by the u.k. and the loss of power and influence of the united kingdom already beginning to be manifest. that we must remain. so a comment please on the loss of influence and how can the voice of the 48% be kept alive? as the terms of leaving become ?lear to the electorate we are devastated. host: thank you. guest: i have every sympathy with your sentiment. european deeply regret the decision of the british people. i really wish we would have chosen to remain and share the destiny of the european union and our efforts to build a better future for our people and a greater european influence globally. but unfortunately, the decision is what it is. we have to respect that decision. if the people in the united hopeom feel unhappy, i through the political process they will let that be known. thethose who believe in european future for the united kingdom will continue to make their voices heard. democracies and we have to go with the outcome of the democratic process. mistake to put this up to a vote? g

u.k. strength is there. i think they're are being careful to make sure they are not dropping off on that. anna: more from bill gates through the program. will coversident, we all of that. coming up in the program, inflation seems very much in doubt. expectation from a summer height -- hike from the fed fadeaway. this is bloomberg. ♪ ♪ anna: welcome back. this is "bloomberg daybreak" europe. has your business flash. deborah: verizon is considering a merger possibilities to set the course of the company given the fast-changing structure of the industry. the ceo says he would be open to talks with comcast. new forces ofking growth as the mobile phone business matures. as the new media ventures take time to gain traction. ibm's quarterly sales fell short of estimates for the first time in a gear. struggles in some overseas markets and delays and service contracts, reminding investors that they should remain on the path back to growth. the 20th decline, margins contracted from last year, sending shares to an

and the u.k. offers at least for some countries a way of addressing that political and economic concern, that can only be a good thing. at least in my view. i think someone else has a question. the gentleman right here, and then we can take -- why don't we take both of these questions at once and then we can wrap-up after that. >> thank you. transnational strategy group. the question was about the development. and you just addressed this issue, the developing countries, africa, caribbean, pacific. and my question is about the gsp plus that the european union offers, a special concessi concy tariff regime. this would be advantageous for some countries. i'm thinking of pakistan, where when it joined g-plus, generalized systems, a scheme of references, as they call it in europe. privileges in 1974. it's textile exports, immediately jumped up by 20%. most of that is particular to the u.k. so, of course, in pakistan, they're wondering what's going to happen to gsp plus privileges and benefits when the

the u.k.'s refusal to negotiate a date for an independence referendum is untenable and she vowed to keep pushing for a vote. nicola sturgeon spoke to anna edwards. >> scotland should have a choice over our future. when the time is right, when the terms of the exit from the e.u. are known. is --en it [indiscernible] the prime minister is very clear that the timing is to conclude those agreements by the autumn of next year through to the spring of 2019. that seems to me the appropriate moment for scotland to have the choice over our own future and we will seek to pursue those discussions in a constructive way. this is about scotland not having a future imposed upon us but choosing that future direction so that we can remain that open, welcoming country that is not just in line with our values as a nation, but so important to the prosperity of our economy. anna: prime minister may has suggested you won't get that date. decision just another? >> that is for the prime minister to answer that. i don

., u.k. citizens in the eu. there was a more explicit demand of a reciprocal rights, including of course the right for permanent residence after five years of living in a country. we arty know it's a first priority, citizens rate -- rights for the year. on the exit bill, this draft stresses the bill hasn't taken to a cap all-time the u.k. has been a member of the eu. ministers will prove negotiating guidelines in the -- luxembourg today. on saturday, there will be an extraordinary meetings of -- of the eu 27 liter, to sign a on his negotiating guidelines. these principles will be followed by more detail negotiating mandates later in may. real discussions want to get until after the u.k. election on june 8. >> thank you very much. britain's biggest business lobby has said that the u.k. and eu need to settle any exit bill quickly, and it cracked and a new trade deal. confederation of british industry's said a good arrangement is not about doing the u.k. favor, but about being based on solid eco

u.k. prime minister theresa may will host jean-claude juncker and the e.u. chief negotiator michelle bonnier at downing street later. it will be her first face-to-face meeting with ba rnier since she took office. this afternoon, may will face labor leader jeremy corbyn for the final prime minister's questions before the june 8 vote. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm nejra cehic. this is bloomberg. francine. francine: thank you so much. we are here in zurich. critics we see is to raise 4 billion francs and abandon its plan to sell part of its swiss business. the announcement ends weeks of speculation. credit suisse posted a profit of 596 million francs. i asked the ceo, tidjane thiam, about the bank's capital measures. circumstances, -- [indiscernible] that was always part of it. we always said complete restructuring. we still have about 900 million of restructuring to go through. francine: tidjane thiam also spoke

