this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.k: live from london, i am mark barton with the european close seven or so minutes away. vonnie: a special we didn't, these are -- a special weekend, this is an apple is, maryland where president trump is taking -- annapolis, maryland, where president trump is taking part in the naval academy graduation. monday, they remember all of those fallen in service. that whileports president trump has reached a tentative deal with china on zte. the president earlier set a summit with kim jong-un what still -- could still take place on june 12. joined by kevin cirilli live at the white house. getting vertigo or something from this korea summit. the koreans expressed their disappointment and the president said it could happen. the logistics are not as easy as that. kevin: the president saying the singapore summit may be back on. he had this to say. president trump: we will see what happens, it could be the 12th, we are talking to them and they want to do it and we would like to do it. kevin: the n

vonnie: thank you. lots more coming up on "bloomberg markets." next, the politics of disobedience. former greek finance minister yanis are focused joins us -- yanis varoufakis joins us. we talk the hour, with germany's ambassador to the united nations. at 6:00 p.m. eastern, we will speak with larry robbins. this is bloomberg. ♪ mark: live from london, i am mark barton, with the european close a matter of minutes away. am vonnie new york, i quinn. yanis varoufakis is back. the former greek finance minister just launched a new realistlled european does it. -- european realist disobedience front. joins us here in our new york studio. welcome. tell us about this new party. what does it stand for, where will it be a presence? greek political party. event the great depression of ideas and this sort of delusion that things will get better if we continue to do the same thing, which is propagating our nation's great depression. it is not just a great political party in the sense that we have a movement. we call

vonnie: i am vonnie quinn. this is "bloomberg markets."clusively with bloomberg at the global solutions summit in berlin. >> i know that the italian pro-european.y it is the country was at the founding of the european union, and they are always forcing development of progress, so i think we could be optimistic about new governments, something the more not change pro-european approach of the italians. >> will this impede on progress in europe? macron wants to get this project ahead. is this possible to get real substance together? support president macron, the idea that we need progress and urgently in the european union and worked very hard to get the progress, and i think there is still the chance with what is coming from the last meeting in brussels, where they found a way to decide upon the next steps for the union which is important for the european future. it may be a scene -- a sign for the progress. on wants to build something like the rescue fund. is there leeway to do this? would you support it? mr. scholz: now is the time where w

vonnie: thank you. coming up, the president's men arriving in beijing for trade talks as china hardens its stance. we will be talking about that. let's get a check on the markets. here is the picture for the dow, the s&p 500, off their lows. this is the reader is down nearly 18%. logic and aig are down about 10% pete's -- a piece. yum brands, 2% apiece. this is bloomberg. e. this is bloomberg. ♪ york, i'mve from new vonnie quinn. mark: and live from the city of london, i am mark barton, counting down to the european close. president trump team is arriving in beijing for trade talks as china says it will not be submitting to any threats. thank you very much to our guest for joining us. what is the best that is going to come out of this gathering between the two trade teams? what is the best possible outcome? realistically, the realistic outcome is the lack of further confrontation. look, the chinese are currently talking tough, but they are not yet ready to stand up fully to the u.s.. they will. it is in

vonnie: from new york, i am vonnie quinn.his is "bloomberg markets." it is decision day for the fed. the central bank not expected to raise interest rates today in spite of inflation hitting the target on the ecb. a bloomberg by intelligence rates strategist. to some extent the fomc decision was the lesser of the events. >> it seems that way. the announcement that the treasury department will be issuing more bonds is not a surprise that they are issuing more bonds, but it gives detail as to where they are issuing more bonds. they will be issuing more t-bills in the future. now they say they will issue $3 billion more in two-year notes and three-year notes will they keep on issuing many more two- and three-year notes. vonnie: this will flatten out the curve because the 10-year yield back to down and the two-year's backup. -- back up. ira: i think curves generally will continue to flatten, and supply is part of that story from a relative value perspective. what the fed will do is more important from how dramatically and quickly

vonnie: and i'm vonnie quinn.uropean close on bloomberg markets. ♪ mark: here are the top stories we are covering from the bloomberg and around the world. the iran deal fallout. president trump's decision is affecting companies in the u.s., europe, and around the world. and deutsche bank considers sweeping cuts that could result in the firm losing 20% of its u.s. staff. and burberry sings the blues. a major shares after investor sell his stake. here is what is happening in european equities. we are 30 minutes away from the end of the session. what thentemplating trump decision in hereon means thecountries across european spectrum. stocks are rising for the fourth day, the best day since march the 12th, gh

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn.aroline: and from london, i am caroline hyde. this is "bloomberg markets." now david herro, harris associates chief investment officer of international equities. 57% allocation in europe, with top holdings in german carmakers, italian banks, and glencore. david, test knitting of the companies you are focused on. car companiesinto in particular. it has been a rocky ride in in the unitedfs states. where you said, how do you see bmw and a daimler and whether they are committees doubling down on? david: there has been push and pull on the carmakers. at first and foremost, you look at how they are valued. almost ridiculously low valuations. soldusinesses that are growing earnings and cash flow streams with extremely healthy balance sheets. onpite the tariff threats those committees, keep in mind that bmw and mercedes in a huge presence in the united states and manufacturing footprint. it is unknown how they will be tariffed, if at all. on the other funny talking one of the biggest markets,

