Stronger dollar story. People are still going shopping in the u. K. Retail Sales Numbers really strong in the u. K. Yields up by around two basis points. Much more on that in just a moment. Most the yields rose the it almost a year. Abn egypt air an egyptair flight has gone missing over the Mediterranean Sea. We have the latest with riad hamade in dubai. Please tell us what we know at this point about this egyptair flight. Unfortunately, we know very little. It took off from paris, disappeared around 2 30 a. M. Egypt time from the radar. Airbus 320. Is an it was given to egyptair in 2003. It is not a very old airplane. The pilots were very experienced. Right now, the militaries of egypt and greece are searching forn any debris. David weve heard president that no causeris has been ruled out. Was it at cruising altitude and what was the weather like . Riad as far as we know, the weather was good. This is from the air traffic controllers. It was at cruising altitude come a sudden disappearance from the radar screens. The pilot had been in touch with greek airtraffic control. Just shortly before. When they tried to reconnect not raise they could him and disappeared from the radar. David thank you very much, riad hamade. Lisa i want to shift to the u. S. Withrt beating estimates First Quarter innings beating estimates. We have shannon pettypiece. This is positive news. What do you make of it . Shannon weve seen one dismal retail earnings after another. Target missed expectations. Where are people spending their money . It looks like they are spending it at walmart. Traffic was up, sales were up, up. Store sales theres been some rocky quarters for walmart but this looks to be one of the good ones. What about projections for the future . Shannon they did not give any changes to their fullyear guidance. They did change secondyear guidance secondquarter guidance. We heard target yesterday saying they felt the Second Quarter was not going to look that good, walmart sees good momentum going into the second odor. Secondquarter. Maybe consumers are looking more to the discount retailers. Down. Ers trading we saw jcpenney do well, macy struggling. Macys struggling. Comp up 1 . Ales i talked to an analyst yesterday after seeing target who really bought walmart was going to be bad. That was a surprise for many people. The big story in Financial Markets is that said. The fed. Those kooky officials speaking. Key officials speaking. Lets bring in carl riccadonna. The big three will be speaking in the next couple of weeks. Why was the tone in these minutes so different to the tone from the statement from the very same meeting . Carl you do not expect that dramatic change of course. Some change to their description of International Financial risks. Nothing beyond that. Clearly this week, we had a couple nonvoting fed president s talking about june being realistically in play. The minutes and by sizing this now emphasizing this. With thes not happy dovish sentiment in the marketplace. When they do move, they dont want to rattle the markets. They dont want to go into the meeting with the market saying theres a 15 chance of raising rates and then actually raise rates. The fed wants to tiptoe and move smoothly. Recourse ult to reverse course on policy. Fed funds probability hovering between 40 and 60 and 70 going to these meetings. Jon we are getting to the sweet spot. What would stop them . Look at the front end of the yield curve. A remarkable change in just over a week. 89 on a twoyear is not a big deal. Carl uncertainty will stop them. Financial conditions could rattle them. Uncertainty they could truly sound the all clear. The glaring headline, june is a realistic possibility. The next two sentences were very clear in saying there is a range of views on the committee as to whether the Economic Data will actually cooperate. And there is also significant doubts as to whether we will have enough information to believe the economy is cooperating. It shook the markets by the lapels to say wake up. Also clear in zyngas real reasons why june will simply be saying there real reasons why june will simply be too soon. In july, they will send a clear message to the markets. Jon a lot of traders taking a lot of late nights for that china fix, u. N. Fix. The sense of international risks was downgraded a bit. Atshing orange, not read this point. Is holdingsche bank their annual Shareholder Meeting in frankfurt. Matt good to hear you. John krein did a really good job. His german is very good and that is important for shareholders that come to the agm. He also had a tough task. The bank is in real crisis mode. Every shareholder i talked to has expressed serious concerns about Deutsche Bank. He summed up plans to turn it around and gave a vision for the future. He will stick with the moneymanagement business and the global moneymanagement business, more importantly. Headcount,ng focusing on fewer clients. They deliver 98 of the revenue. It sounded like he won over shareholders. Krein, theke john new ceo will get through that. David he was talking about the need to perhaps raise new capital. Was that discussed . Matt that has definitely been discussed. Every shareholder who has held a is askingspeech questions about the need to raise capital. This is a bank that has raised in thelion of capital last three races and has a market cap of only 20 billion because the shares have fallen by 50 . That is a real problem any real comment on previous management. With john krein appointed by the chair, some of the investors appear to have more stake in the future. They know the dividend has been cut, bonuses have been cut, but they are not sure yet about how capital should be raised. Matt miller reporting on the annual Deutsche BankShareholder Meeting. Jon a bit of a route. Global stocks falling to a sixweek low. A lot of red numbers. Commodities joining in today. We look at the opportunities in the selloff, next on bloomberg. Jon this is bloomberg. A little bit softer looking at u. S. Futures. Walmart numbers coming out a few moments ago. , u. S. Mber to watch samestore sales up 1 , double what analysts had estimated. It is still Slower Growth then target experienced. 