st estimate of growth. growth is expected to slow for a third straight quarter. they will dominate ahead of the open. >> we are looking at a couple ticks slower. banking is going to dominate the agenda. we had the man saying they were sweeping around the periphery of europe. that is where they are based but they are sweeping up

properties around the periphery of europe. let's nip into some of the individuals. rocking the iphones in china. selling more in china than the united states. let's go back to some of these numbers. he basically said he was cautious. on the consumer side, they are doing quite well.

the united states of america with a huge budget. what a storm he said of numbers. they are spending 2 billion on research. they really don't like the language they are seeing. dollar yen is so flat. we are waiting for the bank of japan. the consensus is they won't go for any more movement.

will they go for more negative interest rates? 24 hours to go. >> when you flip that board, we got the open down. a big move after profits surged. plenty of bond news as well. the october 2016 note yield falls below zero for the first time. let me take it back to corporate's. the big earnings story came from the other side of the atlantic. it was a huge quarter for apple. profit rising 33%, led by big iphone sales. they have given some to investors, boosting the return

to $70 billion. >> just to remind ourselves this is a company worth three quarters of a trillion. profit up 33%. look at the money it is bringing in and terms of revenue. $58 billion. what does that mean? that means every single hour they are making $27 million. this is a cash cow. the caches going back to the investor base. $70 billion is how much they up it to. they are trying to give it back wu the investor base.

let's have a look at what are potentially some of the drivers. you are looking at china in particular. this is the first time we see sales up more in china than in the united states. there is a calendar affect in china's new year. they are saying they see china as a significantly higher portion of sales than most parts of the world, significantly higher. clearly this is an area of growth. it's not all about the iphone. it's the mac as well. there are products across the board doing well. if you are digging into concerns, they did woo the investor base with the next

quarter. there are challenges to come. we have seen this for the other big tech giants. there is going to be more pressure. if you look at the numbers sales were up 27%. they say the dollar is going to have more pressure to come. they are going to have ipads on their mind. the tablet is an area they installed several years ago. tim cook sounding bullish. they teamed up with ibm.

china can see some growth. ipads are going to correct themselves. that is the growth to watch. supply is the issue. they say that will come, and they have great responses for the apple watch. those sound pretty good. >> thank you very much. let's keep the conversation on apple. we are joined by the chief investment officer who helped manage 26 billion pounds in assets. daniel gleason is also with us. gentlemen, thank you for joining us. i guess we should start with you. do you expect that to be a theme

or just a one? >> part of that is definitely a one-off. seasonality is different. there is a strong growth trend in china. mainly because the iphone is relatively new. mark: arguably this was an iphone designed with asia in mind. >> very much so. the larger handsets are very popular and asian markets. on those very simple lifestyle factors it makes a surprisingly big difference in people's preference for handsets. >> you and i have talked about apple before. that seems to be all there is.

the sales of iphone are unbelievable. and my investing in that or a $17 billion boost to a capital return program? i guess investors like the sound of that. >> they do indeed. i suppose the real key for whether you want to invest in the future is how the iwatch goes. they were talking about possibly margins not being quite as good in the next quarter for the iwatch as well. that might be a slight concern for investors. they have had success with the iphone, the ipad. they haven't always had success with every product. mark: i have gone back-and-forth with a million different people. we needed a new product line

until we didn't because iphone sales went through the roof. what are the expectations? >> we expect 19 million units per year. the key problem is it is very nascent. it's not an established market. the thing with the watches, they had to completely redesign a new user interface. completely different everything compared to the ipad or the iphone. that is why you are seeing this warning. that brings a lot of extra risk in terms of how will people react. there is a lot still up in the air when you look at how apple hasn't been stocking a lot of the units and asking people to order online. a lot of people think that's because they don't know which of the models they want to be buying.

