It is one of those touchyfeely ones, but it matters. I know you would be looking at product prada. Suede blacke prada pumps. They are dangerous. They are very low ones, very officey. How much time do you spend on pradas website . I spend a lot of time. John did not think we would go here. Every edge you can get. You are killing me here. After the bell, joseph a bank , if you want to stick to plain old boring suits like the ones i wear. The nba finals kickoff tonight the heat. E spurs and it is the 10 Year Anniversary of Ronald Reagans passing. Will have aama private dinner with francois hollande. After that dinner, mr. Hollande will then have dinner with mr. Putin. Yeah, it is a ballet. Esther obama will not be . Ining with hollande and putin correct. This is like your third marriage, right . More like your third marriage. Thank you, scarlet. And stocks. Quities the euro, 1. 3615. Vix just above 12. There is a german 10year yield. The yield is higher over the toward 1. 44 dollaryen. Maybe a little less umph we are getting out of mr. Draghi. Here is the euro back 20 years, stronger euro. I would to just and mr. Draghi would dearly like the euro down here at 1. 25. Absolutely. I would certainly make european goods cheaper to the rest of the world. It has not happened. What daytraders tell me is that because the euro is so strong, there is no inflation. Theaois and inflation is enemy of currency. They have the opposite. , we will focus on this particularly the ramifications for the markets. We have a busy day. We have scoured papers looking at websites. Here is the front page with scarlet fu. A lot of company news. Sprint inching closer to a deal with tmobile. That is in the works could value tmobile at almost 40 per share for a total value of 31 billion dollars according to bloomberg and the wall street journal. An agreement could be announced as early as july. This goes to the idea that the number three and number four players could be a formidable competitor to at t and verizon. That would be the argument that usair and American Airlines withthe deal to compete united. You wonder how the Government Works as well, how they fit into the mix. And how will they change regulators minds . We have been through this before with telecom and they have not gotten anywhere. You wonder what the backstory is behind the scenes. What else do we have . Increase tensions at the french bank bnp by rabaa the french bank bnp paribas. Sparking an internal debate over whether top officials including the chairman of bnp should step down. With this as strange this has strained relations, the french side perhaps threatening we have to tread carefully. Mill, speculation mill that is fun and center right now. Had no numbers are firm right now. Mr. Hat is interesting is hollande will speak with mr. Obama. Who is mr. Obama going to speak to . I cannot figure it out. Call up somebody in new york city and say dont do that . Story isst frontpage an internal probe of General Motors delay in recalling the vehicles, the defective cars. It is expected to conclude that there was no concerted coverup, but that managers failed to make connections and act on evidence of problems that are now linked to one dozen deaths. The ceo of gm, mary barra, is expected to take new steps. In other words, there was no grand conspiracy within gm, it may have been sort of siloing individual managers. Well, gm concluded that. We should note that. There are expected to be dismissals from this whole thing. There will be fallout, and mary barra will not be one of them. You have an accident, somebody dies, and it is because of it is hard to fathom. They will try to untangle all of this, that coming up at 9 00 a. M. We have had a big day with the European Central bank. Right now we need to begin our coverage. Frankfurt, germany. The ecb and mario draghi front and center this morning. In less than two hours we will know whether he will put his money where his mouth is and lower Interest Rates. Guy joins us from there. What has been priced in so far . Probably a rate cut or a series of rate cuts. Article here is the deposit rate. We will go negative. The question is how far negative are we going to go because there are potentially unintended consequences. If the banks do not pass that onto their customers, potentially you could be in a situation were that hits profits. You are talking about bnp paribas at the moment. They need to get that profit going, and that could be a problem as well. It could also affect the money markets. So they had to dip their toe in the water. It will be a very small deposit rate, fractionally 30 very quickly, how unified is the European Central bank panel behind president druggie behind president draghi . To ratenk when it comes cuts, bundesbank is on board. Maybe they are on board with some sort of longterm refinancing operation that will force more liquidity into the system. But the european banks do not need liquidity, they need capital. That is the problem here. It is when we get off asset per juices that i think off asset purchases that the problems start. Toe sort of buying of small mediumsize loans maybe that would work. I think we are on board, the is there, but beyond that i think druggie will have problems. Any idea about security purchases by the ecb . Stage, i think i see what youre talking about with liquidity operation. Like the bankheme of england put through, we do not know how that is going to work. If you are coming onto qe, we are so far away from that at this stage, talking specifics it is probably too early. We still do not have systems in place and the plumbing in place for regulators to allow the Central Banks to come through and buy assets. They have a problem on the constitution site in germany. I think we do not have the system in place to deal with buying small to mediumsized loans. Guy johnson, thank you so much, in frankfurt. Expert oneconomist the labor economy and the belief in what the ecb will do to the are thrilled to bring in Jonathan Ferro this morning with bloomberg as hen london as we visits new york city this month. John, what is your reading of situation this morning as we go to this momentous 7 40 five announcement. Let me cut through the noise. For the last five years, the ecb and particularly but despite putesbank has tried to pressure on. The pressure is on bundesbank because they cannot carry on and let it mum along. 