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tv   Bloomberg Markets European Close  Bloomberg  April 29, 2019 11:00am-12:00pm EDT

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30 minutes left in the european trading day. from london, i'm guy johnson. vonnie: from new york, on vonnie quinn. this is european close on "bloomberg markets." guy: i'm sure there is something happening in european markets, but you've really got to look for it. it is very hard to spot. stoxx 600 up by just 1/10 of 1%. brent is now positive on the session, but only just. the oil market taking away some of the earlier sting affecting some of the oil stocks. that has turned around a little bit. even madrid, which was down earlier on uncertainty surrounding the elections, is back to flat. take a look at the foreign exchange markets. just 1/10 ofs up, 1%. pretty exciting stuff. the dollar is down a little bit, but not by much. 65.are trading basically 1.11 today feels like a very quiet start to the week, except for
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the nice data we had out of the united states pce. in some ways, one element of that, the spending and inflation , canceling each other out. vonnie: in the u.s., just marginal gains for the s&p 500 and the dow, up 1/10 of 1%. we are still grinding higher, well above 2900, approaching 3000 at this point. some of the news today is deals, and really it is good for everybody. gardner denver higher. -- parkernyson lord.on buying it remains to see what impact a going away of waivers on iranian oil will have on the market. for now, a barrel of crude
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trading around $63. we are also at the mocon conference in beverly hills today -- the milken conference in beverly hills today. we will speak with david solomon, goldman sachs ceo, at the conference. guy: the data in the united states in some ways cancels itself out. u.s. consumer spending and pce numbers rebounded, while core inflation cooled to a one year low. kind of sums up the markets right now, doesn't it? deutsche bank fixed income strategist and global head of ethics research is joining us now. i am honestly surprised you get up on a monday morning and come to work. these markets are, except for the equity markets, so, so sleepy right now. what will happen to get these comatoseut of that
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environment we have at the moment? guest: from a macro perspective, there's lots going on in the market. we are pricing in rate cuts for the fed. if you look at the euro into last week, it was the narrowest range on record, and we just matched the previous narrowest range last week. my view is we are going to remain in this low vol environment through the summer. if you take a step back, we've got a lot of flow models. if you look at the underlying valuation models, it is really saying most of the main currencies are close to their value. the dollar, in particular. guy: markets are determined, or they? george: in that sense, yes. we are seeing more flow these currencies. we are not seeing huge potential for large moves, unfortunately. vonnie: what is your view on the euro? we are trading at 1.1163 right
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now. there?tay is there a catalyst in europe that will move the euro somewhat? george: it did have this small technical break a few days ago. i think the most interesting thing for the euro at the moment is that it is essentially free to short, three to sell it -- free to sell it. volatility is low in the market, and there was a negative carry versus the u.s. dollar. by selling the arrow -- the euro in option last form, the cost is offset by the cost you gain from carry. in terms of absence of news, you can see this is a very slow grind lower, but i do think it is temporary. our view is by the second half of the year, we will recover higher. the main thing that has to materialize is some improvement out of germany, which at the moment sticks out as a sore thumb in terms of how we it is
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versus the rest of the world. we've got a forecast of the euro aing back through 1.15, so 1.10, 1.20 range. if we want to stay in a very low vol environment, even the 1.20 may be a challenge. guy: should we be accelerating expectations that the fed is going to cut rates? 2.52 on theng about year right now. we saw a pretty soft inflation number today. how low does that number need to get before the market says, actually, even our current forecasts of when the first hike comes is too late? george: i think that is a critical question, even for the dollar. even though the market is pricing a cut, it will be very different if that ends up
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happening because then the market will be free to price a bigger easing cycle. evans gave an interesting interview to "the wall street journal." what he said his core pce needs to be 1.5 for around six months. the market is fully pricing the rate cut by the end of the year. you need to make some adjustments to the i/o we come of it essentially market is assuming inflation will be stuck at 1.5, 1.6 for the for seeable future. i don't think we can priced something sooner than that. guy: let's talk about other central banks around the world. we are getting chinese central banks tomorrow. one move we have seen of late is in the aussie and the aussie bond market. thinking more globally come where am i going to get a little bit more excitement -- more globally, where am i going to get a little more excitement in the foreign exchange market?
