Mark President Trump laying a wreath at the tomb of the unknown soldier. A tradition at the Arlington National cemetery on this memorial day holiday. U. S. Markets and u. K. Markets are closed today. We are about 30 minutes from the end of the monday session in london. Stoxx 600 down for the third consecutive day. Three days of decline. That is the losing run. You can imagine that the volumes are very low. Small declines in france. Ins get to the decline italy relative to other markets. I will come to this when i go to the bond board. These are the bond markets across europe. Rising ining yields italy. Renzierview that matteo gave, he said that the election in autumn would reduce market uncertainty, not increase it. Extraearful of any elections. There has to be an election in italy by the spring next year. We are seeing a bit of volatility today. Check out what is happening to the commodity and fx markets. Gains for oil. Just above 50. Music following opecs Production Cut extension wasnt exactly positive. You saw that big decline on thursday when the announcement was made. Now it turns to can the market balance. Will we continue to see declines in u. S. Stockpiles. Rigs. Xplores adding two the highest level since april of 2015. Lets continue to follow comments from mario draghi telling the parliament that the euro area still needs exceptional support from the Central Bank Monetary policy to absorb and stabilize inflation. Overall, we remain firmly convinced that an extraordinary amount of Monetary Policy support, including through our guidance, is Still Necessary for the present level of underutilized resources to be reabsorbed and for inflation to stabilizednd durable levels of around 2 within a meaningful mediumterm horizon. Mark thank you, alan. Draghi is not in a rush to tighten policies. But investors are looking ahead to that meeting. There is quite a high expectation that Forward Guidance is going to be tweaked. If everything remains the same, how do markets react . The economy is so strong. Keeps sayingtently wait for inflation. It is a must as though they want significantly higher inflation for a period of time before they do anything. The markets can live with this. Think it will be fine. The euro can come off the boiler a little bit but it is a bit of a sweet spot with this Strong Economy and earnings coming through in europe. Mark the euro, it is up to september highs again with the dollar. Some of that on the flipside of the equation. Is there a ceiling . We are relatively positive about the euro. Take the u. S. Part of the equation. Ever since trump said put america first, we thought, what does that mean . One of the things it means is a weaker dollar. And where are the big trade surpluses . Germany is one. It is interesting that the chinese currency stabilized. You hear from Angela Merkel herself saying that the eruo is too week. Too many people put interest on emphasis on Interest Rate differentials. But can be a bit duller, they have a profound effect on currency. We need some action from draghi to get moving but we will stay with the long euro. The fed you have a function for everything. Function is right up there. Trumpwent down in the comey saga. The perils of what is going on in washington . You have to look at where it comes from. It is based, to a certain extent, on shortened Interest Rates. Quality. A flight to people are buying the front end of markets. The probability, baked in, of a fed tightening reduces the function of the mark spill over from d. C. To wall street. There has been a clear demarcation. Are we seven days running . The longest run since february. Is there a bit of complacency in the equity market . We had a trump fear hitting equities. For us, equities are not going up because of trump. The trump factor probably built up a little bit to u. S. Equities. States, what is baked in is a bit of hope factor on this corporation tax. The earnings impact on that and the idea that it is cheaper to andg profits home distribute these famous rough its, apple being the poster child. Corporation tax is very high in the United States. 28. Average s p 500 is about 28 to 15 would be a big deal and there is a bit of that builtin. Thats why equities came off on a wednesday. We noticed it because it uses it, with the vick so low come a changes the equity market by 0. 1. It is incredible. That day was a standout. Back to you in a second. Alex higgins alan he and stays with us. Taylor riggs has the latest list of Vladimir Putin is in france where he is eating with president Emmanuel Macron. Senatorjust hours after john mccain called him a bigger threat than the islamic state. The german chancellor Angela Merkel says that the European Union and the u. S. Must remain partners despite their differences. Merkel told a conference that strong relations with the u. S. Are of great importance. She signals that in a donald trump era, europe must shape its own destiny. President trump call germanys trade surplus very bad and blasted nato allies for not spending enough on defense. Arrest took place on the south coast of england, hundreds of miles south of manchester. None of the suspects have been charged or identified. They are being held on suspicion of violating a terrorist act. The president has reasserted control over the national congress. He survived a revolt by some of the partys