Bloomberg Daybreak Weekend: Jobs, EU Stocks, Solar, IMF

to the US. I'm Joe Matthew in Washington. The IMF meets in the nation's capital. Get a take on what you expect. That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg eleven Free O New York, Bloomberg ninety nine one, Washington, DC, Bloomberg one O six one, Boston, Bloomberg nine sixty, San Francisco, DAB Digital Radio London, Sirius XM one nineteen and around the world on Bloomberg Radio dot com and via the Bloomberg Business Apphi, everybody, I'm on Tucker, and let's start

today's program with the feder reserved and the economy. We're going to be getting a report on the consumer prices and also getting the minutes from the feds last FOEMC meeting. Joining me to raise the curtain on all this, Bloomberg Global Economic and Policy Editor Michael McKee. As always, Michael, thank you very much for being with us. What should we be looking for? You've told us we're all data dependent.

It's going to be interesting to see if the data the consumer pricing decks actually moves the needle for anyone at the FED as far as their May third meeting, the next meeting that's coming up. At their last meeting, they put out a new summary of Economic Projections and dot Plott and basically said we still think that rates need to go above five percent. Five percent is the top of the range right now. So they seem pretty

married to that idea. It would probably take a lot of change in the CPI for them to back away from, but we are expecting a bit of a decline on the headline rate that would take us well, actually it's more than a bit, because you go from six percent to five point two percent. A lot of that is base effects, but it's it's going to be a major headline number. Okay, remind everybody what they're aiming for a rate of inflation of two percent, and then we're still

a long way. Yeah. Can they at some point just say, okay, maybe it's three percent? Uh No. And the reason they don't want to do that is because then nobody will believe them that it's three percent. They'll think, well, oh, they'll have a credibility. You could change it to four percent. But the headline that will grab people's attention is obviously a big drop in the year over year number if

it goes to five point two percent. But according to economists surveyed by Bloomberg, we're going to see core inflation rise to five point six percent from five point five. So core inflation that you've got to remind everybody it's the weekend and you know we're preparing to eat food and stuff like that. Core inflation is inflation that really matters because the other stuff like gasoline and fuel energy qualits that goes up and down, all goes up and down.

And obviously we saw in the last week big movements in oil prices after OPEC announced a production cut, and you know, FED officials tend to look through those things because they do go up and down. But the average American does not because they have to fill their tank. So if we do see gasoline prices going up, I mean, that's that's going to be a worry for the FED because they can't do anything about it. You can raise interest rates all you want, it isn't going to produce

more and gasoline. So they do look at the core, and they're looking at core services without housing. They do x housing because we know that housing has taken a long time to incorporate the idea of lower rents. Rent increases have been fading, but takes about a year to get into the data. So that's going to start hitting.

And they're they're looking at services because services is the biggest part of the economy and it includes things like you know, going out the restaurant, the waiter or the wais bars, stuff, and a lot of people in you know, accounting or radio. Things like that would be service industry jobs, um and for many of those categories it's still been

hard to find workers. We've seen strong hiring and labor costs are the biggest part of a service industry budgets Okay, So if they can't find people, they've got to attract people by paying more and that's and that's inflation concern. So the FED is going to be looking at that. They'll be looking at all this data for signs of a slowdown. They want to see that they're making incremental progress. Okay, they're going to be looking for signs of a slowdown there.

But I'm told that's stickier inflation. Whether they're they're two kinds of inflation, well, many kinds, but one that would one responds to FED tightening. Like we know that people buy fewer cars when infrastrates go up, and housing prices generally start to flatten out, if not go down, when mortgage rates go up. But there are other things that

are called sticky prices that take longer to adjust. And anything to do with labor takes longer to adjust because it's you don't basically go into your office and say, well, we need to save money, so we're going to cut your salary. I mean you're either going to be laying off workers, which we haven't really seen any huge numbers yet, or you know you're going to have to find other places to get those savings from. Yeah, we do see

those headlines crossing almost on a daily basis. This big company or that big company that you've heard of cutting workers that you're telling me hasn't filtered through or really is enough to make a difference. A lot of people who are being laid off are either in jobs that are in demand. You get laid off at one tech company,

you might get hired at another reasonably quickly. Or people are getting severance, and when you get severance, basically you're not eligible for jobless benefits until your severance runs out. And so you're seeing people who may move into the doubless claims area and show up as unemployed still off those books. So it's been hard to tell the impact