2 . But target missed analyst estimates. Did walmart just manage the expectations better . The stock is higher this morning come especially amidst the negative forecast. Of thewatching a lot travel stocks this morning in the wake of the disappearance of this egyptian airliner. Before that happened, thomas cook cap come out with his earnings and the company had said it was unable to sell toernative vacations customers on willing to travel to turkey and belgium. Shares were already down, slumping even further. Thiss is little changed at point. We have the latest on beyer and monsanto. Unsolicitedn takeover offer for monsanto. Bernstein said it is a big financial stretch for bayer. Perould have to be 125 share. Out after the close yesterday, sales exceeding analyst estimates. Company has been trying to overhaul their product line fast enough to stay ahead of changes in the networking industry. We will be speaking with the cisco ceo in just over two hours. David a lackluster earnings season. Have p companies that reported so far come on average, their earnings were down 8. 2 . Joining us now is david joy. Corporate earnings have not been great. If the fed is thinking about raising rates in june, what will that do to earnings . David that depends on what happens with the dollar. If rates go up in the u. S. , you will find certain segments of the market will struggle again. Manufacturing come industrials will be under pressure. To get stronger domestic earnings coming need a stronger domestic economy. Be welcominghould the conditions that will result in an Interest Rate hike. David a lot of people were expecting the second half of the year to be much better for earnings. Is a rate hike enough to change that or is that still the case . David it is still the case. If the fed feels as though the anditions are correct conducive to a rate hike, that should give investors a little more comfort. We know what of the big changes is going to be yearoveryear, the price of oil. That alone is going to flip the switch and give us a real chance at positive earnings in the second half. If we get real traction here and get towards a 2 growth rate, earnings in general will get stronger. The market needs it. Jon blackstone weighing its sale of 11 million a warehouse 11 billion logical warehouses. Earnings have been weak, but so much pessimism has been baked into the market. Where do you think is poised to rally the most if people change expectations . David the financials are the most attractive in our view. If you started to get more economic activity, lending will be higher. We are starting to see that a bit. If you also have Interest Rates moving higher come in and interest margins can move a little higher. Net interest margins can move a little higher. That would include insurance companies, credit card Payment Companies looking poised to do well as well. Lisa what was the worst . David the biggest sector at risk right now would be the industrials and materials sector if the dollar starts to gain strength. They will be ok if the dollar stays in the range it has been in. If we see a big day virgins divergence once again, it will be under pressure again. David is this a topline story now . We bought a lot of stock up. We have to get topline growth. David a nice rally up the february lows, that was multiple expansion. There was no Earnings Growth driving that. Yes, we absolutely have to see the dollar growing for the reasons you mentioned. If we dont get it, the markets might do nothing with the linguist. The language. Lisa have you seen any signs that will be a dynamic Going Forward . David the bullish percentage of individual investors fell to a low since february. February was a 10 year low. That has been eight contrarian indicator a contrarian indicator. Potentially bullish indicator up as ms. Him in the markets indicator of pessimism in the markets. David joy is staying with us. Coming up, put it in the bank . Financials led the day yesterday. One of the worstperforming sectors in 2016. Is it about to break out . David you are watching bloomberg. Paris toir flight from cairo with 56 passengers and crew dropped off the radar off the greek island of crete earlier this morning. Saidh president hollande theres no hypothesis being ruled out at this point. We will have much more on this story as it develops throughout the program. Lets get you up to speed. Futures soft in the u. S. , down by about. 1 . For ures negative minus four. The Deutsche Bank agm is the one to watch over in frank for. Inattled executives over frankfurt. Europe has settled around 112. The pound has gone through 146 now. Move weve had in the bond markets. Lisa bank stocks are rallying, possibly because of this move in yields. The most in a month amidst expectations of higher rates. Could they hold on to the gains . David joy is still with us. There is a story out this morning about how Equities Trading revenue fell 28 at the biggest banks. Fixed income commodities and currency trading down another 12 . How can you be optimistic . David that is reflected in the price of these stocks. I expect the conditions to get better in the second half. Maybe not so for bond trading, but certainly for equity trading. The business side of the economy is not the most robust. It is the consumer that is in good shape and likely to carry the day. Equityl see a bigger environment in the second half. Jon who benefits the most from that . Revenue trading is huge at Deutsche Bank. Money clearly the big banks like j. P. Morgan chase. I suspect also you will see good strengthen the Credit Card Companies strength in the Credit Card Companies. Morgan