caroline: asian stocks and bonds extend the 2 trillion mark. warnings of high violations and debt marketing. mark: investors weigh a slumping supply against preparing against drilling. whether crude can keep rallying. greece's access to cash, we tell you what it could mean for greek lenders. caroline: election day in the u.k.

seats in parliament up for grabs, and the makeup of the next government hangs in the balance. mark: welcome to countdown. also coming up today, we take a look at what it takes to be a successful boxing promoter. we bring you my part to of the interview with frank warren. we are also getting breaking news from the largest engineering company, they are cutting further jobs. 400 jobs, burdened by the declining oil price. profits from the so-called industrial operations fell to 4.6 billion euros.

that is down from the 1.7 billion euros from the analyst numbers. kaiser, the chief executive, has announced 9000 job cuts in the last six months. he is trying to achieve one billion euros in savings by next year. he is focusing on energy generation and distribution facing investor pressure after his decision to spend $7 billion acquiring another company. since that deal was agreed in september, the euro toppled against the dollar, and oil has fallen by 29%. placing the rationale of the takeover in question. reaffirming siemens they expect

earnings-per-share to increase by 15% from 2014. 6.3 seven euros with a profit margin 11% added to the industrial business. the big news is that siemens is putting another foreign half thousand 4000 jobs. caroline: let's turn our attention to the $2 trillion, the global retreat of stocks and bonds is continuing asian today. and the latest concerns comes from janet yellen, herself. she yearnedwarned about the debt markets. janet yellen: to this point generally, they are quite high. they are not so high when you compare to equities in return to assets like bonds which are

also doing low. but the potential danger is there. caroline: the warning extended a retreat. in the states, stocks and treasuries dropped against the dollar. private payroll numbers missed estimates. job figures from the u.s. on friday investors looking for clues on the state of the world's largest economy. for the latest manus is ready for us with a touchscreen for the european story. first you, give us a sense what is happening in the asian trade today. >> good morning, caroline. slumping the most japan is coming back online after three-day holiday. down 1%, the big story is that

the selloff is in china. that three-day row, is the worst in nearly two years. down about one and 1/5 of a cent, the alarms are sounding louder. morgan-stanley, says they are downgrading their call on china. the evaluation is just successive. it is just too big of a disconnect, and economy is showing signs of deterioration. the numbers just do not add up. and this as we have been reporting 800 and 8383 days old. long overdue for of a reversal. in terms of the big decliners, utilities and industrials down about 5% for today.

and there is speculation that the government may be taking measures to control this margin trading in the market. we will see how things go here, but today, not looking good for asian stocks. caroline: yvonne man, inc. you. manus: the headline stories spot on -- $2 trillion have been wiped off the markets over the past 10 days. there is a bit of a turnaround in the dollar originally in the u.s. equity european futures are estimated lower. i can tell you what happened before came. the dow and the s&p coming back to virtually unchanged on futures. the question have to ask yourself is whether the dollar's decline whether that is to do with an overvalued market.

and the bond market is that beginning to prepare for reflation? janet yellen said that social media and biotech stocks were overstretched. we'll be lost about half of a percent, but yellen was warning about high valuations. it is more about the data, as we run of the unemployment numbers tomorrow. adp, the private payroll report, economic advisers are the weakest since 2009. but the real market movement is this, the entire 2015 rally in the german government bond market is gone. the average boom over the past five years is 1.78%. has this got more momentum?

that is a question of markets will be asking. have a look at these two markets. japanese markets reopened after holiday, that was a big decline and the biggest rise in yield in almost three months. what a conundrum for the reserve bank of australia. the aussie ions are rising for the eighth day in a row, the longest winning streak since february 2011. question you ask yourself is whether the yields is an opportunity for you to reconsider and come back in and buy. john was in yesterday saying that is a possibility in some of the bond markets. the big movement in the bond markets is predicated upon oil. ryan will join us later to run through a slightly more interesting take. $60.56, oil is rising.

the momentum and oil is there for all to see. this is a rally which is really begun to take flight. the question is the sustainability. one of the opec producers now saying they see oil at $75. where are we? the analysts were saying 30 bucks for oil. bank of america, barclays were talking about $40 oil. so, for the moment the dollar is changing its direction ever so slightly. let me show you where we are with the euro dollar. by the way mark on the bloomberg story last night, he said that it is time to close your short position. the value is running out of steam. just a little bit of a mixed

sector coming europe has indicated low on equities. mark: after rising 40% in three months, just beating the 2015 high of $70 a barrel, dashing the hopes of many abroad. ryan is here. put it into perspective. ryan: we heard manus talking about the bull run, if you care about the price of oil, what you are watching tim: 30 wall street time. no surprise there for wednesday. the surprise was that everyone was suspecting that the united states has more oil on cap, that the stockpiles have grown. in fact, they fell for the first time in four months. what should the price do, if you have less supply? supply-demand, less supply means the price you go up. the price fell to a half percent over the next two hours.

