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tv   Bloomberg Markets European Open  Bloomberg  April 6, 2018 2:30am-4:00am EDT

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♪ guy: good morning. welcome to "bloomberg markets: european open." johnson in our london headquarters. alongside matt miller in berlin. cash trade less than 30 minutes away. ♪ guy: trade escalation, china vows to fight to the end. president trump proposes an billion tariffs. u.s. and european equities drop on that news. .owell, not payrolls
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markets look forward to a speech by jay powell later today. will he point towards three or four hikes this year. the future of deutsche bank. recruiters are eyeing former j.p. morgan executive zames. will he be the man to fix germany's largest bank? we are less than a half hour away from the european open. look at what we have going on in equity index futures after the big gains we saw yesterday in the cash trade. massive, really. almost 3% up on the dax index. futures are pointing down, maybe not that much. even if you did not know donald trump had threatened $100 billion tariffs of imports from china. you might expect a little bit of a drop today after the massive rise we saw yesterday. take a look at treasuries. you did see the u.s. 10 year 2.8d will back up above
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percent in yesterday's trade. we have come down a little bit this morning. .8137. at 2 will the markets take that trump threat seriously? if so, would they buy debt pushing the yield down further? guy: it is really interesting watching the markets try to get to grips with the trump reaction function, trying to understand what his negotiation, what is reality, what will turn into policy, what will not turn into concrete policy. yesterday, the markets flipped back. looks like weit will see that reversing a little bit. south korea, let's look at political developments there. one to watch out for a while -- as well.
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talking at the trade story, what is happening in the commodities space, i highlight what is happening with the soybean story. soy down 1.45%. do we assume the 50 billion which the chinese reacted to with the soy story is now more certain if we are talking about the 100 billion? i do not know. the conversation gets convoluted quickly. the markets, i do not know. it is hard to see how the are rationalizing this and trying to price it in. it is a flip flop story, and it has been all week. >> president trump said the deal may be reached on a revamped nafta, while playing down expectations the announcement will come next week. it was previously reported he heted outline agreement so and the leaders of canada and mexico -- justin trudeau said
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yesterday the nafta talks have picked up momentum. a brazilian judge has ordered the arrest of former president a day after the top court rejected his appeal against imprisonment. he is convicted of corruption and sentenced to 11 years. he argued he should not be jailed until he explored every appeal. the supreme court denied that. his jailing does not rule him out of the running for october's election. it seems unlikely he can return to power. malaysia's prime minister has dissolved parliament, triggering the election process. the chairman of the election commission said the vote will take place in 10 days. the former premier's party has been banned from campaigning for 10 days, a move that can dent his chance of winning. global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. this is bloomberg. matt: thank you very much for that.
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u.s. president donald trump's latest moves jolted stocks and the yen. asians shares were mixed overnight, while u.s. equity futures turned lower and declined. mainland china's markets remain closed. investors are waiting for fed chairman jerome powell's speech. are nonfarm payroll numbers later today. they are watching the trump trade spat. us from singapore, bloomberg strategist. after the initial disbelief when you hear donald trump say now it is 100 billion, an extra 100 billion worth of imports, his lieutenants had been talking down. do you take that threat anymore seriously? mark:billion worth of so far, ts not appear to be taking it as a serious threat.
