driving home the message. ecb vice president says the central bank will do whatever is needed to ensure price stability ahead of the minutes due later today. >>> in the u.s., fed officials seem to be backing away from an april rate hike, pushing the dollar to a 17-month low against the yen. >>> and, well, it could have been worse. marks & spencers trade higher after clothing sales fall less than expected, but the new ceo says performance is still unsatisfactory. >>> and samsung eyes a 10% jump in first quarter profits on stronger smartphone sales. >>> good morning and welcome back to "street signs." well, it was another fed-fueled rally overnight on wall street with all of the three major indices ending sharply higher. let's take a look at how we're set to open. just off slightly. relatively flat when you look at the implied open here. but remember, the nasdaq did close with its highest level of the year. so a lot of renewed optimism when we heard the fed is not even really considering an april rate hike and pushi

the ecb is paying banks for them the real economy and borrow from the ecb. s the future of the policy package that should support the banks. they are trying to mitigate the negative impacts of negative rates. hans: let's send you t frankfurt and pretend you are mario draghi's advisor. you are prepping him. what is the most dangerous hazard you would want him to avoid in a press conference? rederik: it is difficult to say. i think you should stay calm, confident, and consistent with the message he has been sending over the last few months 10 quarters. -- few months and quarters. i think you should stick with his message. so, no stress and be very proud indeed, draghi. guy: we believe that there. thank you for taking the time to speak with us today. frederik joining us out of geneva. we are going to talk oil next. it is nearing a five-month high and u.s. production is falling. we are still dealing with the details of what did and did not happen in doha. let's get the director to say the bloomberg. this is the vw stock. is rallying very sharply once again. 11%-1

. >> here at the ecb we're expecting mario draghi to comment on the latest german criticism of negative deposit rates. finance chief has said these rates must not stay negative for long. a must watch ecb meeting here in frfrt today. >> a bout of motion sickness for investors on the crude priced roller coaster also leading to cautious trade here in europe. the euro largely range bound. >>> not surprised. weak first quarter results trigger a sharp fall in the share price. and hans vetsberg later in the show. >>> plus later on "street signs" i'll be tackling england legend and arsenal invince al sol campbell.ible sol campbell. >>> good morning. a very exciting show for you. first let's get a view of the markets an hour into trade here. of course investors are teeing up for the ecb meeting. as you can see investors cautious ahead of the meeting. stocks are relatively flat. despite significant gains state side overnight that carried into asia largely due to gains we saw in oil overnight which have paired back a little but again a lot of the investors digesting earns and this is the view as w

this is how you do the news conference with the ecb. r right now 11333, session highs up one third of 1%. retreating from a five-month high, $44 and $.12. minutes, it is all about the ecb. leaving the asset purchase program unchanged. euro ahead of all of this. guest. mark, i want to start with you. the focus of the news conference will all be about, it seems, the corporate debt program. how much will they buy and what will they buy? my first question for you, do we face the prospect the ecb could buy non-euro, u.k. and u.s. issuers? >> they could. the expectation is that they will start buying in the next half. five to the into 10 billion. this is important because it is the first time the ecb has done this. this will have an impact on the market. we have seen credit spreads tighten significantly as they are front running the decision. we could get more details in a half hour. this is a dilemma for all investors in the world because 75% of german yields are negative and yields are 75% of the japan bond market negative as well. searching

for the ecb was a big deal. l about the corporate bond buying and getting more clarity about that. i think the ecb kreb believes it is putting out a whole raft of measures which are baring fruit. i think they are on hold until september and the brexit decision then and will decide what to do next. >> a rough start to the year here. do you think there is an acknowledgment at the ecb that they have limits to negative interest rates due to the impact on the banks? >> they certainly have limits but they are not at that point yet and again that's been made very clear by mario draghi yesterday. vice president and peter pratt. minus .4 is not necessarily the floor base. so really sort of telling people they could cut rates further. and essentially the margins of the banking went up in 2015. there is a limit to how far they could take rate lower but they could go lower from here. and introduce two tiering. at this point they don't have to. >> the ecb doesn't act as an island. they have the fed to consider and here we hav

the ecb's mandate is to deliver higher inflation. t inflation is well-known to present -- well below 2% puts the problems in their limits. draghi was very clear about that. any meddling by officials need not stop them. anna: valentin, thanks for joining us. that will do it for "countdown." we leave you with the "on the move" team. ♪ guy: welcome to "on the move." 7:30 in london, 8:30 in berlin. i'm guy johnson alongside caroline hyde in berlin. telegraphing his views, president obama urges britain to stay in the eu. does his intervention change the terms of the brexit trade? strikes a deal over its emissions cheating in the united states, but is the industry now being caught up in the scandal? watch

