u.s. europe talks going on on that trade relationship in theory of the chinese situation were to be resolved or this process would just fall apart it's possible that those preexisting tensions with europe could then come to the fore maybe on the main burner would be china now would be. u.s. europe trade junctions and there are a number of significant issues there what's the interaction here between the process with china and the process with europe. well there's a pretty interesting dynamic going on here because some of the things that are on the on the plate with regards to the u.s. china deal or concerns for europe as well market protectionism is ones they don't business is another. competitive environment for smaller businesses a third concern and those are all concerns not just for u.s. companies but for european companies as well depending upon the context of a trade deal with china or europe may find themselves in a in a place where they benefit with no deal and they play it may find them t

u.s. and europe and in asia. and today in european futures, big gains again. 0.5%, doingup about the best out of the bunch is of gdp numbers that came out. ftse futures up almost as much. what do you see? picturereally resilient coming through, and the chinese markets, despite weakness in the data. it is industrial output, retail sales, or manufacturing investment, at its lowest rate since 2004. some of these numbers are week, but we see the index up. and ongoing speculation on what policy support the chinese will give, something that has not escaped president trump's attention. the currency markets, we see weaknesses in emerging-market turn sees. the australian dollar is weaker, reflecting the chinese data. let's look at the other side, mixed really in terms of fixed income markets. iron ore higher. some of the markets hit by trade war concerns are bouncing a little bit. we are seeing the commodities space in general may be starting to catch up but we have seen an equity markets in reaction to trade tensions. oi

u.s.-europe, usmca. we are not getting anywhere, are we?hael: no, we are not getting anywhere at the moment. flying under the radar, the usmca. tied in taking front and center for everybody at this point -- china taking front and center for everybody at this point. the latest we have is president trump saying china is not ready to make a deal, i'm not ready to make a deal. the next round of tariff increases go into effect on saturday, from 10% to 25%. what happens next week? do the chinese blank? do they add on extra tariffs to the u.s.? we've already seen bloomberg reporting that the chinese starting to buy soybeans again as an effort of good faith when talks started again have stopped buying them. vonnie: at least the rhetoric went away. let's take a look at the data we got this morning. we had the u.s. goods trade gap widening, but if you look at the chart, you see this massive move back into thousand 8, 2009. 2008, 2009. here we don't see as much. michael: the trade gap keeps widening. the president came into office promising to narrow

u.s. companies within europe. passivelyf go almost -- past of lease resistance gets you there. ow you like tech. you like u.s. stocks and tech. i'm looking at the breakdown of the s&p 500. this year to date, tech stocks have done the best, up 23%. they had a rough fourth-quarter. on a 12 month basis, up only 8%. losers, financial materials, energy. do you see those recovering any ground? whata: financials, financials need is higher interest rate. steeper yield curve. . that'sarly in europe, difficult to expect. here, little bit better possibly on expectations of yield. but you need to see steeper yield curve. another big challenge is loan demand. that's a problem. anna: thank you very much. up next, from recovery to growth, the ceo tells bloomberg about the journey and why consolidation will be difficult in the banking sector. we'll bring you that exclusive interview with francine lacqua law. that's next. this is bloomberg. ♪ matt: 30 minutes into the trading day, let's get your top headlines. expect retaliations. stocks fly as chinese media blast the u.s. for wrecking trade neg

europe is sorting out where once to position itself. at the end of the day, there was still be incentives for the u.s. and europe to align themselves around these issues. you might not see the level of tit-for-tat you are seeing with the u.s. and china with the eu and china, you see generally acceptance over time of the legitimacy of the u.s. barriers. vonnie: what you do if you are big investor in something like technology, telecom, this kind of industries where the snowball effect will be most prominent? michael: if you're talking about a large multinational company, the first thing you do is make higher expectations of because you'll have to lift your supply chains. this is one of the reasons our equity strategy team next there is more downside. in 2018 you had positive policy effects from tax reform and tax cuts. some of that give back now around higher labor costs is going to be augmented by the fact that you will put more for a varietyex of reasons, but one of them will be supply chain diversification for a variety of economic and national security reasons. vonnie: are there any upsides in the se

