This is countdown. We are live from london and its just gone 6 00 in the morning here in london. Lets get straight to breaking news. We start with the oil sector. That come through with a profit. 122 million u. S. Dollars against loss of 125of the million u. S. Dollars. Talking about exploration spending, 2016 being 2 billion and giving a certain amount of guidance around Capital Expenditures, talking about organic Capital Expenditure coming in 13 billion u. S. Dollars. Thats in line with what we heard previously on the Capital Expenditure number. We will speak to the ceo to discuss the oil price. Does he think 60 a barrel is the magic number . Thats the number we were hearing discussed yesterday. We will talk to him at 6 30 u. K. Time. Lets get to the numbers from the banking sector. Q1 net profit came in at 1. 60 3 billion euros. The estimate was for 1. 5 billion euros. 10. 27 percent, higher than december. Net Interest Income 7. 20 6 billion euros. Lower than it was a year ago and a little lower than the fourth order as well. The bad loans ratio moving in the right direction against 4. 36 in december. On the domestic economy and what they say about brazil, a big focus here. Theyve given us their ratio in capital in 2015. The bad loans ratio moving in in december. Ection lets talk about a few of the things moving around in the markets right now. , a big see where we are move in the aussie overnight, weakness coming through in the australian currency down just shy of 1. 5 . Sincein the first decline 2008 and the crisis that ensued in the Global Economy there. Been at four. Ad we need to keep an eye on what the dollar is doing. Withed has been concerned a host of other factors. We saw some weakness because of the durable goods order yesterday. Gold gaining just a little bit ahead of the fed Rate Decision, up for a third day. David joins us from hong kong. Good morning. Lets get things started in the u. S. Donald trump has to clear himself the presumptive nominee for the Republican Party as he five to victory in all northern States Holding primaries yesterday. Hillary clinton the Bernie Sanders in four out of the five. There was pressure on the that theys to show remain viable in the race for the white house. Spain is heading for new elections after failure to select a Prime Minister for the first time in its democratic history. June 26 is the likely date for the new poll. The ceo of Standard Chartered says there could be tensions in europe. We all know that should the u. K. Choose to vote to exit the eu that on the day after, nothing will happen. Life in go on as it did the david or come up that there will be tremendous conjecture about what might happen. Even if the u. K. Votes to stay call, it is a close leaves some element of uncertainty in the way the conservative party manages itself. Leaves, there is real risk that it creates tensions in europe. Is betting that the billionaire is wrong about china. He said the country faces a hard landing and resembles the u. S. Before the 2008 financial crisis. But some disagree saying china has artie had its crash. Thee are signs Manufacturing Center in china is recovering. Forers suing led zeppelin plagiarism over their most famous song say theyre willing to credit settle the case for just one dollar. Supergroup is accused of facing from a bandriff called spirit. They could be entitled for royalties in tens of millions of dollars. The case is scheduled for a jury trial in los angeles next month. Shares about apple have slumped in afterhours trading after secondquarter sales fell 13 from a year ago. The tech giant is predicting further sales growth in china. You can find more stories online. Lets pick up where he left off at the apple story and get more on those gloomy apple numbers. This report from san francisco. Apple reporting fiscal secondquarter results of revenues of 50. 6 billion. A little disappointing for apple. Even though they had massive profit of 13. 6 billion for the quarter, iphone sales down 18 yearoveryear and maybe even worse for the company. Analysts had hoped the number would stay strong in the 39 range and it looks like it will be below 38 , disappointing to wall street. The Gross Margins are still strong by Industry Standard but maybe we apple standards. No new products to announce in the quarter, one of the reasons results are we. It suggests that the new apple gross may have less margin since some of the phones already on the market. Not enough to please wall street with the thought thats with the stock selling off. Cory johnson, bloomberg san francisco. Anna asian equities slumping again today ahead of the fed meeting later on. A asian stocks down for fourth day, set for the longest losing streak in two months. Health care and take stocks leading the losses after those numbers from apple that you just heard corey talking about. It means the msci asiapacific. Exis down slightly on the year it was up as recently as yesterday. The aussie dollar dropping the most in two months. The worst performing currency against the greenback today is weakening against all 31 of its major peers after inflation had its first negative reading since 2008. This was unexpected and is boosting for a rate cut from the central bank. Decision later on from the fed. I want to show you is happening with treasuries. Volatility plunging to the lowest since 2014. Markets are pricing in zero probability of a rate hike at this meeting and 20 chance in june. This is interesting because we have been getting we aref weaker data and not expecting action at this meeting, get money has been moving out treasury, pushing yields higher. The treasury bond index has fallen for the last seven sessions. About crude oil pushing expectations