Emails for a break for a prankster pretending to be the chairman. Im guy johnson alongside tom king. Been quite a week. Quite a week. Had im not sure there is a correlation between your being here. Tom it has been an exhausting week. I cannot remember a week like that. We have got more reporting on that to all of surveillance. There is still a lot of other news out there including the german election. To the big one. Lets take a look at what is happening with the data. These are the numbers you need to know. The stoxx 600 barely budging. Tom, do you know what . We have had the biggest info into european equities on record this week. An in some ways, it has been incredible week but the equity markets have not reflected it. The german 10year is not moving very much. Tom maybe an oil lift. Guy up by. 2 . Tom i decided to do a data check. There is not much going on. That in itself is news. Let me get to my chart. A bloomberg chart on the atlanta gdp. For those of you not familiar, vyedifferent fed regionals for research ability. Down below is that First Quarter guesstimate. They were dead on. Up we go with the Second Quarter expansion that we are in right now. Green line. Maybe we get one quarter in the trumpian year. Gdp, may be. That is a maybe number. Guy im going to show you treasury yields. Story to me this week has actually been what has been happening with the fed. Harker speaks this week. Evan speaks to manus cranny. The fed is trying to tell the market is behind the curve. Dollar is not listening. The treasury market starting to respond. Tom there is the market look. Well do it all across the show this morning. In new york city with a friday, the first word news. U. S. , they have reached an agreement for china to provide greater access to American Natural Gas exporters as part of a broader effort to begin reshaping the trade relationship between the worlds two largest economies. The agreement covers 10 areas were trade negotiators have reached consensus, including agricultural, trade and Market Access for financial services. Well be speaking to the u. S. Commerce secretary about that deal at 1 30 u. K. Time. Bank of England Governor Mark carney says that the central bank may have to raise rates sooner than markets are expecting based on a forecast that presumes a smooth brexit. But traders are questioning the likelihood of such an outlook sending the pound down. The u. K. General Election Campaign takes shape, the opposing parties are taking increasingly barbed swiped at one another. The conservatives will warn workingclass voters that the labour party has deserted them. Jeremy corbyn will launch an attack on theresa mays foreignpolicy. The liberal democrat leader has called for a change. Have determined the tone of this election must change. It is time we gave the people of wales, the whole of United Kingdom some hope. That britain must now struggle under the yoke of a oneparty state led by theresa may . Just staley has responded to emails from an imposter pretending to be the chairman. According to the Financial Times, it criticize the barclays shareholder who had had saw to oust staley. The ceo responded with praise for macfarland comparing his fearlessness on the guitar to that of eric clapton. Global news 24 hours a day powered by 2600 journalists in 120 countries. This is bloomberg. Tom the badge of email shame. Do you like the cream allusion. Guy he is having a tough week. Tom this happens. This is our worst nightmare. Speaking of nightmares, has been the week of american politics. Each of the days of that russia thing have been different. Whether it is the president speaking to the economist. Or then there was that thing that nbc news interview with lester holt. President trump what i did is i was going to fire comey. Ester you had made the decision before they came in the room . President trump hes a showboat, he is a grandstand or. The fbi has been in turmoil. Everybody knows that. You take a look at the fbi a year ago. , less in virtual turmoil than the year ago. It has not recovered from the. Tom the Washington Post with a beautiful tic tock or the four or five flavors we had from russia from the white house. She is our showboat and grandstand there, we welcome stephanie baker. It is amazing how they are trying to massage the message they . There a is this president controllable . Stephanie the message is a mess. He gave a completely different account than all of his press spokesman and advisers who had been trotted out in the aftermath of the firing saying that he alone took the decision, contradicting what had been the story line in the days preceding that actually it had been triggered by the memo, by rod rosenstein. So, you know, i think there is concern, concern about the credibility of what is coming out of the white house. Do we believe what they say . Of thee interim director fbi also indicating that morality fbi was not a problem. Stephanie no, fine. Enjoyed widey support and contrary to what the white house has said the russia investigation was very small in the grand scheme of things. He said it was a significant investigation. They would be proceeding. Ahead. Tom what we think about into the weekend as you prepare for a battle on this . Backanie they need to get on message. I think the main challenge ahead is to appoint a replacement for comey. Tom topic number one. Stephanie the names in the mix are not household names. They are not the ones that had been floated previously. We thought maybe it would be Rudy Giuliani or chris christie. They are very divisive figures. Traditionally, fbi directors have received bipartisan support when they are appointed. This is going to be an unusual case. Tom this is a critical distinction, much like judges. When a president appointed to bring court judge, they do not know that is for life. Within this, for example, mr. Mueller who is the most esteemed of our directors in the modern age. Does the president in any way control