manus: i'm manus cranny. another day and another momentous moment from the white house. we are talking about the washington post article which has been denied by the white house that the president classified information to the russian foreign minister and ambassador. how are markets taking this second big political punch? the dollar has dropped. it started pretty much in the middle of last week. poor sales, cpi data so the dollar fell in the fifth day in a row, the longest losing streak since march. the dollar is back at level when president trump came to our. this is the second political punch the dollar is lower. there is no aggressive market reaction to the story which has been denied. anna: the dollar weakening for the fifth day. they have seen this moments of building -- momentum building. asia risk radar on asian equity markets now. you can see a little bit of risk aversion trading coming through as these headlines dropped. the dollar selling off but not too elevated levels and expense. giving up, but still up by 1/10 of 1%. the japanese nikkei at 2.20. did not qui

manus and anna. manus: thank you very much. a great market roundup. let's talk about marine le pen and emmanuel macron. not holdandidates did back. she portrayed her opponents as part of the global elite and refuted his claims. >> you have said it so often, i am the candidate of openness. you are the candidate of closure. the closure of factories, the closure of attorney warts, the closure of police stations, the" of hospitals. anything you do not want to close its borders. anna: macron hit back. >> this great fear, who has been manipulating it since the beginning question market as you them a who plays with the fears of our services on terrorism, etc., it is you. the great priestess of fear is in for to me. great britain has nothing to do with us. it was not in the euro and had -- never has been. you suggest leaving the euro. that is a mortifying project and a dangerous project. manus: for more on the debate, let's go to carolyn, joining us from paris. the headlines are pretty spectacular. when were the biggest clashes, which area would you say were

manus. very interesting we have seen yearear gauge fall to a 23 low. that is the line in white. the blue line you see that is just running off the chart is ,he ratio of calls to puts showing the options market is going to have a rebound in the fix. manus: a rebound in the vix and low volatility in the gilt market and some of the equity markets. this is the market open. we go towards an undecided 73, 44, 45, on the future spirit we were better offered from the start of play when anna and i were looking at these. low-- ipo's -- we are seeing this. i would call it undecided. let us get ready for normalizing. the paris market is up by .8%. let us put it in perspective. anna edwards is standing by for us. anna: let us talk about the european open. a quick some up. -- sum up. we have a nice makes going on here. a slight bias from the overall move in the stoxx 600. a bit of the trump/fbi effect. that is what the mliv debate was about this morning. uroplasty factor in a little bit of weakness late i

juliette: manus, thank you. lodging is -- voting is underway in an election triggered by a scandal in south korea, with an increasingly aggressive northern neighbor. allegations of corruption at the highest level of government have dominated the campaign, along with worries about youth unemployment and the feeling that economic revival isn't being seen on the ground. former acting attorney general days passedsays 18 between a warning to the white house that michael flynn lied to vice president mike pence and the administration's decision to fire him. she testified to the senate judiciary committee yesterday. tweet, president trump suggested any problems should have been flagged by the previous administration. australia's aaa credit rating is back under the microscope as malcolm turnbull's government prepares to deliver a government that appears long on spending and short on saving. the books are being, complicated with miner investments. global news, 24 hours a day, powered by over 2600 journalists and analysts

manus, guy. manus: juliette, thanks for the roundup the ready manual macron has pledged to unite france after one of the most divisive election campaigns in recent history. we have the strength, the energy, and the will, because that is what has carried us to this position, and that is what has made us, and that strength will ensure our future. we will not give in to fear, division, and lies. on 65.7% ofn took the vote to become france's president. guy johnson has been following all the actions and polls closed yesterday evening in paris. good day to you. a great deal of rejoicing in france in terms of macron's victory, but it was not all a one-way street. you have a guest with you. good morning. guy: i would like to talk about the market reaction, manus. the weather this morning in paris is not very clear. the sun is shining. it is a weird mix. france is definitely celebrating, and we are trying to figure out exactly what is going on. let us bring our guest, lawrence denny's -- laurent denize. m

manus: racing for brexit. the british chambers of commerce calls for a frictionless future as the u.k. prime minister alludes to the meeting with shot clock younger headed toward -- jean-claude yunker. anna: france's final stretch. le pen and macron go on the offensive ahead of the election. what is at stake. manus: a meeting of minds that milken, from u.s. treasury secretary steve mnuchin to citadel ceo ken griffin. we will bring you a bevy of top interviews from the conference in l.a. anna: a very warm welcome to "bloomberg daybreak: europe," our flagship morning show from london. manus: a very good morning to you. a raft of things to consider. one thing that the bond markets are doing just before steve mnuchin gets ready for a bond bank. they piled in, they added the most long positions, despite -- they have added the most long positions on a week on basis. this is the first time since july hedge funds have been alleged across the curve. the question you have to ask -- there's always a good reason. economic

