we do not invest enough in europe and our lost generation, it's not only a lost decade in europe, it's a lost generation we have. i mean, we need to do something for those people to have them believe in this europe again. peter: to pick up on a point you maybe short while ago, the time has come for angela merkel to dump wolfgang schaeuble. for her to decide, really, but one has to say -- peter: you are being very cautious. think itause i do not is the job of a journalist to advise the government to make this or that decision. peter: he stands for pulling the break. >> the idea that there has to be a limit to what a government can borrow is one of the most stupid ideas that has ever been introduced into policy. reader: prevailing poverty in the european union. the point of being a government is that you can are as much money as you need to save us from economic ruin and to decree from huron they you're not going to do that ever under any circumstances safely means that somewhere down the line, a politician is going to have to break his or her promise. i cannot even start to say how stup

that western europe and western europe is under a lot of pressure. allies from wars, fasci fascism -- and our allies are going to join the -- a lot of pressure. right, let's go to jim scroggins, texas, jim, good morning. good morning. my thoughts are rather kind of scattered, but what it really comes down to is we need the united nations. somebody doesn't pay their dues, do you kick them out of the union? talk to them. you kind of try to convince them that it is for their own benefit to be part of it. friends an't trump make with our friends and keep our enemies?ur what kind of psychology is this, make friends of your enemies and alienate your it is ridiculous. host: what about president tweet this morning bringing up germany and u.s.-nato alliances, he said, we massive trade deficit with germany, they paid less than should, bad for the united states, this will change, he romised in the tweet this morning. caller: am i still on? host: yes, sir. caller: okay. is just wonderful, worry that g is, i e aren't safe if we can't have -- ody else besides late

exodus: ourjourney to europe. this is the story about people who travelled for europe.|j is the story about people who travelled for europe. i survived schillings, isis, basharal—assad, the sea. i survived everything. —— shelling. the prosecutors. we are talking over half £1 million in cash. the difficulty here is that even though we have 20 sets of cctv, there is no way to identify anybody on that cctv footage. what we will say is that it was not me. —— what they will say is that was not me. to be honest, i see myself as a real boy, but they do want to be a real, real boy. i often go to london, where they go down with my situation. although i just where they go down with my situation. although ijust want it now. and the bafta goes to exodus: ourjourney to europe. that is great. i would just like to quickly thank bafta and he became we had making exodus: ourjourney to europe. and bbc for being so supportive during the process of this film. but i would like to mainly thank the courage of the contributors to share their stories. ido want contributors to share t

>> as she noted before, the wave so far this year has crested in europe europe, in austria in, netherlands, now in france. the la pen type party, all of which have fallen short. and afd has lost a great deal of support in polling. but i think this election just underscores how politics across the west is being reoriented around a new fault line. you see in paris a coalition of transformation in which you have a co lalition of voters, white collar, who are essentially comfortable with a more globalized integrated diverse world. then you have on all fronts whether it was donald trump here in the u.s. or brexit in the uko la pen, you have a coalition that's mostly nonurban and that is uneasy about demographic, cultural and economic change. you feel that they're being left behind or slighted. this is is the fault line. in the first round of voting. la pen won less than 5% of the vote in paris. we'll see the final numbers, but i assume it's going to be very low again. this is where we are seeing our politics divide certainly here in the u.s. this was the fault line in this election. it is incre

you say globalisation is too hard for us, so is europe. let's shut our borders, leave the euro because others succeed, not us. the atmosphere got heated. "i treat the french like adults," mr macron told his opponent. "you lie all the time." then each was asked about terrorism. translation: the safety of our people, the fight against terror and islamist extremism, you don't want to take it on and i know why. against terrorism, we have to close our borders straightaway, immediately, and that's what i'll do the moment i take power. translation: closing borders achieves nothing. there are many countries outside the schengen area that have been hit as hard as this by terrorist attacks, and since 2015 we have put back border controls to fight terrorism. in this debate the french people have heard two very different visions. now they have to pick a side. let's have a quick look at some of the front pages. the i leads with theresa may accusing european politicians of making threats against britain to try to influence the general election result. t

