♪ francine: merkel meets modi.he german chancellor welcomes the leader of the world's largest democracy. washington morning. the st. louis fed president tells bloomberg the present -- administration needs to make good on promises. how much longer will the honeymoon last? narrowing, polls theresa may tries to move against complacency. is a landslide victory no longer on the cards? : surveillance,rg i am francine lacqua in london. lots to get through. politics filtering through your currency markets. first things first. let's check in on your markets. stocks down with the stoxx 600 down 2/10 of a percent. the euro slipping with most currencies against the dollar after draghi's dumbest -- done vish message. at can see japan, the yen 111.07 and the south african rand extending losses to a second session after the president jacob zuma survived a bid to oust him. your data, but let's get to the bloomberg first word news with nejra cehic. nejra: the president at the st. louis fed said the jury is still out on if the trump

francine? francine: president donald trump's top foreign-policy advisers are trying to contain damage after there were reports saying he released sensitive, classified information to russia. "the washington post" shared he revealed information about an islamic state plot to russia's foreign ambassador. >> the story that came out tonight as reported is false. the president and foreign minister reviewed a range of common threats to our two countries, including threats savto civil aviation. at no point where intelligence sources discussed and the president did not disclose any military operations that were not already publicly known. francine: let's get more on this andy with kamal sharma stephen isaacs. thank you, gentlemen. jim, talk to me about this latest report on donald trump. who's going against the president? it seems both parties are now. >> this story is a much bigger than the politics. this is another chip -- a gives the republicans one more reason to perhaps move away from trump. but p

francine? francine: thank you so much.er hambro is stepping down as chairman of gold miner -- after pressure from shareholders. o cofounded the company. i'm pleased to say mr. peter hambro joins us. mark mobius is still with us. peter, why are you stepping down? peter: all good corporate governance says you have to have a nonexecutive independent chairman. i have been an executive chairman for 23 years. it is probably time i step down. the people involved in this are great experts at mining the market and we are people who mine the mine. different type of culture. a lot of media's reports saying you were forced out by russian investors who asked for your removal. peter: they indeed requisitioned my removal and also the removal of three other nonexecutive directors. wayshere are two different of buying a company. you can do the normal thing, which is to pay cash close to the net asset value, pay a premium for control, and that way all the shareholders benefit. i'm a shareholder. if you are a listed company, you can do the s

francine: st. louis fed says the james bullard fomc is close to where it needs to be on the policy rates. speaking to reporters in tokyo, he said the inflation path since is cause for concern. >> the price level has begun to diverge from this 2% path and we are almost 5% below the previously established path. this is not as bad as what has happened in japan. i will show you that picture. but it is worrisome nevertheless. francine: still with us, jon jonsson, senior portfolio manager at neuberger berman europe, and david stubbs, global market strategist at jpmorgan. david, what did you learn from the fomc this week? david: the most interesting thing was the initial stab they took at outlining how they are going to draw down the balance sheet. they laid out a series all caps. this is a nice halfway house between letting the balance sheet runoff passively, which would lead to rapid drawdowns vis-a-vis outlining a very rigid timetable, having it both ways there. i think this outlines the fact they are

francine: u.s.resident donald trump has told leaders that the war terrorism is not a fight between different faiths. he called on middle eastern allies to not wait on america's help. donald trump: young muslim men and women should have the chance to build a new era of prosperity themselves. it has to be done and we have to let them do it. summitd's help, this will mark the beginning of the end for those who practice terror and spread its vile creed . francine: the speech was an attempt to ease concerns that the trump administration discriminates against islam in the wake of the attempt to ban people from some muslim majority countries from entering the united states. he is scheduled to travel to tel aviv aboard air force one today in what appears to be a direct flight between those nations. let's bring in bloomberg's executive editor. still with us, gilles moec and peter montalto. thanks for being with us. this was a trip -- the first leg of the trip had to be a success for donald trump. a success b

