ip. linkedin plunges. the professional networking website plunges. the stock drops as much as 27%. they are a few of the things we will be talking about. i'm looking at one futures market, ftse futures. very excited. manus cranny looking forward to wrapping up his week with your market open. manus: indeed. everything is closed except for london. the paper company introduced their numbers to the markets. see how they do in the irish market a little later on. i'm trying to be ironic. let's see if lloyd's makes the rundown. first-quarter profit up 21%. 2.2 billion pounds. benchmarks are judging how banks are going to do in the u.k. and around europe. they say 2.55% over the next

year. no more tpi for lloyd's. no more payment protection insurance from lloyd's. as i say, that's different to rbs and barclays. rbs and barclays both putting aside more money for payment protection this week. lloyd's up 3%. the biggest conundrum is this. there is not going to be a huge amount of liquidity in the bond market. domestic german figures are going to be out. in london, late breakfast, short days. we are back up here. start of the week europe up 0.5%. you've got dropping prices, rising yields. in germany, all around europe you are seeing this reevaluation of risk, and still, the euro --

foreign exchange driven by interest rate differential. that is more or less the point. the euro rose by over 3% this week. you are seeing yields rise in europe. you are seeing the bond prices fall. up we go. 1.1245 is where we are on the euro-dollar trade. this is one of the strongest months that we've seen. we are straight into may. april was one of the strongest months we've seen in almost 4.5 years. they must be happy boys, because they made these big calls. we will see whether this momentum last. what were those calls, $.90 $.87? can't remember who they were. consensus is, euro-dollar will

be down. jonathan: manus cranny, thank you. the ftse 100 doing nothing. a ray of light in the land of the rising sun. japan ekes out a little bit of inflation, 0.2%. let's get to tokyo. we are joined by james. james inflation, it is a hard read. i look at the top line, then i look at the bank of japan's preferred gauge. it is not very pretty, is it? james: no governor kuroda said two years ago that they were going to reach 2% in two years. it is now that time and 0.2%. they are 1/10 of where they said they were going to be. it is better than last month. we are seeing a small pickup from the recent rise in oil prices. prices for household gas and things like that. but it is not a great picture

for the bank of japan or for a wage-led healthy inflation in japan. jonathan: james, you've hit the nail on the head. governor kuroda said he would be where he thought we would be. we are nowhere near it. what is he saying about the central bank's policy going forward? james: he was very defensive yesterday in the press conference. there was a lot of questions about that. he came out at least three times and said, the bank does not see the need for further easing. they say prices are going to pick up. even though they've had to postpone the time when they expect the 2%, they still think they are going to be achieving that. the bank of japan says everything is fine. it has been delayed, but prices are going to rise, so stop worrying about it. they came out today with three separate reports saying the

policy is working, inflation is rising inflation expectations are rising, nothing to see here. very confident statement from the bank of japan. the question is, whether the people in the market accept that and stop expecting further easing, and whether the data start to support that. we don't see the data supporting the bank of japan's decision and we don't see the market accepting that argument. jonathan: james, thanks for joining us. james mayger joining us from tokyo. let's get the investors take. we are joined now by james bevan. james listening to james, my colleague the expectations of more easing economists expecting another move, another polling of the trigger. what is that going to do for the japanese economy? james: it is very clear, the boj has been faulting asset prices

by buying japanese government bonds. we will hold them until maturity. you get out early. that is what we should see more of. japan needs a huge structural shake. it doesn't have to have a big shift in the psychology of investors and consumers. that is a very clear signal the bank of japan is being encouraged by the policy agenda. the second issue is, we need companies to come to the table to create more profitability. the return on equity is very low. japanese companies hold so much cash. they recognize the importance of value. returns will be magnified manifold. jonathan: i've heard about the changing culture in japan in terms of corporate profits. a lot of people will say that we

are starting to see some signs of that. james: we definitely are. i think that markets are much more discriminating. it trades on that multiple. a heavy premium to banks like barclays. it has a 15% return on equity. that justifies a high valuation. jonathan: we are going to talk about lloyd's later. back to the macro world, i look at the data coming out of japan. on one hand, it paints a decent picture of japan. you look at unemployment lower available jobs higher. we talk about this in japan every month. wage growth isn't there, james. that chart should tell me the wage growth is coming. james: there is no wage growth, no consumption growth either. it is easy to see why. over the period since japan began the decline, it has seen a

