i'm ramy inocencio. continue our global tour of the top business stories with an unexpected executive shakeup at ge. >> the change out of the top of general electric, they said tim finery will be taking over. explain the timing of this decision. >> the timing is a surprise. this was likely, or increasingly likely now that trion have stepped up pressure on ge. its original position when they bought the stock was, we like the plan and we are leaving them alone. however, after several years with a weak stock, they decided, they are going to step it up. jonathan: what does flannery bring to the table? he is a 30 year veteran. what is he going to add to this party? >> there are ge investors that are disappointed. there was a feeling that ge needed an outside ceo, or an alumnus that worked on other companies and worked non-ge experience. but, you know, flannery is probably the best of the insider candidates, and he has a track record as a dealmaker. >> uber founder and ceo travis cais taking a leave of absence

--haps remy innocence you ramy inocencio, you can talk about this. ill be steering away from the differences. it is a fundamental difference between the leaders. , the economyhing and the defense with regards to pakistan and the rising deteriorating situation in southeast asia and china. talking about mr. modi here in the united states, he has two dozen executives, ceo's of major companies. ceo's, like sender pichai of google. bezos, ao with jeff lot of bigwigs. something to go into the bloomberg terminal, because this is the trade relationship. this sets the stage. we have come to the right hand side, china is the biggest trade partner with india $72 billion here. with you leave that here and show the deals that could happen. they are in defense. one has to deal with the drawings -- the drones that a california judge want to talk about. patrol jones unarmed right now that will try to get a deal with armed predator drones, 100 of those. another issue is with f-16 fighter jets from lockheed totin doing production produce f-16 within india itself. not s

i am ramy inocencio.ake a look at his of the major political stories that move markets, starting with theresa may's efforts to shore up support and form a new government after last week's snap election. >> prime minister theresa may could be bracing for a civil war within her party. this comes after last week's election. she is facing pressure from lawmakers who hold her responsible from the outcome of the snap election that caused the conservative party their majority in parliament. this comes on the heels of the first meeting with the cabinet since the election. >> this afternoon, theresa may has been holding her cabinet meeting. as you say, leading members of the cabinet have come out and strong support of her, for example foreign secretary boris johnson and brexit secretary david davis, both sharing fairly unequivocal support for the prime minister. >> u.k. prime minister theresa may coming under increasing pressure to abandon a hard brexit as she tries to put together a parliamentary deal to stabiliz

i am ramy inocencio. this is bloomberg. ♪ betty: thank you so much.ters for south korea and china met for the first time in almost a year, the annual aiib conference in judge you -- in jeju. they agreed to work more closely with each other. >> aiib is held for the first time outside of china, and of course the location is not specifically chosen in consideration of china and korea relations, but i believe it can be a good sign for improvement in the relations. the chineseing with finance minister, and it lasted longer than planned. there are still some delicate issues between the two countries. i am sure we can boost economic cooperation between the two countries going forward. are tensions easing enough for china to list the current ban on packaged goods? that is what we hope for, so given there are some diplomatic issues, it might be too early for us to hope all the nontariff their ears could be eased right away. but based on my meeting with the chinese finance minister and the economic dialogue panels the two , we do hopeve nontariff barriers and t

ramy inocencio, joining us from new york. focus today with the latest inding on real estate due one hour's time. tom mackenzie joining us from beijing with a preview. what can we expect? tom: the broad outline has been growth in prices ticking down in the cities nominated. a pop-up and pop down. the overall trend has been slightly lower. that is what economists expect for the month of may as well. they are basing that on a number of factors. first of all, the curves put in place on deposit. there are further curves and further tightening, whether that is funding the developers or price caps. we also had the sales data for may that came through, and that showed a slowdown as well. all of that feeding expectations for our internal in-house economists that we may see a slowdown in this growth of house prices. we have a chart of what is going on in the cities that is g #btv 183. bring that up and you can e the three lions, and the number lines and-- the three the number of cities. up and it has broken away from first and second t

anchor: ramy inocencio, thank you.ill talk more about treasure in -- about president trump travel ban. the fallout, just ahead. this is bloomberg. ♪ anchor: we are looking outside of so give this morning. counting down to asia's first major market open. futures firmer, up .5%. this is daybreak asia. i am yvonne man in hong kong. betty: a little more gain in tokyo. i am betty liu in new york. one of the top stories in the yards, the supreme court clearing much of president trump travel ban to take effect this week, and agreed to hear the argument in the fall. the decision gives the president at least partial vindication for his claim of sweeping power over the nation's borders. let us bring in michelle, the vice president at the center for american progress, where she covers legal issues. she joins us from washington. michelle, tell us -- in your best legal expertise and advice -- how do you interpret this, you know, this term, "bona fide ties to the u.s." what is legal entry and what is not? >> what we see with the dec

