right here in germany, it looks like a good fall at the open. it said, they would see 1.4 billion euros. the estimate was previously 1.6 billion euros. clearly, the glut coming from china, in terms of steel pushing down on the overall environment is hurting the environment, hurting the biggest steelmaker there, which is thyssenkrupp. investors could push this stock higher 1% to to presen 2%. we are also seeing the fact that the capital is looking better than previously estimated and the costs are coming down, guy. guy: let's pick up on that point. manish, you still with us, sitting patiently through our programming this morning. reason why you would even consider purchasing this. because it is so cheap? for do you think then it could be a value trap? have a concern about a big downside, but i don't see a big upside. it could be a trap. also, look at where we are looking. what worries me about some of , they have to sell off. second, if you look at the eu perspective on recovery, there is going to be a bail out. that is the cost of doing banking in europe. ,hen you don't have gdp growth

in the emerging markets. the what about europe on dollar? we have the euro trading at elevated levels, maybe too elevated. if you are mario draghi or try to figure out what to do. you would probably like the euro to be a bit lower from here. >> if you are an easing central bank you want your currency to be weak. that definitely helps you and in europe that is definitely the case. the two major central banks this year that have pushed on quantitative easing have had a counterintuitive reaction. guy: so what do they do? >> they carry on doing the same thing and what's happened is that has backfired in the short ,un, but the hope for them because it is a trial and error strategy is that will reverse in the medium term. guy: mohammed will stay with us. up next were joined by the cfo of elian's after the insurer announced its profit dropped on outflows to pimco. caroline: welcome back to a very sunny berlin. this is "on the move." alliance reported -- profit in its management vision did drop due to pimco outflows. joins us now. wonderful to have us on the show. let's dig into initially som

connectivity. we have delivered more than 4 billion euro from our normal relationship. we are also building engines, sharing architecture with our daimler.at the we have a strong presence in the russian markets, which is well placed to benefit from a rebound when that market recovers. what we share, and the potential for many of the synergies in areas i already mentioned. nissan also would contribute the management expertise, and corporate governance experience necessary to deliver sustainable and profitable growth. we're at the beginning of a new journey. i am confident that mitsubishi, with our report, will be able to and take newrust business opportunities. for nissan, this alliance will extend our scale. we will deliver reporting, direct synergies. as i said at the outset, it is a potential win-win transaction. we have the track record to make it work, and to deliver the expected results. i will now invite comments about this a deal, then we would be both happy to take questions. >> ladies and gentlemen, thank you very much to be with us on this occasion. guy: he was talking wi

. you have had lower oi oil l prices and have had to balance a weaker euro until recently. other very positive for a german economic engine that has high-quality output. they are very dependent upon the currency and the oil price input. caroline: talk to us about getting your hands on corporate credit right now. ecb as a major buyer. how much will this be affecting liquidity? >> the corporate markets, the nonfinancial markets, it has outperformed other assets for example. that is only basis that we know have this big, less price sensitive buyer that will take quite out quite a bit of paper y month. in my view, the corporate market in europe, which has a yield of 1.5%, you have to factor in the ecb purchase program to make sense of that number. but is very interesting is that the treasury market component has a negative yield. therefore, you get more on spread in corporate, than you do in yield. it has been that way for a little while, but that spread continues to widen. so, corporate spreads are wider than corporate bond yields. it is very and usual, this discussion around negative in

of as much as 4.9 2 billion euros. trading is expected to go ahead light. under the ticker the finland-based company will pay $800 million in cash and $19 million in shares. terex is in the parts business after they abandon a merger to pursue merger talks with a chinese company. chinese car hailing company didi is targeting an ipo in new york next year, according to people familiar with the matter. they say the timing will depend on how the firm's battle with uber plays out. last year, apple put $1 billion in two -- into didi. telecom italia has almost tripled its target for reducing expenses to 1.6 billion euros by 2018. cuts will include 800 million euros in operating cost, and 800 million euros in capital spending. that comes as the new ceo aims to improve profitability at the former state-owned carrier. that is your bloomberg business flash. guy: chinese stocks trading in hong kong rebounded from a two-month low, despite a raft of negative economic data over the weekend. retail sales and fixed asset investment it all missed estimates over the weekend. malcom scott joins us

against the euro, it is still above the euro at which they set. it gained crucially against the dollar, and therefore against the hong kong dollar, which is painted to the dollar. it does seem like currency risk is too high. guy: thanks very much. up next, more gold. ♪ guy: welcome back. you are watching "on the move." let's see how things are shaping up; here's a picture for the open markets. we are climbing. markets beginning to get further ftsemorning, 600 up, lagging, dax playing catch-up. what stocks are is are watching? let's find out caroline hyde. caroline: in taking the leader of the hack pack. wild world temperature controls, the best performer on the stoxx 600. the reason is it is getting upgraded by some analysts. bank of america merrill lynch says the market is missing an. point.io inflection people need more in terms of power and temperature controls. it's playing into the u.k. of session that is housing, taylor wimpey. the u.k. housebuilder is managing to woo the investor base by missing a special dividend to the tune of 300 million pounds. they're saying they a

