Still in the early stages. What this could mean for verizon. Lets go straight to the markets desk where julie hyman has the latest. Possibly a bad earnings season, but you could not tell from how the markets are trading. Julie the sentiment is terrible going into the season with a pullback of about 10 in the s p on average. All three major averages trading higher. Some talk that investors are now looking past this earnings season, seeing it as a bottom for earnings. All three major averages are higher, the dow doing the best of the three. If you look inside the moves today, sector wide, financials are leading some of the gains, even though there is a lot of pessimism around the bank earnings. Energy and technology rounding out the top movers. Health care is the laggard, but at the moment it is not much changed. The other big story has been a japanese yen, which is not doing much today, after that 17month high for the currency. We could see a shift there, even as we are seeing a very bullish sentiment in the end. Take a look at the bloomberg terminal. This is looking at the dollar yen versus the cfpc long, yen longs, which have been surging. We have seen a lot of bearish sentiment squeezed out of the markets. Now bullish sentiment could be reaching a top. Oil trading near a fourmonth high in london trading. In the u. S. , of by better than 2 . Raised its it output, which you would think would be negative for prices, u. S. Prices down for the 10th time in 11 weeks. Betty tell us about earnings season, what are people saying . Julie a lot of negative sentiment. Oa usually kicks things off. There is a lot riding on the line for them. They are playing to split themselves up into raw alumina production and finished products production. Lots of questions about what this will mean and how the business is doing. Shares are up 3 going into the report. The other group is banks. They report relatively early. These stocks are rising as well. There has been some analysts commenting it will not be quite as bad as investors are fearing. Check out the stoxx 600, the Industry Groups. We have fallen for four consecutive weeks. Weeks, it at five would be the largest stretch 2007. It is all about china today, which is why basic resources are rising. Data takingation investors by surprise. Month on month, Producer Prices posted the first increase since 2013. Interestingly, investors are pulling money from tracking european equities. Stoxx 600 is now trading near its lowest evaluation relative to its usp or, the s p 500, since in more than a year. Is thelow line evaluation of the s p 500. 17. 4 times estimated earnings. The stoxx 600, 3. 5. The disparity is the most in over a year. The lender is paring its Balance Sheet after reporting record income it. 50 bank index. Se 3 Standard Chartered is a by 1. 2 . Interesting comments from the ecb executive board member. He said extraordinary measures to spur growth may show diminishing returns. This chart shows the measures are having an impact because since march 10, when the ecb said it would buy nonfinancial Corporate Bonds, euro investment have outperformed financials by 18 basis points. The spread differential between the two is now the highest since 2014. The blue line is utility, white, financials. Frontors are probably running the ecb purchases, what they think the ecb will buy when they start to buy Corporate Bonds at the end of the second quarter. Lets check in with david gura with the latest from our newsroom. Ministers from the group of seven industrialized nations are meeting to call or nuclear disarmament. Also on the agenda is terrorism. All the g7 nations remain absolutely steadfast and united in their commitment. I would call it a resolute commitment, strong commitment, to degrade and destroy daesh through our Global Coalition and are each committed to using the tools available to us in order to confront this scourge. David meanwhile, secretary kerry visited the memorial of the hiroshima bombings. Him the mostes senior american official to travel to hiroshima. The international furor over the Panama Papers is entering its second week as David Cameron faces criticism about offshore tax havens. Maltas government is facing a noconfidence vote. The u. S. Naval officer charged with spying for china has been identified in multiple media reports as Lieutenant Commander edward lin. Appointed to the Navy Reconnaissance group. He has been charged with five counts of espionage. 15 former Bar Association president s are urging to push president obamas nominee to the Supreme Court merrick garland. Isy argue the gop blockade injecting a brand of politics into the court which materially hampers the operation of the judiciary. Republicans say they have no plans to move forward on the nomination. Betty thank you. As we have been mentoring, let the earnings parade begin. Reports after the bell today. Corporate profits are expected to call 9. 