global economy. jamie dimon speaking space of do bloomberg. like 15 years.ng europe is doing actually rather well all things considered. america is still chugging along. good --a pretty >> welcome to bloomberg daybreak. i am anna edwards. europe." manus: looks like they are making it official. anna: details coming through, clarion and huntsman set to close by the end of the year. they will combine in a merger of althoughhey say, clarion holders will take on 52% of the business, huntsman 48%. a dual listing in switzerland and in new york. you can find the details about the savings they can get, and this has already been an historic year in terms of m&a in terms of chemicals. $300 billion in m&a planned, better than the previous record. manus: and more news coming through, looks like lafarge has appointed a new ceo. they were close, a lovely line coming from the analysts, saying he needs to recruit a new ceo who will turn the page and get on with it, and that seems to be the key. he's german. he was originally the head of seeker in 1996. that and he is coming from industrial maker -- they have been fending off their own takeover approach. interesting to see how that all shakes out. we also have breaking news from julius baer. manus: he has delivered net inflows, 4% to 6%. the number three player in wealth management in switzerland. they have had a tough time like everyone else trying to get the rich in the world to trade. julius baer, and of april, 356 billion swiss francs. the ceo is extending his reach into italy. last week there was an announcement that they were going for another part of the business in argentina. julius baer saying that inflows at the mid range on an annualized basis. let's talk about the markets. oil is up. anna: we are straight into the swiss business day, let's talk about oil. manus: all aboard the great opec bust. that seems to be the sentiment in the market. template 5% on the price of oil last week. around $50, this is the momentum,. rigs has number of had the longest run of gains since august, 2011. it's the direction of travel. no matter what they seem to do theyen opec and non-opec, have got to get themselves a little bit more aggressively poised to reconcile their cuts, and that is the direction of travel. anna: we will have more on that fantastic interview on the oil story later on in the program. let's get the risk radar and show you where we are on asian equities. oil majors doing quite nicely in the asian session, up by .7%, s&p futures are pretty flat. on thataway, news domestic front, although the comey news flow could resurface later on today. we will get fed minutes on wednesday, 80% chance of a hike in june. manus: let's talk about dollar-yen. even though north korea tested another missile, it is still slightly more risk on. you got the north korean test, the dollar gaining overdone. you will need fresh factors. cable -- this is great. david davis talking about crisis before it began to lay out the plans. . the article was that the u.k. would be prepared to walk away even before the negotiations begin if this bill keeps being talked about around 100 billion pounds. anna: let's keep an eye on that, on the wake of that. european ministers gathering in brussels to discuss the brexit negotiations -- let's get the first word news with juliette saly. juliette: anna, thank you. in saudi arabia, u.s. president donald trump has told arab leaders that the war on terrorism isn't a fight between different faiths. he also called on middle east allies not to wait for the u.s., and to ensure terrorists are offered no sexually. it was an attempt to ease concerns and the trump administration discrimination against islam in the wake of an attempt to ban people from muslim majority countries from entering the u.s. >> when young muslim men and women should have the chance to build a new era of prosperity for themselves, it has to be done, and we have to let them do it. summit,'s help this will mark the beginning of the end for those who practice terror and spread its vital creed. -- vile cree. d. juliette: donald trump plans to propose cuts to entitlement programs for lower income americans. this is part of an effort to balance the budget within a decade. according to a congressional aide and a white house document obtained by bloomberg, the white house will issue a formal budget request tomorrow including $247 billion in cuts. iran's president hassan rouhani has promised to reach across the ideological and social divide after his successful campaign for reelection was dominated by arguments over inequality. he won a resounding victory in the presidential poll, as voters endorsed his efforts to bring out of isolation. as has extended its gains saudi arabia says all producers participating in output cuts agreed on prolonging the deal through the first quarter of 2018. speaking to the energy minister, he also said an extension would help producers reach their goal of trimming global stockpiles to a five-year average. i have not gotten or heard any country that is against the extension per se. everybody wants the extension because we realize we have the objective of bringing global inventories to a five-year level. juliette: global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . that oil story is the theme of the day in asian markets, you are seeing a big bounce in equity markets, the nikkei up by .4%, export data coming through at of japan. also some very solid moves from the hang seng, with a lot of those energy producers rising, and as you would expect. cost is still rising despite what we saw with north korea over the weekend. investors are looking at a where data. look at takata's composition, record high. in terms of stocks we are watching, this is confirming what the market new, that 600 jobs will go. takata is hitting a daily limit for a second session in tokyo after we saw car makers agree to that settlement over the faulty airbags. fortescue, interesting. iron ore up the most in three weeks. willthe founder and ceo give $400 million to a charity, the biggest out of australia. let's have a look at the chart in terms of relation to japanese exports, up for a fifth consecutive month, but the growth is slowing. you can get all the moves coming through, with very solid growth in japanese exports . manus: thank you very much. this weekend, the u.s. corporate titan honeywell gathered