willem: there really is not one. politically palatable is sort of anything that stimulates demand, -- rate cuts are dim in us are dim minimus. balance sheet expansion does not get to the real economy anymore. really out policy is of oomph. and we have to raise the fiscal policy for the discovery of animal spirits, which is not too likely. forget monetary policy. it has had its day. guy: so donald trump is on the right track when he talked about some sort of a new deal? willem: i do not know about donald trump. i do think we need fiscal stimulus, preferably one that is monetized because that could not impair the future stability of the country, engaging and fiscal stimulus. real rates being as low as they are, even non-monetized fiscal stimulus would be desirable. tom: professor, we were growing to do the single best chart. -- we are going to do the single best chart. normalized balance sheets, the fed, the ecb in blue. do you assume their balance sheets expanded in perpetuity? is that the only way out? willem: most l

willem buiter is with us. all the textbooks of all these people we speak of, including what you taught. if we are zero bound, how do we get off of it? willem: with helicopter money. that is the only guarantee. infrastructure investment in the u.s., finance -- tom: but that comes from washington, from capitol hill, not from the fed, right? willem: absolutely. it has to be a combined fiscal policy action. vonnie: you are saying that we need congress? not shooting ourselves in the foot by raising rates too soon, yes. tom: everyone i know, such as willem buiter, needs infrastructure. your history can lean on that, right? tobias: there are parts of infrastructure that the industry -- tom: at the end of the day with mr. bernanke trotting out his new book, it is about the model of the art criticism being the old model, the phillips curve model, in the basement, a physical model that a w phillips came up with -- that a w phillips came up with. does that model still work? do you believe in the phillips curve? the phill

that is sort of a willem buiter willem: itsn't it? is a slow decline in the growth rate of employment, yes. not a sign of strength. the u.s. economy i think is -- say, a global growth recession. to find that for our audience, please. willem: a growth recession is is below capacity and the growth rate of output is also below capacity. the fact that the momentum is slowing is important, but it still equates to about a 1% fall in the unemployment rate, even 2% year-over-year. but the question is what happens when we get to the point of labor shortage? tom: 4.9% is not 5%, is it? willem: no, but it really matters a lot, whether any unemployment comes out of jobs or through declining participation. did you see how professor buiter just lectured me there? he says do not ask me stupid questions like that. francine: if you look at wage growth, why is wage growth in the u.s. so difficult to achieve? willem: well, there may well be long-term structural factors that in the past combination of globalization and technological pressure onecular the

willem: i think they will support. leyen?. von der willem: yes. there is opposition but it is not related. francine: thank you so much. we will get back to willem buiter of citi. more on our conversation with philip hammond, chancellor of the exchequer, talking about legally challenging any prime minister who wants to suspend parliament to get a no deal through. this is bloomberg. ♪ ♪ parliament is dead set against no deal and the european union has not changed. the position of the european union remains the same, so the challenge for the new prime minister is to try to work with the same cards that the previous prime minister had, but to play them in a different way that hopefully gets to when a great deal. we have excellent candidates in the diplomatic service and i hope through the normal processes -- i was foreign secretary for two years -- a normal process that takes place one and ambassador retires or resigns, to employ -- replace within our diplomatic service, and i hope that will happen in the case of washington. francine: that was phi

willem: no. i know that there are times that a flattening, a slope reversal in the yield curve has predicted near-term future recession. of course there will be a future recession at some point. some years before that flattening curve or reversing slope curve, but there is nothing in the moment that looks like there is an internally generated u.s. recession on the horizon, no. francine: thank you so much. little bit later today on bloomberg radio and tv, . combination with gary cohn that is at 9:30 a.m. in new york , 2:30 p.m. in london. ♪ ♪ "surveillance," a historic day for the brexit. francine lacqua in london. we have willem buiter leading our coverage this morning. kevin cirilli is our chief washington correspondent, and we get a pre-weekend briefing. you are exhausted, i am exhausted. i suggest the president is exhausted. will he play golf this weekend? what is the agenda for president trump to regroup? kevin: there will not be a government shutdown. until decembern 22 and president tru

government and willem buiter stays with us. across all bloomberg platforms, we will be joined by jamie dimon global chinan's summit in beijing. this is bloomberg. ♪ kailey: this is bloomberg "surveillance." elon musk followthrough and his promise to take part in tesla's capital increase, buying $25 million in shares. he is the biggest holder with about 19%. creaseock sales in the -- increase liquidity. steep declines in the past two concerns thetoked german manufacturing -- will linger. losinga six quarter streak, aig's profit more than doubled in the first quarter, helping their overall earnings beat estimates which had not happened in a year and a half. tom: it has become an interesting soap opera, anadarko to be taken out by occidental. they will take over african on dollars.a gagilli what are you looking for today? at the ceo of chevron, but what are the next set of headlines? kelly: the thing we want to see now is how chevron will react to all ofth. anadarko has excepted occidental's bid and that gives chevron four days

