we had the surprise interest-rate cut from the rba.t's australian equities rise and they are now holding at their highest level since october 27 last year. and a very solid session coming through from new zealand as well. this is what the regional index, excluding japan, looks like, down by .1%. the yen is getting very close to that 1.05 handle. this is the fourth day in a row that we have seen gains up on 6%. 1.05 is that line that the b ulls were calling for information from the boj. 1% dtodaydollar down at $.75. chaigneau is still with us. the pound has losses against the u.s. dollar. is this brexit for a dollar move? -- or a dollar move? >> there is a brexit reaction right there. if you look at the average of the polls, it seems that the "stay" camp has been progressing of late. you can see a relief rally. i don't think it is going to go very far. anna: vincent, thank you. coming up, it is the market open, the futures pointing to a flat start to the trading day. perhaps it will be a little bit stronger i london. n♪ anna: good morni

he has had a three decade career with the rba.paul: this will bring the curtain down on the glenn stevens era. saidutgoing glenn stevens of philip lowe he is the job. let us take a look at some of the other stories. have a look at an australian bank that makes two thirds of its money overseas. yvonne: macquarie shares, has seen a rise in its shares. 29% jump in full gear profits. net income number rose to a record $1.5 billion for the year that ended in march. this is because of a boost from what the business was relying on which was asset management and lending units. s to expand the business and shield the firm's earnings from trading. he is gaining from investors there's for assets with stable yields. the bank faces some challenges from rising defaults on rising -- on mortgages and the strengthening aussie dollar. about $2.40.d for looking ahead to the u.s. payroll later today, markets will be watching closely to see if the jobs machine remains well tuned and running. april's report signals it will stay that way with employers

dollar, the rba decides on policy tomorrow. no longer be the case. 1.75%, thisrd of comes after shocking data showing the first drop in her prices. -- consumer prices. 16th korea reported a straight monthly drop, more than 11% in april. march, current account surplus came well above estimates. and in china, the manufacturing pmi fell. it is still a little bit positive there. 53.5. like any good cooking show, the lasagna is out of the oven. if you look at a 50% probability that they might cut tomorrow, 27 economists say it will stay put. others say it is going to jump tomorrow. the aussie dollar says it is not going to raise rates anytime soon. it will impact very quickly. we will talk about the japanese yen after the break. here is where we are right now. it is pushing one of six. that is when the boj surprise everyone. that is where we are at at the moment. back to you. angie: coming up, hedge funds missed out on a gold rally. there does not seem to be a slow down anytime soon. details up next. ♪ show me movies with explosions

we had the minutes from the rba.nt with of the cut, but that is a sign they are an cautious town mode. in cautious tone mode. brexit, andg about all of those moves. that is your risk radar.a anna? anna: let's get the bloomberg first world news. aidi: speaking of the rba, broad-based weakening of the inflation pressures was behind this month's surprised interest rate cut. the australian central bank came out of cpi still the first quarter for the first time since 2008. the growth outlook does remain steady. analysts said the decision was k,t viewed as a slam dun that increases the likelihood of a follow-up move in june. a $260 million stake. soros has warned of risks stemming from the chinese debt. he says such a slump would worsen global deflationary pressures and drive down stocks. planning to increase its holdings in gold. uncertainty is surrounding the outcome of u.s. elections and the eu referendum. investment officer expects gold, silver, and copper markets to rebound to a level last seen in october 2012. deutsc

we are seeing a little pressure coming off of sydney, off to the rba cut -- after the rba cut.eeing the kind of class -- across energy and finance sectors. goldman expects to see a downside of 20% when it comes to hong kong property prices. land is down by 3%. the other big mover today is the aussie dollar, taking a tumble. could not be any more clear. rba cutting inflation forecast, 1% or 2%. really taking a nosedive. not moving much in terms of the u.s. job numbers. ♪ emily: welcome back to bloomberg west. let's turn to education and one man's vision to change the classroom with online tutorials, teaching everything from chemistry to cut kilis. -- calculus. now from mountain view, founder and ceo sal khan. great to have you. it has been over a year since we spoke here it you have record numbers of videos, tutorials, registered students. you must take on where you are now. looks like were having a little bit of trouble getting you to hear us, so i'll ask again. it has been just over a year since we last spoke, it is great to have you back. give us an update on the business. yo

