The source as it becomes the latest institution to sound the alarm on Global Growth. Hillary becomes the first woman to run as the president ial candidate for a major u. S. Party. But when does Bernie Sanders get off board . Sees like we are going to us sluggish start. A solid session yesterday. Lets show you what is going on. The fair value column. Onee going to be down 2 10. Looking a little sluggish. A big day for the bond market. Bund, an amazing move. 0. 05 percent. This will be the kind of thing that draghi and the ecb have worked hard to do. Incredibly low. Talking about 1 . Across then yields board. That is how they are trying to spur growth. Moves, and equity unexciting moves, the nikkei putting up big gains. Take a look, the crude price coming down. Well over 50 a barrel as well. Great psychological barriers, busted through. Finally, some strength in the yen. 107. Almost 108. Y what he wants to see but that is what he is going to get. To first world news. David the u. S. , barack obama has congratulated Hillary Clinton. Bernie sanders says he will continue to fight into next tuesdays primary. Ms. Clinton thanks to you, we have reached a milestone. , first time in our nations history that a woman will be a major party nominee. British Prime Minister and the leader of you cant have argued each side of the brexit issue. David cameron says the u. K. Would lose influence. He cost britain too much under what he called a quote ratan deal. Cameron cameron when we want to be strong in front of putins aggression, we need to work in these organizations. Yes, we need to work in that eu. Farange lets say they cut off their nose to strike their face. If they put tariffs on all scum a they will be lower than our financial contribution. No deal is better than the rotten deal we have at the moment. David the policy chief of the Main Opposition Party in japan says the central bank should ditch the negative Interest Rate policy because it is spreading on ease unease. We are talking about comments coming ahead of the upper house election. Wealthy people with at least 100 million will see their fortunes grow the fastest over the next five years. As stock markets recovered. It says hi net worth investors compoundewarded with annual growth rates of 9. 5 as individual and family fortunes 224 trillion. Global news, powered by our journalists. You can find more stories. Guy thank you very much. Mario draghi, starting on his Corporate Bond buying program today. Even before the ecb has bought a single bond, the policy has brought levels down. Bloomberg Corporate Finance reporter joins us. And lets welcome our guest, the head of fx strategy at ing. We have already had the move. The market has priced this in. Does today change it . Sally investors have already piling on. On that has pushed up prices and borrowing costs. Companies have responded with a surge in sales of the debt. On secondhighest month record. What investors are concerned about is whether the ecb can buy enough of the bonds to keep these prices supported. If not, there is a risk of a cell off. Sell of. Guest no, definitely not at this stage. We are talking about 510 a month. Of eligible bonds, we are talking 600 billion or so. This is not a japanese situation. Go . Ow much lower can we we must be at some kind of record. To selle they are going as much as they can. Sally there are concerns about what the companies are going to be using this for. Is it shareholder friendly activities . Will it be going into the real economy . Seen, borrowing costs crashed through the 0 mark. Getting back to the levels of 2012. Very close to those numbers. You can break it down in terms of what it is doing. That is going to move it up towards these levels. We saw going down to levels that are unprecedented. You talk about japan, we are not getting there. We are not looking for negative yields and the longterm bond market. We think yields will slowly drift up. That raises an issue you address. Longerterm expectations about whether the recovery is entrenched or we are going to have double, triple, or drupal drip quadruple drop in the economy. I wonder if there is a a a bubble. Ut t if they are issuing 50 billion to meet that, i would guess they would continue to issue at the same pace. Is there concern about a bubble . Sally there could well be concerned about a bubble. The ecb wants to buy from a popular and illiquid market. It will be difficult for them to hoover up the debt they need. Big question everyone is asking is how much will you be able to buy with it . First . Ll it buy chris is going to continue with us. Up next, brexit stress goals global. More details on that story coming next. Take a look, live shot of the Brandenburg Gate on another sunny day. Lower open. Cate a let me give you some breaking news. Coming out with earnings. First quarter earnings before interest, tax, depreciation and amortization. Estimated to an better than the estimate. Just to give you an idea of how much money that is, it is about 4. 23 billion. That they earned in the quarter. Revenue, 1. 