jonathan: -- guy: more stimulus is now on the way. we are going live from beijing. francine: infighting exposed at the top of vw. guy: at the house of hinduja. one of the u.k.'s richest men weighs in on the non-dumb debate and india's economy. welcome to "the pulse." we are live from bloomberg's european headquarters in london. i'm guy johnson.

guess who's back. francine: i'm francine lacqua. we begin with modi's european tour. guy: the prime minister is hoping to attract investment. on this topic, i sat down with gp hinduja, and he weighed in on europe's attitude toward his home country. gopichand: france was the first country which opened. germany is doing the same thing. americans are following. why not britain? guy: more on that interview throughout the program. he basically says the u.k. could do so much more. we are behind belgium, switzerland, germany in terms of our export story. francine: he was talking about people having fire in the belly and also talking about getting up and doing whatever he wants because he's so good at it. guy: he loves solving problems. he gets up early, does a bit of yoga, has a nice breakfast.

francine: let's see what mr. modi is up to. the indian prime minister's meeting with angela merkel today. let's get more from hans nichols in berlin. what are we expecting? hans: everyone is talking about the potential for trade. in modi's words, the potential for trade between germany and india could be huge. right now, there's about 16 billion euros in annual trade between germany and india. compare that to the rest of their trading partners. it is quite small. germany is a top the list in the eu. switzerland is the top trading partner. germany is all the way down at 25 when you compare what the overall trade is that india has with other countries. take a look at china. germany's trade with china, 154 billion euros per annum. that is almost 10 times higher than what they have with india. you look at who's india's

trading partners are. that is a lot of oil. tiny little switzerland is in their top five list. those are the topics on display today. germany is obviously keen to help india maintain, build, and upgrade its rail network with companies like siemens. there is a big rail opportunity there. lots of companies are salivating at the prospect of india's 7.4% growth. at the same time, india is going on a shopping spree as well. in france, mr. modi mentioned that he would be buying those 36 french dassault airplanes. angela merkel's response, that is competition. guy: give us a sense of how you think this trip is going. modi has been fettered around the world. he has been talked about as this leader that is going to reignite

the indian economy. is that how germany sees him as well? hans: it is long. the trip is noted for how long he's here in germany. he was in frankfurt yesterday hanover for the rest of the day today, then he will make his way to berlin for that meeting with angela merkel. it is one of opportunity. that's how the german press seems to be taking this. you look at germany's industrial strength. they see india and their burgeoning middle class as a real opportunity. you compare it with china, almost 10 times as much trade with china as with india. india has their own problems. they have a bureaucracy. mr. modi has been cutting down red tape. mr. modi is advertising his own country, but there seems to be an acknowledgment from mr. modi and the german press that india needs to tweak their economy make it more open, for this

relationship to really blossom. guy: pons, thank you very much indeed. francine: here's a look at what else is on our radar this monday morning. after months of speculation, hillary clinton has announced that she will seek the democratic nomination for u.s. president in 2016. clinton made the announcement in a web video yesterday. it is the second presidential run from clinton who will become the country's first commander in chief who is female if elected. guy: wolfgang piech throwing his support behind martin winterkorn . piecjhh said he was kidding himself at a distance from winterkorn. winterkorn is due to hold a press briefing with angela merkel. we think that is going to happen this hour. francine: here in the u.k., ed

miliband will pledge thatt a labor government will cut the deficit part of his manifesto which he unveils today. guy: let's get an indian business perspective on modi's european tour and the impact that modinomics is having on the business climate. we are joined by the chairman of the american. i hope i pronounced your last name right? that is a good start. let's get into it. mr. modi is here. what impact has he had back home? thus far, he's had a huge pr hit. he's been hugely popular. what effect is he having on the indian economy? >> i take you back 12 months everybody was skeptical. what has happened is tremendous.

he is not only the national leader, but an international leader. an international publication put him in the top 10 world influencers, if not the top five. he is doing a great job. that is a small flavor of how things are. i think the international engagement of india, which is utterly needed, is going to have a big impact. they are going to have agreements with international businesses. for example, in the eu, it will make it easier for our products to get in here. francine: he's been a phenomenal pr man. he's basically traveled more in the last four months than anyone else in the beginning of their tenure. he has been to the americas, to europe, and across the world. he has actually signed some

deals. do we need to see more investment coming into india directly and is that going to happen in the next six months? karan: i think you have to take a longer view. when he came into power, he said, i need 10 years. when you look at his budget that is a clear reflection. it is the first time the indian budget has laid out a roadmap. he has demonstrated his ability to set a path. i would look at more than a six-month window. in the next six months, if you look at the growing indian economy, you will see a lot of investment coming in. a lot of other sectors are being freed up. you were talking about direct investment liberalization and disinvestment as well. i think disinvestment is going to get a lot of money into india. if you look at the railway program, and everything else with it the international engagement of global corporate and government is going to get a

lot of investment into india. guy: what i hear from indian businessmen off the record is that he's struggling to step up. the scale of the entrenched interest in the indian economy, much harder to deal with. you have this firework go off in the beginning, and now we are getting to the hard work. maybe it is harder than some were talking about. karan: it is a question of managing expectations. it is easy to set high expectations from the business side as well. he has made all the right noises, backed it up, and that is the most important part. lowering corporate taxes engaging the international community never been done before at this scale. now, india is a country of 1.2 billion people. any change has to be measured, planned, and sustainable.

