Bloombergs ramy looking at the Michigan Consumer index. Is the number coming out right now 89. 7. This is the lowest since the month of october. The median forecast was higher for this. The prior for march was 91. This the lowest since october. The highest point in the last year was 96. 1, setback in june. Let us see how this is impacting the market specifically with the s p right now. Right now, we can see it is pretty much flat. Just a little bit lower in the past few minutes. We are seeing an extension of that loss to 0. 12 . The s p 500 there and the dow is down. The nasdaq paring losses from 1 . Er by 2 10 of a with that said, let us also go ahead and dive into my bloomberg and i want to bring up the which is a check of the s ps 10 sectors. We can see that three out of the 10 sectors are in positive territory. We are seeing an increase in negative space here with energy the most down by 1. 1 . Did have to say that financials were the biggest leader, but we can see right now that they are paring those losses despite what happened with citibank coming back with its earnings. Energyyou just show that is the biggest laggard. With energy, all of it has to do with oil. Wti crude down at session lows by more than 3 . Down for a third day. And people are looking ahead to doha and what is happening sunday. They will be meeting to talk about freezing oil production. The chief among them is russia and saudi arabia. If they fail to greece on a freeze mark, that could send. His number even lower includingbig decline auto parts as they are down for the first day. The best winning run six october of last year. Still an hour and a half to go today in this session, but the stock 600 is down one half of 1 . The biggest weekly advance in two months. One of the big gainers and contributors is the french retailer mushers up by 4. 6 . Reported growth because of improvements in europe and latin america. That compensated for a decline in china. This is a great chart that focuses on volkswagen. The First Quarter market share reached a fiveyear low, 23. 4 . Effortsso snubbing its to resolve its omission cheating scandals from the likes of bmw, fiat chrysler, and i diamler. Industrywide demand rose up to 7 million cars in march. That is the 31st consecutive month of growth. This is the auto index since the emissions scandal broke on september 18th last year. You can see that volkswagen is the bottom of the pile. The automakers have not fared very well since then. Really quickly, a londonbased company, the World Biggest publicly based hedge fund firm, reporting net inflows of half 1 billion in the First Quarter. It is computerdriven funds attracting investors. Upes of that group are 6 . Betty lets get back to the Bank Earnings here in the u. S. The fifth First Quarter profit of citigroup topping highs. Citigroup joining big banks by slashing costs more than anticipated. Joining us now is josh rosner. Your take on citigroup could that is the big hurdle for all these banks. How far can they go with these cuts . Very there is still little real natural topline growth. Trading is obviously hurting. Betty hurting less. Josh and the costcutting has been the game. You have to build reserves after years of releasing them, which becomes a headwind. Of the large caps have headwinds in front of it. Betty this is goldman if you can take a look at the screen. Speaking of costcutting, we want to show this chart. On the far right, you can see that goldman is likely going to be cutting their expenses to the lowest in a decade. Josh thats right. It makes sense and there has been room because obviously in the wake of the crisis, expenses rose quite a bit. There is the opportunity for dispenses to naturally fall and for costcutting to happen. Betty do they jeopardize the business . Josh they do not jeopardize the business. The business is jeopardized by where we are in the cycle. That remains really the issue the sense that first of all from a market volatility perspective, we need to see some change there. Cutting doddfrank act off business lines, we have headwinds of their. From the loan growth side, commercial industrial loans, which we have talked about before, im still concerned that yes we have seen enormous growth. It is larger than Residential Real Estate has ever been, but i am concerned about the quality of the loans they are putting on their books. Giving someeast opportunity for some loan growth. It is not enough. We are waiting. We are stuck in between a period where we need to see rates give us the next leg of the story, other than the election cycle having some impact. Mark that leads to the obvious question. How much do you think rates will rise this year . Are you more with the fed or more with the market . Josh i really dont think there is a lot of opportunity for rates to rise. Theeen europe, between numbers that we have seen today out of industrial production, i think the economy is doing ok. I think of the certainly stronger than has been. I do not see any builtup or pentup Inflationary Pressure that would cause a significant increase in rates in anytime soon. Mark that means we are not going to get any real, natural topline growth . Josh thats exactly right. That is to my mind the ultimate issue. Topline growth is going to have to happen with a strong recovery , but the strong recovery may show some of the credit quality problems that we have had in some of the lower quality assets that they have been putting off because of rates really rise, the repricing will become a little bit of a headwind. You will have to start paying up for deposits. That is one of the concerns. Betty are investors to bearish on banks . They are the worst performing index so far this year. Josh i do not think they are realistic. It is an everyone of the actresses playing their part. On the it