euro zone. rebound inthe recent the currency has coincided with a drift off expectations in the euro zone and we are not far off in terms of the five year and .ow it is a more aggressive qe process. the in about early at the euro zone is immature this point. i think mario draghi is likely to express that. >> if we are looking at the dollar, you think the recent selloff has been a little overdone. many few will this wrong so far this year. where does the momentum come from now for the rest of the year and how far do you see the rally going? i think unfortunately, we are .robably in a transition phase we may be pretty much range bound over the summer as we policye to focus on moves in the year -- in the u.s. as well as the eurozone. political risk transferred essentially from the eurozone to which mandatory training the ability of the u.s. dollar to rally significantly from this point. there is no doubt the u.s. dollar still enjoys significant interest rate premiums relative to much of its g 10 pi

now, the euro, you propose the french should withdraw from the euro. i think that is a mortal proposal and a dangerous proposal. and your do to yourself system has no meaning. it shows that you're unprepared. what is your vision? my vision is to build a strong europe to i have a european policy that will be powerful and in which ch we will defend the interest of france. everyone needs to understand the farmer in the region buys his raw materials from abroad. he has to pay in euros. you have to pay his employees in francs. a lot of products are imported. and if he is a stock breeder, the italians will buy his products in euros. and he will pay his employees in francs. >> translator: each country will have its currency. trnts so you're going to decide for the others. you decided for the others. >> translator: that's the purpose of the negotiation. >> translator: so you're going to decide for the 19 other states that are part of the euro that they will leave? >> translator: those who are suffering and what their national currency. they're dying from the e

the euro is. we are seeing reluctance to not go very much higher, and this is checking itself to see what can be achieved by this youngest ever elected head of state for france as he tries to really unite very divided country and of france but is facing economic issues as well, unemployment, sluggish growth. sayingot of suggestions it is still down to central banks, where the ecb goes, whether mario draghi gives where qe goes next month. regardless, a cyber link for the markets. and we are seeing that in asia. betty: as you can imagine, there is plenty going into the euro and europe after the election results we can see that throughout the rest of this week. bloomberg terminal users, you can follow this story and all of the day's trading at the market live blog. that is mlb go. get it in one click. analysis. find out what is affecting your investment right now. according to the european investments. paul singer is said to have raised $5 billion in 24 hours for his hedge fund last week, the biggest

now, the euro, you propose the french should withdraw from the euro. i think that is a mortal proposal and a dangerous proposal. and your do to yourself system has no meaning. it shows that you're unprepared. what is your vision? my vision is to build a strong europe to i have a european policy that will be powerful and in which ch we will defend the interest of france. everyone needs to understand the farmer in the region buys his raw materials from abroad. he has to pay in euros. you have to pay his employees in francs. a lot of products are imported. and if he is a stock breeder, the italians will buy his products in euros. and he will pay his employees in francs. >> translator: each country will have its currency. >> so you're going to decide for the others. you decided for the others. >> translator: that's the purpose of the negotiation. >> translator: so you're going to decide for the 19 other states that are part of the euro that they will leave? >> translator: those who are suffering and what their national currency. they're dying from the euro

now, the euro -- you propose the french should withdraw from the euro. i think that is a mortal proposal and a dangerous proposal. and your do to yourself system has no meaning. it shows that you're unprepared. what is your vision? my vision is to build a strong europe, to i have a european policy that will be powerful and in which we will defend the interest of france. everyone needs to understand the farmer in a region buys his raw materials from abroad. he has to pay in euros. and he has to pay his employees in francs. a lot of products are imported. and if he is a stock breeder, the italians will buy his products in euros. and he will pay his employees in francs. >> each country will have its currency. >> so you're going to decide for the others. >> >> that's the purpose of the negotiation. >> so you're going to decide for the 19 other states that are part of the euro that they will leave? >> especially those who are suffering and what their national currency. they're dying from the euro. >> all of this will not exist. the farmer understands what he'

it is very hard to position in euro-dollar. we prefer euro-jan. yeyen. matt: italy still has to deal with the three problem banks, but even if they say only tens of billions in npl, they have a real problem on their hands. >> in the long term is definitely the weak link for the eurozone. for now we are not very concerned, because most likely earlyl avoid scenarios next year. we also expect the ecb to start exiting from qe. we believe it is most likely by the end of next year. but in the long-term, we believe it will increase, and that debt could become unsustainable. as he said, the problem in the banking sector remains, and unfortunately we have not seen the reforms that will lead to faster growth. anna: a a lot of questions this week about what we learned from the fed. will begin clues around the balance sheet? but in terms of this euro conversation, we are looking for clues in june, aren't we, about where the qe program goes next. how quickly do we see the amount of money they are spending, with the interest rates. what are your expectations for june

