talks between unicredit and socgen are underway. unicredit is not commenting.monsanto this week. they will raise up to $30 billion to help fund its transformation into the world's biggest maker of seeds and agricultural chemicals. financing was one of the last hurdles to completing the takeover. the trump administration is set to announce a compromise policy on biofuel today. the plan will try to take down costs for refiners in the use of fuel made from coal. oil holding some losses after opec and other producers met this weekend to discuss possible disruptions and adding more oil to t market. here is a statement released by the ministers that emphasized the need for healthy market adequates stimulate investments in the energy sector to ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines some parts of the world. joining us is dan dicker and still with us is burns mckinney. it comes down to june 22. what is opec can do -- going to do? dan: i think that the announcement between the russians in the saudi's wa

unicredit, 3.5%. for unicredit. and for hsbc as well. banco santander. bnp paribas.he banks in the merger speculation story really helping to boost european stocks across the board. as far as the losers are concerned. take a look at the losing side of the ledger. not a lot of these coming from ex-dividend. is ex dividend as is gemini. british american tobacco on the downsi is always interesting. one of the most defensive stocks in the world falling. investors are looking for more risk today. guy: a decent session evolving already. banks are front and center. trading up 5%. some interesting m&a stories driving the markets. to seell be interesting will be if the initial positive session starts to fade. asia had a reasonably good session. pricing in the jobs data on friday. the euro is a little stronger. we have an issue of trade which still looks like it could be a factor as we work our way through the back end of the week. we heard earlier on about the chinese response or the potential response. stepping on this initial rally? let us get a sense of how this initial ma

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

unicredit possibly merging with socgen.reat conversation with jonathan, saying of all possible combinations, this one makes more sense. it comes off the news of barclays and standard chartered. you wondered when this was going to start. i guess maybe it does start this morning. francine: if you look at how italian banks were hammered last week because of political turmoil, you have ask yourself, why would you go after an italian bank, so i think timing is crucial. let's get to the bloomberg first word news. taylor: president trump is headed for a showdown with u.s. allies over trade. members of the group of seven will meet in the back. the european union and canada are threatening to retaliate unless the u.s. reverses course on. bloomberg spoke to the chancellor of the exchequer. >> we are disappointed as allies of the u.s. that they have taken this step, especially if they've taken it on national security grounds. we continue to talk with them. taylor: china warns that it will back out of trade commitments if president tru

unicredit is considering a merger.ccording to the financial times, the italian lenders ceo has been developing the idea for several months. anyfrench bank denied it and callsunicred were unanswered. airbus's newest aircraft has moved the u.s. borders. that the has learned affiliates of singapore airlines opted for the 787. that's your bloomberg business flash. the latest on the market. the shape of the yield curve in the united states might be the most excittopic and fixed income this week. after a mid-may pause, the flirt -- the curve flattened. the phenomenon that dominated for more than a month has roared back to life. it's locked and loaded for the market. john, when you look at the yield curve, we came back to 40 basis points. we touched that level three times. does it hold? which ubs what he has the boys and girls who are simmering away sweating at this point in time? we are hairs breath away from inversion. data murray -- they don't worry that much at ubs? basis points is reasonably substantial. in u.s. raten hi

so, i think that's a big factor, but yet, unicredit, it's a big leap of faith. it would be g leap of faith in the europe for societe generale. >> i can see the rationale by having somebody very large as a bank for business in europe, particularly if you want to create eurean champions to combat the might of some of the american and chinese players, but think about the resolution process, because we don't talk directly about rbs or some of the other banks that have been wound up, but if you think about the process that's been involved, it's been stop-start in spain most recently, you had the ecb selling bank of popular credors wiped out in the process. and in italy, you had banks across bonato that were hard to consolidate and it effectively meant the government had to step in and ring-fence parts of the bank they sold the bad side had to stay with taxpayers. if you start putting banks across more jurisdictions, how is the wind-up process going to hamper the winddown, if the back to you suddenly becomes in strife or difficulties encounter? what is the wind-up pro

