us, fxrochester joining strategist for nomura. vonnie: we will get more insight on the economy from senator tim scott of south carolina, member of the finance and banking committees. coming up at 12:30 new york time and 5:30 london time, an exclusive interview with st. louis fed president jim bullard. we know his thoughts on a cut. at 1:00 p.m. new york time, fed onir jay powell speaks fed policy. we will bring that to you live. all of that to come. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's catch up on the bloomberg first word news with courtney donohoe. courtney: it is the latest huge merger and a -- huge merger in an industry being shaped by deals. allerganreeing to buy in a deal valued at $63 billion. the deal is expected to close early next year. the u.s. downplaying expectations for this week's meeting between president trump and china's xi jinping. they insist to the at administration is not willing to compr

it will remain an equity affiliate of nomura holdings.dent trump's blacklisting of huawei is starting to hammer one of the company's most important businesses. we are told huawei is preparing for a 40% to 60% drop in international smartphone shipments. those are huge numbers. selina: they are huge numbers. and this comes out to about 40 million smartphone units. and that's a big portion of the international sales which comprises almost half of their total smartphone sale units last year, which is about 200 million. and so after this ban from trump, the big issue is they can't get access to critical components, hardware, and software. on the hardware front, they are ok because they are using their own ships, but it is on the software side, where they are getting hammered, because it means new consumers can't get access to the android update and we have heard from internal forces that executives are even considering pulling sales of this new phone if they don't perform well in markets. taylor: there has been a lot of talk about the effects

namura will remain an equity affiliate of nomura holdings.nt trump's blacklisting of huawei is starting to hammer one of the company's most important businesses. we are told huawei is preparing for a 40% to 60% drop in international smartphone shipments. those are huge numbers. selina: they are huge numbers. and this comes out to about 40 to 60 million smartphone units they are predicting a drop in just this year. that's a big portion of the international sales which comprises almost half of their total smartphone sale units last year, which is about 200 million. so after this ban from trump, the big issue is they can't get access to critical components, hardware, and software. on the hardware front, they are ok with this newfound because they are using their own huawei chips. it is on the software side where they are getting hammered, because it means new consumers can't get access to the android update. we have heard from internal forces that executives are even considering pulling sales of this new phone if they don't perform well in marke

anna: nomura planning to buy back up to 8% of its shares for ¥150 billion.s pressure has been building on the ceo. >> nomura announced this afternoon -- there was that large buyback which is pretty significant, and the second elements owns the institute, which is a think tank, a technology consultant firm had a 37% stake and they will sell 160 billion yes stake at ¥1750 per share. it will remain an equity affiliate of nomura holdings. >> president trump's blacklisting of huawei is starting to hammer one of the company's most important is missus. we are told huawei is preparing for a 40% to 60% drop in international smartphone shipments. those are huge numbers. >> they are huge numbers. and this comes out to about 40 million smartphone units. and that's a big portion of the international sales which comprises almost half of their total smartphone sale units last year, which is about 200 million. and so after this ban from trump, the big issue is they can't get access to critical components, hardware, and software. they are using their own ships, but it is on

nomura has survived calls for his ouster from the company board.d japan's biggest brokerage today voted to keep him as ceo. he's been under fire in the weeks since employees leaked sensitive information that prodded regulatory penalties. tomorrow sought to sought toa -- nomura placate investors with a stock buyback. that is your bloomberg business flash. vonnie: futures in focus is coming up. oil still in the headlines. we look at prices in the week ahead, next. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." time now for futures in focus. iacchino joins us from the cme. you don't think the fed can get away with just one cut. you think there's going to be more to come. if so, what am i hitting in terms of which markets? bob: number one, i don't think it is the president versus the fed. i don't think the president should be making these comments, but i don't think they are going to influence the fed at all. jay powell is worth hundreds of millions of dollars persona

we might get the relief rally that the nomura strategist recommended.a: if it is not a systemic crisis we are talking about, i would just talking about disappointment with the data? data that is already starting to reflect some of the bad views for the global economy. i pulled up a chart showing a red.long period of this is the longest period in red since this index was created. mark: it is the longest. the jpmorgan manufacturing -- global manufacturing pmi has 13 consecutive month of falling and now is in contraction territory. now we have got the whole trade war intensifying on top of that. it's about to get a lot worse. --are set for a very soft tough global environment. looks like the u.s. might be heading towards recession next year unless we seriously improve the trade situation. it looks like stocks are very expensive, even before this trade war. now the trade war has gotten much worse and we have opened a new front against mexico. expensive stocks look supremely overvalued and will need to follow a lot over the next year to match up with the mac

we got a similar view from an analyst at nomura.ic position is like, especially with headphones -- they say positioning is like, especially with hedge funds -- is light, especially with hedge funds. compare the two. we see equities hit near a peak here, but they continue to rally for the following month. nomura says this is likely to happen again once we get the g20 meeting out-of-the-way. they say any dip we see in stocks is a good opportunity to buy this week. nejra, manus? manus: i will pick it up from here. dani burger said the context for a momentous week. it takes us to the mliv question today, the stock side of the asset class. can stocks rally even without a trade deal? join our debate. it's on your bloomberg. do you need a trade deal to boost the rally, or is the fed enough to sate the market? christopher at lgim. we are all gearing towards the g20 this week. last week it was about powell and the fed. this week it is about g20. do you even get the sense that markets are perhaps a little prospectoyed up on the of a trade dea