francine: thank you so much.we did something related to defend but i did treasuries, the 10 year treasury for the u.s.. depend, theill trajectory that tenure takes will depend on what the fed says. it will be a surprise if the fed raises rates. twicere expected to hike more this year so how do they do it? .t is a balancing act we are back with ira jersey and stan collendar. you have put this very clearly. the concern is that policymakers need to try and talk the markets through how they will reduce the size of the fed balance sheet. when did they start talking about it? stan: they already started. in the march meeting a were clear they wanted to use rate hikes as well as run out of the balance sheet as monetary policy tools. frankly this was a little bit of a surprise, they are interested in letting both the mortgages on their portfolio and the treasuries run off. realistically, what does that mean for treasuries? probably not as much as some people think, primarily because the treasury department will t-bills,e

i am francine lacqua in london.oming up, we speak with philipp hildebrand, the vice chairman of blackrock, the world's largest money manager. then we have an exclusive with egyptian finance minister amr el-garhy. stocks definitely higher, so they are gaining 0.2%, dollar weakening, oil expanding gains. our manus cranny on the ground in vienna. euro-dollar $1.1243. let's get to bloomberg first word news with nejra cehic. nejra: police investigating the manchester bomb attack have reportedly stop sharing information with the u.s. after leaks to the media. gordon to the bbc, the decision over amid outrage information from the day brief appearing at the "new york times." prima nasser theresa may will raise the subject with donald trump later today. thees of violence across capital city of brasilia. theviolence ratchets up pressure on the government. opec and its allies are pleased to expand production cuts for another nine months after last year's agreement failed to clear a global supply glut. we will be live from opec

i'm francine lacqua in london. we are starting out with the pound, and that goes back to the election we have in the u.k. on june 8. we are getting data one hour from now. let's quickly get to the markets. the pound definitely, the story of the day, dropping. i would point to the latest polls by u.k. government. we have our london bureau chief joining us to look at what a hung parliament could look like, and whether we believe the p olls or not. .he vix, down from 1.8 virtually600, unchanged. let's get straight to the bloomberg first word news. reporter: in afghanistan, as many as 80 people have been killed and 350 injured in a suicide car bombing. there was a rate on the country's largest military hospital in march. the u.s. says the first ever test of the defense system against an intercontinental ballistic missile was a success. this was after a ground-based interceptor shot down a mock weapon over the pacific ocean. this comes amid mounting tensions with north korea. reynard says soft inflation could make us re

francine: trevor? >> i think it is obvious why the government at the moment would love to have ultralong bonds. duration,uch a long liability hedging. there is massive demand. if you are trying to fund government debt, why not issue longer? it does have an impact in the short-term, affecting the yield curve, but it makes sense at the moment with interest rates this low, that governments would want to lock in long-duration bonds. francine: thank you, michael moore, our u.k. finance team leader there. we are back with stephen macklow-smith and trevor greetham. aberdeen asset management has reported slows and the most recent six-month period as markets recovered. asset management climbed to 308 billion pounds, while cost saving boosted profits ahead of the merger. let's speak to the ceo and cofounder of aberdeen asset management, martin gilbert. i am losing my voice. this is how excited i am about your earnings. it is his first interview since the results. martin, give me a sense of how the merger is taki

francine? francine: thank you so much. series of lies.ords mack ron used to describe his rival -- macron used to describe le pen. she fired back saying macron represented the catalyst elite. >> you have said it so often. i'm the candidate of openness. well, no, you the candidate of closure. the closure of factories and maternity wards and police stations and hospitals. the only thing you don't want to close are borders. is cine: joining us now isabel. i was hooked. the i watched it all. it was quite riveting. what will the french actually choose on? it seems like that favored macron as more poised. will it change the polling? -- sa f the people who million people audience, 62% convincing s more that le pen. punch line after punch line, macron accusing le pen of lies, of being stupid, of being a parasite and of course le pen trying to fight back with her own punch line saying that macron was from a part of french that she called the invaders and said that france will be run by a woman. it will be her or -- referring to the supposed depende

