coming up, we get an insight on france's economy from france's france's ambassador for investment. this is bloomberg. ♪ ♪ vonnie: from new york, i'm vonnie quinn. guy: and in london, i'm guy johnson. this is the european close. a tough day for risk assets. let's find out what is going on. abigail: you are absolutely right. it's a tough day for risk assets. take a look at these stock indexes. the kleins on the day. in the u.s., the s&p 500 and nasdaq are down 1.3% or more. we are on pace for the worst value of the year. shenzhen,k at the down 1.8% in the asian session. we go to the bloomberg and we see it is not necessarily new. at least in asia and em. this goes back to april. what we are looking at, in pink and blue, those are the asian and em markets. they started to turn down in april, ahead of the s&p 500. some of the other indexes are all-time -- putting up highs. em is down 9.5% over that time period. in the u.s. today, technology, let's look at the big losers. apple is down 17%, nearly in a bear market from the april peak. mike or soft is down sharply and , amazon -- mic

to producefocus more more in france and consume more in france. there is no sense to produce in with wrongoducts economic -- economic -- wrong ecological rules. this is the biggest issue we are going to face in the next elections and in the next years. when you look at the situation here in germany, we are looking at almost an economic stagnation. maybe not as bad as what was expected at the end of last year and the first quarter of this year. do you see that improvement without germany spending more money? >> the fundamentals of the german economy are still very sound. andmain risk to germany europe comes from the global side. we see the slowdown in global trade is really the driving force behind slower domestic consumption. that is different from the situation three years ago. in germany, fundamentals are sound. wages are growing, competitiveness is very high. if you look at midsized german companies that have a stable and high market share. so i think the key challenge will be to tackle the global issues. there are still some homemade problems.

definitely, we're going to need to be addressing the growing gap between the rule of france and france's cities. that's something we've clearly identified and we will be working very much on that, more than economic reforms. it's more of a social set of reforms, i think, we're going to have to address. manus: how does macron and the party avoid a rerun of the debacle the world has watched on a weekend by weekend basis for now on a year? anne: i'ts not a simple issue. there's very few people, but they can come and block paris. their numbers have been going down. so, i think we're doing the right strategy for the moment, but it is very hard, especially for the people in paris. much, ok, thank you so deputy of mayor for paris. let's get your first word news with debra mao. she's in hong kong. debra: the founder of why way has -- huawei has struck a defiant tone in the face of u.s. sanctions. they threaten the company's very survival. they will look for alternative supply chain options. they may also ramp up its own chipmaking. he says huawei is going to lead the way in 5g, but concedes the

outside of france, it has to be said, they did quite well in france. if you consider the brexit party , they did very well in the u.k.. why do you think they did not, though, as a whole, have a better showing? do you think it was just the bigger voter turnout for those in the center and the centerleft? esther: i think there was a bigger show out for younger voters in particular, which made an impression, and had consequences for the results, but i also think there is in general, a shift to the left, less-extremist view towards the eu. in some point, it might be due to the brexit chaos. even critical parties in france and italy are no longer calling for referendums, whether their countries should exit the european union. so i think this also matters. matt: what about the big losses that we saw for the spd? what does this mean to you, what does it mean to the german political environment that the drops from 27% to 15%, and it looks like the greens took their votes? trend we havea seen for several years and it seems like it will continue. that this is als

nina, let me ask you about france and the setback from micron. how much of a setback is this for the question of european integration? hasuropean contention always been contentious, regardless of what's happened in this election, that's largely to do with germany and france's position as to whether this should be a euro zone or a transfer union. micron -- defeat for macron, but he had made a personal battle, but compared to le pen's performance five years ago she would have been disappointed by the results yesterday. she did were since she was and five years ago they said they were going to storm the european parliament and destroy from within. what has happened is that they have actually temperature it -- tempered their message. they no longer want to leave the euro or the european union. of destroyge instead the european union re--- from within is to reform. so it's a blow for micron, but not as bad as it could've been. nejra: peter, were talking about a relief rally in european equities with the euro very -- barely budging. reaction? muted bec

david: that you have to live in france? alix: whatever. david: we welcome now soon ali bassett -- we welcome now sonali basak. is this really out of the ordinary for barclays to let 12 people go at a time? sonali: not really. morgan stanley also cut a bunch of jobs in equities. also, the places that we have seen cuts, not so surprising. what it does ask is are there going to be more cuts ahead, especially in fixed income? david: and barclays particularly focused on the investment bank because that is the thing shareholders have been after jes staley on, and jes says we are going to keep it. sonali: this has been more of jes staley's problem after the exit of one of his longtime deputies. there is reshaping at the top, so you have to wonder if there are more changes to come. alix: commerzbank had their annual meeting today, and the ceo said many things. i favorite is he said they may need to sharpen their strategy. good to know they are on that. but about mna, he obviously -- about m&a, he obviously did not rule it out. sonali: we have deut