highest level at the ecb. i think no one can deny that e the -- >> but the point is you're putting your finger on the pulse and saying, need to do more when necessary. >> this has been said for all the countries. the supervisor has given itself an agenda for the year to come. part of that agenda is to look at the level of nonperforming loans in all the countries. as an outcome of this monitoring, some countries will receive recommendations which might not be the same as other countrie countries. >> reporter: there >> there's also been pressure put on as a result of the panama maker leaks. what action are you taking, will you take as a result of this? >> i think the supervisor has to look into compliance. now you know that banking supervision that has been transferred to the ecb does not include any money laundering, does not include counterterrorist financing, does not include -- but of course a bank which does not comply by those rules is a bank whose future is also in doubt, and where we will have to look at

the boj picking up where the ecb has gone. to focus on credit rather than the fx rate. how long will it be until kuroda starts to shout for fiscal stimulus? thisrd: i think the fact manufacturing pmi number below 50, contractionary, it just underscores the scope of the challenges facing the boj, and those challenges aren't dissimilar to what is facing the ecb and other policymakers globally. fiscal policy needs to be part of that conversation and i think the difficult decision needs to be made and monetary policy should not the only game in town. .uy: jon ferro is back later he will be on the radio with me in just a moment. richard jones joining us as well. the conversation not going away anytime soon. germany also very much in this debate. draghi kicking back against schaeuble. we're going to carry on that conversation. michael fuchs is going to be joining francine on open the pulse." we will find out how the germans feel about mario draghi during that conversation. the car sector also in focus. maybe michael will give us a v

of course, mario draghi asking for the ecb stimulus measures to work. that is having a clear impact in places like the currency markets, we know that mark will ve more details on the euro. here is the dollar, looking at the bloomberg index, you saw as drug use speaking, we have a rebound back up 1/10 of 1%, also, looking at a movement in oil prices. down, still above $43 per barrel. that is the mario draghi ripple effects side of the region. companies ine 109 the s&p 500 that reported earnings. is a looking at the bloomberg. it is hanging onto a gain of 60% of the companies beating estimates. here, you have the earnings. you have the drop. let's take a look at some of the earnings. you had union pacific. it had volumes down in the rail industry. said second-quarter earnings. increasing sales. southwest turning around. ,n the downside today travelers, the insurance company first order profits are down 17%. imagine as you can see, things are evolving even as we speak, biogen had earnings beating estimates. issues willng labor put pressure on the second qua

a bold oil call from the eia. and an ecb meeting. >>> new this morning. volkswagen expected to buy back diesel cars in the u.s. and pay owners a billion dollars. >> and the country is going crazy about currency. the u.s. announcing new $20 bills will feature harriet tubm tubman. and alexande hamilton will stay on the 10 and social media is blowing up this morning around that. "worldwide exchange" begins right now. ♪ ooh baby baby ♪ oops i did it again ♪ i played with your heart ♪ got lost in the game game >> good morning and welcome to happy throwback thursday. britney spears, vintage 2000. >> and we are going back to the start of 2000s. early. got a nice brit song coming up. let's get to the market action. we'll do so in a few minutes but first let's go live to greece. the olympic flame is being lit at the site of the games in ancient times. the torch will relay that ends in re dangrio de janeiro in aug. there you go. >> finishes up early august in brazil. getting ready, which we of course have complete coverage on nbc of the olympics. >>> to the markets.

weigh in on the ecb this morning. o you think he will be playing up the need to do more because inflation is still well below target? he is focusing on doing this already, and looking at the data that is improving your the eurozone? i think you are spot on. it will be quite balance. i think he realized that when he kind of said that is it, that might be a bit of a verbal mistake. but i think he will be balance. in particularly, pointing to the this idea that you get paid 40 basis points for new lending. and we haven't seen the impact of that yet. and he will say, look, we are going to do more. i do not think he will get drawn. asking about helicopter money, i don't know if that is going to be -- someone had asked that. the bloomberg journalists, but i don't think it will be drawn particularly. corporate bonds have not really started yet. but really, you have to say, since the last meeting, and i was on just before talking about corporate bonds being included, and they were, the risk market has done very well. we don't

we are also getting some news from the ecb. ey are saying that lending conditions for home loans have improved. the negative rates have hit the banks with profitability. they have said in the past that this would depend on how long they would be in place for. we have good news on the fact that kiwi may be working but not as well as we thought it would get we have a bit of china brewing. -- it would. we had a bit of china brewing. derrico with the event risk that with theed -- derek: ient risk that have passed -- think the fact that it remains so resilient yesterday is an indication about the crude oil supply versus the man's story. -- versus demand story. there appears to be optimism on the demand side. clearly there is still demand their at this level. -- still demand at this level. it should've resulted in a bigger liquidation. the broader financial market conditions, and you mentioned china. the data we have been getting from china coupled with the policy steps that have been taken by the chinese authorities during march is i

