this is bloomberg markets. vonnie: hero the top stories we are following -- covering -- here are the top stories we are covering from around the world. the eu fighting to keep the iran nuclear deal alive after president trump effectively withdrew u.s. membership. the latest reaction. from thel hear deutsche telekom ceo. that and lots more but we are 30 minutes into a u.s. trading session which is proving very interesting. julie: yes it is because we saw a relatively strong open and have already given up some of the gains.

there were some large laggards. for now, the major averages are hanging on to gains. for the nasdaq and the dow, it is just barely hear. we continued -- barely here. we are watching oil prices. oil which has had a volatile few days, still is rising, up 4% and back above $70 a barrel even volatilityw all the and before the president's announcement yesterday. still the press upward continues. a lot of this has to do with the calculus for oil production and supply, coming from iran and the broader region. we have a look at iranian output during broader sanctions and we saw sharp declines. the supposition by many in the oil market is that we could see

similar activity this time around that is going to cripple oil supply and continue to boost prices. that large brag i mention of the egg -- on the major averages, walmart is what i am talking about, after the wall -- after the company beat amazon in acquiring a stake in india. we are not seeing investors like this deal at all. the company says it is going to drag on earnings this year and next year. that is what is going on with walmart. amazon shares in the meantime are at a record. if we look at some of the other movers on earnings, we have -- topping and cody the earnings estimates. one analyst said it was because of former and current is to -- foreign currency tailwinds. on the downside, we have monster

therage, offsetting earnings beating and finally, marriott. below estimates that the full-year forecast is above estimates. vonnie: i just want to add to your walmart . the s&p has downgraded the outlook for walmart -- add to your walmart paragraph. the s&p has downgraded the outlook for walmart. that is the u.s. market check. what is going on in europe? caroline: the got about 90 minutes until the close of trade in europe -- we've got about 90 minutes until the close of trading europe. performer, standout we had julie talking about oil prices. energy companies are doing well. all on the back of the u.s. pulling away from that deal with iran.

up goes energy, down goes travel stocks. stocks. a few other key german stock that is not do particularly well in power and gas but it is doing well today because it's numbers showed its full-year outlook is looking good. this is siemens. the german company really ramping up higher. four straight days of gains for the engineering juggernaut. turbines are not flying off the shelves but where it is doing well is the digital part of the business. factories need to get on that digitalization curve and siemens helps them do it. another one that is selling off significantly, burberry. last three days in terms of the chart and where we

have sunk two, it was a significant -- sunk to, it was a significant loss. why? well a key investor was selling off his 6.6% stake. of theaking some prophet, this is a stock that has done well over the last .onth -- some of the profit this is a stock that has done well over the last month. key question marks out there for the analysts. lastly, let's have a look at the other markets. i am talking turkish lira. we are significantly the highest here.s why is the lira outperforming? we are down some 13% in terms of

.he turkish lira -- could that be pushing the turkish lira higher as we have seen the fallout of a stronger dollar and potential rate rises in the u.s., and now the iran deal. erdogan gathering his economic advisers together. vonnie: caroline, thank you. back to fresh revelations regarding president trump's former lawyer, michael cohen. andian oligarch's, at&t another company are all intertwined. bloomberg'soined by executive editor for legal and regulatory coverage. what other questions we should be asking when it comes to companies like at&t? >> is companies need to be

asking themselves why would they make those payments to cohen and with everything above board. we have heard a variety of answers. at&t says it was looking for insights into the new administration. they are company says it was looking for advice from cohen on local accounting roles. -- rules. we have not heard much from columbus nova. it is companies were hoping to get some sort of insight about the administration. what exactly were they doing and why were they paying trump's personal lawyer michael cohen. vonnie: he was not even registered as a lobbyist anyway is there are certain rules about that -- because there are certain rules about that. >> michael cohen, renaissance man? i don't know how to describe this guy. we have learned about a taxi business, and we have learned he has been doing everything from