all these three things mean it will take time. it is not going to happen at the pace it happens in a developed economy. the infrastructure is not really there. he's having to sell the india story build the infrastructure, take it to the next level, and all this is going to be something which will happen slowly but steadily over time. francine: investors often look at a country and say, we need reforms, we believe in this country, but usually you have a short window of opportunity to show that you mean business. how crucial is it that mr. modi finds a partnership for the rail effort? is that the one thing that will give investors more confidence? karan: i think investor confidence is never a six-month window. francine: it could be a year or a year-and-a-half. but what is his priority? karan: long-term investment is a priority.

sustained change, which he has already demonstrated. he opened up foreign direct investment. taking key decisions. there was nobody expected to shake hands and say, give us 36 aircraft, and he signed a deal which has been lingering for the last 6-7 years. similarly, every couple months, you are seeing evidence of key positions coming to the for and being taken. i think that is a clear signal to the investor community come to india. it is ready for business and the opportunities are being opened one after another. guy: great pleasure speaking with you. karan chanana, the chairman of the american. francine: coming up, one of the u.k.'s richest men weighs in on the tax rules. guy: that brings us to our twitter question of the day.

should the u.k. change the non-dam status? ♪

guy: welcome back. you are watching "the pulse." we are on bloomberg tv on the radio, streaming on bloomberg.com, your tablet, and your phone. in an exclusive interview with gp hinduja, he told me there is

nothing to fear from labor. as ed miliband prepares to unveil labor's manifesto, he doubts labor would implement the non-dom tax policy in a way that would determine wealthy foreigners from dashwood -- would deter wealthy foreigners from coming to england. gopichand: we are stuck here in such a manner, in all countries of the world that it is all well taken care. but as i mentioned earlier, i like to analyze things. when someone issues a statement someone comes up with something where the world's attention is drawn. firstly, i would like to complement mr. miliband by coming up with this bright idea

at the time of elections, which definitely gives hope to him. again, i have met him personally. he is very sensible, and a person with depth. he may not look that originally but he has fire in his belly. each and every one who wants to come in election and is appointed as candidate to become the leader wants to be in 10 downing. at the time of election everyone tries to see, what are the points, issues, which can make the work suite? but once he or she is in the chair they start analyzing. london is a beautiful city. why?

you have a good financial center. it is easy to do business. you have beautiful parks. we have beautiful restaurants. we have beautiful concerts, theaters operas. everyone in the world, whether he is a taxi driver a barber, a rich man, a poor man, his desire is to come. do you think mr. miliband, with all his wisdom, would like this to disappear? you think he doesn't know about it? a statement has come. how he is going to implement it is to be watched and seen. and knowing what ever i know about him, i'm sure the way i'm looking at it to see that

london's importance always remains, he will always think carefully, get it analyzed properly by his experts, and see what is best. guy: if you were in his shoes, would you change it? gopichand: it is a good question. i would like to analyze by having dom and non-dom, what is the difference it is making in the treasury? once i'm able to analyze that, and if i think there is a big difference, yes. but in my calculation, at the moment, there are 6000 people who are non-dom, who are paying. i would go after non-dom who may not be paying to see how in

other ways i should be able to increase the revenue. guy: quite a way to spend your saturday morning, sitting down with him. francine: at his house. guy: house is probably understating it. at his terrace, which has a great view overlooking the parade. francine: if you had that amount of money, you would choose the perfect location. i'm fascinated by this non-dom chat. it is interesting to see someone who is a billionaire say it doesn't make that much difference to him. when you look at the ukip perspective, this is unfair, but if you are a non-dom, you probably are thinking of various options if they do crackdown on you. guy: i think people will be thinking about ways of making it work for them. there is always this concerned

that you will get people leaving london. i think london has a little more strength than people are giving it credit for, but one of the factors has been the ability to do this. probably these change, and maybe you get rid of the title of non-dom, but you need to find a way of making it work so that london maintains its allure around the world. i think that was the point he was making. francine: ed miliband? guy: hinduja. if he gets into power, maybe he will say, we talked about this in the run-up to the election. we probably won't hit it as hard as maybe we hinted at. francine: it is a good benchmark if you look at london prices. the high-end has taken a hit. we will have plenty more of that interview throughout the day. guy: we are going to talk about india, the old churchill building which he acquired

converting it into a hotel. we will get his take on the london property market as well. francine: coming up, we look at the battle brewing between the top men at europe's biggest automaker. keep it right here. ♪

guy: welcome back. you are watching bloomberg tv. this is "the pulse their code

francine lacqua is back. guy: china's exports fell 15% last month from a year ago. the exporting decline comes as china grapples with overcapacity. guy: foreign ministers from russia, ukraine, france, and germany meet today to discuss the fragile minsk these fire agreement. ukraine and russia accused each other of violating the accord. leaders say economic sanctions on russia depend on full compliance. 6 american golfer jordan spieth has won the masters at augusta. he matches the tiger woods record for the lowest winning score. the wind makes -- the win makes spieth the youngest champion in the event's history. guy: tiger was five months younger. francine: still 21. guy: the chairman of volkswagen

has publicly criticized ceo martin winterkorn. winterkorn appears to have support from the board. what is going on? let's find out. hans nichols is in berlin with more. hans: this all started on friday night. ferdinand piech gave an interview where he said he was keeping his distance from martin winterkorn the current ceo. piech was the ceo. now he is chairman of the board. over the weekend, we had pieckh's cousin, wolfgang porsche. he came out in firm support of martin winterkorn. he said, dr. piech represents his private opinion. content and faxed have not been coordinated with the family. you look at those offspring of ferdinand porsche. they control about five seats on the board. two of them are with the piech

line -- three of them, excuse me. there are a total of 20 seats on that board. 10 of them are by the works council. another two are by the lower saxony state. you add that up, you get about 14 votes for martin winterkorn. he appears to have enough backing to go on. the criticism is, why hasn't he done more to promote sales in the u.s.? winterkorn himself has put in the namesake brand of volkswagen a big cost-cutting structure. they want to see profitability go from 2.5% to 6% by 2018. sales per, right around 10 million. one thing to look at, the stock up 37% this year, although it is down on this news. guy: thank you very much, hans nichols joining us from berlin. francine: coming up, an

exclusive at the house of hinduja. the man who bought britain's war office building tells us why he is not worried about a slowdown in london's property market. ♪ .

