Lets go straight to the markets desk work julie hyman has the latest. It looks like mario draghi caused a bit of a selloff. Can debate theou combinations. It is causing a slight selloff. Dowcontext for the s p and is that we close the high for the year. Yesterday was the high since last summer. So, investors, as we get to the sorts of levels and valuations, you get a regular says it as to whether the recent rally is justified. Of course, mario draghi asking for the ecb stimulus measures to work. That is having a clear impact in places like the currency markets, we know that mark will ve more details on the euro. Here is the dollar, looking at the bloomberg index, you saw as drug use speaking, we have a rebound back up 1 10 of 1 , also, looking at a movement in oil prices. Down, still above 43 per barrel. That is the mario draghi ripple effects side of the region. Companies ine 109 the s p 500 that reported earnings. Is a looking at the bloomberg. It is hanging onto a gain of 60 of the Companies Beating estimates. Here, you have the earnings. You have the drop. Lets take a look at some of the earnings. You had union pacific. It had volumes down in the rail industry. Said secondquarter earnings. Increasing sales. Southwest turning around. ,n the downside today travelers, the Insurance Company first order profits are down 17 . Imagine as you can see, things are evolving even as we speak, biogen had earnings beating estimates. Issues willng labor put pressure on the Second Quarter earnings. Mark the stoxx 600 was trading lower head of the ecb announcement. It is still lower. Hopefully, ill be able to give some of the sections for you. We do not they said need to do more. He said lets give it time to see if they will do more. Theyve moved into 17 and 18 and trying to figure out how lending travels were approved. It is still early. This is a great charge think about how the euro has fared. The euro was at 116. When we begin in march of last inr, they went from december 106. We are at 113. We were down about 1 10 of 1 earlier. Guests about the euro movement. They are focusing on the credit channel. Today, they need 10 billion to resolve civil claims by the u. S. Government and lawsuits over american car owners. Theres according to a person saying that was a big fall last year. Then, before they had the Market Capital at 76. 7. To 47 in billion. They are coin back most of the market cap since the commission scandal broke last september. Maybe, we will more from vw in the next hour. Betty mark, lets check jan first word news. Vonnie quinn has more. Vonnie president obama says the u. S. Is committed to helping the persian gulf. President rabia, the met members of the gulf cooperation council. He said the u. S. Will improve their military and said they will make sure they are not improving ties at their expense. None of our nations have an interest in conflict with the iranians. Take appropriate steps in the region. Bonnie president obama also said the nuclear deal could not have happened without the support of gulf nations. Explosion killed 13 people at a camp on mexicos southern gulf coast. The blast in the fire close evacuations in that area. The state oil company said 136 workers were hurt. Those earthquakes that struck tourism japan may cost money. The quakes killed more than 50 people. The cause widespread damage. And, Queen Elizabeth ii is 90 years old today. The longest serving market in british history has rained for 64 years. She met with wellwishers. Thousand the lights apartment will be lit red white and blue for her honor. Howard around the world. I am vonnie quinn. Lets go to the ecb, staying the course. Leaving its rates at record lows. Draghi president mario reminds us that the bank stands ready to act, if needed. Mario the risk for outlook remains through to the downside. Our recent monetary polities decisions have improved over old financing decisions which should support consumption investment. We will relate in particular to the developments of the Global Economy in geopolitical risk. Mark join us now is a known expert on inflation, Johnathan Loyd at capital economics. Is it time . Willing to bear fruit . I think it will where some fruit. When you look back at policy measures they have in place over the last year, and thinks about where we are in terms of growth and it nation now, think you have to be quite confident to suggest that the ecb has done quite enough. Theyre trying to figure out where policy measures are required. This may lead to helicopter money. Lets just listen to Mario Draghis comments on that today. Us manyhis cost brings difficulties. The bottom line is that we have never discussed it. Mark is it completely out of ,he question that one day helicopter money will be implemented in the eurozone. Backs that is not completely out of the question. We try to figure out how Economic News shapes of over the next year. I think if they need or policy support, helicopter money has some theoretical advantages. It allows you to distribute money without getting wrapped up in the qed. Said, it is not on top the list. Betty there have been a few really great bloomberg stories out about the Economic Cost of the low Interest Rates by the ecb. There is one church in particular that i thought was fascinating. They talked about german savers and their return they have got on their assets, which is pretty much nothing its mario took over the ecb. So, according to their numbers, if it costs 125 billion euros, a big problem they are trying to push under the rugs . It is part of a onesizefitsall policy. There are certainly some countries that would rather see Interest Rates high. There are others in the peripheral countries who would like to see them even lower. Appeasey, you cannot everybody all the time. It is made the point that not everybody has helped. There are many in the economy for whom low Interest Rates should have advantages. Is dealing with that issue right now. As we look an hour bloomberg here, about 62. 