alix: michael mckee and neill nuttall will be sticking with us.will take a look at fertility -- we would be looking at volatility. the volatility is picking up. what kind of opportunities can we see? this is bloomberg. ♪ ? this is bloomberg. ♪ alix: will crack's in emerging markets continue to grow? investors are weighing in. >> we see strong earnings growth for em equities. better valuations. >> i think emerging markets seem to be contained to argentina and perhaps turkey. >> globalization of disinflation is spreading across in emerging markets. turkey and argentina are the exceptions. crack the most important way that you are watching -- >> it depends on where you are in the world. and what central policy will be. we know that fed rates will go higher. we think em equities could do 30% earnings growth this year. >> interest rates in the u.s. are going up. >> the whole idea of having a global portfolio is to blend all of this together and deal with cality.lic >> i think the dollar will strengthen against the emerging markets. they will see weakne

here's michael mckee tweeting out a brilliant thread of tweets just one.s it was an astounding and depressing weekend. the president's assertion the u.s. is more respected than ever around the world is 180 degrees from the truth. i thought that was quite a statement from our michael mckee. tom, this is why this chart matters. i'm looking at turkish lira. turkish lira advanced after a jump in inflation. a lot of people in the markets are speculating that the central bank will raise rates. i lumped everything in this chart. it is looking at the lira and overnight lending rate. i'll push it out on social media. we are on the lookout for turkey. tom: very good. right now, interesting weekend to say the least. the president, well it is going to be a showdown at the g8, the g six, maybe it is the g7. china says all commitments are off if he imposes tariffs. ence kudlow says there are others to blame. >> don't blame trump. blame china. blame europe. blame nafta. blame those who don't want reciprocal trading. to severalsponding decades of trade abuses here. tom: l

we are joined by michael mckee, the bloomberg nation national -- international and policy correspondent. tariffs and of the trade ban is official. michael: $34 billion worth. there are 284 items that are new to the list and they will have to go through public comment periods. most of these things are intermediate goods, inputs into other manufactured products. so companies in the u.s. are going to have to have a hard time getting the parts to make things that they make, and also companies around the world are going to lose out because they sold a lot of these things to the chinese to be assembled into other things. it is kind of a global problem for everyone. we have not heard from the chinese. they say they are going to retaliate in kind. sometime today, we should get a notification from them. that will put more companies on notice because they will be targeting specific u.s.-made products. legeans are taking a big down today. they have been the last couple of days because they are supposedly on the list, another reason that julie is talking about boeing's on the list, companies like t

youie: michael mckee, thank and for all of your reporting on the g7 meeting in whistler, canada.7 plus maire says the one. fascinating for the perspectives because it seems like all of these people are trying to send messages to president trump but he is not listening. said, fascinating part of the interview when mike asked him whether the u.s. is more respected under donald trump, he does not see the u.s. as being more respected and wants to overcome this trade dispute between the eu and the u.s. interesting little viewpoints on italy. like the question about the probability of italy leaving the eurozone increasing, and bruno le maire said he cannot imagine italy exiting the eurozone, avoiding the question. that is obviously very politically difficult to answer your. vonnie: having the interviews back to back with philip hammond and the french finance minister, bruno le maire, later on hearing from more luminaries, puts into perspective what governments are dealing with and how difficult it is for them to placate electorates and keep them employed, and at the same time, work tog

and michael mckee. i love that title. michael does not have as interesting a title. to stay on this is summit. back to singapore. the expectations for both sides? it is notor realists, going toduce a lot of bug good pictures. if they continue talking and bring that the talks to level in which something can be done, it is good news. if they walk out, it will be bad news for the world and the markets. it is very unpredictable. the president has admitted, they will not reach a deal in a day to denuclearize the korean peninsula. a very complicated issue and difficult. maybe that the low retention. david: it seems like the president is setting up the world to be happily surprised. going into g7, negative, negative. into was looking to this the g7 right from the start. how this turns out with trump' demeanor, anybody can guess but this is a huge win if he can pull it off. as a closer, this is the deal you want to close. it goes on the front page. manare set up for "times" of the year if you pull off a deal like this which has never been approached. >> i suspect the success

