the ecb is paying banks for them the real economy and borrow from the ecb. that is the future of the policy package that should support the banks. they are trying to mitigate the negative impacts of negative rates. hans: let's send you t frankfurt and pretend you are mario draghi's advisor. you are prepping him. what is the most dangerous hazard you would want him to avoid in a press conference? rederik: it is difficult to say. i think you should stay calm, confident, and consistent with the message he has been sending over the last few months 10 quarters. -- few months and quarters. i think you should stick with his message. so, no stress and be very proud indeed, draghi. guy: we believe that there. thank you for taking the time to speak with us today. frederik joining us out of geneva. we are going to talk oil next. it is nearing a five-month high and u.s. production is falling. we are still dealing with the details of what did and did not happen in doha. let's get the director to say the bloomberg. this is the vw stock. is rallying very sharply once again

i would not expect the ecb would go further in this direction, but it's up to the ecb to decide, of course. >> once again, we've heard from an ecb member in this case saying that monetary policy can't go it alone. they need more help on the fiscal side. but what will it take to encourage governments to step up on the fiscal efforts? >> you know that the fiscal situation in some member states is still dire. debt ratios have not really come down in some countries with high depth. so there's limited room for maneuv maneuver. it's not so much a question to spend more money but to spend money more wisely. the managing director, christine lagarde, two days ago gave a speech in which she referred to a study by the fiscal department of the imf in which their search delivered clear results that it's much more important to increase the efficiency of public spending and not so much the sum which is spent by governments. >> to what extent do you think there's a division now? will the minutes reveal perhaps disagreement among the hawks and doves here when it comes to the decision we had last month? >>

another one will be a report of ecb. the third one would be the working group on sovereign debt, which you are a part of. >> financial times. aboutd like to ask you global uncertainties and particularly which ones have become more and perhaps less worrisome over recent months. we have had better data from onna by rather disappointing oil. i would like to return to the point on helicopter money. think itvery simply, t by the ecb in a way that is compatible? mr. draghi: the answer to the second question is the same. we never discussed it. to the first question, we have taken monetary policy measures in march and it was a comprehensive set of measures. financing conditions have improved. we view these measures as being important in avoiding effects in the wage and price settings. as i said, growth is moderate but sturdy. are improving, you have to be very careful about not losing focus from our main inflation, to our objective below 2%. inflation remains very low. they will possibly be negative in the coming months. this co

of course investors are teeing up for the ecb meeting. as you can see investors cautious ahead of the meeting. stocks are relatively flat. despite significant gains state side overnight that carried into asia largely due to gains we saw in oil overnight which have paired back a little but again a lot of the investors digesting earns and this is the view as well. we have the swedish krona strengthen against the euro but the euro-dollar trade relatively flat here. and mario draghi's press conference a little later. ahead of the ecb decision we've heard from fitnenance minister e again criticizing policy, saying negative rates do more damage than good. this follows his recent claims that negative claims have helped boost the rise of right wing party afd. negative rates have put on some pressure. and we've spoken about exactly what the effect on european lenders has been. >> it was largely around not much solvent but profitability in the banking issue. and i started mid november. marconi and others have said we're coming towards the end point

for the ecb was a big deal. for the markets was all about the corporate bond buying and getting more clarity about that. i think the ecb kreb believes it is putting out a whole raft of measures which are baring fruit. i think they are on hold until september and the brexit decision then and will decide what to do next. >> a rough start to the year here. do you think there is an acknowledgment at the ecb that they have limits to negative interest rates due to the impact on the banks? >> they certainly have limits but they are not at that point yet and again that's been made very clear by mario draghi yesterday. vice president and peter pratt. minus .4 is not necessarily the floor base. so really sort of telling people they could cut rates further. and essentially the margins of the banking went up in 2015. there is a limit to how far they could take rate lower but they could go lower from here. and introduce two tiering. at this point they don't have to. >> the ecb doesn't act as an island. they have the fed to c

the ecb's mandate is to deliver higher inflation. the fact that inflation is well-known to present -- well below 2% puts the problems in their limits. draghi was very clear about that. any meddling by officials need not stop them. anna: valentin, thanks for joining us. that will do it for "countdown." we leave you with the "on the move" team. ♪ guy: welcome to "on the move." 7:30 in london, 8:30 in berlin. i'm guy johnson alongside caroline hyde in berlin. telegraphing his views, president obama urges britain to stay in the eu. does his intervention change the terms of the brexit trade? strikes a deal over its emissions cheating in the united states, but is the industry now being caught up in the scandal? watch