of all these layoff announcements. Also the layoff announcements, if you're laying off a lot of people, there's a law that says you have to give them sixty days notice, and also it may take you longer than that to do your layoffs. So the general view of economists is we're going to see the impact of all this later in the year. Okay, I'll remind everybody that the to Reserve, the Central Bank of the United States, has a couple

of mandates. One is price stability, keeping the rate of inflation at you know, something reasonable like you said two percent and also full employment, but those two things are kind of contradictory. It sounds like you just told me, Well, there are times when they're in opposition in the sense that to bring inflation down, the FED has to slow the economy, and to slow the economy, the FED has to basically put up with the idea that you're going

to see people laid off and unemployment is going to rise. Now, their thought at the moment is that right now, because labor is so tight, that we are below what the normal level of unemployment is because there are always people switching jobs in between jobs, and there are people that come out of college and they haven't found a job yet, and they think that number is around to four and a half percent, and we're at three point six percent.

So at this point they're thinking they have some room that won't bring the economy down if that unemployment rate rises. So are things different this time because we had the pandemic. Everything's different this time in the sense that we're not sure how everybody's going to react, and all of the dynamics that normally come into play in a recessionary time haven't this time. We don't have an inventory overhang or

something like that. What we have is is consumers who are still spending because they got a lot of money from the government during the pandemic, and there was nothing basically wrong with the economy going into the pandemic. So it's hard to know exactly what the cure is going to be for all this. And the FED is doing its best to try to bring inflation down, but as long as people and the economy feels good, it's harder to do and the models don't work because we've not

had a pandemic like this since nineteen eighteen. All Right, you've been speaking to the people at the Central Bank who make all these decisions. What have the FED officials been telling you that could possibly move the needle. Well, the needle is an interesting question, because the needle right now points on Wall Street to four rate cuts or three to four rate cuts this year because they think that we're going to go into recession and inflation is going to fall fast and the FED is going to

have to rescue the economy. Fed officials don't think that at all. They've been repeating the mantra to me all week that they need to keep interest rates high and we spoke with Susan Collins and of Boston, and Jim Bullard of Saint Louis and Lorettamester of Cleveland. They all make the case that we need to raise rates at least one more time and then leave them there for the rest of the year. So it's going to set

up a clash between the markets and the Fed. We will probably see rates rise at their next meeting May third, and then if the Fed wants to go on hold, the market's going to be pushing them to start cutting. And we're going to be all watching the data for

signs of who's right. Do they know something we don't? Well, I not know something, but they're probably focused on things a lot more than we are in terms of what are the possibilities for this economy, because, as I said, the models don't work, so they're trying to figure out what's the most likely path for the economy. They will tell you, and it makes no sense that they will

react to whatever happens in the economy. But at the moment, from what they can see, they need to leave interest rates up high until they get a much clearer signal that inflation is going to continue falling. Mike, Thanks a lot. That's always a pleasure. Bloomberg's Global Economics and Policy editor Michael McKee just ahead on Bloomberg Daybreak weekend, which Europeans you should have your eye on this new quarter? And

why John Tucker, This is Bob. This is Bloomberg Daybreak weekend, our global look at healthy time stories for investors in the coming week. I'm John Tucker in New York. Up later in the program, Why Chinese solar panel makers think the industry is about to shine the first European stocks had their worst March since twenty twenty. A lot of stocks and key valuations to watch in the second quarter for more, or lets into London and bring in Bloomberg

Daybreak Europe anchor Caroline Hepger. John, defensive and growth stocks have benefited from my rotation in European equities. Recently, recession warriors have resurfaced. For more, I'm joined by Bloomberg Intelligence. Is Tim craighead. Tim, great to have you on the program. So you've picked out then for the quarter to come, ten stocks to watch, and a number are European companies, So this really piqued my interest. One is a bank,

but that's a bit surprising BBVA. Yeah, so BBBA, you would think it's a little crazy picking a bank in the midst of a banking crisis or a perceived banking crisis. But this is in line with a number of the ten ideas where the market seems to be focused on the wrong thing. And with BBBA, the focus is on Turkey, which you know it has had a big exposure to over time, but it's only down to seven percent or so of the business. We think that they're well funded

