Im mark barton in london. We have stocks falling for a fifth day. It was a central bank heavy day yesterday with yellen, carney, and draghi speaking. Against theup dollar, rising to a oneyear high, 1. 1381. The yield rose the most sense january yesterday after fed chair janet yellen spoke. The u. S. Can withstand higher rates. 0. 1 ,mex crude is down by falling for the first day in five u. S. Days. Crude stockpiles rose, exacerbating this government data. Inventories extended declines from that record reached at the end of march. Lets get the bloomberg first word news with sebastian salek. Reporter a new cyber where attack has reached asia after spreading from europe to the u. S. Overnight. With being carried out users told to bitcoin. Ransomeware is becoming a routine risk of doing business around the world. Senate republicans have postponed the vote on a new Health Care Bill after at least five gop members said they would not vote for the bill. The delay is another setback on the republicans campaign to repeal and replace obamacare. We are going to talk and we are going to see what we can do. But for the country, we have to have health care and it cant be obamacare, which is melting down. The other side is saying all sorts of things before they knew what the bill was. This will be great if we get it done and if we dont, it will be something that we are not going to like, and that is ok. Reporter the u. K. Prime Ministers Office has tried to downplay a row over whether britain should have a transition period. This is after david davis accused Philip Hammond of taking inconsistent positions on whether the u. K. Should seek a remain deal. All of this comes ahead of mays first Prime Ministers questions session after her disastrous elections result. Warren buffett said he would never take credit for anything the market does and he was president. Warren buffett, who backed Hillary Clinton during the election, said stocks have been rising since the financial crisis. Results have been going up, basically since march of 2009, very early in march, going up almost every since then. President ,et elected i will not take credit for what the market does because i dont want to be blamed when it goes the other direction. Reporter global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. This isstian salek and bloomberg. Mark u. S. Stocks fell the most in six swsweeks yesterday. Janet Yellen Technology equity valuations, and other markets have climbed noticeably in recent weeks. She spoke here in london on the same day similar comments were made elsewhere by vice chair Stanley Fischer and John Williams. Somewhatvaluations are rich. We could use some traditional metrics. But i would not try to comment on appropriate valuations. Those ratios depend on longterm Interest Rates and you know, of course there is uncertainty about that. Yes, by standard metrics, some asset valuations were high, but there is no certainty about that. Mark meanwhile, the International Monetary fund removes assumptions of President Trumps plans to cut taxes and boost infrastructure spending. The imf reducing its forecast for the u. S. Growth to 2. 1 , down from 2. 3 . Bilal hafeezn and james pomeray. Three fed officials were talking about rising asset prices, a new metric we need to throw into the equation. I think from our side, central bankers are going to have to think about this because if you think inflation is more and more so structurally lower, the wage growth is lower in a world of automation, you have digitalization, then maybe inflation is a little bit lower. May be the labor market does not tell you everything you wanted to. Maybe central bankers need to look at a broader sweep of data, and one of those things could be asset data. Central banks more globally have to start thinking about a broader set of adata. Mark does this strengthened the umbrella of tightening policy . The bond market does not believe it. The fed is aware that a large reason for asset Price Performance has been low Interest Rates. But they need to do on a sustainable basis is remove that support, hopefully without an accident on the way. But the longer they dont do that, the more risk there is that asset prices become too expensive. Mark the imf yesterday, cutting the forecast for the economy, removing assumptions for Donald Trumps plan to cut taxes and boost infrastructure spending. Growth is what trump hoped for, pledged, whatever word you want to use. Easable . Oking unfesabl i think so. Youif you are the u. S. , and have an economy with reasonably high levels of debt, and a demographic challenges yes, the u. S. Has better demographics than the rest of the world, but you have a flowing population. Your structural growth rate is 2 , if not lower. Mark do we now believe the inability of a vote to take place on health care is there a possibility for donald trump to push through his agenda . That is the risk. If this is taking so long, maybe future reforms take a bit longer. We originally made these were forecasts on the assumption of some fiscal stimulus. A bit morebecomes reduced and then we have to be more pessimistic. Mark lets talk about the dollar, around the lowest level since october. What is going on . Piece is a story that has been going on since the beginning of this year. The last three or four years we have had a story where the fed has been tightening policy. Usingb has been quantitative easing, but the rest of the world is now catching up to the u. S. This weakness is an ongoing story. This low in the dollar will continue to head down, and we saw that yesterday. As soon as the ecb talked slightly hawkish, the euro surged. Mark give me some pairs. I think right now the european crosses are the best, the eurodollar, the scandinavian currencies. Looking ahead, the yen could start to participate as well, especially if this selloff in equity markets continues. Mark do you think it will continue . I think so, yeah. I think some of the moments last nowhe weakness in yen the central bank says, we are going to hike rates. Mark how close are you looking at the weakness in the oil price, james . When do we start waving the red flag . When we get to 30 . It depends on who you are. European consumers will level at 30. Although today, there could be at any point in the path. It is more of a supply issue than a demand issue. 