highest level at the ecb. i think no one can deny that e the -- >> but the point is you're putting your finger on the pulse and saying, need to do more when necessary. >> this has been said for all the countries. the supervisor has given itself an agenda for the year to come. part of that agenda is to look at the level of nonperforming loans in all the countries. as an outcome of this monitoring, some countries will receive recommendations which might not be the same as other countrie countries. >> reporter: there >> there's also been pressure put on as a result of the panama maker leaks. what action are you taking, will you take as a result of this? >> i think the supervisor has to look into compliance. now you know that banking supervision that has been transferred to the ecb does not include any money laundering, does not include counterterrorist financing, does not include -- but of course a bank which does not comply by those rules is a bank whose future is also in doubt, and where we will have to look at

up the ecb meeting quick. the final analysis, ecb day, do we care? not really was his point. compared to last month's -- >> because they are expected to actually do something. >> right. >> but he always says something. >> right. but not as big a month as last month. >>> other news after a visit to saudi arabia and talks with king salman salman, president obama flies to london today to vote. obama makes it no secret he hopes britain to remain part of the bloc saying it is in the economic and security interests. most would rather see the status quo than any clear change. >> the question is what does he say if britain does vote to leave the eu? >> well that would be huge. >> when we come back, social media is buzzing about the new $20 bill featuring harriet tubman. we'll bring great reaction next. >> she's ridiculously excite about this one. as am i. >> it is a great story. >> it is a great story. first we head to break here the national forecast from reynolds wolf. wolf could you also tell us about jamaica? >> w

up next, more on the ecb. the ecb president tells markets and german politicians alike to be patient for its policy to take effect. ♪ caroline: welcome back to "on the move." it is 9:12 in berlin, 8:12 in london. as you can see, a beautiful day from berlin. not a beautiful day if you are training autos. timer being embroiled in the emissions scandal. late yesterday, we had that headline coming out, the united states department of justice requesting to investigate daimler over emissions certification processes. thatwn 2.3% as we had board meeting today. yesterday, it was one of the best performers on the stoxx 600. really, the auto sector being dragged down. check this out on the terminal. , you aresector index currently seeing every single auto company in the red. daimler the worst. nault,t, bmw, even re despite better-than-expected numbers showing real growth in europe, nonetheless, this seems to be contagion across the sector. guy: and we've got a great guest coming up later on, arndt ellinghorst joining u

if you look at the sequence of , in the ecb, the last was the ideawanted that the ecb will do anything at the meeting in june. he will take it one meeting at a time. the april meeting -- the signals coming from the meeting yesterday was that for the time being, things are good enough. he is basically guiding markets towards looking past the june meeting, perhaps the july meeting, and more likely to the september meeting. at that point, markets need to be compared to do more. but the idea is to temper expectations. look at other central banks, see what they do, see what happens to the brexit vote. for the time being, they are on cause. -- on pause. manus: and the next piece would be buying enough corporate bonds. what i want from you is an indication of the scale, they euro scale, in terms of having a real impact. inhave seen a massive runoff corporate bonds. a huge rally in the corporate bond market. what do you think of the scale needs to be to have a real impact in the real economy? marchel: you are right. effect of announcing the measure is sometimes as big as when qe takes place. t

of course, mario draghi asking for the ecb stimulus measures to work. that is having a clear impact in places like the currency markets, we know that mark will ve more details on the euro. here is the dollar, looking at the bloomberg index, you saw as drug use speaking, we have a rebound back up 1/10 of 1%, also, looking at a movement in oil prices. down, still above $43 per barrel. that is the mario draghi ripple effects side of the region. companies ine 109 the s&p 500 that reported earnings. is a looking at the bloomberg. it is hanging onto a gain of 60% of the companies beating estimates. here, you have the earnings. you have the drop. let's take a look at some of the earnings. you had union pacific. it had volumes down in the rail industry. said second-quarter earnings. increasing sales. southwest turning around. ,n the downside today travelers, the insurance company first order profits are down 17%. imagine as you can see, things are evolving even as we speak, biogen had earnings beating estimates. issues willng labor put pressure on the second qu

weigh in on the ecb this morning. do you think he will be playing up the need to do more because inflation is still well below target? he is focusing on doing this already, and looking at the data that is improving your the eurozone? i think you are spot on. it will be quite balance. i think he realized that when he kind of said that is it, that might be a bit of a verbal mistake. but i think he will be balance. in particularly, pointing to the this idea that you get paid 40 basis points for new lending. and we haven't seen the impact of that yet. and he will say, look, we are going to do more. i do not think he will get drawn. asking about helicopter money, i don't know if that is going to be -- someone had asked that. the bloomberg journalists, but i don't think it will be drawn particularly. corporate bonds have not really started yet. but really, you have to say, since the last meeting, and i was on just before talking about corporate bonds being included, and they were, the risk market has done very well. we don'

