The dax down by about a third of 1 after setting a fresh 2016 high just yesterday. Futures firm, dell futures up about 10 points. Switch up the board quickly. Dollaryen is up the most. That is a weaker japanese yen on a bloomberg report that the boj may offer banks loans with a negative rate. Should that have a fundamental impact on the fx market . We will discuss that later on. Crude keeps keeping crude keeps creeping higher. Shares in alphabet definitely at the top of my list today. Biggest loser after posted earnings that fell short of analyst estimates. Profit margins can be pressured by higher cost for mobile phone customers. They are more costly to get. Dramatic Advertising Technology that is more costly to google to use, or it had lower margins. Alphabet shares, not including todays trop because it has not opened yet, but over the last two weeks they are up 40 . Microsoft has had a big run but disappointed on earnings for the First Quarter and has had sales in the Current Quarter that fall shales that fall short of analyst estimates. Results are being heard by weaknesses in onetime purchases of software. We all used to buy software as the company tries to pivot into cloud and subscriptionbased products. We all have to pay taxes. Microsoft shares are up 30 over the past two weeks. There you see a couple of major tech stocks that are falling premarket. German autos are all down across the board. Daimlers Diesel Engine emissions came under scrutiny after the carmaker was asked why the u. S. Justice department to investigate the certification process of its cars. Anything having to do with diesel and emissions ways on on sharesons weighs dramatically. Volkswagen has been running up, up on the last in the last 10 days on the news that the Justice Department settlement will cost only 10 million. All german carmaker shares are heavily weighing on the dax. Speaking of heavy, shares in apple have officially entered a technical bear market territory. That is what we call it when the stock falls 20 from a high that has happened since the high that it hit on february 23 last year. It was at 133, now trading at one at 105. 97. 44 analysts out of 50 call it a buy. Ck call it a he also calls googles stock, out of that, a buy. Vonnie ge out with earnings in the last hour. The effort to transform the Company Seems to be paying off. Shares in the company are lower and ascending. Karen uber hearts is here. This is potentially a margin story, because most of the segments Beat Estimates including oil and gas. Flat margins were from a year ago, the industrial a 40 , 50 gain yearoveryear. Little short. Overall, they have been doing a very good job. Wasie even alstom accretive. I want to read a quote from jeff immelt. A stronger ge is on track to meet investor goals for 2016. You say that things are getting simpler . 12. 8 compares against different number. It was 14. 5, and the 17 is for the year. The First Quarter is also the lowest quarter in terms of margins. They can still make that 17 . Vonnie talk about the shift to digital. It announced today a partnership with oracle. Bign i think that is a deal. It is hard to move the needle on ge. It is growing at over 20 . We have done work on it with the software analyst, and he believes they are going to be a player. I do, too. Funny cup we will keep an eye on that stock vonnie we will keep an eye on that stock. David we will get more earnings out. We are looking at mcdonalds and caterpillar. Right now we want to turn it over to matt to get an update on where we are on earnings so far. Ea, if you take a look at 123 companies have reported. One of the changes is some Energy Companies have come out and reported. Southwestern, and camera morgan are now out. Down 51 . You probably expected energy to do poorly. It has met your expectations. But financials have taken a hit, down 17 . We also see tech stocks that are down 6 . All in all, the companies that one reported are down 6. 4 the earnings side. Sales, we are seeing some growth here. That is a good thing. The other interesting thing to take away from the ea page, click on the historical analysis chart down here, and you can see what analysts are forecasting for sales and for earnings going forward. To getorecasts continued taken down, so we expected a big rebound in the second half of 2016. No longer the case. David we are going to turn to Oppenheimer Funds portfolio manager. You take a larger view of the economy and markets, but where do you think earnings are taking us at this point . From a topdown view on the u. S. Economy, we have a hard time seeing Earnings Growth accelerate much from here. We are at the later stages of the business cycle. We are in a slowdown regime for the u. S. Economy, which means we are still growing at a potential, but we are decelerating. The real problem, nominal gdp growth at best has been 4 . When you are at that low nominal gdp growth, it is hard to get meaningful higher Earnings Growth from here. We feel that the stock market is valued to slightly extensive on a pe basis. If your multiple expansion can happen through more monetized stimulus, at this point you have much more upset in the stock market. You need the Earnings Growth. David what about the relative strength or weakness of the u. S. Dollar . Now the dollar has come off some of the highs. Shouldnt that help earnings . Alessio where we could get the biggest upset surprise, and what i just said could be wrong, is through the external sector, whether through the u. S. Dollar we had a twospeed economy, the Manufacturing Sector suffering because of the dollar and the Consumer Sector into suction doing much better. Surprisenk the upset could come from abroad, especially as we see some green shoots in emerging market. If the manufacturing powerhouse from outside the u. S. Asia is that picks up, we could see