how low could this put us — europe, uk— europe relations? think about back to 202, -- 2002, the europe relations? think about back to 202, —— 2002, the chancellor then was elected in part because he went against the us invading iraq. despite high tension and accusations, no one ever questioned whether nato was going to continue asa whether nato was going to continue as a viable alliance. what we are talking about now is clearly a deep fish in that sense. it might be papered over going forward, there are elements of the trump administration, who want to commit to article five and go forward with nato but the fact that president trump is truculent on this issue and the fact he has demonstrated that clear reluctance to adhere to the paris climate agreement and that he made pullout of the treaty this week, suggest that merkel is pre—empting this move away from western liberal internationalism. thank you very much. british airways passengers have suffered a second day of chaos and disruption, as the airline struggled to restore service foll

it was built to divide europe, to keep people in and ideas out. in face of the division, nato allies stood united, in the face of freedom, democracy and human dignity. in 1989, the wall was brought down by peaceful protests, by popular movements, and by the bravery of countless men and women across central and eastern europe. each day, all those who will enter this building will pass this memorial. they will understand that freedom will never be defeated and that nato will always defend the values on which our reliance is founded. so, chancellor merkel, you were in berlin the very night when the wall came down, and therefore, it's a great honor to welcome you here to brussels, to the new nato headquarters, and the floor is yours. peace. >> translator: your majesty, secretary-general, dear colleagues, nato's new headquarters will be the future point of reference of nato. the modern building like the building of this headquarters is a reference to the future. however, if we are to find convincing answers for the future, it is good to remind ourselve

europe is over, the battle for europe has begun. france's lagging behind other european countries as well. then you look in terms of the work we do. we look at the number of alien heirs and the country with the or largestber inherited is france. the population of paris is seven times larger than the second largest city of lyon. i think that is the entire point. -- the next populace in italy possibly. france winds that, that opens the possibility of something happening in europe. >> this is the story about europe. for the past quarter, it probably group even faster than the united states. portugal, spain, these countries back. least they cut back on neighbor cost. would leavetry that a cost that has gone up is france. france is really the sick man of europe in many ways and that is what needs to be corrected. remember, france is fundamentally a socialist country. if you read on the commentary, expectations are quite low. expect haitians are quite low and -- low andis quite relatively optimistic this may be a moment of change for fran

we are continuing to engage with europe. it is born for us, it is important for europe. int like having to set up the united states, continuing investment banking in the u.s., the european union will require us to set up structures across more robustke it and more within the fold of europe. >> you know what i'm getting at. does e rdness of brexit determine how great the impact is? jes: there could be decisions taken that might not be in the best interest of the free flow of capital. but i think one of the tenants -- if there were a couple of things that came out of the financial crisis as a positive, one is the coordination of the g-20. one thing that the g-20 step two is that as we, let's not inhibit by putting up barriers, the free flow of capital. so long as those barriers are not put up, they will be worked around brexit so that london will remain an important source of capital for continental europe. erik: relative to some of the peers, on the subject, you're an optimist. at least you are constructive. what is the upside to be optimistic? what gives you that degree

trump is striving out of europe. so europe needs to gain new strengths. and showing will to deal with russia on the major topics on the world's agenda. sarah: we will see that will indeed be possible with so many questions about possible shifting analysis -- shifting alliances. thank you so much. one week after the manchester arena bombing, british police are appealing to the public for clues about the suicide bomber who carried out the attack. they have released an image of salman abedi with a blue suitcase in an effort to re-create his movement in the days before the attack. police believe he had the suitcase with him at two locations in manchester. the suitcase was not used in the attack. 22 people were killed in that attack. 14 people are currently detained in connection. as the search for accomplices goes on, britain's mi-5 is probing why they fail to stop the alleged attacker. he was known to authorities in much the way that berlin's truck attacker was known to police here. have a look. reporter: a week after the terror attack in manchester, rates a

i don't think europe has anything to fear that the united states will not stand with them in europe. >> bill richardson, that's an important point. we cannot deny history. the last time russia was resugee ant, the united states was going to alone, we were in world war ii. >> we did. i think what the president said with with g7, we are changing our foreign policy. we will not endorse article v of nato which is come in self defense. he picks a fight with germany over bmws. it looks like we will renegotiate climate change with 19 195 countries. we are basically saying the big issue is for us. you pay your 2% for nato. we did not say anything about how we are going to be strong with russia in the sense that russia to european countries, eastern europe, western europe, they use leverage with natural gas. they push them in crimea. they push them across eastern europe. what you have now is angela merkel, the leader of germany, basically saying, look with france the new president of france, we will probably have to go it alone on climate change and defense. i think we stay in nato. i think t

