I look at where the possible source of the next crisis would come from. It is not the banks, it is the nonbanks. The earnings debate continues and top executives respond. The pessimism about espn is highly exaggerated. The strategies we announced at the end of last year is the right thing to do. I must say, we are optimistic. It is all straight ahead on bloomberg best. Juliettth is bloomberg best. Global politics dominated the early part of this week, starting with frances president ial push onuny. The polls are now closed in france. It looks like we have a macron win. We think it points to victory becauseweoubt think it is likely a 65 vote for mr. Macron. We will see the number confirmed as we work through the night. Flagsm watching european make way. How long will it be before i can buy eurobond . It is one of the cornerston of the program is to give europe its own budget. It is definitely not for tomorrow, but it is a step in the right direction. Emmanuel macron has pledged the united kingdoms victory over Marine Le Pen. I would like to say a few words for those who vote for madame le pen. Do not boo them. After all, they vexpressed their anger, disarray, and their belief, and i respect those as well. But i will do everything i can in the next five years to see that these people no longer have any reasons to vote for extreme ideas. At the end of the day, it is a positive outlook for markets cannot discount them. At the same time, we need to be able to do the reforms. But he needs to be able to do the reforms, but there is uncertainty about that. When you look at trump in the u. S. , they proved to be more difficult than in the beginning. The full extent of macrons victory, it does not matter. If he grabs a hold of this and plows ahead, it is not unusual in an american context for people to win ryarrow victories and try to do a lot. He can claim he got 66 of the vote. He has to govern mainly to the right. Has the least number of selfmade millionaires, it has got everything for the right you would want to change. You would want to make france more businessfriendly and introduce more productivity. That means taking on the unions. Voting is underway under voting is underway in south korea after a scandal. We have trade disruptions with the u. S. And growing worries abt unpredictable neighbor to the north. Tell us about expectations of the day. President ial candidates have already started voting. About an hour ago, we had the leading candidate cast his vote here. Yocan see behind me, people are lining up to get their chance to cast a vote, but given this is an unprecedented vote after the house of the former ofsident after the oust the former president , they are questions to what will happen next. The National Election commissi says the turnout rate will be around 80 . A record 26 of eligible voters have already finished early voting. Vonnie south korea is electing a new president. He is poised to take power in and dean ending nine years of conservative rules according to exit polls. His parents are actually korean refugees. He has definitely pushed a softer line toward north korea. A lot of folks anticipating perhaps some easing of tensions. David President Donald Trump late yesterday shocked just about every when he abruptly fired fbi chief james comey. Did anyone expect this . No one expected this. With several republican i have spokenwith several republican political advisers to the president and senior aides on capitol hill, and all of them are pointing to the notion that this decision to fire dict comey will lead to more confusion in washington in any and any momentum they hoped to see on passing Health Care Reform last week now seems to be in question. Vonnie the president defended his decision on twitter saying that comey lost the confidence of most in washington, saying calm down, they will be thanking me. Absolutely laughable. Nobody has been happy with his performance, and i think, the clinton investigation was politicized. It is time to take a new direction with the fbi and the president has made a wise decision. The timing raises questions cae of the interference part of russia in our election. I do not think the system has been compromised, but different times, for different reasons, people asked for a new fbi director, and now they will get one. Had he done this at the outset, it would not have been surprising because james comey is a controversial characte and did have detractors when he moved forward with this investigation. He had put himself in t position that was politically untouchable, and then to fire him now it is catastrophic and baffling. Jonathan Governor Carney sat down and it is decision day for the bank of england. 71 vote. The u. K. Many tighter policy for may need tighter policy for the yield curve. Get on it, get on it the ssage to the markets this morning. Jonathan the bank of england raising its inflation forecast to 2. 7 , cutting its gdp forecast. They said they predicated this forecast on a smooth brexit. Are the risks symmetric . Is there a possibility of a super smooth brexit . No, of course not. The rest are on the downside. If you look at the last 10 forecast, they have done exactly the same. They say wages are going to pick up, it will be 4 , back to where it was in 2006. And every time in the last 10, they have been wrong. Every forecast Going Forward, they lower the wage growth forecast and they get it back to 2 . The whole positive of this forecast rests on this illusion that wages are going to rise. They are not. I am afraid it is complete nonsense that i heard today. We have breaking news out of washington. The u. S. And china have reached a sweeping trade deal. Donald talked about this 100 day period where there was go where they would go behind the scenes to work out a trade deal. They had delivered on this. 