Stocks are going to end. Ceo jimin charge, moran, joins us later in the program. First, markets. David in the markets this morning jonathan in the markets this morning, s p 500 futures down. Over in europe, a day of gains. The ftse up 510 and the dax up 1 10 of 1 . We will get through the other Asset Classes for you. Cable, big story. The pound at 144 as i speak and the euro at 1422. 47. 75. Ti up about 1 10 of 1 . Around the world and check in with our Bloomberg Team for indepth coverage of our top four stories. Mike mckee on a barrage of u. S. Economic data this morning. Guy johnson has details. Will kennedy is in london for the latest on the oil rally and home depot beats the street. We will break it down with matt townsend. In new york. Plenty of Economic Data including Consumer Prices, and housing starts. Michael mckee has great sense with his presence. This is all about inflation. How decisive will todays cpi really be . , for twot be decisive reasons. The feds target is based on the pce index, not the cpi. I brought a chart of both the core rates, and the trend is the same but the pce runs half a percent lower. Also, the last month, it went down. The forecast will be going down again this month. That fits into Janet Yellens theory that the increase we have seen may be temporary. Having twoflation components. Sticky prices, like housing, insurance, medical care, and flexible prices like energy and cars. Flexible prices have been going up and sticky prices arent moving and that is the true story. Might see an increase just because of how much oil prices have been increasing. We are getting Industrial Production today, how important will they be . They will fall into the confirmatory category because the economy has been lousy First Quarter, rebound in the Second Quarter, and if that is to stay in place and tell the fed the economy is getting better, you want to see better numbers today. Lisa michael, thank you so much for being with us. Jonathan a lot of inflation data out in the u. K. As well. How do you strip out the noise from this one . Lets bring in guy johnson. A noisy daytoday. The base effect and the fact that easter was a little bit early, as a result of which we all went on holiday in the previous month and we know what the airlines do, they jack up the prices. That means that has been coming down. Apparently we havent been shopping as much in the u. K. , as a result of which clothing came down. A bit of a miss on the inflation number, but the. 5 in march, my suspicion is this has been made clear by the bank of england that the bank will look through this number. It is sitting on its hand right now, but we have the brexit referendum coming up. Not sure if anyone has decided not to go out shopping just because of the referendum. On cable this morning, the pound getting the big top out side the back of an outlier poll. Andou talk to the pollsters you get outlier polls and this could be one of them. 55 responded that they want to remain, and that is a decent number, the remain camp they are really happy with that. There is a tns poll which shows the flipside, the front foot here at the moment. , you can to the brexit see the polls and at the moment, that has leave on 38 and remain on 46. Think, really, i shows you how volatile this story is and how the market is waiting to see the result. As you and i were discussing, positioning is a huge part of this. Do you lighten up a touch . That correlation between risk assets really pumping high, guy johnson, great to have you with us. Crude oilf the u. K. , trading near a sevenmonth high this morning. Advancing more than 80 since slumping to the lowest in 12 years earlier in the year. I want to head out to will kennedy. Just talk me through the dynamic in the crude market at the moment as we inch higher on that contract. More thane real 3 , getting close to that 50 as what is really driving it is these averages. Where they have knocked out a whole range of oil production, canada while some people are back to work there are still wildfires making a return to production difficult, and that has really surprised a lot of people in the market and brought the market back into a supply demand balance quicker than people were expecting. Saudi arabia in focus very much but also because of the bond market as well. For the first time, we know just how many treasuries the saudi arabia owns, and what is surprising is how low it is. Be one of thed to largest holders in the top 10 but it was 120 billion which is only a fraction of the 500 billion u. S. Foreignexchange assets that saudi arabia holds. A lot of people say this is fascinating. But it is likely that the saudi government actually controls more treasuries in thirdparty countries. Jonathan that is a discussion we will have later on in the program. Thank you for joining us. Lisa home depot shares rising. After the companys firstquarter or new estimates, the Worlds LargestHome Improvement retailer providing a bright spot for the Retail Industry. For more, we go to matt townsend. Walk us through this. We know why consumers are spending at home depot and not, for example, bases . Macys . Y as home prices have been going up from the drop of the beension, people have willing to invest more in their homes, whether it is remodeling them, fixing them up, and home depot has been benefiting for that benefiting from that for several years now. Their samestore sales, which is basically the key metric that a lot of investors look at were 6. 