With two arms tied behind your back, its not fair. We are willing. To put our content everywhere as long as we are paid for it yvonne we are all over the global conference with expert insights on the state of investment. Companies are not avoiding theists paying u. S. Taxes at all. Is off the table yvonne its all straightahead on bloomberg best. Yvonne welcome. This is bloomberg best, your weekly review of Business Analysis from around the world. Lets start with the daytoday look at the top headlines. The week began with a bang as a huge merger imploded. Payalliburton will have to 3. 5 billion after they call that their proposed merger. Take aim in the face of fierce resistance of u. S. Regulators and the justice department. Hughes they are going back to the drawing board and how they are going to go ahead. They are doing a 1. 5 billion stock buyback. Aboutk the question now them cutting costs, they say they can illuminate 500 million throughout the end of this year. I think the plan that management needs to prove to investors is how they will execute on that. And then for halliburton, halliburton dug themselves into a little bit of a whole with a 3. 5 billion breakup. Even though they are taking share in north america, the international portion of the expansion and the market share piece that baker hughes was going to help them out with is now compromised a little bit. The ultimate winner is schlumberger. Now they dont have to deal with a new baker hughes and halliburton merger. A slew of European Bank earnings out this morning. Pnb is the only one whose share price is rising today. We had a difficult First Quarter. The negative Interest Rate environment and nevertheless we have a Strong Capital ratio. A low risk profile. I think the Market Reaction will hes out. Ease out. There may be a lot of factors that affect market sentiment. Its not the kind of volatility that is translating to client activity. Its a paralyzing volatility. Were concerned about global growth. There were concerns about the regulatory treatment of some subordinated debt. And the labor uncertainties about monetary policies. Francine it seems at all the fears we had for some of the treaty revenue was looking very ugly. You dont have visibility and were concerned about volatility . Absolutely. You can just say it was an objectively bad quarter. Revenues were down. There were no more that is on litigation which is good news. Basically the focus is on cost. Can execute can they execute . And what do they have to protect themselves of it gets worse . Lets turn did last nights surprise decision. What are your Key Takeaways from last night . There is only one key take away. It is obviously clear. Even before cruz decided to drop out, i thought that was clear that trump won by the scale he was on. Cruz just made it official by dropping out last night. We now have a signed, sealed and delivered republican nominee. How does donald trump go about healing the rift in the Republican Party among donors and the elites of the party . John with great difficulty. The people around him recognize that there is a lot of mending to do in the course of the next few days. I think he will roll out some big endorsements, among a couple of people that ran against them in the president ial race. A key element will also be the selection of a Vice President ial nominee, which will be about as signaling to republican elites he should be taken seriously. Then there is the money thing. If you decide to be a big player on the republican fundraising side, trying to become what he is not done it also far which is get into the game of raising big dollars to distribute to other members of the party, that will go a long way towards trying to heal the rifts within the republican ranks. Minister isprime expected to step down this month after losing a power struggle with the president. They have seen turkeys stock market plummet over the past few days. As we speak he is meeting with his Party Executive board. How worrying should this be for investors . If you look at the reactions of the lire last night, it was one of the biggest drops in the currency since 2008. That just goes to show you how worried investors are. What is happening here is that some of the contracts he is made of investors has an rattled a little bit. Over the last two years he promised stable economic management. They have been largely happy with the policymakers. In return for that they turned a blind eye to some of his geopolitical in that part of the world. We are seeing part of that contract coming undone. Minister said at a Party Conference he was leaving his job and not seeking reelection. What has happened in turkey this year so far is that you had after a difficult year with two elections and a lot of lyrical risk and uncertainty, things seemed to have settled down and markets and investors were coming back in. Now you have reversed that trend over the last couple of days. Bond yields have gone right up. The lire is weakening and its unclear what happens now. Estimate the median right here, right now. Down from 215 previously. 5 unemployment previously. A meeting as it at 4. 9 . Erik 160,000 jobs created in the month of april. Is the weakest job creation since september 2015 and a full 40,000 jobs below the median estimate. Our survey, which anticipated jobs growth of 200,000 for april. There were negative revisions of 19,000 for the previous two months. The net increase is really 141,000 jobs. The unappointed rate held steady at 5 . What is your reaction to the jobs numbers . The suggestion is that the fed is not have to decide now. The market will decide. June is out. Im not sure june is out. We further from olin and stan and stan bullard fisher. They all seem to get it. They should be raising Interest Rates in order to preserve a semblance of profitability for pension funds, Insurance Companies and the like. The more you read the details, the more solid the report becomes. I think this report is a harbinger of what is to come in the job market. 