You want a competitive role. My number one job is to rebuild trust with all of our stakeholders. Jonathan plus the easy be ecb prepares to unwind qe. It is only fair if you leave the club, you settle the accounts. They seem to be fully and in command. They are in a position where they will be surprised by what we do. Jonathan that is all straight ahead on bloomberg best. Jonathan hello, and welcome. Im jonathan ferro. This is bloomberg best your weekly review of the most business important news, analysis and interviews from Bloomberg Television around the world. This week began with an unexpected change from one of the big three u. S. Automakers. Vonnie a management shakeup at ford replacing the ceo. It was a bit of a surprise. There have been some pressure for ford because the stock had fallen so much during mark fieldss tenure, and it was last week during the shareholder meeting, bill ford was defending the company to the shareholders, but he never mentioned mark fields by name. It kind of looked like thered be some kind of shakeup at ford, but it was a surprise that mark fields did get pushed out and replaced by jim hackett. I have never seen such a time in our industry where technology and competitors and everything is converging to drive real change. It is very helpful at a time like that to have a leader who is very experienced in driving transformational change, and fortunately, we have that in jim hackett. David is this a matter of electrical vehicles . It is perceived that you are behind some people in the industry. Yes, it is about evs and it is about avs, autonomous vehicles. And it is also about making sure we are investing in the parts of our current truck business that we get good returns, and we are not investing in parts of our business where we are not getting good returns. So, it is really about Capital Allocation as well. 22 people have been confirmed dead with around 50 injured at a blast in the u. K. In manchester. It happened just as a pop concert by Ariana Grande was wrapping up. Police confirmed they are treating the explosion as a terrorist incident, which would make it the most deadly u. K. Attack since the bombings back in 2005. Police have named 22yearold salman abedi as the suspected attacker. The Prime Minister suspending next weeks campaigning and that the parties soon to follow. This is looking less and less like a lone wolf attack. Police have made an arrest of a 22yearold man who is suspected of aiding and abetting the attacker. They have also carried out a couple of raids in manchester, and indicated the nature of the attack requires some level of planning. What we are looking at now is perhaps a much more planned event than say the terror attack in westminster a few weeks ago. The threat level should be increased for the time being from severe to critical. This means that their assessment is not only that an attack remains highly likely, but that a further attack may be imminent. The white house released President Trumps first full budget. Mick mulvaney says it is a Taxpayer First budget and the document calls for steep cuts to social programs like medicaid, low Income Housing assistance, and blocks grants that pays for meals on wheels. What is the white house trying to do with this document . The white house is saying this is a document and a budget that focuses on the taxpayer, less so on the beneficiaries of various programs that would be cut under this proposal. They are saying they are looking at all of these programs and trying to figure out whether or not they are good programs, whether or not these programs are efficient and everything from medicaid to Disability Insurance are being cut. And that is something that is not being received too well on capitol hill. This is not the budget that will end up on the president s desk, but it does show some of his ideas for how he wants to spend taxpayer dollars. They count on 3 growth under a sustainable rate under the longterm, much higher than the previous projection under president obama. Unemployment and inflation kept in check. A lot of economists are crying foul, not just because of the very high and optimistic gdp rate, but how those other factors play out as well. Which would be the holy grail of Economic Growth. China has had its Credit Rating downgraded by moodys, which says rising debt and slowing growth casting clouds over the financial outlook. Take us through the consequences of the announcement. I think it is something of a slap on the wrist for china really. It is another warning. Authorities do need to get a grip on the rising debt that has been a key driver of Economic Growth in china over the last decade. We have had a rating terms warning before. Moodys warned last year and the imf warned. And today, moodys took a step of putting china sovereign rating, the first they made since november of 1989. It is a significant reminder about the challenges china has faced. We know the authorities are preaching the need to rein in leverage and rein in credit assistance, but the steps have been quite modest. When you see a judgment like we saw today from moodys, it is a sharp reminder of the challenges still ahead in china. In just a few moments, the Federal Reserve will release minutes from its may meeting. This is the meeting where officials left rates unchanged and signaled they were not alarmed by the weakness and First Quarter gdp. We learned two things today. Number 1 at their may, second and third meeting, they were on course for a june rate hike. Number two, there was wide agreement that they should not cease from one month to the next , very investments their rein vestments of assets on the Balance Sheet when they began to reduce the Balance Sheet. The interesting thing is that we are making progress on the Balance Sheet. You can pretty much check the box by the end of the year because the minutes say, almost everybody agreed on that. The other thing they agreed on is this idea of caps or monthly limits. They want it to be a regular and predictable system, but they want to taper it. They do not want to shut the shock the markets went away. They do not want to shock the markets right away. Jonathan can you unwind 4. 