ramy inocencio has more details.p this with the fed and what we heard from yellen. >> you guys have been talking about how the markets got hit by her talk about market valuations being higher than normal. positivity is some in terms of rate hikes as well as the future in terms of any financial crisis. let us remind everyone of where we are in terms of the dot plots. this is dots . we have one more rate hike in the cards. you can look at the bottom left in terms of 2017. the line that has the most yellow dots here. looking ahead, miss yellen says this is much safer and less sounder than it has been. she also looks to the dodd frank stress test in terms of phase one. all 34 banks passing that. most of them with flying colors. looking ahead, she says in our lifetime, it looks like maybe we are safe in terms of another financial crisis. >> you will never be in another financial crisis? probably, that would be going too far. and think we are much safer i hope it will not be at our lifetimes, and i do not believe it wi

let us bring in ramy inocencio to see what we might expect.membered in the last couple weeks or so, we have heard from the president saying he was going to do a big number. does not see much the case anymore. as january as early 30 when he said he would get a big hit on dodd-frank and everything underneath it. ramy: at least according to one person familiar with the report, a supposedly 150 page report, due out as early as the next few hours, it will center on a few things dodd-frank has created in terms of the consumer financial protection bureau, cfpb, as well as the volcker rule, which bars banks from using its own capital to speculate. one of the big things does hone in on it in that it could lose power to examine its banks. givether thing is it would power to president trump or any president they are of to fire the director of that bureau, and with the volcker, there are a couple of changes for small things as well as big bang theory. this is a threshold in terms of the amount of assets. for small banks, the threshold to $10 billion in te

i am ramy inocencio, this is bloomberg. stocks halting that today flight.anks rebounding, crude fumbling. down to $45 a barrel. a potentially significant event for investors. here to give us the rundown is su keenan. have a lot of stocks close off their low because of the power of the banks offsetting that sharp plunge in oil commodities. let's look at the close. if we look at the big movers, they are all energy-related. that has a lot to do with commodities being down. these were big drops, down as much as almost 6%. if we going to the bloomberg, we have a chart for you that lot th commodities being down. these were big sends conflicting signals as to what direction we might be going in for oil. average foroving oil is below the 200 day moving average. we may have the death clause, it signals lower prices ahead. but if there is any snap up in the price, it could turn into a golden cross. that is a close these signals are. that would be positive. although it does not look like it will happen, it shows how difficult it is to call direction. betty: what are t

ramy inocencio at the terminal right now.o show you exactly how important information technology or technology stocks have been to the performance of the s&p ever since year to date. on there all the sectors s&p, starting with information technology. ramy: it is at the top here average rate, it is like this. i want to show you that it has actually made up the bulk of the performance for the s&p 500. to 39%tually translates of the growth of the portfolio return of the s&p 500, year to date. you can see how important technology is. moving down to the second-place financials is never to bring. 0.77 on the means it has to that port.08% for your return. let us switch to another #btv 9101.erminal, g energy is the orange line. that is any negatives because of what has been happening with oil stocks. the yellow line is the s&p financials. we have this trump bump after the inauguration for these first two lines. the technology sector is pretty much flat, only up by 1.5% here. things changed at the start of the year. you see this break

ramy inocencio following all this for us. this is still are most read article on the bloomberg. s it deftly is. when you talk about the transatlantic tensions happening with two of the strongest allies in the world in front of twitter and the world, this is really interesting. everybody wants to click on it. it is a special relationship that has been shared for the last seven years. dudley getting scratched up in the last few months. fromarted with a tweet donald trump criticizing the london mayor. i went to show you with what is being said. at least seveng , and the49 wounded mayor said there is no reason to be alarmed. the reason is that trump linked that there iste no reason to be a long. the mayor was telling people not to be alarmed by actor police on the street. theish media later asked mayor for a response. he said he was focused on the response and then added this, i just have not got times to respond to tweets from donald trump, i have better and more important things to focus on. giving short shrift to the president. donald trump came back early this morning, 11 hours a