160,000 job growth is solid job growth. Wage growth and 2. 5 is good. If you look at aggregate hours, it was a. 8 which is the strongest since march 2014. Thef youre wondering what fed might make of this latest signal, stick around with her interview with San Francisco fed president John Williams later in the program. We will have an extended roundup of the weeks earnings report. You are watching bloomberg best. Bloomberg best. This is this is bloomberg best. Major news from Companies Like google. Lets begin with the Central Bank Decision that took many people by surprise. Aussie dollar taking a tumble. Fresh record lows. Atunaffected move aimed countering inflation. Everyone started thinking. Will he pull the trigger . He did. Is there more to come . I think there is. Theyng at the statement, said inflation will probably remain to love going forward. We had quite a few banks and other institutions calling for another rate cut as early as july or august. Its very much on the cards. I think pricing is about 123 1 in 3 as far as yesterday in money markets. We should not be surprised if we see it again in the summer. Yesterday government kicked off a july 2 election with a double dose of stimulus. Scott morrison delivered a budget he says is focused on jobs and growth just hours after the rba cut rates for the first time in a year. The government came up with a plan to reduce the deficit to 6 billion by 2020. It does rely on some rather optimistic assumptions about the price of some commodities including iron ore and growth forecasts. Not a lot of money to give away. It was really more of a document designed not to enough offend in an election year. Puerto rico will default on a bond payment. The consequences, weaving grappling with them. What has happened is the Government Development bank will default on this may one payment. Made thenment announcement yesterday in a televised address. Now what happens is there is an agreement with some bondholders but unfortunately the island faces an even bigger payment by the 2 billion. What you think will happen . It will be a lot of negotiating going on between the bondholders and puerto rico. Puerto rico really wants to get this broad, Global Restructuring done with a lower their 70 billion debt stack. Whether they can do that by july 1 is a big if, and what is going to come out of congress . Today pass something that will address this . Chrysler his recent agreement with google to create a fleet of autonomous minivans. What you make of the two parties . Why would google pick Fiat Chrysler and vice versa . Google has talked to other carmakers, specifically about general motors. They wanted to share the testing data the given developing cars, share intellectual property, and develop the actual brains that make a self driving car work. Google really was to keep control of all that because that is what they bring to the party here. Fiat chrysler is not developing their own Self Driving Technology or software right now. They had much less leverage when bargaining. They can basically just go to google to get the technology and google can keep everything for themselves and have yet just make the minivans and basically be the manufacturer. Emily it seems like other european carmakers are not open to this idea of working with google . Google was not interested in building a vehicle. They want to shove their sensors onto a vehicle. And the carmakers in europe, the high and carmakers know thats for the instrumental value lies incremental value lies. They dont sacrifice that. This morning we had the announcement that you are in talks with potential buyers to buy the bulk of the golf unit. We said six months ago we take the business and the strategic review, preprebuild it we rebuild it. We are the number one driver on the golf course. We definitely are doing what is right for the brand. This is longterm. That is what we have concluded in our analysis. We will start negotiating with interested parties. For the hardware business francine business. Francine how is important before he joined the company in october . We are looking for the best solution. We will start now getting into talks with interested parties and then see what the best fit for our golf business and company is. To resolve the into an funds board investigation into alleged moneylaundering and embezzlement. This is another step to winding up a fund. How significant is this . , andth the Advisory Board now he faces his own separate scandal involving 681 million in personal accounts. The attorney general cleared him of any wrongdoing, this missed the saudi royal family. Db now has a skeletal picture. Is responsibility is greatly reduced. The fund itself will be dissolved soon. One thing is clear. With or without an Advisory Board, Global Investigations will persist. Switzerland, luxembourg and the u. S. So far. Yvonne you are watching bloomberg best. Earnings season is hitting the home stretch. Reports from more than two thirds of the s p 500 companies. Here is a review of some of this weeks big beat and major miss haps. Aig shares are down in the premarket. They reported their Third Straight unprofitable quarter. Ining their biggest lost hedge funds and decline in value of other investments. They really did not do well at all. They have about a 10 billion hedge fund portfolio. Percentage ofl more than 300 billion investment portfolio. They contributed to half 1 billion in losses. It brought down almost every business line. Property, retirement, life. Unlike a lot of other insurers, they are sticking to their bets unlike a lot of the market. Aig. Said they will cut holdings by half the hedge fund specifically. Its been contributed to so much volatility. Will be joining the board at the next board meeting. What hannah preparations are being made . What discussions have you had