Battlefield to the internet and called for cracking down on the extremist activity online. The pentagon is planning the firstever intercept test to stop an intercontinental range missile similar to that being developed by north korea according to the associated press. The test is set for this month. The u. S. Successfully tested a groundbased Missile System on its intermediate range missile three years ago. Working with targets to replicate the speed and trajectory of missiles could highlight the increasing threat. President trumps soninlaw is focused in that investigation into russian meddling in the election. Investigators are looking into meetings that Jared Kushner had with the russian invested her and the banker from moscow. Senior white house adviser. One of kushners lawyers said he will share what he knows about the meetings. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Live from bloombergs world headquarters. Scarlett we are 30 minutes away from the close of trading. Stocks little changed as we await the long weekend. What did you miss . Over ands tensions over trade hangover the g summit jacek summit. In washington, Jared Kushner is drawing the attention of the russian inquiry. One of the issues confronting the president when he can returns next week. The central bank getting to warnings. At where the major averages stand. Abigail doolittle is standing by. Abigail happy friday. Heading into the close, not a lot happening for u. S. Stocks. Where we see grain for the s p 500 and nasdaq, that means new record highs, it will be interesting to see if they can close this way. It is fractional. Were looking at big weekly gains for the major averages all up well more than 1 . One stock taking a nice pop on. He day is nvidia softbank is considering boosting , 4. 9 percent so below this closure level, investors like the fact that they are considering becoming a more official investor which would require suggest they will have more of a handson approach. We will have that disclosure. As for what is helping the s p trade higher, were looking at the last of the big tech names including amazon, alphabet, microsoft, along with facebook. These are entry date charts but were looking at nice gains for all of the stocks. Something that could be behind it, most stocks are up to 2 on the week. It could be investors moving toward the continuation of the tech trade, the top sector on the year. Momentum from the buyers. Fortop percentage performer best buy. We see the stock soared higher , the bestthe week since november of last year. They did put up a blowout quarter. They beat earnings by about 49 putting up . 60 per share in adjusted earnings and the switch game was behind this. Best buy bucking some of the bearishness we have seen for some some are retail. Are hopping onto the bloomberg. We have stocks near record highs, perhaps on pace to close a record highs depending on fractional trading. This is a longerterm chart and in blue we have the bloomberg dollar index and in white we have Foreign Investment in u. S. Stocks and we see this year that as the dollar index has come 5 , thewn more than worst year since 2007. This is something that is encouraging Foreign Investment in u. S. Stocks. They look more attractive so that could help explain the in 2007 when we had the bloomberg dollar index down in a similar way we had record highs for stocks and we know what happened in 2008. Cross assetresting class observation to Pay Attention to. Sex are talking that through. Donald trump and his global counterparts covered a range of hot button topics. From simply from sicily is matt miller. They had 32 pages last year. There will be a fair amount of tabbing to get up to 32 this year. What is your view . Matt what we are hearing as it will be one third of that. One source told us it would be six pages. Because they cannot agree on a lot of things with donald trump and he does not want to go into detail but what they are saying is the spin is that they want to have a much more brief statement so they can focus in on the issues. The length of the communique does not make it better. The longest one we have seen in recent history is 38,000 words in 2004 under president george w. Bush and there were a lot of issues during that time in history. We saw short communiques during president carter and president reagans g7s and that was when america got back on the upswing at least economically. There were a lot of good things happening. The length of the communique does not necessarily mean it is a bad thing. It could help leaders focus more. There were some negative headlines coming into the meeting. President trump set the tone when he badmouth the germans on trade and he did not endorse the nato mutual defense pledge. How much of that has carried over to the the g7 . There is some awkward feelings this morning. Our white house support reporter did a great job of chronicling the president s trip. A great reception in saudi arabia, did pretty well in israel. Things got weird in brussels. There is an issue where he appeared to push another minister from montenegro and people were debating the stress of his handshake with emmanuel macron. This morning it seemed like there would be a problem because the italians wanted to focus on migration, they wanted to focus on Climate Change, on trade. Three issues everyone thought donald trump would not agree to discuss. Terror was at the forefront of thediscussion, that brought leaders together. There was some good body language in the afternoon and now they have got a separate communique on terror. They are said to have an agreement on migration, a statement in the communication they inserted a line about the quality, gender equality which is something that maybe not everyone