and a fee i director . I believe they dont control the fbi director . May have trump misunderstood the relationship between the president and the fbi director. From the 1970s they were given a 10 year term as a measure to give them independence. If you look at the new york umpes story today about tr demanding loyalty toversus honesty. Ofch gets at the whole issue maybe he misunderstood the very nature of the relationship constitutionally and legally. Guy he is learning on a job. This is a president who is absolutely learning on the job. Hes figuring stuff up and what does that tell us about the rest of the term . Do you think he will have it figured out by the end of it . Stephanie lets hope he learns faster than he has learned so far. He is obviously learning on the job about these crucial, constitutional relationships that are new. Tom twoyear good question and my conversation yesterday with the former nato commander is he learning on the job about north korea . The fbi this is all fun and games and giggles. North korea is not fun and games and giggles. Stephanie if you asked john mccain that question, there are certain republicans who think that actually trump has appointed some really serious, wellrespected National Security experts. These people are well trusted on both sides of the aisle. That should bring people some measure of reassurance. Tom he needs a mathis at fbi. This is extraordinaire. I am exhausted. Guy i wonder we will look back on this week as being pivotal or just part of the noise. Tom thank you so much for your perspective this week. It isa it is a blur. Carry on the conversation what is happening with the u. S. Administration. Wilbur ross will join bloomberg. Coming up on the show, including growthanys economic increases. And we will speak with the oecd secretarygeneral live in ita ly. This is bloomberg. Tom bloomberg surveillance. Were thrilled to are with us. Lots of talk about. The politics of the nation. Guy tells me thin mins. Italy . Ns in i do not even know where that is on the map. Were going to do some fashion to figure how to spend my remaining funds in london through the week. Now in new york city, our business flash. It boosted its fiscal year profit forecast ll aafter it agreed to seel brazilian steel plant. Provided United Internet has agreed to take control of german wireless operator. The deal comes as it seeks to compete with telecom and vod afone. The combination will unite vivendis media empire with havass marketing and advertising assets. That is your Bloomberg Business flash. Tom i just figure out where bari, italy, is. It is just above the silver on the heel. Guy we are going to have fun today, arent we . Tom its on the heel of Rupert Sanderson boot. There are members of the keene family that do not care about mr. Trump. They just want to talk to mr. Sanderson. Cant get to heathrow festina. Fast enough. Guy exports benefiting from recovery and global demand. Ahead of Regional Elections in the countrys most populous state. Meanwhile, the European Economic and Monetary Affairs commissioner says that germanys europe. Ader will be pro i think the germans are lucky. Because whoever is the next german chancellor will be a strong leader dedicated for europe. Guy as to what is happening are the german data, they pretty solid right now. More evidence of that today. Nevertheless, these are the kinds of cues that draghi needs to turn policy neutral and point is to a change further down the road. Andrew absolutely. German data, but European Data as a whole has been very strong. Ecb have had to navigate the political events. Junenk the next meeting in should be set up perfectly for draghi to move to the neutral setting. Tom i saw it on twitter, a great chart of the forex market, what the Interest Rates are going to be. There is a hope and a prayer of higher Interest Rates. Why is now different . Andy one, we do have to be cautious. Things in terms of how are different, the obvious thing for me, if you look at the last six years, we have had times when european economies have done on the u. S. Economy has done well, china but never at the same time. What we are right now is much more synchronized. It is much less stealing growth from other countries based on exchange rates. It is about the Global Economy moving together. And that makes it feel more stable. What hard to be sure positioning is. Buying heavily. There are these collateral needs that are structural and not cyclical. Bunds. Overall, think the market is probably talking about investors being short bunds. But i do not think that trade is on yet. I think they want to see the signs from the ecb. They want to make sure the ecb is moving to stop q. E. Otherwise, if you are seelinllig bunds thats uncomfortable. Tom when i look at the rate market and i look at the curves. We talk generalities with extremely confident people. Buried in the Research Notes is some real detail. You have a brilliant paragraph on the far end of the yield curve. What is tensthirties. What does the distant part of the yield curve tell you . Andy initially that was a big focus to be buying in germany. They were forced out to the long end. Tom forceout. Andy now they have been able to buy. Nearer on the front end. Tom critical question. What do you see about the debate in the United States about 50 year paper or 100 your paper . Year paper . Andy the debate is on the table. It does not feel like it is a done deal. The market is pretty interested. If you do see that, we are going to see some weakness at the back end of the u. S. If you look to what happened when that story first came out a few weeks ago, it was global back ends that she bent s cheapened up. Fun we can have a conversation about convexity. Well leave that for another time. We may talk about delta later in. On. G7 meetingat the in italy. Matt miller has been speaking to finance ministers. What can be accomplished . Were going to find out. This is bloomberg. In new