what does it mean for the ecb? president mario draghi is going to -- the ecb stimulus combined with stronger backing system test stronger banking system is feeding euro area recovery. -- stronger banking system is feeding euro area recovery. a tightening for mortgages a little bit of a surprise. an increase in demand. low interest rates when driver for that. the demand for investments according to the ecb. the liquidity continues to calm. interest rates stay low. the demand continues to improve. it should be relatively -- they should be relatively pleased with that. francine: if ecb does expand stimulus, what can they do? paul: there are some risks. the survey did not know the impact on the bank profitability has been negative both in the qe program and the negative deposit rate. they do not have any inflation out there. they do -- that does suggest that are limits as far as the ecb can go. it could increase the program but stocks will run into liquidity problems. what you need to do next -- helicopter money is not

we will bring you that ecb decision. it will be followed by mario draghi's has conference from 1:30 u.k. time. let's introduce our guest who is going to be with us for the first part of the program. she is karen ward. karen, great to have you on the program did thank you so much. there is a lot of qe, that if -- they say it is working as much as it can. yellen the saying it is useless. you should have done more from the start. karen: that is what we are likely to hear draghi try and divide us some evidence. they may think they are going to highlight is we need to take account. that is their main criticism of people that say it did not work. the ecb has been working on this to try and generate some stats. it has developed this much. it has given us this much inflation. don't think this policy is not working. that is one of their key messages we are going to get. the other key message we are going to get his listen we can do so much, but we need governments to step up. we are going to start to hear a lot more pressure from

ecb targeted below 2% to the ecb has to act to protect its credibility. i would not be surprised if in the next half year we see more easing steps by the ecb. benu: how worried should we that inflation expectations are coming down in europe? ecb or reaction from the will it be same old same old? marcel: inflation expectation is the most important indicator for the ecb to look at. it shows us something about market expectation, the trust that markets have in the ecb to the fill their mandate. at the moment, it is deteriorating. we don't see the euro area coming out of the crisis for the next two or three years. therefore the ecb has to keep acting. will also clear the ecb not be able to do it alone. we have a massive problems with the banking system. in particular in italy. it created more than $2 billion in nonperforming loans. we have that in your. .hat is a big -- in europe that is a big impediment to growth. we have economic growth -- economic slumps all over the euro area. guy: we are going to leave it on that note. thank you very much. joining us fro

we can start off, if you like, about the ecb actions. what do you think, sir, about what the ecb is or isn't doing to benefit or actually create problems for the german economy? >> well, let me put things a little bit in perspective, if i may. european economic recovery is under way. those economies that underwent structural reforms like spain or ireland are reducing their unemployment. so you see the structural effect is also factoring in, and it's not all about demand. the ecb has been providing an expansionary stance and increased that. this is not doing very much or not having a great effect any longer. it's structural reforms that are very much needed. >> that is something, to his credit, mr. draghi has said time and time again. he said they'll do whatever it takes on monetary policy. but we need fiscal reform, structural reform as well. who are the culprits? who isn't pulling their weight on structural and economic reforms in europe? >> well, the division of labor is quite clear. monetary policy can provide some short-term bridge t

look, if we think about ecb action, i think the ecb needs to get credit for legitimately surprising to the upside; not just surprising, but doing so in a way that wasn't targeting the currency channel. in some ways, the way we look at this is the ecb did what was in the greater good. the world in january and february was stuck in an environment where they were concerned about competitive devaluation of currencies, and what the ecb stepped up and did was taking clear action, not based on weakening the euro but directly intervening in the credit channel. when you look at what is happening -- central-bank versus central bank -- yellen becoming more dovish, the boj stepping up -- give us a competitive picture. who has got the nose ahead in terms of convincing the markets that they are the ones you should pay attention to? >> i think it's a difficult backdrop. and stillen in, might be in a place, where it appears like there is cooperation between central banks, not to weaken currencies against each other. but in our view, it is more coincidence and cooperation. guy: shanghai didn't produce

the government bonds remain eligible for the ecb bond buying program this is the ecb on the queuing function. portugal ranks number eight right here in the country that the ecb is buying bonds from. together they make up almost two thirds of the total bonds that the ecb buys. joe: if we could just get back to credit worthy, then we could be part of ecb qe and get going. that was a big ruling in favor of portugal. >> one of the things that sparked the crisis is this downturn in greece. joe: it is crazy we are looking at one ratings agency, one decision. scarlet bank everyone else has downgraded it. -- scarlet: everyone else has downgraded it. joe: the federal reserve has hit a wall, here's a couple of different measures of inflation. consumer core,e, consumer core cpi. they were all going up. this redline is where they peak and then every single one fell. they all peaked in february and then march was a setback. it is just one month. the trend could easily resume. the people watching this trend, it looks like inflation -- it was a setback. would think with the oil rebound, that is another rea