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. itnd from london, mark barton. jamie dimon said buckle up for higher yields and volatility. higher.s are going classes it possibility that growth accelerates and inflation accelerates higher than you expect in the short end? attenuating up, not down, as in the past. a more moderate tone from the fed chairman, saying that clearors can expect communication. >> we will continue to communicate it as clearly as possible to help align expectations and avoid market disruptions. will help to build resilience in the system to support global efforts to do the same. jay powell, speaking in zurich. vonnie: we will continue to monitor the oil markets that are beding out of had -- out of . just a while ago, crude took a bit of a nosedive. trading at 68.27 per barrel. rent is also following, but not by as much -- brent is also following, but not by as much. at wheree a look european markets are trading as we wait for the trump decision, as you said, 2 p.m. local time there. we are getting close to i

vonnie: in new york, i am vonnie quinn. china hitting back at donald trump's plans for tariffs, saying it damages america's standing 10 days after a joint statement by the u.s. and china saying the trade talks were on hold. kevin cirilli is live at the white house. kevin: i hear china is trying to coalesce countries to push back against president trump's trade policies. the president earlier proposed a 25% tariff on $50 billion worth of goods, including imports from industrial significant technology. the final list will be published by june 15 and investment restrictions could be announced by june 30. i spoke with a sorts who talk to the white house -- source that talked to the white house and he said this is part of a broader push for the administration to take and more aggressive stance against china. wilbur ross set to visit china this weekend. the chinese do not like this. a quote from their foreign affairs minister said, "every flip-flopped in international relations the police a country's credibility -- depletes a cou

vonnie: now to turkey. fell down nearly 5% amid worries that the turkey central-bank could or would step in to support the currency. emerging markets investor mark mobius says the pain can spread. >> there's no question, it is a gentle movement, how the market is down. they are big etfs, now. once those machines start selling, you get a knock on effect and a snowball, so to speak. vonnie: that was -- benjamin harvey joins us. the pressure has been relentless. is their fear that someone will step in, be it the central bank or erdogan? is stuck insh lira a face-off between the president, who has called interest rates the mother of all evil, and the central bank which knows that it has raise rates significantly to get ahead of this rout. everyone seems to be winning this battle and pressure is building for the central bank to call an emergency rate meeting. the next meeting is on june seven, analysts questioning how deep the currency rout can go until then. , who has beenn absent lately, will make an appearanc

vonnie: live from new york, i am vonnie quinn. mark: i am mark barton.opean close minutes away. let's get to italy. pushinglist leaders their head-to-head bargaining for a new government. let's playing in -- let's bring in bloomberg's john in rome. is it looking that these populist forces are going to forge a coalition? john: yes. by their own account and speaking to officials in both parties, everyone is optimistic. smooth outhave to differences in the program and more importantly they have to agree on a new premier. the clock is ticking because they have to report to the president on sunday. mark: what are the issues that , that bring parties them together? can the ones that divide them be ironed over over the weekend? john: it looks as if that might be possible. they have experts in each sector who are negotiating together. the key issues which would seem to be in contradiction of the five-star plan for a citizens income for a poor and the plan for a flat tax for everyone. have kinds of issues may different names and may come out with compromises. the

this is bloomberg. ♪ vonnie: i am vonnie quinn in new york. this is bloomberg markets.eadlines on goldman sachs -- some moves for goldman sachs. the trading co. heads based in london -- goldman releasing the news in an internal memo. the co. heads of trading will step down in june crude we will bring you more as we get it. u.s. and china signaling desires to avoid a costly trade were, president donald trump offering a lifeline to china's beleaguered telecom giant zte. we are back with ian bremmer is this reversal on the part of resident donald trump or reaction to the -- president donald trump or reaction? is a shift. it is interesting to see that tweet that came from trump yesterday that he said he was concerned china was losing far too many jobs by him basically bankrupting zte. the back oft run on creating chinese jobs, so i think he might -- he would like to take that tweet back if he could redo it. that was a little shooting from the hip. but it has been clear trump wants to find a deal with the chinese on trade. secretary nugent -- mnuchin was sent. china sent the

vonnie: in new york, i am vonnie quinn. this is "bloomberg markets."ine: the milking institute global conference is in full swing in beverly hills, california. let's go to erik schatzker standing by with a key voice in multi-asset investment management. erik: thank you so much. i'm here with paul hamill, the head of fixed income at citadel securities from one of the largest firms in treasuries and swaps. paul: morning, erik. erik: how focused are your clients on what others say it is the key threshold of 3% yields? paul: very focused. rates are part of our fixed-income business. it is a very important psychological number. most of what usually is what it -- most important is what it reflects. continued momentum, continued confidence in this momentum story. but the thing to watch is how gradual inflation will come through. we have seen some recent numbers that suggest it is very gradual, a smooth entry point. of course, the 2% number has been out there for a while. people are calling for the $2.75 to $2.85 ratio. this change at all as the 10-year purcha