manus: mr. macron is probably going to be smiling this morning , his unemployment rate as he starts his tenure has fallen from 10%, coming in at 9.6%. amen unemployment has also dropped by 31,000. we wrote a couple of stories on this. he would be one of the first presidents to start with a real tailwind in terms of employment. rated at a six year high. growth of 1.3% this year. his come off double-digit unemployment and that is the critical point in that story. let's check in on the over the last 24 hours. it has been a busy one. >> volatility has been reawakening from its slumber. the vix cert -- surging the most since brexit. this as were seeing the stock selloff that we saw in the u.s. spreading to asia. the s&p 500 dropping the most in september and yesterday's session. the msci asia-pacific index lower today as well. we're seeing other assets showing a little more calm after wednesday's sharp move. so the dollar coming up for air, the bloomberg dollar index recovering slightly from that six

manus: memories. anna: talk to me about risk in the iranian markets at the moment with sanctions lifted but everything we heard from the u.s. administration, how risky do you see investing in iran at the moment? thet: i think first of all queue of interested parties sign deals has been diminished. we are still very much interested. the main challenge right now is still the financial transactions, so this is limiting us. this is more my concern. in parallel, we are going to negotiate the terms of especially the economic terms amount we can get if we are going to invest into some oil fields. manus: you switched countries for a moment, let's talk about libya. can they get back above one million barrels a day? i would love your opinion on that create also in terms of your expansion, you just thently acquired stake in field. what can it deliver? offwould say it is paying because the production is back. we have seen some interruptions and i think my outlook for 2017 is libya will have a production, you have

anna, manus. manus: julia, thank you very much. politics never far from the agenda on daybreak, and this time, it is angela merkel is pretty gaining momentum in germany, securing a convincing win over the social democrats in election through the chancellor published a statement after emmanuel macron's win, saying a decision by the french voters is a clear commitment to europe. anna: for more, let us go to chad thomas, who joins us from berlin. great to have you on the program. other elections taking place over the weekend, perhaps not getting the spotlight, with increasing significance as we go through the year. what significanc do we attach to thee win in this estate of action -- state election? chad: no doubt, this gives merkel and her christian democrats momentum as we head toward that national election. we are four-month out from the national vote. at the beginning of the year, the social democrats have been closing in on merkel -- being under pressure to be doing more. now, that gap is widening again. there is an eight percent

manus: it is daybreak europe, you're welcome. i am manus cranny. equity markets have a couple of have the china data coming in this morning. a little bits longer than the market had anticipated. not having what you call a very dominant effect. london is jumping with the rest of europe. london is up 1/8 of 1%. the one story that is pervasive in the british market is this that conservatives could lose as many as 20 seats. this is what you will -- what will drive the london market. our risk radar and the sentiment is you had the chinese data coming in a little bit better for the second month than the market had anticipated. straight month in a row inmate. the chinese shanghai composite into the lasting hour of trade. copper is it on the back of that and as far as the lme, the drawn copper is the highest in nearly three years. that is underpinning the copper market as well. let's have a look at some of the currency markets. , softer inflation data may warrant a rethink. the dollarhs says rising 10% versus the yen. yields rising by 50 basis points. no r

manus: i am manus cranny. we have breaking news from one of the big banks in europe. underlying profit comes in at ¥650 -- 650 million euros. if you want to see a buffer of capital, these guys have got it aplenty. the underlying cost to income ratio, this is going to be good news for the market. it comes in at 60.2%. this was one of the concerns at the end of the year. their cost income ratio was rising. it came up to 65.9% last year, the year before. underlying profit, 650 million euros. they have a buffer of capital. cost operating expenses, to income ratio, looks as if it is coming a little bit more under control. we will have the conversation chairman at amro 6:20. they join us in 15 minutes. the: let us talk about state of risk. volatility is rising again, but do not go nuts about it just yet. this is certainly reflecting in the way we were talking about the lack of reaction in the markets yesterday. we are overnight in the asian session seeing market participants really engage with what is going on in washington. manus: the point about it is that yesterday, we

manus: thank you for the roundup. a couple quick lines -- we have been on the phone with the ceo at ryanair. they have no interest in purchasing alitalia. they could take two to three additional boeings in the future. that was their first headline, on growing the fleet. two to three additions, no interest in alitalia. -- he sayss alitalia he sees alitalia surviving as a long-haul operator. we will have more of a discussion with him when he arrives at the studio. let's talk about the fed. reiteratedrd his views on rates, saying they are close to where they need to be. speaking exclusively to bloomberg, he projective the idea that 200 basis points of hikes are in order. abouthink a good thing unwinding the balance sheet is that it will create policy space for the committee in the future if we need it. on the rate itself, i think we are not very far from appropriate rates for the u.s. economy that will keep inflation not too far from target, and the labor market performing well. thehat i disagree with is idea that we hav