that is one of the big problems apple is going to be facing. mark: i can tell you everyone had the headline the dollar takes a bite out of apple. it didn't happen. a lot of people thought it would. do you expect the dollar theme to play out and then drop out of the numbers? >> are believe is the dollar will remain one of the strongest currencies in the world. i think we cannot avoid a strong dollar theme. it depends how the hedges run out. that's going to be key for the next couple quarters. mark: thank you very much. thank you for joining us this morning. coming up we will bring you back here to london. bp more than doubles profit estimates. u.k. gdp might lie. more on why that could be a

deceptive political talking point. yanis gets benched. we will talk about that and more after the break. ♪

>> this is "on the move." you might have heard it's a big morning for oil mergers.

bp crushing estimates. ryan chilcote joins us for a little bit more. you expect profits to be better in the refining side of the business. >> i would say it's down to their secret and not so secret weapons. the secret is the trading arm. they simply said it was a stronger contributor this quarter than a year ago. a very british way of putting it. remember, traders make money on the volatility of the oil prices. then the not so secret weapon is they do refine and lower the oil price. margins have risen sevenfold

year on year. refining contributed $2.2 billion for profit versus a billion dollars worth of profit a year ago. this is massive, a 19% decline in profit as the price of oil fell by 50%. from $108 a barrel on the first quarter of last year versus $50 a barrel for this year. some analysts thought the prophet could fall by as much as 70%, particularly because of their exposure to the natural gas business in the united states, which has been hit hardest by the shale, oil and gas revolution. bp makes more money in the first quarter of this year than analysts thought they would make in the first half of the year. mark: another beat at total

as well. >> they also have refining business. they refine more oil than bp and shell, despite the fact it produces less oil. that contributed to a billion dollars worth of profit. they also have a trading arm. i think what sets them apart is production. the price of oil is down by about half. they are producing more of it. the rate of production growth is the fastest it has been in nearly a decade. that is good news for them. that is something they will be discussing in an exclusive interview we will bring later in the day. two quick points. we have shell coming out later this week. they should do well now that we have seen strong results. their shares are pretty much unchanged. what i would point

out is what separates the european oil companies from the american companies is a 10 to have trading arms which the absence of which may hurt american oil companies. we will hear from the largest and most valuable oil companies as well later this week area did -- later this week. jonathan: are we learning quite quickly bp has done a lot of the hard work and they are better off now and prepared to weather the storm of collapsing oil prices? >> you made the point refining margins are quite volatile. they have gained from the falling oil price and the spread as well. i think overall it is great to see a beat like this. will they consistently produce decent refining products for the rest of the year? we shall wait and see.

it has been speculated this is a takeover target. do i invest for that story? >> i think my experience is you buy a stock for a takeover. i would say you don't want to do that because you could be waiting a long time. david cameron has already been suggesting the u.k. government would be very unhappy if the u.k. would take over. what i would say is the yield is interesting. there is obviously not much this morning about deepwater horizon problems. the litigation goes on. some settlement is hope for this year. i think they will decide where they go looking for the

dividend. 6% looks great. whether that is going to be there and they have to pay a lot of litigation costs, we shall have to see. mark: everyone is thirsting for the yield. the stoxx have been outperforming. is that a trend you expect to continue? >> i think some of the stocks are looking highly rated. ok in the energy space, materials. you are getting high yields, but you have more quantity like returns. you have to be cautious. those where you have predictable returns, they are multiples getting to the high teens. the yields are not quite as high as they were. perhaps people will be reevaluating whether or not they look of value. what i would say is i think the general trend towards equity yield is going to continue. we are in low bond yields.

those are not going to get back to what we saw five or 10 years ago. >> we are in low yields. the yield was falling below -.2%. do you expect that to continue? we have had a rebound. is qe going to keep a lid on that? >> to some extent. we have to see more growth. at the moment growth is pretty lackluster. we need to see growth to see if we can get an inflationary element and to the economy. in the u.s. and the u.k. we are bottoming out in the inflation cycle. unless we have a massive

slowdown in commodities. >> we go to the equity markets. mark: i want to check in on copper. a decent move. i think the chart shows it better. the chinese central bank is planning an easing. if i can bring you more, i will. china is the biggest consumer of copper. stay tuned. we are back in two.

