Paris climate accord. We will get a view from the chairman at the same peter st. Petersburg economic form. Theresa may gets lambasted by other Party Leaders for her decision to skip a televised debate a week away from the election. Will it matter to voters or have traders priced in a may majority here question mark we are less than half an hour away from the start of european trading. Lets take a look at futures. Little change on the dax index urostoxx upu do see er cnd the ftse and cap up ca up. Take a look at what we see happening in forex. The aussie dollar is dead, the british pound is bid create after caution data out of china that goes the way of the positive pmi data that we saw yesterday, telling two different tales and the pound were watching very closely ahead of this u. K. Election. Also if you take a look at the commodities, you can see that lean hogs are ripping faith might you love your pork here in britain and in germany. 2. 5 and we do a c we do see a big move in bonds. This blackbox mean it means it is more than three standard deviations away from the average. If you have a gmm on your bloomberg look into that panel and get the top stories as well. Lets go to hong kong where we will get bloombergs first word sophiecivic kamaruddin. Sophie in the u. S. , President Donald Trump will announce at 8 00 p. M. U. K. Time his decision america will leave the paris climate agreement. According to two people familiar, he has not yet decided whether to stay in the landmark deal but is leaning toward quitting. Tesla and spacek ceo elon musk america will leave is leading corporate backing for the accord and said he will resign from white house Advisor Council if the u. S. Abandons it. China and the European Union plans to commit to free trade and the paris climate pact in a sweeping rejection of Donald Trumps protectionist policies. The two sides up. The document to give additional heft to euchina talks including the chinese are mere today and tomorrow in brussels. Angela merkel suggested the u. S. Had become an unreliable partner. Fired u. S. National security advisor Michael Flynn and donald longtime personal lawyer has been subpoenaed by the house intelligence committee. The panel is investigating russian efforts to influence the u. S. Election as well as leaks of classified information and reports that identities of Trump Associates captured in spy intercepts may have been improperly unmasked. The u. K. Prime ministers decision to skip a televised Election Debate threatens to rebound on her as other Party Leaders say she is unfit to lead. May decided to stick to her decision not to take are given the Labor Party LeaderJeremy Corbyn announced earlier yesterday he would appear. Leadership is about understanding the people you represent. It is about being compared to learn. It is about not being so high and mighty you cannot take advice. It is also about bringing people with you. That also about ensuring your responsibilities to protect the safety and security of everybody in this country and to lead a government that cares for everybody in the country. Is next. Rudd the Prime Minister is not here. She cannot be bothered. Yourself . Ke you are not worth theresa mays time. Do not give her yours. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Is bloomberg. Matt lets get more on the u. K. With just a week to go until the election. Mark cudmore from our mliv team in singapore joins us. Wash watching the pound every day as we get closer to this election. What do you think about where we see in trading with regards to what we are seeing in the polls noshow at thes debate last night . Mark there seem to be a lot of despair at the debate by the fact that she had not turned up and it seemed like another blow for the conservative party and it seems like their large majority is eroding as we move into the actual election date. Most polls, all polls still give the conservatives the majority but it is getting narrower. There is more certainty. At the moment all these headlines about the election are an excuse to trade the longterm fundamentals which remain very negative for sterling, that is a large negative yield. As long as there is increasing certainty, anything can be skewed as an excuse to act against those fundamentals. Matt there are a number of other things outside the u. K. That you guys cover on mliv and i wanted to touch on them. One of them is what is going on in japan. Is the nikkei flirting with omics working . Ben mark there is some evidence it is working. There have been 2. 5 million jobs added sinceomics working . Abe took power in december 2012. That was a multiyear low, that month he took charge. He has added a lot of jobs to the economy and there is sounds of a signs of a growth pickup. They are not getting inflation but many countries are struggling to generate inflation and that seems to be due to structural issues. Japans economy seems to be doing relatively well. Maybe we should stop focusing so much on this inflation number as being the ultimate goal for central bankers. U. N. Let me ask about the yuan. What is going on with the chinese currency . Mark the u. N. Has been one of the big themes. It is starting to strengthen properly. The market tends to have an. Nordinate focus on dollar yuan it is stored by their bigger dollar moves. The yuan is starting to appreciate against the official Chinese State basket. The yuan is strengthening on a broad aces and it seems the whole regime around the yuan is changing. So far we have seen the yuan in a gradual, steady downtrend for all year and it shifted this week. It does seem that the moodys downgraded