for up to one billion in swiss francs in share buybacks. that's an important headline if you hold the shares. you'll get a boost by about a billion swiss francs may 6. saleso had earnings out, were 16.2 billion euros compared to the 16.1 billion euro estimate. the bsf had an adjusted earnings before interest and taxes the operating profit line that germanic investors watched so closely. a7 3 billion, and that is beat compared to the estimate of 1.6 7 billion in a survey compiled by bloomberg. re and a by swiss ebat by -- beat by basf. announcing an extra 500 million euros in cost savings and 1600 job cuts. the deputy ceo spoke with caroline connan all in paris. >> if you look at global industry, both of this performance is for equity side, a bit better than the average. and for the technical part, in line with the average. the situation on the first quarter in terms of supply and demand was, at the beginning of quarter, was similar to last year. risee end, we saw a slight in supply and demand. so the situation in terms of volatility remains

they win about 35%, while the euro skeptic is on course for a win in france. earlier the european parliament projected the christian democrats and socialists would remain the biggest groups. huaweinder and ceo of has blasted president trump and the u.s. over sanctions that he admits will damages company. -- will damages company. he dismissed suggestions that restrictions on huawei could be part of a trade deal with beijing, including the president's tweet laughable. he says despite the damage inflicted, the company is still growing. we might miss our expected growth target, but we are still growing. being able to grow in the toughest battle in varmint reflects how great we are. >> a british man has become the 10th to die on mount everest in a week, a record number of people trying to reach the summit in a brief window of good weather. an extraordinary traffic jam of climbers on the northeast side of the mountain has caused the tourism industry to issue 380 permits this season at $11,000 each. global news, 24 hours a day, on air and at @tictoc on twitter, power

but overall, travel to france is strong. we have been working closely with the french government to make sure the world knows france is open for business and it is a great place to go. biggest trends in the last few years has been the emergence of the chinese is a serious force in tourism. looking back over the last few quarters, give me a sense of what is happening without market. is it continuing to grow strongly, has the slowdown in the chinese economy had any impact, has the currency movement had any impact? it is a huge and growing factor? mark: china is absolutely a huge and growing factor in the travel industry. thatf the big factors china is driving is really outbound travel. the chinese travelers are becoming a significantly larger piece of the movement of people around the world. we are very happy to power with our global. inventory, our lodging inventory. many of the largest. chinese-specific players, we're taking advantage of that. to be honest, we haven't seen a significant slowdown. if you read the headlines, i

anna: we focus today on france. macron,le for emmanuel he has been up against the yellow vests for many months now. what's the likelihood he comes out victorious this time around? of thelearly a rematch presidential elections that we are seeing in france at the moment. this year, a lection's are held over just one round. that's bad for emmanuel macron. the european affairs minister is not necessarily popular. she's considered very out of touch with the french people. you have a young, charismatic 23-year-old candidate of the national rally. has -- is supported a lot by the yellow breasts -- yellow vests. it's possible that the national rally will confer with 24% of voting intentions, according to mccroneest poll and will come second -- macron will come second. socialists are struggling to just get 5% of the vote. what would the consequences be if that indeed does happen, if the far right party comes first? >> this is like a midterm election for emmanuel macron. if he comes ahead on sunday, this will give him the gre

france, some resilience. france, a surge coming through. is this taking you by surprise? myles: not really. our expectation was growth would stabilize and recover into the end of this year. 1/10 more than expected the french gdp numbers, and it is a welcome sign that european growth is stabilizing because that is important for banks. it is important for global inflation. we need to see more evidence of that. in the business surveys. ultimately, european consumption and domestic demand service data seems ok. the slowdown has been led by manufacturing and trade, with china looking better in the u.s. looking better, you expect that to improve. that remains the case that the impulse for european growth is external. to get domestic growth doing more, you need to see fiscal policy in the ecb becoming more proactive. anna: two things to talk about. on the fiscal front, the second day in a row we have a guest say they expect to see more fiscal stimulus in europe. where is that going to come from?germany has the most headroom but reluctant to spend. myles: you are seeing it in sma

france and germany having positive fiscal impulse. my gut is that you will start to see rates up a little bit and ease pressure on the fed. i think that is the more likely outcome. if you are buying into a long core rate story right now, you need to be confident that we are going to have a shock. on not quite sure we are going to have that. at that point, when you're doing is playing for volatility to spike and a flight to quality. i don't see that right now. jonathan: do you have that confidence, diana? diana: given where we are with valuations, it is a harder story to push to buy 10-year treasuries when they are close to 2.4%. that said, there is a lot of uncertainty out there and global core rates everywhere, u.s., european rates, japanese rates, they are pretty low. from an international sovereign investment point of view, u.s. treasuries remain attractive. uncertainty, it is hard to argue for a break higher in a more significant fashion. the one thing to add is we are talking about china and trade, but you have iran looking in th

