i am mark barton with betty liu.ares falling as much as 4.7% earlier after quarterly profit of the vw brand declined 86%. the chief executive says the automaker "achieved respectable results under difficult conditions." they continue to whether the emissions scandal. let's get to berlin. chris, why did shares fall as much as 4.7% earlier? was it the decline in profits of the namesake brand? chris: that is certainly a big reason for it. figures rose slightly. that was due to one-off charges. 3.9 million euros. they got currency tailwinds from for thes they set aside scandal. the volkswagen brand is so cool or to the company. with the -- is so core to the identity of the company. with the profit margin being minimal, it is a problem for them. they have suffered from a decline of profits from china that is not reflected in the profit results. china is their biggest market. if profitability starts to slam there, that will be ahead went for volkswagen. mark: it proves that volkswagen is finding it difficult to move away f

this isam mark barton, the european close on bloomberg market.o las vegas head for the sky bridge alternatives conference. erik schatzker is there. erik: i am here with chris hentemann of 400 capital advisors. he specializes in securitized structured products. i tell everybody that securitized and structured products but i really want to talk to you about lending club and marketplace lending. you have been paying attention to this company and this industry for a little while, not just because of the fairly negative headlines they have been making for themselves over the past couple of days. chris: we have been watching the sector grow over the past two to three years. has been a fantastic growth story for a lot of these companies, and it is a very rational image, but a growth story that is becoming very dependent on the institutionalized credit markets. erik: what does that mean? chris: look what happened with lending club. --ir extreme growth is out? petering chris: showing how dependent they are on smaller markets. now they need much larger mar

vonnie: coming up his mark barton in london, and he is rapidly approaching your rear end. he left corner you have spain, and the right, the u.k.. if i were to tell you that one of the stock market is trading at a three-year low relative to the stoxx 600 and one is trading at a record high relative to the stoxx 600 you might say it is the u.k. that is trading at a three-year low. you would be wrong. actually, it is spain. this is the chart that shows it. spain has its own political risks and what is juicier is bryan singer says if you want to make money, you want to put money into spain. he is a game theorist and says the market is way too pessimistic about the outcome of the spain election three days after the u.k. referendum in june. he says there could be a coalition government which means that right now, it is the best time to vote on spain as a small window into play because there are more outcomes and the spanish stock market has fallen by 23% in the last year. it is a wonderful piece on the bloomberg terminal. especially if you like the prisoners dilemma and game theo

mark b.: and i mark barton. let's get to julie -- and i'm mark barton. let's get to julie.ie: we'll has been gaining a little bit of steam, up 2/3 -- oil has been gaining a little bit of steam, up 2/3 of 1%. we are seeing a build in inventory that is unexpected. 1.3 million barrels. cushing, oklahoma, inventories building by 461,000 barrels, a drawdown of 350,000 was expected. alix steel, one of the experts in commodities, pointed out that most of the canadian supply goes to cushing. even with the supply destruction that happened because of the wildfire in canada, you are seeing a build in cushing, that would presumably be negative for oil prices. a larger than estimated drawdown in gasoline inventories, me rely -- it's interesting that the crude inventories are seeing this kind of buildup. behind me on the screen, you are starting to see a little bit about -- bit of a comedown in oil prices. we saw a trade downward. now hovering down -- up about 1/10 of 1%. we will keep watching these numbers. like an unexpected number on the headline and on the cushion supplies -- quite a

and i mark barton.s is the "european: vonnie: it is time for the business business flash -- bloomberg business flash. it was below estimates and a big reason that there was a solid rise in home building. home construction was a bright spot for the u.s. economy and that is expected to continue for the rest of the year. manufacturing rose at a slower rate in the u.s. last month. factories still struggling with weak global demand. fell at theg index level that indicates the line between stagnation and growth. ande is a big transaction the paper business. the largest company in the business has agreed to buy warehouse spurs unit. international paper says once the deal is done, annual cost savings will be $175 billion. that is your bloomberg business flash for this hour. delta airline ceo ed bastian officially becomes ceo of the carrier today. they discussed the state of the industry and delta's relationship in washington. ed: washington is really important. we face a lot of challenges on the international s

mark: live from london, i am mark barton. an close on bloomberg markets. ♪ mark: we are going to take you from new york to london in the next hour. here is what we're watching today. global stocks are the highest close in three weeks as havens like gold fall. will it hold its performance after fed chair janet yellen speaks later? shery: fell short of more aggressive language suggested by japan. we have a wrapup. we are talking to one of the most high-profile throw brexit economists in the u.k..

