Extremists. Kohls kaepernick and that with polls have her neck and neck the first round. A big impact on the markets. Lets get to your day to check. One thing we need to watch out for today. There is a very clear move to haven assets. You can see what we are seeing for young, for example, 110. I wanted to show gold in a couple of minutes. Stocks slumping. Yen gaming amid geopolitical concerns. Stocks in europe for the unchanged. Kreuz something we need to watch out for, just above 53. Something we need to watch out for, just above 53. Gold is gaining at the moment. Nejra the white house has warned syria to stop using barrel bombs against civilians. It suggests donald trump may expand the criteria for u. S. Action against assad. Rex tillerson visits moscow a chance to persuade russia to cut support for the syrian regime. Trench president ial candidate Marine Le Pen has described multiculturalism as a weapon for extremists. In paris, she said fighting terrorism must involve preventing muslim communities from imposing their way of life in france. Societya multicultural is a multiconflict society. The struggle against the Constitutional Community which exists in france, which must be a priority of the next president of the republic. Asra a camp housing as many 1500 migrants in northern france has been destroyed by fire. At least 10 people were injured when the blaze tore through closelypacked shelters near dunkirk. That was a fight between afghans and kurds. Last month, officials said the camps have been dismantled. Ecause of unrests a south korean president ial hopeful said he would confront north Korea Nuclear ambitions through direct talks with kim jong un. The candidate for the main nine election told the korean herald that the south is currently a spectator to the actions of china and the u. S. United airlines has come under fire after video of an incident on one of its planes went viral on social media. No oh my god called policerier after a passenger refused to leave a flight from chicago to louisville. He was violently pulled from his seat. The man was not being ejected for misbehavior or a security threat, but to make a united employee. A unitedpace for employee. Tesla has cap General Motors topped General Motors to be the largest u. S. Carmaker. The company is within 1 billion of conduct, and cracking the top five automakers worldwide. Honda,in 1 billion of and cracking the top five automakers worldwide. Francine the Federal Reserve chair, janet yellen, said the Central Banks task has shifted from a post crisis exercise of healing the economy to one aimed at holding onto progress made. Yellen and her colleagues are planning to ease back on the level of support the fed is providing the u. S. Economy, as they close in on their goals of full employment and 2 inflation. Yellen with the economy operating close to our objectives, we want to make sure that we sustain the progress , and thatve achieved the appropriate stance of policy now is something closer to what we call neutral. We had a footore pressed down on the gas pedal, trying to give the economy all could,oomph we possibly now allowing the economy to kind of coast and remain on an even keel, to give it some gas, but not so much that we are pressing down hard on the accelerator. That is a better stance of Monetary Policy. Francine that is chair janet yellen. Julie chillingworth at rathbone joins us. And an economist at Merrill Lynch international. What did we learn from janet yellen yesterday . Nothing really new, in the sense that it was probably one the fed was trying to steer the markets toward for quite a few months. What i think is interesting is that we have a fed that is telling us, we do not need to be accommodative right now. We can be neutral. That is enough. At arowth is hovering mediocre 2 . That is telling you the fed has completely accepted the idea that the new normal for the u. S. Economy is fairly mediocre, with Growth Potential he at one point 75 potentially at 1. 75 . We agree that growth is mediocre. Inflation is normalizing. In thosest, conditions, would want to normalize Monetary Policy at a quicker pace. It makes a lot of sense. Relative to where we were a few years ago, it is still very early to say we can go to neutral. Francine at the same time, janet yellen believes gdp is a noisy indicator. Yes, and i think that she, in the speech, made mention of inflation targets, which are pretty well under control. What i would say is that i think come tovestors have to terms with the fact that, postcredit crunch, the new normal will be a much lower rate. I think is the developer of economies, we have to adjust to much lower growth spreads then we perhaps had experienced through the 1990s and 2000s. That message was reinforced. Francine it is the Balance Sheet that people want to know. That is talked about too soon, does that risk having a huge pressure on the markets and hurting gdp . Gilles yes, but the market took this news about the beginning of the conversation about you know, the fed Balance Sheet, fairly nicely. There was no massive overreaction. So at the moment, i guess there is a fairly benign view on the capacity of the bond markets to take this on board. Yellen still gives herself a lot of leeway to pedal down if she needs to. We are not faced with a fed that has decided to normalize , ignoringolicy whatever signals we get from the economy. They remain cautious. It is quite clear they have decided it is time to normalize, committed to aot faster pace. They can still modulate the policy quite nicely. The risk of policy error in this kind of situation, given the message we get from yellen i think this risk is lower. Francine we will come back to the economy and just a moment, but we are getting