>> well, i think the ecb is responsible to take a european view on the euro area as a whole. it's not responsible for individual economies. of course, for the german economy, the expansionary stance would not be needed to display strong growth. what carries the strong growth performance of germany during the last years is the strong labor market. we have reformed our labor markets -- germany has reformed the labor markets to become more flexible. that has helped gh eed germany german labor market through the crisis. this of course is the backbone for private consumption and strong domestic demand. our weakness, germany's weakness is investment demand. here the predenies for making germany a more attractive place for business investment. >> germany, like a lot of other countries, in the mid '90s would have 25% levels of capital reinvestment. they've fallen into the teens. is it supply or investment or demand for investment? i suppose this gets to the heart of the question we have about the banks and what their role is. >> well, i think it's the attractiveness of germany as a p

if you look at the sequence of , in the ecb, the last was the ideawanted that the ecb will do anythinge meeting in june. he will take it one meeting at a time. the april meeting -- the signals coming from the meeting yesterday was that for the time being, things are good enough. he is basically guiding markets towards looking past the june meeting, perhaps the july meeting, and more likely to the september meeting. at that point, markets need to be compared to do more. but the idea is to temper expectations. look at other central banks, see what they do, see what happens to the brexit vote. for the time being, they are on cause. -- on pause. manus: and the next piece would be buying enough corporate bonds. what i want from you is an indication of the scale, they euro scale, in terms of having a real impact. inhave seen a massive runoff corporate bonds. a huge rally in the corporate bond market. what do you think of the scale needs to be to have a real impact in the real economy? marchel: you are right. effect of announcing the measure is sometimes as big as when qe takes place. the eff

guy: interesting to compare and contrast the ecb and the boj. joining us out of frankfurt. stay with bloomberg television. don't miss our all-star lineup from the workshop. we will be speaking to all over blanchard. -- oliver blanchard. they will be joining us from the shores of lake como. apparently it was a little chilly later -- earlier on today. looking lovely now. i will hand you over to another italian, francine lacqua, up next with "the pulse." ♪ francine: european stocks gain. as currency volatility heads towards a five-year high. prime minister david cameron admits he owns shares in an offshore front, we talk about the panama papers and brexit. welcome to "the pulse" live in london. i'm francine lacqua. so,

-- marcel coal the ecb -- inflation is around the euro. b targeted below 2% to the ecb has to act to protect its credibility. i would not be surprised if in the next half year we see more easing steps by the ecb. benu: how worried should we that inflation expectations are coming down in europe? ecb or reaction from the will it be same old same old? marcel: inflation expectation is the most important indicator for the ecb to look at. it shows us something about market expectation, the trust that markets have in the ecb to the fill their mandate. at the moment, it is deteriorating. we don't see the euro area coming out of the crisis for the next two or three years. therefore the ecb has to keep acting. will also clear the ecb not be able to do it alone. we have a massive problems with the banking system. in particular in italy. it created more than $2 billion in nonperforming loans. we have that in your. .hat is a big -- in europe that is a big impediment to growth. we have economic growth -- economic slumps all over the euro area. guy: we ar

the ecb is jawboning. ot draw the -- today saying policymakers will not surrender to excessively low price growth. the central bank is ready to do what is needed. the inflation expectations have been rising. 1.42% highs of last year. -- we ignored the pounded the last week or so. volatility is on the rise. level, implied volatility, which measures the exchange rate euro-pound over the next three months. at its highest level since 2009. we can't get away from the upcoming referendum with less than 80 days to go. volatility continues to climb. we are not at the highs of 2009 when we were roughly at 21.979. at the way we are going, how soon could it be before we reach those 2009 highs? will be hereens, i to chart it at and be on the referendum. betty: normalize any well. [laughter] from thees are out ecb. he went through some of what they showed. they showed that policymakers do not rule out the possibility of a further rate cut or further rate cuts deeper into negative territory. mark: now joining us for a de

that is been one of the decisions from germany against the ecb. at is something that mario draghi may have to respond to today when he -- whether he refers to the riksbank are not. bloombergstay with for more on that topic. we speak to the governor of swiss -- of switzerland's central bank. we will bring you that ecb decision. it will be followed by mario draghi's has conference from 1:30 u.k. time. let's introduce our guest who is going to be with us for the first part of the program. she is karen ward. karen, great to have you on the program did thank you so much. there is a lot of qe, that if -- they say it is working as much as it can. yellen the saying it is useless. you should have done more from the start. karen: that is what we are likely to hear draghi try and divide us some evidence. they may think they are going to highlight is we need to take account. that is their main criticism of people that say it did not work. the ecb has been working on this to try and generate some stats. it has developed this much. it has given us this much infl