in saudi arabia for the ceo foreign investment summit with bilateral ties between the u.s. and saudi arabia. anna: in an exclusive interview, jamie dimon said he remains optimistic about the global economy and the prospect for regulatory reform under president donald trump. we started by asking him if the bank can grow further. >> the world is going to double in size in 10 or 15 years. but we have spent a lot of money on technology, we know what we are doing, we help companies grow around the world and the emerging markets grow twice as fast. >> can you break down the units where you want to defend your market share? >> i want to grow everywhere. we have a high market share, and clients want multiple vendors and suppliers. that's completely understandable. i have publicly said that investment banking may get harder but that doesn't mean you can't gain share in this part of the world. we just know what is going to be harder. >> what about fixed income? a lot of your competitors are trying to beef up that. >> yeah, we have a good share their but when we look at it, if you look at what we can do better in that country, we have plenty of things to do better around the world. we have to maintain the shares. competition is a good thing. we have never been worried about competition. >> we spoke in paris a couple months ago about regulation. what is the mood now? are you still confident about the future for wall street? >> yeah. the trump administration wants to deregulate, and most of us regulations have been holding that growth. i'm still optimistic that you will have some regulatory reform. after years of regulations, it makes sense to look at what was done, what could be done better, will could simplify the burden of businesses, what could help people expand employment and grow the economy. no one is asking for wholesale throwing out of regulations, just improve what is done. manus: president donald trump is also in riyadh, where he made his first major address to the muslim world and made a hundred dollars -- made $100 billion worth of business deals. >> yesterday we signed historic agreements with the kingdom that will invest almost $400 billion in our two countries, and created many hundreds of thousands of jobs in america and saudi arabia. anna: joining us now in the the head of investment strategy and research. great to have you on the program. talk about some of the things we have heard about over the weekend. jamie dimon talking about being broadly optimistic about the global economy, next in with what you have been saying, upgrading your growth forecasts for 2017 for some parts of the world. >> indeed. there's ater, slowdown in momentum, but we were comforted by the fact that investment is finally picking up in the united states. in the eurozone, if anything, numbers have been better than expected, and the emerging markets are just rolling along. altogether we were at the margin where things are a little bit better. manus: it's interesting when you hear jamie dimon talking about regulation, optimistic for wall street and regulation. last week the markets had a shake. we lost a considerable amount of value in a short. it was time. the last time it took us nearly three months to recover. dimon is focusing clearly on deregulation. tax cuts. the great expectation is in that price. is it for you in terms of equities? >> for sure, valuations are not attractive anymore when you think of a globally, so we think at the moment it is still an opportunity to concentrate on specific themes. they have great opportunities, so we remain interested in the market. anna: one of those things is investing in infrastructure. we see a lot of guests talk about that, and this is one of the big things in saudi arabia, $100 billion ambitions for infrastructure in conjunction in saudi. what are your expectations? >> infrastructure is front and center for us, in terms of the long-term investment theme because there is the possibility for many governments to directly fund infrastructure programs of this extends, so the private sector and private investors are likely to be able to share in something that is absolutely necessary, whether it is transport, water, energy, infrastructure, but also affordable housing. we think this is going to be long-term. anna: we get enough funding that because of low interest rates -- >> exactly, exactly. most of the pension funds are yielding assets, and infrastructure can offer that. manus: let's talk about the market expectation. we will wait for the minutes of the federal reserve this week -- goldman says they are scaling back expectations. 10 year government bond yields have 3%. consensus,75% is the bloomberg is 2.8% by the end of the year. when you look at the noise, you listen to the lines coming from riyadh, wilbur ross saying he can't imagine another day that has been as good for the united states or the kingdom, high-fiving with jared kushner -- what does that do to your yield forecast? do you buy into the goldman view that politics might trump the yield hike? >> it's interesting, because at the beginning of the year, we were not expecting yields to shoot up like a rocket. we frankly did not see this fiscal expansion getting growth of those levels in real terms. overtimes leah -- overtime we upgraded our forecast, and we agree in 12 months time it will be around 2.8%. anna: ok. u.s. 10 years. we will talk about commodities and the like. thank you very much. she stays with us. manus: coming up, crude climbs after saudi arabia's energy minister signals output curves will continue into next year. we discuss. this is bloomberg. ♪ anna: welcome back. "bloomberg daybreak: europe." 