u.s.'s favor, back to europe and the rest of the world.n top of that, the markets are thinking, if this escalates, you could see some shift in reserve currencies. that is not a base case, but something to be aware of. if you see china retaliating by reducing their exposure to the u.s., then the beneficiaries will be other reserve currencies such as the euro and the yen. jonathan: diana, great to have you with us. coming up on the program, the auction block. the corporate debt market recording its busiest week in eight months despite turbulence across asset classes worldwide. that conversation is up next. this is bloomberg "real yield." ♪ ♪ jonathan: i'm jonathan ferro. this is bloomberg "real yield." i want to go to the auction in theow, where we begin united states with the treasury. seeing the weakest demand for its benchmark 10-year note in a decade. the $27 billion offering coming in with the lowest bid to cover ratio since 2009. elsewhere, hellman and friedman with the carlyle group sold notes to extract a payout of $1.9 million from

cars in the u.s., europe, china.ting visibility to how that is going on all three continents has been very difficult. they also say they will deliver 360,000 400,000 for the year. dan ives doesn't think they will make that. if they don't, that will be a problem. they just raised $2.4 billion. that is why this downturn is sort of incredible. they just raised $2.4 billion. in nine of the last 10 trading days, they closed down. emily: thank you as always. coming up, chips down. president trump's threat to choke off huawei reverberates across the supply chain. how chipmakers are faring. this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the e

u.s. sanctions. vonnie: any reaction from europe yet? what do we anticipate? for: we are looking closely reactions from the french, german, and u.k. government because they have worked the hardest to try to find a workaround to u.s. sanctions on iran. they want to keep this deal alive, and they are the ones the trump administration is trying to put the pressure on. you.e: bill, thank the euro now trading just off session lows. let's check in on the bloomberg first word news with kailey leinz. kailey: special counsel robert mueller will make a statement on the russia investigation at 11:00 a.m. new york time. he isn't expected to take any questions. he has not made any public statements on the probe since he was appointed to the investigation. china has found a new way to battle the u.s. on trade. according to chinese media reports, it is gearing up to utilize its dominance in rare earths. it may restrict exports to the u.s., who uses 80% of those minerals from the chinese. an ethiopian airline pilot warned about the dangers of the 737 max after the indonesian c

weapons use so far we cannot confirm it but we are watching it it's an interesting situation the u.s. europe allies spending billions infiltrating bombing fighting isis al qaida in afghanistan. in iraq in somalia or the middle east yet in syria's neighbor al qaida is biggest stronghold taking their side if in directly demanding that the syrian government leave them alone taking seriously their claims and statements about chemical weapons zeiss a remarkable terrorism specialist jennifer breen says damascus should go on the offensive an adlib. it's not going to be possible to to fight terrorism without going to the terrorist strongholds and that's absolutely necessary we're talking about a group h.t.s. which is an offshoot of al knows or a link to al qaeda so this is a very serious terrorist organization and it's also a terrorist organization that's in a place with a very large civilian population most of these civilians have been displaced or internally displaced because of the war because of other terrorist organizations and so it's crucial that this area be targeted to to undermine these te

u.s. is warning europe that it's a ron work around good face nanctions -- that its ira work around could face sanctions. it is threatening penalties against the european union in a treasury department letter. we will bring you more on this in just a few moments. back to the bottom market. morgan stanley strategists say the u.s. yield curve clearly indicates a downturn is coming, as well as rising recession risk, regardless of the trade outcome. joining us to discuss is cr invest the management cio -- is cr investment management's cio. is this all about a recession coming? guest: if you are referring to the collapse we have seen an interest rates, i think it is a little bit of an overreaction. markets have gone from thinking everything is flawless to know everything is hopeless. really, there is just an increased probability of a

