we're waiting for mario draghi to respond to questions and the european parliament. dlines crossing the bloomberg from prepared remarks. draghi saying the euro area still needs very accommodative conditions, says the ecb is firmly convinced the euro area still needs support. some of the till risks have receded measurably, downside risks to growth, though, mario draghi says, are further diminishing. i just want to get your initial reaction to those comments so far, striking a little bit of a dovish tone there. >> i think he is making some concessions to the rebound we are seeing taking root in the eurozone from a growth point of view at least. i keeping the door closed on any swift change or prospect of a swift change in policy settings at this point. i think the messaging here is pretty much in line with the statements we have had from the ecb, so not too much in terms of a change of you. it seems consistent with draghi's recent position on this issue. nejra: if we look at the euro-dollar, really going nowhere. are you expecting to see much movement in the q&a portion

the comments from mario draghi signaled the bank is not ready to unwind stimulus measures despite betterconomic growth across the eurozone. draghi said inflation remains subdued. the euro down a bit this morning. >>> a greek government spokesman is denying a report that greece may opt out of the next bailout payment if lenders fail to reach a deal on debt relief. a german newspaper reporting that athens was weighing that option but the greek spokesperson said there will be a solution reached when european ministers and imf ministers meet. >>> european banks taking a hit after deutsche bank cut its rating on regional bank stocks in europe to underweight from market neutral. the sector is most sensitive to the swings in the euro areas growth which they expect will fade a bit this year. valuations are no longer compelling. if you read this note, it's a bullish downgrade based on the run they had recently and the fact that the big improvements we've seen in european growth over the last six months are priced in. as opposed to the fact that they think growth will fall off a chart. yesterday t

when we talk about markets, mario draghi is fully committed to extraordinary policy. of red around european complex this morning. i wonder to what extent the to ben story, renzi seems pushing for even an election as early as the often time -- often -- autumn. we will wait for economic confidence numbers later. in the u.k., we also have theresa may going head-to-head. mliv, talking the possibility -- possibility of euro-yen having formation as draghi recommit. mliv, talking the we have all gotten ahead of ourselves. change the forward guidance, change the direction and intonation to the market. draghi's message couldn't have been clearer. moveo you think the euro-yen could be in terms of markets. a key line is 122.56. one of the strongest markets despite a terror attack and an election is this. u.k. market is up nearly 5% in the month of may alone. you are seeing it outperform each of its peers in france, the swiss market index and on the backs. you have this significant outperformance in london this morning over the month. look at some of the real balloons. itself,rec

mario draghi speaking in brussels.ome of the headlines include that the central bank has no plans to change qe bond by limits -- bond buy limits. ♪ mark: this is bloomberg markets. mario draghi defending central-bank's decision to continue monetary support in the face of pressure to begin withdrawing stimulus. here is what he said earlier in his prepared marks. >> overall, we remain extraordinarily convinced that an amount of monetary support, including our former guidance, is still necessary for the present level of underutilized resources to be reabsorbed and dor inflation to return to an -- to around 2% within a meaningful medium-term horizon. mark: draghi is taking questions. >> including the enhanced supervision at eu levels and location requirements. you, thultimately be to e eu legislator to decide which to apply to third countries. crucialecb, it will be that it can at least preserve the current level of involvement over systemically important, euro-denominated clearing activities. regardless of the foot -- of

we will hear from lawmakers about what is next. , ecb presidents mario draghi says the job is not doneet. we will talk about the decision with alice rivlin. and disney struggles to get a grip on the changing cable-television business. chief executive bob iger tells us what changes he is making to get networks like espn back on solid ground. vonnie: let's get back to the storm and controversy over trump's abrupt firing of james comey. mike pence just telling reporters the firing was "the right decision at the right time." we also follow swift reaction from both sides of the aisle. >> absolutely laughable. fails to pass any smell test. both parties, at different times, have called for the mr. comey.f this is not watergate. >> no one is happy with this performance. i think it is time to take a new direction at the fbi. >> the timing raises some questions. because of the interference by the russians in our election. >> the idea that you take the person with every other spots ability, including the budget of the department, and somehow it all falls apart, that is not how organizations work.