expected the Trump Administration to go along with the g7 on so some positive outcomes. They will meet again tomorrow and there will be a lot more meetings. The communication play will come out later tonight or tomorrow morning. Thank you for staying up to talk to us. Suspecting there is going to be six pages in this communique and the reason being we want to how it in on the important issues. Common ground. E optics matters so much. The reason i asked about any carryover from brussels is it seems like awkwardness was the word of the day. Aen you look at, this is family photo of the g7 leaners, people are trying to read so much into the body language and how everyone appears. You cannot get information from that communique. Handshake it was amusing. I thought they were playing with it today. You saw them laughing and you saw them do another handshake and macron went to Angela Merkel first but they were laughing. Sense of whether or not there were games being played they were having fun with it today. Are aware of the social media profile. Perhaps they were having fun at our expense with the body language. The g7 meeting wraps up as matt miller was telling us. President trump has plenty on his plate when he returns to washington. For more on the latest lets bring it to our clinical correspondent joining us from the white house. Pretty quiet on the white house lawn as most of the senior officials are in italy. Everyone returns over the weekend and they get straight to work after the national holiday. First on the agenda although they do not have much control over it is james comey testifying before the senate. Do we know yet when that is going to happen and whether he is definitely going to testify or will the white house step in and claim executive privilege . That is right. The president has been on travel for the last eight days, he has left behind a lot of the fbi investigation but it will meet him when he comes back. The white house has not said yet what they are going to do about james comey, whether they will allow him to testify or block him. It does seem that this investigation is going to move forward and it will be one of things on the president s plate. He has not addressed reporters as is customary on these foreign trips. When he comes back there will be dozens of reporters waiting to ask him about these investigations, to ask him about his private counsel he has hired since he left as well as the revelation that Jared Kushner, his soninlaw is a person of interest in this fbi investigation. This has escalated since the president left. When he gets back he is going to have a lot of questions to answer about it. What does that look like when he gets back and he is facing the comey issue and the concerns about Jared Kushner and the report he is front and center in this special investigation that is going on, what does it mean in practice to the administration and for jared, does he react personally with his own business interests . We did see the president hire his own private lawyer showing this has escalated significantly. Now that we know that Jared Kushner has been swept up in this investigation. You are likely to see Jared Kushner and other white house officials getting their own lawyers and trying to protect themselves from whatever this investigation may find. This could be something that could hamper the president s agenda and congress as the investigations are going on not only in the fbi but capitol hill. This is something that is going to dominate much of the coming months in washington. It will make it more difficult for the president to move forward with his agenda. Everything from health care to tax reform. All those could be held hostage by this investigation. It could be difficult for the president to get his agenda forward. A lot on his to do list. Get ready for a busy week ahead. Venezuela grapples with an enormous political and economic crisis. Debtuying venezuelan moral . Ism new york, this bloomberg. Thee asked our guest about call for jpmorgan to remove venezuela from ants emergingmarket fund indexes. You do not want to have investors have to have moral qualms about what is happening to their savings, where the savings going, are they going to corrupt regimes where they are starving their people in order to pay you, who do not want to be rejoicing at the bad things happening to people in a country so that you get paid. You do not need that moral aggravation. It is easier to get venezuela out of the picture, get it out of the indices, have fund to get to not need venezuela. Bonds are yielding upwards of 25 , they represent a huge part of the yield and these managers cannot [indiscernible] they are asking themselves will the government be sufficiently capable of compressing imports even more, starving its people and repressing them so that there is enough cash flow to pay my bonds . You do not need that. You need your savings to support the growth of emerging markets and not to screw people around. Investors should not like to feel their money is tainted. We get in touch with jpmorgan. I do want to bring up a quote from your article that appeared today, it is called hunger bonds, venezuela is experiencing times the calamitous ever. Investing in the index means the companys starting its people to avoid restructuring europe bonds are you you have personal experience with your brother who has been in jail. The only thing i would say is since when did bondholders have to be moral . The countrying to so people will not starve. This is the difference between doing good and doing well. Andwish you could do well at the same time do good. You make your savings available for people to use them effectively. Timeis why most of the investing is not a morally questionable