draghi: thank you. leastt say, because it is the first attempt to have a blueprint for further progress in the future. tosuch, as you know it has concede us to different horizons, what to do in the short term as a longer-term. purpose of thehe sm are part of something that is probably more for the longer-term, to the extent that they do require changes in the treaty. let me say, it is way too early to say something precise in this manner in this matter. just we will have to have further study. but what is important here is really, we do not have a piecemeal approach. what is important is we are able to collectively define a path that we want to follow, a path that will necessarily drive us that is morence and more based on institution building and less rules only as it is today. important that we have an overall and compassing pass and not a -- overall, and compassing pass and not piecemeal. path and notng piecemeal. atre will be monetary policy the council meeting and they will have the new staff proje

draghi's message couldn't have been clearer.ou think the euro-yen could be in terms of markets. a key line is 122.56. one of the strongest markets despite a terror attack and an election is this. u.k. market is up nearly 5% in the month of may alone. you are seeing it outperform each of its peers in france, the swiss market index and on the backs. you have this significant outperformance in london this morning over the month. look at some of the real balloons. itself,recovered vodafone are reestablishing the upside. the question for markets is that that sterling drop is already well priced into the market. matt, good to have you here all week. i am off to digital radio. matt: euro-yen, is that the pair that the pros watch? i will have to ring tom keene on that. matt: i have the pro here, i will ask him. manus, thank you for that. let's take a look at what is going on i will have to ring tom keene on that. matt: as far as the individual movers are going. i have the mov screen on my bloomberg. i switched it to index point so we ca

draghi said inflation remains subdued.he euro down a bit this morning. >>> a greek government spokesman is denying a report that greece may opt out of the next bailout payment if lenders fail to reach a deal on debt relief. a german newspaper reporting that athens was weighing that option but the greek spokesperson said there will be a solution reached when european ministers and imf ministers meet. >>> european banks taking a hit after deutsche bank cut its rating on regional bank stocks in europe to underweight from market neutral. the sector is most sensitive to the swings in the euro areas growth which they expect will fade a bit this year. valuations are no longer compelling. if you read this note, it's a bullish downgrade based on the run they had recently and the fact that the big improvements we've seen in european growth over the last six months are priced in. as opposed to the fact that they think growth will fall off a chart. yesterday there was no holiday in italy. italian banks were down. that's not so much ra

mario draghi speaking in brussels.ome of the headlines include that the central bank has no plans to change qe bond by limits -- bond buy limits. ♪ mark: this is bloomberg markets. mario draghi defending central-bank's decision to continue monetary support in the face of pressure to begin withdrawing stimulus. here is what he said earlier in his prepared marks. >> overall, we remain extraordinarily convinced that an amount of monetary support, including our former guidance, is still necessary for the present level of underutilized resources to be reabsorbed and dor inflation to return to an -- to around 2% within a meaningful medium-term horizon. mark: draghi is taking questions. >> including the enhanced supervision at eu levels and location requirements. you, thultimately be to e eu legislator to decide which to apply to third countries. crucialecb, it will be that it can at least preserve the current level of involvement over systemically important, euro-denominated clearing activities. regardless of the foot -- of

draghi is this has to stop.ed tightening, the bank of england for sure, is not doing more qe. . whatasset prices, that is we lived off of in europe for five years. there has been a little bit of growth recently. we have lift off there is no alternative. so interesting question. mark: so what do we buy? s&p records 21 month high in europe. the euro had a great round. what do we buy? stephen: i think one still needs to look at some sort of diversification. active management is the story. trying to make big macro calls , but there are no easy ones. i want to bring attention to what happened to etf flows. more than three times the first quarter of 2016. say retail money is flooding into and chasing etf's and chasing a few big stocks. we know who they are. apple, facebook, amazon, etc. they are very expensive. sell those stocks now and look to get proper value active management. mark: great to see you. stephen isaacs, chairman of the investment committee at alvine capital. vonnie: still ahead, we look inside monetary

draghi's dilemma. will the e.c.b.here is the inflation when he speaks before the european parliament. we'll bring you his comments live.