reason why mario draghi may want to sit tight for a while.n mario draghi to take his foot off the accelerator. >> you were at a monetary policy on saturday. the governor, governor kuroda, spoke about inflation and got a good laugh at the same time. he even laughed at himself in his remarks to the people assembled at this high level panel. he said i am doing my best to push inflation to 2%, but japan periodcaped a 20 year inflation. by 2018. how far does he have to go? #7492, the yellow line, that is the core cpi for japan and takes out food prices. it is 0.2%. most economists i have spoken to say that may not happen for many, many years, but the point is that governor kuroda says inflation expectations are sending a signal and we will not stop until we get there. prime ministers shinzo hobby has a step up on the fiscal side, and that is were a group come to boost that inflation rate higher. one of the most optimistic central bankers out there. thank you. let's do a quick check on the japanese markets, catch-up rally in japan after coming back

how concerned should mario draghi and janet yellen be?idesharing start up uber hits another bump in the road where the head of the self driving car system to 30 minutes until the end of the session p we have been lower, we have been higher. we are up for the first day today, the currencies are rising against the dollar. sterling earlier today down by .7 percent or quite a rebound. a poll in the last few minutes, 43% labor, 33 percent, a gap of 10%, an increase of 1% from the conservative party versus previous p are we have that projection that it would not even when the majority. so much happening eight days ahead of the election. a week on thursday, which leads reversal data. you can see the hedge against the weaker pound versus the dollar increasing to the highest since january. look at where we were around the brexit referendum. that is when traders were about as negative as they had ever been. that was a fact here that was record never -- negativity against the pound p are we are nowhere near those levels but still, volatility is incr

you can watch mario draghi's q&a today live from 12:00 p.m. u.k.quizzed by hague,awmakers in the here on bloomberg television. you can watch it of course on your bloomberg terminal three just type live . stay with bloomberg television. that is it for manus cranny and myself today, although you can dab digital ino, london. up next, it is "surveillance," with guy johnson and tom keene. ♪ guy: comey and the credibility questions. does this undermine the president's ability to pass this fiscal stimulus. reflation reaping. have we passed the peak in global reflation? as no budging at the boe, we await the rate decision tomorrow. will this remain on hold until after brexit negotiations have concluded. this is "bloomberg surveillance ,"

policy can meet the optimistic expectations in market pricing and ecb president mario draghi worries about the so-called neo-protectionist stance in the united states and reaffirms his commitment to stimulus. from new york city, good morning. a warm welcome to "bloomberg alongside david westin. alix steel is away today. let's get to the markets this tuesday morning. here is the board for you. treasuries, yields stuck in a tyke -- tight range. features a little bit softer after weeks of gains. we are down by about 0.15%. let's get you up to speed on the headlines outside the business world. emma: president trump is criticizing germany. he says the u.s. has a massive trade deficit with germany and the germans pay far less than they should for nato. president trump says it is very bad for the u.s., but it will change. in berlin, india's prime minister says his country has made a quantum leap in economic ties with germany. he spoke after meeting with angela merkel. he says the two leaders are made for each other. global news 24 hours a day, powered by more 2600 journalists and analysts i

anchor: let us talk about mario draghi and the euro trading a little bit lower.se comments, stimulated policies still to stay. as wellabout the u.s. and that the u.s. might be headed towards a wrong path on trade year. >> it is our most like the backlash on the trump visit. there are some world leaders saying they have a little uneasy feeling. monday tos statements talk about the strength of the eurozone, the four-year recovery for the eurozone. >> for domestic price pressures financinghen, we need positions which are dependent on a fairly substantial amount of monetary accommodation. he is talking about more quantitative easing and shifted .fter that speech he is echoing the comments from germany's angela merkel that the u.s. and europe are not as close as they were. a lot of people were put off by trump's hectoring the european nations at nato. perhaps the near protectionist eo-protectionist stance coming from the states is a concern. his comments coming one day after merkel's not unexpected -- but again, it adds one more iron on the fire. if we go into the blo

mario draghi. though i think you probably could apply this to a number of leaders right now. aghi's message -- yesterday he had an interesting day in front of the dutch parliament. he said the time had not yet come for officials to start thinking about an exit. >> nevertheless, it is too early to declare success. underlying inflation pressures continue to remain and have yet to show a convincing upward trend. the domestic drivers of inflation, meaning wages, are not yet responded to the recovery. guy: i suspect mario draghi was looking for the exit from the building yesterday. our guests still with us. is he going to change the light which? -- the language? t.: there is strong motivation not to change. the economic data are certainly getting better. we are seeing that and the soft and the hard data. the inflation data which keeps the ecb on the sidelines for now, inflation meaning well importantly more inflation expectations very subdued. the ecb will be on hold for a while. guy: they presented him with a tulip. just to make the point the bubbles can be blown. is there a dange