05 trillion robles. Rubles. Better than the street was looking for. We will watch to see how the shares doing. London trading, shares have gained, almost 50 , year to date. Up 47 . Guy lets we are probably both going to toss to david ingles. Hasd lets talk about love. A billionaire investor is predicting the company will become one of the Biggest Companies in the world over the next decade or two, growing to a market value of 700 billion. Is one of the biggest investors intel is love. His firm has a stake in the Company Worth about 325 million. Toyota is facing more bumps in the road in the u. S. It is working to replace software problems. The company says the issue can also affect radios. Have koreas prosecutors raided the offices of shipbuilding and marine engineering. This comes after a committee of the second largest ship elder in the world requested an investigation into former ceos for allegedly mismanagement. And Rupert Murdochs toy for fox has announced a big investment in india. Moneyit is going to spend on the project. Includes 48 tv channels. Guy thank you very much. Brexit interference. Lets talk about that. The Central Banks are leaving policy on pause. Janet yellen became the highest profile policymaker to speak out this week, warning of significant repercussions. Mark carney has had plenty to say on this matter. Looks like policy makers will wait until june 24 to get back to work. What will they do when they figure out what the result is . Joining us for a continuing conversation, our guest. We are waiting for november, the elections. What kind of centralbank action will we see . Guest the markets can expect a 30 chance of a hike in july. If payrolls were to bounce back, that could put tightening back on the agenda. We think 30 is about right. Say, uncertainty in terms of world growth, definitely in wems of the bank of england, think of the baseline assumption we both state in. Think run and hold through march. Easing, ances of matt do you see growth targets as steady . They did not raise their numbers for 2018 which caused people to wonder if the strategy was working at all . Guest im sure they are sensitive to the euro strength at the moment. Eurodollar moving higher. I think they are very careful about how they get the message across. They are sensitive to those inflation forecast. Matt we had so many members who said they expected targets. Expected better than 1. 6 and they did not lift it. Guest it is regarding communications. If they sound of the all clear, i think the euro is going to move higher than they are comfortable with. Guy you are starting to see problems with corporate profitability. What are the dangers . Not three years out but maybe two years. 1. 5 years. We start to see a pop coming through. Chris you have to look around at where there is capacity. There is an element of specificity. Headline inflation will be. Icking up later this year i think people will be looking at the core as well as the headline. Whateverteady about kind of measure you look at. Of sparek to the issue if inflation does return, the pressure is to do more. Those expectations, reverting for less accommodation. Insipid was the word it used. Other places have used similar language. Familiar, a lot of people talking about this. We have been looking closely and it has been disappointing. European Industrial Production and those issues. Canerms of where growth surprise, q1 growth wasnt that bad. I was looking at the world bank forecast. It seems a little high for a target. Doing reasonably well. This year, one of the biggest themes is how u. S. Growth, we will end up with one of. 8 or 1. 9 . We are getting a bit of convergence. Guy stay with us. Stay with bloomberg. We have an interview with tony blair. He is going to speak to her editor about the brexit and the state of british politics. We are minutes away from the European Equity markets looking at some of the potential corporate movers. Including the u. K. Supermarket. They were down. Could have been worse. Guy 7 54 in londonderry lets talk about some the stocks we are going to be watching. The ftse, over 70 Million Pounds a year. Lined up. Great guests we will talk to shareholder a little later. Lets talk about german hearted discounters. Matt no, lets talk about u. K. Grocers. Sainsbury first why do estimates british investors love the grocer stories so much . Guy i give you a napoleon. We are a nation of shopkeepers. Hasnt that quote been used over and over again . It has always been a big institution. The reason i brought up the Hard Discount is, matt those are two places i frequent in berlin. I can give you the whole story on that. Quick break, we are back in two bank with more. Guy good morning. You are watching on the move. We are moments away from the start of european trading and mr. Matt miller has your morning bief. Matt draghis bid for credibility. The ecbs Balance Sheet approaches a record. Whether be enough supply to buy . And sluggish, dismal, now insipid. The world bank reaches for a thesaurus as it sounds the alarm on Global Growth. How many ways can you say, it is just too dorarn slow . Hillary becomes the first woman to run as the president ial candidate of a major u. S. Party. But when does Bernie Sanders get on board with her candidacy . Probably not until the convention. Guy . Guy it is looking like that. It will be interesting to see what the end result of the meeting is with the president later this week. The european open is here. Lets show you what is happening. We are getting a slightly negative start. Let me bring up the gmm function and get some equity moves in here. We are expecting a fairly slow start for the european day. 5 . Mx is down by the netherlands are trading d own. And im looking for the ftse 100, down by. 2 . So, a weak start to the session. Lets find out the details of the session with caroline hyde. Caroline yesterday we added 100 billion euros to the stoxx 600. Today, a little bit of cautious trading. 2. 4 toh from 2. 9 . Neta, is it net negative or positive . We are coming on the imap, showing you the industry of the stoxx 600. This is the benchmark, of course. The worst performance, the i. T. Sector. Also, the financials are up by some. 6 . We will begin to the Austrian Bank in a moment. United kingdom, we are currently seeing a little bit higher in terms of the yield, up about one basis point. We can see across the board, german, french, u. K. Yields coming off of what would have been record lows. What a search for safety we have seen, guy. I just want to show you what happened to germany yesterday. With all the bond yields at a record low. We came down as much as 1. 