weakening of the dollar as a result because of more portfolio flows through emerging markets. Weakening of the Dollar Strengthening external demand. But in that environment, i would feel more comfortable with them owning emerging markets emerging equities directly than u. S. Equities. Jon you do not see the potential for higher earnings or further pe multiple expansion. You tie that together on a balance of risk, is this a bump along the top for a while longer . Alessio i think we could hang around here for a while. Latter, aobably the balm for a little longer. But eventually, i see more Downside Risk for developed equities in general. Emerging markets have rice more of the bet deals related to Dollar Strength and commodity prices. Jon do you think you have to withat the relative value emergingmarket stocks versus developed market stocks . Is that where the performance was in the First Quarter and get out of stocks and follow the money . Withio i am going into q2 the thought that that relative value, e. M. Versus to let equities. We are seeing wage pressures in the u. S. , and if we get weakening of the dollar and trades,ily deflationary especially with the bouncing back up in commodity prices, bonds will have a hard time. I do not think q1 for bonds was great i mean, q1 for bonds was great, but it will not be a momentum indicator for q2 at this stage. David alessio de longis, thank you very much. Vonnie quinn, we have some first word . Vonnie one and 150 companies signing the paris accord of the United Nations. Countries have agreed to reduce fossil fuel in missions by changing the way to reduce fossil fuel emissions by changing the way they power factories and fuel their cars. And the president will have lunch today with Queen Elizabeth ii. He met leslie with he will meet with the Prime Minister later today. In an opinion article for the telegraph, mr. Obama wrote, the European Union does not moderate british influence, it magnifies it. Global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus fighting wordsd, from the president. The queen will not be allowed to weigh in on this, will she . Time,n about 24 minutes he will get on marine one and head over to windsor castle, where he will have lunch with the queen. Coming up, though, back to the markets. Japanese stocks up, the yen down. The bank could be talking about taking their Interest Rates policy one step further to loans. Details next. Vonnie this is bloomberg. Maker of mercedesbenz is daimler says it was asked by the u. S. Justice department to certificatione process of its diesel cars. There is a complaint that mercedesbenz violated the u. S. Missions standards, but u. S. Emissions standards, but the company says it is baseless. Says damage from the earthquake in japan may hurt its operating. Seven months after apple launched its Movie Service in china, it has been shut down. China just impose new regulations on content. Offering loans with a negative Interest Rate. The yen has dropped seven weeks against the dollar. I am happy to bring in our international correspondent, simon kennedy, in the city of london. Lets go over the plan that may be implemented in japan. Any idea what the what theyre going to do . Simon the idea that bankers can go to the bank of japan and borrow from it and that at some point they might get a negative Interest Rate on those loans jon the pushback on this plan is similar to the pushback on the ecbs plan, but even more companiesapanese sitting on a pile of cash. It is a demand problem, isnt it . Simon a lot of people will say that it is not a problem with the supply of money, it is that there is no demand for it. And consumers need to take the money there. Has is a problem that arisen for negative Interest Rates. Jon this is not about rates, this is not about the expansion of money supply or the balance sheet, it is all just about an adjustment of the price of money to banks. Simon unless this is part of a package. Be idea that they might going more deeply into negative territory there on the main rates. Be adea that this would carrot for the stick of other things, that is what is pushing down value. Jon next week, more banks anticipate more action from the boj. Is this the only option they have got, that they had to do Something Like the ecb is doing . That you get the sense they cannot not do anything. It is a fixed like draghi has faced in the past. They deliver, the market punishes them. It is lesser of too the lesser of two evils. David i want to bring you in here. The bank of japan and the ecb and the fed, it seems to be a big a move away from negative rates come a form of qe. What does that do to the fed, ultimately . Alessio in europe, they are trying the negative rates that fireback, so there is this issue that at this stage and this goes back to what jonathan was saying without enough credit, this a compass is little. In the case of the bank of japan in particular, part of a package that may actually weaken the yen and get a little bit of pressure on the other side, combined with fiscal policy, there is some talk that they may postpone or there wouldon be physical expansion there would be fiscal expansion. You would address partially the lack of demand for credit on the economics side of it, as well as make it more effective on the weakening of the yen. How doable that is . If the private sector does not come in with a demand for credit, this is buying time. Jon from the boj to the ecb, the ecb buying time he was so defensive yesterday. Did he give germany a big enough slap down . Simon it was a lesson that the more you go on, the more i will have to do this policy that you do not like. That was a shot across the about of germany. Kennedy, thank you very much for joining us. David please stay with a spirit we are going to turn next to the fallout from volkswagens in missions volkswagens emissions scandal. We will bring you from the that we will bring you the latest from their headquarters in germany. On bloomberg. Jon four hours, 21 minutes into the session in your. Stocks down across the board. The dax up by 1 10 of 1 . The ftse, down by 9 10 of 1 . Switch of the board quickly. Dollaryen, on the back of the report here that the central bank may offer loans with a negative rate. That has weakened the yen at 110. 