For china . The bond market is ebbing. Fed signal a letter ate . Flattter r matt we see the ftsi as the as futuresner as far are concerned. The dax little changed and the cap pointing to a slight gain,. 1 of 1 . As far as the bund tray goes, investors continue to buy bunds, slashing down the yield. Maybe it is a risk off kind of day. Yields going down, prices going up, that seems to indicate that the reflation trade is fading and animal spirits may be back in their box. Nothing is happening at least in the first couple of columns. You see all that great theyre telling you you are not getting a lot of movement. Switzerland not doing anything, british pound, not on the move. The rc is on the move. Youre not seeing a great deal of action in the form the exchange market. It feels like markets are little asleep today. Where we are seeing action is the commodity space. Youre seeing a better big command to the oil trade. Bid coming into the oil trade. Rent crude trading up by around. 6 of 1 . Wti a similar story. The data is starting to get busier. Lets get a bloomberg first word news update. Heres juliette saly. Juliette north korea has conducted another Ballistic Missile test just a day before the first meeting between chinese president she just paying and donald trump. It fell well short of the exclusive economic zone. The launch was a major provocation, shinzo abe said. Bigceo made two pronouncements in his annual message to shareholders as the Trump Administration starts reshaping the government. The u. S. Is truly an exceptional country and it is clear that something is wrong. Jamie dimon who sits on Donald TrumpsBusiness Forum aimed at boosting job growth is voicing support for parts of the president agenda. The on Security Council will hold an emergency session today after an apparent chemical tilt 68attack in syria people. Western leaders have reported the use of gas on a town blaming forces loyal to damascus. President trump call the reprehensible and said it cannot be ignored by the civilized world. State media said the gas came from a rebel factory. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Guy and matt. Guy lets focus on france about debate gave a platform for all 11 president ial hopefuls but a loud room for fiery exchanges between the two favorites. Economicd an patriotism. We need for our business is to have an advantage in the opening of our public contract. That is true for businesses, for our industry. It is true for agriculture. We need protectionism because we cannot accept that our reduction be put in competition with products that do not respect the same norms create it is producing social dumping and environmental dumping. What you are proposing is nationalism. I come from a region where conflicts are. You have to know we are come from and where the separation will take us. Nationalism is war. I come from a region still filled with cemeteries and i do not want to go back to that side of the black line. No, madam le pen. Were far less candidates. Melenchon seems to have come across as the most convincing candidate. Will get some Market Analysis with our guest. First. O to paris there were these skirmishes between macron and le pen. Guest it was interesting. Lost her cool several times. You had the 11 candidates including the small ones who only had between zero and 5 in the polls. Marine le pen clashed with one of the small candidates, who claimed to be the real candidate of frexit. He wants france to trigger article 50 and theyve the eu. Marine le pen was accused of being too soft on her [indiscernible] she replied the plan was to brutal and emmanuel look on leron saying that marine pens plan to leave the eu would create an economic war and hurt the french. Marine le pen was not considered to most convincing according two snap polls we had. She was the fourth most convincing last night in this debate. Emmanuel macron convinced 21 of the people who watched it and hon was the most convincing. Matt let me ask you how the markets reacted to the debate. We could say there was not a huge reaction. Speaking from asia where i am based we can say that investors are not glued to their tvs in a way that they would be for the u. S. President ial Election Results coming in. There seems to be a kind of trellises in the markets. Stock he s p 500 stuck below the record high. People are waiting for the meeting between president xi and President Trump. We have nonfarm jobs coming up. We had one investor who told me she was waiting for the french Election Results. He was holding some of his trades before he saw the Election Results so the election, the debate the election yeah, the debate, maybe not so much. Matt melenchon turned up as quite a threat. What did you think of his performance, how did he do . Eloquent which is why he is considered often is the most convincing and that kind of exercise such as we had last night. A quarter of the french people think that he is the closest to he is on the other side of Marine Le Pen. He does not want to leave the eu. Cut down onwant to immigration. He is close to the people especially the working class when you see he wants for example to increase the minimum wage by 50 and introduce a 100 billion euro package to fight poverty. He also has this image of experience. He is among the oldest candidates. At 65 years old and he said he was ready to govern. We see if this is sustainable in the polls over the next few days. At the moment a runoff between nchon isnd mele possible. Guy there is quarter of a 17 starting to fade. You can see that in the ranges that were watching. Treasuries getting down pass the recent range they have been in. Is there any other reason why theyre issuing these warnings . For pimco in particular it is a change in rhetoric. They have been real bulls on tips, people who were warning that inflation is up so they are scaling back a little bit. There is some concern that oil is