45 at one point. Yields are picking up, but only at a basis point. Money is moving into bonds. The United States seems to push back on any very imminent rate hike amid these Global Growth concerns. Lets have a look at the stocks to watch this morning. Sainsbury is up almost two Percentage Points with First Quarter sales beating estimates. Sales are down, excluding fuel, but much better than what have been expected. They say their Market Conditions remain challenging. Erste, the Austrian Bank, a big shareholder. Selling shares to the tune of 70. 4 million shares. They are going to be making 90 Million Euros on that. Oao, up there. 5 . The oil price has declined. There is a higher tax burden. They have managed to erode earnings by 14 , that is of course, helped by the fx. Matt the world bank cutting at that look, citing lukewarm spending. The institution cut its u. S. Growth outlook to 1. 9 this year from 2. 7 . Global growth will be insipid, 2. 4 . Ings turner, the head of strategy. What you think of these cuts, they are pretty deep. Chris yes, they are, which is as to be expected. We saw a soft patch over the last three or four months. Obviously, you mentioned kind of emerging markets and like brazil, for example. They look for a contraction of about 4 this year. We have seen a pickup in some commodities over the last four weeks, particularly in the energy sector. Late perhaps guy what has changed to change the numbers . Chris i think that expectations were that the u. S. Would probably be growing in the high twos guy why is that . Chris six to eight weeks ago, this dollar could have been too strong for too long. Eyee the fed took their of the board regarding dollar strength. I thought was interesting the fed put out a chart showing the impact of a strong dollar on u. S. Inflation and growth. The impact on inflation was more easily detectable. The effect on the growth is more transportable. Is more transportable. Guy how much volatility will we see between now and the end of the year . Year there time last was a window for parity. The fed couldve potentially hike three or four times. The fed a seems to be using more of this financial conditions motto, taking the dollar into account. It looks like the fed will be very gradual, whether it is one , two, or none. We think they are off sending the dollar through the roof again. So, to cut a long story short, the dollar has probably seen its best levels. As we get to the end of the year, we think the eurodollar will be pushing up to 1. 15. The premium might be quite bearish for the dollaryen in particular. Obviously, trump with his views on that. China, for example. China trade. [laughter] matt chris, i am going to get away from donald trump for a moment and ask you about the ecbs Balance Sheet. I have put together a chart one year ago looking at the ecbs Balance Sheet as a percentage of gdp. Th line here in blue. The feds Balance Sheet, although as a percentage of gdp. The ecb is now a clipping the fed as far as its spending. That is going to go much higher because right now we only have done it going into the end of 2015. Obviously, they are ramping it up. Is that a problem for the economy here . Chris no, i think the ecb is going through this eyes wide open. Liquidity thatig is going to depress money market rates. We can see that with rates expected, pretty much kind of stuck on the lows. Comfortabletty around. 4 . They probably still want the euro to stay softer. 2014 and ie story in dont think they are off that view just yet. Guy thank you. Up next, chinas exports have stabilized. Demand . Improving we have this story, next. Matt welcome back to on the move. You are looking at a live shot in new york city, currently 3 00 in the morning. After a mixed close, very little movement. Gains on the dow and the s p 500. The nasdaq is actually pointing down. We are now looking at the action in european stocks, all red arrows. Even the ftse right now. Guy lets put those numbers on the screen. As matt says, negative numbers. I will check to see if there are any dividends. We have seen a rise of 2. 5 on the upside. I want to bring you breaking egyptair,ed to eac following the disappearance of the aircraft carrier. They have set a plane has landed eat. Er there was a bomb thr we watched this story carefully to see if this was just a threat or if there was some substance. Egyptair has confirmed that an aircraft did land. I think it was en route to beijing. We will wait to see and what details we have coming from that. But obviously, the Ongoing Investigation in the mediterranean is something everybody is paying attention to. Lets get some more International News for you now. Here is the first world news with david inglis. David thanks, guy. Lets it started in the u. S. , where barack obama has congratulated Hillary Clinton for her victory. He Willie Sanders says continue to fight into next tuesdays primary. Earlier, clinton addressed brooklyn, saying history have been made. Clinton thanks to you, we have reached a milestone. The first time in our nations history that a woman will be a major Party Candidate leader. British Prime Minister has argued each side of the brexit issue in a tv special. We have David Cameron saying the u. K. Would lose influence on the global stage if it left the European Union. On the other hand, Raghuram Rajan argues that this would cost to britain in a rotten deal. Things that affect our great country, we would have no say over. Whether he want to make sure iran does not create a nuclear weapon. When we want to be strong against putin, we need to work in the u. N. And in the eu. Lets say they decide to if they put tariffs on us, they would be significantly lower than their net financial income. No deal is better than the rotten deal that we have. Japans economy has grown more than initiall