Im Francine Lacqua. It is an extremely busy day. Lets get straight to the markets. We have the fomc meeting yesterday. The fallout from that and the fact that investors had to read price their expectations of a possible fed increase in june. A lot of the immersion marking currencies emergingmarket currencies are down. 0. 6 . Down travelf the focus is on stocks. A lot of the airlines the stocks are going down. News,we had that terrible egypt deploying naval ships to search for this egypt airbus. They went missing overnight. We have news that it may have crashed near one of the islands in greece. This has not been confirmed. Highlymeantime, i suggest if you are a bloomberg. Go to live gordha this is our uptotheminute blog. There is a press coverage an hour and a half from now. We keeping uptodate with the and the crisis meeting that france is having. Nejra the missing egypt air flight from paris to cairo reportedly crashed in egyptian airspace. A320 came down there a greek island. Communications were lost which has 56 people on board at about 2 30 a. M. Cairo time. Earlier, egypt deployed naval ships to search for the plane. Federal reserve officials are looking to raise Interest Rates in june. To the u. S. Economy to confirm that slow growth in the First Quarter was temporary. Minutes of the april meeting use the word june six times. That signal follows several fedches by regional president s warning investors not to dismiss a midyear hike. Bayer shares are lower after monsanto said it received an unsolicited takeover offer from the german company. Bayer has confirm the offer and the worlds biggest says the proposal is nonbinding but has not offer any more financial details. Is 42os market value billion. Is exploring a potential zeal. Monsanto failed last year and a forbillion deal syngenta. You can find more stories on the bloomberg at top. Francine we will keep you uptodate with anything that we here in terms of breaking news on the back of this egypt air, paris to cairo fly. It has not been confirmed that this plane may have crashed near one of the greek islands. Onto our biggest corporate story. Off ase banks kicks we speak. The meeting comes amid plunging revenue. Shares down almost 50 since last years meeting. John cryan is due to address investors any minute now. We will bring you those headlines as they break. Matt miller is on the ground waiting for the agm to kcick off. I cant convey how much pressure mr. Cryan is under. He speaks to any ceo in london, and they say, im glad i do not have his job. What are they expecting today . Matt you spec to hear his plan to turn this bank around. We know the broader details, he has got to convince toreholders and hes got convince potential shareholders that this bank can survive at all. I mean, he has got to cut costs so deeply that it is going to cut into the bone of the investment bank. Not to mention the fact that hes got lawsuit after lawsuit. We heard again this morning about a new lawsuit for rigging some fixed income assets that is going to cost billions and billions of dollars. And already has cost them billions of dollars. This is a company that needs to raise capital again. And in the last three capital increases they race 22 billion. The market cap is less than that now because the shares have lost 50 of their value in the last year. This is a bank that is certainly in crisis. John cryan, however, is seen by most of the investors i have spoken to as may be the one person who is capable of doing this restructuring and getting this bank through the crisis. Thequestion is, can he be visionary leader to get clients to come back to start the bank on the path to profitability once again . That is what he has got to convince shareholders of today. Francine he certainly does. We will keep a close eye on the agm and get back to matt miller with breaking news. Matt miller on the ground at the Deutsche Bank agm in frankfurt. Lets get to the latest on the egypt airplane that disappeared. We are joined on the phone from cairo by bloombergs north African Bureau chief. If you look at the uptodate situation, it we are having conflicting messages about what couldve happened to this plane. Are you hearing anything about report suggesting there had been an accident, that this plane crashed off one of the greek islands . Right now to egyptian officials have not confirmed anything. They have been very pointed in keeping alltheyre options open at this stage and that there is no official confirmation that there was a crash. They dont know what brought it down or what happened to the plane, i should say. They are classifying it as missing. And that is pretty much all they are willing to say. There had been an earlier report, or statement from egyptair saying there was a distress signal received from the plane by the Egyptian Military. The Egyptian Military subsequent leak came out and said they did not receive any distress signals. Subsequently came out and said they did not receive any distress signals. It has not been confirmed. It is an of course, ongoing investigation. We know that egypt has deployed some naval ships. Do you know how wide the perimeter for search and rescue is . Right now, no. The plane went missing about 180 kilometers off the egyptian coast or about 10 miles into egyptian airspace. That is unless we have heard. You know, where how far theyve really spread the search perimeter out, i am not entirely sure at this point. s difficultknow it because we are altering to find out, we have people on the ground gathering information. The situation is very fluid. There is also a number if you have relatives in the region that you can call. The us a sense, this is not first time there have been incidents involving egypt and airplanes. No, not at all. And this is really kind of unfortunate for the country. In march, there was a wasacking, a domestic it hijacked to cyprus by a guy who said he had an explosive vest. Turned out he did not. It was a domestic issue. In october, and this is the major one, there was