>> welcome back. i want to show you were equities are. the ftse 100 is lower. it is going to be about one data point. u.k. gdp expecting to come in at 0.5%. that means growth has slowed in the u.k.. the politicians will jump all over that. right here in the bond market in france, unbelievable move. the 2-year note below that ecb deposit rate. this morning is about equities and earnings.

bp smashing estimates this morning. bp stock up 1.5%. daimler of 41% surge in profit. we go higher by 2.5%. then the big move lower is commerce break, raising $1.5 billion to try and boost capital. that index is a tale of two stocks. this one goes much lower, down by four and a half percent. the bond market is interesting. the equities are captivating. we are going to talk about that after the break. we talked to the ceo, who announced plans to step down by the end of the financial year. that conversation is about the u.k. election. join us for a conversation with andy harrison. ♪

jon: welcome back. we are at bloomberg's european headquarters in london and i'm pleased to say that bloomberg business europe launched today. in em ea alone that means access to 850 business reporters analysts and economists. if you view this from europe you will get news from europe that is relevant to you. i can tell you right now that in an our, you will get news on the u.k. gdp as well. this morning we will get that

last piece of major economic data before voters head to the poll. there is often a difference between the initial estimate and the final one. anna edwards is here. that tells me, should i forget about what comes out today? anna: i wouldn't say forget about it. as you say, 0.5% is the expectation from economists. what they expect to see in growth in the u.k. economy quarter on quarter. but this is another subject to revision. the u.k. typically jumps first in terms of producing gdp numbers. which means the ons doesn't have all of those statistics when it gives those numbers. bear in mind, this number will be viewed politically very heavily that i. -- today.

the average revision, as you look back is 0.4%. if we get 0.5% in terms of the growth number for the first quarter, then expect to see a revision down to 0.1% or up to 0.9%. don't ignore it. it will be a political story and the number could change. jon: the politicians will be crawling over this piece of data. trying to find ways to make it speak to their party. what else is on the agenda? anna: in terms of the economy we heard from the live dams -- lib dems their party speaking to a stability budget within 50 days and that would be one of his conditions. whether that be with labour or

the tories. that is on the agenda. all of these parties will be talking about the gdp number that we get. no doubt we will hear from the conservatives before the number comes out. increasing the size of the economy since the coalition started, the economy grew faster than all of the other nations. this is how it will play out. we're waiting for ukip to start speaking. the u.k. independence party holding a policy briefing. supposed to be about taxation and the economy. that is the party that holds 10% of the votes. the poll overnight gave them 12% and a few seats. the latest estimate.

jon: things are finally starting to get interesting in the u.k. general election race. thanks to anna edwards. from the u.k. election the u.k. business, let's do it. the owner of premier inns posted a peak in full-year earnings. and that the ceo is stepping down. he joins us now. andy i will sing your praises and then get to the tough stuff. crunching the bloomberg data, presiding over a tripling of the share price. raised the dividend in each full year of leadership and now you reported a 19% increase in full-year profit. congratulations. why are you leaving? guest: with great success, we have strong brands and a strong management team and a very

strong customer focus culture. all of those financial results that you just described are down to those strong pillars. the reason why i am leaving is because i have been ceo of three different public companies for 18 years. it is time to stand back and do something less demanding. jon: you are a modest man. this will fuel talk that accompany could be planning a spinoff and looking for new leadership. has there been any kind of clash or disagreement at whitbread? guest: absolutely no. whitbread has shown a very consistent strategy over the last five years or more. we have laid out growth milestones five times and laid out more 42020. they show great --more for 2020.

we are creating a lot of value for shareholders. why change a winning formula? jon: the analysts say you could create even more shareholders if you spin off costa coffee. do you agree? guest: you started talking about how much we've created with whitbread over the last four years. we pan to increase the size of costa coffee 80% over the next five years. we're focused on delivering that. jon: let's talk about premier innb. you are now up against the hotel company with no hotels. i am talking about airbnb. can you talk about the effect? guest: there has been no effect on us. premier strength has been that we have over 800 hotels in the u.k..

