welcome david stubbs, j.p. morgan asset management global market strategist. thank you so much. i got this made up for you. this is about markets. we have a nice chart. i did medians. this is the largest exchange fund to buy junk bonds and we are seeing that it is flashing a potential warning sign that this rally we've seen over the last three months is losing steam. 's orll, we can talk etf just in general about our charts. do markets still have it in them or is it trailing at the edges because there's brexit concern, because janet yellen probably won't be able to raise rates anytime soon? markets havek moved up quite significantly in recent weeks and months. in particular addressing the high-yield market. we do think there's further this market can go. we think a lot of the fall in prices was a function of excessive worries over the health of corporate america, liquidity concerns in the energy high-yield space, which is spilling over into the corporate market, which is why we overweighted u.s. high-yield in our portfolios for the last 12 months, buying as the prices fell. now we think it

have david stubbs with us. chris, talk us through the numbers because there were some items that seem to inflate the profitability but sales are still lagging. is it all about the emissions scandal? chris: yes. the provisions that you , itioned, the one off gain was basically a currency adjustment for the 16.2 billion euros they set aside last year for the scandal. they set it aside and now it is working for them. gain, they would have had a decline in operating profit for their quarter. that is chiefly because it would have been really bad if it was all about the volkswagen brand. it tumbled 86%, the prophet in the quarter. a big drop in that is at the epicenter of the crisis. tom: help me with the redesigned vw. i saw a tv ad last night during the stanley cup finals of the press sought and they are sat.ing it pas is it a redesigned vw? chris: that is still a work in progress. the ceo is working through his neck strategy and he will present that in the next few weeks. tom: how have the german people responded to this? , vw is u.s. audience much bigger than the vw brand. is it front a

. level as toorrent low for today's economic conditions. caroline: now joining us for .ore is david stubbs -- where do you live when it comes to the u.s.? is the federal reserve desperately trying to talk up two rate hikes? david: the first thing to talk about is the june meeting. 6%, hardly a vote of confidence. i think we will get one rate hike this year. there will be some sort of economic rebound after that week first quarter. eak first quarter. caroline: how global is the federal reserve's perspective likely to remain? they were citing problems in china. how much are they paying attention to brexit risks? i think they will be sensitive to the global central-banks. ,he debt contracts of the world currencies of the world have hinged on the dollar. we are seeing china be a lot more stable. this questions over the long run stability. -- these questions over the long run stability -- america is a fairly closed economy. the main concern for those who -- it wille rates take a number of months for that play out. going to be a fed rate hike, it will be in the second half of this year. betty: what will

stability. david stubbs, the global market strategist at j.p. morgan asset management. the none on the same page the, the u.s. and japan over whether what we're seeing in currency markets is anything out of the ordinary and therefore requires intervention. >> i don't think they are in a place where it's a slamdunk case. it's for what we think is the cold currency war where the central banks do things with rustic securities and allow private sectors to take the money aboard and issue currency down to turn it into a hot corns -- hot currency war. at the moment we are not in a place where the major countries in the world agree that the currency needs to be manipulative formally, but a lot of countries are looking for stability right now. we saw the effect in the u.s. and they know it cannot go much further. the japanese are learning not to lose that much export competitiveness with a high currency. >>. the essence of this g7 was no communique and my take is a rather dysfunctional response. canada and japan on one side, germany and the u.k. on the other side. there is no consensus in terms

new york and, speaking with jpmorgan's david stubbs. that is it from the pulse. surveillance is next. i will see you later at 3:00 p.m. ♪ june back endsm: and with it, a june meeting and brexit within austerity. the dollar stronger, gold weaker. yellen andrology trying to drag the market to their collective trying toand draghi drag the market to their collective areas. caroline hyde from london.