manus: thank you very much. politics,s stick with but it different story, south korea's new president has pledged to unify the nation after nine years of conservative rule. it led to the impeachment of his predecessor. manus: moon pledge to be a lean president, and shery ahn is in seoul. great coverage on the election so far. here we are, we have the results. what is in a for the new president? is it the politics of north korea or the governance of korean industry? where do you think he will focus first? >> on thanking all of them will be very important, but given the mood here on the ground, it would have to be tackling conglomerate reforms. a lot of people are angry over scandal, this will be key for the new president. president moon was sworn in after a stunning election victory with 41% of the vote against only 24% for his opponent, the conservative. this is at a time when we're seeing voter turnout at the highest level in about two decades. unprecedented, he doesn't have a transition pe riod. just an hour a

i'm going to send it back to you now, manus. manus: thank you very much. you weren't easy in any stretch of the imagination. no governor saying there was immediate decision on the new monetary regime and he can hit his inflation goal with lower rates than before. great job. and remember, if you are a bloomberg customer, hop on to your terminal and you have tv . you can get all of the streaming through the show or the charts. onrything that we show you the bottom of your screen and you can ask using the ib function to have a chat with the producers. sarah is in the hot seat. matt? matt: yeah, earlier we were talking with yogi about the fears on china's economy really hitting commodity prices. the price of underlying commodities. we are going to talk for investors through the outlook of the commodities miners, precious metals and miners. coming up next, this is bloomberg. ♪ ♪ matt: welcome back to the european market open. i am matt miller in frankfurt alongside manus cranny in london. a day after markets react did negatively for french futures, we a

manus: an auspicious day. anna: this is interesting because we are asking you questions about political risk and you are telling us about a value -- about valuations. >> iamb getting frustrated because i have heard a lot of talking heads like myself saying that valuation doesn't matter. it does. it is 1929 before black tuesday. that time we got about 30, and in the weeks or months before. it was the only time it traded above 29. valuation does not matter most of the time. and you get to extremes, everything good that people are hoping for has to happen. if you have the fed hiking as much as they said they would come a market has to go down. -- as they said they would, the market has to go down. you need a great economy where the fed does not pull the carpet out from under you. i think it is spare and likely that if you get that stronger economy, the feder -- the fed it will pull the carpet out from under you. the is the funny thing with market. companies always beat earnings expectations. earnings missed the e

manus: a good basis to move forward. good morning, it's manus in london. i want to show our viewers the trade deficit between the united states and germany. mr. trump saying that the situation, the germans are very bad because they sell 1.3 million cars into the united states of america, whereas u.s. brands sold half a million cars in germany. of course, germany is much smaller. it's rather disconcerting. the distance between language, rhetoric, and action with trump is very long. but it is rather disconcerting, the germans are bad, very bad. >> yeah, but again, when i get back to the end of his presidential campaign in the third quarter of 2016, hitting hard toward china, we see he has toned down his rhetoric. it is part of the negotiation, i believe, to use hard words and put pressure on its partner. and getting back to the nato summit, where europeans need to deliver more. the u.s.obal economy, will have to look at this trade deficit. in also not forget that exchange for the trade deficit you also see some kind of financing a budget deficit the t behind

manus: waiting for yellen. no hike is expected, traders look forward signals of what is to come from the fence. anna: france's biggest bank beats estimates. we year from its ceo. >> bottom line is 4.4%. ♪ anna: welcome everyone to "bloomberg daybreak" our flagship program. bank profit one point eight 9 billion euros ahead of the 1.5 billion that had been estimated. we spent a lot of time with the other banks in the sector talking about whether it is in the u.s., here in europe. it is an area where europe has underperformed. thick revenue in the first quarter jumping 32%. helped by commodity performance according to the business. activelyny says it is and omitting remediation plan as part of a settlement with u.s. authorities. an update coming with their political connections in the united states. up by 32%, that compares favorably compared to what we saw divert and. american banks where we are seeing an average of the top five, 15% increase in revenue in the first quarter. perhaps it will be a pleasant surpri

manus: you are quite right. i'm going to have a conversation with charles evans tomorrow in dublin, so we are going to see what kind of surprises he can deliver for the market here in more to come. we are going to talk carney. is he really in a corner? bank of england do today. it is thursday. this is bloomberg. ♪ manus: -- matt: carney in a corner. will the election and brexit keep the central bank governors hands tied? 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 movin

manus: verily result in u.k. local elections show the conservative party is on course for a big victory in june's general election. anna: the obamacare repeal and replace bill passes in the u.s. house by a slim margin. hospital stocks rebound and several republican senators say they will write their own version. ♪ manus: welcome. it's "daybreak europe," your flagship morning show. anna: we are going to get to some breaking news in just a moment. first, some pictures coming from china. shanghai's international airport, this is the first inght of the c919, a new era the aviation business potentially, as china tries to muscle in on the business that has been airbus and boeing until now. manus: boeing predicts china is going to need 6800 aircraft, the ticket value $1 trillion, by 2025. you get about 158 to 174 seats. anna: a lot of global western suppliers supplying parts for this plane. live pictures of the first flight of the c919. that is the breaking news this morning. on the aviation space, we've got internati

