tom: good morning, everyone. a monday before a jobs report, a monday about equities, bonds, currencies and oil. opec with a bit of a surprise. lisa: a sudden surprise move out of their meeting today talking about possibly cutting production by one million barrels or more. in response to a lack of demand, clearly they have a price point that is very different from joe biden's. tom: 69 on west texas intermediate. edward morris of citigroup says there can be a price overshoot right now. lisa: here's the question --how much does this reduce the narrative we heard about disinflation driven in part by the commodities sector in the face of slower growth? how much can they unilaterally change that narrative at a time when this administration is basically said in the u.s. we can no longer refill our spr in response to prices that are probably potentially going to overshoot to the upside? tom: he was previously booked and now he has something to really talk about. over the weekend, your bond observation? lisa: there still

tom: tom metcalf with the big stories for us. thank you.oming up, we will look at stocks, including volvo and a strong result. more on that coming next. this is bloomberg. ♪ tom: welcome back to "bloomberg markets: european open." happy wednesday. midweek. looking across european benchmark. u.s. futures are flat. looking ahead to the important cpi print out of the u.s.. estimates are your on year. important for the fed and officials. let's get to our stocks to watch. what are you zeroing in on? joe: best-performing around 8%. 10% earlier. beating expectations around 45%. margins were only looking around 12%. potentially a one-off. there is a bit of concern as the construction outlook darkens. at the moment, that is the best performing stock we have today. tom: you are already looking at l'oreal? joe: they are saying, do not expect the growth in the u.s. to continue as quick of the pace has-been. the china stock is up a little bit. this valuation is looking really punchy. traits around 20 times of earnings. that is another reason why they ar

tom: four-ciery?l sample set and you can't really extrapolate a lot from the whole nation but it shows the influence of the fed and tightening on the service industries. tom: michael mckee one of our fed speakers. lisa: we will look to see if it means this is a softening of the u.s. economy. kathy bostjancic saying there will be a moderate recession but she wrote that inflation will not allow the fed to pause and may cut rates as it simply -- as it typically does during the recession. this is not being priced into the market, what you see in the market are rate cuts through the remainder of this year. tom: kathy bostjancic joins us from nationwide. the stock market is going up, is that an indicator to you? kathy: it's part of the leading economic indicators. think of the conference board's overall index. that one seems to stand out from other leading economic indicators. it's been more resilient than even the labor market. we have to see how their earnings announcements and guidance play out to see if

tom: then what?athan: just the cannibal -- the mechanical story of the improving gdp and then you get the headwinds. tom: we are not going to take our eyes off anchor earnings. jonathan: on friday, jp morgan, first republic will start thursday. that will be april 24 to get first republic earnings, i believe. tom: i was cooking easter dinner. jonathan: what did you make? tom: you go to the frozen foods, the swanson stuff. jonathan: sounds awesome. futures unchanged on the s&p 500. from new york, this is bloomberg. ♪ jonathan: equity is just about unchanged on the s&p 500. here is a snapshot of the price action, starting with the s&p. nasdaq down .1%. after a year-long stretch of upside surprises on payrolls, they continued on friday. softer than expected data dominated last week and friday things turn around. yields were higher, the two-year down for basis points, 3.93. the 10-year was down to 3.37. jonathan: it will be interesting to see if the 30 year bankrate mortgage comes in as we have seen. on m

tom: give me a number.een 3.5% or 4% on the 5-year note is attractive and you can add to that if you're looking at credit. tom: the idea that a pro is looking at a five or six year duration where in muni bond 20 years as a short-term. jonathan: if i can take one thing away from the conversation, what you said about the market pricing cuts being a weighted average of range of views is so important. gershon distenfeld talked about the same thing. this means either we have priced in too much or not enough. lisa, think that is the problem neil dutta has. he is much more constructive on the economy than a lot of people saying recession, recession, recession. he is saying if you have a financial accident it will go way beyond what is priced in but if nothing happens they will hold and do exactly what they say. i wonder how much we are making of this gap between the fed and market pricing? you think we are making too big a deal? ed: i think that is right, it is not a big deal. there is a gap between terminal prici