30 is great news for the european consumer and the u. S. Consumer, people who have seen consumption slowdown from higher inflation. That could help consumption. There are certain winners and losers. Mark james pomeray joining us. Getting more news on that cyber attack. Another company that has been affected, bnp paribnas. The cyber attack has affected the real estate unit. Bnp paribas says measures have been taken to limit the impact of the cyberattacks, which is andcting the u. S. , asia, france. Includinging up, theresa may preparing for her first Prime Ministers questions since her disastrous election results. What could be a testing day for the u. K. Premier. As the latest cyber attack goes global, we look at who has been hit, and who might be behind it. This is bloomberg. Mark lets get the Bloomberg Business flash. Reporter nestle announced a 21 billion buyback, looking for a position just days after a shakeup was called for. The company has not had a repurchase Program Since 2014. They also called on nestle to sell its stake in loreal and take on more debt. Toshiba has assumed Western Digital four 1 billion in damages and is looking to stop the u. S. Company from interfering with the sale of its chip unit. Toshiba said it needs more time to reach a final agreement on the sale of the business, but reassured it is on track to complete the deal by next march. Deutsche bank made a u. S. Inflation bet, and could lose as much as 60 million. The german lender has been examining whether traders breached risk limits on the deal and such a loss would be a loss fforts. Cryans e an official declined to comment from new york. Mark Prime Minister theresa mays new minority government will face its first test later following a wave of terrorist attacks. The Opposition Labor Party will demand a vote, demanding more money for Public Services. Meanwhile, may will address lawmakers this lunchtime in her first Prime Ministers questions session since her failed election. Andl with us, bilal hafeez james pomeray. James, yesterday boe, fpc, semiannual fo Financial Stability report the take they are taking away some of what they gave last their, essentially postbrexit. Some saying, does it lessen the need of the npc to tighten policy . To an extent. We are of the view that the bank of england will not been moving anytime sinful step that is will not be moving anytime soon. That is because uncertainty around brexit trumps anything. There is not a case to keep rates that loose because inflation is high and credit growth is strong. It means we dont expect the bank of england to be doing anything on rates. Mark so, we should not be too distracted by the fact that the vote at the last meeting was 53 . Well, actually, we do expect the bank of england to hike rates. Mark good. Our view is last year they did have an emergency cut, and this year they will reverse that emergency cut and do one hike. Fpc they did the yesterday, the announcement changing the capital buffer, they also did that last year. Soon after that, they cut rates, and i think it is part of the same sort of package. The economy is not in emergency mode, so they have to reverse some of that. Mark isnt this a case of rebirthing, james . We have brexit to consider. We had another 25 basis point hike, new record levels. The u. K. Consumer is probably in worse shape now than they were last year. Are they placed well to deal with another rate rise . Mark are they, bilal . The way central bankers deal with high inflation is to raise rates. You can argue it both ways. Mark are you not troubled by the inflation overshoot, as some are . Actually, most of this is transitory. The currency weakness will eventually wash out of the data. There are very few signs of domestic driven inflation. If you are looking over the mediumterm, i think you have to think high inflation washes that reasonably quickly and that is why we are putting a big focus on the weakness of the consumer. Which has been referred to as well. In the last 24 hours, the deputy governor, the policymakers do have time before the need to hike because there is not much domestic driven inflation. Sterlingdollar, 1. 2811. We could not hold above 1. 30. Where is sterling heading from here . Given where we think the eurodollar could go, cable could go higher. It is more a reflection of the dollar weakness than it is sterling strength. I would also add on the sterling side, so much bad news has been priced in. We had this election result, the hung parliament, talks about the brexit negotiations going nowhere. How much more bad news can you get for the u. K. . To that extent, there is a limitation to how much weakness you see in the pound in the shortterm. Mark thank you for joining us today james pomeray. Bilal hafeez will be staying with us. Up next, ransomeware return. How big an impact is it having . We will bring you the latest. This is bloomberg. Mark you are watching bloomberg surveillance. Im mark barton in london. Bnp paribas is taking measures to limit the impact from the cyberattacks, which affected the real estate unit. This is the major ransomeware attacked that has affected businesses and governments across the globe. Give us a feeling of the extent of this attack, charles. Quickly. Ead very yesterday it was contained within the ukraine. It spread westward. A shipping company has been hit. Wpp has also been had. What