contracts for a foreign star to advising sean hannity on real estate to taking care of another andlem for elliott brady now we know he was taking money from companies for something. he was not registered as a lobbyist. we don't have any indication he needed to register but we don't know exactly what he was promising or what these companies thought they were getting from him. vonnie: does at&t have a legal mote? everything we have heard has been there was nothing that was not above board and that they were looking for somebody with some advice. >> the company is scrambling to understand who and the company authorized these payments. it is a small amount of money for that company. the company said it was paying others for this kind of insight. i would like to know who those others were. we talk about political intelligence because it is different than lobbying. this is the thing were companies are trying to figure out how to

administration is leaning, and hopefully going to use that in order to better its position, either before the government or legislation and in this case, we know that at&t had a big merger pending, that it was going to wait for the justice department. the justice department ultimately did challenge that. companies embroiled, people embroiled. about the best case and the worst-case scenario for donald trump. is the best case that cohen comes out as potentially a lobbyist when he shouldn't have? was a lobbyistn or not, this is certainly unseemly and looks quite bad that people were paying him to somehow get close or for their own self-interest. the president's lawyer putting

himself in that kind of position raises a lot of questions. we have to assume that what we don't know, special counsel robert mueller does no. theas supposedly stopped russian behind this company and asked about his interactions and presumably has access to evidence we don't. in new york, federal prosecutors raided cohen's office and home. they have a wealth of documents, cell phones and other material that would include material with these companies about what they were asking for and what was delivered to them and where this money went. it is very hard to talk about the best and worst case scenarios because we only have this glimpse of the iceberg, which that -- which is that suspicions were raised about specific payments from a bank. where that money ultimately went and what people knew about it. that is going to have to give us a sense of whether there was any type of fraud. at the least, it appears that

cohen misrepresented what his purpose was with this company called essential consultants when he opened an account at first republic bank. it did cause that direction to be flagged and go up to the u.s. government and now we will try to find out what happened. vonnie: we have not even mentioned the point that it is -- who brought all of this to the attention of the world. thank you, when he o'kelly -- winnie o'kelly. caroline: we are going to be focusing in europe. the ceo of deutsche telekom slamming a planned acquisition of a global european asset. we have been speaking with him. >> i think the deal is totally unacceptable because there was a time when the telecom was not allowed to sell their cable business in one piece. it would have traded a much

bigger price. it was sold in three pieces. and now all three pieces are coming under the roof of the whole a phone. we are joined now. consolidation clearly antagonizing him. do you think he has the right to be as impassioned as he was? >> this position is completely understandable as the ceo incumbent of the telecom -- deutsche telekom. it would become be -- it would be combining two cable operators in germany but they are not overlapping. overlap,ot have a geographically speaking. been favorably -- more favorably to deals -- that would create quite a formidable competition to this incumbent.

from a regulator point of view, true and as the incumbent ceo, he will oppose it. they've got to pay up for this and i want to bring to our attention, if you look at how the credit default swaps moved or didn't, this is a company that is going to have to issue hybrid debt, 10 billion euros worth and the credit default swaps are not really budging. are people not worried about the amount of money they're going to have to raise because they are doing it in the -- in all sorts of ways? >> it is true. a part of that will be treated as equity. they will be able to most likely preserve the investment grade rating. [indiscernible]

they are improving their fundamentals which means the cash flow will be growing. reflects on the space. caroline: it looks as though it could get a regulatory thumbs-up and a larger competitor coming germany's way. thank you for breaking that down for us. covers european telecoms with us. moore is next. ♪

vonnie: turning now to the bond market, investors may see 10 year treasuries with a fixed 3% coupon for the first time in almost seven years at today's $25 billion auction. just below 3% right now.

chief fixed income from the just at charles schwab joins us now. kathy: the market knows there is a lot of supply coming. to see onbably going the order of 400 billion or so in auctions. well.l get down there is plenty of demand at those levels. the market purely so -- purely obsessed with supply these days? kathy: it does not seem as though there has been any flight to safety best -- based on this. a lot of news leading up to it to indicate it was going to happen. i am surprised that there were not a few jitters showing up in the markets. caroline: jamie dimon talks of 4%.