6:20 in london, each: 20 in jerusalem -- 8:20 in jerusalem. president trump is due to visit israel today, and he spent the weekend -- he will be arriving in israel later today. manus: saudi arabia's energy minister says that oil producers have agreed to extend the cuts by nine months. crude oil climbs to $51 per barrel after extending the cuts through the first quarter of 2018. producers hit that five-year average. i have not heard of any country that is against the extension per se, everyone wants the extension because we realize it will bring in global inventories to the five-year average. >> are you concerned that the market is already progressing -- already pricing the market cuts in? >> i am not looking for a specific price, what we are looking for is an agreement and clarity for the market, steady as we go, committed to that five-year average, with stewardship of the market by a large group of producers, opec and non-opec, working together. is claritye clearly of where the market is going so that the people invest in this concerned about prices over the when supplies -- are short and demand will be approaching 100 million barrels, we have the annual decline and unless we invest and we overcome this supply with significant capacity coming in, we will face a short. we don't want the basket to be squeezed. >> i understand you are talking about a price, but i have been covering opec for many years and shale producers are now part of the equation. let's say it doesn't have the effect you want longer-term. would you think of overpumping, so the price goes down? >> that has never been -- we have never over pumped to squeeze anybody out. i think supply and demand lead to balance, and we have said saudi arabia has the capacity and we will do what is necessary. market that the structure was off a few years ago with a divergence between supply and demand. and the opec action in 2014 would not have done the job. with the restructuring of supply and demand trajectories that took place over the last few years, opec is able to calibrate supply with our risk partners from out side to bring the supply-demand balance better, bring inventory down, and get clarity for investments. anna: the saudi oil minister. our guest is still with us. one of my favorite lines from that interview with francine was "we welcome shale." hey welcome shale but they want it stable. >> yeah. there has always been a swing factor in the oil markets and among oil producers. oil, and that is not something new. market, andf the what's interesting about the technology of shale is that it has relatively quickly adapted. we do think the balance of the market is what oil parties are and the expected demand for oil products was a good economic background. manus: it's interesting how he said we didn't ever squeeze the market. one of the consequences of the oil shift is a high correlation -- you have the aussie, lenny, and kiwi. this is the bloomberg commodity index. the market has gone aggressively short. we are heading to the steepest three-month shift ever. what does that say to you? is that an opportunity for you >> -- for you? you have a contrarian view. >> we do. we think oil related currencies are undervalued, and therefore we think it's a good entry opportunity for investors to undervalueds currency that would benefit from a rebound. anna: do you like gold? gold likes turmoil, but it also likes inflation. >> for gold, what's really important in our view is real interest rates and the u.s. dollar. we find that at the margin, those real interest rates should be edging up a bit more than previously expected. anna: thank you, from credit suisse wealth management. manus: we will talk more about brexit and iran. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's 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. >> when you regulate smaller banks differently than bigger banks it's understandable. let them sort it out. ceohat was jpmorgan speaking exclusively to france inlet adriatic. , to bloomberg daybreak: europe. >> we have a new addition -- you know to get us wish on your stories about the theater -- the was president saudi arabia over the weekend, dancing with swords. bring to the buildings, this is trump backing his criticism on the islam -- best game in defense contracts -- $110 billion. the president lives today and will arrive in israel later on. >> the next story is eu ministers having a busy day in brussels ahead of them, trying to clinch a deal on a greece bailout, while laying out exit negotiation positions. u.k. threatened to quit talks if they don't drop demands for payment of as much as 100 billion euros. there were numbers of all sizes. >> there was a number of $100 billion, jean-claude juncker talked about $60 billion, others have talked about 40-60. this plenty of numbers out there. -- i wasst daybreak sure you -- we just touched on opec, others agreeing -- potentially to extend cuts for nine months to saudi arabia's energy minister. ins -- this will be made may. >> we will have full coverage of that. >> we will. >.? think he will be there. >> don't miss your plan. [laughter] social divide after being reelected amid arguments over inequality. >> they won a residing victory in friday -- central pulse. as voters endorsed his efforts to steer the nation out of isolation through his nuclear we've beeno kamal -- -- let's get the politics. -- very good morning. >> good morning. it's a relief for ron a, and resounding endorsement of his policies engaging with the west, trying to bring iran out of isolation. we saw celebrations across around the country -- reality check. ultimately, that was overshadowed by the latest commentary that came out of riyadh. been anght have acceptance speech on saturday when he said, iran would not succumb to humiliation or threats. i need to run you through these comments just for context. hearing from the saudi king cometh comparing our run to the spearhead of global terrorism and u.s. president donald trump saying, ukrainian -- government gives terrorists states harboring financial backing and social standing needed for recruitment. all nations of conscience quote, must work together to isolate iran and to it funding for terrorism. this is a major setback for the iranian government. , getting the campaign a rate of a solution will help the average iranian in terms of body of life. nightly winds out of the sale of a moderate -- extended to its second term. this is sheer irony. connected anywhere's for him if he tried to charge this -- what he's going to have to do now is find a way to rely another partners outside of the united states to delay any further isolation. he will have another wave coming, the first was riyadh trade some analysts we've spoken to expect further coming out of the meeting today in israel with the u.s. president >> is this is a many parts of the west coming yousef, will be trying to work out how they are able to do business with iran, it being opened to the west. how is rouhani dealing with the west? does it resent that relationship little bit? many european businesses still want to be