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 britain's largest mortgage

lender lloyd's, posting a profit bigger than estimated. for more, let's bring in mark and richard. richard, let's start with you. in terms of what lloyd's is doing, this is better than expected. richard: it is. these numbers are pretty good. there are no items really below the line, which we weren't expecting. there was a charge for the tsb. however making a 1.2 billion pound profit after that is still pretty good. they also said they expect to beat their own guidance for profitability margins this year. that is pretty good for a bank that is already producing some of the best profitability among british lenders already. guy: and there's-- francine: and there's nothing in terms of provisions. richard: i think there's a feeling that it is just this quarter. last year, lloyd's didn't take

any provisions. last year, it took over a billion pounds worth of provisions for the payment protection insurance. that would probably help this year. some analysts are expecting about one billion pounds of gain. that will probably come in later waters. as you say, nothing this time around. it could be declining. francine: mark, when you look at u.k. banks, this is the election story. the big government own stake in lloyd's. we are seven days from the election, six days actually. how does this play out? mark: fantastic. you get to prove to the electorate that paying out the banks turned out to be a profitable exercise. also, they've nudged the banks into becoming smaller, which is a good thing. rather than the heavy hand of ordering them to sell units and get rid of their casino banking

activities, what we've seen is regulation edging them out of those areas of business. this is a global phenomenon. if you attach capital requirements that make it more profitable, dominoes and kicks in. the banks are smaller. they've got better capital. this is all a good outcome. francine: richard, we heard about rbs yesterday. when you look at rbs and lloyd's, it is significant that rbs is way behind being sold off. this could take 45 years. they booked a much bigger loss. richard: absolutely. lloyd's is in a much more advanced position as opposed to royal bank of scotland. investors view royal bank of scotland as being on the same journey as lloyd's. they are progressing towards a similar institution. rbs will probably look like lloyd's in a few years time.

they have got to be much more focused on the u.k. consumer and commercial market, which is the business that lloyd's operates. mark: do you think it will be? my guess would be we will be out in two or three years. richard: that could be the case. the classic story is this under deliver on the expectations. not really been in as long a restructuring phase as you would have imagined. they've been beating expectations for selling down bad assets in their bad banks. that kind of stuff is happening quicker than anticipated. it could be done quicker. however, they are settling themselves out with this kitchen sink ahead of everything, saying it is going to cost a lot and take a long time. francine: that's what i like. underpromise, overdeliver. mark, you had a great bloomberg

view these a couple days ago on hsbc. they are thinking about relocating. how does that play out in the election? mark: i'm so bored of this threat with the rollout. every time there is a new regulation or a tax, they say we might go somewhere else. go then. there's nothing wrong with them reassessing where their location is. they have a fiduciary duty to make that assessment every so often. but it only ever comes out when they really want to blackmail the government into not doing something the government thinks is a good thing. i figure if hsbc is going to do this every four or five years, i would rather they lose. hong kong would welcome them. go. francine: i agree but we have to talk more about the u.k. elections. richard, thank you so much. mark gilbert stays with us.

there is another great bloomberg article on our website. i think we can bring up the website. it is on banks in general. we've been touching on the british banking. go to our website. we have that great read about scandal-battered banks paralyzed by the election. there are just five campaigning days to go until the u.k. election. last night, the leaders of the three main parties came together for their final televised event as they took questions from the audience. >> i now know what is in the books. i know what needs to be done. i know we can finish the job without putting up taxes. those people who opposed every step we've taken, every cut we've had to make, i think they will make a cut of their own, to put up taxes, to reach into your pay and cut your pay. i don't want to do that. if you want a government that

finds more efficiencies in government spending, that goes on reforming welfare, and doesn't put up taxes for working people that's me. if you want a government that goes on with unreformed welfare, that doesn't find savings in government spending, and puts up taxes, that is the other guy. francine: ed miliband told the studio audience he would rather lose out then do a deal with the scottish national party. >> we are not doing a deal with the scottish national party. we are not going to have a coalition. 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, the unity of our country. i'm not going to give into snp demands around anything like that. i'm not going to have a labor government if it means deals are coalitions with the scottish national party. francine: finally, the liberal

democrat leader, nick clegg said he wouldn't necessarily oppose a referendum on u.k. membership of the eu. >> we should have a referendum on whether we should stay in or leave the european union when new powers are given up to the european union. i always argue that we remain part of the european union. francine: later today we have an interview with another party leader. the green party joins bloomberg politics at 11:00 a.m. we are back with mark gilbert. we talked about the banks. this is an economy very reliant on services. bottom line, we are reliant on services. but also on non-dumbs. how is this election significant in terms of the economy for london, or do you think that people will ride through it, so that in 2-3 years, we will be back?

mark: i have a slightly different take on this. i think what we might end up with is a national government. if the polls are saying people are evenly split between the conservatives and labor, and you've got the rainbow of other parties not massively significant in terms of king mating i have a sneaking suspicion that that last to do of british politics might be broken. we've never had a national government outside of a war but we've never had a coalition. the coalition has been a successful form of government. i can see a situation where you end up with even stevens on the blue and red parties. i can see cameron reaching out to ed miliband and saying, what the people voted for was both of us. francine: with who as prime minister? mark: that is the tricky one. it would almost definitely be

whoever had the most votes. you have the situation where both parties will want to get rid of their leaders for not having achieved a majority. that gets into the whole thing. you may end up with boris on the blue side and ed balls on the red side. i think we shouldn't discount the possibility of a national government. if that's what the will of the people has expressed, maybe the politicians will listen. maybe having had a coalition government that's been successful we've broken that one to do. that would be almost a fantastic outcome. the tory idea that we might leave europe some of the wacky labor ideas about mansion taxes and choking the rich, maybe they get squashed out. we might get a very efficient government as a result. they will call each other in the middle. francine: that would be history

