Donald trump and Hillary Clinton when their new york primaries allowing them to reassert control over their fight for the president ial countdown. Hans, this is your neck of the woods. You know so much about the u. S. You are looking at the bond move in japan. Negative yields across the early maturity. The 40 year now hans the negative yields story across asia is a big story people look at japan here to take a look at some of these numbers. We have 5 billion 5. 171 in terms of negative rates. A remarkable amount of offerings out there. This is the story of how much further negative you can go. This is what we will be watching as we listen for mario draghi. Aroline a phenomenal move ecb moving up for tomorrow here today, a lackluster day if youre looking at trading. The futures, signaling a down day for most of europe. We go down. 5 . The euro stoxx 50, we could see a. 4 . This after phenomenal sales in china. We are down 3. 5 of the shanghai composite. It seems to be the pboc hinting that maybe it is time to . Orbit corporateme to tackle debt. It could be a down day in the united states. Day. Could be a down we are seeing oil fall off. They could have something to do with the situation in kuwait. Down below wti down below 40. We see a stronger again this morning. In terms of silver, look at where that is. It is basically flat now. I am going to send it back to you. You are going to give me some news. Caroline i certainly am. Donald trump is reasserting his status as republican front runner after a big win. He built his Business Empire there and urging businesses to vote saying his main opponent ted cruz does not like new york. Hillary clinton scored an equally big win. She was expected to do well in new york having been elected twice as senator. The city of london should expect its preeminent role in the if brazil leaves the european union. Thats if britain leads the european union. If britain leaves the european union. Leaving the eu would diminish that. The justice secretary says if the british vote to leave the eu, the reaction from people would cause it to change beyond recognition. Something potentially even more exciting. He democratic liberation if we were to leave, we will have in the words of a former british Prime Minister saved our country bow our exertion by our exertion. Caroline global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. You can find more stories at top. Lets take it to asia where we are having so much reaction in chinese stocks. Down 4 . The biggest fall in seven weeks. We are coming off the initial lows, down 3 on the shanghai composite. Yvonne man standing by. Take us through this market action. It seems to be a rather late night. The discussion of the jesse, the economists discussion of the pboc, the economists. Yvonne we had this we strain on policy. We had this restraint on policy. We are seeing the stoxx taking a tanking here. The worst drop we have seen in months. That the january plunge we saw could be coming back into play. There is nothing that is triggered it. This is what it looks like throughout the session. We started things off pretty strong. As we headed into lunch break, falling into a cliff. We are now below that key level of 3000. Down close to 3 . We see the sector wise what is driving down the benchmark. All sectors in the red. It is technology as well as health care down. Much what could trigger this. This is after we saw Goldman Sachs also raise their forecasts for 2016 in china. Goldman sachs at 6. 6 . We saw that 6. 7 figure last week. Hong kong we have seen Holding Around those losses at 1 . Rsi als, the 14 day the 15 rally from that february rose to a softer pretty soon. Japan, the only exception. They are seeing gains. Kuroda saying there is no limit to qe. He thinks slow rates can continue on. Mitsubishi. On we are waiting for that briefing after these improper fuel economy tests. We are getting more details from zip from the Japan Ministry saying it involves the many cars cars. Mini the tests were related to data on higher. That briefing coming up in a couple of hours. Shares plunging 15 . The biggest drop in 12 years. Aroline 12 years, Caroline Caroline keeping an eye on all of those miners. Yvonne, great stuff. Joining us to dig into the news, guest in london is pau pau morillaginer we have a tugofwar starting in china where good news is bad news. Starting to see some sort of sign of light in the economy. Now we are worried about them pulling away stimulus. Pau the stainless seems to be working. Last year and in february concerns about the chinese having to devalue the yuan would be the worst news for everybody. The issue is the growth relative pick up has to take place very much supply driven stimulus. The credit before cycle has been postponed. The cycle is still coming. The issue that has been related the market ultimately it is not going to be the solution. Hans if we are in the situation and where we were a year ago, does that mean we have weathered the storm in china . We can start seeing german exports starting to pick up . Pau i think so. Inevitably there will be an impact. It might take three to six months for this to transmit into the trade cycle. That is a good news. Good news for those Companies Across the world that have the ability to export in china. Ou saw the data pickup trade data picking up. That will be good news for those have exports to china. The word of caution is the cycle which is the main issue for chinese Domestic Companies has something that will have to be dealt with. The shortterm concerns have gone away. Caroline we are seeing a down day being signaled. Very intertwined with what is happening in the oil market good how long before we can see a disentangling between the equity. Arket market how long before we can start to see a disentangling between the equity market . Pau the potential for devaluation. It is a part of the same issue. It is a structural issue. You will see some attempts with some policymakers to break it. You are not going to be up to escape. Caroline you are in the goldman cap . Well see a weaker