manus: yeah. if you think of the reach of what it is they are trying to do, the challenges boggle the mind. there's of course the proposition of corruption, at historical. what are the biggest challenges, tom, as he sets this new, ambitious plan? >> absolutely. you touch on many of the most important ones. tied into that is a question that germany's economic affairs minister bought up. when we spoke to her, she had concerns about whether this will be a level playing field when it comes to bidding for infrastructure projects, or whether chinese companies will begin preferential treatment. take a listen to what she had to say. >> we want to be part of it, german companies want to be part of it, but it is necessary that we have a level playing field with everybody, and transparency, that we know about the costs and the labor and work , everything else. i'm not hearing you so maybe the line has dropped, but what i will tell you is that we also heard from a u.s. representative over here, who also calle

manus is there in the anna. talk oil.ntinue to this is bloomberg. ♪ manus: it's 1:46 a.m. in new york and 7:46 a.m. here in vienna. welcome back, this is "bloomberg daybreak: europe." u.s. stocks pushed through yesterday in the cash market. that's the state of play on the futures. will talk about the oil markets and that's where we are actually seeing a little bit of a rise in the oil price. so we have the movement their last week in the american petroleum report delivered their numbers. here is the chart of the hour. yousef: inventories are going to be in focus as we await the data. you mentioned the api, there was a drawdown last week. ,he forecast more than that your stockpiles have decreased by 2 million barrels a day -- or week. we built a fabulous chart and you can see with been happening, some key technical levels have been broken. that includes the 50 day moving average, the 100 day and the 200 day moving average. research saying these are critical technical indicators of the last year that you can see right here. the other thing i'm watching is what is happening w

manus: let's talk about dollar-yen. even though north korea tested another missile, it is still slightly more risk on. you got the north korean test, the dollar gaining overdone. you will need fresh factors. cable -- this is great. david davis talking about crisis before it began to lay out the plans. . the article was that the u.k. would be prepared to walk away even before the negotiations begin if this bill keeps being talked about around 100 billion pounds. anna: let's keep an eye on that, on the wake of that. european ministers gathering in brussels to discuss the brexit negotiations -- let's get the first word news with juliette saly. juliette: anna, thank you. in saudi arabia, u.s. president donald trump has told arab leaders that the war on terrorism isn't a fight between different faiths. he also called on middle east allies not to wait for the u.s., and to ensure terrorists are offered no sexually. it was an attempt to ease concerns and the trump administration discrimination against islam in the wake of an at

manus is joined by a guest over indiana. manus: a very good morning to you. opec is a little bit like the u.s. congress, he's been flubbing his line for a while. it has an anti-critical impetus to stir action. but they start sufficiently to galvanize the oil market? to slightly extend what they darted decided. the last time they had any impetus to do anything was the november meeting. this one, they just want to show the market were willing to do a little bit more, but so far it doesn't look like will see any additional volume from the market. the uae is prepared to do what it takes. it doesn't strike me, 1.8 really barrels, as doing whatever it takes. >> i think the are recognizing that they don't want to stir up this market too much and make a big jump right now where that the shellup stirring even more work comes back even faster than it already has. it's a delicate balancing act where they want to be up to balance the market, but not just in one day. they want to make it a process that is sustainable. manus: give me the numbers in terms of, everybody talk

vonnie: for more now, let's go to manus cranny, who is in the end up. you happens -- who is in vienna. you are speaking to many participants and advisers. ofn we get a continuation the production cuts? manus this is a coalescing of the thinking here, nine-month extension. opec could post something a little more substantial out of the back. of's bring in a veteran cornerstone analytics. the sun has come out for you. it was pouring a little bit earlier. we were chatting and you said, look, i get that there is a bit of frustration. give me your sense. >> the minister, when he put together the deal in november, it was basically three times as big as what people thought it would be the case. it has effectively take us 45 million barrels for a month is wise -- a month of supplies. there was an inventory built in january, bigger built in march. it was not what they thought to be possible by the time they got together now. they are under pressure to get the price up. manus: could they be shocked? could they get something more substantial out of the bag? are cau

manus: let's talk about the ecb. we're withinonday reach of describing risks in europe as being broadly balanced. mr. gandhi says we are firming with a upswing. your assessment? after a prolonged period of the governing council emphasizing that if you like the risk, work the downside. that remains the case. the pay risk is fading. if you like the risk of deflation, that is fading. ands accurate to say -- what we said in the press statement a few weeks ago. still to the downside but the direction is moving more towards balance. that is a new off position, but it remains -- especially for inflation, which is our core in -- objective. inflation around the world, we have an issue of, how weekly will inflation recover? the real economy is recovering. what we have to see is how does that map into the recovery. at theeveryone picks nuances. despite the choreography of what comes next, for the whole of europe, is it possible it should change? the you see any propensity for movement in the choreography at all? providethe ecb

