Bmw denies admissions test cheating. Could merkel be forced to take a stand . Matt less than a halfhour to the european open. Take a look at how futures are trading after a down week last week. We are seeing a slight gain for stocks, futures. You see gains on the ibex in spain. You see gains on futures in stockholm. The futures are all trading down right now. As far as what we can see right now, i have the threeday yield can on my terminal so you see we have come down over the last three days to your. 515. We are looking at slight gains this morning. Tradersould continue as selloff debt. We will wait for the trading day. A snapshot of various asset classes. The standout compared to normal levels of trading. We saw stocks declined to the lowest levels in 10 days. Carmakers to the worst in more than a year. I hope currencies with mixed performances get the u. S. Dollar in there. The yen is up for a fifth day. Riskse of a host of event over the United States, we have the fed amazing and we have fed meeting fed ne meeting. Lets the first word news. The worldthe imf says is relying less on the u. S. To sustain the recovery. It left the Global Growth unchanged at 3. 5 . The drivers are changing. If the u. S. Of the u. K. Are now less crucial with china, eurozone, and canada play more rules. The u. K. Trade secretary will meet with his u. S. Counterpart in washington today area person seeks to today. They translating deal is possible after leaving the European Union. It will be a difficult discussion and is expected to hold talks with robert rosshizer and wilbur before meeting members of congress during a twoday trip. About 167 billion pounds. Weve done internal work that could be worked over another 40 billion by 2030. If we are able to remove the barriers to trade that we have. That will be a difficult escutcheon. Discussion. Report from the United States and the demonstration as well as congress to push the agenda forward. Anna the Trump Administration juliette he press secretary says it supports a bill to sanction russia for its actions during the 2016 election. Become from Sarah Huckabee the comment from Sarah Huckabee sanders reached a tentative deal on the bill that would prevent the president from removing sanctions on russia. In poland, mass protests across the country extended to an eight straight night. Theing legislation giving ruling party more control over the judiciary. Protesters urge the president to veto the legislation which they said is a threat to problems democracy. Polands democracy. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. Matt a market minefield of weeks traders. A Federal Reserve in trade decision later this week. Jared kushner appears before the Senate Intelligence committee behind closed doors. Wednesday donald trump jr. And Paul Manafort give testimony as part of the investigation into russia meddling in the u. S. Election. There is a lot going on to say the least. Mliv on thefor bloomberg. Lets talk about the dollar because it related to or determines the price of almost all financial assets. It has come down strikingly as of late. Where do you see the dollar headed now . I think the dollar has a strong chance this week. The overall decline has been justified. There are clear reasons for the decline. Negative real yields, i know those have narrowed but they are they have narrowed. There was a reason for the decline especially it was skewed the other way. On fiscaleg has been reasons. One of the biggest lessons this year is that u. S. Politics does not have a sustained impact on markets apart from the pricing at the stimulus which was priced months ago. This last leg is a Political Risk and that will probably stay by the end of the week. We have the potential catalyst of the meeting. ,nna in the middle of the week good morning to you. If this is about Political Risk and the risk resides in the United States, where are they going to receive cover . Good question. Is that thiseason Political Risk is probably not going to have a sustained impact on the dollar. For us to go another leg lower we have to go down the impeachment route. I do not think we are close to that. The dollar will be a safe haven this week. The market has done well with risk on trade. We are going into the summer season. The dollar is a haven in the short term. The structural downtrend in the dollar can remain. The dollar is down 10 in the last six months which is a shocking move for such an important currency. The arguably most important currency. Stocks have continued to hit record highs in the u. S. Saying our own out of trump is barreling down a road of no return. Chuck schumer has said if there is a firing of mueller or pardons for family members that could be a tipping point. Is there anything you think trump could really do to hurt the equity market . I am so sure. I think you will get a good of headlines. I think what we have gotten the equity market is the chance of fiscal stimulus coming anytime soon. Therefore to get a sustained impact from trump we have to really be go down the route of trump ousted from power. We might get negative headlines and it scares but i dont think that is likely. Equity markets will be more dependent on earnings and tech earnings will be the most important given that this rally has road the whole tech wave. Tech is becoming more important. We have big earnings to watch this week. Anna it is a full calendar. Plenty of earnings there, we have the fed in play. We have another survey of economistsnd what are expecting this time around. Expectations have been declining. In terms of tightening the monetary conditions in the u. S. The market is coming around to the view that if either of a hike this year either of they hike this year. They are still saying they wanted Balance Sheet reduction but the market does not believe them. That 40 chance of a rate hike this year because there is a chance that seems slightly high. The market