secondly, geographically it's important for glencore. the u.s.ns is somewhere where glencore does not have a huge presence. it would give them access to a potentially interesting market. >> whenever we talk about these deals, mega deals, we always think, is this the top of the cycle? i know we're not necessarily talking about a super commodity cycle right now, but do you feel like we're getting closer to it once again? >> it depends. in some ways it's opportunistic in terms of where the sector, grain sector is trading now. tough time for the grain sector. there's a huge oversupply there. it's very difficult to make money there. on the one hand, glencore could be opportunistic and work out well for them. looking at the price moves, doesn't look like they'd be paying an awful lot. so, probably wouldn't be that expensive for glencore at this given point in time. >> would they lever things up? would they use leverage for this? less than two years ago we were all concerned about glencore's debt levels. they brought them down sustainably. what would th

i am looking at glencore as well.ng broadbase losses among commodity producers as industrial metals are heading lower on the news of the china downgrade. hard to say how much of that is priced into this and how much of the individual news of glencore saying it made an informal approach to the u.s. grain trader. it made this statement saying it has approached it about a consensual business deal. we saw shares soar. glencore as you can see, down 1% today. down for a second day. just a disclaimer, chairman of bloomberg lp, is a senior independent nonexecutive director at glencore. guy: thank you very much indeed, nejra. juliette: china's debt rating has been cut by moody's for the first time since 1989. chinese stocks headed for their lowest level in a most a month before recovering. the yuan retreated in the overseas market and default risks increased after the rating was reduced to a one from -- to a1 from aaa3. >> the authorities have recognized the risks that come with high leverage, and have a very broad agenda of s

what a difference 18 months makes for glencore.u cast your mind september of 2015, going into early 2016, glencore was in a really tight spot. the debt was being sold off. real concerns there, there was a going concern that they had this debt load, they had taken on too much from estrada. there was real concern as to whether they could keep going. if preceded the success of 12 months, 18 months. they mostly delivered on the cost-cutting plan, selling off non-core assets. they had a deal where they sold 49%, giving them a new balance sheet. the blast was this excellent profile this month in which they publish the agricultural unit at glencore, under some. -- it was unsung. they wanted to buy assets in the u.s. scarlet: one of the main players in the target is bunge. based in white plains, not far from manhattan. $11.2 billion market cap. what are people saying about how much of a premium glencore would need to pay? the numbers.to run we are still trying to get more details. we know that the -- that an approach has been made. we are

and glencore. learned compliance. are we leaner, meaner and fitter? alon: certainly. the mining companies have come through. over four years, one of the largest -- longest bear markets we have seen. capex downed them, 70%. profitability gains have been pushed through. there is a much lower cost base and in many cases, it is structurally lower. these companies are prepared for any weakness in commodity prices. the balance sheets have been repaired. their messaging has been consistent. even though commodity prices they saidrd in 2016, their priorities remain their production, cost reduction and productivity gain. that is manifested -- has manifested in very strong balance sheets. referenced billy, and you think they are due the sharpest rise in there commodity basket, but the much longer term and -- talk me through that please include your oil call because i think you see $72 a barrel by the end of the decade? alon: that is right. , it does have a decent commodity price outlook that really only start

glencore has been a takeover bid for the u.s.s a market value of over $11 billion. german -- the chairman of the rig up the -- is a glencore. morgan stanley said more cut back on using recruitment bonuses to -- establish financial advisors today, after bank of america -- expressed similar moods. this will honor existing criminal deals but in 16, and include -- by september 1. morgan stanley is developing new policies for recruiting and will roll out digital -- to support advisors. that's your business flash update. julia: interesting story, isn't it? lower tier banks have artie abandoned efforts to provide a sign-on bonus for recruiting traders or brokers. joe: of course, the big technological changes affecting this industry, you see the news that they want to build on existing brokers clicking keep some of his other -- julia: vix will do it. it, levelill all do the playing field. it's still nuclear for the big guys, but it makes sense financially. joe: definitely an interesting element. coming up, what you need to know for tomor

glencore is an contact and finished the london session down.ped, taking the fire above $11 billion. toshiba and western digital are meeting on wednesday to resolve their dispute over the flash memory chip unit. western digital is ready to make concessions in order to retain its share of the operation. westinghouse creditors have dropped their opposition to a final bankruptcy loan, clearing the way for to receive $450 million to keep operating. sony's consumer electronics division now enjoys a dominant role when it comes to the gaming sector. the ceo told sony investor relations day that movies remain a hugely important part of the overall business. >> the picture segment remains an important business persona and we are increasing the urgency with which we implement measures to improve the pictures business. senior equities analyst at jefferies was at the event in tokyo and joins us now. take us through what the takeaways were. >> thank you. threeit of context, we years back, we used to be very skeptical three years back in february 2014. we upg

