Adjustment earnings. Havee battle for strength top hundred 84 a share in at ts bid and verizons bid before. They have a huge spectrum. It is all about 5g for these players. Jonathan Emmanuel Macron scored a decisive victory over Marine Le Pen. 60 of the over votes. , guyng us now from paris johnson. Fantastic reporting yesterday. The job for Emmanuel Macron. Talk to me about what he needs to achieve over the next month to make sure he gets something out of those parliamentary elections. This is just one piece of the puzzle. Presidency a major leap forward for him and his political ambition. It is only part of the journey. He needs to carry the momentum into the massive assembly. He needs to be able to deliver the policies he has talked about. I think it is going toi think ie interesting politically. The Prime Minister effectively is going to run the domestic agenda and people are talking about that he needs someone little bit rightleaning. He needs to bring in some people from the right to be able to give himself that ability. It is all about momentum now. The job is done, but it is only half done. He needs to make sure the vote goes his way created jonathan how does he determine what his mandate actually is . Many people went the voting yesterday because they do not want to vote for the alternatives. Where does the mandate come from . I think his mandate comes from the center to be honest. Will find that mr. Mellow show i think a comes from the sense of grouping. These mandates in the central custer both left and right. You have to remedy 10. 6 my people who voted for Marine Le Pen yesterday. France big part of he needs to find a way to bring france together. He talks about europe and globalization. That is not going to regulate to those people. Succeed, then 2022 isnt really far away. Jonathan he was also the former chairman of publicist live. Thank you for having me. Why can Emmanuel Macron proved to be different as the president of france . I dont think we can compare them. Emmanuel macron is a young talented man and he is not a political leader by carrier so he has nothing to lose. Dohink today he will have to two jobs at the same time for the next six weeks. At the same time, he will have to make some quick winds to fix a very important issue. Spending makes up a large proportion of that. When they start striking, how does he react . France, people say it is always an unmanageable country. I know many of them are coming right and coming from the left. They decided to vote for him [no audio] Emmanuel Macron has shown that they definitely wanted a change. They dont the old guard to be running the country again. Prime minister trudeau is the leader who sent the most congratulations to Emmanuel Macron and this is how he is seen today. He will know how to talk to the private sector enabled on the one hand, he says he and onform labor laws the other hand, he has unemployment under 20 . Has thet think he magic solution, but he has to make some reforms which are needed for years. Corporations need a cut on social tax. This is the only way to create jobs. Jonathan can he afford to have increased employment for increased unemployment . I dont think so. He said if im not able to reduce the unemployment, i will this is what in has happened to him. The second round of the u. S. Leadern was the only despite the big crisis and in weree all the others fired. Most of them were unable to reduce the unemployment. Our member many of your inleagues were saying if obamaa we go under 8 would be reelected and it happened. I final word on le pen, he points out he cannot get this job quick enough. What is the potential that the National Front comes through down to europe to you are making it very important point. This is not the defeat of populism and i hope the french and european people keep that in mind. Populism is very solid. Think we should be super happy today. We should be realistic and pragmatic. We have one third of the french people who voted for Marine Le Pen. Why is huge and scary and we need all the people in france to be the first ones to support the unions should be the le pen. Es to support i think this is a very point to keep in mind. This is why the roadmap of is huge. Macron President Trump is going soon to saudi arabia and the middle east. I hope that a minnow macron will be able to bring france with International Dialogue and be back into foreign policy. He has a lot on his plate. Thanks for being here. Up, James Aberdeen coming to tell us what this means for investors. Live from new york, this is bloomberg. The euro a little lighter today. Take a look at what has happened the last few days. A slow decline lower. Join now from london, Senior Investment manager. Let me start with you here. Help me understand the medium turn issue for the euro. I think really it is the medium term story and a Good Opportunity for the euro. It will be very powerful for the market. The mediumterm still whole tire. James, do you agree . It is not going to surprise any of my colleagues. I think the slow aspect has been the more powerful and interesting. I will be looking at how spreads perform. It does seem quite difficult. Ecause they are buying less they have been large beneficiaries of the policy. A cap onprobably put the euro increase. Much has been made this past election. Theyre going to propose an idea. Europe has a really delivered much of the gains despite the French Election. It has already outperformed the s p 500. If you waited this long, you missed it. It looks that way. Grand window to draw any conclusions, but it looks like we have seen individual names just