everybody has given up hope on europe. whoots why europe remains attractively valued. if you look at it and strip out financials, europe and asia both look fair valued against the long-term while the u.s. is trading very expensively. if you're a long-term investor, evaluation really does matter. it is probably about 80% of your long-term returns. so if you're buying high, buying expensively, you should expect not to make a great return. europe is still not expensive and you have that cyclical recovery story. matt: what do you like here? i'm looking at the g.r.r. screen which is a breakdown. a year to date breakdown of the industry groups in europe. obviously tech has really outperformed. what do you think is the right way to invest in the european story? >> as i mentioned earlier, we continue to favor the structural growth companies. the technology there. you can see a lot of companies and industries and centers there which by and large have long-term structural growth stories. there is a lot of transitions going on. four major transitions going on in global economy. o

, and youngest population in europe. well, you know what you offer them, we all know what you offer them, a 12.5% corporate tax rate. donald trump is now saying he wants to cut corporate taxes in the us to 15%. your crucial competitive edge which has driven the irish economic recovery since the meltdown crash of 2008 and is being taken away from you. no. 0ur competitive edge on our eu colleagues and others is not exclusively ore merely in the area of taxation. it is the adaptability of our workforce and the skills of the workforce. dublin is repeatedly voted among the top european... you may think that, minister, but look at... the record speaks for itself. the record could be looked at in different ways. look at the legal case in europe about apple and the way in which ireland taxed apple, one of the most successful corporations in the world. you know, you let apple put their profits in this country, and you taxed them at a rate that was less than 1%, much less than 1%. and the eu said this is not acceptable. the wind h

and europe will remain high. we have seen that donald trump is sometimes very hard in his rhetoric against china, japan, countries where the u.s. has a trade deficit. this is also the case with some european countries like germany, obviously. but at the end of the day, we have seen u.s. administration becoming more pragmatic. with the trade agreements that have been reached with china if youy, i believe that can do your own work in terms of increasing spending, that is something they need to do. you heard merkel over the weekend, talking about her own destiny and future, which means we have to invest more in defense and a multipolar world. which was seen as disappointing by some political leaders. down the line with the comments of emmanuel macron. it was certainly a success from what we have been able to hear, but still a good basis to move forward. manus: a good basis to move forward. good morning, it's manus in london. i want to show our viewers the trade deficit between the united states and germany. mr. trum

a leading stock in europe. -- a laughingstock in europe. a rocky start to the week for president donald trump, dealing departure and questions over his son-in-law's connection to russian businesses. another shrugging off day today. euro area economic confidence falling for the first time this year. how the numbers will impact their next decision for these three presidents. mario draghi. equities european right now, 30 minutes until the end of the tuesday session. gmf go is your function. the european benchmark down for a fourth day, worst stretch since march 7. common currencies falling, the ones at the bottom, including the pound, rising against the dollar. sovereign bonds is your final three columns. you just heard before from the chief executive of ryanair, michael o'leary. ryanair planning to accelerate european expansion, taking on financial woes as regional competitors reduce -- ance on and in certain uncertain u.k. market. we are going to add two or three more 737 jets to its existing delivery schedule while extending leases on 10 ot

tom: are there too many banks in europe? howard: in some parts of europe, that has got to be us. if you look at the entire continental europe, the concentrations are lower than they are in the u.k. tom: what about within two kilometers of the sainsbury's square? [laughter] the u.k. market is very different because it is heavily concentrated. here, the challenge is to get the banks to take a bit more pressure. guy: it does feel a bit different. when you think about how risk is bounced right now, we have politics being a big factor. does that they? -- does that fade? how does the market focus on what is going to happen next question mark if the fed tightens -- how does the market focus what is going to happen next? if the fed tightens rates, is that what we should be focusing on? hee ecb is getting in on t process. where does the risk lie there? howard: i hope we will not see policy risk in an aggressive sense. the banks have gotten better at signaling their intentions in advance. is phrase forward guidance not fashionable because it did not work terribly here when it was called be

louis was supposed to go back to europe with american passengers on a cruise to europe but of course in the passengers are going back. you can imagine what the atmosphere is on board at this point. it is not the same atmosphere as of the first journey to cuba and all the newspapers are very much afraid of a mutiny on board. this is not with the captain is afraid of. he's afraid of suicides on board because a lot of people do not want to go back to germany and others who were already in concentration camps cannot go back to germany. at this point, the negotiations with cuba have failed so it is completely over. the representative of the american jewish joint transition committee, he has very little time to negotiate with some countries in europe. those countries are france, belgium, the netherlands and the u.k. and it is difficult for that mostlyies, because true that border germany because they have already received a lot of refugees across the border, both legal and illegal. he at some point play some sort of poker game and tells the refugees -- tells the representatives of this cou