mark: i am mark barton. ng the european close on bloomberg markets. ♪ mark: we are going to take you from new york to london to milan. this is what we are watching today. commodities on the move. and brent crosses $50 a barrel. iron ore rolling to $50 overproduction issues. vonnie: saudi arabia set to probe think currencies products as a new currency code of conduct report is rolled out. it's changing the fx industry under way? mark: the real madrid goes against athletic oh for the league title. we are breaking down the massive lu of europe's biggest football club -- massive value

i'm mark barton you're watching the european close on "bloomberg markets." ♪ mark: we are going to takeou from new york to london next hour. here is what we are watching today. russia is returning to the international bond market. one bank is making it happen. we would give you the latest on the. at. shery: green across the board with tech and financials leading the gains. european shares are also higher thanks to the falling euro. his: mark carney makes final appearance ahead of the eu referendum next month. he says the central bank has been a neutral party and the brexit th -- in the brexit debate. shery: let's head to the markets desk julie hyman has the latest on the rally. julie: it's been gaining steam with all three averages at highs for the session. the nasdaq leading gains. as i mentioned earlier, we are pending this rally on the changing perception of what the fed is going to do in terms of raising rates. we've not seen news since yesterday on that front. it is not only a steep rally, but a broad-based rally. that means the s&p 500 is now in the green for the month. ifay may s

oliver: i know mark barton likes line charts.e here, we will look at flattening your curve -- yield curve. this is a spread between the 10 year and the two year treasury bond. i think people know about this, this spread has gone real tight. it has been that way for a while. particularly this year as investors push out for yields. in terms of the duration risk, what happens if you are a bondholder and interest rates rise, want to look at interest-rate risk from a stop respective. line here is the chance of a june rate hike based on fed funds futures. this is what happens when you have a spread that is so tight and people are so banking on this idea that the fed is not going to go in june, we have some comments from fed speakers yesterday and the chance of a hike suits up. it has got to the point were any. signal from the fed's pre-sharp. what you had in the start. -- the stock market is high valuations for defensive end you'll roxy's, consumer -- yield proxies, and consumer staples. , moreprepared for that volatility coming forwar

mark: i am mark barton. you are watching the european close on bloomberg markets. ♪ mark: we are going to take you from new york to london to milan. this is what we are watching today. commodities on the move. and brent crosses $50 a barrel. iron ore rolling to $50 overproduction issues. vonnie: saudi arabia set to probe think currencies products as a new currency code of conduct report is rolled out. it's changing the fx industry under way? mark: the real madrid goes against athletic oh for the league title. we are breaking down the massive lu of europe's biggest football ofb -- massive value europe's biggest football club. vonnie: the latest, julie? after the two-day rally we have seen, it is not unusual after the activity we have seen for stocks to take a breather. as mark sebastian, an options trader we talked to yesterday, pointed out, now we are getting into the holiday weekend. people have put on their bets. for theere have left long weekend. drivers are in the red, but not by much. the dow's losses wi

i am mark barton in london and you are watching the european close on "bloomberg markets." going to take you from new york to london to california in the next half hour. cbs earnings results beat forecast inks to live events like the grammys and the super bowl. we are going to hear from leslie to what the future holds for the $25 billion corporation. in on shell is joining recording first quarter profits that beat first-quarter estimates. the majorst over for oil producer? the clock is ticking on the u.k. referendum vote. is going to push for the u.k. to stay in the eu. we are to bring you that live.

let's get straight to the bloomberg first word news with mark barton. rk: chinese manufacturing flip today. underscoring pockets of weakness in an economy. 49.4%. fell to australia's central bank cut its its market just rates to a record low. the unexpected move -- the aussie dollar weakens on the move. its bad loan charges surging, profits fell from $7.1 billion earlier. -- -- badr bad loans loans --. net income fell to $707 million. that fell short of the 735 million frank. chief executive told bloomberg uncertainty as well as global market volatility led to more pronounced risk aversion. we are seeing a very challenging environment. i think this cocktail of macro issues, geopolitical issues are coming on and we are going to see soon brexit. we are seeing distillation coming from the u.s. just seeing the escalation coming from the u.s.. volatility, it is a paralyzing volatility. marco b.n.p. paribas posted -- mark: b.n.p. paribas posted its -- a slump in trading revenue. it rose to 8.1 billion euros. the new cfo told us the market environment was unfav

i am mark barton in london. betty: this is the european let's talk chocolate. rk: shares her story today on the london trading debut. thestock rose 33% on investment target. is $322e of the country million. 33%. the jew expect that? did you underprice it -- did you expect that? did you underprice it? in the morning i am going up to our chocolate factory. i am getting back to basics. that's we're trying to focus. it's a nice warm welcome. betty: did you leave some money on the table? intention, it still to remain as major shareholders. we have a potential equity stake in that respect. we are line the new investments. we are happy. mark: what other assets do you have? i was reading about your chocolate bars. he raised 7 million pounds. how do they work? a box of chocolate as interest payments? are not going to cash out or anything like that we have a phenomenal loyalty rate. upon holders are plowing back their investments each year. they seem to be very happy with it. goodll put your money to use inside the company. we will pay you a return in chocolate. mark: wha

mark: i am mark barton.atching the european close of bloomberg markets. >> we are going to take you from new york to london to measure it in the next hour. here is what we're watching today. areencies around the globe having another wild day as central moves continue to have an impact on the dollar, the yen, and now the aussie dollar is in focus. we will break down all of the movement in this market. >> after the bank missed earnings forecast, the ceo warning of paralyzing volatility impacting the markets. our other european banks in the same boat? >> it is one of the biggest upsets in sports ever. the first premier league title. how does a team get to the top spot, and how much money will this upset make when all is said and done?