in the making. mark: i think i'm going to get very good odds on that as well. francine: how long would it last? you spend all your life fighting the other side, then there's no other side. mark: don't underestimate how nice it is to have a job in westminster. they are people too. francine: mark, thank you so much. we have plenty more to talk about. you can also follow mark on twitter. here's a look at what else is on our radar this morning. shares of linkedin fell as much as 27% after the company reported quarterly revenue that missed estimates. linkedin also forecast sales that missed projections for the second quarter. it is the first time the company has fallen short of analyst expectations. tesla ceo elon musk has unveiled batteries for homes, businesses saying a greener power grid

furthers the company's mission to provide pollution-free energy. the announcement makes tesla's expansion beyond electric cars. the fight of the century between floyd mayweather and manny pacquiao in las vegas tomorrow night. the bout is expected to be the most lucrative in boxing history with estimates of up to $400 million in revenue. pacquiao told bloomberg he was not afraid of being the underdog. >> i like being the underdog. i like it. it gives more encouragement. encouragement to prove something in the fight. i love it. francine: that brings us to today's twitter question. who are you rooting for, mayweather or pacquiao? tweet us. guy is back in half an hour. still ahead, a working weekend for greece.

tsipras is confident that a deal is close. and, tesla charges into batteries. why elon musk is expanding beyond electric cars. plus, u.k. manufacturing out at 9:30. ♪

francine: welcome back to "on the move." -- to "the pulse."

greek prime minister alexis tsipras says he is confident the deal for bailout aid is close. for more on europe, we are joined by ricardo barbieri. also still onset is mark gilbert. thank you so much for sticking around. thank you ricardo, for joining us. we focus so much on the personality of the prime minister of greece, the new negotiator. at the end of the day, is this something that alexis tsipras is going to handle? do you believe him when he says he wants a compromise? ricardo: of course. i think he does want a compromise. i don't think there is a plan b, neither in the issuance of i-o- u's, nor in terms of leaving the euro.

mark: how do they deal with the red lines issue? the creditors are very clear. they don't see the same red lines. tsipras and varoufakis keep repeating that there are red lines. ricardo: in politics, the solution is always a bit in shades of color, not black or white. mark: think lines. ricardo: i think they will become pink. in some cases, maybe they will hold. francine: at this point, we haven't had any closure at all. someone is going to have to give in. it is greece, you think? ricardo: i think both sides will make compromises. for example, there was a certain target for the primary surplus. it had to be at least 3% of gdp. the troika was expecting a number of reforms. the program was very granular. my guess is that it would become

less detailed. we leave moscow to the side to worry about the specifics. the primary surplus target would be lower. the benchmark reform would be a bit different. all these things will have to change. but i think the greek side needs to accept a number of conditions. and then, politically, you can say, i was able to pass this measure against the humanitarian crisis, as they call it. i was able to reduce the primary surplus. i was primers -- i was promised some adjustments later in the future. i think that is the only rational way out they have. i think the reason why everyone is a bit anxious is that the greek side has moved very slowly , been kind of disorganized, and has spent more time

pontificating about europe and fiscal policy, sometimes making correct points, but missing the bottom one, which is we need a deal to finance the economy. the final point i would make is that missing in all this is when do they think they will be back to tapping the markets? who is going to finance them? are they going to go out to investors and say this, and ask for funds from the government? francine: mark, i remember speaking about this and you were pro-greek negotiations. have you changed your mind because of the way they've tried to negotiate, which has -- mark: it isn't really negotiation. it has been three months since the syriza government came in. if you look at what wolfgang

schaeuble is saying, there has been no movement. there has been no concession from the greek government. the red lines are very red and very act. i have changed my mind. there needs to be more concession from the greek side. everyone has become so much more entrenched in their positions. i worry. i really worry. the possibility of an accidental leaving of the euro becomes stronger. if you look at the greek opinion polls, they won a deal. they want to stay in the euro. but it is not clear they are willing to pay the membership dues. that is a hard task that tsipras is going to have to face. how does he sell it to the electorate? does the electorate understand what it means that the primary surplus is not 3%? i'm not sure they do. ricardo: politically, you can say we defeated this austerity

line of germany. we are keeping the budget in a larger deficit. i think the key above the whole story is that before the elections, the syriza guys were saying, we will take these negotiations to the highest political level. it will not be a technical negotiation. francine: and they have. ricardo: what they are betting on, to scare the political leaders of europe into one country leaving. francine: the market story of the week. what is going on, ricardo, with german bonds? ricardo: i think in my mind, all the things we saw this week unwinding of qe trades. what was the trade? the trade was long bonds thinking that everything would go into negative. fx hedged.

that means you are going short euro. the moment you close all these positions, you have two increasingly by the euro. we have seen weakening equity markets, a stronger euro, and all these trades. when things suddenly move and volatility goes up, you get many moving parts that are apparently hard to explain. for example, if the dollar loses some ground, that means -- that may give the fed some scope to hike rates. that is one of the reasons treasuries are selling off. francine: thank you so much for now. ricardo barbieri and mark gilbert. coming up, elon musk takes charge. tesla unveils batteries for homes, businesses, and utilities. ♪

francine: welcome back. a major announcement this morning from tesla ceo elon musk, the car company unveiling batteries for homes, businesses, and utilities. tim coulter joins us now with the latest. this was expected for a long time. it is pushing tesla in a different way. it also means that your life can change. tim: it is really fascinating. it is not long from now when you can go to ikea and by solar

panels, and stop at tesla and get a battery. next thing you can do is fire your utility. francine: it also puts tesla not only as a car company, but much more. tim: the auto industry is a giant globally, but compared with energy, it is far larger. it is a much bigger market. francine: how big can this become? how many people are going to have batteries in their homes? tim: well, the big question in the whole thing was price. what they announced was starting at $3000. that is nothing. the tesla costs $100,000 per car. the battery is only $3000. francine: i'm really excited about the story. thank you so much. coming up, we have much more on the big fight of the century. we will talk about the german 10-year. all that european markets apart from the ftse are closed for

mayday. we will see you in just a couple of minutes. ♪ .