last week. I certainly think there is an argument. If you look beyond this election, theres plenty to be. Oncerned about when you takeicy away the punch ball, it has been good. We have seen u. S. Assets. Truggle you look at the fx market, we had guests yesterday pointing out the rate differentials ahead of where the bond market currently is. Can push back north on a 10 year. That spread continues to widen. What is the argument for stronger euros. The difference between the French Election in the u. S. Election is the u. S. Had around 300 polls per week. I still think people think is when the stories pick up, and actually positive as well, but the main thing is the fed versus the ecb and who hikes the fastest did when the ecb exits its policy committee you spread. Very correlated the spread will get wider. Germane have the election to go. Theres a lot more political risk. The election what i am certain of is the market will get pretty bold and we will have more. There could be a big euro move in the market could get ahead of itself. Because whensegue you look at risk, it really hasnt paid off. If youre nervous, no one really showed it. Do you need to hedge risk Going Forward . I would not want to draw straight lines. I think there was definite case of investors fighting the last battle. There was a widespread conviction within market the brexit wasnt going to happen when actually the polls or not telling you that at all. They were telling you it was within the margin of error. In the French Election, the polls were pretty consistent. They missed the potentially more than the u. S. Polls did in their election because they underestimated the level of mccrones support. Therefore, investors move the price out. It always depends. You have to build a portfolio that is capable of withstanding most of the range of outcomes. Going into that ecb meeting, that is what is the target now . A target ofill be 115. We will get to 112 before that meeting. That is the shortterm value now. You are staying with us. Coming up, bolivia michelle. He will be joining us from new york city. Youre watching bloomberg. Equities softer, but you are seeing some deal action. 1850 per share. Over on the march. Trying to get new products to offset any price declines they may have to contend with. This is a great story. Up. Ing at 200 is now of 90 56 per. Hare 184 per share. On the downside, you do have micron getting a downgrade. Overential the stock is 180 in just one year. In little bit of lightness there as well. Stories asiderite from the French Election. Macronearold emmanuel will be the youngest president of france. Paris,w york city and this is bloomberg. 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. Ways wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. Jonathan from new york city, you are watching bloomberg daybreak. Lets watch the action. Through straight weeks of gains. The euro reaction, the market has been fading. Up selling, ended it. Afterle bit of comeback four straight weeks of gains. That is the story of the marketplace. Here is emma chandra. Senate republicans plan a Health Care Bill to keep some elements of obamacare. Means President Trump and House Republicans will eventually have to face a bill that does not completely repeal obamacare. Russia says it extends reports extending opec cuts the on the end of the year. Earlier, emmanuel, presently end ofcommemorates the the Second World War in europe. We have the strength, energy, and the will because that is what has carried us to this position. That strength will ensure our feature. We will not give up debt given to fear, division, and lies. He is 39 and the youngest toson ever to the elected frances president. It had ramifications well the on france. To go over this, we want to turn to alan crawford. Take us beyond france. We have a series of. Nternational summits , followed by g7 leaders. Also, weve got the next big one in the u. K. In terms of european ramifications, this is a big one. There are quite a few elections coming up. Changes the possible that this win might have for places like germany . Germany is key to this and we saw an indication of that last night. ,he chancellor, Angela Merkel offered her congratulations. To make hispected first foreign trip probably to germany. Expecting the french german access that drives the eu. That will get a renewed kickstart from macrons election. I would expect merkel to make a statement shortly about intentions towards europe. Bloombergs alan crawford. Till with us from london having listened to this, take us the on france itself. Victory did a cohens change the appeal that one might invest in europe . He is certainly and integration a list and proeuropean. Things have fallen to the category of a redline for other parts of europe. While that may be acceptable to some people within the german stands,l scene, as it that will require a constitutional change from germany. That policy could be viewed as positive for europe, the path to get there is by no means clear. And a lot of the problems that have existed not necessarily the wider eu have not gone away. As a move into a more normalized world, some of those make come to the fore again. Ore generally can we expect a close alliance between Emmanuel Macron and Angela Merkel . We dont even know if it is going to be Angela Merkel. Bixby Martin Schulz who winds. Than it waslose with francois hollande. When it comes to the euro crisis in the first place, nobody turned around and asked why the building was on fire in the first place. Nominationthe that existed in 2012 was sealed with the bond market and excessively