Equities european right now, 30 minutes until the end of the tuesday session. Gmf go is your function. The european benchmark down for a fourth day, worst stretch since march 7. Common currencies falling, the ones at the bottom, including the pound, rising against the dollar. Sovereign bonds is your final three columns. You just heard before from the chief executive of ryanair, michael oleary. Ryanair planning to accelerate european expansion, taking on financial woes as regional competitors reduce ance on and in certain uncertain u. K. Market. We are going to add two or three more 737 jets to its existing delivery schedule while extending leases on 10 other planes through 2019. Rising demand helping push profitability for the fiscal year through the end of march up by 6 . Passengers increased 30 to 120 million, bolstering profits despite a 13 drop in shares. Sticking with airlines, the owner of British Airways was not trading in london yesterday because of the trading holiday. London, they were earlier down as much as 4. 5 , the most since july last year. Ba scrambling to explain how a local computer outage could lead to thousands of stranded passengers over the weekend. The full flight schedule was due to resume today. Damages for compensating customers is estimated at 100 million euros, about 3 of the annual operating profit of parent iag. The parent company. Out of the euro area Economic Confidence, falling for the first time this year led by weaker readings in services. The retail sectors, the decline in executive and Consumer Sentiment was unexpected, but it still leaves the index roughly at its highest level in a decade. It is the first modest stumble by the eurozone economies for this year, which has shown continued signs of strength leading up to next weeks ecb meeting. Draghi highlighting the necessity for negative rates as the Company Continues its resurgence. Day,nutes into the trading what is it looking like . Julie we have a narrow trading range. We saw this last week in the weed up in the lead up to the holiday. Folks are back from memorial day weekend and we dont have much of a pickup in trading. The major averages down very little. Dow Jones Transportation average as well. You may have noticed that the dow has failed to retain new highs like the other major avenues. Some folks have pointed to the fact that we have not seen the dow Jones Transport remake new highs as well. Indeed, march 1 is the last time the dow closed at a high. The transports are down almost four and a half percent. The industrials are down just one third of 1 . Transports have lagged. Why . We have the component groups looking down broken down here. Airlines had a rocky road but they have recovered. It is really village just its as well as the truckers that have been lagging. In particular, they have been lagging over the past month. That is holding back the transports. What is holding back the dow overall . I looked at the laggards since march 1. Return on these companies. Disney one of the worst performers in terms of point reduction to the dow. Ibm is well down. Goldman sachs down 11 and nike has been lagging. Lets bring it back to today. The worst performers in the dow. Goldman is still on the list. If you look at the intraday chart of Goldman Sachs and what we are seeing, it is one of the worst performers. Jpmorgan one of the laggards as well. As well. The laggers we see yields pulled back slightly in todays session. Mark . Mark a series of missteps by theresa may and her advisers along with the populist Labor Campaign put the Prime Minister on the defensive but mays lead in the polls is slipping away. That labor leader Jeremy Corbyn cant be trusted to navigate two years of breakfast talks. Of brexit talks. He is simply not prepared to govern and not prepared to lead. He is not prepared to use the nuclear deterrent. He is not prepared to take action against terrorists. Thes not prepared to give fleet the power the need to keep us safe. He is not prepared to make difficult decisions for the good of our economy. Government reporter spent odonnell, svenja of donald . She reverted back to attacking Jeremy Corbyn, so she would say, im the least worst option. I think the problem we are seeing is backfiring on her strong and stable message. This constant attack on jeremy it,yn, he is not up to its going to be chaos but also a series of targeted things linking him to the ira in the past, but then when you get Jeremy Corbyn, he may not be great, not the best leader, but he is not that doublefigure theresa may is trying to portray. There is a little bit of confusion. Boo he did make a slight boo today. He couldnt put a figure on the cast on his childcare plan. Never underestimate labors ability to shoot itself in the foot. This is the exact kind of thing that Jeremy Corbyn messes up on. If you have a cost thing or a tough question involving figures and how you are going to do this. The problem is that at the moment, the tagline is that he is evil. Being fairlyact by principled and a fairly nice guy rather than really attacking the policies. They are going for personality. Labor is reporting by saying we are offering a different kind of leadership. Theresa may is still well ahead in the polls. But we are not yet talking about is going to run around and completely win on effectively. Ofnie the question security, theresa may saying he is not prepared to be a nuclear deterrent, to be an aggressor in terms of trying to get other countries to not use Nuclear Weapons but it is not quite clear his supporters would want that kind of leader. Where does he get extra supporters from . How does he draw theresa mays supporters away or convince them between now and thursday . That is exactly the problem. We are seeing some gains towards labor. One of the sections they are our that we are not very