euro-dollar is up 11%. more.e will talk coming up on daybreak, the traits, theresa may's top brass clashes over there post-brexit plan. this is bloomberg. ♪ ♪ 6:22 in london, 1:22 in hong kong. it is daybreak europe, let's go to the splash with juliette saly. juliette: mitsubishi financial group is considering answer them and paris for its basis of security operations after brexit japan's biggest said it has never done candidates for the two cities, but a final decision has not been reached. global banks are expanding offices in the eu to maintain thes for the market before u.k. formally leaves the block in 2019. softbank is planning to make a direct office of charter communications after the company rebuffed its proposal with sprint. plans toese company make the offer this week although the plan is not complete and could change. sprint is scheduled to report quarterly results tomorrow. hong kong billionaire has agreed assets for six like 1.9 billion u.s. dollars. it serves corporate customers and residents. hutc

what is the relationship between the euro, the rise of the euro, and the equity markets?is the question. the correlation has turned negative. that is something we will discuss. futures at the moment indicated flat at the moment. a little bit lower on european trading to start the day. ♪ ♪ manus: ogwumike. -- will come back. ack.elcome b mario draghi has encouraged markets to look for patience. have a look at the euro-dollar this morning. you are seeing a rise. that is the consequence for the equity story in europe. rising again on the euro. these are the futures for you at the moment. down .6%.it lower, vodafone should do quite nicely. a bit ofeeing softness, because you had global equity markets making records. we are now at that opening. there you go. they are procrastinating in the u.k. there you go. it went red. anna edwards is standing by to take us through. the devil is in the details. anna: european equity markets there. looking at the sectors on the move, we have we'll securities down. telecom moving to the upside. in terms of the earnings story, materials is the

the euro here, a longer-term chart, i'm taking it back to 2014, what we are seeing on euro-dollar isushing towards that handle, it is at its highest and's early may of 2016. art of it is dollar weakness -- part of it is dollar weakness. i want to start with an update on chipotle. new concerns over food safety. the company's spokesman saying it looks like some illnesses that occurred in relation to one of its locations in sterling, virginia and were stemming from nora virus and not a food supply issue. that is according to a spokesman in charge of food safety at the company. nonetheless, reports coming after chipotle had begun to rebound following its last string of food safety crises. we see the shares now down by 5%. the company says that location is set to reopen today. we will see how this continues to shake out. overall in the u.s. we are seeing a downdraft but the nasdaq has turned positive by just five points, so not a big even as the dow and the s&p 500 continue to languish. we are watching the fx -- the effect of the failure of republicans to get a health care place past. we

euro stocks is this yellow line, the euro is the blue line. you can see the divergence.te. how strong does that wind up getting? i am not sure when i see these now back, but that is one of the -- i am not sure when i see the snap back, but that is why divergence is important. that is across global equities, u.s., europe, and emerging markets. does not really matter and it is more about the medium and longer-term. jonathan: if you are a big international player based in europe, you will get hurt -- that is the bottom line. so you have to differentiate between the domestic story within europe that does not rely on the currency and the international proxy everyone thought europe could be. do you need to make that distinction more clearly? the biggerght, but story is the global growth backdrop, the health of the economy, and the direction of prices and, eventually, wages, and that having a bigger impact and counterbalancing any short-term currency movements. alix: do you have a view on peripheral europe? jed: we do not have a particular view on peripherals. alix: you are ok

is the euro, this is the bloomberg euro index.this chart is showing it is back at pre-qe levels. talk about euro strength as some say yesterday was due to mario draghi not to doing enough to talk to the currency. how much of a currency -- of a problem with a stronger euro the if it continues to weigh on inflation? that is something he talked about we will talk about more this hour. and on bloomberg radio this morning, one guest was saying the blonde market behaved like -- the bond market behaved like the adults in the room. we saw the german spread tighten to its highest was still below 100 basis points in today's session. vonnie: you mentioned the currencies and it is one of the more interesting channels what -- what a monetary or fiscal policy work its way through. -- the dollar index and the yen is one of the beneficiaries. it is set a low this week but is stronger today. i thought i would point out the 12538, it is up from not too long ago. the reasons for today's move is retail sales came in at a strong and support to bank ca

the euro in their as well.to say this afternoon, will it tries the euro higher? the market is net long for the first time in two years so this gives you a sense of the momentum behind the euro. in terms of the speculative positions, they are the most bullish of the euro cents 2011. enough, not hawkish surprise. dovish shall we have a look at the bonds? anna: we have all of that conversation around the ecb. watching if he is not too hot, not too cold. it does not create any kind of interest surge in yields. that is the focus. let's get the bloomberg first word news with juliette saly. juliette: thank you. u.s. president donald trump has told senate republicans they should stay in washington until they repeal obamacare. the move sparked renewed negotiations two days after gop efforts to enact a new health care law collapsed. a group of 20 republicans met at the s night with white house officials to hash out possible costs including reviving a measure proposed by mitch mcconnell. u.s. senator john mccain has been