back to you. >> rba cutting. the ubs, as the trifecta of bank earnings.dof that earlier, the index showing some signs of stability and some signs of weakness. a good reminder. we kept on saying the chinese economy has stabilized, and for the most part it has, that we have seen pockets of weakness, which is the headline right now. the survey of the private sector manufacturers in china, as opposed to the official pmi, which is the state-owned enterprises. it tends to be more bearish. they are a underrepresented >> part of the economy. >> down from the previous month? it is still below 50. it is the 40th consecutive month below 50, meaning pessimism outweighs optimism. the survey was for 49.8. new orders and also output declining from march. so, there are pockets of weakness. the official numbers -- two perhaps change the direction of the talk to her stimulus went and where easing went. do these numbers do that as well? >> i don't think so. i think the consensus is, if they will be anymore easing after six rate cuts, it probably will not happen from the pbo

how much will be rba, china?ly forces in that story, and you start to get china doing better or worse -- put the international perspective over top of it. >> when china is doing better, when the fed is dovish, 175 may feel low to some people, but it is high relative when commodity prices are stable. it tends to rise. what the army has effectively been doing is leaning against that. if we getory changes, back to a stronger dollar more generally, to a more hawkish fed, if that brings back some concerns about china, than i think you'll see another leg down in the australian dollar. my impression is in a disinflation or environment they will do nothing to lean against the. -- against that. guy: there is a chart that shows -- explain. >> em volatility hasn't got much of a driver at the moment. oil prices stabilizing, china's story -- e.m. volatility goes in jumps and then settles down. , volatility ist higher to some degree. then there is becoming in bowls; sterling bowls are flattened. you have had a big move in new

say aboute treasurer the rba cutting rates hours before the budget? paul: immediately, i asked him in the budget that there was a cut from the reserve bank, indicating underlying weakness in the australian economy and here is what he had to say. >> what it reflects is what i was talking about. they have an inflation target between two and three. they are seeing what has been happening in the housing markets here on australia and they feel they can start to move without risking it in that area. paul: the deficit -- the cut a timely one. angie: thank you for that. we are going to have some big guests talking about australia's budget later this hour. we will be joined by this bell when in fact -- kristen bell bowen in five minutes. and we will hear from australia's finance minister. headlines this wednesday morning, the overuse of trading calls and the chinese markets can be a key obstacle. found 16 polls believed sock. stock suspensions are a main hurdle to inclusion. 12% of companies on the shanghai exchange are currently suspended. wantsse prime minis

i think there is continuity with the rba.are one of the few central with the most internal people. i think it is a real strength of an institution that you do that. him to be similar to stevens and the way they think about monetary policy. , aread: the aussie dollar they comfortable with that? he gets high 70's, the heat is on, isn't it? once to bentral bank the chief currency at the moment. where the think about aussie dollar is in the context of commodities. we doabout now is when the evaluations, and if you look at the general performance of the economy, which has done remarkably well in the face of the steep declining commodities, it might decline of that as the year goes by. rishaad: great have you on the program. stop by again. >> pleasure. >> now to the stories making headlines around the world. the mystery of the egyptair flight has deepened with claims that debris had been found quickly denied. cairo said the material founder the greek islands came from the plane, but athens says that is not true. now the egyptair fl