europe to cover the war. americans paid attention to the war from the very beginning. they knew this was single most important event to happen in their lifetimes. they knew it was already affecting them directly. when the war broke out, united states had no way to transfer gold, american currency was based in gold. european countries sold stocks in new york city, getting cash, taking the gold out of the united states. if that continued the united states would have literally run out of gold, in late july, imagine this, late july 1914, the government ordered new york, philadelphia, chicago stock exchanges closed. they remain closed until november. imagine that happening today. the war was affecting americans from the very beginning. one thing richard harding davis told his readers you news you get from great britain is biased, it is propaganda and wrong. however the base, point britain is making that germany is committing terrible atrocities in europe. don't believe what the british are telling you. believe wha

this is the most scripted i've seen donald trump ever be as he heads into europe. vonnie: except for the one comment that appeared to be off script about the new headquarters. he basically pulled himself back from asking it. he moves on to the g7 after this. how important is it to develop relations with the leaders of europe before moving to the g7? kevin: perhaps another unscripted moment came when he took -- when he shook hands with the french president. quite a grip. as he heads to the g7 summit, you will see a pivot toward economic issues. we saw a little bit of this with saudi arabia as the president announced details of that trip. there's no question that back home, he is facing criticism on a host of issues, including these investigations and on his budget. for him to reset the rhetoric of his campaign and make a good first impression in europe. but quite candidly, just from my reporting on the ground in belgium, the response he's getting in europe is night and day with the response he got in saudi arabia and israel, which were much more accepting. kevin cir

the world and europe are looking at us. europe and the world expect that we defend everywhere the spirit of enlightenment, which is threatened in so many places. they expect that everywhere we defend freedom, but we protect the oppressed. they expect that it would bring new hope and new humanism for a safer world, for a wld with freedom of a world of growth, of more justice, of more ecology. they expect that we are finally ourselves. the task in front of us, my dear fellow citizens, is enormous. and it will start from tomorrow. it will impose the moralization of public life. the defense of our -- the advancement of our economy, the few protections in this world around us. and to give everyone a place through education, work, culture. to refound europe and to ensure security of -- the security of all the french. this task in front of us is enormous. and it will impose the continuity and audacity. yes, tonight, we have the right, a right that obliges. you have chosen our city and that audacity we will go forward with it and e

. >> he was europe's witness. europe's chronicler. europe's companion. he researched and described europe's growth and development during the last four decades like no other. now an oxford professor he traveled to berlin for doctoral research. the theme of your became clear to him. in his most recent book, his call for freedom of opinion drew a lot of attention. he emphasized european institutions are the means to an end, not an end in themselves and they must adapt to changing needs. >> personally i find it unbelievably moving that refugees from all over the world are pining for germany as if it were the promised land. it is wonderful germany stands out in an ocean of nationalistic populism like an island of stability and of liberalism. given this scenario he continued germany and france must work together to further shape europe. >> we will be back after a short break. >> the dw media center. see it live. find it again. here more of it. discover it. video and audio. in the dw media center at media center. ew.com. >> this is a 15-year-old girl being gan

and europe's new power couple. after a big win for merkel in the key state of north rhine-westphalia, how will macron and merkel reshape the eu? they meet in berlin later today, matt. matt: that's right. expecting that meeting around .oon, so six hours from now we are less than a half-hour from the european open. bureau stocks -- euro stocks rising a quarter percent. cac futures, looks like a risk on day. investors are selling off bunds. i have a three-day chart, let's move it to one day so you can see the price action. you could see some volatility there, but yields are still up 0.4%.right now, to .0 guy: what do you make of the win for merkel? north rhine-westphalia is big, and she took it big. is it in the bag, when we get to the central vote in september? matt: i don't think you can say it is in the bag, because we still have four months, and last year in the u.s., not everybody thought donald trump was going to be the next president in july, or even in august or september. but we do have a really shocking vict

