that's one of the questions, how much can barclays grow? staley is staking his reputational as a leader on the consumer barclays is a and corporate, an investment bank. what exactly does that mean? existential point of view, any shareholder who is in the stock right now cannot afford to think about whether he survives the senior managers regime investigation, because if he doesn't survive, the alternative presumably is a berkeley share price somewhere below two pounds 10 which is where it is now. if you believe he survives, what is the growth plan? how much can barclays grow, what --d of return on equity can can it earn its cost of capital? quarter, thest groups statutory return was 9%. >> that's where you want to be. >> we have a good chance of within the next 6-18 months. >> so optimistically, six months from now. they are nolly, longer destroying shareholder value until 2019. the man still has his work cut out for him. anna: he has stood out perhaps from some business leaders and being fairly lacks about the impact that brexit is going t

does barclays need staley more that staley needs barclays? i have seen some commentary on that. what is the verdict? >> one of the reasons he has been cushion from this scandal, largely, shareholders think he is doing a good job, certainly in the arena of public opinion which his predecessor's did not. it all comes down to whether this been on the investment bank pays off. if he is right and they recover and they have enough skill to compete with wall street, it will be great. if he is wrong, we will see a slow erosion of value in the business over time and that will call intojudgment -- question his judgment on the business. mark: stephen morris, thank you. vonnie: so fascinating. let's get insight on investing in europe. the daybreak america's team spoke with sam zell. they spoke about the challenges europe faces after emmanuel macron's victory in the french president race. singi don't know if i see -- big problems, i see a lack of solution. todayou talk about europe , you start by asking the question, where does the demand come from? europe is doing better today than a year a

economy isy a strong good for barclays. corporatenty helps investment which is the fuel for economic growth. we enjoy a very constructive dialogue with the british government. i said, i've been very encouraged by the openness and candor and exchange of ideas and information. but whoever is in the british government, it's important that barclays stand behind the u.k.. yvonne: that was the barclays ceo speaking to our colleague, erik schatzker. talking about outrage among the big lenders over a new tax, that continues to build this morning. paul allen is joining us with the latest on this. just talking about how the stocks of all the lenders have rebounded. investors are shrugging it off at the ceos are not letting it go. >> this could be a buying opportunity. the banks provide pretty steady and regular and impressive dividends. they were already blindsided by the levy that was announced on tuesday. bankr executives from the will meet with treasury officials today. in terms of how the levy will be set up, it looks like it cou

what is the long-term plan for barclays? erik: now that the restructuring is almost complete, it is time to talk about growth. where does the growth take you? yes, you are absolutely right -- we can listen to jeff daly talk about return on equity because that's the first thing on shareholders' minds. stopdoes this bank destroying shareholder value? jeff: in the first quarter, take out that africa accounting change. the group statutory return was 9%. erik: that is where you want to be. 9%f: we want to get that -- that 9% to 11%. within the next 6-18 months. erik: perhaps as early as the end of this year, perhaps as late as late 2018, early 2019. that is a long time for shareholders to wait. they do need to see more details from jeff daley and his colleagues on what the plan for growth is. where are they going to invest? and u.k. consumer business -- in the u.k. consumer business? they are still formulating that plan. he declined to offer more specifics. vonnie: what is to be done about cost-cutting? that seems to be all banks

mark: barclays is at the center of cybersecurity. erik: it is a cybersecurity issue although it is not a failure of our clays -- our cyber-- barclays' protections. a failure of judgment is what is -- what occurred and what led to the whistleblower case. that is something shareholders need to evaluate, but i want to help people understand the way shareholders need to evaluate this because british regulators that have the senior manager's regime that they use to measure the accountability of a ceo do the same thing and here is jeff staley talking about the senior managers regime. there is accountability and how he believes they are looking at him. >> i believe executives should be held accountable. i think the senior manager's regime is a very important piece of regulation in the united kingdom. since i have got here, one of my very transparent with regulators and in many ways, we are partners in trying to avoid the next financial crisis. there is a very constructive dialogue between barclays and the bank of england and the fca that is

that is the antithesis of what is going on at barclays. jes staley's under investigation because he tried to root out a whistleblower who had raised , acerns about an individual single individual, who jeff staley was trying to hire to be head of a group at barclays. i don't know how the situations could be more different. staley is being treated differently, but for good reason. tom: thank you so much. erik schatzker in london. right now, an important conversation. .ell me about european banking it has got to consolidate. there are too many banks. everybody has the ghost in their ago from x numbers of year -- number of years ago. how do you avoid the disaster of belgian banking? >> m&a has been very slow in banking the last couple years. we have been seeing early signs of this changing from the well-capitalized decisions, banks have had good return on equity. there have been signs of a return to m&a. when you look at the numbers, it has been very quiet for a few years, right? to used to be $400 billion $500 billion of m&a and now there is