vonnie: i am vonnie quinn robert lighthizer says the u.s.exico are nowhere near a deal to renegotiate nafta. china is pushing back on reports that there was an offer to reduce the annual trade surplus with the u.s. by $200 billion. mckee.by michael let's talk nafta. is there a deal? michael: they are not near a deal. both of these trade issues are more political deals been trade deals at the moment. with nafta, hope they could get a win, they could get something that would appear to improve u.s. prospects and hurt canada and mexico prospects. and get that through congress this year because it would look good for the american people. and make donald trump look better. -- mexico arey not rolling over and the u.s. put up five difficult areas, led by the idea of local content in automobiles. they have not solved any of them. the canadians and the u.s. are close on automobiles but as we heard from mexico, they do not like the proposals. it does not look like they will get anything done weird paul ryan has put an deadline on it based on the calend

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets."ime for the biggest is the stories in the news right now. activist investor elliott management is building a stake in a german engineering giant. they would like to replace the ceo. in 2011,took over shares have dropped 30%. a new ceo at lowe's, second-largest home-improvement naming former.s., jcpenney ceo marvin ellison to the job. he wouldnnounced retire earlier this year at lowe's. the chain under pressure to match the performance of home depot jason benner should -- jcpenney shows are tumbling, in fact. ceo wille of the penney's topof executives. that is your bloomberg "business flash." let's get more on this executive shakeup in the retail industry. some of the tenure of marvin ellison -- is there something for lowe's to be excited about, given that shares of jcpenney dropped under his watch? >> while shares of jcpenney did struggle under his watch, he does come with extensive home-improvement background at home depot. the opportunity come in our view, is really the execution. co

vonnie: thank you. towersup, trump transcript, we see what a document means for the administration. this is bloomberg. ♪ ♪ vonnie: from new york, i am vonnie quinn and am joined by my cohost caroline hyde. this is bloomberg markets. , theve breaking news senate judiciary committee released transcript related to the now infamous june, 2016 trump terror meeting which included that russian lawyer. kevincerilli.y will be some time to go through but is it expected that anything new will come out of these transcripts? morning, the transcript of donald trump, jr.'s meeting from 2017 where he met with senate judiciary committee stay for being made public this morning, more than 2500 pages. at the core of this is a june, 2016 meeting that donald trump junior talk with then campaign chairman paul ryan apart and a russian lawyer. according to this meeting, donald trump junior told investigators on the senate judiciary committee that she had proposed that she might have political dirt on democratic presidential nom

vonnie: i'm vonnie quinn. shery: welcome to "bloomberg markets." ♪ vonnie: from bloomberg world headquarters in new york, here are the top stories that we are following. u.s. stocks are getting a lift. a stronger u.s. dollar is crushing emerging markets. the trading disputes truth sending yields higher. treasury auctions on deck. truth, the u.s. will not impose tariffs on china for the time being after two days of talks. china's population control policy could be coming to an end. what scrapping the controversial birth limits will mean for the country's economy. with that, we are half way into the monday session. lots on the move. julie hyman is here to tell us. thee: the trade truce is catalyst for today's gains. we should caution that this is not all said and done. this was on earlier morning talking about markets and market participants, realizing this will be an and thenegotiation sentiments will likely shift multiple times. the sentiment is positive today. seen industrial companies have a lot to gain, if

vonnie: here in the u.s.king the dollar in tv securities today asking is dollar fatigue setting in. they're looking for sustained moves normal. not going very far yet. tenure yield is up, this is fascinating. this spread has widened quite exponentially. brent crude above $80 a barrel. this is showing us what's going on with the supply and demand of crude oil and where people who needed are getting it. -- ooks like in order to have that spread narrow, we will see that spread as well. let's move it onto gmm, looking movers and european a bit of balance or emerging-market currencies. and you mentioned the lira as well keeping an eye on. desk move to the you can see aluminum and steel are down a half of a percent each. the treasury secretary said those are deaf the tariffs are here to say -- the tariffs are here to stay did not help. michael howell is the chief executive and joins us now. thanks for joining us. mean when the liquidity gauges low. what does that mean for investment risks? michael: it means investm

vonnie quinn.ome powell says the market and the fed is on the same page. powell argued that the path should not be blamed for emerging monetary policies. continue told prove manageable for me's. perhaps, a word on whether emerging markets will be roiled? how can jerome powell speak with such confidence? taimur: the trick is to look past the noise. agreementthe nafta and look what happened to mexico. the rise of the middle class, emerging market to emerging market trade, and technologies that are empowering emerging markets. in light of the fx market, we have seen a lot of movement. in the immediate term, when we get an iran deal for example, will markets react? will be more volatility. that is a central premise of our report. you will get more volatility. we think that can be a good entry point. far from being frightened of volatility, see it as the right time to come into markets for the secular trend they want to clear. rumors of the demise of globalization are greatly exaggerated. aret of hedge

