Anna welcome everybody, this is bloomberg daybreak in the city of london. I am edwards. Manus i am manus cranny. Breaking news, we have felt. Phillips is hitting the take coffers quarter revenue 5. 7 billion euros. It pencilpencil and 5. 69. That is progress in line. 442. Sted that is the everest. They canity, they say flow 412 respectively. The abundance coming in ahead of the two estimates. First quarter comparable sales rose by 3 . Euros, we are waiting to see if there is any, at all from the defibrillator issue going back to 2015. That is one of the things that the ceo can give us a little bit more light on when we talked to him. We are going to have a conversation with phyllis, we will speak to the ceo and the programming. R in we will, of course, have those subjects at 6 30 a. M. The outlook remains unchanged. Three point one 7 billion u. S. Dollars. An update on the big m a deal with china. They look forward to closing the transaction in may 2017. That is narrowing down the window where they expect to see. Now they are saying made for a 17. April 12 they have chinese goahead. Now they have china, u. S. , eu. This is a 43 billion takeover of syngenta were going to see the world of pesticides and seed makers, agrochemicals produced three key players. Lets go back to the european politics. The key story for us this morning. Manus we have the runoff that the market really wanted to see, and versus macron le pen vs macron. Rally, throughef the fx spectrum. That is what you have got in the euro. Euro dollar marching higher. Emerging markets currencies. The euro rallied 2 . The yen rallied as much as 3 . Francogerman spread, is that going to contracts . That is the key issue. Toaking news, we have a ceo resign and leave on july 15. Around, the ceo is to go. That is the breaking headline across bloomberg. A little more these on that, we will bring it to you. Anna some talked about over the weekend, the ceo said to leave amid the syria payments probe, the story we were running on the 23rd of this month. More to just to come. Radar, what has been going on. The currency market, macron seeing some of the risk on sentiment coming through in france. May 7, this is where the yen is. We have seen a little more risk on. Gold on the back foot, down by. 7 . Also, the 10 year yield is coming. Manus huge move. The biggest oneday month in three months. Event, 500 million went into gold last week. There is a little bit of an idiosyncratic move. China, ironically, is coming off. China is clamping down again. That is coming from the regular ordered local units to assess the cross guaranteed loans. That can be the canary in the proverbial coal mine. The risk on attitude, we are expecting to go directly high of u. S. Trade. Because of what we are seeing in china, the asian equity of. 1 or so. Muted gains coming through in asia. Lets get the first word news with julius. Juliette willtte the white house offer of tax reform plans next week but may not be ready until june. Followers,p told his tax reduction will be announced wednesday. Mick mulvaney says they expect to lay out the Administration Principles but admitted the full plan would not be ready for a couple of months. Secretary Steven Mnuchin says the ins outlook for the American Economy is a little conservative as he repeated the goal of 3 growth or more. Last week the fund reiterated the forecasted that the u. S. Would grow 2. 3 this year. Worldsuchin says the biggest economy is wellpositioned to expand faster and that will help the wider global economy. Sustained u. S. Economic growth is good for global growth. If we can grow the u. S. Economy, that is not just good for the u. S. Worker, that is good for wellnternational growth as and creates opportunities. Ont is what were focused and i think if we do a good job it will carry over in the spillover. Ana mario draghi may take faster route to Monetary Policy normalization than previously thought. While no policy changes are expected thursdays meeting, most at bloombergs survey say the president will provide Forward Guidance is as soon as june. Sooner than an earlier poll. An estimate from how long it will take to taper, bringing for depicted rate hike. Chinas multitrillion dollar Wealth Management product industry the banking Regulatory Committee says raise. Ding proxy used the 4. 22 trillion at the end of march, the growth rate plunged from 53 during the same. Potential threats to financial stability. Prime minister Theresa May Conservative Party is proposing to cut Household Energy prices as part of the Campaign Platform. The move is a similar to a proposal made by the then labour party head during the 2015 election. Conservatives already more than 20 Percentage Points ahead of the labor in some polls. U. K. Consumer confidence weakened in the First Quarter and households with the most pessimistic finances in more than two years going to a study. Has londontes house prices the largest drop in a most eight years. The capital central areas. Global news 24 hours a day powered by more than 2600 journalists and analysts in more , you can findries more stories on the bloomberg at top. We are checking in on the markets here in asia and we have seen generally these risk on sentiments following the first round of voting in france. Nikkei up 1. 4 . So seeing weakness on the china market. 1. 5 , there are still these really big moves from china government officials to curb trade. Yet they may not reflect significantly in the stocks in china. We should switch over a look at the stocks that weve been watching. Some chinese shares actually trading at lows. This particular company is one of the worst performers, down by 9. 