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The European Central Bank may have to respond to the economic challenges arising from the conflict in the Middle East, according to Governing Council members Joachim Nagel and Francois Villeroy de Galhau, who spoke jointly to BTV's Oliver Crook on the sidelines of the G7 Finance Ministers meeting in Paris on Tuesday.

Kim Crawford, global fixed income portfolio manager at JPMorgan Asset Management, and Laura Cooper, global investment strategist and macro credit head at Nuveen, discuss the selloff in global bond markets as a fragile ceasefire between the US and Iran extends past 40 days and a deal to reopen the Strait of Hormuz remains elusive. They speak on Bloomberg Television.

Fabio Bassi, head of cross-asset strategy at JPMorgan, discusses market sentiment as global equities rose on optimism that the US and Iran were nearing a deal. "The AI upstream theme is a critical diver of the dynamic of the equity market," Bassi tells Bloomberg Television. He adds that despite the oil supply shock in response to the situation in the Middle East, the message from earnings is still "positive."

Geoffrey Yu, senior market strategist at BNY, discusses the outlook for the energy sector and how it could impact Thursday's interest-rate decision by the European Central Bank. "The last thing that the ECB should be thinking about, I think, is tightening rates," he tells Bloomberg Television.

Simon Dangoor, deputy CIO of fixed income at Goldman Sachs Asset Management, looks ahead to this week's interest-rate decisions, saying that a reopening of the Strait of Hormuz will present policymakers with a markedly different set of risks by the time they next meet in June. Dangoor speaks on Bloomberg Television.

Ifo President Clemens Fuest says Germany could be "at the beginning of a stagflationary shock" after the institute's expectations index dropped to 83.3 in April from a revised 85.9 the previous month the lowest level since August 2023. He speaks on Bloomberg Television.

Christian Mueller-Glissmann, head of asset allocation research at Goldman Sachs, discusses the equities rally, the impact of US-Iran de-escalation on sentiment, and whether the markets recovery is sustainable. "I think we need central banks to shift back to a bit to where we were before," Mueller-Glissmann tells Bloomberg Television. "We need the rates relief to come in."

James Turner, BlackRock global fixed income EMEA head, discusses the European economy and bond space in light of the current geopolitical situation in the Middle East and its impact on supply chains. "We have to remember that it's very much a supply-side shock," Turner tells Bloomberg Television. He also talks about the European Central Bank and says it is unlikely the ECB will deliver three rate hikes in 2026. "I don't think, for example, we're going to see three rate rises from the ECB this year. I am not even sure we'll see two."

Commerzbank CEO Bettina Orlopp says that she has had some talks with UniCredit SpA about a deal after the Italian bank announced a takeover bid for the German lender. She speaks with Isabelle Lee on "Bloomberg The Close."

European Central Bank President Christine Lagarde says the euro-zone economy has moved away from the central bank's Iran war base case, though not enough to currently warrant leaning toward raising interest rates. She speaks with Bloomberg's Francine Lacqua at the IMF's spring meetings.