0. 5 , that is where inflation is now. Bring up that chart right now. John, how afraid of the new level of inflation, the low the double oft is fear that mario draghi has . Very fearful of what the number is. You do not know the unintended consequences of having a deflationary scenario, especially when you are worried about the ability of companies to pay back loans. You were a freshman at brown years ago and you learns how to spell asymmetric. The downside is more damaging than getting it wrong to the upside. That theetric is it ecb today . Oftentimes Central Banks feel they can deal with an Inflationary Pressure environment. Uncomfortable dealing with the need with a deflationary environment. It was suggested that druggie will disappoint, that he will be more timid, more gradual that draghi will be more timid. Like guy potts point. We are nowhere ready for quantitative easing in europe. For those people who are thinking quantitative easing, no. But again, i would go with asymmetric. Going into a slightly negative deposit rate is kind of an interesting experiment in terms of monetary policy. We do not know the unintended consequences of that as well. Very well. Right now, lets get to company news. All right, let us start with amazon, finding to introduce a smart phone later this week according to a person with knowledge of the matter. The company is holding an event on june 18 for the product unveiling. That would ramp up amazons rivalry with apple and plunge online retailer into the device market. 54 to 34ncome fell million in the First Quarter from a year earlier. An initialonsidering offering for later this year, and there are buyers looking as well. Glaxosmithkline has reached a payout. Millionl shell out 105 to california, new york, and 40 other states that it is legally promoted as not and other antidepressant drugs. It encouraged uses of drugs not indicated on their labels. Also from using paid doctors to promote its products. It is this mornings company news. Coming up after not one but two big errors and corrections on key u. S. Economic reports, can we really trust the numbers . We gave the chinese a hard time, but what if we have a problem in the u. S. . We will verify the accuracy of u. S. Numbers right here. Surveillanceerg. Good morning, everyone. Bloomberg surveillance. How did a 4 yearold company overtake apple in china . Find out on a special edition of bloomberg west. Today at 1 00 p. M. Eastern time. This is bloomberg surveillance. Tom keene with scarlet fu and adam johnson. So exciting we are going to look at data economic data. In i sm we trust when it comes to a snapshot of u. S. Manufacturing. Earlier this week the institute for supply management had to issue not one but two corrections of its main manufacturing index. It went to Computer Software for mistakes. Note right put out a afterwards, and your take on this was that is why pencils have erasers. Yes, maam. Absolutely. Is this an indication of how over reliant we are and reactive to any number that comes out . I like the term reactive. We are very reactive to these numbers. It is a challenge for us. We look at the numbers specifically. Another problem was not only were the numbers revised, but there was this open space of time when people realized the number was not right, and we did not get the new number. I want to point out, dr. Silvia your report went viral two days ago. We are talking to the data guy for all those clowns who say dont trust the people in washington. John silvia totally disagrees with the disparagement of the industry. Regardless of what happened with the ism report, it indicated we have growth ahead but no necessary boom, right . Good economic growth, no necessary boom. If you look at the purchase for germany, that is the purchasing managers for germany, that is beginning up that is picking up. For france, it has weakened. Is mario draghi fighting the wrong war this morning . In terms of . That the economy is doing better in europe so he does not need to act . The economy in germany is doing better, not necessarily france. s point aboutan the euro is key. It is the euro that is the story. Jonathan and i discussed the danish situation. They had a negative deposit rate and it did not make any difference in terms of the economy and lending. Scarlet, i apologize for getting the script you only had to watch the first period and overtime really. The same ism report also indicated rising Inflationary Pressure. If that is the case, why is everyone so worked up and worried about this inflation . I think mostly disinflation in europe. I dont think there is a disinflation problem in the United States. Shelter prices, rental prices are going up three you talk about higher input prices. A problem is that versus higher labor costs . Sector ande service its wages. Concert oft be too the input prices are going up . No, it is a squeeze on corporate profits for manufacturing firms. We want to fold in the ecb to all of that. Coming up in the next hour on surveillance, full coverage of the ecb rate decision. At 7 45 eastern time, mr. Draghi will hold a News Conference. His is bloomberg surveillance from Bloomberg Television. Good morning, everyone. Bloomberg surveillance. Tom keene with scarlet fu and adam johnson. Here is mr. Johnson with top headlines. Some 4000 protesters marched on sao paulo last night. They are calling on the government to provide more low income housing. The Homeless Workers Movement organized the march. It was carried out in a peaceful manner. House Speaker John Boehner anything but peaceful on this issue calling on the president to do much more to