and is the rba done? the aussie dollar surges on news of further cuts. who has the toughest job in banking? why aberdeen thinks it goes to joh john cryan. guy: looks like we will have a fairly positive open, around half of 1% higher. we'l talk about vodafone, about hugo boss, but the general tone in the market is a little bit more positive. we're up around 6/10 of 1%. here's the market open with caroline hyde. caroline: we are waiting for them to get galvanized. keep an eye on germany as it reopens. ftse called higher. we could be seeing the rally after the united states is bucked by oil prices going higher, and noticeably the technology stocks in rome. stocks increased by market capitalization at a debt of $18 billion. we are higher on the stoxx 600, up 3/10 of 1%. telecom services up, this is the imap function. you can see which industries are on the move in europe. the downside, consumer staples. performins not performing quites well. john cryan is having a challenging time, but oil has been helping to drive asia higher, and let's check in on oil, bec

yvonne: reading some of the minutes from the rba.ment is somewhat mixed so we will look for those numbers later. onle enjoyed a welcome lift news that warren buffett made a $1 billion bet on the company. su keenan has the details. su: apple shares stole the spotlight in the wall street session on monday. the stock jumped the most in months, up almost 4% after it was announced warren buffett company berkshire hathaway had taken a stake in the iphone maker to the tune of $1.1 billion. the gamble, wall street believes, hints at the company's confidence in apple's ability to create new product. there has been concern about the latest iphone. it is kind of a no-brainer, one manager said. he does not think it is a big stretch for berkshire which is a lot of cash. he also believes apple is relatively cheap and the kind of investment that berkshire likes to make. down 30% from the middle of last year even though berkshire does not typically invest in technology companies. although, we have seen them invest in intel. even after apple warned t

that is after we saw that movie from the rba.was a surprise to som that they cut their interest rates by 22 basis points. we have numbers from the aberdeen asset management. dollars,lion underlying pretax profits. the sn under management, $192.8 billion. the story is very much about the inflows and outflows for this company. they have suffered from more than two years of withdrawals, including $13 billion in assets, as appetites sour towards emerging markets. that is where this business has had something of a specialized interest. the ftse 100 was pushed back in march after it was pushed off after that market slump at the start of this year. boss of thist, the business, will be speaking first to bloomberg at 9:00 u.k. time on "the pulse." stay with us for that. let's get to the bloomberg first world news at this hour. we are joined from hong kong. reporter: hey, anna. we have underscore in pockets of weakness, with weak external demand. fell. policy makers are balancing the need for ongoing stimulus, while trying to shed excess c

the aussie dollar jumping half a saidafter the rba inflation was behind this months surprise rate cutrst reduction in the year comes after the cpi fell in the first quarter for the first time since 2008. annual core growth slowed to the weakest on record. and those are the headlines, told over 2400 journalists in 150 news bureaus around the world. let's get the latest as japan comes back online for the afternoon session. here's juliette. juliette: a good a good day across the region, coming back online and holding onto gains. a weekly gain helping things along, nikkei 225 up, heading on to its lunch break, the shanghai market, which has been underperforming. we had a switch out of consumer related goods, so off the session lows and, encouragingly, we have seen the hang seng back into the black after a choppy last hour. trade, you can still see petro china is among the best performers on the hang seng, and that is following on from this rally we saw in crude oil prices, goldman sachs upping its forecast monday for crude, the wti contracted to $50 for barrel in the near term. buying com

dollar today, sanction the decision by the rba to cut rates. this shows what really drives the aussie dollar. the blue line is the aussie, the white line is the rba commodity price index, that tells the whole story. commodities and the aussie dollar. had an impressive run in 2016, and as they continue to power higher, regardless of what the rba does, we see more strength in the australian dollar. if we weaken commodities, probably not much hope for the bulls there. that is what you want to be watching. alix: you can see all these charts and more on twitter. i do have some breaking news for you, cbs earnings crossing right now. still a solid bead, earnings share,in at $1.02 a revenue also coming in at $3.85 billion, also above estimates. entertainment revenue, kind of $2.6 billion. the cable network revenue, light at $225 million. but a local broadcasting revenue higher than estimates, at $649 million. all-time income at an high of 14%, revenue up 10%. it appears like the stock continues to fire on all cylinders. we are picking that up and after