francine: great job, manus. i know from having done it, it is the most difficult job in the business. we heard from the iranian and the iraqi minister and the saudi oil minister. saying broadly there is consensus. we'll have to look at how the production cuts are extended by nine months. i'm pleased to welcome phillip hildebrand, the vice chairman of blackrock. more than $5 trillion in assets. lways, always a pleasure to speak to on bloomberg "surveillance." how does the world field compared to six months ago? whether it is know growth or oil or inflation, but are we confident the trend is upward? >> yes, not only does it feel better than six months ago but it feels frankly better than in a long, long time. i think this is a whether it is growth period of global expansion. we have the kind of rapid acceleration phase behind us but are now in a sustained expansion phase. it's very important -- it is synchronized. if you look at the number of countries growing above potential, it is very, very high. i would say cl

manu, evan, dana, stand by. we've got a lot going on. you're seeing live pictures from the senate intelligence committee hearing. the acting fbi director, andrew mccabe, he is about to get the photo treatment, those flash bulbs are going to go off en masse very shortly. our first chance to hear from him since the firing of his former boss, james comey. so many questions. we'll be right back. your skin could bounce back like it used to? neutrogena hydro boost water gel. with hyaluronic acid it plumps skin cells with intense hydration and locks it in. for supple, hydrated skin. hydro boost. from neutrogena ...we turn feelings... ...into jewelry. jewelry that tells her she's the best thing that's ever happened to you. in a way... ...that goes beyond words. it could be a piece jewelry designers created just for jared. or a piece we custom made... ...just for you. because we're more than a store that sells beautiful jewelry. we are jewelers. the one, unique gift... ...that tells her exactly how you feel. that's why he went to jared. we asked

he didn't say no to manu when manu asked him that question. let me get you on this, because manu's reporting is also that lindsey graham was talking about, you know, why it took these 18 days between when sally yates made this first warning to the white house and then the "washington post" piece came out, and then the president fired general flynn. and what lindsey graham says is, look, the president himself is very loyal. that's a quote, very loyal to flynn, and the white house needed to build this case. what's your read on that? >> well, first of all, i have a lot of loyal friends, too, from high school and everything else. it doesn't mean i put them in as national security adviser, okay? so, i don't think there's any excuse for leaving him in for 18 days, and most specifically, two days after they were formally warned three times by the acting attorney general, including two formal meetings, they put him on a call with the president and vladimir putin for an hour. and so, it makes no sense to me when you see a foreign power that is trying t

manus: that is your base case. guest: we will get to the end of the year and find out opec has been right, our balances are eia'sr to opec's, the balances are not [inaudible] if we are looking at another year of having a deeper cuts, that could shatter group unity. that would do it. were slow tossians deliver compliance. novak arrived here, the biggest driver of the non-opec, 600,000 barrels is non-opec. do you get the sense that the russians are -- they were making telephone calls saying get ready for a price cut. guest: they are in a commitment for the optics and it is remarkable they did that. they would not sign up to a statement or agreement. a curious thing happened with russian supply. they have reported lower production but their exports have risen, their exports are quite strong and he gets back to this easy and hard compliance. the russian fields, they are not going to want to keep production low. ands difficult to dial up down there field. you will see some slippage from russia but they will sign up beca

that is manus cranny covering the opec meeting. if you want to be that gadfly story he was referencing, check out the bloomberg. mark: sterling falling today and theresa may's party losing ground in the race less than two weeks away. joining us now is bloomberg london bureau chief is emma ross thomas. time. about squeaky bum this is not rude or not he in any way. he would often say it is squeaky bum time and we will get through it. is the squeaky bum time for the conservative party as the polls narrow in some areas 24 percentage points to five today? emma: you could argue that theresa may has been saying that one of the risks to conservatives is that voters would be complacent and bo polls which sh a lead and they would not -- and that polls which show a lead and they would not go out to vote. i will not go to the squeaky bum analogy. the polls were wrong in 2015 and with the brexit referendum. at that time, they were sort of wrong consistently. we did not have a massive shift. talking the pollsters this morning, what they said is

i think the biggest thing, and manu hinted at this as well. last night up on capitol hill, first and foremost, i was the person who had to tell foreseparate republican senators what had happened. ne they weren't aware. the biggest question i got back from them, even those that have since put out statements supportive of the president's action is, why now? why are you doing this? you had a health care whin? a huge foreign trip in a couple of weeks. that can kind of reset your administration. why are you doing this right now? and one final thing, i just spoke to vice president mike pence, who gave an impromptu prmps on capitol hill. and he made clear, the administration has no desire despite their claims there is no collusion, noe evidence of collusion, to see a special prosecutor or a special panel. >> let's follow up on that point. a number of things said by senior administration officials. and one of the reasons they rolled mike pence out this morning is that the president was white hot last night. i'm told he's been hot about this for more t