francine: francine from berlin. we don't want to minimize this, but do you think they will be ramifications from this terror attack, other terror attacks on brexit negotiations? is this the heart of the problem that now has to be dealt with in europe? >> it is obviously not nice to say. i would not actually focus on brexit for now. i would say within the context of the election campaign, of course last night's events will back inesa may firmly control. since the publication of the tory manifesto, we have seen her struggle, especially with her trademark narrative of strong and stable leadership. her recenthink, struggles will be overtaken by these events. the campaign is likely to focus even more on leadership and that not leastthe tories, given the weakness of labor and jeremy corbyn. though it is nice to say, if anything, i think yesterday's events, will help theresa may and the tories in the context of what was proving to be a difficult week since the publication of the manifesto. mark: is this a sharp reminder th

francine? francine: thank you so much. we are here live from paris, two days until the french presidential vote for the second round. this is when the french will choose their next president. it has been telegraphed. marine le pen versus emmanuel macron. the latest polls, yesterday night, late in the evening and macron isgesting 61%, 62% of votes on sunday. given the gap between macron and le pen at the moment, almost impossible for marine le pen to become president, but watch out for voter turnout. in terms of how the candidates are positioning themselves, we know they are giving interviews to local press. let's listen to emmanuel macron trying to once again rally the troops to make sure people go and vote for him. for the past 10 days or so, we have been leading this fight for the second round that opposes the two projects face-to-face, the one of the national front. no, don't boo them. it's pointless. go fight them. go make them lose. we must defeat them in the ballot boxes. francine: joining us now from paris, one of e

francine: thank you.president has defied calls to step down, saying the supreme court investigation will clearheaded. >> i will not resign. i will not resign. i know what i did and that my acts were correct. to need a full and quick investigation for the brazilian people. francine: they say that he drove the impeachment of president rousseff. thank you so much for joining us. of whateeing a repeat happened 12 months ago? our shareholders or investors going to flee, or will we learn to stabilize? isbrazilian politics extremely unpredictable. there are key differences between today and 12 months ago in terms of brazilian assets. indicators,nomic this is an economy with 1% current-account deficits. all of the current account deficit is covered. the central bank is credible with ample reserves. we would be surprised to see a repeat of what we had in the second half of 2016. francine: what happens next? stays.ay michel temer the president will struggle to revive an economy that has not only on down, but sharpl

francine? francine: thank you. the u.s. dollar has fallen for a sixth day and futures are pointing lower after the latest controversy involving president trump. he asked the former fbi director to drop the investigation into ex national security adviser michael flynn, according to a person who was given a copy of a followingcomey wrote his oval office conversation with president trump. it introduces the possibility that the president might have obstructed justice, which is an impeachable offense. the white house has denied the version of events described in the memo. let's get more on this with bloomberg's global business correspondent, stephanie baker. we also joined onset in london maxeoffrey yu and kettner. stephanie, let me start off with you. how big a deal is this? is this actually impeachable? where did we'll from here? -- where do we go from here? >> i think it is a big deal. if it does turn out to be proven, if there are tapes, you will see a growing chorus in congress, at the very least, for a special prosecutor.

francine: two questions.you tell me if certainhinking if countries decide not to cut production, will saudi arabia take the brunt of it and cut production more? the focus isalih: collective responsibility. i am proud to say that, although there are deviations we are working on fixing, the numbers speak for themselves. they are well reported. we have historic levels of commitment that have been actually delivered by producers, not only from opec, but countries that have never been tot of such an initiative manage production. they have delivered well on the totality. the market responded positively, as we have seen. therefore, saudi arabia is counting on that record, which seems to be improving over time. not accept that saudi arabia or any other country should pick up the slack from others. we did go the extra mile initially to set an example and be our own model, and i think of colleagues have appreciated that and have responded positively. scarlet: that was khalid al-falih, saudi arabia's energy minister. ju