york city. 10 23 a. M. In italy. Matt miller is there. Over to you. Matt thanks. Im here with oecd secretarygeneral angel gurria. Thanks for joining us this morning. What do you expect to be accomplished at this meeting . Sec. General gurria this is a process. Nothing ever gets finished at any one of these meetings. You build up and build up. What comes out. These are seven of the largest economies in the world. Theyre crucial to making things happen, whether on finance, whether on the economy, whether on trade or environment or government issues, etc. So, when you focus, when you converge in a meeting like this one, people go out with a stronger will, with conviction. Nothing gets decided in the sense of it being a decisionmaking body. Then you go to the different organizations. The go to the world bank or the the the ecb, the wto or world health organization. You make things happen. Today we were talking about inclusive growth, about the question of inequalities and how do you deal with it . And how inequality, actually if they can be in certain extremes, affect growth. A moral question. Even a political question, it is a very important economic issue that we have to address. Matt when you talk about inclusive growth and inequality, i think about globalization and trade. Most of the people in this meeting are very much protrade. They want to keep it status quo with the exception of maybe the u. S. Delegation. Has this globalization that we have experienced in the last few years pushed the inequality that seems to be growing worldwide . Sec. General gurria it is not globalization. Lets not blame globalization because there are individual policies in each of the countries that put together may be responsible for some of the undesirable results. Say globalization and trade. The problem with globalization. It does not have a body, face or a neck where you can hang it from. Then you take a proxy. People used trade as a proxy. Trade was not meant to address all of the problems of the world and the question of inequality and the questions of level Playing Field. It was meant to be one of the cylinders of the growth engine, together with investment, together with skills, with more competition. And you have to make everything happen rather than focus on one particular sector or one cylinder of the growth engine, because then your diagnosis would be wrong and you would basically be typically, you know, barking up the wrong tree. Matt you mentioned level Playing Field. Donald trump has been calling for that. Steve mnuchin seems to think theres isnt a level Playing Field but it is getting leveled. Do you think with the agreement with china, now President Trump is no longer manipulating currency. Are they coming on board the free trade boat . Sec. General gurria there is today a big discussion. Freeether the word is trade or fair trade or fair and balanced trade. I think we should focus a lot the on the policies and actual decisionmaking and the agreements rather than necessarily on the wording. But i think if you focus onf free. Rulesbased is another part of the equation. What are the rules about and what is fair about . If you are saying no subsidies, i would say yes. This is fine. Then you would say no protectionism. I would say yes, this is perfectly fine. Currency no currency manipulation. Matt those are three phrases not likely to be in the communique. Sec. General gurria let me put it this way. These are the things that one should be practicing every day because that is what will make for what is called balanced trade, which means a trade that will result in the actual competitive advantages that are legitimate, given the endowment of the countries, both of Natural Resources as well as Human Resources, and of the skills they may have developed over time. Because many countries with very scarce Natural Resources will develop their Human Resources to a great extent and then they will become a powerhouse. They will become leaders in technology. Become leaders in high value added activities, etc. And this is where we have to get our lessons. And go for the best practices. Big, proper countries are represented. The poor countries less so. Greece will be in focus. We have heard optimistic statements about the fact you could actually get a conclusion to the greek debt problem by the Euro Group Meeting on may 22. Sec. General gurria greece is thea member of the oecd. We are working on competition and education issues. Were working on what i would call the future, the tomorrow of greece deion the shorterterm beyond the shorterterm agreement. The question is, they need space in order to be able to grow again, because the burden of the debt is too heavy. The problem today is that most a the debt it nf not all is public debt. It comes from the imf or european taxpayers. And, therefore, that is more rigid in terms of giving, you know, net Debt Reduction than it was when it was private bonded debt when you couldve had a marketbased, very more traditional type of negotiation and reduce it at least by half. We lost that opportunity. We are now left with the consequences of having lent to greece oto pay at 100 cents on the dollor, oar or the euro. The question is time, windows of opportunities, the cost thereof, so that the medium and longterm real cost of the debt is reduced by virtue of having lower Interest Rates. But the question is not about whether you invite, you know, developing countries to participate. Just imagine the fact that the g7, ministers of finance and governors of Central Banks, came her to listen to three or four of the most important experts on inclusive growth issues. To re being exposed mr. Bertoli. Matt we are going to hear from them. It was a pleasure talking to. Thank you so much. Back to you. Guy i hope you are sticking around for the weekend. Right. Lets talk about what is happening in the u. K. Welcome to the weekly brexit show live from london. Im guy johnson. Tom tkkeene is sh