francine: welcome back to "the pulse" live from bloomberg's european headquarters in london. i'm francine lacqua. we're just getting some breaking news out of the u.k. p.m.i. april manufacturing p.m.i. at 51.9. now this is significantly below economists' expectations. we have a 51.9 figure. we were expecting to see 4.6. it is also significantly below the figure that we had a month earlier in march so this is not a great number by any stretch of the imagination.

this is a picture. rising quite significantly just in the last half-hour for the pound/dollar. below estimates and below what we had for the month of march. of course this is going to play out in the election story. we're still five days away. pound strength is also something that we have to look at. when you look at the manufacturing, you preal break it down. this also has to do with the strength of the pound. we know the fed is looking at it and we imagine the n.p.c. will have to look at the growth of the u.k. factories are slowing because over the strength of the pound. we'll be all over the u.k. elections in the next half-hour. here are bloomberg's other top headlines.

the bank is set to -- lending profitability target. the leaders of britain's three main political parties have taken part in the final major tv event before next thursday's general election. while david cameron faced tough questions over his economic record while labour leader ed miliband and nick clegg were deeled another a coalition deal. greece and its euro area partners are stepping up talks to reach a preliminary deal by sunday according to people with knowledge of the negotiations. japanese inflation showed a slight gain in march. the data comes after the bank of japan stopped short of adding monetary stimulus this week. eeb as they pushed back the time

needed to reach the 2% inflation target. joining me from toke joe our economics editor. james, great to have you on the program. what did you make of the figures today? >> it was a slight tick up in inflation. recently the oil prices have been rising from there when they are really weak. that is pushing up on inflation slightly. the weaker yen is having an effect pushing up prices on things like luxury good and foreign travel. it was only 0.2% in march which is nowhere near what the bodily injury was -- b.o.j. was forecasting. they said it would be 2% inflation. inflation is 1/10 of that. even though it is a slightly better result than february, it is obviously -- it is not good for the b.o.j. and for their credibility in the market. they obviously haven't been able to deliver the inflation that

they were promising. the first time we have heard from kuroda. what does it mean for the overall strategy? this is a huge financial experiment. >> yeah, when he came out with the 2% in two years, it was a catchy phrase. that hasn't happened. they have been pushing that two years out so that it effect live became three years and it would be by the end of this fiscal year. now they have had to say that two years is not going to happen at all. the bankers came out and said our timeframe was bad and mistaken because of the crash in oil prices we're not going to achieve that but we're still the

bank still cease prices rising towards 2% and they still see themselves achieving that in the next fiscal year. the question is now whether inflation will actually do what they say it is going to do and also whether the markets believe that the bank of japan can achieve this. if prices continue on as they have been, don't rise toward 2s%, people are going to keep pushing them to increasing it, to increase stimulus which is what dr. kuroda said yesterday he is not going to do. francine: you really hit the nail on the head. it depends on whether the sbog going to start being proactive. how much time are they giving the b.o.j. to prove they are going to tack this will head on? >> the majority of client wes talked to said the b.o.j. has to act and they will act by october of this year.

whether they do or not will depend on what happens on prices i guess between now and then. the b.o.j. said prices will be flat for the time being and will start rising for october. the question i guess is whether people are willing to wait for that or will the b.o.j. -- if they do act, it will be too little, too late. one person i spoke to today said that. a member of the government we spoke to today said even if they act later this year, it is probably going to be too little, too late. they should act now. there are calls from within the government and there is pressure from the market to act now to really get a real effect of any extra stimulus added now. whether that happens or not i guess is up for the bank of japan to decide. francine: thank you so much. bloomberg's japan editor there. in terms of what the pound has been doing it actually had i believe the best month of the last couple of days.

if you look at the close, the pound/dollar exchange, it was the best month since 2013. we had a pretty -- disappointing u.k. manufacturing data. it came in well below economist expectations and april was much worse than the month of march. that actually led to the pound decline as you can see on the screen. for more on the latest u.k. manufacturing p.m.i. data, which of course has a lot, i guess we'll be trying to respond in the general elections. it will have some influence on next week's general election. let's speak to our u.k. reporter. thank you so much for joining us. what i love is we always look at economic indicators but the focus five days left of campaigns in the u.k. elections is so honed in and focused. this will be fun. >> of course. everything that happens between now and may will be. the interesting thing with the

economy is we have had a mix of data but broadly it has been quite good in the last few weeks but it is just not really feeding through into the polls. it should be good for tories that the economy is recovering. of course the data is a little bit less good. somehow people are not turning this into support for the incumbent which is the having the thing at the moment. francine: to me, foreigners don't understand. the economy is in a better trend. a better trend than europe. would you say that the tories have led a campaign that actually doesn't play to their strengths? >> i think that is true in part. i think it has been a little negative. instead of emphasizing the good parts of the economy and the benefits that we could reap in the next five years they have emphasized the disasters that -- and voters don't generally like a negative message.

this may change of course. francine: it may change. we had yesterday's last debate. a chance of getting some of the maven leaders on camera together. who won? >> the polls say cameron. he gave what was described as a commanding performance. although i think the crowd won that one because it was a pretty tough crowd and they really didn't give either cameron miliband or clegg an easy time of it. francine: how did miliband perform? >> people were talking about the fact that he stumbled on stable. exit left, he stumbled. it was not his finest moment. the interesting thing for me about his performance is he ruled out a deal or a coalition with the s.n.p. that is not to say that he ruled out they will support him in a vote in parliament. it is a very different thing but i do think that is setting yourself up for a fall.