francine: welcome back to "the pulse." i am francine lacqua. guy: i am guy johnson. francine: china's exports plummeted. forecast were for a gain of 9%. it came in at -15. let's get to tom. export data looks pretty terrible. is it as bad as it seems? tom: 15% contraction in exports

is never going to be a good think. so i think it is bad. at the same time china's export needs to be handled with care for a couple of reasons. firstly at the beginning of the year, we see a lot of volatility us so seeing it with the new year holiday. wet a surgeon asked since february and we have seen the collapse. -- we have seen a surge since february and we have seen the collapse. that is not stellar. it is not disaster was either. the second reason you need to handle the exports with care is because with china's factories beginning to game the system. last year, over invoicing china's factories were saying they were exporting more than they actually were. and capital controls to bring to the contrary.

this year, it seems to have been a smaller factor and can be weighing on the headline exports. guy: everybody now looking at the story and seems to get more stimulus, is that the right reaction? tom orlik: i think that is a reasonable assessment, guy. this the latest in a string of weaker numbers out of china. industrialized of retail sales investment all disappointed in the first two months. now the week export reading pointing toward and the low number of gdp in the first quarter which we are expecting on wednesday. i think the question on interest rate and interest rate cut is not if but when. probably this string of weak data will drive it. the more interesting question for chinese policymakers is what to do about exchange rate?

the yuan has dropped a little bit against the dollar. rivals have seen in their currencies fall much further. at that is now eating of the competitiveness of china. the obvious solution is depreciate and get exporters a boost in trouble for china's policy makers if they do that, they risk and accidents -- and exodus. francine: tom, thank you. bloomberg intelligence tom orlik . guy: there is no ceiling to london housing prices. i sat down with an interview with amanda hobart london iconic old -- who bought london's iconic old war building. hinduja: it started from 1919.

we are completing 100 years. he always believed that the best investment and properties and he spent his money. he always used invest and properties. he was of the strong belief that is the best asset and it will keep on appreciating. so far, your question to the iconic building always a concern. you will not believe, we got into it only three weeks before. people were working for it in six months, one year before. and when i told my team, my team said we have a lot to do.

the time is suspicious. i said, i do not believe it. we have to study what ever -- with we like to do and -- and what's we like to do and after the end of the day, if we're realistic and our objectives are clear i do not think we can do it. so i said, ok, what do i need for this besides my team? i need you to work with me. and so i have a good friend in madrid whom i trust. he used to be the x finance minister. there been a lotto jobs here. -- a lot of jobs here. i said we are running against

time. can you take a list in this? but i do not want only your expertise. i do not need your money but i want your blood in it. that means you have to invest something so i get confidence that what we are doing is going to be the right thing. he says, i like you, i am with you 25%. i will send my team to provide everything. they do not know what. we provided the local know-how and expertise, which we had, what we had gained from restoring the terrorists. -- the terrace which took us five years. i put 2 together and we

participated and everyone was shocked how it three weeks we had a. -- and we had it. you will say what is behind it and what inspired me? firstly, everybody said it was difficult to win. [laughter] gopichand hinduja: i said even if it is difficult, i have to work hard. second, where's the money going to come from? in a short time to plan everything. i said, fine, it is a challenge. we were related. then the question, we had to give a presentation, what are we going to do with this? at one time, is used to be the war office -- it used to be the war office. [indiscernible] i said, how about converting

this into a peace building where poor middlemen rich men, can all of visit and have something to do? and create something unique in london so that each and every british, each and every visitor who comes to london, he enjoys it? then i was -- it is a great building. the minister counsel and all security because of the address. it's all to be taken care. i said, fine. this is a challenge so i love it. i want to move forward with it. i discussed with my brothers and told them, i am going ahead. they told me, you know your age? i said, yes.

i am with my experience the youngest. i am willing to take the challenge. we went ahead and now, i can tell you, was it it's completed which is going -- once it is completed which will take about four years, each and every human being will feel proud. at least, that is my vision. and i am hopeful that it is going to help me to achieve that. guy: sounds like it is something worth seeing. give me a sense of where we are with london property right now. economic headwinds, political headwinds very much representative. do you think london property has seen its peak? your father talked about it and the fact you should always put money into property. how do you see it here? gopichand hinduja: the properties in london they will

always keep on growing. when i say prime properties, i am referring to wrestle and and mayfair -- restland and mayfair. the property prices, every time i found, a tundra panels per square foot -- 800 pounds per square foot. and then i found the same property and then the same property 4000 square feet. what ever estimation gradually it has been going. the ideal state property is cyclic. you should have a holding power. if you do not have a holding power then you should not to be in that business. if you have a holding power, you are never to worry. it will always pay you then any other business what you could

have. your model has to be correct. and it is something hmm, which will always be the work. at the moment, the property prices reflect there is not much buying and selling. there is uncertainty. off of elections. wasn't that gets cleared, -- wants that gets -- once that is cleared, i seek a new life will to the property. guy: his dad always said you have to spend money in property. francine: in london? guy: anywhere. he believes you have to have staying power and the election and the associative issues are causing an prime london to slide down a bit.