willem: we are. certainly in the last few months of the year, we had a significant correction and price-earnings ratios. what we are currently concerned about in the short-term is this concern about growth and whether earnings have come down enough. we7%, 8% earnings growth, have concern we need to go a few points lower. we are going to get about 10% earnings growth. the longer term outlook for u.s. equities for the year is quite positive. the valuations are the area we feel most comfortable with, given that we feel earnings downward trend still, we are in quality stocks to whether it's volatility. nejra: one thing you pointed out is you had the ifn manufacturing against the s&p 500, and you pointed out that there's in this decoupling that's happened and use of the gap needs to be closed. i'm wondering what you think the cap would close with equities moving up to meet the ifn, rather than the ifn moving down. why is it equity markets should be repricing? willem: that's the whole question. what we do

professor willem bauder -- professor william bauder. -- willem buiter. the conversation on gold coming up. this is bloomberg. ♪ francine: this is bloomberg "surveillance." we just had breaking news out of spain, opposition parties voted to block the prime minister's budget bill. the approval was blocked by 191 votes out of 350 cast. we were talking about the possibility of a snap election. if you cast yourself back to the protests over the weekend, protesters in the heart of the spanish capital are demanding an election under accusing the prime minister of being soft in alans of talks with cat separatists. tom: what else do we have? francine: let's stick with spanish banks, santander reminded investors the juicy bonds can come with nasty surprises. they rattled the 81 bond market by saying they will skip an option to call 1.5 billion euros of notes next week. the bank cited the need to balance the interests of all investors. joining us is jonathan tice. first of all, thank you. this seems like an important decision for santander, which could reprice in

--willem buiter. worry about populism taking over, leading to an anti- euro sentiment coming from italy? willem: there is some risk of that. we should not overestimate the result of elections. populists get the a majority. the real power lies with the heads of state. that you see a majority of populists taking over. yes, the european parliamentary elections are a concern but it is not as significant as some would argue. professor i can green talked about the immediacy of europe getting its house in , given the migration immigration debate. how do countries deal with this? what does the netherlands do? willem: one needs to things. a common policy for the external border. funding of programs in the countries of origin to reduce the flow and attention paid to the integration of migrants into those countries. they have gone easy on that in europe. tom: conrad adenauer would not want the lazy man's out. the lazyey get beyond man out? willem: they have to start spending on integrating new migrants in the ec

willem marx, bloomberg, los angeles, cal 20. mark: get the latest headlines at the top of the hour on bloomberg radio, streaming on your tablet, and bloomberg.com. that does it for this edition of "bottom line" on bloomberg television. i am mark crumpton, reporting from new york. "street smart with matt miller" is next. matt: welcome to the most important part of the session. this is street smart will. stocks --"street smart." stocks rising back to record highs. we are counting down to results from twitter, go pro, and kraft foods after the bell. plus, economist nouriel roubini will join us, and billionaire investor jeff glen rock gives us his call on european sovereign bonds. "street smart" starts now.

willem: they cannot file for chapter 9. it also cannot call the imf to come in and provide them with funds. it is the worst of all possible worlds. tom: bring up the chart here. i do not -- madame lagarde is not going to come to the rescue here. this is just one of their bonds from 100, down to 40. they cannot call on madame lagarde or president obama. who do they call on? michelle: they call on their citizens. their citizens will have to endure less public services and pay more in taxes and fees. they will have to learn to live with -- tom: don't they have the limitation of a minimum wage structure? issues where their hands are behind their back tied, because of washington? washington will not bail them out. what is the outcome now that we are finally at this point? michelle: the outcome is that they are going to have to -- they are going to have to start some austerity measures, cut spending even more, and maybe something can come out of washington in terms of -- you mentioned the jones act. maybe that can be changed. cha

willem: we will see. today's payroll is going to be important if we get something probably -- means it is a lagging indicator, and the first quarter was terrible, and you cannot blame it on the , as if -- because historically mild winters affect gdp growth. policy uncertainty has been up so much. tom: we have to go to break here. it is a most interesting jobs day. michelle meyer is with us from bank of america merrill lynch, and professor buiter from citigroup. 's chairman of the president's council on economic advisers. will we see a lower unemployment rate, and 8:30? this is "bloomberg surveillance." ♪ francine: i am francine lacqua in london. tom keene is in new york. this is what i picked for our morning must-read. --s is david focus landau david full kurtz landau -- he says -- francine: willem buiter from citigroup is still with us. his main point is that basically so itb is doing too much, structural reform or encourage fiscal spending, so it is the ecb's fall. is not the ecb's fall. they have to

i'm willem marks and these are your headlines this monday morning. the critics get closer the british newspaper suggests even more conservatives mps have submitted letters of no confidence in prime minister theresa may as she begins a crucial day of brexit. >> these next seven days are going to be critical they are about the future of this country it's about people's jobs, it's about their livelihoods. >> the a pac future summit fails to deliver a declaration members are split over trade. >> we have great respect for president xi and great respect for china, but in the president's words, china's taken advantage of the united states for many, many years and those days are over. >> and the right call. shares in telecom italia rally on the news that there will be a new ceo. >>> just to bring you some market developments over the last half an hour or so, shares in renault have hit the newest low after they say carlos ghosn will be arrested there's been a potential violation of the financial exchange act we await comment on the report let's check in on th