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they seem to be thinking it is another way of getting talks to get started. maybe it is just to get china quicker to the negotiating table. the reaction in the market is modest. s&p futures have taken a bit of a hit. the asian markets are not doing too badly. the response from china so far has been to remind everybody they are willing to talk about it. investors are taking a calm approach. in a way that, that is good. it also means if this does get more serious, and if negotiations do not go well, then there is a big reaction to be done by the markets. hand,, iton the one could be delaying a market response further down the road. is fascinating to me. listening to the coverage we generate here at bloomberg over the last week, we so wednesday this massive market reaction,
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and we saw crazy day of trading where and u.s. futures were down lower, and then we came back again. we see these huge swings. today we do not know how it walk unfold. i am struggling -- today we do not know how it will unfold. limited into the equity space. we talked about that during the week. you talk about it being a moderate response, and a bigger one coming further down the road. can you give us a sense of scale for what that response could look like? we have seen aggressive swings this week. mark: definitely. facte are looking at the that the global economy is doing pretty well. today we will get the nonfarm payroll from the united states. it will be another healthy month of gains, even allowing for bad weather. the american economy is doing
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well. most asian economies are doing pretty well. nobody wants to look beyond that for the moment. if the trades tariffs really do kick in, if both china and the united states attack with big numbers, if 150 billion of goods are put under tariff, that is a big hit to either economy, then we have to think about, ok, this will hurt the global economy. then equity markets could drop 10% or more. we could be lining up for a big fall down the line. so far, people do not want to believe that. they want to believe the politicians will get together and negotiate this properly. a train wreck could be coming, but nobody wants that train wreck, of course. guy: nobody wants to talk about it either. mark cranfield, thank you very much. follow the entire team
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on your bloomberg. want tostory i highlight, what is happening with the turkish lira. it hit a record low against the u.s. dollar. there are stories floating see moreome people orthodox when it comes to the turkish administration. by no means a firm story. i want to highlight that very clearly. the rational voice in a turkish administration, if he were to depart and resign, that would have a big effect on the turkish lira. pay attention to it. it could be a story we need to pay attention to. matt: thank you very much for that he said news. up next, former german deputy finance minister joins us from the embers eddie -- from italy with our own francine lacqua.
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this is bloomberg. ♪
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♪ 17 minutes until the start .f cash trading here in europe here's a bloomberg business flash. >> former j.p. morgan executive matt zames is one of the candidates contacted by
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toruiters in recent weeks replace deutsche bank ceo john cryan. according to people familiar with discussions, recruiters did not have a formal mandate at the time of the approach, zames was sounded out as part of the search. zames did not want to comment. cryan says he is committed to the role. outlinede ceo -- coo the way she is responding to the data crisis. sheryl sandberg said for the first time advertisers have curtail spending in the wake of the scandal. she acknowledged her team has a long way to go to reassure weary customers -- wary customers. >> we do not build our operations staff fast enough, and that is on me. at the end of this year we will to 20,000. we are massively investing in smart technology. we are doing all of this to ensure we get to a place where we can proactively protect
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people's data. >> samsung electronics have projected higher than expected profits. it rose to $14.7 billion in the three months ending in march. that is strong enough to outweigh concerns about display supplies to apple. that is your bloomberg business flash. matt: thank you very much. let's head to italy, policymakers and business leaders are gathering for the ambrosetti workshop. francine lacqua is there with a guest. you matt andnk guy. i am delighted to welcome onset -- on set, from hamburg university. .e is a politician in germany thank you for joining us. usually we talk about central banks. how much of this discussion will
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be on tariffs and trade. you think we are in a global trade war. era that trumpw has opened an era where we talk about trade more. free trade was always in -- always an open question. other conditions for treat -- conditions for free trade? trump has one good point. we have to acknowledge there are ,ountries including my own germany, that have huge surpluses in trade. this is not a normal part of thattrade, free trade countries articulating surpluses. so far, this is a real point, and we have to take it carefully . we should not talk about trade wars and retaliate.