[laughter] >> but he is president of france now. economyyour take on the reform he has been carrying and what insight does it have on the -- does it have good impact on business or bad impact on business? >> there was a recent study was published two days ago that ranks france among the five most attractive countries in the world to invest in. that is something that makes us proud, and i think it is probably one of the consequences and expression of the reform that has been undertaken in recent years. >> do you think that is all from emmanuel macron? >> i think it is all the accomplishment of the big and beautiful country. when you are here, and you see thousands of companies from france and all around europe and all around the world, gathering here in paris, i can tell you that you really feel the energy level. french retaild of banking speaking to bloomberg at the conference taking place in paris. latest, to give us a sense of what is going on in a sense is a next guest. let's talk a little bit about what is going on in the consol

i think we are concerned of the far right in france and italy, anti-e.u. forces. it is not a uniform picture. where the far right did well in the national election have fallen away to something like 6%. in holland it has fallen away. in germany no advance by the far right. very much an election where national concerns dominate. there is an overarching european story here. the president is very fragmented and difficult to do business with. paul: the greens turned in a good result but look at the turnout, 51%, it is the highest in 20 years. >> citizens are agitated about things, could be the climate or immigration. it is striking. we are used to elections being a .ow end some constituencies in the u.k. went under 10%. it is anxiety and also they want change. they don't want the same old center left and center they are willing to shop for new kinds of parties. u.k. let's focus on the y's will the brexit part performance have an impact on the next leader? have a major impact. makes boris johnson more attractive because he canceled out nigel farage but also means we wi

air france less. air france did a deal with it union that has a cost associated with it. that cost is down manifesting itself with the numbers in the share price. fiat chrysler up strongly. the numbers not that great today, but management has confirmed guidance and that is what the market is responding positively to. trading up nicely, up nearly 5%. that is look at the european markets. smaller companies coming in with earnings throughout may and through the next week. for the moment we have the caps all in. the dow up .5%. the jobs data being digested by the market. the s&p 500 up .7%. companies like that are leading the game for the most part in the s&p 500. some of these have been oversold. they are not huge moves. the nasdaq is up 1.1% and the vix is still muted. gmm forke a look at cloth asset glance -- up across asset glance. prunty of currencies are stronger versus a dollar. next to the mexican peso we may see movement on the usmca and then and commodities we have interesting dynamics at play in the hydrocarbons. brent is lower and wti is higher. with there nearly

we know a key point of friction and access in -- division in europe has been that tension between france and germany. more europe and the status quo. this is a key thing to watch here. >> before we get to horse trading for the various top positions including the ecb president which will come after other positions are determined, tell us why this particular election matters more. it is the election i remember galvanize in the most voters in any european election in history as far as i can tell. you have to wonder how much it matters to markets in the sense that, how much politics -- policymaking is done versus at a national level. isn't it all set in stone already? >> apparently it is not. it is disruptive but we will not see business as usual going forward. we will see a complex trade-off between national priorities and the two major blocks of pro-eu and anti-e.u. parties at the european stage. at the other hand, you touched on an important thing. appeared tothis has galvanize support for europe. politicians about is clearly vacuous. there is a strong democratic input in some of the elec

italy and france both have a big say and it. it would form the third-largest car company in the world for you get to nissan. these are the deals it would have wanted to do, and neither one of them is there. alix: not a bad thing. amazon.ching a scoop from bloomberg talking about the fact that you're going to be purging the small suppliers. under $10 million sales supplying amazon in bulk, they will not be buying from them to reduce their overhead. really hurting mom-and-pops. it doesn't affect us as we know, but it is going to affect mom-and-pops. david: the third company we are watching his global payments. brooks haviland -- brooke sutherland joins us now. brooke: a big deal after a number of big deals in the global payments system. is merging with total after that purchase of worldpay. this is really the continuation of a trend in this hunt for scale in global payments. global and total are talking about the benefits for innovation, pricing power, holding onto market share in a time when you are seeing a lot of disruption in

to protect -- created by germany, u.k., and france to protect trade. let's go to jodi snyder. yes, as you pointed out, it is this body that was created in january by the u.k., germany, and france, basically to allow there to be trade with iran without going through american banks, without having to go through the u.s., which, of course, the u.s. pulled out of that nuclear accord with iran even though its allies still remain in it, so now, the u.s. is escalating those tensions that divide what to do about a ran by saying they are threatening penalties against the financial body, and saying that, basically, and this is according to a letter obtained by bloomberg, that there basically could be sanctions against anyone associated with it, and they could be barred from the u.s. financial system, so this really is escalating those tensions. that divide has grown since the u.s. has left that accord, and, of course, the sanctions against iran significantly in recent months increased. in the u.s.,here we saw special counsel robert mueller speaking for the first

