euros. little bit lighter than the estimate 51.5 billion euros. the first quarter operating profit is 3.4 billion euros. and volkswagen is reiterating its 2016 forecast as a whole. so we are seeing sales that are a little bit light of the forecast and we are seeing operating profit of 3.4 billion euros. i cannot tell you how that all compares with the estimates, but we are a little bit light on sales here and the forecast remaining unchanged. we will see when volkswagen stock opens up in about 13 minutes how investors are seeing this and we will continue to get headlines. but i'm looking for to the amount of money that they put aside to deal with this in emissions scandal. eurosut 16 .2 billion aside. we could see a revision of that although hopefully not by too much. and then i will look for anything in the outlook. they say they are reiterating the 2016 forecast as a whole. groups quite interesting sales resonating slightly but the operating profit seems to have been helped by special item

secondly, the euro is now used as a funding currency.ut we learned last summer is when you get some bad news in the market, the euro tends to go up. that is because its risk off to the euro tends to rise. ironically, if there is stress in greece, is probably supportive of the currency. caroline: it is interesting that we have seen germany really, fearsomely wanting no waiveringz in terms of how much debt relief gets. there is still that tension between germany and the ecb. where do you see the euro going, given what is happening in the european central bank at the moment? it seems to be germany's own account surplus that seems to be the real headache for draghi. >> i think this battle between the germans and draghi is key. to answer your first question, where is the euro going? we think it is going higher. our targer in bnp paribas is 1.16. thehi has signaled to market he does not really want to cut rates further. he is relying upon quantitative easing of the asset purchases. in that environment, if he is not going to cut rates, he will

deciding to stay in the euro goes up.ou look at japan and what is happening with this incredibly strong yen. you take some of this political risk and put it to one side. you see the euro going through the roof. how damaging could that be? lena: that is the worry here. mario draghi has been very bold to draw a soft line underneath negative interest rates. keen toe ecb are not have a stronger exchange rate, there's very little they can do about the fact that this is a market reluctant to take risk, even with the taxation of savings through negative interest rates. the concern is coming very much through the fact that in a world of negative interest rates, you don't have incentives to generate more productivity. you are creating incentives for exploiting operational leverage. when that is the case, unfortunately currencies like the yen and the euro tend to bear the brunt of the dp creation -- of the depreciation pressures. you can create a negative feedback loop. this is a very hated stock market recovery. nobody wants to ta

to 1.2 billion euros.ll be speaking to michael o'leary in just about 10 minutes time. boeing has won $11.3 million from vietjet, a vietnamese carrier. barack obama is currently visiting the southeast asian country. and that is your bloomberg business flash. sectoback to you. anna: burton will be plunged into a recession of its own making if the country votes for a brexit. that is according to david cameron and torche george osborne. eus is one month before the referendum. meanwhile, a controversial treasury in alice published today says thousands would lose their jobs, the value of the pound with slumped, and gdp would slump up to 6% in the event of a brexit. manus: and tomorrow, mark carney will once again, face members of the treasury committee. this will be his final public engagement before the pre-eu referendum. this comes after a fiery exchange with a pro-brexit lawmaker. he also accused carney of compromising the independence of the bank of england by making speculative pro-eu statements. let's brin

germany and the imf released 10 million euros -- 10 billion euros of aid and restructure athens debt.critical with critical details yet to be agreed, has the canned been kicked down the road again? quick scan the bank now avoid another capital raise? plus buyers choice, while monsanto might have rejected the $62 million -- $62 billion offer, the tone was positive. markets are just about to open. guy: let's take a look at where we think we will trade today. european markets are going to open on that front as well. there are huge numbers from yesterday being carried on or at least maintained. a little bit of traction now. it will be interesting to see where the end of the day takes us. the front end of the day. a bold move for european equities. let's get the details of what is moving these markets. stoxx 600 is up 3/10 of a percent. it is a broad-based rally. in asia, every industry group is gaining here now. it is the energy stocks leading. no surprise given we are seeing wti close to $50 a barrel. your of commodity producers and materials following closely behind up almost 8/10 of a

