Souranking retail turned sour for the powerhouse. Mark how european equities are trading right now, what a session it has been. Look at le pen and macron runoff. The feeling among investors, macron will emerge victorious in the second round. Highest level since 2008. Biggest leak today since 2012. The italian stocks are rallying. Paul ryan inc. Rallying today as well. 1. 2 percent up today. The fair was if le pen still wins, she takes france out of europe. Today. Re rallying periphery yields are falling and core yields are rising today. Not a haven and not necessary. Of one million related to the French Election. Line thethe blue white line versus the blue line, the eurodollar, one month implied volatility. The white line is falling more than the blue line. That is a sign that risk sentiment has improved markedly following volatility in the euro , a Percentage Points, five Percentage Points against the dollar. An investor an example of stors not just about france today. Resilient performance in markets like china and india would allow the Dutch Health Care provider to meet its sales target even with uncertainty surrounding you to delays ending. A sharp focus on growing health care company. Confidence rose to its highest sentiment at almost 50 years less might last month. The economy is expanding at its fastest pace in five years. That was last year and since then, underlying expectations for a continued robust performance as we move on to the ecb later this week. Looking as it is here . Indeed. I was going to use robust to describe what we are seeing here in terms of the rally. 1, biggest gain since march the last time all three major averages meet simultaneous record highs. Gain going seen a 1 back to march 1 on the relief rally attitude we are seeing today. We have got old momentum names that are gaining. A life of microsoft, alphabet, and facebook. All three of these are records today. The socalled blue chips are helping to lead the banks are rallying as we see bond yields rise today, treasuries, socalled safe havens, people coming out of them. Bank of america, citigroup, and wells fargo are all higher. As we see volatility fall today, there are in big indications many are hedging against a volatility surrounding the French Election, others are saying we think it will fall. Inflows and outflows. And thisled the x iv is the First Time Since 2013 that we had seven weeks of out outflows, which again implies that at least some folks are looking for a drop in volatility following the French Election. Mark the day after the first round of the president ial elections in france. Underscore in the differences between longtime opposition politician Marine Le Pen and newcomer emmanuel macron. Peny advisor to the le campaign. Getting a little windy but still a Beautiful Day from paris. I am joined from with Marine Le Pens advisor. Not the only one of course. Of course. Expandshe planning to beyond her base . Much we have to actually do to expand through the base. A lot of voters who chose to vote are patriots and very the two contenders, she definitely is the one who carries the french flag. Proeu and proglobalization in its they form so most will come to us. Is not an intention to go after them. She will be who she is and what will make her when the election is defending core beliefs and those are shared by a vast majority and this is what will win her the election. Has not endorsed a specific candidate, will Marine Le Pen as well . She is not going after anyone. North korea and france are the two countries in the under the communist label, just a joke, but anyway of course, just a joke. What i was saying was a lot of with thes are weary fierce form of globalization which imposes cutting jobs in western europe, to create jobs. Lsewhere the wealth thing stripped from the homes in the middleclass and democracy. The feeling a shared in france by a lot of people. Choice, no doubt, they will go with le pen because it she has promised an economic promise to offer protection from globalization. If you look at the numbers, le pen had 7. 5 million voters. Even very high, still at 60 , she would need an extra 4. 2 million voters. Howd you get the 4 Million People in . You have to do the math. Voters,ook at 20 of maybe half of them choose le pen in the second round. Them, look at 4 , most of because the stance is very close 70 of french people are opposed to leaving the eu fed is another question to will finish answering your first question. And a chunk of voters, they were putting Marine Le Pen at 36 in the second round. If you at the 15, we win. If you add what was measured by Goldman Sachs, two thirds of that vote at least go to Marine Le Pen and that vote is important in the runoff. Somewhere between 20 and 30 . You should do the math, we win this one. Nexte will debate wednesday. Father was refused to debate with. One thing, i would not want to be in macronshoes during that debate. Le pen is a great debater. Why is she so great because of her charisma and personality, course. Because of from the getgo. If you look at the study, it shows globalization in its current form raise the revenue of 80 , workingclass in asia, and the middleclass in western democracy. So revenues stagnate. Theeans we strip from middleclass of western democracy, the 1 wealthier, the