Welcome to bloomberg daybreak europe. Our flagship show im all anna edwards. A very good morning to you. Im live from the anna. The status quo is simply not enough. That was the verdict of the market here in the last 24 hours. It dropped from 5 , but we are at a Pivotal Moment at the opec nonopec relationship. Is fundamentally disappointed, there wasnt enough discussion about an exit strategy in april of next year and compliance. Can they all stay compliant as they go into the bumper season . Forget, frack attack. Thats the risk to the price of one. You wonder when opec needs a lesson when you look at whats happened in the last 24 hours. Lets talk about whats happened in the asia equity market and other asset classes. The Pacific Drilling down just a 10th of a percent of we are seeing witnessed coming through in some energyrelated companies. Commodity currency is always also on the back burner. We have this really fascinating polling coming out. , since theken Manchester Attack, showing only a five percentage point lead for the conservative party in the latest polls. About a 21king percentage point lead just a few months ago at the time the election was called. Of course, remember that manchester and tax attack to bear in mind. Lets roll on and show you whats happened or what is set to happen, perhaps, a pretty flat open, a little bit of downsized. Global stocks on their best week. Around what trump was doing in ination to the fbi, at least the moment. Six weeks in games in the equity marketing. The sea and white showed some interesting news around it. It was headed for its strongest week against the dollar, lots of speculation about the pboc intervening in the market to bring that number back to where they want it. We also have this interesting story on the bloomberg and we will get more details later about how the pboc wants to change the way they want to get the you want to match the dollar. Anna, thank you. In the u. S. , the Justice Department has vowed to challenge an Appeals Court ruled that slammed a travel ban against six muslim relations. They say it drips with intolerance. Donald trump is on track for his First Supreme Court showdown. Investigators are reportedly focusing on a series of meetings held by Jared Kushner as part of their probe into russian meddling in the 2016 election and related matters. According to the washington post, people familiar with the election, President Trumps soninlaw and influential white house adviser is being investigated because of his supposedly involvement with the russian meddling. He has not been accused of any wrongdoing. Itna plans to change the way calculates its daily reference rate against the dollar. According to people familiar with the matter, it will tech elite cyclical adjustments factors that might impact the swing. A are tweaking and testing their model and will start to provide quotes using the new formula soon. The conservative party lead had narrowed after the Manchester Attack. The yousef poll showed them narrowed to five percentage thets, investors also sold currency after the First Quarter gdp needs an estimate. Oil has held its biggest lost in three weeks as opec moves more supply cuts. Claimedde and crude had 51 a barrel this week and they said more would be done to drain the oil glut. Alexander novak told bloomberg that producers have mobile have more polls if needed. Is it conforming to levels, but it takes a close look at the market and of course what is happening there. Then they are can be an external rate meeting of the recommendation or conference to adjust actions. Japans court consumer inflation gauge has risen for a fourth month in april, the longest run since 2015. 3 . Mer prices increased its still far below targets and weak pressures. 2 limited gains ahead. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg. The oil price really coming into Market Sentiment here. You got a stronger yen that is coming in the hong kong markets. Looking at the time markets, if it 17 year highs. No stopping the costly another record high there. Energyachers producers largely improved. Cut, thead a ratings most in four months. More bad news for the commodity trader, which has fallen 31 so far this week after it cut its rating once again on the stock. Nintendo at a sevenyear high, this is our Morgan Stanley raised its forecast for switch sales. Japans cpi is reflected in this area 7942, you are seeing an upside that cpi is excluding fresh fruit with a rise of 3. 1 on april year year, but still upload this green line, which is the target of 2 . A lot of work for kuroda to do. Back to you anna. Thank you very much. Trumps. President donald i nato leaders in brussels yesterday, telling them to pay their fair share on countering terrorist threats. 2 is the bare minimum for realonting todays very and very vicious threats. If nato countries made their full and complete contributions, then nato would be Even Stronger than it is today. Trump said that 23 of the 28 members were not paying what they were supposed to be paying. The president is in sicily for the start of the g7, making his debut along with three other World Leaders. Theresa may, and unwelcome across, and our own matt miller is there and he has a cabin alongside. Talking the last 24 hours. He arrived, produced a bill, tell us about the language. President trump yesterday in brussels having those needing meetings. Nato its a different response and reception he received in brussels that he did receive in saudi arabia and israel, which was much more coming. Specifically with one interaction that has gone viral and has been analyzed is the handshake with president mccrone, where it appeared that macron gripped very tightly his hand. Then the president was moving quite forcefully through the crowd of nato leaders. Link would aside, the policy yesterday was also quite interesting because speaking at a memorial unveiling ceremony type of event for 9 11 as well as the