8 yearoveryear. That would be the sharpest 2009, and a fourth consecutive quarter of contraction. Joining us from irvine, california is john brynjolfsson, chief Investment Officer of armored wall family holdings. Wolf family holdings. Mohamed elerian has a look at talking about the central bank. Our corporations the only game in town when you look at market price action in equities . The earnings have been week and are getting weaker. It looks like it will be a terrible First Quarter in terms of earnings. Money managers for the past seven years have been focusing on centralbank action, solouts, industry subsidies, you have to be a washington or Global Policy analyst as much as an economist these days in order to gauge the market action. We are looking at the fed, looking at the ecb, bank of japan, Global Conditions on the political and policy front as much as earnings. You said in a note to us, the price action per what do you mean . Equities have been doing well the past seven years, a pullback in january and february. That is bouncing back mostly on the idea that the fed would not tight. Given economic conditions, it may be hard for the fed to talk titan this year. My colleague and i who run a mayfolio, think that that the fed may tighten once this year. We do not really think that generates economic growth. It kind of grades and illusion of liquidity, of being able to sustain things. , that is not that encouraging. For example, gold has been doing well for the past quarter or two. Gold is an alternative to buying into that liquidity. Mark how worried should we be by the fact that as equities from the february lows, we have seen money move into these havens, like gold, the yen, the g7 sovereign bond index. Us . Does that tell they haven markets will continue to rise, and risk assets will not do well . And g7 sovereign bonds, half of them are yielding zero or less. For a greatt auger longterm investment. It might be ok to park money there temporarily. Bill gross talked about how the long run outlook for interest meanss rising, and that negative Capital Gains on bonds. So in the case of the u. S. , the highest yielding sovereign in years, that. 75 , 10 is not really anything to crow about. The outlook for bonds longerterm is certainly negative. Certainly, given how weak the Global Economy is, how weak ,arnings and profits are probably i would disagree with bill in the shortterm. Bond yields are likely to stay low, maybe even get lower been here from here, before they start a secular ride. Mark i want to get your take on a price of oil. About 14 today. You think we are getting to about 30, why is that . John i have been wrong for the last eight weeks or so. What i got wrong is there is floating storage available, meaning right now the global Oil Producers are producing more oil than we consume. We have already filled all of the onland storage. I made the mistake of thinking that that would result in an immediate glut, down trend in prices. There has been a rebound, but i think it is a head fake. Having oil sitting around in the high seas floating in tankers waiting to be used is not a longterm plan for success. Ultimately, all those inventories, all of them floating storage has to be worked off. The only way it can be worked off is it production dramatically if production dramatically decreases, or if consumption rapidly increases. I dont see that happening, certainly not in china, europe, brazil, certainly not in africa or the u. S. We are looking at a 1 gdp growth, which does not speak to strong oil consumption. Betty i heard what you said about bonds and the outlook for rates, but i dont know if you can see this our viewers can. Full of the chart on bond market expectations. The fiveyear outlook for inflation continues to rise. It is getting near the 2 inflation target set by the fed. When you look at Something Like s wellit actually auger for the fed to raise rates and that the bond market could turn. For most of my career, the inflation market based in either 2 inflation or a risk on the outside. The past three or four years, it has been looking more like deflation, in europe and the u. S. We did have a pop recently, part of that is the shelter component. Hasowners equivalent rent been rising, and the rent has been rising, bring up the court and nation. Inflation. The other part is the headline affect. With oil going up to 40, you will have a pop in the headline rate of inflation. Even on a fiveyear basis, according to the tips market, we are looking at it later around 1 , 1. 5 . And there could be some risk on the downside, especially if my oil view comes through. Betty good to see you. The chief Investment Officer of armored wolf family holdings. We will check on how stocks and others are moving in todays session. Mark from london and new york, im mark barton. Betty im betty liu. Its time to take a look at the biggest business stories. The pay gap is only getting wider. The federal government says adjusted for inflation, wages for Investment Bankers and Security Industry employees was 1992 2014. M over the same period, wages for all other industries up only 21 . Canadian pacific ending its effort to purchase Norfolk Southern after several rejected proposals. Hoped to create stock a coasttocoast network. Lets go straight to the markets where julie hyman has more on the reaction. Norfolk southern socks falling on the news. Julie and Canadian Pacific getting a bit of a lift now that this is ending. Canadian pacific up 4 , Norfolk Southern down about 1 . The nail in the coffin appeared to be the justice department. Canadian pacific try to create a trust so that the ceo of Canadian Pacific would run Northern Pacific suffolk. These things were piling up, resistance to the deal happening. An analyst at callanan company said in a note, Canadian Pacific is walking away from a negotiating table which never really existed. , but the twoorts were never really insubstantial talks, so the question is what happens now. Pacificast, canadian has held talks with csx, but those were also rebuffed. Csx today is little changed. Our analyst suggests the kansasng target could be city southern. We spoke to officials about whether they had a preference in either of those mergers. There is noaid favorite, both organizations in the east would work with our franchise. There is not a favorite. One has this