and i am mark barton.u york you take you from new to london to xeric in the next hour. here's what we are watching today. still making details on what could be the biggest german from monsanto, raises concerns. the company may be stretching its finances. shery: the final countdown until the u.k. votes to stay or leave the european union. supporters and the opposition on the brexit are going all out. can the threat of economic instability sway the public? turning to an interesting debates out of switzerland, where the government is considering paying each of its citizens two point $5,000 a

mark barton. ♪ betty: we will take you from new york to london in the next hour.ome of the world passes top bonding investors are saying, do not count the fed out. monitor among those arguing the u.s. central bank is still on course to raise rates here. saudi arabia gets a new oil chief. producing crude at near record levels to defend its market per --while -- it sans production by 40%. betty: a closer look at donald trump's powerful son-in-law. what washington and wall street wants to know about him. let's head straight to the markets. julie hyman has the latest in the markets pushed around by earnings and oil. effect to lastve week's is declined. we are seeing a little bit of a recovery or this morning. not a huge one by any means but the nasdaq is leading the gains up .4%. the push and pull that that he was talking about is simplified if you look at imap on bloomberg, the groups on the move. for an upmarket, you have significant areas of red, including energy, because oil has been all over the map here we will look at that in a second as well as materials today

amk: live from london, i mark barton. this is the european close on bloomberg markets. ♪ we are taking you from new york to london to frankfurt in the next hour and we are going to kick off a major week for the global economy. the ecb meets tomorrow, opec begins its meeting in vienna on thursday. we will cover what's on the agenda. stocksemerging-market are back, rising to its highest levels in three weeks. filledrency gap has been by men at the biggest banks but now women are taking the reins. what is causing the shift? 30 minutes away from the end of the tuesday session. the function that tells you everything on one screen, this is the equity column and there is a lot of red, stocks are falling in europe the first day in six, currencies, cbs's and commodities, everything in one shot, what more could you need? i will move it on because there was a lot going on, mostly for volkswagen shareholders, shares falling as 4.7%, the most since february. market operating margin a .3%, for shorter than the medium-term 6% -- far sho

i mark barton in london. vonnie: and i'm vonnie quinn in new york.er ryan -- paul ryan and donald trump met behind closed doors. according to rnc chairman reince priebus, the meeting went great toward party unity. let's go to capitol hill where eric watson joins us. tweetingiebus is positive things, but he brokered the talks in his interest to say that they have done well. any word from paul ryan are donald trump? >> we have not heard from the principles in the meeting. there was a meeting between priebus and ryan and trump and other leaders including kevin mccarthy. that second meeting has just ended within the last few moments and we are a clear principles to come out and give us a readout. predict there won't be a major endorsement from paul ryan coming out of this meeting, however, priebus' tweet said it is a step to reunifying the party. laid out some policy ideas he thinks is essential to the republican platform and we are eagerly seeing how trump reacts to that presentation. vonnie: we will be came from paul ryan in the next hour at 11:30. do

mark: i am mark barton in london with betty liu in new york. look at the biggest business stories in the news right now. kroger is holding a national hiring event to fill open jobs for its supermarkets chains including whelps and food 4 less. many are for part-time associates who bagged groceries, es, or ring up items at the cash register. the jobs are permanent. investment research for $12 million in cash to offer data analytics to institutional corporate private equity and venture capital clients. leucadia andjoin leave the operation. the deal is expected to close at the end of this month. amazon.com will let people post earns to its website and money from advertising and royalty. it puts it in more direct competition with google's youtube. it art he has its own original productions to compete with netflix. that is your latest bloomberg business flash. betty: we will talk about disney. cashing in big on "captain america: civil war."it brought in in its dumbest at box office debut, just ahead of disney's second-quarter earnings after the bell.

