A soft feel for a lot of these markets. Futures at the moment, 15 points on the dow. In europe, the dax down by 1. 4 ine point force the red. A break below 1. 07 for the first time in a team as per this is the kuroda pain train. Another four percentage point spirit as the dollar weakness kicks in, it is another weak dollar, sinking to another 11 month low. A weaker dollar, commodities go higher. That is intact. A lot to break down in this market ahead of those earnings across the oil majors. But now lets get to breaking news. I roe v is going to buy have the roe v stock appear over the last year. Let me throw up tivo here. To see just how it is done over the past year. It has come down over the past year, but it will surely rise today because it is trading right now for 9. 42, and it is 70 g offered for 10 10. 70. Pampers ofeenex, the whatever you call these settop boxes. Lets look at the shares in europe. Was onceell after what the most profitable carmaker in the world reported a loss for 2015, 311 million. Hitting down over there. Volkswagen, worth 3. 4 billion euros in 2014. That has gone to a loss of 403 6 billion euros this year. Of 436 billion euros this year. Net liquidity fell 25 . This is a company that needs liquidity in order to invest in new products. Although i wish they would just go back to the air cooled, handbrake, mechanical steering products they are known for. Rbs reporting the deeper First Quarter loss as it repays the u. K. Government for support received during the financial crisis, saying it will take longer than expected to resume dividends. Shareholders do not like that. The net loss is more than double, to 1. 4 billion. Amazon shares soaring in the premarket, getting back to u. S. Focused stocks after sales and profits topped estimates on robust amanda quick turnaround delivery. The kindle and the echo i do need i do not even know what that is. Carol it is a box that you talks to that you talk to and it plays music. David you just talk to it. Carol cory johnson has one. Matt i will get one and figure out how it works. If you had invested in amazon five years ago, you would have triple the money that you had been. S p byetter than the 50 . Shares in gilead are down after profit missed estimates ahead of its blockbuster treatment. John milligan said gilead is aggressively looking for ways to invest cash, including potential acquisitions. You may have never heard of auto leave, but it is a Worlds Largest acquirer of auto safety parts. Of him plate of replacement insulators for airbags, in the wake of takatas trouble with airbags. This is getting a lot of hits on the terminal. A lot of people are looking at autolivo leave this story in sweden and here. Back to you. Jon time to get some ecodata out of the eurozone. Inflation fell again last month to 0. 2 . Despite the forward Economic Growth, the price to the upside, the data highlighting a conundrum for mario draghi. Lets bring in jeff black from frankfurt. On the balance of things, is it good news for draghi . Will he take an upside risks to growth and a Downside Risk to inflation . Jeff i think it is good news. Mainly because it is better than expected growth print today. 6 versus not. 4, which was our consensus. I think mario draghi would take that any day of the week. Considering the First Quarter worries we had, this is definitely good news. We knew inflation was going to happen. That is because of oil. Jon do you think the base effects continue to weaken throughout the year . Far all of the signal so are that in the second half of euro area inflation will pick up, perhaps even markedly. It is still a long way from where it is supposed to be, but what we are really interested in here is the underlying momentum of the economy. That is why todays data is, on balance, good news. The fx channel, a lot of people said it does not matter as much to the ecb, is a wanted a year ago, two years ago. As the euro get stronger, does it become more of a headache for the ecb . Jeff it has always been something that policymakers have kept a close eye on. If it does start to get out of hand, then you will see policymakers making statements about the willingness, ability to ease Monetary Policy further. They can still do that. And if through the currency channel the financial conditions in the euro area start to tighten, then we will see a response from the ecb. Jon good news from the eurozone. Jeff black from the eurozone jeff black from bloomberg. Thank you. David the interplay between the Central Banks and the economies we want to bring in now somebody who knows about this, david stockman, the former director of omb under president reagan. Know about this interplay. This is my question. Which is the chicken and which is the egg . Are the economy is driving the economy, or are the Central Banks are the Central Banks driving the economy, or is the economy driving the Central Banks . The real economies in the world are freighted down with debt. There has been a massive credit bubble for the last 20 years. For ae had enough capex decade. As a result, we have way too many commodities. Commodity prices are falling. The export industries are now shrinking everywhere in east asia. This morning you saw taiwan had negative gdp in the First Quarter. Exports are down 10 to 20 in china, korea, japan, and so forth. When we had is a world going through a deflationary adjustment from a long credit binge that the Central Banks cannot do anything about. If they pretend that somehow they are stimulating growth, the only thing they are doing is stimulating more speculation in the Financial Markets. We are at month 89 effectively at zero Interest Rates in the United