it could cause problems for him in the future. francine: because the s.n.p. take it personally? >> say gets enough seats to form a norte government. now he doesn't need an initial deal with the s.n.p. they have said they will not support a tory government. they will support a labour government. people said this was all guff. obviously behind the seen scenes they have been talking to each other. >> thank you so much. one of our lead reporters on the u.k. elections. much more on the election after the break. we'll take a look at how the campaign has gone digital. that is coming up. ♪

francine: welcome back to "the pulse" live from bloomberg's london headquarters. as the u.k. counts down to one of the most divided elections in modern cyst, -- history, they are moving. the major parties, labour won't get enough votes to govern alone. with both seats turning into political battlegrounds they report on the digital spins doctors are trying to get your votes and make sense of the online -- >> it looks like tech -- but

this is the h.q. of the digital spin doctors. it is the u.s. company behind both president obama's campaign victories. they are at the forefront of a political revolution. using the internet and social media to get votes and cash. >> get their message out. mobilize people. knock on doors. make phone calls. talk to each other about the campaign. >> he is u.k. born and harvard educated. he is heading up the feam >> whatever campaign we're working on. the message, the money and the mobilization. >> they have rebranded the web party's website and stream lined the process and personalized thinker commoun indication with members. the result? more money. >> it is a lot of people. a big basis of support prment they also reached millions of people during this election with

fundraising messages. tens of thousands more have given. >> in fact, the labour party raised over 407,000 pounds in the first fortnight of april all from small online donations. 3 with cash in hand, they have used social media, email and twitter to hammer home labour's messages on health care. >> with all of this information swirling around the internet, the choice of this election is really clear. some of it political propaganda. difficult to make sense of what's happening, let alone what's important. >> labour. >> but the u.k. company is trying to do just that.

>> it is a fraction. >> david morgan and steven pulman head up a new u.k. company that tries to make sense over the digital character ofny. -- cacophony. >> in essence, the machine is looking at language. the taking of individual parts and reconstructing. >> they use software called moodraker which lets business or political parties monitor the sentiment of the issues. >> combined with sentiment, you can start to drive toward what's important to people. and -- and that's never been able to be done before. the rise of social media and the ability to monitor it. >> welcome to --

>> under the tory government, things have gotten worse. francine: so with less than a week to go, who is winning the campaign? guys, thank you so much for joining us. let me start with you, charlie. who is winning the didge atp tal campaign, if anyone? it is so difficult to navigate and there are so many parts to social media and the digital campaign. is there a clear winning center >> no, there certainly is not a clear winner. it is incredibly complex and

tired. when we talk about digital, we mean lots of digitals. there are lots of different platforms. each of them have different people on them behaving differently. it is incredibly difficult to -- twitter is not representative to have public as a whole. it is a tiny group of people dominated by people who are not interested in politics. facebook much more representative but much less sexy and dynamic and high profile. you really have to be careful not to generalize from individual platforms. francine: do we know how much social media influences your votes? it also targets younger voters who toned vote less. >> it does have an impact with younger voters. you're right. in the general scale of things it doesn't have a massive effect. we still have the tv, the newspapers still have a bigger effect. it is the key issues that resonate with the public, things

like the economy. key issues rather than the leader specifically being on social media. francine: it seems to me like more and more. there are so many policies. they are not that far apart. everything gets a bit muzzled. i have heard a lot of insiders saying we're going back to whether you want someone that is more more pro business or less probusiness. it goes to the basic s of what the prears represent. >> sure. that has been the main campaign. we're the confident ones. labor saying no, let's do it fairer. that is starting to resonate with the public. you're right. the policies are quite -- back and forth. yeah, it is those key things. francine: on social media, what does better? personality? >> the party's are incredibly

busy on social media. the parties are very active but still don't think they managed to get the authenticity right. they are very much still broadcasting propaganda at people rather than engaging in conversations. if you a real conversation then we're only human and sometimes you can scrupe. you is that you with emily thornberry. it can be a trap. the paradoxes that social media is more important than ever, but the way they are using it is more cautious than ever. francine: i heard president obama won his presidential campaign thanks to social media. >> he did it because he was brilliant or his team rather were brilliant. because of course obama did not use it himself much. to convert it into fundraising and real world activity. this is really important. they were good at networking

social media into major media. tv is what really drives public opinion but it drives it in tandem with social media. people watching question time last night were also on their second screens tweeting away or on facebook talking about. i francine: would that translate with the european audience? are they fundamentally different? are there more voters here that are decided than in the states? >> the main thing, the difference with the u.s. is that now our two-party system is disappearing slightly. we now have these smaller parties. there has been a dissatisfaction with westminster politics. particularly in scotland, the scottish national party have latched on to that and have been able to make grounds on the national level. francine: five days left of campaigning. david cameron said i have the fight me. with two weeks to go. maybe it is a message he should

have sent out more clearly earlier. >> yes i think you're right. we have all of this high-tech media. in the end, people wanted a sense of real emotion. i don't think it will change it in the last few days but it is great to see it. francine: quickly, we had a bloomberg reviewer calling in saying the best outcome of this would be a national government,a an alliance between the toirs and labour. could it happen? >> we asked people what their favorite coalitions would be. that came out at the bottom of the list. from the public's point of view probably not much. francine: i'm italian. we're used to it. guys thank you so much for joining us. now sony says its operating profit will more than quadruple this fiscal year.

sony's c.f.o. said the forecast takes into account a considerable risk from fx fluctuations. we'll have plenty more from asia on that next. we're back in just a couple of minutes. we'll also talk about the boxing match of the century. ♪

francine: welcome back to "the pulse" live on bloomberg radio, tv and your tablet and phone.

lloyds profit rose 21% beating estimates this morning. they said they are set to beat their lending possibility target. shares jumped the most on that report. monsanto is said to have approached zindanta about a takeover. -- syngenta. allegation nass the german secret services helped the u.s. spy on the aircraft maker. for our viewers, a second hour of "the pulse" is coming up and that is what we'll be talking ookts. guy johnson is back. we'll be talking about u.k. p.m.i. and about the pound and the u.k. elections and then it is the fight of the century. we have mayweather versus

pacquiao. that's later on today. that was twitter question. who are you rooting for? tweet us at flacqua, at guyjohnsontv. we'll see you in two. ♪

francine: lloyds leaps. they jump the most in a year. they beat profitability targets. guy: it'sly unveils new batteries that can -- tezzla unveil us in batteries that can power homes and guy: good morning to our viewers in europe. good evening to those in asia. i'm guy johnson. francine: i'm francine lacqua.

