we do not invest enough in europe and our lost generation, it's not only a lost decade in europe, it's lost generation we have. i mean, we need to do something for those people to have them believe in this europe again. peter: to pick up on a point you maybe short while ago, the time has come for angela merkel to dump wolfgang schaeuble. for her to decide, really, but one has to say -- peter: you are being very cautious. think itause i do not is the job of a journalist to advise the government to make this or that decision. peter: he stands for pulling the break. >> the idea that there has to be a limit to what a government can borrow is one of the most stupid ideas that has ever been introduced into policy. reader: prevailing poverty in the european union. the point of being a government is that you can are as much money as you need to save us from economic ruin and to decree from huron they you're not going to do that ever under any circumstances safely means that somewhere down the line, a politician is going to have to break his or her promise. i cannot even start to say how stupid

and europe.u look back at your -- earnings over the past five years, you have hardly seen earnings growth in europe whereas u.s. companies have been generating earnings growth. disappointing, but still reasonable earnings growth. the difference this year is we have had a first good quarter in the u.s.. looking at about 10%. europe, you are looking at a punchy growth number. perhaps something like 15% this year. first-quarter numbers have been good. there is a bit of a catch-up in europe and it can catch up much longer. this is not just about first-quarter numbers being good, we should see it go through this year and in the next year. there is a real advantage looking at european companies compared to the u.s.. looking at some of the share price reaction, m&a news, and relish -- as we watch some of the early trades in these companies come through, interestingly heard earlier in the week from lloyd lamenting the politics in europe and saying yes, without their france and italy, that we have other c

that western europe and western europe is under a lot of pressure. allies from wars, fasci fascism -- and our allies are going to join the -- a lot of pressure. right, let's go to jim scroggins, texas, jim, good morning. good morning. my thoughts are rather kind of scattered, but what it really comes down to is we need the united nations. somebody doesn't pay their dues, do you kick them out of the union? talk to them. you kind of try to convince them that it is for their own benefit to be part of it. friends an't trump make with our friends and keep our enemies?ur what kind of psychology is this, make friends of your enemies and alienate your it is ridiculous. host: what about president tweet this morning bringing up germany and u.s.-nato alliances, he said, we massive trade deficit with germany, they paid less than should, bad for the united states, this will change, he romised in the tweet this morning. caller: am i still on? host: yes, sir. caller: okay. is just wonderful, worry that g is, i e aren't safe if we can't have -- ody else besides late

in europe, you have northern europe and germany in good shape.hey have somewhat tight labor markets. the rest of europe has overcapacity and supply. you will continue to the and a low inflation environment in europe. do you think we can do more than 10 best points on the bund 10-year? luke: we think you can. a lot of people are talking about the stronger growth in europe. that is not leading to inflation and not likely to lead to significant policy change in the ecb. we think they're going to buy everything and keep rates low. jonathan: would you be on the same side of that trade? luke: not quite. you think both germany and the u.s. on either side of 5% unemployment. has the wrong level of interest rates in their economy. ecb is starting to take note of that. this is happening in northern europe. there is capacity still to come out of the market. italy is a bit of a basket case. for me, it is not taking in enough of the risk that the ecb could change rhetoric in june and taper more aggressively in september. that means 40 basis points on the germ

willis not something which be moving quickly in europe. nothing ever moves quickly and europe. learned that over the last few years. paul, stick around. paul donovan joining us. let's get a recap. let's get a bloomberg first word news update. president-elect emanuel macron has been congratulated by world leaders, including donald trump. votes, he hasn almost 63% of the ballot. his victory over marine le pen will prove a relief for market. ts. in germany, angela merkel has successfully -- 34%.ggested the cdu took the spd took 26%. it is a disastrous results for merkel's challenger. she's regaining momentum. in china, the foreign-exchange raise. bank of china says cash piles climbed by 24 $.5 billion. -- $24.5 billion. the trump administration is weighing a cut of 95 percent to the budget for the white house office of national drug control policy. theoffice ordinates much of strategy including responses to trafficking. it could see several grant programs for drug prevention discontinued. this comes at a time the president has pledged to aggressively combat opioid addiction. in th