let's get to some breaking news from nomura. buying back a .6% of shares.hat we are tracking. other breaking news we're looking at. in mayn car sales rising for the first gain in nine months. that is something to keep an eye on. of a a blip or the start recovery? turning to european equities. we had a recovery over the past two weeks for global equities. when it comes to equity markets it seems as if these markets are in wait and see mode, killing time ahead of the fed. futures flat on ftse 100 futures and u.s. futures. 600s&p 500 and the stoxx closed flat yesterday. negativity seeping into the next futures down .2 of 1%. cac futures struggling for direction. you will see more movement in the bond 600 market when he como treasuries. 10 year yields down. looking across at the two-year yield as well, that is something we are keeping an eye on on a 185 handle down almost three basis points. 10-year bund yields look to be steady. we are deep in negative territory ahead of the cintra for them. let's check out on the markets in asia. juliette saly has more. what

let's take a look a look at nomura. marginally higher.nance tweaks, prompting opposition. is maintaining its stance. reports nomura could be punished over that breach. >> thank you very much. let's get the first word news spirit >> we start with the senate vote. it will be in resolutions to cut in half arms sales to saudi arabia and other middle eastern countries. agreementws an between democratic and republican leaders. president trump has been criticized for pushing ahead with a $8 million deal. the united nations inquiry into -- saysi journalist has the crown prince's potential role should be investigated ever there is no so-called smoking gun, but it does say quote there is credible evidence of high-level saudi liability including the crown french -- prince. the u.s. navy has presented what it says is evidence of iran's involvement of attacks on the oil tankers. it has recovered a mine recovered from one of the takers. they stopped short of directly blaming iran and offered no evidence for attacks on a second tinker. the inquiry into

consumers would pick up the cost of tariffs which could be $7000000000.00 annually the investment bank nomura expects inflation in the u.s. to rise by 0.5 percentage points over the next 12 months. apple c.e.o. tim cook recently estimated that if i phones were made in the u.s. from start to finish they would cost consumers up to $100000.00 that's partly due to higher labor costs but also a shortage of manufacturing expertise and infrastructure well reynolds went to find out more. we have right now the number one and 2 and 3 m. for up to 9 to leave isaac lair in those toys he's the c.e.o. of m.g.a. entertainment one of the most successful toy makers in the u.s. now which of these toys here on the wall are made in the united states now no one made you know none of the nano if you make the beef 23rd for 14 you know it's called a lower growth the number one selling to you know america if you made the from the u.s. because you would pay $40.00 for they will buy it for $40.00 for kids would not have beef toys you can possible to make a log of toadies andy you would think as the u.s. china trade war

consumers would pick up the cost of tariffs which could be $7000000000.00 annually the investment bank nomura expects inflation in the u.s. to rise by 0.5 percentage points over the next 12 months. apple c.e.o. tim cook recently estimated that if i phones were made in the u.s. from start to finish they would cost consumers up to $100000.00 that's partly due to higher labor costs but also a shortage of manufacturing expertise and infrastructure well reynolds went to find out more. we have right now the number one and 2 and 3 m. for up to 9 bethany to leave isaac lair in those toys he's the c.e.o. of m.g.a. entertainment one of the most successful toy makers in the u.s. now which of these toys here on the wall are made in the united states none of them were made and you know none of the nano if you make the beef 23rd for 14 you know it's called a lower growth the number one thing to you know america if you made the from the u.s. because you would pay $40.00 for they will buy it for $40.00 for the kids would not have beef toys you can possible to make a log of to leave and be you would think as

nomura's buyback strategy.iggest brokerage firm announced it will buy back as much as $1.4 billion in shares. ubs pushes further into automation. the swiss bank boosts its automatic trading force, adding robots to handle derivatives and etf's. and third, sotheby's sale winners. a $2.2 billion sale to investor net $257 ini will cash for each share sold. basak, i want to kick it off with nomura. they are trying to change stuff up to present something a little bit better. sonali: but let's be clear, this buyback plan is coming out of pointed defense a little bit. they had a horrible profitability in the last couple of quarters and the last year, and now they have this big information leak, and people want an ouster of the ceo. there's definitely heat on the ceo going into next week. david: take the unit that was involved in that scandal. they say they will sell that and buyback shares. i think it is kind of a clever twofer. sonali: it is definitely a clever maneuver. andy chairman as well, we are seeing calls to m

