How is having a real estate man like trump in the white house affecting values . We speak with bruce flatt. Have a look at where european equities are trading. We are 30 minutes away from the end of the tuesday session. Stocks are rising. The highest level in 20 months. Coming off the best week since december. The Third Straight monthly advance. We have local elections in the u. K. Job reports in the u. S. On friday. And the french elections sunday. All of these currencies rising against the dollar. I will come to the greek 10 year yield in a second. Down by 31. 7 basis points. The earnings season continues. Aberdeen Asset Management shares of 4 . Outflows flowing. Emerging markets recovering. Cost savings with the net amount at 13. 4 through 16. 7s billion. Profit up by 20 . Active Asset Managers have been seeking to cut costs as they grapple with funds that charge lower fees. That combination with standard light may Standard Life may result in savings of up to 3 million pounds, according to rbc. Data point with u. K. Manufacturing rising at the fastest pace in three years. The domestic market strengthening. Sterlings decline boosting exports. The estimate was 54 . The report reinforces the view that exporters are watching boe what the boe governor calls a sweet spot. Look at what is happening to the great bond market. Droppingbond yields below 10 year bond yields for the First Time Since january, a sign of Investor Confidence in the nations ability to repay its debt yield. Greece resolving that last minute in pass over the terms of its Bailout Program with creditors of this morning, unlocking the way for debt relief talks and the disbursement of this next charge of emergency loans. The white line, the two year yield, the blue line, the 10 year yield. 90 minutes into the trading day how does a look over there . Abigail not a lot happening in the major averages in the u. S. Be on hold, perhaps before the french president ial elections sunday. And the fed to starting its meeting today with a policy Statement Released tomorrow. And then apple after the bell. A for investors to be on a holdout. The major averages trading unchanged in a mixed fashion. Even so, the nasdaq has once again put in another record high earlier in the day. Top to the bloomberg and look at what is happening sector wide. This is the imap on the s p 500. With the apple strength, we have the tech sector up top being the best. But on the bottom, consumer staples. It had been the financials moments ago. Lets look at the banks. Yesterday, the banks had been the best sector, but today, we have weakness from bank of america, jpmorgan, citigroup, and morgan stanley. And trump told Bloomberg News yesterday that you his he is breaking up the big banks. Is this something weighing on the shares today . Perhaps. But lets look at the 10 year yield. This is the more likely culprit. The 10 year yield had been up sharply higher by four points, whichw it is back down, could help the banks come off the lows and not be the worst sector. Finally, what is ahead for the 10 year yield . But grse, no one knows, btv 8237. Hitting an absolute record high it suggests the yield on drop0 year is likely to lower. Time will tell, of course. And we have the fomc meeting. Mark lets turn to oil. Shares of bp higher pay the company topping estimates on rising profit. Bps debt rising again. The highest level in at least a decade. Javier blas joins us now. Debts are higher, but the rising to 20 and the first corner from 26. 8 at the end of last year. Net debt the highest in at least a decade. How much is its worry . Reason lets go to the we have that 2 on the market. Profits are three times larger than a year ago. 1. 5 billion above. But you are right. The debt is the main reason why bp has gone up 2 rather than 4 today. 20 . Ve a quarter ago, we were below 27 . Ep has said they want to keep it under 30 . That is worrying to investors, because they see it is getting close. Unless Oil Prices Recover further or bp is able to squeeze more costs out of the system, the debt will for sure increase next quarter and get close to the limit. Mark the question Oil Companies that asked all the time is is the dividend safe . Safe. i think it is bp has three places they need to spend money. The first is pay the gulf of mexico bills. Mark which is dissipating. Javier it is dissipating. They paid 2. 3 billion dollars. They expect to pay about 5 billion this year. More or less half the money they need to spend. That is the first thing they need to pay. The second and they say they will pay about anything else is the dividend. The dividend will stay there. The third thing is investments. Dp has said they will invest and 17 15 billion billion this year. If you look at what they have spent the first quarter, you clearly see bp going to the lower end of that 50 billion to 70 billion. I am sure that point was made on the Conference Call with investors and analysts. Bp will do anything on the hunt to keep dividends safe. Vonnie any idea if the amounts of spending being at the lower end of the typical range, is that anything to do with the administration or the types of projects we would look at from bp if they may be introduced influenced i am more oil friendly admission asian in the u. S. Administration in the u. S. . Javier no pay the Oil Price Remains low. At the of uti, oil prices below 50. Morenot see bp spending money, regardless of who is in the white house or how friendly that person is to the oil site to unless we see oil prices stabilize at 55 to even 60 a barrel. Vonnie any of the any updates on projects on the