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as i look around the world, are there any central banks you see flipping in the way the rba has done? george: the key difference is in the u.s. now, it is all about inflation. in the rest of the world, it is all about growth. central banks are going to be a lot more responsive to growth surprises. the ecb is one we are watching for june for information around tltro tiering. if we get improvement in china and the german data, that could allow for some repricing. the aussie, we think that is very divergent in terms of expectations. the market is looking for a cut. our baseline expectation is they don't end up cutting. potentially, aussie is at the lower end of the range. we could see a squeeze there, but still within ranges. guy: that is critical. saravelosank's george
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will stay with us. plenty we haven't covered yet. vonnie: coming up, we will speak with david solomon, chairman and ceo of goldman sachs, from the milken conference happening right now in los angeles. this is bloomberg. ♪
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guy: from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is "bloomberg markets." let's get a check on the markets with abigail doolittle. abigail: the s&p 500 up about 2/10 of 1%, putting in a new high on the day. the russell outperforming other indexes. that level of 1600 could confirm this year's rally.
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in europe, the ftse 100 higher as well. oil down for a fourth day in a row, the longest losing streak for oil this year. if we look at what is happening globally, we are also going to see something to keep in mind the shanghai composite, up 33% this year, now at 24% this year, last week putting in the worst week of the year, on pace for the first down week and down month of the year. something to keep in mind for sure. what is helping the s&p 500 on the day, we have some deal news, along with other news around ingersoll-rand and gardner denver, who may come through in a deal. morgan stanley saying it would be a landmark deal. mattel up still post earnings glow from last week. buy -- hannifin up on a
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eight daniels midland up on a buy. guy: let's talk more to george sarah vale us -- george saravelos, deutsche bank fixed income and fx. we move ontocould the made event of who is going to replace mario draghi? george: once the market realizes the impact in terms of dealmaking is not going to be very large because the populists are not going to have a blocking , immediately the focus will shift to the dealmaking around all of the key posts, european commission, and the ecb. the interesting thing is while at the start of the year it looks like we had some frontrunners, all of a sudden potentially germany is back in the running in terms of submitting a name, and
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potentially that could have very sick dividend applications. however -- very significant implications. however, it probably means the ecb won't want to pre-commit in the june meeting in terms of these long commitments around rates. vonnie: curious as to your favorite pair these days if you look at emerging markets. there are obviously some idiosyncratic stories, but definitely some currencies being impacted by central market moves. george: we have turned a lot more positive on the chinese currency. we are looking for the chinese yuan to move higher against the dollar. that is on the back of finally starting to see this evidence of the chinese reflation trade working in terms of some of the easing. the chinese pmi numbers tomorrow will be important. in anticipation of this china trade deal, which will remove some of the uncertainty that has been on the horizon, focus will shift to negotiations with japan and europe. but at least with china, some of
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that uncertainty will lift away. vonnie: all right, george. thank you. saravhe bank's george elos. up next, we will speak with david solomon, the ceo and chairman of coleman sex, live from the milken -- of goldman sachs, live from the mocon conference in los angeles. this is bloomberg. ♪
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erik: welcome back to "bloomberg markets." air chaska correct the milken schatzker at erik the milken conference in los angeles with goldman sachs
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chairman and ceo david solomon. gdp growth in the first quarter, for a people -- for many people, was surprisingly strong. what i'm curious about is whether you see that reflected in client conviction and activity more and more? david: i think throughout the quarter, activity levels improved. we had a bit of a speed bump in the third quarter, risk off -- in the first quarter, risk off. but the underlying economy in the u.s. has continued to deflate well. as we move through the quarter, i think you saw a little bit more of a move back into risk assets. markets have performed well. i think as you get around the world, stimulus and china has helped see a little bit of improvement. europe, japan lagging a little bit, but the overall package, especially with a pit that central banks made -- with a pit that central banks made -- with
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madeot that central banks has been quite beneficial. erik: how do you think that pivot and the result its head in financial markets is going to influence the way central bankers thing about policy going forward the rest of the year and into 2020? david: i think the policymakers have been clear on their communication with respect to how policy looks. make although you could the case that back in october, jay powell might have screwed up a little. david: i think the chairman is doing a very good job. i think it is a difficult job. but as you look forward, it doesn't look like there's going to be a lot of policy activity as we head through the rest of the year and 2020. our lead u.s. economy predicting one increase late in 2020. i think he is very cautious on any cut. he doesn't really see that.