interesting part of the rba statement for me was that like the imf and the world , the rba is lookingt a global growth picture that is slower than expected and being revised lower. that presents pretty serious challenges for australia. when the mas said that last month in singapore, there's another economy very much dealing with global headwinds and they are at the mercy of what the global trading markets are doing right now. global growth is maybe not as buoyant and strong as we thought even a few months ago. matt: showing currency moves. this is a five-day picture of the u.s. dollar against the g 10 currencies. is can see the aussie dollar the only one that underperforms the greenback. but theknow about you, story really isn't in australia. it's the amazing moves of the yen and the euro. this divergence still can't stop a dollar drop and yen strengthens still blows me away. jonathan: we were sold a story that there would be divergence. the fed has completely backed away from that. look at the renewed dollar we is. -- weakness. equally so for draghi? >> absolutely. japan and the euro

a new governor at the rba. aside.tevens will step he will be replaced at the astral he and central bank. are you ready for trump? investors should prepare for a debt driven donald presidency. and stocks fall as the prime minister in turkey loses his power struggle with the president. the market is about to open in istanbul. things willyou how set up. half an hour from european equity trading. let's take you to the calculations. the ftse 100, a bunch of stocks. ep the main one to keep an eye on. we need to show you the aussie dollar. clearly, the change at the rba is one of the talking points. rates are at a record low. keep an eye on the lira. that is what is happening. a massive move yesterday. we have a press conference at 11:00. trading up 2%. the hang seng down. his market, just opening. ahead of the press conference. we will be covering the story throughout the morning. we will come back to that. let's get you your news. juliette: optimism still outranks pessimists. earlier, the china council meeting said

that note from franklin templeton due to expectations of an rba move cutting interest rates and downside pressures from china, seeing the aussie following under 70. let's get a look at how the equity markets are reacting, because sydney has been sitting lower on morning, in fact extending losses, down six cents of 1% on the back of that better-than-expected jobs report out of australia. asian investors .ulling these fed minutes there seeing upside on nikkei 225, the yen the weakest in three weeks against the dollar, the dollar surging to a seven-week high. also, keep in mind japan, a lot of investors and analysts saying the yen has been overbought, shares oversold, so you're looking at a track evaluation's that could be picked up right now. we are seeing some buying coming through. elsewhere, a down day. deflationaryown pressures at the factory gate continuing to play out for south korea. in shanghai, stocks falling to the lowest in two months. yesterday, flat, hong kong down .t 0 of 1% a bittheast asia, quite of weakness, selloff in emerging markets currencies and related assets in the

a new governor at the rba.s will step he will be replaced at the astral he and central bank. are you ready for trump? investors should prepare for a debt driven donald presidency. and stocks fall as t p

the rba will be online in about two hours time. gold is doing this. 1300 -- $1300 yesterday. we are still up about .25%. we saw it drop yesterday after asia closed into new york. vietnam and japan. these markets are just opening up for the first time this week. .7% lead by the bank there. look at thee a bank, it is up just over 2% in a lowestmarket despite the cash market in almost six years. paul, what is going on here? paul: the story of bad debt. as you mentioned earlier, bad 918 million up from the previous timeframe. that is behind the 24% drop in the profit. a big miss as well. analysts got 2.7%. not a great result. here is what the ceo had to say -- >> we are undertaking a significant rebalancing of our business to drive fundamental value improvement. we believe that the adjustment to our ratio to 65% provides a more conservative and sustainable base dividend per share. paul: dropping down to $.80 as well. shane elliott saying the result is a challenging timeframe for banking. rishaad: you are there for the project later on. -- the budget later on. does the government

deflation and the consumer price index and the weakest gain on record for core inflation which the rbao keep between 2% and 3% on average. the currency has risen by 15% since mid january. it could further restrain import prices in australia. that is the big move today. australia cutting interest rates to a record low. francine: thank you so much. now, ubs first-quarter profits fell 54%, missing estimates. as all divisions reported a drop in earnings. guy johnson spoke to the ceo. he started by asking him whether the market should be disappointed with the results. >> if i look at the kind of market conditions we have been operating, those results are resilience. most important, we have been doing that while keeping the opportunity and the possibility in a more normalized environment to deliver stronger results. so,i think that, overall, of course, last year, i would say that considering the environment, i am pleased to see how we operated. pretty much warned at the conference in march that things are going to be tough. that you should have been more clear at that point. >> i think i was