there. yousef: right. the best way to compare two is -- the stronger the alliance between saudi arabia and united states, the less advantageous it is for iran. anduld but hassan rouhani his government and a quarter in terms of having to make more concessions to bring more partners on board. europe has been more open to a conversation with iran. see there were european partners who do a lot of business in iran, a policy chief graduated hassan rouhani on the victory. good sign of modernism and way forward in iran in terms of brother collaboration. the other question becomes, if you look at what kareem scioscia percent from the carnegie -- endowment for international pc he said, there are few major countries who quotes, believe iran is the greatest source of instability in the region three key countries like russia, .urope, china those countries are unlikely to easily to be able to tag on to these plans from the u.s. and tcd to isolate walls around iran. >> yousef, thank you, great reporting from tehran. iranianhave more election coverage -- the discussion with someone who shares the desk chairs the british board -- iranian chamber of commerce. >> here are some highlights for your week ahead. president trump continues his first overseas trip to israel. then the government budget request sent to april 1 $.7 trillion of cuts as part of plans to balance the budget. >> on wednesday, the fed releases its minutes of its fomc. delegates gather in vienna on thursday. they will also be there with the partners to decide whether to extend their regime supply cuts. >> trump runs of the week by joining chief seven leaders for their annual summit sicily. any comments from that we're keeping an eye on. so i try to put these things together, we saw a great deal of volatility for change. this was also in emerging markets. what is your attitude towards emerging markets right now? we get volatility even in developed classes because of what we had last week from president trump, where does e.m. had? >> into -- emerging markets surprise us by how strong they have them and the beginning of the year. is sowing the outperformance emerging markets of done. just out of a discipline -- the fact that emerging markets actually are not positively by oil prices specifically, it's a good time to take a bit of profit on that. it's just good discipline. we're waiting emerging markets as a result. i think would call -- this is beginning to take its own form, in terms of where you work, switzerland -- also in the eurozone, take a look at this. this is the ritz reversal on the euro. it is -- it's positive for the first time since 2009. there seems to be an aggressive shift in terms of the euro. this is a three-month i-5 risk reversal. don't ask me to calculate a but it's on the move. do you join -- had that become consensus, for the field there is more money to come towards europe? >> at the moment, flows are showing that although some inventors -- eurozone equities are still flowing into the market, this is supporting a market that traditionally benefits when the currency is weakening event. we think the giro is too strong at the -- of the euro is too strong at the moment. >> it got through 110 and paused . hasn't stopped out? >> those fluctuations and the short-term, i tend to never make forecast around those. what i know for sure is that there is a law of gravity. the was dollars one that is valued the moment. that's in terms of what to expect from the federal reserve come and support for this it's an, so we think opportunity to consider eurozone -- expect the euro to weaken. >> which equity would you like -- do you like at the moment? interesting for me, the embassy specifically around europe -- interesting that you think industrial consumer staples will underperform may be. industry is in the context of what you said about infrastructure -- i remember, there used to be a trade where you about those engineering companies that would do well from emerging markets and also -- not the last markets so few at the moment. >> industrials have benefited already infrastructure expectations are in prices -- in the system as of last year. it has always been interesting to go after the sectors that have been liking -- lagging. pr i od -- period of a long-term trend. we like the energy sector tactically. it's a great opportunity to consider -- if you are expecting -- ways to recover. >> thank you very much for sharing of thoughts with us. >> if you are a bloomberg -- you can watch the show using the tv function as well as video stream of your a customer. coming up, >> view conference exit brexit talks. meanwhile, eu ministers meet in brussels today to discuss their negotiating positions. this is bloomberg. ♪ >> welcome back. york.hould of euro -- new snp might be starter at the beginning of u.s. trade. bloomberg business flash. >> fort seo matfield's is said to be leaving the company with an announcement sets come today. according to a person familiar with the situation, fields will be replaced by jim backus, cubesmart -- of spokesperson says it all comments -- president clary at -- merge to create a chemical company with an enterprise value of about $20 billion. deal stock will see clary at -- 52% of the new entity to be hauled on smith clary. the new company's global headquarters will be in switzerland with operations running out of the u.s.. the film has had seekers -- ceo jan jenness will succeed eric alternate the home of the world's largest cement maker. the appointment take effect on october 16. last month's announcement that ultimately resigned in july following internal probing into operations in syria -- the latest upheaval at lafarge -- creation in 2015 from a merger of french and swiss rivals. blackstone is said to be eyeing more than $100 billion in infrastructure investments, with a new strategy anchored by saudi arabia's public investment fund. they've agreed -- agreed to commit $20 billion in the pull of blackstone plans to raise the same from other investors. this comes as tech executives defend -- as he was president trump visits the kingdom. that's your bloomberg business flash. >> thank you very much. matt miller joins us from berlin. the dates here. they'reone of josh -- helping to rally troops -- opec and non-opec this year. we focused on? >> oil. it continues its rally again. take a look, dlt out screen up which shows you a great overview