in europe, it is politics. donald trump is unpopular in europe.tics for her to say what she did over the weekend, which is that europe needs to go its own way. there is a deep substantive disagreement on trade, on climate change, on russia, where perceive president trump to be the weakest president since the second world war, not defending rush -- against russia. europeans perceive that president trump personally is not supportive of the european union. to a lesser extent, nato. is theopean union primary institution they have built since the second world war. as for the tweet this morning, president trump is describing germany as a competitor economically and not an ally. in american fork policy. david: he said we have a massive trade deficit with germany. plus they pay far less. very bad. president obama's of menstruation advocated larger countries as well. he is he? >> no. president trump is right that most europeans are not paying much. they're supposed a floor of 2% gross domestic product on defense spending. 20 of 28 countries are below. he h

trump is striving out of europe. so europe needs to gain new strengths. showing will to deal with russia on the major topics on the world's agenda. sarah: we will see that will indeed be possible with so many questions about possible shifting analysis -- shifting alliances. thank you so much. one week after the manchester arena bombing, british police are appealing to the public for clues about the suicide bomber who carried out the attack. they have released an image of salman abedi with a blue suitcase in an effort to re-create his movement in the days before the attack. police believe he had the suitcase with him at two locations in manchester. the suitcase was not used in the attack. 22 people were killed in that attack. 14 people are currently detained in connection. as the search for accomplices goes on, britain's mi-5 is probing why they fail to stop the alleged attacker. he was known to authorities in much the way that berlin's truck attacker was known to police here. have a look. reporter: a week after the terror attack in manchester, rates and a

i don't think europe has anything to fear that the united states will not stand with them in europe. >> bill richardson, that's an important point. we cannot deny history. the last time russia was resugee ant, the united states was going to alone, we were in world war ii. >> we did. i think what the president said with with g7, we are changing our foreign policy. we will not endorse article v of nato which is come in self defense. he picks a fight with germany over bmws. it looks like we will renegotiate climate change with 19 195 countries. we are basically saying the big issue is for us. you pay your 2% for nato. we did not say anything about how we are going to be strong with russia in the sense that russia to european countries, eastern europe, western europe, they use leverage with natural gas. they push them in crimea. they push them across eastern europe. what you have now is angela merkel, the leader of germany, basically saying, look with france the new president of france, we will probably have to go it alone on climate change and defense. i think we stay in nato. i think t

bit of selloff risk in europe. let's get to abigail and she'll have more details on companies that are moving. >> of course the big story today fact that house republicans are trying to pass of american healthcare act 2017, or aaha not to be confused act.the affordable care let's hop to the healthcare sector and see what's moving. first up, these are the top the s&p 500tocks in today. bill. unrelated to this the company beat revenues by 1.5%. he company drug sales were good good. gilead sciences up 1%. bloomberg intelligence told our team, they are certainly on. eli lilyrug maker trading. now let's take a look the stocks bill.s i was fortunate enough to spend gives thee phone, he house bill a 50-50 chance of being passed. these stocks may suggest there's incremental risk moves toet passed and the senate. these are those hospital stocks off the loads but they are down. they have most to lose if the repealed. healthcare and obamacare healthcare thea most. both of those stocks are down. suggesting that maybe the bill

louis was supposed to go back to europe with american passengers on the cruise to europe. but of course in the passengers are going back. you can imagine what the atmosphere is on board at this point. it is not the same atmosphere as the first journey to cuba and all the newspapers are very much afraid of a mutiny on board. this is not exactly what the captain is afraid of. there are suicides on board because a lot of people don't want to go back to germany. the ones that were already in concentration camps cannot go back to germany. point the negotiations in cuba have failed so it is completely over. the american jewish joint istribution committee represented. he has very little time to negotiate with some countries in europe. those four countries are france, belgium, the netherlands and the u.k. it is difficult for those countries. i'm not talking about the u.k. of the countries that border germany that are close to germany because they already received the letter refugees across the border both legal and , illegal refugees. they have already accepted a lot of them. at s

continuing to engage with europe is important for us. i think it is important for europe.nk there are -- just like having to set up holding companies and united states, continue investment banking in the u.s., the european union is going to require us to set up structures across europe that make it more robust and more within the fold of europe. that's ok. erik: you know what i am getting at. does the hardness of brexit determine how great the impact a bank likerk barclays? >> you know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of the tenets of the -- you know, if there are a couple of things that came out of the financial crisis as a positive, one is the coordination of the g-20. one of the things the g-20 stuck thes, as we reregulate financial industry, let's not inhibit by putting up barriers to free flow of capital. so long as those barriers are not put up, there will be workarounds around brexit so london will remain a very important source of capital relative to europe. erik: relative to some of your pe