to buy europe? julian: you don't have to, but practically speaking, the flows we are seeing my people are trimming their exposure in the u.s. to buy europe. there isn't an unlimited buying power globally. europe really does remain a compelling story to us. really for the reasons, it's all the right reasons this time as opposed to early 2015 when it was purely a weak currency trade. now, it is a sign of strength. the euro will appreciate over the course of the year. that is not going to hurt this time because so much business is going to emerging markets. jon: more auto sales coming out of the united states. we've got gm in just a moment. gm april auto sales down 5.8%. another downside surprise. to pivot back to the united states, bank of america merrill lynch coming out with their latest client survey. the lowest of any april since 2011. climbs -- hedge funds that -- a lot of clients elsewhere coming exposure. -- trimming exposure. , for us,fo 's certain numbers this morning are disturbing. will be

in europe, you have northern europe and germany in good shape. they have somewhat tight labor markets. the rest of europe has overcapacity and supply. you will continue to the and a low inflation environment in europe. do you think we can do more than 10 best points on the bund 10-year? luke: we think you can. a lot of people are talking about the stronger growth in europe. that is not leading to inflation and not likely to lead to significant policy change in the ecb. we think they're going to buy everything and keep rates low. jonathan: would you be on the same side of that trade? luke: not quite. you think both germany and the u.s. on either side of 5% unemployment. has the wrong level of interest rates in their economy. ecb is starting to take note of that. this is happening in northern europe. there is capacity still to come out of the market. italy is a bit of a basket case. for me, it is not taking in enough of the risk that the ecb could change rhetoric in june and taper more aggressively in september. that means 40 basis points on the ge

it seems populism has been rejected by in large in europe. >> we've been invested in europe for the past ten years. having a presence here is increasing local knowledge. it's important as we continue to grow. also increases exponentially the pool of talent that we can recruit in asset classes. and finally a lot of our peer or competitors are based here, either onhe continent or mostly here in london. it's not only a competitive advantage to have an office here, not to make sure that we're at a competitive disadvantage vis-a-vis our peers. >> when we talk about your investment allocation, you have a strong focus on infrastructure. 47% of your capital allocation in europe is on infrastructure and pe. something else we saw in pe is the industry sitting on a lot of dry powder, record dry powder. that's because there are not that many compelling assets to envest in. are you still finding that? >> i've been doing this for a long time now. i've heard this element of a lot of capital chasing too few deals. i think where it starts to be worrisome is when we see our partners in the private equity

willis not something which be moving quickly in europe. nothing ever moves quickly and europe. we have learned that over the last few years. paul, stick around. paul donovan joining us. let's get a recap. let's get a bloomberg first word news update. president-elect emanuel macron has been congratulated by world leaders, including donald trump. votes, he hasn almost 63% of the ballot. his victory over marine le pen will prove a relief for market. ts. in germany, angela merkel has successfully -- 34%.ggested the cdu took the spd took 26%. it is a disastrous results for merkel's challenger. she's regaining momentum. in china, the foreign-exchange raise. bank of china says cash piles climbed by 24 $.5 billion. -- $24.5 billion. the trump administration is weighing a cut of 95 percent to the budget for the white house office of national drug control policy. theoffice ordinates much of strategy including responses to trafficking. it could see several grant programs for drug prevention discontinued. this comes at a time the president has pledged to aggressively combat opioid addictio

continuing to engage with europe is important for us. i think it is important for europe. i think, just like having to set up holding companies and the united states, the european union is going to require us to set up structures across europe that make it more robust and more within the fold of europe. erik: you know what i am getting at. does the hardness of brexit determine the impact of a bank like barclays? >> you know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of the tenants of the -- you know, if there are a couple of things that came out of the financial crisis as a positive, one is the coordination of the g-20. one of the things the g-20 stuck reregulate the financial industry, let's not regulate and put up barriers, and so long as they're not put up, they will work around brexit so london remains in important source of capital relative to your up. erik: relative to some of your peers on the subject, you are an optimist. at least you are constructive. what is the upside to be optimistic? what gives y

growth is picking up in europe. let's say europe is recovering. it is better. there is a need. -- there is a need for funding. a bank needs to be in good shape to finance growth and job creation, much needed in europe. that is the reason why the discussion at the basal committee is so important. we understand there is a need for a judgment. i have no difficulty with this, but i hope to the conclusion we will be such that we will keep the capacity to finance the europe economy in a safeway. now you have a second question you have raised comparing to the u.s. in the u.s., they speak about deregulation. in europe, we do not speak about more regulation, but more stable regulation, not less. we do not know yet what is going to happen in the u.s. i think we need time to understand. now, there are a few sensitive points for which i think there is a need of specific monitoring. i will take an example for you. it is deregulation under new regulations on trading books, both in europe and the u.s. i hear different mindsets. in new york, i hear that maybe they will not mov