higher. The city line is economic surprise index. You can see the data has been surprisingly on the downside yet to hear yields have been going higher they are most sensitive to action from the fed. Our markets listening less today to and more to the fed rhetoric. They have to balance the issue of weaker data against keeping in on the table for later in the year. Is being held hostage by the Global Economy as opposed to domestic one. Ets get to simon the elephant in the room today is the fed conversation. I want you to talk first about the Australian Dollar story. We have seen such a big move in the aussie overnight on the back of cpi. It brings us back to this very simple conversation, its all about the Central Banks. Everything weve seen in one form or another is about the Monetary Policy sector. Commodity prices were going up because china was having less pressure on its currency. The fed was more cautious in january. Have cpi suddenly starting to come into negative territory. Everybody is making a logical assumption. These are just two different measures of cpi that the central bank likes to look at. A rate cut at the Central Banks tuesday meeting as pressure mounts on the governor to resume easing. What are your expectations . That is about right. A strongthat you have aussie and they have been so clear in that view that its bad for the economy will start to kick in. It comes back to what happens this evening with the fed. Suddenly Commodity Prices are down and the aussie is going to be down anyway. We have the problem of a commodity price will in china and elsewhere. It increases the likelihood of a rate cut from the rba. Thank you very much, simon. Plenty on the macro agenda for you today. Starting in germany at 7 00 u. K. Gdp willhen be flashing across bloomberg. Then at 7 00 in the evening u. K. Time we get the outcome of the fed plus today deliberations around policy. We will bring you coverage of that decision here on bloomberg television. Drivers seat, trunk and clinton extend their lead in the race to the white house. Do their challengers stand any chance of mounting a comeback . Anna markets over in asia are a little bit sluggish this morning, down. 6 . Boj tomorrow, a lot going on. Twitter. Look at shares took a tumble in extended trading after missing revenue projections. Analysts were projecting north of 77 million for the company. Twitter also missed his First Quarter revenue estimates, struggling to add new users. Profitquarter surprising analysts who are expecting a lot. The oil Company Announced adjusted profit of 122 million u. S. A . 22 per share dividend was also declared. Exxon mobil has been stripped of its aaa Credit Rating for the first time in 86 years. They question the decision to spend billions on stock buyback and paying back debt. Allywood may be scripting change of studio ownership. The wall street journal says comcast is in talks to buy dreamworks. The independent animator as a market cap of 2. 3 billion while comcast is valued at 148 billion. That is your Bloomberg Business flash. I think ive seen all of those films. Im not sure if that is tragic or not. Lets talk about u. S. Politics. Donald trump and Hillary Clinton have trounced their rivals in the Northeastern State primaries. Donald trump says is clean sweep made him the presumptive nominee for the Republican Party. Lets get to margaret who joins us from new york. Great to have you on the program. Follow when after Hillary Clinton. It was fascinating. Andld trump takes the stage peavy its to the general election where he goes squarely after Hillary Clinton. Assets is hergest gender. Donald trump says if she were a man she could not get more than 5 of the vote, that he will actually do more for women that she will and that women do not even like her. Was a very aggressive turn of events that may be aimed at next weeks primary election but will carry over to a general if they face off against one another. Donald trump called himself the presumptive nominee. Can he be stop . He doesnt have that magic number of delegate votes that he needs but it becomes exceedingly hard to stop him. The last stand make him a week from now in indiana. Anna and Hillary Clinton tried to reach out to Bernie Sanders and his supporters. How have they been reacting . Its interesting because Bernie Sanders is committed to continuing the race up until june over getting to see some potential shift in his language, talking less about how he still has a pass to win and more how he has been able to bring independence and new ideas to the process and he is committed to caring carrying those forward. Clinton probably does not need him for the nomination but she needs to bring his supporters along into the fall to compete in the general election. Anna staying in the u. S. , we get the latest Rate Decision from the Federal Reserve later today. Investors dont see any chance of there being a move today. Lets turn to the fed and your thoughts on the fed. There is growth, and might not be stunning, but there is growth. Talk about the distinction between the strength in the u. S. Concernsn the clear they have about the global story. That was a really fascinating bit. Thingsas always been about global markets, going back to 1998. I think it has become more explicit over the past 12 months and that was made most clear in september last year when we had and in the crisis first rate hike was postponed. Go to this year, all of a sudden we have the turmoil which i would argue was generated indirectly by the strong dollar. The fed suddenly backed off, and then we go to march. I think it presents an becauseing conundrum you could argue, looking at the u. S. Economy, they could do with a rate hike. I have a chart