here you see a euro-dollar trade. euro gaining some strength.ming up and sort of balancing a long a level here. i've got a chart of pmi over the last two years. we've been hanging around this 55 level. let's get to our top stock stories with nejra cehic. nejra: bayer first and foremost, we saw this stock drop on thursday after bayer confirmed it had made an offer for monsanto. we got the financial details today. 37% premium to monsanto's closing price on may 9. we are talking about a $62 billion deal, the biggest ever takeover by a german company and it has pushed bayer shares to the lowest in more than 2.5 years today. it is down 3% at the moment. covestro.ooking at still has a stake in this plastics business. is it going to sell that? sell toe could bayer finance this all-cash offer for monsanto? finally, i'm looking at ryanair. company forecast that earnings growth will slow this year as terror attacks and lower fuel prices have been prompting airlines to cut ticket prices. ryanair expects net profit to rise in the year through march. we are

the euro dollar 1.14. we were looking at a much lower euro dollar. we have a guest in a half hour's time so we can get more into what's going on notice currencies at that point. >>> let's move on with the pmi data. japan's final raidirating shows industrial sector contracting with the earthquakes hitting manufacturing output. and in china, the official pmi fell slightly short of expectations. here in europe, our european equity markets mixed again. that's why you're looking at a gray spot on the actual map. but the xetra dax a little higher and the ftse lower. the nikkei off by a further 3.5%. air france having appointed a replacement for ceo. the replacement is familiar with the new firm after sitting on the board of directors of air france during the late 1980s. shares in the airline are off by more than 11% so far this year. >>> looking at another story, a report is says the state is looking to put its positions in some of the largest firms up for sale in order to pay for an aid package. >>> and the u.k.'s financial watchdog has now accused deutsc

for the euro.ncine: let's say the polls don't change. , 50-50, but it is not really priced in. people don't believe it happens. the day after, if the u.k. decides to leave the eu, euro falls through the roof, or collapses, or what does it do? kamal: we are looking through the lens of volatility. our view has been that euro would generally -- euro is generally underpricing the risk. the volatility move is more important for us. francine: very interesting. thank you so much for helping us understand what could or could not happen. kamal sharma, director of g 10 fx strategy at bank of america merrill lynch. up next, a new dawn for brazil. the government shows up for its first day of work. we assess the path ahead. ♪ francine: welcome back. breaking news. honda to recall 21 million vehicles to fix their airbag function. let's go straight to tokyo and bloomberg's dave mccombs is there. first of all, what i don't understand, 21 million cars being recalled. they come out with a statement saying how much i

cuts will include 800 million euros in operating cost, and 800 million euros in capital spending.comes as the new ceo aims to improve profitability at the former state-owned carrier. that is your bloomberg business flash. guy: chinese stocks trading in hong kong rebounded from a two-month low, despite a raft of negative economic data over the weekend. retail sales and fixed asset investment it all missed estimates over the weekend. malcom scott joins us from hong kong. the miss on retail sales and industrial output -- walk me through what the take away from this should be. i thought the retail sales number actually looked all right. malcolm: the retail number wasn't too bad, but it was the lowest. as with the credit numbers and industrial numbers. throwing that altogether, there had been real optimism after the march numbers beat estimates across the board, that maybe the economy turned the corner, that maybe things have stabilized. stabilization seems to be the word, but any hopes of a v-shaped or u-shaped recovery seem shot by the april numbers, which all undershot what economis

in the words of one euro zone, greece needs room to breathe. that is as the country's creditors are set to approve another payment to prop up the struggling economy. the greek debt is expected to hit 180% of its output for the second time. the greek parliament passed all the measures demanded by creditors. the wrangling now is over the fine print. reporter: greece is coming in for a lot of praise this time around. athens is serious about reforms even if there is work to be done in the deal could be on the agenda. >> the greek government has done a lot of work. pushing forward reforms and difficult measures. reporter: that could see greece seeing the next part of its bailout. some were worried they might face another long brussels night. >> many things remain open and unresolved. reporter: it all hinges on whether or not europe is able to make any concessions to greece on debt relief. one of the country's main creditors says europe has to and wants its partners to move fast. germany would rather delay a decision. finance minister says there is n

the two live on her 340 euro pension. from germany, giorgios can at least afford his heart medication. aphrodite is 86. she lived through the war, but never before were times as hard as now, she says. >> don't cry. i'm here now. reporter: to make matters worse, aprodite's landlord died last year. his family forced mother and son out of their home. in such cases, the association can donate goods, but they're powerless to give the homeless a roof over their heads. brussels' austerity demands have led to a four-fold increase in unemployment in greece. large portions of the population have slid into poverty. before the crisis, maria worked as a nurse. today, she has no chance of finding employment. she can't pay taxes or utility bills. and she fears she could lose her home under new foreclosure laws. >> often i crouch secretly in a corner and cry. but i know i'm the one who has to be strong, i have to keep both feet on the ground. reporter: what gives her the strength? >> my child. reporter: alexandros can't solve political p