the broader dollar index hit an 11-month low decent move against the euro the euro hitting a why noteen for nearly two years since august of 2015, given those comments from mario draghi let's look at the euro over the course of the last month highlighting the effect that mario draghi's comments have had since that central bank meeting in portugal about three weeks ago. steady rise over the course of the month. 4.5% 1.165. worth noting the sintra speech and the speech yesterday, most of the comments were dovish, but investors focusing on one or two hawkish lines. >>> a quick look at gold prices, which gained 0.3% yesterday. they're down -- up fractionally now, 1,247 is the price of gold. >>> shares of microsoft hitting an all time high after reporting earnings after the bell. the stock has since pulled back after the company issued current quarter guidance 98 cents a share last quarter, 27 cents above estimates revenues topped expectations microsoft's ceo talked up cloud growth on the earnings call. >> i'm proud of the progress, particularly the strength of our commercial cloud result

the euro three and euro four deals are already on the road.cil's can shut them out, that is a problem for carmakers. manus: -- will all right, well i toss over to never attain it. she is going to give you your mid-caps movers here. nejra: when we look at european equities in general, energy stocks have outperformed wti since june.rst time some specific stories to look at. let us get to it. company,services ,asically, almost two months i up 4.7%. it was a beat for the second quarter. second-quarter net income beat. second-quarter revenue beat as well for subsea. we also are looking at hello oil -- tullow oil. it was a beat and gross profit beating, too. on the downside, one of the worst performers on the stock, asm international. we have second-quarter net income and sales after the close yesterday. the miss on the second quarter was largely down to currency effects, but the market seen something disappointing in these numbers because we are down 6.5% , which is in the semiconductor base. matt: up next, whatever it takes. that is what we heard

these aree time, higher proxies for the euro. they tend to outperform the euro. both should do relatively well. they are still targeting. a pretty decent range rate as well. mark: thanks for joining us. be sure to catch our speical report, the fed decides, 2:00 p.m. eastern, 7:00 p.m. eastern. this is bloomberg. ♪ mark: 2015, check out the currency market. small uptick from the prior quarter, sterling is up against the dollar head of the big fed decision. that's what were waiting for, a couple hours away. and in the bond market today, we saw bond yields rise yesterday. there was a real propensity towards riskier assets yesterday, yields declining as we approach the european close. this is bloomberg. ♪ whoooo. i enjoy the fresher things in life. fresh towels. fresh soaps. and of course, tripadvisor's freshest, lowest prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices from over 200 booking sites... ...to find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the late

seven what one billion euros. and come from fixed income trading fell. we will be bringing you our interview with deutsche bank's ceo john cryan later this morning. china's industrial firms kept up the heavy piece of profit growth, industrial profits increased nine pain -- 19.1% in june from a year earlier. accelerating from the pace earlier. it underscores the momentum and helps the nation's indebted companies grapple with their giant debt load. the u.k. prime ministers director of strategy has resigned aiming the british government without the office of her brexit fission and at a vertical time. chris wilkins will leave his post at the end of this week. the departure means that may has lost both of her top strategists in the wake of last month's general election. still in the u.k., theresa may's government has commissioner -- commissioned a report about the economy. it comes a year after she became prime minister prompting questions as to why such a study was not conducted earlier. they have plans to develop to

positioning is very strong in terms of the euro. momentum fortrong the euro.eer you suggest we may done the near turn damage. we were down 10 tips this morning. you have a slightly contrary and view. if all the world is long the euro you're not. thanos: at this point i would be short. i do not expect that they can decouple for so long. when you look at data have been surprising. for these to be we are expecting a march lower -- much lower exit. major policyct any reforms. this debate is going to be difficult. the experience with the euro so far is they respond to the crisis. manus: the chart i have got for you here -- live tv is never kind to you. where is anna edwards when you need her? this is the budn move. i want to tie back to your thoughts. move.is is the bund do think the market has riced itself to the extreme in terms of the hawkish tone question mark this goes back to the first question. has the market over arched itself in terms of the upside or the damage the ecb could do? thanos: it is not a clear picture. yields might be a better indicator on with

the cost for each guest fifteen hundred euros. all expenses paid by skoda. such shit but i don't know whether they'll bioproducts but at least i was able to offer them a wonderful trip. the real target audience the three billion television viewers and nearly two hundred countries. on screen visibility is a must so right before the race is passed by this sponsor organizes the free giveaway. ideal for the company's coloring logo to stand out in the crowd well having a bit of fun. because it's you know it's great fun this with the detour through all. the names parade sponsors spend up to five million euros a year to be the most visible to the public eye. tension is hanging over the trumpet ministrations first round of trip trade talks with china. both sides have canceled their news conferences which had been scheduled for after the negotiations began this wednesday. us demands have been fairly blunt after months of criticizing china on the campaign trail. president is asking for american goods and services to have more access to chinese market. us treasury secr