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francine: this looks like it is escalating. >> it is escalating, but i think europe should be the ds quitting power. europe is split. likeve a weak countries italy that has a surplus, but due to recession. germany with a huge surplus is an inside problem that prevents europe from acting coherently. this is why europe cannot play a role. on the other hand, we have the u.s. and china where things are escalating. there, the analysis china has done a lot to bring down its deficit. it is just with the u.s., the bilateral is high. francine: peter navarro who advises donald trump took offense to china. offenseast he has taken
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to germany. you think germany could be the next one in the eye of the storm of president trump? francine: i'm rather -- >> i am rather short it is going to happen. will act on it. the most simple thing to do would be to talk about the dollar, talk the dollar down, and do something to get the dollar down, which is easy to the united states. 25%,e dollar would fall by the thing would be done, and you do not have to talk about tariffs. this is ridiculous. technically what they do is stupid in my view. the general point is right. the countries have to adjust in a way that we get more balanced trade. trump says fair trade is not unreasonable, that is right. we need fair trade and better rules for fair trade. the china, the focus on china is wrong in my view. for 20as under pressure
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years. i have been sitting in many meetings where there was huge pressure on china. china has increased wages. imports are up. the rest of the world is down. francine: has germany acted? >> germany has not acted, that is the problem. wages are growing a little bit more but not really. the german government is doing nothing. the german government is sitting on piles of cash. they could act to do more investment in infrastructure. they are not doing it, and that is one of the big problems. francine: do you think germany is aware of this and they will avoid president trump retaliating against germany specifically? >> i hope so. at the moment i do not see it. we have the same pressure inside europe. at the last meeting we were criticized heavily. germany has not acted. merkel acknowledges the problem, and see something has to be
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done, and so far the next target could be germany. the focus on china is misled because china is in such a difficult and complex situation with all the direct investment going on. most chinese exporters are coming from western firms that produce in china, which is not the traditional export that they are creating. francine: do you worry this is the end of the wto? do you think europe and other countries should align themselves with the u.s. to put pressure on surplus countries? >> germany cannot put pressure on countries. france can. france and italy should put more pressure on germany. then to find a coherent european role. if germany would act on its surplus, europe could act on a global scale. this is not happening. going back to the wto, the wto is a good idea, but it is badly
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managed and badly done because the rules are not perfect. the wto is not dealing with the undervaluing, there is no ,rticle that deals with this not with undervaluation due to wages. it is very incomplete. francine: thank you very much for joining us here. we will be here throughout the day from the ambrosetti foreign. guy: what a place to have those conversations. thank you very much. as francine says, we've got great guests coming up. that is just after 8:00 a.m. u.k. time. we are nine minutes away from the start of european trade here in london and around europe. we will be watching a bunch of stocks.
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deutsche is one of them. is matt zames going to replace mr. cryan. talkedtly, he is being about the possibility of the job. we will talk about that as one of our top stories this morning. this is bloomberg. ♪
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♪ guy: as we approach the market open, we have news.
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a sentence has been read out beening -- she has sentenced to 24 years in prison for the ex-president. from we are minutes away the open. here are some stocks to watch. joining us from our equities team is paul jarvis. guy has been talking about it, we have been reading about it. the saga at deutsche bank continues. can you sorted out for us? paul: overnight we reported that matt zames, former j.p. morgan executive is one of the candidates that has been contacted regarding the possibility of taking over from john cryan as the ceo of deutsche bank. as you know, it has been tough times. investors are frustrated with the bank under john cryan. his inability to restore revenue
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growth there. deutsche bank needs stability now. it has gone through three chief executives in six years. this morning's news, people thinking maybe matt zames is the man to induce that stability into the bank. of thensidering in terms ways he does not speak german could be a factor in all of this. let's talk what is happening in the retail space in the u.k.. paul: as you would expect, numbers are week for march. it was a terrible month for retail in the u.k. dan 10% according to bdo. numbers from retailers suggest it has been as bad as that. if we look at the retail stocks, no prize at the monthly numbers. there are weekly numbers in their that show a weak start to the end of the month and the start to april for clothing retail. look for weakness.
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paul, i will pick it up here and say thank you for joining us. you can get the latest from our equity team by typing first go on your bloomberg. this is bloomberg. ♪ welcome to the xfinity store.
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start of cash trade in europe. fed chair powell speak later today. it is payroll day today. 122.37.lar trading oil is trading down. soy is trading down sharply. , futures orket negative. let's show you the futures right now. u.s. futures are down by around 1%. europe, a little less than that. down inlf a percent
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terms of the move. story will be there, but chicago is going to be a place to focus your attention. their --l speaks speaks there. let's talk about this cash open. let's show you some figures. 71.99 is where the ftse 100 is down right now. -- where the ftse 100 is right now. the ibex down .6%. the trade story, the center for the market to digest. market response so far is reasonably calm. if the trade story becomes a reality, we could be seeing a different order of magnitude. if you hotspots on the downside of materials.