5 . Overall, a big blowout for home depot. It is a big sigh of relief for people who invest in Retail Stocks because it looked like there was some sort of broader pullback by consumers in the u. S. And with home depots results in Home Improvement, that is not what is going on. Is a bige improvement industry and it is really indicative of how confident consumers are feeling about the economy. Is home depot used as a bellwether for improving Consumer SentimentGoing Forward . I think so. One of the things home depot will talk about is the size of projects people are taking on. They report over 900 personages 900 purchases. Their transactions were up and their average ticket for transactions were up. That shows people were spending more than ever at home depot. If people are confident about their home values going up, they are more positive about the economy, more positive about their own finances. This is a good sign overall. Lisa thank you very much. Now lets get an update on what is making headlines around the world. Shery ahn is here with first word news. The u. S. Is backing libyas request for weapons to fight the islamic state. John kerry is in where he met with the Russian Foreign minister and diplomats from 20 other nations. Army says it makes sense to libya but he rules out the use of u. S. Troops. A poll shows the majority of britons want to remain in the european union. 55 want the u. K. To stay in the block. 40 want to leave. The referendum is june 23. Hillary clinton will try to avoid losing both of todays prize democratic president ial primaries. Clintons lead over Bernie Sanders is almost unbeatable, still, losing in kentucky and oregon could the demographic failures sanders the demographic favors sanders. Global news, 24 hours a day, powered by 2,400 journalists in 150 news bureaus around the world. I am shery ahn. Coming up next, george soros goes for gold and makes a big pullback from u. S. Equities, detailed next. Jonathan coming back now, a lot to get through. Lets bring in julie with the latest. Once again, lending club stock. Down 15 . The Company Recently ousted its ceo and talked about some perhaps, things that he did not do that he should things he did that he shouldnt have done. The Justice Department is also looking into it. The company revealing that they have received a subpoena from the department of justice. They talked about in the 10k this morning as well, so that is causing the pullback. We are taking a look at 13 assets. Weve got filings from Hedge Fund Managers about what they are doing with their holdings and we have john paulson and company adding to a stake in indo international, the pharmaceutical maker tripling its stake in this company. You can see the year to date movement has been closely mirroring its. Valiant. Peer, to acorn,so added another Biotech Pharmaceutical Company in the First Quarter, you can see those have fallen. The 13 fe term providing a big story. George soros cutting his investment in u. S. Equities by more than a third in the First Quarter. Electing to boolean, the biggest gold producer, eric old barrick gold. Lisa we have the chief investment strategist at pmo capital markets. Is it warranted . I have my shovel and i am going to dig the bunker and by my four cases of water. Market hase stock tripled since 2009. You have a strip you have a situation with investors who have never been through a Real Investment cycle. 2007, International Growth and a housing bubble, now they are scared to be wrong so they dont want to be right. We are skating with our heads down. We are so scared of everything and reacting on what happened last quarter. We are talking about filings for First Quarter. But it is may. Lisa did you say these are inexperienced people . George soros not exactly. The question that i would have to say is this. Are they talking their books . Are they always there are permanent permanent bears and permanent bowls. Jonathan on an annual basis, it returns to 30 over a couple of decades. That is what i would say. The issue is that everyone has their story. The good thing that we have been able to do is that we have a plethora of work that we have been doing for the 27th year in the business, so i have been through cycles before. We are the most there bearish people on wall street. It hasnt even started yet because mom and pop in alaska arent buying stocks yet in nebraska arent buying stocks yet. Business, is the the inverse now. The Retail Investor starting the , if you have done that your returns of been awesome. The hedge funds are all reactive. There is no thought leadership because they are so fixated on daily and weekly returns. Because of that, everybody nobody knows how to pick stocks anymore. We have forgotten how to pick good themes. Jonathan when does the real tale money get in . When does the retail money get in . They are going to be shocked in 2017 when all of a sudden they look at their statements and see negative signs. They are going to come back to equities. Especially equities that provide longerterm value. These other things that are starting to outperform good oldfashioned fundamentals. Sticking around, coming up again, black rock Ceo Larry Fink says the worlds second against economy needs to. Eliver he reveals his biggest concern in a bloomberg exclusive. Jonathan despite chinas reforms, black rock Ceo Larry Fink warns that we should all be worried about the countrys debt dependency. Here he is earlier in an exclusive interview with bloomberg. I would give the chinese leadership some of the best marks in trying to transform their society. We are on the fourth year of the plan to reorient china away from that away from manufacturing, export dependency, too much more resilient domestic economies, a much Greater Service economy. That is a very hard thing to do. It takes many countries 50 years and countries generally have recessions in the transition. So to say that china most policyy, in form of behaviors, overstepped the market, saying that chinas dependency of debt and the leverage of the Balance Sheets and the continuation of investing in some of the unproductive state owned companies is not a good longterm solution. I would say it is not a good