dollar Going Forward . Pau i am not sure which cant i would be. I struggle to think that this Time Next Year we are going to see a weaker dollar at this current level. We will see a year differential layout. Differential play out. The dollar should be stronger this Time Next Year. Caroline i am looking for to digging into the earnings season with you. With us. Ying join us on Bloomberg Television exclusively later this morning, mervyn king. We will speak to him about the future of the u. K. Economy. Hat is that 9 00 amtek time up next that is 9 00 u. K. Time. Businesstlook for the and the International Risk factors. That is next. Hans good morning. This is hans nichols p s. A. P. Showed its firstquarter sales rose less than analysts expected. T had quote high visibility joining us now is luca mooch its luca moog. He joins us for an exclusive interview. Thank you for joining us. Give us a sense on why you are so confident about the visibility moving forward to the rest of the year. Luka thanks for having me. Y simpleer is relativel here at we exited 2015 on a very high note. Simple. We exited 2015 on a very high note. That growth has continued in the cloud is this. We grew our q1 business there. We have every expectation it will continue on the back of our strong in terms of our premise license business, it had a slower start. More or less only in the u. S. As well as latin america, europe and asiapacific were strong. In the americas, we see the number of deals that slipped at beennd of q1 have either side or on a close pass to be side early in q2. Our solution portfolio is richer than ever. Our business suite is enjoying very high interest from customers. We had more than 500 additional customers in q1 a long with many more to come for the rest of the year. We are confident even though we ,ee that is a part of the world the brazil situation, there will be continued volatility. Enterprise global has been strong across emerging markets which gives us confidence in achieving our outlook. Hans is brazil the biggest challenge in latin america . When we talk about volatility, it could be a downward trend in the economy there. Luka brazil is a special story. I would not put all of latin america in the same basket. You know what is going on with the pending impeachment against president bruce of president brucerousseff. This country is in a difficult place. We have seen that we have had ups and downs in our portfolios. Overall there was a negative investment sentiment. I would not say that for the rest of latin america. We had good performance in countries like chile. Brazil is supposed to be the Big Powerhouse of this region. When you look at other emerging markets, we had a very decent performance. China grew in double digits. Russia came back to double digit growth again. Overall i would say i am not too worried about the Global Economic situation. Brazil being an exception. Caroline i want to give your debts on to get your perspective. Alibaba clout alibaba cloud. What are you seeing in terms of the economy in china . Is india picking up . Quarters, both in q4 2015 as well as q1, we have been able to pose very nice growth in china. China is very interesting in the sense that the propensity to migrate solutions into a cloud is growing at a very fast pace. Chinese customers wanted to have it their way, so they rely on data that are built in country. We are partnering with a joint venture with the subsidiary of china telecom. We operate our success factor on Human Capital management. We are adding a partnership with. Libaba to expand our footprint this is an interesting market for us, not only at the very but acrossprises hundreds of thousands of fastgrowing midsized enterprises. Cloudill benefit from solutions that are delivered in country and with partners that have necessary expertise to operate data centers and partner with us here at partner with us. A very robust cloud operation. China has become one of our top markets in a very shortterm period of time. Were only beginning to scratch the surface. Signs in china should be getting pacedifficult in the fast and the fastpaced growth should slowdown. Look for opportunities to increase efficiency and s. A. P. Is delivering the solutions to help. That is why i believe will above the momentum in china. Caroline will he start to make acquisitions will you start to make acquisitions in china . Luka we have taken a clear. Tance towards acquisitions the acquisition which was our largest acquisition. We have an extremely rich portfolio and do not see the need for any largescale acquisitions in the first year of future in the foreseeable future. We always tried to fill nieces niches. Fill that was never a story of using m a for geographical expansion. I would rule out geographical expansion play in terms of our solution capabilities. We have the broadest solution portfolio that you can find. There are still smaller spaces that we might think about ling through some nice niche. I do not see any largescale m a on the horizon. We have nicely progress on the part already. Already down to a 3. 2 billion euros in liquidity. We are very successful in paying back our debt and getting back to our shareholders in terms of increased dividends. That will continue to be a priority for us. Many thanks for joining us. I heard a pretty clear indication that you may be snacking at the m a line. We will keep that in line in mind. Minutes away from the open of european markets. Up next, we will continue to conversation with pau morillaginer. That is going to continue. Caroline it is 7 53 in london. A beautiful morning out there for the city of london. Not so beautiful on the ftse 100. The arm holdings traded could rise 1 to 2 after its First Quarter sales beat analyst estimates. Now a guest in london. Pau morillaginer. Give us a sense of earnings so far. Weve only had 70 companies in the u. S. Unbalanced, we are seeing them beat overall. Is this because expeditions have been so low . Pau it is all about managing expectations. The party sucks and it turned out to be better than expected, you can be very happy. This is what is happening. Scrambling to reduce expectations. 