the metro russian passenger jet. About over 220 people dead. He islamic states affiliate in egypt claimed responsibility for that. It just in officials have yet to not said, they have terrorism was the cause and they are saying the investigation is ongoing, even though britain, have reached u. S. This conclusion that this was in fact an act of terror. Francine thank you so much. Our North Africa Bureau chief. Just some, a little bit of information. We had the headline about 20 minutes ago saying that the plane may have crashed if you look at the flight path, it is possible it had crushed there. Although officials on the ground are telling bloomberg that it is way too early to reach any conclusions about the plane, including calling the incident an accident. For the moment, we dont know. Greeks been speaking to officials on the ground and saying it may have crashed in one of the islands off greece. It does seem to be on the flight path. In the last 10 minutes we have the Egyptian Stock Exchange open, down 1. 2 . If you look at the travel and leisure stocks, they are down around 1. 5 . An follow this on ty cairo flight that finished with 66 on board overnight. It still has to do a lot with a fed. If you look at the industries that are losing the most. Travel stocks are under pressure. They are down overall as an industry by as much as 1. 5 . Basic resources theyre down 3 . We will have plenty more on that come on egypt, and on this stillir flight vanishing. We know 66 were on board. You can, of course, not only follow the blog but tune into our radio and television. We will have plenty more on that possible flight crash or flight we dont know. On that egyptair flight. Stay with the pulse. S oil has towards 50, kuwaits acting oil minister says opecs strategy to defend marketshare is working. We will bring our exclusive interview next. As more details emerge about the missing flight, we will keep you uptodate and bringing the latest from france and the middle east. As Police Use Tear gas on protests, we will report on the growing political and economic crisis gripping venezuela. Francine welcome back. This is the pulse. Lets get straight to the Bloomberg Business flash. 1. 4 tesal tla to sell billion and stocks to help pay for an expansion that includes an upcoming electric car and boosting production to half a million vehicles in 2018. The sale will be 2 billion with the rest of the shares to be sold by elon musk because of Tax Obligations he is exercising. Haves in frances jumped this morning after it said it would merge with fmt technology in a 13 billion tie up. The all stock deal will see shareholders get to shares in the new company for every technip share. The company says they will deliver 400 million in annual pretax savings in 2019. Merck has reported profit that beat estimates. Earnings, and exceeding some cause, rose 27 to 1. 1 billion euros. Thiss are higher in morning straight. Thomas cook shares have slumped this morning after the travel operator said underlying earnings before interest and taxes will be at the lower end of estimates. The company says that summer bookings have fallen 5 after terror attacks in turkey and belgium. That is a Bloomberg Business flash. Francine thank you so much. As Oil Approaches 50 a barrel opecs strategy is working. That is the view of kuwaits oil minister. We go live in kuwait city. Tell us more. Will the sevenmonth high hold . He seems fairly definite, the 50 level is going to hold. But i certainly got a sense from deputy prime minister, oil minister and finance minister the opecat for meeting. We are perhaps underestimating that thus far. Is a theoryt share that was implemented by opec the last, coming down from 2014. To me, i believe the theory has been working well. See better prices in the market. Demand has been increasing. Part of production in canada, libya and nigeria and the shale oil. It seems that over 3 Million Barrels a day has been cut already. As the reports coming out. To maintain 92 Million Barrels a day, you have to have a strong investment. And seems that with over the last two years, 30 of this demand has been diverted or canceled. This tells you that demand will be picking up. And this is the forecast everybody has been talking about. So, probably will see more stabilized markets, the meeting of the june 2 is coming. Yet, to have a dialogue in that meeting is very important and then we can determine our steps forward. Manus would you agree that the market is rebalancing . Would you use the phrase rebalancing . If so, do you think that rebalance is by the end of this year or the First Quarter of next year . Clearly. Now, some of the of rary, but its tempo helps the price now. Now, i think the forecast everybody has been talking about heading towards the end of 2016 should be thae balancing of markets between demand and supply. It came early only because of these, in no, the fires in canada and the issues in nigeria and elsewhere. Is thathe sense i got he wants everyone on board he wants full commitment from everybody. The kuwaitis are not waiting for everybody. They are building up market share, going for 4 Million Barrels a day. They are going to spend 60 billion between now and 2020. This is a nation with a huge sovereign wealth fund, the son nation with a deficit, and this is a minister on a mission to reform and knock that deficit into the past within five years. A lofty ambition. Francine lofty ambition, and of course, this is something that a lot of kuwaits neighbors are trying to do as they are so relied on the price of oil. Now, before we talk a little bit more on oil, before we go on to what we heard from the fed yesterday, i want to bring you uptodate with what we heard from the egyptair plane. Egypt still confirming they deployed naval ships to search for this airbus. Earlier this book to gree they spoke to greek officials thatsaying it may have crashed off a greek island. We cannot confirm that. The share price reaction. The Egyptian Stock Exchange is down 1. 