that suggest that maybe this bull run we have been seeing 40%, depends on wti, but her medic run-up this year. mark: there are a lot of elements, the dollar value dropping to 4%. where is his conundrum? ryan: the producers are driving this. if you think about it they have been cutting cost for the last 10 months. as we entered into this situation, the whole talk was $60 a barrel -- the big showdown between opec and shale. that is going to be the death of the shale producers. they're saying, actually, if you look at wti it is in the low 60's right now. actually, things are not that bad. we had the outgoing ceo of occidental petroleum saying that

things look better than we thought they were. they actually revise their production growth forecast, they thought they were going to grow 7%. now, they are saying 14%. there is a whole slew of shal saying it is time to producee again. we have heard this idea from daniel, who was the grandfather of the oil industry and one of the most respected guys watching the market, he said that this idea of an l recovery. it plummets and finds a floor. you should think of it more as a w. the price goes up, the shale producers -- i can produce again at this level. they produce a glut, you get these price and valleys.

as the ceo of the world's largest publicly traded oil producer, he said the same thing. expect a lot of volatility in the future. mark: thank you very much. [laughter] after boosting the amount of money the group lenders can access, the bank will decide whether to impose new restrictions. elliott has joined us, he is in london for this next couple of days. are they getting tough in terms of how they're going to treat collateral? the greek banks placed with the ecb. elliott: i think what we have here from the european bank is a dilemma.

interestingly enough, that is a greek word. i'm sure you knew that, mark. [laughter] mark: if i was around them. elliott: this guy lemma is of dilemma wants to help persuade greece to make more compromises needed to reach a bailout. it doesn't want to push them over the edge. and it doesn't want to stymie the ability to pay the loan. it is dayue after the finance meetings in brussels. the ecb is waiting. caroline: we do have that all-important meeting on monday. what are we encroaching on? elliott: the lead wants to give

politics a chance. if there are talks of progress if they are about to make compromises or reach an agreement, the european central bank -- if they seem to be further apart than ever, and the ability to increase the amount of collateral they demand, it is about 23%. the greek banks need to get emergency liquidity assistance. the ecb was even looking at 90%, which would be consistent with those greek assets being in default. it is quite -- mark: you did say that benjamin netanyahu would form a new government. it was not a given, but you were right. it is very rare i give you credit.

elliott: you could say it is very rare that i am right. i think that benjamin netanyahu it was always good to go down to the wire. they want to get the concessions, he gave the justice ministry in charge of appointing the attorney general. some talks of watering down the supreme court there in israel which many both inside and outside see as the most trustworthy institution, they have often ruled against them when it comes to dealings with the palestinians and the west bank. and the majority of one. talking about the u.k. elections it will be interesting to see if the outcome is as close as it was there. mark: thanks, elliott. caroline: top stories on bloomberg this hour. the united kingdom has gone to

the ballot box today. 600 and50 mps will be elected, and registered voters will be there can determine the makeup. they will be open from 7 a.m. to 10 p.m. u.k. time. and tomorrow from 6:00 a.m., and bring you 12 hours a break it ing news. to track the outcome of this general election. australian employers are expected to cut jobs in april. and a resilient currency with local industries. that is compared with the forecast of 4000. israeli prime minister benjamin netanyahu succeeded in forming a new government. he was able to win by the slimmest possible margin to win

in parliament netanyahu struck a last-minute agreement with the jewish home party to give up 61 seats in the 120 member parliament. mark: join us on twitter there as caroline was saying. we might even engage. that would be a whole new concept. we like the camera here at bloomberg. one day, we will let you see behind the scenes. don't smile like that, mark. caroline: let's check up on the lineup for the rest of today's show. that 6:40, part two of mark's interview on the business of sport. in just a few minutes.

mark: janet yellen has warned about high valuations in the debt market. ♪

mark: janet yellen talked about high valuations in the debt market. let's get the details. head of global market research, good to see you.

were you surprised at the openness of janet yellen? you are and fx man. you surprised at the openness? >> i don't know openness is the word i would use. i feel safe that the chairman of the reserve has a opinion. i don't know if she is worried about financial risk, or it is making her a bit more cognizant, but certainly, if i were the regulator or a governor, i would because it's of cautious. we are sitting here looking at commodities, currencies not so much. but fixed incomes, certainly. rationalizing what is driving this. and the fed was searching so hard, the drivers don't seem

significant. if this was to carry out a risk event or something we could pinpoint, at least we would feel more comfortable about it. what we are looking at really is something else, which says that what happened on october 15 in the treasury market -- the flash crash, or whatever you want to call it, is clearly liquidity involved in markets that did not exist precrisis. what are we going to do about that? caroline: you said that the fed is the imminent source of uncertainty. >> i think it is a huge source of uncertainty. what we are seeing, the u.s. looks ok. even if the fed rate hike takes place. you have the high manufacturing ism, the service part of the economy is doing really well. the wage number was good.