there's no real legal framework to get out of the euro. it is understoo she wants to have coordined withdrawal of every single country out of the euro area. that's her major stake for negotiations over the next 6 to 9 months. but we have to see how it goes. we have to see how it goes on sunday. >> she's probably doing that, bag little confusing around the euro because it scares a lot of french people. they don't want to leave the euro so much. >> absolutely not. the polls again have been really consistent. the french population is between 70%, 75% in favor of staying in the euro, staying in the eu, which is remarkable compared to other countries, like italy. i think that remains a major feature. >> thank you very much. car carolin, we'll watch the level of abstention. as a reminder, the second round is in the middle of a bank holiday here that could worsen the abstention level. >> that's a very good point. thank you very much for that. you and i will be working on sunday. do join us on sunday for live coverage of the final round of the fre

but the more medium-term outlook for the euro and euro crosses as such is for higher euro. clearly the european economy is getting out of the crisis we've had for several years. >> thomas, i'm sitting here scratching my head. we've been through years and years of political crisis in europe. it doesn't seem like there's an end to it. we see more elections this year. yes. the french election may provide a euro positive outcome, but there's still the uk general election, the german elections. do you not think the euro/dollar should be showing more signs of nervousness right now? >> i don't think so. the french election may be a positive for the euro. if macron wins, german election is a nonfactor. both are pro euro. then i would say,say, yes, you an issue for greece, but it doesn't matter for the currency. you are right about the brexit, but that's well known about markets. the euro survived a lot of storms. i think it will survive the ones we've seen over the last one to two years. if anything, the political dynamics over the last three months will be supportive of the euro.

your again, euro-dollar? weheading into projections, are not ready to fall back yet because if they do signal a greater threshold, ultimately the ecb anchors their expectations. inwe still have unchanged terms of the u.s. and a slightly conservative upset, the growth differential is still in europe, we still might see euro-dollar run higher, hotter, and euro-yen can benefit as a result. but i think the margins are pretty fine. manus: more to come with geoffrey yu from ubs. and remember, if you are a bloomberg customer, you can what fis watch this using tv . you can influence the conversation. ask a question at the bottom of the screen. merkel.p, modi meets the indian prime minister kicks off a four-nation tour in berlin. we take a look at the agenda. this is bloomberg. ♪ just gone 6:48 in london. 1:48 a.m. in the united states, in new york. just a shade lighter this morning, the indication for u.s. equities. big week for the u.s. theet manufacturing, and big daddy -- the jobs report on friday, which cou

ffrmgt we' >> if we're framing this as an election pro euro or anti- euro. i cannot decide if france wants to stay in the euro. are they satisfied with the status quo being inside the euro? most polls leading up to this on that question, yes, they want to stay in. >> crucial point. you're right. that's one of the two big hurdles le pen has to get over. one overall most french people want to stay in the eu. second is this label she has attached to her of xenophobia. clearly she is trying to frame this, it's not so much about the euro, it's about globalization. if she's able to convince enough swing voters this is more a globalization, elitist banker versus me, someone who wants to fight for france, she has a chance. if it's on the euro, you're right. either way, as michelle made clear, polls got the first round right. they're pointing to a strong macron victory. >> so are the markets. >> markets have fully priced it in. >> any time you see multi-month highs for the euro, reminds me of the pound running up to 1.50 the night before brexit. >> absolutely. fully

unchanged.iss seems i put in euros lottery showing -- euro's lottie -- euro-'s lottie -- euro-zlaty. expectations a little below what analysts were thinking. this is a picture of european stocks. regaining earlier. $1.1042.ar, a fifthar weakening for straight day, having to do with the report that trump revealed ossified information. and iea, the price of crude up $49.23. it cuts different ways, whether it is this was frank or the japanese yen. this is zloty. here is a strong euro. then up we go. you have stronger polish zloty. little off of the regression in 2012. you will really have to break through right there to have a strong zloty. francine: this is what i take -- picked. u.k. inflation that are than expected. resuming its upward march. bestrice of care for your airfare went up. there is concern -- and this goes back to the boe expectation that if wage growth does not canow cpi, if you are a you household, you will feel that your income is squeezed and will spend less. tom: what we tried to do on "surveillance" is lose the hysteria. there was a fair amount of hysteria last nigh

the euro-yen, 123.60. a stronger yen, a weaker euro. g,am watching the euro-sterlin which i do not get, but everybody tells me to watch the euro-sterling, not the sterling-dollar. francine: i am also watching out for this today because the euroarea economic confidence is following for the first time this year. that figure came in three minutes ago. we are seeing weaker readings and the retail sector. this will feed into conversations that the ecb will have. yesterday draghi gave an important speech to parliament, saying he was dovish. investors are trying to assess a ptath for higher u.s. borrowing costs. i picked up on the south african 13.0775. these are expanding losses for a second session. tom: it is a four day work week in the united states. let's look at a picture back to world war ii. this is simple. it is the savings rate compared to income. this is income after taxes and for decades, we were at 10% up to the 70's, and then something happened and down we go. here is the financial crisis, august of 2007, and we come back to wher