draghi says he is still fully engaged -- what does that mean? a great deal of valuation has been built up, do we question that? corbyn went up against may last night. looks like the tory leader is dissipating from 9% to 6% for the morning shows. gold was much better, back in the green. it is near its highest level in a month. there are a number of factors, one is the u.k., and we also go to nonfarm payrolls on friday. talking aboutup, the run within the balance sheet, slow in orderly. the fed will communicate effectively. it won't be anything like the taper tantrum, and that is what they want to avoid. it's a rerun of taper tantrum. they will communicate within an inch of their life. sophie kamaruddin is standing by with the first word. good morning. sophie: hey, manus. the president of the st. louis fed says the jury is out on whether the trump administration will meet wall street expectations. speaking exclusively to ball bloomberg, he says at some point the honeymoon period will come to an end and he will need to deliver on the policy promise

toio draghi is the latest say the u.s. is wrong on trade.e cost recovery may be threatened from abroad. >> japan changing the way it pushes wages and inflation. this hour brings the latest jobs and retail numbers. >>

how much detail will draghi give about his plans?n ipo says it plans to take its operation public and a buyback. how will the market react? matt: we are less than half an hour from the european open and european futures are pointing down. on here.e wpi i am going to click in this box, futures, and then we can see the futures trade in the first numbers column and a percent missed price next to it. you can see only the ftse is indicated to open higher today. the cac and the dax are indicated to open down, as are the rest of european markets. let me click into my bond screen yields moving higher. you can see the real movement today -- let me zoom in -- we have had a real selling off of german debt and that is pushing the yield higher. manus: matt, let's look at gmm. the u.s. equities futures a little lower, a new president in korea. reopeninghe cost be down .9%. the bloomberg dollar index is down by .8 percent. that has more to do with kaplan's comments about the .allas federal reserve yield, turning around. crude, up by .5%. we have th

. >>> the draghi put weighs on on the euro as the currency loses ground against the dollar after the central bank boss says stimulus measures need to stay. >> an extraordinary amount of monetary policy support, including through our forward guidance, is still necessary for the present level of underutilized resources to be reabsorbed. >>> good morning, everyone. it's tuesday, glad you're with us once again here in the uk, especially after that long bank holiday weekend. some of you maybe were stranded at heathrow given the woes there. let's talk about european markets first. we're seeing the ftse 100 under pressure off by a half of a percent. the xetra dax eking out a modest gain of 7 or 8 points. cac 40 off by 0.6%. ftse mib extending yesterday's declines off by a similar percentage. when it comes to sectors, banks are under a fair bit of pressure. off by more than 1%. this is after deutsche bank analysts cut the sector to an underweight. banks also amongst the key underperformers in italy given concerns about early elections in that country. they could come as early as september. b

but it is a problem for mario draghi.he most valuable tulip bulb was eated by mistake. -- eaten by mistake. it was mistaken for an onion. guy: up next, we'll be talking about barclays. ♪ guy: you are watching bloomberg "surveillance." i'm in london and tom keene has the data we need. tom: is the macron honeymoon over? guy: i think it was over immediately. it extrapolated into the national assembly vote. tom: on this may, what is at the 10th or 11th? data check. the vix was 9, a little bit higher but really quite something. the one that really attracted this morning is dollar-yen, 114. macron.en since we've seen safe haven deteriorate overall. guy: let's talk about what is happening with the u.k. i'm going to go to my eco screen. tom: brent crude elevated. guy: it's set up as defaulting to france. industrial production data coming from the u.k. -0.5%. the 2.8 number last time around, that ain't good. the pound is a little softer but it has been a very tight range. if we see saunders go with four -- waiting for news out abo

verio draghi become the latest figure to tell the u.s.ight he headed down the wrong path on trade. the ecb president touted the recovery and said the key risks are from external factors, in particular america's neo-protectionist stance. theypeated his view that need monetary stimulus to read so store stable inflation. need financing conditions which are themselves dependent on a fairly substantial amount of monetary accommodation. francine: let's bring in julian. mr. draghi went on to say he believes an extraordinary amount of monetary policy support is still needed what does that mean? first of all, interest rates are going to stay very low. at the end of the year, qe is not going to disappear. we will probably get stimulation later on. what the market is focusing on a lot, what does it mean for forward guidance. everything we heard from a number of these figures is the key part of their forward guidance, particularly the sequencing of qe is going to stay there. i think it's the right approach. julian: i think the message is clear from d