16% improvement in productivity. people think the economy is delivering more, why is it not moving? the workforce has shrunk by an equal and opposite number. it is difficult for the economy to grow. jonathan: even more difficult for an equity investor to play these stock stories when it is a top-down theme at the moment. for the last month, all we've been doing is training a big fx move. james: i think the premise that the yen will be taken lower by the bank of japan presents fantastic long-term opportunities for investors, who can focus on good quality japanese companies like shimano, the global leader, very technical company. i think about bridgestone, a company that will take on michelin. jonathan: look at the qe-driven

japanese equity market and eurozone market. where does james money put the money? -- where does james bevan put the money? james: i'm very distrustful of these macro ships. i think the ecb will run out of money long before the qe program is finished. for example, domestic banks are doing much better than most people have given them credit for in the eurozone. intesa these are companies which will be less risky. there are some fantastic components manufacturers in the automobile sector. that is another area where i will be putting money. the areas i'm nervous of our high leverage companies dependent on the maintenance of lower rates. jonathan: that is one side of the story. the other side is the politics. if i look at the banks in europe, there is going to be a

problem when these governments get into power and try to protect --people just won't pay their loans back. james: i look at economies like spain and i see fantastic news in economic growth. if you said to me, how do we solve the problems of europe, it is through solid growth, productivity improvements continued expansion of output. spain is delivering. jonathan: james bevan is going to stay with us. coming up linkedin loses $7 million off its market cap after some ugly results. bill gross will wrap up a huge week for european bonds. and fight night in las vegas. i've not forgotten about it. all the staggering numbers behind the fight of the century later in the show. ♪

jonathan: good morning and welcome back. i'm jonathan ferro. this is "on the move." linkedin not connecting with investors. shares plunged yesterday after it missed analysts estimate for the first time. ryan chilcote joins us for more. break down the numbers for us. not pretty across the board. ryan: this is basically a revenue issue. if you look at the rounders --

the numbers for revenue, the company said that it expects to make a little bit less than what analysts were estimating. the company, going forward pretty much brought back its forecast for the entire year. it is not really an issue of not making money, it is just not making as much as investors thought. that was enough to cost the company about $7 billion worth of its market cap. jonathan: the strength of the dollar has been the big theme for the quarter. investors look at companies like apple. the dollar hit them as well, but they delivered. ryan: it was one of the issues that was pointed out by the cfo. 39% of their revenue comes from outside the united states. the dollar fell by 6.2 percent. it is going to be a factor. does that explain the mess in terms of not living up to analyst expectations?

i'm not sure. it doesn't take a brain surgeon to figure out what 6.2% is going to cost on revenues. but it was a factor and it was one that was pointed out by the cfo yesterday. i think what we've got is a straightforward case -- it is businesses which are growing but it is not as quick as investors thought they are going. jonathan: thank you very much. tesla, very different company, unveiling batteries to store electricity for homes, businesses, and utilities. tim joins us now for a little bit more. expecting an announcement. was it in line with what you were expecting? tim: it was. what we wanted to know is, how big is it, how much does it cost? i think they said they will start at $3000. they haven't given european pricing. 7-10 kilowatt hours.