on that front, and it's it's overblown. At the same time, they've got a big Mexican business where loan growth is quite robust. They've got clearly a big Spanish business that is benefiting from higher rates driving higher net interest margins and profitability. Bottom line is we think they're going to be positively surprising on earnings and in ongoing other fundamental metrics. Okay,

so that on BBVA. Eupe is also really trying to balance out the huge US inflation reduction acts thinking about the energy transition of course, and so you pick vest us is that the reason indeed that is absolutely behind it. Both Europeans spending on energy transition as well as the US and you take those two combined and we think there is shall we say, a tailwind sorry, that that

is behind vest Us. And yet if you look at consensus expectations, order growth and revenue growth aren't particularly robust. There's been a bit of a lull in the wind and we think it will pick up and there's positive surprises in top line and earnings growth going ahead. Okay. And then just lastly, out of these three European businesses that were focused on this, cap Gemini indeed, so I think again, similar to the BBBA, what's the market focused on. Well,

in technology, it's there's a tech downturn. You know, there's been pressure on semiconductors, there's thoughts of cutbacks across a number of elements of technology. There's concerned about economic risk. But companies are strategically transforming into things like cloud computing

and digitization. That's across all industries and it's strategic. It has to happen, and cap Gemini is one of those IT service companies that's very exposed to these strategic transformations, not so much the cyclical, more cyclical implementation of sort of basic technology. And we think again the market's underestimating the opportunity here for cap Gemini. Yeah, and I mean when you look at tech it's flipped from being losses lagot in Europe to actually being the kind of market

leader in twenty twenty three. We don't think of there being many tech, big tech companies in the UK, but interesting that you put cap Gemini in that kind of basket. So is tech in Europe something to watch in the next quarter? Yeah, Well, I think there are a couple of parts to this UM and it's a very different story, I would say than say tech broadly if you think

about it from a US perspective. You know, in Europe we've got essentially cap Gemini and SAP and software and services, and you've got some big semiconductor companies ASML and Finnian

st Micro. The semi has a semi business has its own cyclicality to it in Finnian and st Micro are very well positioned into China UM thinking about what's going on with with you know, the tipification of autos and everything else ASNL is absolutely the core of next generation semiconductor manufacturing up you have to have it, and all of this we think has fed into this last year's

story of higher interest rates, putting pressure on multiples. This year, there's now increasing talk about FED and ECB pivot at some point that brings the pressure off on multiples and these things can move back up. So that's an element of that exposure to Europe that's positive. In the US, it's far different. It's more Internet, very high multiple stocks, and yes, those two have had a reprieve on the

multiple pressure because the change in FED thoughts. Frankly, we're a bit more suspect on how quickly the fed's going to pivot. And it's a different business from the standpoint of the Internet oriented businesses in the US, so more interested in Europe, maybe still a little less interested in the US. Well, I wanted to ask you that why do you think that sentiment has tilted more towards you if it does seem that way since the start of the year, that there's a bit more favorability versus for

European shares and perhaps for the US. Is that because recession seems more imminent in the US, or how would you read it? It's it's it's it's an interesting question. Part of it is valuation, there's no doubt. Part of it is that the idea of where we are at from an economic cycle. Last year, there was a lot of concern about energy. There was a lot of concern about Russia impact on Ukraine right at our doorsteps here in Europe. And not that that's gone away yet, clearly

it hasn't. But we suffered so much on energy last year that is now cycling through with lower energy prices, notwithstanding OPEC's recent announcement. But that I think that's a little bit of yesterday's story. In the US, I think there is still ongoing concern of how much do we see wages play through? Where is the economy going, and it creates a different cycle. Yeah, absolutely so just less maybe less bad news than we had for Europe last year.