longterm solution. Hopefully, this is only a shortterm remedy and they get back to the basics of trying to build a better domestic economy. Jonathan that was larry fink in a bloomberg exclusive. Brian, we would all like to see a china that is growing. The problem is, when the debt growth slows, the data softens. How connected is it to the china story . We where there, had the good fortune of being in shanghai, and i like to use the shopping bag indicator. When you see people, they are not shopping. When we are transitioning to a consumerbased society, we need to have Structural Reforms in china. They are worried about what is happening. Use the field of dreams concept. If you build it, they will come. These people are doing what . For a longerterm perspective, china has to grow into itself. One of the concepts of investing is by scarcity, cell capacity. In respect scarcity of raw materials. Now we have structured a transition into a supply base. We believe Commodity Prices are going to be gold. Here will be a bit in gold from a heart commodity basis, we will see prices all coming down. Lisa do you think there is a risk of having a hard landing . In reality . Or the numbers they put up . Lisa reality. It isthe end of the day, a juggernaut in terms of growth. They will figure out how to grow somehow. Can the rest of the world, both the United States and canada, understand that the economy can grow without china, and the answer is yes we can. Canada,nited states and the consumer in america still remains very robust. For the most part, in the bunker. We dont need china to grow and for stock returns to be positive. Jonathan is that a u. S. Specific story . I look at the overcapacity in the world and a lot of that is geared towards china. It is mostly u. S. And north america, canada as well. Europesd of the day, weakest trading partner is china and emerging markets. I think europe is still in problems, from a fundamental expected fundamental perspective. At the end of the day, i think the u. S. Can and should go without china. What nobody talks about, everybody is talking about inflation, we have been waiting 30 years for inflation. What you will see is, this is about growth. It has been about Monetary Policy. Having isve been fiscal stimulus, which will incentivize companies to grow again. Jonathan just to wrap things up, what is it . Financials. Everybody is convinced we will never be able to do business again. You should be buying companies, big financials with scale. Lisa thank you for being with us. Up next, a step in the right direction. Mgm Growth Properties have sharply outperformed the s ps. Ceo jim moran joins us next. Jonathan welcome to bloomberg go. Good day to the city of london with the ftse up and the pound very much in focus. I will live through the markets for you. Futures going nowhere, dow futures off by not even a 10th of 1 . I said the pound was in focus. Of onep 144, up a half percent. For the remain camp, at least. , and crude inains focus. Wti, 47, 73. About twore just hours away from the opening bell on wall street. Home depot shares are up half of a percent this morning. The Home Improvement retail reported profit above estimates. It raised forecasts for earnings the rest of the year. U. K. Inflation unexpectedly slowed in april, highlighting the struggle to revive price growth. From zero quick incent to 0. 5 to mark march. George soros cut his staff by more than a third and bought a quarter of a Million Dollars stake in the biggest boolean producer, barrick gold. What is making headlines outside the shared outside the business world. Missing malaysia and airline or be found. Martin dolan tells the guardian there is an increasing possibility a decreasing possibility of success. The plane disappeared more than two years ago. And amtrak engineer was distracted in the moment before his train derailed in philadelphia last year, killing eight people. That is what investigators are likely to conclude today. Areport will say that rockthrowing incident involving another train caused the engineer to lose track of speed limits. Hollande, president will try to head up strike this week to protest labor reform. Last week, a land forced hollande made it easier for companies to fire workers and reduce overtime pay. News 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. Jonathan the data everybody wants. In 60 minutes time, we will get inflation data out of the u. S. I am told to get that, you need to get to cleveland. Tom keene is with us from bloomberg surveillance. Paying attention to the cpi, talk me through. The fed doesnt look at cleveland as much as bce. There is an argument about pce versus core inflation. Cleveland came out a few decades ago and said, like core, where court illuminates food and energy, we are not going to do that. Whate going to find out the outliers were within the different basket of things we look at. They may take out Building Supplies or glasses or bow ties instead of food or energy and you get a more elevated cleveland cpi then you do. We have a u. K. Inflation print out today and what that showed is a below estimate inflation print because of a very volatile airfares number. That is noise and it didnt distract. The cleveland cpi looking at things, why is it always much more elegant more elevated. Because of the service economy, as torsten slok wrote today, part of this is the overwhelming waiting within all the inflation series of real estate. If we are becoming rental america, another trend away from homeownership, rents play even. Ore in the cpi data for we in new york, we are only 30 on real estate. That is ridiculous. You put 110 of your income into real estate. Jonathan the first thing people will say is, it matches with the fed. How does it factor into the Federal Reserve confirmation . We are not new zealand, we are not doing i