wealthiest even wealthier. It is done at our expense. Will be assuming she would win in the businessow come the committee does not understand your message . I spent a lot of time and i it does you one thing, not make sense in economical terms. It is a political process to force convergence, theyll know that. They say the transition will take handle it with a lot. I understand that reaction. The french will decide whether the french want to stick in the they will euro and decide. Le pen said i will respect their choice unlike what was done 10 years ago. Mark great job. Courtney donohoe is here with more. Good morning to the Senate Democratic leader chuck schumer, for its first 100 days. Needs to start keeping some of his promises and said mr. Trump should drop attempts to repeal obamacare and try to stick instead. It is a dealbreaker for the democrats. The white house wants money for its controversial Mexican Border wall. Democrats are hoping the president will break will blank a partial Government Shutdown would start on saturday and that is the president s 100th day in office. In the u. K. , Prime Minister theresa may has hired a former Obama Campaign manager for her campaign. The unexpected victory two years ago. Theresa may has also hired a political strategist. Global news 24 hours a day in more than 120 countries. This is bloomberg. Vonnie thank you. Shares of Goldman Sachs have been under pressure since last weeks disappointing earnings results. Fixed incomew traders got burnt. That is next. This is bloomberg. Mark european close in 14 minutes. Vonnie i am vonnie quinn. Right now, lets get to one of the most read stories on bloomberg today. After an unexpected week quarter for Goldman Sachs fixed income trading, Goldman Sachs discovered reasons as to why tied to coalburned mining giant and a struggling retailer. One of the writers on the story joins me now. Retail and coal mining, there is a supply a surprise. Why is goldman affected inordinately as opposed to the banks which surely had similar positions . Exactly. We know these Energy Companies in general have not done well. Banks have trading depths as well. They take these positions when they need to. This in a wayne we have not seen with other banks. The different traders take a view and if they have a view and it does not go the right way, they burn them. In goldmans case, Peabody Energy was one of the names and we were looking through and i was talking with people and Goldman Sachs showed up on this filing in great size. Most of the investors involved were so surprised and ended up with 200 million before the company came out of bankruptcy. That was 10 times bigger than anything other bond dealers. Huge thingidea why a was taken . Of bondd idea in terms trades and that was led by a gentleman. Line the rule is a blurry for what it can and cannot do. You are supposed to keep the bonds on for inventory. Some are able to move the line a little better and say we think eventually there will be a demand required and maybe you will remember the highyield trader, a goldman guy who made around 200 million last year for 2016. The bank, one of my colleagues hend he had justified why had a big take looking at these bonds and showing regulators, this is for inventory purposes and not for the book making efforts. Mark does anything change or is this a one quarter phenomenon . No. Of 2015, that was a quarter in which Goldman Sachs had a lot of problems. I know last year, that was a great quarter for these guys. It ebbs and flows with the market. Fantastic story. Keep digging. It shows what how much the reports will reveal, 300 pages sometimes. That is laura keller. Shares are higher today, and the company says sweet impasses takeover offer from ttp, details next, this is bloomberg. Mark live from london, i am mark barton with the european close just a few minutes away. Vonnie lets turn around to the bid. T, a revised takeover at over 29 billion. It will consider the proposal. Joining us now, working on this for many years for many, many months. Decents a defense a trump. It is about 8 above the last offer. Deal. Big , for the like 50 first bloomberg reports came out. Consistent inis terms of a large stock component. Mark give us a sense of what sort of pressure to negotiate with ttp . The huge amount is probably easiest way to describe it. They have been extremely resistant, and trench and trench entrenched. They have acted quickly over the first offer that came out. And had detailed plans, that will take it while. Their idea was, you hang on and let us do this, and we will create more value for you. It looks good up front but over time, we will do something better. Does it go hostile eventually . How does it play out . I think yesterday do. That is fun because we do not get to see hostiles very often. , today, someg said of the comments, they have an very clear and have until june the first to launch for this company. The real complication, it theuses me a lot, you have which makes it hard for someone to actually execute the full and properly hostile takeover. Ultimately owning most of the still haveut they final say of what happens in the company. That is the question. If they do that, they will do what is in the best interest of all the stakeholders of the company. They would be the largest and most