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but right now, the economy is chugging along relatively well and policy is going to be stable. erik: one place you see the impact of stable policy is the credit market. david: credit markets are pretty constructive. erik: well, money is pretty easy. david: money is pretty easy, but look at the big banks, their participation in the big scale credit markets. there i don't think there has been a real movement in credit standards. when you get out of the regulated institutions and into shadow banking markets, there's a lot of capital that's moved in that direction. there's less transparency around that activity, so it is harder to really see. i would say that is an area to watch. i don't think it is necessarily delicate at the moment, but i thicket is somewhere to watch. if you look at longer data capital, a lot of it can run away very quickly.
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but as those shadow credit markets grow, i think that will be something to monitor. the regulatory environment has pushed more credit and lending in that direction, so that will be something i think we should focus on. erik: what is the better alternative, that regulators play closer attention to the shadow banking market, or allow credit to go back to regulated institution like yours? david: i think over time, finding ways to have a better understanding and more transparency as those markets grow will be important for the credit market. i'm sure business leaders in our part of the business and regulators. do you want to build a blackstone inside goldman sachs? david: there's actually a significant alternative to asset managers inside goldman sachs. we've been managing a lot of
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money across a broad series of platforms for a long time, and we've done it for a number of different businesses inside the firm. one of the things i think we recognize as a macro trend is the demand for broad global alternative asset managers, which is a business we are in. it is increasing, and it is one of the things here at the conference. there are a lot of clients that advocate that kind of -- that allocate that kind of capital. we see opportunities to expand what we are doing for clients in that business. i will be a little more focused on --wing ou -- at focused on growing our client access in this area. i think returns over a long time client management has been
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very strong, and a think that has led to a desire, especially in an environment where fundamental returns seem to be coming down, to look for ways to meet the liabilities. i think that will continue, so i think the movement in that direction will continue as we look forward. i do think you are also referring to the fact that there's a lot of private capital formation that used to exist for young companies in the ipo market. that's another way the capital is flowing a little more freely. erik: what are the priorities for you within alternatives? private equity, growth equity? real estate? infrastructure? david: goldman sachs has business and private equity, real estate, credit, growth equity. these are all businesses for managing money for our clients, and we have opportunity to expand our franchise given our unique is. erik: you have about 170 billion
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now. how much bigger would you wanted to become a realistically? david: we have great investment teams that have been managing money at the firm for decades with really upstanding track records. there are areas where we can get more of our clients access to more of those investments. we think we have some interesting products and services, so i think some good opportunities for us in the coming years. erik: one of your competitors, deutsche bank, is under a lot of pressure, and could be willing to combine or perhaps sell its asset management unit. does that business, dws, hold any appeal for you? i am not aware the business is for sale at the moment, but we would like to grow our asset management business. we have generally grown our asset management business organically with very small acquisitions, but as i said, we are happy to have businesses
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that will expand our clients. i don't have a particularly strong point of view on that business. erik: what about deutsche bank more broadly? do you see them as less competitive than they used to be? david: deutsche bank is going through a transition. how they come out, what ultimately happens with commerzbank, obviously with the news the other day, it will be interesting how the leadership figures out how to leverage the core strength that institution has and how they managed to balance some of the businesses where they are not is well-positioned. erik: they want to remain a globally relevant financial services institution. what are the odds on that? david: i don't have a strong point of view about that. a global i like financial institution. go to bank has very strong strength, particularly in europe