5 of traders are the year will get some sort of an Interest Rate hike. One or two. How will that impact europe and your rates . It might help, if we see high Interest Rates u. S. , were likely to go up more quickly. That might be one factor that helps to bring the euro down against the u. S. Dollar. And, perhaps give you a little more activity in the eurozone. There is the danger on the euro market. The have the potential effect on bond markets. Mark and, a weak euro has an impact on some of the countries of the eurozone. This is the Swedish Krona today. This goes to her all the currencies are essentially falling today. The japanese yen is rising. As we are seeing an unconventional means of the Central Banks in the bond buying program, theyre having less on that. Do expect that to continue . We have many different banks trying to do the same thing at this time. They cannot all the that. Also, we are grown with Monetary Policy and the mary is expected to reach their limit. Markets are no longer bringing in substantial further policy like the eurozone as a whole. That has taken away some of the factors that they needed. Mark thank you for joining us. Betty, back to you. Betty we will look at auto stocks. We have settlements from volkswagen. We will get how shares are reacting to that. Mark i am mark barton. Betty i am betty liu. Youre watching bloomberg markets. Well get some of the biggest business stories in the news. With the stateng and the dutch phone company. The move would come less than three years after the mexican billionaires go through the 21 are staying valued at 3. 5 alien dollars. Edison will pay 975 billion dollars to form a joint venture with equity partners. Link u. S. Gas fields through the market. Stagecoach Guest Services will be managed by chris would. They will be open through new york. The center this morning is ripping as he seeks for letting steve cohen start his own firm. He reached agreement that bars him from running a hedge fund. Yield to not prevent him from starting a new Investment Firm from last week. Senator lawrence says it raises questions about the ability to protect investors. That is your business flash. We go straight to the markets desk julie hyman. Earnings. Ng out with they had earnings far ahead of estimates. All regions ofss the globe, the have record results in north america. That income doubling from earlier. Even after vehicle or sales were down, so, it is interesting here what we saw happen. , kevinook at unit sales over a Bloomberg Intelligence oneself that it was really truck sales driving profitability at General Motors because it had a renewed appetite for trucks. They had volume of light truck sales versus the General Motors car. And, because trucks are more expensive, it boosted sales numbers, and has higher margins. , that companyhium is coming out with a second order forecast. The maker ofols the Auto Components is out of the numbers that the estimates. Then, there are various emissions scandals. Ew, according to people with direct knowledge of the matter said the company will set aside 10 billion to resolve civil claims by the u. S. Government. They are also over the rigging of the diesel. Shares are rising. Theyre up more 3 . Mitsubishi motors. Interesting situation from japan after this company said it has manipulated fuel economy test. Now, there are a lot of questions viability. The 20 drop is not a form of trading. Result ofs the compiling sales orders through the end of the day. So, interesting situation here. See if thehing to same thing happened with the stock tomorrow. Carson blocksead, targets to german advertising companies. Pushing shares down 38 . The companys response, that is next. Mark questions on the Central Investment block advertising. Shares have showed steuer as tumbled. The position was posted on the website. In that x visit interview with bloomberg go, block laid out his research. We have been looking at a german Advertising Company for stroller. Has this is a company that been an out of home Advertising Company. One, it announced a digital strategy. Its then, they have had a lot of different businesses. A patchwork in the digital industries. I looked on their website, it appears that they have a rather dramatic growth. Revenue growth, profit growth, 100 digital. You know, one of the things we point out is the way they calculate organic growth, we cannot get the numbers to tide. So, for example, they announced growth wast organic at 34 . Using their methodology and numbers, we get 2. 2 . David that is why the numbers climb so hard. In 2014, they wanted from calculating organic growth, so for 2014, they began to include acquisitions. But, when we calculate these numbers, we use their formula and their numbers, and it just does not add or come even close to adding up. Their earnings per share looks like it is going up. If they are making good acquisitions, why does it matter whether or not it is organic . How do we know theyre making these acquisitions . They pay over 100 million in cash over the last. They increase their share count i heard. There is a lot of allusion there. Were falling to the bottom line. It is unclear the quality of that. We have a lot of concern about accounting. For example, we think there are things putting on the Balance Sheet that are decreasing. Heree think there is a lot underneath the surface. Mark this is a publicly traded company. These are public numbers. You suspect or believe that their misreporting their numbers. Wouldnt that be a security violation . Block it is not my question is not my situation. Theres certainly