do you see that as high as we are going to get? kathy: i don't see 4% anytime soon. you need to see inflation move up significantly and threaten maybe a 3% level and that does not seem likely to happen anytime soon. 3%, maybe 3.25% because of the heavy supply. typically the peak in the 10 year is very close to the peak in the fed funds rate in any cycle and that the fed is correct in terms of where they are taking the funds rate with forward guidance, we are close to that level. caroline: when you're talking to the retail and institutional clients, is this what you should be getting too? -- getting to? kathy: we have actually been suggesting short and intermediate term duration for quite some time because the trade-off was just not that attractive.

we are still there. we are not calling for moving out those yield curves yet for most people. we have been short to intermediate term duration. we think the sweet spot is about five year because you get the most yield for every unit of duration risk that you take. we are still cautious on the duration side. vonnie: we've got pdi data today. a tiny bit disappointing once again although we are above -- we saw in april? what happens to inflation in the united states? i think inflation will take off because of the energy crisis and the ongoing rise in medical care costs and a type -- tight labor market. i don't think we have a huge amount of upside in inflation. you look at the global economy, and excess capacity.

we've got the opposite dynamic of what we had going on, last year. vonnie: thank you for joining, kathy jones, chief asked in confident just at charles schwab -- chief income strategist -- chief fixed income strategist at charles schwab.

caroline: this is bloomberg markets. i am caroline hyde in london. vonnie: and i am vonnie quinn. it is time for our weekly moment segment. julie: it is all about infrastructure. it is our topic did you are. joining miss -- joining me to talk about this is marcia van wagner. -- why are they more burdened? marcia: local governments are facing the expense of nature of this plan. governments to

identify new revenue streams which is difficult for local governments to do and then the feds are only putting in 20% of the project cost which contrasts with the current highway program where the feds put in 80%. those things make it very expensive for local governments to participate and they have a hard time raising taxes and they may not have control over those things. on top of that, local government and state government are experiencing low revenue growth by historical standards and they have rising expenses -- expenses for medicaid and pensions. julie: especially with those pension costs we have talked about. -- report also talked about raised. what is the outlook? marcia: it is important to begin to remember that they are a way

to get a project done, but it is not a mechanism to pay for the project. at the end of the day, you are still using tolls or taxes or fees. it is not a panacea for infrastructure needs. benefits infinitely terms of project completion and this plan does make some of that easier. it does not unleash some great wave of investors. julie: another thing, you were talking a lot about transit and the transit system and they seem to be even more burdened by this plan. can you walk me through the transit funding? marcia: this plan does not actually add money for transit. there are existing grants that transit systems already qualify

for, but the plan would make it more difficult to qualify. it is really not a plus for the transit system. julie: so more infrastructure reports hopefully coming up soon as we await more details from the trump administration. that was marcia van wagner from moody's investor services. caroline: let's have a quick check on the markets because we sessionng a tenant of -- tentative session. s&p 500 up a similar amount. the dow jones industrial average up a 10th of a percent. overall, this is been a day of oil strength -- this has been a day of oil strength. the reason, the u.s. stepping back from the irani and deal. -- iranian deal.

deal is where the markets are focused right now and it really is about the oil price. vonnie: i think it is about waiting for the next move as well. we are seeing european leaders and leaders around the world say this is just one player coming out of the agreement but is it really? we will have to see how the market reacts and how the iranian government reacts. a quick look at businesses in the u.s.. the best00 is performer, tripadvisor. the worst performer, monster beverage followed by walmart. this is bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us."

that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. caroline: and live from the european headquarters in london, i am caroline hyde.

