European headquarters at what we are seeing, gains across the board. Yen gaining a touch. This is on the speculation that currencies biggest today rise slide. Two day there been wariness that the japanese government will intervene. This is dollar spot, one of the biggest stories. Lifted to first word news with nejra cehic. Nejra the brazilian president is facing what may be her last day in office. The senate is gearing up for a vote to force her out and into an impeachment trial. Surveys suggest the president opponents have at least 50 votes. Donald trump has won the West Virginia and nebraska primaries driving his can test driving his competitors out of the driving his competitors out of the race for the white house. Enter theays he might contest if he performs well your desk performs well. Well. Forms toyota has said annual net income will probably decline for the first time in five years. Japans Largest Company todicted net income may drop 13. 8 billion. That is below analyst estimates and comes as currency swings at record profits. Global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. You can find more stories on the bloomberg at top. Francine. Francine the dollar has found the bottom. Goldman sachs says expectations for u. S. Economic strength. The bank says the dollar will bounce. This get straight to our guest, Valentin Marinov. Valentin, great to have you on the program. Give me a sense of Goldman Sachs. Valentin we do agree that the dollars on the upside. A greater confidence against commodity currencies. Valentin we do expect the fed to hike rates. They have proved less enthusiastic about hiking rates. Francine do you think they will hike in june . Changed they had have they may have changed to july. Further delay cannot be excluded. If anything, but i think is the likely cause of action is the dollar could gain ground but risk related currencies. Investors start to west and the sustainability. That is keeping the markets driving at the moment. Francine lets say the dollar rises, 10 janet yellen really afford that guy she verbally intervenes before that lack valentin our expectation is not for these type of gains. Partlyurrency because the dollar has featured so prominently in its rhetoric. Also as we are approaching the europe elections soon, that is the case that protectionism or u. S. Official rhetoric they be favoring a weaker dollar against its main trading partners like japan, china and even your. Evenn euro cash europe. A donald trump in the white house. Valentin donald trump was so successful so far. Votersthe marginalized all of a sudden exactly. The response i would expect from officials on this Current Administration would remain close to the median voter. If they want to bring jobs back, trading partners ford literally the biggest risk because if that rhetoric changes, we have the meeting in tokyo. His encouragement that the currency wars have to and. From the current perspective, japan is running trade samples to the u. S. Their currencies are still somewhat cheaper. Francine if donald trump gets the white house, no one has any idea. If he does, he is talking about building walls and bringing jobs back. Is there any good that could come out of it . Valentin [indiscernible] u. S. Struggling to fund itself which i think is unlikely. It is ultimately positive growth. By bringingined some jobs back home from abroad. Jobs that are in mexico or china. From that point of view, a weak dollar policy cannot be excluded. My analysis, i see a potential election of donald trump negative over long. With that risk in mind, the longerterm risks on the upside the fact that the u. S. Economy however that rhetoric will be changing from here. That is going to be important and growing negative for the dollar from here. ,rancine Valentin Marinov think you very much. He stays with us. We will be talking about yen next. Company braces for its first profit drop in five years. E. On profit jumps. We speak to the chief Financial Officer this hour. Brazil votes on the president s impeachment. More on what could be processed last day in office. Francine it is the pulse. Lifted to the bloomberg is is flash with nejra cehic. Nejra e. Ons first order profits rose 30 after a onetime adjustment. Underlying net income rose 1. 3 one billion euros. That beat estimates. The agreement a twoyear long arbitration process that enabled them to cancel its provision, boosting First Quarter earnings by 40 million euros. Ge is to sell its Specialist Group activities as a part of a process of may of focusing on his mainline tourism. Revenuerants generated and 56. 2 billion euros in operating profit last year. Europes largest Tour Operator ges it will be paying shares are trading lower. Disney shares have fallen and extend trading after a miss mixed secondquarter forecast. The Network Struggle and the summer dollar hit profits from star wars merchandise. Earnings were one dollar point 1. 36 per share. Efforts tot from make console games. Calls berkshires are lower this morning after the maker of beer recorded a slight revenue gain as a rebound and russia offset that is yourter Bloomberg Business flash. Francine. Francine toyotas missed fourthquarter estimates. Japans Largest Company says that earnings could follow by as much as 35 . Tokyo. O straight to jody, great to have you on the program. Is it the only company saying such things echo jodi things . Jodi it is the first one we have heard from that is making the yen argument. Clear is suffering from a few other things. U. S. Demand has stalled. It did have a few disruptions including the earthquake that affected its production. It is mostly the yen. Francine do we expect see other effects of the stronger yen . Jodi yes. The unit is not the only one that is in the situation. Exporters who have benefited from a weak currency in the past three years which is been at the core of Prime Minister abes. Rogram to reignite the economy everybody is going to be seeing this, and interest a 10 increase. In the First Quarter we are seeing the yen strength and 3. 