States. That i think is lunacy. What kind of pricing is that . That is falsification of pricing. Is only thing it does basically fuel speculation on wall street. David you have been consistent about this for some years, going back to your book. . Hat is different today is it the same story as 2013 . What is new . David it is the same story, we are just to the iceberg. We have had such a massive injection of credit by all the Central Banks in the world, to which of 30 trillion of debt today pit 230 trillion of debt today. A decade ago, it was 40 trillion. That is why china is falling apart. That is why australia is going into depression and why canada is in the tough shape it is in. Economya morningafter that the Central Banks are not prepared to deal with. They know one thing. If the only tool you have is a hammer, everything looks like a nail. Everything to them looks like ease further. Bear into negative Interest Rates. Isnt that crazy . Carol we want to bring in matt with an interesting chart. Matt i am looking at the stock performance. From the bottom of the financial crisis, remember, the dow was at 6000, the s p was trading at 666. Andopriately, gold in gold, cash in green, stocks have outperformed these assets since the end of the financial crisis. Why, if everything is so bad, have equities done so well . David i think that is the point i am making. All of this liquidity has never left the canyons of wall street or the equivalent Financial Markets in london and elsewhere around the world. The inflation we have had is inflation in the price of financial assets, not in the price of goods and services, because we have excess capacity around the world. A growthem we have is problem, but easy money cannot have the impact on it. Carol how do you fix it, at this point . What would you recommend to the political candidates . David demand the resignation of every Single Person on the Federal Reserve. In, andho would you put what would they do differently . David at the Federal Reserve . Whocannot have people believe you can control and 18 trillion economy with Interest Rates when we are at the zero bond already. When we have an economy that has 62 trillion of debt david be specific. Who agrees with your point of view on this . And what would they do . They wouldink what do is normalize Interest Rates by allowing the market to set the rate. In other words, Interest Rate of the most important price in all of capitalism. They ought to be set by supply and demand. The supply of real savings not credit created by the central bank that buys bonds but real savings balanced against demand for longterm investment. I think Interest Rates would be a lot higher, and they would move around and adjust as Economic Conditions change. Right now we have monetary central planning. They are setting the prices, taking the Interest Rate, and the inflation rate on a yearoveryear basis is 2. 2 encore cbi, so you cannot have negative money market rates for 90 months. So i was say they should be 3 or 4 in the money market, in the yield curve should go from there. Compare that to what we have. It means everything is mispriced. Real estate is way overvalued because the cap rate is being set by the 10year bond. You put an iceberg at the end of it. I would say we have already hit the iceberg and we are on a multidecade run of going nowhere like japan. Why in your thesis is their catastrophe at the end . Why is there not just this for multiple decades with a big debt burden . Do you factor that in . Is that something that just can happen to japan for several decades now . David the problem is, the Central Banks will not leave well enough alone. They keep trying to stimulate. Look at the madness going on in europe today. Negative Interest Rates in europe they are killing the banks, creating a huge political debate across the central bank itself. Look at japan. It is almost an oldage colony, and they have destroyed the entire yield curve on the japanese bond being below zero or close. 40 have near japanese bonds are trading at 30 basis points. In 40 years, japan will be an entirely retired country. There will not be anybody there. This is the nature of the distortion. The question is, we have got to allow get the Central Banks out of the pricing of debt, out of carol i think they would agree with you at this point. David they would agree with that because they are petrified of a hissy fit. Otherwise, they would have raised Interest Rates in march. David now you can see why we love to have David Stockton on. Lets go over now to vonnie quinn. Polandsupport of british membership in the European Union squared off today. The bloomberg the brexit debate, hosted by francine lacqua. Is valuable for jobs, it is valuable for investment, it is valuable for the future prosperity of our country. What they tell us is that they do not see any way of getting that same Market Access from outside the European Union. Situation in the u was not satisfactory, and it needed radical change. I am sorry to say i do not think that medical change that radical change was met, it was disappointed. On balance, not an easy decision, we ought to leave. Carol the referendum vonnie the referendum on e. U. Membership is june 23. In southern california, a demonstration against donald trump turned violent. While he was speaking nearby, hundreds of protesters threw rocks and stomped on cars. Police arrested 17 people. Global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world, i am vonnie quinn. Carol . Carol coming up, after a week of inciting, Deutsche Bank is losing one of its Supervisory Board members. Details coming up next on bloomberg. Jon the ftse 100 is deep in the