tom: was he there -- mohammed did. tom: he was there.amed el-erian here in new york city of next counting it down to the payrolls report. the estimate and the blue brick survey, 230,000, the data just around the corner. hi, i'm lauren, i lost 67 pounds in 12 months on golo. golo and the release has been phenomenal in my life. it's all natural. it's not something that gives you the jitters. it makes you go through your days with energy, and you're not tired anymore, and your anxiety, everything is gone. it's definitely worth trying. it is an amazing product. >> i think inflation is continuing to melt which will allow the fed to ease. >> inflation might not be as big of a problem if we get into the session. i think the recession will do the job. >> if something bigger breaks and a crisis supersedes inflation for the short-term, that could lead them to cut. >> the trouble will come in the second half when we then are actually facing much higher growth expectations. >> this is a special edition a bloomberg surveillance with tom keene, jonath

tom: and is quietly. jonathan: are you done? tom: i'm done. anastasia amoroso will be joining us shortly. we have been in this very tight, well defined trading range. 3800 to 4200. anastacia said we will break out to the upside and we are very close. we will continue that next. ♪ >> keeping you up-to-date with news from around the world, i am lisa mateo. fox news will pay 787.5 million dollars to avoid what could be an extremely embarrassing trial. they agreed to settle a defamation lawsuit i dominion voting systems over there broadcast. dominion says fox blamed them by claiming they rigged about. it is official, india is the most populous nation in the world. according to the united nations, the population is almost 1.4 3 billion, edging out china. the increase will put more pressure on the prime minister's government to create jobs. here is another sign that elon musk is willing to sacrifice profits to boost the manned. the electric car maker cut the price of it model why to just under 53%. the cost of the model three fell 4.3% to just under

tom: mastec, 13,300.their moment and now it is time for the united states to outperform. that was a major equity message of the morning. lisa: it has been for the most part. i we just seeing 20 stocks support pretty much the entire market. i think that is why people are looking closely at the apples of the world as .22 see how far they can carry things forward. tom: 10 year yield under 3.5%. of the equity market with a parma lift we have seen within the last number of weeks. lisa: yeah. you could see a inverted yield curve back to some of the inversions we have seen earlier this year. we have been talking about resilience in the face of a banking turbulence. markel warns the fed indicated no interest to cut interest rates. european stocks trading at all-time highs. u.s. stocks recovering all-time highs. tom: we got to stop. i'm so glad you brought this up. jon ferro would have featured this. is anybody listening to that guy anymore? i say this with humans respect for his intellectual trucks. where has mar

tom: this is "bloomberg daybreak: europe" i am tom mackenzie with manus cranny. manus: failing to capitalize on fixed income trading. morgan stanley stanley hits the tape today. the last major lender to report. looking forward, netflix declines and extended trade-off by cracking down on password sharing. plus we wait for cpi data. inflation falling to single digits for the first time in seven months. we have breaking news from asml. the world of tips, net sales coming in at $6.5 billion above the estimated number. that growth is 25%, relative to 2022. this is the first top line we are getting on asml. $6.75 billion, the estimate was $6.3 billion. tom: the margin beat from asml. above the estimate of 49.8%. this is the dutch company that provides and builds the machines that are essential and production of semi conductors. there is weakness when it comes to the memory chips. asml on these top lines. they see demand coming through. the risk is that going forward adding capacity could deliver a slight improvement on the margins. good morning, good to be with you. in

tom: he's speaking to me?here will be three potential scenarios -- you can pause and pause for the rest of this year, you can pause and start cutting or you can pause and then you need to start hiking again. that's the problem. tom: our guest yesterday was heated that he doesn't agree with deutsche bank. he said they will cut off of pause and it's been said it's not asymmetric. jonathan: should we promote bramo's newsletter? it's written by her every day. it's called the flavor of gloom. the daily anxiety. tom: i love that name. jonathan: you can sign up at bloomberg.com/newsletters. it's very cool. tom: is she making a fortune on this? jonathan: i think she will do that in the future. she will take a paid monthly subscription. tom: it will go into number of the themes. the anxiety will be there if she's driving the bus. there is a lot of different themes. look at veronica clark and michael schumacher, quite a difference. jonathan: lisa's not taking subscriptions, it will be free. you can sign up at bloomberg.