of the different commodities. the tapestry nymex crude at tempos -- of a percent -- brent crude getting up 8/10 of a percent as well. are up thisils morning. that will push through some performance and indexes as well. take a look here at the wb ice cream -- you can see that the asian indexes here -- make a gaining of half a percent, hang seng gaining 1%. the games there at the bottom of your screen that you see are coming through because of gains in energy producers. if i click on the futures tab right here, you can see that we are looking at positive -- positive open here in europe, at least this prices of half a percent right now. the cac, deck look very little changed. let me quick over quickly to the wcrs screen. you can see currencies moving in relation to the dollar. you can see the most asian currencies are putting up gains, not including the yen, which is key. the ecb jan -- one, tied on, you rupee gaining. down on the lost side, japanese yen, losing after big strength early last week. you also see the pound and euro down against the dollar. >> mavs, thank you very much. european union ministers meeting in brussels later to discuss brexit negotiating position. the u.k. is threatening to quit unless the block drops its demands -- which could be as high as 100 billion euros. how is the likely to respond to the threat? you can see him say he was learning to walk away, or maybe he's just sitting up at that could possibility -- be a possibility in the future. >> it's pretty strong language from the u.k. side. what you see i think it's just more hardening of the position ahead of the start of the negotiations. for the u.k., you have to remember there in the middle of an election campaign here. lot of this rhetoric is for domestic consumption mostly. i think we will see a muted reaction from the eu on this. no one is scheduled to speak today specifically. we'll see what happens during the meeting went today here in brussels that is supposed to rubber-stamp the mandate for the talks. that's probably going to see tightening of the eu position on that, but not too much. i think the eu at this point is going to just wait and see what happens in the election, then go forward after that. , could to see you this morning. you've got some qualified -- people u.k. zynga could be 5 billion euros, some meta-hundred billion euros, everything else in between. thelikely is it to be at upper and -- where does all this come from, where will be the defining fact of what this deal is? there's a lot of things are going to this. this is part of the problem in trying to estimated. one of the things theresa may has said recently is that the past payments that the u.k. has bee into the eu should counted in its favor. this goes against what the eu says. the eu says whatever the country supported the eu in the past is technically eu property and is part of the block. this includes buildings and real estate and everything basically. they you a saying they have to settle the accounts, go and look and see exactly what the u.k. has put into it, but the withations of the eu are the u.k., then what the u.k. needs to pay towards those obligations going forward. it's a messy calculation that they have here. eu has eased its stance a little bit, saying that they don't make to have a definitive figure before they move on and negotiations, they just need to agree on the methodology of getting to that figure. the methodology itself is pretty messy. >> yeah, they just have to agree on that, sounds -- let's talk about something else that should be simple as well but has not proven to be. that's greece. the euro-area finance is gathering in brussels. this is in them -- another part of the agenda brussels then. >> right, a very busy day here in brussels. ministers are going to be meeting, trying to reach a deal in order to give greece the latest tranche of its bailout fund. the chances at this point -- the eu officials are telling us it's 50-50. looks like what we can anticipate at the leases a meeting going listen to the knights again. >> those late letters -- we're good at that. jones hayden joins us from brussels. the next, when you hear what joe said -- setting up for the stall of the brexit negotiations -- we haven't even begun. , your focus too much on the nuances of movement in currencies. it is going to be a bumpy ride. that has manifested in the currency. 130, wepicked up at have volatility. this is one month volatility, it's rising up the six data row. breaking at the 50 day moving average. when you guys and girls to brexit, how do you look at the prism? the the currency, equity, or through what the prospectus of walking away with no deal? >> for sure, it's a source of volatility. when we tend to think about brexit or anything come as we like to have anchors, the economics, then volatility sources of opportunities to get to the anchors. with respect to the pound and currency, we think it was a currency that was trading cheap, so we like to being in the long we find that when there is volatility, and this is stalling -- again a good opportunity to consider come in particular against the euro, but frankly also against the u.s. dollar. we are heading towards again 130 or above, for the next few months. >> i know you like to look at investment through long-term trends, super trends as you describe them. do any of your super trends tap into the brexit story? we've heard a lot and the u.k. but what the parties would do with various companies -- the labour party wanting to re-nationalized some assets, conservative party suggesting there might be more protection or scrutiny and foreign takeover, does that -- >> we think the political change that is happening worldwide, at least in industrialized countries will put emphasis on national champions. with think it's all about reading jobs at home. everybody doing that -- putting more effort into the domestic economy. that puts a number of sectors -- in some countries it will be more on the construction side, industrials. and others like europe, health care, you can think of one of those. so national champions -- defense, we arty have seen a bit . then an emerging markets, they be investing in their own consumers. >> you mentioned defense. think aas back -- i great deal of what happened over the weekend, what would happen with helicopter berlin -- defense contractors in the united states of