Will join us on macys earnings. Jon futures negative, down by 48 points. Europe come after two days of gains, weve rolled over a little bit with the dax off by. 8 . You at italian banks specifically. Bottom sachs calls the after a day of losses. Euro. Nger in the face of a lot of slide in the treasury market, 10 year is in focus today. Yields still lower, down by a basis point. That call on the yield. Does not look so outlandish today. We will talk a lot about the dollar today. Geetha ranganathan breaks down disneys disappointing earnings. How the yen is affecting toyotas bottom line. Guy johnson has goldman is latest call on the dollar. Ahead to theooks vote on Dilma Rousseff. Plummetingisney premarket. It posted secondquarter results that missed analyst estimates. ,e welcome Geetha Ranganathan live from princeton. Lets talk about the shortfall and reaction here. Obviously, they missed both topline and bottomline. Most of their media peers had reported better results. What happened there, we saw some mixed results. At thestrong Growth Studio division. The shortfall was on the tv side. Issuesan any fundamental , it was a lot of noise, affected by some timing issues. The timing of certain College Football playoff games that happened last quarter as opposed to this quarter. That curtailed tv ratings and address. And add growth. Theres been a lot of hyperfocus on that segment, which caused the stock to fall. Amanda espn was hit hard by that shipping said shifting schedule. The top line, that has been a focus. Will it ultimately be that tb division that people are watching for structural changes in the ad market . Under tv segment has been intense scrutiny, especially after the media selloff which happened last summer. After espn came out with slightly negative outlook, it has been an area of hyperfocus. The underlying thesis for the stock and for the sector are intact. We have seen a rebound in add growth across most of disneys peers. Add growth was fairly decent at espn and abc as well. , what most investors were fearing was whether there was going to be this dramatic my drastic breakdown that dramatic, drastic breakdown of the tv bundle. We will see some erosion of subscribers, but it will be more slow, nothing dramatic or anything that changes that longterm story. Amanda Geetha Ranganathan from princeton. Still ahead, lots more on disney. Watching the stock at the open. Rich greenfield has a sell rating. Amanda hes been dead right on that stock. Jon toyota expecting to see first profit drop in five years. For an Exchange Markets matter. Craig trudell joins us live from tokyo. Yen giveth and the yen taketh away. You had ¥2. 3 trillion in profit, the are expecting that to drop for march. Llion you see expectation forprofit to take a hit from currency. You want to talk about operating income, they see ¥900 billion impact from changes in forex rates. We are talking about a massive change in how they see operating profit for the upcoming year. This is after several years in which you saw huge booms from yen, including a year in which they had ¥900 billion in their favor. You see this swing back of the pendulum to the yen working against the company. Jon we have had three straight years of record annual profit in this company. Read on how to get a the Underlying Company and what is happening with sales. Craig sales are fairly steady. Year, north of 10 million sales. During the First Quarter of this year, toyota took a hit from a production shutdown in japan related to an explosion at a steel supplier. Not sound like much, but when you make 40 of your cars and trucks here in japan, that is a big deal. It will be interesting to watch Going Forward how much of a bite they feel from the earthquakes last month. That may have an impact as to whether they can stay ahead of volkswagen for the full year. They just slipped behind whole swag and. Kind of volkswagen. Have these disruptions to deal with here at home. Jon Craig Trudell staying late for us in tokyo. One big question, has the dollar bottomed . Predict the dollar would advance 15 over the next two years. The capital of the Foreign Exchange market, the city of london. Guy johnson, a call from goldman. Difficult is the word, maybe . Latest trade is less interesting than it may appear at first. The market is still expecting the dollar to strengthen from here. Expectation the market pots expectation misreadings the fed. Weve heard from bill gross saying the market may be getting the fed wrong at the moment. Is saying by gold because Central Banks are out there trying to debase the currency. Maybe we should be buying gold. Goldman sachs not quite so convinced about whats happening with the dollar. They will be interesting to see how this one is going to turn out. Youve got paul singer going after gold and the others saying the dollar has a run. It comes down to a debate over the fed. If the Federal Reserve goes above Market Expectations when the market is not ready for it. Guy the market in no way is position for the fed to do anything in june. The fed can talk until its blue in the face about june being a life meeting. They are unlikely to do anything that is going to upset the market. There is a circular argument going on right now. Maybe it is the fed listening to the market rather than the market listening to the fed. Johnson, you and i can talk until we are blue in the face. Is finally here, the senate in brazil expected to vote on Dilma Rousseffs impeachment. Julia leite joins us live from sao paulo. It is going to happen today. Give us a sense of what will take place. Julia the senate is about to start in about an hour. 60 or 80 senators are expected to speak, they all have 15 minutes each. Be a long day in the senate. We are expecting them to start voting after 7 00 a. M. Some lawmakers have said it could go until 10 00 p. M. , some have said the