♪ >>> welcome to "street signs" i'm willem marx in london with my colleague in japan. these are our headlines this monday morning >> european stocks soar hitting their highest level in a year as president trump and xi jinping call a time-out on fresh tariffs. >>> chip maker surging as president trump softens his stance on huawei. >> one of the things i will allow, however, a lot of people are surprised, we send and we sell to huawei a tremendous amount of product that goes into the various things that they make, and i said that that's okay that we will keep selling that product. >>> china logs the highest close since the end of april hopes rise for an end to the u.s./china trade war >>> deutsche bank shares also jump as sources tell cnbc the german lender will consider up to 20,000 job cuts as part of a major overhaul >>> and crude extends its gains after iran signs off on a saudi/russian plan to continue production cuts, but some oil ministers are unhappy the decision was made without them >> if opec wants to be alive, should decide inside opec, not to receive their i

willems has not totally lost himself in the pleasures of paris. wherever mo willems goes, he plans to take the rest of us along. >> i want to continue to make my life an adventure. i'd love for people to enjoy watching the results of the adventure that i'm on. >> osgood: still to come. >> that saved my life. >> osgood: batting practice. >> osgood: but next, meet the fighter. ,,,,,, ,,,,,, >> osgood: elizabeth warren is freshman senator from massachusetts who some democrats are talking up a presidential candidate. mark strassmann seeks her out for some questions and answers. >> if you ask many progressive voters from harlem to hollywood a woman should run for president in two years. this woman. senator elizabeth warren. the massachusetts democrat is both revered and reviled. her style is aggressive and her message is economic populism. >> where everyone who works hard, who plays by the rules should have a real chance to get ahead. are you ready? >> main street she says is under siege by wall street. >> how can it be that if you're just big enough a

willem: nowhere. evenally stable to 2021 because it depends what part of the economy those economists are looking at. if you look at manufacturing, it is very weak and it is good to remain weak for a while. you need quite a substantial trade deal to improve that sentiment. on the other hand, the consumer is quite strong. as we have seen in the labor markets figures last week. so basically, what it means is that central banks in terms of interest rates is too glum. the solution is not there. in the case of the fed, i think that there is no need for the cuts. matt: is there any need for fiscal -- there's so much talk about fiscal stimulus being necessary in europe. it has me starting to think about the times when we used to talk about infrastructure spending in the u.s. we did get a tax cut package. we did not get infrastructure spending there. do you think that that is something you see on the horizon? willem: it is what people are hopeful for. it is a political decision, which is one of those difficul

willem: we will see. data is -- ment way, there is a concern if the under indicators -- if the other indicators are more forward-looking. that thehere is risk u.s. economy is softening. i do not think i have heard the word "recession" quite yet for the u.s., but there is a risk of a slowdown that seems to be underway, not just driven by external demand and distractions. it is domestically driven through excessive corporate leverage and capex. tom: i want to go back to caroline hyde. can you reaffirm the likelihood of global recession? recessionll, a global -- it is a global growth recession. we are close to that. of 2015, ifquarter you correct the chinese data for the obvious factor that is in there, you get about 2% global growth. -- ihat is well below think that is as close to the recession as you can get. tom: caroline, in the econometrics undergrad course at factor, the fudge factor is one of the detestable ideas. pick it up, please. caroline: talking more about the dollars -- we have seen some dollar

willems went on to write for "sesame street," for which he won six emmys. the musical poses a different problem.yo >> how dtake a 40-page book about a pigeon not being into an hour-long l?and turn it >> reporter: stick to a goodst y for kids, says deborah wicks la puma, who wrote the music. c >> y't linger in a moment for the sake of lingering in the moment or soundi beautiful. you know, the kids want to know what the story is and what's happening. >> what if i don't like school? >> reporter: wilms' work has always kept the child's point of view front and center. >> childhood is inherently unpleasant. and nothing is to your scale, right? the chairs, these chairs, are saying... >> reporter: immense, yes. >> they're giant. they're saying, you don't beng here. you really shouldn't even be sitting here, right? and everything is big, because you don't ewow. you're n and the grown-ups, they take you out of situations. like, if you're doing sothing, and you're having fun, some git pair of hands grabs yo and picks you up, and puts you in anoth room. and you get in