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and international markets. it will be interesting to see how they choose to lever them. erik: a question for you about one inbev. aside funds to pay for any potential fines. do you expect prosecutors will require you to plead guilty? david: we made a statement last week that we don't think it is warranted by the facts or the law, but i am not in a position to comment on that. we haven't even started discussions with the justice department on any of that. it just doesn't seem right. erik: as a practical concern, does it matter whether a firm does or doesn't plead guilty. is it simply window dressing? we seem citigroup, j.p. morgan, barclays all plead guilty as parent institutions in the asset
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may be elation case, and so far, manipulationsset case, and so far, business as usual. david: as i said, i can't comment, but we are very focused on getting this resolved in the best way we can. we will do that for our shareholders and clients, and try to get it behind us as soon as we can. erik: i think it is fair to say that the topic at goldman is the health of american capitalism. do you concur with the assessment there is either something wrong with american capitalism, or that it is not working as well as it should? david: i think over a long period of time, american capitalism has created terminus --sperity, but millions created tremendous prosperity, come overns of people the course of the last decade, the quality of the standard of .ife here in the united states
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it is not perfect, but it is what we have, and generally it works. the distribution of wealth isn't perfect. i think we as business leaders and government leaders have an obligation to find ways to continue to broaden the opportunity for people and get better opportunity. it is not perfect. i think it is the best system. but we have to continue to work to expand the opportunities and continue to better, and i think we can do that. erik: some people say the way to fix those inequities is to do things like wipeout student debt or make public universities and colleges free, and of course, there's a large contingent that wants to raise taxes on the wealthy. what do you think of those ideas? david: i think there are a variety of things you could
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think about to try to move us forward on these issues. i'm not so sure that all of those, specifically the way they are articulated, are going to be the best approach, but i do think the tax system, and i said this in washington, can be progressive. i think there are a lot of different ways to look at the tax system. people get focused on income, but you've got generational wealth and other issues you can think about. erik: do you think a wealth tax is a good idea? david: i don't think a wealth tax, per se, is a good idea come we can look at -- a good idea, but we can look at generational wealth. those that have the most can afford to do more overtime, and that is something that government and private citizens will continue to debate. erik: you are in your eighth month now as ceo of goldman sachs. what has been the most unexpectedly challenging thing about running this firm? david: that's an interesting
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question. i hadn't really thought about it as unexpectedly challenging. it is exciting. you've got incredible people, incredibly client -- incredible clients. we are doing quite well. i like the way the firm is positioned in the businesses we are in. we see a lot of opportunity to expand our businesses and grow in what we do. like any other ceo, whether it is goldman sachs or any of the other hundred companies represent it here, there's stress. there are fire drills every day. you get up every day, put on your uniform, and do the best you can. some days are better than others, but by and large, it has been a real privilege to lead this organization. erik: thank you for joining us here at the mocon institute global conference -- at the milken institute global conference. david solomon guy: 30 seconds to go until the
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end of the european trading session. featuring large in the european space. europe great out. at a headline level, not much exciting happening. of me give you an idea exactly how doll it has been in some respects below the surface. ftse 100 only up .2%. takes backcks, oil this afternoon. the dax trading flat. far and awayrket the biggest underperformer, has actually pulled it back and the banks being a big part of the story beauty -- a big part of the story. seems to have taken a much more lax attitude. let's show you some sectors stories an individual stocks to
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give you an idea of what is going on. the bank is done well. filial stocks -- the oil stocks, less so. there is the banking sector. a bunch of things happening. the spanish story turned around. the fact that italy was not downgraded on friday also a factor. all that coming together to produce a near 1% gain for the banking sector. very volatile and still working our way through the earnings season. let's so you -- let's show you the bottom end of the market. oil and gas stocks a big part of many people -- particularly income -- a big part of their portfolio. russell price point of view, they've been coming lower. lowerice of oil peaking and has rolled over. the president part of that story as he is trying to talk down the price of crude.