. -- michael mckee in his here. and the tariffs. we will put up a chart that shows the extent to which we are importing chinese goods. we have the white bars going across commodity to $500 billion. the red line is $50 billion, to show how little that is. , what will itriff do? >> it will not do much in the macro economy, but everybody wants to know, which products is donald trump actually targeting, because in those areas you will see an effect. if he targets things that were on the initial list, 1300 products the u.s. is choosing from, a lot of them are intermediate inputs. the peterson institute said about 85% where things that go into things that are manufactured, so the pain could be broadly felt. that is even without china imposing their own retaliatory tariffs. the chinese foreign ministry today said, yes, we will strike back. alix: it was a justin carr because and commodities, oil getting hit, but it is actually soft commodities like soybeans -- >> you do know to be a soybean farmer. alix: no, you do not. blue, soybeans. feat

joining us is burned mckinney -- burns mckinney and michael mckee .happened, mike. in the chairman summary they the treasuryuct secretary to go back and tell president trump of our unanimous disappointment with what's going on. what kind of pressure is on president trump as he heads to quebec? michael: the leaders are going to get together and deliver the same message to him. you need to roll back tariffs and stop taking a trade wars. you need to understand how global trade works and how it benefits people. we can talk about dealing with some of our problems but none of us are going to negotiate with a gun to our heads so you need to do something. he has backed down in trade confrontations up to this point. does he do so now or does he push forward? david: we have a speci h china. june 15, when it will be tariffs o. we have canada, mexico, nafta, the eu, china. michael: china told wilbur ross if you go ahead with these tariffs all bets are off. we will stop working with you in trying to solve the trade problem you are complaining about. does he risk i

michael mckee, david, thank you. tune into bloomberg, our special report, the fed decides. we have a great lineup. david: there is news breaking right now about stryker. they have id at not in talks with boston scientifi for a merger. this was reported that they were considering putting the two companies through a huge merger. what is interesting, the analysts came down on the reports equally divided. either saying it would be great, transformational, others saying there are no synergies, no overlap. we are not sure why two plus two equals five. trade coming in right before the potential deal was announced? david: exactly right. alix: yesterday we were talking about wall street beat -- somebody got ahead of that. maybe now they are feeling some pain. david: this is bloomberg. ♪ david: president trump returned from his summit with north korea's kim jong-un in singapore. comes next, even as open issuest remain on u.s. trade relations with china, canada, mexico, and europe. we welcome pat toomey, republican of pennsylva

david: thank you, michael mckee. from the g7 finance ministers meeting in whistler, british columbia. shery: again, breaking news on north korea. you are looking at the white house because we expect president trump to meet with .orth korea's kim yong chol he is a former north korean spy, vice chairman of the central committee. he has been in new york speaking to mike pompeo. we heard from the state department on that meeting went well, there was some progress. we are expecting kim yong chol to hand a letter from north korean leader kim jong-il into president trump today. he will arrive anytime. the letter, according to the wall street journal, does not contain any big concessions or threats. we will bring you the latest on that when we get it. this is bloomberg. ♪ >> from new york city, i am jonathan ferro. 30 minutes dedicated to fixed income. this is "bloomberg real yield." coming up, a jobs report leaving the federal reserve on track to deliver more hikes this year. political risk in italy. what is needed most. an

thank you to michael mckee.n scarlet fu for all covers of the fed decision and the news conference after them and how tomorrow -- of chairman powell and noon eastern tomorrow. guests will include bill gross. time for the stock of the hour, shares of restoration hardware are rising after strong earnings. shares higher amid the push and brick-and-mortar luxury markets. joining us with more is taylor riggs. taylor: they are luxury, a luxury furniture maker that wants to differentiate themselves versus on amazon or wayfarer, much more focused on value. share, andngs for about the guidance, it is about future guidance, much higher. up versus eates. breaking the six dollars barrier mark on earnings-per-share. going into differentiate themselves. what is helping them is that is improving margins. so much is a margin story. when you talk about margins, they said we will restrain ourselves from changing low quality sales at the expense of profitability mike so many others in the industry. many others in the industry. a t

julie: we are joined by michael mckee. will they all be in love again, mike? it is hard to look into the future. there is a lot of unpredictability. messythis is a hard relationship breakup. i suspect we will not be in love again until a new president comes into office and makes nice with the allies. it depends on how much damage is done with the possibility of trade wars and how that plays out politically back home. right now, for other members of the g7, it pays politically and economically to be opposed to donald trump. julie: take a step back and talk about what the g7 meeting is for. what does it look like, what do they do while they are there and what are the goals of it? yearel: it depends on the and what the issues are. it is an opportunity for the leaders of the 7 biggest -- not the biggest anymore, but the most influential economies in the world to come together and discuss the issues of the day and talk about things where they might want to have coordination or iron out problems. it is not a place where they come to figure out your is what we are go