i mark barton. this is the european close on bloomberg markets. the conference in brussels include commuters sharing car rides together through services like uber pool. but this is already up and running in the u.s. and china and has to come the -- has to compete with a robust transportation system in europe. a bloomberg view columnist wrote about this. are we what it to the public transportation system -- are we wedded to the public transportation system in europe? we are, much more than the people in the united states. brussels carries as many san franciscothe bay area transit system, even of san francisco of is seven times that of brussels. partyities in europe are well served by public transport, unlike american cities. the only exception in the u.s. is new york, which is an outlier. most people there use public transport. europeans if preferred car sharing, do their routes match very well? european cities are unlike u.s. ones because most of them are not planned on the grid and they don't even have defined business areas. lots ofe are going t

mark: live from london, i am mark barton. ng the european close on "bloomberg markets." ♪ mark: we are going to take you from new york to london in the next hour. here is what we are watching today. voters in a brexit as the u.k. decide on a new mayor among other things. in ireland, his second term as prime minister. we will break down the outlook in europe. vonnie: labor markets slowed in april. payroll data coming in weaker than expected with 150,000 jobs added. how will the federal reserve read the report? mark: area finance ministers will hold an emergency meeting on monday to discuss greece. we are speaking to the largest private holder of greek government bonds.

. ♪ mark: live from london and new york, i am mark barton. betty: and i am betty liu. the european close on "bloomberg markets." mark: time for a look at the biggest is the stories in the news right now. says the brexit boat has already harmed the british economy. in a slowdown in domestic activity according to credit suisse come in decisions being .elayed until after the vote sales of thomas cook plunged to their lowest level in three season down travel 5%. -- in three years. bookings for the summer travel season down 5%. causing a record trading loss of $5.5 billion -- now, he is striking back. socs suing stock jet and -- gen, saying the bank knew of his trading activities. breakthrougharent in the financial talks with puerto rico. you was house republicans -- u.s. house of a look at the democrats have reached a compromise, a positive step in the right direction. paul ryan also just made some comments as well. protectsrtisan bill u.s. taxpayers and has no damaging precedents when it comes to negotiating with bondholders. , how did they finally come together because th

i am mark barton in london. betty: i am betty liu in new york. this is the european close. mark: spain's king phil ebay has called for elections on june 26 to break a political stalemate. the prime minister -- it ended in a deadlock in december. parliament is now the most fragmented in history and it has not been able to agree on a coalition government. joining us now, been from the jury. who is to say the election in june won't produce another deadlock? a it probably will produce result which is very similar to what we saw in december. the polls suggest the people's party is likely to be, have the most see and yet be a long way from a majority. that is going to throw the emphasis on the party to negotiate some kind of governing majority. there is no reason to say it will be any easier than it has proved this time around. we could be in for an extended period of uncertainty. since the december election, that doesn't seem to have dented the economy which jumped .8% in the last quarter. maybe no government is a good thing? >> i am not sure we would go that far, but the economy

i am mark barton in london and you are watching the european close on "bloomberg markets." mark: we are going to take you from new york to london to california in the next half hour. cbs earnings results beat forecast inks to live events like the grammys and the super bowl. we are going to hear from leslie to what the future holds for the $25 billion corporation. in on shell is joining recording first quarter profits that beat first-quarter estimates. the majorst over for oil producer? the clock is ticking on the u.k. referendum vote. is going to push for the u.k. to stay in the eu. we are to bring you that live. in the meantime, as mark just mentioned, cbs earnings blue plastic dust blew past wall street estimates and climbed more than 40%. the super bowl and grammy awards played a large part. even ignoring football, ad sales were up 12%. david weston his here joined by ceo les moonves. david: welcome to bloomberg. glad to have you today, . we have seen advertising market cycle up and down. is there something more fundamental going on? s: a lot of money potentially move to

i'm mark barton you're watching the european close on "bloomberg markets." ♪ mark: we are going to takew york to london next hour. here is what we are watching today. russia is returning to the international bond market. one bank is making it happen. we would give you the latest on the. at. shery: green across the board with tech and financials leading the gains. european shares are also higher thanks to the falling euro. his: mark carney makes final appearance ahead of the eu referendum next month. he says the central bank has been a neutral party and the brexit th

jon: coming up, it is "bloomberg markets" with mark barton. what is on the show? rading is going to answer the question -- we have had a year since the s&p 500 reached that record high -- does that signal a bear market or are we about to enter a period of consolidation? the chief executive of richard ellis, we are going to look at the commercial market, the commercial property market, with her. i will be asking her whether international property investors are put off at head of the u.k. referendum. we will also be speaking to the of bernard arnaud. he is the man behind lvmh. his son antwaun will speak to us willsively -- antoine speak to us exclusively. some think he is headed for the top job. you are already there. you are toorton, much. you are too much. what is the story you are seeing, mark? mark: shares are down. look at burberry. look at the other luxury retailers. look at lvmh. it is the slowdown in asian spending. it is a luxury-wide phenomenon. burberry does not have enough japanese stores. many of the chinese shopping in hong kong and moved to japan. wris