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.ejra: and live from the city of london, i am nejra cehic, counting you down to the european close. and chinae u.s. signaling a desire to avoid a costly trade war. president trump offered a lifeline to chinese telecom company zte as the country sends its top economic advisor to washington. we are joined by kevin cirilli, bloomberg's top washington correspondent. a surprise tweet this morning. perhaps the president was sorry already that he had tweeted it. president trump tweeting out over the weekend that he is reversing course on trade relations to zte, the chinese telecom giant, the fifth largest in the world. xitweeted that president and i are working to get zte back into business fast. too many jobs in china lost. this comes following just more than a year ago in march of 2017 when the administration slapped a $1.19 billion settlement with zte for doing business with iran and north korea. as china's top epic -- economic diplomat is set to visit washington this week and it also comes

you, vonnie.ith the chief economist at goldman sachs in this beautiful setting in southern california. at 3.9%.nemployment we have hourly wage growth coming in in april at north 1.1%. that seems like a disconnect. can you unpack that for us? >> i think it is no great mystery. one reason is the month-to-month numbers are pretty much useless for inferring the underlying trend. these numbers jumped around and there are significant calendar a fax that were -- affects that -- april.ive in eight if you look on the year-to-year for hourlyre at 2.6% earnings and that is also what you see from other indicators of wage growth, something in the -- 2.5% toave to 2.25% range. i would not overstate it. the pace of wage growth you can sustain it quite a bit lower now than it was 10 years ago, 20 years ago, 30 years ago basically because productivity was weaker in past decades. it used to be that maybe the speed limit for hourly wage growth was 4% or a little over 4% and now it is probably like 3% and we are not

this is bloomberg. ♪ ♪ vonnie: live from new york i am vonnie quinn. live from london i am mark barton. let's get to italy. bonds rising for a second day. the company's -- we just learned the italian economist, a leading candidate for the role of finance minister, for more on the ground we go to anne-marie. could the populists get their act together and for to government or not? >> that is what they are potentially trying to do right now. maillot --and the they are in a meeting in the lower house of parliament. they areust learned as meeting is that on the short list it seems like the economist giovanni is up for the job of finance minister. he is currently holding a course on economy of corruption and illegal markets. he is a professor in rome at a university. that is all we know about him. we do not have the finance minister, this economy job is crucial. this is what set things up on sunday when the president vetoed their pick up the finance minister. he callurosceptic the euro a german cage. it is crucial for them to move government forward. if they

. -- vonnie quinn.on. vonnie: let's bring in the ceo of imax, richard gelfond. -- $22 is the share price. public companies, one in china and the rest of the world and if you back out the china value and trade on the hong kong stocks exchange, the u.s. company is trading at about 5.5 times even the this year -- ebidta this year, historically low. quarterorking at the and the results were strong. we almost doubled consensus expectations. we have been on the revenue line and we will keep delivering and the world will wake up. vonnie: jpmorgan, one analyst, an overweight rating with a price target of $20. talking about solid earnings this quarter and a buying opportunity. there are analysts who think this is undervalued as a stock. you are taking advantage of it and will buy back your own shares. >> we will. i have been in the stock for 20 years. times square the market unfairly penalizes you and times the market is way optimistic. valuation, 2017 was a difficult year. our business in china went through cha

vonnie? vonnie: thank you. coming up next -- french president emmanuel macron is making a big push to attract new investments. we're going to speak with pascal cagni, president of business france. then we'll get inside global markets from the head of g-10. and later this hour, we'll be talking with republican senator john kennedy on why he joined with democrats on a vote to restore net neutrality. this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. nejra: and i'm counting you down to the european close. vonnie: france's president has been speaking at the e.u. summit, as we were just saying. emmanuel macron saying he is not going to start a trade war with the u.s. over iran. they're discuss the business climate in france, which is very much open to business, is pascal cagni, chairman of business france, an agency which tries to bring foreign investments to france. he's a founding partner as well at european venture fund c-4. and he was vice president for apple for the emea region. is france more a

vonnie: i'm vonnie quinn.elcome to "bloomberg markets." ♪ world headquarters in new york am here are the top stories. green on the screen. u.s. stocks gain and the u.s. dollar gets the strongest levels this year. we will bring you a bloomberg exclusive with larry robbins of glenview capital management. oil sewers past seven dollars a barrel as fears of sanctions on iran. markets are zooming pay julie hyman is here. julie: we are seeing a bounce in the session, the second straight day for the averages. a lot has to do with oil. energy is the best performing. tech is also continuing to bounce. record high at a after reaching that level on friday on the news that berkshire hathaway was increasing its stake. looking at the bloomberg, the 500 is back top record levels. its relative outperformance versus the s&p 500 is at a record. it looks like we don't quite have that chart of the fang. we are looking at oil prices as well up for the second straight session on the rise. traders talking about whether the u.s. pulli