berlin wall in brussels, President Trump actually called on 23 of the 28 nato nations to increase the amount of money that they are paying to be a part of the alliance and he says that will help to better defeat terrorism. President trump walking that line of nationalistic rhetoric that got him to the white house, but also trying to reset rhetoric somewhat here in europe to win over and improve upon his reputation. Technically, the reputation in europe very much night and day from what we saw in the middle east. I would anticipate that to continue here at the g7 meetings. What position can we expect trump to take at the g7 . Weve heard a lot about this meeting that trump does not agree with the rest of the g7 on. Its a great question. I think it all comes down to the tight rope of globalism versus nationalism and how President Trump looks to walk that line. On issues such as the paris accord, issues such as Global Economic regulatory regime, particularly the latter, weve seen him take a more global is the type of policy. In terms of counterterrorism, thats where this president feels he can work more with the g7 counterparts and he will meet later this morning with japan Prime Minister abe and he will attend a luncheon with g7 leaders. Later tonight, he will go to the orchestra with first lady of melania trump, who has accompanied him for all of this First International trip. You just say that. Thats the backdrop. We are on roadmap. What a to the european leaders expect to get from this g7 . There are three World Leaders coming to this stage and they all want to be revered for their first g7. What do they hope to achieve . Four of the seven are new leaders. Four of the last seven are gone now. All they wanted to achieve, everything in italy, which is now running the g7 presidency, had planned was to push aside the Manchester Attacks. The focus was mainly on terrorism. Not just from the angle that donald trump brings from the u. S. In the fight against isis, but from the standpoint of the europeans, which is the fight against local terrorist attacks they had. To fightey join terrorism if the u. K. And the u. S. Are having this bilateral spat about sharing intelligence . And if the u. S. And everyone else is having a spat about finances . Said 2 , find, maybe they can do that by 2024, which is a long way away. Even then, she feels all the cost she spends on protections in her country come up maybe on a Domestic Police force, should be counted in that 2 number. From veryoming different angles here and itll be interesting to see if they come across with any kind of agreement on terrorism fighting. Thank you very much for both joining us from the g7 meetings. Weve got all the news angles for the cover. We will be back later in the program with more coverage. Stewart, fascinating to see the conversation yesterday about nato and the amount of spending on defense. This has clearly been a hot topic issue on the president ial campaign and it continues to be so for President Trump. Clearly wants to spend more and the u. S. Seems to be planning to spend more on defense. Tracksthis thing that u. S. Spending of gdp. This is backwards looking of course, but we know the president intends to spend more on his budget, but we dont know much more about the budget or fiscal plans, do we . No we dont. There has to be more defense and military spending in general, and trumpet is trying to ensure everybody pays their fair share. Are right, the fiscal plan that trump has for the u. S. Is still not very clear we has some details come up that its still more about aspiration than actual things he can deliver. And there are many aspects of the budget being put forward that simple he wont get past in the house. This will be an interesting process and he sort of places his Opening Statement in front of the house. There is lots more to go and there will be a fiscal stimulus, but it wont be as large as he stated he will like, but it will be positive and help the u. S. Very good morning to you from vienna. When i look at this gathering, theres a lovely story written about the g7, and its multilateralism. This is the antithesis of what trump wants to deal with. Who does the u. S. And europe do theness with . You can see secondbiggest export market is the United States of america. There is a lot of play on trade as well, isnt there . Absolutely. One of the things is that there were fears that a Trump Presidency was going to be very isolationist, very just looking at the u. S. And actually, hes become, not the best not exactly a global statesman, but hes recognize that its not just about u. S. Interests, but global interest. And trade is very important part of that. A good thing, given what we worried about before. It takes place at the foot of mount etna, at a meeting that perhaps wont be too volcanic. Thank you. Stay with us and we will be speaking with Eurasia Group president ian plummer at 11 00 u. K. Time. Here are some highlights for your day ahead, National Campaigning resumes today in the general election after a pause in the terror attacks. At 1 30 u. K. Time, we get u. S. Gdp data. Oming up next on the program weve got a packed one. Why . We getlump, the analysis right here on daybreak. This is bloomberg. Will come back everybody. 