2 . Travel stocks under quite a lot of pressure on the back of fears that investors have what happened to this plane. We will bring you all the News Conferences. We are expecting one in an hour from now, and into our spirit one from the french government. One from the egyptian government. There was a little bit of pressure down 16. 5 . This is linked to what Federal Reserve saidk how you price risk. The fed yesterday says it wants to raise u. S. Interest rates, possibly in june. Minutes of the april meeting use the word june six times in a policy context. Now it is up to the u. S. Economy to confirm the view that slow growth in the First Quarter was temporary. On the bloomberg, the market is signaling a 32 chance the fed will move next month. Our guest for the first part of the show. Ubs Global Market strategist. Thank you so much for coming in. A very quick comment. Its very difficult as an investor or Market Participant to talk about this possible egyptair plane vanishing, but how is pricing risk . If we have a geopolitical headwind or Something Like this which we do not know what it is, but feels uneasy, how should markets react . Thesehink generally terrorist events tend to be very short in terms of effects. Even 9 11, we saw markets fall but it was just a blip. To 1930, that was a real event. 2008, a real event. But terrorist events tend to be fairly shortlived, particularly because they have to impact earnings. To impact earnings, it will take a catastrophic event. Francine overall, this basically links us back to the fed. Maybe we are not pricing risk the same way we did 1012 years ago. Do you think the fed can normalize in june like they have hinted many times . But it is the first time, despite official saying they are ready to act, that the markets are sending it is amazing. June look at the possibility, it was 30 . Finally we have got the market moving up to meet what the fed is telling it. The fed was quite perplexed as to why the market was not picking up on their close. Many of the officials have been saying that june is live. This is good. It shows that when they actually do hike, it will not be such a n impact. Francine are markets mispricing, or they do they believe just janet yellen . We seed across all markets. A level of Risk Appetite which is like 2009 in terms of the ability to buy equity we see it across all markets. People are pricing in a recession in europe. In the u. S. , also, quite bearish. Francine june hike seems very punch, because we have the brexit vote after. Thats right. There are lots of potential bombs in terms of volatility around june. We have the referendum on june 23. Just before that, june 16 we have got the fomc meeting. It mentioned it in them meeting this time that there would be the referendums. We also have the spanish elections. Many interestrate hikes are you expecting . Does it mean that dollar rally resumes . Are we finally going to see the diversions we have talked about so much play out . We think so. We are expecting two hikes. As long as they hike in growth, that is not such a big deal. If they hike with weak growth, that is a big deal. We have goldilocks inflation moving towards 2 . Thats fine. Francine let me bring you over to the bloomberg. You to talk for about containers. Sluggish local demand. You see sluggish global demand. Year decline in the past and a half. If you look at what this means, basically, we do not have that much trade. When you look at the dangers of politics and you look at the container ship and lay on top of that a fed thats normalizing, what kind of growth are looking at . We think there will be fairly good growth in europe and the u. S. , because both of them have a lot of trade generated by internal trade. The eurozone, for example, a lot of the growth if you break it down by region, it is due to trade internally. So, it doesnt dependent on external demand to generate growth. U. S. , also, fairly close economy if you look at the numbers. In terms of dependence on e. M. From the u. S. , its nice to have it, but it is not crucial for growth. We are still improving for 2016 and 2017. Francine there is no risk of bring us back into recession . Unless its a mess of policy mistake. Francine what would that look like . It is not at 15 basis point hike from the fed . It is hiking into we growth. That is a mistake we saw previously and we saw the effect on markets. I think that is what we should be looking at. Francine like a temper tantrum. Potentially. As long as markets are not surprised by the world the world the fomc sees. We have seen that synchronization over the last week. Maybe that will not be a problem. Francine no matter what happens, volatility is here to stay. How long is it here for, 12 months, 18 months . As i said, there are lots of knownunknowns. June will be a period where there are lots of events that could cause spikes and volatilities. It is something you need to learn to live with. Francine great pleasure to have you on the program or the latest on world growth. Of course, all of this volatility hell be joining us a little bit later. When you look at the main story that we have today, its one this egyptair plane. Egypt saying it is to point naval ships to search for an that went missing overnight off the coast of the north african country. We know there were 66 people on board. We will bring an uptodate on that. We have a News Conference coming up next. Show me top new artist. Ah, ha ha. Show me top male artist. My whole belieber fan group. Its not a competition, but if it was i won. Xfinity x1 lets you access the greatest library of Billboard Music awards moments, simply by using your voice. The Billboard Music awards, live sunday may 22nd, 8 5 pacific, only on abc. Welcome to the pulse live from bloombergs European Headquarters in london. Get straight to the bloomberg first word news with nejra cehic. Aira the missing egypt flight from paris to cairo reportedly crashed in egyptian airspace. According to an unnamed source, the airbus came down near the greek island of carmakers.