is interesting is these companies have not solve their problems overnight. Down. Website is still merck had to shut down some of its systems. These issues are not going away. Mark seemingly, it is multiplying. Because, we had the wannacry attack. Why is there a proliferation in these attacks . There is a huge database of these attacks. Essentially, people are offering these attacks for the highest bidder, essentially. It is important to note that wit h this latest one with this one, even though it went through the same type of format, paying 300 bitcoins, the email you use to pay, it has been taken down. They are not interested in giving you your systems back. Your Computer System has been knocked out. Mark what happens now . Does this kind of attack evil overtime . Does this kind of attack evolve overtime . Remember, this is something that is hitting systems that companies dont want to take offline. Fors taking systems offline shipping systems. You risk updating them. Are solving the problem and you end up creating two or three new ones. If things are working, dont fix it. That is the attitude the companies are taking. Unfortunately, they are now paying the price. Mark still to come, the tenyear anniversary as the beginning of the Global Crisis continues. Gandy. K to bridget this is bloomberg. Mark you are watching bloomberg surveillance . As hasian bnp parib become the latest business that is confirmed it has been impacted by a cyber attack. Its under control. Spread around the world hitting businesses and Government Systems. U. S. Stocks fell the most in six weeks after a trio of Federal Reserve officials address the issue of rising asset prices. Janet yellen acknowledge that equity valuations declined noticeably in recent weeks. Asset valuations are somewhat rich if you use pricetoearnings ratios. On i wouldnt try to comment appropriate valuations, wh dependat to on longterm Interest Rates. Of course, there is uncertainty about that. So, yes by standard metrics, some asset valuations look high , but theres no certainty about that. Sebastians republicans have postponed a vote on the healthcare bill after five members said they would block debate on the bill drafted by Mitch Mcconnell. The delay is a setback on the republicans sevenyear campaign to repeal and replace obamacare. K. Prime Ministers Office has tried to downplay a row. After the brexit secretary david taking ansed them of inconsistent position on whether the u. K. On remaining in the Customs Union. All this comes ahead of mays first Prime Minister question sessions since the disastrous election results. Global news powered by 2700 journalists and analysts in 120 countries. This bloomberg. Mark thank you very much. Just putting a wonderful chart together while i listen to you. Lets get on with currencies. The big week for Central Banks continues. Bank of Canada Governor on a panel at the ecb annual forum. Gou can watch that on live from 2 30 p. M. London time. Was is a chart i desperately trying to put up. And i managed it. This is eurodollar. Were obviously today at roughly 1. 13. Lets stick a q in there. 1. 13 was key because it was the u. S. Election level. 1. 1428 was the psoost brexit high. 1. 17 was the high from august, 2015. Those are all those levels. How swiftly to a breakthrough them now that we have broken that key post trump election . High . I think we broke to the very levels in the next few months. Over the last two years we had a tell you range. Its unusual to have a choppy range. The last time we had Something Like that was in the early 2000s. It does not last. The big difference right now is that there is a very powerful european story we are seeing. European growth is very strong with the politics is all turned out advantageous towards europe with macrons victory. We are having flexibility, allowing the italian banks this is real, what we are seeing. And i think we could see in the next few months a move up towards 1. 15. Mark did draghi take us by surprise by his more hawkish stance . Ove move in the euro, big m upwards in bond yields. Bilal it certainly did take us all by surprise given how big the move was. The message from the last ecb meeting was waitandsee. This was much more bold. What he said yesterday, in essence, saying the weakest inflation is temporary, the oil shock is a supply shock rather than a demand shock. And he talked about how the broader european recovery that is going on. It took everybody by surprise. It is in line with many other peoples view that there is a european recovery going on. Tighten doesnt have to policy but he can tweet the accommodative side. Bilal emergency measures they put in place during the height of the European Crisis in 2012, and unwinding that. The reality for markets is the same thing. Mark calendar watching, the next key date to watch is the september meeting . They update their forecast around that time, and that will be, in our estimation, that is when they will announce the tapering program, which will be of limited at the end of the yea. R. In september, they will say at the end of the are we will start to taper. Mark and they won raise wrates before the end of the program . Bilal if they reduce the purchases by the second half of next year, they have finished tapering. Mark is it going to be a smooth process . We know what ben bernanke he said the tapering comments did all those years ago. Mere threat ofhe tapering. Bilal these things never go smoothly, no matter how much they want them to go smoothly. If you look at the feds taper there were other instances were Central Banks have unwound with low Interest Rates. It is always a bumpy ride. The advantage that the ecb does have is its q. E. Program is complex. They already have tapered bunds already. To some extent, that does muddy the water. On balance, whatever a central bank unwinds, it is a rocky r