back to willem and joumanna. make sure willem doesn't have one of those beers hiding under the desk >> i wouldn't put it past him. thank you for that i'm struggling to pronounce the name of that company hijos de rivera. >> perfect >> i got it in the end >> let's look at how european markets are look on this final trading day of the week. cac 40 trading in the green. everything else is tipped to red. even dax is trading below the flat line. ftse 100 is the laggard down 0.6% let's also take a look at yields we've seen a big bounce in fixed income this week we have ten-year germany trading at about 40 basis points 10 basis points lower than the ecb meeting. ten-year u.s. back down to 2.92. never broke through the 3% mark. ten-year italy is back through 2.60, trading at 2.58. continuing to get love u.s. futures, today is a big day on the trade side. we can see the dow is seen opening up about 100 points lower. triple digit losses expected there. s&p slightly in the green. >> that's it for today's show from us. i'm wi

ago and an admirer of willems' first film"" the man who yell."oo >> mo was veryat branding. he was already mo willems even before he was doing doing his picture books. >> reporter: well he in that in that film. >> yeah. >> reporter:e must mention his name. i don't know how many times. >> not just in that film and everythi he does, he mentions his name over and over and over again. yes, yeah. that was that was just the start. >> oh my goodness! a sheep! th reporter: over the year two collaborated on the cartoon network's short-lived "sheep in the big city." >> when we would look at the ratings, you would get a five. that was the number ple watching it. it was an unpopular show >> reporter: but their show codename kids next door was a hit. willems went on to write for sesame street, for which he won six emmys. the musical poses a different problem. >> how do you take a 40 pageut book a pigeon not beg able to drive a bus and turn it into an hour long musical. >> reporter: stick to a good story for kids, says deborah wicks la puma, who wrote the musi

i'm willem marx. "worldwide exchange" coming up next >>> we are following three major developing stories for you at this 5:00 a.m. hour. first, rescue and recovery operations are underway in wilmington, north carolina flood waters continue to rise in the wake of hurricane florence we are live on the ground with the latest. >>> incredible pictures and video out of southeast asia. typhoon slamming into hong kong. you are looking live at washington, d.c., where today the president could announce tariffs on $200 billion worth of imported

willems went on to write for sesame street, for which he won six emmys. the musical poses a different problem. >> how do you take a 40 page book abo a pigeon not being able to drive a bus and turn it into an hour long musical. >> reporter: sck to a good story for kids, says deborah wicks la puma, who wrote the music. >> so you can't linger in a moment for the sake of lingerinr in a momenounding beautiful. you know, the kids want to know what the story is ind what's happ >> reporter: willems' as always kept the child's point of view front and center. >> childhood is inherently unpleasant. nothing is to your scale. right. the chairs, these chairs are saying.th 're giant. they're saying you don't belong here. you really shouldn't even beg sittre. right. and everything is big because right.n't know you're new. and the grownups, they take you out of situations like if you're doing something and you're having fun, some giant pair of hands grabs you and picks you up and puts you in another room and you get in trouble for complaining? >> reporter: from beethoven

willem: it is not financial repression. tom: o, come on. willem: it's unpleasant for retirees. it's an equilibrium out,. there is investment weakness. this is part of the secular picture of the low to negative risk-free rate for years to come. that's not going to change unless you get much faster growth and much higher investment rates. tom: this is a huge deal for savers and retirees in america. i am off my podium here. hear the you can helicopters circling above us. we are less than half a mile from downing street. , it is herjaguar jaguar. we expect her to go see her majesty the queen and we're expecting the prime minister to tell her majesty she can form a government. robin: yes. i think it will be a relief to the country if she can do it. people would rather work with the uncertainty around theresa may than the uncertainty without her. there has been enough chaos in the united kingdom. francine: how long can she last? more legitimacy. she got the opposite. roland: she can last, but in a different way. she has to embrace the reality of the new parliament and be much more ac

willem: a mixed message. a lot of yo-yoing going on in politics, so you need to look at the data rather than trying to speculate on politics. the data is still continuing to point to a slowdown in manufacturing and investment with a relatively healthy consumer. anna: good morning. i have a chart here tapping into what you just said, about a slowdown in investment. nondefense u.s. capital goods orders. according to one indicator released, suggesting some sort of recession could be around the corner. is it this kind of indicator, this appetite for investment by to,, to tellu look you how much of the global slowdown will stick to the u.s.? willem: indeed, there is a slowdown in the u.s. as well. but because the consumer is resilient, and there's relatively little reduction of unemployment going on, in part it is because companies are, they know that if they fire somebody,, it will be difficult to rehire them given that the labor market is tight. with the consumer strong, it is hard to see the u.s. economy going