this is "the pulse" live from bloomberg's european headquarters in london. guy: european markets are closed today. the u.k. is open. we have earnings from britain's largest mortgage lender, lloyds. let's bring in our banking reporter. lloyds making the right noises. >> definitely. they are bucking the trend. we saw r.b.s. posting a loss yesterday. lloyds is where r.b.s. would very much like to be. lloyds are doing all the right thing. moving away from the crisis here, the bank that they had once been with high costs of funding. bad loans that were holding them back. we're seeing impairments. they are doing much better. francine: because there are no provisions for misconduct. does that mean we're at the end

of it or getting a little bit of a relief? >> i think it is almost the end of it. they are not like the other u.k. banks that we see foreign exchange provisions. they are not involved if that. payment protection insurance was the big one for lloyds. they set aside 12 billion pounds over the past few years scandal has been going on for. the chief financial officer told me today that he cannot rule out future p.p.i. provisions so we could see some more later this year. they are still making good progress despite that.

>> it looks like -- guy: probably in the next five years we will see a big share sale in the general public. as you can see, the last couple of years, you have seen the government holdings coming down considerably. what is next? how does an exit work for the british government? >> it is two-fold really. one item that the government is getting money back on here is dividends. lloyds started paying dividends for the first time again since the financial crisis at the end of 2014. lloyds will continue to grow its payouts to shareholders. s the second way is as you say to selling shares to the public,, the government still owns about 2521%. they intend to sell about 9 billion pounds worth of shares

over the year. david cameron said he will do that if re-elected next week will be through a retail offering to the general public. they have promised to keep that sale above where it says it will make money on that. >> thank you so much for the update. our banking reporter. for more on the british banking picture, we have a great, great great read on the website. it is of course at bloomberg.com/euro. this is what it is. banks paralyzed as the election looms. check it out on the website. greg: greater insight. stay tuned for that. five day s of campaigning to go until the u.k. election. last night the leaders of the three main parties came together for their final televised event.

they took questions from an audience in a special edition of the bbc's question time. >> i know what is in the books. i know what needs to be done. i know we can finish the job without putting up people's taxes. my fear is this. those people who have opposed every step we have taken and every cut we had to make, i think they will make a cut on their own. reach into your pay packages and cuts into your pay. i don't want to do that. if you want a combovet that goes on reforming -- government that goes on reforming welfare, that's them. if you want a government that goes on with un r-reformed welfare and puts up taxes, that is other guy. guy: the other guy. ed miliband said he would rather lose out on becoming prime minister than do a deal with the s.n.p.

>> we're not going to do a deal with the scottish national party. we're not going to have a coalition. we're not going to have a deal. let me just say this to you simon. if it meant we are we were not going to be in government, not have a coalition, not having a deal, so be it. i'm not going to sacrifice the future of our country, the unity of our country, i'm not going to give into s.n.p. demands. i want to preet this point to you. i'm not going to have a labour government if it means deals or coalitions with the scottish national party. guy: finally nick clegg -- >> we should have a referendum on whether we should stay in or leave the european union when new spraurs given up to the european union. i will always argue that we remain part of the european union. guy: we'll have an opportunity

with another party leader. natalie bennett joins me at 11:00 a.m. francine: this is what sterling has been doing. it has dropped at a session low following the latest manufacturing p.m.i. data which came in at 51.9. the p.m.i. figure that was much below estimates is bad news five days -- six days until the election. let's put all of this in perspective. let's speak to our u.k. government reporter. thank you for joining us. if we look at the p.m.i. figures. well below economist estimates. well below the month before. this is not great news when you're the tories and you're trying to say you done a great job with the economy. >> no. of course we also had g.d.p. figures disappointing earlier in the week. the bottom line is do people really change their minds

because of economic data the week before the elections? they might. the tories are hoping that the reverse will happen and that people will think overall things are a little bit better than they were a couple of years ago. and in the last days of their campaign, they will think ok we'll stick with the inculp ben and vote conservative after all. the problem is of course everything is being spun to the very limit at the moment. each camp is looking at how the catch the other. guy: what should i take away from last night? who put their best foot forward? who delivered a decent message? who fell flat on their face? >> i was most impressed by the audience. they were a tough crowd. guy: torture. >> exactly. they didn't let any of the leaders get away with it. i think ed miliband set himself up for a bit of a fuel with his promise about the s. -- fall

with his promise about the s.n.p. he didn't need a deal to get him into government. the problem is what happens after? inevitably you o scuzz things with the -- discuss things with the party who'll be the third largest in parliament. the s.n.p. cameron came out well. he had his jacket on which was a change from previous appearances. he is certainly trying to inject some passion into what has been an overwhelmingly boring campaign. clegg with his message on the european union opened that door to coalition negotiations with the conservatives. francine: is the campaign going to get much more exciting? guy: ed miliband nearly fell over last night. it could have been a killing moment. he rescued himself.

francine: there he is. yeah. it happens. it happens a lot. it happens to everyone. kate middletonton. the royals are apolitical. kate middleton is very very pregnant. guy: rumor has it. breaking news. francine: this is very close right? they are spinning everything. if she has the baby on two or three days before the election which is very likely, can that have an impact on the election? is there an association with the toirs because they were in power when the first baby was born? >> i think it could be a race to which leader cratchits her most sincerely and maybe has a little emotion when the news is presented. who knows? anything can give a boost this late. guy: it is so tight. francine: a couple of babies.

guy: i'm surprised they are not all standing outside queuing up to hold the baby. this is a baby you definitely want to kiss. francine: it will be fun. it is going to be a great week. guy: you think things will lift up? >> yeah. francine: thank you so much. our u.k. election coverage leader. guy: it is friday morning. shares in business social media fell after the company reported revenue. linkedin forecast sales. it is the first time they have fallen short of analyst expectations. francine: tesla motors c.e.o. has come out with a home battery. it is to provide pollution-free energy.