as you mentioned, mario draghi is speaking in spain.ill go to the european central bank in frankfurt because they are giving a financial stability review, so we get an outlook on their growth and expectations. and inflation equitation. i will try to get out of him a little bit about monetary policy and when the fed is going to go back to some sort of normalization or at least announced the beginning of thinking about going to normalization and a taper. guy. guy: cash is opening. the headline level, market makers are not going to give us a guide today. ftse barely budging. level,just shy of the 74 just shy of the 75 level, but no real clear sense of direction pure you'll see that from a number of the other markets as well. bias to the downside, i would argue. we will watch some of the individual stock stories. we will come back and talk about that in just a moment. let us get to nejra cehic for more detail in the markets. nejra: we have the gilt market open here as well. the european bond markets and the 10 year treasury the yield -- tre

>> mario draghi is not going to be happy about this.ast few months is on policy ising that ecb working and it's going to remain in place until we see inflation get posted to the target. it's currently around 1%, clearly target is 2%. lower for longer is the mantra. but a couple weeks ago, he alluded to the fact that we could be exiting. foreign guidance is a key tool that the ecb has the on asset purchases and rate settings. it will pass on the way he pointed to the exit. there are a lot of good reasons for the exit, because for the metals are improving in europe and -- europe. mezzo not moving a lot in that shot. met usually moves a little bit. to be honest, he may be a little frozen there. not matt, but the shot maybe frozen. the data is certainly improving, but as you point out, we are seeing this in the state as well, the pc ease remaining kind sideways, yet the implement this coming down sharply. certainly the delta on that is picking up. when we think about the danger of the ecb, is there a danger become or remain to focus on infl

that may have something to do with this, ecb president mario draghi has signaled the central bank is not ready to unwind fiscal stimulus. speaking at a parliamentary hearing in brussels, the central bank chief offered a cautious outlook on inflation. >> overall we remain fairly convinced that an extraordinary amount of policy support, including through our forward guidance, is still necessary for the present level of underutilized resources to be reabsorbed and for inflation to return to and daughterably stabilile durably stabilize. >> while the euro fell against the dollar on the comments, we are off by 0.2% off the session lows, off by 0.4% about two hours ago. changing hands at 1.1143. the euro's weakness according to analysts may be down to uncertainty over the greek debt relief plan but also the uncertainty when it comes to the italian issue. >>> bundesbank's weidmann suggested it was now time for normalcy of the policy. over the years he has been a critic of the loose monetary policy. let's talk the ecb with nic nick artside. i'm scratching my head here. i was thinking in two w

president mario draghi will be grilled at 2:00 p.m. appearance before next week's monetary decision. while the area is strengthling, draghi could point to low core inflation as he makes the case for keeping policy on hold. with erik norland and the president of the german institute for economic research, marcel. we approach the pivotal e.c.b. meeting in june. so much has been talked about, so many expecting so much, some not expecting so much at all. what sort of message is draghi going to want to pursue today in front of the european parliament? he's essentially a little bit more dovish than some of his companionens -- companions on the e.c.b. marcel: i expect him to give the message the e.c.b. is on the right path and q.e. was effective and that the e.c.b. will full fill the mandate on the medium term and can think of an exit and must be his message and we can't forget have different views in europe. in germany there's a strong criticism of draghi himself, even strong personal criticism and particularly the government has been arguin

you have mario draghi so emphatic, now is not the time.re is less of a coalescing of mines than one would hope from the ecb. wingsre are certainly two on the ecb. what we have to remember is that the ecb is really where the fed -- they're conscious that inflation, although apparently the risk is declining toward deflation, inflation is still very low and they don't have many tools at their disposal since getting turned down. everything argues for moving very, very slowly. thinking yes, the have to of knowledge that the economy again, until we see the inflation risk of all that is well, we really need to see that. startnk core cbi will picking up this month and keep rising. manus: if you strip out the oil in it, what's going to drive court cpi? >> there's a whole variety of that if health core inflation down for a while. we think there gradually eroding. it has a lot to do with inflation expectations. the think that helps drive inflation upward. in unemployment. the spare capacity as much lower than it used to be. i say rather glibly that t