significant. Vonnie why do they so bad they want this . They have been clear on this. N exhaustive list of reasons it is a very global business. They outline some big synergy numbers. In terms of what they want to do, from a sustainability point of view, they just think this is something that that is ed hammond mark . Mark as we have from the close, four minutes away, the cap 40 the the most since to highest since the height of the financial crisis of 2008. This is bloomberg. [ beep ] show me top new artist. [ applause ] [ laughing ] show me top male artist. My whole belieber fan group. Its not a competition, but if it was i won. Xfinity x1 lets you access the greatest library of Billboard Music awards moments simply by using your voice. And thank you so much. The Billboard Music awards. Sunday, may 21st. 8, 7 central. Only on abc. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. This is the european close. Stocks are finishing the mondays session. Theyve had the biggest increase since june after the French Election. First round of the president ial election in france. Banks are fourpoint sent r 4. 7 higher today. Analysts have raised their stance on french and italian banks. Every other Industry Group is rising today. Investors are breathing a huge sigh of relief. The cac 40 is at the highest level since the heart of the financial crisis. On friday, the gauge fell to a record low on march 9. That has been a measure that is been volatile as has this, risk reversal, eurodollar. Theres been a big push back today. The cost of one month options relative to contracts is a gauge andarket sentiments pessimism on the euro last week but reaching the highest since 2011. That was during the sovereign debt crisis but we are negative so the chart indicates Investor Sentiment is negative on the euro over the next month. The spread between the french and the german 10year is narrowed to eight spread has not seen since february. We are below 50 today. How things change. Exactly, and thats what i am sticking with. We are moving back to the French Election. That spread is way down. It hit a nine year high. Joining us to discuss all of this is the head of bloombergs markets live. I was following you live yesterday and it was fascinating. What mark showed is the spread. You can see in the last three days, there is a gap thats lower on friday m a massive gap on sunday as soon as trading started and we are down to 49 basis points. Will this rise again before the next loan or the markets pricing this and . Thats a good question. Moment, they find the second round polls pretty compelling. Front in the in moment and he has endorsements from some who he ran against. Even Francois Hollande is endorsing him. The markets are firmly of the belief m that will take it. Acron that creates asymmetry of risk. Ifmacron strengthens his position on the polls, the markets will not go a lot further on that. Gets morele pen momentum, markets could get worried again pretty quickly. We could get risk price back into the spread. The other place you see it is the difference between the tenure german bund and the u. S. Tenyear treasury. If the bund is rising, that will have an impact on the euro. Where are most strategists saying the euro will go . A lot of the narrative has election,the french isnt the euro area looking stronger and isnt there a lot of growth and a lot of pentup demand. S inad some blowout pmi the runup to this vote. Markets are waiting for that to shift the balance within the ecb governing council. Hawkish opinion from the ecb and the strategists, then i think the euro carries on as strengthening. Thats what people will be looking for. There has been a big shift in one survey and economists are already saying the ecb is getting ready. Once they start, they could raise rates quicker. Qe might be quicker so the process might be pushed forward . Exactly, that could give europe the confidence it needs. Eurodollar is a balance. The u. S. Could get tax reform this week. The euro is looking strong at startment and that will to come through the general conference of the ecb provided core inflation mark we are not expecting anything this thursday . One shockwave with the French Election in one week is enough. The second round of the french vote but the ecb is pretty consistent saying wait until the end of the summer to see the core inflation going up. They want to see its stable and here to say. Thats when they can start to and eventuallyqe think about what they will do with Interest Rates next. The flowsere have been going over the last 24 hours . Its been great for the Eastern European currencies, many of whom have rallied. The yen has taken a little bit of a doug but who was in a fitting . Who is benefiting . The old cliche is when the tide goes out, you can tell whos naked. You can find a were the tensions were based on the french a collection the French Election. There were big gains today so i think that show you the people who were worried about a marine would have raised the possibility of a breakup in the europe. That shows you they were looking at the Eastern European currencies. Mark thanks for joining us. We are just getting breaking news from the eu in an updated draft on the setit guidelines, the eu is to add citizens residents rights to its Brexit Guidelines. Essentially, we