anna: does that mean the ecb is on hold? we got a piece of the press speaking in this newspaper saying that negativity rates cannot keep going to much lower levels. a lot of people questioning where the lower bound is these days. >> that message was enforced by the bank of japan decision. surprising decision not to pursue -- to be privately honest, i think the ecb probably overdid it so much. inflation is really only down at these negative levels. because of energy prices which have rebounded. i think that the ecb will because her to its mandate at the end of this year without having to do much about it. anna: how good is the rebound in oil and energy prices for the european economy? >> in general, it is not such a great thing. to some extent they chosen the wrong inflation target. that should give the more confidence that the underlying story of disinflation is not there. having chosen a particular target, i think they would notice some additional lift in inflation. if for no other reason that it puts it on a more stable pat

what is the justification by the ecb for buying that asset class? the jargonink it is -- the jargon around buying up the asset class, what we are seeing is unchecked logic. -- yet the central banks in both of those regions of the world have pretty much mimicked what the bank of japan is doing. my vision of what is going on, it is a bunch of people all agreeing with each other without having a contrary an opinion -- a contrary and -- a contrarian opinion. >> we are going to discuss the interests and portugal next. scarlet: if you didn't pay attention when we broke the news, the dbs kept portugal out of the investment grade. the government bonds remain eligible for the ecb bond buying program this is the ecb on the queuing function. portugal ranks number eight right here in the country that the ecb is buying bonds from. together they make up almost two thirds of the total bonds that the ecb buys. joe: if we could just get back to credit worthy, then we could be part of ecb qe and get going. that was a big ruling in favor of portugal. >> one of the thin

druggie.or investors expect the ecb president to say that his program is working. talked with algebras. as president obama leave saudi celebrations of the u.k., we talk oil and production freeze. this is bloomberg "surveillance." am francine lacqua in london. tom keene is in new york. we are looking at markets and the queen. that is probably a sideshow to what we're really looking at, yields on fixed income. tom: jim polson will join us. .o one ever says melt up it is always melt down. what a melt up we are seeing across asset classes. francine: or a belt sideways -- a melt sideways. before we go to the u.k., president obama wraps up his visit to saudi arabia. he is meeting with leaders from arab countries on the persian gulf. he reassured the saudi king that the u.s. is his countries allied. a u.s. official said that obama did not unleash -- back off of unleashing criticism. european central bank president may use a press conference of my designs that the ecb stimulus is working. inflation is weak, but the euro-area jobless rates fell to its lowest level in four y

lisa: which is central bank is why thein the rally -- ecb and not the fed may be playing a bigger role in the u.s. the services ecosystem -- the numbers to watch out for in today's earnings report. markets close in two hours. let's head to the markets desk were julie hyman has the latest. julie: on days like this when you have so many earnings reports, 10% reports today alone , it is not unusual to see a lack of big moves on major averages because a lot of the movement is driven by individual stocks. that appears to be the case today. we are in a at the" he thought we are getting earnings after the close. higher.tocks trading on the downside, health care and consumer staples putting a bit of pressure on the major averages. as we get further into this earnings season, let's take another look at ea. quarters,the past forward quarters. . drop of .9% in sales in earnings, and decline at 7.8%. we still have a long ways to go. anderms of the highlights low lights within today's session, whirlpool coming out with sales misting -- missing estimates. sales in the shortfall -- procter & gamble w

meanwhile, the ecb did not announce any big measures on that front. is still diving into the details of its previous measures, meaning the krona finally got some relief. joe: a major surgeon iron ore. surge in ironr ore. earlier inen hurt the year on slow down fears, and now it is taking off. news, alphabet has , first quartergs adjusted per-share of $7.50 per share, compared with consensus estimates with seven dollars 96 and. when it comes to revenue, revenue passed on the partner billion, lower7 than the consensus estimate of $16.59 billion. once again, revenue and profit missing for out for the first quarter. we also have numbers coming out , net revenue of $5 billion for the second quarter, compared with five point 03 billion, so pretty much in line. of $.39 earnings share in line with what analysts were anticipating. starbucks adding an additional 100 million share buyback authorization. resultss coming in with in line with analysts. missing on the topline line and bottom-line consensus estimates. up 29% shyaid clicks of 32%. it looks like a mess