we are in the green in the stoxx 600, it is all about the oil players. we have seen oil surge somewhat on the back of america backing out of the iranian deal. we are seeing crude oil futures rise. the $71 markn because inventories are out and we hit a big draw down. don't forget, the previous reach, there was a massive bill. this is potentially correcting for that. crude oil inventories, a drawdown of 2.2 million barrels. that was a drawdown by more than twice what analysts were looking for. utilizationefinery

was down as well. oil reacting, putting on another dollar and change. world leaders speak out following president trump's decision to pull out of the iran nuclear deal. we are joined now for her reaction by the executive director of the nobel peace prize winning group, the international campaign to abolish nuclear weapons. is this a step back for the world and the united states? beatrice: it is an incredibly stupid decision. if you want to prevent iran from creating nuclear weapons, this is a bad idea. vonnie: explain why. beatrice: the deal allows iran to have so many steps, the highest safeguards in the world.

we know exactly what iran is doing. this gives them an opportunity to not have to do that. if you are wanting to prevent iran from developing nuclear weapons, this was a bad mistake. vonnie: every other country that signed up to the accord is saying we are still in, this is just one player. can the other countries in europe and elsewhere keep iran to its promises? beatrice: we hope so. we hope the european countries are working on that and they need to show iran that nuclear weapons are not the right security and safety. it needs to come from europe to convince iran that nuclear weapons are not an option. it needs to show that the u.s. is decreasing in influence because of their savior. the u.s. is undermining global security, it's national security and losing its status as a leader. the rest of the world is moving

on without the united states. caroline: i want to talk about bringing themg at to the table. boost toed to have a its economy and wanted to see increased trade. i am looking at how much eu trade has picked up with iran and it is only about 15% of iran's total trade. can europe alone do enough to keep iran at the table to make life that much easier, to ensure that they keep the nuclear proliferation from expending? -- expanding? beatrice: it is difficult to tell. we know iran said they would discuss this with the other partners of the deal. i think that the united states is really giving -- providing incentive to iran to break out of this deal themselves.

it is difficult because iran is complying with the deal. this comes from the iaea, all the other countries in this deal. this comes from the united states government. iran is following the deal. they are sticking to the deal and the united states is punishing them because of that. that is going to seed some resentment in iran. the eu and the other countries will have to step it up. caroline: does it breed discontentment elsewhere as well? beatrice: it is definitely putting a spotlight on how are you going to react to the united states deal? can you trust the united states when it comes to making deals on this issue? vonnie: defense secretary jim mattis now saying we have time to address the iran deal shortcomings. what is he talking about? beatrice: i don't think there is

time. 90 days before the sanctions start back in. you have lost all of your leverage in a way. it is not easy to fix this deal. are you going to get iran to agree to even more things relating to human rights and the terrorism stuff, when they just sabotaged this deal? vonnie: do you see any positive argument for the u.s. having done this? beatrice: no. straightforward, it is stupid. vonnie: what about the critics regime that say iran's is absolutely unconscionable for its citizens? yes this might make it worse but ultimately the outcome will be better. beatrice: this was a deal about nuclear weapons just like the hopeful deal with north korea is about nuclear weapons. when he to be able to engage in negotiations on specific issues, even with countries we don't agree with.

that is diplomacy. we don't just make field with our best friends. we have to be able to come to agreements with countries that are very different. we make deals with other countries that have awful human rights records. this should be about nuclear weapons and stay that way. vonnie: we can see defense secretary jim mattis testifying in congress and he is saying we have time to address the iran deal shortcomings. how do you see this playing out? you have seen signatories come and go. can we get back to some kind of a new deal? will there be two deals? u.s. has i think the painted itself in a corner with an aggressive policy and statement. you cannot repair that. area, the restn of the world sort of pretense this did not happen and we try to make it work anyway. worst case, this is the start of

a war. this is going to be used as an excuse for military intervention in iran. ,onnie: thank you for joining executive director of the international campaign to abolish nuclear weapons. ♪ caroline: now onto another key story we are watching. the turkish purpose -- the turkish president is said to be meeting with his economic advisers. this as the turkish lira has slumped to lows as investors worry interest rates are too low. we are joined from istanbul. today, we got some reprieve from the turkish lira on hopes that we might get some emergency interest rate right -- interest rate hike. >> that is correct. before president erdogan announced this meeting with his economic authorities, the turkish lira had been hitting record lows.