vonnie: exactly.issues -- he issues a measure with his earnings are annual meeting every year, but he also talks to reporters and people in the audience. there is a set list of questions he answers every year to them strategically. katherine: yeah, it will be questions from analysts as well as journalists and audience members. it can really range. in my be about this specific stock picks, succession planning might alsoe, but it just be the economy and the political environment. they can really range from a friday bank of questions you might get --friday of questions you might get asked about. ulek: a new accounting r -- explain that to us. katherine: it is something he has warned investors about. essentially it requires him to report the unrealized gains and losses. it could make for some wild plea s, affording this $170 billion equity portfolio. keep an eye on that. it makes you want to focus on operating earnings from how the underlying businesses are doing. mark: as we know, he wants to reduce the

vonnie: lots more ahead today. coming up, we hear from our exclusive interview with the ceo of unicredit. later today, the canadian prime minister sits down for a conversation with stephanie flanders at 3:30 new york time. this is bloomberg. ♪ from london, i'm mark barton with the european close. vonnie: the white house just out now with new comment saying president trump and japan's prime minister will meet june 7. we know mike pompeo is going to meet with the aid sent from north korea this week. this comes as there is new hopes for the summit between u.s. and north korea. president trump taking to twitter writing we have but a together for our talks with north korea. koreace-chairman of north heading to new york. for all of this and the new reaction, we are talking with our national security team leader. we've in new york city tomorrow. how unprecedented is this? >> he is not just any aid, he is a right-hand man to kim jong-un. he is the former head of north and is one ofcy the top nuclear negotiator. it's a high

vonnie?onnie: as always, we are keeping our eye on regulation and how it will affect wall street weary of the house financial services committee still looking to loosen regulations on the banking industry. we are wondering, can significant legislation be done by the midterm election? let's get to washington dc and kevin cirilli. with awe are here republican from texas, and i want to talk about something dodd-frank did, because it created the consumer financial protection bureau, which some republicans and centrist democrats have argued has gone too far. yesterday, the house of representatives voted overwhelmingly to roll back a specific provision with regards to the auto lending industry. could this potentially end up on the president's desk in the next week and be the start of more steps in walking back the consumer agency created under dodd-frank? certainly i hope so. yesterday was a good day for the rule of law. it was a good day for consumers. it was a good day for freedom. the bureau of

vonnie: from new york, i am vonnie quinn. u.s. unemployment officially 3.9%.spoke with jonathan has it -- spoke about what is driving this down. >> the largest labor expansion on record because we came in and had aulated the banks and big tax cuts. recovers sometimes run out of steam. , since theic of that president was elected, 900,000 people have reentered the labor force and gotten a job. we have continued to grow the economy at a healthy pace because people are coming back. people who were discouraged because they could not find a job in president obama's economy have reconnected and that is the smoothing through the ups and downs. interest in labor force participation over the last year. street,conomists on the they see an economy, labor market with full employment and the labor market is high and inflation pressure must be coming out the other end. the administration, we are looking for a supply-side response. why will we get that? what do you see any data in quarter one? >> we see it in the data. with a big spike in capital spending in part because peop

vonnie: it is 1:00 in hong kong. i am vonnie quinn. shery: i'm shery ahn. welcome to "bloomberg markets." ♪ vonnie: from bloomberg world headquarters in new york, here of the top stories on the bloomberg and from around the world we are following. cbs and some their media is comeg aim at redstone escalating a long-standing fight over viacom. the stocks edge higher as yield edges back toward 3%. trade tensions between the u.s. and china showing signs of easing. wall street is on the move. we will tell you where the biggest banks are finding greener pastures. all that to come in the next 30 minutes, first julie hyman is with us. we are halfway into the trading day. julie: a lot of individual corporate stories overall and we are seeing a little bit of a good back coming off the highs of the session for the major averages. we are still seeing strengthen technology however as well as health care. we are also watching the bond market. an interesting measure here that has flipped for the first time since 2008. it is the s&p 500 dividend yield was is the three-mont

vonnie: from new york, i am vonnie quinn. this is "bloomberg markets."ore of the same in venezuela. nicolas maduro won reelection with 68% of the vote with any election boycotted by the opposition and condemned by the united states and other nations. for more on what this means for venezuela's shattered economy, let's bring in dam cancel -- dam cancel. what is the scene right now? dan: it's kind of like any monday. there was not much suspense of who was going to win. it was a bit of a foregone conclusion. there were people feeling a bit like this crisis is going to go on longer. you are going to get participation for most of the opposition and even government supporters stayed home. there's obviously a bit of resignation right to the current situation. vonnie: how fast will things deteriorate from here? will it be a continued grind worse for the economy? is there any hope in sight for a better economy? dan: i think the inflation is just going out of control from 90% to 100% on a month to month to month basis. 13,000% is the estimated number for the year.