brad: we think the ecb will do what they said. beir purchase program will $80 billion -- they will run out because they bonds had set caps. they will need to buy corporate spirit they will buy about $10 billion a month of european corporate bonds. we don't think that is the risk. when you go back to risks, you have to start talking about fundamentals again. in europe, does this not spur growth and inflation? how soon with a run out? that's would they run out -- how soon would they run out? brad: on a bunch of different sovereigns, they will be running theyainst their caps -- will hit those caps at that point, which is why you have to start this june buying corporate's you don't get there on all the sovereigns. lisa: leverage is ticking up in u.s. corporations. how worried are you that lower earnings will be a problem? brad: leverage is ticking up. we don't say it's overly concerning. m&a was a big part last year. we have an earnings season with down earnings. companies are not looking to actively deleverage through paying down deb

the ecb is jawboning. draghiot draw the -- today saying policymakers will not surrender to excessively low price growth. the central bank is ready to do what is needed. the inflation expectations have been rising. 1.42% highs of last year. -- we ignored the pounded the last week or so. volatility is on the rise. level, implied volatility, which measures the exchange rate euro-pound over the next three months. at its highest level since 2009. we can't get away from the upcoming referendum with less than 80 days to go. volatility continues to climb. we are not at the highs of 2009 when we were roughly at 21.979. at the way we are going, how soon could it be before we reach those 2009 highs? will be hereens, i to chart it at and be on the referendum. betty: normalize any well. [laughter] from thees are out ecb. he went through some of what they showed. they showed that policymakers do not rule out the possibility of a further rate cut or further rate cuts deeper into negative territory. mark: now joining us f

meanwhile, the ecb did not announce any big measures on that front. it is still diving into the details of its previous measures, meaning the krona finally got some relief. joe: a major surgeon iron ore. surge in ironr ore. earlier inen hurt the year on slow down fears, and now it is taking off. news, alphabet has , first quartergs adjusted per-share of $7.50 per share, compared with consensus estimates with seven dollars 96 and. when it comes to revenue, revenue passed on the partner billion, lower7 than the consensus estimate of $16.59 billion. once again, revenue and profit missing for out for the first quarter. we also have numbers coming out , net revenue of $5 billion for the second quarter, compared with five point 03 billion, so pretty much in line. of $.39 earnings share in line with what analysts were anticipating. starbucks adding an additional 100 million share buyback authorization. resultss coming in with in line with analysts. missing on the topline line and bottom-line consensus estimates. up 29% shyaid clicks of 32%. it looks like a m

mark: on the matter of the ecb and the fed, we have a chart here. it shows the price differential between the s&p 500 and the stoxx 600. as aweek, european stocks ratio traded at a record low versus their u.s. peers, which begs the question -- why hasn't ecb stimulus boosted the european stock market as much as maybe some think it should and could? gareth: this is a relative argument. you have seen a pretty sustained relative -- rally in europe and the has been driven primarily by ecb stimulus good on a global basis, a lot of historical u.s. investor engagement in europe led a structural underway through the crisis. they made good steps to address that last year. the uncertainty around greece and the currency as a whole with the political uncertainty whether it be in spain or the u.k. is actually putting off some of the international investors, which is perhaps leaving the opportunity gap. mark: thank you for joining us today. he is the head of equity syndicate at ubs. betty: let us check in on bloomberg first word news. vonnie quinn has more from t

ecb coverage across all of bloomberg today. look for that at 8:30 this morning. ♪ this is: "surveillance," where the conversation is focusing on economics. i am francine lacqua. tom keene is in new york. toat least $10 billion paid settle u.s. claims over it or break pollution tests. almost 600,000 cars in the u.s. would be covered. it is unclear how much individual cars they would cap. toay is the deadline for vw say how they would fix the cost. retail sales in the u.k. fell by the most in more than two years. sales other than gasoline went down 1.6%. britain lot -- but less of everything. levelg to the lowest since two thousand nine, shipments were down almost 9% in the first quarter. foras returned to bust watchmakers, such as rolex and omega. exports went down 38%, they were down 33% in the u.s. very good. thank you. southwest out with earnings. the stock up a good 3%. one thing i noticed is the headline of bloomberg, southwest plastic" to retire " aircraft in 2017. i'm not sure i know what that is. anyway, southwest air

anna: does that mean the ecb is on hold? we got a piece of the press speaking in this newspaper saying that negativity rates cannot keep going to much lower levels. a lot of people questioning where the lower bound is these days. >> that message was enforced by the bank of japan decision. surprising decision not to pursue -- to be privately honest, i think the ecb probably overdid it so much. inflation is really only down at these negative levels. because of energy prices which have rebounded. i think that the ecb will because her to its mandate at the end of this year without having to do much about it. anna: how good is the rebound in oil and energy prices for the european economy? >> in general, it is not such a great thing. to some extent they chosen the wrong inflation target. that should give the more confidence that the underlying story of disinflation is not there. having chosen a particular target, i think they would notice some additional lift in inflation. if for no other reason that it puts it on a more stable pa