istanbul had been down for a fourth consecutive day and it closed down yesterday, more than 100,000 points in almost a year. the yield on turkish bonds were at record highs. as president erdogan announced this meeting, there was a reversal in turkish assets. we've had the longest losing streak in seven months when looking at the turkish lira. how big a move does this have to be for the market to take it seriously, because the issues at play are a large debt pile in current -- in foreign currencies and the u.s. is eyeing up for the rate hikes. these are long-term problems. can a short-term interest rate fix that? expectations are all over the place of what could happen. one option is an emergency rate hike. economists say it has to be a

significant rate hike. -- came out and said it has to be 100 basis points. another option could be a verbal intervention by the government, to prove that bank is independent. the government said the central bank is free to take -- could say the central bank is free to take action as it sees fit. the policy meeting is currently scheduled for june 7. if the central bank does take measures, economists expect a major move. otherwise it will not stop the fallout. vonnie: unemployment expected to be at 10.5% this year and next year, in spite of the 4% plus gdp growth rate. how are conditions for the regular turkish person? turkey is dealing with double-digit inflation.

this is -- into a target rate of 5%. we are seeing a widening current account deficit. the is crucial ahead of presidential elections at the end of june with president erdogan is desperate to win but with economic problems, there are questions about what the outcome of those elections will be. all over we will be this as we continue to watch the market fallout. thank you. meanwhile, let's check in on the "first word news." >> three americans arrested in north korea are -- are on the way home. they are flying back with secretary of state mike pompeo. the president tweeted that he will meet the plane when it lands tomorrow. he says the freedom americans --

freed americans seem to be in good health. according to people familiar with the matter, it is not clear if the offer is enough to reach a deal with the u.s. and canada. the u.s. once north american auto content to be 75%. mexico is said to be offering 70%. inflation of the wholesale level rose less than expected last month. the producer price index increased just 1/10 of 1%. that included slumps in beef, eggs and vegetables. in the u k, more misery for retailers. same-store sales fell from a year ago. british retailers have been hit by the rise of online shopping us consumers are more cautious because of rising prices and sluggish wage growth. global news, 24 hours a day, on air and at tick toc on twitter, powered by over 2700 journalists and analysts in more than 120 countries. leinz, this is

bloomberg. vonnie: here is what is coming up in the markets. equality in focus. at the top of the hour, we are heading to washington for an interview with the chairman of the house services committee. ceo speaks, uber's to brad stone at the uber elevate summit in los angeles. this is bloomberg. ♪

caroline: live from london, i am caroline hyde. vonnie: and i am vonnie quinn. this is bloomberg markets. it is now time for our stock of the hour. it is walmart. shares are sharply lower.

on the news of the company's investment in flip cars. abigail doolittle joins me now with more. abigail: it is walmart's biggest deal ever, $16 billion in flip card. the reveal was pretty interesting. hours before both supposed to be the formal announcement, it was -- walmartand followed up, making it formal and this is india's biggest e-commerce giant so it puts .hese companies in that space surprised tonot be hear, this is really to compete against amazon. walmart making this big e-commerce investment to compete

against global e-commerce giant amazon. caroline: amazon has gone in organically with a 27% market share but that is trumped by the 130% market share that flipkart currently has -- by the 30% market share that flipkart currently has. caroline: they could be -- abigail: it could be growing per year. estimates ity could be a $200 billion market in the next decade. amazon missed china, so they are really in this to when it -- to win it. they need to prove they can bring on the e-commerce success they have in the u.s., in india. they are going to be competing against flipkart which now has capital but also the expertise of walmart and walmart and flipkart want to go up against amazon and win it as well.

relative to walmart ticket current efforts, it is thought by analysts that it represents about 5% to 8% of their overall revenue. as we hop in the bloomberg and take a look at their online that they had been growing at about 60% and in the last quarter, a dip down closer to 23%. they don't reveal the numbers, so this could be something where they beef up the numbers because right now, their stake in flipkart is going to be a separate entity and that perhaps once all of their commerce numbers become large enough to be satisfactory to the street, that they may perhaps start consolidating them and revealing them and perhaps that growth will get on track. vonnie: we don't talk about india enough.