the average house uses 30 a day. you could move off the grid. jonathan: with tesla, it is this blue sky thinking. others think, this is decades away. how quickly can this help this company? tim: everybody is looking for this transformative battery and the next big technology, and the breakthrough. i think what mosque is showing -- whta mush is showing -- what musk is showing is that technology today is the future. jonathan: now, we go from linkedin to tesla in the same paragraph. as an investor, where do you look? james: i look at who's going to make the money. it does seem to me that tesla is going to make a lot of money. the second issue is who are going to be the losers. i look at the big oil makers and

i would expect the oil price to oscillate between a low case of $40, uppercase of $80. renewable energy changes the competitive landscape. by 2020, the oil majors are going to be punchdrunk. jonathan: tim, let's talk about that. we used to look at the oil majors and think about their future. things changed. for the likes of tesla, are they worried about the move and the last six months? is that a temporary thing? tim: absolutely right, they are in it for the long term. a few weeks ago, i think it was the geneva auto show, the head of design for aston martin went to his lead engineers and said show me the luxury sports car of the future. what do you think howard that? it was not petrol. jonathan: james, that is a good point. you got tesla, struggles to make

a profit, but it is a long-term player. you got aston martin, bmw players, you invest in them. why can't they do their own tesla? what will happen to tesla if that is the case? james: they need to be able to move really quickly. the bmw flagship this year with about a range of 23 miles, that is inadequate. it is a concept vehicle as opposed to a production model that delivers clean energy. but the direction is important. i think what you really need to do is look at the bridgestone's of the world the companies that are going to be in business when all is said and done. jonathan: is that the point, that when we look at tesla, if you don't know much about the company, you just see a car company? is this just going to be a

battery company? tim: going to be a big part of it. the energy storage market is going to be far larger than the automotive market. jonathan: tim coulter, thank you for joining us. james bevan will stay with us. next, the bond revolt. are to negative yielding bonds? ♪

jonathan: good morning and welcome back. this is "on the move." the short of a lifetime. that is how bill gross describes the opportunity on sovereign debt. he tweeted the comment on april 21. look at the chart, there you go. not a bad call. should we give him a new title? the blinking -- bund king. let's get some thoughts with james bevan. as he got his mojo back? quite a call. we don't know that it is going to be right at the end of the year. james: i've been calling the end of the bond market for far too long. i think i've underestimated three factors. i underestimated the stent to which the reaction of governments for some much longer than was reasonable.

i hadn't really anticipated how it worried investors would be about deflation. yields were obviously very low. they are terribly fearful of deflation. the third factor, before you interrupt -- jonathan: i would never interrupt. james: the third factor is there has been a very considerable expectation that markets worry about risk. that has really changed the market. jonathan: what has changed in the last couple weeks? in terms of what you are talking about now, not much. you look at the size of this move. james: we've also had some very buoyant consumer confidence out of euro land. i think people worry about the economy having ultra low yields. actually, if you join the dots there's going to be -- [indiscernible] jonathan: would you take the

short that bill gross is talking about? james: what we have got alternative exposures. we have senior secured debt. we have anomalies within the market price, where market liquidity has grown capacity to achieve outrageously high yields. jonathan: i want to move it onto something else. you are managing some of the church of england's money. the church of england no longer wants to be invested in these heavily polluting companies. can you talk to me about that and how that affects what you do? james: they are two rather separate travels being played out. the first is about what is reasonable and appropriate. the other issue is all about market failure. i looked at the pricing of coal companies and tar sands. i expect that we have to burn carbon in order to protect the

global climate from increasing in temperature -- i do think we are going to have carbon pricing. i think we are going to have regulation and legislation that will stop these companies doing what they are doing. i have no call, no tar sands. jonathan: so from an ethical point of view, and a potential to make money. james: the ethics today are so often the registration -- the regulation and legislation of tomorrow. jonathan: coming up, we talk lloyd's. the british lender raised its targets for the year. we will give you details after the break. in the meantime, you can follow me on twitter. let's check out these markets. the ftse 100 pretty much dead flat at the open, down 0.6%. we wrap up the week what a week we have had. euro-dollar off about 3% this

week. three weeks of gains. a huge month of gains. the stoxx 600 down by 3%. the dax just had its first month of gains so far this year. the german 10-year, 15 basis points last friday, climbing all the way up north by the end of the week. ♪

jonathan: good morning and welcome back to "on the move." on jonathan ferro. 30 minutes into your trading day, let's look at one market open. ftse 100, there we are, down 0.3%. that is the ftse. let's check in on the week. stoxx 600, a week of losses. down by over 3% over the week. euro-dollar up by 3%. no surprise. the german bund what a move over the week.