off of its highs for the year , theres some concern about the sustainability of wage growth in the u. S. And the broader background is the trump reflation trade is not happening. The trump reflation trade is turning into the trump collection correction. These inflation warnings are warnings that inflation is not going to be a big problem come true, it could be nominal bonds that outperform tips Going Forward. Interesting toe see that relationship. Youre talking about which markets that we see and which ones underperformed. Thank you. Goodman wes goodman joining us. Coming up on the show, the latest from china as north korea conducted other Ballistic Missile test a day before that trumpxi meeting. Where back to paris and an update on the french president ial race. We will speak to the deputy of the social deputy secretary of the socialist hearty. The opening 18 minutes away. Matt welcome back to the European Market open. 60 minutes left until we got start trading. We will get the Bloomberg Business flash with juliette saly. Juliette the Trump Administration is so long that chinese investors may try to buy westinghouses Nuclear Business that officials are trying to find an american or allied buyer for the company instead. According to two people familiar with the matter. Cabinet members including Energy Secretary rick treasury secretary Steven Mnuchin are the to discuss preventing purchase by a chinese link company. Approval one antitrust syngenta. Over regularsand chinese are reviewing the tie up. Deutsche bank has seen several senior employees leave after paying out compensation for previous years. Three executives have now left the trading unit in asia. In january europes largest investment banks last bonuses employees. A spokesman for the bank declined to comment. The ceo of lloyds of london has told bloomberg how global uncertainties are driving demand for insurance against political and terrorism risk. He told us about his growing areas for the market. We have seen an increase in demand for all kinds of football risk insurers particularly businesses are doing trade with other countries. They want to protect the fact that they might not get paid if suddenly a government puts on a ban of structuring money outside the country. There is great demand for that and things like terrorism insurance, there is uncertainty around the world and we are seeing a demand for that. Ofiette the former chairman sinopec has told bloomberg how Rex Tillerson had a knack for dealing doing deals in china. He said tillersons negotiating style could help diffuse frictions between china and the on north Koreas Nuclear program. Korea has conducted yet another Ballistic Missile test. It comes days after President Trump vowed to act unilaterally to address the threat if china will not. It comes a day before President Trump and his chinese counterpart meet for the first time tomorrow. Daniel ten bring kate in. Talk to us about how this action could potentially impact the chinese talks in the u. S. Today. Daniel the launch was fairly routine as far as news north korea goes. It would be capable of hitting the u. S. With a nuclear weapon. Those things did not happen but nonetheless, this action is provocative. It definitely airlines everybody that north korea is a big threat. Upth korea would have come one way or another but it gives a renewed focus to reach some sort of deal over north korea. Lets talk about how the chinese are going to react and what their preparations are for this meeting and does this launch give them any advantage or disadvantage that they are prepared to go to florida . Daniel this launch would not lay into their preparations. Thanks with north korea have been worsening over time and this has been a perpetual issue between the u. S. And china. Trump made this one of his top 4 isfour and policies so he sure to try to push the chinese to implement you and sanctions that would squeeze north korea economically. That is going to be on the agenda when they meet. The chinese might be willing to do so while they are an ally of north korea. North korea has been sitting them lately. They claim not to have as much leverage as the u. S. And other countries believe they do have. The chinese just might be willing to do more on north korea in return for some sort of broader deal, say if trump backs issuestrade and currency for the moment. And maybe the chinese also invest in the u. S. To create jobs to give trump some deliverables that he can say, i made a great deal in. The we will look forward to meeting. A lot of investor starting to join us. Daniel ten kate joining us from hong kong. We will look at the potential movers in todays trade session. Light from green u. S. Regulars for its takeover. Keep an eye on the oil stocks, on the mining stocks. Area ies bid this morning. The opening 10 minutes away. This is bloomberg. Matt welcome back to the European Market open. I am matt miller berlin. We are eight minutes away from the open of european trading. We want to get you a few stocks to watch this morning. U. S. Regulars gave china the ok to buy. Still awaiting eu and chinese oks for that deal but one regulator is down here. Another one i am keeping my eye on is Deutsche Bank for a number of reasons. First off, Deutsche Bank has lost at least three key executives. Leaving the bank as bonuses have been cut. Compensation is a real problem for Deutsche Bank and that is starting to hit home. Also according to a source shareholders have backed a capital increase. News to watch around Deutsche Bank and ranks in general. Some bankers asking to leave london to go back to their home market ahead of exit. A lot of bigger news this morning. Guy always interesting to our clients. Lets talk about what is happening with some of our stories and run up what is going on. It looks like it is done. Executive, growth for shareholders will be the ceo. Current sales and reservations, this is