tom mackenzie. stocks and futures are mixed heading into the european open. yesterday's fed minutes signal a likely rate hike despite forecasts for a recession. chinese exports unexpectedly surged in march. the first in six months, another sign that the economy is gaining strength. lvmh shares hit a record high, luxury sales almost twice analyst predictions. we will do a deep dive in the next couple minutes or so. of course, in terms of the dove and hawk, some divergent as well when it comes to fed speakers. you're looking at modest gains. a 25 basis point hike when it comes to the fed. traders are still pricing in and expecting it towards the end of the year. that remains a debate. spanish imax is up. gdp coming in slightly below stagnation. in france, gains some tenths of a percent. the last time i looked, the u.s. two-year was still below the 4% level. noll of movement in the session today. gains around .2%. brent around $87 a barrel. let's check in on lvmh, the big story at the moment

tom: sam, thank you. u.s.nt joe biden arrives in belfast in northern ireland tonight for the 25th anniversary of the good friday agreement. joining us is our u.k. correspondent lizzy burden. how do we expect this trip to unfold? >> we expect rishi sunak to meet joe biden off air force one and they will have a proper sit-down tomorrow before joe biden makes a speech, then head south of the border to dublin. he is very proud of his irish roots, he will be flaunting them in his run-up to the presidential election in 2024. the backdrop to these commemorations is that power-sharing has not been restored in stormont, despite the progress rishi sunak has made on the brexit deal. joe biden will be lobbying the democratic unionist party to restore power-sharing. rishi sunak's team is likely to lobby for a u.s. trade deal. it still has to be said that the reason these commemorations is that the good friday agreement remains globally a model for peace and reconciliation around the world. even if sunak's deal has not brou

tom: please.onathan: $1.8 billion during the period from the fleet of refineries, exceeding expectations. a fivefold increase from the first quarter of 2022. i know stock is only up .3% but the refining number is phenomenal. lisa: especially at a time when it has been a key attention point around getting gasoline, let alone oil prices where they are and were suppressed. if you have a lack of refineries, it is a closed market. if you are in it, you can get those profits but washington, d.c. will be the question. jonathan: wants to build a refinery right now? lisa: one. tom: -- lisa: no one. tom: not in my back yard. jonathan: exxon later this hour. this is bloomberg. ♪ jonathan: live from new york city, good morning. your equity market a little softer, lighter, lower, down -0.3%. what was that face? tom: we had sanka when we were kids. jonathan: -0% -- -0.3% on the nasdaq. in the bond market and then earnings from exxon. the two year, would you believe for the month of april, the two-year, if i tol

tom: i look at j.p.morgan, this is from keith horowitz at citigroup eared the revenue filled out of this company is not understood. $116 billion pre-pandemic revenue to $163 billion. minting money. in the era that we are in, the french securities histories expert of this, do you just get almost a min alstom is stick -- is that where we are? greg: i think there is a trend at this stage in the cycle for balance sheet and quality to be a theme. i do not know if it is along a secular theme. if you are at a point where recessionary themes start to grow and funding costs are becoming higher, source of funding is becoming were challenging, you get a flight of quality that tends to be. jonathan: let's talk about regional banks. iman t bank. total deposits, the first quarter deposits 159.1 billion. that is a touch lighter than the estimate. what else do you see? lisa: the fact provisions for credit losses were higher than expected. $120 million. the estimate was $118.3 million. they beat when it comes to net inte

tom: jonathan ferro, lisa abramowicz and tom keene.o be looking at claims, i am looking at gdp and boy is there a difference on the state of the american economy. jonathan: i will be looking forward to amazon because big tech is getting it done this week. do you want some good news? they talked about first republic, it is not in the radar. some big understanding questions. tom: i am looking at the bloomberg terminal, the volume is way less than yesterday. if you are in institutional retail, what do you do at 9:31? is it off the radar? not for janet yellen it's not. lisa: the second there is a bad headline about regional banks the mood shifts. the strength is coming from tech giants, our performances from consumer facing companies. here we are at the precipice of something in the banking piece of that is what people are keying into to determine how to swing their moves. tom: five point 47, moments ago 5.42 on first republic. in edging down there. jonathan: this month has been amazing. a triple digit name and now it is 550. tom: i think

