship and such a close trading relationship mexican officials are furious about there's we're still trying to see exactly how this will play out but it's left it's left the mexicans in a very difficult place for they have to start dealing with these increased power of clifford conan and thanks to you both for now we'll come back to you in a moment in the meantime t

bit into the into the into the trading but the fear is out there you can see it here in europe the dax is in pre-training and they are the shares are going down i wouldn't say they're under pressure but the effect is there people taken completely by surprise and the indication for what wall street will do later is the same also share losses projected while investors are going back into safe havens of the u.s. treasuries the government bonds there and one trader i just talked to just a few minutes ago raised an eyebrow and said you know in the old 4 german bonds has gone down again to the 0.195 percent is really shocked that that that means that they're in demand that means that investors astaire clifford back to you in the studio the united states is mexico's biggest trading partner tell us what implications this move has well i think strategically it's very important because if you look at it against the background of the china trade talks this is a move against the supply chain he's going for the companies who are producing goods cheaply and selling them in the u.s. and even just tra