willem marx has the story. willem: finding a college party isn't hard, and they are no strangers to tailgates. on the campus of tulane university in the heart of new fun is, the ball driven a new phenomenon. the southern iv long known as , two laneswerhouse football program is no darling of athletics. this might just three wins last year, fans happily filled the nearly 30,000 seats of the new stadium that's named for its biggest benefactor. stadium was the easiest capital project to raise money for. willem: yvette jones has raised more than $17 million in pledges. before all those generations arrived, the school needed cash to kickstart instruction. -- construction. fund, theyo a 2013 borrowed and -- against their anticipated take. >> their people that say using sportslanthropy for facilities is not mission-critical. we don't believe in them. using some of our debt while the full at the became in was a decision that made a lot of sense for us. willem: other countries are borrowing to build, relying on tax-exemp

it's not just about the trump/kim summit, willem. >> that's it for today i'm willem marx. >> i'm joanna versace. orwiatinor wchg. "wldde exchange" is coming up next. >>> i'm contessa brewer. it's 5:00 a.m. in the united states and 5:00 p.m. in singapore. we're hours live with president trump going face to face with north korea's kim jong-un. it's an historic first-time meeting between the leaders of these two nations and expecting to hear from the secretary of state at any moment. we'll head there straight live on monday, june 11th, 2018 "worldwide exchange" begins right now. >>> an

willem dafoe is also here to collect his honorary lifetime achievement award. what a career. maia: you may know him from such films as the spiderman films in the early 2000's are the last temptation of christ. his career spanned many films and types of roles. he is up for an oscar this year. let us take a look at his storied career. >> i got a videotape of the kids illegally entering the utility room. >> you're out of here. >> and his most recent movie, the florida project, willem dafoe plays motel manager, bobby. the performance could win him an oscar this year. it is his third oscar nomination . willem dafoe plays an actor who takes his role as vampire a bit too seriously. >> what is the matter of you? you will not damage this production. >> willem dafoe's biggest blockbuster success came in 2002, as scientists turned him to the green goblin in the movie "spiderman." >> you are useless, you. >> set him down, tough guy. >> defoe has proved more than once he is -- dafoe has proved more than once he is a master of many roles. >> what a career he has had. he is assured to get a

any way -- >> willem marx got that assignment. we're very jealous of him. >> wilfred, are you really wilfred? he's willem. >> no, mine is a soft "w." >> very, very confused. you know what? it's supposed to be dry tomorrow. it might even be warm tomorrow. that's what i was thinking, what do i promo in the show? i'm pro mowpromoing spring some. >> i'm flying west coast to make sure i get good weather. >> official kickoff of summer this weekend. >> it's taking its time. >> we had that one day when it was 100 degrees. the markets what about it, huh? we had that one day where we thought the vix might stir a bit, then that was that. now we've had some nice action for the bulls. we have terranova here. he likes talking about the vix. i think you still feel okay about this market, don't you? definitely feels okay. we'll trot out the normal number of analysts that have missed this rally and are saying we're at the high end of the range that they didn't call in the first place. i like that. we're at the high end of the range, but they didn'

she has allowed willem bauder to attend -- willem buiter to attend as well. we are thrilled with what is going on in trade. we will talk about that later as well. in the transfer of the writing that you people do for michael center to me, the tendency is 3.4% global gdp. let me begin with a guy who wrote the last note, is that a global recession? willem: by no means. this is pretty robust global growth. the center projection is definitely not for recession, it's the risk around it, slightly more on the downside then they were a few months ago. tom: what is your geographic tendency to focus on? you are going to generate a new global outlook, is there a certain geography dr. mann is looking at? catherine: i am looking at deploying a more micro data analysis approach. tom: you are bringing paris to new york? catherine: i did bring some croissants and it is difficult to make that move. approachesata understand -- in order to get a picture of what is happening at the macro level and citi has a great wealth of macro data and i think we will be able to get a picture

willem: yes. both employment and wages, both employment and wages, especially for inflation, are actually up. we actually may be seeing a slight reduction in inequality last year, median household income increased for the first time since the 1980's probably. we are not at the end of the troubled road in terms of the sharingof globalization unequally, but there is hope. julie: it seems like there is hope even if you do get some of the disruptions in europe we are about and the uncertainty with stimulus packages in the u.s. the backdrop is strong. willem: as long as we don't get into trade wars. some really big caveats. willem: i think we will be fine. david: explain one thing to me. oth wayseard it b that wage growth hurts margins because you pay your employees more and that it helps because the consumer spends more. willem: both. obviously. remains --onstant lower wage growth. case, itis weak in any is probably more helpful to have consumption growing faster than have investment coming out of the

