Fields in just a few minutes about exactly what it tells about where they are in the First Quarter and with the rest of the year is going to look like. You the ecb bring a. M. Y decision at 7 45 eastern time. Futures be stable out there. S p 500 futures up marginally. Weve pulled further back from se highs alix time for the morning brief. Weekly initial jobless claims in the wholesale inventory the durable goods and the trade balance from march. The treasury will auction 20 billion in sevenyear notes. Finally, today is the busiest day of firstquarter earnings season with 65 Companies Reporting. Weve got alphabet, amazon and starbucks all reporting. Emma President Trump one people pulling the u. S. Out of nafta immediately. The white house as the president ruled out terminating the Free Trade Agreement after talking with the leaders of mexico and canada. Instead, the three countries will renegotiate. Provide an early test for President Trump the taiwanese will submit to the u. S. As an s july, putting s desire toump increase exports against his plans to work with china. The administration handed out a onepage list of bullet points that Authorities Say will make it the biggest tax cut in u. S. History. That could determine if a cut in Corporate Taxes from 35 to 15 would only be temporary. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. David whether you call it a plan or an outline, we now have some specifics of what President Trump wants to do with the tax code. Now comes the hard work. Negotiating begins. Theres nobody in washington who knows more about what could be done and should be done than josh he worked for Goldman Sachs over in london. He just recently took over as president and ceo of the Business Roundtable in washington where he works with jamie dimon on policy initiatives. Elcome to bloomberg tell us what we know right now that we didnt know 24 hours ago. Josh what we got was very important the administration engaging on substance on a tax reform plan. Thats what went wrong with health care. Theyve now organized themselves, theyve got really good people putting together a substantive tax plan. They gave us yesterday just the outlines of that plan. What i think should be encouraging to everybody is they with positions and working with leadership in the senate and house. David give us a sense of how dramatic these outlines are. How big a change would this be if they could implement this . Josh it would be huge. Any substantial tax reform would be fantastic for the economy. Substantial, i mean from the business side, a significant reduction in our way to high corporate rate. The trump outline that came out yesterday does both things. Theyre cut in the corporate rate is fantastic. Probably larger than can realistically be achievable. I like stretch goals. They ought to stretch for that 15 and if they get anywhere close to that, it will be a big win for the u. S. Economy and u. S. Job creation. David i would it position us in terms of competition internationally . S below japan and the u. K. Is that achievable . Josh probably not. Alike that they are setting really good marker out there of how far they want to stretch in getting the right down. The rate down. If they could get anywhere close to that 15 , that would be a big win for the u. S. Economy. David you worked with some of the Largest Companies in the country. Are they unified in their support for this sort of a large tax cut . Theres tax rate a big disparity between what companies actually pay. Representsoundtable 200 ceos of americas the companies. 15 million employees, 6 trillion in revenue represented by our membership and they are united in support of fun mental tax reform. A fundamental tax reform. The kinds of principles the administration outlined yesterday, they have the unanimous support of the members of the Business Roundtable. David lets turn to how you pay for it. Is there concern among your ceos if you run the deficit up, that may hurt their business . Josh sure. The principles the roundtable includelude put out a plan that is fiscally responsible. It ought to be possible to do substantial tax reform without blowing a huge hole in our overall debt burden. David the suggestions that we would make it up by tightening loopholes. Did that come back with a lot of your ceos think i will lose these loopholes that helped my bottom line . Josh our members have taken the decision that its better for the economy and therefore better for them overall if we in fact a really large portion of all the appendages on the tax code in exchange for a lower rate. Our members are ready to make that exchange. Thats really where the administration was pushing yesterday. We are going for a dramatically lower rate. Your members are in favor of this. Can it get done . Is this the best way to go about it . Set out some general principles without specifics. Josh its the way to get it done right now. Theres a lot of ways to approach this sort of thing. Our hope is the admins ration fills in their outline with the leadership in the house and senate. Our hope is the Administration Bill fills in thr outline. There was a positive reaction from the senate and house leadership. Leader mcconnell and speaker ryan and chairman hatch and chairman brady put out a joint statement saying they think these are critical guideposts. Its encouraging news that the administration is now working closely with the leadership in both houses. That should give us encouragement that however the final details end up come over the next months, we are on the path to serious tax reform. Thats what job creation needs. His views onl get trade in just a few minutes. Alix some earnings trickling out today. Under armour up 9 in premarket. First quarterly loss is going public in 2005, yet only a one cent loss versus four cents loss. Ford out with earnings just moments ago. Mark fields will be joining us with his outlook. This is bloomberg. Alix this is bloomberg daybreak. Deutsche bank getting hit by 2 . Its trading revenue was just up 11 . The average rise for the big five in the u. S. Was 20 . Did double on more than last year and overall revenue did fall 9 , but that was because of an accounting charge. Bank blamed volatility. Ford reporting moments ago. Its adjusted profit loss down 42 . Earnings coming in at . 