remember barclays, a lot of barclays operations are international. so they saw this as being a real issue. now, 12 months later, it seems to be less of an issue. they seem to be co mforta ble less of an issue. they seem to be comfortable that there is a significant proportion of the business that can continue to run out of the uk. it's a good news story as well. there has been consultancies out there talking about what it might and might not mean for financial services companies. most of the financial services companies are saying, look, we're going to keep the majority of our business in britain. there is stuff we will need to move overseas and we will do, but want to have as little disruption as possible. a positive story. it's a different feeling that we're getting from the other banks because they were saying we don't know of the there is a lot of uncentrity and unanswered questions, we don't know what deal we'll get with europe so we'll do it anyway. ba rclays taking we'll get with europe so we'll do it anyway. barclays taking the other tac. let

scarlet: that was barclays ceo jes staley speaking with erik schatzker. julia: now it is a time to look is some of the biggest business stories in the news. will delaymical ceo his retirement to oversee a historic merger with dupont, remaining on board until july 2018. 'se merger combines the u.s. two largest chemical makers and has faced regulatory delays since 2015. it is expected to close in august. offered,omething being overnight ground delivery almost anywhere in the country starting next monday. it is called the airbnb of warehousing. merchants tos companies with warehouse space. it allows brick-and-mortar retailers to maintain customer contact without a huge investment in facilities. and that is your business flash update. scarlet: still had, options insight. market volatility or lack fightf -- one trader's for the russell 2000 etf. this is bloomberg. ♪ julia: this is bloomberg markets. scarlet: time for options insight. julie: joining me is chief options strategist at interactive brokers. we have been talking about the depressed volatility. we

mark: barclays chief executive in our axis of interview. sticking with european banks and first quarter earnings, both beating estimates. hit a record of 13 billion euros sales. but bring in bloomberg's editor --inancial let's bring in bloomberg's european financial editor. this was a first quarter we -- cleanplay numbers numbers. indications today were positive because the revenue was strong. the cost-cutting has continued. there is also quite a lot of trading by the numbers. made --ainability has around -- shares up 20% this year i think. >> true. having said, the economic growth is still weak and you still have them waiting for the 20 million euros. italy? -- why italy? >> you are seeing strong numbers up 24%. stronger lending more broadly. it has tightened the costs space and after shrinking they can look again at growing through that restructuring. frenchhat is it about banks and trading revenue? there's a clean flush, isn't there? >> banks have all performed even some of the larger european trading fairs. extent, theyme have always ma

does the hardness of brexit determine how great the impact a bank likerk barclays? >> you know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of the tenets of the -- you know, if there are a couple of things that came out of the financial crisis as a positive, one is the coordination of the g-20. one of the things the g-20 stuck thes, as we reregulate financial industry, let's not inhibit by putting up barriers to free flow of capital. so long as those barriers are not put up, there will be workarounds around brexit so london will remain a very important source of capital relative to europe. erik: relative to some of your peers on the subject, you are an optimist. at least you are constructive. what is the upside to be ing optimistic? what gives you that degree of confidence that they do not have? >> i am just expressing what i think. i do not think it is optimism or pessimism. it is what i think. you know, we have a bank subsidiary in ireland that is part of the european union. we have 1200 employees in c

jonathan: let's talk about the of ice coming from barclays -- the advice coming from barclays. the inflation premium short up last week. rates could come up as well in that regard. how is that picture going to evolve versus the data? >> some of it has to do with longer-term policy. the market got excited in the -- in the fall but with trade policy, fiscal policy, so far there has not been a lot of movement. the markets have basically backed off that excitement that we saw in the fall. there is plenty of potential for the reflation trade to come back on the table but so far, it is in pause mode. jonathan: we were speaking to jonathan byner of goldman sachs asset management. then we had the rollover, and now we see the complacency, signs that inflation is concerned. do you share that? >> we think in general the market is cheap already. markets are cheap already for a baseline forecast. for cpi in general. moving a bit above 2%. so already, they are cheap and that provides some positive option alley on the potential for a strong move up from policy induced inflation. david: what a

barclays ceo exquisite. bloomberg sits down with jes staley after shareholders give him a vote of confidence. is the whistleblowing scandal now in their year premier -- in the rearview mirror? banks are resuming hefty bonuses after years of fixed income traders seeing their incentive pay cut. is this a different story for the rest of global wall street? good morning and welcome to "bloomberg markets: european open." i am matt miller in our berlin bureau alongside manus cranny at bloombergs european headquarters in london. manus: very good day to you. let us talk about the market, what is moving. just a slight dip in the stoxx 600. london is holding on to the most meager of gains. it is a fairly flat open. this is the mov. if i look over on the left-hand side, pharmaceuticals -- a little bit of news flow company through here. there is a likelihood of them getting approval for a generic of a drug. that news came out earlier. there is no material issues on sustainability's. there is a low likelihood of approval