you have said that your guidance is 2.3 billion euros.is reduced from the range to $2.3 billion. you thought the previous range was ambitious. >> yes, we are quite confident that we will achieve it. the reason why we made it more precise, a more precise prognosis, is because when we gave the prognosis of 2.8 billion euros wiese subtracted charges. now we take it in that that is the reason why we have moved it euros.billion it is an ambitious target, but it is feasible. anna: in april you also said that management said they were confident the dividend would be stable. what can you say about the dividend today? >> the basis for the dividend is the lower gap balance sheet and it is very good shape. in my mind, there are no doubt that we can continue with the current dividend, at least. anna: how strongly is munich re committed to ownership of the business? >> absolutely committed. we think that the integrated business model of primary insurance makes a lot of sense. meanwhile, it has been copied by many other insurance groups. borderline, be

germany has been defending the 500-euro note. the head of the bundesbank says there is no evidence you could curtail crime by removing the bill from circulation. sawbeen a while since i 500-euro note but i sigh went a couple months ago and i remember it well. catherine: you can't really use them in the shops, can you? markus: it is quite difficult. the only w 05/04/16 05/04/16 [captioning made possible by democracy now!] amy: from atlanta, georgia, this is democracy now! >> from the beginning, i've said i would continue on as long as there was a viable path to victory. , itght, i'm sorry to say appears that path has been foreclosed. >> we had a tremendous victory

this is the picture for euro-dollar. we've had a lot of currency moves, as a lot of central bankers were in japan. you can see euro-dollar 112.14. this is. european stocks falling. .19.e oil, 48 it data briefly sink below 48. emerging-market shares extending the rebound we saw on friday. i also want to show you bayer, making an unsolicited $62 billion all-cash offer to acquire monsanto, as shareholders worry about overpaying and valuation. let's get to the first word with nejra cehic. nejra: thanks. the u.s. economy should be solid enough to merit an interest rate increase this year, and the central bank won't cave to political pressure to refrain from tightening during a presidential election. the san francisco fed william president says so. he says well global threat has created a balancing act, fed officials probably will raise the benchmark interest rate sometime this year. bayer has offered to buy monsanto for about $62 billion. the german company offered $122 per share in an all-cash bid, a 20% premium to their las

euro aid payment. european close is next. stay with us. ♪ mark: live from london and new york, you are watching the european close. was it raining there? it looks to have been. that was a live shot of london -- looks like we are going to have our biggest two-day gain since february. what a turnaround, ending a trend that began last monday , gains,ns, losses losses on alternate days. the biggest gain since february cheered by the greek deal. greece will receive 10 billion euros from its creditors. have we avoided another summer of greek's content? m&a us has lost attempt of its market value today, the biggest loss since 2008. the chief executive unveiling the new reboot of its clothing business which has been ailing for the last four years. embrace thed not new strategy, worried it is going to hurt profits. the company will reduce styles to the clutter its stores and cut prices on some of its items and dialback promotions. cantor fitzgerald calling it evolutionary rather than revolutionary. investors we

that's compared to a previous to 1.9 billion euros.many's largest steel maker says adjusted earnings in the three months fell 30% from a year earlier to 336 million euros. that beat analyst estimates. the company's cfo told bloomberg how the steel block is impacting the industry. >> angela merkel could be helpful and we did see -- rice increases to reach the 1.6 billion to 1.9 billion makeup nine third. it is not only about price increases. nejra: a deck of has -- accelerating european economic growth. the world's largest provider of temporary workers said the sales rose 5% to 5.3 3 billion euros that beat the 5.2 8 billion euros average of six analyst hurt by phone carriers cutting spending on wireless networks. in its reports, a combined company, first quarter sales fell 9% to 5.6 billion euros. analysts expected 5.7 6 billion euros. -- the company is betting on the deal to tap into newer products, such as internet protocol .etworks that is the bloomberg business flash. mark. --k: china's index consumers let's get over to bloomberg's