france might be the outlier because france's economy is well diversified. it is linked to china, and it is leveraged on global growth. manus: under love and underground -- under owned is a moniker for european equities. has there been a shift and do you expect a further shift as a result of maybe this data having based out? ryan: absolutely. we and clients are observing it but the finger is on the trigger and we are ready. europe is back on the menu. manus: does it give mario draghi breathing room? i don't mean panic's tim you list, but maybe having to do the quantum of targeted lending that the market is assuming? ryan: we were talking about it and laughing about it last night because it is saved by the bell. it is an amazing turn of events that will give him a good reprieve. he doesn't have to do quantitative easing or any action. he just has to observe how the situation will evolve. the rest of the european countries are doing well, very low unemployment in austria and others. manus: thank you for sharing your thoughts. ryan lemand, managing director and

no surprise we see money going into the dollar and the yen and the swiss franc. this is a cookie-cutter selection of risk aversion assets you would expect to see bid on a day when markets are getting out of equities a little bit. concerned about trade tensions. you would expect all of the sectors to selloff in negative territory and be indiscriminate. that is what we see on the imap function, red, everything moving weaker, not everything but a lot of sectors. we are going weaker, not even health care is spared today. we see in terms of the sector picture, health care is even in the red. losers,e the biggest autos and auto parts cummings and second. -- auto parts comes in second. every sector in the stoxx 600 is in negative territory this morning. in terms of individual movers, 30 stocks moving to the upside. 540 living to the downside. let's look at some of those. the biggest gainers, the minor space up. real estate fairly resilient. exceptions, those stocks on the rise. to the downside, we are looking for m&a in the media space. is in there, they may be getting

equity markets down by more than 1% in germany and in france. flow,great deal of news but there has been some heightened rhetoric from china and editorials in chinese newspapers that have caught some offguard. and we are hearing from banks that they are reassessing the implications of trade tensions, just how severe they think the story will become. picture for european equity markets. but one of the standout gainers has been india. after weeks of voting, the world's largest election is reaching a conclusion. it shows that modi is headed for another term in office. game, butck indexes they are coming off their highs as the bjp sets -- is set to secure a majority. let's go to new delhi to be updated on the numbers. these are the results of the election to be counted in one day. bring us up-to-date with the latest numbers. the official numbers from the election commission show that modi and his ruling party are seats,, leading in 294 which would put them on track to get another single party majority. the last single party majority in 2013 was the

swiss franc sciacca -- swiss francs? yields are rising. they are saying to the europeans, bring it on. we will do whatever we want fiscally. that is until you are slapped across the wrist. supply across the european markets, you going to see supply slowed to about 16 billion euros in terms of net supply. government bond yields in the united states unchanged. let's get to asia. juliette saly has all the details. juliette: we are seeing japanese stocks perform worse today. pressure in tech stocks weighing down what we saw on wall street overnight. huawei concerned hitting tech suppliers. where you are seeing reprieve is south korea. the kospi up 0.5% as samsung to pick upt is going a lot of slack. chinese stocks doing incredibly well. producers surging on the suggestion that perhaps rare material players could be the next weapon in this trade war. an upside in india, australian markets as well. let's have a look at the aussie dollar. it has fallen substantially after the rba governor philip lowe flagged the likelihood of an interest rate cut

.t is may day today there are protests in france. pictures fairly dramatic once again. is that going to put people off investing in europe? >> it shouldn't. to look at valuations. you have to look at corporate earnings which are coming out better than expected given the slowdown that we had in the first quarter. markete in equities trading on 13.3 times prospective earnings. that's in line with the long-term average for europe at one of the steepest discounts to the u.s. that we have had in many decades. politicsf you focus on , you might miss out on some very interesting opportunities in europe. vonnie: what kind of opportunities should we be looking at? forurope is well known companies which have really withstood the test of time. companies which have very strong been -- brand names and business models, balance sheets. companies which are very well-managed have gone through more political upheaval, changes in government, changes in monetary systems, have all this acquired experience. they are trading at discount to u.s. peers. some concernsare for investors like geopo