does the hardness of brexit determine the impact of a bank like barclays? >> you know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of the tenets of the -- you know, if there are a couple of things that came out of the financial crisis as a positive, one ishe coordination of the g-20. one of the things the g-20 stuck to his eyes we reregulate the financial industry, let's not regulate and put up barriers, and so long as they're not put up, they will work around brexit so london remains in important source of capital relative to your up. erik: relative to some of your peers on the subject, you are an optimist. at least you are constructive. what is the upside to be optimistic? what gives you that degree of confidence that they do not have? >> i am just expressing what i think. i do not think it is optimism or pessimism. it is what i think. you know, we have a bank subsidiary in ireland that is part of the european union. we have 1200 employees in continental europe from milan to paris. there will

barclays bank while also serving on the global board. it is a very substantial time commitment and a huge risk to shareholders if a director cannot respond to things like we are seeing right now with the investigation into the whistleblowing of event. or brexit. there is a number of things coming up that may demand substantial attention from the board. we think shareholders deserve better than having someone who may not be able to devote the time. i would also say that -- barclays has said he will scale back his workflow by september of this year. are you satisfied with that answer? andrew: we are somewhat santos -- satisfied. -- we still need to see what happens in reality. we actually changed our advice following the board statement that he would reduce his commitments. but just over 10% of shareholders continue to oppose his election, because the details are not yet there. it is a difficult situation for shareholders to be put in when they have to decide yes or no in there we have half the picture. for now, we are satisfied that the b

we now speak to the head of digital safety at barclays. how serious is this 7 fraud costs the uk over £11 billion and we know that these scams are on the increase which is why people should take steps to better protect themselves. how do these occur7 protect themselves. how do these occur? cyber fraud, scams, it can be anything from phishing the e—mail details. scams tend to revolve around details, so don't give out pin numbers or details to anyone. these tips have been around for a very long time. what about the technology side? as you mentioned earlier on, we are giving our customers more control to switch of purchases if picard balls into the wrong hands. 0nce purchases if picard balls into the wrong hands. once again, people will have more control over the way they spend their money. do you think this would reduce the number of crimes, the theft of the cars, or would it reduce the amount people lost? the theft of the cars, or would it reduce the amount people lost7m depends on the features, whether they switch it off altogether or c

. -- barclays card. i am biased that barclays capital is the leading u.s. competitor -- leading competitor to the u.s. investment banks, and he will have to work through that. i think he's done a terrific job of leadership. i think he's the perfect person for barclays right now. environmentgulatory is different and britain. one of the ways it's different is that british regulators can enforce a fitness cause for ceos, if they deem the ceo unfit to run a bank, they can remove him. you believe there's a risk they would do that, the regulators would do that? i think he is the right person for the job. it's hard to protect yourself into what other discussions are going on. he is the right person for the job. erik: brexit clearly is a headache for traditional banks, because as we now know, several of them have to move thousands of people to offices in the eu to continue doing what they do in the european union. how are you looking at it? can you look at it differently because you are no longer part of that traditional banking world? bob: i think brexit will crea

does the hardness of brexit determine the impact of a bank like barclays? >> you know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of if tenants -- you know, there are a couple of things that came out of the financial crisis as a positive, one is the coronation of the g-20. one of the things the g-20 stuck to that we regulate the financial institution. --'s not put of the areas let's not put up barriers to free flow capital. london will remain a very important source of capital for continental europe. erik: relative to some of your peers on the subject, you are an optimist. at least you are constructed. what is the upside to be optimistic. what gives you that degree of do notnce that the have? >> i am just expressing what i think. a bankw, we have subsidiary in ireland that is part of the european union. 1002 hundred employees sitting in continental europe from elan to paris -- from milan to paris to maturity. there will be uncertainty. financialn in the industry as long as i have, it is amazing

as if by magic, just chatting, just clearing 180 7 million shares, that is 22% of barclays africa. we knew this would come -- we knew this was coming. earlier today, barclays to sell itse plan stake to below 50%, it had been approved by the country's's finance minister. barclays is aiming to cut its shareholding to about 28% from 50.1% according to that report on whether they are citing unidentified people. just crossing the bloomberg terminal, 187 million shares. africa, one of its long-held average. vonnie: yes indeed. the shares in london up .4%. let's check in now on the first word news. >> thanks. reports that president trump is extended to withdraw the u.s. from the paris climate accord. the white house official tells the associated press there may be caveats in the language that the present uses and that leaves the possibility that the -- they is not final voluntarily agreed to reduce greenhouse gas emissions to reduce climate change. the worst attack since last summer. -- foreignood embassies afghanistan's's presidential palace. 80 people killed and 350 more people wounded.