3 . Japan, look at the big change gain. Panasonic lifting the bid for the prices sending the surging to the highest level since 2011. In australia, a big fall coming through. It announced that the initial trial of its cancer drug failed. We are also of course seeing gold coming off on the back of the french president ial voting, first round. Have a look at this chart. You can actually see that funds are buying into gold significant. They are still betting that this rally in gold is lifted by 12 over the course of this year as more legs to run. We have seen 487 million going etf, the biggest bullion etf this year. You are seeing a lot of info coming into gold and gold etf. Great round up this monday morning. Lets get back to politics. The centrist Emmanuel Macron and Marine Le Pen have topped the first round of the french residential election. Anna for the first time in modern french history, both establishment parties were illuminated in the first round. Maccallum and le pen will face each other in a may 7, both offer by clay different visions for the future of france. With delivered speeches after their win. Macron i like to say i realize my response ability is. If im full of joy i know full well what it means and i will carry on with optimism, enthusiasm, and the state and country and europe. Le pen the french person will without knowing there is a huge political debate behind this election, it was not a real debate so far but finally we will have a proper political debate and the french people need to see this historical opportunity. Candidates quickly rally behind macron. I am calling to beat the far right by voting for Emmanuel Macron, even if the latter does not belong to the left and has no desire to represent it tomorrow. I sure you, extremism can only bring unhappiness and division. There is no other choice than to vote against the far right. I will therefore vote in favor. Prepared to a sale anymore at this stage. Each and every one of you knows farwell what their duty is. Manus the voices of deceit end of the euro jumped as a result as much as 2 in the 13 minutes of trade. Joining us from paris is the very own. This is the best situation for markets that they could possibly have hoped for. There was no major shock thus far. You are right. You could argue that if you are looking at to centrists or people who not rock the system, the best bottle the best possible outcome could have been feel versus macron fillon versus m theac markets could trust the polls again. Ron. Polls at this point saying Emmanuel Macron will be Marine Le Pen. There is always a little bit of caution and the french press are surprised you had some he has of saye including congratulations to mr. Home. Mr. Macron. In two weeks they go to the polls again. There is a huge, huge gap between you dont know what will happen in two weeks. We understand that the campaign will be divisive and we understand that it will be dirty. So many people throw their weight behind macron. The french just arent always listening to them. We will have to wait and see for the next 4472 hours to see exactly how the second leg of 2472ign except hours to exactly see how the second leg of the campaign caps off. Kept up. The markets we saw yesterday as soon as the markets opened, the euro was at a fivemonth high. Gold is retreating at this. Very clear that the markets do not have this angst that they had over the last couple of weeks. The worst Case Scenario would have been a far right candidate versus a far left candidates. Because the margin of error was so close that could have been a possibility. Politics, of course, is always a little bit uncertain. Even though these polls are so far apart, micron seems to be the clear winner. He does not have or does not look president ial enough still for many french people. But marine lee pen. She wants france to get out of the euro, cutoff ties, or do they say i dont want to vote . The problem is the turnout so we will have to wait and see. New polls will give us an indication of what the situation could look like soup two sundays from now look like two sundays from now. Manus in paris for the election coverage. Lets bring in our guests, the cio at corner brewery. There you go. 8008. A euroyen banging up higher by 3 . The question for markets, two weeks to run. Will the french do it . Theyve been told by fillon to get behind macron, go to the center. Yes they will. It will be priced desktops quite nice if we can say we cannot trust the polls. Nice that it will be quite trustcan say we can the polls. There i said the Political Risk around this election, less week we double the European Equity because we thought this was the opportunity to take advantage of that Political Risk which is Holding Investors out of europe despite the fact that the economic backdrop has been improving. I think this is been really clear. It is highly likely, very very likely, that youre going to see sort of a coalescing around macron. From left and right. . 