the euro against the swiss is the highest since january 2015 for the euro.he highest since the fnb removed its minimal rate. that crashed down will miss all the s&p remove that rate. then they climbed from one of 52 110, now 1.13. what a difference a few years make. let's get to bloomberg first word news with juliette saly. several key republicans said they are ready to vote for a strict down obamacare repeal -- stripped down obamacare repeal program after they received assurances from paul ryan that his chamber would not pass the measure. mitch mcconnell's skinny repeal the wood and the requirements that individuals by health tourance and suspended it 2026 that companies provided to their workers. the senate is given final approval to strengthening legislations on russia. it gives congress the power to block donald trump from lifting them. it goes to the white house, which was given mixed messages about whether the president will sign the legislation. written aaramucci has profane tirade. he gives an exclusive as he describes him as a paranoid schizophrenic

the euro area growth might be in an upward trend. interesting to see the euro kicking higher. he is talking about how the risks to growth may be on the upside but emphasizing costs and wages. pressure still remains. the oil market, interesting in relation to what we have seen in state petersburg. crudeing deep cuts to exports next month, pushing the oil price of 1.2% at another .6 this morning. yusuf on thee have the first word news with juliette saly patiently standing by. juliette: thank you. u.s. president donald trump's son-in-law did all -- jared kushner said he had no contacts with russia. they spent two and half hours answering questions from senate investigators examining meddling by moscow in the 2016 election. >> i did not collude with russia. nor do i know of anyone else in the campaign who did so. contacts.mproper i have not relied on russian funds for my businesses. and i have been fully transparent in providing all requested information. president trump and his advisers are reportedly discussing in private the possibility of replacing attorney general jeff sessio

and euro.ove haves and have-nots in europe, so we have eastern europe performing relatively well, and southern europe performing poorly. so the ecb will have to continue to consider policy for the weakest link, and right now it will be the periphery. we continue to see, native policy there. i think that europe needs it. on the other side in the u.s. and mohammed's comments are very accurate, we have an enormous amount of complacency across financial markets. there is confidence that the fed will be on a light path toward normalization, and the bottom-line is you can have divergence, and the whole theory is that you cannot. the ecb will have to be easier, we have global inflation as well, and divergent economies. we are seeing strengthen american economies, best in american economies come and everyone thinks the fed will be there forever but they are not. jonathan: you talk a little bit about the relative value opportunities across major economies, and here is a chart that has the story. walk me

the euro is in the ascendant when it comes to the euro-pound exchange rate. how does one play sterling given all the different factors, u.s., u.k., europe, economics, so on and so forth? ill see sterling as independently week. we don't have particularly constructive views on either of those currencies. we would look for sort of sustained sterling losses against a broad basket of currencies. if i were positioning for it, that is how i would play it. we see sterling as independently basis as thetained market replaces that prospect of higher rates. mark: have a good weekend, adam cole. let's get the bloomberg business flash. here's taylor riggs. taylor: shares in ubs have fallen the most in six months after the bank reported a decline in its ability to absorb losses. 13.5%.io came in at meanwhile, ceo sergio ermotti has told bloomberg he's in no rush to make brexit related choices about the future of the business. >> we will make a decision later, q3, early q4. we have a lot of flexibility and we don't see that we need to put pressure on the timing and find ours

dave, onyou wonder, whether the euro bulls are taking it too far? now the euro 1.16.he bigger euro-dollar playing a big part in politics. david: the dollar moves lower, that is a clear-cut trend. you have an incremental strain in the euro overnight. have a look at the close overnight. the s&p 500 is closing off a few points from the top. the telcos are very much in focus. microsoft earnings we will be fleshing out in a few moments. have a look at the nasdaq. last i checked that was the ninth straight day of gains. yvonne: a record. david: longest streak, two and a half years. yvonne: that is the case, these tech earnings quite strong throughout the week. take a look at equity futures in asia. day aftering a red the remarkable nine day winning streak in the msci. we are down in the europol, down 0.25%. kiwi, .7404. rba's neutral, nominal interest rate. i am watching the bank and energy. brent over $50, shying away from that level toward the close. the aussie dollar has been the clear mover, roughly at the same levels this time yesterday. yvonne: look at how things are