tom: the position is bearish. that is one positive for future of european equities and then the strength and china around the consumer. to what extent you want to align with european equities with the exposure to china? how much is priced in with luxury stocks? do you look at other companies, corporate's that have the exposure to a reopening and a strengthen in chinese economy? emmanuel: we are very uneven the china recovery. commodities have done poorly this year. the market is not playing the usual spending boom that we got in the past. the market is focus on the consumer and luxury goods, autos have been strong. to some extent a lot seems to be priced in now. we think china will keep delivering the data and the second quarter. as of now, there is a bit of juice left in this -- maybe your. we still believe europe is where you want to be because there is cheaper valuation and more favorable growth categories with china recovering but we are more selective in our positioning. we are bit more focused on the sector

tom: it is fascinating.s ago we needed some former interest rate reaching that mr. waller is still trying to catch up to. your comments on an informed economics saying we got to keep going. mohamed: we have a 5.6% core inflation rate and it is not coming down, you have an inflation problem. yes headline came down to 5.1 but of course what people look at it. -- but core is what people look at . the debate of whether we slip into recession is going to fade relative to the debate of how does the system adjusts to hire for longer. that is going to be the key issues. for the marketplace is with the be technical is dominating fundamentals because there's going to be questions of some of the business models, the reliability of the business models. tom: one of the bombshells reported saying will not get back to 2%. something in the vicinity . will be in a panel here with us in the people in couple of hours and the core debate is -- he calls it the neutral golden locks. -- the neutral goldilocks. mohamed: i am in the

tom: thank you.ng on the earnings story, dassault systems has reported first-quarter results this morning in line with estimates coming through from analysts. the ceo has recently risen into the ranks of bloomberg's global billionaires. we looked at his journey from intern to t c-suite. >> from intern to billionaire, and 40 years he has climbed to the top of software giant dassault systems. today, the chairman and ceo of the holding company's biggest business is a billionaire and one of france's highest paid executives. with a compensation package of about $36 million last year, he is not far behind some of silicon valley's highest-paid bosses. charles is a front runner to take the top spot at the family holding in the next couple of years. one of france's most influential conglomerates. dassault business goes back over a century. it has grown into an empire expanding aviation, media, real estate, software, vineyards, and an auction house. investors might agree charles is rewards are justified. over

tom: a major leak of top-secret u.s. intelligence files. they reveal ukrainian military preparations and the pentagon's taking across a range of sensitive international issues. so how serious is this breach for the united states and its allies, and what impact might it have on them and on russia? this is "inside story." ♪ hello and welcome to the program. i am tom mcrae. the pentagon is dealing with the fallout from the worst leak of u.s. national security intelligence in many years. initial media reports said it involved classified u.s. and nato plans to help ukraine in the war against russia. but more information has since come out, with files relating to china, south korea, the middle east, and africa. the scale of the leak is increasing suspicion it came from an american source rather than from an ally. russia has been accused of doctoring some files to create misinformation, and ukrainian and south korean officials have rejected some of what is being reported as false. the pentagon says a hunt has been launched for the source. we will

tom? tom: thank you.oming up, hsbc pushes back firmly against a proposal to spin off its asia business. we'll have more on the continuing battle to step up again. that is next. this is bloomberg. ♪ tom: welcome back to the open. we are 23 minutes into the european trading day. losses across the bench mark of .2%. what the fed beige book tells us about a stalled u.s. economy. real pressure coming through for like of iron ore and brent and w.t.i. a third day where you have seen oil down. back to $81 a barrel on brent. the session tieing into those concerns about the recession that could be emerging in the united states. let's get back to the earnings story. the particularly the banks. that is the sector that is gaining today, a little over 1% in europe. morgan stanley's beat first first quarter expectation as profits fell from a year ago. let's bring in bloomberg's charlie wells with details. what went right and what was a miss? >> wealth went right for morgan stanley. you look at the wealth unit, it was up