will stop -- 924 billion euros -- 924 million euros.quarter for socgen. profits rose in the retail unit. the retail and financial services income comes in at 300 million euros, up from last year at 148 million. the equity's revenue, however, slumped 73%. we have seen a drop in their equities. equities revenue down 37%, excuse me. commodities and currencies, this is interesting. this is bucking the trend slightly. fic revenue up 16%, 689 million euros. that is additional cost cuts. controlling cuts, this is a theme we have had from all of the banks across the region, deutsche, barclays, etc.. socgen is not telling any different of a story. they are going for 220 million euros of cost cuts. they will implement that by the end of 2017. onse are the top headlines socgen. much more to come. let's get back to rishaad in hong kong. rish? rishaad: thank you, manus. hours before the opening in the emirates. how the world is performing this year is speculated that the commodities. that is why you will see this fic figure coming out strongly. it c

it cost its price target to 18 euros versus 26 euros. we are at 19 euros. shares today, the biggest decline on the stoxx 600 down by 11%. shery: thank you. let's get to bloomberg first ws.d nee >> president obama has become the first sitting president to visit a city destroyed by a nuclear bomb in hiroshima, japan, and 1945. mr. obama said he was there to mourn the dead japanese and americans. obama: since that day, we have made choices that gave us hope. the united states and japan forged not only an alliance but a friendship. emma: japanese prime minister shinzo abe praised president obama for what he calls his third for coming to hiroshima. global leaders meeting in japan pledged to bolster sagging economic growth. the group of said event industrialized nations round of their summit and glossed over differences on this goal stimulus. the ivory coast says it has arrested a suspect in a deadly inack by al qaeda militants march. the suspect is described as the driver of the vehicle used in the attack. 19 were killed when gunmen opened fire at a beach. hilla

the euro is at a two month low against the dollar. every single industry group on the stoxx 600 is rising today. again, there are loads of earning to tell you about. europe's biggest home improver is kingfisher. they had better than expected quarterly sales. improvet should following today's figures because of the pdq strength. it says early in the transformation program is not being achieved or exceeded. it's a busy day for deutsche bank. they are investigating whether it's inflated the value of securities in the mortgage bond trading business. that's according to people familiar with the matter. its last night, movies cut debt to one level. that is to levels above junk. it faces mounting challenges it carrying out the turnaround. the co-ceo responded and said his bank has never had or capital and could easily repay its debt many times over. investmenthe big for tax in 2016. weird down by 22% deutsche bank is down by 30% is down byit suisse 35%. chairs are rising as much as 13%. buy germany's wmf. it's going to make the world leader

the euro-dollar, there may be something there.e clear from house -- from how sterling has moved, they have not been priced in. some people have argued that if the u.k. were to choose a leave, euro-dollar could move a long way because nothing is priced in. we don't really know. it is very hard to disseminate. it is impossible to tell. that is the honest answer. i got to be honest on your show, ok? [laughter] matt: david, one of the things it reminds me of is the preparation for y2k. we will all completely freaking out in 1999 that the computers with some help not reset properly on new year's eve and the world would come to a standstill. you think this is more serious guy: -- more serious? david: it has to be, given what you just said. y2k made no difference whatsoever and became quite a storm. this is quite different. known --eld terms is a and rumsfeld terms, it is a known unknown. the result is largely unknown. i disagree with that. this is a very big event. we could be having a fed meeting two weeks before. this is a big thing.

one leader in berlin us about 0.55 euros. it will cost one euro in nairobi.new york, one euro and eight cents in singapore, you will pay two euros $.30. much of the excess has been turned into milk powder for storage but that does not help the farmers. in recent years, thousands have been forced out of business or turned to other products. >> back over to brent. >> here is a reminder of our top stories. former boko haram prisoner has spoken out telling dw the world is ignoring the plight of captive women in that despite her two-year ordeal she has had neither psychological nor financial support. a court in senegal has found the former president of chad guilty of torture, sexual slavery, and crimes against humanity. he has been sentenced to life in prison. only back to take you through the day -- tony for that. hello and a very warm welcome to "focus on europe." thank you for joining us. in paris, the revolutionary spirit lives on. off the coast of italy, saving refugees, but at what cost? and in slovenia, why europe is about more than just crisis. but first,