america. this commitment by nato countries -- 2% of gdp of their defense, this is boeing, general dynamics -- disposable to look at it. a big focus will defense before you? >> it will be part of the world over the couple of common next years. talking about a nato currency -- countries at the moment -- only three of those nato countries are satisfying the criteria the u.k. -- u.s. and poland, rest is far beyond, below that. so we think even european defense is likely to pick up our contracts. >> and the u.k. were the tech about national champions, does this mean energy companies -- protected from current takeover -- what is this main? >> in the u.k. there certainly part of that defense for sure. then also spent the u.k. are concerned, retail sector -- just having consumers's what are the things that the government will have to ensure. >> think is so much for joining us this morning. thank you. defense spending was topical saudi arabia. up next, jpmorgan ceo talks regulation under president trump. we will bring you are exclusive interview. >> the trump administration wants to do you regulate certain things. business relations have been holding back -- going by certain polls in these countries, not just jpmorgan. it's important -- i'm still optimistic you'll have regulatory reform. after years of regulations, it makes sense. , it makescratic sense sense. we will look at what was done, what can be done better. ♪ >> the art of the deal, donald trump takes on his inaugural trip abroad, a bonanza of a multibillion dollar contracts and saudi arabia. >> i can't imagine another business -- is good for the united states. >> all aboard. u.s. oil rallies -- a saudi arabia set producers back a nine-month extension for the opec output reduction plan. >> everybody wants an extension. we realize we have a not cheap -- achieved our objective. >> jpmorgan ceo says, he is still optimistic about the global economy. he speaks exclusively to bloomberg. >> japan has grown in 15 years. all thingsoing well considered. america still chugging along 2%, give or take. that's all pretty good. set tole mark fields is be leaving a carmaker amid a loss of confidence in his leadership. >> welcome to bloomberg daybreak: europe. i manus cranny. >> i'm anna edwards. 7:00 here in london, 8:00 here in paris. let's have a look at futures -- set to open this morning. -- perhaps this on the back of decent session in asia. >> keep an eye and the swiss market -- open 4/10 of a percent higher. we of the confirmation -- who's been shareholders get together -- $40 billion -- $14 billion deal. that's one sector that keeps pumping along. 300 million -- billions of dollars worth of deals in the year. that's when we'll keep an eye on. oil is the underpinning of everything, reflected here. along above this $50 line. >> counter production increasingly likely given what we've heard over the weekend. we are nearing $51 a barrel. this is how this all plays out in asia -- we're seeing this -- manage that oil story on asian equities. some asian companies -- up by a decent amount -- the whole asia-pacific region up by three quarters of a percent. u.s. equities get a little bit of of -- a bounce at the start -- donald trump is on to her. changes little bit on -- less than other news -- we will still news surrounding the fbi and james comey later on today. is touring all cities -- i can't imagine another day of business that has been is good for the united states or saudi arabia. at dollar-yen.ok --pite north korea, the this and as he said, trump will face more criticism in regards to call me late friday night -- dollar-yen stomachs higher. you have the dollar leading that move higher. you will need fresh meat to get dollar-yen to move -- volatility is rising, this is the u.k. threatens to quit the brexit negotiations and the eu drops its demand that massive divorce payment, 100 billion euros. >> even the korean won rally. korea, the testimonies give some sense of where we are. but some bloomberg first word news. >> and saudi arabia coming was president donald trump has told arab leaders that the war on terrorism is the fight between different faiths. he also called the middle east --ies 23 was how to crush amateur terrorist final century anywhere. an attempt to ease concerns of the trump administration discriminates against islam in the wake and in -- attempt to ban some people for majority muslim countries from entering the u.s.. andhen young muslim men women should have the chance to build a new era of prosperity for themselves, it has to be done. we have to let them do it. with god's help, this summit will mark the beginning of the end for those who practice terror in spread its file created. trumpthe u.s., donald lands to propose $1.7 trillion in cuts to a category of spending that approves entitlement programs for lower income americans. that's part of an effort to balance the budget within a decade. according to a republican congressional aide and what has document obtained by bloomberg, the white house will issue a former budget request tomorrow that includes $274 billion in cuts over 10 years to antipoverty programs, including out -- a cyberus honey has promised to reach across the country's a. schu -- ideological divides after his campaign for reelection was dominated by arguments over deepening inequality. the moderate cleric won a resounding victory in friend's friend is and shall paul. oil has extended its games a saudi arabia upset all producers participating in output cuts agree on prolonging the deal through the first quarter of 2018. the kingdom's energy minister also says an extension into next year will help producers reach their goal of trimming global stock down to a five-year average. not spoken or heard of any country that is against the extension per se. wants the extension because we realized we have not achieved our objective of bringing global inventories to the average. the pacific trade ministers have issued a diluted action statement after weekend meeting in vietnam. this came over a dispute over wording stash weather turned for the good to about protectionism. instead the document focused on andes like regulation -- suggested further pressure from the u.s. to avoid explicit pledges to combat protectionism. if everybody on this world wants to kill clerics -- do things about its trade policy. talks about the memorandum, the farm that was on