tom: blues. sounds like a good band. >> the former first epi-managing director of the imf will be joining us shortly. this is bloomberg. ♪ >> tom keene, i cannot even. jerome and the dot plots. keeping you up today with the first word. fed officials feel they need to do more to shame -- tame inflation. that's according to minutes from their march meeting. this is despite forecast from staff advisers that there will be a mild recession later this year. another missile launch from north korea was fired towards waters off japan's northern ireland -- island. that prompted a brief warning for residents to take shelter. south korea says it's possible north korea may have tested a new type of solid fuel. a report on alleged leaker of those u.s. intelligence secrets heard according to the washington post. and share the classified documents with a group on. an online platform used by gamers. he told the group he spent some time inside a secure facility. the court says it's cooperating with authorities. fe

tom: like a sports team.: this is "bloomberg surveillance." 60 minutes from the cpi report. equity markets shaping up as follows. the s&p 500 and the nasdaq, the nasdaq just a little softer, down 0.1%. the s&p up a little more than 0.1%. then on to earnings with jp morgan reporting results friday. the two-year reclaiming 4.037%. looking over to europe, remember, may 3 for the federal reserve and may 4 for the ecb. 1.0927 is where the euro dollar is. tom: huge debate on the weaker dollar. where could we be three to five years out? he is modeling stronger yen. these are big moves but this is what the financial media does not do. one quarter, two quarters, maybe one year. jonathan: two weeks. [laughter] lisa promised to pay for dinner later and we have to promote a new newsletter. subscribe, subscribe, how many times do i have to say that? [laughter] bloomberg.com/surveillance for the bramo toxic brew. we are going to brand that. [laughter] lisa: i have to have my head in the sand because we have telegraphed it

tom: first question.don't ask him about tesla never going to speak to you again. lisa: what are we? chopped liver? jonathan: that's like the fourth time in a year or something like that. tom: this goes all through next week it goes well into apple you know the fed meeting and then apple, mayport so it's an earnings derby here right now we are thrilled to bring amanda with this. really interesting view of the credit market i look at the turmoil out there in equities and i want you to bring it right away over to the bond market are you clipping coupons? do you have this season -- scissors out or can you actually manage and do execute total return in bonds this year? >> we absolutely see a really attractive opportunity in fixed income. lisa suggested there is a bifurcation between the haves and the have-nots and that's absolutely something we are focusing on one of the really interesting points is adjusting to this higher cost of capital environment so from our perspective the disruption in the regional bank

tom: welcome back. u.k. confidence has hit its highest level since the start of the war in ukraine. gfk's consumer confidence index rose to a 14-month high. joining us is jamie rush from bloomberg economics. what is going on? is this going to be sustained? why is there consumer confidence amid high inflation and lower real wages? >> part of the answer is we are reaching the end of the season in the u.k. the cost of energy is a concern, and now they have more control over what their outlook will be. that matters to some extent. we should remember that although consumer confidence is improving, stabilization is still below the depth of what we saw before the pandemic. there is a long way to go before we are comfortable with what is going on. tom: still a bit of catch-up, but softening in energy prices helping. what are you expecting from pmi later today? >> one of the interesting things is that businesses and households have not agreed at all what it looks like. households have been much more upbeat. we are no

francine, tom.out the equity markets risk off, but worth pointing out that the china impulses fading, also the story around iron ore and commodities. brent is getting a bit of a leg up, but it has been under pressure. part of that is the geopolitical risks around china, but also chinese officials talking about risks to that economy. we know the demand is softer than many had expected for these commodities. iron ore at 103. there is a move into treasuries once again. treasuries have been, yields are coming off. plenty more to come. stay with us. this is bloomberg. ♪ when i was his age, we had to be inside to watch live sports. but with xfinity, we get the fastest mobile service and can stream down the street or around the block! hey, can you be less sister, more car? all right, let's get this over with. switch to xfinity mobile and get the best price for 2 lines of unlimited. just $30 a line per month. i should get paid more for this. you get paid when you win. from xfinity. home of the 10g network.