most senior leaders. They rejected the option of resuming removing zuma at the end of the weekend meeting. Fire has been pressure to him to remove him after the firing of an official that cost them their credit rating. Mark the french president Emmanuel Macron, Vladimir Putin are holding a joint News Conference at versailles. We will bring you any headlines. You can watch this in full on the terminal tv. This is bloomberg. Mark i am mark barton. Onto the european closing. Prime minister theresa may campaigning in south london, ahead of snap elections, as the u. K. Negotiates parameters for a brexit. This is my favorite chart of the day. This is the conservativeimplied majority. So many wonderful functions. What is interesting is that the implied majority is that the tories will win a majority of 12. The implied majority a month ago was 200. It shows how things can change in the space of a few days. The trend is right. It is maybe a bit dramatic to be down at 12. Frenchls got the u. K. Ion right, but in the and brexit election, they underestimated the conservatives. Mark if they get a majority of 12, how do markets react . Corbyn is viewed as antibusiness, antimarkets. Theresa may would still be in power, but lets say it is a weaker majority. How does that play out . A lot depends on where sterling is beforehand. Now,ey are where they are 128 or when hundred 27, they may not have or 127, they may not have as much a downside. I member they were talking i remember they were talking about 150. Mark you have been a buyer of sterling. We have. Having been out of sterling for a lot we have been buying gradually for the last several months. Mark does that core hold . Market uncertainty a change of regime might make corbyn run. Mark do you still think she will win a bigger majority . Not even going to say a sizable one. I think they will refocus and looking carefully at your chart, i think they will refocus and put behind that awful period of a couple days where they lost the message and i think that they will prevail. It is difficult, but when you look at opinion polls, you have to look at that era in the u. K. Of underestimating conservatives in general. Mark buying assets. Ftse at records. It doesnt make sense. There are a lot of markets at records. The u. K. At least has value going. For the first time in ages, earnings are coming through. The u. K. Market is on about 15 times earnings. On a forwardlooking basis you can pick up a 6 yield. It is not terrible because earnings are coming through. You ks will go with global assets. And you have been a big color of various assets. The best start to the year for 2009,erging markets since everyone says fundamentals are better then during the crises of the late 1990s. Current accounts are in better shape. The economy is in better shape. Going back to earlier comments. Everyone is very worried right now. Surely this is a warning sign. If you do the math, it is incredible. It means you should buy. Its a great indicator when it spikes, not so great when it is low. The e. M. , the mystery of china. We are humble enough to be very careful readers without being too dogmatic. This get buildup. Mark a big deal or not . A lot of rudeness about it. To be fair to moodys, they are doing it often you see ratings downgrade in a period of crisis. They are doing it in a period when the currency is stable. It is a bit forwardlooking. They are taking it to the same rating as an. It is fair enough as japan. It is fair enough to say that there is risk in their. 2 gdp tot up from 2. 5 . Im reading both sides of the debate to understand. Gdpsame level of debt to in singapore. That is a much smaller, more prosperous economy. What could derail it . China imploding. Mark which you do not think will happen. On balance, we dont. It is an internal situation in china. They have the means to cope. Many people defaulted japan on their governmentowned bonds, but they wouldnt, because they are held domestically. And china, with their banking system, you will barely see it in overseas equities. Mark macron and putin, the glamorous surroundings of versailles. Has ane who has e. M portion in russian equities. It is a question of, do we emphasize the russian portfolio . We have decided to. We think oil will hold. This deal between saudi, russia, aramco, about to come to markets. Oil on the downside should not be a factor. Two, russia has always been a cheap market, but it is cheap even by russian standards. Right on the lows of valuation. The currency has recovered. The results are reasonably strong. Pretty strong results. Withre well compensated the valuations. Last week we have put more into russia. Since thed some geopolitical issues. It is not about philosophy. You should go against the trend. Times very lonely at the in terms of the situation, the sad situation in the eastern ukraine, but as investors, we have a fiduciary responsibility. Mark who is going to win the mens french open . I am a low level tennis coach. I think nadal looks like he is back. Clay. Ing of mark on the womens side. Not kerber. And Serena Williams is gone. Likely an outsider. Mark how about a brit . Nice to see you. Alan hagans. Despite the differences, merkel says that the u. S. And the eu must remain partners. We will bring you the latest. This is bloomberg. Mark live from london and live from bloomberg i am mark barton