vonnie: this is bloomberg. ♪ nejra: live from london, i'm there to hits. vonnie: i am vonnie quinn.he european close on bloomberg markets. lachlan murdoch will officially serve as chairman and ceo of the proposed new fox. rupert murdoch will also serve as cochair. what's new here? >> there is not much new here. the expectation is that locklin would go with the new fox which would have the fox broadcast. that is not new and james murdoch the other sons was always expected that he would take his money and do something different whether it is something more entrepreneurial maybe in technology and media. the fact that they put out this press release that maybe the murdochs have a little -- a level of confidence that it will go through as planned. we all expected this was how it was going to be going forward. suggests that they don't have a question in their heads anymore about who's going to buy this company. same logical strategic reasons that disney wants to own 20th century fox for the the sameonal exposure rationale applies to comcast. comcast has the balance sheet to do it. i think

vonnie: here are the top stories we are covering. stocks are mixed, treasuries are rising as investors await clarity over progress on trade talks to between the world pot two largest economies. then my conversation with the nato secretary following his meeting with president trump. in the middle east, and lots more. and the royal wedding will celebrate -- will be celebrated on both sides of the atlantic saturday, but how are relations between washington and london? darroch., kim julie hyman is here. julie: in theory, here are the major averages. the dow little changed. the s&p and the nasdaq are under pressure because of specific groups that are falling today, namely consumer staples, which is the worst performing group in the s&p 500. that is dragging. there are these back-and-forth trade negotiations and tensions, so that uncertainty is weighing on stocks to some extent. we have the s&p 500 on pace for a weekly decline, potentially the biggest weekly drop in six weeks, so we will see how it all shakes out by the end of the session.

vonnie: i'm vonnie quinn. this is bloomberg markets. with growing concern over the reliability of the vex investors continue to pour money tracking the gauge. regulators probing the benchmark. .e are joined by karen kristen were people ever dependent on the so-called reliability of the vicks? karen: it is distinct from realized volatility. popularity.grown in certainly a lot of specular and he the recent spike at the beginning of february was tied to some of those products. we think it is also tied to market sentiment and concerns over trade. syria and the news that was sort of in the backdrop but not bubbling forward into the market. what have clients been asking you? institutional solutions, you must have had institutional clients. below forat 10 maybe so long and then a spike. where they asking what to do about this? karen: they absolutely were. before we saw the spike in february it hit down to nine images what we saw in 2007. there was a lot of concern about what this means. how could it stay low for so long? when the vicks was sus

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. mark: i mark parson.european "bloomberg markets." vonnie: tesla will offer an upgraded model three for $78,000. this came up pretty out of the blue, right? >> well, you knew there would be a dual motor version. equivalentnly is the of all-wheel-drive comeau which helps customers in the northeast and some areas that might get implement whether -- all-wheel-drive, which helps customers in the northeast in some areas that might get implement weather. we saw that coming eventually. vonnie: at the same time, we didn't know necessarily that it was going to be more than twice the price. what do you make of the price tag? >> what is interesting is it starts to push up against the sedan which really hasn't been redesigned since it was introduced in 2012. you could have a little bit of cannibalization of the customers in that price range. at the same time, it pushes those deposit holders that were banking on the $35,000 vehicle probably well into 2019, maybe even later. the idea that there will be an affordable ele

biggest increase ever, vonnie? money: president trump will meet with auto executives at the white house to talk about feel pricing, among other inc. spear will give a speech later today about curbing drug cost. and human service -- spoke earlier. >> the power the united states has to get other countries to pay more of their fair share. they are socialized systems, denyingand choosing and access and basically precluding drugs unless they pay below market reimbursement for products. >> concentrating there on countries. we will get to that in a moment. first, let's bring in kevin autos. to talk we have reporter cynthia kunz. what will the automakers want to given thatesident there are foreign and domestic automakers? >> yes. there are two main issues at stake. it comes at a time when automakers would like a walk back of the obama era regulation particularly as they relate to the environment. california governor jerry brown vowing to go head-to-head with rep -- with washington regulators should they seek to environment

vonnie: why is that?t does seem i some of the economic data is picking up nicely and we have a lot more sounding optimistic. where are you seeing weakness and the lack of inflation? >> on the growth side, we see things being front and loaded. we see a lot hilton to expectations that push forward and we think those will dissipate as we get to 2019 and beyond. you arethe fact that right, we are at full employment, we have very strong and we are still very stuck with low-wage inflation and now what do we see? we see companies investing in capital spending. there is a cycle coming to fruition now which will enable them to have the substitution for capital which will keep inflation down. >> we are seeing trading above $18. is that in any way change her opinion if we see the elevated levels? >> certainly are let me backtrack and say we do think there is a possibility for a cyclical uptick at this point in the cycle but it would be short-lived. one reason is we see the pressure on oil but we see some sources of

this is bloomberg. ♪ omberg. ♪ vonnie: live from new york, i'm vonnie quinn.k: life in the city of london, i'm mark barton. the european closes roughly 14 minutes. investors are interpreting signals with president trump threatening tariffs. lini,e joined by luca pao investment strategist. we have been superseded by the trump announcements on north korea. let's get that out of the way. it shows there are always geopolitical risks out there. >> you see a lot of volatility on a daily basis but this kind of risk will be with us for a long time probably. i don't think this will have a significant impact on markets for the next few weeks. contemplatingyou changing your asset allocations in what has been quite a year so far when it comes to volatility and market movement? look at growth, monetary policy, evaluation and sentiment so we have not changed anything in our approach. the noise is bigger than before but with trump, it's something you have to live with. noisenk there is a lot of and some fundamental changes are taking place and that's what the market is volat