is the ecb the front of germany, you think?end of germany because it sets the monetary policy for germany. right now we see german politics going on in you know you want to focus on other issues, in the ecb's controversial, which is why it is viewed as having against mario draghi. guy: in terms of how the economics of germany will develop from here, when you look at what the likely outcomes are, we see an awful lot of moving pieces. we don't know what is happening with the euro, what's happening with china. we don't know what will happen in terms of southern europe. when you look to what happens next, like the key variables for you? >> inflation in the euro area is still at zero, and the ecb has already done an awful lot of things. the euro is now rising is that the following and all this put together makes me a little worried that if they increase by a further 10 basis points or increases qe, that also increases the time of qe and it won't have a big impact right now the real worry in europe is growth; they need to focus more

has to pay the ecb a payment by july 20. we will not have a repeat of last irdmer when greece got the th bailout but the paths of that bailout was so much financial market uncertainty? to avoid that. there is no need to have that. we are not in the same situation. the situation is much better. are excepting now that we are and they are on a reformed path. i don't want to hear anymore, anytime about grexit in any kind of meeting from the euro group. is way too far way. we absolutely need to find a deal in the weeks to come. mark: what is the bigger risk to the e.u. project? is it a deal not being struck between greece and its creditor or is it the u.k. voting to leave the e.u. >> i don't want to talk about grexit. still not want to talk about brexit. we need the u.k. in. that is precisely what we are supporting. get us closers to to a point where we are not jeopardizing the financial sector. is this process getting us there? because some people are campaigning for present now seem to think it isn't -- some people who are campa

draghi is leaving the door open to further rate cuts that they at the ecb. we are going to take a very quick look at other asset classes when we return. up next, we will talk to the head of the global emerging markets. ♪ guy: kuroda is still speaking in tokyo. i love this line we have up on the screen at the moment. helicopter money not legally allowed in japan. what he said was under the current circumstances, under the current legal structure -- you change the legal structure, it might give us the opportunity to do that, but monetization might be been, for that -- might be the moment for that. academic.cally an that has no relevance to the real world. it is interesting that kuroda is saying that the boj will add easing in all three dimensions if needed. that is very sci fi out in tokyo. let's get back to switzerland, where the world management summit is being held. caroline hyde is there with another guest. back to you. snowine: yes, and the continues to fall. warm.afael is keeping me clients inking to brazil and mexico. what is the risk sentiment at the mo

talk about the ecb. we door stepped to peter prada. , we are permitted to reese 2% in its pursuit will future. -- to reach 2% in the perceivable future. i think the measures we've taken are quite forceful. and would produce the desired effect. you see the ecb reaching the 2% target, and to use his words, the foreseeable future? richard: more important is the market reaction. markets are liking the signal they are getting from the ecb. if you look at the strength of the euro, after close to six-month highs -- mark: is that dollar weakness or euro strength? richard: accommodation of both. the euro was performing very well. mark: brexit? on euro pound was above 80 p friday, how low the sterling go ahead of the referendum? what we said was 80 days. richard: we are only six weeks or so into this. if you look back to the intensity of the speculation when they announced the dates, so i hate to join the course of negativity. but it is difficult to buy the pound at the moment and go long sterling. it lightens the uncertainty we're going to see.

he is waiting for details from the ecb. y at this point and time seems to be stuck in the middle. we are waiting for the fed to figure out what it will do. we are waiting for the ecb to provide us details. how long until we get a gauge on the real effect it is happening right now? >> the problem with monetary policy is that many people think the only instrument we have is monetary policy. but at the end of the day it is whomarket participants should be willing to invest. but at the same time, the ecb sends a signal that everything is so weak and the risks are bigger than the opportunities. then there is the whole burden on the monetary policy but then it gets stuck and i think that the ecb realized that the negative interest rates were a mistake. in germany and the critics are so loud that he says, i don't want to hear that. please let me go the way that i think i should. we have kind of a dilemma. he can't turn back negative interest rates right away but i think the ecb started to realize negative interest rates are a for t

it will be interesting to see if this feeds into the ecb's thinking. re already taking a more cautious view than the fed, the let's see if there is more caution from the ecb and whether they are letting us up for further action later in the year, as investors are pricing. anna: i think we did a survey of economists, and they don't expect the ecb to do anything else until september. that seems a long time away, and all kinds of crises -- jonathan: we are seeing all kinds of consequences. argentina coming back, what could be $50 billion of debt, and it reminds me of greece coming to the market. it yielded about 5%. i was looking at the bloomberg earlier; the yield and now is about 10%. clearly, investors have demand for this auction today. you look at some of the yields, it could go a 6.8%, for a country just returned to the bond market after 15 years. i just wonder what that will yield in two years. anna: hans? hans: we spent a lot of time talking about brexit in your. jon, i want to get your sense on whether the brexit conversation is part of the conver