stanley, golden Sachs Goldman sachs. Lisa Deutsche Bank had to come out this morning saying we are committed to our securities business. Do you think they do have options to improve their revenue . David all european banks are in top shape, quite frankly. Tough shape, quite frankly. They have been slower to fix the Balance Sheets and adjust their strategies. Some are a little further along than Deutsche Bank seems to be. They can fix their business. It will take a little while. Is it not in the price at Deutsche Bank . David there are better opportunities and other places where you will get rewarded. Ubs is better positioned in the european marketplace. They have done a very good job of taking out costs. , at their earnings announcement, they talked about the same thing. They are on their way, but ubs is further along. Jon david joy, thank you very much. Coming optimistic and with banks. Deutsche bank agm underway. We go live to frankfurt, next. Jon this isjon bloomberg. Heres the picture on global wall street. Dow futures, 28. Switch up the board. What a move in the bond market. The Federal Reserve aftermath, u. S. Yields creeping higher. Stronger dollar story with the euro at 112. Stronger pound story. 146. 22. An egyptian airliner has disappeared on a flight from paris to cairo. Saysh president hollande authorities are refusing to rule out the possibility of terrorism. The flight was at 37,000 feet when it disappeared from radar. It was at 120 miles from the egyptian coast. It was carrying 56 passengers and 10 crewmembers. There was no distress call from the crew. In cairo, egyptian age asian officials egyptian aviation officials are holding a press conference. House Speaker Paul Ryan says the lead small may businesses to eliminate salary positions. Employers will have to pay workers 47,000 before they can be classified as managers that are in eligible for overtime. Says the brexit boat has already harmed the british economy. Vote has already harmed the british economy. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. Jon it is the chart, the u. S. Twoyear, the front end of the yield curve and that temperature gauge for the Federal Reserve and expectations of rate hikes. 70 basis points last week all the way up to 90. To discuss a sea change in the last 24 hours is tom keene. A real turn in the bond markets. Tom we did the chart earlier but more long term. We have three times recently come down to that. 7 level and then bounce right off it. I would suggest there is not a complete buyin to june yet, with a lot of people tossing over to july. One thing you do so well is go inside the charts. Weve gone from 70 basis points to 90. Critical . Tom in the narrowness of the review, yes, it is a brutal move. Within the scope of 18 months of this game, it is a bunch of noise looking for further data. I was just going to vice chairman fisher at columbia. Oday the idea of michael woodfords interest in prices the noise will only be solved by real data. Jon you listen to dudley, fisher and yellen. Two of them speak today. Tom we will need to see more data as we go to june. Oneid two weeks ago of the themes here is the idea of the market doing the lifting for the fed. We get rates come back after tightening. Meetinggo into the june , potentially to the july meeting. What do you look for in the markets . Is at the dollar that pushes back, the bond market . Vonnie it is too broad tom it is too broad a question. To pure u. S. Analysis of what our Central Banks will do. Im just not there yet. Theres too much International Noise within economics. Keene, how many junes . Tom you know the phrase june is busting all over . Do you know what that means . Over is busting out all we want to go to germany. Deutsche bank pulling his annual Shareholder Meeting in frankfurt. We are now joined by matt miller. Give us a sense of who is attending this meeting. Matt the biggest shareholders in germany and the smaller shareholders in germany attend this meeting because you get a free sausage and potato salad for 15 euros. I want to bring in ingo speich. Speechu happy with the the new ceo gave . His german was very good and i thought the tone was very good. Ingo overall, the people were quite happy about the situation. About what he said to the investor. Matt compared to last year, booing. S doing this year, we heard john cryan referred to germany as his homeland. The mood was calm compared year. T a pick last yea last year, there was an aggressive mood in the auditorium. New. Ryan is he plans to clean it up, what management did wrong. Hes in the beginning. Matt does he need to raise capital and in what form . Ingo the banks have to consider the allocation of capital. From which business do we need the capital . Step depends on the litigation. We dont know yet whats going to happen. Therefore, it is too early. Matt he did say he would bring an end to the biggest cases this year. That got a loud round of applause. So sorry. We have lost matt miller. He was speaking to ingo speich in frankfurt. At the Deutsche Bank annual meeting. We want to bring you uptodate again on the egypt air situation. Starteds a flight that in paris, was on its way to cairo, disappeared overnight over the Mediterranean Sea. They are searching for debris. Right now, there is a press conference going on with the egyptian air ministry. You can get this on top live on the bloomberg. David this is bloomberg. Hour, dougn the next ramsey says you better brace yourself for higher volatility. Taylor here is your Bloomberg Business flash. A deal that would create the biggest supplier of farm chemicals. Bayento with an offer from r. They have a market value of 42 billion. There is more consolidation in an industry battered by the collapse in oil prices. Companiesrvices have agreed to merge in an all stock deal. The company will be based in paris. Both lost a quarter of the market value over the last year. Investment