the operating loss then decreasing to 99 million euros.uccessive cost-cutting plans by the ceo, seemingly bearing fruit. but there is a big but. they have escaped management so far, but they will be the outside of the new ceo -- will he have better luck? alexander, and in terms of the outlook for the business, they expect to forecast savings to be significant layoffs set by unit revenue pressure. jane, putting that aside, is a very quick one. i have a very good chart here on the bloomberg next may, saying that the u.s. treasury can say what they like about what is happening to the yen, but against the dollar, it is fed policy. that is the point being made here. we have the odds of a 2016 fed hike in the white. the dollar yen in the blue. it seems to be moving in sync. jane: we can put this back to 2014. if we look back, that was an interesting year for currency wars. weakening, and from 2014, the ecb joined in and cut interest rates and negative territory in june of that year. and the latter half of the year, the dollar rally high on the n

right now we were talking about euro clear and euro clear bonds.d to buy the it began long before that. originally russia was talking about using notches the tb -- .ot just vtb they began the conversation with everyone from deutsche bank to goldman sachs but they decided to pull out because the u.s. told american banks, you should not participate in this. the european union quietly told european banks that you must be sure that this money, even though that russia, the government itself is not under sanctions, that this will not go to any sanctioned institutions. the banks' compliance departments were saying, we do not want to get on the wrong side of the regulars that regulators and u.s. government so they stayed away. do not have the traditional underwriters so that made it a very difficult issuance. more from ryan, including whether this was a political victory against some of the sanctions. president-- the evo is joining us from munich. .hank you for joining us when you look at business confidence, it is a little better than expected. what surpr

we think the euro yen might be aware -- a better way to play it. peter, thank you for joining us. the annual meeting following a series of missteps that has culminated in a $3.9 billion fine and the nigerian operations. itsfirm has since seen stock lose almost one third of its value. thanks for joining us. how did it come to this point? the company has been working to build this big company and they went into markets where few rivals wanted to go, and it paid off for them for a very long time. unfortunately what is happening now is the risk appetite has been catching up with it and there are now seeing a massive fight and prices have fallen by 50%. ,t's rival has surpassed them even though they are still the in the market. can this be fixed, is it something the company can turn around? >> basically investors are asking for clarity. with nigeriand it.orities on how to fix talks have been suspended so it is unclear where the fine will go and what the resolution would be. ,ut that is what investors want according to management of the and governance wi

. >> how can i live on 20 euros? >> the state owned group has incurred huge losses and has simply decided to slash wages. thousands took to the streets in the province to demand their money. amateur video showed protesters blocking the railway lines. they were trying to break it up with brute force. >> we are helpless. >> we soon experience firsthand just how intense the situation is. i have chosen men suddenly forced their way into the apartment. they have clearly been dispatched by the mining company. they force us into their cars and take us to a company office. the state-owned coal and steel companies are on edge. they are producing far too much and have run up huge debts. an estimated 5 million workers need to be laid off. the bloated state sector is dragging down china's growth. a problem the government now admits. >> we need to reduce industrial overcapacity. but the workers must not lose their jobs. >> it sounds like an empty promise. after two hours we are free to go. these people have worked in the minds fo

the traffickers charged 140 euros per person, taking 28,000 euros in all.aminu munkaila: more than 200 people in the car. t a poinin time ople ffoce eath. people suffoted,y overloaded the vehicle. people suffocate to death, that's one thing. and some time when you are going and your car breaks up on the way, that's another serious problem. people end up dying on the route. there were some few women in our car, they were about six, some from nigeria and some from ghana. this is a point and a place where they were just calling them, send them to their house and raping them whilst we were waiting for them to go. at that point if you try to misbehave they ask you to lie down and face the sun. imagine on the desert. reporter: aminu munkaila tried three times to cross to italy. twice the boat capsized and he ended up back in libya. on his third attempt he was rescued by a ship from the german charity cap anamur and taken to italy, together with other refugees from ghana. but they were immediately deported. aminu munkaila comes from a farming family. his father wa

qatar sold $9 billion of euro bonds.he deal brings sales from the region to almost $30 billion, as energy exporting nations borrow on the international market. hases in banco popular plunged after the spanish lender said it would raise by selling new shares to the company plans to use the money to clear failed real estate assets and restore probability. for yahoo!de a bid according to people familiar with the matter. it has previously been thought the telecom giant had decided against making an offer. shares in yahoo! fell 5% yesterday. at&t was little changed. that is the bloomberg business flash. francine: thank you so much. everything you need to know about today. two to three hikes the year, the first will come in june or july, that seems to be the consensus from fed speakers. one of the factors that could derail the june hike is a vote in the u.k. >> our meetings are june 15. 23rd.exit vote is the some amount of tail risk, destabilization. we will have to make a judgment as to how big a factor that is going to be in