., france, and india. >> we have countries that are exceptionally rich, like singapore and brunei. then you have countries that are quite poor, like laos and cambodia. they belong to the same organization. you have countries that are incredibly big like indonesia, with 270 million people, and singapore with 5 million people. that creates a certain degree of complementarity among the asean countries. >> the cost of moving goods i customs, the speed, the single window, has not come to complete fruition yet. asean has to get there quickly or the likes of china will dominate. e-commerce will dominate trade flows. haslinda: is there a sense that asean nations are competing against each other more than cooperating? >> i think that is a real question, and the real answer is yes. but you see it in china a little bit as well. you get one province trying to compete with another. rivalry exists. in asean, it is national, so it is a little bit more. haslinda: one of the key milestones to the group has been the creation of the asean economic community, set up in 2015. its goal is to create a si

the operator in france falling more than 8%. are not bighose stocks, but they are taking some points away from the much larger astrazeneca. let's get first word news in hong kong. uber has just raised over $8 million after pricing shares near the bottom of their market range. this gives them a market valuation of around $75, just below its last private valuation. they're hoping to avoid the with saw and areas lyft focusing on shareholders that will hold the stock for a long time. the trump administration is expanding the amount of countries they scrutinize. the latest report could raise the numbers of nations being monitored to 20. the economic may be named a manipulator for artificially holding down the value of their current -- currency. the private sector space race is heating up and the world's richest man says it is time to go back. unveiled blue origin's potential lunar lander and told washington that it has been too long since aidan -- since an astronaut walked on our nearest neighbor. early results indicate south africa'

attack of his business over in france making games, up 2% after they release their numbers. for the stoxx 600, we have ubisoft the biggest loser,, befor by fortnite effect taking the wind out of the sails of this game's company. they reportedly missed their sales target and now the stock is down 12%. burglary, down 4.2% -- b are lower, sos their stock is down 4.2%. as i said, broadly speaking, the trend is onward. u.s. futures is also downward. let us get the latest update from debra mao. helped, china has holdings of u.s. treasuries to the lowest levels since 2019, a slight reduction of about $10 billion, but it was an effort to hit the two-year low -- enough for it to heat the two-year low, flashing those holdings is your by some as the nuclear option in the trade war dust flashing pros holdings. revealed hathaway has that it will that on amazon. warren buffett disclosed a wager on this earlier this month. the company also ramped up bets hat.j.p. morgan and red it cut its stakes in southwest airlines and wells fargo. telescope has agreed to a 200 million pound rescue loan,

>> if you look at the french [inaudible]ou look should look at the gdp in france, there above the overall european. we have guided through that. we anticipate the strength to continue. >> you believe that business confidence and france that is suffering a little. impact frencht recovery. >> the french retail activities are slightly impacted by the social environment. however, if you look at the --st quarter, revenues have that is basically what we see. have someng this, we of the banking costs. anticipate gdp will continue to grow. manus: speaking with the bnp paribas cfo. this is ing. other than -- on the net income, the beat had come in higher than the market had expected. billion below their market's estimate of 1.6. net interest income 3.48. a little that ahead and 675, that is a bit lighter on its feet in the market had estimated. net income is a mess at 1.1 2 billion. the market had tensile than 1.15. let's ask a man who knows about the numbers and the performance. cfo of ing. great to have you with us. welcome to daybreak. we will make a religion out of this for you. talk me throug

france is going to a difficult time with the yellow vests. sentiment of concerns and questions of where we are going. storyexit, a never-ending of brexit or no brexit which has significant consequences on market confidence. >> does the yellow vests movement pose a risk, direct or indirect, to your business? >> yes, direct. inventory,cess to delivery, destroying boutiques. , put that aside, it is an issue but it is how and why it started, a genuine all about purchasing power. we have been in a gray zone for many years. of purchasingoss power from households, that is a major concern. that is how the yellow vests movement started. >> for most of our businesses globally and in the united states, everything feels pretty good. there is no signs in front of us that we will have a recession but no one should forget that we are 10 years into an economic recovery at a some point there will be a recession. >> what worries you the most in 2019? warning signs. >> we do not see big issues in the economy. clearly, valuations are higher than they were 10 yea

and france to protect trade with the islamic republic from u.s. sanctions. a treasury department letter warns that anyone associated with it could be barred from the u.s. financial system. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. treasurer's rally rolling on. throwing the yield curve into further inversion. our global economics and policy editor is here with us. is this still about the trade headlines or has investor sentiment fundamentally shifted? >> it may be that the deepening of the trade war the escalating the trade war has enhanced investor sentiment to think maybe yields are going to be lower for longer. maybe it is time to buy. the chinese fired back with a where earth threat. they're going to weaponize that in this trade war. it was a sin -- signal to the bond market. rally now that the global -- we have to look quickly at the bloomberg now to take a close look at this yield curve. is a classic recession indicator. if it gets deep eno