at the unicredit.se we are seeing italian banks outperform lead gains among european equities after comments from the finance minister saying there was no discussion of proposals to leave the euro. we see the impact on bund spreads but italian banks are gaining unicredit's, one of the biggest gains among them. matt: thanks very much for that. still with us is peter oppenheimer, chief global equity strategist at goldman sachs. i want to take a look at the tech sector, an area you are focused on. hillary put a chart together and that i think is amazing to look at. over the last five years, the blue line is the s&p 500 and how far it depreciated. and you can see the massive, massive gains that have been made by the tech giants here. these are the fang stocks, the fang index, so to speak. is that not a little bit too far too fast? isn't this looking publishes -- bubbleicious? peter: it's an interesting question and technology has been a driver of this market and some of the stocks have become huge, the one

it is not just unicredit. there was a report about barclays looking at something last week. top management tell government and the regulators ht they were headed for a takeover. you had germany talking about deutsche bank and commerzbank. the question is how many times is the circle going to happen. even if we do not see unicredit, it does seem like there is much more consolidation talk the mitts the european banks as they are faced with lower profits and interest rates. the moral the story from rbs selling at 7.7% or a government selling at 7.7%? ruth: remember 2007. rbs tried to do this, it could not, the government bailed it out in 2008 and now it seems like we have come full circle. the government is trying to sell its stake in look for new ceos. the question is what is next and who is bold enough to take on this with the memories of the crisis so close behind us. mark: and who would want to be cfo or ceo? you are a shareholder in your sitting at losses on 7%, at air france you are sitting on gains of 7%. the point everybody is making in terms of an idea of them combinin

the financial times reports two of europe's biggest banks could join forces as italy's unicredit plotsrge with french rival societe generale. the metro pictures today's service for the victims of the london bridge terror attack. the paper leads with details of a new anti—terror strategy to be unveiled by the home secretary sajid javid tomorrow in response to what he calls a "step change" in the threat posed by extremists. the daily express carries the warning from mps that britain may face a summer of knife crime unless "swift action" is taken to curb violence on the street. the daily telegraph claims theresa may is expected to lift the visa cap on foreign doctors within weeks after nhs warnings of staff shortages. the times says israel has secret files that shows tehran‘s determination to build a bomb and is using them to put pressure on britain to abandon the nuclear deal with iran. the breast cancer revolution. the mirror says the nhs will save millions as a breakthrough in breast cancer research could see up to 5,00 patients a year avoiding chemotherapy. and the guardian pictures r

and erik nielsen from unicredit.good euro pound chart up, what we know about brexit at this point? erik: it is in this. the u.k. government has not decided what they can or want to do. there is maybe a little bit of a isnce that the hard brexit not so big. my guess would be that what we will have is a transition period, maybe beyond 2020. but it is unbelievable. apart from the investigations here, which are mind-boggling, but politically and seeing the economy underperformed so severely, but seeing a major european country in political disarray, i never thought i was going to see it. tom: i look at where we are on brexit and on the path forward into 2018. i can assure you americans are distracted by some issues, like the great immigration debate over here, but what does unicredit look for in the next six months? erik: we are looking primarily on the progress, hopefully, in the european reform agenda to build a more sustainable architecture for the institutions in europe. we saw thethat, declaration between angela mer

the unicredit ceo has been developing the idea for several months.for socgen. the banker is saying the companies would be ready for at least another year. will consider all trade agreements with the u.s. if the trump administration pushes ahead with tariffs. progressides made some in agriculture and energy, and china repeated willingness to ease deficits. donald trump's lawyer says the president says an investigation into his action is not unted. the white house legal team wrote to special counsel robert mueller, arguing the president could not obstruct the pressure inquiry because he involved. of those but really a giuliani says the action would be do it would be dangerous. >> the precedent of the united states pardoning himself would be unthinkable, and it would lead to probablymmediate impeachment. the senate would be under tremendous pressure. of president has no need to do that, he didn't do anything wrong. >> the latest "star wars" spinoff top the box office for the second weekend, despite facing no serious opposition. it raked in just over $29

unicredit is said to be selling at least 3 billion euros of nonperforming loans. is also establishing a partnership to work with corporate debt. is disposal project expected to be finalized next month. companieson after the low-end at the market range. the beijing-based smartphone maker priced shares at $17 each. they took roughly half the companies initial goal. francine: thank you. minister hasrime negotiated a packet of measures thehe eu summit to stem flow of migrants to europe and spread the burden. afterhink we have agreed intensive discussions a good outcome having signed up on common wording. >> a deal has been reached. it is good news for france. it is the fruit of combined work . the national decision would have been either efficient or lasting. >> i think it is good news for spain in that conclusion of the council recognizes the intensity of the influx of migrants. what theof them around united kingdom has been encouraging for some time, which is taking more action in countries of origin so that we can make sure people are not making these very dangerou