thing. Thisyou get things like where you are trying to bet on the ability of this government to repress enough people so as to keep on servicing your debt, your put in this uncomfortable situation and you do not need it. You have so many investment options, why do you need that aggravation . Venezuela is in trouble. People have lost 19 pounds apiece in the last year. The president is trying to appease a public that is not happy. Where did you come up with the name hunger bonds and is it the right side to pick . Venezuela, when the government ands and venezuela starts and tries to recover it will need to restructure. Bondholders know they are going to get pennies on the dollar, when has a situation i could this result . Do you want the managers of your investment to extract the final pound that will slow down the recovery . If you are in line for a piece of bread youre not worried about on shoulders. It down theettle line . If the country makes the payment upwards of 4 billion it is 4 billion we will not be able to use for imports. People will pay the bonds or start. Or eat. You cannot do both. The director for the center of development. Validg questions that are about more than just venezuela. Scarlet it is time for the Bloomberg Business flash. Intbank boosting investment nvidia. They closed a funding round with 93 billion for tech investment. Withdisclosed a 4. 9 stake the market value of 4. 1 billion dollars. People familiar say the firm will raise that holding overtime. Gamestop surged off its success for Nintendo Switch did not last long. Shares fell after the new console. Gamestop did not change its forecast. They struggled through a shift in its core business as more gamers buy from game publishers such as stein in a move to gain control, the deal follows an agreement to buy Mattress Firm holding which is americas biggest adding retailer bedding retailer. In 30,000 retail outlets countries, sure management will continue to run the business. Sherwinwilliams has secured approval from antitrust regulators for its 9 billion dollars takeover. The deal creates the worlds biggest pay maker. They cleared the merger on condition that share one cell sell the business. The deal needs approval in canada. R Bloomberg Business flash. I will explain why yesterdays selloff seems to be a knee jerk reaction. From new york, this is bloomberg. Scarlett with the fed minutes behind us there is concern we may have reached peak inflation and that could be one conclusion when you look at cpi which is the blue line. It has rolled over and people auld say that this is not conclusive but for this late stage, you wonder how much more [inaudible] is inflation. That is the white line signaling smaller price gains. Bullard made some dovish noises suggesting the rate hike pass may be overly aggressive. We know with wages stalling and Commodity Prices heading sideways this is a conundrum. Absolutely. The question is why the move may be a blip compared to the bigger picture. Behind me is the blue line which is oil prices. That was the biggest intraday climb we have seen since february. What im showing you is the dec 18 spread. If you can shift there, this is the size of the pullback we saw in may. It held up better in the face of a selloff than it did in may. That suggests the [inaudible] it looks as though this is a kneejerk reaction in the spot price. Scarlett the market close is next. The market the s p is unchanged but any gain would mean a record high. On the upside, i noticed utilities up 2. 5 . Grossis also some companies as what doing fairly well. It is a little bit of a confusing glimpse into what happened. As for some individual movers. This they are said to be considering, lets start with costco. It get high right at the open. The company also saying that it will increase by about 10 . One of the advantages and held over traditional retailers. Consideringd to be boosting its stake in that chipmaker. One of the mall reads that i mentioned yesterday, more than that, it is down 4. 4 . They like the report much slower in the second quarter. In microsoft, we added it as well. We like our record high. As you can see, the dow index is higher by 2 10 of 1 , that is a oneweek high. Sterling is very much under pressure here, suggesting that theresa mays lead in the polls is now narrowed to five points. That was 20 points when campaigning. They got to just under two weeks. Bella stronger than expected gdp. We were talking about the data and what that means later on in the show and what we can see there is that the dollaryen is managed to pull back some of the earlier losses that we have seen. Andgains versus the euro the dollar. Lets take a look at bonds. There is not much to say here. The 10 year yield is barely moving. In terms of the net effect on the 2 10 spread, lets pull that up, it has been flattening, it lasted a little bit more. Basisnot below the 95 point. About whatn talking has been going on at opec. Just giving you a look at where oil is traded over the last month just to give you a sense, already we have oil trading by higher by one. The reaction that we saw yesterday was an overreaction. We were are we talking about that. Still trading below 60 a barrel. That is the one to watch. Gold has 4 gains over the last several sessions. It is at 1. 5 . That is up 7. 