our senior congressional reporter manu raju is standing by. manu, you're getting some new information about michael flynn. what are you learning? >> reporter: yeah, that's right, wolf. the house oversight committee has obtained a report from investigators who conducted an investigation interviewing michael flynn after he filled out his security clearance form in 2016 and in that -- in that report it says that michael flynn may have misled investigators about the sources of his foreign payments, whether or not the foreign trips, whether or not they were paid for by u.s. companies or whether or not they were paid for by foreign companies. now in this report, it apparently says mr. flynn did not say that these trips that he took, including a 2015 trip paid for by rt, the television network, was paid for by a russian-backed entity. he said it was paid for by, quote, u.s. companies, according to a letter released by elijah cummings, the top democrat on the house oversight committee saying that the committee should move forward and get some more inf

the latest from manu raju on capitol hill. >> reporter: good morning, christine and dave. the fbi trying to reassure the senate intelligence committee that the investigation into trump campaign and any of the contacts that may exist with russian officials is still moving forward despite the stunning firing of fbi director james comey earlier this week. the acting director of the fbi andrew mccabe testifying before the committee saying there is no intterferenc interference. they have enough resources to move forward and they plan to do that. also contradicting the white house by saying this is a highly significant investigation even as the white house spokesperson sarah huckabee sanders said this is not a high priority for the fbi. at the same time, mccabe strongly pushing back of the white house assertion saying the rank and file deeply support mr. comey. >> i can tell you that director comey enjoyed broad support within the fbi. and still does to this day. i can confidently tell you that the majority of the fbi employees enjoyed a deep and positive connection to director

what are you learning, manu? >> reporter: wolf, this information coming as major suprise to senators from both parties. even members on the senate intelligence committee saying they had no idea about this report, saying that president trump may have revealed classified, highly classified information to two senior russian officials at his meeting in the white house last week. even members of the senate intelligence community, like richard burr, chairman of that committee saying he is still learning more information, waiting to read that article when he is back to his office. i talked to john mccain, chairman of armed services committee who said he is concerned about this report. >> turns out, that president trump revealed highly classified information to the russians last week. wh what is your reaction? >> if it's true, obviously it's disturbing, but i think we have to find out more before i can comment. i can't just comment on every news story. but obviously, if it is not a good thing. >> should be part of the in

this is bloomberg. ♪ manus: it is a 7:20 a.m. in london, eight: 20 in vienna. opec and non-opec countries are cheering. the historic deal to extend production by nine months, but crude is trading sharply lower. the market is left wondering, how will they exit this strategy? i sat down with alexander novak and asked him if russia can meet its compliance every month for the next nine months. yes, of course. russia and russian companies, which have taken the decision to adjust production levels, takes this obligation very seriously and responsibly. we believe the value of our --pilation -- corporate cooperation is important. trust between partners is important for us. we value that. trust can be lost in a day. we know that very well, so that is why it is very important for that we stick to commitments and continue building this level of trust. not only do we plan to be conformant ourselves, we urge the other participants to also meet these targets. russiacan i ask you, as being the biggest non-opec member taking the weight, have you had to put more pressure on non

sara murray, manu raju, thanks very much. the head of the national security agency, the nsa, just testified in front of the senate armed services committee on cyber threats facing the united states right now. admiral mike rogers says there is a possibility of cyber capability of some of the u.s.'s strongest adversaries, including russia, that could exceed the united states ability to defend itself adequately. he adds the u.s. needs to be prepared for future cyber interference. >> the offensive side in general has the advantage over the defense. which is why the ideas of deterrence are so important here. how do we shape and change opponents behavior. >> in order to do that we would have to have a policy followed by a strategy, right? >> yes, sir. >> do we have that now? >> no, sir. but the new team is working on that. i want to make sure we all understand that. >> and the check's in the mail? >> after looking at the experience in 2016, which you just described, knowledge of penetration, attribution to a foreign state, going af

let's begin at this hearing outside this hearing with cnn's manu raju on capitol hill. manu? >> reporter: that's right. i just caught him walking in on the door behind me. we do expect him to face new questions about the russia investigation that he announced at a different hearing back in march in which he said there is this ongoing fbi inquiry into these alleged coordinations between the trump associates and russian officials during the time of the election. the question is will he be able to advance the narrative beyond what we already know that the investigation is ongoing. he declined on a number of fronts and last hearing to give any specificity about the investigation. what will he do differently today? democrats do intend to press him on mr. comey's decision last fall, days before the election, to announce an additional investigation into further e-mails, clinton e-mails and something that she blames that cost her the election. i talked to one of the democrats on the committee yesterday. dick blumenthal that said this is an issue that democrats plan to raise repeatedl