the euro burning. what are the implications for his decisive victory for the european central bank policy? opec's next move, saudi arabia's oil minister says cuts could extend into the second half of the year. possibly beyond. will it be enough to stop the recent rise in the greek market? third -- in the crude market? third time, not enough charm. akzonobel rejects another takeover offer by bbg, defying shareholder pressure. could a hostile takeover the next? you are welcome to the show. emmanuel macron exceeds the power. votes got over 65% of the and counting. 34% from macron? you can see this is the overall relief. asia was off on vacation. these equity markets are higher, in part, in part to do with the victory that you saw for the jobs number on friday, the macron relief rally as well, which has come through. that in itself is moving markets. equity markets are just that little bit higher this morning. let me move this along. equity markets are just that little bit higher this morning. london, pari

euro is down. euro sterling is down, euro-yen is down. had alreadynagers covered -- sorry, they were already net long about this by the most on record. -- buyn appalling phrase the rumor. anna: we do not know what the ecb will do as we go into june. we do not know how much of power makcron will have. let us look at asian equity markets. at theng china come asian equity markets are doing very well. the chinese story is different. down another percent on the chinese equity market. u.s. stocks closing at a record. jobs number was decent. all of that lifting the general sentiment but the chinese story is different. billion loss in liquid chairs in the last month of a selloff. >> how much pain will the chinese authorities allowed to happen. we will discuss the volatility in the yuan. let us look at the oil market. the oil market may see an -- he saysn terms of he is confident the agreement will be extended into the second half. are backhat, the rigs and more were added last week. the overriding story is that opec and non-opec will have to do m

euro against the dollar. pound against the euro. the close is four minutes away. this is bloomberg. ♪ ♪ live from london and new york, this is the european close. i am mark barton with vonnie quinn. let's take you through the action. we saw a day of gains. basic resources leading the advance. wednesday seems to have been forgotten. that is something we will talk about in just a second. down for the week, first weekly drop in four. biggest drop since november. this is another chart. this is the euro stoxx 50 technical. the euro stoxx 50 is approaching a golden cross on its weekly basis. that is when its weekly average moves above its 200 day moving average. extraordinary, you have the 50 day there, the 200 day, and they are converging with the 100 week line, which is the closest they have gone since 1993. the power of the bloomberg. what a fantastic chart. let's look at the euro, heading for its best week against the dollar since that you're a last year. -- february last year. calculating 1.08 in the second quarter. in march, analysts were forecasting the euro

as part of the euro area, our policy decision in frankfurt at the governing council is for the euro area aggregate. our work is in forecasting the irish economy and thinking about financial stability risks. for financial stability's assessment -- assessment, we definitely do a look at hard brexit scenario. let's talk about the upside. and seey -- i come back the docs where we are downtown, it is growing. the number of institutions that could come here -- are you being overly cautious in your welcome? some people are saying, we had conversations, they are not that open. respond. philip: i don't think that is accurate whatsoever. what we say consistently is it is an eu single. whether you are looking to come to dublin or someone else in the eu, the regulatory regime will be the same. that is all we are saying, we will provide a consistent regulatory approach, which is going to be the consistent and european approach. the good news is that the eu -- my impression is the regulators across europe are probably trying to keep the same profile. it is a single financial system and a firm who need

reporter: a 2,000-year-old 130-million euro industry. dragon boat racing is the main attraction, held on the fifty month of the the fifth lunar calendar. craftsmen were hard at work making the boats. >> i sell at least 200 dragon boats a year. sales are always growin grow. i expect them to increase by 10%. reporter: the craftsman father when he washe art 19 years old. his factory is one of 14 in the city. produce between 3- and 4,000 vessels a year, an 10 millionh over euros. that's only a small slice of the booming industry. >> missionwide, the dragon-boat worth 130ustry is million euros. it posts annual sells of 30,000 rate of 10% growth to 20%. reporter: dragon boat racing has celebration of chinese culture. and with growing boat sales, not to mention billions of euros, the ancient tradition is becoming a bigger and bigger chinese economy. >> and finally, a new type of drone, and it could be the future of advertising. test-flown giant has its latest self-flying device bech has a display that can seen from all directions. it is the fir

the value has risen to 3.1 billion euros. the combined value is some of 30 billion euros. that comes from three teams, united, madrid, and barcelona. francine: the fed governor lael alterrd says she could her path forward for monetary policy. u.s. growth looks poised to rebound. >> i see some tension between signs that the economy is in the neighborhood of full employment and assigns that the tentative progress on inflation could be slowing. if that tension between the progress on employment and the lack of progress on inflation persists, it could lead me to reassess the expected path of policy in the future, though it is premature to make that call today. francine: still with us, james bevan, peter dixon. peter, how do you view lael bra inard's remarks? peter: i think what she is saying is that maybe the federal is ave's current path little aggressive. the markets might be more or less right. i still think we will get two rate hikes this year, possibly one in december. the question is, how far do rates have to go until we get some level of normalization? i still think a c

for example, she is not clear about dropping the euro. she was in favour of dropping the euro, then in favour of keeping it, and now she is in favour of introducing a second now she is in favour of introducing a second currency now she is in favour of introducing a second currency that would be domestically used for domestic payments, and large corporations would still pay with the euro. i think it is still up in the air. it would basically be some kind of chaotic outcome. however, i do not think that is a reasonable scenario. no, although we do know another political campaigner who did a bit of arc and forth and is now the leader of the free world. —— back and forth. let me ask you this, when one of them wins, we talk about reform, and there is so much reform needed for the french economy, what is the first step? is it the labour market? it will be, ithink, a whole package. you will have to watch what happens in the first few months. it is going to be the supply—side tax reform and the labour reform, they should come hand in hand.