breaking news out of toshiba. Toshiba is the Japanese Company that has been delaying submitting their thirdquarter earnings. They just submitted them with an auditor disclaimer of opinion. This means they submitted them, but there is an independent review. That is, i believe, what it means. We will get to the bottom of it. I know there is concern if they had delayed even more submitting these earnings that they would have been delisted. Need to keep an i on toshiba. This is probably one of the companies that has suffered the most. If you look at the earnings release, it could not come any sooner. I know they are due to hold a press conference shortly. We will get to the bottom of that, and you will have the very , anotherom Toshiba Company that is really being beleaguered. Back to the way the markets are reacting to the fed and centralbank policy, do you think the shift today is more on geopolitical concerns . Julian the fed has been posting pretty clear mileposts along the way, for us to know which direction they are going. And tensions are rising again. There has been quite a lot of rhetoric overnight from north korean leaders. I think that the markets having ignored geopolitical concerns for some time are now focused back on that area, and we have obviously got problems in the middle east, issues in asia as well. Consequently, i think it could be something that features strongly through the next couple of months. Francine do you agree to focus is on other things at the moment . Spending time talking about politics, talking about macro policy. Francine we are looking at what the polls are thinking about the way we are reshaping this new world. Obviously, there was a lot of, how do you say, expectation questions about the new u. S. Administration. The first tests, in a way, are coming in, and people want to know that. Europe, because of the number of key elections it is not just the French Election. We know that italy, possibly spain within the last 12 months, to go into another electoral cycle. There is lots of interest in this. You still have the questions about the shape of the eurozone next year and a few years out. Turkey and a number of things to think about. Francine we will talk a little bit more about geopolitics and the g7. Gilles moec and Julian Chillingworth stay with us. I will be speaking tomorrow with Christine Lagarde at 11 30 a. M. U. K. Time. Here is nejra cehic. Nejra luxury goods lvmh reported firstQuarter Sales that exceeded estimates. The maker of hennessy cognac said sales rose 16 . L dmh joins rivals such as hermes in reporting a turnaround after several years of having demand in china and a slowdown in travel to europe. Volcker has accused apple of to cover upulators the use of inferior parts and some iphones. The Worlds Largest maker of phone semiconductors responded to a lawsuit from apple with counterclaims for damages. It alleges the iphone maker breached contractual pledges, mischaracterized agreements, and misrepresented facts. That is the Bloomberg Business flash. Francine the white house has warned syria to stop using barrel bombs against civilians. Later today, secretary of state Rex Tillerson will travel to moscow, hoping to persuade russia to cut support for the assad regime. The conflict dominated talks at the g7 summit in italy. The United States have already imposed some extra sanctions themselves, and we will be discussing the possibility of further sanctions , certainly, on some of the Syrian Military figures, and indeed on some of the Russian Military figures who have been involved in coordinating the Syrian Military efforts. Francine that was boris johnson. For more, our International Government executive editor is here. Still with us, Julian Chillingworth and gilles moec, european economist at Merrill Lynch international. John, what did we learn about the g7 response . Are they more united in trying to stand up to russia . John certainly, yes. They are keen for tillerson to head to moscow with a clearer message of unity about how much they support the attacks we saw last week. A key question at the g7 is, how much damage can they do to the russian economy, or what kind of sanctions can they push through, and whether putin will take that seriously. Francine Rex Tillerson goes to moscow. Hell frosty is that relationship . Or they enemies, frenemies, friends . John it looks frosty. We do not know whether tillerson will meet with putin. It is the first time in decades a u. S. Secretary of state, on his first trip, has gone to moscow and not met with the premiere of moscow. Things are not looking very good at the moment. Certainly going to be looking to have a show of strength. Is not keen to show any sort of friendship toward the administration. A better do we have understanding of the trump intent in the middle east and with russia . John no, we dont. If you listen to the statements coming out of the Trump Administration over the last three or four days, they are sort of all over the place. Sometimes, they say the u. S. Will prevent any more slaughter of the innocents. That could mean anything. On other occasions, you have Trump Administration officials saying the u. S. Policy in syria has not changed, which means nonintervention or more nonintervention. Obviously, a lot of drama over the last four or five days, but we do not know if there is a trump doctrine on the middle east, whether we will get one at any point in the future. Francine has the world become a much worse place, in terms of security, and the last two weeks, also because of what is going on with north korea . John if you add what we have learned over the last four days, the news contradicts the rhetoric of the Trump Administration. No one really thought he would come