prospects of no clear winner. running through the show, will be watching frankfurt this morning. and the building is -- we will bring you live pictures through the morning. futures are up and manus cranny is worse for wear after st. patrick's day and has year market open. manus: patience is possessed by some in the federal reserve. patients will drop from the federal committee. do not be distressed. there is other language janet yellen can use with the equity

market to ensure market participants do not think she will go straight for the hikes. we are going to get the unemployment rate and the average. standard saw this floating through this morning and it was raised by bernstein to outperform 2015 earnings. significant upside in the stock. it will be 700 and they are building the capital organically. there is less of a possibility and probability of having to come to the market. that is one of the individuals to keep in mind. banks were concerned. that is a leader on the board. the european retailer has huge

exposure to russia and over a third of the stores are in russia. we are looking for demand. stores and 88 markets. a lower euro should add value to that. there is 40% last week and earnings are up 7%. dividends are of 20%. a brisk march higher and the euro is virtually unchanged. where we are, i am saying the overall is going too far and too fast. the final phase is looking for a rebound and it goes against the calls you have been reading and talking about. jon: thank you.

the ftse opened higher ahead of budget day. george osborne delivered a budget to the parliament before the election and we have anna edwards. i know we have had some leaks overnight. anna: thanks. it is timely and you have been mentioning the oil price. we could see the effects weaving its way through parts of the budget as it unfolds here for the u.k.. what are we going to see? which areas are going to be focused on? oil may have increased incentive and there may be decreased taxation on the oil industry. george osborne has said he wants to take some action on them. it may be lower u.k..

the election could be a point to focus on. we have heard about the government wanting to increase minimum wage. will they allow people to earn more without paying tax? george osborne has talked about how he wants to spread benefits of the economic plan and the economy away from london and around the rest of the country. we could see reference to railway and road building. all of that with the party faithful. all of the other topics are pensions and business rates. tax returns could be mentioned. we have heard about them. it is too close to call. the polls overnight gave us conflicting picture of who is ahead.

something incredibly difficult to call. you have been putting labor ahead and putting the conservatives ahead by one percentage point. you have peter saying the big issue the voters are talking about is around the lower paid and it is what he will be mindful of later. as you know, it is what they will forecast for the economy and tweaking the growth forecast and inflation forecast. you watch the lower oil price work its way through the economy. will that give george osborne more room to maneuver? i know you may be a betting man. 56 minutes and 108 mentions. those of the latest numbers, and terms of what you can take bets

on. >> i have not been to the bookie for a long time. that is the politics for the budget and i am pleased to say i'm joined by philip of smiths group, the chief executive officer and he joins us for an interview on bloomberg. they reported first-half earnings and revenues came in line with expectations. i have all of that out finally. the budget speaks to a theme that your company has struggled with. that is government spending. you get 4% of your revenue from it. spending for your business, will it continue to be a problem? >> it will be a problem for a while. as you look at some of the budget appropriations, there are

signs of stabilization and an increase. across europe, it continues to be tough. what we are looking for is simplification of the tax system and i'm not sure it will happen. also, more on infrastructure for businesses. let's is that something you expect to see today. -- today? >> it is overdue with infrastructure and it should be a priority for the coalition to do this. i have said this before and i think it would be an opportunity , going down that path. >> it was a huge height and the following day had the biggie -- the biggest anticlimax ever. we built it up and built it up. do you think we could wake up in

june and say it was an anticlimax? >> i think it is tough to call and we could wake up in the position. when people get to the ballot box, they may vote a different way than what they have been saying. certainly, we will probably hear politics. jon: the budget will dominate. the elections, going forward. it is a meeting of the federal reserve and i'm going to throw it out there. is the meeting of the fed today more important for your company and the bottom line than what is happening on westminster? >> 50% of business is in the u.s. what we have seen over the last

nine months is the japanese yen depreciate massively against the dollar. for example, american producers in the u.s. and japan have been paid for and it has been a big headwind for the medical business. the strength of the dollar is good for us. we have taken a hammering because of the dollar being much weaker. the second half of the year, it stays where it is. we're looking at this with great interest. >> you get whacked last year and the benefit is it balancing out. do you leave everything to hedge? >> we do a certain amount of hedging and it does not solve the problem. it's move variation. if you want to avoid the problem, you need to look at your business and where you sell and manufacture to match the