reason why mario draghi may want to sit tight for a while.n mario draghi to take his foot off the accelerator. >> you were at a monetary policy on saturday. the governor, governor kuroda, spoke about inflation and got a good laugh at the same time. he even laughed at himself in his remarks to the people assembled at this high level panel. he said i am doing my best to push inflation to 2%, but japan periodcaped a 20 year inflation. by 2018. how far does he have to go? #7492, the yellow line, that is the core cpi for japan and takes out food prices. it is 0.2%. most economists i have spoken to say that may not happen for many, many years, but the point is that governor kuroda says inflation expectations are sending a signal and we will not stop until we get there. prime ministers shinzo hobby has a step up on the fiscal side, and that is were a group come to boost that inflation rate higher. one of the most optimistic central bankers out there. thank you. let's do a quick check on the japanese markets, catch-up rally in japan after coming back

you have mario draghi so emphatic, now is not the time.re is less of a coalescing of mines than one would hope from the ecb. wingsre are certainly two on the ecb. what we have to remember is that the ecb is really where the fed -- they're conscious that inflation, although apparently the risk is declining toward deflation, inflation is still very low and they don't have many tools at their disposal since getting turned down. everything argues for moving very, very slowly. thinking yes, the have to of knowledge that the economy again, until we see the inflation risk of all that is well, we really need to see that. startnk core cbi will picking up this month and keep rising. manus: if you strip out the oil in it, what's going to drive court cpi? >> there's a whole variety of that if health core inflation down for a while. we think there gradually eroding. it has a lot to do with inflation expectations. the think that helps drive inflation upward. in unemployment. the spare capacity as much lower than it used to be. i say rather glibly that t

draghi is his usual dovish self.a look at the kospi, something to watch for, it is set for its best month since january 2012. we had warning signs this could be waiting as global signs pullback $2 billion from korean stocks this year. we are seeing bearish wagers creep higher. we do want credit suisse and securities keeping the faith. we want to see a further value of the 6% for the kospi, maintaining its best performance this year against other equity markets. betty: thank you so much on the markets. let's get the first word news with a ramy inocencio. [indiscernible] betty: we seem to have lost ramy's mic. we will get back to you with the first word news. in the meantime, let's get to the james bullard interview we conducted an hour ago at the federal reserve. he says they have done all they need on the rate hiking path. we are new the appropriate level for the u.s. economy. that was a headline from the st. louis fed president. i want to bring and kathleen hays, who joins in on that conversation and the reaction we

how concerned should mario draghi and janet yellen be?idesharing start up uber hits another bump in the road where the head of the self driving car system to 30 minutes until the end of the session p we have been lower, we have been higher. we are up for the first day today, the currencies are rising against the dollar. sterling earlier today down by .7 percent or quite a rebound. a poll in the last few minutes, 43% labor, 33 percent, a gap of 10%, an increase of 1% from the conservative party versus previous p are we have that projection that it would not even when the majority. so much happening eight days ahead of the election. a week on thursday, which leads reversal data. you can see the hedge against the weaker pound versus the dollar increasing to the highest since january. look at where we were around the brexit referendum. that is when traders were about as negative as they had ever been. that was a fact here that was record never -- negativity against the pound p are we are nowhere near those levels but still, volatility is incr

policy can meet the optimistic expectations in market pricing and ecb president mario draghi worries about the so-called neo-protectionist stance in the united states and reaffirms his commitment to stimulus. from new york city, good morning. a warm welcome to "bloomberg alongside david westin. alix steel is away today. let's get to the markets this tuesday morning. here is the board for you. treasuries, yields stuck in a tyke -- tight range. features a little bit softer after weeks of gains. we are down by about 0.15%. let's get you up to speed on the headlines outside the business world. emma: president trump is criticizing germany. he says the u.s. has a massive trade deficit with germany and the germans pay far less than they should for nato. president trump says it is very bad for the u.s., but it will change. in berlin, india's prime minister says his country has made a quantum leap in economic ties with germany. he spoke after meeting with angela merkel. he says the two leaders are made for each other. global news 24 hours a day, powered by more 2600 journalists and analysts i

