and socgen.s well as unicredit and bayer. ibex trading up by 0.9%. looks like the peripheral markets will have a strong start to the day. cac up .6%. a decent session on friday after the u.s. payrolls data. we are also watching the data europe, europe, eastern turkey. what do the numbers look like? int: the number is coming bang and line in terms of the expectation. 12.15%. that is exactly where economists in our survey had forecasted. the producer prices look big. bigger than 21%. massive numbers. not out of line with expectations. the turkish lira. pay no mind to that big spike you see because that was about 30 minutes ago. it is the moves you are seeing right now. very little movement at all from where it had been. 4.65 lira for the dollar as the turkish inflation rate comes in bang in line with expectations. what still a question of the central bank does at what -- at its meeting later this week. guy: let us talk about what is happening with the banks. looking at the grr screen. you'll have b

so a tie up with socgen would be an opportunity to merge and build socgen's presence in places like italy and germany. again, no comment so far from unicredit. we'll wait to see if this terms into a bigger story. >> willem marx, see you soon. >>> in the past 25 years there have been 17 prime ministerial governments. we've had five presidents in america and germany has just had three chancellors. >>> still to come here on "worldwide exchange," disappointing for disney "solo" sinking at the box office has "star wars" saturation fillsunay nkn. >>> the latest on the developing story in hawaii. stick around happy anniversary dinner, darlin'. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dand grease isne. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley >>> all right. wel

he is french and once works for socgen. hours a day, powered by over 2700 journalists and analysts in more than 120 countries. i'm emma chandra. this is bloomberg. >> thanks. i want to stay on that story, unicredit and socgen. in response to the news, we heard unicredit's shares go up as much as 4%, but came down after that. we are joined now by our bloomberg opinion columnist in london. thank you for being with us. i guess my first question, both of these banks trade at roughly $.50 on the dollar on book value. when did it make sense to take two companies that are weak and put them together for a strong one? >> not now. i think this is great talk, it's a great idea, because obviously they have plenty of other reasons to get together. there's an interesting potential match, one is in the investment bank, the other in the pan-european corporate bank. there is logic here, but the timing is all wrong, and the fact is that regulators will call the shots on this. right now there is very little appetite for this. they want to tal

socgen is also trading higher.jonathan tyce, covers banks. , are we goingall to see more consolidation, and if we are, is this the one merger that make sense? just a bit more domestic consolidation. there's plenty of room for that across the eurozone. this is a lot more appealing intellectually. if you look at the retail overlap, you look at the need to -- they are both underperforming. politically, there's question marks for italy. there's question marks about would france feel about handing the reins over to an italian as the ceo. there's a lot of appeal to this deal. they need a bit more help. --ergies would be reasonably there are quite a few question marks. tom: congratulations on a terrific research note that you put together. who is the acquirer -- who is the acquiree? i can't figure it out? who is the acquirer here? i think they would dress it up as a merger of equals, but i would have to say the italian presence would be felt more strongly. socgen is still really struggling. months notmonths and turning th

>> the bank of japan, socgen, the eurozone is running this surplus. investors are hungry for yield we see this translating into net capital outflows the eurozone is a big buyer of these markets. at the same time the eurozone was attractive and will attract a lot of net buying from the investors given that the eurozone is still recovering >> bear ind they'rsaying everything they do is whether they have positioning. the other side of that dollar as well i can't understand what's going on on the european economyi loo. i have for the last 30 years the good, the bad, the ugly. i can't work out whether they're willing to tighten or needs to remain >> well, i think you've hit it really at the end of the day basically the ecb will taper and it's probably december or march at the very latest they'll stop buying bonds. when can they actually stop raising rates is the question. maybe at the end of the day draghi can get it back to zero before he leaves it will be very, very difficult for the ecb to normalize interest rates what we've seen is some evidence obviou

barclays, standard charter, here we are today with socgen and unicredit. they have denied it directly, saying no such talks are going on or taking place. it is portrayed as something that have been talking about for months and months. i guess if they are doing that, they are keeping their cards close to the vest. you would think some of that would leak out. i think the logic of cross-border merging and the the ceo being french, he used to work at socgen, there are reasons why you would think it would work. but as far as the banks -- what the banks have said and away they have portrayed their programs going forward, there has not been anything specifically about making that kind of tie up. but there are certainly some sense in making a bigger champion to compete with the u.s., for instance. much. ross, thank you so that is ross larson in rome with .he latest speculation from we have two new governments in place in spain and italy. we have investors redefining their perspective of risk in the region. let's start with the banking story. quick group ranked ret

he is french and once worked for socgen.aying the two would not be ready for at least another year. chancellor merkel says more must be done to strengthen the architecture of the eurozone. use summit, she said a successful economy dependent on a stable common currency. she and president macron have promised to offer a range of reforms on june 28 and june 29 including a comment you investment fund --, and e.u. -- a common e.u. investment fund. rossarning came as wilbur flew to beijing for talks. the two sides made some progress in agriculture and energy and china repeated its willingness to boost imports from the u.s. and other nations to ease deficits. donald trump's lawyer says the president authority to influence an investigation into his actions as brought if not quite unlimited. wroteite house legal team to special counsel robert mueller arguing the president could not obstruct the russia inquiry because he has the power to terminate the probe or pardon those caught up in it. rudy giuliani says such action would the dang