a lot of russians we have about these numbers. We did catch who we believe is their auditor making a clear error in the cash flow statement. David how big was a . It has to do with borrowings. If you look at the year and cash flow statement, it does not look like the company borrows at all. When you look at it by quarter, theyre actually drawing down real amounts of money which indicates of the cash flow of the business is not necessarily that consisted or that strong, again, when the auditor for. It for zero borings through the end of the year, in our opinion, that is a complete misapplication of International Accounting standards and very misleading. That was carson block and an exclusive interview with bloomberg. E reached out to them the company said upon first glance, the report is farfetched, contains nothing new and is defamatory. Our underlying Business Outlook is excellent. Nothing changed since the last publication since they had a 10 growth in the first quarter. They had full revenue. Company ended the initial statement by making sure they will protect the rights of their shareholders. Still ahead, bloombergs. Company like to think big. It made a huge bet on projects like the self driving car. Are they paying off . Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Betty i am betty liu. Mark i am mark barton. In with vonnie quinn and our first word news. Hello. Body a warning from george soros. He said chinas growth is projected to happen was that have been nine years ago. Soros said most of the money the banks are making is to help keep businesses. There are heading for the opposition held town in central syria. The condo is made of 65 trucks. Electricity generators, and other materials. In twomonthold was jeopardy in part to improve access to the scene area. Expected countries are to sign the agreement on climate change. Companies will set their own targets for reducing emissions and other greenhouse gases. Are not legally binding, but Companies Must update them every five years. U. S. And china said they will join the agreement this year. Senate republicans will given a part of the emergency request for the zika virus. Ours a is according to focus friend familiar with the environment. The president asked for twice that much to keep the zika virus spreading. Airlines want to double the number of commercial jets. There are not enough people to help them landing take off. Airports across the world are testing remote towers. They allow controllers sitting hundreds of miles away to monitor flights. It may help keep smaller remote airports stay open. Global news, 24 hours a day powered by our our 2400 news journalist. You. thank lets get caught up on our action around the world. We started asia where we saw a big rally, almost across the board. Are all up on energy shares. Also, one big story from the china, economist saying central bank is staying on holder the fourth quarter. We will have more on what they will do. Mark survey says hold we look at the latest poll. We will keep rates where they are. All the way into september before announcing them. The first rate cut of 2016. These regular cash injections that we see here, almost daily will tie the economy through another transition year. The difference between the view in march in the view now is that the data has been shown improvements. Might be too much. We are 6. 5 growth for 2016. From bloomberg hong kong. Mark lets look at european equities. Will see stocks fall for the second day. Much of a stock stimulus today. There was no real reaction to the fact that the ecb did nothing. Much itwait and see how stimulus worked. The euro stoxx 600, there you go. Two thirds of 1 lower. Have a look at the european bond markets. The bond by portion of the ecbs program has not yet begun. Well have more details about it today. Lets take a look at the currency markets. The euro moved the last two times the ecb was at it stimulus. Today, falling into the dollar. Interesting that it is falling against the crown. The dollar is also falling. The swedish central bank, the risk of bank today, added to its program. It will buy more government bonds. It is still dealing with the case of a Central Bank Stimulus rising. Lets get to the u. S. Bloomberg Abigail Doolittle has the latest. hello. We have the nasdaq trading flat right now. The biggest boost for the nasdaq was syntax systems. Significant beat a 28 above consensus. Are being, they driven by the product portfolio. That will continue through the year. The company did raise its product forecast. A lot of products with scott seller. He took his sales of 96 per share. They may keep the stock above a longterm trading range. That, for the of technology companies, what can you tell us . Abigail after the investors, microsoft are looking for some relatively muted growth. Low Single Digits for both earnings and revenue. They have slowing pc growth as the Company Moves to the cloud. Relative to alphabet, investors are trying to figure out what the company will adapt its business for mobile growth. Investors are looking for 21 growth and earnings. 19 in revenue. Revenueferent in growth and microsoft. One thing they both shared was a common trading path last august. Said what they share in fundamental basis is transparency. Something that institutional money is willing to be involved with. Mark great to see you. Thank you for joining us. Lets talk about google. Betty alphabet. At lets continue the conversation. Be core business seems to humming along. The company does faced some challenges. Is with margaret w bear. It was interesting the point abigail made about transparency. More numbers big investors want, i am curious, the second report is alphabet. The Second Public report is alphabet. We will get more information about the biggest bus