don't know, ten years ago, but times have changed. >> well, precisely, and we've seen, of course, unicreditre price decline in light of that story, and that broader question of whether there is a need for consolidation across the european banking space is a topic that will come up, and then, of course, on a personal note for jes, it's a big year and a half f him, just recently put a couple big challenges behind him, and it's interesting to see his take on how significant that is enabling move forward from now on out >> all right, all right, yeah, looking forward to it. you can get -- as long as you need there, just don't talk about football or soccer he's an american guy >> fun sport >> let's check the markets major averages higher for a second straight day now, nasdaq on pace for a record close, but we're in june now, so it's taken the first half of the year to climb up there two-thirds percent gain for the nasdaq, dow up 171 points now. apple a big piece of that. we begin with breaking news from the worldwide developers conference, and josh lipton is out there rocking his lebron beard, jo

financial shares added the most points to the ftse as news that italy's biggest bank, unicredit was exploring the un estimate that globally we throw away one trillion dollars worth of food every year. a lot of that waste comes from large catering operations, the kind you find in hotels, or cruise ships. but now a smart bin is trying to change that, as dougal shaw reports. this commercial kitchen in central london prepares 1,500 meals a day. it provides catering for a museum and a conference centre. kitchens like these typically throw away 20% of ingredients they buy. some are thrown away as trimmings, even though they are edible, and sometimes food ends up in the bins simply because it is not needed after all. to stop this happening, this kitchen has been using a new piece of technology which can simply be connected to a normal bin on scales. this is what is known as a smart bin. kitchen staff use it like a supermarket self—checkout. the idea is to keep an accurate digital record of the food being thrown out. this helps the head chef make more informed choices. it is a shock in the tonnage th

there are reports that italy's largest bank, unicredit, could be looking to merge with france's societeormal approach, but the italian lender is trying to become a cross—border european bank. both banks are trading higher this morning. the owner of clydesdale and yorkshire banks — also known as cybg — is sweetening its takeover bid for virgin money, with an all—share offer valuing the lender at $2.3 billion. a deal between the two firms would create the uk's sixth—largest bank. so many stories out there today, it's hard to cover them all. and the technology just isn't working! it's hard to cover them all. and the technologyjust isn't working! so i can't show you! we will come back to this later. it's the largest civil fine in australian corporate history. australia's commonwealth bank has agreed to settle claims that it broke laws against money laundering and financing of terror. let's go live to sydney. our correspondent phil mercer has details. there seems to be a real crackdown down under at the moment. this is the latest. with good reason, the australian government last year ordered

. >> disregarding this, i know him very well at unicredit it's interesting that we're talking about play books, creating a european giant. systemically we don't need anymore pan european giants. >> that's true at the same time we have very unusual banking in the euro. >> any big banks >> we have too many banks. you're absolutely right. systemically you're creating a banking, you know, sector which is still at risk one of the things about italy the last four months, banks have carried them obviously in defense of last week, that wasn't such a great trade. you know, the banking sectors of france still has a massive banking shector as a share of gdp. there are more bank branss than there are pharmacists. the eu banking model doesn't work we need a banking unit it's a work in progress. >> i know i'm really an old scratch record pying the same song you tell me the italian banks are here and i say to myself, doom loop, doom loop, it's the same old scenario. it is. until the end of march, we saw net foreign buying in sizemore than we saw buying french bonds but that trade obviously would have p

. >> unicredit hasn't commented. it's denying there aren' discussions. a couple of other stocks to watch as well. microsoft is reportedly working on a deal to buy github. it could be announced as early as today microsoft declined to comment to cnbc. >>> palo alto networks tapping a new ceo. aurora had previously been expected to succeed stone as softbank's ceo and then there's tyson foods which has sold the sara lee bakery to private equity firm for an undisclosed sum they're focusing on the core protein food business. >> did you see this? >> the market cap? >> yes, the market cap is there an end in space >> no, there should be. >> the reason i know this, it snuck up on me, but it's now 775 billion in the new york -- "the new york post" every week they have the winners -- >> i'm always looking for "squawk box. satya was one of the winners and passed alphabet in market cap. ballmer didn't screw it up. >> you need to look at a longer term stock longer term chart to see what's happened since satya came in there though. >> yeah. but it was set up -- >> there