a year ago, we were talking to your go if glencore was even talking make it -- years ago if glencoreit, as the market had seen to stop play along. if you had bought in at the low that did, you have made a lot of money. jonathan: china a big story for glencore and the whole commodities market. there is concern from moody's about the continual buildup of debt. this what they had to say about the decision. looking at policies that the government is implement them. authorities have recognized the risk that comes with high leverage, and they have a very broad agenda of structural reform. we take that into account, and we think that leverage will increase or slowly. -- more slowly. we do not think this will help to decrease the leverage. joined by twore -- thishis market morning. john, i want to start with you. on the symbolism of this. is moody's just confirming what a lot of us already kind of kn ow? >> that is right. i do not think we learned much from moody's today. it is well-known that china has a slowing growth trajectory and high debt levels. all of that has been discussed. that is

. >>> other m&a news, glencore making a takeover approach to the u.s. grains trader, bunge. ft says bun je is not currently engaged in talks with glencore, however it rallied yesterday. it's off 5% today. >>> still ahead, president trump meets the pope. we'll have the details and the pictures of the face-to-face meeting next. >>> first, as we head to break, here's today's national weather forecast from nbc's bill karins. >> good morning. the big weather headline of the day is the southeast. severe weather, potential for flooding continues. 38 million people at risk. literally all of the carolinas, georgia and florida. a huge population center. a lot of cities. when the thunderstorms roll through, we will get the airport and travel delays. here's the timing of everything. going throughout the late afternoon, this is when thunderstorms pop up. a line through central florida a line through george. a couple of strong storms heading through the carolincaro. that will continue as we go throughout the evening. the strongest storms could produce isolated tornadoes. some of the rainf

it is not engaged in business combination talks with glencore.ched them about a combination and there is no certainty 80 will happen. shares of bunge soared 17% yesterday, but have fallen. the chairman of bloomberg lp is a senior independent director at glencore. and in the u.k., full year earnings beat estimates. this offset weakness in the retailer's clothing unit that will boost hopes that marks and spencer ceo's will put the company back into growth. guy: thank you. now, in its financial stability review, the ecb says repricing risks in fixed income markets remain significant. we are talking about the u.s. here. at an event speaks in madrid later today, but before that, matt miller will speak with his second-in-command, vitor constancio. we bring you the interview during this show. let's get back with reinhard cluse. i have on the screen here, the u.s. 10 year spread. we have come up a little bit. does the ecb have something to worry about here, as we start to see the ecb getting into gear with what happened surrounding the rates cycle, that

glencore traded below 310. the next stock could be 240. it may be around 18.his is a stock having massive pullback. there are people out there on the street, a couple houses are bullish. they cleaned up the balance sheet. steel prices are not collapsing. so it's an opportunity. it may not be tomorrow. >>> ahead, tesla is down a percent following the earnings report t. conference call is about to get under way. we will tell you what ceo elon musk says later this hour. facebook 52%. gafd gary is on the old red phone, listen to to that conference call which is under way. we will check in with him after the break. in the meantime, here's what's else coming up on "fast." >>> the apoapocalyptic tv is he. now might be a good time to buy. we'll tell you what that is. plus, cramer, cook, and the interview that will rock wall street when "fast money" returns. . >> take a check on shares on facebook in the after hours session, hitting after hour session lows. it is down by three and a quarter percent. this is a move that happened in the past few moments. let's check in f

the rest of them are you know, o, glencore, b.h.p.total and royal dutch shell there as well as some of the ther banks, b.n.p. paribas and u.b.s.. you look at the gainers, you see nestle, roche. not really gaining quite enough to bring the stocks 600 up which is currently down about .06. 2/3 of 1%. let's talk a little geopolitical action here. meet premier li will with angela merkel this afternoon as she continues her pivot away from the u.s. and towards asia after yesterday's meeting with modi. li meet with may need the relationship s much as merkel as he tries to maintain china's ambitious targets. economists warn a slowdown in growth is coming from china even as the p.m.i. data held up for may. we got that out this morning. pretty positive surprise. what do you think about china? ok, we got a big sigh of relief with the p.m.i. and a move in assets in asia. does the chinese growth, does the landing look like it is going to be a smooth and soft one? >> our team in hong kongs that been concerned about the slowdown in china for the seco

