francine: thanks so much, nejra cehic. on to the markets. this is what european equities are doing. seeing a little bit of a rebound. financial markets in general showing signs of stabilizing after being zigzagged this week by a surge in expectation. this is a picture for the ftse, the dax, and the cac 40. i want to show you the price -- i don't know if we have gold, but brent crude at 49. that is also regaining a touch. the yuan headed for a third week of declines against the dollar. this is on the back of dollar strength, unaided speculations the u.s. will raise interest rates. we will get back to the markets and currencies with jane foley in just a second. first, let's update you on the egyptair flight from paris to cairo which disappeared over the mediterranean sea. as a search mission enters its second day, greek authorities have dismissed reports of finding debris from the jet. greg this cruise he is in paris. arexpected, a lot of things contradiction. we don't really have anything concrete. what we know is that debr

nejra?ou got, nejra: last month, we saw european stocks reaching their lowest level in more than two weeks, and today, we are seeing further declines on the stoxx 600. it is bank stocks leading the losses. in particular, italian banks. drop afterthe stoxx the government orchestrated atlanta a fund looks for a share sale. this is amid weak demand. unicredit down 3.5%. it is one of the banks backing atlantic. we are seeing into the sao paulo fall -- into's us and paulo fall. valued at $1.2 billion. deutsche bank also falling today after u.k. regulators faulted in bank for serious lapses efforts to thwart money laundering. this is according to a person with knowledge of the matter. , let methe bloomberg show you currency markets. father-yen unchanged, but they yen still near an 18-month high after it climbed as much as 0.3% earlier. dollar-yen, definitely one we are keeping an eye on. the best performer among g-8 and currencies. what is that doing to stocks? tumbled theopix most in 11 weeks ove

nejra: a private gauge of services dipped slightly in april.he pmi came in at 51.8, down from 52.2 the previous month. said moree meeting, needs to be done. philip low will replace glenn stevens as governor of the reserve bank of australia for a seven-year term. he inherits the post after the central bank eased policy to a record low to cushion the end of a mining investment boom and combat disinflation. he was appointed in february 2012 when stevens described him as an exceptional economist. the u.k. is holding a series of elections today on what has been dubbed super thursday. the london mayor is getting much international attention. there are mayoral races in liverpool. there are also parliamentary by election's and sheffield brightside. global news --global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . francine. francine: turkey's prime minister is expected to step down this month after losing a power struggle with president erdogan.

let's get to the first word with nejra cehic. nejra: thanks. the u.s. economy should be solid enough to merit an interest rate increase this year, and the central bank won't cave to political pressure to refrain from tightening during a presidential election. the san francisco fed william president says so. he says well global threat has created a balancing act, fed officials probably will raise the benchmark interest rate sometime this year. bayer has offered to buy monsanto for about $62 billion. the german company offered $122 per share in an all-cash bid, a 20% premium to their last close in the u.s.. it would create the world's biggest supplier of farm chemicals and genetically modified seed. we'll be speaking later to the bayer ceo. japan's exports fall for a seventh consecutive month in april asked again strengthens. it underscores the mounting pressures for shinzo abe's efforts to revise growth. shipments declined in april from a year earlier, worse than the 9.9% drop estimated. leaving all 23.3%, trade surplus of $7.5 billion. global news, 24 h

nejra: rishaad, thank you.s talk oil and nigerian production has lived to the lowest since 1994. that is the subject of our chart of the hour. manus: nigeria is producing the least and amount of oil since 1994. what we have is a winning streak. bob, check this out. rent both rock both rocking it high. i am calling $50-$60. $60 is the new $50 that is the message from the uae minister. market isiving this that the traders are beginning to capitulate. speculators are reducing their net short positions to the lowest level in 11 months. is $60 the new $50? do you want to be long oil or long stock? i want to bring bob back into the picture. we are up 80% from the lows. from the investment perspective, should i get in here and trade outright or do you think it is time to look at bp and conoco it next? the oil companies -- what is your take? recommended back in january and february that investors go long on oil whether you go long in the futures market or direct positions. it was very clear that oil was very oversold a

nejra: absolutely.t have any financial details, but if we look at months and does market cap, -- market cap,anto's we are looking at $42 billion. the takeover could surpass china's purchase of syngenta to be the largest acquisition globally this year. this industry has seen a record-setting pace of acquisitions this year. it is very big, but we have been seeing bayer shares tumbling. last i checked, down the most since 2009. they are concerned that this big purchase could weigh on its credit rating, and forced the company to sell more stock. when bloomberg reported the possibility of this deal, there was speculation they might have to sell units. francine: then there's regulation concern. there's concern that the numbers don't add up. how much do we know about regulators? tend to beergers blocked because you almost have a monopoly. nejra: of course this deal could come across regulatory hurdles. china anding at chem syngenta, dupont and dow chemical. also what we've seen is deals in other industries sto