if such an important part of the u.k. economy. -- it's such an important part of the u.k. economy. if that is slowing as real wages are starting to turn flat to negative, then that is a problem. the brexit negotiations have not really even started yet. what we had in 2016 after the referendum was a bit of a sugar rush for the u.k. economy. we had the bank of england cutting rates and doing more qe. we had a weaker pound. perfect economic conditions to get better numbers out of the u.k. economy. it's a bit of a distant memory and it's starting to hit consumers. mark: you would not be told off if you didn't realize there was a whole host of other data besides gdp. gf k consumer confidence, house prices, the business parameter was positive, wasn't it? this was a great chart, your first hurt. it tells a wonderful story. richard: as we go into the brexit negotiations, i thought it was interesting to look at consumer confidence in the two biggest economies in the euro area, france and germany, and contrast them with consumer confidence in the you cap u.k. you have france and germany at m

petra: one big difference between canada and the u.k., the u.k. has also been in part of the free market of capital which means free flow of capital within the e.u. so we all know that the city is very important to the whole british economy could canada doesn't have this part. this will be a part of the negotiations deal that as long as the uk's still wants to have influence in the way it influences financial markets to give [indiscernible] david: canada is in the free eva should market. there are aspects of it which would be additional to a canada again -- we are next door. that is the addition. -- ambition. catherine, a report mentioned the possibility that as many as 100,000 jobs could following an effect is that although the british economy is doing well at the moment, trade between britain and germany has dropped by 10%. should companies start to actually move their operations out of london? some financial services companies are saying they are looking very seriously and even people to paris, frankfurt. how will the british people react to th

u.k. economy. how will this alter the brexit debate and the general election? we speak with former conservative party leader iain duncan. this is "bloomberg surveillance." final trading day of this week. next week is a shortened trading we cure him london because of the main bank holiday. -- may bank holiday. also on track for the third straight monthly advance, which is the best run since may 2016. investors buoyed by the first round of the french presidential election on sunday. the next one is next sunday. strolling up against the dollar. the best run since december. highest since september last year. the best run for a month, also gaining for a second month. gdp data at half past. that stopped sterling in its tracks as gdp comes in line with estimates, relative to the prior quarters. today -- gdpr could see the economy expand at 1% annualized. historically, the first quarter has been week. will the rest of the year make up for it? will there be a shutdown, to name one issue? trump's ta

the biggest news on this side of the pond is the u.k. snap election so that is what my chart is about. the pound seems to think that is good news. look at the blue line, there is a blip that is the six-month high, and we are still trading near that level today. that is bad news for the ftse 100 which tends to benefit from a weaker currency. take a look at the bottom panel, the correlation between the pound and the ftse 100, the most negative correlation since the early 1980's. that is even before i was born, nearly 30 years ago. that means that any further gains for the pound from here would be a bigger headache for the ftse 100. if you want to stay on top of these moves, download this chart. mark: here is someone that does not remember the 1980's, although i gather she was a durand durand fan. vonnie: there should've been a soundtrack for that chart. my chart is on the no more great expectations seen by kit juckes and others, the demise of the reflation trade. that is because of the demise of inflation expectations in the u.s. and yeste

mark: in politics, the u.k. politics has overwhelmingly approved prime it is her theresa may's call for a snap election in june. the results triggered the intense campaign with brexit, negotiations, -- brexit negotiations a key topic. vonnie: morgan stanley rides the bond wave for the biggest increase and revenue. 30 minutes into the trading day in the u.s. julie hyman is here. we have just a little green. leadinginancials are the games. it is a reversal of yesterday's declines in terms of what groups are driving trading. the dow little changed. we will get into why and just a moment. we have got the s&p and the nasdaq in the green today. let's look at the groups that are on the move. financials, the laggard yesterday along with health care, coming back to lead gains today. a bounceback reversal effect. industrials were down yesterday, up today. tech down yesterday, up today. out of the more defensive groups, utilities, consumer staples, a reversal of what we saw yesterday. in terms of big earners, we have morga

u.k. prime minister goes all out for the power to push through brexit. we are live in westminster. as the odds of a fed rate hike in june received, world central banks prepare to tackle the $13 trillion quantitative tightening issue. in the world's richest man says he is counting on donald trump's pragmatism when it comes to policies on health spending and foreign aid. bill: you have seen has pragmatism on a number of things. i am certainly hoping these receiveelated budgets some of that attention. francine: that was bill gates, talking to manus cranny. this is "bloomberg surveillance." we have some great guests who will talk about the markets, foreign policy, and the snap elections. first, to your markets. this is where we stand. european shares rising attach. -- a touch as commodity producers rebound. metal prices, chinese equities leading asian stocks higher. that index gaming 1.1%. i want to show you the pound. the vote in parliament a little bit later about snap elections on june 8. t

if the u.k. comes out in two years without a deal, we have to be sure we can do everything we're doing now. the french have been talking about clearing. it has already involved the likes of citi and credit suisse moving some of their banking activities and key figures to say we have that presence in europe and we need to convince regulators. you also have to division from the long-term. we did everything we need to do now but day 10 and five years down the road will we want to keep all of those u.k. operations? there has been a regulatory push which is clear you have to have a certain amount of key players that have to be in the european union and banks are making sure that would be the case. david: stay with us. stephanie flanders will continue with us. coming up, a conversation with former minneapolis bank president. look for that at 8:00 a.m. in new york and 1:00 p.m. in london. this is bloomberg. ♪ david: the professor at bard college writes mr. erdogan has abandoned the policy and replacin

i want to get on to what is happening in the u.k.. real yields in the u.k. are insanely negative right now. breakeven is up right here and you have gilt yields here. this is more extreme than some of the steadfast bond markets in germany, etc. what is going on? of all, you have natural demand from the u.k. pension sender, which will probably never go away or get weak. you have some safe haven element relative to europe, but i think there is a belief that the u.k. is about to head into a slowdown period that will keep nominal interest rates low. i take the confusion on board because guilts are my highest conviction under weight of the year. nominal rates have very little to go but upward. guy: give me a sense of the magnitude of the move. tim: easily 2% on 10 year yields in the next 12 months. that is within the realm of possibility. guy: thank you for being here. next, we will carry on the brexit conversation and talk about what british business sees in its future. ♪ ♪ changing his tune on china, president trump says beijing is not a currency manipulator

a parallel between the u.k. and the u.s. here. the u.k. car market was revolution based by credit over the last two years. looks like a completely different place. it is based on the secondhand car markets have hold -- hold their value and this huge credit impulse we have seen ripping through this market. could we be about to see the same thing in the u.s. happen in the u.k. and what would be the implication here of that happening? steen: the implications are the same globally. in china, cars are also trailing what was expected. of thee seen a change model, very positive momentum and then you get excess supply, you see all of the producers ramping on. most important key remains that credit drives everything in this economy. the -- we can observe what goes into the black box with capital and how much credit you put into the box. are constrained. there is less velocity of credit going into the black spot -- black box called economy. that will be dramatic downturn coming. by late this summer, we should see the trial from this credit event com

the aim is not to punish the u.k. but sitll, when you -- but still, when you are a member of the club, it is better than to be out. it is clear the situation after brexit will be worse for the u.k. francine: give me a blueprint. i don't want to jump to conclusions. let's say there is no deal. what industries in europe and countries will suffer the most because of this? >> frankly, i refuse to speak about the no deal. why? because if you start talking about plant b, you don't believe in your plan a. i am convinced that if we can make it, if we negotiate on principles, everybody defends their own interest. this is about the movement of citizens. there are 4 million people from the eu working in the u.k. london is among the biggest cities. and third, there is the financial aspect. fourth, we will be capable of discussing the future of our relationship and it needs to be very close. this must include a trade deal. this must include a corporation. other items, such as the fight against climate change. it is not that i am o

is that affecting u.k. consumers? u.k. small businesses? george: i think it is affecting consumers, or starting to. the point is when you look at the national accounts, the figures for the fourth quarter of last year, they showed income growth much weaker in nominal terms and it was a year before. that is even before we think about the rising deflation. we haven't actually seen in the full numbers, this big increase in prices due to the weakness in sterling and the impact on consumer price indices. that is starting to be felt and as it does, more significantly 2018,h 2017 and possibly and you are starting to see wage growth in real terms even softer. i think the slowdown in consumer spending we have seen so far in the surveys has yet to come through in the official evidence, but will do in a matter of time. guy: can the u.k. consumer borrow much more? george: there are a couple of side,s -- on the positive banks are certainly able and willing to lend more than they were a few years ago. that is on the positive side. on the negative side, we

three of the u.k.'s top officials are heading abroad to bang the drum for the country's businesses ahead of brexit. prime minister theresa may be gives a trip to jordan and saudi arabia. meanwhile, the chancellor and governor are going to the bank of india on the heels of the triggering of brexit. hasrance, marine le pen described to the euro as a quote "deadweight" and promises the french people will have the final word on leaving the market. melenchon jean-luc appears to be gaining ground in a poll published on friday, just one point behind fillon. serbia's prime minister has claimed a landslide victory in the presidential election. it leaves the way for a strengthening grip on power and russia to deepen its influence in the baltics. he said a new government will be formed. and iceland's prime minister has rejected speculation that his government is already considering a currency pick after exiting capital control. the prime minister underscored the value of a counter currency and allowing an economic

u.k. government fully supports the action. let's take a look at how markets reacted to this. waythis really nin a overshadowing the job support that is coming later today and the meeting between xi and president trump happening in mar-a-lago. you can see the 10-year treasury yielded down one basis point. it earlier hit its lowest level since november dropping its lowest at 2.29%. the yen, a weaker dollar off by .2%. money moving into the safe avon is gold.et that gold hitting its highest since november at 1.2. and oil in fact hitting a one month high. wti above $52 a barrel there. now, joining us live from florida where president trump is meeting with chinese president xi is bloomberg's chief white house correspondent. great to see you. so, this meeting, of course, between president trump and president xi overshadowed by the offense overnight. into contextase, for us how this latest action fits with donald trump's foreign policy up to this point. this is the first test of president trump's

we all have u.k. investors who want nothing in the u.k. we have seen across the board in our client base. guy: we need to talk about what is happening in the u k and figure out how we work that story. interesting theories surrounding what is happening with the election coming up and whether that will change the fiscal start to the u.k., whether that changes the bank of england's view. we will talk to geoffrey yu about that from ubs. where we are with the markets, i want to see what is happening with euro-dollar this morning. we have been through the kind of of level, just shy 107.50. a little bit of a bid on the euro this morning on the back of the latest poll, giving macron an edge on the first round. we need to talk about what is happening in the u k, and keep you updated on what is happening in the markets. this is bloomberg. ♪ guy: welcome. nearly 15 minutes into equity market trading, castrating here in europe. let us look at worthy numbers a stack up. not a clear direction. really not a clear sense of direction, other than sideways

u.k. prime minister theresa may calls for a snap election as she hopes to strengthen her hand going into brexit talks. we will look at the chances of the tories putting out a convincing win. vonnie: what did e.u. members think of the decision to hold a snap election? does it mean a harder brexit is coming? we will ask michael noonan. apple getting ready to overhaul the iphone just in time for the smartphone plus 10th birthday -- smartphone's 10th birthday. what high-end features could be included. equities, so much for easing into the post easter holiday. theresa may calling for a snap election and parliament vote tomorrow. if we get a two thirds majority, june 8. the ftse is down by 2.8%. look at sterling, up by 1.5%. for the ftse, the biggest drop since june 27, three or four days after the brexit vote. sterling up 1.6%, the biggest increase since january 17. breaking through its 200 day moving average. all of these currencies are rising against the dollar. i will just move away from bre

at u.k. credit, u.k. credit looks really attract the versus u.s. credit once you ande back into the u.k. european credit to hedge back into the u.k.. darren: the credit spreads on u.k. -- the investment-grade has always been higher than the markets. the u.k. is relatively more attractive. having said that, if you are going to be hedging it back, given interest rate differentials, that is costing you returns to do that. that makes it less attractive. guy: darren is going to stay with us. he is the head of fixed interest at investec. more investors will look for clues on the timing of the next u.s. rate hike in the latest minutes due out tonight. what she we be looking for? what defend futures tell us? that is the conversation will be having and we will have the national secretary of the socialist party. interesting that we see him doing as well as he is in the debates. more on the french elections coming as well. this is bloomberg. ♪ ♪ a live picture from strasburg. this is the european pa

u.k. still have the legions about brexit. she told german lawmakers the u.k. will not keep the same rights and privileges it had in the eu and she vows to put the european union's interests first. i'm emma chandra. this is bloomberg. watching aluminum prices. the trump administration opens a trade investigation into aluminum imports. this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. mark: i'm mark barton live from london. ets. is bloomberg mark aluminum fluctuating on it news the trump opened a trade investigation into whether imports international security. further,s to discuss scott barr. is it going to lead to a curb and imports? >> that's what the trump administration would like. i think that's probably down the road a little bit. that's the path that they are on right now. we are seeing the price in a stock like ach take a big hit on this news. mark: what does it mean for the price going forward? aluminum gaining 16% this year. rising 12% last year. by stableeen hel

if the u.k. says they want to have control of the movement of people, we want to have control of, you know, the movement of goods, why would the european say, all right, you can have those and we will let you stay in the singles market? casei don't think it is a of we get everything we want and they get nothing they want. i think there will be, rises. i think i wrote in one of my previous notes that we would have effectively a pay to play outcome. different from norway, from switzerland, many other countries in peripheral europe. i think we will get treated slightly differently because we are such a big economy, because we have such -- we are such a big player in these other issues which are critical at this point in time. look, i do not think it is win-win or lose-lose. maybet context, i think i'm doing myself a disservice, but in the long run, the u.k.'s obsession with financial services in a square mile may just have to be watered down a little bit. i go back to the crisis in 2007 -2008. all t

they share their bounty with the u.k. as well. then you have a variety of defections, one man who has been talked about, he worked for the soviet union. then you have other figures from the projects, like a brilliant crypto analyst. need dozens of languages. then you have a man who was a double agent working for the soviet union. he was always looking over his shoulders. then there was another mole. this is where -- here is arlington hall where they worked on this project. they were working on a code breaking project. here is where our story starts. once the soviets found out that the u.s. had broken their code. they changed everything and everything went black for american intelligence. that is considered one of the blackest moments, with early intelligence history. the soviet union was also very good at dealing with intelligence. they had a variety of complexity in the u.k. and americas. william worked on another project, he was considered a gregarious guy who is always walking around looking over people's shoulders asking what

do think the u.k. has had little success in dividing up the remaining eu 27 limited success with that strategy? luke: on the face of it. underneath, there's a lot going on. the u.k. is saying, we will soften, we need you to soften. this weekend is all about the eu appearing tough. appearing united. up?: you are not softening .uke: no luke: we talked about trade. this is the way europe works, and the back brand, there is a lot going on. it will not be about dividing, but trying to move them towards . more friendly attitude we have seen some of this, the eu trade commission saying, yes, we could deftly get a free trade agreement with britain, that is easy. on a: it seems to the goal to on thethe progress made bill, before we can get to trade talks. one area within the eurozone, where there is not unity, this has nothing to do with brexit conversation, but their rates of growth -- i pulled up this chart because it highlights that same story we talk about divergence within the euro. this is germany at the

the u.k. triggers article 50. it is t minus two years until brexit. >> this is an historic moment. >> there is no reason to pretend that this is a happy day. erik: a mammoth merger clears a major hurdle. samsung rolls out a sleek new phone. president trump rolls back climate change rules. >> this is about coal, coal, coal. erik: energy executives are pumped for the future, and italy's finance minister insists the banks are back on track. >> now we find a solution within the european rule context. erik: insight into what's ahead for the fed. >> now with the time to be thinking about how we normalize more quickly. >> a few hikes this year seems reasonable? >> this is not an environment where the data is screaming you have to move. >> we could get more this year. erik: it is all straight ahead on "bloomberg best." ♪ erik: hello and welcome. i'm erik schatzker. this is open "bloomberg best," your weekly review of the most important business news, analysis and interviews from bloomberg television around the world. th

the u.k. chancellor tells bloomberg that even members of his own party don't want to deal with the european union. this is "bloomberg surveillance ." we've just got to get to some breaking news for you. we've got eurozone services pmi data and the composite coming through. let's look at the services first. we coming in at 56. this is a miss. was 56.5.ation it is a little weaker than the prior reading. at composite index coming in 56.4, again a miss on the survey and a little weaker from the prior reading. 1.0676, pretty much unchanged on that trade. let's get to your markets. speaking of things that are unchanged, quiet in equity markets. i wanted to show you the rand. , the randdollar-rand strengthening, best-performing currency against the greenback today. we did see it rebounding yesterday and we've had some news that the markets are reading as positive for president jacob zuma. the 10 year yield down to basis points. we saw the 10 year treasury yield within touching distance of the lower b

the u.k. shares in australia and london are retreating a touch. if you look at one of the main embassies around the world, it is gaining a little bit. but not huge. the dollar gaining. for theling a touch third day, now practically unchanged. iron ore is the story of the day, down from 3.7% after better-than-expected data out of china. yet, iron ore is telling us a different story. we will have plenty more, but now let's get to the bloomberg first word news. nejra: donald trump has called tokey's president erdogan congratulate him on his referendum victory. this is after erdogan insisted the vote was democratic, despite the monetary group insisting a took place on an unlevel playing field. he said turkey did not care about the opinions of hans or george. the deputy prime minister has talked down the prospect of an early election. >> it has been made very clear the next elections will be held in november 2019 and there will be a period of adjustment. so, i think it has been very clear that it a

the u.k. triggers article 50, d-two years to brexit. years to brexit. -- samsung rolls out a sleek new phone. president trump rolls back climate change rules. u.s. energy executives are pumped for the future. italy's finance minister insists the country's banks are back on track. >> we find the solution within a european ruled context. >> inside insight into what is ahead for the fed. >> we have to think about how we normalize more quickly. >> a couple more hikes seems reasonable. >> this is not the environment where the data is streaming where you have to move. >> it is all straight ahead on "bloomberg best." ♪ hello and welcome. youris "bloomberg best," weekly review of the most important business analysis and interviews from bloomberg television around the world. this was the week prime minister theresa may promised to trigger article 50, starting britain on its long and potentially painful breakup with the european union. monday, a multinational merger took an important step forward. ♪

less than a week after the u.k. triggered talks to leave the european union, the first direction is over gibraltar. the first -- the first corruption is over -- iraq ption is over gibraltar. joining us is the spanish bureau chief from which read. madrid.much read -- it remains to be seen, we are very early in this process. it took people by surprise because it is a sign of how complex these negotiations are going to be. people had been looking at spain as a potential ally for theresa ,ay in the brexit negotiations saying spain and the u.k. have a lot in common. we have this stone in the shoe, which is gibraltar. it is causing problems. nejra: what is spain's view of this spat over negotiations? spanish commentators are kind .f praising spanish diplomacy they have managed to put this issue on center stage. from the spanish point of view, well done. it might be seen as a diplomatic step forward for spain. at the same time, we have heard spanish officials today that intend to play down the issue. we heard the foreign m

everything in the u.k. economy is improving compared to three months ago or six months ago, yet the cap -- the positions are very short. after some initial volatility, sterling appreciation can continue. big news this morning was the the 10 year jee got yield close to zero or at yield now. that is the boj pull target of 10 year yields. this is also a reflection of what is happening with global blonde -- bond yields over u.s. treasury yields continuing to fall. even though we see a slight rebound in asian treasures -- trading. when will this start recovering and will happen to the boj policy to continue on bond poses best purchases in the 10 year sector? >> for the boj they are being driven by what is happening in the global situation in their very much a derivative after the moment. 0% on the 10-year is the target. they will be worried about the flattening of the curve. that is certainly a concern. at some point they might start pulling back their purchases. but then that might send it towards capering. the

morgan's emily says there is a 15% chance that the u.k. will euft out -- crash out of the without a free-trade agreement and have to put up some money to pay for damaging these trade barriers. aacy: it seems like we have pretty packed agenda for eu officials in brussels. some of those officials actually had some strong words for turkey after the government in that country decided to block access on wikipedia. i think that was just yesterday. what exactly are eu officials saying about that? at: that was the news that we got yesterday. the relationship with turkey is certainly straining since that referendum. he was pretty unequivocal about his approach to turkey. >> we have to bring our relations to turkey into order. access --believe that but nevertheless, we strongly -- for the idea to pay place, which should take for economic and security issues. ed: it is a difficult situation, because turkey is important to the eu. is the fourth-largest export it is far andys away the largest export-import partner to the eu. it was back in december tha

the u.k. chancellor philip hammond said there are some within his countries ruling conservative party who don't want a brexit deal with the eu. i reported joins us on the phone from india. what is the hardest battle for hammond right now, winning over the eu, or winning over the backbenchers at home? he's pointing to well-known divisions within the ruling conservative party. >> very interesting, in the interview he said he acknowledges that there will be plenty of tensions once negotiations start. meant tensions with the tory backbenchers who take a very hard line on brexit. i wonder what kind of deal people are all expecting. everyone i speak to in brussels from the european side said they need to get brexit done first before they even begin to discuss trade. what is this deal that hammond is hoping for? mean, not sure what you what hammond is hoping for is the free us trade deal possible. he very much sees himself as a peacemaker between the europeans and the brits, who's trying to push a mo

u.k.. most optimistic in 18 months. is it getting harder to hold onto the short dish? data, slightly likes but you can see short vision was after the flash crash. we are less short on the british and thatn we were, positioning is getting more and more difficult to hold onto. 1.21 by the beginning of this year. it depends which research you've read. every time you see a little bit of a nuance, you see a squeeze wethe purpose house anna: were talking a lot about how short the market was. bit ofk radar, a little a picture of where we are on various assets as you go to the asian session. dollar pretty weak. new york president weighing in on where the fun because next. no huge rush to raise rates more quickly. we are focused on geopolitics arrest north korea. manus: a nice flow of money into european -- the euro. you take the dick black of inflation, what does that do to the european? yourlow of money into assets can drive the euro dollar higher. the asian equity session: up a quarter of 1% on

do you look at this as this is a long goodbye or this is an opportunity for the u.k.? what is the threat from brexit as you look at your vantage point? bill: the u.k., whether it's for microsoft where they have a huge lab, which does amazing work right next to cambridge, or for the foundation, where we have over $1 billion of active grants to institutions in the u.k. to help build new tools for us, it, after the united states, is by far the number two place with a huge distance to number three. so, maintaining that scientific excellence, which sometimes involves foreign-born scientists coming in and joining teams there, and having the right type of r&d collaboration, the u.k. has been a huge net recipient of r&d dollars. i have been pleased that both the chancellor and the prime minister have said scientific leadership, creating good jobs, having the strength that is really fantastic and the u.k. -- that they are going to work to maintain that, because it would be a huge loss to the world and the u.k. if that wasn't done. it can be done. they have made it a bit more co

a preference for continental europe over the u.k. . not usually bearish on the u.k., the opportunities are better. nejra: how do you avoid the -- vonnie: how the you avoid the crowded trades in continental europe? >> the great thing about continental europe, it has had this risk factor over it. hard to find credit rates anywhere in europe, apart from the bond market. within the equity market, close into the asset class have been poor for a long time. we can see uncrowded trades everywhere. point,to pick up on that you commented that the apparent con we saw in stocks globally, masking a lot of action between industry groups. talk me through how you think that will play out, particularly as we get a lot of questions over the sustainability of the reflation trade. >> the reflation trade has been rolling over for the whole of the first quarter, components of that are bond yields are rising, they started to fall and the dollar was rising and has started to fall. oil price was rising but started to fall. all of those post-u.s. election refla

the receivers of commerce has warned the u.k. government not to let exit divert attention away from the structural challenges facing business. let's try and make sense of some of these stories. it, house prices in the capital have succumbed to sentiment and concerns about brexit. article 50, asgh you look at the nuances of language coming from europe, do your fear levels rise, how do you look at sterling at the moment, how do you look at the u.k.? >> i look at us a little more optimistically that i think the markets are looking at them. we have one of the most bullish planned forecast. we could end over 130. in terms of the house price situation, i agree, there is a brexit issue there of course. tax changes are playing a role. on prices which is a large portion of the market. filterings are through and there are the changes as well and all of those s is having a bigger impact on london. in terms of exit, recent developments should be indicating some increased confidence in terms of how the negotiations could go. the principles of

sterling move on the u.k. election call for june. -- over the weekend, they euro weakness while it has not moved significantly in the past few weeks, it has been much lower than levels previously in 2016. we are watching what is a four-person race in a friend print david: we do not know what it means. a harder brexit would softer brexit. does this election make a likely there will be a deal of some sort? real talk of a may not have any deal at all. better than no deal, does that make the sterling move justifiable? nandini: yes. that is the point. we do not know hard soft or what. wouldct that theresa may have a larger number of mp's to rely on for support in parliament and that number could be of the most disinterested view or closer to her view makes it better for her in terms of negotiating with the eu. that comes into play. whatever policies are harder or softer, anyone knows as much as i do. the fact, if we trust the conservative lead in the polls right now, should go very well a much stronger hand in parl