manu raju, etvan perez who brok the story. not long after the story broke, it didn't take ong for capitol hill to react. >> yeah, not surprisingly the democrats jumped all over this, john conyers, the top democrat in the house judiciary committee saying it's time to investigate jeff sessions and also other democrats saying as well, it's time to have at least a hearing to get to the bottom of this. i can tell you, as we were reporting on this story and talking to members on the house and senate intelligence committees, they do want to talk to sessions about not just his meetings that he had with the russian ambassador, that he failed to disclose not just in his security clearance forms but also during his judiciary committee confirmation hearings, but also his role in the firing of james comey, even though since he had recused himself from overseeing the probe after he belatedly disclosed those meetings to the judiciary committee. a lot of questions left for jeff sessions. tonight the justice department saying he did not do any

so manu raju is back on the hill with the senator herself. manu, the floor is yours. >> reporter: thank you, brooke, and thank you senator for talking to us. i'm sure you were surprised like virtually everybody else was. when were your doing at the time and when were your reaction? >> fs walking down the street and got the e-mail. and then just bang, bang, bang, bang keeps happening. i think everybody wuss shocked including director comey who evidently just last week had gone into the justice department asking for more resources saying he wanted to push this investigation forward. i think believing the just s department was going to support him and help make that happen, an investigation that would help get to the bottom of the issue of donald trump, the trump campaign and the russians. >> reporter: did you think this was a coverp? >> i think there's just no doubt given the typing. the reason comey was fired is that donald trump wants to cut off any investigation into any connections that he has with his campaign and connections to the russia

look at manu ginobili who 39 years old he says no. spurs win 110-107 lead three games two and could wrap it up on thursday in houston. >> thrilled with the victory. again either team could have won the game down the stretch. we had great shots they didn't follow up. finally danny did what he did. manu had a great block in the end. in they had to step up andthey got it done. we didn't get it done. it's a long ways from being oefrp. we'll final our energy. houston is another story and hopefully we'll back here and try it again. >> great game. >> all right thanks larry. >> coming up tonight on obstacles at 11:00 punches fly aboard a plane, you will hear from a bay area man stepping to help break up this brawl. >>> and the dna of a girl found in a casket tonight the erie twist on abc 7 news at 11:00 on channel 7. >>> and extra specialness from the zoo. >> newoter pots, two girls and boy. he zoo keeper says rose is doing great job taking care of the pups. they're still nursing but moved on to solid foods like fish of course. >> that's fun.

>> all right, manu. thanks very much. and the first meeting between president trump and russian president putin, that's apparently set after a face-to-face sit-down between the president and russia's top diplomat, who had a bizarre reaction to the firing of james comey. we're live in moscow, next. (voiceover) if your child is suffering due to their lack of reading skills, if you've tried tutors, learning centers, or expensive programs, and seen little improvement, then it's time to call the usa reading clinic. its effectiveness has amazed both parents and teachers. traditionally, students are taught letters then words, but they aren't trained in the mechanics of reading. the usa reading clinic system is a personalized software technology accessed right from your home computer that can help develop your child's proper neural pathways so they can finally understand and comprehend what they are reading with excellent fluency. many students start seeing improvements almost immediately. call now to find out how the usa reading

let's begin at this hearing outside this hearing with cnn's manu raju on capitol hill. manu? >> reporter: that's right. i just caught him

manus cranny, to you. manus: globally, equities are making record highs. have apple, facebook, the fed and the jobs report swaggering in equal measure for attention through the week on what could drive the market higher or leave a soft. the shanghai composite, you can see a little dip. question about the data. manufacturing dropping orders and exports dropped. still in expansion area territory. the pboc weakens the yuan for the fifth day in a row. the longest run of drops since november. in european equities, joining that course on a global basis. financials bid, paris at the nine-year high. toring if macron succeeds power, helping the banks. financials are up .3%. energy up 3/10 of 1%. we will check in and in terms of oil majors. exons, chevron, hotel and now bp at a nice comfortable beat. has bp done enough to allay concerns? one is and one is the gulf of mexico. depths ofinto the earning season, profit growth in european companies looks to be the strongest in the third quarter of 2010. that is leading to a raft of upgrades in the markets. reporting earn

manus cranny, thank you so much, in vienna. have three interviews telling me that vienna doesn't matter. when does oil matter for opec? when do we have to get to the point to figure out if opec is still a cartel? verynie: that is a interesting question. you'll back to geopolitics. i am not sure i can answer that, tom. it is important to realize if you did not have the last cuts the oil price in europe would be much lower. you have structural trends against the oil price. if you take solace of the next 25 years, the share they will take in terms of added capacity to electricity production in cities is absolutely massive. forou look at ent environmental and social governance, which is gaining traction, 7.5 trillion of assets managed around the world are asking for energy. i think you have structural are against royal securities that are important to take into account. tom: let's pause to look at the images. you do so much better at this than i do. i believe it is going to be a photo op. he was the president going to shove out of