wants to see how the production goes. Nobody knows how the market will take it. The expectation is there might be market turmoil and that will take it the last chance this year. Most likely reduction and that will be a prevent them again. Inflation is not there. Anna thank you very much. You can follow light Market Insight live Market Insight at mliv. If your bloomberg customer and you want to watch the tv broadcast you can do it on a regular tv or was the tv function with the tv function. You also gets to follow along with the charts and options, guest conversations as well. All bets on the righthand side of the screen. You can even send questions to our guests. Theask up next on program, no caps on accrued. They will keep pumping before the joint and on cuts. This is bloomberg. Welcome back, i am a matt miller. Julius juliette . Juliette theyve agreed among themselves to install a quick and that was inadequate to do the job. The statement came in response to claims that it formed a cartel to hold down the prices of Crucial Technology. The first attempt at damage control since the European Commission said it was investigating accusations of illegal collusion. Plein air has reported a 55 gain in first for profit ryanair has reported 55 gain in the first profits. Beating estimates, the biggest low cost airline say that pricing will be competitive for the remainder of the fiscal year. Morgane bank and j. P. Have agreed to pay 148 million to resolve claims they conspired to manipulative the benchmarks range. They said they will cooperate with investors. Funds, andl master the california state retirement through 21 banks and three brokerage firms. Accusing them of many plaguing 2011 from 2006 7 20062011. Largeststment is the ever venture fundraising for a tech company in the region. 500 million is expected from new backers. Evaluation will climbed to more than 6 billion. Japan, new images captured by a marina robot show what is thought to be melted nuclear fuel in one of the reactors at two good she me a. Fukushima. Number three reactor could maintain melted fuel. The scene is a critical step in hastening the 72 billion cleanup of one of the worst Atomic Energy disasters in history. Dunkirk hasr ii gone to the top spot on the weekend debut. Directed by christopher nolan, they foam is already being talked about as an oscar contender. More than 50 million ahead of another debutante, girls trip from universal which took 30 million. That is your Bloomberg Business flash. Anna lets turn attention to the oil price. Oil market will need more crude from the a and nigeria as it balances as a faster rate in the second half after a slow start. Complaints with production cuts by opec exporting countries is quite excellent. Both onshore and offshore. Sure theetty rebalancing process made the may be going on at a slower pace than we have projected. It is on course. Accelerate to because of these numbers. Speaking in st. Petersburg, yousef gamal eldin. What can we expect today today . They are rebalancing the oil market but slower than had been expected at this stage. Yousef a lot of skepticism going into this meeting about wavering commitment after ecuador basically walked out of the agreement about what is happening with compliance to the data. It may indicate that numbers are not where they need to be with compliance levels. All that has been shrugged off by the secretarygeneral of opec rid this is the monitoring opec. Leverage,a lot more they can make recommendations about how to move forward. What this state of play is with a ia libya late jerry nigeria and libya. That is unlikely to be high on the agenda. That, again, is going to be something to watch for as to whether there is going to be any for the recommendation. A bit of further refinement. Matt let me jump in here. We see oil in a bear market in has been stuck there for a while. It has not been moving very much. What are analysts saying we can look forward to as far as price action . Even as opec is trying to curb its output, the u. S. Crude inventory has continued to rise. Frankly the output cut is not really that great coming from a alltime record high. Exactly. Thats what makes this very tricky. They have to take a lot into consideration. Childan is on the bearish site. Dsid side. Theyre saying there is a risk of a domino effect here at the next meeting. Are expected to be built globally. We are seeing scale output growth by one million to barrels barrels. Rebalancing is not happening as fast as expected. There are other banks out there, Research Houses that are going to take the other side of this is a are seeing this. Gain exposure here. The ball is now in opecs court in terms of moving forward. They have some ammunition in their war chest but not much arguably. The further the price rises, the more incentivizes u. S. Sale and the more unbalanced global inventories become. Think you very much. Yousef gamal eldin in st. Petersburg. Minutes away from the open. We are taking a look at some of the stocks we expect to move in todays trading. German automakers are in focus as reports emerged about pollution allegedly collusion in the industry. Shares tumbled friday and we will see if they continue today. This is bloomberg. The open is nine minutes away. Matt welcome back, this is bloomberg. Lets get your stocks to watch. Just about six minutes away from the open of Equities Trading in europe. Autos are going to be closely followed after their big drop friday. L,e story broke by der spiege on automakers were colluding certain things including the size of the containers to fight diesel pollution. Bmw,f those automakers, has denied those talks were thet collusion to keep containers down but rather to provided the correct and proper infrastructure for european car putrs to get the liquid into those containers. We heard from the European Commission over the weekend that they are looking into this as well. The story continues to