the head of the u.k. investment .ffice at ubs wealth management up next, a battery for south africa's credit rating. out why the senior director of sovereign ratings at fitch thinks that they fell. matt: it is 2:30 in the afternoon in tokyo. as the yen weakens against the lower -- the dollar, it is 7:30 in berlin. is it the heart of europe? i sometimes feel like that. let's check in on the markets right now. we go back to england. mixed pictureng a across markets. nuanced. they say a comment from the fed policymakers that we had over the weekend. if we take a look at the asian session you can see a fair amount of green. the nikkei higher. australia higher. coming down along with the korean one. the worst-performing currency against the dollar so far in today's session. , you can seeield the yield heading higher in new zealand as well. a bit of a mixed picture. a loss focus on the dollar-yen. that the fed on friday, downplaying the likes of any cause in the rate hike half. you saw the dollar rise on that a

there is talk of unity and warned the u.k. against trying to create a position in the hopes of getting a better exit deal. the u.k., police say they have disrupted an act of terror in london and southeastern england and one woman was shot and several others wounded. several counterterrorism forces stormed a house. counterterrorism police say 30 potential attacks have been foiled and last four years. in the u.s., president trump wants to expand offshore drilling. he ordered an interior department to revise a five your schedule for auctioning drilling rights. the goal is to open more opportunities to offshore rigs in the present will also order a review to not repeat the deepwater horizon disaster. global news powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. vonnie: thank you. u.s. secretary of state rex tillerson is speaking at united nations security council. it's his first time to address to getc and is trying the security council to increase pressure against north korea. at th

it's a u.k. duty, which it has pursuant as eu member states so what we expect that u.k. is respecting the financial arrangements it has been entering. items a specific concerning the irish border between north island and republic of ireland, which is maybe a specific issue. we think it is very important to find a tailor-made solution because on one hand, if the uk's leaving the eu, internal market also custom units fall across the border. border can be destabilizing. these the items you're putting on the table. , the vicethank you president of the european commission joining us. we are talking to a couple of finance ministers from nordic countries, so we will talk politics and also inflation. mark: we look forward to it. ,reat chat from francine lacqua she has a whole host of interviews from the imf today, including the secretary-general and the finance ministers of the netherlands and norway. what a flight of guests we have today. here's a much honor with more. emma: president trump believes the attack in paris will have a big effect on the presidential election. the pr

u.k. embarks on 23 probes adding to the 70,000 over 16. that is more than double over any other year in the last decade. exports, speaking of japan, drove the fastest rate in more than two years, reporting a moderate economic recovery in the face of weak economic demand. exports rose 12% from a year earlier according to data released by the ministry of finance. in porch jumped at 15.8%. its head to tokyo where henry is standing by. is the japanese economy editor for bloomberg news is henry. henry: it is certainly looking good at this point. we have had four straight months after a longwth string of measured numbers, almost a year. noted, mark's numbers were the strongest in two years. february numbers were strong as well, but there was some newtion about the lunar year holidays. in march, we saw a big jump in and as, exports to china strong growth to other asian markets as well. is goingmist see this for a while, at least for the next couple of quarters. this is the japanese story toefitin

this is a long goodbye, or an opportunity for the u.k.? what is the threat from brexit as you look at it from your vantage point? >> the u.k., whether microsoft, where they have a huge lab there, cambridge, or for the foundation. we have over a billion dollars of active grants to institutions in the u.k. to build new tools for us, it after the united states is by far the number two place with a huge distance to number three, so maintaining that scientific excellence, having the right type of r&d collaboration, where the u.k. has been a huge net recipient of r&d dollars, i have been pleased with the chancellor and the prime minister have said scientific leadership, creating good jobs, having the strength is fantastic in the u.k., that they will work to maintain that, because it would be a huge loss for the world and the u.k. if that was not done. it can be done. they made it a bit more complicated by not being part of the eu, and just the uncertainty about the rules about people, r&d, some people are getting concerned about that. our founda

the u.k. trade secretary said asia-pacific has become the most important region, in terms of the global economy. the comment was on the visit to the philippines to talk trade and investment. he is looking for opportunities for british businesses outside of the european union as the country prepares to leave the bloc. center -- where the center of the gravity of the global economy has moved to. there are opportunities here in terms of exports, but also of investment moving in both directions. we are looking to see how we can expand u.k. exports, which are, at the moment, too low. we have to get those exports going up. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i've sebastian salek. nejra: u.s. jobs are the center of attention again today, as we await nonfarm payrolls data on friday. the immigration services department has announced a crackdown on companies bringing foreign technology workers to america, using the h-1b visa process.