so quickly with the missile strikes. If you are looking at the korean arena, if you are looking at the middle east, there is an added note of uncertainty in terms of what the Trump Administration thanks. They certainly show they are prepared to act. Isncine 80 of your time trying to figure out politics. What is the question you need answered . I have been told maybe if you are not very political, that gives you the upper hand in negotiations. John at the moment, there is focused on the French Elections. Mark your point, on the u. S. Relationship with europe, there must be a certain level of relief right now in european circles. Because syria is actually central to europe. We had to deal with a major refugee crisis just two years ago. It seems far away, but in germany in particular, it was a massive problem. Dealing with syria is central. The sense in a lot of european capitals is that the u. S. Would not engage. As you say, there was a proper , but at leastine there is a sense of a modicum of engagement from the u. S. It is very i think it comes as a relief. The same thing in terms of this frosty relationship with russia. The one thing that europeans were expecting from washington, d. C. Was some sort of continuation of the usual policy towards eastern europe. From that point of view, there is probably a little bit of hope. Francine if you look at it from a clear market perspective, just by volatility you read johns articles, and then you buy viz. Vix. That. you could argue i think that for investors the unpredictability of the new trump regime is the worrying angle to this, obviously, even if you are buying. I am not sure that is always going to make you a huge amount of money. I do think you need to take the view that we are in an uncertain world in terms of geopolitics, but also and in certain uncertain world in where we are going to see growth and earnings. You need to probably take a fairly cautious attitude across the board, and that is what we have been saying for the last 12 months. Francine if you need to understand i know we are trying to understand the Trump Administration x cap administrations next move. Who does he listen to . Visit his family . John that is a question everyone is trying to figure out. I think people like mcmaster are also very important. Rex tillerson may not always be on the front line of decisionmaking, but trump is a businessman and he knows different parts of the world. Trump is not that different from most president s. You listen to views and you trust your gut. Obamas got told him not to get involved in syria, and trumps told him the opposite. We do not quite know exactly who the four or five people are he listens to. Francine john heads up our international editor. Gilles moec and Julian Chillingworth stay with us. We are still getting breaking news out of toshiba, trying to figure out exactly what these earnings mean. These are earnings they have been delaying putting out. Now, they are earnings without auditor approval, to maintain need to take them with a little pinch of salt. The Japanese Company says it sees doubts over growing concerns after the bankruptcy finding of its Westinghouse ElectricNuclear Power plant in it postedwhich means operating losses of ¥576 billion. I imagine what people are trying to figure out now, because they delayed reporting this for quite some time, is whether to trigger some concern that they will be delisted. Without auditor approval. I imagine they did this to try not to get delisted. We will get a report online and bring you the latest. A ninemonth operating loss, ¥576 billion. This is also what we are hearing on putin and tillerson. John was just talking about it, saying there was no confirmation. According to rbc, citing two unidentified people, putin will meet Rex Tillerson when he arrives in moscow a little later on. That if just telling us he were not to meet the president , it was one of the first times ever a secretary of state of the u. S. Would not meet the president on an official state visit to russia. Up next, it is a celebration. Openy leader lvmh crocs the champagne. It is all about asia and china. Francine this is bloomberg surveillance. Shares hits lvmh a record high after sales that exceeded estimates. There was a Strong Performance in fashion and spirits brands, which mirrors a wider rebound for the luxury industry after several years of slowing demand. We will talk to andrew, who has been covering the regional section for several years. Andrew, great to have you on the program. This is a wider luxury industry that is rebounding thanks to what, asian demand . China is certainly coming back, and not just the mainland. Those have boosted demand across europe. Francine what is selling while at lvmh . It is known for its champagne. Andrea the fashion has done well. You have Louis Vuitton bags. They never stopped being popular, and the other fashion brands as well. Francine how does that compare to competitors . Andrea this far exceeded other and industryowth growth. Lvmh has products customers want to buy. You can have the best Brand Ambassadors and strategy, but if you do not have the hand that customers want to buy, there is no point. Francine but how do you sell that . Is it marketing, celebrities, or the designer . Andrea it is designers that make the product that people want. One of the most popular bags they are big, unstructured, monogram bags. Eternally popular. Francine do they benefit from currency swings . Andrea of course. The chinese are very sensitive. They will shop where they get the best deals. The u. K. , at the moment, is very popular. That is spending in one place and not another place. It is really down to the product you have. Francine a great update from lvmh. We have