flows. if you look at the business seven years ago, it was impacted by foreign exchange movements and we manufacture in europe for the european market and in asia for the asian market. we have done a lot of work to reduce volatility and hedging has a role. it is short-term. jon: a sign the business is turning around. >> we have done a good job over the last months and we have been very focused on a smaller number of newer products that are developing well in the second half of this year and we have also had to go through a process of retrenchment and closing a number of facilities. the break even point is a tough

market. governments are still not spending and there is excess capacity. im confident in the prospects of the business. jon: you will be stepping down from the company. is that the right way? >> we are a conglomerate and each division has a management team. to the extent that we are able to find it over the rest of the year, we should execute them. those who are capable of doing that, we strengthen significantly and we have a lot of confident -- confidence that we can do this.

jon: thank you for joining us. it will be delivered to you and full. the u.k. election and the daily program. that starts at 11:00 a.m. on bloomberg tv. up next, it is one thing and focus. janet yellen and whether she will lose it.

jon: welcome back. it is a big day for the federal reserve and will yellen lose patience? the founder of the largest hedge fund has sounded the alarm. if the fed raises rates, how much tightening will knock over the applecart? he oversees $2 billion and did not want any big position. what is your view?

>> i am dovish. you look at the rate and the market is halfway there and my idea is that it will take it out and get rid of forward guidance. it will go back to the meeting and greater dependency, looking at the employment numbers. of course, you had a good report. i do not think he wants that. john: -- jon: i have heard him step away from wall street and main street and we are obsessing about a word in a statement. greenspan did this and, a month later, they hiked. you cannot tell what they are going to do off of the back of one word.

>> howdy you interpret that? we look at the data and the recent set of data and they do not tell the threat. the best case scenario is the first rate hike in september. i will be surprised if we get to rate hikes. it could be another signal. there is a question about what the market will feel about. jon: when i look at what he is saying, maybe we look back to the rate hike. is that the risk the fed runs?

what is that going to do? jon: -- >> the key thing is signaling. it says we are on the right pass. i still feel comfortable that you will see a lot of reassurance with janet yellen today. jon: how will they tighten policy? how are they going to tighten up the policy in the united states with treasury yields staying this low? >> the rate differential hardly gives anything. jon: after the break, we will talk currency policy and look at the fed fallout and who suffered under the reign of the

dollar. ♪

jon: welcome back to the open. let's bring you up to speed. netanyahu beat the challenge from the main rival. the incumbent is in a leading position to form a coalition. prices dropped across cities in

china. meanwhile stocks marched higher. right now, 10,000 protesters are gathered outside the central bank headquarters to inaugurate the new home and they are protesting austerity. the police have said that arrests have been made. taking it back to the fed, the famous quotation from the secretary under nixon. he referred to the dollar. it is our currency and it is your problem. check out it against stocks. i am looking at the chart and

the dollar gets stronger with the emerging markets selling off. is that what they are telling you? >> with the fed tightening it becomes gradual. we are seeing that in china. they are targeting reforms. it is interest rate caps on deposits and the response is going to happen. jon: will the fed goes slow and easy? it has nothing to do with 2013.

it was before the taper happens and it begins and they had a good rally. some people may do this to the prophet. if we look at this year, it is outperforming markets and i would say that, whatever happens, the market is long. the stable government has to differentiate between the market. 0 it was -- jon: it was record low after record low. the dollar reigns supreme. what does it mean for your position? >> coming back to india i do not think the currency matters

and we had a deficit and we are going into a current account surplus. to the extent of equity in india, you have to differentiate in the markets and it will be a good one. jon: it is doing india a a favor and the north sea not much of a favor. we look ahead to the budget. could there be a trade to make? >> if you look at the u.k., you have guilt and money to spend. i am expecting something from oil and gas companies. jon: the sporting index is going

for the budget. how long will it last? >> 15 minutes. the election may not be the last boat. if there is a hung parliament there may be another one. if you can only watch one, which one would you choose? later today, do not miss the decision. we will bring you that on bloomberg tv. we bring you back to britain and we speak to goldman sachs about what to expect and the outlook for the u.k. economies. let's get the process taking place. they officially unveil the headquarters. it is remarkable and we will monitor them.