this led to 2.4 6 billion euros .ncentrating on sustainable profitable growth, rather than short-term profits. that is your bloomberg business flash. anna? debt the imf says rising levels have become a significant risk for many asian economies. they expect asian gdp growth of 5.3% this year, a slight deceleration from 2015. they say debt levels have mae majorover t economies. peter, give us your thoughts. how concerned are you about the size of debt in the chinese economy? the imf made comments about that this morning. >> it has been a growing in chinan since 2008 in particular, but the imf comment is very amusing. i am not entirely sure they are actually making the observation. yes, look at hsbc. the provisioning has doubled for bad loans. it is quite obvious that china has got a problem. there were discussions on bloomberg about forming of a new will regardis that a banking moratorium. they are certainly aware of the issues. there is a massive rise in personal debt levels as well in thailand. in the european region,

coming up, a greek official says that euro area prior -- euro area finance ministers plan to give a greenht to greece. next up we discussed a roadmap for relief in that country. ♪ okay, ready? whoa! [ explosion ] nothing should get in the way of the things you love. ♪ get america's fastest internet. only from xfinity. bernie is mark: looking ahead to the summers democratic national convention in philadelphia. he told the associated press -- i think if they make the right choice and open the doors to working-class people in young people and create the kind of diamond -- dynamism the democratic party needs, it's going to be messy. he also said -- democracy is not always nice and quiet and gentle, but that is where the democratic already should go. 15 federal appeals judges are weighing arguments on whether a strict voter id law in texas discriminates against low income, black, and hispanic voters. the three-judge panel in new orleans ruled last year that it does. a majority of the 15 member case voted to hear the again. arguments to price and it's not clear when the judges will. islamabad t

vw brand dropped to 72 million euros from 540 million euros last year. them an operating margin for short of their midterm goal of 6%. the challenge from the emissions scandal. stock index futures plunged by the daily limit before snapping back in less than 60 seconds. contracts on the csi index 10:42d as much as 20% local time before regaining the losses within the same minute. it is the second sudden swing to rattle traders this month. chinese equities are in the crosshairs of short-sellers. domestic chinese stock has surged fivefold. the last time bearish bets were so high, such pessimist improved well-founded as china's market turned into a $12 million route. rose.se output year on year it fell three and a half percent but not as bad as the 5% drop forecast. household spending fell less than 1.3% forecast. investors await an announcement from the prime minister on a likely delay to increasing the nation's sales-tax. lawmakers calling for a postponement. reporting thatst deutsche bank is emerging at the center of a probe. no bank has been accused of w

and the euro is back where it should be around 110, 115. and as the year progresses, it will eat up some gains towards 120 by the end of the year. >> but until the fed possibly hikes? >> the fed is going to hike great but i don't feel the fed anymore. last year i was under the table, turn the hat on, squared of the fed and now you're telling me maybe they will raise rates in november? october? year end, quarter point, should a currency between 25% rise? no. so the currency should be under normalization. >> maybe you don't fear the fed but do you fare brexit, because many people say that will weigh in on the euro. >> if the uk decides to lead, then it changes things quite dramatically, as has been said by many people including ourselves. but from the opinion polls, for the moment, that is not the core scenario we have. and as the uk economy improves later this year, you know, we're starting to look at the rate rises last year. so the cable forecast is 160. 160. some of them might be having a bit of a wobble when i say that, but the forastor

the euro is up one third of 1%.et we had gdp of the u.k., showing the economy did grow by .4%. qatar sold $9 billion in bonds yesterday. tois pushing 2016 offerings a record 29 billion for the first half of the year. joining us now with more on these record sales is lyubov pronina, who covers the emerging markets for us. why did it need to sell double as much as investors were expecting? lyubov: basically, it needs to finance and raise more money. countries from the region are running deficits, because of the slump in major commodities and oil. this is a way to raise money, and a lot of money. it is an unprecedented deal. recently we had abu dhabi come into the market with $5 billion in on sales. and qatar in the past was a big issue. this is really unprecedented. next, we could have saudi arabia and the region itself is showing a record first half. mark: just the fact that it has plonked so much debt out there, it ensures that there won't be other offerings in the near future, other big offerings from the countries