night. Some have said midnight. Amanda it does appear there will be a majority voting to oust her. Shes made comments that she would fight anything like that. If she goes, the Vice President will move in and the trial will begin. Julia they need 41 senators to approve. The newspaper tallies are all around 15 one 51. The Vice President with staff and for up to 180 days while the senate tries her. She is fighting it. There is a Supreme Court injunction trying to stop the proceedings today. Getting trying to avoid nominate disney shares are dropping in the premarket after the disappointing numbers after the bell yesterday. Coming up, we get a top analyst who had a sell rating on this one. Stay with us. Jon shaping up to be a bit of aesop session globally in equity markets. Some deal breakers. Matt i will mainly give you the stocks to watch here. Staples and odp in the u. S. Finally had their 6. 3 billion merger officially canceled after a federal judge ruled against the deal on pricing concerns. The combined companies would have a monopolistic control on paper and ink prices. People still go to staples and office depot to buy that stuff . I thought everybody ordered it online. Maybe i was wrong. Office depot down 35 . Staples down 14 . Both of them have already gotten crushed over the last year. In white. D white. m down with odp a deal in europe that has fallen apart. Hutchison and o2. The commission has ruled against the merger of these. O2 is the mobilephone group owned by telefonica. Will consider taking legal action to reverse that. This adds to a number of deals that have fallen apart. 9 of the deals we track have fallen apart. 300 billion worth of deals. Jon we got a wrap reference reference from matt miller, who does not know who dre is. Apper. He is a r Amanda Disney disappointing. The company is currently trading down in the premarket. We are looking for two likely open sharply lower today. To likely open sharply lower today. Rich, youve been negative on disney. You are not surprised by this. That weve been a believer destiny be story is amazing. Rallied indisney has recent weeks is the incredible string of box office success. Ive never seen anything like it in the history of the movie business. Which is the worst place you want to make money because it is so unpredictable. Rich it is not repeatable. Nobody should be investing purely on the belief that movie success is sustainable. 50 of disney comes from its Cable Network division. The sell rating was premised from the beginning on the belief de on people the side to cut the cord or never subscribed to the multibundle multi channel bundle. Greenfield,t rich the history of disney. Where there calls have been on each stock. Here is rich greenfield trading on disney. You see the run all the way up, then you put a hold on. This is a good history. Youve been a good indicator to say where the stock is going to go. Where next . What do you want to see from the company . Out our sell on disney, but we downgraded all the traditional media stocks. It started with names like discovery and viacom in the summer of 2014. It ended a few months ago with downgrading fox from buy to neutral. The fundamental challenge all of these Companies Face is a Cable Network business, the basic Cable Network business really faces meaningful headwind. That price value equation relative to netflix we would rather your watchers buy netflix. That is the stock to be putting money into. That is where the price value is getting more compelling. The cable business suffering, espn and normally a bright spot. Is there a parts story here . Doubt, disney no was willing to pursue a breakup of the company, separating into two pieces. I dont think they will ever do that. Think about cap city abc back in 1995. Were to separate out abc and espn from disney, that would be interesting. Theme parks has been a great performer for disney. Attendance was down, a real surprised markets yesterday. Theop of that, youve got Cable Network business that is challenged and the studio has been amazing. I dont think investors will just pay for the studio. The pipeline of whats coming through the movie business, the theme parks rich and shanghai. Disney is hosting an analyst ting for investors we would have someone from our team be there, that is for sure. Amanda rich greenfield. At a time when the Hedge Fund Industry has sing the biggest best seen in the biggest outflows, we have one trader that stands up with consistent success. Jon to our viewers worldwide, good day from new york city. Good day to the city of london. Looking now. Better fog. Ago, it was all is that not gloomy . Amanda that is a bright day for london. The market is gloomy, though. Time for bloomberg trends. Pic. I have a a Hedge Fund Manager in hong kong, we keep hearing about the death of the Hedge Fund Industry. This is one guy who is doing welcome a return 6 this year, his average return is 15 annualized. It, by thedoesnt other side of the trade. We hear about everyone getting in on the same side of the trade. Takes the other side of asianade, especially in moves. Buying bonds and Chinese Companies that everyone things are headed for trouble and he has really done well. Amanda theres lots of outflows elsewhere, so i guess they want to go somewhere. That he is buying noble, buying derivatives, betting on noble. Materials will continue headed for a slump and he thinks they could see a real revival. Materials are doing well today. Toyota jon this is why people talk about dollaryen so much. Record annual profit, three straight years of record annual profit for toyota. On the way up, the record profit growth, you never hear from the corporate execs it is about the end. About the yen. Matt that depends on who you are talking to. When you talk to mary barra, you yen. About a jon this is bloomberg. Good day from the heart of new york