doing, they value the company at 4.6 billion euros, a 36% premium. of ss, you saw the likes e, the utility home in the u.k. the four guidance looks a lot stronger, guy. with that, we send it back. matt: let me take it here because i am looking at suzuki headlines. obviously, the stock is gotten crushed in asia. they are saying they have found no evidence of a few manipulation in their investigation, but they have found discrepancies between regulations and the actual tests that have been done. they do say weather conditions may have affected the testing and there is a fuel efficiency data in the range of the measurement of deviation. so, there is a will question about whether or not these fuel efficiency tests have been carried out correctly at suzuki. have to point out, there has been a real question about these fuel efficiency tests across the industry, not just because of the volkswagen scandal, but for years. ford has had problems because of the way it tested and that was years and years ago. we are going to continue to cover this story because it is one more red flag being rai

increase after the last three raised about 22 billion euros. the shares have dropped and left only 20 billion euros in total. to raise be asked money again. most of the investors i have spoken with think in the next 12 months. but one of the other main topics be removed duration. -- remuneration. a lot shareholders will be happy that they have lost so much money. guy: great stuff, matt miller joining us out of frankfurt. turning to the deutsche agm this morning. jonathan bell is still with us. let's talk about the european banks. let me get this up on the bloomberg. this is the anr function for deutsche bank. if you buy still on deutsche bank, that is the green at the bottom, but thee share price has gone down. if you were an investor, would you put your hands in your pockets and say, i am prepared to give management mark capital? -- more capital? jonathan: if you are an investor, to protect your investment you either have to give more money or get something else to. the problem is, they never really got to grips with the problem after the financial crisis. they never raised suffic

going to be devaluing the euro by pushing for lower interest rates. the boj themselves have surprised the markets by not pursuing reflation through a weaker exchange rate. the problem is that the strength an impact ons been economic prospects on japanese valuations. i don't think anybody in the world, particularly in japan, believes that china or global imbalances can be resolved. guy: so we get to 100, what happens? lena: i'm actually concerned. if 100 is the line in the sand for intervention, then the boj has really lost the game with respect to the markets. guy: many people would argue that it has, but they put a policy in place designed to do one thing, it does the opposite. lena: the boj, clearly they are willing, like the rest of the g-20, not to fuel global imbalances and global financial instability by devaluing against china. this is clear because the consequences of that were global economic uncertainty and tremendous systemic financial volatility. japan will not have successful reflation domestic policies at the expense of a weaker world economy. however, that shift they wa

of rta jewelry -- of to 2.06jewelry fell billion euros. year foren a difficult luxury brands. ,ata ahead of asset allocation -- i continue to hear negative stories out of your on luxury sales. what is going on in the market, specifically in the european market? tapan: my sense is among the wealthy -- among the wealthy is low. there is a sense of despondency. you can see this in the way they are managing their wealth which casherly being held in rather than investments. the caution is coming through. europe is one part of the story. the other is the other big markets like china where they are other negative drivers -- where there are other negative drivers. guy: china has been the one just been causing concern. story and whatng if the chinese authority has started to crack down on that. the story really tense to the luxury sector. tapan: the luxury driver is still with us. until the policy changes, we will see. at the moment, it is hard to argue that that is going to be reversed. too much political momentum into that drive. outlook looksthe promising anytime soon. matthew: across th

euros of assets in the industry. bondobacco industry holdings are valued at 1.6 billion euros. said, smoking axa causes the biggest threat to public health in the world today. $11.3 billion jet order from viet jet. planes wasr 100 announced in the presence of barack obama, who is currently visiting the southeast asian country. back to you. 's exports fell for a seventh consecutive month in april is the yen strengthened. the underscores the mounting challenges that prime minister abe is facing to revive economic growth. dropis worse the me 9.9% that have been estimated by economists. imports as well, fell 23%, leaving a trade surplus of $7.5 billion. forecast thats earnings growth will slow this year, even as profit jumped. we will continue to talk about that and the airline sector as a whole, the first, i want to go back to jeffrey yu. we jump back a second and talk to you about japan. the imports i think, that number was sort of massaged bite oil prices. -- by oil prices. but what do you think about that drop? this gives japanese finance impotence to, really intervene when the u.s.