apparently, they are about 3,000 pounds to get one. depends how much they power my home. why not? do a bit of good for the world. guy: tension is building for the fight of the century. floyd mayweather and manny pacquiao. it is expected to be the most lucrative in boxing history with estimates of up to $400 in revenue. pacquiao told bloomberg he was not afraid of being the underdog. >> like that. i love it. it gives me encouragement. encouragement to prove something in the fight. i love it. francine: i'm looking forward to -- i'm not going to watch it but i know we're going to have a conversation. i'm not going to watch it. you probably will. but we're going to have a great

conversation because this is a huge business story and we have been tweeting about it all day. will you watch mayweathers have -- mayweather versus pacquiao? we're back in two minutes. ♪

francine: welcome to "the pulse" live from bloomberg's european headquarters. i hijacked guy johnson's shot. there are rumors that kate middleton has gone into labor. guy: we're seeing this on twitter. francine has gotten very, very excited. francine: it might have an implication for the election. guy: that could have a stretch. francine: in a very uncertain election, you never know. guy: may day a much bigger figure. nobody is at their desk today. francine: that is the problem because european markets actually closed for may day. that doesn't mean everyone is off work, though, guy. guy: confident a deal will unlock the bailout. they are hoping to reach a deal

in greece by sunday. which is more exciting? greek credit deal or a baby? don't know. francine can probably answer that question in the affirmative. francine: we would probably say credit deal. unless we have twins. guy: credit agricole's c.e.o. joins us now. why is the euro as strong as it is now? >> euro strength is by unwinding of euro funded trades. inflation is negative in the eurozone for the first time in several months. investors are openly speculating about tapering. that forces them to take it off the table. they are long bonds and stocks. all of that is off the table.

they were hedging that by selling euro forward. >> it is more of a positioning story. i think that is part of a global story. that global q.e. trade. the u.s. inflation. inflation data outor japan. markets were buying stocks and bonds despite a weaker outlet. the e.c.b., the b.o.j. will continue to provide a put for the assets. that may be changing for now. i think it is too early to tell how long that will continue. but chances are we're going to see that squeeze continue. francine: if we look at the german man 10-year, how surprised were you -- german 10-year, how surprised were you by the moves? >> further demands cominging

from them should cap any spikes. the overriding concern the evaluation, really the prospect that needs to be -- q.e. 2, that means that those bond positives are in the price. the combination that could drive the yield somewhat higher and by implication to extend that. these are foreign investors. that could support the euro as well. greg: where the market positions in greece? >> marks have responded positively. varoufakis is sidelined for now. there is hope come may 11 there may be an agreement that the greeks could receive 7.2 billion of extended bailout funds. that said with markets, i've been talking to clients within the past few weeks. when i mentioned the third

bailout they were going so what is the issue there? it is an issue. when discussing the extended bailout funds, that is part of the second bailout. when merkel asks for approval -- francine: this is after three months. i'm not shur we'll get an glement the next 10 days. red lines at this moment are so big. who is going to give in first? will it be greece? >> that is what the market thinks is going to happen. as long as contagion is not an issue, the creditors have no incentives to give in. that's why i think if anything, longer term, may 11 would be that -- will get that deal really in place. long-term, the risks could still be on the downside. the issues surrounding greece. the membership could linger. they will need a third bailout. that means money to be added to the already -- who is going to

approve that? the creditors? who do they want to deal with? if anything yes, europe could -- getting closer back to that range. 11r5. the risks at the end of june, i think it would still be on the downside. francine: thank you so much for now. stay with us. we'll be talking a little bit about the fed a little bit later on. guy: we certainly will. coming up, we're going to hear from the mayor of milan at the 2015 expo. the event could attract 20 million visitors. we'll break down the figures after the break. ♪

francine: milan says bonn journeyo today and opens its doors to the world expo with 10 million tickets already sold, it will add as many as 90,000 jobs thanks to 2.5 billion in public and private investment. the mayor said he hopes the jobs will stay for good. >> for the next six months, we expect 89,000 jobs to be created. we hope that the expo and i am

convinced of that, will be a success, not only will these jobs be permanent but they will increase in number because milan is becoming more and more an i attraction and the expo will be a test for the food business, tourism and trade. francine: we're back with credit agricole's head of research. in terms of the jobless rate in italy, when you look at milan expo, i'm sure people want to to go but actually it is a jobs creation story when you see unemployment at 13%. are they pushing reforms through that are needed? they need to do more. >> they do try. the last couple of of days we had another victory. the election reform seems to be -- as well. obviously it will take time to see the results. the facts that the unemployment rate keeps growing and it is not

an indication. the ve view for the eurozone, the combination of increase in bank lending is still quite supportive. financial conditions could support domestic demand that could help bring down unemployment. tourist season is coming as well. i guess that is good as a whole. but the thing the recovery that we're seeing here, right, assuming that greece does not cause further trouble, there is no contagion that, recovery is here. they are on the verge of a cyclical upnurn the coming months. guy: why is the pound as stable as it is now? >> people are -- it will be put to the test. just interesting to see that it is quite a discrepancies. the -- it has hit at the highest level since the scottish referendum. we would not know what the outcome is going to be right

after the election. real uncertainty may kick in the week after. i think that is a factor to undermine the pound. francine: thank you. we're back in two. we'll talk batteries.

francine: welcome back to "the pulse" live from bloomberg's european headquarters in london. i'm francine lacqua. guy: and i'm guy johnson. these are the bloomberg top headlines. francine: lloyds profits rose 21%. they are set to beat their lending profitability targets. guy: the lenders, the leaders of britain's three main political parties have taken part in the final major tv event before the thursday general election. david cameron faced tough questions over his economic

record while the labour leader and democrats leader were grilled about possible coalition deals. francine: the greek prime minister tsipras said they are close to unlocking the bailout fund. the aim is for finance ministers to sign off on the accord by their next scheduled meeting may 11. guy: it is may 1. to be honest, i'm not sure why jonathan ferro turned up for work today. francine: currencies. jonathan: francine lacqua, the only person that has my back. let me bring you over to the market. two of the markets opened today, ireland. the ftse 100, look at this. a day off for everybody else. the ftse down about .10. the biggest move shir lloyds bank. profit up 21%.