this is bloomberg. ♪ 8 and in europe it is victory in europe day.winston churchill , the celebration in france, it was a day of huge commotion in 1945. guy: in some ways very meaningful in the way the language has been used, talking about europe and the restart of the european project. tom: we will touch more on this. we welcome all of you worldwide. for a quickly, final thoughts of pascale auclair. what will you be buying tomorrow morning? i believe you are closed today. where is your enthusiasm for the markets? pascale: markets are open today. it is probably not the exact good market timing to be very bullish on what has rallied so much in the recent days, but on the long-term view, our asset allocation is really focused on european equities, equities in general, european equities mainly, with diversification on emerging-market equities. bonds very cautious on generally. guy: people talking about europe now talk about the political risk being removed. do you buy france or do you buy elsewhere in europe? is the momentum better elsewhere? the data i

europe is over, the battle for europe has begun.s lagging behind other european countries as well. then you look in terms of the work we do. we look at the number of alien heirs and the country with the or largestber inherited is france. the population of paris is seven times larger than the second largest city of lyon. i think that is the entire point. -- the next populace in italy possibly. france winds that, that opens the possibility of something happening in europe. >> this is the story about europe. for the past quarter, it probably group even faster than the united states. portugal, spain, these countries back. least they cut back on neighbor cost. would leavetry that a cost that has gone up is france. france is really the sick man of europe in many ways and that is what needs to be corrected. remember, france is fundamentally a socialist country. if you read on the commentary, expectations are quite low. expect haitians are quite low and -- low andis quite relatively optimistic this may be a moment of change for france becau

it was built to divide europe, to keep people in and ideas out.e of the division, nato allies stood united, in the face of freedom, democracy and human dignity. in 1989, the wall was brought down by peaceful protests, by popular movements, and by the bravery of countless men and women across central and eastern europe. each day, all those who will enter this building will pass this memorial. they will understand that freedom will never be defeated and that nato will always defend the values on which our reliance is founded. so, chancellor merkel, you were in berlin the very night when the wall came down, and therefore, it's a great honor to welcome you here to brussels, to the new nato headquarters, and the floor is yours. peace. >> translator: your majesty, secretary-general, dear colleagues, nato's new headquarters will be the future point of reference of nato. the modern building like the building of this headquarters is a reference to the future. however, if we are to find convincing answers for the future, it is good to remind ourselves of wh

where do you place europe?ssarily in the first place because of course, the main winners would be in asia. but europe is one of the big blocks in the world. clearly, the game is between europe and the u.s. if the u.s. keeps distance, europe will jump on this. rkets again, very quiet today. we will continue to look at them and their correlations. helping us will be carl weinberg. he has been nothing short of a miracle on japan. we will also discuss china and mr. trump with carl weinberg. stay with us. this is bloomberg. ♪ >> we have come to the conclusion that the agreement needs to be extended. we will not reach the desired inventory levels by the end of june. therefore, we also came to the -- itsion that ending by will be better at the end of the first quarter, 2018. francine: that is saudi arabia's energy minister, khalid al-falih . russia and saudi arabia favor through the end of the first quarter of 2018. kennedy, what does this actually mean? even if they cut production and extend the output cuts,c a can l

it certainly would it be to europe.he ireland because your livestock producers would be killed by that. so much of their trade is with the uk and if, as i understand it, you averted to a wto rules and ta riffs it, you averted to a wto rules and tariffs on meat exports ireland's industry would be decimated. and also looking beyond trading terms of politics. no deal in the event of there being nuclear withdrawalfrom there being nuclear withdrawalfrom the talks, what happens to uk citizens in their millions? what happens to be citizens in their hundreds of thousands enjoying life and the benefits of the uk? to my mind, a walk out is a difficulty that would not result in a settle m e nt that would not result in a settlement and that the worst of all options and that's why again i have just as the need of all parties to ensure that the process commences in an orderly way, with a set agenda. and from the irish perspective, one of our priorities must be that there is as close as possible relationship between the uk and the eu.