with them . Have they had any influence in the last couple of months as they prepare to join the board . Like any new board member, its a period of intense engagement to get them access to information that will make them as effective as possible. We are optimistic they have a large stake in aig. Their interests are highly aligned with management and with other shareholders in building a longterm sustainable value of the company. The second largest french lender climbing after the bank surprised analysts with an undetected boost in firstquarter profits. Ib not so great. What you make of the numbers . You mentioned ib. They talked about more cuts but it is surprising they posted an increase in fixed income training which we have not seen at any other banks. They are smaller than some of the others but this was not the story you were supposed to see. Although bigger banks talked about regional players dropping out of that business and allowing them to gain more shares. Here they are kind of making a comeback in that business and always catching up to Morgan Stanley in terms of revenue. We saw that with barclays too. It was not down in a terrific way. Is there a europeanu. S. Story there . We are seeing a mix in the europeans. You have better than expected at socgen and barclays. Deutsche down significantly. We have credit squeeze next week. They have warned they are down quite a bit with some oneoff losses they are taking. It is hard to get a Consistent Team from the europeans. Theme from the europeans. Shelby estimates this morning. Its back to the lowest level since 2008. Is this like bp, down to trading . Is the refining sector and the chemical unit. Its been the same trend with the bp and exxon. That is refining and what is saving the day for the companys. Those are pretty variable areas of business. You get the right or horribly wrong. That is probably why also we have seen excel announcing a further cosco today. Shell was a guide in the market for three 3 billion 33 billion suspension in 2006. Now is near 30 billion. The First Quarter is pointed at the number could be even lower. Even more aggressive . They said 53. They are announcing 30. When we see the companies are spending in the First Quarter it seems youre going to 25 billion. Thats an indication that the companys prefer themselves to leave on low oil prices. Shell, gas is what now really matters. We started the media part of earnings season yesterday with cbs last night and time warner this morning. Both be estimates with higher earnings field by a surgeon advertising sales. Is advertising back . It is back, particularly on television. Cbs is the most exposed to National Television advertising and put up a huge quarter last night. Their underlying tv growth is up 12 which is a number they have not seen in five years and we have not seen from any Media Company a long time. The tv ad environment is coming back. There is talk to some advertisers switching money out of their digital internet budgets back in the television. When i look at time warner i look at cnn and how much they have benefited from the fact that we talked about. How much has that benefited them in terms of political ad spending this season . Cbs and cnn in particular. Cnn is a tremendous ratings boost over the last six to nine months. Time warner calling out cnn as particularly strong. That will continue through the election. Those it really benefit are the local television affiliates. That is where the candidates really spend their money at the local stations. Companies like time warner doesnt own independent stations with cbs does. The local affiliates are the one that really make the money of these political advertising cycles. Pfizer rising in the premarket after posting Quarterly Earnings that beat estimates. That scene sales rose more than expected. This is their First Quarterly reports of the drugmaker walked away from its 160 billion megamerger last month. I think what you see these numbers today is strong growth in the business. There are some factors that play into it. There are some selling days in the quarter and some benefits. When you look at the two divisions established product business is pretty stagnant. There are divisions making it look like its growing but truly the growth is not innovative. I think investors will not seen any other options they have , in termsiled m as of the largescale deal they want to do. They probably see this as an notable at this point. They are focused of pfizer on margins. Is this a better breaking of the company into two Different Companies . Is that part of the strategy . That is probably whats going to happen going forward. It will include consumer vaccines, oncology, areas where there are rmb and growth around andworld rmb r and d growth around the world. There is still a consistent market. There has been talk about if they split into three. Twoink the best way is for and its a more real sick way to look at pfizer going forward. Global Health Care Company merc topping analyst estimates. As pharmaceutical sales slowed once again what six out even this report . What sticks out to you in this report . They are still getting solid cancerrom their growing drug in they are defending their diabetes portfolio pretty well against some stiff competition from lily. The ceo said theyre looking for business development, meaning deals. In the biotech industry valuations are down a lot since this past summer. I think a lot of big pharma which has cash of the books is looking to spend it and looking to beef up their portfolio. Do we have to worry that sales are slipping just a hair . It is still to be seen. It depends on what they do in the deals front. Bp numbers. To the 2. 08 billion, thats up 14 . 12 million by 2020. Billionplan to spend 6 on Capital Expenditure over the next three years. This is towards your new target. Is this conservative number at 6 billion . It is not conservative. Its a realist