the ecb is leaving the benchmark -- 0%.t zero below thehas been ecb's goal and showing little sign of pickup. is druggy's monetary policy working? pimco. us is manager of is druggy's stimulus working? what is your perception? hi, mark. i think it is working. info to know the of what would happen if they did not have the policies in place. when we look at the results in the real economy and the unemployment rate, it does not look as if it is working, but without the monetary policy, the situation in the euro zone would be worse than it is right now. bankersong some central , saying we have reached the ofits of the effectiveness central-bank monetary policy. do you concur get-go -- do you concur? i certainly concur that the marginal efficacy of each additional dose of monetary easing is declining. there are declining returns in each round. that seems to be taking place. i concur on that. i would disagree that we reached the end. draghi. draghiuestions -- mario brushed off those questions. he did indicate that they are willing to purchase more assets and keep on doing that. that is where

mark: on the matter of the ecb and the fed, we have a chart here.the price differential between the s&p 500 and the stoxx 600. as aweek, european stocks ratio traded at a record low versus their u.s. peers, which begs the question -- why hasn't ecb stimulus boosted the european stock market as much as maybe some think it should and could? gareth: this is a relative argument. you have seen a pretty sustained relative -- rally in europe and the has been driven primarily by ecb stimulus good on a global basis, a lot of historical u.s. investor engagement in europe led a structural underway through the crisis. they made good steps to address that last year. the uncertainty around greece and the currency as a whole with the political uncertainty whether it be in spain or the u.k. is actually putting off some of the international investors, which is perhaps leaving the opportunity gap. mark: thank you for joining us today. he is the head of equity syndicate at ubs. betty: let us check in on bloomberg first word news. vonnie quinn has more from the newsroo

it is the ecb decision day. the central bank is watching carefully for any inflation drag. under armour is running circles around critics today. they talked analyst estimates and raised the forecast. and carson block revealing the latest short in an exclusive interview with bloomberg. why did a german advertising firm capture his attention? scarlet: we are halfway through the u.s. trading day so let's head over to julie hyman. what is moving and what's not? julie: a busy day for earnings, that is true. there is a lot to sift through. you are seeing a more negative tone now but stocks have been bouncing around throughout the session. each stock is down about a quarter percent. earnings.just about we have energy stocks gaining as oil falls, curiously enough. you can look and see energy and materials are the two best performing materials. consumer staples are on the downside today. that is shaking up. verizon is what is pulling down the telecom shares. wireless subscriber growth beat estimates but because of negotiations with labor unions, that is going to weigh on second-quar

unclear ifit is very the ecb could do it. e have seen over the past there is a loto, of possibility in the european treaty. if they really need it, they really want to, they will probably find a way to do it. is iftely, what matters there is another crisis, we may see that the financial study was has run its course. if they do not do it from the central bank may have to do it. anna: amazing how a crisis can galvanize thinking. saying iton message, would be such a fiscal action, the ecb would be undermined. but a lot of the details would need to be worked out, if anything like that were to be suggested. let us just get up-to-date with some the happening over in the japanese session right now. mitsubishi motors, the share price they're plunging. the company will brief on in proper fuel tests, that is the headline just crossing the bloomberg right now. not a great deal of detail behind that. but as we get more on that, we will bring that to you. shares down as much as 70% in today's session. that is clearly a story that is grippi

some point in the future that more ecb easing would be on the way.ee that chart on g #btv 989. betty: you got some work ahead for you, mark. mark: is it time to get out of mining stocks? i don't even need to do this chart because we just spoke and he said that you should not be chasing so i will see you later. [laughter] as you know, the ftse 350, which encapsulates the glencore's and the anglos, since january, the index is up by 74%. this pushed the valuation to 38 times estimated earnings. that is a big rise from the 20 level in january when it was ftse 350r the mining index. 600while, the stoxx valuation has moved from 14 times estimated earnings to 16 times earnings. the valuation gap, which is the come is basically at the highest level since records began when we started compiling the data back in 2005. is it time to get out of mining stocks? citigroup says basically it is. it has changed its six-month start on the metal and mining sector to bearish. the stocks have run too hard and too fast. if you want to love my chart, g 990.b betty: before i

interesting comments from the ecb executive board member. he said extraordinary measures to spur growth may show diminishing returns. this chart shows the measures are having an impact because since march 10, when the ecb said it would buy nonfinancial corporate bonds, euro investment have outperformed financials by 18 basis points. the spread differential between the two is now the highest since 2014. the blue line is utility, white, financials. frontors are probably running the ecb purchases, what they think the ecb will buy when they start to buy corporate bonds at the end of the second quarter. let's check in with david gura with the latest from our newsroom. ministers from the group of seven industrialized nations are meeting to call or nuclear disarmament. also on the agenda is terrorism. all the g-7 nations remain absolutely steadfast and united in their commitment. i would call it a resolute commitment, strong commitment, to degrade and destroy daesh through our global coalition and are each committed to using the tools available to u