got officials whatng this week to decide the Brexit Guidelines and when the good negotiations get underway. They are adding citizens residents rights to the guidelines which seems to be a red line in the sand. Thats something theresa may has said she wants to address early on. The second round in the French Election is may 7. The italian elections of the next big Political Risk event. Earlier today, we spoke with the italian finance minister who had this to say. The first round and its very good news. Lets wait for the second round but having said that, this is good news for france and europe and the global economy. France is set to embrace european targets and we knew the european agenda. Do you think this could mean reforming the European Union . More this mean a integrated eurozone than we saw before . More europe is needed not just for Monetary Union which is the pillar of integration but also to reassure european citizens that europe is also about growth and jobs, something that europe is not delivered very well recently. The problem has to do with pushing the integration together . Withacrone easier than it would have been with Francois Hollande . Europe needs a strong structure reform agenda and needs to exploit the single market. I am convinced that macron will use his Political Leadership to deliver in those areas in an integrated fashion. What you think the prospects on brexit are now . Imagine macron is different. I imagine the negotiation would be unclear terms and that europe will more easily reach a common position with brexit. Will that be a hard brexit . It might be a clear brexit without ambiguities. Maybe i can ask you about italy. Fitch came out and downgraded italy last week partly on the back of political uncertainty. Can you set the roadmap for the way in which you expect italy to go ahead . This legislature is bound to end in february. I am convinced it will end in february. This is the time horizon of the current government which still agendaambitious reform in addition to fiscal and growth. You expect to see elections before that . That cannot be fully ruled out at this stage but the government does not assume to end its job before next february. Some critics say the reform agenda has not pushed ahead . What has been the main thing achieved so far and what needs to be achieved . Resi came toen mr. Parrot came to power. Market, judiciary system, tax administration, public at ministration, the School Agenda and we have to the defeat of the institutional referendum. Stop. Nly a partial the reform agenda continues with measures including a competition law. And terms of introducing competition, could italy embrace . Ore privatization questio italy continues to have a privatization agenda. The numbers are included in the government in the document the government approved a week ago. This continues to be on the agenda for february, Debt Reduction but also efficiency under management and diversification of financing sources. When critics look at italy, you have ahey say hand in appointing the heads of the Biggest Companies and that is something that has to change . The privatization would not imply the government or the state giving up control of the management of the companys. Keeping the amount of ownership ensures control. In the point of view of the strategy, nothing will likely change. Mark thats the italian finance minister. Coming up, there is a lot on the table as Congress Returns from easter break. What is the priority for the Trump Administration . This is bloomberg. Mark live from london and new york, im mark barton. Vonnie this is the european close. Its heading up to be a big we can american politics with congress trying to avoid a Government Shutdown and they want to include funding for the border wall between the u. S. And mexico. Is wednesday the day we should be waiting for . Week on capitol hill. I am in statuary hall where lawmakers are returning to washington after a twoweek recess. Wednesday we hear from the white house as to when they will unveil some type of details surrounding tax policy. That caught some folks off guard on capitol hill but also april 28 is the key date when in thers Republicancontrolled Congress must pass some kind of partial government funding bill to keep the government open and avert a Government Shutdown. The politics is where this gets interesting. President trump is tweeting about using the funding budget as a way to fund the u. S. Mexico ka the wall and democrats are united against it connected pose a political wrench which could lead to a Government Shutdown or a temporary government funding bill. Vonnie how much urgency is there . Is the president willing to shut down the government over something he promised he would not do and thats have americans pay for the wall . He would be nagging on a promise and shutting down the government at the same time. I can remember covering the last Government Shutdown several years ago in which case polls plummeted for the white house and lawmakers. Republicansunt, campaigned on the idea that they would be able to run a more Efficient Government and be able to repeal parts of the if or care act or obamacare. There has not been a major legislative victory so to speak for the administration with the exception some would argue of judge neil