good morning, willem yes, that's right. so i sat down with rose mcgowan who of course is one of the leading voices to come out in 2017 with alleged allegations against harvey weinstein and of course the metoo movement then went viral in 2017. although it had been started earlier. so i asked her if she felt that the movement has had any impact. >> i'm always confused a little bit when the media calls it a movement because it made it -- i think it was a media thing that scared people, that made it seem like there's thousands of women in the street with pitch forks running after men, but that's really not the case. i have not seen any women in the streets with pitch forks recently, you know and for me it was just metoo is simply a shorthand to discuss something that was previously not able to really be publicly discussed. did this happen to you me, too. that's literally all sit the rest of it is just pressing a button on societal reset, which i think we definitely need to do and have done. and that's where i see it going. peop

let's get to willem marx in manchester, england. he has the latest on the attack and what we're learning about them. >> we have no more information about the identity of the attacker nor the motive. police say it was a man responsible for this blast around manchester arena last night. he used, they said, an improv e improvised explosive device. 22 people have lost their lives. 59 others have been injured. police don't have more information that they're willing to share, but clearly they're r. they'll be pursuing who this man is. whether he had co-conspirators, whether they were inside the uk or outside. how he was able to get into the venue so late on at the end of the concert. >> willem, it almost reminds me, the uk had a number of attacks. i was there in london the last time this happened. reminds me a bit about paris and the pat clbataclan theater, aga young people were out, you had a random attack that killed so many people. what are people on the ground saying? >> it looks like an ordinary day aside from the cordoned area aroun

i'm willem marx. these are your headlines dow futures point to triple digit losses as the brief relief rally looks to end after alphabet and amazon sink in extended trade. >>> rbs misses third quarter expectations as the bank books another 100 million pounds of impairments. >>> lafarge hholcim shares get lift on the top and bottom line the and raises its sales guidance. >>> and electrolux shares tumble to the lowest level in four years after slashing its demand outlook and blames the impact of u.s. tariffs >>> european markets have been trading for just over an hour. it's been an incredibly weak session. as you can see, a real sea of red this is after amazon and alphabet reported disappointed outlooks yesterday dragging those two stocks down. filtering through to asia where we saw losses across that region europe is proving to be quite a victim as well in addition to those factors, plenty of corporate earnings in europe the stoxx 600 is down about 1.2% today. let's look at the sectors and see how the

. >> i'm willem marx, these your headlines. >> the shanghai composite ends at highest level since june, 2018, and posts biggest one-day game in roughly 3 1/2 years after president trump delays a tariff hike on chinese goods. >>> autos and basic resources leave europe higher amid u.s. and china will soon clinch a trade deal. >>> pharma deal makes a bid to by u.s.-therapeutics >>> and warren buffett is looking for big deals. the oracle of omaha says he's looking for a elephant sized acquisition but warns prices are too high we hear from the them himself at 12 central european time ♪ >>> well, it has been an incredible overnight session in the asian markets on the back of that news that president trump will delay the march 1 deadline for hiking tariffs the shanghai composite up 5.6% very, very serious gains and one statistic i want to throw out there for you, net flows into the shanghai and shenzhen markets as of friday topped 110 billion more than three times that in the first two months of 2018, so huge inflows into the china markets around the u.s./china trade news. >> all this on th

willem: it is extremely difficult. neutralelieve that the real rate, the risk-reveal rate for employment and the inflation target is 2%, then we are way behind the curve. we should be at 3.5%. if you believe the rate is zero to negative, then we are only a little bit behind the curve. i think, yes, we are behind the curve even with a dual mandate. tom: we will continue with professor buiter from citigroup. we will do that on radio. francine, congratulations on the dimon interview. i thought he was remarkably political about e.u. banking. francine: he was. tom: jamie, here is an exclusive. tom keene and jamie dimon agree. francine lacqua, wrong again. have a great weekend, america. coming up, william gross of janus capital will make us brighter after the jobs report. phil about her again -- willem buiter on bloomberg radio. this is bloomberg. ♪ jon: friday, a blowout adp report sets the stage for higher expectations ahead of the monthly jobs number. the market shapes up for a rate hike later this month. a commodity ra

willem: i doubt it. at least not anything like the intensity of the rhetoric on trade where he was talking about 45% ericsson chinese goods. as far asration shipping 11 million people back to mexico. there will be some protectionism, but it will be measured. ofs not going to be a policy openness and diversity. francine: does it need to start with the cabinet? does he need democrats in there? people that think independently and are well-informed and it may have just read with them in the past. tom: we are getting perspective this morning. the markets are on the move. it's a subtle market. the bond market is closed. there are some serious currency moves at the bottom. that's all you need to know. , 2112 onncies crushed mexico. that's extraordinary. stay with us. this is bloomberg. ♪ we aim to please. the capital and the drama yesterday of president-elect donald trump on the balcony with his wife. the library of congress in the background. more importantly for the democrats on the hill, in the foreground

tweet me directly at willem marks. coming up, concerns over raising oil prices threaten the profit of commercial -- dennis muilenburg will be on later. olay regenerist wipes out the competition; hydrating better than $100, $200 even $400 creams. with our b3 complex, beautiful skin doesn't have to cost a fortune. olay. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. >>> week to street signs a lackluster start to the trading day in europe. you can see it's varied slightly in positive territory, up around a tenth of one percent as we look behind that number, the four major industries across europe, bit o