not skyhigh if you just look at that, but if you look at the move two weeks ago intraday, we drop below five basis points. as for brent, another week of gains for oil, the best month since may 2009. let's dig into some of these indexes. lift the lid on the ftse 100 and talk about bailed out lender lloyds. first-quarter profit rising 21%. manus cranny joins us for a little bit more. james bevan is still with us. manus cranny, a beat. manus: as you just said, pi for profit k for capital. impairments down nearly 60 percent. i think that is what the markets are focus on. bloomberg is focused on the fact that they have a little more capital.

if you look into ppi those insurance policies that nobody needed, never wanted, but they sold them to us anyway -- jonathan: it has been ugly. manus: but no more ppi provision this quarter. that is after 12 billion pounds of provisioning on that. margins, are you going to make any money out of it weston mark -- out of it? it is a bit boring, but it is a benchmark. it will be above 2.5%. rbs warns that their margins were under pressure. jonathan: james bevan, does he like what he sees? james: i think the ppi scandal turned out to be the stock save for the u.k. economy. if the u.k. consumer does not have the 23 billion pounds handed over by the banks to the consumers so that consumers can

spend, the economic growth -- [indiscernible] manus: i object. the desecration of banks institutions, jobs, but decelerate or affect, the lack of lending -- james: let's get things straight. the banks played fast and loose and were absolutely hollowed as a result of it, but the ppi issue itself has turned out to be extraordinary for the economy. jonathan: bigger stimulus than qe at the bank of england? james: if one looks at what happened on the back of very low money rates, the bulk of consumer response has not been spent. ppi money that came in was a windfall. manus is a great student of economics. he will readily recognize that

spending is much more important than saving. back to lloyds. jonathan: he's made his point and is moving on. james: he's had most of the morning. where do i see lloyd's? i see lloyd's as moving up the next year. hero it call. the background thinking is this we are looking at a company that is on 1.4 times book. it is a fat multiple. but it is there because it has a 16% return on equity. i think the capital that manus referred to is going to pay a big dividend. for end 17, the dividend yield on the current price is well over five. jonathan: is james bevan in the stock? james: absolutely. there are two interesting players ahead of the general election. people are fearful of the banks

and utilities. i do think that investors should look at lloyd's and bt. jonathan: manus cranny, what are your thoughts? just digesting? manus: i don't disagree with anything that was said. jonathan: is lloyds not just a prophecy on the housing market in the u.k. as well? if things do start to turn, and they have, what happens to lloyd's? james: i think lloyd's profitability is now deeply protected. i don't worry. you said where would i be positioned. i would say it is better placed in barclays because of the risk of imposing a mansion tax. jonathan: there are going to be a lot of people that look at those closing rate mortgages. if they experience the kind of hike, they haven't got the money

to meet those monthly payments lloyd's like every other major lender, are going to be exposed to that. is that not a concern for you at all? james: not in the context of the current valuation. the current very depressed share price, there is a huge amount already baked in. that doesn't worry me. but if you talk about the housing market it seems to me that we have a structural shortage. go back to the 1930's. chamberlain moved planning controls in the u.k. on all but 70,000 acres total u.k. landmass. we had a vast explosion of housebuilding in the 1970's that generated huge economic activity and took britain out of the economic malaise that america still was under. manus: let's say as the polls go that some form of a labor coalition may come to power.

rent controls. you are not going to get many people genuinely wanting to get involved. >> welcome back to -- [indiscernible] james: i don't think that the control of private rent actually will dissipate compared to demand. there are large numbers of people who would dearly love to buy a house and live in them. i think that is the market that is under delivered against at the moment. i know it is not popular to talk about building more houses in the u.k. because nobody wants to see -- but we have to have more houses. jonathan: james, here's the difference. supply-side performs great. buy side policies win votes.