10 lower levels this time. Probably you will beat expectations. The best picture still remains challenging. You are seeing a tugofwar, lower Profit Margins which could affect a earnings. It is all about Pricing Power. This is the time to look at what present power to companies have in this type of environment. The companies that have the and keep thosein Profit Margins relatively stable. As we get more visibility on whether the consumer is able to withstand higher rates, you might venture into other areas with more excitement. Over the next couple of quarters it is about bringing it back to home. And having more visibility even at the expense of growth rates. Caroline great to have you. Pau morillaginer with us for the next 10 minutes. Coming up, the market open. Coming up next. Caroline good morning and welcome to on the move. I am Caroline Hyde. Berlin. Hols is in where moments away from the start of european trading. A down day and it all seems to be back. Auto going lower. China going lower. Hans chineses stocks tumble. Economic outlook. Be estimates. The company says Macro Economic uncertainty remains. We will be speaking to the ceo and 10 minutes time. Ending the losing streak. And allowing the front runners to reassert control over their fight for the president ial nominating nomination. Lets take a look at what is happening we see it looks like everyone is negative except for the dax. It is pointing up less than 1 . That is what we are watching. Lets head over to nejra cehic. So much happening in the markets today as you were saying. Declines in china. We saw gains in japan. What is been happening in the 40 yearnd market bond yield has fallen to a record low. All of the countrys bonds yielding below 4 at the moment. A lot to talk about. Lets take a look at the open. Were getting signals in the future market that we could see a lower open. Stocks are followingor the first time this week. 2 . 100 down cac 40 up by. 4 . This could be we are seeing commodities cut off the highs we saw yesterday. The bloomberg had its biggest down after wti kuwaiti workers ended their strike. The strike that has been supporting over the last couple of days. We want to highlight the best performing metal on the bloomberg commodity index. It is up by. 2 right now. It is unable market, up more than 20 from a recent low. There are some signs that the bullet run the bull run has for silver. They are in fact the most bullish ever. Caroline. Caroline lets begin lets big in. Outperforminge telecommute occasions on the downside. It is energy, often by. 5 . Oil trading lower as the kuwaiti strike is coming to an end. If youre digging into enter individual movers, keep an eye on heineken. Volume is beating forecasts. Booze to be of buying into today. Pau morillaginer, it is a down day on the stoxx at the moment. Give us a sense of what is the geopolitical risk are just risks are. Risks are. Political uncertainty, from the u. K. And europe. The extreme right might be the winner of the first round. There is going to be a lot of ingredients for volatility combined with the worst quarter in net earnings for the u. S. And the Global Financial crisis. You have japan doing its thing with lowering rates even further on. It is going to be an interesting quarter. The big picture is we are an unprecedented times. Mobile gdp governed by Central Banks. That is unprecedented. The message is, theres a reason why negative rates are here. The credit transmission mechanism is not working. Theres going to be something that the Central Banks will do. But in the very short term, until that happens, investors should realize that in times of stress like the one we have today, these particular industries should have the onto a consumer and have the Pricing Power to deliver net earnings even if the growth rates are not very stimulating. The issue is that you might make earnings downgrades in other cyclical sectors. Weve seen heineken policy you mentioned consumers. Do you see them as one monolithic group or does the german consumer feel that much more confident than the french or italian or spanish consumer . Absolutely right. Huge difference. Ive been recently in spain and still the morale is not that high. The worst is over, but it doesnt mean that the skies will be clear. German consumers will continue ofenjoy a pretty sweet spot labor costs which havent really fallen to the extent that any other consumer has to withstand. Competitiveness for these companies is still quite high. I think we will see a twospeed situation whereby some of the core Consumer Base continues to the pretty confident despite all the things going on, whereas the referee in italy, spain, portugal, very much on a wait and see stance which will continue to depress private demand. Hans are there any events on the calendar that you are looking to turn that around . Is it going to view the vote in the u. K. On the 23rd . Aswe have a twospeed europe far as we can see down the horizon . It is going to get even worse. , summertime, the weather is going to improve, more talk about immigration, a lot more pressure in terms of immigration as the weather improves, that is a breeding ,round for extreme parties whether the extreme left in spring in spain or extreme right in rants. In france. Unfortunately, i dont think were going to see any meaningful advance towards more integration. The ecb desperately trying to pull at whatever strings they have on it this in cohesiveness. Expecting stimulus further down the line . Yes. Probably what they are going to say is, we are not going to do much now, because we quite a lot last time, but very much, the ecb will want to give guidance to the market that they are ready to do whatever it takes. We perceive europe to be the next japan in five to 10 years time. Wantine certainly dont that yield. Thank you for coming on. Next, one of the best performers on the stoxx 600 this morning. Firstquarter sales coming in better than expected despite economic uncertainty. The chip designer ch