we had a cap in for the rba since the beginning of this year.urprise was the inflation numbers. the key story there is that although growth is holding up fairly well in australia, we are succumbing to a large degree to the fact that the world has got low inflation and low interest rates, so the rba is needing to cut rates because domestic conditions are weak because global inflation as as low as it is. -- is as low as it is. should we not be concerned of a house price move in australia? paul: there are enough of measures to slow down the housing market. they started tightening the screws on lending standards from 2014, and we have seen evidence that the housing market has pricesdown her and house nationally have tracked sideways since october of last year. judged they feel they can cut rates. tom: your bank -- i want to give you a major -- led by steve major's, hsbc has been way out front. james steel with a bullish call on gold. you guys have been on fire versus the other major banks. this is to you as well, atul -- are you the canary in the ir

this is the headwinds, the challenge that faces the rba, like many central banks, hit by this global disinflation. this chart goes back to the 1990's. as a result, you saw the aussie on the move. let's have a look at the risk radar. real weakness coming through in the aussie as a result of this move. yields on bonds lower. three-year yields hitting a record low in australia. eight-week low on the australian currency. the big question, whether the central bank will do more to sperry inflation. i've got the dollar index pretty flatness hour, but it is of course jobs day in the u.s. headed for its biggest weekly increase in six months. the yen increasing against all major peers. wti at 43.84. let's get to arcelor mittal, getting numbers from the steelmaker. this is the world's largest steel maker, contending with slumping prices of the material and the fall in iron ore prices. millionarter $927 against an estimate of $924 million. broadly in line. the other numbers, net loss of 0.2 billion u.s. dollars. they see themselves being free cash flow positive in 2016, repeating their forecast.

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 of abenomics. oldman jobs is cutting jobs in cuttingrity unit, roughly 10% of workers according to people with knowledge of the situation. the dismissals in new york and london build on cuts that had targeted about 8% of fixed income personnel last month. news 24 hours a day powered by 2400 journalists

this is the rba's first policy citing lower inflation,

this was up 2%, giving back half post rbaday's rba, boost. 5.4%.ointing this out earlier. let's check about where we are as far as stocks. 8% now, as well as these other metal producers in australia. i will not go through each one, but one is higher. just to get that up, if you are curious, up 1%. let's flesh out these opening levels across the chinese benchmarks in hong kong. we have the hang seng, tied a deposit, china eight shares, these declines. these are levels at the moment, 3000 still. we are having trouble raking in and staying above 3000. eight shares have been sold off quite heavily. we are now 300 or so points below at 9000. i was talking about australia, look at the big names we are following. and looking at the banks, big boost, giving up most of those gains. spot as far bright as data was u.s. car sales overnight. if i remember correctly, it key of voters had the -- kia motors had the best. a little bit of improvement in market share, not unlike hyundai motor, which had a drop in sales volume. taking market share down two percentage

the new rba governor won't have long to settle in. inwill succeed glenn stevens september, and jpmorgan says he may have to cut rates to 1% or less in his first three months after the rba admitted it will miss the bottom of its core inflation target this year. the commonwealth bank of australia has declared on unaudited third quarter cash profit of 2.3 billion aussie dollars. that is $1.7 billion. the bank joined its competitors in reporting higher changes -- charges for bad or doubtful debt. the debt charges rose to 427 million aussie dollars from 256 million a year earlier. hasgreek government says it enough support among lawmakers to approve pension and income 6.2reforms as part of a billion dollar package to secure further aid from the imf. parliament debated the issue the day before finance ministers are set to review the status of the bailout. they are going to consider whether to release the second installment of the $90 billion rescue package following a six-month delay. crude is on the rise this morning on the back of fires c