39 a share. Ony are spending more Autonomous Cars and electric vehicles now to pay off later. Not quite paying off yet. David ford did announce its first order earnings moments ago. We are joined now by mark fields, ford motors president and ceo. Good to have you here. Mark always good to be on. Thank you. David weve taken a look at their earnings. You had a solid quarter, you beat analyst expectations. What do you take away as the top line for ford in this quarter . Mark the top line in the quarter, we delivered a solid quarter, solid cash flow. We grew our transaction prices in the u. S. Much more than the industry. As we go forward, we are investing, one foot in today and one foot in tomorrow. We are making investments that will power our growth and profitability in the future and we are investing in that now. Time, maintaining our guidance for the year on 9 billion and profitability in the company as we go forward. David you are seeing some softness. Youve been hearing for this. Where are you in the process of cutting back on production to adjust your costs for that new demand environment . We started talking about the plateauing of the u. S. Market last summer. Weve been preparing for that. When you look at the elements of running a Good Business as you approach the end of the cycle, our inventories are in good shape around the world. Time, from a credit standpoint come our credit operations have really gotten ahead of the trends we started seeing last summer. Going forward, we will keep our production match to demand and continue to work on costs in the company and continue to make the investments in new products that will drive our growth Going Forward, like we announced this quarter with our expedition and navigator. David in that new world with more modest growth or even declining volume, the cost control where are you on cost control . Is that a timing issue . Mark when you look at our costs, we are investing in our emerging opportunities. Net of that, when you look at the costs for this year, we will have 3 billion in cost savings across efficiencies that will offset each other. Things we are seeing in commodities and things of that nature. The net of the Cost Increases is around these investments that we are making in our future. Overall, we have an intense focus on costs to make sure we are mindful of not only the current environment but also making is even more physically fit for whenever a downturn comes. David theres a lot of talk about the glut of used cars going on the market. How much of a drag on your bottom line is that . Mark we have started planning for this since last summer. When you look at our ford credit ofrations, the impact trading value we factor that into our business. Used car prices have come down. There are some slight overlaps between new car and used car buyers. Customers are coming in for new cars. Thats why weve guided this year to the industry to be down slightly. We are very well prepared as a company for that. David the big news, the earnings also news out of washington about nafta. President se trump tweeted that he talked with the leaders of canada and mexico. Fordstical is that too operations . Mark nafta has made the whole hemisphere a lot more competitive and has allowed us as a company to be the largest manufacturer of cars. What we are encouraged by is that President Trump is working the mexican president and Prime Minister to go. Prime minister trudeau. Nafta has been very important for the hemisphere and also very important for the u. S. Because it supports a lot of good paying u. S. Jobs. David thank you for being with us. Up, we go live to frankfurt, bringing you the ecb policy decision at 7 45 eastern. Followed by president draghis News Conference just 45 minutes later. You are watching bloomberg. Jon it is a big day for earnings. Futures up firmer come up 24 on the dow, positive two or three points on the s p 500. Companies report earnings after the bell. Look out for that come including microsoft, google and amazon. Treasuries unchanged at 231. Head of the ecb, euro and dollar at nine cents. David still with us is josh bolten, head of the Business Roundtable. We want to talk about nafta a little bit here. Amongst all the tax talk yesterday, there was the reports that we were going to pull out of nafta altogether. Then come in got reversed. President trump has just tweeted this morning happens. Bout how this youve run a white house. How does it happen that you get reports that we will pull out and it gets turned around within a few hours . Josh you dont want this to happen. If you are the chief of staff, youre disappointed when an internal conversation or proposal gets leaked. It is controversial or its not policy or its a bad idea. You have to draw it down. Im assuming thats what happened here. The tweet you just read is encouraging news. A lot of us were very concerned, our members were very concerned yesterday by the report that there was a proposal circulating in the white house for the west withdraw from nafta. The tweet you just read from the president is very encouraging and means they will have a constructive conversation about how to modernize nafta. David at the beginning when President Trump was first be aed, there was set to real rupture in trade, particularly across the southern border. Are you and your members now reassured that this will come out a different way . Mark were supportive josh we are supportive. David what would you change . Josh its a 20 some