expected to beat their profitability target and no p.p.i. provisions for a bank that has been battered by them. stock goes higher. in a bond market. what a week it has been. quite a monster week for the german bond market. if you went to sleep this time last year and woke up this morning, you would be like wow, a yield of 0.3 on a german 10-year, that is low. i say wow because two weeks ago we dropped below five basis points. the yield doubled in a week. a remarkable week for these bond markets. is this the beginning of return or just a squeeze over their last few days? in the fx market, here it is. euro/sterling. weaker this morning. there you go. .6%, the euro up against the pound. big miss of p.m.i. a seven-month low.

they are blaming this one right here. a strong pound against the euro. you saw the trend at the beginning of the year. it was weaker weaker euro, stronger stronger pound. more to come maybe? i'll see you monday. guy: i knew there was a reason why he showed up. we'll be back on monday when everybody else will be at work. need to coordinate these things a little bit better. francine: we'll get a speed dial or something. a major announcement from tesla. they are building a new generation of batteries that could power homes and even the grid. tom randall takes a look at the emerging market for energy storage. >> tesla is making a bet that an enormous $5 billion giga factory will serve a problem that the power industry has so far failed at. to create a cost effective

battery to store electricity on a massive scale. it starts with small back-up systems for people with rooftop solar. great for those that want to live entirely off the grid but that is a tiny parking lot. for households still connected to the grid, the batteries are not yet cheap enough to make economic sense. there is a much bigger market tesla is going after. businesses and utilities. here is why. in the next five years, solar power will make up more than 50% of california's electricity during the sunniest part of day and provide no power at night. batteries could help even out the power supply by storing electricity from off-peak hours. shifting the peak could cut you till bills for companies like wal-mart which are already testing the new systems. some utilities are also eager to

build power storage. they must build expensive facilities that is it idle for most of the year but are needed when electricity need is the greatest. cost of batterys is falling as fast it is a cost of solar panels. very fast. the tiny new energy storage industry is about to break open. wh it is from tesla or one of its many emerging competitors, electricity may soon be coming from a battery. guy: for more on tesla's big battery move tim joins us now for more. what is the magnitude of this announcement? >> it is a really big deal. it means you can get solar panels for roof of your house easily. now you can, you know shop at tesla and maybe home depot, buy

the tesla battery and put it in the garage and fire your utilities. francine: this is going to work if it is cheap enough for people to die. -- buy. >> that sounds a lot lower than i would have expected to be honest. guy: the costs -- what are the manufacturing limitations on what can be achieved here at this stage? >> well, the giga factory is not built yet. he is going to be trying to meet demand for his cars and these batteries. how many batteries can he actually produce? they will also at some point become a question where is all of this lithium going to come from? francine: so where is it going to come from? >> australia like everything else. francine: on a serious point, tesla is the first one. are we going to see a massive race? this is a big industry. this means big bucks. are we going to see many other

companies try to get on the game? >> absolutely. panasonic and others are already building batteries similar to these. yes, of course. behind the scenes there is a much larger overt can we build a battery that is, you know, less costly and more efficient? that, you know, can charge -- make my car driver longer. that is where the real race begins. if you this breakthrough where you can get something that has greater energy density. guy: the chinese scaled the hell out of the solar market and reduced costs. where are the barriers to entry to this stuff? is this technology relatively simple? the difference between a good battery and a bad battery may be significant. can the chinese scay scale this stuff? >> i would have thought so. the elon musk said this is technology others can replicate.

greg: when will we be able to buy them? this summer i think. there is just a couple of months left. guy: linkedin is not connecting the dots. ryan chilcote joins us with more on this story. ryan what happened? ryan: effectively what this is profit aside this is a revenue issue. an issue with revenue the future. if you look at the first quarter, the company generated about as much revenue as investors expected. you look at this quarter, how much the company is bringing in right now, it is falling short in terms of a the expectations. not wildly short. the expectation was in the second quarter they took in $18.7 million. furthering that theme, they

changed their full-year guidance. that spooked investors. this is not a company that has trouble monetizing its business model generating rev nusme the issue here is it is not going to be generating as far as we know based on yesterday's conversation with the company, it is not going to be generating as much money as investors thought it would. the expectations are pretty big. they obviously got very punished for that. francine: ryan, what is going on inside the company? ryan: i spent last seven hours reading a lot about linkedin. the business model is job listings or talent solutions. that business is up 36% but it is not growing as quickly as it has if the past. what is that? there are big companies out there that pay as much as 8,000 bucks per seat per year to have this recruiting tool they have. those sales are up. who can complain about 38%?

the growth in the past has been even faster. the next thing they have 62% of all of their rev nusme premium subscriptions. i don't know if you have ever paid for it but they used to be much cheaper. now they are more expensive. they go up to $130. les than 4% are paying the premium subscription. that grew. i think the most interesting part to look at is their marketing arm which is kind of new. basically ad sales. what they said is display ads, traditional ads that sit next to content, the growth there is slowing. growths there slowed by 10% year-on-year. that is a big concern. people wondering how are they going to manage that? they have these things called sponsored updates. that contributed 38% was the growth there. the big issue with the company

in terms of its business outline, they just acquired linda.com for $1.5 billion. they did that in april. the company yesterday told us there are going to be costs sews yayed with that acquisition -- associated with that acquisition cll be delayed. that really spooked investors. francine: thank you very much. ryan chilcote with the latest on linkedin. guy: the fight of the lifetime. pacquiao and mayweather. more on that next. ♪

guy: we were waiting for sound there. there was going to be sound of manny pacquiao speaking to bloomberg about tomorrow's big fight in las vegas. what he was saying is it is pretty tough but i like being the underdog. francine: this is the fight of the century. we're going to do it in just a couple of seconds. this is pac-man. you call him mr. pac-man? guy: i just call him sir. >> i like that.