do we leave the euro or stay in the euro? we must return to our national currency, it is key. >> it is essential. you propose to leave the euro? >> no, renegotiate. but we can free ourselves from the euro and transferred into a common currency. that's what it was before it became the currency of france. >> let's be clear, will be paid with the euro? >> central banks will play with euros if they wish. large companies will pay with euros. >> there will be two currencies. >> not been of much people, not for individuals, not small companies. >> what would be the purpose or the use of the euro? >> in a common currency. it is a basket of currencies. you know that! it existed because it existed! just before the euro, just before he became a currency a physical currency in france. oh yes, yes! it was the euro already. and before that it was the ecu. so the large companies paid and -- >> in 2002 large companies could pay in euros. that, do not pretend you do not know that. it was part of the -- and it was pretty well. for the french p

the euro still north of $1.09. way, david davis says no we are not paying 100 billion euros, and sterling down versus the dollar 1/10 of 1%. the vix modestly higher, some commodities rolling over, copper off 2.5%. crude getting mm

zynga could be 5 billion euros, some meta-hundred billion euros, everything else in between. thelikely is it to be at upper and -- where does all this come from, where will be the defining fact of what this deal is? there's a lot of things are going to this. this is part of the problem in trying to estimated. one of the things theresa may has said recently is that the past payments that the u.k. has bee into the eu should counted in its favor. this goes against what the eu says. the eu says whatever the country supported the eu in the past is technically eu property and is part of the block. this includes buildings and real estate and everything basically. they you a saying they have to settle the accounts, go and look and see exactly what the u.k. has put into it, but the withations of the eu are the u.k., then what the u.k. needs to pay towards those obligations going forward. it's a messy calculation that they have here. eu has eased its stance a little bit, saying that they don't make to have a definitive figure before they move on and negotiations, they just need to agre

manus: just on those synergies, first quarter 66 million euros, the target stands at 220 million euros. what about shareholder returns? well, cutting costs in the business, competing in a very competitive landscape, but where are you in the news flow from the shareholder -- for the shareholder and giving them hope in upping the returns? dick: clearly what our clear policy is 40% to 50% dividend on to net earnings. we are running a share buyback program of a billion again for this year. our shareholders will see the benefits in the continuum of a good return on their shares. necessary tois grow sales and improve our margins with the synergy the neighboring so we can keep our promise and that is what i mentioned in the outlook for this year. we expect on the performance of 2016 to see an increase. anna: vick, you clearly operated a number of different markets. in europe, we have seemed to laid behind us at the moment some of the more heated rhetoric about the future of the euro, for example around the dutch election, the french election, how concerned are you about populism and the threa

if greece falls out of the block, the euro will survive. european leaders have shown time and time again, they will do whatever it takes to keep the currency going. and then there is the politics. the euro, unlike other currencies, it is a symbol of europe's aspirations to unite in peace and prosperity. but, some business leaders, analysts, and politicians suggest the structural deficiencies mean its demise is just a matter of time. ♪ >> that was just one of many quick takes you can find on the bloomberg. you can also find them at bloomberg.com along with all the latest business news and analysis 24 hours a day. that is all for "bloomberg best," this is bloomberg. ♪ ♪ jonathan: from new york city for our viewers worldwide, 30 minutes dedicated to fixed income. this is bloomberg "real yield." ♪ jonathan: coming up, chair yellen has a plan to unwind a $4.5 trillion balance sheet. it makes it as boring as watching paint dry. the u.s. economy's first quarter was not so miserable after all but a big upward revision fails to shake treasur

the euro zone economy looks to be doing quite well. european equities are still 16 compared tod 18.5 for the u.s. is there still room to run? james: i guess that is telling you there is. what i would observe is equity markets have tended to front run the recovery across developed markets since 2008 because of the behavior of central bankers. because this liquidity has been thrown into the system, because rates have been held artificially low and even negative in the eurozone, you have had this portfolio balance -- an effect which has driven equity prices higher. the question i would be asking is, how much of the rally in european equities we have seen over the last three or four years was actually already just because of the stimulus and if we extend the economic growth and environment we see at the moment into the future, what does that mean for ecb policy and for asset prices? i wish we lived in a world by which we looked at economic growth, inflation, the output gap and were able to invest on those traditional fundamentals, but that