barclays annual gener mting this week with barclays ceo jes investors since a whistle ew her -- blower put his tenure at risk. eric sat down with him in london following the meeting. jes: since i got here, one of my goals was to be transparent with regulators. in many ways, we are partners in trying to avoid the xt financial crisis. this was a very constructive dialogue between bar lace -- barclays and the bank of england, the pra, it was very important to us. i respecthregulatory framework here, and let's see how this all plays out. >> if the unthinkable happens and you are deemed unfit to run barclays, does the bank have a plan -- a succession plan? jes: i have full support of the board. you saw the shareholder vote today. let's see what happens. >> have you seen the similarly hartline approach brussels has taken recently? jes: the level of dialogue with the prime minister, her government, with the chancellor, with the regulators, has been really quite something. i think there is a lot of listening on both sides. we are a british bank. we are here to support the united kingdom. but a

there updates about how the agm goes at barclays bank. there is other stories including snap judgment. snap's first earnings will be posted today. it will be watched closely by investors to see how the latest tech u psta rt investors to see how the latest tech upstart is doing on the markets. indeed, the first since they floated. a top story, the world's biggest car manufacturer toyota have just posted results. they bit of a mixed bag. it all came out after the trading day ended in tokyo. we will see how toyota shares go tomorrow. for many of us, our next guest has been responsible for the soundtrack of the ‘70s and ‘80s, signing acts like blondie, spandau ballet and sinead 0 connor. chris wright created independent label chrysalis almost 50 years ago, sold it to a big industry player and is now back at the helm as chrysalis is re—born as an independent. he co—founded chrysalis in 1968 with terry ellis in a student basement flat. in 1991, chrysalis was sold to emi. he then set up a radio and tv business, which included heart and g

does the hardness of brexit determine the impact of a bank like barclays? >> you know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of the tenants of the -- you know, if there are a couple of things that came out of the financial crisis as a positive, one is the coordination of the g-20. one of the things the g-20 stuck reregulate the financial industry, let's not regulate and put up barriers, and so long as they're not put up, they will work around brexit so london remains in important source of capital relative to your up. erik: relative to some of your peers on the subject, you are an optimist. at least you are constructive. what is the upside to be optimistic? what gives you that degree of confidence that they do not have? >> i am just expressing what i think. i do not think it is optimism or pessimism. it is what i think. you know, we have a bank subsidiary in ireland that is part of the european union. we have 1200 employees in continental europe from milan to paris. there will be uncertain

just ahead, drama at barclays and kevin o leerily getting ready to battle over the regional banks. doubling down against the sector, eve p though it has been on the move higher. we'll do that next. >> before the break, our partners on sectors that win after jobs number beats expectations by more than 25,000. it's happened 29 times since 2010. with technology scoring the best. followed by consumer staples and health care. the nasdaq and s&p also pick up ground when sold a month after a big jobs beat. the halftime report is back in two minutes. s my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. their leadership is instinctive. they're experts in things you haven't heard of - researchers of technologies that one day, you will. some call them the best of the best. some call t

marvin barth is the barclays head of ethics strategy. draw a line between what is happening in washington and what is happening in the global asset market? marvin: eli lake at the nail on the head. ?hat is the crime unless you see something that will actually threaten the government, what is the issue? what we learn from this is that trump is predictably unpredictable -- we already knew that. and this is a program that markets have been having all year. dealing with these political issues that is a totally new environment for them. guy: we priced in tax changes and all kinds of things that would come out of the administration and we have had to go back aggressively on all of that. now we don't what to think. eli: but that is the point. we thought we knew -- tax policy , stimulus. but now, all of this other stuff. herepolicy newspapers today are out of tune with how graphic the news flow has been. does this overwhelm everything? does it become a distraction? it just doesn't get done? eli: i don't think so. -- so.in: i don't think i think

michael, when you look at barclays stock this year to date, it is down 8%. by contrast, the euro stocks index is up 17%. are investors concerned about the performance in markets? michael: i think so. i think the first quarter did raise some questions. you had a couple one off items in their, but certainly they did not pick up share in the way analysts had hoped for in the trading business. staleyink you will hear talking about the future of the business and how they are close to closing the non-core unit and they can kind of get past some of the legacy issues this bank has faced and really have the core business of the investment bank, the cars business and the consumer business, but there will continue to be questions about how profitable that franchise is. manus: michael, thanks. let's see if jes staley has it in the bank on the votes. thank you, michael miller. you can find. minutes away from the trading day. nottiful day in london, beautiful in terms of equities shaping up. anng for an american a -- american ipo. the stocks to watch. this is bloomberg. â

services at barclays never offered, their advisory clients, barclays without admitting wrongdoing having to pay $597 million, 2000 accounts were overcharged $40 million, a black mark for the bank. >> some good news in the world of money, free lift rides, very interesting idea from blue cross blue shield. they are worried about people missing their doctors appointments, they will be offering free transportation to customers that don't have transportation and offering later this year, and older folks who don't have smart phones, the doctors office can arrange the lift transportation for the patient to make sure they get to their doctor's appointment on time. >> i love that idea. speaking of transportation self driving cars in new york city, you can get your hands on one of those. >> there will be catches on this one and the cost, the governor of new york approved it so they contest it, they are testing applications, you got to show insurance among other things but unlike other states what new york wants to do is make you pay for the police presence for the testing which is $55.86 per hour.

