How he was able to win his first major after nearly two decades in so many near misses. Have a look at where european equities trading. Where 30 minutes away from the end of the tuesday session. Stocks were up and then down. They are both down by 1 . Market, although rising against the u. S. Dollar today. Im not going to say were let currency. We are going to talk to jeremy and just a second. Yields are increasing in spain. As you can see, haven trades are benefiting. We have a wonderful chart today showing the volatility and how its increasing. Have a fewr one, we weeks to go before the french election. Avestors are preparing for shock in swings. There been rallies for 10 consecutive days. That is the longest since 2011. It overshadows the increase. Vix, itease and in the is half as much. We have a volatility index. Its increasing before the french election. Market complacency is given way to extreme cautiousness. The spread between one month implies volatility closing at a record high yesterday. We are at a record high today. Nearterm risk is subdued. The focus is on the probability of Marine Le Pen it winning the french election. We have some breaking news on the president. Vonnie we have headlines across the terminal. From the ceo meeting with the president , he is addressing the ceos, they come from five different industry groups. He tells them job creation is at the top of the agenda. Production has been punished. He is going to reverse that. Many of theng doddfrank regulations. There could be streamlining and were going to reduce taxes. Lets see how markets are faring. Looking at a pullback for u. S. Stocks. We have the nasdaq down by half a percent or more. The nasdaq had been down 1 . Continuation of the volatility that weve been seen recently, we usually see some of that today. The major averages are on pace for their first day since march 21. 2 , is down 2 , down about on pace for its worst day since march 21. Investors are getting a bit parish. Behind the irish act 70 are two things, apples and chips. First we have qualcomm. It is down about 2 . Strikingis is qualcomm back at an apple lawsuit. There is some nasty commentary between the two companies. Team and heg our reiterated this morning the idea that the sector has been on fire, up 80 of the last year. Its only a matter of time before the valuation will unwind to some degree. We will look at the bloomberg. This is the stock of that chip index. This is the. Com bubble. We see the just recently the stocks in up to those levels and are starting to ram down. Evaluations simply cant be held at these levels. We could see a correction down. Lets take a look at apple, on pace for its first five day losing streak since the election. It is down sharply here today. Shawn harrison just told me he thinks it is competitor base. There is likely going to be an iphone delay. There is that nasty exchange with qualcomm and that is creating some pr or headwind for apple today. Lots of eric and uncertain activity happening in the u. S. Market. Mark were going to chart with our just chat with our next guest about that. Geopolitical tensions are rising over the situations in north korea and syria. Joining us is jeremy stretch. Good timing. Good timing. There is the chart. How high does the yen go . Jeremy it depends on the geoPolitical Risk. The fears of an amplified in the events last week. The rising tensions in the korean peninsula, for now, it seems to be the case that the path of least resistance is for the yen. The euro yen is the currency. Mark can i show this wonderful chart . This shows the 200 day moving average. The euro is breaking below that. E have trend lines from brexit that is pivotal. Jeremy when you look act to the peaks in september and october and then get back to this 115 level, those the numbers we will be looking at in the short term. There is lend Political Risk it is been instilled back into the euro. We see that reflected in those spreads, pushing wider with volatility showing. This includes the president ial process amplified to levels we havent seen since brexit. There is a lot of uncertainty. The euro yen is one way to play that. Sterling yen is another way. Another is breaking up over the moving average. Investors aree, clinging. Mark we just show this at the top of the hour. Work investors becoming complacent, even a couple of weeks ago . Everyone is probably guilty of that. Havent we learned our lesson . Jeremy we are looking increasingly at that first round. We see the margin of support for the individual candidates narrowing in terms of the differentials. We are back to discussing the validity of the polling data. It will deal with voter turnout and voter apathy. There are subtle nuances. The two leading candidates were moving on to the second round. We thought we would know the result of that relatively easily. Aree are scenarios that less explainable for the markets to this cap. Vonnie as you were speaking, the 10 year yield went below to 30 again. How much are rates plane in the movement of sx question mark jeremy there is a flow through between the two. I was talking to our rate strategist. We were discussing the fact that this has closed between the 228 and 230 area. We could see 10 basis points lower. We are seeing some crossover in the bond yield. The u. S. Tends to drop below ecb yields. There are a lot of crossovers here. The fear factor is leading investors to come back to the safe havens of bond markets. That is leaving flows. Uncertaintyr the that is impacting all markets in the current environment because of the uncertainties unleashed in the wake of the events in syria. Vonnie are there trades that you like question mark we are going to have to go to the president of United States and the white house. Thats in easy job. Such an easy job. Its the easiest job of anybody in the government. At the top of our agenda is a creation of great highpaying jobs for american workers. We have made a lot of progress. You see the numbers. Weve created over 600,000 jobs already. Its going to start catching on now. Some of the things weve done our big league and their catch them. We have created 600,000 jobs. Yesterday, toyota announced it billion into1. 