for havas and totalling the business at 3.9 billion euros. it will equate to a deal about 2.4 billion euros. still havas will retain its listed entity. there's still room for public investors to get involved. i mentioned about the defensive move. if you look at the revenue for vivendi it's been a challenging time in a sense. it's had slow growth areas of the business. the pay tv, television business in france, but strong growth through the record business through universal music group, umg. adding havas should inject more growth into the business for investors to get ahold of short-term. there are impressive pressures under the media landscape, bringing it under one helm would be useful. if you noticed the vivendi moves on some italian names, mediaset for instance, you've seen enormous moves by bollore to get ahold of this business. if he can raise money in his own private business, he potentially has more fire power. it's hard to read what his overall intention is, whether he's pulling back from those companies or regrouping to have another

david: in the euro, it is the simplest way to play this. marine le pen was a threat to the euro. what we have seen with the chrome -- macron's victory is the tide is pushing back with people saying we like to grumble, but in reality we do like a unified europe. david: why aren't the markets understanding what you are seeing? this has been true for some time. all the factors you list have been there. why have the markets -- why haven't the markets reacted? european see the glass as half empty and americans see the glass as half-full. i think we are being too negative about political change in europe that would help the equity market. they have been down for a long time, but i think it is a prejudice. the nice thing about prejudice in finance is it is unsupported -- if it is unsupported by facts, it will evaporate overtime. alix: what does this mean for other risk? you still have the italian elections and the german elections in the parliamentary elections in france. i went up pricing in enough risk -- are we not pricing in enough risk? the alternative in deutschland is not going t

you got a weaker euro. the euro was 13% undervalued on u.s. dollar.ersus you have the potential for interest rate hikes priced in to one printers -- interest-rate europe. that would be positive for banks and how well they do. day, all off the the geopolitical uncertainty around the french elections has been removed and you have the german elections coming up in september, merkel looks to win that and it will be straightforward. the risk has been taking off the table. volatility as you have seen is back down at levels we last saw in 1993. when you look at the vix, likewise european volatility index well. this is a good time and valuations support the argument. matt: i wonder what you think -- since that risk is off the table, at least the european political risk, does that set free european banks to spend more money and consolidate to start churning a little bit? >> definitely. we like to see banks hiring more, paying more and actually that weon growth areas have our leasing come through in the numbers. but you are absolutely right, matt. this

euros are dismissed by the government. but the man in charge of negotiating britain's exit on behalf of the european union warned accounts must be settled and it won't be without pain. there is no punishment, there is no brexit bill, the financial settlement is only about settling the accords. they've offered 50bn, 60bn,100bn, we've not been given an official number ...whilst we'll meet our international obligations, we'll meet the legal ones, not the best guesses and wishes of the commission. we will have the latest from downing street and brussels. also this lunchtime. police investigating the murder of a man shot during a burglary at his home in dorset have arrested two men and a woman. the supermarket giant sainsbury‘s announce a big fall in profits — blaming tough market conditions and a fall in the value of sterling. ten years to the day since madeleine mccann disappeared from a holiday resort in portugal, we speak to the first man named as a suspect. and why the uk's last killer whales are under threat. and comi

especially want to see the euro british pound. a bit have those big moves. interesting to watch, neck asked -- sugar down as well, 4%. to watch this contract. here you can see sovereign bond most are in really the asian markets over the action is that accept for the spanish market. you are going to want to watch today what happens with the bone trade, especially after mario draghi's comments yesterday. we'll talk more about that and on -- angela merkel's comments over the weekend, and her weekend with modi. that happens at about 10:00 a.m. local time. get the first -- bloomberg news with sophie kamaruddin. >> thanks, matt. -- televisede event lasting. jeremy corbyn outlined his vision for britain's future outside he be you, while prime minister theresa may explains why she had initially opposed calling the general election. in europe, from turning this --ntry to interpret tax came haven with low tax, which is, and investment. we want high wage, high investment, rowing economy, with good relations with our neighbor and with the rest of the world. would be ahe

euro-dollar risk reversals. this is the period after the first round, we went into the first round skewed to the downside. he popped back into positive territory. we come back down again after just one week. are a bit more positive for the single currency but people are taking a little protection out on the options to make sure they don't get caught there is the, possibility of a surprise. we have learned that over the elections. peter chatwell, head of european strategy at mizuho is still with us. let's talk about the spread as it relates to booms. -- bunds. you think we are as high as we can possibly get? way i look it this is if we are working on the assumption that emmanuel macron is the next friends president, we should -- french president, the political risk in this spread vanishes. most is gone by the first round, but we should think of the impact this has on the ecb monetary policy. i think for the june meeting in policylar, ecb monetary is going to emphasize a more hawkish shift. we are going to see the