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of bayerening, the ceo lost the vote that was taking place at the shareholder meeting but it looks like the board is backing him. how long connect go on? a lot of talk about activism. this is a rounded up, this is monsanto, this is the pressure to try to fix that and fix that soon. airbus, there is another interesting story. we will talk about going in just a minute addressing the issue of the 737 max. airbus up 1.15%. a sister airline talking about the possibility, the ceo of the business, talking about the possibility that maybe there's a conversation with one of the biggest max customers with airbus. i want to show you one of the big oil makers.
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total out of france down 1.71%. vonnie: thank you. thelet us get to boeing stock has been higher in today's session. right now it is up about .25%. the boeing ceo just wrapping up a news conference. here is taylor riggs. taylor: i want to take you through the highlights. we started talking about how they've been in constant contact with 737 max customers which is different than what we've heard from southwest and emirates. there was a question asking if he was going to step down, giving he has lost all trust of the customers and the traveling public. all he did was a safety is our first concern. he did not address these questions about stepping down. there was also another question about that software update and what that means next.
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they do continue to say they know exactly how it works. it was not an anti-stall system. it will be standard off some of the display dashboards going forward. but it wasearlier, not critical to commercial flights. they will provide that sensor that was missing in some of the standard planes or the dashboard that people can see. you're getting a mix on the corporate side of questions from the board of directors and the ceo. you're also getting questions about the software update. losingu said, c-shares -- like you said, shares losing where they had been on the highs of the day as we await what unfolds next. guy: one of the critical things -- one of the critical things that seems to be missing is understanding why this happened and boeing maintains the aircraft is safe. today's reporting around southwest brings in the other
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element into the story, which is the pilots need to understand what is happening here. they need to understand what is in the manual, they need to understand how to respond appropriately. is boeing beginning to address those issues? the pilots are demanding much more time in simulators before they are confident they can fly the aircraft safely and it is this people are beginning to talk about in terms of delaying the max's returned to service. taylor: there were a lot of questions from the shareholders about whether there would be simulator test flights or computer-based. will continuehey to be computer-based on the front end. if a pilot wants more training after that they will go to simulator-based. it would be starting out from the computer-based system. that is something shareholders have brought up. vonnie: we know dennis muilenburg does have support of the board. one director did resign.
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line.a is on the it has adopted new directives for the max. to what extent is boeing offloading its responsibility to the faa? taylor: there were questions as between the faa and telling -- and boeing, who is independent? shareholders said it is not like there is anyone with an objective point of view to oversee the software updates or the processes of how these approvals are getting through. the ceo set along the way they do have independent auditors and they will continue to have that and that is something they are looking at, reiterating safety is our first concern. that was a good point brought up where shareholders said how is the faa involved when you had a government contract? no one seems to build a provide the checks and balances. taylor, we will leave it for now but we will be
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revisiting this throughout the day. on the markets, that is taylor riggs. guy: let's head back to spain. socialist leader pedro sanchez is on his way to returning as prime minister but he will need, potentially, the help of catalan separatists. we spoke to the party, saying they would not be part of any government with sanchez. a senior analyst for europe joining us on set. we spoke to their economic spokesman, actually know, we will not be forming a government with mr. sanchez. where does that leave him? how does he form a government? >> the socialists were the clear winners. ,owever, forming a government cobbling together a coalition will be an uphill battle. the only chance they have is to look left.
