amid rising tensions it's asked both pyonyang and washington to exercise restraint. monitors from the organisation for the prohibition of chemical weapons, which is mandated by the un, say their test results confirm that sarin gas or a similar nerve agent was used in an attack in syria earlier this month. now it is time for our news review. the telegraph leads with a warning from uk prime minister theresa may that britain will be run by a coalition of chaos if voters opt for scotland first minister nicola sturgeon‘s plan to create a progressive alliance of snp, labour and liberal democrats the ft reports on demonstrations taking

place in caracas. at least two people have been shot dead in venezuela during protests against the government of president nicolas maduro. also in the ft, brussels is urging businesses to move inside the european union as british companies are warned they will be shut out from multi—billion euro contracts. the gulf news says airline emirates is cutting the number of flights to the us after passengers became put off travelling due to the recent imposed ban on electronic devices and visa restrictions. in the gulf news, business section says stocks, bonds, yields and the dollar are all falling while sterling is marching higher. the paper says the reflation trades of 2016 that were supposed to mark a turning point in global markets are fading fast. don't worry, our guest will make

sense of all of that. i had no idea what i was talking about! just wait, you will do in five minutes! and finally in the irish times says according to doctors people in ireland are wasting millions of euros a year on gluten free products that do little or nothing to improve their health. it's a fad apparently. it is rubbish! you get that one, don't you? i know what gluten can do to you? i know what gluten can do to you if it doesn't agree with you! joining us is james hughes who's chief market analyst at gkfx. good morning. nice to see you. i have just had weetabix with banana, that's going to be fun in about an hour! let's start with the daily telegraph, snp plots a coalition of chaos. it's only day one and it is getting quite nasty, the daggers are out. day one of the most unwonted election in the history of

elections. you sound like brenda from bristol. this election is a bit nuts and it is likely to be nuts. the pollsters so far have this done and dusted with theresa may winning, but the thorn in the side of the conservative party has been for months if not years nicola sturgeon and the snp. she's not going away if any of these stories are to go by. what theresa may called nicola sturgeon 's point yesterday, talking about a coalition plan to tie up with the lib dems and labour, was a coalition of chaos. it's getting nasty already. the most exciting line of the year has come out here, parliamentary arithmetic, that will be fun to talk about for the next however many weeks. the big thing is the only way theresa may sees jeremy corbyn getting in is if she is with

the snp and the liberal democrats. it depends how scared you are of the tories i suppose. when this broke, on tuesday, nicola sturgeon —— the sterling surged. it is linked to the ftse 100 because they sterling surged. it is linked to the ftse100 because they are doing well as well. what was the mood? not ain! as well. what was the mood? not again! this is the biggest issue, it creates uncertainty, uncertainty about everything, which is why i doubt necessarily agree with the point that theresa may having a majority helps with brexit because all that does for the next month is create more uncertainty. her idea is it creates more uncertainty about brexit. and certainly for her. for the rest of us not necessarily. we don't know what brexit means yet!

moving on to the ft, if you want uncertainty, look at caracas, venezuela, a country in milk down, protesters flood the streets of caracas. it's like somebody has finally let the lead off and it has blown —— finally let the lead off and it has blown — — meltdown. finally let the lead off and it has blown —— meltdown. it has and how do you get it under control? the economic issues within venezuela have been huge for a long time. they have been huge for a long time. they have such big oil reserves but they also have one of the highest breakeven prices for taking their oil out of the ground, around $120 a barrel. they have to get $120 or more for the oil they are selling to brea keven for more for the oil they are selling to breakeven for the economy, to make it pay for itself. exactly, but we have had an oil price of around $40 a barrel or even less, which has caused huge problems. they have triple digit inflation, food shortages around the country, it is a real mess and it seems like

something now has to give. we will keep an eye on it. looking at the financial times, they are saying they have seen a memo in the european commission which they describe as a chill biting thing in terms of what it means for british private companies that want to keep lucrative contracts with parts of the administration in brussels. i must admit, i read the story and i thought there is nothing surprising here or that i don't already know, companies that work in the uk, if they want to work in europe they may need operations in europe. this is it, brexit has happened, the uk is leaving the eu, if there are areas in the european commission tied solely to britain they will have to have areas within the youtube work as they had done before. to me, that isjust a as they had done before. to me, that is just a given as they had done before. to me, that isjust a given —— the eu. as they had done before. to me, that isjust a given -- the eu. companies are getting ready for this, easyjet is doing this, lloyds are looking at

operations in berlin. it is part of the new world. it's moving on, brexit is happening, you have to move on and change with the times. if everyone said we are keeping everything in britain, brexit wouldn't work. all of these companies and the areas within the commission and the different departments have to make brexit work from both sides, that's all the memo says to me. let's skip to the business section of the gulf news andi business section of the gulf news and i want to hear you to explaining reflation. let's talk about what this means in 2016, the issue of reflation in the markets. the big issue was you had the markets going the other way. everything against the other way. everything against the pound if you like. the referendum happening in the uk, but also you have yields going up, the dollar going up, also you have yields going up, the dollargoing up, and also you have yields going up, the dollar going up, and we had stock prices moving incredibly high and really strongly and did do for a

long time, and that was even accelerated after donald trump won the election. now we are seeing a complete reverse of that. the uncertainty... it seems to be everything we talk about in terms of the markets, it comes down to uncertainty, it's the biggest issue any trader has, uncertainty. we have north korea, driving stocks lower. the worries over tensions between the us and russia, a huge problem. disappointment with donald trump? yes, causing massive issues. the us dollar is falling but the companies are doing well in the us but stocks are doing well in the us but stocks are falling as well. there is a global feeling of not a bubble bursting, that is too dramatic, but a bit ofa bursting, that is too dramatic, but a bit of a correction. it's going to go a bit of a correction. it's going to 9° up a bit of a correction. it's going to go up and down. that's what a natural market does. that's how james makes his money. a good time to invest? you want volatility, you wa nt to invest? you want volatility, you want the market to move, if a market goes up for a long time, nobody

makes any money. but people like you don't. great for pensioners and long—term investors, though. gluten—free, you say it is a fad? long—term investors, though. gluten-free, you say it is a fad? we we re gluten-free, you say it is a fad? we were listening to gwyneth paltrow and novak djokovic according to this professor who says gluten—free is a fad and in 80% of cases it does nothing to your body and it is just the placebo effect that makes you feel better about it. we're spending millions on it. all i know is in feel better about it. we're spending millions on it. all! know is in my case it is rubbish. if i have gluten, everyone around me is in big trouble! that is an experiment! we will do it tomorrow! we will get a doctor in, i will eat loads of pasta tonight! wetter and windier weather will move east across scotland through the day. this area of low pressure north of scotland is significant because into next week it will take colder air south across the uk and some of us will see some snow. keep checking the forecast. hello — this is breakfast, with sally nugent and charlie stayt. the battle begins.

the party leaders hit the campaign trail for the 2017 general election. jeremy corbyn will say that labour will stand up for british people against what he calls a rigged system, when he makes his first official speech of the election this morning. last night, on the campaign trail, theresa may told voters in bolton they faced a choice between her "strong and stable leadership" or a "coalition of chaos". exactly 7 weeks to go.