barclays has had a presence in africa for more than 100 years. still ahead, we will have our deals report. having capital is doubling down boree bet.ky gym this is bloomberg. ♪ vonnie: this is "bloomberg markets." time now for the bloomberg markets deals report. joins us now from princeton. you are looking at bain capital's bet on gymboree. alex: a story that my colleagues wrote this morning for bloomberg.com. an exclusive story that bain's ts pain's -- bet on gymboree in 2010. the economy had just collapsed, so assets were pretty depressed at the time. theoretically a good time to buy. the economy collapses part of what drove bain to make this bet. gymboree seemed like a recession proof brand. kids need clothes -- fast-forward seven years, it's clear that bain capital made a mistake here on the eve of gymboree's bankruptcy filing. these brick-and-mortar stores have a lot of trouble competing. online players like amazon and bigger brick-and-mortar stores -- there areount other publicly traded companies in this game, too. children's place, carte

it's been a long week for barclays‘ ceo jes staley and it ends with him fooled into replying to an email he thought was sent by the bank's chairman but was actually from a prankster. we'll tell you what he wrote later, but first we want to know have you ever sent an email to the wrong person? just use #bbcbizlive. hello and welcome to business live. we start in europe's economic powerhouse, because in the last half hour germany has released gdp figures for the first three months of the year, and they show an economy that's accelerating. it grew 0.6% on the previous quarter. that translates to an annual rate of 1.7%. it's being fuelled by global demand for the country's exports, like cars and machinery. but it's not all cause for celebration. let me show you why. last year germany clocked up its biggest ever trade surplus, that's how much more it exports than it imports. at $275 billion, germany has one of the biggest trade surpluses in the world. it's a source of tension with its neighbours and allies. look at how much more germany sells to these top economies than it buys from them. the

the boss of barclays will be facing pressure today over his pay and also his handling of a controversy surrounding recruitment in the bank. i'll have the details shortly. in sport, the french open's a fortnight away and andy murray says he still needs to get better — but he's through to the third round in madrid. our build—up to this year's eurovision song contest starts here — the bbc‘s steve rosenberg is in kiev with all the tunes and all the facts you need to enjoy the world's biggest singing competition. and carol has the weather. good morning. thank you. iam in kew gardens next to the japanese gateway. i will tell you more about it through the morning but if you adjust stepping out it is a chilly start although most of us will have a day of plenty of sunshine, except in the north of scotland where we have some patchy rain. good morning. first our main story. president trump has fired the head of the fbi james comey in a move that has shocked us politics. he'd been leading an investigation into alleged links between the trump administration and russia. the white house says

barclays boss needs 18 months to complete the turnaround. to bloomberg.aks and d.c. is distracted. publicans insist they will plow ahead with tax reform despite the white house drama. this is bloomberg daybreak." david westin. let's go to guy johnson in the city. guy: the bank of england is saying that they may need tighter policy for the yield curve. get on it, get on it. it doesn't offer any policy guidance coming through. what it does indicate the tightening that may be needed. havemember that they do that number at the moment. hobbes is not voting. that is not going to happen. the message is clear. the bias is there at the moment. interest rates do remain unchanged. the vote on that. the gilt purchase is 8-0. the bank of england keeps key interest rate unchanged. the vote was 7-1. the vote on interest rate, 7-1. thathan: the idea is growth hasn't turned lower in the way that they anticipated and inflation continues to grind higher. it is starting to become more open to the argument that she has put forth? guy: i think you can deduce that from the line talking about tighter poli

the barclays

was a very constructive dialogue between barclays, the bank of england, the pra, it was very important to us. let's see how this all plays out. the unthinkable happens and you are deemed unfit to run barclays, does the bank have a plan -- a succession plan? >> i have full support of the board. this is the best one. we will see what happens. have you seen the similarly hartline approach that was taken recently? it has been quite something. we are a british bank. we are here to support the united kingdom. the largest underwriter of european sovereign debt. fnce is very important to us, germany is verimrtant to us. we are continuing to engage with europe. i think it is in order us and for europe. the european union will require us to set up structures across europe that make it more robust and more within the fold of your. >> does the hardness of frexit determine how great the impact s? >> there could be decisions taken that might not be in the best interest of the free flow capital. if there is a couple of things that came out of the financial crisis as a positive, one is the coordinatio

we will head to vienna with a top energy analyst from barclays. from new york, this is bloomberg. ♪ julia: this is bloomberg markets. am julia chatterley. scarlet: and i am scarlet fu. west texas crude around 100 $51 a barrel. the am cartel is expected to exd production cuts for another nine months to prop up global oil prices. will compliance be harder to maintain if that is extended? here is what the iran oil minister told bloomberg earlier today. >> it is important for all opec argument to, this comply, to fully comply. it is very important. compliance very good , but we need to comply with these decisions for any period of time that we need to. scarlet: joining us from vienna is michael cohen from energy commodities research at barclays. the key word there is compliance. not opec that opec and members compliance with the production cut is almost 100%. will it be different this time around if they extend those production cuts? yeah, i mean, it was easy for them to comply during the seasonal downturn in the winter, harderis a much process duri