5 since below we saw on may the ninth. Those are todays market minutes. Lets lets look at the marketing equity week. Peter great to see you. Scarlett one thing we did not mention was that the nasdaq closed unchanged. It is a fascinating week in equity markets. Fed signaling that we were apparent to taper. Although at a tepid pace. That, brandnew highs for the s p 500. I think the key thing to focus on when we look at that is yesterdays market. When we look back to the First Quarter earnings season, it was a historic earnings season. Now from the earnings season, were seeing all of these earnings come out and saying very good upside surprises. I think the stories are really coming back to the strength of earnings. What about the inflation trade . You keep going back to this idea of what is left in the trump trade. Where are we now as that weeks away . Asked the inflation trade has been very interesting. We had a very strong narrative driven market where we had public administration, that was protax reform agenda. Were starting to see a lot of that. Were starting to see it roll over and a lot more uncertainty in terms of direction of fiscal policies. I did a lot of the upside potential we saw in terms of value versus growth is being priced out. I will see what to turn that around. What are you showing on the white line . The blue line is actually the ratio of the shore value index. A clean representation in terms of value versus growth. They wrote about this. The rallyo separate into different phases. He says he has to begin with the trump trade then became reflation. Now he says we are in a little liquidity trade. Do you see that . The amount of cash that is coming and, is an overwhelming . There is reflation flavor. , it isty part of it centralbank action all over again. The big thing is we had this stockcorrelation between prices and the amount of liquidity on the Balance Sheet. Almost like a step function. Absolutely, liquidity is a very dominant force in the market. It is probably why see a lot of volatility going on. Said, we saw it on the Balance Sheets, it is not only be federal Balance Sheets. When we were speaking yesterday, we were talking about the product backed prospect of the fed not coming forward. We were talking about this yesterday. What would happen to stocks in that situation given what you said about checking higher . I get that there are other actors involved, it is the psychology of the market. You were very on point with the eventual tapering. They dont want to speak anybody. We had that president of the tantrum already. I think they have already signaled that as a 2 billion rate for them up to start, that is next to nothing. What theydepends on signaled they would want. Certainly not a whole of happened in the index action. If you look at the breakdown of the individual movers, i want to look at you for the year to date. Here is a good to the bottom, the worst performance, macys, under h p, those are great house. Under armour, it is notable. They are impacting the worst performers. I think it goes back to what we saw yesterday and why at think they have made new highs. You can point to and say this is an area of weakness. You can see a lot of mixed results coming out of that space. You can see the result reflected there. Andeally lifted the markets is bestet and i said it buy and amazon. Well talk about that next week. Bloomberg intelligence equity, thank you so much for joining us. Coming up, for more control over the china vanke accepting is pegged. We talk about the head of the motion markets. That will be exactly what the space, from new york, this is bloomberg. I am remy innocencio. President trump is finding himself a loan when it comes to Climate Change. Theya merkel said that want the u. S. To live up to the paris climate agreement. Mr. Trump called Climate Change a hoax during the campaign. Is taking over responsibility for leaking information for the bomb attack in manchester. Rex tillerson arranged a quick visit to london to apologize. We take over responsibility for that. We are obviously regretting that that happened. In terms of how to fix the relationship between the u. S. And great britain, this special relationship that exists between our two countries will certainly withstand this unfortunate event. President trump is threatening to prosecute those responsible. Lucas poppa they must is recuperated from injuries suffered when a bomb exploded inside his car in central athens. They say he will remain in intensive care. His injuries are not lifethreatening. There has been no claim of responsibility for the bombing. He is a former Deputy GovernorHillary Clinton delivered a commencement address at her, moderate. Telling graduates that she is doing ok after losing the election. She turned her attention to President Trumps opposed under. A trillionrouded in dollar mathematical live. It what it is, it is a con. They dont even try to hide it. Why does all of this matter . It matters because it is our our leaders lie about the problems we face, we will never solve them. She did not mention donald trump by name. News, 20 four hours a day, powered by over 2600 journalists and analysts. This is bloomberg. Scarlet what did you miss . A double slap on the wrist for china this week. As henry comes fernandez told bloomberg that china is still struggling on emergent emergingmarket indexes. There is still a lot of issues. We have to resolve them in a short. Of time. I want to start with the currency response that china gave. It added a countercyclical factor to its daily fixing, george leah Bloomberg News is telling us that the black box does not tell us anything. What is your interpretation . I think that everyone knows, is a black box that people can they can feel heavyhanded in terms of her where it goes. I think it introduces more market mechanisms. Most currencies in asia are managed. It is not like china stands up as something unusual. Beenimportantly, china has in President Trumps crosshairs. It is where that they would throw something out there that trump saw. It is a little surprising. Not a big shot in terms of the situation. Can we say that they consider their own stability in their run in 20 