Having said that, stocks do look now in Europe actually pretty close to a lot of year end targets. So I guess my other question is do we just end up treading water in yet? I think we could be having this conversation in another three months and we could have gone up five to ten percent in down five to ten percent between now and then. Okay, our last word for luxury stocks, because they're so dominant in terms of the European market as well, I think you can't

avoid talking about them. And also just because but how now has now joined this tiny handful of billionaires worth more than two hundred billion US dollars in the last few days. I mean, the luxury space in Europe still seems to be a big, big strength in look. I think this plays into China reopening. You know, go back to those ten ideas. Two of the Asian ideas where to want belabor here are China reopening stories and I

think luxury goods here is as well. And you know, if you think about big themes of this year, you've got the interest rate cycle, You've got the economic cycle, you have geopolitics between Russia, Ukraine, now the US with their own internal politics China US tensions. But a big item that's just sort of unadulterated positive is China opening

back up from an economic perspective. And part of that is unleashing consumer spending and the Chinese, whether it's domestically or when they travel by luxury and you know, the European luxury goods names are in the sweet spot of that cycle. Okay, so we end on a positive note then thinking about European stocks for this quarter. Thank you so much Tim for being with us Spinbag Intelligences Directive Research.

Tim Craighead with a few of his ideas around the stocks to watch here in Europe over the next few weeks this quarter. I'm Caroline Heppgeher in London. You can catch us every weekday morning for Bloomberg Daybreak Europe. That's beginning six am in London, one am on Wall Street. John, Thanks Caroline. Just ahead on Bloomberg Daybreak weekend, so major activity of the Chinese solar panel industry. I'm John Tucker. This is Bloomberg broadcasting live from the Bloomberg Interactive Broker

Studio in New York. Bloomberg eleven FREEO to Washington, DC, Bloomberg ninety nine one to Boston, Bloomberg one O six one to San Francisco, Bloomberg nine sixty to the country, Sirius XM Channel one nineteen to London DAB Digital Radio, and around the globe the Bloomberg Business app and Bloomberg Radio dot Com. This is Bloomberg Daybreak Weekend, John Tucker in New York with your globe look ahead of the

top stories for investors in the coming week. Just a hit on Bloomberg Daybreak weekend a look at why the International Monetary Fund meeting is being so closely watched. But first, after the US passed a landmark climate bill that supports local clean energy manufacturing, some of China's top solar panel makers are rushing to tap into the industry. For more on what's happening, let's go to Bloomberg Daybreak Asia host

Doug Krisner John. It's not just solar panel makers. Several of China's leading renewable firms are joining the rush to open factories in the US. As an example, the Chinese company that makes the world's largest wind turbine, Ming Young's Smart Energy Group, is exploring whether to establish production and research facilities here in the US. Now. The driver of this movement is last year's Inflation Reduction Act, championed by

the Biden administration. It includes three hundred and seventy four billion dollars in new climate related spending, and it is drawn, needless to say, the attention of China's world leading renewables companies. Let's take it closer to look now with Bloomberg's Dan Murtaugh. He is a Bloomberg Asia Energy reporter. Dan joins from our studios in Beijing. There's a lot to talk about. It seems a little ironic right out of the gate that the Inflation Reduction Act really has a goal of

cultivating a boom for US clean tech. But at this point China seems to be the world's number one supplier of clean technology. Let me begin by asking where Beijing may be in allowing these companies to develop some of their operations here in the US. It's a good question. There's obviously been a lot of tension between Beijing and

Washington in recent years. But at the same time, Beijing once it's clean tech energy industries to grow, they see them as one of their proudest achievements, developing these massive supply chains that can produce power generation to sort of

wean the world off of car. So at the same time that that Beijing is nervous about Washington's intentions, they want to see this industry grow and prosper, and so you know that they're in constant communications with the heads of these massive companies about you know, what opportunities are there to to go overseas, you know what technology they can bring with them, you know, to how to sort of maintain their China's role as a dominant supplier of

this clean tech industry while also allowing the firms to sort of broaden and diversify their own supply chains. Yeah, talk about domination when it comes to solar panels. I think we can agree that China really dominates production globally, but there have been cases where that production has been stymied from shipping to the US because of a series of trade disputes. There have also been there have also

been allegations of human rights abuses. Is it necessary that the US has to do business with China when it comes to solar panels? How long does it take to build out a man manufacturing process for these devices? If you were going to just on the technicalities of it, it would probably be about a year and a half to two years to build a full supply chain. You know, most of these factories Chinese companies get up and running

when about nine months UM. The key sort of raw material for all of this an ultra refined form of silicon known as polysilicon. Those plants take about eighteen months. So if you know you had unlimited resources and were able to sort and you know, access to the best technology, you could put a supply chain together relatively quickly, but of course these are very complicated supply chains. There's there's