ramy inocencio innocence you is our central-bank washer today.e do love central-bank speak, so why don't we get started with the fed. >> we have been taking apart the fact that janet yellen's comments on asset in valuations being richer than the average has brought impact to the markets, but aside from that, par 4 for the course as the captain of the fed ship, basically staying the course in terms of rate hikes. , one rate hike later this year, but when it comes to the situation with the financial system in the u.s., she said "it is much safer and much sounder." stressed the dodd-frank tests last week with all 34 banks passing, and she also said that there was some optimism looking to the future. let's go ahead and take a listen. >> will i say there will never, ever be another financial crisis , probably that would be going too far, but i do think we are much safer and i hope that it will not be an our lifetimes, and i don't believe it will be. >> so not in our lifetimes for financial crisis. correct, bute is there is one nagging question and a l

with ato ramy inocencio recap. in some respects, a bromance i guess. similarities between the two leaders. not allre saying it's hugs and handshakes, but there were a lot of handshakes. there were not one, but two hugs. we sell one of the rose garden, of course mr. massi and trump wrapping up at dinner at the white house. we see him go in for another hug , potentially may be, this is a sunshine policy to try to replicate -- there you go. >> how can you not like that? to may betentially replicate the bromance that barack obama had with mr. mosys in the final two or so years of mr. obama's term. at the heart of this, trying to make deals. trade ties as well as business deals. for mr. trump's part, he minced words when it came to bilateral ties and trade deals. >> i look forward to working with you, mr. prime minister, to create jobs in our countries, to grow our economy's coming to create a trading relationship that is fair and reciprocal. it is important that barriers be removed to the export of u.s. goods into your markets, and that we reduce our trade

guy: ramy inocencio, great coverage. a story we will be coming back to.lenty of stories we're coming back to. let's catch up on what we need to know. here is first word news with courtney collins. draghipresident mario says the european economy has turned a corner. but the job market is lagging behind. draghi says threats to growth are now balanced and he may cut rates again. he warned nothing has changed on inflation and employment and says they need to taper the ecb's 2.6 dollars trillion bond buying program. the man once seen as a potential successor to jpmorgan's jamie dimon is leaving the market after 13 years. operator inief 2012. his rapid rise of saw him in the running for the top job. zames wasnot say why leaving. he says he is sad to see him go but respect his decision. a defiant tone in continuing isolation, saying it can expand the pressure for as long as necessary. have arabia and its allies yet to submit demand to resolve the crisis, which has seen diplomatic ties severed, along with land, sea, and air links. shiite militants could destabili

ramy inocencio, bloomberg news, new york. anna: michael sneyd is a still with us. is stressing that bank under tough conditions. ise of the data in the u.s. weakening, not to that extent, but weakening. what you make of the dollar cycle as it stands? dollarte line tracks the against the recovery in the eurozone growth. see continuing this downward trend? wouldl: most of the focus hint around the outlook for euro-dollar, which had a good run last year off the back of the strong eurozone data. coupled with the soft data from the u.s. we do not think that euro-dollar will move higher. we think it has become too overstretched. the pound story, the positioning and euro-dollar is now it's largest long it has been for the last five years. this is an extreme position. it shows you the competition of those factors just mentioned have meant people have ramped up on long euro-dollar positioning. ecb, while tapering, is keeping policy loose, contrasted to a fed were even inflation has come up. the central bank is prepared to continue its hiking cycle. some people are mourning

let's bring in ramie inocencio more of the highlights from that dinner. my: as they are having that dinner, the more substantive part of their meeting will be happening tomorrow and friday. you outlined the yourself. the defense situation between north korea, what is happening in north asia, and the deficit over the past five years, it drivers of two main discussion between the two leaders. things,t aspects of going to the bloomberg terminal. there is a great maps function. is maps 5. this is where potential nuclear ballistic sites are. i want to point out the proximity of pyongyang. this is only 200 kilometers long. if anything should happen, it could be mutually assured distraction on both sides of this border. to the west, china has been trying to be pulled in your by the united states. ever since february, china has stopped importing north korean coal. but there is more that can be done. with u.s. pressure rising on china, that happening today with steve mnuchin saying there will be penalties with institutions, as well as people, affiliated with china,

ramy inocencio has more on how the u.s. markets reacted. my: it is not just what happened with the paris deal. it was also support of jobs and oil data that pushed our markets to record highs. at the s&p 500 up to 2430 here. let's look on the intraday for the s&p on my terminal. you can see how we started the ending 2430. donald trump hour, the exit for paris. it jumped about 0.5% here. theould be something along lines of regulatory action or regulations falling away in order to unleash potential there. s&p financials rose higher a little bit. that is on the back of what is happening here. is sega look at what happening in terms of renewable stocks that you think might have taken a hit. has it taken a hit? solar jumped by 2.7%. these are recouping losses that they saw 24 hours ago. it fell 5.2%. canadian solar fell 5.4% yesterday. sunpower fell. we are seeing some of these stocks react. let's take a look at what is happening with tesla. tesla down 0.2%. and bob igercanadian musk saying they will be departing the presidential council. you can