and a unique good night guarantee. we and we can see the growth of underlying competition. at the end of the day guests want to stay in a great bedroom in a comfy bed and to be looked after. we are keeping a close eye on airbnb. we have a great network and we are still the number one by quite a long way. jon: are you worried about how quickly you can respond? over the next year, 40% of the room additions will be here in london. it takes time to build a hotel. airbnb & people up on the spot. how difficult is it to respond to demand? guest: the hotel business we are in is a long-term game. we have a pipeline of 12.5 thousand rooms anna: we have

been building that pipeline throughout the recession. premier in has been growing from something like 40,000 rooms to 60,000 rooms that i have now. we are on a consistent long-term plan. jon: let's talk about the general election. can you talk to me about the impact on the leisure industry. has there been any at all? guest: we have seen a very good consistent economic recovery. i hope that will continue. whitbread has performed well throughout the recession and we are forming well throughout the recovery. the key for whitbread is to deliver a great experience for the 20 by million customers -- 25 million customers visit every month. guest: what does the labor -- jon: what is a labor government mean for the business side? guest: what i would like to see

from whichever political complexion is a massive investment in basic education and apprenticeships. that is the way we can deal with issues like lope and -- like low pay and deliver sustained economic growth. jon: that to me sounds like the conservative party and not labour. is that what you're thinking? guest: know it is not what i'm thinking. whoever is the next government we need a long-term plan in basic apprenticeships. not another four-year plan to the next election. jon: as far as i am aware, whitbread does not operate with zero contracts, should it the left to businesses to describe -- decide their policies? guest: we don't have zero out

contracts because we don't think it is the best thing for our people. coming to hours financial success, it is because we offer a great customer experience. we work hard on training motivating and engaging those people. which means offering our team a fair deal which is why we don't have zero out contracts because we don't think it is the right thing for our people or our customers. jon: a pleasure speaking to you. stepping down after 18 years. the ceo of whitbread. thank you. coming up, we will talk greece. we will talk exclusively to the president of the greek tourism federation. is the sidelining of jan is there a factors -- yanis v aroufakis really worth the basis points on the year?

we will talk about that as well after the break. ♪

jon: good morning and welcome back. let's get some checking on the equity board. 43 minutes into the session, the ftse 100 is doing this. where are we? there we are. down .5%. the dax also down .6%.

a flurry of earnings this morning. bp the down street business is the one performing. most people expected that. the margins are better because of the fall in the crude price. the biggest loser is commerce bonk -- commerzbank. there preparing 81 $.5 billion share sale to boost capital -- a $1.5 billion share sale to boost capital. if we bring up a chart of copper, there it is. .8%. shifting higher. chinese central bank has a plan to start easing to help debt

restructuring. under the plan, the people's bank of china would allow chinese banks to swap local government bailout hans as a way to bolster -- bailout bonds as a way to bolster economy. in the commodity market it is having on young effect. the other -- an effect. tsipras reshuffled his bailout team. the deputy foreign minister would adopt bailout talk responsibilities. tsipras call the switch up necessary. >> now that we've have reached the final stretch we have found ourselves in the need of reshuffling our teams because we need full control to be as efficient as possible. we are in a critical stage and the final stage. therefore the main political

delegation is under the responsibility of the finance minister we need a crucial game. a technical team and better coordination of technical departments. jon: tsipras calls it the final stretch but negotiations remain deadlocked. could sidelining varoufakis be the break necessary? whoever trades greek debt seems to think so. after the announcement the yield on the greek three-year dropped by about 300 basis points. is there cause for optimism? let's talk to the man andreas great to have you with us. a little bit of a reshuffle. the bond market seems to think it is good news. for you, you operate in the country. how close are we to a deal? guest: i think we are getting

