If you look at what is going on with stocks, we are not being much of a positive reaction, but we will keep an eye on it and see if we see any kind of delayed reaction. Not to mention the fact that the oecd is also cutting its growth forecast for the u. S. To 1. 8 from 2 . Lets take a look at the groups on the move. Energy in the bottom spot, followed by materials, initials. We have a cyclically led decline in stocks at some of the defensive groups like Consumer Staples and utilities are doing better, but a relatively broadbased decline with the exception of those two group. I want to pinpoint what is going on with the auto sector. In general, sales we are seeing worse than estimated numbers, particularly at General Motors where numbers plunged 18 . All four of the brands within gm reporting to clients at least 13 . For vehicle sales down 6. 1 . Fiat chrysler sales actually beat estimates, unexpectedly rising 1. 1 , but that is not helping the shares. We are seeing them fall as well, so when you are talking about manufacturing and retail, those kinds of converging in the auto sector, we are seeing some weakness, this morning. Betty lets talk about commodities. Julie energy is the worstperforming group in the s p 500 as oil rises are falling. 2. 5 and whatwn we have seen over the past couple of weeks is that when either wti or brent gets close to or even about that 50 level, we see it fall back once again. Something we should note that because of this holiday, we are going to get the Weekly Oil Inventories tomorrow at 11 00, instead of today. Prices are under pressure because of that manufacturing data and if you take a look at some of the other commodities we are watching, gold prices are trending lower. As we see more risk off in todays session, gold is not benefiting. Copper is also trading lower. Second,ocks down for a continuing your theme of commodities falling with basic resources down by 3. 5 and oil down by 1. 9 . Every Industry Group on the stoxx 600 is falling, the biggest drop in a month, but we did have our third consecutive increase in may, the longest winning stretch. Global growth concerns weighing on the stoxx 600. Lackluster pmi data from the u. K. For the eurozone, china. The u. S. Probably was not in that category, that is going to be something i explore later in battle of the charts, so watch out for that one. All hold earnings estimate shares by 2. 9 . The judge grocery chain beating estimates, copper cost reduction, improving profitability, this is a company that is emerging with six and 6500 stores around the world. Three quarters of those sales coming from the united states. Investmentting banking positions as part of its ongoing plan to reduce costs across the company according to a person familiar with the matter. Chief executive outlined his threeyear costcutting plan to paris global network, by shutting moneylosing businesses moneylosing businesses. These are the big banks in the u k, in the last 12 months, we have seen lloyds fall by 12 , down by roughly 30 , standard chartered, look at that all, down by 50 and a plepler of u. K. Tmi pmi data across the world. Manufacturing in the u. K. , eking out a small gain after declining the prime of the most in three years, but it highlights the fact that we are very much relying on the nonmanufacturing part of the economy as we approach the referendum, three weeks tomorrow, cant wait. Betty the countdown has begun, lets check in on bloomberg earthward news. We have more from the newsroom. A friendship may have detected a french ship may have detected blackbox data in the search area, the planes data and voice recorded are considered essential to finding out why the plane went down. All 66 people aboard the plane were killed. It has been a year since the eu began an antimigrant operation. 103 votes have been intercepted in that time, almost 70 smugglers have been arrested. The u. N. Is asking for iraqi troops and Islamic State fighters despair children caught in the bottles of falluja. There estimates are that are 20,000 children still trapped in the city. More labor problems in france, some road workers have gone on strike and up to 40 of highspeed Train Services may be disrupted. The president is trying to contain unrest before the soccer tournament. Russia has arrested 50 suspected members of a hacking ring that stole money from the nations banks. The government says that since the middle of last year, lenders have lost more than a 5 million to hackers. Global news 24 hours a day powered by our 2400 journalists and more than 150 news bureaus around the world. The Global Economy risks getting caught in a low growth trap, that big warning from the organization for Economic Cooperation and development. The secretarygeneral of the oa pd told Bloomberg Television that Global Growth will not pick up, this year. It is going to be flat growth 2015, 3 2016, a little bit of an improvement in 2017, but very gradual. Overall, a rather mediocre or abysmal outlook. Blame the oecd puts the squarely on the door of rich governments. Just how gloomy is this economic picture . Joining us now for an exclusive is the global Strategic Advisor at pimmco. They just released their own outlook for the next three to five years. How close is g is your view to what we heard from the secretarygeneral . Richard you look at the Global Economy just kind of muddling through and that is the consensus. The game is only going on because of massive quantitative easing, negative zero Interest Rates and emerging economies, so our view is that investors cannot get a false and security by extrapolating past trends, so you see a world that now appears to be stable, but is not very secure. Takes it a step further and says we are falling into a low growth trap. We think we are already in a low growth trap and that is the status oh, there is a left tail risk that we do