everything >> heavy approach to us for me? >> no. >> as they approached you? >> no. >> global news 24 hours a day powered by more than 26 hundred journalists and analysts in more than 120 countries. you can find more stories on the bloomberg. day, a loteme of the more risk on appetite. of the end weekend, came closing of the session up by 87 points -- half of a percent. it wasia's is a 200 -- raising those losses -- we've also seen struggle to happen in north korea up 6/10 of 1% -- record high. >> in terms of what we are been watching -- it has been doing quite well after confirming that it's getting rid of 600 jobs -- managerial staff, not pulitzer cabin crew. searching by the daily limit for a second session after reaching over the faulty airbags at the end of last week. alsobrought it up 2.5% -- 21st of made $400 million to an australian territory. charity. btv 8017. japanese exports rising from a fifth consecutive month in april. we have seen the pace of that growth slowed somewhat. 7.5% europe -- estimates. down from 12% we had seen in the previous month of march. still seeing a lot of strong demand for the japanese exports. >> thank you very much. the weekend was full of theater, the u.s. called for titan thether honeywell -- investment summit -- bilateral ties between the u.s. and saudi arabia, -- speaking from saudi arabia and an exclusive interview, jpmorgan ceo jamie dimon says he remains up -- optimistic of the global economy and forgets hurry for -- reform under trump. started by asking if the bank growth -- >> the world is going to double in size in the next 12-15 years. it funny of opportunity -- plenty of threats. competitors around the world, but we have -- we spend a lot of money and technology. we know what we are doing. we help companies grow around the world. we're in emerging markets over twice as fast as a developing. >> can break down what you want -- you want to defend your market square, and where you are aggressively trying to push it question mark >> everywhere. with high market share -- and clients want multiple vendors and suppliers. that's understandable. publicly said in investment banking -- does mean we can't gain shares in this country or that part of the world. wehaven't given up any share just know -- it could go harder. a lot of your competitors are chained to beef up fixed income. >> with a good share their and it will be hard to gain. again, will be looking at it. if you look at what we can do better in that country this country -- with plenty of things to do but around the world. a lot of it will go to technologies -- we have to mention our share -- some competitions a good thing. of never been worried about competition. we want a competitive world. of course, as long as you are better than them. >> will that's our goal, but we try to do. >> we spoke in paris couple months ago, talked about regulation trade what's the mood now -- are you still's confident about the future for wall street question mark >> yeah. the trump administration wants to deregulate certain things. most of us in business think that regulations have been holding back growth. frost all citizens, not just jpmorgan. that.ports understand i'm still optimistic there will be regulatory reform. after years of regulations, it makes sense -- you might democratic friends understand that makes sense to look at what was done, what can be done better, what can settle fed up as -- burden of businesses what can help people expand employment and grow the economy. norms asking for wholesaler throwing out of regulations -- looking at the light of day and to see what was done. >> jamie dimon their speaking with francine lacqua. president donald trump was also in riyadh this weekend, where he made his first major address to #$100 billionld worth of business deals in the region. >> yesterday we signed historic thatments with the kingdom will invest almost $400 billion in our two countries, and create many hundreds of thousands of jobs. that's in america and saudi arabia. >> let's bring in another voice to the conversation -- global equity funds manager -- manager 300 -- richard great to have you on the program. this coming from saudi arabia -- does this happen to things you are investing around at the moment? this is a look. trump -- creating jobs in the united states according to donald trump. and he was turned in defense of this time, infrastructure -- tepid to any of the things that you like? said certainly for defense companies it is been an important week >> a think you are right in general -- and structure general for us -- interesting areas. as we look at the market right now it can see strong momentum any additional deals that can be struck over the weekend will have that as well. the end of guest on last week -- talking that the s&p 500 -- as obesity volatility this 29 palinhat dishes on two times in history that we have been -- near valuations tuesday 1929 -- the month preceding the 10 brexit 2000. hunters are you? >> i'm not nervous. the result say that, going back to his earnings momentum you've got. the fundamental that job is good for investors. if you look at the earnings season 3000 euros and europe -- we have several top and bottom line. that's coming through earnings revisions, others as well. europe's on track for 50% earnings growth this year. having started the year 13 -- that the number that's going to. this is a big shift from the past were usually start at 10%. that ends up being flat for the year. think that momentum there -- to your point about valuation -- yes. but if that momentum continues i don't see any reason why this should stop. >> where would it be good? it's been a european focus for many guests we have talked to come with the french election. >> europe to me is the most exciting, not to say the others aren't. the us is on track for 10% -- japan is interesting. thing from a corporate perspective there as well. this will always be a make or as the principal risk -- fades into a larger -- a lot of people are focusing much more on the corporate world, that's to me where the excitement is right now. >> it's interesting when you look into your nuts -- talk about the first quarter -- a gdp printed the united states of america -- they still like home improvements, diy, that this momentum these kind of various. >> if you look at it, the u.s. consumer is in a healthy state. the question is