draghi, and for europe?he last couple of years, as you said, the growth rate in services has been a lot higher than in manufacturing goods. less te eurozone produces han 80% services, only 20% or less is the share of manufacturing in gdp. it means that our traditional ands on producing goods exporting goods is somewhat outdated. the service sector is very important and that forces the ecb to take a broader approach. tom: they're interesting. -- very interesting. reinhard cluse will continue with us and we have kevin cirilli in rome. the terror attack in manchester would be front and center, if not for the news of the budget of president trump. during the next hour, our "surveillance" expert is scathing on the trump budget. this is bloomberg. ♪ >> this is "bloomberg surveillance." toshiba might seek bowers from the westinghouse nuclear power unit this fall. this is according to the chief operating officer. the company put westinghouse into bankruptcy in march. westinghouse has been hit with billions of dollar

draghi is not in a rush to tighten policies. but investors are looking ahead to that meeting.here is quite a high expectation that forward guidance is going to be tweaked. if everything remains the same, how do markets react? >> the economy is so strong. keeps sayingtently wait for inflation. it is a must as though they want significantly higher inflation for a period of time before they do anything. the markets can live with this. think it will be fine. the euro can come off the boiler a little bit but it is a bit of a sweet spot with this strong economy and earnings coming through in europe. mark: the euro, it is up to september highs again with the dollar. some of that on the flipside of the equation. is there a ceiling? >> we are relatively positive about the euro. take the u.s. part of the equation. ever since trump said put america first, we thought, what does that mean? one of the things it means is a weaker dollar. and where are the big trade surpluses? germany is one. it is interesting that the chinese currency stabilized. you hear from angela merkel herself saying th

guy: let us talk about president draghi. he's going to be looking at this and thinking a big kick in the box, your back on the front foot first -- europe back on the front foot first. are there winners in this process or losers in this process? laurent: that is a very good question. i would say, at first, i do nothing mr. draghi will buy oat's because the risk premium is going to diminish. asian investors are certainly going to buy back oat's, so there will be some inflows going back again toward oat's, and no need from the ecb to support what we have seen recently. but getting out of the qe means getting out of the bunds and oat's purity you are right. there might be some pressure -- oat's. you are right. there might be some pressure. so it meant that it depends on the capacity of mr. macron to have a growth over the potential in the coming years, and the fact that rates globally are not picking up your but then, -- are picking up. but then, i do not think mr. draghi is in our rush. don't forget, there will be the italian e

as you mentioned, mario draghi is speaking in spain.ill go to the european central bank in frankfurt because they are giving a financial stability review, so we get an outlook on their growth and expectations. and inflation equitation. i will try to get out of him a little bit about monetary policy and when the fed is going to go back to some sort of normalization or at least announced the beginning of thinking about going to normalization and a taper. guy. guy: cash is opening. the headline level, market makers are not going to give us a guide today. ftse barely budging. level,just shy of the 74 just shy of the 75 level, but no real clear sense of direction pure you'll see that from a number of the other markets as well. bias to the downside, i would argue. we will watch some of the individual stock stories. we will come back and talk about that in just a moment. let us get to nejra cehic for more detail in the markets. nejra: we have the gilt market open here as well. the european bond markets and the 10 year treasury the yield -- tre

draghi speaks, the u.k. minister race speaks at -- heats up, and we get jobs numbers on friday. ♪ ♪ ferro.n: i am jonathan from new york city, this is bloomberg "real yield." time for the final spread. mario draghi will be speaking to the european parliament just a week and some change away from another ecb decision, as the market starts to look to what the ecb may or may not do with the quantitative easing program. we will be looking ahead to the election. theresa may and jeremy corbyn ramp up campaigning, and on friday, the payrolls report in the united states. let's bring in the roundtable one time -- one last time. gregory peters, on a long, and brian railing -- bonnie wongtrakool, and brian ringling. unemployment keeps grinding lower. where is the wage growth? very slow to come about and probably will continue to be so. that has been a problem for the fed. i think he goes into those inflation expectation numbers that are trending slightly lower. the jobs report has to be a total disaster for the fed not

is it a bit of a draghi hangover?was the reason for the worst decline in stocks since ezra: what people have been worrying about is italy. there is the possibility being in the earlyenzi election, all he has to do is say the word in the market gets itself into a tailspin. spread, thealian spread we looked at many times before the french election, is this the key indicator going forward when it comes to europe? the levels to watch were roughly 2.2% a month or so ago, four-year highs. we aren't there. is this the key indicator in coming months? paul: it is something we have to keep, watch how much wider it goes. italian bonds are very liquid, providing good opportunities to go short or long. it is a big bond market. that is one of the risks, one of the reasons italy is cautious, because of the amount of debt. interestingly, looking at it from this perspective, it is the safest that we have seen on the other hand italian bonds underperforming. spreadt risky bonds, the between italy and portugal has narrowed a percentage