5 billion dollars and make it a boring . Yes, you make it very very slowly and make it a nonevent. I think they will end up doing that. Jonathan opec extended Oil Production cuts for nine more months after last years landmark agreement failed to eliminate the global oversupply. The big question is it enough to stabilize the crude market and put a floor in oil prices . Nine months with the same level of production that our member countries have been at is a very safe, and almost certain option to do the trick. Opec did what they should do. This buys them time to get data on what the real rate of Global Demand growth will be, and also, gives them a period to show more evidence that they are working off those excess inventories. They have also reserved the right, basically, to surprise a market for deeper cuts by the big producers. Saudi or russia if they choose to. If what they have done is not enough. Vonnie back in the United States, President Trump he is in italy, but he is wrapping up his journey through the middle east and europe. His first foreign trip and today he is making his g7 debut after some tough talks in brussels. The g7 summit will involve debates on global trade, climate change, and migration. In fact, we have a draft of the communique and it looks like migration will be one of the subjects very hard hit. Matt miller, let me quote we have reaffirmed the sovereign rights of states to control their own borders and set clear limits on net migration levels. What does that mean for current migrants making their way to europe and to the United States . Matt i think they are trying to say every member of the g7 has sovereignty to decide for itself. Including the European Union members. It is a very important issue to italy. Remember, italy has the presidency of the g7 this year, and it is something they really want to talk about at this g7, and so they are pushing to get into the communique. Kevin it has been somewhat different response the europeans have given President Trump than the response he got earlier in the middle east, saudi arabia and israel. Earlier today, i went to a briefing with european president donald tusk, who said that he actually was impressed with President Trumps toughness. Europe should be tough, if not brutal. Behind the scenes, there are appeasement going on to win over President Trump. Key differences have emerged. Jonathan still to come as we review the week on bloomberg best, we look at President Trumps trip abroad, including billion dollar deals in the middle east and meetings with nato leaders and exclusive interviews with jamie dimon and tim sloan. And up next, more of the weeks top business headlines. The Congressional Budget Office scores the Gop Health Care bill. The only score that matters is the one on the senate bill when that is done, and that theyll still looks like it is a long ways away. Jonathan this is bloomberg. Jonathan this is bloomberg best. I am jonathan ferro. Lets continue our global tour. In vietnam, trade ministers around the world discuss a number of sensitive issues at the annual aipac meeting. Global trade and the threat of protectionism dominated the talks this weekend. The posts summit statement was diluted, indicating pressure on ministers not to criticize the protectionist trend. It is very interesting, this watered down communique. We seem to see that theme following the g7. The u. S. Dictated the outcome. Like you said, the diluted statement. Ministers pledged to work on regulations, but there was no mention whatsoever on resisting protectionism and like you indicated, we saw this happen at the g7 as well as the g20 summit, where treasury secretary mnuchin refused to sign off on any strong wording resisting protectionism. It is suggesting the u. S. America first agenda is permeating all talks on trade everywhere in the world. Softbank has formally announced the first round of Capital Commitments for the Tech Investment Fund worth more than 93 billion. Who is in, who is not in, and what is next here . Well, softbank originally announced plans for the fund in october of last year. It is going to be one of the cornerstone investors along with the Saudi Arabian sovereign wealth fund. You also got abu dhabi investors, qualcomm, apple all putting in money, too. They didnt quite get to 100 billion in the first round of closing. They got to 293 billion. That is a lot of money to be able to spend over the next few years. Now, they are freer to be able to go out and hunt seals. Hunt for deals. Euro area finance ministers failed to break impact on debt relief for greece. That means delays in the bailout review and the disbursement of back needed to pay obligations area why wasnt a deal reached . That is a good question, matt. We had almost eight hours of talks, and yet, they failed to break the impasse. The answer to that question seems to be that really there were just so many positions at various finance ministers were coming from, and the talks are complex, so it made it difficult to come to this final agreement, although we have are hearing that the talks were constructed. I spoke to the finance minister earlier and he said we should look at this positively because the