i am mark barton, a quick look at the market -- at the markets.e are going to see a second consecutive day of gains if things stay the same for the next seven hours. the stoxx europe 600 is a by 1% today. the mining index is the big performing industry group after slumping yesterday. credit suisse big jump today. we had a loss, not quite as bad as forecasts and brent crude is up today after reporting yesterday up .6%. here is nejra cehic. nejra: china's consumer prices continue to rise at a healthy pace in april, but still a bit low the government's target rate . 2.3% was driven by prices given the pboc a reason to hold off on another rate reduction. easing ing to an factory gain inflation. be his topverty will priority as he claims of victory in the filipina -- in the philippines presidential election. a zero tolerance approach to crime and corruption. a string of on guarded -- unguarded comments. as ills political system has fallen even further as -- an old that bodies vote to impeach the president. the announcement by the senate head seemed to

let's get straight to mark barton with your asset check. ldman sachs says the dollar slump is over. they are not always right when it comes to currency forecasting. they close the dollar position against an equally weighted basket of yen -- in february. they say the slump is over. rallyay the post payrolls shows that expectations for growth and fed reserve increases in interest rates have gone too far too fast, positioning the currency for a rebound. and estimates the dollar will rise 15% during the next two years as monetary policy normalizes. this is the bloomer dollar -- the bloomberg dollar spot index. that is the six month chart. falling to a one year low, almost a week or so ago. since then, it has rebounded for five days out of seven. busy not only talking about the dollar. it has also talked about the price of gold, raising its forecast. but scaling back expectations of rate hikes over the next year, but it does remain bearish on the metal's prospects. it has increased its 3, 6 and 12 month forecast. $100050 to respective. appearhe u

. ♪ mark: i am mark barton.r a look at some of the biggest business stories in the news now. metlife says it is looking to exit most of it had fun -- hedge fund portfolio. $4.2 billion of 1.8 billion holdings. it may take a couple of years. it was cut by about $600 million in 2016. purging a board to negotiate on the consulate -- unsolicited $9.3 billion takeover offer. overwhelming support for a deal. sergio marchionne expects the company's new partnership with google to speed up the commercializing of self driving vehicles. here years earlier today. anything in collaboration with google will by definition expedite the process. the combination is bound -- to develop out 100,000 prototypes. hybrid powered. vonnie: first, candy bars and hot chocolate, too. that is medicine that would go down well, i am sure. you can read all about it in the latest bloomberg businessweek. nestle and medicine? does it come in chocolate form? >> a good question. we do not know yet. making things that taste good that we want to eat,

>> uncovering for mark barton. -- i am covering for mark barton. david: -- betty: we take you from new york to london to marking. becomes the latest company to miss sales targets and cut their forecast. april consumer spending, the u.s. jumps the most in the year. what exactly is going on here? the euro area economy grows slightly less than estimated in the first quarter. germany leaving the regionwide greek economy shrinks the most. betty: apple is placing a bet on uber's big rival in china. with a two-year low, is it anything to get investors excited about? where apple is putting their money, finally. let's head to the markets desk where julie hyman has a look at where investors are putting their money. much and stocks. after we got retail sales numbers earlier, we're just getting university of michigan consumer's been a, better than estimated like the retail sales were better than estimated, coming in at 95.8. expectations better than estimated, 87.5. when you look at the retail sales number, that defied expectations as well. even if you back ou

mark: i am mark barton.nie: time for a look at some of the biggest is the stories in the news right now. amazon taking another step toward building its own cargo airline. and by the smudges a 30% stake -- it will operate 20 cargo planes for amazon. in march, amazon said at least -- oeing 77 traders ford is investing 182 million dollars in a new cloud computing startup, pivotal software. a venture of cfp and vmware. for trying to boost itself while it prepares for a shift to electric and self driving cars. the disney ceo had a rare official meeting with the chinese president today a couple of months before the opening of disney's billion dollars theme park. in china's financial hub of shanghai. the comfy's first-team park in mainland china will open june 16. that is your bloomberg business flash for the hour. unrest in turkey may be pushing investors away, but our next guest is jumping right in. chief investment officer joins us now. , 85%eign high-yield bond invested in emerging markets, the most recent tran

i am mark barton. francine is at covering london city week. she will be hosting a panel on the economy with vito constantia . and charles evans. you can see that here live on bloomberg just after 10:00 a.m.. let's check in on the markets after two weeks of decline, stocks of open higher helped in part by the stronger oil price. up by onelondon are third of 1%. the pound is lower against the dollar. growth forecast will be published on thursday as with the latest u.k. interest-rate decision. is up by 0.9% at $45.78. let's hit the latest bloomberg first word news. is here.ic >> crude prices are on the rise after wildfires in canada knocked out more than $1 million a day of production. the company is's biggest energy and have declared force majeure on supplies from the region. that's a provision protecting companies from contracts a go unfulfilled for reasons beyond their control. german factory orders picked up in march a strong local trade helped upset a low end domestic demand. orders rose 1.9%. the reading which is typically volatile compares