manus: let's do it mario draghi says. european central bank will be front and center.re's another central bank at the front and center, the federal reserve, and the fed bank chief in cleveland is urging colleagues to deliver on gradual tightening of policy. she spoke to bloomberg news about moves that need to be made to ensure the economy doesn't fall behind. anna: her comments came after a speech in chicago. >> it is important to the fomc to remain very vigilant against falling behind as we continue to make progress on our goals, especially given the low level interest rates and the large size of our balance sheet. we know that monetary policy affects the economy with long and variable lags, so policy actions have to be taken before goals are fully met. anna: simon derrick, chief currency strategist at bny mellon. bad things happen when the u.s. interest rates are held too low for too long. but she says i don't think we are way behind the curve. thingsink one of the that ultralow monetary policy does is drive a search for yield. it's not actually load u.s. monetary po

draghi speaks, the u.k. prime minister race heats up, and we a payroll report next friday.s is bloomberg "real yield." ♪ jonathan: i am jonathan ferro. from new york city, this is bloomberg "real yield." it's time for the final spread, a look ahead at what is coming up in the next week. the ecb president, mario draghi will be speaking to the european parliament just a week and some change away from another ecb decision, as the market starts to look to what the ecb may or may not do with that quantitative easing program towards the end of this year. then, we will be looking ahead to the election. theresa may and jeremy corbyn ramp up campaigning, and on friday, the payrolls report in the united states. for a few final thoughts, let's bring in the roundtable one last time. gregory peters, bonnie wongtrakool, and brian rehling. brian, payrolls next friday. the big question we keep asking again and again -- unemployment keeps grinding lower. where is the wage growth? brian: very slow to come about and probably will continue to be so. that has been a problem for the fed. i think

this is a debate and mario draghi is in the ecb for another 2.5 years.is not useful to discuss succession. it is important that the ecb continues to do its work, that everyone is focused and we are starting to see the exit from this unusual unorthodox monetary policies. my expectation is we would see that over the next year. there will be some removing of biases in the forward guidance. there will also be a program discussion around september on what they will do in the next year, the tapering of its purchases. int policy is going to kick over the rest of the year and it is important that the ecb .trongly leads that and prepares markets for that. we have seen what happens in the u.s. went markets were not prepared for a tapering announcement. the president be in command. concerned theyou start normalizing policy to send given that italy is on the brink , there is a lot fewer euro support then there was three years ago. we had a little bit of noise from spanish elections. guest: as much is that policy that we are on now was appropriate when the crisis tha

>> mario draghi is not going to be happy about this.ast few months is on policy ising that ecb working and it's going to remain in place until we see inflation get posted to the target. it's currently around 1%, clearly target is 2%. lower for longer is the mantra. but a couple weeks ago, he alluded to the fact that we could be exiting. foreign guidance is a key tool that the ecb has the on asset purchases and rate settings. it will pass on the way he pointed to the exit. there are a lot of good reasons for the exit, because for the metals are improving in europe and -- europe. mezzo not moving a lot in that shot. met usually moves a little bit. to be honest, he may be a little frozen there. not matt, but the shot maybe frozen. the data is certainly improving, but as you point out, we are seeing this in the state as well, the pc ease remaining kind sideways, yet the implement this coming down sharply. certainly the delta on that is picking up. when we think about the danger of the ecb, is there a danger become or remain to focus on infl

draghi spoke earlier in the hague to the dutch parliament.ge that he delivered in the last ecb meeting. euro down against the dollar. this is bloomberg. ♪ ♪ york.it is a 11:00 in new 30 minutes left in the trading day. from london, i am mark barton. york, i amm new vonnie quinn. this is the "european" quote on "bloomberg markets." ♪ mark: in politics, trump pulls a stunner, sacking fbi director james comey and setting off fierce reaction from democrats and republicans. we will hear from lawmakers about what is next. , ecb presidents mario draghi says the job is not done yet. we will talk about the decision with alice rivlin. and disney struggles to get a grip on the changing cable-television business. chief executive bob iger tells us what changes he is making to