the ecb prepares to buy corporate bonds. we will look at the companies whose borrowing costs are zero. corporate sentiment in japan slows to appear your -- a three year low. and china kick starts its old engine as manufacturing picks up but is the broader e.m. rally do omed to fail? ♪ we do not want to be in this situation. i've said for the last many years that one reason to keep our eye on the 2% inflation objection is to -- objective is to make sure we get up to 2%. if you find yourself at the lower level and then the economy stalls, japan has been in that situation for 20 years. and you do not want to repeat that. , they have had their own challenges and they have begun to fall into debt. they have done all this asset purchasing. they've had low inflation. you have got to look at this and say, i do not want to be there. francine: that is the chicago fed president charles evans. draghi probably does not want to be there. but today sees the start of the expanding bond purchasing program. our bloomberg corporate finance repo

the ecb will buy corporate credit. e how effective these programs will be and how it will play out in the come?to jonathan: all of these policies are experimental in some sense. these are aggressive policies. they are consistent with an ugly outlook in terms of growth and inflation. a central bankers have set we will do what is needed to achieve inflation goals. they are being aggressive and it is not clear what the end will be with all of these. --n you talk about stimulus everyone loves stimulus. fiscal, monetary. they do not like the ending of stimulus, because it seems like the opposite of stimulus. they will take risk in the corporate bond market. in japan, they are buying equities. that may be part of the program as well. there is risk and political risk associated, but in the near term, it will put a positive emphasis on risk markets and probably continue to dampen volatility. vonnie: is the bank of japan learning a lot about communication. we have a report that it is thinking about doing something. jonathan: it

how did the euro react to what came out of the the ecb. >> it jumped against the dollar after the ecb announced the decision of no change in policy. it soon fell after ecb president hinted about the possibility to eventually increase its stimulus measures if necessary. since then it's fallen to the 107 yen levels earlier in april. a look at markets open elsewhere. seoul's kospi is trading in the negative. how it affects japanese shares and shares of mitsubishi motors and the related sectors to the auto industry. back to you. >> thanks. we'll talk to you in a few hours time. >> business owners all over japan are feeling the effects of the aging society. nowhere more so than in the country side. some are looking for the answer to the labor shortage abroad. that are turning to myanmar. >> reporter: they arrived to discuss a deal. the leader of the delegation aims to make an agreement to employ trainees. >> translator: we can tackle a range of problems if we have access to skilled labor. he visited a sewing factory. he found people hard at work. well aware that competition for young worke

everything pivots around that bank,ndum; not just the but also the ecb and the central reserve.rms of the rbov, if the u.k. votes to stay in, the u.k. nevertheless has slowed sharply. we're -- francine: is that your base case scenario? >> at the moment. the u.k. is losing momentum. the question is how much. if it stalls or even picks up momentum into the second half, it will be difficult to raise rates. potentially november, the first rate rise delay into next year. if we leave, all bets are off. they will probably be doing qe in the first rate rise will be delayed. francine: is there a danger that we underestimate the strength of the u.k. economy? that even when the u.k., if they decide to stay in, investment hasn't been pulled back by that much and therefore they need to raise twice? >> i think most people we meet will still think it stays in. close call, but most think it will stay in. that is a reflection in asset markets. decision,f the right if you are a finance decisio minister, you put the decisions on hold. it is rational to think they will stall in the second quarter.

peter pratt said the ecb can boost the scale of its support if the need arises. it may add fuel to the grexit debate. alix: copper now at a six week low. oil prices no negative on the year. a lot of that positive sentiment we have seen over the last few weeks really unwinding and commodities. scarlett: now let's take a deep dive into the bloomberg. banks andlooking at what is going on here. goldman sachs knocked off 32 points from the dow. this is a year to date chart of all the big banks in the s&p 500. aroundthem bottomed february 11. but the s&p continuing to climb higher as banks roll over. now we see the s&p started well over along with the banks. does it end up making up that gap? does it go down to 930? that is a pretty staggering gap. joe: speaking of banks, i'm looking at something going on in europe. when the ecb came out with its announcement that it will be expanding its balance sheet to buy bonds, we have seen a nice rally in european bonds. this white line here is the index of liquid european high-yield bonds. that is a really nice rally. in februar