is wells fargo pure banking side or whether it is Goldman Sachs and Morgan Stanley on the Investment Banking side, or jpmorgan giving us relatively good loan growth and costcutting, everyone is doing what they are expected to. Unfortunately, i think the market is realistic in the right place on this. Betty another i would not call it a headwind because it would only be a headwind if our entire country was falling apart. , ande case of a recession the living will issue we saw earlier this week, are they fortified enough . You heard jamie dimon and a call earlier this week talking about that. I want to read that quote where he said, we will do Everything Possible to fix this issue. If other firms can satisfy that, i would be surprised if we can. Couldnte of for that satisfy complexities. Josh if you remember the requirement, they have to get the business to wear could be resolvable under the bankruptcy code. If they cannot, they have to ultimately semper fi their business, consolidate businesses. The reality is that has some the operating subs that that becomes the hurdle. I think that becomes the other opportunity. I think it will force the banks to start rationalizing their business, which gives us more opportunity for costcutting. Mark costcutting is taking place on the side of the pond. How much sympathy do you have for european banks, which weighed down by all sorts of issues whether legacy or otherwise . Josh i think the u. S. Banks are obviously must a decade ahead of the european banks. They really have largely addressed their loan book problems. Europe really has stalled out and has not really bothered with it. Now you are starting to see the approach of how are we going to do that . The good bankbad Bank Solutions we have seen really in europe are not very effective. If you look at what has gone on in some the peripheral banks, they have really never address the problems. You are strange approaches to climb back assets and the bad banks that should be in good banks. I do not think they have the resolution regime and the ability to raise capital they need for the most part, especially if they are scaring off Capital Market investors, distressed investors who feel they are going to be penalized in resolutions. Betty josh, good to see. , lets check in with the bloomberg first word news. Matt miller has more from the newsroom. Matt belgians transport minister has resigned after the leak of a secret eu report detailing lapses in Airport Security oversight after the bombings in brussels. The controversial document says security measures at the Brussels Airport were flawed and cited serious deficiencies and the way that safety checks were managed. Aftershocks have been rattling communities in southern japan after a quake that killed nine people and injured about 800. Rescue workers have been coming through rubble in hardhit areas to make sure there are no more trapped people. The Prime Minister says the government wants to prevent any secondary disasters from aftershocks. Another casualty of the panama papers. This time it is posing manual anuel serria. Se m he initially denied any involvement before backtracking as new revelations came out. Bernie sanders is now and rome to attend a vatican conference. The remark senator is making the trip even what he faces a crucial New York Primary against Hillary Clinton week. Sanders will join several speakers on the anniversary of a document by Pope John Paul ii. The vatican says that pope francis has no plans to address the conference or meet with sanders. President obama is set to enter the Brexit Debate when he visits the u. K. Next week with a clear call for britain to remain in the european union. Mr. Obama says its a decision for the british people but also in the best interest of the United States, the u. K. , and the rest of the eu to keep the 28 nation bloc intact. Call the new story for hours a day powered by our 2400 journalists and more than 150 news bureaus around the world, i matt miller. Betty up ahead, a closer look at the latest economic numbers coming out from china and whether the country has managed to avoid that hard landing with harder economics professor and former imf chief economist telling us about china. Mark live from london and new york, i am mark barton. Betty i am betty liu and youre watching Bloomberg Markets. Time for the Bloomberg Business flash, a look at the biggest business stories in the news right now. Sun edison is talking with creditors about restructuring its financing coul. Sessions are ongoing and theres no assurance it will result in a deal. It is hoping to avoid default on billions of dollars in loans and credit facilities. Bombardier is close to a deal is selling its jetliners to dell ta. It will be the largest for the struggling Aircraft Program and would equal half the total orders that the already has on its books. , the Worlds Largest publicly traded hedge fund firm, is reporting that inflows of 500 million in the First Quarter as its computerdriven funds attract investors. Billion in apoint redemptions. That is your Bloomberg Business flash update. Let us turn back to the latest economic numbers coming out of china. We have lots of steps to talk about. According to the bloomberg gdp growth tracker, chinas economy rose to its highest level in 2014. It draws on a range of indicators, including electricity production and exports. Mark take a look at this chart, showing one of the big surprises. It is the surge in new credit. Aggregate financing reached more than 360 billion in march, far exceeding estimates. Earlier today on Bloomberg Tom keene and francine look what i asked if china was out of 10 with the managed currency. It is hard to see how that will end well if they do not managed to free up the currency and next for years. They had trouble with it this