david: you had the rba cut rates. growth and inflation are still not where you need them to be.aniel: we are focused on ideas and skills. you cannot build a modern economy or transition economy until you turn your challenges into opportunities, giving every single citizen the skills they need for the job they want. and the knowledge base that a changing economy needs. we have to be much more assertive reaching out to the world. we have to get things right at home as well. that starts with good skills-based education. the most important thing is to be clear on what you want to do and waste no time doing it. that is what the market wants, what voters want and what a stronger future is absolutely based on. david: my exclusive interview with daniel andrews. shery: julie hyman has a check on some company movers. julie: a lot of deals that have great plainsd -- energy buying westar energy for billion.lion -- $8.6 we've seen a lot of futility deals in the past year. this is the latest in that streak we have seen. there's been a flattening of electricity demand. that's why we've seen a

rba is in blue. purple, thailand. the orange is the benchmark rate in taiwan.y i will not get into details, treating it fairly rural -- low rates. no one lives in a vacuum. obviously what happens elsewhere impacts what happens. these are key expert in countries as well. they export different things. yvonne: thank you. let's get more reaction from young sun kwon. i know you did expect no change. how much longer can they afford to wait? believe thatn: we the ok will cut interest rates in july. this is because what happened in korea now is the government has pushed hard on corporate restructuring. that means, we believe there should be an extra budget for fiscal year 2016. we expect the government to asounce that in july as well the capitalization plan for the policy for bank of a korea in relation to the corporate restructuring. we think the monetary policy easing will be part of this stimulus package. it is something overtime. we believe they will work on the interest rate in july. yvonne: maybe july. let's talk about the corporate restructuring, we see the aili

scott morrison delivered a budget he says is focused on jobs and growth just hours after the rba cutor the first time in a year. >> the government came up with a plan to reduce the deficit to $6 billion by 2020. it does rely on some rather optimistic assumptions about the price of some commodities including iron ore and growth forecasts. not a lot of money to give away. it was really more of a document designed not to enough -- offend in an election year. >> puerto rico will default on a bond payment. the consequences, weaving grappling with them. >> what has happened is the government development bank will default on this may one payment. made thenment announcement yesterday in a televised address. now what happens is there is an agreement with some bondholders but unfortunately the island faces an even bigger payment by the $2 billion. >> what you think will happen? >> it will be a lot of negotiating going on between the bondholders and puerto rico. puerto rico really wants to get this broad, global restructuring done with a lower their $70 billion debt stack. whether they can do t

name at the top of the rba,

as well after we closed at six-month highs yesterday on the back of that 25 basis point cut by the rba is somewhat in a holding pattern broadly in terms of market sentiment. i would add that sentiment remains quite fragile and the rally we have seen in emerging markets isn't backed up by the understructure structurally, given the bad situation in china. >> sri, good to see you. thank you very much. >>> here in europe, shares of sanbury, shares off by 4%. the supermarket posts its second big profit declines. despite this the uk supermarket showed some resilience with underlying pretext profits of 570 million pounds coming in ahead of forecasts. >>> and the next shares will deteriorate any further. the stock has fallen more than 25% in the last two months. the managing director of global retailer william blair joins us now. it's like walking up the down escalator, and the shifting spending habits. they've got a tough time, haven't they here? >> sure. next -- good morning, thank you for having me on the show again. next has been a visionary leader on the uk sector over the last decade. wh

. >>> the rba, the reserve bank of australia cutting its key cash rate by 25 basis points to 1.75%.his happening ahead. budget announcement and the looming announce. sri jegarajah joins us out of singapore. that was a surprise, sri, are they cutting more now? >> that's a big question. actually in the beginning off of the easing cycle here and now the markets like this 25-basis point cut and week lows. a six-month high. if you look at the australian benchmark, 5053. aussie dollar got crushed as well. at one point we were down by 1.5% against the greenback. and i wanted to talk about china as well, you touched on this, lou. we saw the 14th straight month, that's what the private manufacturing surveys told us for the month of april. the marketing interestingly, brushing this one off from the idea that this builds the case for more stimulus being a cut in the benchmark lending rate or a cut in the triple r. if you look at the maven markets in terms of context this is the best day in nearly five weeks. let me just remind, this was not a conviction rally. the volumes were not behind this