that is a further headache for the ecb and mario draghi foreshadowed in the comments about the need forined stimulus. theresa may could end up with down fromawmakers, 330. let's get to the story of focusing on chinese pmi which is held steady since may. services activity accelerated from a six month low. let's turn our attention to the u.s.. we been hearing more about the concerns about inflation from one fed policymaker. the fed governors saying she may reassess her thinking on the future path of monetary policy if inflation continues to remain soft. take a listen. >> i see some tension between signs the economy is in the neighborhood of full employment and signs of tentative progress we've seen on inflation may be slowing. if that tension between the progress on employment and the lack of progress on inflation persists, it may lead me to reassess the path of policy in the future, although it is premature to make that call today. manus: caveat emptor there. david owen is our guest host here. she could not to put any more cap yachts in their. it boils down to this. questioning the valid

mario draghi spoke to the market yesterday, saying we will remain fully engaged, too soon to get off that exceptional easing that you've got, the exceptional liquidity. how do you favor the move you've got, with draghi's still fully committed? do you want to sell the yen? that's the exceptional thing. we have a double top formation coming in. is the euro strengthening in the wake of the french election, beginning to fade? they would say that if you touch the level, that is where you will break on a drop lower. so how do you fade of the draghi moves? it could be through euro-yen. let's talk about the implications on markets. some are on vacation, so we thought we would to get off of the msci asia index, dropping slightly. china closed, hong kong closed, taiwan closed. slightly skewed, samsung off by 2%. draghi says he is still fully engaged -- what does that mean? a great deal of valuation has been built up, do we question that? corbyn went up against may last night. looks like the tory leader is dissipating from 9% to 6% for the morning shows. gold was much better, back in the green.

manus: let's do it mario draghi says. european central bank will be front and center.re's another central bank at the front and center, the federal reserve, and the fed bank chief in cleveland is urging colleagues to deliver on gradual tightening of policy. she spoke to bloomberg news about moves that need to be made to ensure the economy doesn't fall behind. anna: her comments came after a speech in chicago. >> it is important to the fomc to remain very vigilant against falling behind as we continue to make progress on our goals, especially given the low level interest rates and the large size of our balance sheet. we know that monetary policy affects the economy with long and variable lags, so policy actions have to be taken before goals are fully met. anna: simon derrick, chief currency strategist at bny mellon. bad things happen when the u.s. interest rates are held too low for too long. but she says i don't think we are way behind the curve. thingsink one of the that ultralow monetary policy does is drive a search for yield. it's not actually load u.s. monetary po

a big week for mario draghi. he goes in front of parliament today.s going to be a real hint in terms of policy, although volumes were 30% to 40% lighter. matt: all right. german chancellor angela merkel has given her strongest indication yet that europe and the united states are drifting apart. speaking at a campaign rally in munich after the g-7 summit, she suggested that reliable relations since the end of world war ii are coming to an end. >> [speaking german] >> the times in which we can fully count on others are somewhat over, as we have experienced in the past few days. that is why i can only say we europeans must rely, put our destiny into our own hands, of course in friendship with the united states, and friendship with great britain, whenever possible. also with russia and other countries. brusselsh us now from to discuss this and a range of issues is the global market strategist at j.p. morgan asset management. --ry first ask you about how lets me first ask you about how aggressive you take this. before the g-7 summit, she hosted former pre

you say how well the european continent is doing a lot of people say. , mario draghi, get with it.y're so much uncertainty. is it more prudent for the ecb to wait, and far mario draghi stress, i want to make sure rising cysts -- inflation is sustainable? >> i think we are in a different inflation environment. it is closing to the target. extreme monetary policies that have been enacted have to be scaled back. it was the right thing to do 10 years ago to move aggressively with monetary policy, but just as much as it was right to do it then, it is wrong to still be on the same monetary policy courts 10 years after the crisis. my expectation is in june they will remove some of the biases in the language, and around september, they will announce they will taper the purchase program. year, we will have the ecb with a stable balance sheet and talk about interest-rate movements after that. i think the ecb is clearly on the path normalization, yet they are following the fed with some delay, and they are data-driven. if anything were to go wrong, they might change that course, but given the

mario draghi has warned the u.s. it might he headed down the wrong path on trade.thening. he added that the biggest threats are now external come at merkel's comments that the eu and the u.s. are drifting apart. the u.k. prime minister theresa may and jeremy corbyn have taken part in a live tv question and answer session with the general election 10 days away. over paymentseed due to europe under brexit. the prime minister said it was not paying to ensure a good deal. the labor leader said he would hand over what is legally required. a boost in the value of foreign currency denominated assets gave the bank of japan a full-year profit for 2016, making up the $2 billion loss it suffered in the first six months of the year. the bank had net income of $4.6 billion through march. the fall in the yen helped to the boj by reducing losses from foreign currency holdings. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am rosalind chin. sophie: a lackluster trading day in asia with little in the w