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discretionary's, seeing some there as well. energy, there are some hotspots there on the upside. we are seeing some positive narratives coming through. discretionary's, hotspots on the downside. matt, what do you got? matt: we are seeing european stocks on offer. 387 trading down right now. if you take a look at the winners and losers, the red side of the ledger has diamler at the top, down 5%. this is a company that would be hard-hit by any trade war. zurich insurance down 5.3%. otherwise, you have swiss calm down.
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com down. take a look at the winners here. you have european supermarkets did today. they have been upgraded. tesco is up 1.25%. sse is up 1.4%. there, the other gainers including dufry gaining. the winners are few and far between, only about 100 of those right now and about 400 losers. daimler might be ex dividend. that might be a factor. i think it is down because of its ex-dividends. that is a factor on the downside this morning. main get back to the story, president trump has ordered the administration to consider tariffs on more chinese
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imports. conquers says it will u.s. protectionism to the end, at any cost. bloomberg's managing editor for europe, and another guest join us around the set. that didn't take long. >> no it didn't. i saw a reference in an article this morning that this is what many of the presidents aides feared, which was a macho ,it-for-tat, toto kind of thing and he is going to continue to elevate it. the problem is that if china number,the $100 billion that pretty much takes care of all u.s. imports, exports to china. matt: i have actually got a chart up on the bloomberg. you can see this if you type g tv .
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level of u.s. exports to china a more chinese imports from the u.s., however you would like. plus $3 line is the 50 billion that have already been announced. the red line is if they added another 100,000 -- 100. what could be the other options for china, as it can't put tariffs on more good than it already imports? option is to not impose tariffs at all, ultimately, and that within the next two months or so, some sort of agreement is reached. it is not really in the interest of either country. thusif the market response far rational or irrational? filled so so for the moves a small. if the becomes a reality -- if
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this becomes a reality, the market reaction would be enormous. >> it's quite rational, because anymore in ae not trade war. obviously, it is clear there is a lot of posturing. is someave seen so far announcement that than obviously people say it might take some time for the measures to be implemented, and let's remember what has been happening with this deal discussion or with nafta. right now, it is a question of raising the stakes, and obviously china wants to send a message. for every dollar of tariffs and taxed goods, it will be one dollar on our side, and it is a message of the u.s. of try me, because there is a big imbalance. what we have seen recently in the market, the kind of
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volatilities we have seen is more related to something more structural, more meaning to the underlying stability coming from a regime, and everything we are hearing from this kind of trade war or the tech issue is a side effect. that is what the market is not overreacting necessarily to this news on trade. matt: although the market reacts a lot. theou take a look at up-and-down moves, more than 1% on the s&p 500. 2018, just past the yellow line, there are a lot more of those big moves than in 2017. is this due to trade war concerns, due to markets finally reacting to the kind of statement to come out of this administration? jean: this is exactly my point. when you look at your chart, we
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have much more massive movements, more volatility on the upside and the downside. i don't think this trade war or suppose it trade war is explaining the market's reaction. it acts as a catalyst sometimes to create movement upwards or downwards, but the underlying picture, which i think needs to , probably with less aggressive positioning, is that we are entering into a new regime, which is triggering a new volatility regime with higher volatility. guy: we will talk about how you move your money around later. now,is this limited because we have midterms coming up, and i wonder where the stock market factor is around this. stock markets reflect his if its, and i'm wondering
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were to take a hit, if that would be a self-limiting factor surrounding what he does on trade. seems tostock market be last year's story for this administration. this tough story will be the elections. he has to talk tough. these are the issues that rally has base. on the other hand, he risks doing real economic harm to his base. just look at the soybean chart. it is critical to a lot of the states he won, a lot of red states. it will be interesting to see which way he goes, and based on past performance, probably ego will trump economic harm. jim, thanks very much for joining us. james hertling there. staying with us is jean medecin. you the we will bring
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stocks on the move so far this morning, including the danish group unveiling major management changes. we will explain. this is bloomberg. ♪
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♪ guy: we are 11 minutes into the market session. equities are softer. europe down by half of 1% this morning.