unicredit up 5.5%. all about the relief flooding the market for the finance minister says that they are not pulling out of the euro anytime soon. and lets you what is happening in terms of the currency tra europe. looking at the canadian dollar obviously being rocked by what is happening at the g7, but the euro is up, up some .3%. that is else we get euphoria spilling her from italy. keep an eye on concerns about the painful data coming out in terms of manufacturing. vonnie: caroline, thu. let's get the first word news now. the white house says the talks with north korea are moving more quickly than expected. the u.s. secretary of state says tomorrow's summit with north korea can have only one acceptable result. he spoke in singapore today after meeting with north korean officials. and verifiable and irreversible denuclearization of the korean peninsula is the only outcome that the united states will accept. north korea has to completely eliminate its weapons of mass destruction programs. if diplomacy d

stoic -- cally, stay we have some bank bonds and held on, so we have unicredit bonds being hit, but thater a $13 billion rights issue. we added risk in february to equities, unloved u.s. equities. you asked me what is the greatest contrary in trade, i think it is u.s. equities. they are so unloved. i want to get back to e.m. because i know you own emerging-market debt. i have a chart on bloomberg looking at high-yield spreads in asia, which have really been spiking and so i am curious if you are changing your positioning at all in the wake of what we have seen over the past few days and weeks. guessing looking at that, it will be dollar denominated. that was accompanied by a slump in the chinese yuan, maybe that would be cause for concern. asia would be a component of that and we held em local debt for two years. it has been successful. we have taken a loss in the past couple of months. for now, we are keeping with it. julie: where are you positioned with regard to the u.s.? especially as we see the president arriving in quebec. is that informing some investment decisions you are making?

we have new leaders in italy, spain, and we see the likes of unicredit higher. banko santander is higher as well. keep an eye on italian and spanish lenders. also keep an eye on banks like deutsche bank. trading higher today, even as we see standard & poor's cut its debt rating. they say the capital is looking relatively good, liquidity is looking pretty good. particularw those stocks in a moment, but we are seeing a good day for financials. it seems as though relief is flooding the market as we had leadership in italy -- still concern that it is populist leadership. we will see spending rises, but better than the worst-case scenario, which of course for italy, was a new overall election. dit is up. deutsche bank is rising off of that record low we hit yesterday. let's look at another industry group. we have to keep a close eye on another asset class. i am looking at the euro and italian bond. as is where we see the roller coaster week we have had. the euro closing higher. we had a rocky ride at the beginning of the week, italy concerned about the fact that we w

unicredit trading positively, up more than 4% another thing to look out for is the italian bond market. both the ten-year and the two-year, the yield dropped significantly compared to tuesday. the two-year is currently down more than 43 basis points. pretty positive news in terms of that government debt in italy. that at one point got down to close to pre-tuesday levels after that wobble. we're joined by silvia deangelo. on the assumption this new cabinet under conte gets sworn in, approved by parliament next week, do you think we can see changes to taxation, that new spending being rolled out quickly or is that going to take time >> if we look at the coalition agreement, it includes several measures most of all they imply higher fiscal spending or a reduction in revenues. however we have mixed signals from the designated finance minister they're in favor of change towards a flat tax system, but it's more skeptical about the universal income so i would expect these measures to be implemented gradually. also i would expect some debate with european institutions all these measures might

the strength of the economy after a mixed set of first quarter data joined by daniel vanatta from unicredit. thanks for being with us what do you expect from the vote today? >> i think the vote will be 7-2 for the bank to remain on hold with the rate. the event should largely be a flaun-eve non-event today. most members of the committee are looking ahead to the august round where there will be the inflation report, a new set of forecasts, and more data by that point. data recently has been mixed not all of the data was temporary, and there are signs that there is further weakness in the economy most members will want to wait for more data. >> let's dig into this data. we talk about a temporary soft patch in the early part of this year you're questioning whether it ends up being temporary or more sustained. what about the data you've seen indicates it could be more than temporary? >> we've seen the pmis of business surveys rebound a bit ading indicators are not muchthe improved >> industrial production you mean >> no, the manufacturing pmi, new orders for inventories ratio, that's fallen fur