barclays chief executive gets fooled by email. we explain, next. this is bloomberg. ♪ mark: in london, i mark barton with vonnie quinn in new york are. this is "bloomberg markets." vonnie: bloomberg quick take, where we provide background on items of interest. theident trump: you came by tens of millions to become part of a historic movement the likes of which the world has never seen before. >> u.s. president donald trump's victory is part of a new wave of populism sweeping for democracies of the world. what differentiates populists from mainstream politicians is the claim that they alone represent the will of the people as a whole. it allows them to dismiss any opposition as an attack of the popular will. -- an attack on popular will. modern populists take this approach as they tapped into the backlash against immigration and a global economy that many voters feel has left them behind. populism does not lean left or right, or even center. from the late radical socialist hugo chavez to the far right-wing nationalist marine le pen, the uniting fa

. -- clay awaits regulatory barclay awaits approval. this automaker needs to reprogram a computer module, fiat. that is your latest bloomberg business flash. coming up, we hit italy for the meeting since the g-20 in germany. the latest on steve malaysian and what he is briefing the group on. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn. in italyre gathering today, and this is the first meeting since the -- g-20 and germany. let's head to italy where matt miller has the latest. what's where the hopes of going into this particular g7 meeting? >> it is very interesting because the message was the trade is off of the agenda officially, but this morning, when steve mnuchin arrived, the treasury secretary said he was excited about the u.s.'s trade policies and mentioned a trade agreement with china. after that, all the talk was about to trade today. they are now struggling to cobble together their communique, their message to the world as to what they have discussed and what they will discuss tomorrow. the prob

barclays recently reported first quarter profits that more than doubled year on year. yousef: in an effort to boost -- saudi arabia's fannie mae equivalent has started approaching banks to buy their portfolios. we will have about $1.3 billion of its own capital and will work with the government's investment fund to invest another $1.3 billion. saudi arabia has one of the world lowest mortgage penetration rates. shery: kuwait energy is planning an ipo that would make it the first company from the nation to list on the london stock exchange through the firm hopes million.about $150 the filing says shares should start trading sometime next month. in a note to clients, they said the ipo would be a tough sell in the current market. considering the risks in companies where -- countries where kuwait energy operates. qatar-based phone carrier says it has no plans to expand through telecom -- our deputy ceo told us the company is considering purchases in tech services and a deal for technology may close in the second quarter. you recall the past decade where it has served 150 m

regretsey at barclays hitting reply. i am tom keene in london in four francine -- with guy johnson in for francine lacqua. guy: he gets inaugurated on sunday and macron will go straight to berlin. it's about integrating europe and pushing the european agenda. i wonder if the germans are really on board with this. tom: i am surprised they do the inauguration a week after. guy: well they have got to have a party. or: they are soirees something like that. here is taylor riggs. taylor: the trump administration is starting a process that could ease -- on wall street banks. treasury secretary steve mnuchin ordered five agencies to review what is allowed under the rule which bars banks from betting on markets with their own capital. critics say it has made banks to conservative and dried-up liquidity. president trump calls james comey a grand stander and showboat who he planned to fire all along in contrast to previous presidents -- statements. the president spoke to nbc news. president trump: i was going to fire comey. >> you

keith parker of barclays will be staying with us. you need to pay attention to two parts of the market. us.of ups david abney joins you are watching bloomberg tv. ♪ ♪ jonathan: the u.k. election just got a whole lot more interesting. the conservative lead has slipped to just five points. when the election was called, it was 20. it is weighing on the pound. i want to discuss this with keith parker of barclays. had you think about the brexit negotiations if prime minister may does not get the majority she wanted? we may even drift toward -- a hung parliament. what does that mean for brexit negotiations?> keith: i think it throws a wrench into the strategy they were going for. and aorceful negotiations higher odds of a hard brexit. you are seeing that being taken out in the pound. david: what does that do to trade, to markets if we put to the test what theresa may said at one point that no deal was better than a bad deal -- we may be looking at and no deal if you come out with a hung parliament dragging things out west and mark what

there's a slightly stronger correlation to the bloomberg barclays index following bonds. when bonds to well, people are putting money into the index. if we look into the content of the etf, we can find out why. this is where we have the biggest difference from the s&p 500. the utilities group is an 8.5% rating. health care almost a 20% rating. are begs the question, investors using this as a bond proxy play for the rate story as opposed to the mix in general? looking at what's been going on here -- flows, flows, flows. that's the story here that is very interesting. right now, a lot of it has been driven by what's happening in terms of investors still wanting that low rate play of utilities and real estate stocks and consumer staples. right now, it is certainly not volatility driving what's happening here. scarlet: even with the federal reserve normalizing interest rates, people look for those interest-rate sensitive stocks. oliver: that's exactly why we started looking at it. this is still very much the play, especially when so many sectors are trading at high valuations