multiple steps that go into it. You take sand, you heat it into into silicon, You refine it with with nasty chemicals into the polysilicon you melted into these like long bricks, and then slice those into ultra thin squares that you then wire up into solar cells that you then paste together into into the solar panels you see, you know, out in these giant desert farms and on your rooftops. And you need a different factory for each

one of those steps. And you know what China was excellent at is in putting it together in industrial policy that sort of made sure that those steps all went together so that there was supply and demand matched. And so what the US is going to struggle with is, you know how if you build a plant to sort of slice those squares, are you sure you're going to get their raw materials to be able to build them and stuff like that. And so that's going to be the trick for the US to build a supply chain

that will be able to compete with China. I mentioned wind turbine technology that's another part of this story, where is China in wind turbine production. China is the world's leader now if you look Bloomberg and you have just reported it's twenty twenty two production numbers and Goldwind, China's biggest company, overtook vest Us to be the world's biggest wind turbine manufacturer last year for the first time ever.

For the top seven turbine manufacturers are in China. And up until recently, you know, China as a very big domestic wind market, and so these companies just sort of built turbines for Chinese demand and didn't really mess with the outside world. And you know, invest us in ge and Siemens, they were seen as the sort of world technology leaders. But now ming Yang has has launched the world's biggest offshore wind turbine. Uh, you know, the quality

about gap has has narrowed. And now these Chinese companies are looking to take market share away from the European and US giants. So whether it's solar panels or wind turbines, are they looking to really penetrate beyond the US you mentioned, you know, Europe and other parts of Asia. I mean, it sounds to me like it's a pretty aggressive strategy of moving offshore. Absolutely, you know, you know these industries.

Not only is there room for these Chinese companies to grow and become bigger and bigger, but you know, China sees this as also sort of you know, the maybe the next step in their Belt and Road initiative or their global development initiative to be able to bring infrastructure and energy to the world and in this time, as opposed to the last Belton Road, which was quite coal and oil intensive, this time would be a little bit cleaner. So when I think of solar panels, when I think

of weren't wind turbines, I think of storage technology. Whereas China right now in terms of battery technology, and is this also an area that they are looking to export. Yeah, China once again leads the world in battery manufacturing. It leads the world in lithium processing to create the battery materials,

and it's definitely looking to expand globally. Catl the biggest battery maker here in China, has been involved in this tie up with Ford to make lithium iron phosphate batteries, which are a sort of cheaper, less energy intensive but also less sort of environmentally problematic technology, and they want to build a huge battery factory in the US, and that's obviously created some political stir. Virginia's governor sort of nixed a deal earlier because he thought it was too

generous to the Chinese side. Or look, they're looking into Michigan right now. But yeah, the battery companies are also looking to sort of diversify their manufacturing bases around the world and to go back to the Inflation Reduction Act and the money that's at stake right now. There are a number of people in Congress that are a little concerned here that essentially the US would be giving support

to Chinese companies. Is it possible to say that we could be at a point where there's so much pushback from members of Congress when it comes to allowing these Chinese companies to do business in the United States that whatever ambitions Beijing may have at the moment, those become stymied. You know, that's the big fear for these Chinese companies

is that, you know, the IRA has passed. Frankly, all companies anywhere in the world are still trying to figure out the Tea Crossings and I Dottings of the IRA,

But the Chinese companies are looking at it. Their fear is that they come to America, they invest capital, they bring their own technology, and then you know, you have someone like Marco Rubio, who's voiced opposition to Chinese clean energy firms before, pushed to to sort of change the rules midway through to make sure Chinese companies can't benefit so that they're they're worried about the rug being pulled

out from under them. You know, right now there's no indication that that will happen, but that's the sort of constant fear that they're dealing with. But you know, I think about this in in you know, being here in China. A lot of the way that China has developed these industries is by letting foreign companies come in and build stuff here, benefiting these foreign companies. My dad twenty five years ago worked for General Motors when they opened their

first car plant in Shanghai. General Motors benefited hugely in the first several years of that deal. But you know, the they General Motors hired locally. They taught you know, Chinese workers and executives how to run a world class car operation. And now you know, you look at China's car industry, and it's right up there, you know, neck and neck with the US in terms of one of the biggest in the world. Dan, thank you so much for spending time to chat with us. Dan Mrtile there,