a stroll with him costs just 25 euros per group. meanwhile, a group of 20 paste 215 euros for a walk with a historian and one of france's 11,000 professional tour guides. >> having a professional license is a guarantee for visitors that the guy is a background in history or art history, and in foreign languages. reporter: having a professional license allows them to take his group to museums and national monuments, not an option for an immature guide. since the 1990's, nonprofessionals have been allowed to offer tours in public spaces, causing platforms like this when the spring up. anyone can register to become a local guide. the ceo does not see his company has greeting competition. >> local guide have not replace professionals, just expanded the market. now more people are using guides. reporter: the tour's cost between 80 and 30 euros a group, and it takes between a 9% commission. other sites aimed at foreign visitors offer free tours. the young guides of many nationalities can make up to 30 euros per visitor, with payment colle

euro 1.0881. this after mario draghi was forced to justify the central bank's policy and in particular qe. this after mps in the hague argued that it had hurt pensions in their country. at one point the ecb president had to defend the single currency. >> there's a deeper reason why the euro has benefited all countries, but especially countries that are strong, export oriented with high productivity, and a business favorable legal environment. the euro has protected the single market. most of you are too young to remember the 880s, and the early 'the '90s when we had periodic eevaluations of all countries, and there was a stronger stability there, neither price stability was there nor the better countries which were stronger could see their merit rewarded because they were continuing devaluations robbing them from their merit. >> as you can see, these sort of discussions around monetary policy are usually quite dry. but the parliament was provided with a moment of light relief when an alarm started

germany, ith allianz had 21 billion euros. 10.8 billion euros. plus or minus half a billion. munich is now from the cfo in his first interview of the day. dieter, great to have you on the program. would you say that there is upside risk to your forecast you have been telling the market -- confirming to the market today because of that strength in pimco? uh, good morning, anna. thank you very much for the question. yes, 2.9 billion and profit in the first quarter. we are 200 million ahead of our outlook for the year. is always a volatile business, so it is too early to address our outlook. pimco is on a great turn for recovery. we had the last quarter in q4, and now q1 continues, and i think q2 will also continue the success story of pimco. anna: how sustainable do you see that success at pimco? clients flocking to your pimco income fund, it seems. how sustainable are the inflows? what do you see in the crystal ball? dieter: the crystal ball is that pimco is really doing nicely, and is well recovering. we are in a very volatile world. we hope that we can surprise more often in

it has surged on the anticipation of this considered pro-euro. as for gold prices, after a 3% or so decline last week, this morning, they're a bit firmer about about .33%. >> californmacron taking 66% of vote. joining us now, good morning to you, thank you for joining us once again. >> good morning, wilfred. >> i suppose the head line is this is a bigger margin of victory for emanual macron but to what extent is this more a vote for emanual macron than against marine le pen. >> it was more of an anti-le pen vote and a pro-macron vote. what is amazing, we had 12 million french people who decided to go for extension. and 4 million with blank vote. which weans one french cities out of three decided they didn't want either macron or le pen. not only do we have this majority to resounding victory, no doubt about it and he has tough challenges ahead. he was speaking yesterday about the unity of the french people. to have people all together, fine, great challenge to face. but at the same time, we are a bit more than one month away from the legislative

plus, we get an outlook for the euro. what is next for mario draghi now that the french election is in the rearview mirror? we talked to unicredit head of fx strategy to see what is going on with money trades. this is bloomberg, the open is 20 minutes away. ♪ ♪ manus: 7:42 in london. 8:42 a.m. in paris and 2:42 in hong kong. juliette saly with the business flash. juliette: president trump has fired james comey saying the bureau needs new leadership to restore public trust and confidence. according to the white house, his sacking was recommended by jeff sessions and his deputy. comey had been leading an investigation into a legend russian meddling in the election and moscow's possible links to trump aids and associate and it is only the second time in the fbi's history its chief has been fired. europe's second-largest insurance is planning an ipo. it could return money to shareholders. 2020 profitd its target including an adjusted return on equity of 12% to 14%. the ipo would take place in the first half of 2018 subjec

the macron presidency should help the euro dr. -- should up 116euro-dollar leading to for euro swissie. those of the key assets to watch out for today. yields are creeping up across the eurozone. we will talk with -- about oil. let's get the corporate news. .his is a one-year chart rejecting ppg industries. define pressure from shareholders to engage with its bid.r over its $27 billion rejected to offers from ppg saying they were too low and not worthy of discussion. the chief executive of accel proposed splitting up the company and splitting it up and rewarding shareholders with a high dividend. one of those other shareholders are going to think -- what are those shareholders think? that preorders expanding for second month. orders are-- adjusted to inflation and rose -- rose above the estimate. saying economy gathered momentum in the first quarter on the back of strong consumer spending and a brightening outlook. that is the trend going back to 2011. in china, oversee shipments holding up amid recovery global demand is a threat of a trade war with the u.s. receiving exports -- receiv

euro lower against the dollar. it was up by a quarter of a percent overnight, in the wake of the macron victory. to the fed now on friday, it rose to the highest level. beyond 2017, the french 10 year yield, little changed by a a basis point. we have seen a narrowing of the spread in the wake of the first round of the french presidential elections two weeks ago. the big move seems to happen just after the result of the first round, which led to the results yesterday in france. let us get the bloomberg first word news. angela merkel's party picking up she convincingly defeated the democrat in the northern state. the victory deals a blow to martin schulz's bid to replace 'se chancellor in september federal election. china's overseas shipments held up in april, edging down from a two-year high march. exports rose 14.3%. earlier,rom a year increasing 14.86%, leaving a trade surplus of $38 billion. china's export outlook has improved on the covering global demand at the threat of a trade war with the u.s. receding. ther