comfortable with that. Think a lot of people really want an opposition but are still not sure about corbyn himself. So they want to traditional labor but he doesnt quite deliver on the personality side. I think what we are really seeing here is not so much labor Winning People but people being a bit fed up with this constant line of labor is awful and we are the true solution when, in fact, may has been guilty of chopping and changing herself. Vonnie even if it is a theresa may win, but say by a lesser majority then we had maybe thought at one point. Does that give her any less of a mandate to govern . , for example,le or maybe from labor to have more of a voice . There hasnt been much opposition in the last few months. That is absolutely true. Bear in mind, the kind of majority we are talking about which was 100 seats, which was tremendous, i think if we get Something Like 50 seats it will still be a stronger government than we have seen in some time but with a few more labor mps, what many people in markets are saying is maybe we will get a little bit of moderation on brexit, maybe we will get a little bit of operation opposition. And perhaps some of the more that sheolicy ideas made so dearly in her manifest error manifesto they be tempered. May be tempered. Roughlye a majority of 17, we are talking about various versions of hard brexit. But if you have similar majorities to what she has now, hard brexit still . Softer version of heart . Hard . The Prime Minister called a snap election to strengthen her hand but if it backfires it is going to damage her credibility and her credentials as a strong negotiator. So she will still be held hostage to some of her backbenchers. Here is how worry to play out negotiations. She could be the laughingstock when it comes to european leaders. Language and see. Ave to wait member where we were in 2015. The polls are not always to be trusted. There is certainly more momentum behind labor now. But the conservatives are targeting very significant seats in the north and midlands and that could pay off. Mark good to talk to you. Bloomberg u. K. Government reporter. Svenja odonnell. Vonnie lets check in on the first word news. Emma chandra has more. In the u. S. President trump is ratcheting up that debate with germanys chancellor Angela Merkel. He tweeted that the u. S. Has a massive trade deficit with germany and that the germans pay less than they should for lehto for nato. The president commented that this would change. Over the weekend, merkel said that dependable transatlantic ties are in some extent over. There are reports President Trump will shake up his white house staff now that his medications director has quit. He has been working closely with press secretary sean spicer. Consumer spending in the u. S. Signals that a Second Quarter rebound is on track. It could increase for tense up 1 in april, the most since december. Incomes rose the same amount. The feds preferred gauge of inflation did slow down and it is below the 2 annual target. The former dictator of panama who was ousted in the u. S. Invasion has died. He ran the country from 1983 to 1989 and was once considered a u. S. Ally. The u. S. Accused him of rigging elections, having ties to Drug Trafficking and order his opponents killed. He was arrested in 1989 and spent 22 years in u. S. And french prisons. He was 83. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am emma chandra. This is bloomberg. Mark . Mark Deutsche Bank chief executive john cryan weighing in on relations. More on it, neighbors to the east. This is bloomberg. Vonnie live from bloomberg World Headquarters in new york, i am vonnie quinn. Mark from london, i am mark barton, counting you down to the european close in roughly 14 minutes. Deutsches chief executive john cryan spoke in a conference in new york, saying europe to focus on its neighbors to the east after Angela Merkel signaled that relations with the u. S. Have changed. She gave one of the most important pieces speeches she has ever given. That was aspeech real keynote address, following the g7, in which she made a clarion call for europe to start looking after itself. Mark he spoke about the proper potential of asia for deutsches and the outlook. Joining us now is stephen iran lenders. S the german it is interesting he made such a big issue of Angela Merkels weekend speech where she talked about the developing relationship for the better or worse between europe and the United States. Correct. S absolutely i firstly was surprised he made such a big deal out of it. It is a big deal for europe but it is not clear how much of the but it is for Deutsche Bank clearly, a speech has had an impact on john cryan, the ceo and it is clear he is thinking a lot about the speech and i am pretty sure he is thinking about the response of the banks to the speech. Mark it was an interesting speech by him. Things, about lots of the ecb, italian banks, asia. What were the highlights . Certainly, the comment on merkels speech and potentially turning away europe from the u. S. He said the french elections were a good thing. The outcome shows populism is not making headway as much as people thought just a few months ago in europe. You also talk he also talked about basil. He is not surprised but he thinks things will come to affect. Those were the highlights. Vonnie he must have been licking his lips when chancellor merkel spoke like that because Deutsche Bank is based in frankfurt, one of the places where banks would consider going , except for perhaps it may not be as exciting as some other cities. The german chancellor is talking about europe coming together and regulators are moving, then frankfurt could be banking rathere than some other city. Is that possibly why he is so excited . I dont know. I think what he was trying to do in new york, he was pitching