tom: tom: i've never seen it. i don't want to go back to the dollar but one thing that was interesting. did you see the comments on that? there was one top conviction trade was short the dollar because of policy missteps and because of policy missteps by the federal reserve and the potential debt ceiling debate. it was all around the most bearish thing in terms of his view but telling at a time where he didn't have much other conviction. jonathan: a legend of the fx market going back a ways. the trade he missed may be the biggest miss of his career, suggested by drucker miller going long u.s. dollar last year. the way he explained it i thought was interesting. he didn't have much faith in this administration or this federal reserve and ultimately, that was the reason why he wanted to get long on the u.s. dollar. that was a trade that fell apart at the end of september with major moves up the back of a much stronger dollar and weaker euro and weaker pound and that's turned around over the last few months. tom: fran

tom will explain that to you. tom: a curse at about 12:10 midnight. her, "have you made up your mind?" i'm sure she would say, "we are waiting on the data." tom: the insight i have had in this hugely uncertain blur and your great work with the federal reserve of boston, st. louis -- i was watching the cardinals, looking behind home plate to see you! michael: you are the only one who can sit in those seats. yo areu working these smart people. what stood out to me was kelly at j.p. morgan saying we will see negative payrolls. how does loretta mester's world change if we get one to three months of negative payrolls somewhere out there? michael: i don't see that happening in the short term, but if it did happen we would definitely be having a conversation about rate cuts. if you are seeing jobs lost significantly, it would tell you the economy is in recession. lisa a.: this is really important that people believe is all backward looking and it sets the stage for where we are heading because of tighter lending conditions. is that how fed officials look at

tom also now represents tom. and i told him this and he yeah, that's tom's story. i said, no, no, no. tom's given it to me. no, no, no. and he said, in my literary our literary, he's old school. he's not like the kind of guys see slick seattle. he's old school, he's got values and, ethics. and he said he said, no, that's tom's story. i said no, no, you don't understand, tom said i could. he said, i'm not i'm not ripping you on this because it's tom's story. now, if you two want to write it together, think about that. and that's how it started out with the two of us. so it stuck with me. so and as far as the grenade goes, you could put the pin back in. so after the commandant i surrender, he said, okay, we're great. you'll put it to put it back. you know, since you had to surrender. yeah. yes, sir. i'm matt prickett. i'm curious mentioned contemporaneous research. how about contemporary? we have three ranger battalions in the us army now. two are in georgia. one is right here in savannah, georgia. have you had any contact? the current guys that are serving? i gave a

tom: ok., when the prime minister made this announcement, was there any expectation that there would be a backlash like we've seen over the last five or six days? guest: thanks. in terms of expectations, whenever you implement any plan, there is a chance that things might happen differently. we know there has been a lot of negative reactions in the media, especially people who are out of the division. they always come against any plan coming from the government. even if the government changes the key to heaven, there are always people outside their who will be against them. but to be honest, in terms of government expectations, i would say this was a long-awaited solution for ethiopia. reintegrating the security forces from ethiopia and especially from the amhara region. we are stronger when you have one strong national army which is going to be under one chain of command. so in terms of expectations, i would say there is a lot of positive expectations. it was a demand from the community. some

but look at that, that is very tom. tom: it is an aspiration.hen is this coming online, i guess is the question manus is building up to, that little piece of cybertruck history. >> our projections has it is likely to be in production later this year. it would solve a lot of their problems when it comes to capacity. trucks are the biggest selling product category in the u.s. when it comes to autos. you could also make the case that actually smashing the window that wasn't supposed to smash actually generated more publicity for the thing than if it had just shown that yes, it is not quite bulletproof, but hammer proof. it generated a lot of publicity well before the lunch and generated a lot of preorders. manus: last question, alex. a long time ago, i bought a very big jeep. i lived in west london where there was never a hill, where i would never need four-wheel-drive, and where i was never able to park the thing. and sold it within six months and took a bath on it. all i will say is if you are thinking about buying a big truck in a flat city, you