so mario draghi is here as well as all of the other central bankers.hey come with their treasury secretaries or ministers. thank you, matt miller in bari, italy. let's check in on first word news. lawyers say trump's he doesn't get any income from russia, plus they say you doesn't go any money to russian lenders. the lawyers say that comes from a review of the president's tax returns for the last 10 years, they did not release copies of those returns. attorney general jeff sessions is instituting a new policy that is certain to send more people to prison for longer terms. sessions has told federal prosecutors to pursue the most serious charges possible against most suspect, a reversal of obama era policy that aim to to ease overcrowding and federal prisons. preparing to cement ties with president trump by making unprecedented investment in the u.s. according to people familiar with the matter, the saudis will announce plans to invest as much as $40 billion in u.s. of, and that may happen next week to coincide with president trump's visit to the country

mario draghi.

ecb policy that an uptick in growth supports the case for lowering stimulus, but ecb president mario draghi is in no rush to change monetary policy, saying it's too early to declare victory in the quest to boost economic growth. european indices closed marginally higher after a mixed trading session. wall street slipped off session highs we saw in monday and tuesday. fairly muted trade there, the dow jones down about .2%. markets have been called despite significant geopolitical risk around the world. the firing of james comey is something that could've injected panic into the markets but has not done so. analyst warned that the tranquility may not last long. >> basically it's concentrating on the good earnings season we've had so far. the market is shrugging this all for now, but once the earnings season is over with, that could change. kate: wall street will be closing in just under an hour. the snapchat parent company begin trading on the nasdaq in march. share prices drop since then and snapchat is expected to announce heavy losses. moving on to other business , a green light to buy gen

mario draghi speaks later. lots of central bankers talking in the last 24 hours.l opec agreed to an extension? vienna.ive in ♪ mark: you are watching bloomberg surveillance. we look at european stocks, we are fairly steady after closing high yesterday. action in the asian section from moody's downgrade of china. we paired some of the losses. the u.n. moved lower. where we see the impact in .urope is on the miners if you look at the stoxx 600 isic resources index, it edging to negative territory for the year, down for the year. they are one of the worst performing groups on the stoxx 600. looking at the commodities space, looking at oil rising for sixth day.- a some technicals on brent. above 54 dollars a barrel. it has moved above its 200 day, 100 day, and 50 day moving averages. a golden cross. the 50 day moving average has crossed the 200 day average. this has only happened four times in five years. it generally marks a multiweek trend. keep an eye on this ahead of the up tonutes as we build the possible june hike. i want to show you the treasury bill and -- the

in the netherlands, ec president mario draghi saying as follows that things are clearly improving inhe eurozone and the economic recovery has evolved from fragile into a broad-based upswing. now political risks have diminished, a load of banks comic out -- coming out making more bullish calls on the euro saying it is about the sprint of the economy. the hard data with the soft eurozone surging to the highest in a decade. joining us now is deutsche bank chief international economist. great to have you with us. the focus on the data and not so much the politics. >> the data has been getting better the last six to nine months and the pressure now on the ecb talk more about that and not to be silent on the politics. it is a very delicate balance that draghi is trying to walk and recognizing the data is getting better and relieved the thatical stuff jonathan: the talk more about the data and less about france and they want to talk about italy as well. they cannot disregard the political nature of europe, can they? torsten slok: a number of political things on the horizon. what they would

this after mario draghi's comments of what is needed in the euro area. of the yen, the euro falling as low as 123.82. that is the weakest since may 19. our analyst says this is performing a double bearish talk. 122.56 a two-week low as . draghi is his usual dovish self. taking a look at the kospi, something to watch for, it is set for its best month since january 2012. we had warning signs this could be waiting as global signs pullback $2 billion from korean stocks this year. we are seeing bearish wagers creep higher. we do want credit suisse and securities keeping the faith. we want to see a further value of the 6% for the kospi, maintaining its best performance this year against other equity markets. betty: thank you so much on the markets. let's get the first word news with a ramy inocencio. [indiscernible] betty: we seem to have lost ramy's mic. we will get back to you with the first word news. in the meantime, let's get to the james bullard interview we conducted an hour ago at the federal reserve. he says they have done all they need on the rate hi