and europe. i asked her what is your objection and she said it would mean we would introduce unhygienic american products into europe. trade by definition means shifting cultures and this anxiety about unhygienic american products is very telling. that's the first one. the second plank is a feeling of collective grievance and desire for national recognition. trump -ism is defined by grievances against bankers, mexican, chinese and so on. ironically in europe it's the u.s. who is the bogie for these types of movements. folks who oppose the tip will say american products are on hygienic or we will have genetically modified american food and similar phobias. or take alexander to gai -- vladimir putin stop philosopher. for him liberalism is another form of invasive universalism that threatens russia and america is at its head. they described america as the kingdom of the antichrist that should be destroyed and will be destroyed. when i interviewed him he said liberalism is totalitarianism. with trump

the second big theme put forward is the identity of europe. we have an identity of europe.annot be compared with the rest of the world. we have experienced crisis and civil wars, we need to take a lesson in all of this to avoid war coming back and division, and keep the unity of this europe. when we see liberal democracies growing up in eastern europe, we see in northern europe also this. a feeling of fear for the future, as well as in the south part of europe. that is why he is putting forward the idea of a new method of having democratic convention, putting forward concrete projects. in order to better the people. it is a fantastic feeling, to see a young president being courageous enough to have been campaigning for months about an open europe. that was not something obvious. it was something that needed courage. facing marine le pen who was saying every day that europe is the problem for france. i think that is something which needs to be really put forward. secondly, he has been defending european values. 0ur republican values. 0n the theme of refugees he has been sayi

the world and europe are looking at us.ope and the world expect that we defend everywhere the spirit of enlightenment, which is threatened in so many places. they expect that everywhere we defend freedom, but we protect the oppressed. they expect that it would bring new hope and new humanism for a safer world, for a wld with freedom of a world of growth, of more justice, of more ecology. they expect that we are finally ourselves. the task in front of us, my dear fellow citizens, is enormous. and it will start from tomorrow. it will impose the moralization of public life. the defense of our -- the advancement of our economy, the few protections in this world around us. and to give everyone a place through education, work, culture. to refound europe and to ensure security of -- the security of all the french. this task in front of us is enormous. and it will impose the continuity and audacity. yes, tonight, we have the right, a right that obliges. you have chosen our city and that audacity we will go forward with it and every

there would be migration into europe, just as there is in the u.s.hink there is a problem with directory of population. >> do you worry about the trajectory of population? sam: where does demand come from? it comes from growth in population, to begin with. 28 countries in the euro. i think more than half of them have less people in them in december than the previous january. that is a real problem. last time i checked, the math said you needed a 2.1 fertility rate in order to maintain the population. is there any country in europe today that even meets the minimum standard? i don't think so. zell, chairman of equity group investments, and the senior european economist at citigroup. mark: i just want to remind you we will be speaking with the barclays chief executive jes staley on bloomberg daybreak: , 7:00t 7:00 p.m. eastern a.m. in hong kong. we have had the vote at agm. almost 90% of those who voted were for jes staley's reappointment. 14% of votes were withheld. if you take the entirety, 84% supported his reappointment to the board. coming up on t

and europe is drifting apart. she said that europe must plot its own course. is a watershed comment from the german chancellor. merkel's spokesman speaking to reporters in berlin. merkel considers it necessary to address the g7 differences. there clearly were differences, usually six versus one, the one being president trump. other comments are from the ecb's ewald nowotny. he is speaking to reporters in vienna. he says we are seeing positive news on growth and he says he expects more wage dynamics once the upswing is consolidated. it comes ahead of the ecb's meeting next thursday. he says we shouldn't speculate about the outcome of the june meeting. great things are expected next thursday. maybe a change in the rhetoric from the central bank. gold is holding near three-week highs, growing uncertainty over the looming u.k. election after a poll shows the conservative's lead narrowed. let's get back to michael purves. .nders corr michael, you won't be able to see this chart, but it is a wonderful chart by our wonderful queen of charts, hillary clark. michael, i