3 its georgetown, kentucky plant. Its an investment that would not of and made we did not win the election. We have a lot of work to do. We have lost one third of its manufacturing jobs and our business taxes are the highest in the world. It is the single highest tax anywhere in the world. We have punished production in america and rewarded companies for leaving our country. We are going to reverse that. We will reward companies and give them incentives. Nafta is a disaster. Its been a disaster from the day it was devised. We are going to have some pleasant surprises for you. My administration is taking stark action to unleash job creation. We have signed dozens of bills and executive actions to demand production. We are going to be very careful on the environment. Its very important to me. We have allowed a lot of companies to go back to work. They were being restricted. We have unleashed a lot of companies, especially right now in the energy sector. You can see whats going on there. It was impossible for people to do what they had to do. Now they can do it. We are working to modernize our economy and harness the potential of women in the workforce. It is crucial to our economic success. Economic confidence is sweeping the nation. You saw the new survey that came out. Its the highest its ever been. 93 of manufacturers are optimistic about the future. That is a 27 increase over two months ago when it was also high. Its much higher than its ever been. This is just a beginning. We are going to reduce taxes. We are going to eliminate wasteful regulations. The bankers in the room will be very happy. We are doing a major streamlining and perhaps replacing it with something else. That will be the minimum. We are doing a major elimination of the her read this doddfrank regulations. Buting some obviously, hitting rid of many. We are going to put aliens of people back to work and the banks will be able to lend again. I see people all the time, Small Businesses that are unable to borrow. They had great bankers. Now they cant rop. We are going to let the banks loaned the money and they can build their businesses. Insights, wep and will use the private Sector Innovation to drive job creation and reform government. We have a Computer System in this country that is 40 years old. When you hear we are hacked, we are easy targets. ,ne of the things we are doing we are working with a wonderful woman from ibm and others. Many others. I love your computers. We are also looking at others. We are going to have a massive program to modernize and get brandnew equipment. The cost of maintaining our computers is ever so hot its not even a believable number. Ive heard 39 billion to 89 billion a year. Keeping our computers updated and running. I think we can buy a new system for less money than that. I hope so. I want to thank everybody for being here. Most of you are really the top. I want to thank my friend jack welsh for being here. Ive known him so long. We did deals together. The other one on park avenue. We did Great Success together. I want to thank you. Youve been a special guy. We will get down to business. They did before the media leaves, we can go around the room and introduce. We all know steve. I want to thank you for putting the group together. That wenk we should say had an interesting day so far. We divided into five groups. With each of the five secretaries the president mentioned. It was an open discussion that secretaries presented what they are trying to achieve. We have several people from the Forum Meeting with them. They were making comments on what they were doing to make jobs better. We are looking at trade, education, workforce development, energy, the environment. All of these things are really important. Focused, the people in the administration are focused on working together. Hopefully we will have some good outcomes. Dallas President Trump addressing his ceos from five different cabinets and agencies. You heard most of what he said there. He is talking about cutting doddfrank regulations. He also told ceos a very pleasant surprise on nafta. Lets bring in the white house. Did you hear anything new from the president . Apart from a change in personnel, there was a lot of repetition from the last one. I think the president and some of the ceos present, including mr. Schwartzman, restated what has been the objective for from the beginning. They talked about cree more highpaying jobs. They talk to it getting manufacturing it going in a way that it hasnt recently. Getting there. Ut there is only one thing President Trump has done in a significant amount and that is cutting regulations. Is that a through executive action. He has used a Congressional Review Act to fasttrack through congress. Is stuckat, his agenda in a malaise. We did not hear how he is going to put forward. He mentioned doddfrank. He talked about changing parts of it. We dont know what he means by that. On taxes, he talked about reducing corporate taxes. His tax plan is not evident at this point in the is going back to the drawing board. , they are reckoning formulating a tax plan. Nafta was a major theme during the campaign. Nafta is a bad deal for american workers. Its unclear what hes going to do next. This was a listening session. Hopefully they got a lot of ideas. It remains to be seen what they are going to do with them. Tok we want to get back jeremy. Very quickly, i want to look at the dollar from a sterling perspective. We got near record shorts. We are still it 2. 