darling for free as the ecb expands its stimulus package. ned with our corporate finance reporter. it is great to have you with us. the does this tell us about european credit market? when i look at this story, i see one big bubble. >> it may well be a bubble. what it does tell us is that investment companies are listening to mario draghi's message. they heard loud and clear. we have seen a near record amount of issuance in march. that across the board, investors are reaching down to try and get yields. deposit rates have been cut to -.4%. investors are looking for places to put their cash that are not negative yielding. they have looked to corporate bonds. across the board, there is a lot of advertising for credit at the moment. hans: hans here in berlin. you cover corporate bonds so well. do you see the national breakdown? are german corporate borrowing less? why do we have this french company that was the first to issue such a low yield? katie: we could make a connection to that fact. it is a very highly related company. it is of course, i

ryan: certainly the ecb. the ecb are playing a strong role in trying to supply, but also clearly nudging consumers and business, which by the way are at the cusp of meeting pent-up demand or realizing pent-up demand. the earningsout season broadly? has it taught you anything materiel? bill: what is interesting is how limited the top line environment is in the u.s. and europe. it's all about execution at the moment. there are some indications things might be improving in the states, particularly the impact of the rising dollar, the fall of energy price declines. going to be modest, somewhat better than europe. we are talking about a mid to mid to high -- single digit earnings environment. anna: in terms of your expectations about how markets will function in the run-up to the referendum and any fallout, how do you view this? bill: we are driven very much by the opinion polls. some would argue that the markets have made a decision about the risk. i think the big things are watching what is happening in of voter

mark: the ecb release their latest report on financial integration. t they are struggling to navigate the tough environment. what is next for the health of these institutions? brantford isom from frankfurtt -- is andreas dombret how well our banks across europe coping with this negative interest rate environment? andreas: that is very difficult to say because they are very different business models. in principle, they are coping reasonably well but we clearly have challenges. in the eurozone on it. still working nevertheless, it depends on what your business model is. if you have a large overhang of deposit, these interest rate environment don't help. better ifdn't it be some of the post crisis rules have theened? we single supervisory recognition -- mechanism closing loopholes oris this a contradiction why can't some of the post crisis rules be loosened? andreas: it is difficult to make money in this environment, no doubt about it. but these policies are contradictory because they are targeting different policy fields. the at the ecb and at deutsche b

the ecb is ready to all the stimulus gun today. five-yearficials, the rate is off its record lows of last month. it is still well below the target of 2%. i can't believe we are still talking about ecb stimulus. i thought we were done with it, betty. betty: we thought, but we just can't get rid of it. we can get rid of any central bank stimulus. has more on other news at our news desk. vonnie: president obama takes his case for his supreme court nominee merrick garland on the road today to the university of chicago. so far, the white house campaign for garland has had little effect. hastert askednnis that he not go to prison in a hush money case. he has pleaded guilty to violating laws in trying to pay $3 million in hush money. will search the panama papers for evidence that people against russia. at least $2 billion in transactions involved individuals and businesses that had ties to russian president putin. russia has dismissed the report as an attempt to destabilize the country. bank at thethe center of those papers says that his

♪ central banksl descend deeper into negative rates, policymakers are sounding a warning over the ecbxecutive board member warned of diminishing returns while blackrock ceo larry think said negative interest rates are particularly worrying and potentially counterproductive. when we have our conversations before the show. sometimes it is counterproductive. the focus is how much more damage negative for it could potentially do. guy: we flipped from central banks being seen as pro-market to know maybe the kind of do no harm story coming front and center. maybe that is becoming hard and parcel of the narrative now. joining us in london, stephen mack low smith. is that something we need to worry about? we've got european central banks going into negative territory. is that something we could extrapolate into our sphere? >> i think we need to look at the ecb policy which flows from what they did with the stress test on the banks and the banking union. essentially, what they wanted to do was make sure the banking sector would fit the purpose and then put in place stimulus. if you look at wha

francine: the boj making policy announcements. mario draghi signaled did ecbill wait to see how measures pan out. could that open the door for janet yellen to raise rates? first i want to bring you my chart of the hour. 7.8 trillion dollars in government bonds have been driven below zero by worries over global growth. money managers are going into debt with maturity for over 100 years. you can see more church by heading to, the story only bloomberg calls it the most dangerous bond market in history. let's welcome with that nice little intro, dangerous trade. very of cookare investment given the incredibly low level of yields. very difficult investment given the incredibly low level of yields. francine: if you look at the 40 year gdp with the white line, the blue line is a 30 year. now we are around 0.4% which is quite credible. do you buy anything in terms of environment echo scott: it is tough because the intervention by the bank is still massive. terms of environment? scott: it is tough because the intervention by the bank is still massive. that is a big pro