>> beyond italy, we are concentrating on 200 billion euros of wealth, 100 billion euro is already in list of clients that we gave to our relationship manager. so i think we can continue in italy to deliver at the same speed that we had in in the past business plan. another area important for us is china. we decided to invest in china, and we said we want to replicate our model also in china, especially with personal and private clients. >> can that be replicated? there's so much competition out in china. i talked to some of the biggest wealth managers in the world, they're very active. they have got much bigger fire power when it comes to allocating some resources there. can you compete with those players? >> but they are concentrated on high net worth. we are not competing with high net worth. if you work with private client, personal, you can't replicate our model. it is a model working with a strong retail franchise, with affluent clients in china we want to replicate the same. we have one of the leading banks of this area, we are working with the community, so we think we can rep

in the stock market, investors are watching the euro closely. it was at a six-month high earlier coupled with a high of german stocks we saw earlier in trading. london seeing gains this lunchtime, almost two thirds of 1%, while the paris market is trading in the red. rochelle: to china next, where wealthy people are paying huge sums in the name of getting visas to be able to live in the net state. stephen: it has been -- united states. stephen: it has been dubbed the golden visa program. chinese nationals have rushed to apply to the program, with the number of applicants tripling between 2010 and 2015. it brought in $24 billion in investment and created a whole new industry in china. invest $500,000 to get your family out of china. 100,000 chinese people have taken up on the offer over the past decade, injecting $24 billion into the u.s. eb5 visa program and other similar plans. thousands of agencies have been created to satisfy demand. one of the main reasons so many chinese nationals are planning to leave -- their children and the education th

you're sitting on roughly 6 billion euros in liquidity reserves in 2016. you've been paying out a higher dividend, but what about m&a? given that, yes, valuations are rising, but they don't seem to be sky high yet, would you be open to that? >> well, clear we are open to that. we just closed the last year beginning of march, seat covers and other covers in the rubber area. we have done some other m&a in '16 and in '15. yes, we are open, when something helps us to further grow, strengthens technology, to be better placed in the asian region, we are open for that. we have a closed look at that. >> what about not just the region, you mentioned asia as a potential area where you may want to expand in, about what about electronics and you a and autonomous. >> if it is helping us in technology, it's specifically in those areas. woe are already very strong, we have the advanced driver assistance functions in the car. continental is a big player worldwide. this is true for kekticonnectivf the car, digitalization of the car and electrifycation of the car. we have a

the dollar has fallen against the japanese yen and euro in trading. currencies,sket of the dollar has lost all of the gains it has made since donald trump was elected. those fears pet eight -- play into the stock market. thisare worried about how could derail trump's tax reform. >> staff are fighting to save plants from closing down. their sights on the president. it is one of the disputes the president is facing. they would rather blow their factory up then see it closed down. marched through the streets in central france. company is one of the primary employers. >> maybe we have not lost the battle. >> employers demand carmakers place an order big enough to save factories from blowing down . the man workers want to get the attention of is their new president. negotiations have gone up to the highest level. we worked with france while whole and, nothing -- france while whole law and -- francois hollande and nothing worked. -- nothing happened. the whirlpool factory made international headlines during the last weeks of the presidential campaign. macro

france, and the euro project are going through a honeymoon period. this is more comfortable than if marine le pen had won. but the barriers he has got to overcome are absolutely enormous. i would not be fooled by all of this handshaking and gladhanding and smiling. to pull something off, he could do something quite remarkable. it is not so much getting the majority of the french assembly. is not only the assembly, it is on the streets. macron andabout merkel? what does their relationship mean for the future of the e.u. project? how are they going to mold or mesh together, roger? early to tell.o this is a much better relationship that would have existed between marine le pen and angela merkel, but from a policy point of view, i think probably macron would have preferred it if he had been negotiating with mr. schulz. it is looking less and less likely. i think we are going to find angela merkel a pretty tough nut to crack. the fact of the matter is, germany does not want to give any ground on its traditional stance. what macron has come they're saying

look at the euro. there was too much emphasis in our view on interest rate differentials, that old, you know, interest rates are going up in the u.s., the dollar must arise. no, there are other factors to currencies, as you know, otherwise the swiss franc would be the lowest currency, many times. we are positive on sterling. that is a separate discussion. that is a rocky road. we are positive on the euro. anna: we will talk about both of those in the program. alan higgins stays with us on the program. we have a host of big an exclusive interviews for you today. we were talking to the international transport association and the bank of finland's board member. anna: coming up, we get a look into the health of the banking in be with the ceo of amro.- anb this is bloomberg. ♪ anna: it is just gone 6:15 in london. juliette saly standing by with a business flash. juliette. you.tte: manus, thank sorry aramco plans to sign deals with at least tenuous companies when president trump -- according to two people