that is the end of the story. you introduce the buy side policy you get a vote from the electorate. isn't that what comes down to, the politics get in the way? james: i find it really interesting. if you said to me, look at the economic numbers logically, you would assume that mr. cameron would have a vast lead. leaving politics aside we have a better economic position than the rest of europe. we have low inflation. we have real wage growth. people, if they were only judging politics on the basis of economics, would vote mr. cameron with one of the largest majorities we've seen in years. it is interesting that they are not. i genuinely don't understand why it is that people believe mr. cameron is toxic to the nhs. there's no evidence that he is. why do people have these prejudices so deeply held? jonathan: because he is the

leader of the conservative party and it goes decades back. we are going to bring something for you. manus cranny, thank you very much. james bevan. coming up, a week from today, election results in the u.k. next, we talk about the latest missteps on the campaign trail. that is after the break. ♪

jonathan: welcome back. this is "on the move." i am jonathan ferro. here in the u.k., the final stretch ahead of the election. last night the leaders of the three main parties came together for their final tv event. the politicians took questions from the audience. when asked about david cameron's plans prime minister david cameron reiterated his pledge not to raise rates. >> i know now what is in the books. i know we can finish the job without putting up people's taxes. those people who have opposed every step that we've taken, every cut we've had to make, i think they will make a cut of their own, to put up taxes, and to cut your pay. i don't want to do that. if you want a government that find more efficiencies in government spending, that goes

on reforming welfare, and doesn't put up taxes for working people, that is me. if you want a government that goes on with unreformed welfare, that doesn't find savings, and puts up taxes, that is the other guy. jonathan: he's not talking about rates. he's talking about taxes. he would love to have control over rates, but let's move on. nick clegg said he wouldn't necessarily oppose a referendum on the u.k.'s membership of the eu. >> we should have a referendum on whether we should stay in or leave the european union. i will find a way. jonathan: finally, labor leader ed miliband told the studio audience he would rather lose out on becoming prize minister then do a deal with the snp. >> we are not going to do a deal with the scottish national

party. let me say this to you. if it meant we weren't going to be in government, not doing a coalition, then so be it. i'm not going to sacrifice the future of our country. i'm not going to give into snp the man's. i want to repeat this point. i'm not going to have a labor government if it means deals are coalition with the scottish national party. jonathan: at this crucial point in the campaign when no one can afford any missteps, there was literally one from ed miliband as he left the stage. there he goes. joining us for moore is guy johnson and james bevan. guy johnson highlight of the debate? jonathan: -- guy: two things. one of which is the little trip. maybe not the moment we were waiting for in this election but i think people will pick up

on it. i don't know why. it is silly. i don't worry about it too much. it is the studio floor. things happen. jonathan: not quite that gordon brown microphone. guy: it isn't. the other thing was, ed miliband had a fairly hard time on the previous administration, his previous administration that he was part of. effectively, we ended up with a memo saying we ran out of money. i think that is something people will pay attention to. jonathan: ed miliband was challenged about that. he said did you spend too much money in the last parliament when you were in charge? the answer was no. james: that was unfortunately an error. think about what people will write about this. they will say that -- [indiscernible]

it is just an observation. coming in, it would have been much smarter for mr. miliband to say, we made mistakes. everybody makes mistakes. let's face it. i'm now talking about tomorrow not yesterday. to pretend that everything was fine going into the financial crisis -- jonathan: you are talking about how they are judged historically. in the present, when you go back to tony blair, people felt good. you are saying that this parliament will be judged as a success. at the moment, they are not getting any traction. that has dominated this discussion. guy: you look at productivity, wages, what has happened, and you are right. it hasn't translated into the feel-good factor. i expect this is why david cameron is saying the job is only half done.