. -- to buy the euro.we get into the conversation about what it is. is it september or october? simon: it depends on how old-fashioned you are. obviously, it was leaving it open. i think there is going to be there pressure to's -- to stop tapering next year. sustained euro strength, which is a possibility , but i think is going to make it difficult for talks. -- for hawks. i think it is going to start to create a challenge. -- mber, we always used to say 120 was the right price. if you get above 120, i have concerns that currency strength will emerge and make it harder for the ecb next year. manus: it is currency wars, in essence. are.is where we this is the chart and and i started the show with. that momentum, do you think the positioning in the market -- it is interesting as well. we are just turning slightly longer here in terms of our positions relatively speaking. this is the bloomberg euro index. if you weremon: talking about speculative position, there is an expectation that people are positioning f

he has some interesting calls on euro-dollar and pound euro.ocks started on a firm footing. and metal gaining. we are seeing a lift for energy companies, but also miners. the dollar is strengthening against all of its major peers. i want to show you crude, probably one of the most interesting charts. it is the longest winning streak this year. it is extending gains after we had industry data on friday showing the number of active u.s. rigs falling for the first time in 24 weeks. a little bit of a caveat. trading volumes today, many markets ahead of the -- light ahead of the fourth of july. investors awaiting friday's report on the american job market that will bring a little bit more insight into the fed thinking. later on i will show you the dots the fed published to the market not that long ago. ruling party lost one of the elections in tokyo's assembly. this is bloomberg. ♪ ♪ francine: data deluge. extending the longest winning streak since 2017. the liberal democratic party moves toward the assembly vote. -- brexit backlash. this is "bloomb

still seeing weakness in sterling and the euro. the pound is weaker. the euro down by .2%. 14 monthit hit high yesterday. in the fixed income space we are seeing yields in the core and periphery. above 49 dollars a barrel. we are seeing a little bit of weakness today. investors getting cold feet ahead of the ecb decision tomorrow. euro strength has really been the trend this year. mario draghi may determine whether the euro test the 200 weekly moving average. mandates be the ecb's is not to maintain currency levels but will this be something that causes him concern. euro-dollar weakening after it had been strengthening yesterday. very important to keep an eye on the treasury and spread. we saw this coming out yesterday. since back in november. 1.7 percent yesterday. coming up ever so slightly today. this is the key spread to watch. morgan stanley higher today. up almost 3% after the bank outpaced one of its biggest peers. morgan stanley's one point two $4 billion in fixed income trading beat goldman sachs for the second quarter in a row and morgan's equity trading also outp

the euro notching up a two-year high against the dollar. markets are recovering from that, but we're seeing weak trade. very, very little movement, all hovering around the zero mark. let's look at how the currencies are looking this morning really important this week we've seen so much focus on the central banks. the euro which yesterday hit a two-year high against the dollar made further gains this morning up 0.1%. moving over to cable and other important trade, up around 0.2%, still cannot quite pierce that all-important 1.3. just getting there, flirting with it. not quite. let's head back on talk about -- before i get back to you, the latest survey from the european central bank, which has said eurozone inflation may slow more than expected in the coming years. after the central bank kept its policy unchanged based on responses from 56 forecasters, the ecb said inflation at 1.5% in 2017 and down to 1.4% in 2018 a tenth of a percentage point below forecasts from three months ago the central bank said gdp growth in unemployment could excee

the euro is back to 2015 levels. where we are in terms of the bloomberg bureau index -- euro index. the market for the first time in three years. this is where the risk of a stampede comes. if he is not hawkish enough, get ready for an absolute stampede for the door. speculators are the most bullish since 2011. he needs to keep the balance correct. to 117.erride up s.a.p. gets 55% of their revenue from beyond the european shores. that is a snake and the -- significant number. we had michael sullivan from credit suisse. the cio. there is in his view more of a likelihood. let's just get a price on that. let's return. it has not come up. what you're seeing there is michael's view. that you probably will see -- you have a higher probability of a hike coming from the u.k. versus everybody else. that is before the end of the year. stocks are better bid, waiting for mario draghi. mario draghi. we will be adjusted in what he has to say. where we standt in terms of the market this morning. let's start on the left-hand side. d

the euro.when you get in and out. the current account story makes it very hard for the europe to have a lower hit. -- euro to have a lower hit. alix: my big question was what are we going to see in the next eight to 12 weeks. w of clarity to talk about something to tapering. he said economic assessment, but what really are the data points? >> i think you made very clear he did not want to be boxed in in terms of specific indicators or in terms of timing for making a decision. elementit important will be for us happening on the other side of the atlantic. what is the fed going to do, partly because of the impact on the euro and on financing conditions for generally. there will be a couple more days on inflation. i don't think anyone is expecting any dramatic change. the more time passes and they see very subdued underlying inflation, the stronger the case for being patient and not tweaking. lastly i think it's important to acknowledge even though mario draghi is stressing anonymity by the framin