it would benefit the euro but not necessarily the euro area. vonnie: what about his bank and 3000 early 300 -- retirees? >> it is a significant first step. the ceo said he wanted to reduce the workforce by 9600 people four years.t they haven't made much headway in that respect. they are saying, we are offering for you guys to go. it is a signal begin first step and i have heard from people inside the bank that they like the offer. likely it could be a good take-up and by the end of the itond quarter, how much would have been and how much it impacted the banks. >> thanks a lot. bloomberg's stephen allen joining us. mark: we will hear from president john williams, his thoughts on china's slowdown and tax policy in the united states. vonnie: a rare and exclusive interview with former hedge fund manager hilltop own. he is back. and putting his money to work. find out where at 1:00 p.m. eastern on bloomberg television. ♪ mark: live from london, i am mark barton the european close roughly seven minutes away. vonnie: from new york, i am vonnie quinn

and the euro zone have that something needs to be done. i agree that nobody wants to address these issues now. neither the spd or cdu is going to say when he to do something about this in balance in europe with germany being this strong exporter, but i think merkel especially knows that things cannot continue now because the result would be that the euro would fall back into crisis, and there's no country that benefits more from the euro than germany, and with brexit now on the table and all of these other challenges that he europe faces, i think that this is the moment where france and germany are again going to have to lock arms and do something. it might not be quite as dramatic as the french might be hoping with the european and eurozone budget,t, but something needs to happen here, and i think it is interesting and maybe a little unfortunate that europe is not playing a bigger far in this campaign so because neither party, i thinin, wants to a acknowledge what will need to be done, which means germany will have to pay more if they wan

the euro-dollar is up .7%. that's a big move for the euro. you also have more drama coming out of washington. the vix is a little bit softer and the monster rally we saw over the last couple of days, up .6%. it's the dollar movement and others in other markets. now nothing in what happening. emma: the trump administration has been rocked by report the present disclosed secrets to russian diplomats last week. according to the washington post, he revealed closely held intelligence about an islamic state plot to the russian foreign minister and ambassador. the national security advisor denied the story. >> the stories it came out tonight as reported is false print the president and foreign minister reviewed common threats, including threats to civil aviation. were intelligence sources or methods discussed. the president did not disclose any military operations that were not already publicly known. emma: the president said he went to share information so they would step up their fight against isis and terrorism. the newrnment says president will

if greece falls out of the block, the euro will survive. european leaders have shown time and time again, they will do whatever it takes to keep the currency going. and then there is the politics. the euro, unlike other currencies, it is a symbol of europe's aspirations to unite in peace and prosperity. but, some business leaders, analysts, and politicians suggest the structural deficiencies mean its demise is just a matter of time. ♪ >> that was just one of many quick takes you can find on the bloomberg. you can also find them at bloomberg.com along with all the latest business news and analysis 24 hours a day. that is all for "bloomberg best ," this is bloomberg. ♪ ♪ narrator: raised in exile during the cultural revolution, ai weiwei is a man driven by his conscience. an artist as much as he is an activist. he uses sculpture, installation, film, and even social media to speak about issues surrounding truth, justice, and human rights. >> ai weiwei

will the whole euro experiment breakup? i was one of those analysts who didn't believe it would last, but you know what? it has lasted and it is stronger. it has got through political crisis, political tests, protests, and yet the european economy is picking up. -- iand the eurozone think this whole narrative of the end of the eurozone is becoming passe. as a result, there's this whole premium that has been priced in, which now needs to be removed. this should benefit the euro, european assets, and this is a multi-month thing. it started earlier this year and will continue from anyone. the bigger picture is very positive. matt: just to wrap it up, we talk commodities, we talk currencies, let's bring in treasuries and equities. you think the flattening u.s. yield curve is giving a thumbs-up to a continued rally for equities. explain. >> yeah. i think we are in the middle of the much longer term flattening cycle in the u.s. we have seen this before and over the last several years, one between 1992 and 2000, which led to a mas

the euro, yen by 5%, swedish krona, danish krone. this is my second currency chart. overnight volatility. nothing near brexit, but still fairly elevated levels. valentin, how are we positioned ahead of sunday? valentin: we are bullishly euro. we've seen the lows of the year. the first round, it could be a game changer for the euro. we expect the second round to , thatm what we are hoping emmanuel macron will be the new french president. this much seems to be in the price already. the bund spread is back at the lows. it feels like we are positive for the euro. a lot of that positiveness may be in the price. the path of the euro will depend on the eurozone fundamentals and indeed the prospects for ecb qe taper. positive over longer-term but for a different reason. francine: another bit of showing off quickly. this is france, italy, spain, and stoxx 600 since election. top one is italy, followed by france, spain, stoxx 600. the periphery is outperforming france. as valentin says, game changer for euro if macron wins? david: i think so b