this is bloomberg. ♪ this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn.live from london, i am nejra cehic. now to a bloomberg exclusive. the lira weakening to a record low. turkey's president saying you would tighten his grip on the economy including monetary policy. president heard a gun -- erdogan shared his thoughts. >> the interest rate is the cause and inflation is the result. the lower the interest rate is, the lower inflation will be. first of all we need to adjust this. what is the targeted interest rates? it's the real interest rates. what is the real interest rate? it is the difference between the interest rate and inflation. the moment you catch this, what do you do with the real interest rate anyway? you take it down in a substantial sense. the moment we take it down to a low level, what would happen to the cost inverts? that will go down. as soon as that goes down, you in theestically or international market, you will get the opportunity to sell your product at much lower prices and -- and obtain competitiveness. when the decision is made on

vonnie: it is amazing. june 12.r is there more or anything else north korea can do domestically to put this back on the rails again? >> there are, blowing up of sites, that is certainly part of it. >> there are a number of things north korea could do showing a greater commitment to the denuclearization program other o talkrankly, have a closethe with china, which will continue .o talk korea whether it has put pressure on o with the nuclearization program or not, there are a variety of that gestures to engage in would be helpful here. but they will need to show sincerity going in, a commitment to a cheaper result, or this will not happen. that will continue and there will continue to be pressure not .nly by the united states kevin is an washington, d.c. for us. thanks to everybody. let's get to market reaction. julie hyman is here. stocks ared the lower. julie: they rp register make it more clear what we have seen even atg here, we saw the session, it with straw of two thirds of 1% in the the session, it wit

vonnie: i am vonnie quinn and this is bloomberg markets.ement retailer shares are surging up 9.5% right now. abigail doolittle is with us. >> pretty amazing. stocks were on pace for their best day since 2018. they missed red across the board and in fact talked about the worst rain and snow in 12 years and we can attest to that. the bright spot is the weather today. they are talking about may being on track. we can see why that is important. these are same story sales. using the earnings analyzer, we can see back in 2014, they almost got to 10%. the last time, all the way back .n 2004, pretty much every day they are trying to get back into that arena. they are so strong that they will make up for the quarter of,s mix, and speaking stepping in as the new ceo, a piece of this, they had the , retiring back in march under pressure to make changes. there was pressure to really turn that ship around. >> what else to they want? >> they would like to see marvin do what he did at home depot. he was there for 12 years and helped bring about operating

vonnie: you are watching "bloomberg markets." it is the day when rich clarida is testifying before the senate banking committee. they are going to be giving the thoughts on monetary policy, hoping to be confirmed -- they eady,y are confirmed alr to the vice chairmanship position and the governor position for community banks. we have to prepared statements from richard clarida. we want to bring you a data check. markets have been moving this morning. , shot upield of 3.05% after retail sales data. 110,ave the yen above another fascinating development this morning. weaker yen by .6%. the bti is backing off just a little bit. i did want to point out that the two-year yield is a 2.65%. we have had a five-six-basis point move right across the curve overnight. let's look at european markets as well. the stoxx 600 in europe has been moving mostly lower. we have telecoms leading the way lower, down about 1%. iliad pandora, they are all lower by more than 10% in europe. as for the s&p 500 here in the united states, i can tell you what is

vonnie: this is bloomberg markets.inistration announced it is re-imposing tariffs on steel and aluminum from the european union. move that mexico, a might trigger retaliation by america passes closest allies. we have promises of that already from the likes of mixed co. joining us for the latest is sarah. what you make of the retaliation threats from mexico's economy ministry and the european union, they affect a lot of products. >> yes. the reaction was immediate to the announcement today of the tariffs. i think many countries were expecting it. we heard a got a pre-reading and the decision was to be made. they had the approvals for press releases and reactions already this morning. what is clear is the targets for retaliation, at the eu and mexico, have identified, are politically sensitive goods, from states were a lot of trump supporters live. they are targeted. we definitely sit here and escalation and this is amongst i guess america's biggest allies. will that in some way backfire and just make more people support

