Coming up on the show, we have Dale Stafford. He will join us on all the dealmaking and unmaking going on. We will preview aprils retail sales. Jon looking forward to that conversation. S p 500 futures negative five. Switch over to the board very quickly. 1. 1345. Lar, foot. Llar is on the front yields are down by two basis points. What a week for wti. 46 thought. Flat. Lets go around the world for indepth coverage. Selena wang as the latest. We are 90 minutes away from the april retail Sales Numbers. Speaking of ecodata, guy johnson has latest on euro area growth. Julia tells us what to expect a day after Dilma Rousseffs suspension. Apple has found a way to use its enormous pile of cash and it could have an effect on the uber. Lets get the details from selena wang. Selena this is a huge deal. This is the single largest investment they have ever received. Was in talks to raise 2 billion. This is very unusual for the smartphone maker. They dont normally invest in startup funding rounds like this. What does it mean for this company . We are all watching uber. What does it mean for uber . This definitely deals a blow to uber. They have been pushing hard. Gives didi a big push. The fight is going to continue. This is bolstering their position. Thanks so much. Retail sales in the United States will be out in less than 30 minutes. Joining us with a preview is mike mckee. Looking for . Omists it is 90 minutes. Not 30 minutes. Mike you are so excited. Economists are looking for a better april. Howard largely by car sales and higher gasoline prices. Powered largely by car sales and high gasoline prices. In march,wn month they saw a rebound in april. We are expecting retail figures to track that along the way. Important to the fed as it is to wall street. We have seen this tectonic shift in spending. We have gotten all these bad numbers from the Department Stores. For the last decade, we have seen people spend more money on services than on goods, especially nondurable goods like clothing and shoes. The yellow line is the growth in services spending. The Younger Generation by things at Stores Like Zara and h m. David w. mike you mentioned the fed. What are they talking about . The markets dont believe them. Why do they keep saying this. Mike they want the markets to move now. They thought the markets were a little more hawkish than the invest ors. They want to push markets up. They dont wanted to be a big shock if they go in june. They dont want to be stuck with Interest Rates this low. Very much. Hanks that is Bloomberg Economics editor mike mckee. Jon a lot of data coming out in europe. Joining us from london, guy johnson. The bearishness. German gdp is not that bad. I would say it is actually downright good. Absolutelyeconomy is striking. Driven domestically story. A lot of people or pointing fingers at germany. They are getting going. A mixed picture across europe. We had a 0. 5 read for the aggregate number. It has been revised down. The numbers are different from country to country to country. This is really quite a good number. It may not be sustainable, but the underlying momentum is good. Europe is on a bit of a terror rightnow and jura tear now and germany is absolutely flying. Quited argue that it is good news being generated from this side of the pond. Jon things you dont get to say very often, guy johnson. But on every financial publication is the big, bearish headline about brexit. The doom and gloom brigade taking over. What is the conversation . Guy it is definitely a fear conversation dominating things. I spoke earlier on to the irish Prime Minister and got his take on what is happening. The could be a Silver Lining for ireland. Maybe you could get banks relocating, etc. , it that arrest etc. He is worried about the contagion that may spin over. If the british electorate were to decide to leave the European Union, ireland would still stand up for britain and things that het european level, but i could not determine the outlook of the response from the other 26 countries. Talking to me a little bit earlier on, they are worried about the contagion effect and a shortterm slowdown in the british economy and how that will read. Dr. Carney down the road at the bank of england is worried, making waves yesterday, saying. Ou could see jon is the pushback fair . Is his criticism fair . You are always going to get pushback. One side of the argument is that he is meant to be apolitical. Some say he should not be jumping into a political debate. This is where the door opens a little bit for him. He is meant to be apolitical. He is saying, i can see the data slowing down. I can see it from both sides of the ring. Closely, youvery are going to get my twopence worth in this debate. Jon ive got to say. The door is opening just a little bit. A lot of people would like to see him walk out of the door. To leave the bank of england. It was a very strong response to his news conference. David w. they were angry with him because of the politics. Jon very angry. I thought he handled that well. That it would be political to not talk about the risks. Did the fact that he is canadian, but all . [laughter] is vowing toseff fight back in brazil. Much has happened in the last 24 hours. There is a new cabinet. Early criticism and tension on the finance minister. Yes. This is the finance minister markets wanted. The longestserving central banker we have had. He is already talking this morning, speaking to a local news agency about cutting down debt and setting realistic goals. He is going to talk a little bit later in detail how he is going to get us there. Thank you so much for that. David w. that is news from the business world. Lets turn to the rest of the world. That is taylor riggs. Taylor it has been called the most secure financial messaging system in the world. To moveed by banks money around the world. This attack involved in unnamed bank. They stole 81 million from the central bank of bangladesh. A report today says that a brexit could erode londons status as a financial sector. The vote is on june 23. The u. S. Navy