are you seeing a pick up in growth in europe? >> europe is growing. uk we seexceeded 2 million.illion. italy is coming up stronger, 1 million. france is picking up. they learn the value for money for cruising. spain as well. overall we have seen huge growth. it's becoming a global business. like i said, it's an alternative to any vacation. the biggest publicity is word of mouth. people coming back can say what a great experience what a great cruise that was. >> one of the biggest impediments to the cruise business is closed borders. under president trump we're potentially looking at that. how big of a problem has that been and will it be going forward? >> we distribute as msc basically globally. we have offices in 48 countries. we see people love to come to europe. they have issues with visas as well. there are issues with freedom of traveling already in the global world. but people find the comfort, the security, the exploration, visiting new continents by cruising. we think that america, to be exact, whatever trump is trying to achieve will not really affect cruising per se. w

give us an idea ofjust how low this might put us—europe, uk—europe relations? 2002, when gerhard schroder was re—elected prime minister of germany in no small part because he ran against, at that point, the prospect of the us and un invading iraq. despite a lot of high tension and accusations by hte us about old europe and so on, no one ever questioned whether nato was going to continue as a viable alliance. what we are talking about now is clearly something, a much deeperfissure, in that sense. it might be papered over going forward. certainly there are elements of the trump administration that clearly want to indicate commitment to article five and want go forward in terms of nato, but the fact that president trump is clearly somewhat truculent on this issue and also the fact that he has demonstrated a clear reluctance to adhere to the paris climate change treaty, and has given pretty strong hints that he is going to pull out of that treaty this week, suggests that merkel is almost pre—empting trump's move away from sort of western liberal international order

it's europe investing in europe.estment, i think, is effectively agnostic to what the ecb is doing from its easing perspective. >> talk to me about some sectors attracting most investment. you point at software and business services being strong? >> this is a fascinating area. if you look at technology, the silicon valley took the lead. where there's an opportunity in europe is the internet of things, the industrialization of businesses. with europe, on a mannering base, we're seeing a growth in investments into technology, into digitalization of europe's manufacturing area. that's a real opportunity for europe to take a leadership role. that sector, 25% of all fdi is in business and software technology. >> you say europe's workshop is the area. >> we're seeing the classic blue collar work is heading there. >> finally i'm just very curious about what will happen to china given all these regulations, the restrictions when it comes to fdi, outbound m&a, and those restrictions have been in place since the end of the yea

, and youngest population in europe.ou offer them, we all know what you offer them, a 12.5% corporate tax rate. donald trump is now saying he wants to cut corporate taxes in the us to 15%. your crucial competitive edge which has driven the irish economic recovery since the meltdown crash of 2008 and is being taken away from you. no. 0ur competitive edge on our eu colleagues and others is not exclusively or merely in the area of taxation. it is the adaptability of our workforce and the skills of the workforce. dublin is repeatedly voted among the top european... you may think that, minister, but look at... the record speaks for itself. the record could be looked at in different ways. look at the legal case in europe about apple and the way in which ireland taxed apple, one of the most successful corporations in the world. you know, you let apple put their profits in this country, and you taxed them at a rate that was less than 1%, much less than 1%. and the eu said this is not acceptable. the wind has changed and you're n

>> as she noted before, the wave so far this year has crested in europe europe, in austria in, netherlands, now in france. the la pen type party, all of which have fallen short. and afd has lost a great deal of support in polling. but i think this election just underscores how politics across the west is being reoriented around a new fault line. you see in paris a coalition of transformation in which you have a co lalition of voters, white collar, who are essentially comfortable with a more globalized integrated diverse world. then you have on all fronts whether it was donald trump here in the u.s. or brexit in the uko la pen, you have a coalition that's mostly nonurban and that is uneasy about demographic, cultural and economic change. you feel that they're being left behind or slighted. this is is the fault line. in the first round of voting. la pen won less than 5% of the vote in paris. we'll see the final numbers, but i assume it's going to be very low again. this is where we are seeing our politics divide certainly here in the u.s. this was the fault line in this election. it is incre

exodus: ourjourney to europe. this is the story about people who travelled for europe.y about people who travelled for europe. i survived schillings, isis, basharal—assad, the sea. i survived everything. —— shelling. the prosecutors. we are talking over half £1 million in cash. the difficulty here is that even though we have 20 sets of cctv, there is no way to identify anybody on that cctv footage. what we will say is that it was not me. —— what they will say is that was not me. to be honest, i see myself as a real boy, but they do want to be a real, real boy. i often go to london, where they go down with my situation. although i just where they go down with my situation. although ijust want it now. and the bafta goes to exodus: ourjourney to europe. that is great. i would just like to quickly thank bafta and he became we had making exodus: ourjourney to europe. and bbc for being so supportive during the process of this film. but i would like to mainly thank the courage of the contributors to share their stories. ido want contributors to share their stories. i do want t