mario draghi will be speaking to the european parliament just a week and some change away from anotherion, as the market starts to look to what the ecb may or may not do with the quantitative easing program. we will be looking ahead to the election. theresa may and jeremy corbyn ramp up campaigning, and on friday, the payrolls report in the united states. let's bring in the roundtable one time -- one last time. gregory peters, on a long, and brian railing -- bonnie wongtrakool, and brian ringling. unemployment keeps grinding lower. where is the wage growth? very slow to come about and probably will continue to be so. that has been a problem for the fed. i think he goes into those inflation expectation numbers that are trending slightly lower. the jobs report has to be a total disaster for the fed not to move in june. june is pretty much set. jonathan: greg? gregory: same answer. the numbers matter a lot more than payroll. we were joking, pce is the new payrolls. i think payrolls are slow and steady and there is no wage growth, and real wage growth is still negative. jonathan: i want to

mario draghi leading a push to stamp out any speculation that the european central bank might raise interest rates before it ins quantitative easing. he reaffirmed the logic of the current secrecy, saying the unwarranted side effects of negative rates or less -- likely be less of a problem. >> our currenthe reaffirmed thee current assessment of the side effects suggest therefore that there is no reason to deviate from the indications we've been consistently providing in the introductory statement to our press conferences. >> global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. find more stories on the bloomberg at top . seen it a fewve players ahead of the opec meeting, the nikkei up by point or percent. we're seeing the hang seng index near two-year high. the korean market at a record high look at the tie x, if it holds at this level it will be a 17 year high for the time one index. koran leading interest rates today. a lot of

mario draghi cannot do much about that on his own.r the time being, for next year or maybe two years, were on an upswing, and we should be pleased about that. one thing that happened over the weekend makes us a bit more please, the fact that macron won in france. i think they are decent goalkeepers in terms of taking shots against the euro. as the german elections loom, some in germany are trying to make the most of the macron victory. less austerity in europe is the answer here. >> angela merkel was quick to snuff out any hint that along with macron she might do the and thatralization, would be great. that would be a golden scenario. she is after legacy issues like saving the euro between her and -- at the moment it doesn't look like that from the cards. there's no appetite for that in germany. manus: you say the abject failure to forecast inflation means that all this talk and speculation of tighter policy is premature. your unshaken in your view of when this choreography changes? i think it's been all about that for some time. manu

mario draghi arriving at this financeing, gathering ministers and central bankers. christine the bar is there. --rch moscovici is there christine lagarde is there, ise masa vinci is -- there. there is more common ground on greece. we will speak to the federal reserve bank of chicago president at 3:30 p.m. u.k. time. we have you commissioner pierre's take on the election. the opening 20 minutes away. 20 minutes until the start of cash trading on european equities. this is bloomberg. ♪ matt: welcome back to the show. i am in italy right now. the g7 finance minister's meeting. we have seen the kuroda delegation arrived. wolfgang schaeuble has just gone into the castle where the finance ministers as well as their central bank heads will meet. we spoke with italian finance earlier.potte we have seen serge moscovici earlier as well as christine lagarde. a lot going on in italy. let us find out what is happening in the rest of the world. we go to juliette saly. juliette: thank you. forecast boosted its after it improved its operating performance and agreed to sell a brazil

mario draghi will be speaking to the european parliament just a week and some change away from anothern, as the market starts to look to what the ecb may or may not do with that quantitative easing program towards the end of this year. then we will be looking ahead to the election. the uk's theresa may and jeremy corbyn ramp up campaigning, and on friday, the big win, the payrolls report in the united st for a few final thoughts, let's bring in the roundtable one last time. gregory peters, bonnie ngtrakool, and brian rehling. brian, payrolls next friday. the question we keep asking again, again, and again, unemployment keeps grinding lower. where is the wage growth? brian: very slow to come about and probably will continue to be so. that has been a problem for the fed. i think it goes into those inflation expectation numbers that are trending slightly lower. but that said, the jobs report has to be a total disaster for the fed not to move in june. june is pretty much set at this point. jonathan: greg? gregory: same answer. i think the inflation numbers matter a lot more than payrolls a

this is a debate and mario draghi is in the ecb for another 2.5 years.is not useful to discuss succession. it is important that the ecb continues to do its work, that everyone is focused and we are starting to see the exit from this unusual unorthodox monetary policies. my expectation is we would see that over the next year. there will be some removing of biases in the forward guidance. there will also be a program discussion around september on what they will do in the next year, the tapering of its purchases. int policy is going to kick over the rest of the year and it is important that the ecb .trongly leads that and prepares markets for that. we have seen what happens in the u.s. went markets were not prepared for a tapering announcement. the president be in command. concerned theyou start normalizing policy to send given that italy is on the brink , there is a lot fewer euro support then there was three years ago. we had a little bit of noise from spanish elections. guest: as much is that policy that we are on now was appropriate when the crisis tha

