Led by the minors, down by 1. 5 per dollaryen, what a move on friday. The biggest move since october of 2014. We erased some of those gains, down. 6 of 1 . And yields are creeping higher. The 10year now up ahead of the Federal Reserve decision. Carol watching the markets and some specific names, lets head to matt miller with some stocks to keep an eye on. Matt first off, some energy names. We have energy down or oil, i should say, coming down off a fivemonth high. As a result, a lot of these Energy Companies are down as well. We are still looking for earnings for most of them. Conoco is out tomorrow. Murphy and marathon are coming out next week. We already had schlumberger, to sixell to a five month high on friday. A lot of these companies are coming off good runs, starting the day down across the board. The same is true in europe. Oil stocks down, but also the commodities of stocks the minors are down. The underlying Commodity Prices are falling as well. You will see php we have had an incredible run in the shares. Anglo american is up 150 this off it is, so coming still not bad if you invest at the beginning of the year when all of the analysts were telling you not to do that. Daimler and volkswagen are falling as well, and volkswagen had a great run, but daimler and volkswagen together have had a rough year. Volkswagen is down 20 year today, that year to date. Obviously the Diesel Scandal that has started to engulf other companies, daimler including itself in a voluntary recall less weight. It is also talking with the u. S. Justice department or helping the u. S. Justice department to investigate possible diesel in missions errors diesel emissions errors over here. Fiat chrysler as well was mentioned by a german minister on friday as one they are continuing to investigate for email ands problems. For emissions problems. It is taking a hit now. It took a hit then. Just a tremendous bloomberg report today on japans stock market. The boj, a top 10 holder in about 90 of the nikkei 225. It is well known what they own in the Government Bond market. It is wellknown what they owned in the etf market. But to break it down, are we expecting governor kuroda return up the idea of matt i did not know that before i read this story on my bloomberg on my mobile phone this morning when i woke up hearing in amazing story. I have looked into one of the etfs here, the fast retailing etf. You can see the third entry here , Master Trust Bank of japan. You can click on the graph on the side and see the bank of. Apans holdings overtime they now own 12. 5 of this etf. If you look at all of the nikkei 225 stocks, the bank of japan is a top 10 holder in 90 i am not sure how well known that was. Are a topee they three older in psalm stocks, top five holder in a lot of them. But 90 of the nikkei 225 companies. As far as the etf, it is a bigger share. They own half the markets of japanese etfs. The etf market in japan, not quite as big as that here, but they own more of the rest of the market from this graphic. Down, to allit equities in japan, they own about 1. 6 of the total equity market. But that is still a pretty sizable chunk. Jon matt miller, thank you very much. John micklethwait joins us around the table. Price distortion is one thing. The solution for one problem seems to be the source potentially for another. Where do you start when you break down those numbers . John it is sort of state capitalism from a new direction. Governments used to own vast arrays of companies. Privatize on the one hand. Others are thought to have strategic direction. This is not strategic direction. It is just buying them and ending up with it. It is a new version of the bank of japan. David the 1. 6 may issue because its concentrated. There is a fairly large position. To go back to jonathans point about the shareholder meeting, that is a serious point. You expect shareholders to exert some influence on the company. Factor. Nership is a big if you own the shares in something, in the end you have to have some degree of voice of what is happening. That is not really the aim of the bank of japan. That is taking you back into charted territory. What happens . Do people call on the bank of japan to intervene . Are they expected to behave differently to what shareholders do, etc. , etc. . What does it say when it feels like officials are doing everything they can to shore up everything in the economy, and yet they are still having trouble . John that is the other story. They kept on doing this stuff, and it is the thing it is the same theme we have discussed before. Politicians are not doing enough. That the regulation we all looked for. There is not the same degree of opening up that would have pushed the japanese market through. Ofis back to the same sort deals that we are seeing in europe. Big story this morning, saudi arabia. Totwo hours, we are expected see the sweeping reforms moving away from oil. We have heard a fair amount of this in your interview with the gevity crown prince. Give us a preview. Over the past three or four weeks, they have now announced that the king approves of the plan. The plan is for 2030. By then, saudi arabia, the biggest oil economy in the world, to move that into one where where oil is right in the center. It a privateg company, giving bits of it in the market, putting inside that putting it inside a Sovereign Wealth Fund. It means redirecting many of the subsidies, trying to bring trying to do something and this is where it gets sensitive and this is where we will see exactly what they will do. Trying to do more to liberalize saudi arabia to attract Foreign Investors in. All of those things are huge, but it is a dramatic change, and whether they succeed or not we will wait and see. Right now confirming largely some of the bloomberg reporting that has already happened, the ipos for remco, the ipo less than 5 . The evaluation has not concluded