guy: more europe. is that a good thing? >> more europe but a redefined europe. we have a politician who clearly understands that as you were implying too much europe is an issue but redefining europe and getting more focus, what is good for europe is needed. otherwise, the alternative is that the anti-immigration voices, the inability to have europe stay together as one unit, but we are at all times under the pressure over the immigration. i think the deal we struck in europe is not strong enough to survive long-term. we need to find europe. not necessarily more europe but a better europe in terms over the able to navigate. guy: france what is a problem that needs to be dealt with. that was one of the major jobs. >> that's the labor market reform. we have to have a stronger labor market reform. what is interesting is that the french unions is lagging behind -- so in denmark we have what is perceived to be the best labor market. today we have the metals union, it has been the most progressive union. they are more progressive than the employees union because they

hasraditionally, france been -- not an ally in europe -- but the most sympathetic listener in europe for russia traditionally. this has gone back to the cold war, we have seen a number of french presidents try to reach an independent position with moscow previously and this is the first instance we have seen in decades of a french president coming into office with something of an anti-russian or not friendly towards russia viewpoint. this is the position macron started from, this is the result of russian actions during the campaign and positions they took toward them, even when it became clear he was all most certainly going to win. matt: where could putin benefit now from his benefit -- meeting with macron? is it just that he needs support within the eu? can he get that with a strengthening relationship? daragh: it is a little bit of those things. ideally, putting would like to him -- a more divided european union, he would like to see a position open up on sanctions. with a budding relationship between macron and merkel, and the fact that we saw macron being visibly annoyed at the

there are a lot of good reasons for the exit, because for the metals are improving in europe and -- europe. mezzo not moving a lot in that shot. met usually moves a little bit. to be honest, he may be a little frozen there. not matt, but the shot maybe frozen. the data is certainly improving, but as you point out, we are seeing this in the state as well, the pc ease remaining kind sideways, yet the implement this coming down sharply. certainly the delta on that is picking up. when we think about the danger of the ecb, is there a danger become or remain to focus on inflation? there are a bunch of other factors impacting inflation at the moment about what's going on in terms of other factors. is there a danger we look at the wrong thing? thehe ecb mandate, one of core principles, is to focus on inflation. that's not likely to change soon. let's not forget, policymakers can make changes quickly to policies changing incidence rates, asset purchases, etc.. but the economy is a slow-moving beast. whether it's inflation, growth, on appointment, it takes time. so there's an element of patients tha

this is bloomberg. ♪ 8 and in europe it is victory in europe day. whether it was winston churchill , the celebration in france, it was a day of huge commotion in 1945. guy: in some ways very meaningful in the way the language has been used, talking about europe and the restart of the european project. tom: we will touch more on this. we welcome all of you worldwide. for a quickly, final thoughts of pascale auclair. what will you be buying tomorrow morning? i believe you are closed today. where is your enthusiasm for the markets? pascale: markets are open today. it is probably not the exact good market timing to be very bullish on what has rallied so much in the recent days, but on the long-term view, our asset allocation is really focused on european equities, equities in general, european equities mainly, with diversification on emerging-market equities. bonds very cautious on generally. guy: people talking about europe now talk about the political risk being removed. do you buy france or do you buy elsewhere in europe? is the momentum better elsew

everybody is asking about the future of europe. of course, angela merkel's party in the eu had other reasons for being quite enthusiastic, that's because angela merkel's party won in germany. and it's quite a time for her and the backing of the eu going into the all-important election in september. and it again as was young candidates which won that election which also a promising time. back to you. >> all right. i'll pick that up there, thank you very much for that indeed, vanessa. guess what, emmanuel macron abouhas been elected as president of france. we've experienced divisions across the country. a lot of the socialists who basically decided -- well, they were going to go for either le pen or macron. macron won 66% of the votes. his rival candidate, marine le pen won 34%. a record for future elections. now, the euro bounced with the result, initially hitting a six-month high versus the dollar. incredible scenes down at the louvre last night. and ode to joy from beethoven. we had an ode to joy from beethoven at the louvre museu