i guess the story has legs going into todays trading. Lets take a close look at those automakers here. Anna lets keep an eye on how it moves into the political sphere. How it impacts the general election. Stock, Design Software software entity it students right looks to disappoint investors. They saw a goodwill impairment charge, 420 Million Euros in the earlier part of the year. This is something that is led a number of brokerages to downgrade its stocks, cutting to sell. Keep an eye on ryanair. Ticket prices rose in the first quarter, boosting revenues. We saw earnings gaming 55 . They cautioned that easter has moved. It makes managing an airline tricky. That has an impact on the business. In terms of the European Equity markets, if you minutes away from the start of the European Equity trading day. Coming up at the are quit smoking is the market open. More broadly, things looking heated. This is bloomberg. Anna welcome back, everybody. One minute to go until the start of the market open permit as an look at the future screen, it looks pretty mixed. We had a mixed performance in the asia sessions, as well. Busy week ahead of us. The earnings board looks incredibly busy. Its all kinds of part of pharmaceutical performance is reporting. Matt it looks like we have a flat open. The ark in stocks have been down from their highs this year. Contrary to u. S. Stocks. I have a 35,000 foot look at yields. Treasuries and yellow, guilt include german bunds and white. This goes back to 1991. Yields cominge down, but maybe turning around. That could be interesting for stocks. Anna we will keep an eye on that. Wedding for markets. We are getting some movement on the 5100 best ftse 100. Ftse 100. Were 70 trillion. We are getting french breaking news. Falling 55. 9, the pmi. Lets get some of the details that. Nejra cehic has the details of what we are watching. Nejra matt, you were just showing what was happening to yields longterm. The gilt markets is opening. We are looking at the 10 year yield. 1. 18 . A bit of a different move to what is happening with the treasury yield which has been steady this session. The abundant yield has been edging higher. Its taking its cue from europe, 118 on the 10 year gilt yield. European equities is pretty much a flat open if you look at the stoxx 600. Interesting to dig down into the sectors, energy underperforming again as it was on friday. Of 4 10 of a percent on energy stocks. It is the tech stocks and financials on the upside, outperforming as we head into a week of Bank Earnings. The stoxx 600 did have its first weekly drop until june last week close down. The flat open with a positive bias looks good in comparison, but a couple of charts i wanted to draw your attention to. The is the stocks 50 and world index. The euro stocks 50 had a good start to the year until about may and then the trend has been downward since then and these eurozone stocks are now lagging the most since nine months. How much of this is down to a stronger euro . The inverse is back. I have a chart on european financials as we head into a big week for Bank Earnings showing credit risk tumbling. Its dropping below 50 basis points for the First Time Since 2008 an interesting come at of the biggest drops have been among italian banks with cleanups in that sector. Here andill pick it up take a look at the screen here on the stoxx 600 and we can see which shares are moving the most. Moves,s of percentage of julius baer is the biggest gainer. Anna, you spoke about it this morning, relatively always about room for more growth in the u. K. , saying that net growth exceeded the expectations. Its a big gainer in terms of percentage movers. If you take a look at the index points, which is really the best way to see. You can click the dropdown box and pull out index points to see what is moving the market as far as the equity index is concerned. Ubs, the banks in general are going to be holding the market up a little bit today. Bt,he downside, you see shall, and then you see gladstone and the drugmakers, the commodities producers and the utilities there on the downside as banks relate look to beat gainers today. Anna they do, dont they . The Banking Sector doing well. The tone with european Bank Earnings with this scene. Strong inflows from clients in areas where the bank has set up recruitment of private bankers. Manus cranny has been speaking to them. Lets go to manus now. Fairlys a very bullish statement and he has been met with a bullish response from the share prices. Manus absolutely. The stocks are performing well as matt just said. They are hitting the upper end of what they promised in the market. In there at the top end of that ardi was bullish and he said he would not set an upper boundary for himself. For him, all lights are green. He hired 166 bankers last year and that is working. He will look at an inorganic tragic. When it comes to a cry from the clients, equities. , equities, and equities obviously. , positions in fixed income are huge in the markets of people are sensitive to that. They are looking for performance on the purchase of the market all the way to private equity. Nots the countryside, everything in the statement is if use it. You have to look at the other side, which is the clients. The clients have engaged in the equities call and the imf reports said they have an ice stall for the world, ulcers sentiment. The question for every wealth manager is, will the market set up for mold more bull . Volatility has been toocally to look ago low. Sentiment, what is the Market Sentiment . Everywhere, clients are getting positive on average more than what we have ever seen in the past. Manus we have also heard callardi say the holy grail is china, reformation is a good piece of news in his view. Im loving the new phrase, inorganic growth. Inorganic acquisitions as well as 166 bankers. Actually, i will take this. I was looking at the headlines earlier and boris