that is going to put pressure on euro economy.is actually pretty positive for our economy and our stock market. of what they are doing with their fixed income market, there sovereign market, and getting rid of this for a long amount of time and changing that focus on whether we will have negative rates in europe. signal,it is a massive really, for what is going to happen with monetary policy in different regimes. jonathan: mike, is this something to be nervous about? from the federal reserve, this has been the loosest tightening in history. surely we are about to seek loosest tightening from history from the ecb and the fed. mike: i think in terms of europe, i do not think it is a great concern to continue to have easy policy and euro. you have have this and have-nots in europe, so we have eastern europe performing relatively well, and southern europe performing poorly. so the ecb will have to continue to institute policy for the weakest link and right now, it is going to be the periphery. we expect to continue to see accommodativ

mercedes is reported to pay 8 million euros a year.ed to the most importance -- import and sponsor adidas, who pay about 25 million euros. now vw has pushed aside mercedes. the agreement with body dos -- adidas will continue, with the price rising to 50 million euros. vw was already the main sponsor of the german cup. that ties into why the figures have become so inflated. right now, there are different sponsors for the german cup and national team games, but soon one sponsor will be charged for everything. the current contract expires at the end of next year, so the germans will still be sporting the mercedes logo in russia at the world cup. then it is vw's turn. daniel: i will be passing the ball over to sarah now. sarah: thank you. euro 2017 kicking off on sunday for the women, with the netherlands and norway. germany hoping to defend the title. if they do, they will receive a record of 37,500 euros per player. it sounds like a lot, but still nine times less than the men's team. yet, it is worlds better than the set of coffee cuts -

rishaad: let's talk about euro -dollar, most are bullish.ear of missing outcome of the momentum trade, everybody in that camp. is, perhaps go the other way? >> clearly after the u.s. election a lot of u.s. longs have been put up, and it is mostly concern and fear of the so most ofections, these traits have reversed and you are seeing the u.s. dollar positioning at the lowest level reversed9, so it has from a flow perspective. fundamentally if the fed will hike interest rates one more time this year, and then next year to-three times, and clearly the ecb is not anywhere close to hiking interest rates, so the interest rate differential should seek the u.s. dollar. haidi: when you look at the u.s. dollar and what happens with u.s. treasury's, there is a sense that equity traders, fx traders, and bond traders are second-guessing whether janet yellen will do what she says she will do, or we get a dovish series of hikes and have a of the balance sheet. i think that is clearly what the markets are saying now, u.s. data weaker compared to european d

the hamburg shipping volumes are not going to love the euro at 125. the ecb, mario draghi are sort of sensitive to that. i think that kind of gets back .o this balanced discussion vonnie: what are the things hanging over this? europe just negotiated with japan. negotiations over the next few what both brexit and -- at point do the trade relationships sort of settle again, and what does it do for the world economy? to answer may try that question in terms of political risk momentum. what happens in the french elections is this concept of whatever -- trump was only making europe stronger. macron won, with a bit of populism that decayed on the vine. macron's victory was a punctuation of that concept, and with that some more political strength, not just reforms, but perhaps a stronger hand on the table, whether it's vis-a-vis the u.k. on brexit or vis-a-vis global trading relationships there. there's still a huge question willas to whether macron have the follow-up momentum here. in the u.s., all the fiscal stimulus is of course, that option is much furth

that does feed into the euro. we saw the euro hit its highest since may 2017 yesterday.are at 1.1524, a little weaker on the euro in today's session. that moving up towards 200-week moving average. is it going to get there? draghi in the driving seat tomorrow. is he going to try to manage those expectations of signaling of tightening of a pullback in stimulus? european equities got to be taken into account. we've been seeing that relationship come back where it is having a negative impact on the dax and eurozone stocks. francine: thank you so much. oil has slipped after the american petroleum institute was sent to report an increase in u.s. stockpiles. people familiar with the data say inventory rose by 1.6 million barrels last week. that contrasts with a bloomberg survey. oil has been lingering below $50 a barrel despite agreements by opec and its allies to curb output. scaroni,h us is paolo vice chairman at rothchild and sons. thank you so much for sticking around. when you look at the price of oil, opec and russia will meet to review their production cuts in st. peter

francine: do you do euro-dollar or euro-pound? pound-dollar or euro-pound?phen: i would be more interested in doing this from a euro-sterling perspective. on the one hand you have political risks from a snap election, how labour is doing in the polls, those are going to materialize. the rate revealed of eight in september. party conferences in october. that will largely offset the impact of a weaker dollar. there's not a lot of move on either side. euro-sterling is the one where you want to look for opportunities. francine: what do you make of the hawkish comments from governor carney? unclear whether it was some kind whether theion, first time he'd spoken, he was misunderstood, so he wanted to make sure the markets repriced. stephen: i have decided that it is completely worthless to try to figure out what their strategy is. the net impact of what they are doing is confusing the market so he doesn't get caught up excessively in one direction or another. francine: what i'm trying to get out, is there a danger that markets basically have blinkers on, that mark