the ecb is leaving the benchmark -- 0%.t zero below thehas been ecb's goal and showing little sign of a pickup. is druggy's monetary policy working? pimco. us is manager of is druggy's stimulus working? what is your perception? hi, mark. i think it is working. info to know the of what would happen if they did not have the policies in place. when we look at the results in the real economy and the unemployment rate, it does not look as if it is working, but without the monetary policy, the situation in the euro zone would be worse than it is right now. bankersong some central , saying we have reached the ofits of the effectiveness central-bank monetary policy. do you concur get-go -- do you concur? i certainly concur that the marginal efficacy of each additional dose of monetary easing is declining. there are declining returns in each round. that seems to be taking place. i concur on that. i would disagree that we reached the end. draghi. draghiuestions -- mario brushed off those questions. he did indicate that they are willing to purchase more assets and keep on doing that. that is whe

some point in the future that more ecb easing would be on the way. you can see that chart on g #btv 989. betty: you got some work ahead for you, mark. mark: is it time to get out of mining stocks? i don't even need to do this chart because we just spoke and he said that you should not be chasing so i will see you later. [laughter] as you know, the ftse 350, which encapsulates the glencore's and the anglos, since january, the index is up by 74%. this pushed the valuation to 38 times estimated earnings. that is a big rise from the 20 level in january when it was ftse 350r the mining index. 600while, the stoxx valuation has moved from 14 times estimated earnings to 16 times earnings. the valuation gap, which is the come is basically at the highest level since records began when we started compiling the data back in 2005. is it time to get out of mining stocks? citigroup says basically it is. it has changed its six-month start on the metal and mining sector to bearish. the stocks have run too hard and too fast. if you want to love my chart, g 990.b betty

it's ecb week. we've heard some unhappy voices from germany ahead of the meeting, the various finance minister telling us that the state of the ecb should be german, and that record interest low interest rates are -- berlin with the school of governance director, who joins us now. good morning to you, sir. is the ecb the front of germany, you think? it is the friend of germany because it sets the monetary policy for germany. right now we see german politics going on in you know you want to focus on other issues, in the ecb's controversial, which is why it is viewed as having against mario draghi. guy: in terms of how the economics of germany will develop from here, when you look at what the likely outcomes are, we see an awful lot of moving pieces. we don't know what is happening with the euro, what's happening with china. we don't know what will happen in terms of southern europe. when you look to what happens next, like the key variables for you? >> inflation in the euro area is still at zero, and

tracy: ecb inflation has been lagging below target. you can actually see exactly how far below just on this chart. here is the ecb target rate and here is the actual inflation rate. we did see mario draghi talking about this today and he actually said that inflation rates could turn negative in the second half of the year and it will probably be some time until they go up again. scarlet: so clearly there is a lot of work to be done on the inflation front. they have to get lending going. hopefully they will build on the aggregate demand. tracy: the centerpiece of the recent stimulus measures is the print bond buying program. you have to wonder whether asset purchases will have an effect on inflation this time around. scarlet: and the signal that interest rates are probably not going to get lower for now, the question becomes, how long before the ecb does anything? -- thinks thinks the it will be 3.5 years. raising is at the other end of the spectrum. this is our chart. this is the morgan stanley index that tracks the number of months to

we got this ecb conference that is taking place. we will watch out for those comments. where a half hour away from the european open. let's get updated on where we stand. i taken to the bloomberg to the fair valley calculation. the story looks fairly politics that's fairly positive. we have seen a rally and that has provided some impetus to the european stocks. ats: let's take a look dollar yen. euro-dollar also showing some real strength in the euro at 1:14 -- 1.14. we have yen ci training up. crude up a percentage point. 38.11. let's get first word with come with the ramanathan. kumutha: dutch voters have rejected a treaty between the european union and ukraine by a margin of nearly two to one, the results of the referendum have exposed the extent of anti-eu sentiment in one of the blocks founding members. meanwhile, if britain decides to leave the european union, the outcomes are large and potentially unknown. that is according to jpmorgan to annualie dimon in his letter to shareholders, he says even in the best case scenario, there would be years of uncertainty whic

he is waiting for details from the ecb. monetary policy at this point and time seems to be stuck in the middle. we are waiting for the fed to figure out what it will do. we are waiting for the ecb to provide us details. how long until we get a gauge on the real effect it is happening right now? >> the problem with monetary policy is that many people think the only instrument we have is monetary policy. but at the end of the day it is whomarket participants should be willing to invest. but at the same time, the ecb sends a signal that everything is so weak and the risks are bigger than the opportunities. then there is the whole burden on the monetary policy but then it gets stuck and i think that the ecb realized that the negative interest rates were a mistake. in germany and the critics are so loud that he says, i don't want to hear that. please let me go the way that i think i should. we have kind of a dilemma. he can't turn back negative interest rates right away but i think the ecb started to realize negative interest ra