political meetings . Is that more important to them than the dealings they have with donald trump . Lets go that far. I think theyre juggling a lot of balls here. Therek you are right that is some stability and steady as you go models. People have been calling for a disaster in china for decades. You can make the case that the Financial Sector is under stress. I think when push comes to shove, they will hold things together. What struck me was chinas response to these downgrades. The ministry of finance said that they overestimated the difficulty faced by chinas economy and underestimated their ability to deepen reforms. The timing was awkward. Although did was bring it into line with where it remains. It was an unnecessary headline for them. China is a puzzle. Anyone that tells you that they know what is going on in china is lying. Data is not always dependable. We know that we they are trying to rebalance from export oriented to domestic. They dont have a choice. U. S. Are the days of the scrolling through percent or 4 . They have to encourage more domestic. Did the same thing about their willingness to see Financial Market liberalization . One of the points that they made was tos the stable outlook that has to do with the fact that they have capital control and they are stabilizing the situation. Said, theyre juggling a lot of balls. But there are benefits to having capital control. Change was inbig 1997, the asian crisis. Ims was then, the pushing freefloating currencies. These countries are not prepared for that. We will step back from this. Most currencies are restricted. Not for a tradable. Has begrudgingly accepted that. China is not ready for this year. This market economy for china, they are not ready for this yet. That they are ready to tempt down on Financial Leverage in the system . The thing with china, it is interesting, the economy slows. All of aden sudden, they reduce. Theyre trying to rebalance and deleverage. That is not something you can do overnight. Do think there is a greater understanding and these issues . It is so delicate that there will be times that they make these steps. They fall back on leverage and make it better. Im sure they have told the two officials in the u. S. Thate good news is President Trump will name china between an uneasy dance not just the u. S. , and mexico, but the u. S. And china. Hopeful that the u. S. Wont be antagonistic. China is doing what it can in this situation. Was a awkward for investors is the political turmoil in brazil. It shows dcf was. Despite all the drama surrounding the allegations of corruption, the recordings and whatnot, look at the flows into the flow of if yes. Only 76 million flow to have. Why this response . It is not something you would expect. This could take months to play out. I think it has been i think theed, fiscal reports, the pension funds, they are pretty much dead in the water. Money is still going. I think the Global Outlook is paving on. People are pushing out for tightened expectations. I think it is still risked death risky in brazil. The ri has held that for 80 plus years. There are a lot of risks being overlooked. I favorite asia over latin america. Very interesting. People are overlooking political risk. I dont think it is all clear right now, i think there was a lot of global uncertainty. It, people are very bullish. I think you have to pick your spots. That search for yield continues. Thank you, have a great long weekend. President trump is wrapping up his first overseas trip. This is bloomberg. Americans are heading into memorial day weekend. It is the unofficial kickoff to summer. Consumers will get protein at better prices. Cheaper porkchops, notably. I am partial to beef. You will be celebrating your first memorial day in the u. S. Sorry, your face. I wish you can have seen your face there. Essay is not all that red meats. You to consider there are professionals. A lot of grilled mushroom. We will hear all about julie a possible long weekend. In the meantime, coming up next, u. S. Economic data was released. We have revision. A little more robust than previously reported. Good news. , some expert analysis coming. We apologize for that. From new york, this is bloomberg. I am remy innocencio. Manchester, british Prime Minister says as she disgusted with President Trump in italy. Yes, i raised the issue of weeks of information that was shared with the fbi by President Trump. He has made clear that that was unacceptable. The metropolitan police have received assurances from the fbi restarting the process of sharing information with them. Orderedsident trump has the Justice Department to find out who is responsible for those links. Meanwhile, a british Train Company is saying that a station in manchester will remain closed for the foreseeable future. There was al says structural damage and these to be properly assessed. It directly links to manchester arena. They could make a laptop and tablet than a thing of the past. East four companies are there is one hitch. Congress has not yet allocated money to buy that women. Aside from International Affairs, President Trumps time in office has been a complete disaster. Speaking at an Energy Conference in houston, they President Trump for his approach abroad. He says the president should not be allowed to tweet overnight. , 24 hours a day, 2600ed by more than journalists and analysts. I am remy innocencio, this is bloomberg. Lets get a recap of todays market action. The dow jones basically shut at 2180. The nasdaq is up by less than 1 10 of 1 . The u. S. Gdp growth got revised up to 1. 