we are looking at equities. where are we? it is trending a little bit higher ahead of the budget day. the dax is up. ♪

jon: good morning and welcome back. we are here in the city of london and this is how things are shaping up. i'm not going to pretend that is doing anything to the dax. we are below the level that we broke through earlier this week for the first time ever. it is up and there are decent stock stories. you look and offshore is up. it is call operating with

authorities. the key issue is that it was alleged to have obtained improper advantage. there is concern around the investigation and we have learned that accord has been struck and they would not elaborate further. what was going on regarded the investigations and it is up 6%. a lot of analysts are bullish on the stock and they say do not overweight the scope for the business to be refocused. it is all about bill winters joining as the new executive. material improvements could be found and it outperformed.

the stock is rising. the downside worst performer is in the stoxx 600. reports are that it is going to up its stakes in business and one the main once is the stock taking a little bit of a hit. jon: jon: thank you. it is budget day and osborne will present his last budget in the election year. what does it mean and why can we expect in the u k? we have the managing director and the economist. we have the director of economics. great to have you with us. i will start with the boring budget and the economics. the politics of the numbers are exciting. do you expect it to be boring?

jon: -- >> we are likely to see stronger growth and inflation. that will give a bit more flexibility and he will use that to focus on the differences and support for families and the cost we have seen rise. jon: the forecasts it pretty and the headline numbers expect forecast to be upgraded today. >> we are optimistic and close to the bank of england. the kobe are is pessimistic relative to the consensus. the growth is to burn 2% -- 2.2%

next year and the public-sector finances are looking a lot better than they did. jon: you step out and you talk to the businesses we go to and the bigger event, in terms of investment, is there a chance of a week second quarter? >> not something we have picked up from businesses. and i think there is concern about political uncertainty. we do not see it weighing on concerns this quarter. we need to lock in the benefits of investments going forward and there are specifics the government could do with investment allowance and making

it at a lower level to provide benefits for medium-size businesses in the future. jon: osborne will walk in with the grand argument and does the budget deficit really matter? it is low and reflects what happens in the economy. >> there was a time around the election and the uncertainty around it where the sterling fell sharply and, if the fiscal projections were not sorted out at that phase it could have mattered a lot for borrowing costs. they are at a point where it is considered safe and the deficit is falling.

the u.k. is no longer considered at risk. it is unlikely you will see the bond spreads change. jon: looking at the borrowing costs and, does it make it easier for osborne? >> one of the dramatic developments is the fall in the oil price and it leads to stronger growth for the economy. there is measures the government should take to address the pressures. jon: what can they do? >> reduce the supplementary down and allow investment and support the jobs in the industry. we do not need pipelines turned

off and we expected to recover from the levels we see at the moment. jon: what does it mean for the economy? >> great news. the due court -- the u.k. is an oil producer and oil per -- oil accounts for less than 1% of gdp. lower oil prices are good for the consumer and there is less investment spending. there has not been that much investment and there is not a drive from it. it is mostly positive. and, we have had oil prices fall. the public finance centers have become better than expected and with the yield curve lower, interest for the government will

be lower. in a short time, quite a good bit of news on public finances. jon: not so much the business of george osborne. sterling, ica stronger pound and, is the more important one the euro-sterling? >> the euro is the major trading partner and what is important for exports is to look to the fast-growing markets around the globe and there are measures the government can take to address that. you look at that and we are uncompetitive in the eu. it should see us half more

fast-growing reach into the emerging markets and have medium-sized businesses have the ambition to move to the capital and other fast-growing markets. jon: it is heated around the immigration topic. we can talk about it becoming an issue for businesses. >> we think they should scrap the target and look at raising the levels on the skilled visas. we know immigration is one of the driving forces and a lot of british businesses have skills as a real challenge. immigration is part of the skill shortages. jon: i have asked a british ceo and for the budget and the federal reserve, i asked the question and he said yellen.

for the markets, it is sterling assets. is it a big event? >> more important force who? -- more important for who question mark you're talking about sterling and yields and the fed is more important. different strokes. >> the last time you were here, you were more bullish. the forecast for the u.k. again. >> we are above consensus and it was pointed out the sterling rise is negative against that and the incoming data is continuing to be good. i am concerned about the rise in sterling and it is manageable. it will continue to rise and have slow growth going forward.