francine: a slow line or flatline is then it is slowly going up again. he believes whatever is in power will take care of the wealthy. guy: he believes you see that -- you could maybe change title but you need to find a way of making it work whether the labour party oratory party. he said he is not taking either side. francine: he is bullish on politics and property. guy: he thinks it is a good story. he thinks people will come to london. francine: that was a great interview. we will have plenty more throughout the show. you spoke to him about modi and india and europe. guy: also, golf, hillary clinton through her hat into the book -- into the presidential race. we will talk about that. ♪

guy: you are watching "the pulse." should the u.k. change the non-dom? we talked about it last week. that is our twitter question. tweet us. francine: hillary clinton announced she will run for the white house in the 2016

election. this sir second campaign. -- this is her second campaign. let's get to huntsville. -- let's get to hans nichols. she used social media. hans: is not about capturing new voters you can sign up with her new website. in her way, social media is more than previous elections and she will try to be the vanguard. $2.5 billion is what they expect the campaign to speak of hillary and hillary's related groups. this time around, i suspect we will see more in tech companies. they will be the guys getting rich. as for the official announcement, eight years ago she said i am in it to win it. this time she declared a rationale. hillary clinton: i am running for president.

americans have fought their way from tough times. every day americans need a champion and i want to be that champion. hans: hillary had a lot of advantages. her grades is she does not have a serious primary opponent. absence, democrats have done very well. -- her greatest is she does not have a serious primary opponent. other things in her favor, the economy 5.5% unemployment. if it hums along, it looks good. the challenge is how do she differentiate herself under the president she served? especially in global hotspots? syria and iran. hillary owned those issues as secretary of state. that is her challenge. how does she play the obama card? we saw al gore do it and he ran

too far from clinton and he lost a contest in rates. there is a blueprint of not how to do it. guy: reaction from the right for your gop candidates talk about her overnight. hans: they are going to take their shots at her. it is not all that important what candidates they want republican super pac said do. but cause of the supreme court decision, anonymous donors can give unlimited amounts to the super pac's and they will send -- spent a lot of time hammering her. running as an incumbent without a challenge will be muted abide that. it'll be a lot of paid media taking shots at hillary. on the other side, paid media and onto media. even though you are bombarded about how awful hillary clinton is, it may not move the needle. the next few months there will

be vicious fight within the republican party figuring all hold a nominee will be. all of the decisions and there are many from minimum wage to what do you do about immigration to tax reform. those will be laid bare and hillary clinton potentially coast above that. if she does it to her strengths and invite some ambitious democrat to try to take her on it. francine: thank you. husband nichols in berlin. the race is on. -- hans nichols. i am excited we could have a female commander in chief. guy: hong kong continuing to gain after last week. mainland chinese investors in use and exchange link to hot for bargains for -- hunt for bargains. francine: one person is warning that there is a storm brewing in

the united states. guy: 4 episodes of "game of thrones" has been leaked. the leak appears to have originated within a group that hbo approved to receive the episodes. it premiered in it the u.s. last night. guy: more from our exclusive interview with gopichand hinduja . guy: we will hear what really makes him tick. ♪

francine: welcome back. a little bit of an fx check. what the turkish has been doing. than them losing to live in three weeks. we have a new record on the turkish lira weakening. it did weaken and the last couple of weeks. something a lot of investors are looking out for. a new record. guy: excellent. francine: we like a new record bring it is exciting. guy: more with the interview with gopichand hinduja the brother of a family of billionaires. i asked what excites him. he has been around for a long time. how does he keep going?

what gets him of in the morning? he says -- gopichand hinduja: if there is no challenge in the day, my day becomes boring. i like to do the most difficult things. it is not only with me, we all watch her brothers are like this -- all 4 brothers are like this. we get up early. our day starts with the yoga meditation, and then, my wife is similarly as she gets up at a quarter of 5:00. she has a separate bathroom but she goes into the bathroom for prayers and i am busy with my ipad and iphone and bbc radio sending out e-mails. and trying to see what changes have taken place in the world and how is it going to impact the world. what will be on my businesses?

and i like to never act as a chief executive of any company. but i like to see in each and every company what is happening. so, i get -- on these reports some of them, the one which -- the one which is having difficulty, i try to send it there my messages and guidance. look, this is what is to be done. and never learned this from harvard or stanford or anyone. it is the experience with the witches had made me. -- which has made me. in my life, i have done each and everything starting from typist to a clerk to a banking export.

francine:-- guy: it was a fun morning. so varied topics. francine: he has a great imagine. it's like three houses put together. guy: the royalty used to live there. francine: it is a block. on radio, the first word is all. for our viewers, another hour of "the event will allow for more from gopichand hinduja and how to improve relations with india. francine: we will be talking to vernon healed. -- a vernon hill. we will ask him about whether he plans an ipo and whether it is more visible to attract customers from the big 4 and the

u.k. to metro bank. guy: we will take a break. just a reminder, you can follow us on twitter. let me show a the 20 question of the day. should the u.k. change its non-dom status? we will see you back. ♪

francine: running for president. hillary clinton joining the 2016 race or the white house. guy: infighting. the stock is taking a hit. francine: the house of gopichand hinduja. one other u.k.'s richest man gets in on the non-dom fight and the economy. guy: a very warm welcome to those waking up in the united states. i am guy johnson. francine: i am francine lacqua.