2 today, stronger than pbc thought. Ands bring in matt fogler elaine. Business investments held up, corporate profits are that of a concern. It was a little bit of an upward division in q1 gdp numbers. It was not such a big number anyway. We still see some glowing spending in the First Quarter. As long as we see rebounds in the current quarter, it works fine. We see this q1 slowing. That seems to be what is happening this year as well. We expect companies to continue listing but they need profits. The blue line Shows Capital expenditures. Is thetion on earnings anecdotal and results that we have been getting from companies. What is what if the profit picture shows us Something Different . There was a onetime legal philly legal fee settlement that was important to financial companies. Of ay this is one one off thing. We expect corporate profits to increase for the remainder of the year. There is a Regional Service that indicates that companies will continue to invest this year. Wax two critical things that we keep going back to, Inflation Expectations. The juggle that the fes got going on at the moment. The fact that job gains continue to happen. You have two charts that you want to focus on here. We also have some data from the university of Michigan Consumer survey today. They want to start reducing their Balance Sheet. What effect will that have on Interest Rates . Rates mayat interest be low right now. The term payment could be low. The orange line is a measure from the university of michigan looks not at Inflation Expectations but the uncertainty surrounding those expectations. Those are very low. The lowest in decades. That aligns really nicely with this measure of the term premium that the fed thinks the Balance Sheet is pushing us down. It has to be more with the fact that there is not much sooner surrounding inflation right now. Maybe we wont see Interest Rates go up. I think the fed will try to for Everything Possible that to happen. They dont want to surprise us. They dont want to surprise the markets. It would be boring. They said it this week. It would be very well communicated. He said that they could end up something on the Balance Sheet. Just because they want to be very predictable. In june. Raise rates they will then announced that they will unwind. Lets bring up this of the chart that you brought to us. It is the unemployment rate. This speaks to the conundrum that the fed is an. We keep thinking we hit all unemployment. Full unemployment. It keeps going lower. This keeps reinforcing that point again. In the early innings of the Business Cycle, we are in a recession or just coming out of a recession, there is a lot of uncertainty about the economy. If you recall, early in this expansion, we were worried about a doubledip expansion. The fed was probably able to bring down longterm Interest Rates. Uncertainty was so elevated. They came in with the Balance Sheet and they did with that what they did. We may be in part with the Business Cycle where it doesnt work the same way going out. They may not go up again. If that is the case, maybe the that theyly decides actually want to speed up the pace of Interest Rate increases a little faster. They realize the Balance Sheet isnt having any sort of offense. Maybet is the case, Interest Rates are a little too low right now. E bringing in a it depends on taste. If they do something along alannae of what suggested, there is the reason for them to demand that risk risk premium. If they were to do something more quickly and more unpredictable, maybe you would see the term premium go up. You do need to demand more risk premium there. It doesnt seem like they really want to surprise people. Maybe longterm Interest Rates. Thank you so much guys. We move from the u. S. To europe. We talk about how those are faring. From new york, this is bloomberg. Im scarlet fu. Lets take a look into the bloomberg. You can find our chart using the function at the bottom of the screen. What this chart shows is jpmorgan backing local european companies. They have outperformed the basket of exporters, that is the blue line. That is a percentage point spread. They are up by better than 10 . The exporters are gaining about 6 . They both joined fairly well. Investors have been Sinking Valley value and return in these. Up his becauseck European Growth on the whole is improving and the euro has been strengthening. That week dollar coming into play here. You can to that we have indexes in italy which tend to have more than in germany. Retailers are outperforming era companies. Lets look at the u. K. Market. It is a similar story. Foot, im not the showing you the chart. That is a record high. Those. Me just get rid of the im showing you hear is 100 index. It keeps popping up. The ftse line which is 100 index, then we have the pound. Youre looking at the more exploratory and stocks. In the last 24 hours, you see the concern about the polls. This narrowing lead in the head of the election. ,he interesting part is that look at that, you have sterling rallying in may. That is not having an impact on the export driven one. That correlation, it is that green bit you can see at the bottom. Maybe to the public they ignored it for long enough. , speaking of the election, it is coming up on june 8. They are showing the conservative lead, flipping to 1. 