flash.et a business -- glencores. grain set its sights on the company.said it was approached about a friendly merger. the share price surge gives them of $11.5 billion. the chairman of bloomberg lp is senior independent nonexecutive director at glencore. morgan stanley has said it will cut back on using recruitment bonuses to poach investment bankers. the firm will honor existing recruitment deals that are approved by june 16 and include start dates by the end of september. the company is developing new recruiting policies and plans to rollout a suite of digital tools this year to support advisors. u.s. justice department has sued fiat chrysler over claims its diesel powered pickup and suvs was fitted with the legal software that allows them to pass emissions test. the complaint alleges that nearly 400 -- 104,000 vehicles were equipped with the so-called defeat devices. the company said it is currently reviewing the complaint but is disappointed that the suit had been filed. commodityembattled trader noble have been on a roller coaster ride during singap

glencore.e are the numbers coming them, golde from production coming up and the cash cost disgraced -- decreased by 4%. yearction is up 10% from a earlier. we will get the quarter on quarter and year on year numbers line. waiting patiently as we went your all about. -- randof rheingold gold is hre -- is here. about it is all profitability. quarter.another good operation still ramping up so its is -- that gets to design capacity at the end of this quarter. forecastingled slightly improved. this is our best first quarter for about five years, usually we start off quite slowly and is encouraging we got out of the blocks early this time. manus: 52% of the shareholders have increased in the annual dividend at a buck a share. anything to see and dividend policy, we'll be cautious of the end of the first quarter? >> went to keep $500 million on the balance sheet and we will pay off the rest. that has been a long-term plan, --got to 5 million at the 500 million at the end of last year. by the end of th

one stock we are watching his glencore.t they have hired standard chartered to proceed with the sale of its stake in australia. kemcore will sell its port bla stake, looking to offload assets. they are reportedly up for sale. rishaad: looking at one another stock, unchanged in the premarket. just bring up a chart, and absolute, well, massive move to the upside to this is in january when it announced it would be having a share buyback of epic proportions. this is over a year the chart i have brought up. they will be looking if the chair structure complies with ordinance. we found out from the securities and futures commission that the top broadcaster and hong kong was owned by a chinese media tycoon will rather than a hong kong resident as required. keep an eye on that. let's get to the open. shery: the shanghai composite and the hang seng extending declines. unchanged at the moment when you weigh all of the stocks. energy is up, oil gaining ground. news that saudi arabia and russia will extend those output cuts for nine mor

glencore has confirmed it has been contact and finished the london session down 1.5%.p job takes the market value above $11 billion. chrysler is being sued by the justice department over claims that thousands of light-duty diesel vehicles were legally fitted with software cap hidden during certification. the complaint alleges the software causes the car's a mission control system to perform better and tests than normal driving conditions, essentially what volkswagen has admitted to. betty: reports say protons parent has agreed to sell a minority stake of the carmaker to a company in china. we are told the decision has to be approved. it stop will be suspended from trade today pending announcement. the investment would allow the company a foothold in ibm market and would be as biggest since it bought volvo from ford for $1.5 billion in 2010. is china's first to smartphone maker. not so well known here, but closely linked to google. up withis also teaming volkswagen for more artificial intelligence. atphen engle is with the ceo the technet 2017 conference. steve? stephen

the wall street journal's reporting that glencore he is interested in making a bid for bounty come owne largest agricultural traders and processors. shares as you can see, spiking by nearly 15%. the ceo in an earnings call or live this month expressed willingness to potentially consider a sale. again the journal is reporting this, we have not yet confirmed that the certainly we are seeing share reaction there, david. >> thank you very much. that is breaking this afternoon. let's turn back to washington. hearings on holding increasing u.s. competitiveness, preventing american jobs are moving overseas. that was the focus of the hearing of the house in ways can -- and means committee earlier. is peter roskam and of illinois, chairman of the tax policy of the house ways and means committee. let's start by asking you about what you heard this morning, from a number of ceos. how much to companies like these have in common when it comes to jobs going overseas coming back? >> people were like-minded, saying we needed more competitive tax code. the name of the game is how do you move forward an

glencore is up by more than 3%. once again, overall, we are not too far from 21-month highs for the european equity markets. check out our blog which runs throughout the european trading day. we'll be back with more "street signs" after this short break. so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. >>> hello. welcome. yes, you're still watching "street signs." i'm carolin roth. these are your headlines. >>> commerzbank shares trade higher after a one-off gain sees it beat forecasts, despite concerns its radical overhaul could weigh on earnings. cnbc will speak to the cfo at 11:35 cet. >>> the ceo of adecco tells cnbc france needs to get more competitive, as growth in southern europe helps the world's large