has been one of the catalysts to spur the pboc to make the yuan stronger and send a message that they are not going to let it weaken any further and perhaps hopefully attract capital inflow that will make up for the liquidity they are taking into their you leveraging drive. Matt one final question on our tour around the world. I love how mliv is able to cover all the regions so well. We have been talking about russia this morning, the ruble has caught my eye. Over the last year it seems to be in a trend. It has the ruble continue to come back, have we seen continued strength there . Mark the vrable has been one of the more reliable appreciation trends. It has kept on going and it has been solid no matter what happened elsewhere. That may be about to end. Ruble has appreciated beyond where oil has done. Oil has stopped appreciating. The ruble has done well. Inflation is under control in russia but they still have a growth problem. They will need to cut rates aggressively in the months ahead and that will remove that pillar of support and the ruble will stop outperforming oil. There is room for a two way trade. You. Thank you can follow live Market Insights on mliv. The blog has been on fire lately. I recommend checking it out. Coming up on the program, we will speak exclusively to the European Commissioner. That interview next as there is so much swirling around relationships with russia, relationships with the u. S. , relationships with china. Were back at the saint heres break international forum. We are talking renewables and energy. This is bloomberg. The open is 20 minutes away. Matt welcome back to lumber markets, the european open. Good thursday morning. I am matt miller live from london this week. I want to go to hong kong because we got we want to get you your Bloomberg Business flash with Sophie Kamaruddin. Sophie barclays is increasing the size of the stakes it is selling in its south african unit to raise 2. 9 billion dollars. The londonbased lender is offloading 285. 7 million shares of Barclays Africa equal to a 33. 7 stake create it has plan to sell a 22 stake as part of a plan to shrink operations and bolster capital. And agreeing to sell nonperforming loans with a value of 2 million euros. According to two people with knowledge, the sale was in line with the net assets and has no Significant Impact on the italian banks capital ratios. Mitsubishi motors may have to abandon one of its bestknown models as it tries to recover scandal. El economy speaking as closely to bloomberg, the carmakers ceo says he plans to increase spending on r d well considering whether to keep making the likes of the pajero suv. Whether we continue with the model depends on whether there is a market for such a vehicle. We need to decide if it is worth investing a huge amount of money and Human Resources to prioritize its development. Sophie apple has started manufacturing a competitor to echo and google home speakers. Could see theer speaker later but it will not be ready to ship until later in the year. It will have virtual surround integration with apples product lineup. That is your Bloomberg Business flash. Matt thank you. Lets talk the u. S. And banking. We caught up with Morgan Stanleys ceo james gorman. We started by asking him about the strength of the Worlds Largest economy. James everybody is adopting a wait and see in that is part of the positive market and part of what explains the lack of activity. The administration came out with a very bold agenda. Obamacare,replace introduce major tax cuts, redo naftanegotiations across and china and the European Union, reassess nato in defense spending, reassess Climate Change and the imprecations for the u. S. , encourage companies to bring jobs back to the u. S. Rather than off shoring, this is a world of legislative and regulatory change potentially. Four aprisingly them a new administration, it has been tough sledding. They have had to get their own house in order and i think the disappointment of the replacement to obamacare, the fact that there was more work done on the repeal than on the replace has set back the agenda a little bit. For the broader economy, we hope the administration can polson of this stuff together because we need progress on some of these legislative programs. Are you concerned about the u. S. Economy . No, i very encouraged about the u. S. Economy. The dirty little secret here is the u. S. Economy is doing just fine. Fullve we are at almost employment, 4. 6 on appointment rate. There is very little inflation but we started to see early signs, we have been doing to rate increases and expect to have more. The Consumer Debt is a little high but housing prices have recovered from the crisis. State and local government deficits are better and good are better under control. If you look objectively the u. S. Economy is doing fine. Not great, but fine. Next do you think markets are pricing in political risks, are they overvalued . James they are trading at a relatively high models but look at the earnings. I do not know the earnings numbers but they are 10 or 12 . That is pretty sporty. The market look at future cash flows. They suggest a growing economy. In that environment, people are surprised the market reaches all time highs. With the same multiple and the growing economy all day you should every day you should reach an alltime high. That is not a surprise, it is it an expected outcome. Are we getting there because the multiples are inflated or because earnings expectations are growing or because there is a lot of froth in the market and i think right now, i do not see tremendous upside without