10 consensus have been reached on trade issues including agricultural issues, energy, Market Access to financial services, which has been a bugaboo for the United States for a while, and u. S. Beef. There is a glaring omission in this trade agreement and that is with the coal industry. Another thing that in here is something the Previous Administration and some republicans worked on, and that is environmental protections. That was left off the table. When you take a broader step back, it is a reset. There will not be one Silver Bullet that suddenly takes on trade deficit from the 300 billion to zero. That is not the way it is going to work. Are you trying it to zero, secretary . No, we will get it as far as we can, but the important thing we accomplish year is we want to do it by increasing total tre and by increasing the ability of our companies to export. That is the number one objective because that is what will create more jobs here. Juliette still ahead as the review the week on bloomberg best, berkeleys ceo meets with shareholders and speaks with bloomberg. Elizabeth warren says if President Trump wants to break up wall street, she is ready to work with him on legislation. Plus, a look back at Quarterly Earnings reports. More of the weeks top business headlines. Austerity seems to be over in australia by the look of the countries countrys ambitious new budget. We have a progrowth agenda. Juliette this is bloomberg. Juliette this is bloomberg best. Im juliette saly. Lets continue our global tour of the weeks top business stories with a busy day of m a on monday. Following months of talks, the deal of the Luxury Company agre tbuy kate spade for 2. 4 billion helping the company to cope with its sluggish demand. Has had a successful turnaround of its own brand, but they came to the realization there is not that much more to go, so if they are going to keep growing and it cannot at sales with coach itself, they will have to keep buying other companies. So into kate spade. Vonnie coach went into footwear recently and it was a head scratcher because coach was always known for handbags, but kate spade has been into footwear for a while. Can they be complementary . It is to continue to create and grow market share. There are not a lot of cost synergy between them. The idea is to create a conglomerate but on a much smaller scale. David Sinclair Broadcasting has confirmed its deals to acquire tribunal media for 1biion. The price may be a surprise from what we had reported about one month ago, where sinclair highoping to buy it in the 30s per share. It is driven by competition and fairly late competition for this asset. You mentioned that fox and blackstone took a look at combining and potentially buying tribune. It ended up bidding in the end, but nexar did. I think that pushed the price higher. Mark shares of akzonobel lower today, rejecting a third offer from its u. S. Compit ppg raising the prospect of a hostile approach. Will they go hostile . That is what they are indicating. They said they have until june 1 to come to the table and negotiate a deal. If they do not do that, then hostile is the way to go. But keep in mind, the dutch market is one of the toughest to get a hostile transaction done in. It will not be easy for them. Mark activist investor Elliott Advisers are petitioning a dutch court to back it efforts over fa to negotiate with pbg. Are they going to get their way . Will the chairman and up being ousted or not . It does not look like they will. They dont know what good it would do to oust the chairman because they have our backing. We are in a difficult situation here. Elliott is unhappy with the companys refusal to engage. You will remember we had three attempts by ppg to get them to the negoatn table, and so far, they said, we are not interested. They are taking the gloves off and trying to go the hard way going the court route. Ppg may say, we have come as far as we could come we have tried three times. We have had fruitless negotiations or talks with the other side. This isnt really going anywhere and they could go hostile. Very difficult. A lot of hurdles. Or they might go away. Very hard to say which way it will go at the moment. The Australian Government pushing ahead with the nationbuilding program, sticking to a surplus protection that relies heavily on wage growth. Take us through some of the highlights of the budget. Some of the losers are the big banks in australia. That is right. I will give you the headline numbers first. 29. 4 billion. Narrowing in australia and there is a deficit in the forecast by the year 2021 of 7. 4 billion. There are assumptions about the return to surplus do rely on pretty optimistic assumptions about growth. For example, gdp getting to 2. 57 . Inflation above 2 . And iron ore around 55. We have a progrowth agenda with the government focusing on company tax cuts, focusing on better access to key markets. Focusing on a significant infrastructure program, everything ties in together. The best advice for the government is this forecast is prudent and credible and responsible. Increased inflation less than expected as weaker commodities took its toll. What does this tell us about reflation . You are right. Economists suggest they will not it is unlikely to be big change and they will not be any big an in terms of bpo see in the moves in the money market. It is a reflation story. There was so much talk about this at the beginning of the year and you had that february number of Producer Prices close to eight year highs. Now we have seen this dropping off. As you point to the commodity prices, that is really the main factor and the base fx, and it has a question on the deleveraging question because profitability has been helped and boosted by these higher factory gate prices after coming off and those prices are