jonathan: importing waste from u.s., europe, and japan, has been profitable in asia.r regulationsfond a woe willing to tackle the hazardous job of processing it makes malaysia a cheaper place to send it. that is coming to an end. owresponding to g public complaintsen, reporters were t to the country's main port and shown nine containers with mixed plastic and electronic waste. she ordered them sent back to their countries of origin. the philippines government has also demandethat canada takene back 69 contai of rubbish which had been running in filipino portss.or several ye thailand says it will ban all imports of plastic and e-waste within the next two years. pressure is building on indonesia to follow suit. all these countries have experienced a dramatic increase in waste imports since china banned them last year. much of the waste is wrongly labeled, and poor law forcement needs it is often dispose of unsafely. some of that plastic waste my be because of the poor control of waste endi up in this part of the world. it is a massiveem probecause of developed countries

u.s. allies in europe who are caught in the middle of this escalation between us and iran the u.s. has the sanctions against buying iranian oil while the iran is threatening to restart its nuclear program if those countries in europe do not help it get out from under these u.s. sanctions so pointing the fingers now directly at iran for the oil tanker attack now maybe setting the tone for these talks between palm pale and the u.s. allies in europe a miser there seems to be some mixed messages coming from washington only u.s. strategy towards iran what is president been seeing. well that's right the latest comments from president trump when he was visiting japan was that he was open to renegotiating this deal about iran's nuclear program and he directly said he renounced regime change in iran but that does contradict statements we've heard previously from his advisors john bolton known iran hawk who has advocated for regime change in the past so perhaps looking at the actions of the u.s. will speak louder than these contradictory statements as we know there has been a military buildup

u.s. trade war do you think it will work. well i mean what europe certainly will try to avoid is higher tariffs on car imports so this is one of the big items on the table when it comes to the trade talks between the united nations and the european union and sold that europe is buying more gas from the united states actually could help and smooth those negotiations a bit and then on the other side it also could be to the benefit of europe it can't really hurt if you have more suppliers and you do not actually depend so much on the gas imports from russia and then for the united states was the fracking boom here we see record production amounts of gas and of oil and sold the united states is clearly looking for more markets to sell oil and also guess and speaking of selling we have corporate news we're hearing that meat alternatives company beyond meat really gave investors something to chew on in its first trading day how did it go. you know it's supposed to taste like meat looks like meat but it is not mead one of the main bases of the product from

it has a bigger impact on europe than the u.s..ould like to see the euro hasn't appreciated. alix: the path of least resistance? think both in the u.s. and europe, you are changing economic fundamentals. we believe it will be anchored at 2.5%. hence we know volatility. sticking withl be us. we are moments away from the jobs report. this is bloomberg. ♪ ♪ alix: this is bloomberg daybreak after little bit of a risk here the highs up by 10. the dollar strength permeating here. euro dollar lower. you have yields up up by two basis points on the 10 year. and commodities also starting to turn around here as we wait for the jobs numbers. and now wu we turn to for the labor department. added beating expectation. the unemployment rate declined to 3.6%. that's the lowest since december of 1969. meanwhile, average hourly earnings rose six cents to $27.77. that's an increase of 3.2% year-over-year or .2% over the month. the labor participation rate declined .2% to 62.8%. and there were significant gains in various sectors in professional and b

u.s. and europe.fficially donned. >> telstar will now rest for 2.5 hours while its solar batteries build up energy for another epic. >> telstar celebrated this achievement and became a high-tech celebrity, praised by politicians and journalists and referenced widely in popular culture. that's no moon. it's a space station. >> live by satellite became a relative -- became a regular feature. >> mr. gorbachev, tear down this wall. >> with the ever present shadow of the cold war looming large, telstar rock -- marked a rare victory in the space race for the united states, which at that point had to be in by the soviet union with the first satellite, animal and man in space. unfortunately, the first telstar and -- satellite was damaged by a nuclear bomb test which led to the satellite's early demise. nevertheless, it demonstrated that live communication by a satellite was feasible, proving the concepts laid out by early visionaries. soon to follow were more advanced satellites, like a much higher geosynchro

cars in the u.s., europe, china.ting visibility to how that is going on all three continents has been very difficult. they also say they will deliver 360,000 400,000 for the year. dan ives doesn't think they will make that. if they don't, that will be a problem. they just raised $2.4 billion. that is why this downturn is sort of incredible. $2.4 billion.ed in nine of the last 10 trading days, they closed down. thank you as always. coming up, ships down. president trump's threat to choke off huawei reverberates across the supply chain. how chipmakers are faring. this is bloomberg. ♪ bloomberg technology, i am emily chang in san francisco. impact of trump administration threats reverberated across the supply chain monday, including among chipmakers. to discuss, we are joined by s tom gilesditor and ian king. what is happening? >> the people who police this kind of matter are telling employees look, for now, until we get the resolution, we don't do business with huawei. no more orders, business contact, those kinds of t