4 . Francine the japanese government is concerned. We had the finance minister talking. What has he been saying . Placed u. S. Has japan on a currency watchlist. You says that does not mean that japan cannot take action that is necessary. So far there has not been any action taken, nor details about such action. Theres been a lot of talk by officials, primarily the finance minister that they will take action if necessary, if the yen continues decline this month this much. Francine Jodi Schneider in tokyo. Lets get more with Valentin Marinov. As we were just hearing, the problem is this is the first time that we have had such a huge Company Looking again saying this is being problematic for me. It seems like it is a most unfair, despite coronas best interest poodle does governor kurodas best intentions. Valentin gaining ground to rapidly. It started the year starting with negative inflation. Report isatest really highlighting is potentially the a number of japanese exporters. Why is that important . The exporters are also the ones that the other administration is encouraging to boost wages. Get the economy going again. For that, they do need weaker yen. Francine the yen strength is against abenomics. Is this the first time we really realized . The yen is trading at the moment. It is something close to purchasing parity. That is also the level at which the exporters like toyota, the Exchange Rate is at the labels is compensating. Isncine on a five for you valentin the yen this onreciates beyond the level a sustained basis, in addition to stock market continuing to underperform. It slows from february. That will increase the probability of official involvement in the market situation. The fact is francine why have they not done until now . Valentin when you try to model, you have to look at different measures. One is exporters. They are already losing money. They are under hedged. In level is also important that it highlights where the yen should be. We have the nikkei all of these measures, for all of these drivers to fall into place. Before that, it would be very difficult for the japanese to justify any decision. It is clear that markets relation that the japanese will not do anything ahead of g7 meeting at, especially given the u. S. Criticism as of late. Francine do you think it will go below 115. I spoke to mr. Yen who has been right in the past. Valentin that will be met with there will be intervention before that. The fact is if we do get there, the exporters will have to continue hedging. They will have to continue selling which will trigger another bout of disruption and gains. That will bring them back to what they are trying to escape from. Predicatedowth is upon exporters making money so they can create higher wages. That is why the yen is so important. Francine the problem is this is something governor kuroda is aware of. He is going into negative rates. He is probably the most experimental centralbank governor at the moment and yet it is not working. Valentin the latest yen rally is indeed the fact that Foreign Investors have been expressing selling nikkei and unwinding hedges. For the longerterm outlook, when i am saying is the downside should be limited. The fact that we are much closer to intervention, the markets are expecting. The longerterm outlook remains more challenging because that was just the boj has proved difficult that growth will recover. They will be up to cheaper the currency on a sustained basis. We do expect them to remain on course, deliver more easing. Francine what kind of easing . Valentin that is a part of the story. In the case of japan, it may ite inmate not have as beneficial package as elsewhere. From that point of view, that may come as soon as june. We have the fiscal stimulus that is expect later this month ahead of g7 meeting. Measuresould deliver ahead of the upper house elections. Francine valentin, thank you so much. Beats cronenberg carlsberg beats to make budweiser great again. Francine the unicredit ceo has faced a torrent of questions. That after lending growth led to an erosion and in net income fell. He is not worried about Bank Strength and he is confident the lender will meet 2016 credit earnings. I dont consider critical the Capital Position it wiki working position good we keep working at [indiscernible] we have created capital against much more banks. We will continue in this way. Francine coming up later, we speak to italian finance minister. We talk about capital needed in the banks. This new Fund Expected to sure up some of the bad loans. Tomorrow here on the pulse, we banking to from beer. Desk rosenbergn is down. Carlsberg is down. Lets take a look at the numbers with ryan chilcote. I know you are great reporter when it comes to numbers. Problematic. The key to kuwait is russia is problematic but the key take away is china. The luxury market was in decline in china but how many people realized the chinese are drinking less beer . Why is that a problem . That the that led to a decline in 1 of volume across asia. That is supposed to be a growth area for them. You in the last quarter Eastern European we saw an increase. Inbev turning his with announcements. Ryan budweiser is going to be rebranded as america. Released oney also america. E ryan i know you are a bottle kind of girl. This is only going to be in the United States. This is not going to be in europe, maybe because the country is owned by belgians. Francine this is taking advantage of the u. S. President ial election. It has the republican candidate connotation. Ryan they want to get involved in election fever. About one third of the beer in the United States is