we will hear from lawmakers about what is next. , ecb presidents mario draghi says the job is not donelk about the decision with alice rivlin. and disney struggles to get a grip on the changing cable-television business. chief executive bob iger tells us what changes he is making to

but mario draghi needs it. numbers out of the eu saying that inflation is down and growth is up. does that make his job harder? david owen: they live in a world of small numbers. the inflation issue here is core inflation. and wage inflation, not picking up. they say they will not raise the rate until they finish doing qe. in a tight space. jonathan: david owen. thank you very much. coming up next, the governor of the bank of england. mark carney and his news conference. this is bloomberg. ♪ jonathan: from new york city and our viewers worldwide, the bank of england news conference is coming up shortly. this is how the markets are set up ahead of that. in the equity market, things are softer in the united states. down .1%. or 12x is up by 11 points. we switch of the board, here is the situation elsewhere. in the fx market, the cable rate is south of 1.30. down .4%. the euro is unchanged. the governor's news conference, talk to me about the pushback that governor carney will get from having rates were they are a

how concerned should mario draghi and janet yellen be?rt up uber hits another bump in the road where the head of the self driving car unit

let's continue to follow comments from mario draghi telling the parliament that the euro area still needsxceptional support from the central bank monetary policy to absorb and stabilize inflation. overall, we remain firmly convinced that an extraordinary amount of monetary policy support, including through our guidance, is still necessary for the present level of underutilized resources to be reabsorbed and for inflation to stabilizednd durable levels of around 2% within a meaningful medium-term horizon. mark: thank you, alan. draghi is not in a rush to tighten policies. but investors are looking ahead to that meeting. there is quite a high expectation that forward guidance is going to be tweaked. if everything remains the same, how do markets react? >> the economy is so strong. keeps sayingtently wait for inflation. it is a must as though they want significantly higher inflation for a period of time before they do anything. the markets can live with this. think it will be fine. the euro can come off the boiler a little bit but it is a bit of a sweet spot with this strong economy and earn

peter pratt and mario draghi were clear in frankfurt, they will not raise rates until they stop qe and they're waiting to see core inflation and wage inflation pick up but there's no sign of that happening. >> you think the reason european equities have done so well has more to do with the stimulus continuing from the central bank and less of an actual rerival? >> there's a recovery. but we're talking growth of less than 2% annualized. so this is a slow recovery. we have political risk coming back on to the rise and the brexit discussions between the uk and the rest of the eu. but possibility of a snap italian election in october. that for mar shkets should be m worrying than france. in italy there's a prospect of renzi calling on aan election i october. you have low yields across the system, but within that you have sort of widespread spreads in s cases, and italy is the standout. for equity investors, the message is clear. for fixed income, it's a more confused message. by september it will get much more confusing. >> do you think mario draghi says anything in june hinting at a furth

by mario draghi that the recovery in the region is getting stronger.d of fixed income strategy. the story with europe, people getting more constructive and the fact they have to talk about greece g7 tells you the problems are not solved but does it matter foreign investor? >> the cyclical force that is creating this optimism around beene as inflows, this has multiple years of qe. it better work at some point, you should be growth, you have paid a lot for it. is it sustainable and will inflation be sustainable? the other side, the darker side, at some point, qe has to end by its design, technicality around how many bonds it can buy. as long as europe is on an upward trend and we see a pullback from an ecb taper, that will be great for the bond market in addition to the equity market. forow difficult will it be president draghi to move away from the kind of policy they introduced without having a significant backlash in markets? >> it will be easier in europe japan.an -- than the tricky part is the fed experience, you have the taper tantrum and the marke

this is as significant an event or ben mario draghi bernanke backed up the markets post crises.e had a true existential crisis in the eu, and it has passed with flying colors. two out of every three french ised for macron, and he clear pro european union, so that is helpful. it allows stability from a political and geopolitical perspective. forave the promise structural reforms to the french economy that could unleash the tremendous power of its people and resources. tonce, we forget france used be a very harmful economy and it is only in the last 10 years that it has languished. if france can adopt the regulatory reforms similar to what the 90 did through the 1980's to fix its malaise, france could be a powerful economic engine. it is the second largest economy in europe, a g-7 member. getting france to do better would be a an important element for france, europe, and the global economy, and that construct is important and sets up a better europe. a bitter europe is a better global environment. msci i'm looking at the u.s., a record high, stocks touching an all time high. where