that shows u. S. Deflation hedges getting cheaper. Unlike australia, it seems in the u. S. The concern is on the other side about inflation. May be to strengthen the dollar feeds into that over time. The problem is from their if oil prices again , thats the problem you have, hikes int two rate without causing too much unrest in the markets. If theyre aiming for two rate one will be innd december. You dont want to do it in november just a few days ahead of the election. Do you really want to do it in late july . Youve got to go in september, that becomes your only choice. You see it most clearly around central bank, this your more than any other . Absolutely. Over the last 18 months, the biggest overnight moves in terms all come from the back of centralbank meetings. This is a market where Monetary Policy dominates everything. Thank you, simon. Next, how do they do that . We will speak with the ceo next. Iaaem anna 6 30 in london here. Bloomberg first word news. Here is david. Lets look at the u. S. First. Donald trump has declared himself a presumptive nominee for the Republican Party as he in all fivey northeastern States Holding primaries on tuesday. Hillary clinton beat Bernie Sanders in four of the five. Apple shares have slumped in afterhours trading secondquarter sales fell 13 from a year earlier. The companys first revenue drop in more than a decade. The aussie dollar has weakened quite a bit after inflation unexpectedly dropped during the First Quarter. The Consumer Price index fell. 2 . Global news 24 hours a day. Find more stories at bloomberg. Com. Anna david there in hong kong. Norways Biggest Oil Company has beaten firstquarter estimates posting a profit as crude prices fell to their lowest level in almost 12 years. Companys ceo. He great to have you on the program as always. How did you get to this profit . Hard work, i guess. We are reflecting the low Commodity Prices. And westrong performance are growing our Production Capacity organically. That weverogress been working on for quite some time now. You surprised the analyst and bob dudley surprised the analyst. What is it they have been getting wrong that they dont understand about whats going on in the oil industry right now . Do. Focus on what i can i guess what might surprise a little bit is the ongoing method to increase efficiency, reduce costs and the approach to our industry and the impact it has on the cost structure of the company. Do you see any scope to go beyond what you have already and announced . Ady quarter, sohe first strong this is been documentation that we are on track for the targets we established a couple of months ago. We targeted 2. 5 billion u. S. And we are working hard to achieve that. Anna the brent price this morning around 46 a barrel. The p and other Oil Companies if it isbout 50 as some sort of magic number for the industry. Is 50 a magic number for you . Quest there is no magic number for me. If still too much physical. Apacity out there there is still downward pressure , an indication that we might be heading toward rebalancing. We should expect volatility during that time. You were talking about costcutting is one reason why the analyst are surprised by the results we are getting from the industry. What about the refining assets . You oversaw the downstream operations. Would you benefit from being more diversified and having more exposure to the refining sector . That is a relevant question in times like this. Its something they are very comfortable with. We see a market that is gradually going to strengthen. Anna the saudis in the last few weeks have had a lot of plans to cope with the big picture global transition. You getting further into offshore winds. Are you making big plans for postoil . This is a longterm strategy. We need a portfolio that represents an alternative to oil. This is a gradual approach. We launched a new wind projects yesterday. These are all Industrial Projects that take time. It will gradually increase as we move forward. Anna great to have you on the program. Ryan joining up joining us for that conversation as well. Chart of the oil price, highlighting 50 a barrel. Other saying there is no magic number. What are your expectations . Fed is cautious, we will head back to 50 a barrel, its a simple that. High. Eems i seem to remember in 2000 u. S. Was considering releasing oil from highs it was 28 a barrel. Think its his a measure of how extreme the margins have been over the last 1012 years. Oil prices can continue to rally. If they are hawkish, if they do send a message, we have a clear picture for 2014. How quickly oil prices can fall. Anna what are you looking for out of the Commodity Currencies . Its volatility at its most extreme. To currency is clearly track Commodity Prices. The simplest way to play it will be the canadian dollar. Anna simon, thank you very much. Standard charter says the effects of global stimulus continue to be one of the biggest risks to the world economy. Francine lacqua has this interview. My biggest concern is the cumulative effect of extraordinary monetary stimulus over a. Of time. Cumulatively its building out and itet him balances does feel like a that is being stretched. Perhaps it doesnt feel like a bubble today but it becomes one with the benefit of hightech. This is what they are talking about. Banksof the pressure on is intended to have the resiliency to event of an unexpected shock. Im less worried about the systemic risks. Think the wobble we saw last year when there was concern that increasing monetary stimulus in europe and japan would have diminishing returns. Looked like the authorities who had kept pretty tight control on too much market , mina been losing the real ability to influence t