has to pay the ecb a payment by july 20. you assure us we will not have a repeat of last irdmer when greece got the th bailout but the paths of that bailout was so much financial market uncertainty? to avoid that. there is no need to have that. we are not in the same situation. the situation is much better. are excepting now that we are and they are on a reformed path. i don't want to hear anymore, anytime about grexit in any kind of meeting from the euro group. is way too far way. we absolutely need to find a deal in the weeks to come. mark: what is the bigger risk to the e.u. project? is it a deal not being struck between greece and its creditor or is it the u.k. voting to leave the e.u. >> i don't want to talk about grexit. still not want to talk about brexit. we need the u.k. in. that is precisely what we are supporting. get us closers to to a point where we are not jeopardizing the financial sector. is this process getting us there? because some people are campaigning for present now seem to think it isn't -- some peopl

the ecb is ready to all the stimulus gun today. five-yearficials, the rate is off its record lows of last month. it is still well below the target of 2%. i can't believe we are still talking about ecb stimulus. i thought we were done with it, betty. betty: we thought, but we just can't get rid of it. we can get rid of any central bank stimulus. has more on other news at our news desk. vonnie: president obama takes his case for his supreme court nominee merrick garland on the road today to the university of chicago. so far, the white house campaign for garland has had little effect. hastert askednnis that he not go to prison in a hush money case. he has pleaded guilty to violating laws in trying to pay $3 million in hush money. will search the panama papers for evidence that people against russia. at least $2 billion in transactions involved individuals and businesses that had ties to russian president putin. russia has dismissed the report as an attempt to destabilize the country. bank at thethe center of those papers says that his

draghi is leaving the door open to further rate cuts that they at the ecb. we are going to take a very quick look at other asset classes when we return. up next, we will talk to the head of the global emerging markets. ♪ guy: kuroda is still speaking in tokyo. i love this line we have up on the screen at the moment. helicopter money not legally allowed in japan. what he said was under the current circumstances, under the current legal structure -- you change the legal structure, it might give us the opportunity to do that, but monetization might be been, for that -- might be the moment for that. academic.cally an that has no relevance to the real world. it is interesting that kuroda is saying that the boj will add easing in all three dimensions if needed. that is very sci fi out in tokyo. let's get back to switzerland, where the world management summit is being held. caroline hyde is there with another guest. back to you. snowine: yes, and the continues to fall. warm.afael is keeping me clients inking to brazil and mexico. what is the risk sentiment at the

ecb to decide on its monetary policy choices. it is not something the european commissioner can comment on. it is independent. it is clear that inflation is targettially below ecb's of close to but below 2%. that monetary response to is low and even negative interest rates. to that point of the appropriate policy response, i am wondering how frustrated you are that we are not seeing some sort of affect coming through. the bank of japan talked about negative rates taking some time to work. --ue in that camp as well are you in that camp as well? recently made its substantiallylicy more accommodative. through low interest rate policies. we are gradually seeing that crediting those real economies are finally starting to pick up. this is a positive development. inflation, low inflation, it is a main driver. prices and low commodity prices. this is also the fact that we are not -- these are also fax we are not expecting to last forever. guy: much has been made by the on the effectment on the u.k. economy if it was to leave the eu. what

big moves in the ecb and till september. -- until september. up next, we speak to the ceo of roche. that company reports its sales numbers this morning. that is coming up next. futures are likely to be higher. we will be there in 20 minutes. ♪ anna: welcome back. you are watching on the move. we have sales figures to get this morning. roche. beating analyst estimates as demand for its cancer medicines group. -- grew. take us through this. looking at some of the headlines coming out of roche. topline number. steady as she goes. >> that is the best way to describe it. when percent beat on risk consensus. engine isd, the key the breast cancer product portfolio. come on a relative basis, the consensus is tamiflu sales helping you deal with flu outbreaks. year but theyt beat estimates by quite a bit. that helped them make up for some of the other drugs that did not make confesses -- consensus. or a did we have a good bad influenza season? >> miles. the diagnostics did really well. they continue to have trouble with diabetes where there is serious