6 20 in europe. Nonopec countries are cheering on this deal. Prices,efforts to lift crude is trading sharply lower as the market is less wondering of how the cartel plans to exit this strategy. Taking us into what some of the major oil players have been saying about the deal. Weve considered various 12narios from its 10 nine to and we even considered options and aller cut that withs are solid a ninemonth extension, its the optimum. Atthe factions can be aimed raising or reducing the amount of cost depending on the market situation. Depoliticize the oil market and to do everything as necessary to stabilize the market. The voices of the great and opec andand the nonopec deal, i caught up with last night, our guest is the chief oil analyst. Good to see. Latenight . Indeed. Was the fact that we didnt get anything extra or did anything go on that we perhaps should have been aware of . A little bit of both, but perhaps we didnt get any extra. Even a few weeks ago, the market was contemplating if we were getting a sixmonth deal. Then russia and saudi arabia it came out sixmonth ahead and announced a ninemonth deal. The markets that there must be something extra at the meeting and we got nine months. We were both in the News Conference afterwards. What struck me and you said it, if we listen to the language in regards to export, and this is your drumbeat, isnt it . Cut all you want. Give us the interpretation of him on the exports. I think it will recovered next week anyways, but the crux of what happened was opec saying we havent done enough on exports and we have to cut exports. We are already cutting exports with the u. S. , it hasnt shown up in the numbers yet, but its trending lower and we are going to cut exports substantially. I did some numbers afterwards, and i think they can be below 1 million in the summer, compared to 1. 3 million in q1. Me loseant just give things like the market is going to recover. Are they going to recover 5 or 55 bucks . Where am i going on did. I was a 55 what i think is going to happen, stock prices will take a little bit of time to recover around 55. I think structure. So what theyre aiming for, that is showing up again. There is a lot of inventory around, and hopefully over the summer come up by the end come up get the core flattening out. I take it forward prices die. Foreign prices up. Foreign prices up, you are right. The other technical point from novak, who i set down with after the News Conference, and the kuwaitis language that they used. Data and adherence or complaints seems to be up in the games estate. Actually. I think the other thing, he did say that we have expanded and they are going to start focusing on all these data points including exports. I caught up with him at the delegates afterward who confirmed this. Thats why they are going to work with exports to get inventory down to the fiveyear average. Love to makeo be a recommendations in case the inventory drawdown isnt happening. What else can be done . I think that is important. Does that cap the rumor mill of the 24 hours into the after meeting which is, have a talked about and its extremity . Exit strategy . There wasnt enough of an exit strategy discussion. Was there for you . I think there was. This is the first time the iraq minister and bloomberg was there and ask the same question and they answered saying, we are not going to crash the market as soon as the deal is over. We want to get about 5 million that came from iraq. They want to institutionalize this framework. I think for the first time ive heard from delegates and the ministers, they know they cannot go back to producing at 22016 levels. Think its very clear that that this deal could get extended, or the wording will be very clear in saying, we are not going to increase some special production. Substantial production. I spoke to the uae minister and he said they are relaxed about shell. Is it shall its seventh inning or is that splendid isolation of a continual slow . Absolutely going without saying. Permit, iood as the think he is right in the longer term in the sense that we do have production falling from all parts of the world, demand is still growing strong and we will need shell to balance. But right now, inventory is high and thats what opec meets to compensate somewhat for the growth. Thank you so much. Great to see this morning. , just the shape of the curve. Next, we will be finding out more details of what china has been up to. We will discuss their plan to change the fixing method and what cap that could spell for its currency. There seems to be a plan to reduce volatility. We will get all the details. This is bloomberg. 6 30 a. M. Ingone the city of london,; 30 a. M. In the nfl welcome back to daybreak. Lets get into these markets. Oil is just managing to stabilize it self. Good morning. Good morning. ,ou know all about oil extending its biggest loss in three weeks. 5 , a in almost disappointment that opec didnt go further than what was already priced into the market. We are seeing the impact on asian equity space today. We are looking around 51 a barrel wtis, but 62. 48. 62. Here you can see that on the topics, it is Oil Explorers leading the decline. Also looking at the u. N. Recession, its heading for its biggest weekly gain in four months. The pboc has been intervening to support the currency and both the yuan and dollar has rallied since the debt downgrade. Some speculation that state backed funds have been buying chinese shares. We also heard today that the pboc plans to change the way it changes its daily fixes, perhaps to bring more stability to its currency. There are looking at currency that is not gaining, sterling is the worst performer against the greenback this session. The dollar has been trading sideways all week, but sterling is back with one point 28. The conservative party in the u. K. Narrowing its league after the Manchester Attack and firstquarter growth is missing estimates. Taking a look at the 10 year treasury yield is down about one basis point. Its coming 20 year lows, spurring loss wall street to slash costs. They are expecting more fed tightening and we are at its closest to lowest since november since the trump trade is fading. Thank you very much. Yourberg is available on bloomberg at. Becomeety, tensions may at the in meetings summit. They could have gone with a volcano picture, it would have added the same sense of drama that precedes this meeting. President trump favors a protectionist trade policy that is out of sync with other World Leaders, especially angela merkel. Passing the white house and Rex Tillerson said of this meeting trump