Bloomberg Asia Energy Reporter joining from Beijing. I'm Bug Prisoner. You can join Brian Curtis and myself weekdays for Bloomberg Daybreak Asia, beginning at six am in Hong Kong, six pm on Wall Street. John Doug thanks very much. Just ahead on Bloomberg Daybreak weekend, a sneak peak at the IMF meeting in Washington. I'm John Tucker. This is Bloomberg. This is Bloomberg Daybreak weekend, our global look ahead of the top stories for investors in the coming week. I'm

John Tucker in New York. Here come the big annual meetings or the International Monetary Fund and the World Bank. And for a look at why we're watching these meetings especially closely, let's head to our Bloomberg ninety nine one newsroom in Washington and sound on host Joe Matthew. John.

The IMF meets in Washington this weekend, while the cherry blossoms are in bloom the forecast is not great, as the IMF warrens, it's five year global growth outlook is now at its weakest since nineteen ninety, and it's thanks to a confluence of factors. As Managing Director Chrystallina Gorgieva described an interview with Bloomberg's Tom King, countries that we

would expect to add to growth from TM markets. Low income countries are in particularly difficult place because they have been innocent bystanders, repetitive shocks that COVID Russia's invasion, the fact that the word economy as a whole is now less able to support the weakest members. Let's talk about it now with Bloomberg's US economic policies are How would you like that business card? Ramsey, Al Racabby, It's great

to see Ramsey, Thanks for joining us. Do these meetings begin with real concerns about geopolitics when you cansider the weakest forecasts since nineteen ninety, that's right, Joe. The IMF's managing director, Christelina Goorjeva, on Thursday came out with a little intro speech heading into the meetings, talking about how their outlook for the next five years is the weakest

since nineteen ninety. One of the things they mentioned at the top was a global fragmentation, which is sort of a thinly veiled comment about US and China at tensions

and worries around economic decoupling between the two. That comes on top of UH these this global tightening and interest rates that has been trying to fight inflation, and so the impacts that that that's saying, that's a stronger dollar which has made debt issues much more intense, and emerging markets, and as we saw quite recently, it's set off some financial stability issues with banking banking collapses in the US

and in Europe. That is sort of sending fears of of of how a financial crisis might bleed into an economic crisis. Give us a sense of what's going to happen to Washington next week. It's gonna be an absolute festival of policymakers and finance ministers and central banks. Despite the paul cast by the Sport, Yeah it's not it's not looking good, but at least the weather's nice. Everyone's everyone's showing up for the for the IMF hosted spring meetings.

At the same time, there'll be a G twenty finance ministers meeting within that. So the city is going to be locked down with with parties shuttling back and forth, and somehow you have to cover it all. There's going to be you know, a lot of a lot of motorcades and a lot of closed streets and then a lot of I'm sure cocktail parties with I believe all of the smart folks. Yeah, well they're being I mean beyond the photo ops and the cocktail parties, will there

be progress? I suspect there's gonna be Uh, there's gonna be a theme and a mission statement. But what happens after that, Well, one of the there's there's two there's two main things that would come out of something like this. Well, there's one main thing that would come out something like this would be at the G twenty these communications where from where these you know, these guardians of the global economy, you get together and say these are the challenges that

we face and the way forward. Russia's invasion of Ukraine has really thrown a wrench into that, and the last couple times they've gotten together, the best they can do is say that some of us disagree on what's going on in the world and what the causes of it are, because you know, someone like the IMF or the US Rategy Department, Jenny Yellen and even Biden would say Russia's invasion of Ukraine is the biggest threat and the biggest impact furable economy. So there will be some sort of

debate again around that. Hoping for progress along with big thoughts next week here in Washington, DC. Ramsey, I'll ricaby many thanks for talking with us today on bloom Thanks Jo, John, back to you, Helly, Thank you Joe. That was Bloomberg's sound on host Joe Matthew reporting from our Bloomberg ninety nine one news room at Washington, and you can hear Joe on sound on weekdays one to three pm right

here on Bloomberg Radio. Also, stay tuned for a special live coverage of key movers and shakers at the IMF and World Bank meetings this coming week. And that does it for this edition of Bloomberg Daybreak Weekend. Join us and Monday morning at five am Wall Street Time for the latest on markets overseas and the news you need to start your day. I'm John Tucker. Stay with us top stories and global business headlines coming up. Right now,