socgen says turkey needs to maintain its pro-market policy to extend its rebound. top of the charts in that time. of by 2%. 90 minutes into the session in the u.s.. >> things are looking pretty good. our gains are extending as we continue on through. on leading the way. i will note the nasdaq, the tech asices are really gaining the trade rhetoric has died down at least for today. i want to jump into the imap function. financials have been the lead with the stress test but look at what is going on in the energy sector. up now about one point 4%. we can tell the story will look at 70 chart of what wti crude is doing. you just heard from your guests in the last hour that over the last seven days we are up 13%. oil is a good story. the supply demand picture we are reducing our inputs. certainly helping the price of oil. that story can be told, exxon mobil is a stock i am looking at today for a few reasons. up 1.6%. from the big jump of oil prices and also we have a story out the algeria is starting to look at exxon and a partnership for foreign investment. exxon certai

socgen joins deutsche bank and others who have paid billions of dollars to settle such charges.e buddhist government elling in 7 -- british government is selling a stake in the royal bank of scotland, reducing holdings in decade after the financial crisis. the stake was with about six -- aabout 2.6 billion pounds. the government injected billions theounds into the bank, biggest bailout in the world. ramy: and the purchase of get l extend a transition away from a strategy of developing software in secret. the ceo has been trying to convince them it is ready to embrace the open source coding that the former boss described as a cancer that went against the american way of doing business. >> you think about microsoft, we have always been a developer first company. and now we are all in on open source. with that really coming together, microsoft makes a lot of sense to us. haidi: that is it for "daybreak australia" this morning. ramy will stick around. here is a look at what is coming up next. >> looking at the central bank watch in asia, you are just talking about the rba. r will be

socgen will pay $1.3 billion to resolve a probe into the bribery of libyan officials. drawing a line under two of the french bank's bit legal headaches. 1.5%, banks leading the decline today. growing more than forecast in may -- the economy continued a modest rebound since that slow first quarter which grew 1.5%. pmi rising to 54. if you bring the three services together, you have to suggest the economy grew by 3.4% this quarter after growing 3.1% in the first quarter. the outlook remains uncertain. new orders growing at their weakest pace since 2015. the brazilian central bank has intervened in markets 3.80. real reaches following the intervention. no word on how much the brazilian central bank had to intervene. it's all a little confusing. the current rates don't offer -- for political uncertainty. forecasts are falling following the recent strike. as a cheaper res not the best bet. abigail: at this point, we are looking at modest -- for the major averages. flipping between small gains and losses. the s&p 500 up fractionally. outperforming -- on pace for a record clo

it has been downgraded to sell at socgen.long-awaited meeting between macron and merkel -- beef up thegreed to role of the european stability mechanism. lloyd blankfein commented on the risks that italy now poses to the eurozone in the meantime. euros, notorrows in lira anymore. countries ines the europe used to protect fiscal policy. immigration are risks.gest ricks -- matt: for more on the specifics meeting weon-merkel are joined by our guest from berlin. how significant is this agreement? significant.retty when germany and france get together, it is hard for the rest of the euro area to resist . there had been these plans that were negotiated for months. they have come together with a set of measures in the budget and elements of the backstop and will disappoint some, there are many questions that remain unanswered. they have an agreement is so france and germany united is significant. guy: it does not feel like the macron plan. and some of the trickier questions regarding how the budget will actually work have not been ag

issues, how hard is it to combine across jurisdiction i mean, one of the great ones, uni credit and socgen, a combination of assets and different regulators in different countries and the winddown process that is still very different across europe surely, this would be a complex process, much harder than building a bigger bank in the united states. >> yeah, very complex. i understand there are some synergies in eastern europe, but very complex and you have to wonder why to a certain extent, i think, looking at the investment bank dominance in the u.s. being very large, you can imagine, put ourselves as a large corporate looking to do a big underwriting in debt or equity, then the larger the bank you're dealing with, the more confidence you may have, and certainly, the likes of jpmorgan and morgan stanley, goldmans, of course, the u.s. banks with a big u.s. market have really dominated there. so, i think that's a big factor, but yet, unicredit, it's a big leap of faith. it would be g leap of faith in the europe for societe generale. >> i can see the rationale by having somebody very large a

if you look at socgen, you will see 515, 550 by the middle of next year.f you see or believe in tv know, you will see some stability around the 440. it will come down to the rhetoric on inflation and central-bank policy, and that is where the market will be squarely focused, what is the policy agenda for turkey? it is expensive to hedge yourself. anna: we will have plenty of coverage from istanbul and analysis in the studio in london as well. let's talk about the broader market story and are trading still very much the focus of things. this is the picture on the msci asia, down by 4/10 of 1%. iran looking down even though the chinese market is holding its head above water. the japanese market is really to do with the japanese currency, we've had some moves in the yen, the yuan, the chinese currency, we have seen devaluation of the chinese currency, it is ramping up a little bit. the dollar,ainst the chinese cutting their reserve requirements, the banks trying to boost lending. we have seen some risk off sentiment in the markets to do with the yen and 10 ye

to point outwant that i was talking to phoenix kaelin earlier this morning from socgen and although she primarily at the fixed income side, she is not bullish over the medium or longer-term the lira or turkish stocks. there are some people out there seeing this as an opportunity to sell. take a look at european stocks more broadly. this is the world map w m go on your bloomberg terminal. you can see european stocks are down from italy around the iberian peninsula up through france, the u.k., and into the netherlands and germany. they are deep red. you do see turkey as a gain or this morning and some of the countries bordering turkey, as well. so it's not all bad for everybody. let's check in on the individual stocks story. for that we go to nejra cehic. nejra: i'm starting with two of the biggest gainers. i want to focus on and the because of talking -- nambu because i was talking about this on friday. a drop of 11% in two days. this has been the best performer in the past decade. it slumped over those two days after nordea cover the company with a sell rating, but now it's rated a new