let's get to the bloomberg first word news with nejra cehic. nejra: norway's $850 billion wealth fund will seek to join a class-action suit in germany against volkswagen following the emissions cheating scandal. vw andd owns 1.64% in said it is acting to safeguard its holding in the carmaker. -- may delayaway increase untile later in the year according to pimco's head of portfolio management for emerging asia. that comes as britain's biggest 's news lobby group cut its forecast for the u.k. economy, saying the eu referendum has put a cloud of uncertainty over the outlook. it now sees gdp rising 2% this year. "the pulse" speaks to anna leach in half an hour. mark carney has defended the bank of england against critics furious at his warnings of the dangers posed i brexit. he said leaving the eu could trigger a recession. the eu governor spoke to the bbc's andrew ma. >> before taking a judgment as a committee, we are putting out billions of pounds of liquidity, getting banks to raise capital as we did a few years ago against these types of risks,

nejra: you have the numbers from the euro zone as a whole.ermany's economy grew at the fastest rate in two years . gdp rose7/10 tense of a percent beating estimates. thoughfset record unemployment in germany which has boosted consumer spending. a report says the european union's naval operation to stop people smugglers in the mediterranean isn't working. lawmakers in the house of lords says disrupting the migrant business is falling short. succeeding in rescuing refugees on the high seas. in syria, the hezbollah military group has suffered a blow. one of its senior commanders has been killed. in charge of hezbollah's military operations in syria. according to a lebanese report he was killed by an israeli airstrike. personal information on chinese communist party leader has been leaked on twitter. among them jack ma and wang jin lin.many of the tweets were quickly it in investigating donald trump's former butler for making threats against president obama online. facebook, he called for the president to be killed. campaign disavows the remarks.

here is nejra cehic.as bad as the terror attacks in brussels where, they could have been worse. look and solid police work in the days before the attack lessened the impact. the investigation found disarray inside of the terror cells. 32 people died in the attack. the obama administration unveiled new rules aimed at methane gas from oil wells. according to people familiar with the matter it will require energy companies to do a better job of plugging leaks. it is 84% more powerful than carbon dioxide when it comes to warming the atmosphere. donald trump will meet with speaker ryan today. ryan is downplaying the breakthrough at the meeting saying that unifying the party around the likely nominee could be difficult. global news, 24-hours a day, powered by our 2400 journalists, in 150 news bureaus around the world. i am nejra cehic. francine: thank you. let's get back to our guest host for the hour. it is alex friedman. i picked up something that he wrote earlier. it was well written and engaging. i picked i

let's find out what's going on with nejra cehic. nejra: thanks.u say, we saw losses in japan, dragging asian stocks lower with the topix down more than 3%. a lot of markets closed for the bank holiday. china, hong kong, singapore closed in asia. at europe, we have markets of the u.k. closed. germany, france, spain, italy. open. we might be slow to get things going. here we are looking at the industry groups of the stoxx 600; a majority in the green. futures have been pointing higher in france and germany and that could be what we are seeing. it's telecom stocks leading the gains, up 5/10 of 1%. let's bring up the board and take a look at how some of the stock markets are doing. you can see the stoxx 600 pretty much unchanged, edging into positive territory after losses on friday. the dax of 5/10 of 1% in the cac 40 up almost 7/10 of a percent. in terms of what we are watching in currency markets, if we come back to the bloomberg, we've been keeping an eye on dollar-yen. it is unchanged today, but it is near an 18 month high, at 106. 57. we're stil

here is nejra cehic.nk by seeming unsecured debt rating was two levels from junk. moody's says scioscia bank faces mounting challenges in carrying out its turnaround. theeo tells bloomberg news bank is disappointed by the cut and the bank could easily repay its debt many times over. banks may have been targeted by hackers than previously reported. hackers exploited weaknesses in how banks connect to swift to steal $81 million from bangladesh's central bank in february. swift is boosting security members for -- security measures from member banks. facebook is fighting allegations of bias when it comes to selecting news stories for trending topics. the social network will no longer require stories to appear on sites considered news leaders like "the new york times." facebook is responding to a report that its editors lean toward liberal sources in selecting stories. discourseialogue and is stunning. the reality over the weekend, of the negative ratings for our two presidential candidates is standing -- is s

here is nejra. nejra: japanese markets closed until friday.ixth day of losses for asian stocks. it was pretty much flat in the futures market. this is how the markets are opening in terms of the industry groups, looking at the stoxx 600. downmer discretionary, .1%. that has now changed to materials, basic resources down .7%. the commodity producers leaving the losses in europe, the worst in asia on the stoxx 600. the currency markets are focusing on the dollar today, rebounding for the second day. this is even as we have seen treasury yields being driven down. that is really because of hawkish, comments from fed officials. socgen, france's second biggest bank. this is after it reported is a price increase in first-quarter profits. they climbed 18%. the banks also announced plans to deepen cost cuts. moeller-maersk reported a smaller decline in first-quarter profits. they have been stepping up costs cuts at the oil unit. idas announced it plans to sell most of its golf unit and will start conversations with potential buyers. guy? guy: nejra, th