europe. the euro stoxx are down three -- .3%. we finished in negative territory yesterday. euro-dollar, keep an eye on what is happening with the dollar. it remains a focus for investors . the dollar getting a little bit of traction. brent trading come still 4794. gold trading down and 3%. -- trading down .3%. keep an eye on what is happening with the turkish lira today. we are going to get more information little later on. what is the future on one of the moderate reformers? we will talk about that later. that's get you caught up. here is bloomberg first word news with juliette saly. juliette: china may need a bailout worth trillions of dollars. that is according to an analysts. of the risk from china's credit binge. she cautions that beijing will have to provide vast sums to? bad debt. o tackle bad debt. came, --he chaos that yuan is down this month. the pboc has learned its lesson and will not let the market fall into panic. to the investment, one of the oldest and most expensive hedge investment,tudor one of the oldest and most expensive hedge funds is trimming. will reducehe firm

. greece gets its money match. greece to release 10 billion euros of aid and to reception -- restructure athens debt. the can being kicked down the road once again. goodbye is on a. the unicredit ceo agrees to go. can the bank avoid a capital raising. bayer's choice. bed.nto rejects the -- rejects the bid. where less than a half hour wait from the european equity market -- we are less than a half-hour away from the european equity market open. your stocks up. we are pulled up another percent this morning. equities overnight in asia doing very well. i was looking at the hang seng index in hong kong. it was up by 2.5 standard deviations above the mean. doing incredibly well. the dollar showing a little bit of weakness. the oil showing gain. that should give some more boost to today's market. let's get to first word news amin.aslinda haslinda: -- italy's biggest bank. that is after assets to improve capital lost the support of investors. he will depart once a successor has been named. he and the board agrees there was a need for a management change. bayer says it is still optimistic that it

.3 6 billion euros. the adjusted operating profit though, was a bit of a mess, but the company said it is confident the progress is in the with its plan and 2020 ambition. pretaxat we got here was profit, adjusted pretax profit coming in at a beat adjusted. also, a four year adjusted eps coming in at a beat. the company also said a special dividend to be paid july 8. you are seeing that up 2%. finally, united utilities, what we have had here is four year adjusted operating profit coming in as a beat. substantial investment in assets is to continue and it aims for dividend growth and at least, rpi inflation. back to you, matt and guy. guy: we have some of the italian banks beginning to fade, above a bit of a standout story. i wonder whether or not this steel stock is rising on the possibility that we might see something when it comes to chinese steel. that could be positive, potentially. beinge family photos taken. let's take you to -- let's not take you to. anyway, we will come back to that later on. let's talk about the middle east, europe, and africa. when you look at what is happ

pricing shares new the middle of the range. 20 euros a share. company at 3 billion euros. selling off a 25% stake. what really, i i this morning was a line out of bhp. talking about the real spark for copper demand which will be renewable energy. i guess the electrification story, everything else is going to happen surrounding the renewable story. it is going to be fascinating. the european equity market story about to lift off. we have a live shot of the amsterdam stock exchange as we wait for the philips lighting ipo. markets not going to do very much. this as we await news from janet yellen. ♪ guy: good morning. welcome. you're watching "on the move." i am alongside matt miller. he is in berlin. matt has your morning brief. matt: put your barbecue on hold. yellen delays traders long weekends i giving a crucial speech this afternoon. jeff good luck takes she will be dovish. market pricing agrees. the g-7 ends with a whimper. japan's prime minister fails in his bid to have the group one about global crisis. one mention has been the brexit. david cameron using the g-7 to commit to the eu

forecasts, even as a plunged 50%. the frankfurt bank lenders said it slipped to 153 million euros. it did beat the predicted bloomberg survey. phillips were proceed with of the ipo. the amsterdam-based company will list the shares on the amsterdam exchange. they plan to build 25% of the units after failing to find a buyer for the business. bmw's profits climbed 2.5% in the first quarter. that is as the carmaker invested in developing new technologies, such as the self driving features. says he is concentrating on sustainable and profitable growth, rather than short-term profits. that is your bloomberg business flash. anna: now, the reserve bank of australia has unexpectedly cut rates as it tries to counter the dis-inflationary tends sweeping the world. it was a surprise to some and the market with the dramatic effects on the aussi dollar. we are in sydney. dan, take us through the rba's decision because it did surprise them, at least that is what the fx market suggested. dan: that is right. it still had that shock factor, the decision did. the expectation was that the rba would not cu

. and the euro is pretty flat. let's check in on the oil markets as well. we have seen a decrease coming through. brent is down by .5%. that we have seen some good moves in the wti contract. stay with bloomberg television. coming up next, it is "bloomberg businessweek." >> we are inside the magazine's headquarters in new york city. >> a new era for insider trading. why kelly slater wants everybody to hang ten. >> that is all ahead on "bloomberg businessweek." we are here with editor alan pollack. in the opening remarks, you talk about south africa. you talk about this momentum for president zuma to step down. >> this compares the situation in south africa with india, where the reporter who wrote the story used to be stationed. this raises the question of whether the congress can keep going. and talk to the how they have not solved all of the problems and there is growing discontentment. a means down the line it is possible they will start losing some important elections. term, laying out here how a lot of these candidates are doing. you can gauge how popular these candidates are b