that even unicredit in germany. it is almost all periphery banks.nof german and banks getting thrown in there as well. let us take a look at some of the big losers today. there are not many. we have about 500 stocks on the stoxx 600. up and about 30 are unchanged. here are some of the losers. society bic is falling 2.1%. h&m is falling. for the most part though, in today's market, you will see gainers across the board. let us get the bloomberg first word news. juliette: america's closest allies will impose hit for tact penalties. tat penalties. the eu says it will retaliate immediately. mexico has said that donald trump has shot himself in the foot. while canada says these are an affront. unfortunately, this is the worst case scenario. tariffs on allies. mexico had already considered this scenario and we have announced today that we will take action. could beanada considered a national security threat to the united states is inconceivable. : deutsche bank's credit rating has been cut by one notch. the downgrade is a below to christian sewing as he t

unicredit has gotten exposure into turkey so they make outperformed the upside.about the individual names? matt: let's take a look at the individual names. first off, this is the brent. 98 gainers, 436 losers on the stoxx 600. clearly it's going to be a rough day for stocks. taking a look at the losers here, right up at the top there you see royal dutch shell and bp. obviouslytocks and when they fall they tend to drag the rest of the index, especially when they fall this much, 1.5% of these. it's going -- a piece. it's going to be a difficult place for stocks. ing, bank a santander, the bank stocks coming down, when big oil and big banks fall, is going to be a tough day. not a lot of companies, only a couple going ex-dividends. some of the leaders today, minority of bank up there at the top -- nordea bank at the top. he see biotech and pharma firms rising. not a lot of big gainers, certainly not putting up gains in size. guy: let's take you back to turkey, markets gapping higher. this is the ftse 100. it has risen, just fading a little bit at the moment, but a si

unicredit is said to be selling at least 3 billion euros of nonperforming was not looking for adeals. italian bank is also expanding a partnership to manage troubled corporate debt as part of its cleanup strategy. reducing $700 million of nonperforming loans and the plan to finalize the sale is next month. that is your bloomberg business flash. alix: time now for a first half wrap. we will look at the winners and losers over the last six months. member the beginning of the year when you were coming in and saying it would be a weak dollar , you definitely wanted to do be in e.m. and europe, oil with the range bound, all of that one out the window. oil got hammered. oil, the big surprise, up 20%. joining us now are bill smead and alicia levine. alicia, what did you learn over the last six months. synchronize growth is no longer synchronized and now we have the virgins. that started to play out in february when we had signals of inflation in the u.s.. alix: you can really see that in the dollar. if you come inside the bloomberg , the decline that we saw earlier in the year but the monste

what is the follow-up on unicredit's? to day three on the idea of bank mergers in europe?m regulators there is more of a chance they would welcome a merger. a merger that would be healthy. we heard yesterday that theoretically this make sense. we have not heard from either side that this is something they would go ahead with. each chief executive is focusing tom: we will touch on mr. ahmadi and -- in a moment. here is taylor riggs. >> the u.s. has quietly asked saudi arabia and other opec members to boost their production. u.s. retail gasoline prices have hit their highest level in three years. president trump has publicly complained about opec and rising oil prices. the u.s. is not backing off its campaign to isolate north korea economically. the white house says there has been no change in its program even while preparations continue for next week's summit. a spokeswoman reiterated that sanctions will stay on north korea and lessig gets rid of its nuclear weapons. it is the first public test for italy's new prime minister. lawmakers and the public want to see if he will

economist for unicredit. i want to push back with your european heritage to the migration crisis.ne on this. it won't go away. it has consumed europe and america. >> yes, it is. the number of refugees has come down. the debate we see in europe and because of thel 2015-2016 decision by angela merkel to let refugees into germany, and integration is tricky. the numbers have come down dramatically, so if we had not , ie this one time period think the immigration debate would be easier. i think it is healthy and necessary that we have the discussion because we as with many other things in the european union, we need european solutions rather than one country talking to another. it may be the next step forward sometimes nothis pleasant debate, but we need to come up with a better solution. when you lord browne, look at trade tensions, europe, monetary policy, is there a region you worry about more than others? probably quite a few. they change from day to day. i worry about the relationships between the u.s. and china. i think that has to be something that has to look to the long-term.