the opening game of this euro 2000 and tina turner meant kicks off wednesday, just —— euro 2017 tournaments with under five minutes to go, austria are leading switzerland 1—0. nina burger with the goal after 15 minutes. it's just over a year it'sjust over a year ago it's just over a year ago that the iceland men's team embarrassed england at euro 2016. their women's side take on france later, and while the players may be different, the icelandic fans have clearly not forgotten that success, and they've come in number to the netherlands. at this moment, most tickets sold for the euro are being sold in iceland. considering that germany, england and france are playing, iceland have sold the most tickets. we will make noise, for sure. johanna konta joins me here today. what was it like getting to that semifinal and having the crowd behind you? i guess the whole fortnight was a tremendous experience to be able to play on centre and scored one end in front ofa centre and scored one end in front of a home support and really live ex—match —— each match. it gave me goose bumps when i went out there

the euro stronger.dence coming out for a six straight month, a climb to a record high. the report solid, the euro stronger. .30 on 10-year treasuries. we give up some of the games we have seen through the year. up for basis points. bonds very much on offer this morning. 29 mins away from the open. let's get to the movers with alix steel. alix: 29 companies reporting today. 5%.eral motors off by . there was an issue about higher inventory in north america. caterpillar up by 5%, raising its revenue outlook. shares opening at the highest level in five years. united technology down about 1%, raised its full-year sales view, but that was a little under the street consensus. we will be delving into industrial later in the hour. mcdonald's up by almost 3%. same-store cop sales crushing it. overall sales up i 6.6%. in the u.s., up by 4%. they unveiled a one dollar soda credit, and they said that helped to bring customers in. t customer headcount in five years. eli lilly, proper did rise. it's rheumatoid arthrit

on euro-dollar. we are up .5. we have seen it spiked higher and initially move lower after the decision but moved higher during mario draghi's press conference. i wanted to look at the euro-yen because i was watching this this morning in terms of a key technical level, the 200 weekly moving average, questions on whether the euro-yen would cross that. it does not look like it has done it. vonnie: thank you for that. the euro climbing as ecb president mario draghi sets the bank needs to be persistent, patient and prudent. here's what he told reporters in frankfurt. ofa very substantial degree monetary accommodation is needed for underlying inflation pressures to gradually build up in support headline inflation development in the medium term. vonnie: for more analysis, let's bring in richard jones, fx and break strategist for bloomberg markets live. the euro reacted, but what did we hear that we were not expecting? richard: it is a bit of a tale of two markets if you look at the periphery and the core y

euro.usiness with it. it is your calling card, issued overvalued for you and getting to be a bit of a headache for you? as much as we are making it out to be? patrick: the only area we see currency exposure having any sort of impact -- and it is really the first time in the decade or more that i have been here that i have even talked about fx, the strength compared to the dollar is the important one for us. you can brexit is not a big deal. it is 2% of our business. everything we invoice and the u.k. we invoicing euro, not in pounds. america, we are pretty much self-contained. it is not a big deal. our costs are insane currency as our sales and the same is pretty much true in asia. manus: we are going to have to draw a line under it, but thank you for your perspective this morning. that is patrick thomas, the ceo at covestro. guy: the hellenic hiatus is over. greece goes back to the bond market after a three-year pause. they are planning 1/5 of its balance sheet from london to frankfurt. wh

the day before that speech the euro was at 1.2158. today we are near the highest levels since january 2015. the 10 year u.s. down by a couple of basis points. fomc yield rising. a big move away from the haven assets. andcrude oil up to $48 change, exchanging gains. yesterday showed crude stockpiles plunging. inventories tumbled by 10.2 million barrels last week according to the american petroleum institute. let's get the bloomberg first word news with juliette saly. reporter: the u.s. senate has rejected mitch mcconnell's health care proposal. that came at the start of several days of debate. meanwhile, the house has voted to strengthen sanctions against rebuked president donald trump's by preventing him from unilaterally lifting penalties. australian's dollar has a slumped against most major peers after slower than expected gains in consumer prices. meanwhile, philip lowe has reiterated his view that australia does not need to follow other central banks in withdrawing stimulus. >> just as we did not move in lockstep when market stimu

the eu has warned it could find poland 4 million euros for defying the order and 300,000 euros per day it complies. daniel: it's back to gerhart now for sports. gerhart: cristiano ronaldo, one of football's most marketable players, has a feared in court in madrid -- has appeard in court in madrid on tax charges. he has denied accusations. reporter: the media gathered outside thcocourt in madridd where people were there. he has believed to instead arrived through an underground entrance, avoiding the crowd. he is here in the court. the prosecutor has accused rinaldo of using shell companies outside spain to avoid 14.7 million euros from taxes made -- in 2016, a barcelona star and his father were found guilty on three counts of tax fraud. ronaldo's appearance was short-lived and he was thought to have left the way he arrived without facing the media. >> well, just a few words. the player has given his testimony. everything is in order. he's already on his way home. in about 15 to 20 minutes you will receive a press release with all the information. reporter: much to the disapproval of th