25 seems to be eight magic number for the hard right. It is the same and holland and they talk abo top out. You take comfort from that. Other stories that people have seen be similar, that takes broader indications. If this globalization out of the dock . Is nationalism back in the box . Three safety challenges thrown down to globalization as a story in 2017, dry line under them now . What does seem to be happening is france is fixing france and europe i should say is fixing a different course now to maybe the u. K. And u. S. To the response to the brexit vote. Thats the short of achieve what the europeans amended, unity did,n europe never unity within europe. That is not to say it is wholehearted and embracing globalization. It is still nuanced but they want to do it the european way. It does show there is forces still in check in europe. Major there are two other landmarks politically. The german election in september and italian connection before the end of the year. Election before the end of the year. The process and this willntages say le en not win. Is quite a proeuropean. Not going to make brexit negotiations significantly softer. I dont think it is. Candidates. Phile the greater sense of purpose that ive alluded to is he is very much in that mode. He makes very bad points, im not saying Political Risk has disappeared, italy is the one. That will come back. Rating, apartit from the Credit Rating friday. Does have Disruptive Force potentially in that election. Is there very much more antieuro then the french will be even under a le pen victory . Toa we will continue discuss. We will also talk about the few le few but also the spread. Chris wiley stays with us on the program. Promisesesident trump a big tax announcement wednesday. The finer details, you may have to wait until june. Find out why. This is bloomberg. Anna welcome back. This is bloomberg daybreak europe. The Trump Administration will offer an outline of the tax reform this week, full details will not be ready until june. Manus that is according to Mick Mulvaney, he said that he promised news on wednesday telling his twitter followers at a big tax reform will be announced. Reform, not much detail. Is that going to be a risk of disappointing the market . I dont think it is a big risk because polling dates are the vast majority do not really expect anything on tax until the end of the year and sometime next year. I think people of got the message that it is going to take a wild. I think that has been one of the factors actually which has columns markets in the last few months in certain sectors of certain markets in particular. Consolidated they have consolidated to a large degree. It has already been priced in. You quoted survey that shows only 5 expect tax reform by the summer. A very limited already. We are trying to work out where the fed goes on rates in the context of what they do with the Balance Sheet. What sort of reaction function will be in the market to messages about the Balance Sheet . A new drama. I think it is. Fed, imuspect, the not going to worry about it. This go through which im going to try to work out what that means. Things are going remarkably according to plan. Moment,cely at the inching up Interest Rates, they are on time and on budget. Wheres the bond market explosion . It has not happened. Its a price people by going the other way. Carry on as you are. The destination for Interest Rates is around 2 . They will turn their attention to the Balance Sheet as they say. Keep trying to manage this yield curve. It is going their way. You had one of the biggest moves up in yield in almost three months. That is a palpable relief of french risk. The tax on wednesday, the possible possibility i have said possibility. One in four possibility of the shutdown of the u. S. Government. Do either of those it shifted the bond market . Think i dont really so. It is all about the trading which will go on this week. It is fairly unlikely and even if it does happen, it has happened before. The government shuts down and then it reopens again in a weeks time. I dont think there is anything in this to move on to yields. What will be interesting is the big underlying story starts to reassess itself, broad parts of global proof going on right now. The trend is still upwards. What will really get that going is if we get a sniff of the europeans starting to pull away. Anna gives a more global edge. You dont really just briefly, you dont credit trump too much with that story . Even if he had trouble with political inertia. It started last year. It started last year. He probably took the markets too far, that is the big story regardless of trump. Anna we are going to be joined by the philips chairman and ceo, lots to talk to him about. The numbers a little bit earlier on in the day. What will their intentions be . Company, lock up around the lips holdings came to an end. What are their intentions there . We will talk to him shortly here on daybreak. 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. Manus it is 6 30 a. M. In london. Edit the Emperors Palace in tokyo. 3 at oned almost junction. The biggest oneday move. It is april 24, 20 lets talk about philips. Firstquarter profit of 400 42 million euros. The health care and provider says it sees its Growth Outlook on track. Joining me is the companys ceo. I see you are broadly sticking here outlook. The outlook unchanged for 2017. Given the strong topically here that about the u. S. Economy and the improving eurozone, and the lack of a hard landing in china, do you help some more in that outlet . Do you hope some more in terms of the great story from philips . I see the First Quarter as a solid start of the year. Lisa over all 3 sales growth, but for the whole year, we are targeting 4 to 6 sales growth. We saw the United States market a bit more flat, actually, caused by the dialogue around the Accountable Care act making hospitals a bit more careful. Compensated by strong traction in markets like china, india, and several european markets. I think we can have a positive outlook for the year, but certainly not to increase guidance. Manus not the moment of call for increasing guidance. You mentioned the Affordable Care act. We ha