. >> let's get out to willem in brussels now it's down to whether washington carves out exemptions for its allies in the eu, a lot will come to the meeting over the weekend with mr. lighthizer and his counterparts in europe >> they will be meeting here tomorrow morning in brussels getting more updates from cecilia malmstrom, the european commissioner on trade. she's talking to my right inside the building here at the brussels forum she's saying one concern they have is the europeans will need longer than the u.s. might to try and kick start any retaliatory tariffs. the u.s. will take 15 days, the european union may take up to three months she thinks this move is deeply unjustified. to give you an update on what she said in terms of the concerns about steel itself, let's have a little listen to what she said about the overcapacity in the steel sector >> we share the concern of overcapacity in the steel sector this is not the right way to deal with it it's not the right way to exclude europe in that we're friends, we're allies. we work together we cannot be a threat to national security

ed to make a movie where you, willem dafoe, were willem -- vincent van gogh. >> yes. i think the way the movie is shot and the way we approached d it we wao find out what -- we tried to imagine what it would be like to be with his thoughts and be with him doing the things that he did. so we shot in the actual places helper -- he were. i was paintiap. thoach was not so much an interpretation as a desire to inhabit or imagine, have the audience be with him. it's a very subjective camera, and you're with him all the time. ? and that is absolutely clear throughout. as a viewer i really did feel that. tell me because it is remarkable how you were taught to paint by your painter director. >> he starts me out as you would think with very basic things, how to hold a brush, how tthkeep gs in order, all those sorts of things, technique, craft things. but i think more significantly he really shifted how see. he talked to me a lot about making marks and the accumulation marks and marks talking to each other to create a swirl that really expressed what you see. a o taught me that

i'm julianna tattlebalm. >> i'm willem marks. "worldwide exchange" coming up right about now. ♪ most of us don't know how much data we use... ...but we all know we're paying too much for it. enter xfinity mobile. america's best lte with the most wifi hotspots. combined for the first time. when you're near an xfinity hotspot, you're connected to wifi, saving on data. when you're not, you pay for data one gig at a time. use a little, pay a little. use a lot, just switch to unlimited. get $250 back when you buy a new samsung galaxy. call, visit or click today. >>> the major threat from president trump topping your five at 5 this morning the president warning of, quote, the official end of iran if they want a war what will iran do in response? the market mostly shrugging it off. the saber-rattling so what does matter to stocks right now? we'll dig in oil prices are on the move you have that and opec ministers, their allies wrapping up a big meeting in saudi arabia we will take you there live. >>> google hanging up on huawei. we'll

theresa may says she is willing to step down just to get a deal passed willem marks is live in london with the latest on brexit for you. >> so we've seen twice theresa may's version of brexit be defeated in a parliamentary vote she's trying to get it through third time lucky, and as part of that process, she met with lawmakers from her conservative party yesterday afternoon, and under pressure said that she would not leave the next round of negotiations between the u.k. and the e.u. so long as they decided to vote for her deal she needs 75 lawmakers to swing around and back that deal. we saw about a dozen of them in the wake of that meeting saying they would do so for them a small irish party, the democratic -- who have always helped prop up her government they came out publicly and said irregardless of her decision and her offer, they would not be back in the deal it seems like it could still be dead in the water. we could find out tonight if they will see that third vote on her deal tomorrow, and in the meanwhile, the alternatives to her deal, a whole gambit, 50 shades of grey, as i

what's the likelihood of this indicative vote taking place, willem >> reporter: downing street about that proposal, jomana. theresa may will tell parliament that she does not see a second referendum as a good idea. a number of her cabinet members lining up over the weekend talking about how divisive it would be and something she's very keen to avoid. essentially they would allow members of parliament, specifically the house of parliament, to vote with their conscience to essentially say to the government, this is what we see as the best way forward. now those options would include essentially a second refr ren dem, they would include theresa may's deal they would include potentially a norway style arrangement with the e.u. and also potentially a no deal brexit where the u.k. would crash out of the european union without any kind of agreement. what they're looking to do if these votes took place would be to find where there is a governing majority for a way forward and that would in one way save number 10 downing street a great deal of time. the challenge for theresa may is if you pur