francine: this is the headquarters. deanan imagine, jimmy drinking some whiskey on the terrace at is for after the election. thank you very much. joining us live from paris. bloomberg tv and radio, we will bring you special coverage. francine is there for the weekend coverage. the other big issue, the top economist has opened up the debate as to how long the central bank will hold off on the reading interest rates. anna: joining us now, the chief european economist at jefferies international. let's starts with the ecb. italy, also. wait untilht not past the asset purchase program. you were a big ecb watcher. you had some clear messages. rates on hold until after qe is finished. how long? mario draghi, at the conference, the message was clear. they were going to raise the te until they finished qe. going to be difficult for them to hold the line. we have the council which is going to fracture more. september is key in terms of signaling to the markets. in september.arly we know wages have not picked up. we have to make a

francine: is there a region you want to beef up or specific operations?> there is no area we cannot grow organically. we can add bankers, private corporate bankers, branches in the u.s., overseas. there may be acquisitions in technology and countries that make a lot of sense. they have to make a lot of sense for us to do it. it could be thin tech related, payment related. customer service that you add on to. we will be having online self investing and online account opening. right now, if you allow treasuries, you can buy and sell. we had someone do a foreign fx trade on their mobile phone. we are adding a lot of services. as long as the client is happy. francine: how much do you think business will be transacted on that? >> a lot. if you look at the consumer side, it has already moved to mobile. bill pay will be moving there. we have already seen fx, you will see equities. when we say mobile, ipad, online, it is all the same to me. how do you want access to services of a jpmorgan, chase? francine: how are the animal spirits in the u.s. and world economy?

francine: we spoke in paris.hat is the mood on regulation now, are you as confident for wall street? >> when you talk about regulation, the trump administration wants to deregulate certain things, and most of us think regulation has been holding back rub. it is heard all citizens of this country. not just jpmorgan. i am optimistic of some regulatory reform. in a sense. even my democratic friends understand that it makes sense about what can be done better to simplify the burdens of business and grow the economy. no one is asking for wholesale running out of regulation, but look at it in the light of day. francine: what do you make of glass-steagall, and it was talked about making a modern glass-steagall, which investors were confused about. >> glass-steagall was not part of the prom. no one i know says that was part of the problem. regulate smallou banks differently from bigger banks? that makes sense. i don't think that is when to stop our ability to compete. francine: would you be opposed to foreign acquisition

i'm francine lacqua

francine: the ecb?axime: the markets will first half interest rates go higher, moreyou will have the ecb comfortable unwinding qe. maybe not just right after the election, but over the coming months. francine: give me a sense of what you like in the macron program. is it reform? costs?abor is it just simply tax cuts? maxime: i think the key is labor markets. labor markets has been the key area for fence -- for france to improve. it has been one of the areas where the market is systematically concerned. it is hampering growth and sustainability. it would be feasible to deliver on that. that would be potentially some strong reaction from the markets. he was in charge of labor reform when he was economy minister. maxime: he tried to move ahead and he was blocked by the rest of government and parliament. the hope is that he's going to have a stronger hand. as a support of macron because of what he wants to do with the economy, or if he wins by 63%, is it just a refusal of marine le pen and what she stands f

francine: are you on the hunt to buy anything?not right now, but i wouldn't take it off the table down the road. is it a region or a specific operation? jamie: there is no area where we can't row organically. we can have anchors in countries, ranches in the united mine is organic but there may be acquisitions to technology in the country that make a lot of sense, they would have to make a lot of sense to do it. it could be syntax related, payment related, customer service that they add on to. we already have online self investing an account opening. right now in treasuries we can buy and sell a $40 million affect trade on the phone. making the clients happy. francine: how much will is this be transacted there in five years? jamie: a lot. if you look at the accounts, the alerts and mobile, bill pay will be moving there. you will see some equities. when we see mobile, online it's all the same to me. about how you want the access to the services of j.p. morgan chase. francine: in the united states and in the world economy? good. euro

francine will speaking to the aberdeen asset boss.and i are going to be on bloomberg radio. this is bloomberg. ♪ >> president trump says he is considering a revival. griffin gives that the thumbs up. >> i am really excited to see that. you thinking it would be good for the economy? >> i think it would be great for the economy. francine: the treasury's curve steepen. the alleged disastrous dinner. but they do not outright denied