not keep up the growth rates now, and that is our horizon, there is a chance of a global downturn, there are not a lot of policy tools available in a global downturn. Betty what do you do in this environment . Richard investors need to focus on a couple of rings. It is an environment where active management will be key. We think it is a world where you have to take a stand on preserving capitals, no longer about doubledigit returns, it is about preserving capital. If we get helicopter money or more unusual experimental Monetary Policy than inflation may be higher, that investors expect and we think you need to be in a world where you are looking globally for Investment Opportunities because volume nation will be key. Which countries could implement helicopter money and which ones probably wont . Richard lets start with the ones that probably wont, i would put the u. S. In that category, the u. S. Is the inevant leader, we look decent shape, we have had good Monetary Policy and have had close to full employment. More, thed well be exact dimensionality is that we would see helicopter money are complicated, but we have a large qe program approaching 100 of point, qe some infinity could become helicopter money. Mark you are saying the ecb will have to press the stimulus button once again. You label it lackluster, trend like growth in the next one to three years, but you are cautious and very selective within the eurozone, please elaborate. Richard the key thing is that it is growing, it has had two recessions, but trending growth is not going to reduce the unemployment rate. Outside of germany, europe still has a big output gap and trend growth is not going to close that. The ecb is fully engaged, and we think that is a good idea, but then again, the eurozone, yorkie have negative rates. Bake chunks of the european bond market already traded negative yield to the second market, so we are not predicting that the ecb is going to give up, we are saying that we are in a world of diminishing returns. You mentioned active investing, that hugging the benchmark is not going to be enough. That is a very different view from larry of blackrock. I want to play for you part of what he said. We believe there is going to be a massive shift more into pathos, so we believe it is going to create a huge consolidation that has been in the industry. Betty why is he wrong . Richard it is a huge Global Market and that will make sense for a lot of investors that have realistically realistic return expectations, billy when you get those in the world that we proceed, for many investors is going to be through active management, but it is a big capital market, and we believe active investors will be important. Highlights ofhe your report says political populism and polarize asian. Flash in the pan or secular reality . What is your answer to that . Richard our argument is that is not a flash in the pan. Book will be the to remain and we will not be in the business of predicting the november president ial election, but we do think the populism and this widespread global view, the anger against the elites in the sense that the globalization consensus among parties is being questioned by big chunks of the electorate, we think that will be an enduring tension in the Global Economy for the next three to five years. Mark lets finish with china, because the pmi that we saw today began in china. Pmi, thishe chinese is the chart, going back to 2007. Manufacturing, services pmi as we know, manufacturing 2012,en flatlining since services are a bit stronger, is china making the case for a managed slowdown . Richard that is our baseline case. The most likely outcome is they are able to pull off this difficult transition to gradually slow the growth rate to be less reliant on exports, lets have no doubt, this is a challenging maneuver that they are trying to execute. They are trying to open their capital market, but they do not want to give up control of the exchange rate, so china is a huge part of the Global Economy. They are able to execute this maneuver, but there are certainly real risks to that in the three to five your outlook. Five year outlook. Mark thank you for joining us. Still ahead, we will get you caught up on the stocks moving. Under armour cutting its annual or cast. We will look at how that is affecting other Sporting Good stores. Mark live from london, you are watching bloomberg markets. Betty from bloomberg World Headquarters in new york, another Beautiful Day in the city, time for the business businesss flash flash. The family controlling viacom may try to out the ceo. Redstone says the viacom shareholders want new management. Overseeing ator trust that will eventually control redstones empire. Chinese mobile phone maker is trying to eliminate over intellectual property. They have bought almost 5000 Technology Patents from microsoft as part of a bigger deal that will result in Microsoft Office and skype being preinstalled on their phones. Lack of mobile phone patents has kept them from expanding. David einhorns main green Light Hedge Fund lost money in may, even as equities climbed. Einhorns fun was down 9. 9 fund was down 9. 9 . The Green Light Fund lost more than 20 last year. That is your Bloomberg Business flash, we will head back to the markets desk were julie hyman is looking at some specific stock particular, nike and under armour. Julie both declining for separate reasons. Nike was downgraded. Part of this has to do with the sports authority, and a companys bankruptcy and subsequent liquidation, essentially removing a big customer for both of these companies. A lot of new entrants are fragment the market in the case of nike, the challenges for mike years ofasting five doubledigit growth, so there might be some slowing growth for the company. Nike not done as much as under armour more than 600 , the company no expects revenue of 9. 