drunk in the summer. It could be useful for that reason. These guys are under threat from craft beers. They think americans are patriotic like never before. That is what they are gambling on. Say thiswanted to america is for you, not this but is for you. Francine first we need to have one on set at least to try. Ryan i think here we should have brussels beer. Brexit beer. Or maybe brexit ale. Francine an amazing story. We has got galloway and he was saying it is like apple rebranding itself as innovation. Ryan it is a dangerous thing to do because budweiser is so associated with america. Apple is already associated with innovation, why would you rebranded as innovation. The marketing guys are convinced this is a good idea. See. All i am sure there will be a lot of discussion. Francine marketing guys, they always know the best. That is why they pay that is white they get paid the big bucks. Up next, powering up. E. On profit jumped 30 . We are speaking to the chief Financial Officer. We are seeing quite a loss for young. Four e. On. To the welcome back pulse. Were getting breaking news out of the u. K. Industrial production actually less than we had expected. Industrial output rising 0. 3 . We had expected 0. 5 gain. Maybe there is a little bit of a brexit sentiment involved. We have seen sluggish figures just as people are holding out. I do not know whether that is the main reason but these figures a little bit short of expectations. But they are still rising. Lets get to first word news. Nejra the brazilian president couldff is facing what be her last day in office. The senate is gearing up for a vote that would force her out and into a trial she looks unlikely to win. The president s opponents have 50 votes more than they need. Donald trump has won the West Virginia and nebraska primaries a week after driving his competitors out of the republican race for the white house. Ted cruzs name was still on the ballot in nebraska and has hinted he might reenter the contest if he performed well. Bernie sanders is the projected winner in West Virginia. It would be his 19th state victory but has 37 delegates up for grabs. Canadian oilsands facilities represented 90 of production taken offline during the all purdah wildfire have emerged unscathed. Of fortns north mcmurray are bringing back some of the one Million Barrels a day of supply that was curbed. Although Fort Mcmurray lost 2. 5 thousand buildings, the mast majority the vast majority survive, including the Water Treatment plant, hospitals and schools. Netta has says that annual income would decline for the first time in five years. Net income may drop to 13. 8 billion for the fiscal year below analysts, estimates and comes as currency swings have spurred record profits now pose stiff h eadwinds. News 24 hours a day powered by 2400 journalists in 150 news bureau around the world. Francine . Francine thank you so much. Markets pretty much flat this morning. A little bit on the higher side. Lets get straight to mark barton with your asset check. Mark Goldman Sachs says the dollar slump is over. They are not always right when it comes to currency forecasting. They close the dollar position against an equally weighted basket of yen in february. They say the slump is over. Rallyay the post payrolls shows that expectations for growth and fed reserve increases in Interest Rates have gone too far too fast, positioning the currency for a rebound. And estimates the dollar will rise 15 during the next two years as Monetary Policy normalizes. This is the bloomer dollar the bloomberg dollar spot index. That is the six month chart. Falling to a one year low, almost a week or so ago. Since then, it has rebounded for five days out of seven. Busy not only talking about the dollar. It has also talked about the price of gold, raising its forecast. But scaling back expectations of rate hikes over the next year, but it does remain bearish on the metals prospects. It has increased its 3, 6 and 12 month forecast. 100050 to respective. Appearhe upsides limited, we see a number of catalyst for gold prices to moderate, including a more ultimately u. S. Policy rate diversions corresponding with gradual dollar appreciation over the next three to 12 months. That was when golden december fell to its lowest level since 2009. Seena rebound we have since then. Best quarter in the First Quarter in 30 years. We have seen a surge of 20 this ,300, surging through 1 last week. Moving on to a number of companies that are released earnings today. Rlsbergroke ca reported sales up by 2 . Just narrow below estimates arrowly below estimates. Beer revenue in Eastern Europe grew by 20 double what analysts estimated. These are the big four global brewers in the last 12 months. Ab inbev down by 2. 5 . Heineken up by 12 . The best performer is sab miller. Want to tell you about e. On. Firstquarter profit rising by 30 . A one time adjustment to natural gas profit. Following a twoyear long arbitration process in march. It allowed them to cancel some provisions recorded earlier. And the utility also reiterated billion tot of 1. 5 s. 9 billion euro e. On down by 41 . Rwe 49 lower. Francine mark barton there with your asset check. Of course, e. On, well be speaking to the chief Financial Officer shortly. Now, this is my chart of the hour. It relates to Power Companies in germany. This is brent. Check this out. This is, when you look at the blue line. This is the picture of brent, the whilte line. Brent in purple. Foraverage price for brent the past 50 days is set to rise above the 200 day moving average. This is what we call a golden cross. That is typically seen as a sign of bullishness. The price may go up of we look at the technical level. Up next, has the worlds biggest Sovereign Wealth Fund but a slumping oil price has seen theay tap into savings for first time. We will look ahead to t