likely to be dented. It wilma it more difficult for them to pay down their debt, so the implications are broad both domestically and internationally. Vonnie apple is extending its most valuable company. They began with a market value of more than 800 billion. A little more than two years after crossing the 700 billion mark. How significant is the psychological milestone . Deal. It is a big it is the first time we have seen a company this big, but lets not forget when ramco comes to market, we will talk about more unfathomable numbers. It could be above one trillion. It is a big deal. Vonnie what will happen with 8 cycle . E that is the risk. A lot of the surge this year has been about enthusiasm for the iphone 8. We do not know to what extent apple will be able to deliver on those expectations. Matt wall street bond traders who have survived years of slumping revenue, those who have survived, on track to receive some of the financial industrys biggest bonus hikes. I know so many guys who have been pushed out, retired, or fired from bond trading over the last five years. Are they finally going to get a break . Those who managed to keep their jobs . Apparently. It is quite a reversal of fortune. There is research from a u. S. Compensation consultant saying bond traders will be the group of people on wall street that receive the biggest bonus hikes this year. Precrisis, the bond trading was the envy of all wall street. Post crisis, not so much. Ally, this is quite a remarkable turnaround. Started pulmonary talks to merge with tmobile. How do i think about this if i am a regulator . The idea that is instead of having in the american case, two very strong wireless operators two you know, you have big ones that can effectively three compete with one another, but, is the Current Situation has worked from a consumer perspective in many ways question mark if you look at the international context, most large economies are going from four wireless carriers to three. So the u. S. Is an outlier in still having four. This is a sensitive subject. Everyone knows whath pay for their phone bill. No politician wants to be the one telling consumers they will have to pay more. I think this is a very tricky situation for me regulatory situation from a regulatory perspective. Juliette welcome back to bloomberges im juliette saly. Berkeleys annual meeting this week with a ceo and the public first meeting with investors since a whistleblower scandal put his tenure at risk. Erik schatzker sat down with them in london. Since i got here, one of my goals was to be very transparent with regulators. In many ways, we are partners in trying to avoid the next financial crisis. There is a very constructive dialogue between barclays in the bank of england and the pra and dsca. It is very important to us. I respect the repertory framework here. And we will see how this all plays out. Erik if the unthinkable happens, and you are deemed unfit to run barclays, does the bank have a plan, Succession Plan . I got the full support of the ar you saw the shareholder vote today. Lets let the investigation run its course. Erik have you reevaluated the risk of brexit to barclays with the hard approach theresa may has taken . The level of dialogue within the Prime Minister office, with her office and the chanclo with the regulators, has been really quite something. There is a lot of listening on both sides. We are a british bank. We are here to support the united kingdom. But also, we are the largest underwriter of european sovereign debt. France is very important to us, germany is important to us. We have a large credit card business. We have bankers and sales people all across europe. Continuing to engage with europe is important for us. I think it is important for europe. I think, just like having to set up Holding Companies and the United States, the European Union is going to require us to set up structures across europe that make it more robust and more within the fold of europe. Erik you know what i am getting at. Does the hardness of brexit determine the impact of a bank like barclays . You know, there could be decisions taken that might not be in the best interest of the free flow of capital, but one of the tenants of the you know, if there are a couple of things that came out of the financial crisis as a positive, one is the coordination of the g20. One of the things the g20 stuck reregulate the financial industry, lets not regulate and put up barriers, and so long as theyre not put up, they will work around brexit so london remains in important source of capital relative to your up. Erik relative to some of your peers on the subject, you are an optimist. At least you are constructive. What is the upside to be optimistic . What gives you that degree of confidence that they do not have . I am just expressing what i think. I do not think it is optimism or pessimism. It is what i think. You know, we have a Bank Subsidiary in ireland that is part of the European Union. We have 1200 employees in Continental Europe from milan to paris. There will be uncertainty. Having been in the financial industry as long as i have, it is amazing how creative it can be. [laughter] lets do it in a safe and sound way. Juliette more of the weeks most interesting conversations coming up on bloomberg best, including chicago fed president charles evans, Elizabeth Warren and ubs chairman axel reyba warning europes troubles are far from over. There will be a hard exit at the end and back could have negative repercussions on europe. And that could have negative repercussions on europe. Juliette this is bloombg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. The shlike a bald penguin. How do i look . [ laughing ] show me the Billboard Music awards. Show me top artist. 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