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there are a bunch of ex-dividends in the market you need to factor ran, but nevertheless, we are seeing negative sentiment, and it is reflected in u.s. futures. which movers do we need to be talking about? >> let's talk with deutsche bank, down. the bank is looking to find a replacement for the ceo. hasws exclusive, matt james informally by recruiters, headhunters to possibly take this on. he is one of several individuals outside europe has -- europe who has been approached. another bank, danske bank, down 2.7%. the bank deals with probes into money-laundering allegations. boarde standing executive , christian balter will be joining the company in october.
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the head of wealth management will be leaving. finally, tesco, up 2.4%. retail across the board, tesco and morrison, improvement in the food retail sector, but overall, u.k. retailers had their worst sales slump since 2008. the sales was the worst -- the second worst month on record. likely that was due to these big snowstorms we've had. tesco may be looking higher, but keep an eye on the u.k. retailer. matt: thank you very much. let's focus in on the u.s. economy. in an exclusive interview, raphael bostic spoke with bloomberg's mike mckee from the university of south florida.
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he sees inflation hitting the banks 2%: the next quarter or two. >> the trend is going in the right direction. i think we will hit 2% sometime in the next quarter or two. i'm very comfortable going above the 2% to some amount. 2.2%, 2.3%, i don't think that the crisis of overheating. don't think that's the crisis of overheating. guy: still with us. jean medecin. -- still with us, jean medecin. we have payrolls coming up. you will find the details of the jay powell speech on your bloomberg. my point to you was the markets are nervous, and anything that will take them over the edge, we need to consider it. jean: i think it's much more the issue of the ultimate level of rates, what is sustainable for the u.s. economy rather than -- considering the timing of the potential for a fourth rate hike
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in december. whethermore at stake is the fed is misreading or overemphasizing temporary cyclical factors. for example, the temporary andleration of inflation, also increasing the temple of rate hike because they overreact -- the tempo of rate hike because they overreact. down the line, the view was we will have some weaker numbers. the risk would be actually to change the plan and pace of rate hikes in the view of temporary stronger numbers. matt: i'm looking at core pce. let me extend this line, make it thicker and colorant red.
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-- and color it read. it is not look like getting close to 2% will be possible. -- it doesn't look like getting close to 2% will be possible. raphael bostic just said he expects to get there within the next quarter or two. we are currently at 1.6%. is that believable? jean: people should not be going closer to the 2% target. people should not overreact to the idea we might be at 2.1% or 2.2%. a stretch compared to the original target. definitively, we have some cyclical tailwinds, and one of them also is coming from the weaker dollar, which is helping to boost inflation. those are temporary factors, and in particular, the weakening of the currency. if anything, when we look at
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what happened in japan or the u.k., we know this kind of external inflation booster coming from foreign exchange are by nature temporary. jamie dimon's letter to investors yesterday talking about the issue of may be fed being overly aggressive and his concerns. jean will stay with us. imfext, the former executive director joins us for an exclusive interview. look at that picture. francine lacqua is there. we will be with her shortly. this is bloomberg. ♪
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♪ welcome back. we are 20 minutes into the session. europe is lower. germany seems to be taking a little bit worse than others. we are continuing to price in the latest escalation in the trade story. u.s. futures are down around 1% at this point. europe is down half of 1%. let's bring in an exclusive interview from cernobbio. policy and business leaders are gathering today for the workshop on economic issues. francine lacqua is there.
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francine: good morning. we are joined by our guest, director of the italian public finance monitor and a professor. think is a much for joining us this morning on bloomberg. yesterday or the day before you seven speech on today's capital sins. what will happen to public finances, depending on what kind of government we have? >> we don't know yet. we can't know what we are going to have. i think it's those who won the .lections or a fairly large increase in the debt. -- there will be a fairly large increase in the debt. uncertaint. is more
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that is what i'm afraid will happen. we will not see a decline in the fiscal deficit in the future. francine: what is that mean for the european rules? we could be in a spell of trouble economically. carlo: the european rules, i think they have been stretched as much as possible through the six ability has been given. -- through the flexibility that has been given. i think the winners of the elections will try to have a change in the rules. factoncerned about the that the debt is high in italy and has not started declining. do not see dangers in the immediate future. i see dangers of the medium-term. francine: the markets are quite, but we see the huge amount of money coming from the ecb.