francine: what about fixed income?ood share there and i think it will be hard to gain. when we look at it, when you look at the numbered share, yeah, but when you look at what we can do better, we have plenty of things we can do better around the world and a lot of it will go to technology. we got to build there and maintain our share. competition is a good thing. i have never been worried about competition. you want a competitive world. francine: as long as you are better. >> that is our goal. francine: we talked in paris a couple months ago and we talked about regulation. are you still as confident in the future for wall street? >> yeah. the trump administration wants to deregulate most things and a lot of us have been thinking deregulation is holding back growth. i am still optimistic there will be some regulatory reform. it makes sense. even my democratic friends understand it makes sense to look at what is done, what can be done better, what can sympathize the burden of business, what can help people expand employ

francine: can you break down the units where you want to defend your market share?amie: i want to grow everywhere. it is hard in some areas because clients want multiple venues and suppliers. that is completely understandable. inlicly, investment banking certain areas may be harder to gain share but that doesn't mean you can gain share -- cap gain share in that part of the world. we know it will be a little bit harder. francine: a lot of your competitors are trying to beef up that. , yeah, we have a good share there, and it will be harder to gain. if you look at what we can do better in that country come we have plenty of things we can do better around the world, and a lot of it will go to technology. competition is good. : it was verymp historic. deeperould see a much pastor friendship with israel, and i think a lot of that is whatever it -- a lot of it is .hat is happening with iran prime minister netanyahu: i think your cake and a strong position on iran, a different position compelling with reconciliation -- helping with reconciliation. [indiscernible] prime min

weber speaking there to francine lacqua. vonnie: thanks.appening now in washington, d.c., steven mnuchin is speaking about the budget and tax reform at the peterson foundation fiscal summit. some of his comments, he said congress will determine the final budget. the white house budget was delivered to congress this morning. he said the goal is for "a unified tax plan the house and senate can support," and he said that he can pledge the final tax plan will not cut high-end taxes. for example, taxing capital gains is the most inefficient way to raise revenue. he also says there is a need to get the budget balanced answer count for tax changes in the budget plans. a lot to get there today. a big day for fiscal policy. you can watch secretary mnuchin's for marks on the bloomberg -- full remarks on the bloomberg. ♪ mark: live from london and new york, i am mark barton with vonnie quinn. this is bloomberg markets. vonnie: time for our quick takes . today, we're looking at the impact of president donald trump just leaving israel a few hours ago. t

francine: you said you have been unhappy with this discount. how do you expect that to be adjusted?s actually more demand. as a 50 250 company, we achieved that potential. we could have as much as 12% incremental demand from index funds. plus the fact that this is really a north american fund. an english dominated security. people say we can invest in a company based in amsterdam, but if you have a pound a monarch -- them on an eight -- if you have a pound denominated revenue -- francine: so it is just a broader type of investor your trying to get to. talk to me about buybacks. bill: we will launch buybacks today. we own typically very liquid large cap north american companies. it is not difficult for us to determine their value. we can buy them back in the market. we think they are cheap as is. that was pershing square founder and ceo bill ackman, speaking to a francine lacqua on "bloomberg daybreak: europe." mark: we are following stocks end -- we aree rising for the first day in a four to 20 mouth high. this is bloomberg. ♪ mark: it is 11:00 in new york. theinutes until the end o

jonathan: that was francine lacqua. jamie dimon.w for moore, head of policy analysis, i want to go back to our interview with the republican senate leader. we have not paid a lot of since i've been here, why is this week -- this week's's budget is the third iteration. it is key because it is another expression of the president's priorities and largely the same as it was before. what the budget proposal is ramping up the spending by $54 billion and taking it out of domestic programs. to bew budget appears much more of the same. investors need to understand is not signed into law by the president. it is guard rails for congressional spending. it binds congress but nobody else. is acongress will want continuation of what has happened over the past four fiscal years. flat and stable spending and in this case, we think modest increases for defense and nondefense spending. there is no political appetite in congress for slashing domestic programs in the way the president is about to propose. >> reflect on the week we have had. was that d.c