mark: i am mark barton. we are 18 minutes away from the european close. shery: thanks.ime for the bloomberg is flash. in the lifeakeover sciences technology business. ei whichreed to buy as makes electric mice -- sei which makes electro microscopes. tot represents a 14% premium sei's closing price yesterday. the city's newest condo towers are opening with many owners heading for the exit in miami. that a thirdimated of the units in some high-rises are back on the market. that is your bloomberg business flash for this hour. the center for economic performance at the london school of economics has issued a critique on brexit. it breaks down the arguments on brexit which includes that the u.k. will see a 4% u.k. gdp gain. mark: patrick minford is a professor of applied economics at cardiff university. thank you for joining us. if i could start with this report. the authors of the report have come out with the statement like this. minford's liverpool model was predicting enormous job losses from the introduction of the minimum wage in 1999, multiple reports have shown there

i mark barton. >> time for the bloomberg business flash.ook at the biggest business stories in the news right now. not consent it will to the repricing of stock options without shareholder consent. options givendes to employees by jack dorsey last fall as part of it effort to retrain -- retain talent. third quarter sales under a demand increase -- have billionand dollars in new orders in the second quarter. that is up 52% in the prior three months. that is the bloomberg business flash. mark: we are also watching shares of yahoo! today falling. the wall street journal reporting that bids for core assets may fall short. verizon and other bidders are expected to offer in the range to $3 billion. it is still early in the hitting process. news take spoke about the on surveillance. >> i don't think there is any surprises to the fact that buyers are prepared to pay less than the sellers want. the fact this is leaking into the press is not an enormous surprise either. >> i understand this is a delicate point. is a just and that is adjustment to a b

mark: and i mark barton. "european close" on "bloomberg markets." ♪ mark: we are going to take you .o new york to milan signs of strain from the italian numbng sector as investors a new ipo. will the rescue funds to be enough to keep the industry going at go vonnie: it is a major energy deal gone bust. how investment bankers have called off the proposed merger. what is it signal to the rest of the oil markets? mark: ferrari, the chief executive is leaving. what is ahead for the luxury carmaker? we are 90 minutes into the training day. let's head to the market that's

mark: i am mark barton. this is the european close.ry: sign for the bloomberg business flash, a look at the biggest business stories in the news right now. general electric will take part in up to $3 billion of investment in saudi arabia that don't have anything to do with oil. part of the founding plan to diversify the economy. ge will invest in water, aviation, digital, and other projects by 2020. the company will double its saudi workforce to 4000 people. has gotten in order for 100 jets for vietnam. billion, than $11 although airlines generally give discounts on big orders, the agreement was times to coincide with president obama's visit to vietnam. the board of tribune publishing has rejected the latest takeover offer. the publisher of the chicago tribune and the los angeles times call the bid clearly inadequate trade they are offering about $864 million, including debt. meanwhile, a billionaire has taken a 13% stake in tribune. that's your business flash for this hour. if you weeks ago, the market was weighing the risk of a u.s.

. ♪ ♪ by mark barton. sherry: you are watching "bloomberg markets."ook at some of the biggest business stories in the news right now. ies arenology compan considering bids for renovation. it would put them against cedars led by french drugmakers. with advisersng as they evaluate whether to pursue a bit for a cancer therapy company. no formal sales talks are underway. citigroup will pay $425 million to resolve claims that the bank attempted to manipulate global benchmarks for interest rates on a multiple time -- on multiple times from 2007 to 2012. they announced two settlements. u.s. thated the the other involved a london benchmark. the euro disney group is going on trial in france. the company accused of publishing and allegedly discriminatory job at 10 years ago -- job ad 10 years ago. is said they should have european citizens -- being european citizens. they tonight any discriminatory intent. anyhey denied discriminatory intent. julie has a look at what is moving. julie: we have a lot of big headlines intact, top by hewlett-packard enterprises. th

let's head over to mark barton for the asset check. little low since the two-day gain in february. these are the groups on the stock exchange 600. ought as, industrial goods, construction leading the gainers, banks, financial services and media declining today but a big two-day gain. biggest rally in three months. crude is past $50 a barrel for the first time in six months. this is the 12 months. the yellow dotted line is the 50 barrel level. u.s. stockpiles accelerating after a rebound of a 12-year low. global disruptions trimming the market and u.s. industry with 4 million with an expected drop of two million barrels. gold is rising today after a six-day drop. this is the seven-day performance of gold in that period and has fallen by 4%. a rebound in gold has come cropper as the dollar strengthens. u.b.s. says gold could a take a tumble. the federal reserve opts for two rate increases before the end of the year. and according to ubf, some people will get caught on the wrong side, goal will roll over and fall back to 1,150 and be read