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as soon as the ecb starts normalizing, are you concerned about the spread? what i'm concerned if the cominge sharper session from a trade war. francine: are we in a trade war now? carlo: it is the beginning. i hope we are not going to have a full trade war. exposed to a very trade war, because we export quite a lot. any problems with international trade, italy will suffer a lot. situation, depreciation will start increasing. worry or thinku that italy should -- with the u.s. in putting pressure on china? italy is part of europe.
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we can negotiate with the u.s. if we are in a stronger european position. worry, you sayu it is part of the e.u., do you worry if you were to ever leave to -- to leave the eurozone, if brussels will to be too tough on italy, depending on who is in isernment, do you think this now unlikely but still a possibility? carlo: anything could happen. situation like a severe crisis like we have had before, i don't know. it will depend on the ecb, who was in charge. it is not an immediate risk. -- it is notterm an immediate risk for the near-term.
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i'm not a political expert, but the most likely thing is there will be -- francine: do you think they will be more responsible when it comes to the economy when they are in power? carlo: there is always a difference between what you say in the elections end after the elections. i hope they realize the italian public -- [indiscernible] francine: if you look at the gradual adjustment, at the euro level, how much does a higher --o per the italian economy higher euro hurt the italian economy? rates,i think exchange first of all, i don't think an appreciation of the euro will be good for the italian economy. francine: thank you so much for joining us.
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we will go through the rest of the day with other great interviews. guy: thank you very much. looks fantastic over there in italy this morning. francine lacqua joining us. to can use the bloomberg interact with all the things we do here. i want to highlight gtv . it highlights all the charts. a lot of work goes into creating these. i guarantee they are worth paying attention to. european markets this morning are softer. we are waiting to see how the u.s. will open later. we will pay attention to that for you throughout the morning with 26 mark -- 36 minutes into the market session. up next, we bring you headlines
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and wrap up the markets to see which stocks are on the move. there are quite a few ex-dividends in the dax this morning. this is bloomberg. ♪
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♪ matt: let's get your top headlines for you. trade escalation, china vows to fight to the end, as president trump proposes an additional $100 billion of goods to tax. european equities selloff. powell, not payrolls. markets look ahead to a key speech by jay powell in chicago. will the point towards three or four rate hikes this year, and is that more important than a jobs number? plus, the future of deutsche bank. recruiters are said to be eyeing matt james to be replacing the ceo. will he be the man to fix germany's largest bank? good morning.
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i'm matt miller in berlin alongside guy johnson. guy: we have only four trading days this week in europe for the stoxx 600. it is up. today, it is softer, but nevertheless, on the weeks, trading higher. the two stocks leading this morning. we show you what is going on on the downside. it is largely that story that is dominating. , that is why we are seeing what we are seeing. the take away this morning is that the european stocks this week are higher, not lower, despite what we are seeing on the trade front. let's get a bloomberg first word news update. >> donald trump has said a deal in ae reached soon
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revamped nafta while playing down that the announcement of me take place next week. -- the announcement may take place next week. he may make the announcement at a summit next week. south korea's former president park geun-hye has been sentenced to 24 years in prison. the sentence handed down by a panel of three judges. it was more lenient than the 30 prosecutors. she can appeal to a higher court. a brazilian judge has ordered the arrest of former president lula. he has been convicted of corruption and sentenced to 11 years. he argues he shouldn't be jailed until he has asked -- until he has explored every legal appeal.
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it now seems unlikely that he will be able to return to power. malaysia's prime minister has dissolved parliament. it has triggered the election process. -- thection omission election commission says the vote will take place in 10 days. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. guy: let's take you to what is happening in germany and south africa. president, jacob zuma, appearing in a german court on corruption charges. this is very much a rearview mirror stuff for the people investing in that country, but something to. there he is. over to you. matt: they're interesting stuff.
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-- very interesting stuff. let's get back to germany. said to be among candidates contacted by recruiters and a -- recruiters to replace deutsche bank's ceo. while the recruiters didn't have a formal mandate from the bank at the time of the approach, he sounded out us pet is their search. he didn't respond for comment. apparently he wants to stay in america. a deutsche bank official declined to comment. has said he is committed to the role, as he is still acting ceo. is a reporter from frankfurt. this is an interesting report. is a not look like zames solid lead for the ceo, but the fact is there are still rumors and reports swirling about management shakeup.