year old agreement at this point. A lot of the rules were written before there were digital products. The current nafta doesnt adequately cover state owned enterprises in the way that modern trade agreements do. It doesnt fully cover intellectual property. There are important ways that it can be modernized. Saying inelds was your last segment, its hugely important for a large number of u. S. Businesses that the supply chains that have become embedded in the whole north american between canada, mexico and the United States, those supply chains are critical to so many u. S. Businesses and disrupting those wouldnt help the creation of u. S. Jobs. It would make our u. S. Companies less competitive against their asian and european counterparts. That week this morning from the president is very encouraging. We will be supportive of a constructive negotiation. David welcome to the world of reporting the news under the trump administration. Re is a second tweet now if we do not reach a fair deal for all, we will terminate nafta. Relationships are good. Deal very possible. Thats always part of the negotiation. Thats the kind of thing you keep in your back pocket. Everybody understands if you dont reach a fair deal, other things can fall apart. From the standpoint of the Business Roundtable members must some of the Biggest Companies in america that are deeply integrated in that north American Market will be pushing for a successful negotiation that modernizes the agreement, doesnt undo it. Im doing it would be a disaster. It would be a disaster. David when would the negotiations be finished . Josh theres a complicated procedure about notification to congress the administration hasnt yet done that. They have to give congress 90 days. The hardnosed negotiating probably wont begin for several months. Be pushing for them to get it done by the end of the year. David stay tuned. Josh bolten, thank you for joining us tonight. Today. Jon mario draghi might want to skip this meeting the decision to minutes way. The News Conference, live here on bloomberg. Jon from new york city, a big day for earnings. We are up 34 on the dow, positive for on s p 500 futures. Head of earnings from amazon come out for that and microsoft. Ahead of earnings from amazon, microsoft and alphabet. The inflation forecast over at boj. A weaker japanese yen. Back a touchulling from the highest weve seen in 2017 a couple of days ago ahead of that ecb rate decision. That is 15 minutes away. Washington, white house hardliners have lost their battle to get President Trump to threaten to withdraw from nafta this week. The president has agreed not to terminate the trade agreement after talks with the leaders of mexico and canada. The three countries will now discuss ways to make the deal more balanced from a u. S. Perspective. Boris johnson says britain would probably join the u. S. In further military action against syria if asked. In 2013, lawmakers they rejected a request by Prime MinisterDavid Cameron to authorize airstrikes in response to serious use of chemical weapons. Says some in the u. K. Still have illusions about brexit. She says that is a waste of time. The u. K. Will not keep the same rights and privileges it had in the eu once it leaves. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im emma chandra. This is bloomberg. Jon the wait for growth at Deutsche Bank continues with ding revenue trading shares touched their lowest level in a month after an underwhelming quarter reignited about the ability to recover lost ground. We always said we give ourselves a window up 34 months to execute. We also said we need to make sure that weve covered all ativities to put in place proper leader structure. That will take us another two quarters. I would expect we would be ready to go. When we go, that will be decided based on Market Conditions and the performance we are currently seeing in the business. Ahead of the ecb decision, looking at their performance compared to their peers come underwhelming is an understatement. Matt absolutely. If you look at just fixed income the u. S. Alone, peers had 24 . Deutsche bank had 11 . If you look at Equities Trading, u. S. Peers had a little more than flat. Deutsche bank had 10 shrinkage. They really underperformed their u. S. Peers. They have raised a billion euros in capital over the last month. Euros. Llion they are preparing the Asset Management unit for an ipo. It is a leaner business. All great stuff with nowhere to grow. Where is the growth going to come from . What are the elite optimistic about . Matt they really do think they have reached a turnaround point and they are now on their way back to start taking market share away from their u. S. Competitors. Becauseon they trail is the securitization part of that business they pulled out of, they dont think that is the key to the future. The Equities Trading business where they admittedly did poorly in the quarter they just reported on monday think the great place to grow because it is a low capital business. They think if they stick to , they can come back and start to make money. Jon we caught up with someone on the banks over in europe would you take the rate from 40 basis points to zero . Some of these banks could go up 25 . , whatilding behind you are the prospects of a rate hike anytime soon . Matt it doesnt look like those we will not get it today. John cryan from Deutsche Bank was just talking this morning about how he would love to have higher rates. Low rates are hurting his profit. Its not helping him on the top line. There are some in the ecb who say the balance is the risks are now balanced. You may see that language change during the press conference. You probably wont see language where mario draghi reserves the right to lower rates if needed. Mario draghi will remain dovish. There are hawks with their claws out on the governing council. Jon lets get to that langua