jon: the budget, how long? >> 35 minutes. >> 45. jon: thank you very much for joining us. we will bring you the budget in full later today with the bloomberg politics and a special daily program that looks at the key issues and how they may affect business markets. that begins at 11:00 a.m. you do not want to miss that. coming up, we are live in tel aviv. netanyahu clinch is a victory. we will discuss that after the break. pictures of anti-austerity protests taking place as the ecb unveils their new headquarters. we'll bring you the scenes as they develop.

jon: welcome back. this is on the move. the prime minister clinched victory in the election and put him in a leading position to form a coalition. i want to get out for the latest. the official results is some speculation that it could take

weeks to sort out. what is the latest? >> it seems like a foregone conclusion. many saw that as premature. it was in a and with design this union. the official results with 99% of the ballots counted is it looks like netanyahu has 30 seats and it is a clear margin of victory. the leader of the zionist union has conceded defeat. netanyahu put out a statement and said he has already spoken to the leader of the right-wing parties and he wants a fourth term as prime minister. jon: what is the next step now?

>> we will get the unofficial results tomorrow and parliament will hand over official results to the president. he asked all of the party leaders who they would like to see as prime minister. given that there are more natural coalition partners, it seems a majority was more than enough to form a coalition and they will tell him they want netanyahu. jon: thank you for joining us. the middle east editor in tel aviv.

today marks a big political event and ryan chilcote has been traveling through regions of the ukraine. one of the town should have been hit. >> it is our industrial production and we will bring salary and taxes. my job is to make people feel that it is a lie and get them to feel confident about the future. jon: we will have more on the ukraine conflict coverage. to what resembles a war-torn frankfurt trying to spoil the party, several cars on fire and

i want to get out to frankfurt. these protests were organized. what else happened? it might have been a surprise. >> they seem to have been well prepared and it is barricaded off. everything is calm and there were clashes with men throwing bottles and cobblestones. the police moved back and deployed water cannons to clear part of the protest out. it has gone according to plan and this is how this runs. jon: let's get to the business

end of things and the economics of the situation. are we expecting anything from the speech? >> i think it is ceremonial and this has been long in the planning. it has been long in the planning and it was conceived with no idea there would be the kind of a people and that this day would be accompanied by a level of protest. they are trying to celebrate the european movement and people criticize the way they do that and they are making themselves heard. jon: thanks for making -- joining us. that is the latest from frankfurt. in the u.s., it is all about the fed and what is more important. we will discuss that.

manus: anna: -- manus: the brand is cutting funding and the big news is the collapse in the price of oil and the following -- the falling price of oil will provide a lift to the recovery.

the benefits could add up to 94 billion pounds. if the savings materialize, the temptation will be some giveaways. you see things running up in the budget and they may not know until later on in the process because everything has to be agreed by the minister and the chancellor. the more wild card policies could be planned and there could be compensation. one thing to appear in the budget is companies that are struggling. we are running out of slack and

it has fallen far in the recent years and it may be only half of a percentage point remaining. will it pick up? >> the budget is in focus and that is almost it for on the move. the first word is up next. for our viewers, the poll's is coming up. a big day for the fed. guy: we have coverage of the budget from here in the studio and we are going to take all of the responses with a big focus on what is happening with the budget today. probably not from an economic point of view, fascinating.

from a political point of view absolutely massive and the big story is that you are right the fed is where we are going to focus. we will get the take on the stories and the conversation on how they are positioned. you are seeing the apocalypse surrounding the rate hike and the market is getting jittery. jon: it could be the 12.5 basis points. >> it is the start of a new cycle. guy: i'm getting nervous and the personality gap existed between the greeks and the eurogroup. it is important and we talk about currency controls. i think it is a big step.

jon: ugly and loaded. guy: it is a threat. you need to get your act together. it has to be hard politicking and i think it is a personality thing. i do not think these guys are seeing eye to eye and it worries me. jon: looking forward to it. maybe we overuse the words a big week. do not miss the coverage of the decision and the news conference. we will bring it to you. here is a picture of the markets and equities are higher. the stoxx 600 is up. on the move and lower again. even bigger plans are at their.

the euro dollar is above and it could be a story later today. good luck for the rest of your day.

guy: political budget. george osborne will lay out his budget today. francine: the federal reserve may ditch its line. guy: mario draghi and the new ecb headquarters. 10,000 people outside. francine: