south african president jacob zuma has fired his finance minister and eight others. the rand plunges. and more momentum for china. official factory thee climbed for highest level in five years.

south african president jacob zuma has fired his finance minister and eight others. the rand plunges. and more momentum for china. official factory thee climbed for highest level in five years. a warm welcome to "bloomberg daybreak." i am anna edwards. let's describe what has been called the night of the long knives in the south african political despair -- sphere. dhe devaluation of the ran coming through as president zuma replaces his finance minister. gordon is out, replaced by somebody with little financial experience. the former finance minister, speaking on the phone to bloomberg in the last few minutes, saying there are a range of characters troubling the treasury. andion between him and zuma part of the anc. also saying south africa's treasury has a strong team of professionals. we will discuss this through the program. certainly, the new minister does not seem to have from the cv to have a great deal of experience. anc, could split. the presidency could be called into question. a fairly popular emerging market destination. let's come back to the south africa

reporter: after the shocking dismissal of his finance minister, jacob zuma is trying to put a positive spin on a cabinet reshuffle that is threatening to plunge his party into chaos. >> i have e decided to make changes to the national executive in order to improve efficiency and effectiveness. reporter: pravin gordhan's sacking is part of a broader cabinet shakeup that will replace 10 of the country's 35 ministers. the sweeping overhaul has triggered a crisis for south africa's ruling party, the party that has governed since the end of apartheid. gordon was widely respected as a finance minister, pledging to fight corruption, he enjoyed support among many in his party, as well as ordinary south africans. on friday, his supporters gathered outside the national treasury building to protest. gordon was defiant after his dismissal. he said he and his deputy had nothing to hide. >> this is the so-called intelligence report that said , amongst others, the two of us and the director general are involved in this massive conspiracy to undermine the economy of this country. and if you read this,

it may therefore hasten the departure of jacob zuma. i guess you do not want to push too far one way, when suddenly it could swing back pretty quickly on the back of that. tok: i think it is very hard place that outcome right now. if that did happen, it will take some time. there will be a lot of negative headlines in the interim. i do not think you can suddenly by the dip on south african assets on the assumption we get a better government afterward. xina has made a step because he believes he can carry it off. this most likely will strengthen his hand, at least in the short term, even if it looks negative for the country. it is a tale risk that will be removed with the outcome. there is not clarity about what even if hefter zuma does get removed. that is a tale risk. it is fun to bear in mind, but that is for a few weeks down the line, if at all. saying to us earlier, the reaction of serial -- cyril ramaphosa will be pivotal. one reason the rand has done well of late -- it has benefited from the kerry. the 8% yield on the 10 year has

the feud between south african president jacob zuma and finance minister continues. expectations ended for the first rate hike in years. we have the economic publications and the market reaction. >> this dispute between the president, the finance minister has erupted again. where we go from here is interesting. of an attended a funeral anti-apartheid campaigner, to which he was applauded, and applauded calls for zuma to resign. you get a sense that the lines of battle have been drawn more starkly than in past episodes. it looks like it is reaching some kind of conclusion. the market won't like that, clearly, but after that it depends where south africa goes. >> you mentioned that battle lines have been drawn. this is a spat we have been covering for months now. are there other bodies that get to have a say, or can he outrightly dismiss his finance minister? >> key can do what he wants, but if you does, other finance ministers or part of the civil service can throw in their hat as well and create a split in the anc heading toward the december conference. that is going

zuma. the move has fuelled concerns there may be a cabinet reshuffle, which analysts say has unnerved investors, who see pravin gordhan as an emblem of stability. the eu's health commissioner says brazil needs to restore trust in its meat exports after being hit by a scandal over rotten produce. a number of countries have slapped restrictions on brazilian imports. the country has seen its daily meat exports plunge by 19%. the company that built a controversial pipeline under native american tribal land says it is now full of oil and will be in operation soon. construction of the stretch of pipeline in north dakota was delayed by protests and legal action. it was completed after president trump signed an executive order within days of taking office in january. the uk's brexit minister has downplayed suggestions the country will pay an bill of around $60 billion dollars for leaving the eu. david davis says while britain will meet its international obligations, he doesn't think that sort of mo

to jacob zuma's reasons for firing gordhan. do you think there will be such an appeal that the president will have to go? i would be skeptical of this happening at this point, but it is a political gamble for jacob zuma. we will see if there's pushback within the party. gordhan was very popular with investors, very credible. as a result, south africa will have to sacrifice at least one rating, maybe 2. when push comes to shove, agencies act. might be a of itself wake-up call to local politicians and policymakers. tom: help me with the stereotypes of south africa. maybe they know something about nelson mandela that they thought in a pbs special. help me with the state of capitalism in south africa. is it for real, or will it go down in flames? >> this is a country with a credible financial system and financial bank. north of $300 billion, very reliant on metals and mining. and we think about the economic outlook, the growth is very weak. of maybe lower post-removal gordhan. it does not force us to question their stability, it is

jacob zuma said to tell south african communists he plans to fire gordon. this is in the wake of the fall we saw in currency. as he summons back his diplomat. this has been a point of volatility, the appointment and firing of finance ministers. atus: this is where we are 12.99. this was one of the best performing emergent -- emerging-market currencies. almost vertiginous rise that we are seeing. that in terms of the percentage move on the day, we have lost almost 2% value in the rand. we have seen this move, we have not seen a move like this since the start of march. we will keep an eye on that. anna: the rand is dropping. it is being reported to us at the moment. we will wait for confirmation. back to where we were. we were talking about the u.s. rates, the fed, that whole conversation. we had some great clips of what policymakers are thinking of. who joinedto wei lee us in london. thank you for waiting as we covered the south african story. let's talk about the u.s. rates trajectory. how much are you watching that in terms of the -- how much do you think

guy: can i drawn direct line between jacob zuma firing gordhan and a rate downgrade? fiscal and economic and monetary signals in the last few months have been extremely positive. the institutional stability has been something the rating agencies have put a lot of score on to the extent that institutional stability is upset, one can expect the rating agencies to go negative and give the negative outlook. hiring of a highly competent and well-respected finance minister may put our ratings in question. there is a direct correlation. that, asset prices will be under pressure as you have seen in the last 24 hours. against the backdrop of asset prices having done well in the past year and general economic growth coming back. it would be a pity if the president was to undertake a change and catalyze this confrontation in a manner that would upset the stability. how much weakness -- we are looking at a chart right now that south african rand hits a -- it is a three-month chart, if you drag it to a 12 month chart, last year i can get 17 rand for one u.s. dollar, after this mov

are: president jacob zuma ordering -- the announcement sparking concerns of a political shakeup in the country. thanks for joining us. give us a timeline. what has been going on today? minister isce scheduled to have left south africa yesterday which she did do. saying -- they -- it have been notified by the theydent of south africa should immediately for turns to the country and that is for an urgent matter. what that matter is we are not sure. the spokesperson has not given a reasons as well as to why there needs to be a return by the finance minister. andave seen that happen now saying he is scheduled to return and will make that returned and makingevening sure he is back in the country by tomorrow morning. tensions have been high. is it possible that gore dan -- his job could be on the line here? it is certainly a murmur around investors. thatmay just be the story breaks the camel's back. it is something that has been spoken for quite a long time. ever since the minister was ,rought back into this position we saw the finance minister surprisingly withdrawn as well. it is deftly mur

palestinian officials have condemned the new plan and called south africa's president jacob zuma has sacked his finance minister, pravin gordhan, in a cabinet reshuffle. it comes after days of speculation that rocked the country's financial markets. despite many senior officials opposing mr gordhan‘s removal, he's been replaced with the man who was home affairs minister, malusi gigaba. there's been growing criticism of venezuela's president maduro after he allowed the supreme court to take over responsibility for law—making from the opposition—controlled national assembly on wednesday. the head of the organisation of american states said the decision had dealt the final blow to democracy in the country. part of a motorway in atlanta has collapsed after a major fire underneath an overpass. local reports say police believe it was caused by an electrical wire. so far, there are no reports of casualties. people are being advised to avoid the area. a ferry that was raised from the bottom of the sea in south korea last week is being towed to port, where it will be searched for the re

south african leader, jacob zuma, has been criticised after an official memorial service for anti— apartheid activist was indelibly postponed. this came after calls for president zuma to step down this week. a year after the activist wrote a letter saying he should quit. he was tried and jailed alongside nelson mandela and jailed alongside nelson mandela and the 1960s. when the british prime minister, theresa may, triggered the uk's the budget from the european union, two days ago, she stressed that britain was keen ona she stressed that britain was keen on a trade deal to protect its exports from heavy carus. today, the european union has responded. in d raft european union has responded. in draft guidelines the negotiating brexit, the eu ruled out trade talks before outstanding issues were clean out. speaking older, the president of the union council, donald tusk, made citizens writes the top priority. —— rights. the chiefs of eu institutions are usually little known outside the brussels bubble. but brexit has changed all that. this is my first divorce... donald tusk, president of the

south africa's brand plunged after jacob zuma sacked his finance minister. looking at the european markets, we should be able to see, i can tell you they are a bit down, some figures coming out in europe today, fourth—quarter uk gdp figures, the last revision for those out, we will be waiting to see those, european market waiting to hear, like the rest of us, what donald tusk has to say. dom was laughing at you! good to see you. we have just finished the third period, and what is stonking period it was. todayis it was. today is the last day of the quarter, global stock markets will be up by about 6%, the us stock market, about half of the global total, is up just a little market, about half of the global total, is upjust a little bit market, about half of the global total, is up just a little bit less than that, but it has been a pretty good quarter, it has ended with people being a bit worried about delivery in america but fundamentally things are growing pretty nicely, we expect earnings growth in this first quarter of about 10% in america, that is twice

the south african rand extending losses with president jacob zuma firing his finance minister after meeting key figures in pretoria. the dismissal comes amid an increasingly stormy relationship. had accused gordon of undermining his authority and ordered him home from investor roadshows in the u.k. and u.s. japan has registered its first back-to-back inflation rise in more than a year, cpi excluding fresh fruit grew at 0.2% on year for february. economists see the inflation at 1%, but that would be half the boj target. was 2.8%, unemployment in february, better than the 3% forecast. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am paul allen. one of our top stories, south korean former president park geun-hye arrested on suspicion of a bribery and abuse of power, it is the latest scandal involving big business and millions of dollars. what have we found out today? >> late last night, early this morning about 3:00 a.m., the arrest warrant was approved by the court, so park geun-hye is now in detention, where she

in south africa, they told break of -- jacob zuma -- tot person said zuma plant fire gordon because he was trying to under mind the president while speaking to overseas investors. he was pressure to appoint gordon in 2015. the winner of the 2016 nobel prize literature, bob dylan will get his metal this weekend in sweden. he didn't attend the ceremony and september saying he had other commitments. 26 al news, i'm mark crumpton. this is bloomberg markets. samsung unveiled its first smart since it's note 7 debacle last year. we will look at the galaxy s eight and what it means for apple next. this is bloomberg. vonnie: this is bloomberg markets. i'm vonnie quinn. samsung has unveiled a new and buyers are standing by abigail is standing by with more on how is doing. >> samsung did unveil its galaxy it s8. of 7/10 of 1%.ck of -- .7%. though, of course, score fromg take apple? these are iphone sales over the last year. more than one year. last year, revenues declined in a big way and that came when iphone sales declined as well. they went down the last time that samsung's phones were blowing

south africa's president jacob zuma launched a late-night cabinet reshuffle expected to include the dismissal of the finance minister, according to multiple reports. as many as nine ministers may be affected by this breaking news. south korean police have arrested former president park, the seoul central district court approved award for her arrest after concerned she will destroy evidence that her bribery case continues to evolve. the british government is in the process of taking back control of thousands of european union laws. publisham will proposals to incorporate 19,000 european-based rules. the day it leaves the e.u. vladimir putin dismissed accusations of russian meddling in the u.s. election saying the anti-russian card is being played as part of a u.s. political struggle. he made his comments and an arctic forum in russia. secretary of state rex tillerson needwashington and ankara to find common ground on kurdish fighters. he spoke at a meet -ing. the u.s. was to fight alongside kurds in syria. malaysia has agreed to release the body of kim jong nam to north korea in exchange for t

the rent strengthening, up 1.5%, as president jacob zuma was set to face mounting opposition to his plan to fire the finance minister. we got the rate decision as well, staying unchanged. thank you for that. let's stick with the markets. where do you find value right now? our guests oversees more than $35 billion in assets. internationals an value fund and a global value fund. joining us in the studio, particularly on the west coast. david: thank you for having me. vonnie: if we look at the msci world index, you see a lovely increase in the last year. we are up i do not know how many percent. is there still value to be had out there? david: i think there is always some value in individual securities. companies have a life cycle. during the lifecycle, they have competitive issues. management make mistakes and make bad acquisitions. or, generally speaking, you have some macroeconomic turmoil, whether related to currencies or the general economic environment. that create opportunities for long-term value investors to get involved in equities. after a long bull market we have thesince the en

president jacob zuma has told political allies he plans to fire gordon, according to people with knowledge of the matter. cleared him to cancel meetings with investigators in the u.k. and u.s. and told him to keep spending in check and avoid a junk credit already -- credit rating. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton, this is bloomberg. david: president trump is expected to sign an order on energy independence and about half an hour, which resumes the sale of new coal leases on federal land, reverse the clean power plan, and and obama mandates that urge federal regulators to consider global warming. it's intended to boost the declining coal agency and reduce the effects to change climate change. kevin cirilli in washington. i was listening to the background briefing last night. the policy tomorrow will look back and forward. how much of this is going to be forward-looking versus reversing some of those policy matters that were put into place by the obama white house? bottom line is they are reversing

zuma. >> thank you very much for that. the latest news on the cabinet reshuffle. also just to mention looking at live pictures coming through of donald tusk, the president of the european council, giving a joint press conference with the maltese prime minister, speaking on the draft guidelines for brexit. let's just listen in. >> second, we must prevent a legal vacuum for our companies that stems from the fact that after brexit that eu laws will no longer apply to the uk. third, we will also need to make sure that the uk honors all financial commitments and liabilities it has taken as a member state. it is only fair that of those community of scientists, farmers, so on to who we, all the 28 promised and owed this money. i can guarantee that the eu on our part will honor all our commitments. fourth, we will seek flexible and creative solutions aiming at avoiding a hard border between northern ireland and ireland. it is of crucial importance to support the peace process in northern i'lreland. these four issues are part of th

three officials in south africa's ruling party have told jacob zuma that they oppose his plan to fire the price -- the finance minister according to a person with knowledge of the matter. that is what we are hearing with bloomberg. in meeting up later on as well. to see today?ect let's talk about the central bank. the economists surveyed by europe expect rates to be remaining on hold. this is even before monday this week. recalling the finance minister from his roadshow which started speculation that he indeed might be taken out of cabinet reshuffle indeed. not a lot expected with regards but the tone of the message will certainly be a different one as opposed to what they would have looks like a week ago purely because of the political happenings that have hurt inflation expectations. when is the last time they lowered rates? lowering of rates has certainly been more than four years. a hiking of rates have -- happened a year ago. 200 basis points, the central rating us by 200 basis points since 2014. before that it has been quite a while since they have been able to lower rates. infl

three top officials have told south african president jacob zuma they opposes plan to fire the finance minister. zuma plannedsident to fire him because he was trying to undermine the president was speaking to overseas investors. pressured toa was appoint korten in 2015. a research group in japan will propose the country arm itself with its first offense of weapons since world war ii. that's according to a member of prime minister shinzo abe's liberal democratic party. the research group will also recommend japan improve its missile defense systems. there is growing concern over north korea's recent missile tests. global news 24 hours a day powered by more than 2600 journalists and analysts in more i'm markcountries. crumpton. this is bloomberg. much.t: think you so the world's biggest asset manager, black rock, is -- it will tell you how, next. this is bloomberg. ♪ ♪ scarlet: this is bloomberg markets. oliver: blackrock is replacing stock pickers with machines. after years of sluggish gains the world's largest money manager is firing 30 people. this comes as competition grows. join

south africa's currency the rand fell after the country's president jacob zuma sacked finance minister pravin gordhan in a cabinet reshuffle overnight. mining giants bhp billiton and antofagasta slipped more than 2.0%. old mutual was among the worst performers as a result of its high exposure to trade in south africa. its shares were down 7.6% shortly after the open and remained low through the afternoon. figures out today suggest that over the last year the cost of a home in the uk is still growing but not as fast as it was. there are a number of different house price indexes which release figures, one of them is the nationwide's which uses numbers from its own mortgage lending. today they show the average house price across the uk actual fell by 0.3% in the month of march, the first fall since june 2015. now, monthly figures can be very volatile, but this is the largest such fall for nearly five years. the hospitality sector has warned it faces a shortfall of 60,000 workers a year if immigration from the european union is too tightly controlled. staff from the eu make up nearly a qua