way, like canadian oilsands . Javier canadian oilsands is a sector very few Companies Think are safe today because of potential environmental costs. And the returns of Capital Investment are not as high as in other places. I thought it was interesting that bp mentioned on Shore Industries in the United States, where there is not a big position. I mentioned it on the Conference Call. Couldpotentially where we see bp, but i think the focus remains on deepwater. Mark thanks for joining us. Bloombergs chief energy correspondent, hobby or blasts have you blasts javier b las. Vonnie lets get to Courtney Donohoe pao courtney the ceo of united repeating apologies over the passenger jogged off of a book lane. Oscar munoz is testifying in front of a personal committee. We had a serious breach of public trust. I would like to again apologize family, everyone on that flight, and to our customers and employees worldwide. Aurtney united has reached settlement with that passenger. The airline also issued new policies to keep it from happening again. Trop says the nation needs a good shot down in september to fix the mess in the senate. The president said on twitter that the country needs to either elect more republican senators or change the rules to 51 . His,s, head of an expected vote on a bipartisan budget deal to avoid a government shutdown. In europe, german chancellor Angela Merkel has told vladimir economict e. U. Sanctions against russian will remain because of lack of progress in settling the conflict in the ukraine. Socleaders met in so she hi today. And theresa may acknowledged after ll not be easy brexit deal requires a strong and stable understanding of the complex issues involved. The clock is tipping desk taking the clock is ticking. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am Courtney Donohoe. This is bloomberg. Vonnie thanks pay a coming up, we are talking Global Real Estate opportunities. Brookfield Asset Management ceo bruce flatt joins us from the Milken Institute global conference. This is bloomberg. Vonnie live from bloomberg world orders in new york, i am vonnie quinn. Mark live from london, i am mark barton. Roughly 60 minutes away from the european lets get back to the Milken Institute mobile conference where leaders from business, politics, entertainment, and sports are standing by. Erik schatzker is with the head of the brookfield Asset Management. Erik thank you. That would be Bruce Flatt Kate here is that would be bruce flatt. Like every professional investor, you have to balance the need to deploy capital against the need to harvest capital. How are you thinking about that with valuations where they are now . Is brookfield a buyer or seller . We are always buying and we are always selling, just as a precursor statement. Generally in the United States and in the developed economies, while we are always buying something because we have a big deploy asset base and are finding opportunities all of the sign time, we are a net seller of all of those businesses. Where we have been putting a lot of money is in the emerging markets outside of the United States. Europe. And australia. We have done things in brazil, india, china. We are a global business. Our advantage is we have scale money. We are global and have operating people. We can move our money to the places where value is. Financing, particularly for assets in developed markets, has become their easy. Are you surprised by the terms in which deals are getting done . Bruce in business, nothing is ever easy. Financing is never easy. But there is no doubt. Spreads are tight. Interest rates are low. Therefore, we are financing as long as we can in all of our business. Erik turning things out. Churning things out. Bruce truly, it is a phenomenal environment. Just because we are in a lower for longer environment. Therefore, we are churning out as long as we can. Not because you think rates are going up any major extent area we think of this cycle for sure, we are in a lower rate environment. We have always said and have been saying the last two years onare going to see maybe 4 the 10 year treasury in the United States. It seems like they are going to have to push to get it there. And they are pushing pay that is good did it means the economy in the United States is doing well. Going do not see rates any further than that. If we are in that Interest Rate environment, it is good for our assets and for real estate owners. Erik how much do you think tax reform could be a tailwind for the economy and, by extension, drive up on yields to the 4 level that much faster . Bruce toxic form is a great thing. If we can get through tax reform any country that can encourage business to put money to work will drive greater gdp. If what goes along with that, often, is a slightly higher growth rate and therefore slightly higher Interest Rates what it does not mean is there is not a paradigm change in Interest Rates. What one has to think about is if japan has Interest Rates that are zero out to 30 years, europe has Interest Rates that are 0. 