At pricing binary events. Where theok at 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 strategy 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. Juliette hello and welcome. I am juliette saly. This is bloomberg best. Your weekly review from Bloomberg Television around the world. Global politics dominated the early part of this week, starting with frances president ial vote on sunday. The polls are now closed in france. It looks like we have a macron win. We think it points to victory because the posters are [indiscernible] we think it is likely a 65 vote for mr. Macron. We will see that number confirmed as we work through the night. I am watching amazing scenes at the louvre and watching european flags being waived. How long will it be before i can buy a eurobond . If it is up to Emmanuel Macron [indiscernible] it is one of the cornerstones of its program is to give europe its own budget. It is definitely not for tomorrow, but it is a step in the right direction for europe. Emmanuel macron has pledged to unite the countrys wrists following unite the countrys rifts following his victory over Marine Le Pen. I would like to say a few words for those who voted for madame le pen. Do not boo them. After all, they have expressed 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 very positive result for markets. We should not discount that. At the same time, he needs to find a majority in parliament and do the reforms. There are uncertainties about that and how much you will be able to do. When you look at trump in the u. S. , even though there was a republican sweep, it proved to be more difficult than people thought in the beginning. The full extent of macrons victory, people will debate for a long time, but 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 very narrow victories and try to do a lot. In this case, he can claim he has got 66 of the vote. He has to govern mainly to the right. France is the biggest welfare state in europe, the biggest state in europe, 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 well underway in south korea after a campaign dominated by political and business scandal. Potential trade directions disruptions with the u. S. And growing worries about it s 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 meeting candidate, moon jaein, cast his vote here. You can see behind me, people are lining up to get their chance to cast a vote, but given that this is such an unprecedented vote, after the historic ouster after of the former president , they are still questions about what will happen next. The National Election commission saying 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. Leftleaning moon jaein is poised. To take power, and in nine years of conservative rule, according to exit polls. His parents are actually north korean refugees. He definitely has pushed a softer line toward north korea. A lot of folks here are anticipating perhaps some easing of tensions. David President Donald Trump late yesterday shocked just about everybody when he abruptly fired fbi chief james comey. Did anyone expect this . No one expected this. I can tell you ive spoken with several republican political advisers to the president and senior aides on capitol hill, and all of them are pointing to ward the notion that this decision to fire director comey will lead to more confusion in washington, and any Political Capital of the administration had hoped to seize upon passing Health Care Reform through the house of representatives now seems to be in question. Vonnie the president defended his decision on twitter, writing that comey lost the confidence of almost everyone in washington, republican and democrat. When things calm down, they will be thanking me. Absolutely laughable. Sales to pass any smell test. Fails to pass any smell test. 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 because 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. James comey is a controversial character. He did have serious detractors on both sides, particularly democrats, when he moved forward with this investigation. He had put himself in the position that he thought was politically untouchable, and then to fire him now it is catastrophic and baffling. Jonathan Governor Carney sat down the clinical unknown. It is decision day for the bank of england. The bank of england keeps Interest Rates unchanged. The bank of england saying the u. K. May need tighter policy than the yield curve implies. Get on it, the message to the markets this morning. The bank of england raising its inflation forecast in 2017. 7 , cutting its gdp forecast. They said they predicate the 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 forecasts, they have done exactly the same. They said wages are going to pick up, 4 , back to where 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 of this forecast, the whole positive of this forecast, rest 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. Xi jinping and donald trump talked about the 100 day period where they would work out a trade deal. They have delivered. 10 consensus areas have been reached on trade issues, including agriculture, energy, Market Access for financial services, which has been a bugaboo for the United States for a long time, but also u. S. Beef. There is a glaring omission in this trade agreement and that is with the coal industry. Another thing that is not in here is something the Previous Administration and some republicans worked on, and that is environmental protections. That was left off the table. This when you take a broader step back, it is a reset. There is not going to be one Silver Bullet that suddenly takes our trade deficit from the 300 billionodd to zero. That is not the way it is going to work. Are you trying to get it to zero, secretary . No, we will get it as far as we can, but the important thing we accomplish year is that we want to do it by increasing total trade 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 still ahead as we review the week, barclays ceo meets with shareholders and speaks with bloomberg. Elizabeth warren says if President Trump wants to break up wall street banks, she is ready to work with him on legislation. Plus, look back at a torrent of Quarterly Earnings reports. Up next, more of the weeks top business headlines. Austerity seems to be over in australia, by the look of the countrys ambitious new budget. We have a progrowth agenda. Focusing on significant Infrastructure Investment. 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 space finally inc. , coach agrees to buy rival kate spade for 2. 