in europe, it is politics. donald trump is unpopular in europe. it is good politics for her to say what she did over the weekend, which is that europe needs to go its own way. there is a deep substantive disagreement on trade, on climate change, on russia, where perceive president trump to be the weakest president since the second world war, not defending rush -- against russia. europeans perceive that president trump personally is not supportive of the european union. to a lesser extent, nato. is theopean union primary institution they have built since the second world war. as for the tweet this morning, president trump is describing germany as a competitor economically and not an ally. in american fork policy. david: he said we have a massive trade deficit with germany. plus they pay far less. very bad. president obama's of menstruation advocated larger countries as well. he is he? >> no. president trump is right that most europeans are not paying much. they're supposed a floor of 2% gross domestic product on defense spending. 20 of 28 countries

s europe a good value? everybody is pretty much long europe now. >> right. we manage a global-focused fund. we have been overweight europe for over a year, underweight the u.s. the evaluation with respect to -- this is the wrong we are at the beginning of the european earnings cycle and at the end of the u.s. earnings cycle. u.s. earnings are 20% above their prior peak of 2007. european are 20% below their prior peak. have a look at price to book. europe trades on 1.8, two times price to book. u.s. three times. 10-year average 15 times for europe. 5% cheaper than the u.s. its last 10-year earnings. if you look at the price to book, long-term earnings, economic growth, p.m.i. six-year high. look at the citigroup surprise index. negative in the u.s., positive in europe. political risk has moved from europe to the u.s. very constructive on europe. tom: good morning. help me with the i.s. curve. if i look at the islm model, we're supposed to get fiscal stimalso a out of mr. trump. -- stimlouse out of mr. trump. fiscal will be a u.s. timalso a. one backdrop we sh

where do you place europe? >> not necessarily in the first place because of course, the main winners would be in asia. but europe is one of the big blocks in the world. clearly, the game is between europe and the u.s. if the u.s. keeps distance, europe will jump on this. rkets again, very quiet today. we will continue to look at them and their correlations. helping us will be carl weinberg. he has been nothing short of a miracle on japan. we will also discuss china and mr. trump with carl weinberg. stay with us. this is bloomberg. ♪ >> we have come to the conclusion that the agreement needs to be extended. we will not reach the desired inventory levels by the end of june. therefore, we also came to the -- itsion that ending by will be better at the end of the first quarter, 2018. francine: that is saudi arabia's energy minister, khalid al-falih . russia and saudi arabia favor through the end of the first quarter of 2018. kennedy, what does this actually mean? even if they cut production and extend the output

it certainly would it be to europe. it certainly would be the ireland because your livestock producers would be killed by that. so much of their trade is with the uk and if, as i understand it, you averted to a wto rules and ta riffs it, you averted to a wto rules and tariffs on meat exports ireland's industry would be decimated. and also looking beyond trading terms of politics. no deal in the event of there being nuclear withdrawalfrom there being nuclear withdrawalfrom the talks, what happens to uk citizens in their millions? what happens to be citizens in their hundreds of thousands enjoying life and the benefits of the uk? to my mind, a walk out is a difficulty that would not result in a settle m e nt that would not result in a settlement and that the worst of all options and that's why again i have just as the need of all parties to ensure that the process commences in an orderly way, with a set agenda. and from the irish perspective, one of our priorities must be that there is as close as possible relationship be

and europe. i asked her what is your objection and she said it would mean we would introduce unhygienic american products into europe. trade by definition means shifting cultures and this anxiety about unhygienic american products is very telling. that's the first one. the second plank is a feeling of collective grievance and desire for national recognition. trump -ism is defined by grievances against bankers, mexican, chinese and so on. ironically in europe it's the u.s. who is the bogie for these types of movements. folks who oppose the tip will say american products are on hygienic or we will have genetically modified american food and similar phobias. or take alexander to gai -- vladimir putin stop philosopher. for him liberalism is another form of invasive universalism that threatens russia and america is at its head. they described america as the kingdom of the antichrist that should be destroyed and will be destroyed. when i interviewed him he said liberalism is totalitarianism. with trump

peter, what is your expectation in europe? we have countries with differing expectations but first of all, are we measuring right? >> good question. probably not. given the data at our disposal, we have all sorts of questions on inflation. and we got the right prices? all of those kinds of things. i tend to take the numbers at face value because we don't have time to sit down and worry about measuring correctly. but i agree with the point that inflation across europe and across many parts of the world is likely to remain for the course of the next few years. i wonder at the extent to which technology has put downward pressure on inflation. we are buying more online. dynamics whenhe it came to looking at macroeconomics. francine: do you invest linked to inflation? >> we have to worry about real rates and returns. all of our forecast inflation and justice and we have to consider bonds and equities through the real return. i would make to a division's. -- make two observations. one is we had a way that can't make any sense of low