and manu raju in his reporting always bringing it to us. paul, let me bring you in. on the most basic level, because i know it can be complicated, what does pleading the fifth on the part of michael flynn mean right now? >> well, it means that he cannot be compelled to testify under oath before a senate intelligence committee. he may sit in the chair. they probably could get him that far. >> right. >> but then he will assert the fifth. they cannot compel him to give oral testimony. now, this is a privilege that protects you from being forced to testify. it's not so clear that you can protect documents, personal documents that you may have. so, you may see a fight here as to whether or not the senate committee can force him to produce documents or whether they may be protected in some way by the fifth amendment as well. >> and that's an interesting distinction, because part of manu raju's reporting is that the intelligence committee had asked him to produce all records of his communications with russian officials by this wednesday and that he was expected to, it appea

for that, let's go over to manus cranny. manus? manus : we're struggling to get clear direction. may 31. the stoxx 600 has rallied .8% this month. up from four months in a row. this is the longest winning streak on the sox 600 since 2013. in average in may we add about 1.5% in value. on average in june over the past four years, we have lost nearly 40%. is our run almost done? 90 billion euros worth of equity value has been added. larry fink says it will grow faster than the united states of america if not faster. consumer staples up .8%. you're seeing a little bit of a mixed intonation of n the market. the pound is down. the pound is having problem. this is the bloomberg pound index. the chart you want to go to. down 2.3% overall this month. the skew on the pound is one to the downside as we get the types called this morning showing that the conservatives could lose as much as 20 seats in the general election. labor could garner 28 additional seats. macquarie are scathing of this poll. we have pluses and minuses in terms of belief on the poll today. two-week volatility rising ove

let's go to our senior congressional reporter, manu raju. manu, what are you learning? >> well, wolf, actually, this turns out to be a bipartisan invitation. richard burr, the senate intelligence chairman, and the vice chairman, a mark warner, asking comey to testify in a tuesday hearing next week. we do not know whether or not the former director will, in fact, testify, but we know that invite has been extended. and of course, this would be rather dramatic appearance. this would be the third time that he would appear before a congressional committee if it does occur. and if it does happen in an open session. and it comes as concerns have been raised by not just mark warner, but also richard burr, about the firing of james comey, the timing, and the reasoning behind it, and as richard burr said last night, he -- he believes a firing raises more questions and confusion of an already-difficult investigation that they're launching into russia and the trump campaign, something that has actually been going a lot slower than a lot of the people on the committee would like. so

manus >> thank you. merkel gave up her strongest indication yet that europe and the united states are jerking apart. speaking at a campaign rally in munich, after the g-7 summit merkel suggests that reliable relations forged since the end of world war ii are coming to an end. the time in which we can fully account on others is almost over as we have experienced in the past few days. that's why i can only say we europeans must rely to take our destiny into our own hands. in french it with the united states. in friendship with great britain. also with russia and other countries. our very own matt miller joins us from berlin. well done, great reporting. some pretty strong words from chancellor angela merkel after what some would say is a challenging g-7. it must have been some very vexed and anxious moments behind closed doors. i think the animosity started even before the g-7 leaders rather in sicily. angela merkel met up with president obama on the day before he was to meet donald trump on his first forei

manus: you were clear that is our mandate, along with full employment. you mooted the discussion around that. thethis is a little like cpi data, a little bit of a atn -- the wages stay 2.5%, does that muddy the path to a higher land of rates for the fed. normally, you would hope wages would be growing in the 3% or 4% range, and two, plustarget of productivity gets you to 4%, i am not sure which one dominates that. they say that it was difficult to find workers with the appropriate skills. you would think that would lead to skills being bid up even more than that. manus: it just hasn't happened that way. charles: i am hopeful that it will move up. i think a resource slack has been eroded quite a lot. we are probably at 4.4%. arguably, we are at full employment. juliette: you are watching "bloomberg best," ♪ juliette: you are watching "bloomberg best," i am juliet. it has been another busy week of earnings reports from companies around the world. quarterly results for disney. >> a little beauty and a little beastly, i think for entertainment giant disney

what's going on, manu? >> you know, it depends on the member. this, clearly, is a piece of legislation that is not -- is troef controversial. it's not very popular in a lot of members' districts, not in some states. the senators are actually re-writing the house plan. the party is deeply divided over this issue, a central campaign promise, that they said they would deliver on, dating back from the passage of the affordable care act in 2010. and now this is decision time, for the party. so it's a tense time on capitol hill, where they have to make some key decisions, as they get closer and closer to the midterm elections. and that's going to be harder and harder to deliver on this central campaign promise. and that's one reason why you're seeing some tension. but nothing like we saw in montana tonight. >> absolutely ridiculous. you have some exclusive reporting on attorney general jeff sessions. can you bring us up to date on what you have? >> that's right, don. the justice department acknowledged tonight that attorney general jeff sessions did n