versus the swiss franc an overweight the euro versus the swiss franc. as you know, the swiss franc is a safety currency. with the political risk out of down, we think that will help the euro and take some of the safety trade away from switzerland. vonnie: thank you and we always appreciate your time. let's check in on first word news. president trump legal team is making headlines again. according to the washington post, some of the president's are trying to undercut special counsel robert mueller who was investigating ties between the trump campaign in russia. the post says the lawyers are building a case that mueller has a conflict of interest. is thele, john doubt lead attorney on the russian probe. he replaces the longtime trump lawyer who is set to be part of the team. the u.s. government will ban citizens traveling to north korea. an american student died after he had been imprisoned there. he was in a coma when he was released from north korean prison. the imf has ended two years of speculation and agreed to another they'll out for greece. it say

talked about the european euro. we talked about things american should be educated about and should unders dan. you cannot be empowered if you don't have this information. let's go back to the show. >>> it is very interesting, you are muslim and live in cambridge england. you find yourself in london. of someone of your faith when you hear targeting muslims instead of separating islam from t community how do you respond to the stereotype? >> i think the best way to respond to any stereotype is to live the example you want to show. tell people want you want through your own actions, through your own good intentions. do opposite of the ones who want to get in the media. they want to make ashot , instead you be the common. yoube tolerant . so i think communications for your actions is the best way. >> what do you think causes these young men, 22 years old, some people would say they are victims also. how do you, where did the start and how do you stop it early on ? so they realize life is more valuable than taking innoc

euro, in terms of euro-dollar, where does it have the momentum to go? guest: our forecast is 117, but we have come a long way in the past four months. but we do think it will go higher. that seems that the ecb will take the next year, but we do not think the ecb will be any fester into hiking interest rates because of the low inflation rate. manus: ok, so to separate conversations. there is this issue that the ecb is running out of bunds to buy,. . overcompensating on france, italian, etc.. they are going to have to adjust qe, which is what steven major said yesterday. just because of supply and demand. old-fashioned issue at play. there is no alternative for the central bank. guest: totally agree. from that point of view, it's lucky that the economic data is coming out. but the same argument could apply to the bank of japan, they are still suggesting at tapering is far too soon. that's another debate, but we do think tapering will happen next year. adjustthis is slightly that the bank of japan just go for more stimulus there because it's doing us a pro

euro grinding higher. above 116. we're up more than one percent euro.down for a fourth day, up by .2 of a percent. below 130. retail sales data gave a brief lift but didn't last long. g10 currency declining against the dollar now. the fixed income space you yields move lower. the ten year bond yield down about one bases points. moves in the periphery. move in spain and italy too. periphery spread tightening the ecb decision and the press conference. higher. keeping close eye on oil. stock 600to the theory. it's lower. we are seeing gains earlier. we turned into negative territory now. bit of mixed picture when it comes to distribution. commodity producers are under performing. telecom outing. today. open to show what what's euro.ing with the we really have return of long bets.ow bet -- euro speculator turn net loans three years. perhaps vindicated today as we euro.een a stronger up 1.1%. really get a hawkish mario. from didn't really talk down the currency in any way. 116.44. this is fueled by dollar weakness. for that.ank you here in the u.s., let's ch

so what did i miss euro at a two year high. anthony scaramucci briefing the press, that was interesting. >> there has been so much. there was a time you used to think it could hit parity. 17% precisely. >> yeah, i thought that a little bit. >> bad timing for your trip. >> but earnings have been pretty strong and the stock market is yet again at a record high let's check in on global markets. equity futures following a worldwide rally on the back of strength in the u.s. strong commodities the move in copper yesterday pretty nice. dow futures up 21 points s&p futures up 2 and nasdaq futures up 5 oil moving higher. take a look at the price of crude. wti 48.30. brent crosses over 50. 50.52. and even nat gas >> asian equities mostly positive this morning as you can see. a little bit of red in south korea, but elsewhere a decent enough gains most of the markets. european trade up over half a percent yesterday and yet again today. you've got france up 0.6%, it has been a decent week for european trade we also had gdp data out which fo