two and a half billion euros. why are they doing this? it purely down to the property aspect of the business? >> yes, essential. 2.5 billion was quite a lot. to some extent it is fine because they say the first quarter called the provision fully adequate which turned out to be quite an understatement and -- raise their game. you have to remember in spain on average those type of bad loans in the property sector have provision for 50%. and these guys were 38. so they were screening very poorly in terms of provisioning. >> they expect to see improved organic capital generation capacity as you point out as well. do you think it is going to be a make a difference to them in the short to medium term too because it does seem like there is more than one problem they are dealing with. and you need to think of the entire sector being presumed. >> -- bonds are probably --. of course rates are not going up in any significant way in europe and also there is this. the plan of popular they want to expose of bad loans by --. that's ten times more than l

how does that play into your focus on the euro here? >> well, if they do something for bank lending, i still think there's a bit more room for carry trades and other things, and to still see some euro downside, as long as this is coming. on the other side, the euro strongly undervalued list as the u.s. dollar. if the median, in the longer term, we have to prepare for a situation that inflation is coming higher. and as inflation is coming higher, probably the ecb is not as convinced any more to ease monetary policy. and then europe can rise higher. but for the time being, clearly, the ecb is on hold, in particular, this week. they will promote more bank lending. they will talk details about this. and therefore, i would say it's rather a bit of a weaker euro as they moment bank lending. >> thomas, great to chat with you. head of global strategy at ubs investment offers. >>> hillary clinton has rewritten her schedule to focus on the must win state not before she and her husband bill march in a parade in new york. meanwhile, an attempt to r

the euro disney group is going on trial in france. company accused of publishing and allegedly discriminatory job at 10 years ago -- job ad 10 years ago. is said they should have european citizens -- being european citizens. they tonight any discriminatory intent. anyhey denied discriminatory intent. julie has a look at what is moving. julie: we have a lot of big headlines intact, top by hewlett-packard enterprises. they are now splitting themselves again and merging this play company with csc, which itself was spun off from another company. willtt-packard enterprises be spinning up the enterprise focused portion of the business, that is information-technology outsourcing. that will be margin with computer sciences. the deal is valued at $4.5 billion. meg whitman is trying to small size the company she ran. both stocks trading higher, particularly computer sciences. hewlett-packard enterprises has done relatively well since the spinoff was affected last october, rising by about 8% in that time. some of that gain is coming in today's s

the euro, 1.1142, has some reprieve.ices recently, weaknesses by half a percent. >> dollar is strong, flip side, gold gets hit. >>> jim bullard said a june hike isn't set in stone. but in an interview with cnbc, bullard did argue that market data suggests it's time to pull the trigger. listen. >> obviously, we try to be data-dependent, i don't think there's any reason to prejudge the june meeting at this point. we can wait until we get to the meeting, see what the data say and try to make a good decision there. i think on the issue of press conferences we have made many moves over the years, without press conferences. so, i think we could make a move without a press conference in this circumstance. >> keep in mind, no press conference at the july meeting. yes, in june, opening up the suggestion as other regional fed presidents this week have for two to three rate hikes this year. as for the risk of brexit and the chance that the uk vote could give the fed pause in its june meeting. bullard says he doesn't consider it it

euro area gdp was revised downward slightly in the first quarter.many was among the countries at showing strength, expanding at the fastest pace in two years. richard jones. give us a sense of how you analyze the gdp data. fromd david stubbs jpmorgan saying it was not as bad as people expected. this has been on ongoing theme for a long time now. germany is doing fairly well. other parts of europe are not doing quite as well. you need to look at the economic data in totality. germany doing welcome of the rest of europe not as well -- germany doing well, the rest of europe doing well, this is something you see in the european unemployment data. speed.ave that multi if you look at the chart, it looks like it is flattening out, perhaps turning lower. we are at a very interesting point. caroline: german debt outperforming. what is brexit adding to all of this? we had christine lagarde saying recession risks if britain exits the european union. really outspoken views about anti-brexit -- is anyone pro? richard: mark carney said have aay that we could tech

euro. the regression and the average before the crisis, remarkably lines up. this is a welcomed series and we are getting back there. nou are wondering with bremai will you get strong euro. i hope that was not too much this early in the morning. francine: it is not too much, and this is what people want when they watch "surveillance." bear with me, because this is energy junk bonds. it goes through the spread of a lot of these energy companies with treasuries. everything below the letter -- redline is anything below 10, which means distress. this is oil at $29 and this is oil and $49 so you can see their life is getting a little bit easier when you are looking at distressed companies. above $50 atraded barrel for the first time since november. that's get more on this with virginie maisonneuve. great to have you on the program. when you look at that -- when you look at rent above $50, it was a psychological level. what does it tell us that the markets are clearing a lot sooner than we though