3 billion, the earlier forecast had been about 5 billion, so lower their. Michael kors coming out with its numbers, revenue rising, the company also coming out with or cast that was above forecast, some of it has to do with a tax benefit. Nonetheless, others are talking about the fact that the Company Released some of its products early, exclusively in its stores that were not available to other retailers. Jcp coming out to making some commentary and saying recent Business Performance delivered positive sales through memorial day. The Company Plans to refinance and extend the maturity date. Even as revenue came in below estimates, the company talking about deeper promotion in markets that have been a broad scene, and u. S. Retail, more sales that news for these guys margins. Still ahead on bloomberg markets, although ecf remains a small part of the 1. 3 chilean dollar highyield market, their gaining in popularity. We will break down why. Betty you are watching bloomberg markets. Mark i mark barton in london. I am mark barton in l ondon. Trade like stocks attracted 6 billion of inflows remain 25th, that is the most since the fund was created 14 top o and on pace to coverse, alastair marsh the bond market, joining us now, on why this flood into the fixed space. Is itight to say it has been an inexorable rise over the last few years, but bailey because of whats happening in the bond market, as you say, the streetlights starks the bond market is becoming more and more harder and harder to trade, harder to get a hold of the bond that you want mers these trade like stocks are cheaper than buying bonds, so just for easeofuse and ease of access, they are gaining mark does that mean it has a big role to play, Going Forward . I think it started out as a retail product, but you see more and more big Institutional Investors putting the money into these funds and the assets that they manage is going up and up, and there are some very big firms putting their weight behind it. Betty is there any chance that this could reverse if for some reason liquidity comes back into the bond market . Scenario inee any which liquidity comes back to the bond market, so it stands to reason that this inexorable rise of continue, but that does not mean there are no risks, there sayingnty of people there could be real issues if there is a huge stampede out of highyield. There are these highyield funds that are offering liquidity, you can take your money out and any day you want, but the bonds themselves, it may take weeks for those to trade. Betty how big of a risk is that, the fact that it might be difficult to exit these investments . It could potentially be huge. It has not been tested, fully. Well innds function stress conditions, but i think the stress conditions we store into glory of this year are nothing compared with what a more armageddon scenario of 2008 that might happen in highyield. Mark a big shift in passive investing. Exactly. That is partly because on the active side, you have to pay a theyer a lot more money have not done that well, whether as where is if you put your money and etf, you would have done ok. Ahead, crude oil dropping for a fourth straight day, heading for the longest run of decline since april as opec members are arriving in vienna. We will get the outlook from one of wall streets top economist minds. Betty another Beautiful Day in new york. Clear skies, sunny. Mark gray, overcast, that is london. You are watching bloomberg markets. We are getting some headlines from the vw chief executive in an interview with bloomberg. The rightat vw said hearing corporation is the first of many steps. He said that own another big strategy for the next 10 years and he says the Company Needs to become a provider of mobility. Demand for expand on vwility solutions and that needs to consider the complexity of its product lineup, it is a car company in many brands, but its namesake brand side big decline in its profitability in the first quarter, we announced that yesterday when we were talking about it. Ae ceo says that the wcs sizable path of sales of its services by 2025. The big overhaul will be announced later in june and be will bring you the interview in the next hour and the european close, lets check in with bloomberg earthward news. And much andra has more and handrandra emma cah has more. The race is too close to call when a third party edited is factored in. Libertarian Party Nominee gary johnson gets by percent and Green Party Candidate joe stein gets 3 . President obama returns to the side of his first president ial trip. Elkhart,ravel to indiana, a city being rejuvenated by a surging recreational vehicle industry. Then employment rate has fallen from 19 in 2009 to a little more than 4 . The president should argue will argue that voters should put another democrat in the white house. Theld trump is heading to u. K. After the referendum, his visit has nothing to do with politics. Theill be there to open donald trump golf resort on the west coast of scotland. The Obama Administration is taking another crack and improving american diets. The spa released sweeping salt reduction goals, including everything from french fries to granola. It puts Major Pressure on food manufacturers and restaurant to cut restaurants to cut sodium in processed foods. That may lead to 10 billion in unpaid bills. That may result in schools not opening on time and prisons running out of supplies. Both sides say they will negotiate a stopgap plan to keep the government running through december. Illinois has been trying to resolve a 111 billion pension liability. Day ws 24 hours a global news 24 hours a day. Betty lets get back to how the markets are trading. Oil prices on the climb for the workday in the row in a row. The cartel opec is expected to stick to its policy of squeezing out rivals by maintaining produ