has fired the commander of 10 sailors who were captured by iran for 15 hours. He has been relieved of his duties. Global news 24 hours a day powered by our 2400 journalists in 150 news bureaus around the world. Jon coming up, so much bearishness in the market. Is it the end of the bull market . Is it a sign of the end game . Day to the beautiful city of london. If we close at these levels and we are four hours into the session so far, it is a fourth straight week of losses. Lets get to the cross asset boards. The eurodollar. Yields are grinding lower. Yesterday on crude, closing at a sixmonth high or thereabouts. Lot to get through. Lets cross over to matt miller. Matt it has been a tough week for retailers. That did not change last night. Nordstroms and dillards boasts both missed estimates. In the premarket, they are down 2 . We will get their earnings out in 30 minutes. If you look in almost any retailer we have had out so far this earnings season, it has not only been a miss on earnings and samestore sales, but it has also been cutting forecasts for the full year. It is a bloody picture for retail sales area take a look at the Department Store index. Over the last week alone, the Department Store index is down 13 . When todays trading opens, you will see an even bigger drop in u. S. Department stores. It has been a rough time to say the least for retail. The kids are buying more stuff, including clothing online. Hopefully, they are eating burgers a lot out. Shake shack keeps adding stores. It easily topped estimates. Shake shacks new chicken sandwich chain or addition in those stores, the chicken shack, brought in new customers. Shares are doing well in the premarket. It is no secret that apple is struggling for the first time in a long while and americas most Profitable Company has seen the shares fall to a 22month low. Tim cook may be looking to china for a way out. Billion of apple in two didid. I. Into did look, the shares are down today again. Dropping below 90 apiece. We will be talking about who could overtake apple is the Worlds Largest company. No one has done it on a closing basis. David w. who could it be . Alphabet . Matt the owner of google, that is correct. Jon financial markets, bearishness, bearishness, bearishness. Byare just up marginally 0. 1 . Is there more upside left in the market . Lets ask julian emmanuel. The amount of bearishness. Where do you want to begin. Shoulde any reason i just go out there and go long . The near term, we are cautious, as well. For now, at 17. 5 times earnings with political risks here and abroad directly in front of us and the economies and numbers starting to slow down below expectations, there is reason to be cost is very david w. but causedy, a recession is by something. What would precipitate it . Thean i would say it is after effects of the negative rate regime in europe, lack of confidence in the financial system. As we have seen over the last week or so, the news out of debt concern about there. That could precipitate a global , the sentiments you saw in january. In terms of the u. S. Economy, we are slow, but we dont see make the ahead. Case for financials. It has not been a fun cycle for financials. They did not get the typical pickup and Interest Rates they hoped to get. Julian it has not been a fun cycle for financials. The fed is going to raise rates. We dont think theyre going to do it in june. We are looking for september. Rates are going to go higher. Is anality is that it environment where it has been very difficult to make money. That sector has been very washed out in terms of positioning and sentiment. Less than terrible news has moved those stocks higher. Jon lets have a conversation about this word sentiment. It is a very fuzzy concept. A lot of them are my age, around the 30year mark. In aapproach the word risk certain way. The fed, brexit, the election, a possible showdown over the debts dealing all over again. It is risk on, risk off. How do view you view that . Julian we have gone absolutely no where for two years, but every move in the market has felt like i did the floor was going to be broken through or we were going to continue going much higher. There has been a sense of frustration and angst about missing out on the upside or being protected from the downside. If the economy is going to grow the way we think it will, what we are likely to see is bonds and stocks moving together again rather than this risk on, risk off and that is something that most of the world does not have experience with. I want to talk about the possibility of a hike. Does it give you somewhere to go when a recession does hit . Julian we dont look at it that way. What we have seen in past rate hike regimes, the second hike, the third hike are validations, signals that the economy is moving forward. One of the concerns has been that the personal savings rate has risen. That is why there is so much focus. The fed wants to have the room to say that things are ok. David w. thank you so much, julian. Still ahead, harnessing solar power proves to be harder than it seems. We will talk about that next. David w. it is time for bloomberg trends. You can find these for yourself. Amanda, you have our first. Amanda it is on solar. Who was thechina 41st richest man in china at one time. 2 billion of wealth. He is now worth 17 million because of the collapse in solar. This is still a rags to riches story. David w. rags to riches to rags. Amanda solar is coming. Beknow that this is going to one of the ways we power energy, but you are looking at his company. The white line is more interesting. That is the index of solar companies. It has been a rough ride. Maybe it is still too early for solar. David w. our oil prices driving solar back out of the market . Partly i think it is that or the earlystage investor valuations went too high. The cost of the technology is plummeting, but it is not so good if you are one of the investors. Jon it was so concentrated last summer. You became a billionaire and then you were a millionaire overnight. It is so heavily