in for francine lacqua. all of london close today.ck on the "surveillance" gulfstream from the white house correspondents different -- dinner. it was a reporter's dinner about reporting. crowe bornstein, bob woodward, great remarks about the importance of keeping added, doing your best for the public interest. tom: with all of the pressure, i thought jeff mason of reuters did a great job. completely different dinner. ovation got a standing for the line "we are not the enemies." tom: a great photo. there it is again. look at those two. michael: you know what? both of us are wearing bow ties that we tied ourselves. we are so proud. .om: that video i did here is him a. emma: in washington, house and senate negotiators have reached into that would reject most of president trump's wish list. the $1.120 agreement will keep the government in operation through september. republican leaders vowed -- policy.o eliminate it does not include money to start building a wall along the border with mexico. the u.s. has been considering a range of optio

francine: this is clearly what you think is a great idea.ense of what you learned from valeant. bill: what i learned is that it can be very expensive. this is a strategy where historically, we bought a large stake in the company and on the board of directors. had a yay or nay over decisions. in the case of valiant, in 2014, had a very successful transaction. he made a mistake with the path investment in the company. not being on the board, we could not see what was going on. that was a big mistake in our history. francine: does it mean that you will stay away from pharmaceutical companies? bill probably stay away from : pharmaceutical companies. julie: coming up, more conversations from the milken institute conference. u.s. commerce secretary wilbur ross on nafta. plus, an interview with ben bernanke put in a few good words for his successor, janet yellen. >> she is highly competent, has done a good job as a confidence of the markets. julie: this is bloomberg. ♪ ♪ >> you added 9 million users last quarter. did it come from donald trump? >> w

i am tom keene in london in four francine -- with guy johnson in for francine lacqua. on sunday and macron will go straight to berlin. it's about integrating europe and pushing the european agenda. i wonder if the germans are really on board with this. tom: i am surprised they do the inauguration a week after. guy: well they have got to have a party. or: they are soirees something like that. here is taylor riggs. taylor: the trump administration is starting a process that could ease -- on wall street banks. treasury secretary steve mnuchin ordered five agencies to review what is allowed under the rule which bars banks from betting on markets with their own capital. critics say it has made banks to conservative and dried-up liquidity. president trump calls james comey a grand stander and showboat who he planned to fire all along in contrast to previous presidents -- statements. the president spoke to nbc news. president trump: i was going to fire comey. >> you made the decision before they came out? president trump: i was going to fire comey. there is no good time to do

he joins francine lacqua right now. good morning. this is a very important day in the quest for pushing a square bill. think he so much for joining us. here on the london stock exchange, why. >> more liquidity, narrow a discount. we launched pershing square 14 years ago. a long-term plan of hours. nuven -- we have been trading at a discount for the value of the assets. we're going to have more liquidity, access more investors. become a ftse 250 eligible company. as early as june. >> in the past you have been unhappy with the discounts. have you expect that to be adjusted press best? >> 12 present demand is old people who follow index funds. funds, englishn lang which dominated entity. a bit obscure in amsterdam. a number of people say look we can't invest in a company based in amsterdam but if you have a pound denominated one from the u.k. you have a lot more investor interest. we are adding additional venue. >> it is a broader type of investor? >> that is correct. >> talk to me about buybacks. >> anytime you can buy back your liquid

this is bloomberg. ♪ ♪ francine: merkel meets modi.the leader of the world's largest democracy. washington morning. the st. louis fed president tells bloomberg the present -- administration needs to make good on promises. how much longer will the honeymoon last? narrowing, polls theresa may tries to move against complacency. is a landslide victory no longer on the cards? this is bloomberg

he was speaking to francine lacqua in an exclusive interview. >> j.p.n has been here for 80 years. we have been banking for the kingdom itself and a lot of companies here the whole time i have been here and way before that. they are having a big for him nowsponsored -- big forum sponsored by the government and business. the president was here. >> how much bigger will your operations in the middle east and saudi arabia get? >> my first trip here, we had one person. one reception, a female. now we have 80. now.t 30 women we are part of the banking system here. we are part of the brokerage system here. we bank a lot of big companies and the government. we will be getting bigger as saudi arabia gross. difference ife a the 2030 vision works out? >> we have done about $27 billion for the government and do it for some companies. the vision 2030, every country should have a vision of how to develop itself and improve businesses and the lives of its people. it makes a big difference. if they succeed, it will be good for the people here and good for business. has