51 billion euros. a little bit lighter than the estimate 51.5 billion euros. the first quarter operating profit is 3.4 billion euros. and volkswagen is reiterating its 2016 forecast as a whole. so we are seeing sales that are a little bit light of the forecast and we are seeing operating profit of 3.4 billion euros. i cannot tell you how that all compares with the estimates, but we are a little bit light on sales here and the forecast remaining unchanged. we will see when volkswagen stock opens up in about 13 minutes how investors are seeing this and we will continue to get headlines. but i'm looking for to the amount of money that they put aside to deal with this in emissions scandal. eurosut 16 .2 billion aside. we could see a revision of that although hopefully not by too much. and then i will look for anything in the outlook. they say they are reiterating the 2016 forecast as a whole. groups quite interesting sales resonating slightly but the operating profit seems to have been helped by special items, certainly coming in better than expected. beating that estimate of 2.7 b

open, but we thought a big selloff yesterday. socgen, down by 1.29 euros yesterday. here is nejra. nejra: japanese markets closed until friday. the sixth day of losses for asian stocks. it was pretty much flat in the futures market. this is how the markets are opening in terms of the industry groups, looking at the stoxx 600. downmer discretionary, .1%. that has now changed to materials, basic resources down .7%. the commodity producers leaving the losses in europe, the worst in asia on the stoxx 600. the currency markets are focusing on the dollar today, rebounding for the second day. this is even as we have seen treasury yields being driven down. that is really because of hawkish, comments from fed officials. socgen, france's second biggest bank. this is after it reported is a price increase in first-quarter profits. they climbed 18%. the banks also announced plans to deepen cost cuts. moeller-maersk reported a smaller decline in first-quarter profits. they have been stepping up costs cuts at the oil unit. idas announced it plans to sell most of its golf unit and will start conv

euros. worst performing european oil stock over the past year. a fourth-quarter profits that beat estimates. says.k.'s former monopoly earnings rose 14%. includes two months of results from the british largest mobile network which bt acquired. credit suisse is carrying out a fresh round of cuts. two people familiar with the innder -- c jobs are going the trading unit. another round of cuts is planned for next month. would suisse said they eliminate jobs. the taz list ceo has set the company the most ambitious automotive timeline something model t ford. they plan to produce 500,000 electric cars in 2018. 10 times the amount they produced last year. that news came as tesla announced a first-quarter loss. the surprise super hero hit "dead pool" may have saved the quarter for 20 century fox. $751 million in global ticket sales. businessour bloomberg flash. guy: thank you very much. the turkish -- prime minister is expected to step down within the month. the turmoil has sent markets plunging. joined in istanbul. the markets have opened. looks pretty soft. reporter: that is right. a pol

in europe. your stocks down .6%. -- euro stoxx down .6%. dax is off .4%. payrolls could change everything. let's take you to the other assets around the world. clearly the aussie is focused, down 1%. 53.90 is where we are trading. how far behind the curve is the aussie gain? are we going to see further cuts? brent trading down. shanghai down 1.64. barely flat. what do you need to know? here's earthward news with juliette saly. juliette: the aussie dollar has dropped to a record after it reduced its outlook for core inflation. underlying inflation of 1% to 2%, down from the 2% to 3% forecast in february. it will be a challenge for governor phillip low. u.k. voters have given their first verdict on germany korman's -- jeremy corbyn's labour party. it sustained losses across england. the brightest spot for labor may .e the london mayoral election con has run a pro-business campaign. the election results may also give him the voter sentiment ahead of june's referendum. japan may be able -- may not be able to ignore the yen growing the -- the yen's growing strength much longer. -- h

know that abu dhabi issued a bond last euro month, taking advantage to get external funding. since then, the qatari out,nment has also sounded looking to take advantage of the rebound to help plug some of their budget holes. this is becoming increasingly important for the gulf region because of those generally lower oil prices. it is also becoming more important because bank liquidity in the region has been drying up. that forces companies, and sovereigns, to look elsewhere for external funding. we will have to see how that develops. so far, the demand for this debt issuance remains pretty bou yant. guy: tracy, thanks indeed. let's carry on the conversation here in london. we have an analyst from energy aspects. what do we know about the new minister? he is not just an oil minister. >> he is another industry veteran, another professionally educated expert in oil markets. we are not expecting a lot of change in policy here. i think there will be a lot of in the broad policy. the new minister is happy to leave it to the market, rather than to try to get opec allied, on board, and dea