the market in france has grown. french managers i think our raising more capital. those who argue k based are not moving large numbers of people, arethose who are u.k.-based not moving large numbers of people. guy: michael collins from invest europe, ceo. thank you very much. vonnie: let's get the first word news now. >> huawei says it will engage with the u.s. on concerns of a product security. president trump signed at order that will restrict the equipment supplier from american markets. the u.s. is worried that beijing could use that year for spying. the company says those restrictions could put the u.s. behind when it comes to develop five g networks. meanwhile, president trump will give the e.u. and japan six months to agree to a limit on car sales in the u.s. and in the meantime, he will agree to delay tariffs. the administration has determined that the import of cars into the u.s. are a threat to national security. officials argue that they have heard domestic automakers and their ability to invest in new technologies. new york city mayor bill de blasio has

we talked a lot about italy and in france, where we did see very strong performances from populists and indeed in the u.k. bloomberg's ann marie joins us to talk about the rise of the brexit party. it's been quite stunning, the way that nigel farage has once again managed to claim, well, take the microphone for himself, i suppose accident based on the results what we saw. very strong performance from the brexit party. >> very strong performance, and also in a short amount of time. if you remember that the british, the u.k. was not even supposed to be voting in this european union parliamentary election. of course, that is why brexit was the defining topic in this election, and anna, as you sarke the brexit party came in really on top, and it was a massive blow to the mainstream political parties here in the u.k., like labor power and conservatives not doing well at all. conservatives demoming fifth. it was one of their worst turn turnouts in recent history for them. and really, what this is about is about the dividing lines about brexit. the parties that were very clear and unambiguous

at the same time, nc establishment parties performing well in italy and france. that is not leading to some downside pressure on the euro. when it comes to brent prices, at the moment, rebounding. a strong rebound after it's saw its worst week of the year last week. we are seeing some supply concerns over iran through libya. really helping those oil prices at the moment. let's see how we are setting up for the markets in asia. sophie: asian stocks are set to continue the lackluster tone after managing to eke out a modest second day of gains on monday. some tech news could drive sentiment. ipo,ba planing a major softbank sharpening its focus on ai. we have more buybacks in japan with tokyo electron joining the bandwagon. miners will be on the watch in australia. recently fueled by the drop in mainland port holdings. the season rolls on in india. monday brought us numbers from aindigo. paul? paul: thanks very much for that. let's check on the first word news. nigel farage says his brexit party's success in the european election should spur u.k. to leave without a d

the governor of the bank of france is a great governor. guy: do you think you would make a great president? jean: that is the decision of the heads of state in europe. guy: but you think he could do that job? jean: he has great experience. guy: you must know him very well. jean: he has great experience. guy: ok. we believe that there. -- we will leave that there. in terms of where the bank goes next, you talk about cost and the need to manage costs. can you shrink the cib to g rowth? is it possible to shrink a commercial investment bank to growth? that is the question i hear time and time again. a lot of banks are shrinking at the moment, but can that ultimately generate the kind of growth you think? jean: the way we see it, to try to answer your question, we need to ask plane the way we see it. ,e have the corporate sector midsized companies, large companies. these companies need a lot of banking services, from cash management to advisory m&a services, to a broad range of skills all over the world in values currencies. but we need to be a

france, since november, has been going through a very difficult time with the yellow vests. most market sentiment of concern and questions of where we are going. and of course brexit, which is a never-ending story of brexit or no brexit, which has significant consequences on market confidence. >> does the yellow vests movement pose a risk, direct or indirect, to your business? >> yes, direct. blocking access to inventory, food delivery, destroying boutiques. but i think most fundamentally, if you leave that aside for a second, which is an issue, but it is how and why it started, a genuine movement all about purchasing power. we have been sort of a gray zone for many years. with a clear loss of purchasing power from some households, that is a major concern. that is how the yellow vests movement started. >> for most of our businesses globally and in the united states, everything feels pretty good. there is no signs in front of us that we will have a recession but no one should forget that we are 10 years into an economic recovery, and at some point there will be a recession. >

are you confidence he is doing the right things to take france where it need to be? virginie: i think emanuel pack on has been extremely -- macron has been extremely brave in making structural reforms and no other president no matter what their political obedience was has never been able to do. so yes to your question, and let's hope he can make it happen again. it's a question of mindset and positive spirit. we seem to be getting along and etting out quite ok but is superfragile. vonnie: that's the c.e.o. speaking with eric, a private equity firm with $15 billion assets coming to you from the milken conference. the c.e.o. of one of the largest consumer goods country from morning lease international joins us next. this is bloomberg. guy: live from london, i'm guy johnson. vonnie: and i'm vonnie quinn and this is bloomberg markets. themaker of oreos and cadbury chocolates and trident gum had a positive outlook from the bell. joining us, derek, a strong congas on a strong quarter, currency impact valuenings you this quarter and what can you prepare for and what do you