advantage, what has that advantage. We think we could sit well with either one, but neither thinks they fit well with us. To do, if wed job are going to make this successful. Julie so it is unclear what happens now. Inhave seen a decrease railroad shares over the past year, along with commodities. Part of their playbook has been cutting cost, so if there is nobody to consolidate with an cut cost through synergies, it is unclear what happens next. Mark thank you. Still ahead, yahoo getting another suitor, this time the owner of the u. K. Daily mail newspaper. Mark another suitor is drawing their hat into the yahoo ring. Mail newspaper is in talks with private firms for a bit of yahoo . Our chief correspondent is not here with more. How would they afford it . This will have to be done with private equity or through some kind of complex structure. I dont expect anyone thinks the Parent Company to purchase yahoo s media assets outright. Private talking to equity firm to see if they can get a deal together but there are some big gorillas here. Verizon, google. It will potentially get quite expensive if these Companies Really want these assets. Betty where does this leave verizon, who appeared to be the leading bidder as a last week . Matt im not sure, and i think it will come down to what the various parties are willing to pay. Certainly, verizon is a much Larger Company than dmjt. If they want to, they can do so and win the auction. Daily mail is more of a media company, not a telecom company. That lets them go the extra few inches when it comes sums of how they would pay. Mark how might this expand their reach . Matt the name of the game right now is advertising. The daily mail is a pretty big platform, the number one english newspaper on the internet. . Is huge as well. Together, it is a onestop shop for advertisers. That means they can charge a premium for getting those as in front of readers eyeballs. Sok why is daily mail popular . Matt celebrities, i suppose. They sell in tabloids as well. Mark what is coming up next, betty . Betty british Prime MinisterDavid Cameron under pressure when it is rumored that he made some offshore investments. He will be making statements shortly. Live remarks shortly before his remarks. Betty live from bloomberg world headquarters, and betty liu. Mark i am mark barton, this is bloomberg markets. Has more from the doors are in. David greek officials have another go at talks on austerity measures. They have been hoping to wrap up talks over the weekend. Greece assigned a 98 million bailout deal last summer. The u. S. Agency used parachutes to airdrop aid to a syrian city under siege. Was dropped, the eight is enough to feed 2500 people for one month. More airdrops are planned. President obama meets jenny ellen today, janet yellen today. We will focus on wall street reform. Vice President Joe Biden is also excited to attend. A stark warning for donald trump, Americans TrustHillary Clinton more than the republican frontrunner on an array of images on array of issues. Thats according to a new Associated Press poll. It reveals trouble spots for clinton, trump is really even with her on who Americans Trust handle the economy. Oneen state warriors are game away from breaking the nba record for most wins in a season on sunday. The warriors beat the spurs for the 72nd win of the season which ties him with the chicago bulls, the defending champions and they play wednesday against the memphis grizzlies. Global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. Im david gura. Betty time to get you caught up on the action around the world. We started in asia, where most of the stock market follows the nikkei down. The yen continues to hold onto its gain that weve seen over the last seven sessions. China, story came out of chinas Consumer Prices were up last month while factory deflation used, Tom Mackenzie has more. Tom inflation in china rose again in march with the Consumer Price index up 2. 3 year on year. That was marginally below forecast for a 2. 4 increase. The rising cost of food, particularly pork and vegetables had an outside impact with prices up 7. 6 in march, the highest since the start of 2012. They may have more to do with supply shops then demand it, according to bloomberg intelligence. Nonfood inflation edged up just 4. 3 fromion used to 4. 9 in february. That was thanks to stronger Commodity Prices and improvement in the real estate sector. Trade it out on wednesday, firstquarter gdp on friday. From bloomberg news, im Tom Mackenzie in beijing. Ofk after four weeks decline, european stocks arising on this monday session. Its a china led rally in place. The big news was Producer Prices. On a month on month basis rose for the First Time Since 2013. Have a look at the bestperforming Industry Groups today. If the china led basic resources that are leading the advance as an industry group, they are up by 3 . On hopes that we are close to an italian bailout fund being completed in italy. The talon banks are the best performers within the banks index. Energy stocks and autos are also rising. We finish off with the bond and currency market. Rising ton thursday 80 pence against the pound. Since junethursday, 2014, it rose for the fifth week past week, the yield on the u. K. Tenure is up by four basis 10 year by four basis points, the german up as well. The propensity is to invest in riskier assets. Lets find out how some assets are doing in the u. S. , Abigail Doolittle has the latest live from the nasdaq. Abigail, what have you got for me today . Abigail a nice rally is happening, the index is up about. 9 . The biggest boost as apple, shares or have lit