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there are two parties they can hope to poach, but that does not give them close to a majority. or catalanue separatists are the only options and those negotiations will not be easy. guy: the only question is how stable will this government be? if i want to put money into spain, do i have an idea what the lay of the land looks like politically? >> presumably not very stable. i'm afraid this has become the norm in spain. it is starting to look more like italy. unstabletting used to minority governments, frequent elections, and unstable minority government to one that might need five or six. it will not be long-lasting. that being said, despite the significant level of political uncertainty, so far there is no
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indication this has had much of an a negative impact on the economic outlook of spain. vonnie: i am curious as to whether the same kinds of things we are seeing across europe are replicating themselves in spain. you said it is becoming more like italy in the sense of a right-wing tilt. what about the populist element? spain seems to be very europhile. >> this is an excellent example of an electoral system designed for two parties and how badly this can go along when parties multiply and the electoral system becomes fragmented. this is a trend we are seeing throughout markets and has to do with the inability of traditional parties to do with the changes brought about by population aging and globalization. more spain specific
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issues, particularly the polarization and escalation brought about by catalonia's push for independence, but this is part of a broader trend. the economic in spain are more stable than even germany. what will a ruling coalition want to accomplish for spain and what might the opposition object to? >> spain remains a bright spot by european standards. there is little reason to believe this will change. somewhat independently of what government might form. there's no guarantee this will be the case. there is a lot of uncertainty over government formation. itand when it does form, will be very unstable and rely on a range of other parties. ill be difficult in that context for sanchez to push through meaningful changes. what we might suspect is a further slowdown in the fiscal adjustment, not a major slowdown. not a huge problem for the economy and the year term but
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over time can make it more volatile. guy: is there read in the main european election and what is your scenario for those elections? frederico: these concerns about a populist way over taking brussels, there's definitely some truth to that but those concerns are probably overstated. eu consensus in parliament will remain. pro-european parties running things in brussels. it is safe to say that consensus building, which is already less than straightforward at the european level would become even more complex. what read you have on who will fulfill the key roles in the next commission and the ecb? plenty of big jobs up for grabs. frederico: it is always difficult to get his does the prediction game -- it is always difficult to get into the prediction game.
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a lot depends on the results. it is a complex puzzle that includes different nations, different parties. currently, the senses france's less interested in the ecb although at one point they seem to have their eye on the presidency. that could mean a german at the ecb. it would be germany's term. somebody with views generally aligned to germany's more hawkish stance. guy: the question is which germany? frederico: we will wait and see. eurasia group senior analyst for europe joining us to give us a sense of what the lay of the land looks postelection in spain. look at the european markets and get a sense of how we settle down. a little bit of a dip lower during the auction process but not by much. all of the main indices
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finishing in positive territory. if you want to carry on with the analysis, you can tune in. you can do so on your dab digital radio in the london area. the cable show will be taking place at the top of the hour. jonathan ferro will be anchoring from new york, i will be anchoring from london and you can also find us on all of your bloomberg devices. this is bloomberg. ♪
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guy: live from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on bloomberg markets. let's get back to los angeles. erik schatzker is there with the key voice from the world of finance. erik: thanks so much. an heinz.with je
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she is with $1 trillion asset firm the world needs to know better. jean will help us out with that. more money than any woman in the country and possibly the planet. jean: i do. i've the privilege to do that for my clients. wellington is an active manager and since there is such a debate between active versus passive. what is the key today for active management? jean: we are strong believers in active management and we believe passive has a role as well but we believe through every asset class you can generate alpha to our clients and that will help the money grow over the long term. the question is how will you will extend alpha for your client and for wellington that
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is generating are differentiated insights to our research and the tools that help us put together portfolios in a way that helps generate alpha over the long-term. why is it seem out is a much harder to generate now than it used to be? jeans: i think the market structure has changed dramatically. of captive amount funds that drive much of the incremental trading. that has changed the market structure. erik: and eliminated opportunities? jean: it has eliminated short-term opportunities. what it has not done his changed what companies are worth. as an investor, the value of ,ompanies over a long time those valuations and what the company's values are, that is what determines our ability to generate returns are long-term
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and that is not changed. erik: do active managers need to become more activist, using their proxy power to catalyze change and help the market recognize that intrinsic value? erik: at wellington we have we are a strong partner with the corporations we invested. we have strong relationships. -- over my 25ting year career we have done it with corporate management and with boards. there is a partnership about strategy and corporate governance and we are investing in that both on the equity and credit side as well is on the est side to partner with our corporations even more. we do not think about it is activist, we think about it is -- as our duty to our clients. erik: what about the boards you
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do not agree with? do you feel the need to become more aggressive in the way you hold them accountable? jean: i would say there are a number of things. first is corporate governance. there are number of issues with corporate governance in terms of and howe pay and boards they operate as a board. we have opinions at wellington what goodgoing -- of corporate governance looks like and we are interacting with boards regularly on those topics. erik: do you think ceos get paid too much? jean: ceos, and corporate ceos arein the u.s., paid more than they are in the other part of the world. it is mainly through stock options. in the end they are aligned with growing the value of their firm. erik: you talked about the impact of quantitative investment on opportunities for
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active managers like you. you are working data science, ai, machine learning, into what you do. is that in search of a hybrid? a big investment at wellington is our investment science group. they are trying to do a number of things, trying to elevate the scientist in all of us. you have fundamental investors, artists, we call them, and you have investors who use science all the time. we are trying to make it better for all of us. so i consider myself the art of fundamental investing, but i'm excited about using more science tools in terms of portfolio construction. how do i construct my portfolios better? how do i get better as an investor through coaching? what are my biases, what are my blind spots?