fix the department of Veterans Affairs. He sent a letter to the president asking him to support legislation that would give the secretary of Veterans Affairs more authority to fire people at the agency and give people facing delays to see doctors in ability to go elsewhere for care. And the l. A. Kings take one in the stanley cup finals, defeating the rangers 32 in overtime. Game two of the bestofseven National HockeyLeague Series is set for june 7. And then the series moves to new york, to Madison Square garden for the next two games. Those are the top or bottom, if you prefer headlines. They got off to a good start with a 20 lead. The next golda shorthanded. They can play out of the kings. A busy morning, but you have an interesting morning. Spain is moving on as well because juan carlos, the king, abdicated. Charles powell, a biographer of juan carlos, writes that abdication is his final gift. I thought it was a nice take on what the abdication means and the significance of it going forward. Jonathan ferro joins us from our London Office. What is the difference between royalty in the United Kingdom and royalty in spain . There is a sense of National Pride in the u. K. You have to look at the quality background. The king at the height of austerity in spain, guess what he was doing he was on a safari hunting elephants. How do you think that went down . Not very good. You have the monarchies with all this wealth and the rest of the people struggling. Is he beloved by the spanish people . Elizabeth as an generalization of being worshiped by the rich people. What about in spain . Has changed. K. It somewhat. I know you are a big fan of will and kate, and that has certainly helped the monarchy. Have you hugged maybe george . I have not met baby george. We are going to reach out and ay to book baby george as guest host. Coming up, hockey fans rejoice. We will show you how to watch the stanley cup finals in style. Coming up next on bloomberg surveillance. Good morning, everyone. Bloomberg surveillance. It is that time in brussels. Somebody is missing. It is like sesame street. What is that song . . Ho is missing this is the g7 meeting about an hour and a half ago with someone not they recut all the patches on their bloom blazers on their blue blazers. G7. They crossed it out with a big sharpie. That brings us to our twitter question of the day. What should be the top of president obamas twodo list todo list in europe . It is bloomberg surveillance. Im tom keene. We diverge. Here is scarlet fu with the most important story of the day. Back in the day, scoring luxury box of sweets for a big game was all it took to satisfy a client. Now tickets to the game are just part of the experience. Has securedan sports event packages for 20 years. The one he likes for accounting, a trip to london for his family. Tickets to goldmedal games. Price tag 350,000 dollars, which includes the 18 commission that his company pocketed. What kind of access can he get to this stanley cup finals . I have my basic wish list prime seats, hang out from some of the champs of the 1994 champion rangers team. But it has been 20 years since the rangers made the finals and i want more. Can i go into the locker room . Very possible. Can i ride on the zamboni between the first and Second Period . Definitely. Can i get mark messier to skate with my kids and give them shooting tips . Dayf you want to do it next or prior, absolutely. He stumbled on the business two years out of college while selling ads for a sports magazine. Extras were all that mattered. The easiest part of his job is getting tickets. Designing and fulfilling the rest of the experience, that is the value added. Even with best access, some things are just offlimits. Can i hitch a ride with the day of the game . Probably not. That is a difficult one. He has his routine and i am sure there is no money in the world that will keep him from winning the stanley cup. Prizes nsolation dr. Does mr. Lundqvist have protection from you . I am all good. Bam. Want this bam, bam, man who cans is the hook you up, robert tuchman. I want you to demystify the whole Retail Prices here. The l. A. Kings home games are a little bit cheaper than the new york rangers home games. When is the best time to pick up a ticket for the series . Good question. Right now if you go to los angeles, you are looking at half the price of the ticket. The reason is the kings were just in the cup two years ago, so a lot of people have already gone to the rangers. Ticket, i would say definitely do it right before the game, meaning hours before. Most tickets these days are emails, so you can to get up a couple hours before. That is when prices tend to drop. Tell us where you get your inventory from. Are you buying up these tickets hours before the game as well . Yes. First off, we go to many different sources. We go to basically players, coaches, teams, individuals. Most of the people who have access to tickets, they can easily put them on the secondary market. We look for all different places. You mentioned 15,000 to 20,000 per game for all access. Exec they what access did Steve Ballmer by . I think he overpaid by probably 1 billion for that. At the end of the day, the really is toe got become part of that exclusive club, and he always wanted an nba team. Except he does not have the stadium or the television deal. Throughst buying a team he is, and in all honesty i think he wants to be part of the league,. Youhe end of the day if look at it with the clippers story, i was shocked even being in the business how much he ended up paying. Wouldve Steve Ballmer looks at what youre doing and decides that the clippers can come up with their own package for fans. Is that a threat from the league . Most leagues are looking. So easy to watch sports on tv. It is comfortable. They need to create experiences added value, meeting players. They do not do that, they will lose those fans. The experience of john silvia from wells fargo it is a community urinal. These places were