france is pushing its candidate. it has spain and ireland in its quarter. eu leaders have gary in brussels -- havess who should gathered in brussels to discuss who should lead the block. iran says america has not grown in power in recent years. the u.s. recently sent an aircraft carrier and bomber to the region over an unexplained threat. troops of0 american been employed. a rocky summer may be in store for american troops traveling by air. 257 million people will fly from june the first to the end of august. hundreds of airport security personnel may be reassigned. the continued grounding of the boeing 737 max is still a problem. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. you.e: thank let's check where european stocks have settled as we head into the break. the cac 40 is the worst performer for the moment in europe, down more than .4%. the ftse has edged it out. the benchmark down more than .5% at the close. the dax down at the clo

we will be seeing where germany will open as well is france. island is higher, spain is slightly higher. we are waiting for the dax. let's see what sectors are doing better today. it looks quite green across the screen, except for staples. hsbc with results topping estimates. missed onnerale trading revenue. energy,erested in brent crude down 2% on the week with concerns about a supply crunch. the market is looking for swelling u.s. inventories as well as russia pumping more than they agreed with. what are you looking at on individual names? matt: we are looking at a lot of earnings movers. split between winners and losers. theou look at who is adding most index points, hsbc is at the very top, up 2.5% and adding 0.2% to the index. , allee the drug makers gainers today. ecuador socgen, another earnings story this morning. take a look at the losers, you see what looks like a hold their. adding -- taking away points from the market. credit suisse is down. credit suisse is ex dividend. a few big ex dividend companies. in general you will not see a

., germany and france. a lot of nations that were involved in the original agreement say that the iranian nuclear accord is the best way to keep tabs on that country. the u.s. is pretty isolated when it comes to issuing concerns about iranian behavior in the middle east. >> great to have you. canada pension plan investment board ceo tells us how trade tensions are impacting his investment decisions. bit going to's a couple of days ago, talking about the rise towards eight rows and. today it breached that level and stands at the highest mark since july 2018. this is bloomberg. ♪ >> there might have been modestly good news on trade today but the volatility of ongoing tension is buffeting investors. bib thinks it's a long-term focus makes it less of a problem. i spoke to the ceo earlier. long-term investors so we are looking at long-term changes that can happen and trade tensions. not really a positive story in trade tensions. the reduction of trade tensions can take away uncertainty and give companies more

should you be doing to help, what could the government do to get small businesses looking to indonesia, france, all the places we have access to? a onejust put forward point $1 billion trade diversification strategy. i'm working with small businesses around the country to help them become more export ready. how do you understand which markets you need to grow into? how are you going to get the help, how do we give you to help ?hrough the canadian how do we help you get access to those customers? 1.5 billion customers in the marketplace. we are only exporting 12% right now, so you're absolutely right. we will be a nation of traders. taylor: as i sit here in new york, think about the u.s. perspective, so much of the conversations have been about trade. a small we spoke to business group. he was saying that a lot of the consumer sectors, companies like nike, are starting to comment on trade and tariffs. what companies are sectors are you hearing from that are most concerned right now about the environment? who is a little more worried? >> as i have traveled across canada, i met with thousands of

big gains in germany, big gains in france and italy as well. , and inin the u.k. spain gains instead of red arrows. the likes of what we saw in the u.s. yesterday. inare likely to see gains the u.s. as well as u.s. futures continue to rise. veteranthe hedge fund says he will return money to shareholders and focus instead ,n running his nfl franchise that is the national football league for those of you in the u.k. we will get the latest. this is bloomberg. ♪ matt: 30 minutes into the trading day, let's get your top headlines for you. timetable, the prime minister is expected to outline plans to step down today. brexit plans are in limbo. security threat or leverage play? president trump claims that quality -- that huawei is dangerous but could be part of the trade deal anyway. goldman sachs says by commodities with caution. the u.s. lenders says there is further pain ahead for stocks, but there is upside for metals and agriculture after the worst weekly slump this year. good morning, welcome to "bloomberg markets." annain berlin alongside edwards who is in westm

the leaders of germany and france disagree over who should get the top european union job. france's emmanuel macron once michelle barnier to head the european position -- commission. angela merkel once the european people's party leader, but he is not getting much report. t-mobile and sprint may sell the boost prepaid mobile brand in an attempt to win approval for their merger. according to reuters, a deal would value the business at up to $3 billion. the fcc chairman says he would recommend approval of the merger if the boost business was sold. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. tom: let's get to the data. it is extraordinary. there is a way to equities correlated to bonds but it is not as bad as you would think. futures negative. dow futures -160. you would think equities would be off more. we will see as we get to the new york opening. the headline statistic is the spread. to be clear, it has not flattened. that is a steeper yield