the aussie dollar in focus after the rba governor gave no signal that we will see more rate cuts andtralia. the weaker -- rate cuts in australia. aussie dollar -- guy. guy: juliette saly wrapping up the aging session. -- the asian session. muchs are watching, very focus on deutsche bank. "a2."" to the stoxx look like they're going to open down. we continue to work our way through the end of the week. janet yellen could be the big story. how much focus are you putting on what the yellen story is going to be? jean: i think it is important. i think the fed is in an uncomfortable edition. -- uncomfortable position. the economy is not that strong. [indiscernible] it is a very tricky for them. guy: he is go to stay with us. the market open, next. ♪ guy: good morning. i'm guy johnson in the city of london. the start of european trading. here is your morning moody's his worry that it will hit crimes turner plan. you have the latest from frankfurt on this story. seo doesn stanley james thurman that he expects a lot of upside after a charging c-1. governor mark carney is back in front of the m

is said toer the rba face risk of rate cuts to 1%.onetary policy eans consolidation will be much slower. this follows negative interest rates, which could be slowing growth. proving popular, even before it is opening. the company has a trial opening and pulled in tens of thousands. disney's five point billion islar -- $5 billion resort expected to be a success. guy: let's talk about what has been happening in london this morning. david cameron has been down the road at the british me sam, talking about white he thinks -- down the road at the british museum, talking about why he thinks th britain needs to reman in the eu. we get to hear from the bank of england. that will be an interesting one for mark carney to have to deal with. how is this being viewed over in berlin, caroline? as we watch the debates developed, what are the germans making of this? caroline: it is quite notable that the finance ministry went against was being out -- and was speaking out against the u.k. leaveing the eu. world leaders want to see the u.k. remain part

rba admitted they probably missed the bottom of the core inflation target this year.y's new shanghai theme park proving popular even before the official opening. it has pulled in tens of thousands of fans. forey is opening the resort the growing middle class. that is your bloomberg business flash. back to you. anna: thanks for a much. crude prices are on the rise. wildfires in canada's oil-producing region knocks out nearly one million barrels a day and it is threatening to spread. how will higher fuel prices affect the aviation industry? joining us now is a managing director, robert. great to have you on the program. we know the conversation about the aviation sector and the oil price. let's talk about where you think oil prices are going to go. you are from canada. you have some insight or views across what is going on there. robert: great question. i had to speak a few weeks ago in miami at a conference in part of my speech was talking about the forecast. what the market makers and the u.s. energy information is talking about over the next eight months, we are look

we have a decision out of the rba tomorrow. 1/10 of 1%. we will come back to the market shortly. let's get you caught up with what you need to know. >>hugh hughes calling off the merger. they met antitrust resistance in the u.s. and europe. halliburton must pay a termination fee by wednesday. paymentthing on a bond later today -- it can't pay its debts. thegovernor warning that government development bank would miss its obligation and called on washington to help. last week, movies said any oody's said any nonpayment could still lead to default. buffett has taken aim at hedge funds again at the annual meeting of berkshire hathaway. said they have masked things for years. the group underperformed. franklin templeton increasing its development -- its investment in brazil. the executive chairman of the fund managing emerging markets about the study. >> i don't think it is fully priced. i believe, however, we have seen a big rise from the low point. if you look at where we are headed from the previous highs, we have a long way to go. 100%, 200%? >> we would go up in brazil. we would