25 , and gilts are 1 , there is an enormous amount of money in the world that needs to invest. That capital has to come largely, it will come to the United States. This is the largest liquid mica in the world. Erik there market in the world. Erik there are a lot of questions about tax reform. Are you applying, perhaps, extra caution because of those questions . Bruce no. Half hour business is here. We are just running our businesses. And we run this is is is for the next 25 years, so we are not speculating on tax reform or worried about tax reform. It will be great if it happens, but if not, we will figure it out. Need to build no in an extra margin of safety because of the deductibility of interest expense may be one of the prices that we pay for lower Corporate Tax rates . Is a good question. I would say we are comfortable that the administration of the United States are smart people, and they will figure out the right plan for business. We are not doing anything different today than we were before that. Quite excitede about what is going on in the United States today. Erik you are . Bruce yes. Erik broadly speaking. Bruce yes. The economy has been doing well since 2009. The economy keeps Getting Better every year. It is just Getting Better. Housing sales are going out. Erik not everything is Getting Better, though. Do you believe in the death of the mall . Malls areat retail phenomenal investments. They always have been. They will be Retail Entertainment destinations. They have always had to of all with trends that evolve with trends that are happening. I would differentiate. What i will tell you is great retail in america will still be a great investment. That does not say there is not a of retail the are important investments. What that means if you do not have great retail, you will struggle. Erik i have been walking through new york city, walking through soho recently, which we always thought of as great detail. Storefront after storefront shuttered. What are the implications for manhattan real estate . Lets forget about soho for a moment, but if you are thinking about a building, if you cannot lease out the ground floor and the sub ground floor to asset values . Bruce i say two things are happening. One, rent. Pretty high. The current people in the space cannot afford the new rent, so someone else has to come in. That is a transition going on in the market. Some places, people were just expecting too much. As in any business, sometimes, people make mistakes and pay rent based on a rate that will be escalated. But that will get sorted out. These great cities and urban places, london, new york, they get debtor and better every single year. There is anada, alternative more its lender, home capital, going through somewhat of a crisis of confidence. The question there, and it may be a question with implications beyond canada, is whether it in theick the bubble Canadian Mortgage markets. Do you have a view . My view is brca the canadian Banking System is one of the best in the world. These are unbelievably wellfinanced and wellrun organizations. Very good. Iting is insurance policies from the Government Back in on mortgages and the way mortgages are underwritten is very good. Ins is not a systemic issue the country. It will not be a problem. I think all of the banks will be fine. Whether it deflates a little bit of the housing market, i do not know. That is maybe a good thing. I expect 30 increases last year in toronto are not based on fundamental increases to their are more buyers than sellers with foreign money coming in. But that is not a problem. Erik great seeing you. That is bruce flatt, the ceo of brookfield Asset Management. We are at the Milken Institutes global conference. To you in london, until i am back here. Mark bloombergs Erik Schatzker there. Big lineup of guests continues. Joined by tom barrack this afternoon and kyle bass. Just five days to go before the french president ial elections, part deux, as they say. Candidates are stepping up their attacks as polls show Emmanuel Macron in the lead. This is bloomberg. Mark lets take a look at where your. Markets where european markets are trading as we enter the end of the tuesday trading session. By better than expected earnings by bp. Lets check the currency board paid the big fiscal event takes place sunday. Frances second round of a french president ial election. The euro down against sterling. The year off against the dollar were the dollar marginally. Strong pmi manufacturing data out of the u. K. And the eurozone. Yields gaining in germany and italy. The close is next. Live from london and new york, this is the european stocks finishing the tuesday session hires says august 2015. The more defensive Industry Groups rising today, outpacing autos. Chemicals declining. The best run since may. Everything you need to know about the stoxx 600 today. Bp big earnings today. Oil prices climbing. The Company Continues to cut costs. Rising again, reaching the highest level in a decade. The continual rise in borrowing highlights how bp is struggling to recover their commitments, which includes billions of dollars of payments related to the gulf of mexico 2010 oil spill despite an increase of oil prices are 50 in the last year. 28 versus 26. 8 at the end of 2016. Net that is 26. 8 billion. Since the beginning of last year, sharon is a performer. By bp. That is the secondbest performer. Would check out the difference between the french and the german 10year. We are down 49 basis points. We are down to a level since we havent seen since january 17. It was last monday we saw most of the move when the yields, the spreads narrowed roughly 19 basis points. 20 point pulling late. Lead. Inling we have a busy week ahead. I want to bring back data to china. There was big manufacturing data. According to bloomberg intelligence, the slide in the key gauge of factor activity added to the impression that chinas 2017 growth is past its peak. The official data is the white line. This is the blue line. There are a few things to point out, including the canadian dollar. It is getting weaker as we continue to trend water on assets. Same with the