his top economic adviser -- adviser spoke to michael mckee in an exclusive interview.are looking for is improve nafta. we are not really looking for a bilateral agreement with the u.s. or canada. that is what we want to we want to have a nafta 2.0. not enough to 0.5 to we want to better operate nafta. that is what we are looking for. he has appointed someone who has been and charged of those negotiations. the thing is -- what we are looking for is to work with the u.s. and canada. michael: you want canada in the agreement? >> of course. i think this is the way nafta was conceived. that was the right way to go. as a block, america as a region, to have a .ompetitiveness i think that is what we should try to keep and modernize and improve. michael: the ministers and has proposed retaliatory sanctions on the end states. does he agree with the sanctions? >> he has said he doesn't want to get into a trade war. starting point. but we also understand the situation. we understand given the imposition of these types on steel and aluminum, something like that had to be necessary.

michael mckee, what can we expect? what happens next?sters are going to have a series of meetings this morning designed around the theme of increasing growth for everyone around the world, inclusive growth, much of the conversation is going to revolve around these trade tariffs the president has put on. the canadian finance minister saying there is no way we can avoid it. expect more fireworks from that. of thestion at the top show, will they be able to come up with a communique? they have struggled with that in the past. now the tariffs are in place what do they say? tradecommitment to fair no longer seems appropriate. there will be some drama over that as well. next week, the meeting of g7 leaders in quebec where donald trump meets the rest of the g7 should be interesting. >> thank you mary much. much.nk you very tune in for mike mckee's interview with the euro group president, philip hammond, and bruno le maire. >> we are going to get more on jobs, and reaction to the report from bill gross. this is bloomberg. ♪ >> this is bloomberg d

i will defer to simon kennedy and michael mckee but we are setting up for one of the most extraordinaryce world war ii. that discussion will begin this afternoon at 2 p.m. shinzo abe on his way to quebec. the president and shinzo abe in the 2:00 hour, worldwide on bloomberg. ♪ ♪ i am in london with tom keene in new york. streak,oday losing large swings in the assets. telling investors to be ready for a crucial discussion on qe next thursday. to bhanu, elsa. call.ionally, 1.18, your does this week change your call? elsa: we have a long euro position. you have to distinguish between what is a short-term up move in euro, make sense, too much pessimism last week on the back of italy. longer-term view which is, more mixed. while i think we will get active discussion in june, ecb does not want to give the italian government a free pass. where heading toward the exit on qe. that does not meet euro-dollar is skyrocketing to 1.30. nejra: how much does this factor into the broader eurozone picture, italian specifically? elsa: italy is a gargantuan problem but more long-term. weather tensions from

again ouragged on michael mckee in terms of economics and really someone who has been in the hallwaysoday, next peso weaker. nafta, is it dead? this whole debate. >> i will go back to the "princess bride." it is mostly dead, at least for 2018. periodwith a comment before it -- they vote on it. tom: is this a victory for canada and mexico because it's mostly dead? >> they would tell you it's not because they wanted agreement. , theexican election mexican candidate who is an overwhelming leader this point has the dust has been characterized as anti-u.s. but is pro-nafta. there may have to be some changes made to the agreement, which also complements this test complicates this. writing ince summers the washington post talks about strategy. do we have a trade strategy in washington? issues,nk we have trade but it's sort of somewhat using a shotgun to shoot a dartboard. some of the shots are on target and some of the shots miss. i am concerned -- we have an integrated north american economy. we export a lot of parts to new mexico -- to mexico. if we were to go further down naftaots of brea

my parents named me kevin michael mckee an, my older brother that was two or three older than me.mom said october. he started calling me tober from pre-k to now i have been called toby. brian: even that story is not true i love it fantastic. toby, tell me in particular, how much easier is life now that you have had success and fame? does that allow you to be more creative or make you sit back and be fat and happy? >> oh, man, i'm a worker like i'm a real crafter of songs. >> where were you last night? >> last night i walked off stage at mid knife pennsylvania creation festival. ainsley: what's the best part of the job? >> best part of the job. i mean, i love that i can travel and do shows but quickly get back to my family. ainsley: how many kids do you have? >> i have five kids. my wife and i have five kids. i have a loly jamaican wife named amanda and she is my heart beat. do you know what i mean? ainsley: you need two more to get to seven. [laughter] >> no, we done, baby. we are done. ainsley: one of the reasons we have the biggest crowd of the year. [cheers and applause] your m