with the european close literally six minutes away. Merkel trying to unite the European Union behind their global agenda. Patrick, is this a watershed moment, this merkel speech in last 12 four hours 24 hours . Some have said that the government is in a pain to unite europe under the single cause. The language she used in this campaign was about reliability, and coming off a weekend in which the g7 leaders were not able to agree with donald trump on the Paris Climate Accord and in brussels in which there was a lot of difficulty talking to the u. S. There was an element of frustration with merkel. Reliabilityt that may be something of the past was kind of extraordinary. She is trying to g up the e. U. By saying that populist forces did not manage to cause an upset in the netherlands or france. Where is this leading this call of unity within the eu . Is it going towhere is lead to substantial reform . Lothere is going to be a done between paris and berlin. Supported byery the election of Emmanuel Macron. In her view, this european voters shrieking back from this populist moment, returning to traditional parties, maybe out of fear or whatever, she seems to be taking that tack. Veryrday, she issued a strong position saying that she would fight for europe. If you can imagine, she was at a her bavariant for sisterhood in lederhosen. These are not her typical allies, especially when it came to the refugee crisis. There was big applause for that line on european unity. Mark patrick, thank you for joining us. Here is a peak at what is happening with european equities. It is a bank holiday here. No trading in london or the u. S. Mark President Donald Trump said to make remarks that national Arlington National cemetery. It is memorial day in the United States. General james mattis, the secretary speaking. We are expecting donald trump, the president to follow his remarks. We will bring you those remarks live on Bloomberg Television as soon as he takes to the lecture lectern. We are trading below the daily average, about 17 volume wise. Whiche a function, avat tracks such matters. Fractionanged, down a after falling for the second week. James and gains in germany decline in lets go to Arlington Cemetery for the president. [applause] President Trump thank you. [applause] thank you very much. Thank you. Thank you so much. Thank you, general dunford, secretary mattis for your moving words and for your service to our great nation. , cabinetident pence secretaries, members of congress, members of the armed , thank you veterans for joining us as we honor the brave warriors who gave their ours,for hours spending their last moments on this earth and defense of our country and of its people. Words cannot measure the depth of their devotion and the purity of their love for the totality of their courage. We only hope that every day we can prove worthy, not only of their sacrifice and service, but of the sacrifice made by the families and loved ones they left behind. Special, special people. I especially want to extend our secretary john kelly for joining us today. Incredible man. [applause] i always like to call him general. He understands more than most ever could or ever will the wounds and burdens of war. Secretary proudly serve in the military for more than 40 years and during many hardships, but he and his incredible wife, karen, have borne the single most difficult hardship of them all, the loss of their son, robert, in service to our country. Robert died fighting the enem ies of all civilizations in afghanistan. To john, karen, heather, kate, andrea, and the entire kelly family, today, 300 million american hearts are joined together with yours. We grieve with you, we honor you, and we pledge to you that we will always remember robert us. What he did for all of thank you, general. [applause] the kelley family represents military families across the country who carry the burden of freedom on their shoulders. Secretary kelly is joined today by his soninlaw, jake, a wounded warrior, and the secretarys son, johnny, who will soon leave on his fifth deployment. It is because of families like yours that all of our families can live in safety and live in peace. To every gold star family who presence,with your you lost sons and daughters and husbands and wives, mothers and fathers, they each had their own , theirtheir own stories own beautiful dreams, but they were all angels sent to us by god and that all share one title in common and that is the title of hero. [applause] real heroes. [applause] they were here only a brief time before god called of them home. Their legacy will indoor endure forever. General Douglas Macarthur once said the soldier who is called upon to offer and give his life for his country is the noblest development of mankind. Here at this hallowed shrine we honor the noblest among us, the men and women who paid the ultimate price for victim victory and for freedom. We pay tribute to those brave souls who raced into gunfire, roared into battle, and ran into hell to face down evil. They made their sacrifice not for fame or for money or even. Or glory, but for country we are privileged to be joined today by a man whose life demonstrates the values of service and sacrifice, senator bob dole here with his wife, senator elizabeth dole. [applause] senator dole fought bravely in world war ii and was severely. Ounded