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isn't this painful for the bank's business? reporter: absolutely. not only to the bank's business but for shareholders. the bank suffered in terms of its share price in the couple of days. -- in the last couple of days. investmentof the bank was said to be considering a departure this year. he wrote in a memo to staff saying, listen, this is speculation, he claimed, and focus on the business. don't get distracted. that is the key issue for deutsche bank. is keeping their staff in the game, keeping them generating revenues and not getting distracted by headlines. is to know what is happening with deutsche bank. at the same time, they have to generate revenue. why thethe key behind current ceo was being criticized now, because he has overhauled
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the banks, but he hasn't been able to lift morale and get people back to work in bringing in money. guy: do i need to speak german to be the ceo of deutsche bank? -- ist a cripple factor that a critical factor? reporter: it might seem funny from abroad, but yes, you need to speak german to be the head of deutsche bank. into a meeting with german politicians, they won't necessarily make too much of an effort to speaking wish to you. -- to speak english to you. you have to really win them over. they feel more comfortable's picking -- comfortable speaking in german. it's an asset. matt: thank you very much.
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jean, with this kind of management of people or talks of it surrounding not only crying ceo- not only the current but the head of trading, isn't there are concerned we could see deutsche bank lose more business? people'shink it is business, and in any peoples business, you need to instill an element of stability in addition to what is the business model in the future for the company. it is not so much deciding who is the ceo, but for the board to give the impression that they are in control, have a vision, and that people are aligned with this.
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shenanigans are not very strong motivating factors for the people. as i said, this is a people business. it's a critical element of the performance of the bank. guy: the banks used to talk about the fact that there was not enough volatility. is this the wrong kind of volatility we are getting or the right kind? i think volatility is good actually. i think it is good, because, in a way, it is forcing market participants to better factor .isk the danger was too much complacency in the market. bulletin woody is good for active managers. -- volatility is good for active managers. volatility is your friend. jean will carry on the
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conversation with us. he will be joining us on the radio. i wanted to just correct myself. chie as the head of deutsche bank. i didn't mean to confuse him with the director of "snatch." guy: it's an easy mistake to make. we will leave it there. jean will join us on radio. stock movers up next. the numbers look pretty good. this is bloomberg. ♪
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♪ welcome back to the european open on bloomberg markets. i am that miller in berlin. board.down across the i want to get over to anne-marie to get some of your mid-cap movers wrapped up. >> good morning. then in alstom up 2.75%. a very good strong quarter revenue growth, bp highest analysts estimate. -- revenue growth, beat the
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highest analysts estimate. m&s down 3%, along with another stock. both retailers, downgraded by city, but on top of that, we had the report saying sales heavy second-worst month on record. one of the worst they have seen since the financial crisis. that is as big snowstorms hit u.k. certainly, you came retailers, one to look at today. norwegian air shuttle, up 3.5%. for march was positive. the company saying the airlines unit revenue rose for the first time in 11 months. for everything they are selling, they are bringing in more money, about 4% more for march. that stopped liking those numbers this morning. matt: thanks very much.
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i came across this story this morning and immediately forwarded it to everybody. general motors workers in south korea forced their way into company executive offices, destroying and removing furniture after the u.s. automaker told employees there will be no bonuses due to a cash crisis. you can see the blurred images to protect the identities of those bad furniture movers. it feels a little bit like what we saw in france a little while ago. making their views heard. maybe an excuse for executives to redecorate. to impose tariffs -- of course. let's talk about soybeans.