red after three quarters of 1 , led by hsbc and bp stocks. We will talk about those companies in a moment. I want to cross over to germany because after a week of infighting and turmoil, one of Deutsche Banks supervisors will step down. He was criticized for being overzealous in requesting internal probes of company executives, including the bank chairman. I want to bring in Michael Moore from london. The first question everyone is trying to get a handle on is whether this is about an executive board member that overstepped the mark, or whether this factors into the Overall Program of keeping costs down. Which one is it at this point . Michael i think that is the big question. I think we are trying to figure that out. Hasan, the Deutsche Bank been criticized for not just being slow but for spending so much on these investigations and not wrapping up the outside probes quicker. It has been an overhang for several years. John cryan has said he wants to be this up. But this is a very unusual situation, the cousin of the public nature of the fighting. Having multiple Board Members coming out and speaking out against another board member, not something you see very often. Jon is this the end of the argument . It came to light a couple of weeks ago before the Deutsche Bank numbers came out. Is it the end of the argument on who was the peacemaker, who made it a final decision to push this get rid of this guy . Michael the chairman was brought in with his mandate of fixing some the compliance issues that Deutsche Bank had, wrapping up the legal issues, and some are out there saying, what did you expect when you brought an experienced lawyer in with his mandate . He was going to be aggressive. Clearly there was a divide them, and it is interesting that act lightner withot been very public his criticisms. It has been other members of the board speaking out against thoma. So the chairman seems to be in charge here, and he has had public displays of support him some of the shareholders in recent weeks there is in recent weeks. David coming up next, who is going to be the next treasury secretary . We will talk about that next. Jon this is bloomberg. Lets get a check of the markets for you. Futures are lower, but the story to the fx market, a weaker dollar, an 11 month low. What does that mean for dollar yen . Stronger japanese yen. 107. Through more pain for governor kuroda, dollaryen down by another 9 10 of 1 . Up another full percentage point. Matt miller now with some big calls. Matt i am starting with a small one. Assetoup global strategists are thinking small after cutting Global Equities to slightly underweight from neutral. It prefers being overweight tobal Government Bonds highyielding once. Electrolux was upgraded at barclays based on improving sales of Kitchen Equipment and vacuums in the u. S. Stayingin europe are higher, and sales and brazil are holding up. Back in the usa, Bankamerica Merrill Lynch has downgraded shares of ford and fiat chrysler. Ford cut to neutral from a buy equivalent despite reporting record profits yesterday. Was it yesterday or two days ago . Yes, yesterday. Fiat chrysler load lowers to underperform. David . David it is time for bloomberg trends, where we look at top stories on the terminal. Caroline came in this morning and said we both read the same one. Take us into it. Thel c it breaks it down by potential president ial candidates. For hillary clinton, she could be one of the individuals. Donald trump is considering carl icahn. David co and jack welch. Trump has same he would name carl icahn at one point. Carol we know him well, activist investor. David ted cruz has phil graham, a former senator. He does know a lot about the economy. Carol he also talked about mitt romney. David mitt romney as to hurry secretary as treasury secretary, there is an idea. Carol a really good match. It just tells you something about the psyche, about how they are thinking. She has been out there for the individual investor, out there for consumers, so i think that is interesting. Hillary clinton, another possibility sheryl sandberg. David part of my reaction to this is, the clinton candidates are really serious candidates. Carl icahn, jack welsh yak up these are serious people, but as treasury secretary . Carol we will see what will happen. Coming up, everybody, to brexit or to remain. That is the question in everyones mind. That is coming up next. Jonathan this is a bloomberg go. Breaking news on valeant. Matt the basic story is they are saying that they have added no items that require restatement and they are in full compliance with the credit packs and senior notes. They say theres no concern of default since they have filed the 10k. They do say that internal controls were not effective. I am watching the headlines role across the terminal now. That is fairly interesting. They do plan to file statements for year and today. For year end today. They say there was existence of Material Weakness. This stuff, and armstrong is more of an expert, is kind of expected i would say. The most interesting story for me is from yesterday that it popped up to millions of dollars. Carol lets bring in armstrong. Youre looking at the 10k, what stands out at you, drew . This andt they filed that there are no major, major red flags. The stuff about internal control, we have known that this has been under significant pressure and that there are weaknesses that they had to restate or they said they would have to restate some of these and had campbells play out in public. I think what people will be pouring through later today is that they will be going through product byproduct, unit by unit and say, how are the underlying