--vonnie: thank you.acebook is maintaining its positive momentum. 30 minutes into the trading day in the u.s. and for a broader look at the market, let's look at julie hyman. julie: we are in stocks once again today, and rises continuing within many technology shares. stocks have been rebounding. as i glance here, it is wrought base with some groups beat up over the past couple of sessions like the telecoms and the utilities appear to be coming back to some degree in the session. i talk about momentum and technology, look at the nasdaq in the past five days. it has risen for five straight sessions. its best five-day performance in two months with a gain of about were percent in that time. one definite and one potential this morning. agreeing to buy for about $1.6 billion in cash, this is a therapy provider and developer that eli lilly is acquiring. in company went public january $17 per share. it is soaring for $50 per share. and there has been a lot of talk about acquisition of this company. kkr is prepa

vonnie: i am vonnie quinn. caroline: i'm caroline hyde. this is "bloomberg markets."'s check in on the first word news. taylor riggs has more. taylor: president has changed his story about adult film star stormy daniels. in a tweet today, he said he reimbursed michael cohen for the $130,000 in hush money paid to daniels. arrangement was improper. president trump called the claim that they had an affair false. high-level a delegation could determine whether there was a trade war with chinese officials. a former jeffries cheater is serving prison -- serving time for bond prices. serving a two-year term. the government passes decision to pursue criminal charges against traders who deceive clients durg bond negotiations. iran poses foreign minister is criticizinideng pres trump withdrawing from the nuclear deal. mohammed posted a video on social media's in iran met all of its obligations laid out in the deal. president trump has signaled he will withdraw by may 12. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and ana

vonnie: it is the pipeline.to drop somebody into a job and don't have the skills for. wall street has been really good at this over the years, particularly every major bank has a veterans program but tell us where else you need people to come in and mentor from? >> we started out with pepsi, morgan stanley. 70 fortuneave over 500 companies. it comes and goes in different sectors. i really need tech right now, i cisco anddobe's and dell of the world. vonnie: it is our memorial day challenge the corporate america. get involved. the email is citizens@acp -usa.org. our thanks to the american corporate partners president. >> thank you. mark: take a look at markets, finishing the monday session. it is a quiet day given the holiday. italy and spain, the center of the political storm. italy down by 2%. shares in germany and france falling today. we have the italian president naming -- to form a government. and's could happen as early as the fall. look at the currency space. i will leave you with the bond board. ♪ >> the

vonnie: breaking news on goldman sachs.0 million, half of that to new york's department of financial services. the other half to the federal reserve board. this was a result of allegations traders had -- which put clients at a disadvantage. this following a wave of fines paid by eight banks, they paid at the time about $5.8 billion and there were five guilty pleas in relation to the manipulation of foreign currencies. this is about electronic chat room communications and it's a $110 million fine for goldman sachs. mark: stocks finishing the day in european trade and it was a quietish day. just three european equity markets open. ireland, u.k. and denmark. helped a little bit by trump announcing the difference of steel and aluminum tariffs on the eu until june. companies trading on the stoxx 600 today, which is down by about a 10th of 1%. the average volume of trade down by 74% on the day. earningsthough, bp season, shares rising since the highest level since 2010. investors reacting positively to the highest profit since 20

this is bloomberg. ♪ vonnie: this is "bloomberg markets.". i'm vonnie quinn.ry: and i'm shery ahn. year cents a regulators published fx regulation code. it is designed to improve standards in the over the counter market. some industry executives say the code has not done enough to clean up most dubious practices. with more infirm mission is our fx reporter. you spoke exclusively to vanguard and what did he say? is notaid the market going far enough to curb some potentially dubious practices. he is talking about last look which is the ability to renege deal.urse -- vonnie: the code of conduct has been drawn out everybody to adhere to the code of conduct or other penalties question mark is enforceable? it is voluntary. it is a guide of do's and don'ts and it is suggested to the industry that this is the best practice. it does not have legally enforceable power. tory: what about incentives help them straighten up their act? trader you mentioned the going to jail. one of the sources says that nobody wants to go to prison during that is one of the key deterrence. t

vonnie: releasing a report on contest prime minister.-by: the a alien portfolio the italian portfolio manager. vonnie: it does look like it is over. shery: libby, thank you for joining us. coming up, as g-7 finance meters meet in whistler, we speak with paul martin, the former prime minister in canada on the state of deficits, trade, and tariffs. this is bloomberg. ♪ vonnie: this is bloomberg markets. shery: global trade tensions that nafta the trump administration says it will impose tariffs on steele and aluminum imports from the eu, canada, and mexico. meanwhile, finance ministers gather in whistler, canada. michael mckee, bloomberg's national economics and policy correspondent. we have the latest from the mexican government saying that the president spoke with canada 's prime minister justin trudeau and saying that they both reject the u.s. decision on tariffs. their reaction has been swift. what we know is that the mexicans have already released a list of some of the products they will impose includingy tariffs on some steele produc

vonnie: can you focus? just kidding.f we were to get unfocused, it would have in the last 8.5 years. we happen to be in the three most important marijuana markets on the planet earth, california, new york, las vegas nevada. nothing really changes except for the first time, investors get to own a piece of the largest u.s. we'd company -- weed company. it will create more evangelists singing from the mountain tops that this is a permanent industry. -- said $75 billion+ in the u.s.. vonnie: what do you think the potential value of the market could be in the united states? adam: like anything we do, why not? why not create more marijuana users as a substitute for alcohol? why not have it be the exit to the opiate crisis? i think there is so much potential untapped. vonnie: we saw cannabis growth recently list on the new york stock exchange. do you see the trend of these companies coming to the united states, and would you consider migrating to the u.s.? of course. ultimately, i would love to ring the bell in new york. and as