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we saw the tariff being imposed. we saw slump earlier this week. soy trading down this morning on the latest excavation -- the latest escalation in the story. there is one winner emerging from the escalating trade tensions, asian soybean buyers, according to analysts. tokyo.o to good morning. can you give us a sense of how, from asia, how your perspective has been this week in terms of the agricultural prices. in soy.seen volatility is this something that traders welcome? you welcome what we have seen this week? -- do you welcome what we have seen this week? >> i'm not too sure. doing is different
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from what i think. doing is out of question. or looks like half crazy. -- half crazy. matt: half as good i guess. what kind of response do you expect from china? what do you think the chinese will come back with? is very, howna
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should i say, gentle. what trump is doing is totally question, chinese .hinking foreans are very important china's market. big buyer, and they are buying 97 million tons from the united states. what trump is doing is just toally -- chinese mentality keep buying from the united states.
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can i ask you, what are the fundamentals behind the market at the moment? is getting underway. what is the background fundamental story look like -- what does the background fundamental story look like? nobuyuki: chinese demand is very big, so it's no question about has somehowat china achieve, they have to the program so that china can soybeans and keep anducing soybean oil soybean meal as well.
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what trump is doing is a little bit pushy for china, i guess. matt: got it. nobuyuki chino, thank you very much. war froms on the trade trump. we will be joined by some big guests to react to the jobs data later on. bill gross is with us at 1:30 p.m. u.k. time. the director of the u.s. economic council an hour later. that is an interview you don't want to miss. this is bloomberg. ♪
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♪ welcome back to bloomberg markets. this is the european open. sheryl sandberg has reassured investors yesterday that only a few advertisers have paused on spending. shares tips slightly higher in u.s. trading, but are still down more than 10% the past month, as the data crisis drags on. facebookemily chang leadership takes full responsibility for the problem and that she is still deep we -- and that she deeply believes in zuckerberg's leadership. >> i feel deeply, personally responsible, because there are mistakes we made and i made. when you take a step back and
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think about what has happened here, for a long time, we were focused on building social experiences, and a lot of good happened because of those. when we found problems, we would shut down that problem. the specific case of the cambridge analytica, that case would shut down in 2015. but we didn't do until recently and what we are doing now is just take a broader view, looking to be more restrictive in ways data could be misused. we also didn't build our operations fast enough, and that is on me. inhad 10,000 people working security at the beginning of the year. at the end of this year, we doubled to more than 20,000. we are massively investing in smart technologies, and we are doing all of this to make sure we are getting to a place where we can proactively protect data. has constructed a business model that leveraged personal data that users share
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with facebook. you are the chief architect. assuming the business model will evolve, how will that impact the bottom line, impact profitability? >> we have never run this company for short-term gains and never run this company to maximize profits. we have run the company for the long-term health of our community and business. we announced two quarters ago in earnings that these investments are big. they will impact profitability, and that is ok with this, because it's the right thing to do. we want to make these investments. we will update at the next quarter. >> talk about, you mentioned a few advertisers have paused spending. how big is that pause? >> it's a few advertisers. what matters is not how big it is. what matters is the questions they're asking. advertisers are people, people who use facebook, sewer investors. everyone wants to know, are you protecting people's data? the advertisers and people use facebook want to know that the
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good things will continue, and those are important. >> mark has been asked if he's the right person to lead facebook. do you believe he has? he says he is. do you agree? >> i believe deeply in mark. he has a vision for what social services and sharing could be. the vision remains important. mark, along with me and all of us take full responsibility for what is happening. we're making an important shift. we are going to keep the livingsocial products, because sharing is important to people all over the world. building going to keep social products, because sharing is important to people all over the world. i'm not saying we won't find more problems. we will. we are going to continue to find problems, continue to shut down situations when we find them, and this is a forever thing, because security is an arms race. this is something we signed up for not just now but on an ongoing basis. sheryl sandberg.
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stock is down the smarting. citi analyst saying investors should buy online oh-fer off-line. -- buy online over off-line. marks'share price is down nearly 3%. makes also trading down this morning. cirque -- british supermarkets are doing quite well. up next, "surveillance pickle mark barton will be there. francine lacqua is on the shores of lake como in italy. she will be joined by mario monti and jacob frenkel, and dr. doom himself.
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this is bloomberg. ♪ monti esident calls pr
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for another $100 billion in tariffs. powell's await jay update on the economy. sheryl sandberg, the coo of the embattled social network, talks to bloomberg about regaining confidence of the 2 billion users.

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