down 3.9% right now, that is walmart. our thanks to abigail doolittle. caroline: fascinating story. now it is time for the bloomberg business flash. the world's largest beer maker posted first-quarter earnings that beat estimates. anheuser-busch reported strong demand in europe, china and mexico. the brewer is ramping up its marketing campaign for the soccer world cup. it is the most-watched sporting event around the world. the world's longest -- largest long-haul airline boosted full-year profits and benefited from a revival in middle east travel. a pilot shortage hurt operations in the second half but the chairman said that is not a big issue. that is your bloomberg business flash. vonnie: still ahead, how renowned designer -- is building up women in the workforce.

we spoke to her at the in of your role bloomberg business equality summit -- at the annual bloomberg businessweek quality summit. ♪

vonnie: they fashion designers cook exclusively the bloomberg television at the inaugural bloomberg business of the quality summit. she said at one point, female executives are treated as tokens on a board. >> i was from a generation that was proud to be a feminist and it was a wonderful thing to be and you were really proud and then my daughter's generation, they kind of took it for granted but i see that now this new generation really is feminist and i think it is important. i think that the fight for equality seems so obvious and normal. that and i know

that people say it is too much. i don't think so. , think it is time for everyone for women to take charge and also -- you can't just say we need one woman on our board. why? it is like i need a green plant on the table. vonnie: it feels like the conversation waxes and wanes. how are we still having this conversation because it needs to -- it still needs to be had. how do you maintain that momentum? >> the company is like a family. it is like the world. i think that women have a very important role at home, in the world and i always say when there is a tragedy, somehow it is always the women who take over.

i think women should be in charge without the tragedy. i think it is important. -- it alsomothers matters that the women own it. it is important that the women feel strong and that they own their strength and that the demand -- they demand equality and demand to be equal. it does not seem like it is something so crazy. vonnie: you did recently present the dds award. , whyus all how this began you felt the need for it. award iward is an started nine years ago. it was always the second night of the women in the world conference. it is really to give money and exposure to extraordinary women who have the courage to fight,

the strength to survive and the leadership to inspire. women -- two to women who provide their voices. woman -- we had these incredible women. we also gave a big lifetime award to -- it is an intimate affair that happens in a room in the u.n. it is an intimate affair of 300 people but it is very moving and substantial. after nine years, it is a family where we continue to be involved with these women and help them and help them network. vonnie: you mentioned some amazing an extraordinary women there and there are so many

examples. how do we get from spotlighting the individual examples to a place where this is just normal, that every second ceo is a woman. >> this -- i had a woman president. i think that every woman can help and every man can help. one of the things that i say is as women, we are mothers, so it is very important how we raise our sons because how we raise our sons is very important to the future. we should be conscious of that and conscious of that at every moment of our lives. vonnie: our thanks to the renowned fashion designer. this is bloomberg.

caroline: let's have a look at the data before we go. currently seeing stoxx 600 holding on to its gains. the oil markets continue to rally around the u.s. moving out of that deal with iran. we are up more than a percentage point on the ftse 100. the dax is up 2/10 of 1%. it really is energy markets leading us higher. the leisureower is sector and travel. this is bloomberg. ♪

mark: 11:00 a.m. in new york, 2:00 p.m. in hong kong. 30 minutes left in the european trading day. i'm mark barton. vonnie: and i'm vonnie quinn.

this is the european close on bloomberg markets. ♪ mark: here are the top stories we are covering from the bloomberg and around the world. the iran deal fallout. president trump's decision is affecting companies in the u.s., europe, and around the world. and deutsche bank considers sweeping cuts that could result in the firm losing 20% of its u.s. staff. and burberry sings the blues. a major shares after investor sell his stake. here is what is happening in european equities. we are 30 minutes away from the end of the session. what thentemplating trump decision in hereon means thecountries across european spectrum. stocks are rising for the fourth day, the best day since march the 12th, gh