closer. not as close as i would like. i think we are moving a little bit faster than before. we are very worried about the situation. greece had an amazing year last year. this year, we are going for another record of $25 million. another $1 billion in direct receipts and another in indirect. all of this instability and security, discussions about debt , scare away some visitors especially from germany. they're worried about the bank situation. we want the deal to close as soon as possible. jon: i look at the fx market every morning and the euro, we were around 1.40 this time last year. for the tourism industry, this

should be a huge summit. talk to me about the collapse in german bookings for holidays in greece. what is behind that? guest: first of all, surely the weak euro says a lot. that's why we see more traffic from the u.s., and asia. even turned -- countries like turkey and poland. russia is down as you know. russia has its own issues. we don't see more than 20% drop from russia. the problem is in coat the eurozone -- is in the eurozone in february we started to go down. the moment we were above the same figures as last year. but if the strength figures continue we will move into negative territory. and germany is the biggest market with 2.5 million

visitors. the u.k. is doing better because of the strong pound. but we are losing slightly market share as well. because we're going for an absolutely fantastic year. jon: obviously, you are outside europe and you get to take advantage of the week euro. inside, it doesn't happen. german bookings have collapsed. what is behind the collapsed in german bookings. if i am a tourist, i am not fussed about what is going on politically. is it tension bringing this about? guest: not really. what really scares people is if banks collapse, if atm's don't work, maybe they will not be a bull to draw money. maybe their credit cards -- will not be able to draw money.

maybe the credit cards will not work. overall, the situation makes people scared. especially in germany where people are more aware of the political developments. generally, we managed to disengage them from the political developments. germans are much more aware. jon: i want to talk about this. you bring up atm's. i want to talk about tourism businesses. what are they doing with their money? are they taking it out of banks? are they keeping it elsewhere? guest: we keep our money here. we have to invest anyway, money is so scarce. tourist businesses need the money to invest and renovate and pay salaries. credit is so expensive in greece if you can find it. the typical tourist business

borrows at 8% to 10%. investment is also low income. only because of the level of credit. we can wait for one month or two, if we do not close the thing, tourism will go down and greece will land in a new recession. they have to conclude as soon as possible. jon: thank you very much for joining us. the greek tourism federation president. as we had to the break, here is a picture of the markets. the ftse 100 trading a little bit lower. bp up this morning. the dax down by 88 points. the big loser is commerce bonk -- commerzbank raising $1.5 billion in share sales to boost capital. we will talk about these markets more. ♪

jon: welcome back to "on the move." almost it, sent to say. some of you might be happy because "the pulse" is coming up. guy: all of you are going to be happy. we think of it as a continuum. at 9:30, gdp comes out. it looks like january was week for the u.k. economy.

substantive to that we have had a little bit of a bounceback. the political spin will be fascinating. you go to .7 or .6 and you may get a .5. there will be something here for everyone. construction looks a bit weak. services look strong. if you look at the pmi number, q2 should be strong. it will be interesting parsing the numbers and dealing with the details. jon: shameless plug for the new bloomberg website. a great article on there. how you get the first estimate in the difference between the first and the final. it is a big difference. one recession much shallower and another didn't even exist. just a huge morning.

bp stands out. guy: the oil sector is the real story. if you get the stuff out of the ground it is not worth as much money, but bp employees thousands of people to trade oil. that has done very well. that is one of the real standout stories. they compensated one for the other. the numbers are down by 20% year on year but the traders have made a real difference. jon: a dividend story as well. as we had to the break, let's check on the stock movers. bp rising at 1.44%. daimers smashed it as well. commerzbank getting smashed down by 4.8%. raising $1.5 billion in share sales to boost capital. that is the biggest loser this

morning. moves on the bond market as well. negative 0.2% the on that rate. you can talk to me on twitter. good luck with the rest of your day. ♪

guy: bp beat sales. francine: the event chairman is considering becoming a media shareholder. guy: the funeral for the black man who died of injury suffered while in police custody. good morning. everybody. you are watching "the pulse." i'm guy johnson.