nejra cehic has more. nejra: president obama became the first sitting president to visit hiroshima.ed a wreath at ground zero. he said the bombing showed that mankind have the means to destroy itself. pres. obama: we have come to ponder a terrible force unleashed in the not so distant past. dead,e to mourn the japanese over 100,000 men, women, and children. , a dozen of koreans americans held prisoner. nejra: it is estimated the atomic bomb killed 140,000 .eople in hiroshima president obama and other global leaders meeting in japan pledged to take collective action on economic growth. seven industrialized nations -- the group wrapped up their summit at a seaside resort. germany has resisted calls for an expansionary fiscal policy. in tokyo, passengers were evacuated after an engine caught fire on a korean airlines jet. the boeing 777 was about to ande for seoul, korea, seven people were injured out of 319. a warning from the british treasury on leaving the european union. the treasury says a brexit could wipe $440 billion from total assets held by those over 65. that is a combinatio

here is nejra cehic.ejra: 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 take presidents and suggested the drive to impeach was back on track. of moreable database than 200 thousand panamanian shell companies have been released in the latest move by the international consortium of international journalists. it derived from millions of leaked documents. the company specialized in setting up secret shell companies with clients including relative and as

the phone unit with here is nejra cehic.ie sanders is not going away or he says he will fight for every last vote. last night he beat hillary clinton in the west virginia primary. lead inlinton has a big delegates, closing in on the number she needs for the nomination. presumptive republican nominee donald trump won in both west virginia and nebraska. british prime minister david cameron may have an awkward time when the leaders of nigeria and afghanistan visit this week. in remarks captured on video coming he told queen elizabeth the two countries are the most corrupt in the world. the leaders coming for an anticorruption summit. turkey's constitution bars the president from having a party affiliation. now the country's ruling party wants to change that. president erdogan can be its leader. next month the ak leader will push for a change to the constitution. he has been shifting turkey's presidential power from parliament to the presidency. this may be the last day in office for brazil's president, dilma rousseff. impeachme

nejra: exactly. guy: usually they are correlated. nejra: precisely.s investors are getting a bigger return. what is behind that divergence is one analyst increasing projection for companiey earning and high-yield debt. i spoke to strategist last week who said they are positive on dollar denominated emerging market sovereign debt because of the decline of the u.s. dollar. of course, some of those conditions don't hold. manus: absolutely. caroline: you give us a sense -- is this really what this chart is painting? nejra: that's it's interesting. the chart is saying, look, ball really could continue, to what we have seen is that it really softened this month. there are specific reasons for that; in china, we saw the biggest two-day loss because of that traded we got earlier this week. in brazil, we have seen the markets fall on the uncertainty around dilma rousseff. but also it's been about the rebound we have seen in the dollar so far this month, causing some repricing. for example, the msci down 4.5% and emerging-market currencies have been falling. ms

stay with us. ♪ mark: let's get the bloomberg business flash with nejra cehic.ra: takata has ruled out bankruptcy. that is according to a person of knowledge. they say the company is instead seeking buyers to take a controlling stake and carry it through its process. -- findingstood that a suitor by the third quarter. jaguar land rover is helping to put cars with motors and the fast lane. thanks to the luxury brands sales. it -- it is cautiously optimistic about global growth. a new model drive's sails in the u.s. the airbag scandal may affect about 100,000 of its cars. it is put aside almost wanted to million dollars for repairs. the new york post is reporting that deutsche bank has emerged in a probe. the paper says no bank has been accused of any wrongdoing but investigators are narrowing their focus after requesting documents and communication from .ll of the 22 primary dealers deutsche bank is not disclosed it is under investigation. that is the bloomberg business flash. mark. mark: one of the largest hong --g tracking funds tracking has surged fivefold thi

let's get straight to the bloomberg first word with nejra cehic. nejra: thanks. broad-based a weakening of inflation pressures was behind this month's surprise interest rate cut. the australian central banks first reduction in a year came after cpi fell on the first quarter for the first time since 2008, even as the growth outlook remains steady. still, the aussie dollar jumped, as they said the deal wasn't viewed as a slamdunk, reducing the likelihood of a follow-up move in june. george soros has cut his funds in u.s. stocks by more than 1/3 in the first quarter and bought a $264 million stake in the world's biggest bully and producer. he's warned of risk stemming from china's debt fueled economy. he thinks a hard landing for the country is practically unavoidable, and that such a slump will worsen global deflationary pressures and drag down straps. darren berg plans to increase , bettingngs in gold demands will be lifted by uncertainty surrounding the outcome of the u.s. election and britain's eu referendum. the chief investment officer expect gold, silver, and

thank you, nejra. this show last week, kenny denied his country was looking to capitalize on the eu referendum. >> know, we have not been actively courting the possibility of a further investment here if britain were to leave. those who wish to invest in a country like ireland know phil welby opportunities we offer. in the last number of years, we have had extensive investment from the banking financial services. guy: there was courting to be done. it would be done by the man who is sitting next to me. good morning. nice to see you. look, your job in some ways is to get out there and sell ireland to the rest of the world. countriesss, are coming to you and saying, if this happens, can we come to you? >> clearly, ireland will be attractive place to invest at the moment. clearly, the competition is between britain and ireland, even though over the last decade we have seen ourselves on the same team. so yes, it is game on. i agree though, i don't think people are using the event itself. the damage of brit