guy: we both begin with mr. modi's tour and he is set to me with german chancellor angela merkel. let's get more from hans nichols. hans: both are saying that as an opportunity for trade italy's in modi's -- for trade and in modi's terms, huge." it is 60 billion euros and that makes germany, india's largest trading partner in the euro. they are far behind. other traders, swiss is ahead of india. you look at germany's trade with china and close to 100 55 billion euros. almost 10 times to trade with india. that is what the focus has been. there's a big trade fair. that is where they met yesterday.

both sides are looking for each other. mr. modi has been clear. what he needs to do is clearing up the democracy and make companies easier and partnership easier and give investors a little more certainty. india will go on a spending spree. they was the money on energy turbine. their energy consumption is set to rise. and rails. that is a good for companies. on the other side, the defense side, they are spending. in france, he announced they would buy a french fighter enough not the euro fighter. angela merkel's response was that is competition. guy: i was talking to gopichand hinduja and do was say whether the critical things that will happen here is india needs to be treated differently and europe needs to wake up that he needs to ease the visa story and make it much more simple for india and a european company --

economies to interact. he sees that as a big area about on that we hearing on their front? hans: i have yet to hear it. maybe it will change after modi's trip. make it a lot easier for indians to get visa to work and study in your. -- in europe. that is not been high on my reading of the german press. you have heard modi flick at this yesterday about the difficulty of doing business in india. streamlining the bureaucracy. as somebody was navigated the german bureaucracy is not a smooth his either. how do knocked down some of the barriers and get a little bit more investment? remember, their growth projections for this year is 7.4% right in line of what we are expecting in china. guy: hans nichols, thank you. our international course --

correspondent in in berlin. firstly bank we -- francine: we are joined by our guest. we haven't talked about india for the past five months -- we have a bit talking about india for the past five months and that next china. we told about transparency, what are the chances of him actually not meeting what he has promised , falling short of expectations? guest: the chances are quite high given the level of expectation placed on mr. modi and the bjp when they came to power on was a year ago. it was almost that up for the new administration to fall short of expectations. as it happens, i think to put this in context slightly mr. modi has been more successful

than his previous successors pushing through some of the bigger reform that india needs. lifting economic growth in terms of increasing an opening limits for direct investment into the country. and so, there's been slow and steady progress. the really big bang the spectacular levels of reform that people were hoping for was always going to be a difficult task some meat. guy: when did it become clear? i am hearing behind the scenes that stepping up from state to nation is a difficult step. we thought it would be relatively easy. it is turning got to be harder. entrenched interest are firmly entrenched. shilan shah: it is incredibly difficult. they have a mandate, a strong mandate, one of the strongest in the lower house of parliament which has control over certain areas of economic reform and

potential of what the bjp and mr. modi lacks is a mandate and a stroke majority in the upper house done strong majority in the upper house. it is much a bit constrained. -- au stroman -- a strong majority in the upper house. to higher and fire employees and also to acquire land -- hir ande to fire employees and also to acquire land. india is largely agricultural and farmers rely on agricultural land for their living. these are difficult constraints that the upper house of parliament is likely to block any kind of reform to make it easier to do business. francine: how do you rate his movement approach? here traveled a fair bit, one of the prime minister who has traveled the most. jack could only do good if he

has the right message. has it worked with investors? shilan shah: i think it is a start for he it is one thing to be speaking rhetorically, mr. modi comes off as a good speaker. on these trips, he is trying to have business with the u.s. and one of the -- he is going on to visit canada and will be the first indian prime minister to visit canada and almost 40 years. he is talking the right to game and there's a lot of rhetoric. a lot of it is not positive. what a need to be matched is with reform on india on the ground as self. liberalizing the labor market and easier to acquire land. from germany and france and to acquire land and begin to set up manufacturing so the manufacturing hub that the

people have been talking about for many years now. guy: what does europe need to do? gopichand hinduja talked about visas being where the critical areas where we need to make advancements. the opening of the doors is not just a one-way street, it is a two-way street. europe needs to step up. we are really bad at exporting to india. shilan shah: that is right for you as the opportunities are there in terms of india's large expanding middle-class. begin trade in terms of the country's enormous consumer sector. you could say they europe has been fairly slow as the u.s. to be fair and tapping into these opportunities. you're right in the sins is a two-way street. india needs reform. -- you are right in it is a two-way street.

and be able to start having a to the opportunities, it is something -- to start having into these -- tapping into these opportunities, it is something. a lot of this has to do with the physical environment. it has been a sense of held back from investing in europe given the difficulties to operate there. was mr. modi can get on top of this and push through reform -- once mr. modi can get on top of this and push through reform. especially the slow rates of growth in europe compared to india. francine: europe is set up but they have to set it up. shilan shah emerging markets economist. guy: what else is on our radar?

former u.s. secretary of state hillary clinton announced she will seek the democratic nation for u.s. president. she made the announcement in a web video yesterday. it's her second presidential run. she would become the first female. francine: wolfgang porsche has thrown his support behind ferdinand piech after he was publicly criticized by porsche's cousin. he sets keeping his distance. the comments had not been correlated with the family. it is a massive family feud. guy: on a huge scale. here the u.k., ed miliband will pledge he will announce plans to cut the deficit every year. the pledge comes as part of the party manifesto unveiled today. guy: -- first bank -- francine: it brings us to our 20 question -- should he -- it brings us to

our twitter question -- we will be back. ♪

guy: welcome back. time for more with my sick down interview with the billionaire -- time for more my city down interview with billionaire gopichand hinduja. what about the company he runs with his brothers? they have money in energy health care and media.

of course, real estate. i asked for his thoughts on the indian prime minister, mr. modi. he told me modi's government has change in the face of india. gopichand hinduja: you see germany has been the largest exporter before modi came in. not just exporter in the world. quite strong in manufacturing, in engineering, in technology. they are hard workers. now, this is a question i have been talking to the authorities here also in britain. that we have some plus points which have not been to help our better political as well as economic relation.

in my view britain has a chance to be number one in europe and india for historical reasons the laws are british law. the language is common. more so than indians speak english but not german. but what has been lost is today britain is no more having an edge in manufacturing no more edge in engineering and no more edge in technology. but yes, we have consistencies. we can provide group services. more than that, you have 1.6 million people of indian origin who they call nonresident indians in india.

and here, they are known as british indians. they have the maximum knowledge of doing business in india. there has not been -- this should have been used to see how joint ventures how the british promotion has been taken. so far, every government which gained always took laws and people who have not done business in india. now, my strong recommendation to the new prime minister, whoever comes, even if david is back in the chair, they should try to see how to use this intelligent pool which is existing in

britain if we want to take an edge from european countries to build up our relations. secondly on the political side, britain should never treat india as a neighboring country. india is a democratic country with full on talents. a peaceloving country. they stand by what they say except all of the billions, except on the costs, somehow the policies are made here. they are made for asian policies. how can you compare the neighboring countries of india with india? so, india has to be treated independently. all of the technologies are inevitable in britain, the gate

should be open for india. india will use it. plus, the first country that opened all of their technologies for you germany is doing the same. americans are following. why not britain? today a very small country in india they have full access. why is not similar access to india? with whomever you want to the firstly to understand each other properly. have affection and love for the 2 countries. if you meet at both sides, they will always say we are best off with political relations. david did a fantastic job.

he showed the same ghandi which was not liked by the british. it was put on him to put a statue on westminster. all of these things are good and i appreciate it. one has to look at the problems. for immigration, how can you, greek indians, do the same box like the neighboring countries? the indians have to be treated differently. but that will have a good impact on a decision-making even economic things in india. this is my view. this is my experience. this is what i feel. look, we have acted between many countries to build up economic as well as political relations.

and keeping all of that in mind i am british. but i have in my heart the indian also. we have been outside of the country for 100 years. but it doesn't mean we do not love india. we love india. we follow india. we know how to do business in india. we have in the last 10 years, 15 years, of an empire of desk built up an empire of more than $20 billion -- build up an empire of more than $20 billion. it is not that we will full of attention on india but because of her heart was that there -- because our heart was that there who wanted to do in india. we meet lots who do reforms. we were unliked by the rich indian tycoons because they were worried if hindus come in then

we would laws. we had many obstacles for you mr. modi's government has changed the face of india. he has a good vision. he is going in the right direction. but we should not expect things to happen overnight. it is going to take time. we have to have patience. they are running at 7.4% gdp. it may improve. but again, as i told you i like to analyze things -- is it all because of modi? the government? no. the crude prices have gone down to the 50's. the inflation has come down.

economics are cyclic. so when the earlier -- was there, the inflation had gotten out of control and there was no implementation, no decision-making. the government has become a lame duck. now this government picked up all of the weak points and was able to get absolute majority. with the absolute majority and the good intentions and the brilliant work mr. modi has he has created a good environment for investments. so everyone is running. earlier government they wanted to come out and showcase india. not each and every leader of the world wants to work with india but again, i want to alert india -- if they lose this opportunity

, if they are not ready at home hmm again this opportunity will be lost. this is what has happened earlier also. what at that time, the government did not have absolute majority. now it is doable. i am hopeful that india will change, my brothers have been trying for the past 20 years to see how india could become at least third or fourth economic elite power. guy: gopichand hinduja speaking to me on saturday morning about what next for india. francine: it is a fascinating conversation for he talks about self and what makes them take and a u.k. election. guy: we have talked about what is happening with the non-dom story. he talks about ed miliband. he doesn't think the non-dom

story will change it that much for even if it doesn't affect him. francine: that is our twitter question. shouldn't u.k. change its non-dom status? we are back in 2. ♪

francine: welcome to "the pulse ." guy: vw stock big as the fight for control of the business he saw.

the family as a war it seems pretty who will come out on top? i think a 1% drop today is pretty -- francine: compared to the last couple of months. ♪ :

francine: welcome back to "pulse".." guy: these are the bloomberg top headlines. francine: china's exports unexpectedly slipped in march. overseas shipments of 14 moy 6% last month from a year earlier this as china grapples with over overcapacity and property fall. guy: a meeting today to discuss the fragile cease-fire

agreement. the ukraine and russia accuse each other of violating the accord. they say the sanctions on russia depends on full compliance. francine: jordan spieth has won the masters at augusta. his 18 under par total gave him a four-shot victory and matched tiger woods's record. it makes him the second youngest champion in the epbtvent. second at 21. guy: they were 21, tiger five-month younger. and tiger did well. top 20 finish. not bad. from golf to the markets. john: i want to go there. we will talk in the break. equities topping $70 trillion. ft-si 100 all-time high friday driven up by the consolidation. it is down by a third of 1%.