china and u.s. europe negotiations?ferences the close relationship between syngenta abe of japan and president trump. even though we do not expect a lot of breakthroughs during this visit, there is going to be lower-level talks. we are not sure if the leaders will discuss this looming threat of auto tariffs the white house has pushed off until november. we know these leaders have cultivated a close friendship and the japanese are hopeful they will be able to leverage that into a favorable deal quickly and potentially avoid the auto tariffs overall. we have heard this before. they have a good relationship for a long time and even though the white house was saying we could see a deal as early as this trip, obviously that sort of progress has not been made. presumably, as the situation gets more difficult with china the president will need allies, one of those could be shinzo abe. presumably he does not want to burn bridges. justin: i think that is right. one thing the president will work on his even if they are not able t

had planned retaliatory tariffs on $20 billion of u.s. -- europe had planned retaliatory tariffs on $20 of u.s. goods. carl sales were soft, and so were purchases of materials, suggesting that consumer spending would be subdued this quarter. in turkey, the foreign minister says delaying the purchase of a russian air defense system is not on the agenda. the u.s. doesn't what the turks took buy the system at all. the u.s. argues that the russian system was designed to shoot down american and allied aircraft. america's baby bust isn't over. a new government report shows yearthe birth rate last was the fewest in 25 years. experts aren't sure whether women are postponing motherhood or forgoing it entirely. the number of teenagers having babies dropped 8%, also to an all-time low. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is bloomberg. vonnie: thank you. now we want to get to washington, d.c., where treasury secretary steve mnuchin is sitting before the senate appropriation

u.s. and europe. china, we'll see how things go, especially with the tariffs discussion. the average selling price holding up at a reasonable level, allowing them to generate reasonable cash margin on the cars. noises an awful lot of around the organization, and folks are looking at arguments they made previously because the charts aren't looking attractive right now. taylor: when you talk about cash generation, we have to address the path to profitability, something elon musk at the end of last year said he really wanted to achieve this year, and really every quarter going forward. do you see that at risk? ? for later on this yearc? colin: we aren't super concerned. we think the level of $35,000 on cash cost for model 3, the average selling price for those vehicles will be about $50,000, so there's a healthy margin there. and at volume, you are easily getting over the hurdles on a quarterly basis. is, what we're looking at the need to drive costs down, and they are taking the steps they need to get down that path over the next two years to get the cost metrics down to th

u.s. and europe so they feel like europe and in particular germany and france should take responsibility and. result was issues. he sure is going on in the region so for example people do not talk about what is going on in terms of social transformations in terms of for issues related to. demographic terms so for us to ration for you as well does he should i kind of play into what is happening now so he. was a factor but i think they are that picture should take into consideration much more factors well no tad lives some lie perhaps catalyst in the sahara region thank you very much for the time. that's the fun now from d.w. news africa you can catch all our stories on our web sites on the facebook page many. cross africa many of you now with pictures of south africa where just back in the day. the food. cause for celebration world press freedom day may third on d w what's the connection between bread. and the european union the nose gear e.w. correspondent and alan baker can stretch this can line to the moon sponsored by the . stamping recipes for success strategy that make a difference. bak

u.s. and europe?u see, europe, like any other parts of the world, are caught in the fight between the u.s. and china. the reality is europe, again, like africa, like other asian countries, like latin america, rely on the u.s. and rely on china. they buy from the u.s.. they export to the u.s. and china. if we talk technology, this is a global market. it is meant to be one market. the risk i see with all these measures being taken is a fragmentation. the fragmentation of the trade, but also a fragmentation of the technological field. the digitaln of state. this would not be good news for the efficiencies that this global market can bring. nejra: thank you so much for joining us. we have lots of great guests for you coming up this morning. in the next hour we are joined by the ceo of ubs. u.k. time we will speak to marco aldara. -- hourarrow later later, look ahead to european elections. manus: conversations continue at 11:00 a.m.. i will also talk to the oecd chief economist. , the chancellor of oxford