draghi will change. and later, the rbs chairman joins us for brexit banking in the future of europe. that is all coming up. paris, iarmer than would say. this is bloomberg. ♪ tom: "bloomberg surveillance" this week from london. we had a a great time in paris yesterday. a particular thanks to caroline. guy johnson and tom keene with your morning business flash. e.on's first quarter profits fell 20%, missing analyst estimates after the company had to pay higher grid fees and keep the nuclear reactor offline. they posted net income totaling 525 million euros. eon confirmed they are on course to increase adjusted net income by 50% this year. activist investor says accell the goal reached for shareholders. elliott has asked the dutch court to clear the way for a shareholder vote to oust the chairman. vote would be damaging and not in the best interest of the company. shares in british gas have fallen to the lowest level in 15 months after the u.k. conservative party says it will cap household energy bills of

in holland, the netherlands, president draghi, the ecb chief addressing the dutch parliament the ecb stabilizing inflation and he seemed risks of increasing imbalances and the ecb measures have been very effective. coming up -- sam zell will be joining us in about 50 minutes' time. you are watching bloomberg. ♪ jonathan: from new york city, you are watching bloomberg. in the netherlands, ec president mario draghi saying as follows that things are clearly improving in the eurozone and the economic recovery has evolved from fragile into a broad-based upswing. now political risks have diminished, a load of banks comic out -- coming out making more bullish calls on the euro saying it is about the sprint of the economy. the hard data with the soft eurozone surging to the highest in a decade. joining us now is deutsche bank chief international economist. great to have you with us. the focus on the data and not so much the politics. >> the data has been getting better the last six to nine months and the pressure now on the ecb talk more about that and not to be silent on the politics. it is

how concerned should mario draghi and janet yellen be?rt up uber hits another bump in the road where the head of the self driving car unit

that is a further headache for the ecb and mario draghi foreshadowed in the comments about the need forined stimulus. theresa may could end up with down fromawmakers, 330. let's get to the story of focusing on chinese pmi which is held steady since may. services activity accelerated from a six month low. let's turn our attention to the u.s.. we been hearing more about the concerns about inflation from one fed policymaker. the fed governors saying she may reassess her thinking on the future path of monetary policy if inflation continues to remain soft. take a listen. >> i see some tension between signs the economy is in the neighborhood of full employment and signs of tentative progress we've seen on inflation may be slowing. if that tension between the progress on employment and the lack of progress on inflation persists, it may lead me to reassess the path of policy in the future, although it is premature to make that call today. manus: caveat emptor there. david owen is our guest host here. she could not to put any more cap yachts in their. it boils down to this. questioning the valid

no deviating for draghi.g you the latest from the ecb president went qe might start winding down. that is next. this is bloomberg. ♪ matt: it is 20 past 8:00. you're looking at a live shot at the brandenburg gate and you can make out the bubble behind the gate. that is enclosing the stage where president obama will soon speak with german chancellor angela merkel at a gathering of german protestant christians today. a massive gathering. there will be hundreds of thousands of people in the listen to the chancellor and former president speak here in berlin. let's go to hong kong for the bloomberg business flash. juliette saly has that. dr. bank may be close to settling the u.s. federal reserve inquiry into how billions of dollars moved through the bank and out of russia. according to people familiar with the situation that settlement is finalized and could be announced in coming weeks. the bank is still waiting for u.s. prosecutors to resolve the potentially or consequential investigation. b.n.p. paribas has bee

under draghi. remember his term is up in november of 2019.ey man risk as well. >> put all your risk factors together and everything. is the bottom line that you think that, rich, that the stock market at a record high is going to catch up with the message of the bond market at some point soon? >> we're actually constructive on equities as we look out over the next year. the u.s. corporations have had a nice stretch here. there's potential benefit in terms of lower corporate tax rate. if we ever get a tax package out of washington. so we would not fade that in terms of the near term. we think that valuation is key. we would keep an eye on that. >> rich, nice to check in with you. strategic adviser to pimco. >>> when we come back, we'll have the ceo of global infrastructure firm joining us with his take on the current state of progress on the trump agenda and the implications for the global economy. >>> plus, it's the last trading day of the month. cisco, disney and ge, they are the laggards for may. all falling over 5%. "squawk on the street"