about ross barclay, comparing him to a gorilla. kelvin mackenzie is a giant of british tabloids. a brash and brutal editor editor who was a close confidant of his patron, rupert murdoch. but this time he went too far. a column about everton footballer ross barkley, whose grandfather is nigerian, compared him to a gorilla. mackenzie claimed not to know about the heritage but his column, published on the anniversary of the hillsborough disaster that he so notoriously misrepresented, prompted everton to ban the sun from its stadium. newspaper columnists are meant to provoke strong feelings and over nearly five decades in fleet street, kelvin mackenzie certainly did that. but this time was different for two reasons. first because his column threatened to further alienate the sun's readers in the north—west and second because there's a huge scandal is erupting at rupert murdoch's fox news over in new york. what rupert murdoch and fox want to do is show that they are fighting prejudice rather than feeding it. you are about to enter the

the top panel, the barclays, but aggregate return, that is the ticker. as it strengthens, we see the correlation. there we go. the second panel, this is correlation for utilities. the degree to which it is always positive and so strong to where they mimic the deal includes is interesting. there is correlation it is based on the percent value change of the day. we are looking at what happens in bonds and stocks. second panel, the broader scope, looking at the volatility bonds. these come back and focus if you have any degree of surprises from the fed. what we have seen with the rate and what investors want to pay for the high valuation. picture, and i love the correlations, they tell the story. bigger picture, they don't care about any of this. the fed will hike, the fed will not hike, whatever. >> with the stock market conversation being focused on the fed has changed. when you read notes and talk with traders and investors, that is not the top of the mind. top of the mind is earnings, the factor-based investing, they get off your stop like low volatilit

a report by barclays finds the worst financial setbacks, foreclosures and bankruptcies, are falling off credit reports with more than six million people having those expunged from their record over the next few years. as credit scores rise, banks are likely to make credit more widely available. >>> a quick check of the markets. wall street returns from the holiday weekend looking to build on last week's gains. investors may be focused on the economy this week with several reports on tap including personal income, home prices, consumer confidence, manufacturing, auto sales, and the key jobs report out on friday. the dow slipping two points last friday to 21,080. the nasdaq up nearly five to 6,210. back to you. >> landon dowdy with cnbc. thanks. >>> 5:26. 57 degrees. looking at a cloudy start this morning and a mostly cloudy day. we're also keeping an eye out for showers. none in the area yet. that's a live view from center city from the comcast center. let's check on traffic and see how things are looking on the roads. francesca ruscio's in the first alert traffic center. >>> thank you.

while the number of americans deem their riskiest borrowers hit a record low, a report by clark barclay's finds bankruptcies are falling off credit reports with more than 6 million having those expunged from their record over the next few years. as credit scores rise, banks are likely to make credit more widely available. frances and gigi, back to you. >>> portland's mayor is calling on organizers of two alt right free speech rallies to cancel the event after two men were stabbed to death. the accused killer, jeremy joseph christian is due in court today. he allegedly stabbed the man when they tried to stop him from harassing two teens who appeared to be muslim. the mayor says the group's message is not welcome >>> they are coming to peddle a message of hatred and bigotry. hate speech is not protected. >> organizers say they have no intention of canceling. >>> there are royal revelations from a new interview with gq. prince william opened up about his mental health and discussed the death of his mother. he said how he would love her to have met catherine and see the children grow up. it m

barclay card ranked first followed by capitol one. capitol one leads the way with no earnings limits or rewards that many neither expire or for fit if you miss a payment and redeeming for travel is still your best bet ovary deeming for merchandise. >> 4:54. police are called to a philadelphia home where they find a young girl unresponsive. we'll have a live report from the scene coming up at 5:00 a.m. >> two teens go on a destructive joyride with a piece of heavy machinery. more on that is up next. >> ♪ >> new on "action news" an 18-year-old and 12-year-old stole a piece of heavy machinery and went on a destructive joyride in happy sunday night. police say 18-year-old kevin adams an 12-year-old boy drove the construction vehicle through a high school football field leaving behind those deep ruts. the pair also plowed into two goal posts and ran over a metal soccer goal. investigators say the construction company had left the keys in the vehicle which was being used nearby. >> 4:57 is the time and up next a live report on our breakin

barclays is holding its annual general meeting today amid a backdrop of trouble and controversy around its chief executivejes staley. last month it was revealed that he had attempted to find out the identity of a whistle—blower in the company. he apologised and referred himself to the regulator. today will be the first time that mr staley has publicly faced shareholders since then — and there's increasing pressure on shareholders not to re—elect him as the boss. japanese car giant toyota has seen profits fall for the first time in half a decade. the firm said it sold more cars in the year to march 2017 than in the previous 12 months but that higher costs and currency fluctuations hit results. the profit of £12.4 billion was down 21% from the previous year. shares in telecoms firm talktalk are down sharply after the firm cut shares in telecoms firm talk talk are down sharply after the firm cut dividends and warned about profits. at one point, shares were down 17%. it's warned that earnings may fall again this year because of the cost of attracting new customers with offers and di