3 . Jeremy its very true that you been stuck for some time. I think the story is the market shortselling view for a considerable amount of time. Can we unwind . Im not sure we will just yet. I think we may see that move higher in the latter stages of this year. I think of the context of the next 24 hours, weve seen inflation holding. The inflationary pressures are continuing to build. Be 2. 67. D easily earnings numbers will stagnate margaret we will see negative earnings growth. Thats going to be the real defining factor. Term, that will prove very challenging. We need to look at some of the other points. Thats coming back to currency. Lets talk about couple of commodity currencies. Justified . Arehowing how the g10 working. Yes trillion dollar is the secondbest former. The Canadian Dollar is languishing. Are those positionings justified . Jeremy i think there is an anomaly there. I think they would like to see the Australian Dollar cheap enough. This is despite the fact that the Economic Conditions are far better than most people would receive. Reason that context, the that could move lower, it is susceptible to the weakness in the iron ore price, which has moved substantially lower. The labor market in australia, underlying pressure is on the downside of the us trillion dollar. Technically, its getting oversold. Think thats the downside. Thanks for joining us. Mark coming up, were going to talk to Sergio Garcia. You know him. The business of golf. His first win in more than 70 majors. What a weekend it was for the spaniard. This is bloomberg. Mark this is Bloomberg Markets and lets get to some big m a news today. Theirre going to combine train operations. We are covering this developing story and join us from our frankfurt bureau. What is the industrial logic . There this makes sense. It requires a lot of capital. Joining forces does make sense. We have seen a clear pattern over the last couple of years. China formed the Worlds Largest producer. They are winning contracts all over the globe. Snatch up and italian. There is a combining of those players. Mark are the regulatory obstacles . Eyk and he is any losers . Yes to both of your questions. There stockompany, is down considerably in the news. Is of the apparent losers the rival to siemens. We saw potential operations. Those apparently failed. We have seen Analyst Reports saying siemens will merge. Are left to the sidelines, they are a complete loser if siemens and bum party a join. The industry is already consolidated. Parts of thee german capital of berlin. I cant totally foresee regulatory scrutiny. Also, we talked about obstacles for an Election Year in germany. I would think a combination of both players would at least have some potential for layoffs. That doesnt really go down well in germany with strong labor unions. You want to address those issues clearly. Mark thanks for joining us and filling in on this developing story. Next, Sergio Garcia on the business of golf and his first win in more than 70. What a story that was a we can. Where european equities are as we had to the close. This is bloomberg. Attention homeowners age sixtytwo and older. One reverse mortgage has a great way for you to live a better retirement. Its called a reverse mortgage. Call rfree information kityour with no obligation. It answers questions like. How a reverse mortgage works, how much you qualify for, the ways to receive your money and more. Plus, when you call now, youll get this magnifier with led light absolutely free when you call the experts at one reverse mortgage today youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home. And heres the best part. You still own yohome. Call now take control of your retirement today once and for all four sergio. Vonnie it never gets old. You are watching golfers Sergio Garcia winning the masters sunday. It was his first major title. Wasas 18 years after he first at augusta. The parallels are many. He is joining me now. Has the euphoria at one off yet . Sergio it has calmed down, but read nt worn down yet my next will be the players championship in four weeks. A week andably take a half off. We will start getting ready again for the players and once coming later in the summer. Does part of you want to relax . Sergio a part of me feels like i have done it. I am so proud. Not only for myself but all of my people that have been with me for so many years. Fiance, i am not running back and saying i can relax now. I dont want to end up. I want to keep going. This is just a beginning. Its an amazing experience and an amazing feeling. Eel like i can improve it improve. Vonnie i do want to bring you back to the 18th. You hit a beautiful shot heard there is no saying he is going to get a par. What is your psychology . Playu go for aggressive and try to beat him out on the 18th . On 18, and regulation he had a pretty good shot. I got a nice bounce and hit it very close. I was in the middle the fairway and hit a good drive. I was still being aggressive. I knew he could make birdie. I have to give myself a shot at dirty just in case. If he doesnt, i will have a winning putt. When we got to the playoff, we had to chip up and i hit a really good drive. When we werepoint in the same spot, you still need to make birdie. He can make four. You dont want to think for is going to do it. He makes par. About everyone talks golf be a game against yourself in the course. Youre not really playing other people. At some point in the day it had to turn into match play. Togio i think when we got was the or 14th, it guys that were plus plus on the leaderboard, they were two shots, with one play of it finished six under. We knew we had some holes come in and we could birdie or eagle. It turned into a match. Vonnie does that change your psychology when you are playing . Mark you still play run round. Sergio you can focus too much on what he does. That, i still have to do what feels right for me. Playing, youre never going to be as smooth or as aggressive. It can turn around badly. Commentators say you are an artisan golfer in a lot of ways. Is there a difference . Were you ever change . Are you ever tempted to become aboutethodical and less your wits . Sergio today i do that, i will quit playing golf. For me, the most important thing is to know what works and to gear. Ou have that extra gear, play with it extra it can be very dangerous. Feel player. Of a if i lose that feel, you never know how it can work. The game has changed and the equipment has changed. Is that a good thing . Sergio i think its good. Technologyort, the improves. At the end of the day, they are going to help your game. Im not saying my game myself. The game we play. It makes it easier for the amateurs so they can enjoy it a bit more. Vonnie what about bringing down the rules. Lookingl association is at rules, they want to make it easy for people to get out of workers and sand traps. Sergio i think there are some rules that have been there for so long. They kind of dont make much sense anymore. At the same time, theyre trying to make rules to make game faster. We have all day to play. When an amateur is coming up and playing for fun, they have to work, they dont have all day to play. Its nice for them to be able to play a little bit faster. Obviously, the curse has been broken. Are you going to do this again . Sergio i would love to. Vonnie have you stopped playing for second place now . Sergio i always try to play for first. Sometimes, it doesnt happen. One supporterwas and home watching you. I think we have them here. He is one of your best supporters. He is with us. Be at the players championship in may. Hes going to give me a few tips hopefully. Thanks to Sergio Garcia. We will send it back to you. How do i top that . What a wonderful interview. Ago,re up a few minutes then u. S. Stocks opened the day lower and european stocks followed them down. This will change for the second day. We will reach a high in 60 months. This is the stock story of the day. Earlier, shares have their biggest decline since 2000, falling 36 . Apple probably will have news he says their strong evidence that apple is developing its own Power Management circuits and intends to replace the chip made by dialogue. Apple is dominating the supply chain. Gets 74 ofhip acre its sales from apple. The sharessitive is are 36 lower. They are down by a mere 16 or so and this is the chart we showed a little earlier. The euro is falling for the 11th second and consecutive day. Its also nearing trendlines. Connects to lows since the brexit vote and the drop below that could pave the way to the gains. This is the day after exit. The yen gained support amid clinical tension. As we approach the french president ial election, the first round is under two weeks. The big data piece today in the u. K. , inflation stayed unchanged. To core rate fell from two 1. 8 . A lot of it was the timing of easter. This has been due to sterling strength and rising fuel costs. Troubling piece of data was from the prc. Retail sales fell the most in six years in the first quarter. If wages dont keep up with inflation, real wages are squeezed. That could put further pressure on the consumer. That is a driving force behind the economy. Abigail we have a lot going on. One stand up today is the yen. It is up more than 1 on pace for its best day since march 15. We see this against the dollar. The dollar is down 1 . This tells us that investors are seeking safety. We have volatility. What this says about the yen being hired today is how much it is on the year, up 6. 1 on the year. Its on pace for its best year since 2010. As is been happening all year. The smart investors have been seeking some sort of a haven asset class while that figure out what happened with the volatility. We saw something similar. All way back in 2007 and we take a look at the bloomberg, on bottom we have the s p 500. The top is the end. In 2007, as the s p hits record high at the time, the yen was one of the top currencies, up 6. 5 as investors seek that safety. We did see stocks slide. The rally we see for the yen could he and early tell that we could see volatility ahead. We have one other chart. The vix is on top. In white, we have the s p 500. There was a divergence and we saw a reconvergence as volatility spikes. The same thing during the financial rices. Look at this huge gap. Here could be some signs that we could have a pullback for stocks in the days, weeks, months ahead. Mark thats a great chart. We will spring into action. He loves the good flash crash. Insees these violent shifts the forex market as an opportunity to profit when prices bounce back. How risky is this . Thank you for joining us today. From Storm Chasers to flash crash chasers, how does mr. Lieberman do it. He was a famous currency trader at jpmorgan before he started his own form. Firm. Is going to start his own hedge fund and look for clients. He went to tel aviv. He found some elite Israeli Military and he said come work for me. Mark they didnt have much market experience. That it no in the about financial markets. They had high technical skills. They were in the Cyber Intelligence union of the military. They knew their way around technical things. They didnt know what a bid or offer was. Mark its becoming more prevalent, isnt it russian mark this foreignexchange market. We see more and more examples that these flash crashes, this for the likes of isaac lieberman, its the nectar, isnt it is mark the more he can study it and the more money he can make it this doesnt happen often. Postmortem anda he looks at what happened in the markets and what he did and what his firm did to