by german fire in just a few weeks, bob will be celebrating his 94th birthday. [applause] [cheering] and bob, i know i speak for millions of grateful americans when i say thank you. Thank you, bob. [applause] thank you not only for your service, but for helping us to remember your fallen comrades and the countless american patriots who gave their lives in the second world war. Since the first volley of gunfire in the revolution, brave americans in every generation have answered the call of duty and won victory for freedom in its hour of need. Today, a new generation of american patriots are fighting to win the battle against terrorism, risking their lives to protect our citizens from an enemy that uses the murder of innocents to wage war on humanity itself. We are joined today by the wife of specialist Christopher Horton , who rests on these so beautiful grounds. As jane tells us, chris was a man who loved his country with every part of his being. In 2008, chris enlisted in the Oklahoma Army national guard. He trained as a sniper, becoming known as one of the best shots anywhere at any time. Tough guy. Lented, chris while chris was in the national guard, he was also a. Olunteer Police Officer in everything he did, he was thinking about how he could serve god, serve his family, and serve his country. In 2011, he deployed for the first time to afghanistan. Chris knew his job was one of the most dangerous there was, but he was determined to go after the enemy at any cost to himself. His missions helped target and tol terrorists who sought destroy innocent people. Just three months into his first deployment chris was near the pakistan border trying to eliminate an enemy cell that was doing so much damage and that was planting deadly roadside unit and the his units of many others. Standing watch with his comrades, he died in the ensuing gunbattle with enemy forces. Chris sacrificed his life to protect his fellow soldiers and to protect all americans. He was awarded the purple heart and bronze star for his courage. At only 26 years old, chris secured his place in our hearts for eternity. Grieves with you. Our whole entire nation sends strength,pport, our and our deep, deep love. You lost your husband and togetherost a hero and , we will preserve his memory always. Omorrow, and thank you, jane. [applause] thank you, jane. [applause] thank you, jane. [applause] thank you, jane. We are also joined today by david and rose buyers, the buyers of major injury major andrew byers. He dreamed of a chance to attend the United States military academy at west point. He worked hard and earned that chance and graduated at the top of his class. He became the commander of a special halo team, leading his fellow soldiers out of aircraft, rdling into hu dangers and unknown territory. Third combatn his deployment about this time last year. This time, he went to afghanistan. On november 3, he was one of 10 special forces operators to land by helicopter near a taliban safe haven in northern afghanistan. They trekked through a mile of deep mudp waist and climbed a Steve Clifford before finally steep cliff before finally reaching the village they wanted to reach. Then a night long battle ensued. Offew and his team fought wave after wave after wave of enemy fighters. A grenade detonated and as the taliban surrounded the american and afghan forces, andrew ran through the smoke and through the hail of bullets to rescue and afghan soldier. Ofthe midst of this torrent gunfire and danger, andrew worked heroically to open a gateway and get his men to safety, risking his life to save theirs. And he did it. Unbelievably, he did it. In saving those lives, andrew was killed right then and there by enemy fire. Andrew has since been awarded the silver star for gallantry in battle. Rose, parents, david and son and in awe of your his courageous sacrifice. On behalf of the American People i express to you our everlasting gratitude for what your son did for his country, for his comrades, and for all of us. Andrews father has said that he joshuanto the promise of 9 the lord, your god, will be with you wherever you go. Thank you. [applause] thank you. Thank you. [applause] what a man he was. To every gold star family, god is with you and your loved ones are with him. They died in war so that we could live in peace. I believe that god has a special place in heaven for those who lay down their lives so that fears may live free from and this horrible oppression. Now, let us pledge to make the most of that freedom that they so gallantly and brilliantly fought for and they died to protect. Let us also pledge to tell the stories of robert, chris, andrew, and all of americas fallen warriors today and for the next 1000 years. [applause] while we cannot know the extent of your pain, what we do know is that our gratitude to them and undying. Boundless and boundless and undying. It will always be there. Thank you. [applause] their stories are now woven into the soul of our nation, into the Stars Stripes on our flag, and into the beating hearts of our great, great people. Today, we also hold a special vigil for heroes whose story we cannot tell because their names are known to god alone, the unknown soldiers. We do not know where they came behind, orhey left what they hoped to be, but we do know what they did. They fought and they died in a great