europe now? the countries -- in terms of trade war to the u.s. and europe as you move public bunl in excess, and pudge -- is very close to 60%, which is quite -- but when you have one thing, and germany is the good news, but when you have -- you also do use it >> especially exactly. they've got the firepower. they're just not using it. very nice segue. i want to talk about the trade numbers today that came out of germany. german exports had received an unexpected bounce from march adjusted exports rose by 1.5% in march. that is in contrast to a reuters poll which predicted they would shrink by .3%. in aggregate they have posted a current account surplus of 30 billion euros. that is the highest in the last two years. >> well, let's stick with the concept of trade here in europe because the upcoming trade talks between brussels and washington are not far off. the dutch prime minister told cnbc at the e.u. summit in romania yesterday that the bloc, that's the e.u., would be able to retain a united front when it comes it those negotiations. it doesn't

u.s. and europe. this could strengthen hardliners in tehran. could further sanctions force iran to its knees. shine arche on what are you hearing from friends and relatives in tehran in iran about the situation there . scientists are imposing off those u.s. your military sanctions. it was there for example as a prize goes high $45.00 present compering to previous years. as approximately 40 per cent but. we don't. really should not have illusion because iran has expert 40 years' experience and in very. doing sanctions yes the sanctions hurt iran but it will not bring iran to the knees it won relating to what will come 20. $2020.00 in the next us presidential election there's basically 2 definitions of bringing iran to its knees one is whether prolonged hardship would possibly cause the population to rise up promote a resistance against the regime and the other one is whether it would essentially force the regime to make concessions you're saying neither because if you also look at soros also university of maryland you see since the sanctions. pe

china, u.s., europe.hat's really what we advocate >> we're joined now on the phone from tuscany by roderick albert, the former deputy director general at the world trailed organization he is a senior advisor to european center for the political economy. thank you four being with us one of the extentivereasons fo the trump administration to initiate that condition frontation with china was the deficit when it came to trade between the u.s. and china a, how reasonable a pretext do you think that was, and, be, have these tariffs, have these measures had any noticeable impact on that deficit >> would i say it's quite clear to the rest of the fragd community that china unilaterally is illegal because it's contrary to u.s. commitments made in the wto at various times. first of all, when they joined ask then subsequently in various -- they've committed themselves to take charge. it is not about a certain level. we're not worried about that that's the first question. has it had any effect? well, i don't think at

u.s. and europe and getting the replacement, such a difficult task.s it better to do that, even if it delays the 5g rollout by a couple of years, rather than have some concerns we have when it comes to huawei and 5g technology? max: so in terms of what has been happening in the u.s., we should probably say, there has been a de facto ban on certain huawei equipment in the u.s. that has been going on for years. major carriers don't buy huawei routers, because that has been a u.s. government concern. the buyers of that have been carriers theal , ones who are upset about this. whereas at&t,, it is not that big of a deal. the bigger deal is in europe, and in the rest of the world, particularly in europe, where 5g is important and there are these big digital industries. countries including england, germany, decided years ago that it was fine to do business with huawei, over our objections, and now the u.s. government is trying to say, hey, you need to reconsider that. taylor: a story that is not going away. we know that for sure. thank you for joining me. c

u.s. or europe wants a piece of the rapidly growing industry france and germany announcing today a joint effort to kick start battery cell production in their countries with state subsidies to the tune of billions of euros. electric cars and charging stations are still something of a rarity last year just two million electric cars were sold worldwide. but that looks set to change with all major carmakers hutchings plan to develop electric models. of course requires batteries. at present battery cell production is dominated by asian companies those produced for tesla for example are made by a japanese company panasonic. now europe wants to get in on the game germany and france have launched a project worth over five billion euros to develop battery cell production among the games staying competitive against the united states and china. we don't just want to meet demand from the european car industry we also want to export globally and make it clear that the tree is made in europe represent an important quality standard for electric mobility and other alec tronic up occasions . around a billion e