we need to get the rest of this finished. maybe that is the bit that people need to feel. in terms of where you should be, economic theory, political theory should dictate that david cameron should be romping away at the moment. he's not. i'm not sure it is to do with the fact that people aren't feeling good. i think it is the fact that they have serious concerns about the brand associated with the tory party. i think if you were to take a step back, if you were landing from any other country, you would say the tory party should be significantly ahead, and they are not. jonathan: james, let's bring it back to our world and talk about the markets. you've talked about equities. you wake up on may 8 and look at cable sterling, which party wins for me to head south? what is the scenario? james: i don't a scenario that

basically said there is a high probability that japan weakens. i then go to colleagues at commerce bank and say what are you thinking? they say, we think the pound is going to go stronger. jonathan: last call for you big fight this weekend. mayweather-pacquiao. james: i'm worried about mayweather. i think he might get hurt. it is a brutal sport. guy: i think -- i hope pacquiao wins. i think he's a nicer guy to be honest. you look at what is happening and he just comes across better. jonathan: these guys love manny pacquiao. i'm taking the other side of the trade. we are going to talk about the odds, the numbers the record-breaking money fight. ♪

jonathan: the flight of a lifetime. floyd mayweather faces off against manny pacquiao in what could be the most lucrative boxing match in history. bloomberg crunched the numbers. take a listen. >> floyd money mayweather versus

manny pacquiao. not just one of the most anticipated boxing matches of all time. it is also the richest. the fight is projected to shatter boxing revenue records. it is pay-per-view's most expensive boxing match ever, costing almost $100 to watch. estimates from how many people will watch range from 2.5 million to 4 million. the fight will be held at the mgm grand in las vegas, which seats 16,800 people. tickets range from $1500 to $10,000. though the $10,000 seats were not sold publicly. the gate revenue for the fight is set to reach a staggering $72 million. for comparison, that's 3.5 times more than the current gate record $20 million, said by the mayweather versus alvarez fight in 2013.

fewer than 1000 tickets for the upcoming fight were sold to the public at face value. they sold out in 60 seconds. the resale market will likely be extremely lucrative. when you factor in other revenue streams, like foreign broadcast sales, closed-circuit viewing sponsorships, and merchandise, the fight is expected to bring in at least $300 million. that would make it the most profitable boxing match ever. while it is not clear who will win, both fighters are set to pocket millions. they are splitting 60-40 in mayweather's favor. he is projected to make about $180 million with pacquiao walking away with more than $120 million. everyone walks away from this fight a winner. jonathan: those are the numbers behind the big fight.

how are the bookies making money? joining us for moore is russell, head of the u.k. sports book. russ, what a fight. i guess the big difference for me is, i remember the super fights of the 90's and early 2000's. i can still recite the promos. no pr talk even needed this time. >> this is the fight of the century. mayweather-pacquiao. this will be a defining fight for both of them. mayweather, 47 fights, 47 wins. pacquiao, five losses phenomenal record. jonathan: talk to me about the bookies. how do they make money on this fight? what is the worst outcome for the bookies? is there one? >> the bookies are taking a lot

of money on patio. pacquiao is the big mover in the market. the current odds are 2-1 on mayweather. the draw is 16-1. pacquiao, 7-4. mayweather, odds are 8-13 he will win on points. pacquiao is 9-2 to win on points. with his fast speed, he is also 9-2 for a knockout. i think floyd mayweather will come out on top because he is super defensive. but when he punches, he gets through. pacquiao will be on the offensive from the off. i think it will come to the last couple of rounds. jonathan: if i wanted to place a bet on floyd mayweather k.o. around 10? >> 20-1.

jonathan: are people getting created with these odds or are they going straight, he's going to win? are they taking rounds? >> they are picking rounds. that is where the margin will be, on the exact round of the win. jonathan: russell, head of the u.k. sports book thank you very much for joining us this morning. what a week we've had in this market. euro-dollar, session highs today. over the week up by 3%. the euro is up. stocks lower, stronger euro equity markets selling off. bund yields rising aggressively. 0.37% is the yield on the 10-year. what a month we had for brent crude. another week of gains. we are up 2% on the week. if you want to talk about the

fight or the markets, i'm on twitter. good luck for the rest of your day. ♪

guy: lloyd's leaps. shares down the most in a year. tesla unveils new batteries that can power homes and businesses. and, fight of the century. the hype builds as floyd mayweather and manny pacquiao prepare to square off in las vegas. welcome to "the pulse." i'm francine lacqua. european markets are closed today. the u.k. is open. we've had earnings from