city. Lets get you up to speed with the Global Financial markets on the session. Equitiess softer globally. Futures pointing lower. The s p 500 negative three. Bond market gets even more fascinating. A load of supply coming onto this market and treasury. Some real demand yesterday. Year at the 10 moment. Goldman sachs with a big call, the bottom is in for the dollar. Yen, down by. 5 on the session. A bit of amight be messy 1, 2 hours away from the opening bell on wall street. Disney stock is down in premarket by 5 after the Media Company posted secondquarter results that disappointed analysts. Profit was down at abc. The strong dollar cut into its profit from star wars merchandise. Currency swings are being blamed for that as previous record profits have now turned into problems. Two possible deals being mixed because of regulatory concerns. Staples in office depot abandoned their merger after a withal judge decided antitrust officials challenging the combination of the two Largest Office of liars. Office suppliers. Pricing it would have created the uks largest mobile carrier. Jon tom keene joining me from bloomberg surveillance radio. There is a hunger for yield. It is being fed by governments in the euro zone. It is called the ultralongs. Spain, france, italy. A time of chronic disinflation. I remember my grandfather blotter andis bond 3 coupons. You wonder where that yield will be on the piece out of spain. You could get that much further in. It is an interesting dynamic. I dont want to over analyze about 50 or 30. It is a symptom of what weve lived for seven years. We forget how long these cycles can be. Hillary can bring up the spanish curve. It looks a Little Something like this. I would call it germany light. On the back end of the curve, you can put up 50 year debt around the 2 mark. Lower on the x axis. This follows from what france has done. Peter fisher has been the most articulate american about weighing those pluses and minuses. Ive never talked to bill gross about it. I would be interested. Jon something you really have to think about now. If you dont hold that until maturity, if you want to sell before then, you look at duration on bank of america, it is near alltime highs. If you get a move on yield at the moment by one full percentage point, that could get ugly. Tom way too much math this early in the morning. Trendseleration up these when you have longer duration paper can be damning. The immense challenge longterm money, pensions. Insurance companies have given the financial repression. Our viewers are very aware of the financial repression to retirees. Still immense for institutional investors. Money and6 to make they are not going to make it here. You wonder if they will make it in 50 years. Jon tom keene, thank you for joining us. Taylor Bernie Sanders is not going away. He says he will fight for every last vote. Last night, he defeated Hillary Clinton in the West Virginia primary. Still, clinton has a big lead in delegates. Meanwhile, donald trump won in both West Virginia and nebraska. In bangladesh, the top leader of the countrys largest Islamic Party has been hanged. He was convicted for crimes against humanity during the 1971 war. He was 73. Theres concern the execution could lead to violence. David cameron might have timeper time an awkward he told Queen Elizabeth the two countries are among the most corrupt in the world. The two leaders are coming to london for an anticorruption summit. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. Talkinge been about here, we are watching these stocks in the premarket with the staplesoffice depot merger dead. This does not look pretty. Cited judge cited with antitrust officials that were challenging the combination. Office depot taking it even harder than staples. Interesting because staples was the weaker partner in this merger. Beinging list of deals curtailed by regulatory challenges. This one is not as surprising. There really are weak players. This was an argument about business customers, not consumers. The companies have tried to argue that amazon was coming on strong. Just recently, amazon announced it hit 1 billion in business sales. With this deal be viable if you years out . Perhaps. The judges seemed a little questioning of what the government was going to do. It was not a slamdunk. Amanda it raises this question of whether the regulator is keeping up with the times. Look at the hutchison deal in the u. K. In a matures are stage. Do we need to worry about that . They are not seeing what they need to see and one of this businesses thats one of these businesses could go away. The Business Environment has changed so drastically. You are seeing concentrations like weve not seen before in putting deals together. The actors behind the scenes are very important. Andce depot and staples some other deals. Deal. This railway it is good for activists. They opposed the existing status quo. They cash out. The deals will not win antitrust approval when you have this big concentration. Not go inpany does without considering the prospects of that deal. It is a miscalculation going on here . Or are they just being very surprised. They are being surprised to some degree. Out aaer has been laying different course. Or a long time, there was this idea that you can put together these job fees and see where you stack up. Ies. Eography we will look for places where the competition would be impacted. If there will be significant effects, we will take steps to do something about it. Companies are under this pressure from activists and others to bring more shall brother more shareholder value. In this case, the very disruptors themselves could be the subject of anticompetition focus. Google and amazon get bigger and bigger, disrupting more industries. Are they making their case badly . Im not sure i would argue that. Ofy saw that the opportunit