yet. My question to you, if we were talking about china, would we be skeptical . Looking at the government from last year, the fact that two thirds of the whole country are employed by is this too little, too late . John it could be. There is some ground for hope, but not all of them great ones. One of them is they now know, they all understand that something has to change. Second, there does seem to have been extraordinary waste. , it they talk about money is on a level unknown. Normally you are used to hearing whenever a western politician will cut and says i are known to be rubbish. The other fact, this is still a monarchy. The king wants something and his son wants something. There is a bill of there is the ability to push things through in a slightly chinese way. There are difficulties with the matt i have just quickly graphed on the bloomberg terminal saudi arabias unemployment rate. The information only goes to 2015. Europe. Uld be high for i am thinking about the other half. How many of the 90 of people that are not unemployed are working in jobs, and how many of them just count as employed because they are on state oil payrolls and they get money and they are tribal and living on the land and not really working . John a huge amount, and you have a huge number who are underemployed. Who are not women allowed to hold jobs. There is a vast reservoir of people who may feel discontented, who may feel angry. One of the big issues here is that those of the people at the moment they are pushing subsidies toward. What happens if they take away those subsidies, which is the rational economic thing to do . At the same time, they do not give them the kind of representation. Jon part of carol part of the plan is that there is also going to be social change. For women having greater rights there, does that jeopardize the economic aspect of this plan . John making saudi arabia more liberal based in the long term will bring in more investment. This huge gleaming thing carol it is empty, isnt it . If yout is empty because work at Goldman Sachs or morgan stanley, you do not necessarily want to go there her. In the shortterm, it brings the reformers absolutely into conflict with some of the more conservative elements of the religious establishment. That is the deal that the saudi monarchy has struck. Some say over the religious side in exchange for supporting them. At some point, those things come into conflict. David we are calling john micklethwait, our editor in chief. Thank you for being here. With someine hyde first word news now. Caroline president obama has made it official. He is sending more u. S. Troops to syria to fight islamic state. The president spoke after visiting a trade fair in germany. The breada a small of Operations Forces are already on the ground in syria, and spread of small Operations Forces are already on the ground in syria. I have approved an additional 250 u. S. Personnel, including special forces, in syria to keep up this momentum. Caroline they would be training local troops. Two gop president ial candidates, cruz haveh and ted agreed to campaign in certain states and avoid others to try to stop the nomination of donald trump. Latestorth koreas attempt to display its military might. The regime says it has successfully test fired a missile from a submarine. That would make it harder to find out from outsiders when north korea is doing before it launches. Global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world, i am Caroline Hyde. Jon coming up, the president weighs in. Obama says if you want to trade deal, get in the back of the queue. Carol this is bloomberg. The coceo of Deutsche Bank and four Bank Employees have been acquitted in a fraud trial. The charges were linked to the claps of the media empire to the collapse of the media empire. Trader. Being sued by a the trial is taking place in paris. The trader emailed a 1400 spreadsheet listing all of hsbcs transactions back in 2010. He is demanding money in compensation. Bank export import this week, airbus will deliver its first airplanes built in alabama. Buyers could that is your Bloomberg Business flash. Obama spoke this morning in germany to announce his approval of the point 250 more special forces to syria, a part of his plan to keep up the momentum in the United States fight against islamic state. Our guest joins us now from berlin. For anyone who thinks this is a largely ceremonial tour of europe, does this tell you otherwise . This tells you otherwise to a point, and also his message. He has made it very clear that he wants europe the european union, which by now is 28 countries, to stand together. He repeated that message today in his speech at this Big Industrial fair in hanover, and he also made it clear before when he was speaking with chancellor Angela Merkel of is, sure,he message the u. S. Can stand up and send 250 extra special forces to syria, but europe also has to stand up and stand together. Members you mentioned could become 27. At this point refugees, immigrants, the crisis that has emerged over the last several years is at the forefront of those conversations. What did he have to say about germanys role in all of that . He was verily if use of that he was very if you save he was very if you save with Angela Merkel. Turkey a solution with to the syrian refugee crisis, obama stood up and basically said she is doing the right thing, she is on the right side of history, praised her moral stance in general, and stuck up for her on this very divisive issue in europe. So that was a very clear stand there. Basic Building Block of the European Alliance has been nato. The president has been concerned about whether countries are stepping up on their commitments there. What is being listened to by our nato colleagues . It has been a longrunning issue that the u. S. Feels that the burden sharing in europe is not big enough. Germany it is interesting because germany just this year merkel to steper up its defense spending not in a huge way, but it is an increase. He, alongside merkel yesterday, pointed out that europe is not doing enough, in his opinion, on this matter, in terms of defense spending as a share of gdp. So it is a sore point that has not been resolved. Jon thank you very much for joining this program. New bankrolls are being proposed in the United States that could have a big impact. We talk about that on bloomberg. Jon this is bloomberg. About those go hours away from the open in new york. Futures here in the u. S. , soft. Dow futures down by 31 points. Germany, the e for unexpectedly weakening. The dax a little bit lower on the session as well. Push up the board just very quickly. Through the other asset classes, yields down by two basis points. 