the last thing we need is for mario draghi to blow all the work away.opean been on something of a tear, looking optimistic. u.s. markets have had a wobble because of how pumped up they got earlier this year and last year. it looks like we are more likely to get a delay on that coming through in the u.s. and as far as that theme continues to play out, it looks like european assets are going to be leading the way. mark: thank you for joining us, paul dobson, markets live editor. wonderful function. markets live go. i live by it. become that is going to a regular feature for us. let's check in on first word news. courtney: good morning. anthony weiner pleaded guilty today in that infamous sexting scandal. he will be heading to prison for 27 months. he sent sexually explicit messages to a 15-year-old girl. last year the fbi seized his computer and found in else to his wife, clinton aide huma abedin. willweek president trump send congress a proposal to balance the budget in 10 years. according to a government official, it calls for deep cuts to discretionary

federal --i of the mario draghi says -- could help productivity.good sign for councilmay as a win seats. is this a tipping point for a landslide in voting? this is bloomberg. ♪ ♪ mark: live from london and new york, i'm mark barton. vonnie: and i'm vonnie quinn. this is "bloomberg markets." let's go to matters of domestic nature with things looking up for prime minister theresa may. a sweepinggesting victory. joining us with the latest on brexit, government reporter -- a governor reporter. is there a readthrough, or is it dangerous linking the two? >> of course, turnout is a big issue. what looks like a bad result -- i would be surprised if that did not translate on june 8. in the fica conservative -- it looks like the conservative is way ahead here. mark: what is the risk if you are theresa may? the message was built on the idea that you vote for labor, threatened to put corporate empower. does today deadly fed message? >> that is the fear. is that linehear of don't take anything for granted. you must turn out votes. there will be a lot of aggress

had a lot of interesting and informed people at your latest summit including ben bernanke and mario draghiry summers, newt gingrich, a long list. vonnie: that is enough name dropping. thanks for joining us, tony crescenzi. it is time for the latest bloomberg business flash. the drug will have to wait for u.s. approval. the study found 2% suffered serious cardiovascular side effects. the fda decision expected in july is now unlikely until next year. there's a big transatlantic deal in the chemicals industry. clariant has agreed to buy billion.at $6.4 the founder has sought a large transaction since taking the company public in 2005. they are in talks with g.e. to build a supersonic jet. committed buyer has ordered 20 of the aircraft. general electric said it is excited to continue discussions. the plane would be the first nonmilitary jetsons the concorde flights were halted in 2003. that is your latest bloomberg business flash. ford shares are gaining more than 1.5% halloween a shakeup. -- following a shakeup. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. a ma

mario draghi restating the bank's commitment to end asset purchase before raising rates.anks,look at central before we talk about -- that is overseas for viewers. let's talk about china. cut the credit rating for the first time since 1989. do you have doubt that the leadership of china can rein in them and maintain the pace of economic growth? >> absolutely. they put a lot of stimulus at the back end of last year which has them off to a great start and almost means that they are pretty much guaranteed to hit 6.5% this year. we are seeing a tightening now. i do not think the downgrade itself is material but if you look at financial conditions in china, rising tribal, and on top of that, falling growth in lending. you have this initiative to stop the financing of nonbanking financial institutions. all balance sheet lending as they try to crack down into the second half of the year. those are assets to rein it in but in reality we have seen very little to adjust that. mark: domestic or sovereign debt is mostly held by domestic investors. that shields the country to some exte

mario draghi. equities european right now, 30 minutes until the end of the tuesday session. gmf go is your function. the european benchmark down for a fourth day, worst stretch since march 7. common currencies falling, the ones at the bottom, including the pound, rising against the dollar. sovereign bonds is your final three columns. you just heard before from the chief executive of ryanair, michael o'leary. ryanair planning to accelerate european expansion, taking on financial woes as regional competitors reduce -- ance on and in certain uncertain u.k. market. we are going to add two or three more 737 jets to its existing delivery schedule while extending leases on 10 other planes through 2019. rising demand helping push profitability for the fiscal year through the end of march up by 6%. passengers increased 30% to 120 million, bolstering profits despite a 13% drop in shares. sticking with airlines, the owner of british airways was not trading in london yesterday because of the trading holiday. london, they were earlier down as much as 4.5%, the most since july last year.