further confirmation of the earnings story but i do not see [inaudible] that is our exclusive interview with james gorman. We will get you more of that throughout the day. We are minutes away from the open. Up next, we will give you some of the stocks it you want to keep your eye on this morning. One of them that could be interesting, today is the forline day for ppgs bid akzonobel. We have a couple of banks saying that trading was week this quarter. We will have your stocks to watch next. The open in 12 minutes. This is bloomberg. Back to Bloomberg Markets, the european open. I am matt miller in london. The chinese pamir arrived in brussels today. He is expected to discuss trade investment and Climate Change. This as part of what could be a private from german chancellor Angela Merkel toward asia. What is the future for europe and the euro . Services policy chief joins us where he is a speaker at the economic forum. I want to ask you about the german chancellors comments on sunday. That europe has to decide its own destiny and maybe can no longer rely on the u. S. As the partner it that it has been since world war ii. How do you feel about europes relationship with the u. S. Under President Trump . Guest as regards the euu. S. Relations, we have a longstanding Strategic Partnership which is lasting for decades so i think this Strategic Partnership can also survive somewhat Turbulent Times and still, we believe it is important that the western democratic world is cooperating closer among themselves. Matt how do you feel about the seemingly protectionist and that concerned the other leaders at the g7 and sicily last week . Guest the point wasguest mader from the eu site that we remain open for trade and remain open for Economic Cooperation and four other partners to follow similar policies. What othersee partners would take in terms of concrete steps. So far, we have had a lot of political rhetorics, but then we need to see what really that concrete steps and assess our direction. Matt if you look at the that other members of the g7 had last week, ranking top among them was Climate Change and i want to give it to china here. I have that a chart, you cannote it but it is pretty clear, china is the biggest polluter in the world, country in one third of Global Carbon emissions. If you look at it per capita, the u. S. Is a massive polluter. The only bigger polluters in the world are austria and some of the emirates. How important is it that the u. S. Stay in the paris accord . Guest we believe that this is one area where the eu can take a lead globally. We address this decision of the u. S. To leave the paris agreement. We note, however, that legally, it requires certain steps and it takes time. It takes years to quit the paris agreement. This will be one of the topics also in youchina summit, how we can cooperate closer to tackled the Climate Change. Two can you bring those issues together we have discussed . I mean trade and Climate Change. This is not just an issue of pollution. This is a financial issue. The strength that the german economy, for example, has shown because of it Clean Energy Initiative is impressive. Can you also bring those two issues together when you talk about china, clean energy, building up a stronger economy, using that kind of investment . Absolutely. Europes example has shown it by taking the lead in developing clean energies. Many of those were noble energies, clean energies are emotionally viable. They are creating many new jobs. Currently also looking to address Climate Change issues by putting also more Public Finance into the work for Climate Change, for green purposes. Level groups high working on those. Also how we can put Public Finance to support the grading of the economy. Greening of the economy. Matt as far as europe is concerned, do you expect we will see European Finance minister anytime soon, is this necessary . Just yesterday, European Commissioner published its reflection paper on deepening economic and Monetary Union and longerterm a part of the reflection paper, we are assessing the idea of europe area treasury and euro area finance minister. This is a topic which we are putting up for discussion in an way and now we are willing to listen to what member states, what other stakeholders would tell to our initiatives. Way and now we are willing matt ford a lot of europes problems be solved if we had a more federal model for the eu . Yesterday, the reflection paper is andentrating on economic Monetary Unions, this means the eurozone. We are not building a federal model. We are rather concentrating on what shortcomings the current institutional architecture of economic and Monetary Union has. And how we can address it, how we can start the process of convergence in the eurozone, how weekend support countries facing how we can support countries from facing economic shocks, and a stabilization function. How we can streamline social concerns in our policymaking, and a number of other areas. It is a matter of addressing the remaining weaknesses within economic and Monetary Union. As theozone considers euro has been a success, it has had a high rate of approval among eurozone citizens, 72 of the euro area citizens are supportive of the euro, and we must ensure that the euro and eurozone continues to exercise. Matt without we would have a deal on may 22, do you think we will have a deal with the junior group on greece . Do hope so, because from the European Commission side we have made an assessment of greek compliance with Program Commitments and greece is delivering on its side in terms of fiscal targets. Greece is substantially o