4 billion helping the company to helping the luxury brand cope with an industry wrought with discounting and sluggish demand. Coach 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 if they cannot add sales with coach itself, they are going to have to keep buying other companies. So enter 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 . Tothat is the idea for them, continue to Grow Market Share for coach and their family. There are not a lot of cost synergies between the two of them. The idea is to create a conglomerate or a mini conglomerate, kind of like an lvmh, but on a much smaller scale. David Sinclair Broadcasting has confirmed its deals to acquire Tribune Media for about 3. 9 billion. Not a big surprise, although 21st century fox flirted with it. The price may be a surprise from what we had reported about one month ago, where sinclair was hoping to buy it in the high 30s per share. The final price ends up being 43. 50 per share, driven by some fairly late competition for this asset. You mentioned that fox and blackstone took a look at combining and potentially buying tribune. They did not end up bidding in the end, but nexar did. That is another broadcast tv company, and i think that pushed the price higher. Mark shares of akzonobel lower today. Europes biggest Coatings Company rejecting a third offer from its u. S. Competitor ppg raising the prospect of a hostile approach. Is ppg going to go hostile . That is what Michael Mcgarry seems to be indicating. Kzo hasve said that ac 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 its efforts to oust the chairman over his refusal to negotiate with pbg. Are they going to get their way . Will the chairman and up being ousted or not . It does not look that way. The company said today, akzonobel came back and said they dont know what good it will do to oust the chairman. They will probably bring back somebody who shares our views. It shows that we are in a difficult situation here. Elliott is unhappy with the companys refusal to engage. You will remember that we have had three attempts by ppg to get them to the negotiation 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. It might be that ppg may say, we have come as far as we could. We have tried three times. We have had fruitless negotiations or talks with the other side. This isnt really going anywhere. 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. They tax the banks, 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 some of the headline numbers first. The debt is at 29. 4 billion. The deficits are narrowing in australia, and there is a forecast return to deficit by the year 2020 or 2021 of 7. 4 billion. However, assumptions about the return to surplus do rely on some pretty optimistic assumptions about growth. For example, gdp getting to 2. 75 . Inflation above 2 . And i are around 55 per john by march. 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 Investment program. Everything taken together, the best advice for the government is this forecast is prudent and credible and responsible. Chinas specter gate inflation increased less than an expected in april as weaker commodities took its toll. What does this tell us about what is going on in terms of reflation . It is not going to really bother the pboc one way or the other, these numbers. You are right. Economists we have been speaking to suggest there is unlikely to be big change in terms of pboc, when it comes to benchmark rates or moves in the money market. It is the reflation story that is interesting. There was so much talk about this at the beginning of the year and you had that february number Producer Prices close to four 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 an impact on the deleveraging question here, because corporate profitability has been helped and boosted by these higher factory gate prices prices, now that they are coming off, those profits are likely to be dented. That will make it more difficult for corporates to pay down their debt, so the implications are broad both domestically and internationally. Vonnie apple is extending its lead as the worlds most valuable company. The iphone maker became the first u. S. Company 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 . Alex i mean, it is a big deal. It is the first time we have ever seen a company this big, but lets not forget that when ramco comes to market, we will talk about more unfathomable numbers when it comes to market capitalization. It could be above 1 trillion, some are saying. It is a big deal. Vonnie what will happen with the iphone 8 cycle . Is that when we will see market value go higher, or will that be sell on the news kind of thing . 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, are on track to receive some of the financial industrys biggest bonus hikes for this year. 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 actually managed to keep their jobs . Apparently. I mean, it is quite a reversal of fortune. There is research from a u. S. Compensation consultancy, johnson associates, who is saying that bond traders will be the group of people on wall street that receive the biggest bonus hikes this year. They are forecasting a 15 increase. Precrisis, the bond trading was the envy of all wall street. Everyone wanted to work there. Post crisis, not so much. Really, this is quite a remarkable turnaround. Sprint started preliminary talks to merge with tmobile u. S. , according to people familiar with the matter. Executives from sprints largest shareholder softbank had contact with former tmobile owner but telecom. Dutch telecom. 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 and two alsorans, you have three big ones that can effectively compete with one another, but the counterargument is going to be, the Current Situation has worked from a consumer perspective in many ways. 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 what they pay for their phone bill. No politician wants to be the one telling consumers they will have to pay more. I think this is still from a regulatory perspective, very tricky situation. Juliette welcome back to bloomberg best. Im juliette saly. Barclays annual general meeting this week with the ceo first Public Meeting with investors since a whistleblower scandal put his tenure at risk. Erik schatzker sat down with him in london following the meeting. Since i got here, one of my goals was to be very transparent with regulators. Many ways, we are partners in trying to avoid the next financial crisis. There was a very constructive dialogue between barclays and the bank of england and the pra and dsca. It is very important to us. I respect the Regulatory Framework here. And lets just 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 . You know, ive got the full support of the board. You saw the shareholder vote today. Lets let the investigation run its course and see what happens. Erik have you reevaluated the risk of brexit to barclays, given the hard approach theresa may has taken and the hardline brussels has taken recently . The level of dialogue within the Prime Ministers office, with her government, the chancellor, 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.