talks last year european stocks having the best week since january and euro worst since 2011. today a little flatter. nothing in the dak.a.x. half of 1% on the ft-si in italy. stoxx 600 there at about near all-time highs. bond market one big headline. german 10-year record low. we have come a little higher the yield there. euro 1.6% of the german 10-year. the big question is can we dip below zero. steven major saying that sure the next month we could challenge that zero% mark. going forward he is getting a little more uncomfortable with the view that yields can only can one way and that is lower. sizing that view the last couple months where the 10-year in japan doubled in the space of a month. that volatility could that come

to europe? in the f.x. market the turkish lira take being a beating. dollar-lira going to a record high. aussie dollar awful trade data out of chin. ex-ports dropping by 15%, imports sliding by over 12%. that is a concern and noisy data point but a concern. we have a g.d.p. release later this week set to come into the weak he was level since the global recession. aussie radar down by 1.5% headed toward a six-year low. stpaoeufplt john thank you very much indeed. let's talk about what our next guest is talking about. he says it is an communicating period for the u.k. ahead of the election. francine: he is vernon hill around symmetric shall -- and metro

bank is a challenger here. you say that the four banks there is a mistrust but you are finding it tough to attract customers. why. is it just that the britt will stick to his bank? vernon: this is the fifth bank i have done from scratch and we are glowing at 100% a year compounded approximately 500,000 have switched to always. there is a much more rapid growth than i saw in the full-court market and the brits say to us thank god we have a chase. guy: what would you like to say the next government deliver to make your challenger bank challenge even better? vernon: we believe the market should be free. everything they can do to break the cartel of the big five banks and they have taken steps to

make the market freer and give the consumers more choice. francine: how do you attract new customers? is it cheaper products? you have these big megaretail banks but as a customer why would i switch to you? vernon: it is based off the model in mark and apple of banking. you buy the i-phone 6 because of the apple experience and metro bank is that same type of model. people switch to us for an unusual service and convenience experience delivered in store, online, mobile. they are making a retail decision just like you would choose to shop at john lewis. guy: how much of the problems we face in the u.k. banking market is of the u.k.'s creation and how much is regulation from the

e.u.? vernon: first of all i would like to say the business environment in britain is way better than it is in america. not just in bingeing. i found -- banking the. the burden on business is much less this britain. we are getting more rules from europe and that is a risk to the british banking system that overtime they become more european. francine: what is your biggest challenge? you are still looking to the i.p. next year? vernon: we expect to make a profit in the fourth quarter this year. this was our plan from the beginning to grow on a very large scale very fast feel the fact we made a loss the first four years we are not upset. francine: it won't make a difference depending on who is

in power may 7? vernon: i don't think so. guy: you talk about technology. you talk to the big four banks that is one of their biggest headaches. we have seen things fail or produce major problems for customers. do you think -- how big an advantage is that and does that become increasingly obvious the further down the road you go? vernon: yes yes and yes. the big banks are broken. they have admitted they are broken. you wonder if there is time to fix big broken banks with big value i.t. we have a fresh brand-new i.t. the best in the world and it is a tremendous advantage. francine: how comfortable are you with the i.p.o. in 2016? did you think it will go through

no matter what and what kind of evaluation are you looking at? vernon: we have raised $650 million pounds in capital. that is not a problem. francine: why do an i.p.o.? we talk about attracting customers and it is very difficult to attract customers if people don't know about you or what you do? is this a big p.r. exercise or is it to grow? vernon: our brand awareness in greater london and southeast is very high. we have raised a substantial amount of money. it will be time next summer to raise the next round and time to float. one of the interesting things about this bank and its capital raise the shareholders are 95% american shareholders and it is obvious to me dogleg for a-- obvious to me doing there for a long

time that they are more ready for growth than the british market. guy: you also want to be a ft-si 100 member by 2019. i. ipo'ing is one thing and changing your structure in the market kind of takes you in a different direction but it is time to make that move. is being a member of the ft-si 100 a great p.r. story. you say recognition is high but to say we are a ft-si 100 company comes with an enormous amount of credibility. what kind of advantage would that give you? vernon: it gives you some but doesn't change the basic model and would not change your growth rates. it is a plus but you wouldn't raise capital a certain way just to make that happen. guy: and when you look at the growth projections to get to be a ft-si 100 company what are the major milestones to get there?

do you think you are on a track to achieve that? do you think that you have still work to do in order to achieve that? when you talk to staff and try to motivate them is that the kind of thing you use? vernon: no, we don't really about how we grow. we have a reverse problem. we have growing 100% plus compounded so how do you manage 100% growth year after year around not only manage it but make the experience better every year. great brands know we have to deliver a better experience next year than we are delivering this year. francine: but how do you manage the growth and what lessons can you learn from the u.s. do you want to replicate commerce bank? vernon: it is the exact model we ran in america. almost everything we did in america works better in britain because it is the first time the

british consumer and business customer has had choice. we are running almost identify cattle -- identical to what our model was. francine: i like that, made for the americans but works better for brits. guy: coming up another big week in the british election campaign. pledging to narrow the deficit every year. we will have a preview after the break. ♪

francine: welcome back to "pulse" live from london on bloomberg tv. guy: equities in hong kong continue to gain after sustaining the biggest raleigh last week as mainland chinese investors use their link to hunt for bargains francine: he warns the fed has,encouraged master increase in leow grade debt issuance. guy: the hit shows leaked before the premiere and the blockbuster theories leak appearance to have originated in a group hbo approved to receive the episodes. francine: u.k. election

campaigning gets increased today. guy: ink we should go with the game of thrownsnes party. we are following the developments and. >> we are talking about labor because the top of the hour the politics show and we are going to have the headlines from that labor manifesto. they are lunching it this morning in manchester. a chance to narrow the budget every year and on that measure they want to see the surplus set by 2020. they are likely to take aim the conservative party on unfunded pledges.