talk about the ecb. we door stepped to peter prada. strategy, we are permitted to reese 2% in its pursuit will future. -- to reach 2% in the perceivable future. i think the measures we've taken are quite forceful. and would produce the desired effect. you see the ecb reaching the 2% target, and to use his words, the foreseeable future? richard: more important is the market reaction. markets are liking the signal they are getting from the ecb. if you look at the strength of the euro, after close to six-month highs -- mark: is that dollar weakness or euro strength? richard: accommodation of both. the euro was performing very well. mark: brexit? on euro pound was above 80 p friday, how low the sterling go ahead of the referendum? what we said was 80 days. richard: we are only six weeks or so into this. if you look back to the intensity of the speculation when they announced the dates, so i hate to join the course of negativity. but it is difficult to buy the pound at the moment and go long sterling. it lightens the uncertainty we're going

result local crisis turns more contentious and investors mow the latest moves from the ecb. >> the ecb has now done enough. >> intel's cutbacks and alphabet's outlook. we cover the week in tech from a to z. >> they are only appealing to people who can speak english. >> profit growth. imagine that. >> no, they are growing. >> and we cue up the week's best interviews. policymakers hold nothing back. >> i don't want to talk about brexit. >> plus, we don't miss a beat as earnings season rolls on. it is all straight ahead on "bloomberg best." ♪ >> hello and welcome to i'm erik -- welcome i'm erik schatzker. , this is "bloomberg best." a weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. last week ended with high hopes that a meeting of petroleum producers in doha qatar would result in a deal to freeze output and bring stability to the market for crude. but talks fell apart and this week began on a familiar note, uncertainty for oil. >> the much touted meeting of top oil producers. it ended without agreement or a deal. we

frontors are probably running the ecb purchases, what they think the ecb will buy when they start to buy corporate bonds at the end of the second quarter. let's check in with david gura with the latest from our newsroom. ministers from the group of seven industrialized nations are meeting to call or nuclear disarmament. also on the agenda is terrorism. all the g-7 nations remain absolutely steadfast and united in their commitment. i would call it a resolute commitment, strong commitment, to degrade and destroy daesh through our global coalition and are each committed to using the tools available to us in order to confront this scourge. david: meanwhile, secretary kerry visited the memorial of the hiroshima bombings. him the mostes senior american official to travel to hiroshima. the international furor over the panama papers is entering its second week as david cameron faces criticism about offshore tax havens. malta's government is facing a no-confidence vote. the u.s. naval officer charged with spying for china has been identified in multiple media reports as lieutenant commander e

how did the euro react to what came out of the the ecb. >> it jumped against the dollar after the ecb announced the decision of no change in policy. it soon fell after ecb president hinted about the possibility to eventually increase its stimulus measures if necessary. since then it's fallen to the 107 yen levels earlier in april. a look at markets open elsewhere. seoul's kospi is trading in the negative. how it affects japanese shares and shares of mitsubishi motors and the related sectors to the auto industry. back to you. >> thanks. we'll talk to you in a few hours time. >> business owners all over japan are feeling the effects of the aging society. nowhere more so than in the country side. some are looking for the answer to the labor shortage abroad. that are turning to myanmar. >> reporter: they arrived to discuss a deal. the leader of the delegation aims to make an agreement to employ trainees. >> translator: we can tackle a range of problems if we have access to skilled labor. he visited a sewing factory. he found people hard at work. well aware that competition for young worke

unclear ifit is very the ecb could do it. what we have seen over the past there is a loto, of possibility in the european treaty. if they really need it, they really want to, they will probably find a way to do it. is iftely, what matters there is another crisis, we may see that the financial study was has run its course. if they do not do it from the central bank may have to do it. anna: amazing how a crisis can galvanize thinking. saying iton message, would be such a fiscal action, the ecb would be undermined. but a lot of the details would need to be worked out, if anything like that were to be suggested. let us just get up-to-date with some the happening over in the japanese session right now. mitsubishi motors, the share price they're plunging. the company will brief on in proper fuel tests, that is the headline just crossing the bloomberg right now. not a great deal of detail behind that. but as we get more on that, we will bring that to you. shares down as much as 70% in today's session. that is clearly a story that is

the ecb is committed now to qe for an extended period. there again, i think they are going to be low rates for an extended period. if you get a recovery in inflation, all you are talking about is inflation returning on target. guy: given the market position, even a return to normal is a significant move. stephen: yes, so we have to see how bond markets react. too early to start building a portfolio around it? stephen: in my view, you wait for the evidence. hans: i just want to bring in some quick breaking news on the german bunds. two-year notes down to their lowest level since that march 10 ecb meeting. -0.521%. that gives you a sense of how low things are. 0.15%.s are down at a huge move, but we are seeing some action in the two-year. stephen macklow-smith is going to stay with us. lots more to discuss coming ahead. ♪ hans: welcome back. i am hans nichols in berlin. let's get the news from hong kong with juliette saly. thanks, hans. standard chartered is seeking to sell $4.4 billion of assets in asia according to people with knowledge