president jacob zuma told political allies that he plans to fire gordon according to people with knowledge of the matter. zuma ordered him to cancel meetings and return home from london. global news 24 hours a day powered by 2600 journalists and analysts in over 120 countries. is davidoming up, it einhorn squaring off against general motors. can he get the automakers to create a second class of stock? we will find out. this is bloomberg. ♪ oliver: scarlet: this is bloomberg markets. i'm oliver renick. i'm scarlet fu. a battle is brewing between gm is david einhorn, who pushing for a second dividend share -- second class of socks. you can see gm's returns have lagged behind the s&p 500. since the company emerged from government control in 2010. they say guaranteeing a event could compromise its it rating. this sets up for a battle between the company and david einhorn. what do we know about high -- about how stubborn david einhorn is likely to be when he digs his heels in? david: he's usually a short seller, not an activist investor. we don't have a track record of taking on. lehmanim to

zuma fired his financial minister. you saw the rand take a hit. what do we expect as the markets digested this? even more plunges are declines for the south african currency? david: it is certainly vulnerable. uncertainty.t like for the moment, let's see how it plays out. we will see if there is any feedback from that. uncertainty is not good. the markets tend to judge information quite quickly. we will see how it develops over the next 24 hours. yvonne: what are you looking out for the next quarter? can this rally continue in the g10 states? david: i think the korean yuan is an interesting 1, 1 of the good performers of the year. --sident trump potentially the dollar yuan is going nowhere. that currency depreciates. those are the main ones the markets are looking at and what i am watching. yvonne: coming up next, the challenges facing u.s. retailers. brooksman that led brothers will be here. ♪ ♪ >> taking a live look out it tokyo this morning. we have breaking news from japan. jobless rates coming in lower than ex

zuma. he came up also in the statement saying he believed that south africa is not for sale. advice to his successor saying he hopes they will managers the treasury in the country's credibility in a way that a good credit rating avoids download. the market reaction as well as political indications will affect the country's credit rating. jonathan: thank you. we talk about people with difficult jobs. amazing -- >> it is amazing anyone would take the job at this point. this really encompasses the issue with em. you have a political risk and search for yield. -- hows this work clark does this where out? i think the interesting thing is for investors is the bottom of story is generally not so great so investors have to pick -- pickse and decide your poison. i think if the rand weakened more we will have a. of volatility because people need yield and there is not a lot of good options, especially in the region where there's no bottom .f noise you have to take a view on commodity prices if you're

president jacob zuma fired gordon who has been praised by international investors for holding the line on government spending. the upheaval could lead to a political revolt against jacobs him up. he has been implicated in a number of scandals. fee for has -- fifa has delivered a report to switzerland's the china -- attorney general. from publishing the report or commenting on evidence from the probe. the report will be made available to the u.s. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. julie: thank you. our death at risk under the trump administration? we will take -- talk with the use commissioner. this is bloomberg. ♪ >> this is lumber markets. . grexit is time for the bloomberg business flash. a look at some of the biggest stories in the news. wilbur ross supports the president and blaming china for u.s. trade deficits and job declines. today.scribed the issue >> the u.s. is about to -- the least protectionist of the major countries and china is one of the most protectionist. there is an inherent

jacob zuma faces a rebellion if you fires -- if you fires the finance minister -- if he fires the prime i finance minister. the president told political allies he wants to fire gordon because he is blocking his policies. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. oliver: president donald trump met with treasury secretary steven mnuchin today to begin crafting a tax reform policy. the plan includes a reduction of corporate taxes paid for by raising revenue through a border adjusted tax. d.c.ng me from washington, is michael sommers. by gettingtart off your take on how things have changed for you after president trump's health care bill failed. everybody is watching how this will affect tax reform. component tortant consider here, i view tax reform as a stairstep. the first was to take care of the health care bill. unfortunately, they have had a stumble on the health care bill. that may mean that tax reform is somewhat the late -- delayed. oliver: the president and his people around him w