now it is harder to see france pressing on here. on yourou touched inflation outlook for the united states, one thing that caught our attention for the 50 year and five year, the european central bank has a huge amount of work to do in terms of invoking the spirit of inflation . what does need to happen from a policy response from the ecb and the back half of the year to reinvigorate as these break even? laurence: it is the right question because it is so hard to see what the ecb is supposed to be giving us. ecb we know is we have an that was dovish at the last central bank meeting, but the action they provided was if nothingo say improves we will come back to you in september. that is not really good enough. this upcoming meeting we might get more detail, but the fact that growth data has picked up a bit might mean the central bank on the side of not giving us much. i think that will disappoint the market. what the inflation market is telling us in europe is that we do not really believe the ecb either does not have the tools or is

euro skeptics pulled strongly in england, italy, and france. trump toxic trade in tokyo after a weekend of golf and sumo wrestling on but admits there will be no deal on this visit. -- the brexit party will win 29 seats in britain. the liberal democrats will win the 16 seats in the eu elections. the latest -- the labour party will win 10 p the green party will win seven pair the ruling conservatives will only win four seats in the eu elections. one seat in the eu elections. clearly as we can see, the brexit party winning 29 seats, please elections showing the success for nigel virage's brexit party. he made recent comments an hour or so ago talking about the brexit party wanting to be part of negotiations with of the eu, that the brak -- the brexit party is ready for a general election. the latest bbc projections brexit party is winning 29 seats in britain in the eu elections are let's get straight to the market action with sophie kamaruddin and hong kong. sophie: kicking it off with the action in japan, seeing divergence for the nikkei and top

proposed at the companies merged under a holdings companies structure, it will be in a country other than france or japan. each company would name an equal number of executives. let's check in on the markets in asia. juliette zynga -- juliette saly in singapore has more. that's after we saw what was speculated during friday's session, when you saw the csi 300 ratcheting to a close at more than 3.5%. today, it's off. interestingly, investors aren't pressing the panic button. if there is no deal, perhaps that leads to more stimulus, and that will put a floor under chinese stocks. that is friday's close, but you are seeing weakness elsewhere, the nikkei down 7/10 of 1%. a little bit of upside in indian markets. that's reflected in the sensex, higher in 2/10 of 1%. indian stocks have been lower for eight sessions in a row. let's look at the stocks in detail. one company in australia has flagged the u.s. trade dispute. reliance worldwide has been down 26% in sydney, closing lower by 50%. softbank under pressure after we saw the dismal debut from uber friday in the u.s., falling 7.6% below its lunch p

france, germany starting to have positive fiscal impulse. my gut more than anything is that you will start to see rates up a little bit and ease pressure on the fed. i think that is the more likely outcome. if you are buying into a long core rate story right now, you need to be confident that we are going to have a shock. i'm not quite sure we are going to have that. at that point, what you're doing is playing for volatility to spike and a flight to quality. i just don't see that right now. jonathan: do you have that confidence at all, diana? diana: given where we are with valuations, it is a harder story to push to buy 10-year treasuries when they are close to 2.4%. that said, there is a lot of uncertainty out there and global core rates everywhere, u.s., european rates, japanese rates, they are pretty low. so from an international sovereign investment point of view, u.s. treasuries remain attractive. and given the rate uncertainty, it is hard to argue for a break higher in a much more significant fashion. jonathan: henry? henry: the one th

they are in france. it is the message shift. and consumers are voting that this is what they want. francine: we have it on the mega isl as we do when there something really important. when you look at cooper and -- lyft, do you think that the investment is good or are you worried that they are overvalued? >> it is hard to comment on that scale. they are hoping to be much larger. it is a game of scale. they are building a global platform. and they are writing a massive wave of transformation. trend is looking to stop. do they have market positivity? absolutely. in the end, it's a local market play. what is your take on technology and the emerging markets? >> we have investments all around emerging markets and have been for a very longtime. i agree that this is where it takes most markets. the internet platforms can be food delivery, trading, cars, social networks. winner takes most. the key is to generate scale. francine: but how do you find the winner? robert: people spend a lot of money developing that supremacy. as long as you defend it don't drop the execution baton, demonetizat

we still like portugal, greece, france, and italy. you are still getting paid for owning credit that is moderately improving and probably will upgrade. jonathan: emphasis on the word credit. appetite for risk around the table. we discuss that next. michael collins, kathy jones, and craig bishop stay with us. chipping away at a high-yield market, digesting the most monthly supply so far in 2019. that conversation is coming up next. this is bloomberg "real yield." ♪ jonathan: i'm jonathan ferro. this is bloomberg "real yield." i want to go to the auction block, beginning in europe. the spanish treasury selling 1.5 billion euros of its 10-year debt, the lowest yield in a decade, with investors offered to buy 1.5 times the amount of securities sold. in the u.s., the treasury selling $11 billion in 10-year tips. the highest cover ratio since april of 2010. finally, the junk issuance spree continues. may is the busiest month since march of 2018. auto retailer carvana selling $50 million in 2023 notes yielding nearly 9%. kathy jones, micha