give more encouragement. prove something in the fight. i love it. guy: so what makes this bout such a big deal? the simple answer to that is money. take a look at the numbers. >> floyd "money" mayweather versus manny "pac-man" pacquiao isn't just one of the most anticipated boxing matches of all time it is also the richest. it is projected to shatter boxing revenue records. it is paper view -- pay-per-view's most expensive boxing match ever. the fight will be held at the m.g.m. grand in las vegas which seats 16,800 people. face value tickets range from

$15 on that to $10,000 though the $10,000 seateds were -- seats were not sold publicly. it is expected to reach a staggering $72 million. 3 1/2 times more than the record set by the mayweather versus alvarez fight in 2013. fewer than 1,000 tickets for the upcoming fight were sold to the public at face value and 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'll win, both fighters are set to

pocket millions. splitting the purse 60/ho in mayweather's favor. he is projected to make $180 million with pacquiao walking away with more than $120 million. with money like that everyone walks away from this fight a winner. francine: for more on the business of this big money fight, we're joined by a managing director and c.e.o. of hennessey sports. there you go. i'm very excited about being in a boxing ring. let's start with you having been in the business of promoting boxing for a very long time. what does such a big fight with so much money mean for the boxing world? >> this is -- this is just incredible. i mean, its doesn't get any bigger for any sport. for boxing, it just takes it to a new level. the richest fight in sporting

history. you know, mayweather has become the richest athlete in sporting history. so it is just, you know taken boxing to a whole new level and it is, you know, potentially 3/4 of the planet could be watching this fight on saturday night. this is something the whole world is excited about. to be involved in boxing and to have this spearheaded boxing we're all excited about it to say the least. guy: how did it become such a big fight fingerprint what makes this fight in particular -- what is it that makes this fight in particular? >> going to head-to-head, the two biggest and best boxers in the world head-to-head in the same division. we haven't seen this since the 1980's when you had the marvin hag lovers this world -- haglers

of this world. the sugar ray leonards. we have over 23 million fans and followers through social media. pacquiao, i found out just recently, gained another half a million fans over the last month as well. that is only going to set to increase over the next few days. francine: mick, you have been promoting some boxing ledges. what does it -- legends. what does it take to be a business mind, a great boxer, but be something that you can actually market and make into a brand? >> well, mayweather in particular, he has gone from a fighter who were super talented, probably denied a gold medal at the olympics. he ended up with the bronze but most people thought he won that fight clearly. he went to becoming a brilliant stylist. an excellent pro who wasn't marketable for many years. then he got himself into a

position and you know obviously he started with his different personas with the camera and started fighting all the big names of the sport taking them on one by one and with every big name he has taken on and beaten and defied the critics, he just got bigger and bigger and bigger and his brand just got so big and because of his lifestyle and he is larger than life, he is just you know, love him or hate him, he captured the imagination worldwide. of course manny pacquiao you know, his fighting speaks for itself. he is a very, very exciting fighter. he is the kind of guy that people really, you know love to love. he is very, very humble and he is, you know very caring. you know, he is a people man. the public get behind him in a big way. so, as john said, it is every

piece of the jigsaw is in this fight basically. it is a blockbuster to say the least. guy: talking of manny pacquiao. he has been very successful from a advertising point of view. he is getting a slightly smaller slice of the cake when it comes to the takeaway from this fight. in interpret s of who comes out of this well, who do do you expect to win the hearts and minds in advertising? >> i think pacquiao has already won that. i guess he won the first round. won the right of sponsorship for the fight. he outguns corona who always supported mayweather. his shorts alone are worth $2.5 million alone to brands. he is very well known worldwide, particularly in america. 2/3 of the u.s. population are

aware of pacquiao. he is in the same ballpark as mayweather. but he scores very highly in terms of trust and credibility. that's why brands like footlocker associate with him. francine: they are both in their late 30's. this is old for the industry. is this the last pay package for them? >> it could well be. pacquiao -- i guess mayweather is going to go out with a clean record across his professional career. this could possibly be the last round for them. guy: we're going to get some quick calls here. john, who is going to win? mayweather. guy: mick? >> mayweather on points i think. guy: i think -- >> i think it will be a great fight while it lasts. i think pacquiao will get hearts

pumping but i think floyd's brilliant defensive skills he will win by decision. francine: i'm going to say pacquiao because he gave us an interview yesterday. guy: there you go. francine: thank you so much. nick hennessey, a box progress moater. guy: we'll get back in our corners. coming up, warren buffett had some billionaire blues. why 2015 has not been a good year for the oracle of omaha. stay with us. we'll see you in a moment. ♪ >> ♪ i would like to buy the world a coke and keep it company i would like to teach the world to sing in perfect harmony ♪

guy: welcome back. you're watching "the pulse" live on bloomberg tv. streaming on your tablet and we're on bloomberg.com. francine: we're watching warren buffett today. sberk -- berkshire hathaway holds its aatm tomorrow. >> ♪ i would like to buy the world a coke ♪ guy: it has been a tough year in terms of the performance. he has lost more money than any

billionaire. still looks pretty cheerful, doesn't he? francine: yeah, he does. "surveillance" is up next for our new york viewers. for our london viewers guy johnson. guy: politics. ♪ .

tom: sell in may go away. is the higher yields upon us? the ramifications of a better euro, stronger america.

tesla bets on nevada. i am sure flow would mayweather and manny pacquiao are off when we can for sports. good morning, this is "bloomberg surveillance." we're live from our world headquarters in new york. it is made a. i am tom keene with olivia sterns. olivia: new details emerging in the freddie gray case. officers who arrested him made a previously unreported stop on the way to a station house. a baltimore tv station says the autopsy showed injuries like those suffered by car crash victims. the suspect, who was black and unarmed, died of a spinal injury while in the custody of baltimore police. the city was mostly quite overnight, a third night of curfew was ordered after protesters rioted monday. prosecutors don't have the police report but police are releas