>> tom: yeah. >> tom: been is lake their game.y made fun of trump saying he's a former reality star. they're current reality stars all of them. not just democrats. there was a republican named peter meijer and i used to love watches his videos during the pandemic. he's out now they voted him out because he stunk but he would come out of congress and come down the steps and he would be walking down the steps this is peter meijer i'm taking my mask off and i'm updating mow constituents. he acts like he has to update us on the stairs. they're all fake and boring. >> greg: tommy brought up trump. the people giving trump crap for being a reality tv host but the fact is he was never dramatic. he was just rude. i mean, he said what he wanted, but he never raised his voice. you never saw him get -- he never overplayed who he was as opposed to democrats who would often accuse him of that. >> erin: i think that's right and with democrats what you generallily see is an outrage factor because anger is a strong e meetings for voters you get th

i am francine lacqua with tom mackenzie. tom: china providing the least cash to banks since november, assigned the the economy is rebounding. goldman sachs and morgan stanley round out u.s. bank earnings this week after jp morgan citigroup benefited from higher interest rates. meanwhile, sky reporting barclays will cut over 100 investment banking roles. plus, french president emmanuel macron and axis controversial pension reform after clearing a key constitutional hurdle. he gives a speech later today. francine: last time he gave an interview, there was controversy. we will see what happens a third time. gains are quite sizable. we will see how the day pans out. tom: we are considering the day that came out from the u.s. on friday, where there were expectations around inflation picking up around the university of michigan survey and also the retail sales out of the u.s. the focus tomorrow is a big data drop for china, that index currently gaining. we will bring you that story in more detail in a few minutes. there also looki

tom: dovish debut. boj governor kazuo ueda keep stimulus in place while calling for a long-term review of policy. the yen is the currency to watch, down more than 1%, we get the details. this is bloomberg. ♪ francine: welcome back to the open. 30 minutes into the trading day and here are your top stories. the yen extends the glands -- extends declines after the new boj governor says he will not as a tate for after monetary review. amazon says its cloud revenue business is slowing. plus, natwest flight on net interest income and an upgrade to its guidance. we will hear exclusively from their chief executive officer. tom: let's check on the markets with the earnings warning from amazon around its cloud services business. until working through some of the inventories and pointing to a stronger second half. the benchmark currently flat after a solid session on wall street. the s&p getting to the highest levels since the first week of the year. the ftse 100 off down 0.2%. natwest will be a drag there. french

tom: welcome to the program. i am tom mcrae. after years of hostility, turkiye and egypt are rebuilding their ties. diplomatic relations plunged in 2013 when egypt's current president led a military coup that overthrew democratically elected leader mohamed morsi. turkey has since hosted a number of muslim brotherhood figures who fled egypt. the egyptian government criticized that, saying it was sheltering terrorists. a decade later, attempts to mend their relationship could have widespread implications in the region and could affect political links, presidential elections, and economies. our reporter has more. reporter: after a decade of political animosity, turkiye and egypt showed they are mending ties. a high level meeting like this one between their foreign ministers had long been considered impossible. yet it took place last month in cairo between turkiye and -- sameh shoukry and mevlut cavusoglu. it is a far cry from 2013, when president el-sisi led a coup against egypt's first democratically elected president mohamed mors

tom: thank you very much indeed.ight. let's go to the story around tesla. we are talking about spacex. tesla increasing the prices of model s and x vehicles in the u.s. you heard that right, increasing prices this time, after shares fell over worries over the recent cuts to rice's and what it does to margins. was bring in another alex -- let's bring in another alex. is this a u-turn, what are they doing on prices? >> prices, they have been cutting them substantially. at the start of the year it was $105,000 more or less. they cut that down to $85,000. the stock has suffered quite a lot. partly as a consequence of that. this week, it was down around 12% at one stage. part of the concern is one of the reasons people invest in tesla is not only is it growing, but it is a product category that a lot of investors think are quite resilient from a pricing perspective. cutting prices is changing the narrative. it will grow at a slower pace, but not at the gross margins we were talking about before. we are seeing a slight for

tom: wow.it all plain sailing for the big beasts and the banking industry or is there turmoil ahead? charlie: we are assertive in the middle of the storm, we are in the middle of the earnings season for banks and some are more reliant on an banking activity, morgan stanley, goldman sachs. they will report later this week as well as some regional lenders. jamie dimon did say he saw potentially some good numbers for regional banks am a so it might not be as bad as we are expecting, but one of the big issues will be deposits. did they leave the regional banks and the huge number we've been expecting? manus: there are reports of barclays are planning to cut some investment banking roles, what detail do we have on that? it is a sky story, isn't it? charlie: yes, is from sky news. it's sounding potentially like 100 roles. not a lot of clarity on what countries or the type of roles, but we know this is in the investment banking division, and what we've been hearing the past year across many wall stree