i don't need to be in europe -- i don't need to invest in europe if i don't need to be there. all of these excuses, a lot of them are gone now. >> let's look at emerging markets, which has seen a spur of investor interest. is there momentum here that should be carried on or are investors getting ahead of themselves? >> it's a bit more complicated. you see some tightening in china. a mixed message from what is a big part of the emerging market story. in the other countries, it's specific. mexico has seen the currency move back to levels close or off pre-election levels. a lot of things have happened already. emerging market, if the u.s. continues to drain liquidity, and you can see dollar repatriation, it's not because people are investing in europe, the emerging markets will be a second derivative, where people will go there only if they don't find opportunities. but if we get the continuation of the momentum that we rebuild with macron winning the election, really emerging markets will be secondary to global investors. >> pierre was really talking about the macro picture, whi

how low could this put us — europe, uk— europe relations?-- 2002, the europe relations? think about back to 202, —— 2002, the chancellor then was elected in part because he went against the us invading iraq. despite high tension and accusations, no one ever questioned whether nato was going to continue asa whether nato was going to continue as a viable alliance. what we are talking about now is clearly a deep fish in that sense. it might be papered over going forward, there are elements of the trump administration, who want to commit to article five and go forward with nato but the fact that president trump is truculent on this issue and the fact he has demonstrated that clear reluctance to adhere to the paris climate agreement and that he made pullout of the treaty this week, suggest that merkel is pre—empting this move away from western liberal internationalism. thank you very much. british airways passengers have suffered a second day of chaos and disruption, as the airline struggled to restore service following a major it failure on satu

you say globalisation is too hard for us, so is europe.ve the euro because others succeed, not us. the atmosphere got heated. "i treat the french like adults," mr macron told his opponent. "you lie all the time." then each was asked about terrorism. translation: the safety of our people, the fight against terror and islamist extremism, you don't want to take it on and i know why. against terrorism, we have to close our borders straightaway, immediately, and that's what i'll do the moment i take power. translation: closing borders achieves nothing. there are many countries outside the schengen area that have been hit as hard as this by terrorist attacks, and since 2015 we have put back border controls to fight terrorism. in this debate the french people have heard two very different visions. now they have to pick a side. let's have a quick look at some of the front pages. the i leads with theresa may accusing european politicians of making threats against britain to try to influence the general election result. the same story in the ft, wit

lew: i am not an expert on europe.eir we are given the outlook for growth and what will happen with that said -- the fed. earnings,the s&p 500 the estimates here on bloomberg, yesterday -- in a year earning 16.5 times. times,p, 13 times, 16.5 how much can that close from here? let's not forget two things. a 15% has been trading at to 20% discount to the u.s. part of the discount is historic by discrepancy between the index. let's not forget also that part of why american corporations have we have this discounted to the leverage of american corporations, which is a lot more aggressive in europe. i would say the main story for european stocks is selected stockpicking in terms of cheap names you can find in europe. more importantly, it is about the gross potential and acceleration of the earnings. even if you were to assume the multiple discrepancies were not to close aggressively, you have more earnings power in some selective sectors and stocks of europe. medicin of carmignac and little exams are -- lew alex ander of no

does that mean building more in europe?ump goes down this tariff folly.t is a fixed of >> you mentioned one of the there is a threat of this, but the delivery is thething we will see and relationship between president trump and prime minister abe is going from strength to strength. the domestic gross accelerated. >> you see the animal spirits power and hee in and don't rely on the united states of america. there are all sorts of things that may or may not be happening. they will have to get the employment growth and the structure of reforms growing. they want to reinvest in europe and this is something you don't normally see. share yourlove to optimism. fear of brexit. that is the brink of bankruptcy out one country and it did not change their ways. >> you have put your finger on the polls here and merkel is playing her cards well. she says they will have to do and she saysir own that she is the pragmatist and not the populist. that is the leadership and means to invest. just recall that wisdom tree. up next, we will hear f