perform during that event. During the pounds flash crash, he looked at 500 million and 92nd. Mark thats quite incredible. The market is changing, isnt westmark there are new players. What role do these types of companies play . How important are they in the market . Crisis, the financial thanks but hamstrung by a lot of regulation. Theyve been less willing to take risks. What happened is you have new players such as a relatively small player and some other big names like citadel or virtue trying to make markets. They are edging in on the banks chair. The market is changing and its interesting because what i think its doing on a smaller scale than some of these other firms is been very successful and. Mark what a fantastic story. Thank you for joining us today. Its a wonderful story. Vonnie its a whopper. Thank you for that. Trump up, president meeting with ceos and telling wall street he will do some major streamlining of doddfrank and we are heading to washington to get the latest. This is bloomberg. Mark live from london and york. Vonnie this is the european close on bloomberg market. Job creation was the big headline from the president s meeting with various ceos. Of top ceos. Er david westin has been following it all. He joins us from the white house. You have a very special interview,. You might be of the glean some insights the in his ministry ministration will go on. David we are down here at the white house on a beautiful spring day. Toht now, we will be talking Steve Schwarzman about what went on in the meeting and what messages that he take away from the present. What messages the leadership trying tos that send on taxes. He said he is going to cut their taxes lot. He said there might be some good surprises coming on nafta. There may be some trade news going on. What will be different about this meeting . We did hear from these ceos the last time around. Are we just getting closer to policy framework . David i think its fair to say that time is wasting. He has only been in office 80 days. As we can see with syria and north korea, how fast can they get the tax plan put together . He wants it by the end of the calendar year. Real question is how much time as he have . How fast can he move . Five secretaries and agency heads, one of the people were hearing from is jack welsh, the former ceo of general electric. Anything here in terms of gender management style . David jack is an expert on leadership. He was a greatly are its fair to say. He has but a trump supporter from the very beginning. We talked about him over a year ago and he was road trump. We had a chance to talk to jack. How is he leaving . What advice is he giving the president . That. we cant wait for david is at the white house. We have to tune in because coming up, Steve Schwarzman will be with david. With theeting president in all of those ceos. That is coming up around 12 00 eastern. Mark a new contestant on battle of the charts. This is bloomberg. Mark its time for battle of the charts. Vonnie were going to look at some of those charts today. This is what they mean for investors. You can access these on the bloomberg. There are thousands of them now. Itsin new york, bloomberg. Were going to go to you first mark. If you missed the, iron are is or is in a bear market. Content. Its a long expression. Its meaningful. Its a benchmark. We down by 21 . It was nothing like the procession upward from the record low in december 2015. Iron ore rose by 147 . This is driving a shift toward lower quality iron ore. It raises the prospect of a drop into the 50s. Thats a drop of another 30 . Arclays, there has been procession of negative outlooks from Mining Companies and banks. Australia says it wasnt sustainable. Another potential could undermine a crisis. Forecast . He parish saysal economics in march there are doubts about chinas demand improving. A retreat to 45 by the end of your. What happens next . See the chart. Vonnie i missed your presentations. That one my heart. Alex what we have here today is a chart of the s p 500. You can see it on the bloomberg. The a chart of the s p 500 2 million study applied. The trend can see in the upper panel is a study that blends several technical trend concepts together to color code a securities move in as you can see, since the trump when, we have rallied in the s p. That is the right green on the chart. Recently, we have struggled to hold. It has started to paint a darker color and some of the more neutral colors such as yellow. The lower panel is the 2 million oscillator. In a similar chameleon oscillator. What you can see it as it should not go into negative territory. It shouldnt go oversold with the healthy trend is in place. You can see it has most recently gone negative in state negative. It is finding resistance at that zero line. Maybe a continued correction western mark correction . Vonnie im sorry. Chameleon its a bear any day. Mark any one that rings in chameleon oscillators, well done alex. Vonnie it wipes the board clean. Congratulations. Coming up, an interview with Steve Schwarzman. He leads the ceo panel with President Trump. Coming up tomorrow morning, a conversation with Christine Lagarde live from brussels. Look for that at 6 30 a. M. In your. In new york. This is bloomberg. Vonnie it is noon in new york. Welcome to number markets. Bloomberg markets. From bloomberg World Headquarters in new york, we will you from washington to San Francisco and moscow. His are the top stories on the bloomberg. Geopolitics, janet yellen is weighing on investors minds. Stocks are sliding. Apple is the biggest waste decline or. Come up this hour, david westin will be speaking with Steve Schwarzman and jack welch from the white house after their meeting with donald trump. Later, we will have the north american debut of the lamborghini. It just smashed the record