review of the bailout went very well and now the talks can turn to debt relief and work on that will happen in the coming weeks. Shares of Fiat Chrysler are falling amid the news the Justice Department is suing the automaker for diesel emission violations. On my understanding, feet iat chrysler is different from volkswagen because they continue to deny they knowingly engaged in cheating. Is that is right . Thats exactly right. We didnt learn anything about the vw case until it was already solved and california regulators extracted a confession and they announced in midseptember, 2015 that vw is cheating every cop cheating, and we caught them and here is how we are going to proceed. This has been so different because, you know, the clock was running out on the Obama Administration and the epa said, were pretty sure these guys have some software here that is not acknowledged or disclosed, and we are notifying them of the violation, and Fiat Chrysler went ballistic. They were very upset. Here we are months later and still no resolution. Another deadline is coming, which is this consumer lawsuit. Several consumer lawsuits are being brought together in a California Court tomorrow. So the epa and justice are filing today in detroit to try to get their case added to that one. Vonnie General Motors has been hit with a classaction lawsuit. The suit alleging the carmaker put deceit devices in trucks to beat emissions tests. Gm is the sixth automaker accused of diesel cheating when volkswagen admitted to installing software to bypass rules. Will gm try to fight this or will it admit that this alleged cheating did happen and try to settle . G. M. Is fighting back very hard and right away. They put out a statement calling the lawsuit baseless, noting that their vehicles and trucks have been approved by the epa and by the California Air resources board. The ecb says debt sustainability concerns have risen in the past few months. The ecb publishing the by annual Financial Stability review as the issue of scaling back stimulus begins to weigh on the central bank. Its next meeting is on june the talk us through the primary eighth. Concerns in this semiannual Financial Stability review. The primary concerns are that that debt sustainability will become a problem with rising yields in certain areas. The fed is expected to raise rates two more times this year and the ecb is getting closer and closer to discussing the possibility of normalization of policy. The ecb has talked about the importance of unwinding qe before it even thinks about raising borrowing cost. We have headlines out from the Congressional Budget Office scoring the American Health care act for the first time. Federal deficits would be reduced by 119 billion over the next 10 years, and an increase in the number of uninsured relative to current baseline by 23 million and less in medicaid spending is 834 billion less. This is a report that means the house did not have to go back and pass this contentious Health Care Bill another time. This bill can be sent to the senate and the senate can take it up. And what we have been hearing is senators have been meeting on a weekly basis, mostly not to take up this bill, but to start on their own bill to get a final product to make it to President Trumps desk, it is likely to not look like the house version that just got scored. It would look very different. The only cbo score the at matters is the one on the senate bill when that is done. Mcconnell said recently that getting to 50 votes in the senate is harder than he thought it would be. That tax reform looks like it will be easier. Deutsche bank maybe close to settling a u. S. Federal reserve probe into how billions of dollars moved through the bank and out of russia. Meanwhile, democratic lawmakers have asked the german lender to hand over its findings on the handling of russian mirror trades, as well as it banking on the half of now president donald trump. Deutsche bank is looking at maybe paying off its third massive fine this year to u. S. Regulators. Right. And this isnt even expected to be the big one. The Federal Reserve is looking into this, but also the doj and the doj is the one investors are really focused on because that could be the biggest fine, and the more consequential given one that Deutsche Bank is already operating under a deferred prosecution agreement. So, that is the one people are focused on. The Federal Reserve would certainly be nice for john cryan to get out of the way. They said they are more than halfway through the major things they need to get through on their legal issues, but still, a lot to be done. Lets talk a little bit about the u. K. Election. Campaigning resumes today after causing to respect the victims of the manchester bombing. A new poll conducted shows a dramatic narrowing in the race with the conservatives on 43 of the vote, and labor on 38 . I think there is real evidence to suggest there could be some sort of loosening in that power of theresa may and that comes back to what she had to do a week ago about the funding of care for the elderly. That was a very unpopular measure. She you turned on that area she uturned on that. People are saying that the uturn does not bode well for her status when she goes into negotiations for brexit. Jonathan you are watching bloomberg best. I am jonathan ferro. President trumps visit to saudi arabia coincided with a business conference. A host of corporate a listers took part in a saudiu. S. Forum. Jamie dimon was among them and sat down for an exclusive interview with our own francine lacqua. The world is going to double in size in the next 15 years. There are plenty of opportunities and threats. We spend a lot