the ecb came out and soul that issue. The ecb cant do anything about that. What can politicians do about it to take the question off the table . Lower unemployment. , matt shouldo that push populism down. Unemployment should has remained sticky. Whereht be the one time he was talking about inegotiating the treaty so think this is another story we will be talking about in five years to come. Imagine macron going up to germany and asking for . Is not this year, next year. Will be a nice story to talk about. Christ good to see you guys. Some breaking news for you. Exploringd comcast operational efficiencies. The sword broke yesterday. They are trying to Work Together tos to compete with at t and verizon. That part of a story. This year up by about 15 . On inl discuss that later the show. We will be joining us after the election. What it all means for your portfolio. This is bloomberg. This is bloomberg daybreak. Coming up in the next hour come up Morgan Stanley chief global strategist at 8 00 eastern. Now to your Bloomberg Business flash. Ar is in talks to make preemptive bid for toshibas memory business. Kkr has indicated it would pay at least 16 billion. Haveprices in the u. K. Faced a quarterly decline for in years. Time the changeover is costing southwest over 500 million. That is your Bloomberg Business flash it joining us from oliverya much out michelle that is true. Very strong sentiment of optimism in france this morning. The outcome was good news for economy andin the europe as well. Weve seen countries take big pushes to achieve reform. The british did it in the 1980s. Talk to me about how long it takes to implement the reforms and really generate the fruits of our labor. Only talking years, five years, decades . Are we talking years, five years, decades . If you look back at the ple of germany that managed to turn around at the levelut it of Economic Health every know today. When you are talking to clients and advised leaders on marketing, how do they feel about this . . O they feel populism is dead what is the feeling incorporates right now. Well, to feelings. First of all come upon was him is not dead. Remember, still one third of the. Oters we need to watch out what is going to happen. The second sentiment is one of hope following macrons election. Reallynch community is in high citation. Three having to do with social laws, taxation and the Public Sector in france. Know, looking at President Trump trying to get three things done at once, what is the number one Thing Companies could pick in france . One of the issues with the french labor works system first of all, it does not work. It requires a number of things in particular to the reform. The first one is more flexibility. The number two is also very important. It is to reduce the level of payroll taxes that are extremely high in france and the highest in europe. Timeis is not the first mccrone has taken a whack at reform. Does he have the political wherewithal to take on the people who does he have the personal fortitude and political backing to take on movements like that . All, change in france is always difficult. It is not an easy task. If macron can rely on a Strong Majority of its own Party Instead of reforms, then, he will be look move forward. Obviously there will be resistance from the trade union in particular. Those can be overcome if he has the courage to move forward and rely on a Strong Majority. Q for joining us. If you have a bloomberg go. Inal, go to bloomberg this is bloomberg. Rivalch agreeing to buy kate spade in a deal worth over 2 billion. What about the price is striking to you . The interesting thing is going back to 2015. Kate spade shares were trading around 40. People were talking about 30 a share at one point. Weve ended up at around a decent price at around 18. 50. Why does coach what does coach get out of this . They are trying to get sales somehow. They realize theres so much they can do with their own brand , that ended up doing well for them. The realization is we cant push coach mutts much further. Name jimmy choo is another people are talking about. Are there a lot of efficiencies they can get out of this . That the great question. They say they are counting in 15 million. We are not sure how much overlap they can get. In the very least, they can use the same strategies. Thanks for the hustle. Rough five days for oil. This is what happened on thursday. Wti. Of 44 for the last 72pened in the hours . The market was coming down for the last two weeks. U. S. Oil production also very strong. What happened is we went below 200. 0 and then broke the there was a lot of option trading on thursday and friday. When i frying striking is the stock price went down, but also the time spread. We have seen a lot of weakness range. Was really dexter they think . They are thinking too much oil. That is one of the main reasons i think the most important thing is they are saying they are extending the budget cuts in 2018. When you look at that, it is too much oil. Opec is going to have to work not going for six months extra, but probably another you pretty is this news of an extension good news or bad news . Are they willing to do whatever it takes . It both ways. Ead the price the thing as in also 2018 and signal they are not working. David it seems like every time shale goes up against saudi arabia come up what is going to change that . Deciding to take a driving pricesn were the sale can survive. They try that in 2014 and the more. Ic pain was a lot 2017 producers 50 oil for. Whatever the price goes down, they have some time to drive in that is a main problem. Are we