and owners of nomura holdings are being urged to vote against.ation for leaking marketed sensitive information. shareholder services should be responsible for the incident, and it is said reelection is not warranted. more scheduled for june 24. david: china released credit numbers for may, showing a pickup, with a slowdown, continuing to have impact. let's bring in james, our china economy reporter. what do they say about credit conditions right now? james: well, as you said, the pickup in lending in may, which is a good sign for the economy. based on the headline numbers, but when you look down into the details, it is more concerning. limber economists identified and looked at an actual slow down in long-term lending. a lot of the things that happen in may were short and medium-term letting. it is not a good sign when the trying to reduce the ability to borrow, and that long-term lending and long-term borrowing by private companies is slowing. indication that the increasing credit is actually going to places where it would have the most economic

highgh as $49, mid to 30's, nomura says mid 30's and they do not think a deal is likely. that is a big range. $20 or $40 a share. battle the charts is up next. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. taylor: time for our global battle of the charts. you can see them all on the bloomberg by running gtv . kicking things off is my favorite half marathon runner. fmg,day i want to look at the advisors share tech and media etf. it is actively managed and you would think it holds faang stocks but it trades in and out of them. they were highly correlated until the beginning of the year. the etf sold out a lot of them and here goes the faang stocks. the

we get a similar view from analysts at nomura who are looking at the world indices.y think stocks will rally following the meeting. is light.g, they say there is room for hedge funds to buy. and they say history is repeating itself. we are seeing a similar pattern to the beginning of last year. if you look at what happened in markets, we get some post bubbling us -- post bubbliness. going into the g20 meeting would be a good opportunity to buy because a rally is expected continuing. dani burger with a look at market preparations. donald trump says the u.s. will impose additional sanctions on iran days after he abruptly called off airstrikes in retaliation for the downing of a navy drone. the administration has signaled a willingness to talk. >> continued threats and acts of aggression against israel, our allies in the arabian gulf, and against u.s. personnel and assets across the middle east are not signs of a nation seeking peace. >> there will be a significant set of new sanctions. trump: if there is war it will be obliteration like you never seen before. you can't

nomura sought to placate investors with a $4 billion stock buyback.oday, bitcoin traded above $1000 for the first time in 15 months. creek -- the cryptocurrency recaptured facebook'stention on push into the space with its recently announced token libra. that is your bloomberg business flash. david: thanks so much. the standoff between the united states and iran continued over the weekend, with secretary of saying theo u.s. would impose new sanctions today. c. pub pao -- sec. pompeo: we will continue to make it understood that we will deny fundthe resources to terror and build out their nuclear program. david: with us is former u.s. ambassador to the u.n. thomas pickering. let's start with the un security council. the united states was to take this issue to the un security council. is there anything reestablish thickly -- is there anything realistically we can expect? i think neither russia nor china will join us. they have opposed the trump pressure campaign. everyone should go back to the fact that we walked out of the comprehensive plan of action, w

create value for shareholders tilray could sell off pieces for instance >> and a new note on netflix, nomuraetical of an d-supported service that could add more than $1 billion in revenue netflix has said it doesn't expect to make such a move they haven't changed their recommendation or their price target which is only $320. it's a hypothetical assessment >> by the way, we like it. >> yes no, no, they don't like it the target is $320 i don't know where it is now it's above that level. jim, do you like netflix do you think they should start offering ads >> it's really interesting because at some point you have to worry about margins in this business because look who has come into the business, at&t, disney, apple is trying to get into the business. screaming itself will be more commoditized then what do you have? bring the best content which can be hit and miss or you have to do something like this to create more revenue your margins will be what gets interesting with all of these companies because if everybody else is offering a streaming service, you can't keep jacking your prices up or peo

nomura says that in the month of june we can expect another positive set of numbers in terms of the exportsiorating trade picture, particularly if these trade escalations continue to escalate. bloomberg says we should take very little comfort from this increase in the month of may. they expect tariff impacts to become more severe as we look toward the second half of the year. it isn't just the tariff impacts but it is also the slowdown in the global economy. europe is looking pretty weak beyond the u.s. as well. that is the view from bloomberg economics. in terms of the monetary policy response, they have tremendous andntial to support growth he talked about the monetary policy side and also the fiscal side trying to stimulate .onsumptions of the auto sector we may see additional measures come into place, dependent on how these trade tensions play out. >> thanks. tom mackenzie. -- what do we have at the moment? 6.95%. there were tariffs on chinese imports which overlooks and obscures the full scope of the restructuring of global supply chains. in a nutshell, give us your hypothesis. >> ther

. >> that description i feel like nomura going neutral is probably a bit disappointing to you given the embrace of that stock. anyway, on to the next one stifel upgrading squhumbelum wer to buy from hold and bear labeling chipotle a fresh pick calling it an attractive stock for investors with near and long-term horizons bear does an outperform rating for the stock and seize top line momentum in the second quarter, up 2.7%. on that note the last one chipotle clearly positive fundamentals but they didn't really upgrate numbers they were just making a call based on the share price pullback of late >> which i think is totally a respectable thing to do because they obviously see much longer-term returns from this and given the stock that's pulled back it's an interesting entry point. so it's probably a good call >> plus interesting given the fact you have these looming mexico tariffs on things like avocado. you've seen some pork prices increase too due to the virus in china. >> swine flu >> do you like chipotle as a restaurant stock or the space more broadly >> not more broadly. i think you