del jonathan: live from paris, francine lacqua.till joining us and joining us is a jpmorgan acid strategist -- asset strategist. as francine points out, talk to me -- let's assume a manual macron gets through. >> we have seen that he managed to implement some reform in .rance taking this more liberal approach. the position of macron has been quite clear to french voters that he wants to continue to go beyond what he has. his mandate is clear. no the path for him will be difficult going forward. not too disruptive as other candidates. jonathan: the market has stated the risk going into the second round. the euro is stronger in yields have come lower in france. what does the price action look like sunday evening going into monday morning? the base case is quite nicely priced in the market. can your french yields have decreased -- 10 year french yields have decreased significantly. you have seen the euro strengthening. equity index is up year to date. everything is pretty much priced in. we may have additional relief, but all eyes wil

francine: does that mean you're going to stay with from pharmaceutical companies? >> probably.uare is working on two large investments. herbalife is still the favorite short bet. startrline has agreed to bankruptcy proceedings. it was unable to carry out a recapitalization plan after workers voted against job cuts. the last time they published public figures was in 2015 when they lost $270 million. mark: that is the latest bloomberg business flash. vonnie: we are awaiting president trump expected to speak shortly in the rose garden honoring air force football winners. this is bloomberg. ♪ ♪ trump: president donald just arriving at a ceremony honoring air force football at the rose garden. you can see everybody gathering. our next guest knows a lot about this. he is a former paratrooper. for now, we're going to await the president, who is going to make some remarks. the falcons doing well on the football field. he will make some comments regarding policy and legislation. ourave one of correspondents at the white house right now. makeere a chance he might remarks regarding policy

. >> that was jamie dimon speaking exclusively with francine lacqua at the saudi-u.s.orum in riyadh. >>>> still ahead, saudi arabia's oil minister tells bloomberg that will producers are willing to extend cuts into next year, but will it have the desired effect? we will have more of our exclusive conversation with falih later this hour. this is bloomberg. ♪ scarlet: this is "bloomberg markets." i am scarlet fu. julia: i'm julia chatterley. it's time for the bloomberg business flash. brazil's gbs is plunging today. the president accused the company's owner of insider trading. gbs, the world's largest meat producer, is owned by j and s invest amount, which faces several billions of dollars in fines as part of the leniency deal. according to people familiar with the matter, blackstone's initiative is anchored by $20 billion with saudi arabia's and couldestment fund make it the largest infrastructure manager in the world. infrastructure investing, which directs private money to constructing roads, bridges, and airports, is being highlighted by the trump administration. tha

francine: can they displace the u.s.tration as the most global country in the world? >> the u.s. will be impacted. i believe the u.s. will have to join this effort, the one belt, one road program because there is a lot of benefit to be achieved with this program. the chinese will be careful not to favor chinese companies unduly, so there will be enough for everyone. francine: who benefits the most neighboring countries, or , africa? >> if you look at the central asian countries considering , where they will come from, they will benefit quite a lot. europe will benefit because the europeans will get a piece of the action, and trade will increase dramatically once the whole program is completed. julia: also, many of the most powerful members of the investment community came together in las vegas for the annual salt conference, amid a backdrop of political turmoil in washington. eric chester gathered thoughts and insights on the market from some very special guests. >> the trump trade we have embraced and that has driven th

francine: do you think the trend will continue? martin: i think so.nning to see volume in emerging markets compared to the developed markets. people are looking into places like india with a growth rate. investing in equities and bonds and more generally in emerging markets globally, looking for volume. >> let's talk about bp. we just got the numbers. adjusted net income, $1.51 billion. it beat forecast by $2.7 billion. producing cash or not enough to cover through the issues. -- cover three big issues. those are cap x, dividends, and the gulf of mexico. >> if you look at bp or other big oil companies like chevron, the results would be very good. they have increased net income that beat wall street estimates. and the cash flow has gone up. the main problem is bp cannot generate enough money to cover those three. cap x, dividend, and they are unique in that they need to continue paying the government -- the gulf of mexico for culpability. it's approaching the limit of bp is comfortable with. the ratio is between 20% on 30%. -- 20% and 30%. previous qua