tonight -- willem dafoe. from "the alienist," actress dakota fanning. amazing cakes from flour shop owner amirah kassem. featuring the 8g band with brann dailor. ♪ [ cheers and applause ] ladies and gentlemen, seth meyers. >> seth: good evening. i'm seth meyers. this is "late night." how is everybody doing tonight? [ cheers and applause ] fantastic to hear. in that case, let's get to the news. president trump arrived in switzerland this morning for the world economic forum, and immediately converted his money into francs. [ laughter ] president trump tried to dispel rumors today, he has a strained relationship with british prime minister theresa may. and said they are on the same wavelength. added trump, if it wasn't for the language barrier, we'd be best friends. [ laughter ] according to a new poll, 29% of people believe president trump is a good role model for children. what? was it multiple choice? [ audience ohs ] [ laughter ] that's right. according to a new poll, 29% of people believe president trump is a good role model for children. "that's a

willem: yes. i think we stay in the 2.5% range year on year, which means there is no dramatic pickup. with unemployment entering into the three plus region, we are going to see upward pressure on wage growth and even somewhat less on u.s. labor cost growth, particularly picking up as the late stage of the cycle and more has taken place. show a chart. we are doing this to impress willem buiter how we do logs on surveillance. this is off of stan fischer's important speech. it is the fed funds target rate distorted because we are showing percentage change. the point is we are finally away from altered accommodative. aren't we? where a. is the fed begin to impinge normally -- where up here does the fed begin to impinge normally? -- the shortld say run at least 50 basis points. in the slightly longer run if you were to stay on the current with underlying recovery going on the way it is, it would be at least 100. tom: that's a lot of math. that's right here. so there are the two lines. on bloomberg radi

mark: willem marx thank you so much. for more on the drop in california mark henwood joins me from sacramento. they build and operate hydropower facilities. welcome to "bottom line." mark: thank you. mark: let me begin by asking your reaction to these mandatory restrictions ordered by jerry brown. what impact does this have on your business? mark: the restrictions have little impact on the hydro business because hydro is not consuming water. what happened last year when we had a similar circumstance, the water board permitted people to file exemption for hydro and we were able to continue to bring in using water. i would expect a similar situation this year. to the extent water is available hydro producers will be able to run it through their turbines. mark: we are only four months into 2015, what are the organizations telling you about how they've been acted by the drought -- impacted by the drought? mark: we deal with a number of irrigation districts. the impacts are quite significant on that. each and every one of the

i'm julianna tatelbaum >> i'm willem marx the u.s. moves higher. president trump cancels his trip to the world economic forum in davos, he might miss an opportunity to discuss trade with china >> u.k. home builders jumped after bank of america, merrill lynch upgrades the sector from neutral to under perform >> chinese automaker tells cnbc it's not sold any shares in germany's daimler after a report the company had cut its stake by more than half >> federal reserve chairman jerome powell affirms the central bank's patient stance, but warns about the growing level of u.s. debt >> the the long run fiscal nonsustainability of the u.s. federal government isn't really something that plays into the next, you know, the sort of medium term that is relevant for our policy decisions >> european markets have been open now for just over an hour and it is shaping up to be a positive start to trade for the final day of the week. the euro stoxx 600 is up about 30 basis points right now. this follows a fairly mixed day yesterday in terms of the different regions, b

willem marx prepares for his trip to cuba as the u.s. eases travel and trade rules starting today. peter cook has a wrapup of the republican retreat being held in hershey, pennsylvania. we begin with white house correspondent phil mattingly, details on president obama's joint news conference with british prime minister david cameron. strong statements were made about iran. but with the two leaders trying to convey? >> hold your fire, mark. that was the direct quote from president obama when he came to what president should do about further sanctions against iran while the president negotiating team is trying to work out a deal to cut back on iran's nuclear program. so far, democrats and republicans on capitol hill are talking about moving forward with the bill. the president peng shuai did his call to hold off by saying he would in fact to be joe any legislation that is sent to his desk. that is a major issue going forward. again, it's a bipartisan one at that. democratic leaders, one of the top foreign-policy members of the senate felt very strong about going for before those bill

willem: i do not know about that. nobody knows the details of how he got here, but along the way there will be somebody who was not a pleasant character. tom: who represents him? a normal basal agent? who is the guy who will be 40 in july with the yankees? brendan: do not look to me. tom: jeter is gone. does he have a normal agent? willem: a handful of these agents work with cuban players and the allegation is -- some of them face prosecution. tom: some are represented by the cuban government? willem: no, it is smugglers who work with them, and then the smugglers try to demand a cut when these players sign. tom: the smugglers out of haiti or the other nations working with cuba as well. amazing. what did you observe in cuba this time around? is it changed? wil il don't know. e we willm see: tomorrow these diplomats coming up from cuba. they will continue the conversations with officials. one of the main focuses is going to be on opening the embassies, and the logistics of that, getting supplies. they want the american