mario draghi cannot do much about that on his own.r the time being, for next year or maybe two years, were on an upswing, and we should be pleased about that. one thing that happened over the weekend makes us a bit more please, the fact that macron won in france. i think they are decent goalkeepers in terms of taking shots against the euro. as the german elections loom, some in germany are trying to make the most of the macron victory. less austerity in europe is the answer here. >> angela merkel was quick to snuff out any hint that along with macron she might do the and thatralization, would be great. that would be a golden scenario. she is after legacy issues like saving the euro between her and -- at the moment it doesn't look like that from the cards. there's no appetite for that in germany. manus: you say the abject failure to forecast inflation means that all this talk and speculation of tighter policy is premature. your unshaken in your view of when this choreography changes? i think it's been all about that for some time. manu

a big week for mario draghi. he goes in front of parliament today.s going to be a real hint in terms of policy, although volumes were 30% to 40% lighter. matt: all right. german chancellor angela merkel has given her strongest indication yet that europe and the united states are drifting apart. speaking at a campaign rally in munich after the g-7 summit, she suggested that reliable relations since the end of world war ii are coming to an end. >> [speaking german] >> the times in which we can fully count on others are somewhat over, as we have experienced in the past few days. that is why i can only say we europeans must rely, put our destiny into our own hands, of course in friendship with the united states, and friendship with great britain, whenever possible. also with russia and other countries. brusselsh us now from to discuss this and a range of issues is the global market strategist at j.p. morgan asset management. --ry first ask you about how lets me first ask you about how aggressive you take this. before the g-7 summit, she hosted former pre

you say how well the european continent is doing a lot of people say. , mario draghi, get with it.y're so much uncertainty. is it more prudent for the ecb to wait, and far mario draghi stress, i want to make sure rising cysts -- inflation is sustainable? >> i think we are in a different inflation environment. it is closing to the target. extreme monetary policies that have been enacted have to be scaled back. it was the right thing to do 10 years ago to move aggressively with monetary policy, but just as much as it was right to do it then, it is wrong to still be on the same monetary policy courts 10 years after the crisis. my expectation is in june they will remove some of the biases in the language, and around september, they will announce they will taper the purchase program. year, we will have the ecb with a stable balance sheet and talk about interest-rate movements after that. i think the ecb is clearly on the path normalization, yet they are following the fed with some delay, and they are data-driven. if anything were to go wrong, they might change that course, but given the

mario draghi has warned the u.s. it might he headed down the wrong path on trade.thening. he added that the biggest threats are now external come at merkel's comments that the eu and the u.s. are drifting apart. the u.k. prime minister theresa may and jeremy corbyn have taken part in a live tv question and answer session with the general election 10 days away. over paymentseed due to europe under brexit. the prime minister said it was not paying to ensure a good deal. the labor leader said he would hand over what is legally required. a boost in the value of foreign currency denominated assets gave the bank of japan a full-year profit for 2016, making up the $2 billion loss it suffered in the first six months of the year. the bank had net income of $4.6 billion through march. the fall in the yen helped to the boj by reducing losses from foreign currency holdings. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am rosalind chin. sophie: a lackluster trading day in asia with little in the w

so mario draghi is here as well as all of the other central bankers.hey come with their treasury secretaries or ministers. thank you, matt miller in bari, italy. let's check in on first word news. lawyers say trump's he doesn't get any income from russia, plus they say you doesn't go any money to russian lenders. the lawyers say that comes from a review of the president's tax returns for the last 10 years, they did not release copies of those returns. attorney general jeff sessions is instituting a new policy that is certain to send more people to prison for longer terms. sessions has told federal prosecutors to pursue the most serious charges possible against most suspect, a reversal of obama era policy that aim to to ease overcrowding and federal prisons. preparing to cement ties with president trump by making unprecedented investment in the u.s. according to people familiar with the matter, the saudis will announce plans to invest as much as $40 billion in u.s. of, and that may happen next week to coincide with president trump's visit to the country

mario draghi.