and noble act of loyalty and love to their families and to our country. And a letter written that his now famous one Civil War Soldier captured it all and for all time. He wrote to his wife, if i do not return, my dear sarah, never forget how much i love you nor that when my last breath escapes me on the battlefield, it will. Isper your name that is the love we hear whispering throughout this sacred place and from every tombstone on these hallowed grounds. It is the love that binds this earth and ethos and bleeds this earth beneath us and bleeds from those that from the hearts of those who died so that we may live free. We can never replace them, we can never repay them, but we can always remember. Today, that is what we are doing. We remember. Words cannot wipe away the tears or bring back those smiling faces, but if americans just take the time to look into your eyes and tell you how much we thank you and how dearly we pray for you and how truly we love you, then hopefully, you can. Ind solace through your pain every time you see the sunrise , pleases blessed land know that your brave sons and daughters pushed away the night and delivered for us all that great and glorious dawn. You. You, god bless god bless our fallen heroes. God bless their families. God bless our military. God bless the United States of america. Thank you. [applause] President Donald Trump giving the traditional address at the Arlington Cemetery at the tomb of the unknown soldiers on this memorial day holiday. Lets turn to Global Security matters, that is one of the tricky topics being addressed right now. France president Emmanuel Macron and russian president Vladimir Putin have been speaking at a press conference. Macron saying there cannot be a dialogue without russia. But get over to moscow. On andons between macr russia were strange during the election. Have they found a Common Ground . Press just it showed both leaders tried to show positive results, but there is nothing breaking. At the very start from the press ronference both putin and mac mentioned the need to intensify relations, especially in the economy. On those tricky questions of global agenda, they did not find any agreement. They include conflicts in syria and the ukraine. The hint from macron that he plans to call german chancellor Angela Merkel to tell her they on ukraine. Nsify maybe that can move relations forward, but we will see on that. The main topic both leaders agreed on was the main task for france, russia, and europe in general is the fight against terrorism. Mark we are going to leave it there. Thank you very much for joining us. Moscow inting from the wake of the meeting between Vladimir Putin and Emmanuel Macron. We want to move to south africa. Jacob zuma is staying put for now. s get over to arab ila lets get over to our reporter in your hand is berg. Is zuma safe for the moment . He is certainly. It seems he is keeping control of the country. Certainly the vote of no confidence was discussed this past weekend and it is something he says he never once to hear up again. Something that he firmly put ahead and the party expects to open up elections for leadership within the party ranks. They will decide on that later this year. Certainly, the president saying he is not going anywhere and will not accept a no confidence vote against him at any point this year. Atting the party line and noconfidence bid certainly falling flat. The Constitutional Court is currently debating whether or on to allow a secret ballot a no confidence vote that will happen in Parliament Later this year. Whether that will happen or not is certainly to be seen. Certainly does the low blow to that move. Mark it has been a fairly muted reaction in the markets. Why is that . It actually hasnt. Drop drop from 100 62 and now sitting around 1297 proved last week we heard rumors and murmurs of this and we have we have confirmed with certain sources that the vote of a noconfidence those quote motion will be distressed discussed. That petered out as the day progressed. Today, a lot of confirmation and a lot of giveback, so to speak, from the market as the rand traded along around 12. 97. Just below 13. Even touching that mark, but really falling below that barrier. A lot more enticing. Lets remember the emerging market story is one that still has a little bit more enticement. Widenedvisions have worstthe anc suffered the ever electoral result when it lost control of your hannahs berg johannesburg. Those this decisions decisions remain. That is still a Cloud Holding over the president. It certainly it is and so is his decision on march 31 to change his cabinet and fired and then finance the then finance thester and his deputy who country saw as two lawmakers that earned the reputation and was certainly going to be strict and stringent on how africa spends its money and collects revenue from the country. It does seem the divisions have widened and calls for the president have increased streetly even with barricades coming out as well earlier this year. Mark thank you very much. Our economy reporter for Bloomberg News joining us from johannesburg. A quick peek at European Equity markets. It was a holiday here and a holiday in the United States, but business day continued. The market day continued across europe. It was a day of Little Movement for the stoxx here at 600. This is bloomberg