what is happening in europe?rs, europe has had an open border policy, free to travel without a visa. add to that, and extremely liberal immigration policy. in germany alone, angela merkel is allowing a million syrian refugees into the country. check out the pictures and you seem mostly young men flooding into germany, potentially an army of jihadists, free to move throughout europe. that's an insane immigration policy. here at home, trump is trying to limit the potential terrorists from entering the united states. it's not a muslim ban. it's a ban on a country of origin, a moratorium, actually. after all, there is no doubt. many of them hate us. no doubt many of them may even want to kill us. wake up, america. wake up, liberals. and wake up, ninth circuit court judges while you fight trump over political correctness. you make us less safe in america. radical islamic terrorists are plotting ways to get to america and carry out their jihad. once they are here, they are here. we cannot let them in order terror will

to buy europe?t practically speaking, the flows we are seeing my people are trimming their exposure in the u.s. to buy europe. there isn't an unlimited buying power globally. europe really does remain a compelling story to us. really for the reasons, it's all the right reasons this time as opposed to early 2015 when it was purely a weak currency trade. now, it is a sign of strength. the euro will appreciate over the course of the year. that is not going to hurt this time because so much business is going to emerging markets. jon: more auto sales coming out of the united states. we've got gm in just a moment. gm april auto sales down 5.8%. another downside surprise. to pivot back to the united states, bank of america merrill lynch coming out with their latest client survey. the lowest of any april since 2011. climbs -- hedge funds that -- a lot of clients elsewhere coming exposure. -- trimming exposure. , for us,fo 's certain numbers this morning are disturbing. will be focused on the numbers over th

we are continuing to engage with europe. it is born for us, it is important for europe.e having to set up the united states, continuing investment banking in the u.s., the european union will require us to set up structures across more robustke it and more within the fold of europe. >> you know what i'm getting at. does e rdness of brexit determine how great the impact is? jes: there could be decisions taken that might not be in the best interest of the free flow of capital. but i think one of the tenants -- if there were a couple of things that came out of the financial crisis as a positive, one is the coordination of the g-20. one thing that the g-20 step two is that as we, let's not inhibit by putting up barriers, the free flow of capital. so long as those barriers are not put up, they will be worked around brexit so that london will remain an important source of capital for continental europe. erik: relative to some of the peers, on the subject, you're an optimist. at least you are constructive. what is the upside to be optimistic? what gives you that degree of confi

it's the largest indoor concert venue in europe. police have not confirmed where it was, they say on the edge of the concert hall. those injured, around 60 of them were treated at eight different manchester hospitals. more than 400 police officers on the scene overnight, around 60 ambulance used. >> we are waiting for a statement from prime minister theresa may who has just held a cobra meeting, her emergency meeting with top security officials. we will keep an eye on 10 downing street. what is the question now, whether this person acted independently or as part of a broader network? >> that's one of the first questions that the authorities will try to determine. also the kinds of explosive used. that will potentially identify the group he may have been affiliated with, if he was afim y was affiliated with any group. since 2014, the threat level here has been at the second highest, implying there may be the threat of an attack. >> how, so far and the immediate reaction, has the news affected the conversation around upcoming election

hasraditionally, france been -- not an ally in europe -- but the most sympathetic listener in europey. this has gone back to the cold war, we have seen a number of french presidents try to reach an independent position with moscow previously and this is the first instance we have seen in decades of a french president coming into office with something of an anti-russian or not friendly towards russia viewpoint. this is the position macron started from, this is the result of russian actions during the campaign and positions they took toward them, even when it became clear he was all most certainly going to win. matt: where could putin benefit now from his benefit -- meeting with macron? is it just that he needs support within the eu? can he get that with a strengthening relationship? daragh: it is a little bit of those things. ideally, putting would like to him -- a more divided european union, he would like to see a position open up on sanctions. with a budding relationship between macron and merkel, and the fact that we saw macron being visibly annoyed at the podium, talking about an

everybody has given up hope on europe. whoots why europe remains attractively valued.u look at it and strip out financials, europe and asia both look fair valued against the long-term while the u.s. is trading very expensively. if you're a long-term investor, evaluation really does matter. it is probably about 80% of your long-term returns. so if you're buying high, buying expensively, you should expect not to make a great return. europe is still not expensive and you have that cyclical recovery story. matt: what do you like here? i'm looking at the g.r.r. screen which is a breakdown. a year to date breakdown of the industry groups in europe. obviously tech has really outperformed. what do you think is the right way to invest in the european story? >> as i mentioned earlier, we continue to favor the structural growth companies. the technology there. you can see a lot of companies and industries and centers there which by and large have long-term structural growth stories. there is a lot of transitions going on. four major transitions going on in global economy. one is