it is the euro moving following comments by mario draghi.raghi signaling the bank is not yet ready to unwind simplus measures decemb s simplus st s measures. let's look at the euro, at 1.11 right now. a greek government spokesman denies that greece will opt out of the next bailout payment. athens was weighing the option, but the greek spokesman said there will be a solution reached when european minute centers and minute centers and i sglooifrnlgts ministers meet. >> british airways saying computer networks are operating normally today after an outage this weekend forced the cancellation of hundreds of flights. the usual pictures, people sleeping on benches. what's the solution on -- sometimes they put the metal arms there to keep you there, so you have nowhere to go if something like this happens. the airline says it will operate a full schedule from both health throw and gatwick, the two london airports today. an electrical malfunction knocked out the airline systems handling the flights, bags and the customer service. it affected 70 count

draghi telling them the european economy is increasingly solid and too soon to scale back stimulus. he hinted the ecb will change its message as tale risks of falling inflation recede. in the netherlands, the dutch court has set may 22nd as a date to hear elliot management complaints against akzo looking to oust the chairman among the shareholders dissatisfied with their rejection of takeover. shares down 1.5 of akzo noble. img hosting a better than expected first quarter profit helped by growth in core lending and new customer deposits. also, take a look at french insurer, axza, announcing plans to take the u.s. arm public, ipo, with billions to be used for investment in higher growth areas. uk home builder, baron is one of the biggest home builders, saying they are on track to build more homes than they have in nine years. the european growth story in terms of profit, higher or outperforming what we are seeing here in the united states. >> seema, thank you for that. >>> let's get to sue herera. >>> good morning. here is what is happening. by a 51-49 vote, the senate has blocked an

policy that an uptick in growth supports the case for lowering stimulus, but ecb president mario draghi is in no rush to change monetary policy, saying it's too early to declare victory in the quest to boost economic growth. european indices closed marginally higher after a mixed trading session. wall street slipped off session highs we saw in monday and tuesday. fairly muted trade there, the dow jones down about .2%. markets have been called despite significant geopolitical risk around the world. the firing of james comey is something that could've injected panic into the markets but has not done so. analyst warned that the tranquility may not last long. >> basically it's concentrating on the good earnings season we've had so far. the market is shrugging this all for now, but once the earnings season is over with, that could change. kate: wall street will be closing in just under an hour. the snapchat parent company begin trading on the nasdaq in march. share prices drop since then and snapchat is expected to announce heavy losses. moving on to other business , a green light to buy gen

draghi faces.aid, what really gets your attention around the world and he went to europe and he said the challenges that mr. draghi has are important and that he is doing the right thing. he loves the way mr. draghi was most assertive a few years back. thecine: and you talk about administration's plans for tax cuts and how that comes in terms of the cycle for the economy. let's have a listen to you and chairman bernanke he. >> we don't know who he's going to appoint. he could reappoint janet yellen would be solely from his perspective are reasonable sensible thing to do. she is highly competent. she has got the confidence of markets. but whoever is appointed, i'm sure will certainly work carefully with the rest of the fomc and there is a reason why there are so many people on the federal marke committee making those decisions and high quality staff that provides a lot of guidance. so, i don't think we are in a 1928 situation. i am very hopeful that they will appoint, if not janet yellen, they will

mario draghi arriving at this financeing, gathering ministers and central bankers. christine the bar is there. --rch moscovici is there christine lagarde is there, ise masa vinci is -- there. there is more common ground on greece. we will speak to the federal reserve bank of chicago president at 3:30 p.m. u.k. time. we have you commissioner pierre's take on the election. the opening 20 minutes away. 20 minutes until the start of cash trading on european equities. this is bloomberg. ♪ matt: welcome back to the show. i am in italy right now. the g7 finance minister's meeting. we have seen the kuroda delegation arrived. wolfgang schaeuble has just gone into the castle where the finance ministers as well as their central bank heads will meet. we spoke with italian finance earlier.potte we have seen serge moscovici earlier as well as christine lagarde. a lot going on in italy. let us find out what is happening in the rest of the world. we go to juliette saly. juliette: thank you. forecast boosted its after it improved its operating performance and agreed to sell a brazil

by mario draghi that the recovery in the region is getting stronger.d of fixed income strategy. the story with europe, people getting more constructive and the fact they have to talk about greece g7 tells you the problems are not solved but does it matter foreign investor? >> the cyclical force that is creating this optimism around beene as inflows, this has multiple years of qe. it better work at some point, you should be growth, you have paid a lot for it. is it sustainable and will inflation be sustainable? the other side, the darker side, at some point, qe has to end by its design, technicality around how many bonds it can buy. as long as europe is on an upward trend and we see a pullback from an ecb taper, that will be great for the bond market in addition to the equity market. forow difficult will it be president draghi to move away from the kind of policy they introduced without having a significant backlash in markets? >> it will be easier in europe japan.an -- than the tricky part is the fed experience, you have the taper tantrum and the marke