and europe is drifting apart. she said that europe must plot its own course. andrew barton said this is a watershed comment from the german chancellor. merkel's spokesman speaking to reporters in berlin. merkel considers it necessary to address the g7 differences. there clearly were differences, usually six versus one, the one being president trump. other comments are from the ecb's ewald nowotny. he is speaking to reporters in vienna. he says we are seeing positive news on growth and he says he expects more wage dynamics once the upswing is consolidated. it comes ahead of the ecb's meeting next thursday. he says we shouldn't speculate about the outcome of the june meeting. great things are expected next thursday. maybe a change in the rhetoric from the central bank. gold is holding near three-week highs, growing uncertainty over the looming u.k. election after a poll shows the conservative's lead narrowed. let's get back to michael purves. .nders corr michael, you won't be able to see this chart, but it is a wonderful chart by our wonderful queen of charts, h

what does this mean for europe, and by extension, the u.s. in terms of that remark from angela merkel, if it were to play out in policy, fred? >> reporter: well, i think it certainly will play out in policy, but i'm not sure how big the long-term effects are going to be, christine. on the one hand, angela merkel said she was committed to the transatlantic alliance, but at the same time, she said right now with this white house in place, it really is unclear to the europeans where they stand. so, one thing that i think you will see is you will see a lot more orientation by european countries towards themselves, towards strengthening european ties, especially now with the brits also leaving the european union. you'll see that axis of paris and berlin really trying to deepen their relations. and at the same time, i think you'll see countries like germany, but france as well, really trying to up their cooperation with asian countries as well. the germans have been doing it for a long time. they actually have, strangely, a pretty balanced trade wi

are you seeing a pick up in growth in europe? >> europe is growing. uk we seexceeded 2 million. germany 2 million. italy is coming up stronger, 1 million. france is picking up. they learn the value for money for cruising. spain as well. overall we have seen huge growth. it's becoming a global business. like i said, it's an alternative to any vacation. the biggest publicity is word of mouth. people coming back can say what a great experience what a great cruise that was. >> one of the biggest impediments to the cruise business is closed borders. under president trump we're potentially looking at that. how big of a problem has that been and will it be going forward? >> we distribute as msc basically globally. we have offices in 48 countries. we see people love to come to europe. they have issues with visas as well. there are issues with freedom of traveling already in the global world. but people find the comfort, the security, the exploration, visiting new continents by cruising. we think that america, to be exact, whatever trump is trying to achieve will not really affect cruisi

europe's --in easing europe's migrant crisis will be one of the big challenges facing the new president. today, 200 people drowned as another boat sank on the way to europe from libya. they found a smuggler hiding among the refugees. reporter: exhausted, refugees are brought to shore after a dangerous journey. they're among 7500 people rescued in the mediterranean in the past five days. many others are feared dead. >> we're still trying to get more information. we will see if there are survivors of this incident. this tragedy brings the total number of people dead from the beginning of the year to more than 1150. libya's: separately, coast guard picked up survivors over the weekend. they said they had been on a boat packed with 150 people. babies, washedng up on the libyan beach. people fleeing war and poverty pay a high price and risk of their lives. >> so heavy. and materials. reporter: migrant arrivals to italy by cr up nearly 30% this -- by sea are up 30% this year. syrians are among the increase in refugees. making35 migrants dangerous european crossings doesn't come out alive from

a leading stock in europe. -- a laughingstock in europe. a rocky start to the week for president donald trump, dealing departure and questions over his son-in-law's connection to russian businesses. another shrugging off day today. euro area economic confidence falling for the first time this year. how the numbers will impact their next decision for these three presidents. mario draghi.

comments are my why are we trying to defend europe, europe should defend themselves f. they are not illing to defend themselves, ce why are we trying to defend them? there, i would pull out of nato and leave the europeans to hang on their own because the russians certainly some impact if there, i would out of nato and leave the europeans we europeans are oing nothing virtually to protect themselves. o that is the end of my comments. guest: well, thanks for that. i certainly understand where you are coming from. i wouldn't say that the europeans are doing nothing, again, certainly the countries racing ast are quickly to get to 2%, for example, will get there next year, romania is raising defense spending. terms of europe defending itself, at the end of the day, contest really isn't about russia and europe, it's actually about us. countries that have defense guarantees from the treaty andes through the united states is in charge system, al alliance which also applies to a japan and korea and attempt by russia to invade the really isn't it about putin wanting to rule the b