they want to spend and extra 8 billion pounds and trying to turn the tables on the conservatives. we have been talking about when they are going to do this. and it seems maybe with the labor talking about fiscal responsibility accusing the conservatives of unfunded peninsula pledges and all things have signed. francine: it depends on whether you are voting on a personality rather than ideas. anna: i know guy will be fascinated the green party have their vote big but vote brave in britton but it is not light to find brian may accompanying them in london. francine: u.k. rock. one could argue that. he is -- guy: it is funny where badgers

are coming to it. the green measure. anna: we lost our international audience on the badger reference. bad tphaousnews north of the border they have better news on the more national stage but north of the border the latest poll shows the shift to the s.n.p. last week and now 52% in scotland, labor 24%. that is quite a change with the last poll from last week which shows a move toward the s&p. guy: you are working pretty hard this week. francine: i'm excited about the selection. that is is

that is is probably because i'm not a brit. anna: we are communicate and you are hosting one debate that will be filmed wednesday. guy: not live. played out. anna: on thursday. you can be in the audience and sign up at bbc.com. you can tweet anna and get the questions in. guy: we will try to have the twitter war up and running. we will be making this very interactive. francine: i might show up. guy: there is always going to be one heckler in the front row. francine: just heckling. anna thank you. our bloomberg politics show is next with guy and anna. guy: that is is what is happening on this side of atlanta. should the u.k. change its

non-dom status? francine: we will go to washington, d.c. next for latest u.s. politics. hillary throws her hat into the presidential ring and we will examine her 2016 announcement after the break. ♪

hillary: i'm running for president. americans have fought their way back but the deck is still stacked in favor of those at the

top. every day americans need a champion and i want to be that champion. francine: it is official, hillary clinton has hey announced she will run for the white house in 2016. if successful she will be the first female commander in chief. we are joined by our senior writer. hillary used social media for her announcement. how significant is that? >> i think that she thought it was important to have kind of a soft launch to, instead of doing a big rally somewhere she wanted to sort of tip toe in all toe there is so much attention on her that is not possible. after this she will go to iowa the earliest voting state. after that to new hampshire to meet with, she says, small groups of people to sort of underline the idea that she doesn't think her nomination is

inevitable and as she said in the video yesterday, will get out there and earn every single vote. so rather than coming on to the stage again with a big splash she wanted to do it in a subtler, smaller way. guy: she says it is not inevitable that she will get the nomination but nevertheless she doesn't have any significant challengers particular will i to the left of her. in some ways how big a disadvantage is that? melinda: it is both. it is an advantage that she doesn't have to spend her money fending off a real challenger. but it is a disadvantage and in a recent bloomberg poll something like 72% of democrats said they wish she had a real opponent. the feeling being that she really needs to have that practice to have that training

session to get ready for the general election. now, you could also argue she's been in public life so long she doesn't need it but she's not typically been a very strong campaigner. i think the feeling is that she would just benefit from having a strong debating sparring partner on her left. francine: melinda, what will we see from her the next couple of months? she's considered to be very stately. are we going to see a more friendly and intimate hillary clinton? melinda: that is the promise she's going to show a warmth that people say she's only shown privately in the past. that again she's going to win people over in the small groups. that we are really going to see some specifics on the policy side, too. i think that is the most important thing.

that people really want to hear a rationale for her running. yes, she's been in this game a long time and the assumption all along is she's going to run but what is behind that run? what is the policy meat on the bones? and what is her bottom line motivation? what one thing or what one issue really motivates this run? she has said that her new granddaughter short -- charlotte was something that pushed her over the line and she's running as this wise grandmotherly figure. we will see how that turns out. francine: melinda thanks so much. guy: let's wrap up the show. we have been talking about the twitter question should britain change the non-dom status. they put the tax in and scrapped the unanimous dom london will

get battered. francine: we have another one this one saying the system is unfair and archaic. so he thinks we should scrap the non-dom status. this is back to the point a lot of british entrepreneurs have been making it is an unfair advantage because they are fighting for market share with non-dolphmes-- non-domes that have more status. he says when you get into the detail there is plenty of opportunity. "bloomberg surveillance" is up next with tom keene his team in u.s. here in europe you have to the pleasure of seeing guy johnson. we will be talking about politics and the labor party and

details of that. ♪

tom: hillary clinton begins the campaign going report is to report is in iowa. euro dashes toward parity as global markets bring risk on.

i.m.f. meetings are later this week. don't talk do rich people help poor kids get an elite education and excel. good morning everyone. this sis is "bloomberg surveillance" live from our headquarters new york monday april 13. i'm tom keene and with me is olivia sterns. we will get straight to the top head lines. olivia: hillary clinton says she is hitting the road to earn your vote starting her quest to be the first woman president. hillary clinton: i'm running for president. americans have fought back from tough economic times but the deck is still stacked in favor of those at the top. every day americans need a champion and i want to be that champion. olivia: clinton is the first democrat to announce she is running. tuesday and wednesday she will campaign in iowa.