let's get straight to the bloomberg first word news with nejra cehic.ejra: shell is trading lower bepite posting profits that analyst estimates -- that beat analyst estimates. 1.18 billion. inbev -- the world's largest brewer said third-quarter excludingse 3.1%, shifts and acquisitions. shares are trading lower. adidas and will plan to sell its -- the company said it would keep its gold shoe and a peril -- and a peril business -- and a peril business. has -- siemens has 20% to 2.1 2ose billion euros. that is after an increase in demand for energy generating equipment offset a decline. brazilian prosecutors have filed a $44 billion civil suit against the joint venture over novembers dam rupture that killed 90 people and poured -- and caused severe environmental damage. credit suisse has agreed to sell .ts assets for $1.27 billion the portfolio inc. sold includes instruments related to 170 companies globally. the transaction results in the next two charge and about $100 million to be reflected in first-quarter results. global news, 24 hours a day, powered

lifted to first word news with nejra cehic.ejra: the brazilian president is facing what may be her last day in office. the senate is gearing up for a vote to force her out and into an impeachment trial. surveys suggest the president opponents have at least 50 votes . donald trump has won the west virginia and nebraska primaries driving his can test driving his competitors out of the -- driving his competitors out of the race for the white house. enter theays he might contest if he performs well your desk performs well. well.forms toyota has said annual net income will probably decline for the first time in five years. japan's largest company todicted net income may drop $13.8 billion. that is below analyst estimates and comes as currency swings at record profits. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . francine. francine: the dollar has found the bottom. goldman sachs says expectations for u.s. economic stren

let's get the bloomberg first word news with nejra cehic.ra: germany's economy grew at its fastest pace in two years. gdp rose 0.7% in the three months ended march 31. that beat economist estimates of 0.6% growth. domestic spending helped offset weakness. china's broadest measure of new credit rose the less than expected last month. aggregate financing was $115 billion in april compared with a median forecast of $200 billion. the data suggests the central bank is starting to temper amid warnings of the debt binge. yer's expiration of a potential bid for monsanto has triggered speculation that the german company might need to sell assets. according to a chemical analyst, bayer could shed its stake in its plastic unit. representatives declined to comment. global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus around the world. find more stories on the bloomberg at top . francine: we and talking about china. hong kong, first-quarter gdp contracting quarter on quarter by 0.4%. this is much worse than expected. w

nejra: if it wants to open its own retail stores other than using franchisees.he finance minister ratifying a decision by the foreign promotion board. it could be overturned by the government that it could overturn apple's efforts to get into india. a billion devices were forecast to be sold next year. tim cook has just been to india. francine: bloomberg "surveillance" is up next. we will be talking about currencies and brexit. ♪ francine: fighting the fed. china may press the u.s. on the timing of a rate hike. no holiday for greek debt. payout as thets a imf concedes. it drops to 7% for the first time since november. and unicredit is replacing the ceo. that paves the way for a review of capital strategy. this is "bloomberg

nejra cehic has that.: time digging into the industry groups on the stoxx 600 on the bloomberg. it is very much a next picture. are seeing a lower oil price today. health care looks to be leading the gains, up 0.4%. is some of this down to this bayer deal? let's look at the top stocks we are looking at. bayer right at the top. if this goes ahead, biggest deal globally this year. also would be the biggest takeover ever by a german company. bayer offering $122 a share. this was someone at the lower end of what analysts were expecting. still talking a $62 billion deal. shares were called slightly lower by some analysts at the open. we are talking about a 20% premium to monsanto's last close in the u.s. last week, shareholders in bayer punished the stock when we first heard they made an offer from on center. we will keep an eye on that. we are also keeping an i on ryanair. it forecast that earnings growth is going to slow this year after a spate of terror attacks and lower fuel prices have prompted airlines to

here is nejra cehic. nejra: barclay is carrying out its promise to shrink its footprint.llion to africa. retreat fromd africa. one of the measures he is taking to raise cash and lighten the capital burden. rolls-royce said earnings will start to revive. the jet engine maker forecasted it will be poised to break even through june. they have said 2016 will be challenging overall thanks to weaker demand in the marine unit which mainly serves the oil industry. built 15,000 electric cars. ramp upany plans to production 2.5 million cars by 2018 to meet demand for the new model 3. tesla has 325,000 orders. that is the bloomberg business flash. francine: this is a picture for the emerging markets. the emerging markets world index, it is falling for the fifth day. the longest stretch of losses since december. we have a selloff in currencies not only linked to the fed, but volatility in turkey. let's get back to our guests in new york, brian belsky and callum henderson. howalked about colgate, but do you view emerging markets? they are stuck between a rock and a hard place. you bel

here is nejra cehic. digging deep -- what do you have? nejra: thanks.e tracked the athens stock exchange against the stoxx 600, because the athens stock exchange tumbled more than 20 23%. by february it had dropped 30% year to date, the world's biggest loser. now it is the winner, staging the best rally of 93 markets tracked by bloomberg, almost erasing all of its annual losses. while the stoxx 600 remains down 8.1%. is theis is about prospect of the first ever plans for debt relief after these talks that happened earlier this week. guy: it's amazing. as you say, this depends on where you start. nejra: absolutely. and people are divided on whether the rally is losing steam. jpmorgan says an agreement is likely, that the economic reality will curb the exuberance. on the other hand, morgan stanley is recommending shares of lenders. people are divided on where this rally will go. guy: thank you very much. rousseff's the dilma last day on the job? well could force her from office, next. ♪ [ soft music ] e.t. phone home. when you find something you love, you

nejra: they are likely to reject any bid less than $150 per share. they are in an interesting position because they have gone from being a potential acquirer from when they purchas tried toe syngenta as the target of a takeover. regulators have been looking closely generally at the chemical sector. deal,emchina and syngenta obviously. we have seen a number of deals and other industries stop in their tracks because of competition concerns. they will be regulatory questions, the analysts have said that monsanto really is ripe for a takeover with the share price falling, having to cut the earnings forecast. this deal would allow it to diversify and allow bayer to diversify, but there are many questions over the financing and what it is going to mean for the future of this german company. anna: thank you very much, nejra. manus? manus: let's focus in on turkey. he governing party is elected. the new leader is speaking at the party's congress. the presumptive prime minister vowed to legalize the de facto rule, all at the expense of his own office. let's g

bloomberg,to the nejra cehic has the latest.looking at europe, reversing earlier declines the stoxx 600 is up. we are seeing a broad-based rally with every industry group higher on europe's equity benchmark. different picture to asia where we saw a broad-based selloff. the dollar very much in focus with attention turning to whether we are going to get a rate rise from the fed. futures -- funds factoring a better chance of a rate hike in july. with that, the dollar has climbed to a two month high. looking at the bloomberg dollar index, gold is down for a fifth day in a row, its longest losing streak since november. fed officials with a hawkish tone have been stacking up in the meantime. are we going to get a repeat of the situation in january where he had dollar strength, stocks selling off globally? two things look different. if we look at the yuan, it is 1%,anged today, down about with people who watch it closely see a decline without disorder. we are not quite at the levels we were at january, and the same with crude. look how

here is nejra cehic.ent erdogan took a shot at the european union when angela merkel was least expecting it. he had threatened to tear up the central plank of turkey's agreement on refugees. it came a day after he and merkel met. he said if the eu will not keep its word on financial aid to turkey, he will not take refugees back from greece. in other kirkby, new mexico, a protest outside a donald trump rally turned violent. demonstrators threw burning t-shirts and plastic bottles at police. please responded with pepper spray and smoke grenades. house speaker paul ryan has told confidants he is ready to end the standoff with trump, according to people close to ryan. he may endorse trupp this week. he is said to be concerned about the split developed in the republican party. the u.s. justice department will seek the death penalty against the man accused of killing nine people at a church in charleston, s.c.. dylan group is white, the victims are black. the prosecutor in that case is also asking for the death

here's nejra cehic.ra: saudi arabia's new oil minister says the kingdom will probably keep producing crude at near record levels as the world's largest exporter sticks with a policy of defending market share. the chairman of the state producer saudi aramco took over from long-standing oil minister this weekend. crude prices on the rise after wildfires in canada's oilsands region knocked out more than a million barrels a day in production. the country's biggest energy companies have declared force majeure on supplies from the region. that protects companies from liability of contracts that go unfulfilled. german factory orders picked up in march, as strong global trade in domestict a lull demand. orders rose 1.9% from the prior month. the reading which is typically volatile compares with an estimate of 0.6% in a bloomberg survey. china has reported a modest stabilization in exports as well as the first back-to-back gain in foreign reserves in years. $7 billiony or grows in april. dana suggests the economy

let's get the bloomberg first word news with nejra cehic. nejra: the aussie dollar has dropped and bond yields have fallen to a record after the rba reduced its outlook for core inflation. the quarterly statement sees underlying inflation of 1% to 2% this year. disinflation will be a key challenge for incoming rba who willphillip lowe, succeed glenn stevens in september. u.k. voters have given their first verdict on jeremy corbyn's leadership of the labour party. early results suggest sustained losses across england and in elections to the scottish parliament. the bright spot for labor may be the london mayoral race. khan has run a pro-business campaign, distancing himself from the leftism of corbyn. japan may not be able to ignore the yen's growing strength much longer. prime minister shinzo abe says he's ready to respond to excessive currency moves, saying he may raise the issue at the g7 talks. the exchange rate must be stabilized and japan would carefully watch and respond to these movements as necessary. a weaker yen has been a linchpin

let's get into this market open with nejra cehic. nejra: thanks.w a broad-based selloff in asia, futures looking like we could see losses in europe. we are just seeing the sectors open up on the stoxx 600. i will come back when they had a chance to settle, but we are definitely seeing more red than green. european stocks gain for the first time in five days, it looks like the rebound may not hold. most industry groups in the red. in currency markets, you have to follow on the aussie dollar. forecast, inflation the worst performer out of major currencies against the greenback, dropping to a two-month low. and of course, a lot of focus on the dollar ahead of that jobs data. the bloomberg dollar index is unchanged today, but it is heading for a weekly gain, headed for its biggest weekly gain, in fact, in six months. let's take a look at how the markets are shaping up in europe here at the open. you can see that the stoxx 600 is off by 5/10 of 1%, the f tse and dax down, leaving the losses in futures markets, down almost 8/10 of 1%. in terms of some of

nejra, what have you got for us?, my chart shows the average extra yield the investors demand to hold junk energy bonds, versus u.s. treasuries. if the extra yield is at 10% or more, these bonds are considered distressed. the charts they have fallen below that 10% threshold. so, they have shared that distress label. and for investors who have the stomach to hold these securities, the rallies has actually resulted in gains of 30% since oil bottomed in february. guy: this is pretty good for the banks as well. that is an area where there are huge exposures. we will see what this means for the banking mpl's and the ride down. when you look at the more longer-term historical story, how quickly and how significant is this? you get a sense of hi a spike ther? you can get an idea of how significant it is. the question is, will the markets normalize? $50 a barrel is kind of the sweet spot. if we stay here, what happens? nejra: it is interesting you mentioned the banks because that we have seen high-yield bonds cover $21.5 bil

here is nejra cehic. nejra: first quarter profit at arsenal or mattel. -- at arcelormittal.cutors are widening their investigation into credit squeeze and one of its former wealth managers. that is according to people familiar with the matter. prosecutors have identified three more former employees as suspects in an unauthorized trading case. involves the accounts of rich eastern european spear general electric is hunting for acquisitions in the struggling oil and gas industry. cfo jeff bernstein tells bloomberg radio that ge has been that twofor businesses companies were preparing to sell. tom: you have been having a -- we have been having a fabulous conversation with phil about citigroup on helicopter money, which is all -- with willem buiter of citigroup on helicopter money. immense caution on the optimism in america. michelle meyer joins us now. she has gone multifamily and has done a lot of study. here she is looking out of her new condo. she sent along a new photo. this is great, michelle. you wrote a brilliant part of your research paper on the mass distortion, like j

nejra cehic is here. nejra: this is been one of the worst performers this week.t shows it is pushed its valuation versus the stoxx 600 to a record low. we are talking about estimated earnings on the dax, about 12 times. of course, the dax almost entered a market last month. we see high on april 23. since then, the core ratio on this has also been increasing, meaning the traders are getting increase -- increasingly bearish on the germany benchmark. concerns that weak global growth could affect exporters on this index. the question is how low does the evaluation need to go before this becomes a -- help low does the valuation need to go before this becomes a -- next, a loyalist is set to take the premier post. we're talking about the prime minister's post. where life is them both -- we are live from istanbul next. ♪ show me top new artist. ah, ha ha. show me top male artist. my whole belieber fan group. it's not a competition, but if it was i won. xfinity x1 lets you access the greatest library of billboard music awards moments, simply by using your voice. the billb

nejra cehic has it for us. nejra: thanks. i'm looking at the swiss market index.his is one of the worst-performing stock markets in the developed world year to date. it is down almost 9%. of what this chart shows is that traders expected to get worse. this is showing the ratio at its highest since 2012. the ratio of put the cause outstanding has also surged 18% in just two months. there may be more pain ahead for the swiss market. guy: and it is all about the franc? nejra: looks like that.i tracked it back to january 15, 2016 -- guy: we remember it well. nejra: [laughter] we saw the smi plunge. and before that, the tread was largely upward. it has been downward since then. this is interesting because, if you look at the dividend yield of swiss companies versus the 10 year bond yields, we are getting a better cash return on stocks. swiss markets are seen as a defensive play, but it really looks like investors, particularly foreign investors, see to much currency risk. even though the frank is weakened against the euro, it is still above the euro at which they set.

guy: thank you very much indeed, i, nejra. let's go from nejra to nigeria.n will be made later today. reporter, our nigeria who is only phone now. so, what are we going to get today, paul? are we finally going to see the valuation we have been talking about? paul: yes, we could possibly get that. the rates could go up from 12% to 14.5%. i is according to a bloomberg survey. what investors will be looking at most closely is what the central bank does with the currency. banks, including archelau barclays and goldman sachs, think they will weaken it by introducing the exchange rate. that is because of the dollar shortages in the country getting worse and worse and the country's fx continues to fall the vice president hinted at the devaluation, saying it was something the government was considering as part of a review of the fx system. a big question is, whether the president has made it clear it is his, not the central bank's. he li likened this to a merger back in february. he has got no other option and so far, we do not know what his thinking is. he has not

nejra: they have been calling for an end to this speculation. marking a bit of a return to normality. the appetite was weighed after the wave their transaction fees. there were concerns that they could be similar to what happened in the stock market. guy: thank you very much, great chart. joining us with the chart of the hour. let's talk about what is happening in turkey. we will see a press conference which could be fascinating in terms of the future trajectory of this economy. the turkish market this morning is trading down by 2.15% the turkish lira has bounced a little bit. yesterday, and aggressive round of selling. that is now reversing a little bit. it is not completely unwinding. you can see we are still in negative territory on a two day basis. we are seeing the dollar fading , buttle bit down by 1.21% plenty of coverage coming up. we have this rift at the center of turkish politics spilling out into the open. the prime minister, and this man on the other come he wants to have an executive presidency. he is looking to cement his grip on

guy: i just need to bring up the chart because nejra has joined us on set. is all going to work and pop-out. caroline: give us a sense of what is going on. last summer, apple was worth 1/4 more than all of china's tech companies combined, quite staggering. but if you look at this chart, see it is worth about the same as apple. we put another chart as well on the bloomberg showing that because of apple's lost yesterday in u.s. trading it has fallen behind alphabet again for the second time this year. it could be again, losing its place as the world's. he will company. going back to this chart, on the one hand apple's lead has narrowed because what is going on in the smart phone market. but also, the stronger yen has pushed up the value in dollar terms. the stock was down 30% in the last year and 14% in 2014. caroline: reports on the nikkei overnight says may be, we need to slow down to the tune of 20%. this will have ramifications off the entire supplier base for apple at the moment. once again, just to these nerves that the killer product is not selling like

here is nejra cehic. residents who fled a town ravaged by wildfires will be allowed to return and a couple of weeks, probably. 80,000 people were evacuated from fort mcmurray. it cost the oil industry one million barrels a day of production. its forecast for the u.s. economy to grow 2%, down from 2.3%. they blame a week first quarter. and they expect the fed to raise interest rates twice at most. forrates americans pay obamacare are going up. they want to raise the amount customers pay for individual health care plans by an average of 17%. the sticker shock it could cause problems for the law and its supporters. global news, 24-hours a day, powered by our 2400 journalists, in 150 news bureaus around the world. i am nejra cehic. francine: we are monitoring the egypt air flight that has gone missing. it vanished overnight. the managing of the firm international corporate protection and steven saywell. this situation is fluid and we have conflicting messages. after anormal so soon plane is lost or vanishes.

thank you very much, nejra cehic.nese prime minister shinzo abe has weighed in on the brexit debate. speaking at a news conference with david cameron, he made his position clear. japan very clearly would prefer britain to remain within the european union. it is better for the world that britain remain within a strong european union. we want to see britain and europe remain influential actors on the global stage, contributing to a rule based on piste and stability -- on peace and stability in asia. anna: cameron highlighted how britain could jenn benefit from japan-eu trade deals. >> we want to see more jobs, greater growth, and increased prosperity for our countries. we both agree the way to do that is through a comprehensive japan-eu free-trade agreement. this deal could be worth 5 billion pounds a year to the u.k. economy. and i haveter abe agreed to do everything we can to get it signed so we can start reaping the benefits. ona: john wraith joins us set now. charles newsome from investec wealth and management still

nejra: i just wanted to show you the stock move.is actually surged by the daily limit in tokyo trading, after the nikkei newspaper report that it may be taking control of. part of the biggest safety recall an auto industry history. you see that spiked up 21%, as of 2 p.m. tokyo time. now just in other asian markets, a lot going on today. i just have to switch the charts around quickly for you. the shanghai composite, i want to start on, chinese stocks are down for a third day. shanghai composite has fallen level,he 2008 lowest in three months. above $50 foris the first time since november, they are concerned falling fuel prices could hurt chinese transportation companies. airline stocks have been slumping. overall, a pretty strong session in asia. heading for the biggest two-day gain in more than a month. we see the msci asia-pacific index raising to a one-week high today. this is on optimism that the global economy could actually withstand a rate rise from the fed. we haven't seen that risk not just an asian stocks, but also in eur

nejra, tell us more about the statement from on center.: we got this today, saying that monsanto received this unsolicited nonbinding offer from a buyer. what we do not have is any financial details. monsanto is reviewing this offer. and we do know about monsanto, that it has a market cap of about 42 billion dollars. if this does go ahead, it would be the latest in what so far has been a record pace of deals in the global chemical sector. seeing $84 billion a deal just this year alone, as low crop prices have been encouraging mergers. we have talking about china's offer for syngenta and dow chemical and dupont planning to merge. according to bloomberg data, with the premium, a takeover of monsanto could surpass syngenta to become the largest acquisition globally this year. anna: how likely is this deal to go ahead? we have seen composition at other sectors. nejra: not just in this sector, but in other industries. we have seen a number of deals really stopped in their tracks the past couple of weeks because of the increased scrutiny on comp

nejra: philips lighting shares have jumped in their trading debut this money after royal philips raisedmillion euros in the initial public offering. biggest lighting business. has sold its sun life unit and a u.k. and announce the top management team will work with the incoming ceo when he takes the helm. among the appointments, gerald harland will become cfo. france'sme time, largest insurer says the sale of its u.k. life in savings business would generate 400 million euros. google has won a $9 billion court case over the use of oracle java programming language. oracle claims that google needs a license to use java to develop android. jurors concluded that google made fair use of java under copyright law. android is used in 80% of the world's mobile devices. oracle plans to appeal, although legal experts say overturning it will be difficult. francine: thank you so much. wall street's long weekend has been put on hold until fed chair janet yellen takes to the stage this afternoon. the big question, will she take june off the table for an interest rate rise? one man expecting a dovish re

nejra: the u.k. wants that britain faces a year-long recession if it leads the european union under its severe short show nouriel -- #area of the house prices would fall 10% from current levels. it warns that pensioners could be left hundred billion pounds worse off. -- could be left 300 billion pounds worse off. mark carney -- was asked about as he appeared before the u.k. treasury committee. in the spirit of goodwill, i'm going to ask you dismiss something. that is we know that goldman [indiscernible] can i give you the opportunity to refute any suggestions that goldman sachs put any pressure on you? i will take the opportunity -- yes, i refuted categorically and am stunned. >> thank you. atlantic, across the the president says he doesn't see the eu referendum influence he said even if the u.k. decides to leave, the next day nothing happens and the country will enter into negotiations bounds to go very slowly. s&p global ratings once that a brexit when not just weaken the pound, it would ever dies

nejra: the cac 40 is down about 4% year to date. two thirds of the stocks on france's benchmark have fallen this year. the positive in this is valuation. if you look at the chart, french stocks are at their cheapest in three years relative to the stoxx 600. trades at about 14 times the estimated earnings of its members. the question is, are we at an inflection point? the question among fund managers looks like it is warming. france is now the second most favored in europe. this is according to a merrill lynch survey. last month it was one of the least popular. it was perhaps time for a turnaround and this chart is showing valuation at the cheapest in three years. oil cfoing up, the stat will be joining us here on bloomberg. we will talk about m&a and offshore drilling. next here on "on the move or co- ♪ -- "on the move." ♪ >> we have breaking news on greek debt after the agreement yesterday we see greek debt soaring, pushing the 10 year yield down below 7% for the first time since november. you actually see a lot more action at the

nejra has some stocks we should be watching.looking the biggest movers on the stoxx 600 this morning. it is been a challenging time for rwe in the past few months. last year was the biggest decline in the dax index. it had to suspend its dividend to common shareholders for the first time in 50 years after losing more than half of its market value for stub some good news today has pushed it higher. first quarter profit, the little changed, was actually a beat. unusually high earnings from trading countered slumping power prices. of the biggest to gain her. the biggest loser the stoxx 600 is the aegon. drop inted a 50% first-quarter profit and alternative assets and hedges. asally, this is slumping well. it reported a 71% drop in first-quarter profit. it was hurt by a decline in consumer lending margins and trading revenue. thebank's beginning organization to try to streamline its capital structure. guy: thank you very much, the u.k. chancellor want to consent out his case for remaining within the european union. >> the claims of

nejra is here. lot of focus on commodities today first of we're seeing metals rebound after losses this week and last week on concerns about china. i have the industrial index metal index rebounding, this tracks returns not prices. this index has rebounded about 9% since dropping the lowest since 2004 in january for the different comments from mining ceo's on the outlooks on metals. is set toaid demand exceed supply. some say the worst may be over for commodities. colin the bottom is brave. whatever position you take, we're seeing these metals revo bound today. we are seeing gold up today. this quarterear, was it's -- the first quarter this year was its best sense 1980. it was just the beginning of a rally, and goldman sachs has also raised its 3, 6, and 12 month forecasts for gold, but all of those are below the current price. bearishtaining its outlook. theirn economists cut predictions over the next 12 months. , goldman thought about also saying the dollar slumped is over. that brings me to dolla

for a market nejra update. nejra: yes, i have tracked the dollar here against treasury yields.urse concerns over growth, the guy was just talking about the that was moving the treasury. r that is the blue line here. in the dollar has been decoupling from that. using the dollar rebounding here from the lowest level over the past two days, some of that has been driven by some hawkish comments from fed officials about a june rate rise. to follow theu bloomberg, there is no end in t.te for the dollar rou seeing the rebound year, if we continue to see what, in general, a weaker dollar has been doing, it has been strengthening the ye. n. yesterday, it is the worst performing currency. the worst is actually the korean currency. i have seen that drop, charted them both. the korean currency weakening. japan and korea of course compete for global trade. always interesting to watch these two currencies together. finally, just looking at what is happening in oil, holding the losses. we are seeing debbie dei at -- wti at 43. this is about growing u.s. crude stockpiles releasing the rebound

nejra: thank you, tom. the european union is escalating a spat with turkey.tresident says turkey toughen its anti-terror law if it wants visa free travel in europe for turks. the president signals he would scrap a landmark ref unique dutch refugee deal if they do not loosen travel requirements. in france, strikes at oil refineries might spread today. the union has called for electrical workers to go on strike. they are protesting the president's label reforms -- labor reforms. the egyptair crash is spurring calls for changes in how it relates get flight data. sophisticated submarines may be the only hope of finding the data and voice recorder in the mediterranean. technology should allow the planes to strain the information real-time by satellite. ,he hedge funds from tony james he says the hedge fund industry might learn a quarter of its assets in the next year. he told bloomberg tv canada "it is kind of a day of reckoning. there will be shrinkage in the industry and it will be painful." hedge funds are having the worst start to the year since the financial