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we are spending a lot of time on coaching. that is where we will be differentiated. from the research side, how do we use big data and data science to help us generate ideas. we have really exciting ideas at wellington using natural processes to do things that used to be done in our brain to help us and leverage data to help generate our insights. erik: as you looking to the future, what is the biggest challenge ahead for active management? jean: the biggest challenge is talent. can we attract talent around the globe? many of the, opportunities are going to be in china and emerging markets. to be a strong manager of our client's assets over the next 10 to 20 years we will have to develop and retain talent in all parts of the world. we will need to make them collaborate, help them learn to
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collaborate with people in boston, london, asia. we have the model to do that. we have the culture to do that, but that will be key. erik: i want to thank you so very much. we know a lot more about wellington than we used to. that is jean hynes, one of three managing partners at wellington. vonnie: a fascinating interview. thank you for bringing us that. perhaps you can guess a tour of wellington at some point. that was eric's just for at the milken -- that was erik schatzker at the milken global conference in los angeles. guy: we have received more bank earnings, this time in the form of bbc a and spain. reporting a net income for the first quarter that met analyst expectations. q1 net income coming through at 1.16. it is well within the range, the range for analysts 1.13 1.21.
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net interest income coming through at almost exactly the 13.3% the market had anticipated and the bad loan ratio coming in were the market anticipated at 3.9%. we'll continue with the bank earnings this week in europe, we will continue to bring them to you and give you analysis on what they mean. this is bloomberg. ♪
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game" hasvengers: end set new records. disney is our stock of the hour. kailey: $1.2 billion in the opening weekend. it shattered any record. added --say it only especially the studio segment, which makes up 12% of the revenue. total earnings-per-share could raise by 10 to $.12 because of the avengers.
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it could have big upside for avengers. guy: how does this impact disney outside of the movie theater and what comes next because it is a busy year for disney? kailey: it is, because they're launching disney plus in november and marvel content will be the cornerstone of that service. avengers: end game will be available exclusively on disney this movielysts say will be a driver to encourage people to subscribe to that service when it launches. vonnie: have you seen it? kailey: not yet but it is on my list. vonnie: balance of power is next. from new york and london, this is bloomberg. ♪
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david: from bloomberg world headquarters in new york, i'm david westin. welcome to "balance of power," where the world of politics
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meets the world of business. on the brink today, geena davis on oil's reversal and what president trump has to do with it. from the dread, the spanish election and what comes next, and from washington china trade negotiations beginning tomorrow in beijing. tina, welcome. now it ising up and coming down. president trump seems to think he has something to do a bit. tina: is interesting today oil is not moving at all. another strong run. .p four months in a row these are not things president trump wants to see. we had data from the imf indicating the saudi's need prices at about $85 to balance their budget. if you think about the international benchmark and 72, that is a ways to go to get the saudi's were they need to be. we heard trump saying he reached out to the saudi

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