1 i retreats by. 9 of retreats by. 9 of 1 . A big pop on friday, a bit of a 111 point 13. The big market moves of the last week or so. Matt all of this is very global, jon. Let me start off with a couple of stocks that had great rallies this year. Caterpillar sticking higher again this morning after Goldman Sachs upgraded both names. Now in neutral, that they were cautious, citing a recovery in china and mining fencing. Morgan stanley, in what i think mining spending. Morgan stanley says the recent jump in china commodities prices has stunned world markets. Seeing jobs in steel, iron ore, copper, even garlic. The chinese obviously had speculated a lot of equities markets and real estate, and now they are going into commodities. Southwestern is taking a breather, but take a look at what the stock has done since march 1, more than doubling in price. Today cal and cut its pricing to market reform, sending shares lower back to the fivemonth high from what they close out on friday. Cowen had an incredible run. Taking a look next at spanish giant santander. Jpmorgan says the shares are undervalued and traded just 7. 6 times 2018 earnings. Morgan is warning that investors should keep European Bank exposure low. A lot of global calls in the market this morning. David time to take a look at the top trending stories on the bloomberg terminal. You can look at this yourself. We are listing several of them up there by now. One that struck my fancy in the United States we have these regulations that are motivated for the best of reasons and have these unintended consequences. Tomorrow the fdic is supposed to vote on this new set of regulation they say you cannot collect your bonuses if you are a banker for a full five years. Up they cause people to base pay. And secondly it will make it difficult to recruit people from other banks per that is not the s intention at all. Jon what do we get . David this goes the other way. Carol coming up, it is a big week for economic events. Do not forget we have the fed meeting we will talk about that on bloomberg. [ soft music ] e. T. Phone home. When you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Show show me more like this. S. Show me previously watched. Whats recommended for me. X1 makes it easy to find what blows you away. Call or go online and switch to x1. Only with xfinity. Carol welcome. I am carol massar hard. Lets get a check on markets. A busy week for investors. Down across the board after two weeks of gains for stocks over the past couple of weeks. The nikkei is down, and a big week for the bank of japan. They are meeting expected asset prices. As for the currency trade, you can take a look at the yen. We saw the yen take a hit on friday. And if you take a look at crude oil, trading lower with more supply on the market. All right, lets get to the first word news with Caroline Hyde. President obama is pitching American Business in germany. He spoke alongside Angela Merkel. So here in the u. S. , we are proud to showcase americas commitment to innovation. You will see pioneering Countries Companies changing the way we live, work and learn. So this is another chance for me to tell everyone to come here and by made in america. [applause] said thatsident also Companies Looking to create jobs should set up in the u. S. The Obama Administration will decide in the next few weeks whether to release part of the secret chapter from the investigation into the 9 11 attacks. That is according to bob graham who was the cochair of the investigating committee. It will shut light on possible saudi connections. And the brussels subway station hit by a suicide bomber has reopened. Trains began rolling in this morning. Therwhile, the attackers o target, the brussels airport, still is not up to capacity. Global news 24 hours a day, powered by our 2400 journalists in 150 news bureaus around the world. I am Caroline Hyde. Jonathan thank you. Breaking news with matt miller. Matt yes, i am looking at the terminal right now. We are seeing headlines come across let me get in here, for one second good net is going to buy Tribune Publishing for 12. 25 a share. There is some and the day news to kick off your monday morning. Give it has a ticker here. For 12. 25 atribune share. It said tribune has refused to begin construction of talks so it could be a hostile takeover. The offer is a 62 premium to tribune shares before the april 22 close. So far, that is all the information we have. So it is looking to put a premium on the shares, 12. 25 is the deal. Jonathan a busy matt miller keeping us on top of the story. Back to politics where president obama weighed in on a potential breakxit. That the saturday u. K. Would not be able to negotiate something with United States fast or than the eu. We wouldnt abandon our efforts to create a trade deal with the european single market, it could be five years from now or 10 years from now before we were in we were actually able to get something done. Francine lacqua joins us now. The headlights came into the News Conference and over the weekend, that one line seems to have