62. . 47. Bucks david we are going across the channel to the continent, to germany, as volkswagens Supervisory Board is holding a crucial meeting on the state of the investigations into their emissions scandal. Compensating consumers in a 10 billion deal. Ryan chilcote joins us from wolfsburg, germany. What are we expecting from this News Conference today . Ryan we are expecting to hear what the results of that conversation has been. They have been in there for hours. One thing we expect is how much money they have to set aside that they have to pay. But then they have to decide on this 10 billion as part of this deal with the department of justice. The actual provision that they take today may differ from the bat. We are also going may differ from that. They are also going to discuss bonuses, and how much shareholders can count on in terms of dividend. How much money they can get back. Those are three Big Questions we will get answers to at this press conference. David the hits keep on coming with german automakers. We have a daimler story today. Tell us about that. Ryan even more recently, there is a report out now that the German Government may recall as many as 600,000 cars on the back of emissions concern. The daimler story, daimler came up with earnings that beat expectations to get a share price down. Why, because we also learned that overnight daimler is cooperating with the department of justice, the investigation into how they certify their emissions with the department of justice. Saying, asked daimler to investigate the certification of their emissions process. There cfo was on and he hasonded to one suit that been filed by a gentleman in illinois, claiming that some of the clean diesel mercedes are not quite as clean as we all thought they were. He said he thought that suit was groundless. But investors are concerned, and we have heard problems with other european carmakers. David those pesky lawyers. Ryan chilcote is our own bloomberg colleague. Lets go to matt miller. A couple of notes from analysts today. Amex kicks it off, entering friday on a fourday winning streak, up roughly 6 , on pace to the best week of gains in nearly three years. The shares are down today, after Deutsche Bank cut amex to a hold from a buy, saying rising expectations limit upside. Also, shares of the cell are falling as they agreed shares of visa are falling. The deal may not be completed until june 30. Visa is going to boost the Cash Consideration in europe to almost 2 billion, replacing a performance based component of the originally agreed purchase terms. Now prepare to have your minds blown. Cocacola could be the next big target for ab inbev to create megabev. Recentlyt says abi mentioned a new Incentive Plan called 2020. Pro forma mega brew would have 26 billion of consolidated revenue in last years plans paired that leaves a gap of 44 billion, which would need to be bridged, with coke coming in at 44th at 44 billion of sales last year. Starbucks posted earnings that missed estimates, revenue that missed estimates. It rose 10 to 5 billion by the end of the quarter, but that missed the average production of . 53 billion. Vonnie coming up on Bloomberg Obama landed in london last night, hoping that he could help keep britain in the European Union. Why tension is building, next. Good day from the city of london. The ftse 100 down by 1. 4 percentage points. Markets andon the what is happening in the u k, but first lets get to vonnie quinn with first word news. Insidersop republican have been told that it is a net. Has sent runner emissaries to ease tensions with party leaders. Trump will raise money for the party if he is the nominee. Moren 17 years ago than 70 years ago, a u. S. Nuclear bomb devastated the city of hiroshima. Reportsusiness daily president obama will be the first sitting president to visit the city. President is in london now, meeting with the clean, followed ,y meeting with the queen followed by a meeting with David Cameron. Japan has been the fourth country to test fly new planes. The government has not decided whether to put the planes in production. , the built by mitsubishi one that built the zero plane in world war ii. And breaking news now on caterpillar. Matt caterpillar out with earnings that missed estimates. . 67, meeting in the estimate of . 68. It is cutting the high end of its year and sales of you. 643 quarter revenue at million. T quarter project per share, . 67. Analysts were looking for . 68. 9. 46 billion of revenue in the First Quarter. Slightly eating but cutting its first year slightly eating but cutting its first year view. Looking for stocks to come down. Now down 3. 4 in the premarket. Getting beaten up in london as well. In the u k, attention on the president. President obama landing in the city of london yesterday, hoping to urge the u. K. To stay in the eu, which is causing controversy. Francine lacqua joins us now. If you cast your mind back to the referendums, it is the first time in living memory, we see a sitting president writing in an oped. He says do not mess this up. He says he does not want this to mess up the trade relationship. A lot of is a lot of people surprised ot this is economics and math. If the u. K. Leaves, it will affect trade with the u. S. , argue willrexiters get us closer to the u. S. Jon and the Daily Telegraph is some part is somewhat sympathetic to the brexit. And then th