ramy inocencio has the week ahead. sanctions, sessions, and steel. the stand in front of the senate intelligence committee. now jeff sessions will be here .n tuesday he will try to defend the white house and this probe of alleged russian collusion and trying to push back against what james comey has said. looking at what the questions will be, it will be revolving around the handling of james comey's firing and looking at the potential meddling by russia in terms of the u.s. elections. one special thing is session zone recusal from the russian probe. you remember when mr. comey talked about this. said he expected mr. sessions to recuse himself. he did not say why, which raises questions into why he could not go into that. he will be looking at the resignation of mr. sessions. he himself had offered to resign in the past, but right now he still works at the pleasure of the president. looking ahead to wednesday and thursday, the senate looks at possible russian sanctions linked to iranian sanctions. so far, 55 senators have signed on to this lindsey gr

ramy inocencio has more. >> i want to show you what is been happening in terms of how we end this saiday here. this is how it was. although it looks mixed, this was off session lows. dow jones industrial avenues at a new record, up only 0.2%. 21,374 is where we stood here. s&p 500, i want to show you how this turned out over the course of the day. you can see the s&p was flatlined most of the day up until 2:30, when the fed came out with its announcement. markets took a little slide. we did expect what was going to happen with the 25 basis point hike. we ended up near the flatlined. let's dive into the bloomberg back to the left side of the screen. i want to show you the function, the sector health of the s&p's 11 sectors. out, want to point financials up zero .2%, as well as information technology, down 0.5%. stocks have been much, much lower. over the course of the afternoon when janet yellen was speaking, and ended inlosses the green. technology was the reverse, higher in the day. as chair yellen started to speak a he went down to near session lows, down 0.5%. there are talks by som

ramy inocencio in new york., hong kong-based financial is looking to buy a bank in europe to diversify away from its london trading center. the ceo told bloomberg that pulling out of the eu would hurt the city. >> it is going to affect our business. we are looking at opportunities for acquisitions on the continental as we speak to establish a platform on the continent are self. it may well be that five years from now with more people somewhere in the continent, but it is yet to be seen. at persons ining the financial industries in and in what form it will be. it could be a bank. that is something we are very carefully looking at at the moment. >> france, luxembourg permanent -- luxembourg, germany? we don't need to put a flag in any specific place. it is more about finding the right institution that is the right fit with the right regulatory environment that allows you to expand into investment banking. >> you think london could lose its competitive advantage? >> absolutely. london is to start with a very expens

remy inocencio looking into this. but can we expect? ramy the bearer of good news, because bloomberg news is estimating the 34 banks undergoing the is stress tests are expected to come above the minimum capital requirement in case of a possible disaster scenario outlined by the fed. what does this actually mean? this is what it means on your screen. in a possible disaster scenario, equity prices as we know them could plunge by as much as 50% by the end of this year. as for unemployment, that soars to 10%. right now under 5%. the deals with the biggest banks, at least $50 billion in assets. to give you a frame of reference to last year when we reported on this, all the banks did do well, they all passed, all 33, but morgan stanley actually came up a little short. 4.9% in terms of the leverage ratio. the minimum is 4%. state street as well as bny mellon came in within 2% of the minimum as well, so they were also just under the radar. looking ahead, we are expecting results coming in at 2:30 p.m. eastern time, when the fed releases its results.

inocencio in new york and tom mackenzie in beijing. we have been talking about some of the reaction that has fed through from everyone from trump's predecessor to keep business leaders in the u.s.. ramyat's right. the reaction out there has been negative against what donald trump has done, taking the united states out of the paris climate deal, everyone from bob iger to richard branson to tim cook of apple and mark zuckerberg of facebook. in watching approximately 30 minutes, the announcement at the rose garden at the white house earlier today, it struck me that clearly donald trump was not speaking to an international audience. he was speaking solely to his domestic audience here. regardless of whether climate change is a domestic or international issue. let's go ahead and listen to that. >> the reality is that withdrawing is in america's economic interest and won't matter much to the climate. the united states under the trump administration will continue to be the cleanest and most environmentally friendly country on earth. senators as well as representatives who did some for donald trump have set the paris climate accord was a raw deal, but under that, mr. trump says he wants to r