the uks housing market. Current sales and reservations are in line with views. The only thing i want to talk about is what is happening with the oil and mining sector. The only thing that is moving on my gmm map. You have oil up quite strongly and some of the commodities up. Andguandique indexes up some of the other asset classes. You may see a bit of an performance coming through from the london market and the results of a potential bid that may be attached to some of those names as well. The other thing to remember is china came back after its holiday and the housing stocks did really well. This will bring it back to these housing stocks. Matt we are going to get some big numbers today out of the u. S. Department of energy numbers as far as inventory is concerned on oil. They do not come out until 4 30 p. M. Central european time, 3 30 p. M. London time. Brent crude has gone through the upper Bollinger Band so giving technical traders a sign of a buy signal. Those will be overridden by any inventory news we get out of the u. S. Especially inventories are heavy. Are very excited about the Bollinger Bank chart. You can see it as oil breaks up toward the top end of that. If you are getting technical then brent crude may be an interesting place right now but as matt said, an awful lot of data coming out a little bit later. Interesting for these markets and the feedback and focusing for the inflation story which is worth paying attention to and you have seen what has happened with the pimco line and what is happening with the credit markets as well. A big story about what has been going on. The market open is four minutes away. The open is next. This is bloomberg. Europeantes until the cash open. Lets talk about where we are expecting it to go. What is going on in london with some of the other markets . You are seeing the missed. Ricing going up the dax up by just over 3 10 of 1 . A bit of a possible reason on this and that is on the gmm screen. Copper and the bloomberg Commodity Index higher. Gold a little flatter. What you may see i am speculating with stocks outperforming. That could help the london market more. Matt you talk about minors, i often think of south africa. It is a story i am obsessed with. Look at the rand here over the past month. You can see the massive takeoff. The worst week for the rand versus the dollar in two years. We got a little reversal here and now some brand strength finally. Taylor equities, lets talk about where we stand with equities right now. The london market unchanged. 1 10 of 1 higher. 7332. Toare expecting the cac underperform. Maybe a little strength coming through from the dax. London popping higher. We will break down the screen in a moment. For that, manus has the details anna is standing by with details. Anna before we get into europe, a little more from asia. Strength in commodities, we will keep an eye on that. The shanghai composite it for the first trading day of april. They were out for various holidays this week and we saw the north korea missile test focusing minds on the u. S. China dynamic, not taking the edge off of the equity performance, up over 1 . In europe, the stoxx 600, fraction. A gainingne of the best sectors up. 7 . Lets talk about the reflation trade. Something you have been dealing with and talk about are the gilt market opens up this morning with that in mind. The yield on the 10 year in the u. K. At. 05 . Reflation trade took that yield up to 1. 5 . Now it is down at the 1. 05 level. Just how much is that reflation trade done . How sustainable is the rally in gilts we have seen that growth lower. Gilts going up to 2 by the end of 2017. They clearly think there is a little more to go on that reflation trade there. That chartweve got that reflects the Deutsche Bank view on french politics. They think the euro will strengthen on a macron victory. Had 110 when we talked to unicredit earlier on today. In terms of political grist risk, citigroup not worried from an equities perspective. They moved equities to overweight despite political headwinds in europe. Anna, thank you. We will talk about what is going on with the french story in a moment. Details ofabout the where the equity market is going in terms of the individual stock stories and effects stories, the chart part and parcel of the story this morning. Thise the mov screen up, is the stoxx 600 breakdown and what you are seeing is an anticipated solid bid on some of the commodities stocks. Royal dutch shale, royal pimco, bp, php, topalov, glencore, those are where the money is flying. Those are the names where the money is flowing this morning. That is where the weight is in the stock story driving european equities on the upside. A quick look at the downside from expect index point of view. Money flowing out of novartis and astrazeneca. Seeing a fadearma this morning. It is an interesting story. The commodity story as anticipated, one of the strong drivers of this market. Matt absolutely, i agree. Eye on commodities throughout the day, you could see volatility in that sector as we get more data. Out of the u. S. , you can follow along on your ecoscreen on the bloomberg. Tempers flared in the 11 candidate televised debate in france. Macron attacking Marine Le Pen for her nationalist views. What you are proposing is nationalism. Flunk from a region where conflict between european countries, and john reminded us that you have to know where you come from and where the separation would take us. Nationalism is war. The region filled with cemeteries and i dont want to go back to that side of the line. Matt lets get the thoughts of our guest. The head of fixed interest at Investec Wealth and investment. Think for joining us. Butresting to see the drama how does that affect the assets you deal with . Is we avoideans french debt at the moment. That, debt. Is underlying assumption that Marine Le Pen will not win. The thing we are most concer