now barclays says small businesses aren't keeping up with this trend and are really missing out to the tune of around £1.5 billion. so why are they lagging behind? let's talk to paulette rowe from barclaycard payment solutions. surely one of the reasons is the amount of time it takes for traders to get their money. it is really more about our research showing, both small businesses and shoppers, it is more about not understanding the benefits of adopting these new payment types, particularly next—generation payments, it has been ten years since ba rclayca rd payments, it has been ten years since barclaycard introduced co nta ctless since barclaycard introduced contactless into since barclaycard introduced co nta ctless into the since barclaycard introduced contactless into the uk. last year contactless into the uk. last year contact list grew over 100% yet 24% of small businesses still do not accept those payments. we hope this research will help small business owners understand that if they want to retain business and young shoppers who is spending power is only going to grow then

david: michael cohen of barclays, thank you for being here, michael. and sean and alan will be with us. disney is reporting earnings after the bell today. benjamin has an outperform rating on the stock. he will be joining us next and this is bloomberg. ♪ >> this is the hoo hewlett-packard enterprise groanroom. investments founder joins us rom 8:00 a.m. eastern. emma: toshiba is warning its u.s. investors don't derail our chip unit. they won around of a legal action. it is certain that it has the unit. o sell the a surprising earnings report from the german utility eon. it missed estimates of the first report that's split from last year. eon was hurt in the and u.k. germany. a former bond trader has said he was trained to lie to customers to boost the funds commissions. he testified that he learned to lie about when they bought or sold bonds. two former colleagues are accused of lying to customers of mortgaged backed securities. david: the walt disney company reports earnings after the bell and it's warned that the beginning of this year may be soft b

in terms of how the analysts and experts, this and it from barclays saying the fed will initiate its balance sheet runoff in september followed by a 325 basis point rate increase after a june hike. our clients should remember, this key function, it is based on the fed points. what are you putting your money on? given what we are seeing in the actual data? >> interest rates are going up. if given a strong signal they are going to go up. i'm not concerned about this -- i don't think they believe monetary policy is that effective so why leave it so loose and it is creating problems with the bubbles we are seeing in many of the aphids markets -- asset markets. they're saying to donald, if you want to get this economy going, do not rely on this -- on us. you must give us a change on fiscal policy. tracey: they're getting into a difficult situation, by any measure of employment it seems the u.s. is there but inflation is stubbornly low. >> it is a completely new regime. if you look at japan, incredibly low unemployment and wages are going down, not up. it is not followthrough just because

kennedy: the artery of the arena itself and the tube it's an active train, and a lot of places including barclay center in brooklyn, new york, with it's a big transportation hub. you have people leaving a venue going into the subway at the same time. is that part of the sophistication? >> it could be somebody in contact with an isis handler online. kennedy: more forethought on what we consider with lone wolves. >> with lone wolves you are oftentimes dealing with individuals who aren't very adept at what they are trying to do. so you have had many attacks with low or no casualties. i worked as part of the nypd terrorism division. here is an instance where somebody had a better sense of the timing and a better sense of bomb con truck and chose among the softest of soft targets. so they will be looking for additional individuals who are part of that bomb process. there will be a digital fingert. there always is. that will give us information how connected he might have been. he could have done a lot of this on his own. there was someone connected to isis directing him into this. kennedy: are they f

was a good quarter for the european investment of funds and the market revenues with the exception of barclays. but really, what we saw was that capital markets revenues pulled the revenues for the quarter. because as revenues overall were relatively flat. and that's really reflecting, you know, weaker results in some of the noncapital markets where low interest rates continue. >> much of 2016, i feel like we talked about the fact that u.s. banks were gaining markets here at the expense of the european rivals. do you feel with that strong first quarter, european investors are able to claim back the risk markets here or is it too early? >> i think it's too soon to say. it's definitely the case that a number of european banks are still going through multiyear restructuring programs which we're starting to see some of the benefits of some of those capital market results but also reduced costs. so, they're a bit more inwardly focused, i think, someone some of the u.s. peers. the u.s. peers in the capital markets have stronger quarterly results. so i think it may take a few more years for to us see

barclays is saying, this is something we can look at a trade going higher, $.14 to $.25 to get back to real value. this could be a good month for these gdb holders. mark: two fantastic chart. by the smallest of margins, i'm going to stick with aleksandra. it shows how banks have outperformed insurers, but recently that has taken a turn. i think that can be an interesting chart to look at in coming days and weeks. vonnie: i agree that it is an interesting chart. my pick is laura. this is gripping the community. it is a massive battle. that is the first time i have seen a visual demonstration. let's call it a friday type. ♪ jonathan: from new york city, i am jonathan ferro, with 30 minutes dedicated to fixed income, this is "bloomberg real yield." ♪ jonathan: coming up, the biggest crisis of the trump residency rights the calm -- breaks the column on wall street. willie chaos in washington throw chair yellen off? thought one impeachment in brazil was dramatic, markets brace for two in a row.