it's mark barton versus matt miller. chart wars. mark barton, you are first.ary after my good buddy matthew miller. cigarettes or booze? today we had results from imperial brand and ab inbev. which sector has fared the best since march 2009? spirits andncludes beer and soft drinks. it has risen by 194%. we need a benchmark. i have chosen the s&p 500. it has outperformed the beverages index. the best performer is the msci world tobacco index. 217%. but wait. on an individual basis out of cigarettes and booze, which company has spared the best since march 2009? constellation brands, 1141%. the miller quandary has been answered. matt: he knows darn well that i do not smoke cigarettes. i have taken two of the biggest hedge fund etf's that are trading. this is almost $100 billion in market cap. this is about $85 billion in market cap. this is steve schwarzman's blackstone. they have far underperformed these two hedge funds. none of the three is doing well. david: it is spelled without a t. megan: it is an easy call who is winning today. matt: i will change that for

mark: i am mark barton. you are watching the european close on bloomberg markets. we are going to take you from london, from brazil and washington in the next hour. here is what we are watching -- central bank decisions out of denmark, norway, and the u.k. today. how are monetary policy decisions dealing with the challenge of a slowing euro area economy, and the upcoming brexit vote? vonnie: donald trump and speaker paul ryan met face-to-face this morning, and the meeting went "great. will they" did on the same page? -- will they get on the same page? a new government set to take command of latin america's largest economy. fact, on brazil, we have a new finance minister already. it is 90 minutes into the trading day in the u.s.. let's head to the markets desk were julie hyman has the latest. -- whenell, when list we last talked an hour ago, things started to turn down. that has continued with the nasdaq waiting the decline can we have a selloff in technology leading the decline there. tech is the biggest drag on the major averages. health care also down. each down

let's get to mark barton, who has the market open. good morning. mark: a small gain in london.e playing catch up after the bank holiday yesterday. the other 1/5 of 1%; markets are slowly opening. the cac40 is slightly lower, dax a little higher. the big, macro story today came out of australia, the central bank surprising, cutting interest rates to a record low of 1.75%. it's trying to counter this emergence of disinflation in the country that has swept not only australia but the developing world as well. rba governor glenn stevens cutting the benchmark by 25 basis points. it was predicted by 12 out of 27 economists in the survey. last week we saw inflation data -- or should i say deflation -- in the consumer price index of the weakest and data on record for core inflation. that spurred today's move. all these currencies are rising against the australian dollar today, which has had a good year against its major peers. every major currency is rising. ubsday today for banks; saying first-quarter profits fell by 64%, missing analyst estimates. all divisions reporting a drop in ear

that's had to the bloomberg west mark barton. the big move in china was the beginning of the reference rate. the reference rate was lower 6.5 693 point dollar -- per dollar. we have this research on dollar that the fed is going to raise rates. we have the strategy the pboc has pursued in china which is keep the rate steady against the dollar with depreciation against other major currencies. that strategy is coming under pressure with the resurgence of the dollar. this is the yuan in the past 12 months. the fixing is lower than the levels reached in the january turmoil. the market rate is still .5% stronger than in january. 6.56, that is the level in january. that is the big depreciation that happened in august last year when we were at 6.20. this year we have had a fairly steady rate since the turbulence at the start of this year. -- keepand i on events an eye on events in china, and greece with regard to the creditors, that have reached an agreement to allow the release of billions of euros in aid and easing the debt mounting. fi

let's head to the bloomberg with mark barton. mark: luxury goods companies are in the fray again.rim news continues. richemont forecasted a difficult first half after sales plunged 18% in april. it reported full-year earnings that missed estimates, dealing a further blow to the industry. the company has been struggling with a strong swiss franc. it is cutting almost 100 jobs in its swiss watchmaking operations. richemont is also affected by a slowdown in tourism in europe. paris terror attacks in november, a trend that some may extend after the bombings in brussels in march. richemont is bottom of the pile, down by 32%. burberry, 26% lower. the other three are rising, christian dior, lvmh, hermes. you started with the fed, francine, so i can't get away with it. it is having an impact on the currency market, talk that the fed could raise interest rate in june. it is boosting the dollar against the yen for the third consecutive week, telling us what sort of winning run the yen has enjoyed. this is dollar-yen in the last 15 days. it has risen by 3.5%. we had governor kuroda reiterati

let's head to the bloomberg with mark barton for your asset check. stocks in europe rising for the first day in five, longest losing run since the end of march. thought week kickoff with earnings from bt group. profit beating expectations thanks to its acquisition of mobile operator ee in january. it grounds out bt's consumer business. a growing portfolio of entertainment. that is a big industry right now with the likes of sky, which is adding its own telephone services as well. bt shares are up by 3.25% today. it has been a busy couple of weeks for the oil industry. sol reporting profit that beat estimates. the chemicals division compensating for low oil prices. this company is cutting staff, seeking to divest assets to whether the slump in crude. ol have been made worse by an acquisition is made in may, of talisman, which burdened it with debts and extra assets to offload. repsol in february announced it will slash its dividend. these are the major oil companies in 2016. total, bp, and eni are up. the best are up by between 10 and 12%. all the oil m