everybody is asking about the future of europe. of course, angela merkel's party in the eu had other reasons for being quite enthusiastic, that's because angela merkel's party won in germany. and it's quite a time for her and the backing of the eu going into the all-important election in september. and it again as was young candidates which won that election which also a promising time. back to you. >> all right. i'll pick that up there, thank you very much for that indeed, vanessa. guess what, emmanuel macron abouhas been elected as president of france. we've experienced divisions across the country. a lot of the socialists who basically decided -- well, they were going to go for either le pen or macron. macron won 66% of the votes. his rival candidate, marine le pen won 34%. a record for future elections. now, the euro bounced with the result, initially hitting a six-month high versus the dollar. incredible scenes down at the louvre last night. and ode to joy from beethoven. we had an ode to joy from beethoven at the louvre museu

where you see populism is in europe and the united states, and you see it in countries in europe that doing very well economically. so it can't just be about economics because germany is powering ahead. it can't even just be about inequality. northern europe has not had much of a rise of inequality. for example, the dutch have not had a rise in their coefficient, the way you measure inequality in about 20 years. sweden is growing very robustly. all of these places however do have immigrants, and that is causing an enormous amount of cultural anxiety. let's be clear, that is true and there are some legitimate concerns. by the way, there have been periods in the past when immigration has been restricted, even in the united states. the liberal international order still continued to grow. what it tells you though is that these things can be managed. you can find ways to address inequality. you can find ways to deal with immigration. in fact, we are in the one western country that is not going through a great rise of right wing populism, canada, and i would argue it is in large measure bec

it seems populism has been rejected by in large in europe. >> we've been invested in europe for the past ten years. having a presence here is increasing local knowledge. it's important as we continue to grow. also increases exponentially the pool of talent that we can recruit in asset classes. and finally a lot of our peer or competitors are based here, either onhe continent or mostly here in london. it's not only a competitive advantage to have an office here, not to make sure that we're at a competitive disadvantage vis-a-vis our peers. >> when we talk about your investment allocation, you have a strong focus on infrastructure. 47% of your capital allocation in europe is on infrastructure and pe. something else we saw in pe is the industry sitting on a lot of dry powder, record dry powder. that's because there are not that many compelling assets to envest in. are you still finding that? >> i've been doing this for a long time now. i've heard this element of a lot of capital chasing too few deals. i think where it starts to be worrisome is when we see our partners in the private equity

europe's chronicler. europe's companion. he researched and described europe's growth and development during the last four decades likeke no other. now an oxford professor he traveled to berlin for doctoral research. the theme of your became clear to him. in his most recent book, his call for freedom of opinion drew a lot of attention. he emphasized european institutions are the means to an end, not an end in themselves and they must adapt to changing needs. >> personally i find it unbelievably moving that refugees from all over the world are pining for germany as if it were the promised land. it is wonderful germany stands out in an ocean of nationalistic populism like an island of stability and of liberalism. given this scenario he continued germany and france must work together to further shape europe. >> we will be back after a shoht break. >> the dw media center. see it live. find i it again. here more of it. discover it. video and audio. in the dw media centert media center. ew.com. >> this is a 15-year-old girl being g

is there a justification of putting money into europe -- in europe? charley: it is a residual.f you consider that the u.s. has been performing, therefore europe is underperforming. america is this the fat guy on a suit on a seesaw. you have emerging markets, japan altogether. when the guy gets offer on, it must happen. people forget the residual is quite important. the dollar has been softening, other crowd -- currencies have been doing quite well. that explains european outperformance. anyone who is high-margin and that sort of thing. you can group these companies together and europe has been strong on the high-end industrial side, less on the.com and software tech companies. that is how it is. the money is flowing back because the dollar is at a temporary peak. guy: this is another chart. the white line is the spread between bunds and treasuries. it willa rate trade, continue to be a rate trade. what happens if we start to see doesed story unwinding, the euro rocket higher? charley: it does. the same chart for the pound and you can take these things back very -- many years. w