year. Theyve gone back to tighter currency bounds by saying they are going to squeeze capital, but that is hard to do when youre such a big Global Economy and you trade so much. Tom they are now at your job, but at the imf, at gunpoint, youre forced to read at graduate school. What is the new thing that you teach with maurice in that book . See in china today that it is very hard to do one thing with your Monetary Policy that is completely counter to what the world is doing and at the same time have a fixed exchange rate. You need the capital controls. That is still true, but the world is so integrated that you the markets are very connected even if you are able to protect he your economy. Tom our market vigilantes telling Christine Lagarde what to do . Kenneth they have been reports of the markets were tanking when they have been going up. Francine you were talking about the roo remained. Will it turn ugly . Kenneth that is the number one risk in the world still. Were a bad systemic accident happened, there is greece, but china is more important. What they have been trying to do things his manage things that they would not have a crisis by tightening everything coul can they stil. Can they still grow in that environment . I think thats a contradiction. Francine is greece systemic . I think the leaders are tired of making meetings about it. I do not think it will end systemic. The broader problems is that if europe does not grow, what happened in greece may happen other countries. Fs withere kickof outlook on that. I know this is secondary and tangential and not part of the debate, but for mario draghi and other central bankers, they have huge pressure to just do something to assist greece. And for that matter, to assist brazil. What is your prescription now for europe to jumpstart growth. . Btsneth writing down de in the peripheries and getting it done. Is a transfer and they do not like doing it, but they need short for reforms. Theres all the talk about fiscal boost, but if you do not do structural reforms, it will not work. Look at japan. They are still growing solely. Tom we are way out in front of this with professor rogoff. Just get it done. Francine it is easier said than done. This is not something the u. K. Needs. We have very flexible laws in london. It is countries like france and italy. My counterargument is that we have are you done more than we have in the last 30 years. It is that we are starting from such a far point that europe needs time. Spain has done quite a bit. The u. K. Has been doing better in part because the market is more flexible. If you want to know the answer over the long run, your output is determined by these fundamental factors. It is talking about big fiscal stimulus. Is a good idea when demand is low. If you think that will fix things in the long run, you are very mistaken. Mark harvard professor Kenneth Rogoff there on liberty surveillance with tom keene and francine lacqua. Since the oilha slump began in 2014. Spent 314tions has billion of their extra reserves to offset the drop in prices. As the World Biggest suppliers together gathered this weekend, what is the likelihood of agreeing to a production freeze . Oil is trading lower once again. Wti down by 3 . Remy stocks on pace for another week of gains and financials taking the lead. Michael regan joins me now with some ways to play the banks, using eps. This week was the week to be in banking stocks if you are in the long. Its all the biggest rally in six weeks. It is the highest point for the week since last week of 2015. What is your take on all this . Mike jpmorgan set the tone with the earnings beating estimates. That said, none of the banks reporting are really crushing it. Revenues are down and they are focusing on expense cuts. That said, there was so much pessimism about banks. A rationallmost in pessimism earlier in the year that created this huge bear market in banks. They bottomed in february and had been picking up. The earnings estimate is not great for big banks, but it was like a rip the bandaid off of the wind type of thing. People bought off on the fact that the hope that the worst was over and the pessimistic outlook is not as bad as we thought. Remy we will have to leave it there. More Bloomberg Markets coming up. Please dont go away. We have. Breaking news. It has been a better it has been a pretty dry ipl market. The Global Exchange has just opened for trading at 22. 80 a share. At 1. 8 the company billion. Someows there is perhaps demand for an initial public offering. They tried to go public a couple of years ago. Markets opening trade at 22. 80 a share. Lets check in with first word news. Matt Bernie Sanders and Hillary Clinton went on the attack last night facing off in a debate in brooklyn ahead of new yorks crucial primary. The two candidates questioned each others records with the former secretary of state clinton back hard on her decisionmaking. The people of new york voted for me twice to be there senator. [laughter] [applause] mysident obama trusted judgment to be secretary of state. Matt the debate was the first facetoface sense the campaign moved into the United States where people had to the polls on tuesday. Some of president obamas financial supporters have not projected to Hillary Clintons campaign. About a quarter of the donors of the super pac that backed missed obama in 2012 are supporting clintons bid have not contributed to her campaign. Lawmakers will be leaving washington without having made the deadline to pass a budget long stalled in the house. There is other work left undone continuing provisions the 20 party makers and house gop leaders putting aside an effort addressing puerto rico. The white house is ramping up efforts to combat the zika virus. Boston is making the third Year Anniversary of the boston bombi