i am mark barton. a quick check on the mark -- on the market.onday here in the u k, the .25%, still down by on track for a weekly gain. the third monthly gain as well. that is the most since march 2015. index isberg spot marginally higher today. this month it has risen the most since september the 14, up by up by- september 2014, 3.6%. gold losing streak coming to an end. .t is a nine day losing streak longest streak in 14 months. still the biggest drop since november. the yield on the german tenure is up by a basis point today. we are awaiting the big cpi unemployment data out of the eurozone. in -- eurozone and hopefully 59 minutes. -- in hopefully 59 minutes. nejra: germany -- german unemployment decreased -- the number of people out of work fell by 11,000 to 2.69 5 million in may. the survey in the bloomberg was for a decline. volkswagen shares are down as the carmaker says it has seen a revenue down by as much as 5%. the company reported a 3.4% rise in the first quarter operating profit. it is the first time the carmaker has not set aside b

mark barton versus abigail doolittle.igit returns in the hong kong index. rebounded 11%has since february. turnover still at a low level, implying no momentum to push this market higher. interest as art percentage of turnover? short interest as a percentage of transactions right now at the highest level since 1998. , 2014, look at what the blue line did after those occasions. an average rebound of 19%. the hang seng is up 11% this february. the worst-performing stock market in the world in the last 12 months. is it time to buy the hang seng percentage of short turnover of saying it isr time to buy the hang seng? chart, mark.t i thought it was interesting to take a look at whether this historic bull run could be coming to an end. 500 -- the vix is added to his store close. lows.its historic around the great crash of 2008. the timing here is tough. that aows may suggest big selloff in the s&p 500 could be ahead in the next 6-12 months. mark, you know i love you, but if you look at your chart carefully, that blue line -- you

let's head to mark barton with your asset check. mark: trading revenue falling.k began a reorganization to streamline its capital structure. these are the three big french lenders in 2016. 20% -- it agricole down down 20%, alle three in the negative. cementld's biggest company reported earnings that missed estimates by lower prices in india and a slowdown in brazil and russia. the share price has plunged 40%. delays in assets, delays in high-profile executive departures -- not delays, actual departures have eroded confidence in the tie up. home -- this is our current probability for the u.k.. this is the december meeting. right now, the probability of a hike is 1.2%. a week ago it was 3.4%. .ou get the just three months ago it was 75%. the probability of a cut is 37%. six months ago, it was 4%. it is more likely the bank of england will cut rates in december than raise rates. today will they absolutely fascinating and i have drawn on this chart to show the key metrics of the u.k. economy ahead of the boe inflation report. inflation is at .5%. last year we were pr

jonathan: it goes to mark barton. like investors have got it figured out but it keeps driving lower. it is the market dynamics that i find fascinating. to see awould like chart with the similar u.s. stocks. i vote for julie. ♪ hii'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now to receive your free dvd and booklet with no obligation. it answers questions like... how a reverse mortgage works, how much you qualify for, the ways to receive your money... and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home and here's the best part... you still own your home. take control of your retirement today! jonathan: target becomes the latest in a string of retailers

i'm mark barton. francine will be bringing you an jesusive with just daily -- staley.e got a big show lined up for you today. less than a month until the u.k. votes on the membership, we will bring you to top names on the opposite sides for the defense secretary, liam fox takes on the founder and chairman of finsbury pr, roland rudd. that will be in a half hour here on the pulse. let's check in on the markets. stocks are rising continuing a trend that started last monday. it gains one day and losses the next. stoxx europe 600 up by .6%. the dollar is up against the yen today. interesting comments -- he said a two day move of five yen would be considered one way lopsided giving an indication what it would take for the boj to intervene for the first time since 2011. in the commodity market, brent crude is down for the fifth consecutive day. that is the longest stretch since genuine 13th. -- since january 13. producers appear to restart operations. the german 10 year bond, the economy in germany jumped by .7% in the first quarter takes to a surge in investments. let's get

i'm mark barton. just getting some pmi data on euroacturing for the area and the figure is 51.7, a slight uptick from the earlier 51.5. 51.7 showing the manufacturing industry is expanding. any number above 50 shows expansion. economycourse is an that grew 0.6% in the last quarter. still, inflation is a bit of an issue. let's get to the bloomberg first word news desk. nejra: halliburton and baker hughes have called off their $28 billion merger, citing challenging regulatory conditions. the proposed union between the oil service firms admit antitrust resistance in the u.s. and europe. halliburton must pay a termination fee of $3.5 billion. puerto rico will default on a $420 million bond payment today, escalating the biggest crisis ever in the $3.7 trillion municipal debt market. the governor warned the itsrnment would miss obligation, saying the commonwealth needs to focus on providing essential services. investors hold $900 million of its debt. creditors would accept a potential haircut according to t