mario draghi signaled did ecb will wait to see how measures pan out. could that open the door for janet yellen to raise rates? first i want to bring you my chart of the hour. 7.8 trillion dollars in government bonds have been driven below zero by worries over global growth. money managers are going into debt with maturity for over 100 years. you can see more church by heading to, the story only bloomberg calls it the most dangerous bond market in history. let's welcome with that nice little intro, dangerous trade. very of cookare investment given the incredibly low level of yields. very difficult investment given the incredibly low level of yields. francine: if you look at the 40 year gdp with the white line, the blue line is a 30 year. now we are around 0.4% which is quite credible. do you buy anything in terms of environment echo scott: it is tough because the intervention by the bank is still massive. terms of environment? scott: it is tough because the intervention by the bank is still massive. that is a big problem for japanese banks who said lend

francine: do you acknowledge the fact that actually a, the ecb is independent. michael: it has been germany insisting on that. francine: right. why do we hear politicians coming into the debate? michael: because we think we have to at least let him know that we think it is, of course, it is his decision, it is not our decision. we do not have any interest rate we can only tell our opinion. our opinion is that the lower interest rates did not really boost the situation. they have to do reforms could without reforms, the situation in these countries will not be any better. and the medicine which we gave them at the moment is low interest did not really make it goi away. helpede: i guess it has a little bit on currency. is there a level that, that is beneficial for german exporters? higher it would be to the detriment of german exporters. rmanael: for us, ge exporters still growing a lot. the situation is very good. it is more or less, of course, we are benefiting from the weaker euro. because in those countries where we have the u.s. dollar-based currencies or u.s

darling for free as the ecb expands its stimulus package. we are joined with our corporate finance reporter. it is great to have you with us. the does this tell us about european credit market? when i look at this story, i see one big bubble. >> it may well be a bubble. what it does tell us is that investment companies are listening to mario draghi's message. they heard loud and clear. we have seen a near record amount of issuance in march. that across the board, investors are reaching down to try and get yields. deposit rates have been cut to -.4%. investors are looking for places to put their cash that are not negative yielding. they have looked to corporate bonds. across the board, there is a lot of advertising for credit at the moment. hans: hans here in berlin. you cover corporate bonds so well. do you see the national breakdown? are german corporate borrowing less? why do we have this french company that was the first to issue such a low yield? katie: we could make a connection to that fact. it is a very highly related company. it is o

there's been some ecb member comments on the tape. for instance, peter prett saying that growth and employment cannot depend on monetary policy alone, but if the economy should take a turn lower in europe, the ecb has the tools to act. lots of central bank speak. i think the people reason are watching the dollar-yen so closely. look at that move, down 1.3%. it's a read on monetary policy. japan has thrown everything at its economy to try to boost it and weaken the japanese yen. now the market is taking it the other direction. >> and comments from bk asset management saying it's a worrying move. we've seen these moving just go further and further. it's sort of baffling when you see the differentiating central bank policy around the world. and of course we have minutes from the ecb today. that's at 7:30 a.m. eastern time. so we'll look out for those as well. let's check in on equity markets around the world. asian trade, as you can see, mixed. the shanghai comp, which had been managing to hold on to gains in the face of declines for the

the ecb was very constrained. so there will probably be an insistence on the capacity of the ecb to always do more to fulfill the mandate. but helicopter money, for me, it's a very complex debate in which the ecb has not much to gain at least in the short term. >> thank you. we appreciate your time this morning. >>> got a restaurant for you. he is over in london. >> no, no, no. >>> when we come back, gm cfo chuck stevens on the company's quarterly results. he'll join phil lebeau. >>> steny hoyer joins us to talk about the race for the white house. budget talks and how he wants to improve the nation's cyber security systems. "squawk box" will be right back. actions speak louder. something we'll show you. through small things, big things, and spur of the moment things. youto get the help you'refar looking for. big things, that's why at xfinity we're opening up more stores closer to you. where you can use all of our latest products and technology. and find out how to get the most out of your service. so when you get

what more can ecb do, and what does it mean for the euro? joining us is a global head of fx strategy at citigroup global. if the ecd cannot boost lending, what happens to the euro? >> they have a problem that they need to get steadier growth. they have political and long-standing economic issues. the kind of mediocre growth will not be enough.. we expected sometime in q3, they will come up with a further package. how effective the package will packages,e seen many and they'll have some degree of effectiveness. none of the countries that have gone into negative rates, where we have seen quantitative easing, in no case has there been a killer package that you would say really has succeeded and set the template. we will just do a bit more. joe: what is the prospect for the euro? >> they can't be happy that it's pushing 114. it's not going up really fast. in some ways, the market isn't paying that much attention to it. bigger oney is the so far, the yen story. they feel this drift is hampering them. there is a good correlation between the underp