subsidized. That is the story today. The aggregate financing. It was below all analysts for china. That is significant. David w. they are dialing it back. The good news is the Chinese Government is devoted to making green energy work. Amanda they have to. Jon lots more coming up. Still ahead, brexit concerns now and around the world. Christine lagarde is the latest leader to express concern. Jon happy friday to you all. This is bloomberg go. Over in europe, it is the ftse heading to a fourth straight day of losses. The dollar is on the front foot. Yields just keep grinding lower. It has been the pain trade of the last year. Yields must go higher, they cry, but they keep going down. Lets get over to matt miller for breaking news. Matt im looking at jcpenney right now. Be in line with estimates. They are missing estimates by about 100 million. But up there. We have seen this trend with retailers. Missing on estimates and sales and the growth is not there. The company came out with a firstquarter adjusted loss per share of . 32. We were looking for a loss per share of . 37. A little bit narrower loss than we have been looking for. The myths on sales is probably going to get investor attention today is the feeling on retail is negative. Amanda we continuing the trend e have seen from other retailers. We are two hours away from the opening bell. Apple is using some of its cash investing 1 billion in dd ridesharechinese start up, giving dealing a big blow to overs investment ubers in china. We will get ppi this morning. David w. now it is time for first word news. Taylor hi, david. U. S. Authorities are ramping up their part of the corruption stateownedazils oil company. The petrobras bribery probe it is already led to 50 arrests. This may be one of chinas Biggest Online leaks ever in sensitive personal information. Personal information on dozens of Chinese CommunistParty Leaders and Business Executives has been leaked on twitter, including that of jack ma. Quicklythe tweets were deleted. A report says the European UnionNaval Operation is not working in the mediterranean. Efforts to disrupt the multibilliondollar migrant smuggling business are falling short. , the eu isr hand succeeding in rescuing refugees on the high seas. Im taylor riggs. It is one of the biggest political decisions of the year. Should the u. K. Vote to leave or stay in the European Union . Tom the table. Me around so many people weighing in and the last 24 hours. Take a listen to this. We are not doing it out of politics. This is not the job of the imf. We are doing it because it is a significant downside risk. Course there are a range of possible scenarios around these directions which possibly include a technical recession. We identified the fact that britain might cite these as a major Strategic Risk in 2014. Clearly a decrease in the risk and the british gdp would result in a contagious impact on ireland. It is not just a domestic issue. I know it is a big domestic issue for many of you, but it is an international issue. Last 24, over the hours, it is charged. Now even more so. It is heating up for breakfast brexit rockfest. [laughter] i have never seen a leader of a central bank be so careful as Governor Carney yesterday. It was extraordinary. It was extraordinary about the politics of brexit. Huge amounttaken a of criticism of the way he presented himself in that news conference. He is often very charismatic and engaging and that was the most tense i have seen him. Tom we have an interview with a denmark Banking Leader today, as well. Paneuropean, this. Luggishness is the story it was supposed to be done in february or march. Jon the people who would like to see the u. K. Leave the European Union have labeled this operation fear. Is there a sense with you that you think that could become selffulfilling even if it is not real, so to speak . Tom there is always a risk of that. Polarity about 200 economists the basic idea is that the economists are weighing in with the theme for next week, seeing more worthy is stepping in to say it is not a good thing. Analysis is that actually when you boil it down, it is not a systemic risk. We are talking about a political decision. Going back to the point of that fear becoming real, it may not , but if you keep saying it will be bad, it will be bad. Tom when we wrap up what we have seen all this week, the history and brazil, the amazing debate we have had in the last five days or a week in the united date and then bringing it over to the eu, the overarching theme was so far economic growth. It is amazing how that can become a catalyst or reality. Rowley was way out on his call for a new american terminal value. Jon doom, gloom, and i wonder how the polls will develop. Tom is it doom and gloom or is it reality . That is the nuance. Amanda that seems like a perfect segue. We could move from boom to bust after wall street bankers had a record m a year year in 2015 it has been undone. A lot of these are going bust for reasons to do with regulatory, tax, government rather than the two players deciding that they should. Does that make this different than previous times . Indeed. The way that we are characterizing the m a market for 2016 is uncertain. It feels like a very uncertain market. We had a record deal year in 2015. It was the third of three successive really great years and gravity is beginning to take hold. A set of factors on one side of the ledger that will continue to contribute to robust dealmaking. Factors thatt of is also going to put shade on the dealmaking. Amanda what will contribute . I would guess access to capital is on that list. Absolutely. If you are a large multinational with a lot of asked bowsher, you are still quite concerned about where the growth is going to come from in the near to longterm. That combined with the fact that debt is relatively cheap have been robust environments for raising capital. There is a lot of capital waiting for those things to be deployed. , water,e the nitrogen and sunlight that contribute to growth in the m a market. Amanda what will constrain m a