gle glencore reporting mixed production numbers but made no changes to the full-year production guidance>> shell, another oil major outperforming because of the oil price being so much better than a year ago. in terms of the short-term, oil prices continue to slip. >>> hsbc earnings higher, 2.7%. stronger performance in the core retail business. >>> ann h anheuser bush inbev posting a 6% rise in core profit but missed expectations as weaker earnings in the u.s. and brazil weighed on the first quarter. >>> societe generale hurt by litigation. the french bank announcing it settled a dispute with a libyan lending authority. no real move in the stock price. in terms of that jump in the last couple of weeks, that was as we neared the first election round result in france and people felt it would be a market-friendly outcome. if you're looking for something that will move with the biggest size in absolute moves, if we got a surprise result t would be the french banks, even more so than the euro coming in to sunday. >> she wants to nationalize them, doesn't she? >> no, that was the far-left mel

over the past week, we have seen glencore, the u.s., that's a classic example of acting this way. we've seen the big privately held oil traders moving into more up and down stream assets. they can't make money from the court trading business used to. haidi: it has changed the landscape. also, is it sustainable? abouter: the great point volatility is exemplified by the classic market volatility gauges . 2012, the cboe introduced a new index measuring volatility on the the vix. volatility on the volatility index. [laughter] volatility itself is volatile. things may be calm at the moment, but there may be more ahead. haidi: we are getting into inception territory. thank you. one thing we would like to bring you to attention is our would like to bring you to attention is our interactive tv function. find it at tv on the bloomberg. you can watch us live and catch up on previous interviews, and dive into any of the securities or functions we talk about. can become part of the conversation. send us instant messages during the show. this

physically cooler, -- philly glencore brookings institute visiting fellow coming up, why the chief strategist morgan stanley management thinks there are better investment opportunities outside the u.s. from new york, this is bloomberg. ♪ julia: what'd you miss? now that french presidential elect emmanuel macron won a decisive victory against marine le pen, the prospects of a more unified europe are becoming clear. what does that mean for markets? , strategist at morgan stanley investment management, join bloomberg earlier today to talk about what he sees as waning u.s. influence. ruchir: i think so, because here is what is turning, and when these trains turning, they take a while. european equities versus u.s. equities are coming off a 50-year low in terms of relative performance, a multi-decade low. typically when those trains turn and there was positive economics behind it, it tends to last for a while. for me it is good news, even if the flow into the united states is overwhelmingly positive. there are many things to suggest that the u.s. is now a market that seems to be entering rosa unde

you have glencore out this morning, talking about the fact that i'm a commodities point of view, theing is happening faster than anticipated. is europe now in serious catch-up mode? and what does this mean for the brands here? chris: europe is definitely in catch-up mode. it has definitely woken up to the challenges of the auto industry. for germany, it is practically an existence of crisis. one out of every seven jobs are tied to the auto industry. the fact that merkel is at this event today, opening a battery factory, mercedes, daimler, bmw, all behind the electric car shift, so, you know, it is a significant sign. is right now leading the way as far as the car sharing. can you make money on that? chris runs our autos coverage here. stay with us. up is bloomberg "surveillance." guy johnson and i are headed to radio for london dab digital. this is bloomberg. ♪ >> dancing to a different tune. donald trump announces the liens of dollars of deal during his first foreign trip as president. the u.s. leader calls in tehran. plus, ever the optimist. jamie dimon tells bloomberg exclusively

bunge says it is not engaged in talks with glencore.ro >>> and uber says it inadvertently underpaid new york city drivers for 2 1/2 years. the company took a commission from full fare prices. uber says it will pay back drivers, with interest, for the mistake. the "wall street journal" said the average driver would be repaid $900, totalling $45 million. we will talk with adam lashinsky, author of the new book "wild ride: inside uber's quest for domination." >> let's get to this. the united kingdom raising the threat level to critical and deploying soldiers to key sites to prevent further attacks. willem marks has more. >> that's correct. they're still trying to identify here, authorities and investigators in this huge police cordon behind me whether salman abedi, the 22-year-old man responsible for monday night's attack acted alone. because they can't rule out if others were involved, they decided to raise the threat level to critical. the highest in ten years for the uk. theresa may has been talking about that overnight. we also heard f

coming up thursday, glencore's chief executive will be joining erik schatzker in a panel discussion liverg international forum. this is bloomberg. ♪ mark: breaking news out of germany. a says that merkel is convinced atlanticist. these comments come after angela merkel yesterday in munich suggested the u.s. and europe is drifting apart. she said that europe must plot its own course. andrew barton said this is a watershed comment from the german chancellor. merkel's spokesman speaking to reporters in berlin. merkel considers it necessary to address the g7 differences. there clearly were differences, usually six versus one, the one being president trump. other comments are from the ecb's ewald nowotny. he is speaking to reporters in vienna. he says we are seeing positive news on growth and he says he expects more wage dynamics once the upswing is consolidated. it comes ahead of the ecb's meeting next thursday. he says we shouldn't speculate about the outcome of the june meeting. great things are expected next thursday. maybe a change in the rhetoric from the central bank. gold is holding n