europe as an investment and the Investment Community in new york, and he was saying that europe is looking good. It is looking better than the u. S. Has an investment opportunity. In terms of breakfast brexit, that will have ramifications. Johnink john kline cryan is concerned it could have negative implications. If it was moved from london to frankfurt or the euro area, for that matter, it wouldnt be a good thing necessarily. It would benefit the euro but not necessarily the euro area. Vonnie what about his bank and 3000 early 300 retirees . It is a significant first step. The ceo said he wanted to reduce the workforce by 9600 people four years. T they havent made much headway in that respect. They are saying, we are offering for you guys to go. It is a signal begin first step and i have heard from people inside the bank that they like the offer. Likely it could be a good takeup and by the end of the itond quarter, how much would have been and how much it impacted the banks. Thanks a lot. Bloombergs Stephen Allen joining us. Mark we will hear from president John Williams, his thoughts on chinas slowdown and tax policy in the United States. Vonnie a rare and exclusive interview with former Hedge Fund Manager hilltop own. He is back. And putting his money to work. Find out where at 1 00 p. M. Eastern on bloomberg television. Mark live from london, i am mark barton the european close roughly seven minutes away. Vonnie from new york, i am vonnie quinn. That president John Williams says he is not worried about chinas growth rate but the longterm sustainability of its Financial System. Here is an exclusive interview in singapore. There are risks out there and i think the typical ones that i would highlight is obviously that factory outside the u. S. Europes economic recovery going . What happens in japan and asia and the u. S. . Watching the developments in china, asia, and europe and making sure we are continuing the momentum in those areas. Obviously, in the United States there is a lot of concern over tax policy and where other policies end up in that is something that is outside the feds control. I just watched those Developers Like everyone does. Have an effect on the u. S. Outlook over the next few years. And bring greater clarity on some of those proposals and moves from congress. You touch on china, saying that is when you are watching. No threat of a hot landing, but are you concerned about china . Im not concerned about the slow down because this ratcheting down of growth that we have seen is exactly what you should expect and that is what you should be looking for in a country that has had rapid growth over the last 30 years. That, to me, is a sign of realism and a feasible kind of growth. What worries me in china is not this year or next year. That is well under control. It is this issue of the significant buildup of debt in the Financial System which really poses a risk over the next five or so years. China has been able to manage those risks and come up with geted with ways to through that in the past so i am not sitting there, worried about a hard landing but it is watching some of the risks. Vonnie that was San Francisco fed president John Williams speaking in singapore. Mark take a look at european equities heading to the close. We are roughly five minutes away from the end of the tuesday session. It is a day of declines. London was closed for the bank holiday but we are back in the game today. Check out the currency board. Showing the tories lead is wider than the five percentage point shared by you have on friday. Percentage points. Sterling is up against the dollar today. The bond board, attention on italy. Focusing on markets in just a second. Italian yields lower now. We will explain it all in a minute. This is bloomberg. Mark live from london and new york, this is the european close. Finishing out the tuesday session. The bank holiday on monday. , thedays of decline largest losing stretch since march 7. We will explain why with paul dobson. This chart stood out to me. Last year investors jumped at renewable to buy energy. Now they are getting a lesson from fossil fuel. Utilities, which seemingly have lots to give, it is the biggest gainer on the dax index after jumping 48 . The advances almost 6 bigger than clean energy. Energy. Le line that is fascinating. Another company, for which coal and gas are the most important fuel, they have doubled the pace of its former parents. A quirk you are seeing in germany. Sterling we will talk about with paul. This is something that stood out from one of pauls team in singapore the noticed the moving averages for pounddollar. He said the sterlingdollar could be setting up for a sw repeat previous moves. Mark cranfield suggests sterling could be below 125. Sterling last friday fill the biggest decline, the biggest decline in four months after the poll showed the gap between the tories and the labour party shrunk to 5 . No poll has gotten worse than that. The gap is much wider today. A big piece of data today, in japan the jobless rates the lowest in two decades. Retail sales rising 1. 4 from march. The ratio of jobs to applicants, the blue line, increasing. The jobless rate is the white line. Is 1. 4 eight, the highest since the middle 1970s. Hows it looking over there . Of ae a little bit decrease today. Coming back from the lows last week. Heading off to a quiet holiday week. The yen back below 111, a weakness 5. 5 . Year, 93 basis points, the narrowest spread in some time. The South African rand, strengthening further. 13. 11 u. S. Dollar after zuma reestablished power. Higherth african ftse is off the back of a weaker rand. The turkish lira is having a good day. Not so the mexican peso. In terms of sovereign bonds, some of the ones to look at would be mexico. Lets get to abigail doolittle. She is having a de