5 percentage points. Wither today, they spoke diane. She is the labor p. M. What we were saying about education, were saying that rather than make these other factors, we are going to use that to invest in things like social care. How do you worry about currency . Do you think about german cities . We do worry about currency. , we have to worry about currency. We will be working with the bank of england to read a Short International investors. Times, when things are changing, International Investors do look back to the bank of england for reassurance. He had plans in place to read a short investors. Him when we with take power. The bank of england is independent. Is very great master plan . It to fit onto itself when it wasnt clear what was going to happen with the brexit vote. Whoever wins under the age, the bank of england will play that role again. Ever since he started campaigning as president , he wants trade agreements. They were much more in the favor of the United States. It was a massive negotiation. How you get trade agreements which benefit everybody. Do think that if labor does when what happened afterwards . We have a number of commitments. These o guarantee the safety. We are protecting jobs, protecting standards, protecting the economy. Will not priorities prioritize controlling immigration. At that there their roles and management, we will prioritize the economy. Were not talking about opening up immigration. Were talking about securing the situation of eu nationals who are already here. They are vital to our economy. Were talking about protecting the you international is. The friends that want to come in for a bank or inner nurse that was to come your from spain is wet we are saying accept the brexit vote. Were working for a type of frexit that would provide maximum protection for our economy. Abbott. Was diane she was speaking to Bloomberg Television earlier today. Beenls outlook has reduced. They are warning that they have moved the outlook from negative to stable. It waste than the same an equivalent moved to snp, two steps below investment grade. Headline is that we see brazils gdp growing only 12. 5 . That compiles all the economic forecasts. It is a little more pessimistic. Mention that gdp from brazil is due out next weekend. Lacks along with that data point, other news that we will be watching. This is bloomberg. Transatlantic transitions tensions. The chief washington correspondent filed this report from italy. President donald trump is wrapping up his First International trip. The president , speaking at the g7 summit caught called on Global Leaders to combat terrorism. In a series of private meetings, they met with shinzo abe. The two Global Leaders discussed ways to assess the growing threat of north Korea Nuclear weapons program. The president also met with the u. K. Prime minister theresa may. It comes following the bbc report that u. K. Officials have stopped sharing intelligence information with United States about the recent manchester terrorist attacks. That is because the u. S. Intelligence community has leak information to American Media outlets. The president has called on Jeff Sessions to investigate the matter. Much attention was made to the body language of the Global Leaders as they met. Particularly with emmanuel macron. Whether or not he gripped the hand of President Trump and what that could mean. It is all because President Trump was great with much fanfare on his First International trip. Skepticismope, big continue to echo throughout the g7 summit. From here, President Trump will continue with day to of the g7 summit meeting. He will return home to washington where a series of scandals continue to engulf the administration. Top officials here at the g7 spoke with reporters about the issue and said, according to gary cohn, they are not planning to read we can russian sessions as some have indicated. If anything, they would strengthen those sanctions. Noted that the administration is not looking to finance any position on the terrorist accord. That is despite the hope of mr. Trumps g7 counterparts. Reporting from sicily, kevin cirilli, Bloomberg News. Now time for the Bloomberg Business flash. All manufacturers being criticized by donald trump. Germans were called very bad by President Trump. Criticism comes after rebukes of toyota and u. S. Automated shipping cost to mexico. They were pressing for talks on have to restructure a 4. 7 billion debt. That is according to people with knowledge saying that the meetings come after a potential takeover bid by candidates that it can put a potential response. Apple is said to be going heavily into artificial intelligence. Developing a processor specifically for ai operation. Appleld affect how products handle tasks that would humany require intelligence. That is your business flash update. What you need to hear for next week. This is bloomberg. Coming out, dont miss this, u. S. Auto sales come out on thursday. We will be looking at the u. S. Jobs data. Dont miss a huge weakens boards. The french open starts on sunday. The stanley cup finals start on thursday. That is all for what you missed. Bloomberg technology is up next. Have a great evening and a great long weekend. This is bloomberg. Alisa i am Alisa Parenti from washington. You are watching bloomberg technology. Lets start with a check of your first word news. President trump is the holdout among the g7 leaders on the Climate Change issue. German chancellor Angela Merkel said the leaders made it clear the u. S. Must live up to previous commitments to the paris accord. Trump says he will not be rushed into a decision. The u. S. Has taken full responsibility for leaking information from mondays bomb attack in manchester. Secretary of state Rex Tillerson arranged a visit to london to apologize saying the special relationship between both countries will withstand this breach of trust. Former House Speaker john boehner says aside from International Affairs and foreign policy, President Trumps time in office has been a complete disaster. He spoke at an Energy Conference in houston. He also says the president should not be allowed to tweet overnight. New airport screening equipment is being tested that could make the laptop ban a thing of the past. At least four companies are working on equipment that would give a threedimensional look