as you mentioned jack lew today immediatie i meeting with euro group president today. i had a chance to ask him about that, he says he is confident the euro group will find a way to reach an agreement by their meeting next week on tuesday and i asked how close germany and imf are in terms of narrowing differences. >> there are a couple of things we can do up front this year or next year in terms of debt management. simply trying to reduce the cost of the main loans, loan package for the greeks. that we can do in short-term. long-term we have a number of options. debt maturity, grace period, looking at the interest rates also for the years to come. my preference listen to have quite clear choices in what kind of measures we are prepared to take and then see when they are needed and that is also listening to my german colleague. he makes the point quite rightly, let's see what is needed in the future. we don't know what is needed in the future. we can estimate it. we don't know for sure. so let's move on. >> some movement. >> there's been movement on both sides. those wh

they are at 22 euros.ake valued the company at 3 billion euros in the ipo underscores the shift from making equipment and consumer goods for the global health care market. what a day. what a first day for philips lighting. interesting day for the steel industry. steela's biggest company had its price target raised from 34 euros. that is on higher 2016 estimates. earnings are rising due to strong momentum in the eu. it maintains a hold rating on valuation grounds before today. earlier today, the world biggest steel company was up for a fourth consecutive day. it was on a four-day advance of 60%. some of those games have come off because today it is down by 1.4%. i want to show you the mouthful that is the bloomberg correlation weighted currency index for sterling because this is the best performing major currency this week. it is up by .9% and rising for the fourth week versus its main developed market peers. ,his is on the bcw i function the longest running since july when it fell to the lowest levels of a

the euro is against the dollar.er it was falling for the six consecutive day, the longest since march harriet sterling fell for the sixth day against the dollar. deficit.trade it was not as wide as the u.k. deficit. the 10 year yield, lowest since april. yield 1.2%,0 year the lowest since april. let's go to the u.s. bloomberg's abigail doolittle. , how does it look? abigail: games are increasing. the nasdaq is up .5%. the index, the second-biggest point drag, the shares of norwegian cruise lines. they reported an in-line first quarter but below consensus second quarter profits. it offered a range of $.80 to $.85, below consensus by 18%. stephen was in ski is saying these will be bought on any weakness aggressively. he believes norwegian cruise lines is positioned to benefit from continue strengthen the caribbean. that china could prove to be a pocket of strength looking ahead. mark: that is one of the biggest drags. what about the big point boosters? hill, kingp of the of the nasdaq, amazon. the stock hit a record h

euros fell to 2.6 billion , below the analyst estimate of 2.29 billion euros.berdeen asset management ceo's say they've resisted offers to buy the company. to sell ther tried business, but we do get a lot of people wanting to buy us, which is nice. francine: europeans? >> europeans from everywhere, around the world. asset management is a great business because the return on capital is so high. predictable,ble, so there's a lot of interest. being independent is a massive benefit to us. nejra: you can see that entire interview tonight at 10:00 a.m. u.k. time and throughout -- 10:00 p.m. u.k. time and throughout the weekend on bloomberg tv. goldman sachs holds its annual meeting. tough markets hurt revenue across the business with first quarter investing and lending revenue down on the same period in 2015. that helped drive overall revenue below consensus. that is the bloomberg business flash. francine: g7 finance ministers and central bankers are gathering in japan as they send mixed signals on how to boost a flagging recovery. the meeting takes place on the back

10 billion euros or more?ou have to differentiate between the cash outflow and what is being transferred as in liabilities going out of your balance sheet. so, these are only rough numbers. we all need to understand that currently there is a proposal from the commission on the table. this is not a law yet. this has to go into lawmaking process. a lot of details have to be hammered out. we are open and ready to have this dialogue with the government. on top of that, becoming a law, we also want to have certainty, i.e. a contract. if we were to make the first rough estimates on what the commission disclosed and they only disclosed industry average numbers, the first rough estimate, what it means in terms of e. on would mean that there was a cash outflow as i cash outflow of roughly $10 billionn -- in cash outflow of roughly 10 billion. final storage an interim storage, would be around 8 billion-ish. francine: michael sen, they do so much for joining us today. the chief financial officer of e.on. norway's governm