gorsuch being appointed to the Supreme Court so this administration is looking for a legislative win whether its on taxes or repealing parts of obamacare. Theres a meeting on that tomorrow night. It could simply be on keeping the government open. Mark on taxes, donald trump said one thing and mulvaney has said another tempering expectations. What realistically can we expect . I think it will be a barebones minimum of some type of outline. Last friday, i was in the White House PressBriefing Room with Steven Mnuchin he was unveiling executive orders for ways to walk back parts of doddfrank regulatory law. Then President Trump walked across the street and answered a question on his way back from the Treasury Department to the white house about a timeline for taxes. He said that would come on wednesday. That caught some folks off guard not only in the ministration but also with lawmakers on capitol hill who have been working on tax policy for quite some time. It caught everyone by surprise. Avoid Government Shutdown, tax plan may be, how can you repeal obamacare . Is there time . House Speaker Paul Ryan is downplaying those expectations. He said we are not going to move a bill until we have the votes to do it. They want to avoid the blemish that was several weeks ago where they thought they could fix parts of obamacare. They were unable to do it but its a very busy week in washington. I have my work cut out for me. Me it something tells will not end this week. Mark it never ends. Time for the Bloomberg Business flash. Jab is putting up jimmy choo and Bally International for sale. It recently bought caribou coffee and Krispy Kreme Doughnuts and has agreed to buy panera bread. There are renewed demands for luxury goods. The hotel Real Investment state trust has a huge value. The Company Based in maryland has agreed to buy felcor which owns hotels in the u. S. And canada. It will have a market cap of four to a four point 2 billion. Some directors of wells fargo a in danger of being voted out by shareholders at the annual meeting tomorrow. On the balance cap it so far and many of the wells fargo investors are unhappy how the board handled last years bogus account scandal. That is the latest Bloomberg Business flash. Of the charts is next. Its a big battle over the euro which is surging on the French Election results. This is bloomberg. Vonnie it is time for our battle of the charts. You can access the charts on the bloomberg. Today, its transatlantic its a transatlantic matchup and we started in london with mark barton. Mark i feel honored starting off. This is the day after the French Election results. Its fascinating to see what has happened to the euro today. It rose as much as 2 against the dollar crossing 1. 09. What was avoid today was a potential nightmare scenario. Investors are turning to the second round. The euro is rallying today. People like us nerds can find some amazing statistics. This is one of my favorite facts. There was a record today surrounding the euro. This record is the difference eurodollarclose of friday which was one dollar 7. 20 eight cents. And the open in asian trading today. 107. 80. Look at the difference between the two. It was a record gap between the two. What a lovely little nugget. Its just beneath the surface. Its the widest differential between the close friday in the open today. There you go going back to 1999. Very nerdy but thats me. Vonnie its fast many because it shows how much frenzied action is going on behind the scenes. Abigail, you have something similar . I thats a great chart and love what you talk about in terms of frenzied trading. Looking at my chart, the question around that great record that mark talked about, can it last . Iss chart suggests that it over excitement. There could be some volatility ahead. This is a five year weekly chart of the euro against the dollar. On that frenzy, we have the first gap up that shows over the last five years. There are gaps across most risk on assets. It suggests we could see the euro close back down in the weeks ahead and perhaps go lower. Also, the euro is back below that 52 week or one year moving average. I love it. Mark brought it up first and i will give todays monday morning crown to mark barton for that wonderful chart. Thank you to you both. President trump says now is the time to solve the problem of north korea. Date onkeep you up to whatever else the president says. He is speaking to reporters right now. Whats going on in europe as we approach the close question mark . My winning chart shows you the French Election. This is bloomberg. Vonnie its noon in new york, 5 and 5 00 p. M. In hong kong. Welcome to bloomberg markets. From bloomberg World Headquarters in new york, we will take you from paris to berlin and washington this hour. Here are the top stories. Rallykets, so cold relief following this weakens first round of the French Election easing concerns the country will exit the common currency. U. S. Stocks are rallying with the nasdaq hitting an alltime high. Suntrust independence, macron will face Marine Le Pen and a second round of the French Election. The run up round is on may 7 and macron is heavily favored though he is never Held Elected Office and has yet to show if he can assemble a parliamentary majority. Goldman sachsfixed income revenue