the rba's first easing.ow inflation and subdued wage growth as well as the uncertain global outlook. the decision was not expected. as a result, the aussie dollar fell sharply on the news, but australian stocks rallied more than 2%, but that did not move to europe, which is down and we're down here. but we were up yesterday. >> here is what's making headlines this hour. drug maker pfizer reported quarterly profits of 67 cents per share beating estimates by 12 cents. revenue beat as well. pfizer raising its full-year earnings forecast. you can see the premarket it's higher by 3%. >>> u.s. automakers will issue april sales numbers today. analysts expecting an annual sales rate of 17.3 million vehicles up from 16.6 million in march. >>> health care data technology companies ims health and quintiles are combining. the shareholders will get .4 of a quintile share. would that be 8 that they now hold? >> i remember one of our anchors, quintilees. >> they'll own 51.4% of the combined company will have a market compa

there is, we think going to be further easing by the rba. we do like a higher swedish krona. you look draghi, he does not have an easy job. kamal: when you look at the euro, qe has diminished and we do not expect any said that the can -- significant move in euro-dollar. that will be premised on if the fed steps up to the plate instead of if the ecb issues more quantitative easing. tom: if the swiss franc's litmus paper for the system, explain that. kamal: we have been challenged slightly in our view that the swiss franc would make some strong gains headed into the eu referendum, particularly as the risks around the referendum are localized but what we are seeing according to the data that swiss equity funds are showing outflows. we think that could be driven by the forthcoming ecb corporate sector program where according to our credit strategists, we are seeing significant inflows into the investment grade world. against a backdrop of a swiss economy is still in the throes of deflation, where growth is still very mediocre, and of course where we have negative rates. that is t

this is why the rba cut rates. we think they will have a surprise rate cut then. you drive a ferrari and there is the romance of fx, but over to the real economy is what matters. of mentioned the dynamics australia. even though we have a better economy in the united states, how lonely are we when we look at global gdp? steven: unfortunately, i don't drive a ferrari. i think this is a key thing. when you get back to the global scenario, it does not look fantastic. the biggest driver is china. there is stimulus coming into china. we don't think it will be sustainable. we think the impact of chinese up commodityg prices will be short-lived. tom: thank you for your patience as we look at the continued news . i want to show you what we use internally at bloomberg. aggregating the bbc and others. we will continue this story. ♪ . tom: say june 6 times and markets move. this morning the dollar is busting out all over. june 15, decidedly a live meeting. american decline is coming. the wall of worry is your opportunity. of u.s. trust says, don't bet against america. this mo

look at the rba, how they dismissed the china pickup altogether. it's not sustainable.ed to rebalance her own economy. they cut rates. that mood is prevailing. francine: thank you for joining us today. adam posen stays with us. coming up, we will talk with adidas ceo herbert hainer at 6:30 in new york. this is -- this transatlantic show sometimes does that work. i do not know how to pronounce adidas anymore. ♪ tom: 24/7 we are on the market right now. francine lacqua noting europe in.ng yields coming equities were flat when i walked in the door. we have officially moved from that -12 dow futures. yields have reversed the good feeling of the last 12 hours. euro-dollar is weaker. we have got to important guests. euro does nothing and renminbi part of the emerging market meltdown, modest meltdown. i overstate that. nevertheless, an interesting nuanced take now, fran. francine: after seeing a few european banks missing estimates this week. generale reported an unexpected improvement in profit. french banks, i would not overstated, it is maybe not a lot better than better --

the rba is looking a lot more dovish than just a couple weeks ago.ury yields are 1.74% on the 10 year. year, 110 basis points, just 73 basis points on the u.s. two-year. 80% of the way through earnings season so far, so we will get an earnings wrap with matt miller. matt: we are pretty much done here. we have a drop of about 9% year-over-year. the first quarter is very weak as far as an earnings growth was concerned. want to mention ea real quick . this chart is amazing, so check it out in the bloomberg. what this shows you is a look over the last basically 40 years. the blue line is nonfarm payroll. a massive dividend to the overcial crisis, backup 200,000. does the job number follow? megan: we are just over an hour away from the nonfarm payrolls data. ward.with us is howard howard, let's talk now about where you actually see opportunities in this market. single out some stocks and sectors that you believe in such a difficult to predict market that there may be room to grow. howard: i sort of look for names with growth, perhaps stocks that did not d