where the dollars are going. spartan stores have been struggling. macy's chemicals, nordstrom, others. also the comments from macy's ceo said the u.s. -- retail. --me that implies there is things that need to come out of industry. as a big shift. doingies and to be set -- the right things. where they're coming straight numbers, putting more investment in online -- that's a good example where amazon has taken a lot of market share. home improvement has been an area of strength. that's one area where we have robust -- the likes of home depot delivering 5% -- think an area there again we could see growth -- home improvement. >> when you look back at last week, given your positive attitude there towards equities of the moment -- lisa the while the last week in relation to the trump administration tells about what it can achieve, can't deal with this distraction around the fbi at the same time is dealing with an ambition gestural the slave agenda? when you look at markets, do you think that was just markets looking to be negative, or something more substantial going on question mark >> are you believe you look at with a vix was -- you can argue there was complacency starting to get built into markets. a think what happened last week is a good example, he will occasionally get pulled back if perspectivefor my will be focused on trump again. for me it's about the direction of the administration. this idea that you will get an easy -- regulations around certain sectors --. such as fiscal -- infrastructure, tax cuts, my point would be -- a lot of this agenda is very ambitious but if you can deliver some of these reforms, the key will be getting -- corporate tax will be an important part of that and that will be good news for markets. some of the direction of travel rather than necessarily where the final destination will be. >> just seems as if there's that -- that element has died in terms of what he can deliver domestically. just wondering to what front the real trip will facilitate market confidence in him. much more to discuss. >> up next, oil heads -- opec and other producers support curving output into next year. we will talk crude ahead of this week opec meeting in vienna. all that coming up. ♪ >> fresh dame berlin. 1192 in the euro-dollar. date: 21 a.m. in berlin, 7:21 a.m. in london. bloomberg business flash. seo mark replacing fields -- for it is replacing their ceo -- a turnaround specialist. familiar,to a person the company plans to announce that that -- he is retiring and hacker will move up from his position as head of 4 --. the company -- can confirm any media speculation. merged tong clarion create a chemicals company with an enterprise value of about $20 billion. that will see clearing off -- 52% of the new one to become hunter and clearing. the new company -- headquarters will be in switzerland with operations run out of the u.s.. hase fresh wholesome -- secrets to your -- jan jenness will proceed erik paulsen at the helm of the world's largest cement maker. if i'm effect on october 16. les moonves announcement -- followed an internal probe into operations into syria. the latest appeal for the company since its creation in 2015 with a merger of french and swiss rivals. the two bloomberg business flash. >> thank you very much, think you for staying extra late in australia, haidi lun. $51 a barrel's where oil is heading. so you read the single producers are participating in the cuts. the potential he greater extent that deal through the first quarter of next year. >> global equity fund manager -- richard, how do you look at these come out where it's heading higher on the back of these -- this news we broke -- or we held in this range on oil with the opec and friends on the one-sided u.s. on the other? how do you investor-owned oil ,uestion mark >> this deal extension of the cut, is critical. we have this tug-of-war this year. a balance, finding this will be important. that $50 mark is the watershed mark. shell, bpll likes of -- $50 is critical. from cash flow perspective covering dividends come up from what we can get a bounce in the $50 level that she could see is perhaps trading in his 50-60 range that we did that we've done before. that's me is the key, extending production cuts will also be important. >> one of the things -- we've had this news overnight is -- going to be replaced by jim hacker. so that's the hook of the news. bettinggot here is ford on electric. taking the company forward. when you look at the supply change, autos -- we've had a number of different guest. do want to be exposed to autos or to the supply chain -- in terms of higher tech and off the supply chain? >> good question. if the supply chain, not the oes. we talk about sectors being disrupted, you mentioned u.s. retail. also undergoing massive to me the way you play this as an investor of the long-term is to look towards auto-parts suppliers, whether be the -- it has come a conventional vehicles, to me there's an interesting play on auto chip technology. if you think about it -- i think the chip technology component is $300. if you think about it in terms of percentage, that's only 1% of overall price -- so you can easily see the move from 1-2% as more and more of this technology gets built into vehicles. so that's very interesting -- semiconductors -- will play very nicely into this over the long-term. as investor, it's about auto-parts supplies more than oems. you or a chemicals for m&a? we can news this morning that -- going for talk about -- confirmation of a deal between husband and larry. when racing billions in the -- $300 billion of m&a planned. >> think you will continue to see more. chemicals has been a hotbed right now. linda, others as well. that spanned -- chemicals has been important. juicing that across a number of sectors. still to some of those of cash on the bouncy -- deck work -- markets are successful. any reason why that my continue -- this ties in the confidence is wealthy think about. these animal spirits we keep touching on -- the more confidence ceos feel, the more you see m&a. >> richard, thank you so much. up forfor a brisker open tencent 1% on london. indicated at 4% higher this morning -- market open team -- take the conversation forward. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. crocs welcome to bloomberg markets: european open.

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