francine: can they displace the u.s.ion as the most global country in the world? or is that far-fetched? >> there is no question the u.s. will be impacted and i believe the u.s. will have to join the one belt, one road program because there is a lot of benefit to be achieved with this program. the chinese, i think, are going to be very careful not to favor chinese companies unduly, so there is going to be enough for everyone, let's put it that way. francine: who will benefit the most? neighboring countries are africa? central asian at countries, considering where they are coming from, they will get a lot. -- benefit quite a lot. europe will benefit because the europeans will get a piece of the action and trade will increase dramatically as a result of this once the whole program is completed. julia: also this week many of , the most powerful members of the investment community came together in las vegas for the annual salt conference, amid a backdrop of political turmoil in washington. erik schatzker gathered thoughts an

francine: you believe there needs to be more appetite for bankers to for more mergers?n: they say thei they wish. i can understand their wish, but at the same time, it is not easy. not easy to do. depends on the sector activities and the size that capital constraints are serious limits to what they wish. maybe they will be, but i'll see many in the short-term. what do you worry about most when it comes to regulation? jean: there are a few questions. growth is picking up in europe. let's say europe is recovering. it is better. there is a need. -- there is a need for funding. a bank needs to be in good shape to finance growth and job creation, much needed in europe. that is the reason why the discussion at the basal committee is so important. we understand there is a need for a judgment. i have no difficulty with this, but i hope to the conclusion we will be such that we will keep the capacity to finance the europe economy in a safeway. now you have a second question you have raised comparing to the u.s. in the u.s., they speak about deregulation. in europe, we do not spe

i make jokes about it with francine.all part of france's doing the 35 hour week. >> it is negotiate with different industries. we do much longer hours and banking. you do get extra days of holidays. weekis how that 35 hour -- been conformed worried conformed. tom: they are not working a 35 hour week. negotiated been branch by branch. it is not applied everywhere. guy: they are probably drinking it in the other hours that exist. if he can't get a majority, when does the market start to price in bad news for the eurozone? >> i think there is too much focus on the eurozone. it's only one piece of the puzzle. we think he can execute policy. policy, we execute are just marking time for the next five years. priced inket has only how high the price protection was a few weeks ago. that has disappeared and stocks of rallied. they are cheaper than ever thing else. i don't think the market has priced in all the consequences. greece gets a solution, france gets reform. italy remains the only company without -- country without reform

one of my favorite lines from that interview with francine was "we welcome shale."ey welcome shale but they want it stable. >> yeah. there has always been a swing factor in the oil markets and among oil producers. oil, and that is not something new. market, andf the what's interesting about the technology of shale is that it has relatively quickly adapted. we do think the balance of the market is what oil parties are and the expected demand for oil products was a good economic background. manus: it's interesting how he said we didn't ever squeeze the market. one of the consequences of the oil shift is a high correlation -- you have the aussie, lenny, and kiwi. this is the bloomberg commodity index. the market has gone aggressively short. we are heading to the steepest three-month shift ever. what does that say to you? is that an opportunity for you >> -- for you? you have a contrarian view. >> we do. we think oil related currencies are undervalued, and therefore we think it's a good entry opportunity for investors to undervalueds currency that would benefit from a r

i'm francine lacqua in london. we will get into your markets in a couple seconds.s,

this is bloomberg. ♪ francine: showdown in sicily. of other leaders prepare to make their g7 debuts after awkward scenes at nato yesterday. fighting terrorism will be the focus following the manchester bombing, but with the u.k. furious at american officials for leaking intelligence to the media, the so-called special relationship faces its greatest test in years. cuts leave theec market guessing about a long-term strategy. good morning. this is "bloomberg surveillance ."