the euro-dollar firmer.s is the one -- the moving euro-swiss is the one to watch. alix: a two-year high at one point. selloff continuing in the bond market. about bund yields up by five basis points. today, copper a little softer. and the vix over 10 -- that was a move. now up 7%. exxon earnings also crossing. earnings and production missed. production under 4 million barrels of oil equivalent a day, which is what the estimate had been. there isng, because the surmised that they are being more disciplined. something to watch. x is higher.-- cap- so more money, not enough production -- we will have to look at the details. jonathan: let's get to the big story in d.c. gop senator john mccain joined two of his colleagues to block a stripped down obamacare repeal bill. mitch mcconnell gave remarks on the senate floor following the failure of the skinny house health care plan. >> i think the american people are going to regret we could not find a better way forward. we look forward to our colleagues on the other s

as the euro goes down, do the euro stocks go up? paul: not really. to be made for the young dollar exchange rate. in europe, they're still quite a bit of domestic consumption going on. certainly here in the u.s., we still consume most of what we produce and produce most of what we consume. i do not think the dollar is really that material yet. it could be if policymakers let it get above that 116 mark. something to watch in the next couple of meetings. david: thank you very much for being with us. paul christopher of wells fargo, you will be staying with us. coming up tomorrow, we will bring you live coverage of that ecb decision and president mario draghi's comments after. live from new york, this is bloomberg. ♪ david: this is bloomberg. westin.d discovery and viacom are to cable networks that have been hurt by the rise of netflix and youtube. they held separate talks to combine with scripps networks, the owner of hdtv and food network. that's according to a person with knowledge of the matter. the stocks are getting a nice bump ahead of the open.

operating earnings fell to 1.3 9 billion euros falling short -- 1.30 9 billion euros falling short ofes. by 2021.e 2000 jobs metro bank has said it will sell 277 million pounds of use stocks as it steps up growth. the u.k. bank led by vernon hill is selling as many 810 2 million shares.- 8.02 million it posted the second quarter profit of 2 million pounds. that is your bloomberg business flash. you.: juliette, thank let's talk about the trade sec.. -- the trade segment. britain will set food standards after his trip in the u.s. the u.k. and u.s. were in a good place to agree on a post-brexit trade deal. >> it depends on how much progress we make. a lot of the reasons why trade agreements can take a long time is economies are too far apart when they begin the process. our economies are relatively in similar shape in terms of services to manufacturing. we have got a relatively good trade balance. areas wherelot of we can try to maximize that. we don't know what -- we know how far we will have gotten by march 2019. anna: liam fox. markets will get a key update with an initial reading of

we are a little weaker on the euro for a second day. the theme this year has been euro strength. a triple top on euro-dollar. mario draghi is going to have a difficult balancing act. too dovish and it could really hurt the bulls because the market has bullish positioning on euro-dollar. it is net bullish for the first time in three years. the most bullish since 2011 as well. socgen saying, we could touch 1.13. in terms of euro-yen, we could touch 127. some interesting technicals to watch as well. we've been seeing euro-yen approach that moving average. is it going to touch that after the ecb meeting? draghi holding the key. we've been keeping a close eye on dollar-yen. its stimulusing study, also pushing out its inflation target. we are seeing dollar strength against the yen. this is the dollar index. we went above 95. even though we are higher today, we are lower on the week. pretty similar to the 10-year treasury yield. francine: thank you so much. china and the united states have agreed to start cooperation to narrow the trade deficit. the statement from the chinese foreign mi

, the rise of the euro. to me, it is not so much of the endpoint of where the euro gets too, it is the speed with which it travels there because the ecb to intervene. they see more tolerant of a higher euro on the way. the stoxx 600 is up .8%. week for the bank of england, not least because some of the members are about to go on strike, but also because you are going to get some new growth levels on the bank of england. where is that rate hike? heidi is disappeared with the rate hikes stake. the possibility of a rate hike in the u.s. it seems to have completely evaporated, but you are going to see the euro get into a new plan. 95, but you are going to see this euro rise and sterling fall. hsbc at the bottom of your screen up 3.13%, $2 million by factory -- million dollar buyback. the right decision he believes they have made in choosing paris at the relocation spot, possibly to go there. plumbing, as john cryer said to mat last week, the plumbing is going to be hard to move. markets, wee gilt are up and runn

they had a helping hand, didn't they, a0 million euros.ome enticement to buy the bonds. it appears that there were enough investors wanting to buy these bonds, at which, well, is not a real surprise. there is always people who wa nt surprise. there is always people who want to go for more risk than others. very briefly, it has been a high—rise from the prime minister, tsipras, and it remains that way, he wa nts to tsipras, and it remains that way, he wants to pull greece out of the euro and ultimately he might be the man who champions greece staying in the euro. that is a good point. two years ago they were in a different situation and we were talking about greece ace—king the euro, or being forced out of it, so it is interesting they can save, well, to be honest, we are in the euro and investor confidence is enough for us to sell bonds —— exiting. well, the yield isn't too bad. yes, tsipras has been campaigning on this move to say, we are exiting the bailout and we are back into financial... we are ina good we are back into financial... w