tom, good morning. tom: good morning. earnings season underway. we have new lines from ericsson coming with a beat in terms of sales and adjusted earnings for the first quarter. adjusted earnings in the first quarter coming in at 4 billion, just over 4 billion swiss, swedish krona. it is a decent beat in terms of the first quarter adjusted earnings for ericsson in terms of sales. that was a beat coming in at 62.6 billion swedish krona versus the estimates of 16 billion on the margin front we know that ubs and others glad the margin improvement as key for this business. 39.8% in the first quarter coming in line with the estimates. ericsson saying it plans to cut costs at a run rate by around 11 billion swedish krona. those are the lines crossing from ericsson, a b in terms of the earnings picture for that telecoms equivalent maker in the first order. manus: let's pick that up in terms of the actual earnings because if you think what is happening in the u.s. -- i was looking at bank of america, 90% of those who have reported in the u.s. have beaten

these guys know la nightlife with the opening of their new bar, tom tom.and i ended up meeting on craigslist. all of the sudden, here we are. fast forward later, we opened up our bar together. it was a match made in heaven. i couldn't say no. we were both toms. whoa! what is it about koreatown that's, like, unique? you have really cool clubs. you've got great food. and the place never stops. you get that new york vibe. woo! i'm done. all right, boys, i won. let's go. [inaudible] for the scrub itself. los angeles has some of the best korean spas in the country. and tonight, crystal spa is the perfect pregame. hey, young! hey, the toms! tom sandoval: we owe him a scrub on us. so i'm getting a scrub. what are you guys doing? we're going to chill out and hang out. - we're just going to chill. - yeah. this is the special royal treatment for you. yeah, i'll trust you. i don't trust these two. but you've got an honest face, my friend. [music playing] this is paradise. johnny, come this way, please. johnny devenanzio: i'm coming. i've never been more excited for a

tom: thank you.up, the ev battle ramping up at the shanghai international auto show as global carmakers vied with chinese firms for a bigger slice of the world's largest car market. we are live on the ground next. this is bloomberg. ♪ francine: welcome back to the open. european stocks gaining .2%. mercedes-benz has unveiled the maibach u.s. sub and the automaker's first battery model. the car is able to drive its hundred kilometers on the go charge and will be true priced around $200,000. the chief executive spoke to us at the shanghai international auto show. >> the brand even at the most explosive side of the portfolio for customers that are looking for something very special the is a brand that has been growing rapidly in the last few years and especially the chinese market has picked up on this. we are selling in china more than 1000 maibach's of the different products we offer per month. i think this is going to be a good addition and i don't know exactly what volume would be but it will be in

tom: u.s.evin mccarthy says the house will pass has $1.5 trillion debt doing plan this week, putting off the chance of a debt default until next year. sources tell us mccarthy has not yet lined up enough votes. let's get to bill faries. what does mccarthy's bill actually entail? bill: under the plan he has put forward, the u.s. would get an additional $1.5 trillion ceiling on its debt issuance in exchange for about $4.5 trillion of cuts over the next 10 years. it's not clear that the speaker has the votes for this. he has a very slim majority in the house, and it's a very turbulent majority. it is hard to keep everyone in line. there are members of the house in its own party who have never voted in their entire careers to support an increase in the debt limit whether the president was republican or democrat. he needs to try to bring in a few of those people and minimize any other defections if his plan is going to go forward as he said it well in a vote later this week. francine:, can he really

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tom: watching that standoff.y with us, valerie tytel with what is happening with first republic. we will have an exclusive interview with the ceo of barclays. that is coming up. this is bloomberg. ♪ 92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today. terms apply. as a business owner, your bottom line home trial today. is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network, with no line activation fees or term contracts... saving you up to 75% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities™. tom: welcome back to the open. 32 minutes into your european trading day. european stocks fo