i think if payroll is consistent with market expectations at 2:30, i would say that it is not dead. manus: that is bringing a lot of people, it is a very lonely place to be. >> if you are applying probability to it, you say less than 50%. but i think we could rapidly approach that if the numbers go the right way. to highlight how close we are there are still questions about liftoff and what that means. manus: if you look at the dollar goldman: well. is that an opportunity for an fx man where that accumulate? >> i don't think the dollar trend has changed. in the last year the euro

fell almost in straight line. aussie fell almost in straight line. the sharpe ratio is just not attractive as it was. the most orderly market has been the commodity and rates stays where he was in a tantrum. mark: explain the aussie dollar's move since the rate cut. richard: when it was cut in february, it was the signal of something bigger. in our view, it was always going to be close to the end. i think it is compounded globally you can look at the australian case in isolation. no more on a six-month horizon. if we are having a discussion in nine months, and the world looks like it did two months ago

stagnation and searching for growth and yields going down they will be like other central banks. caroline: how much is that predicated on china going further? richard: china is a messy part of the puzzle. one of the most significant part of events, china is one of the few global economies where you can identify genuine risk. and the equity market was a great symbol of that. interest rates in china are the earliest since they started this policy. i think that for the next couple of quarters, china is going to look ok. one year out, they still have major structural issues. mark: answer coming into town. head of global markets. manus: coming up, alcatel lucent's 16 billion euros --

we're going to break down the earnings when they come out shortly after this break. and a quick round up on the foreign exchange market. stay tuned. ♪

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manus: it is 6:30, let's check in on the foreign exchange. it is just under sided, coming down to the three-month low. holding on dearly for grim death in the asian session. janet yellen says that yields could spike when the fed hits liftoff. the persistent dollar strength would pose a threat. that is what the imf says. we just have that conversation

with richard, and this overall move lower on the dollar. you might want to reconsider the possibility of acute leading dollars. dollars just reasserting itself. the euro has yet to make up its mind what direction was to go. yesterday, look at that. you put them in basis points nearly 157. nearly 1.5% rise in value. from a 12-year low, the risk-reward, this is the cio office saying that the risk reward might be traced back down to around basically 108 is where you may see it back there.

the other dynamic going on people are buying stocks and not hedging their euro position. the exchange rate of bonds, hedge euros. the least amount of money put into them since december. in march, it was 3.5 billion euros. people are buying stocks buying and not hedging. what happens next this is something that every central banker has a nightmare, it will change. it keeps on rising. it just keeps on marching higher. that is the thing with the aussie dollar. you got here at $79 $.92. but the bonds are rising and the money is flying despite what the reserve bank is doing. globally, the global markets are

parking money in the global dollar -- in the aussie dollar. you are to see another rate cut in october. it is one of those real conundrums, rising yields in the bond market. that is enough to wipe the floor for every central banker. caroline: looking at some of the fx effects. helped by euro weakness, beating analyst estimates by 9% to 3.2 4 billion euros. slightly better than last year a deterioration -- beating profits and sales, also gross margins. at 34.6% gross margins. remember, this is a company that is being bought to the tune of

$17.5 billion by note you, no less. kia, no less. even though no keykia says the deal basically has almost unanimous support. he says this is due to long-term industrial trends, not to one single cause. the acquisition very much on the table. the chief executive is saying the slowdown in the u.s. and japan not investing in infrastructure so much, the slowdown is not structural. clearly, this is a company building one of the biggest wireless networks and equipment makers. mark: i was just looking at the word conjunctureal.

the top stories on bloomberg. mark is cutting 80% of the casual gain company, less than a month after retaking the rate to the chief executive. 364 jobs, part of a cost reduction job that will say 100 million annually. in a bid to maintain the central bank cut its reference rate 1%. they're are allowed to trade as much as 1% either side of the day, 1% in january. higher u.s. interest rates, they will likely lead to cutting of domestic financial positions in asia and the pacific. this is what the imf said. except in japan and south korea, this could be sliced even

further when policy is raised. manus: later today, we get full resulsts. caught in consolidation in the u.k., what can we expect from the british monopoly question mark caroline: i'm talking all things. the former notley here in the u.k., now focused on broadband -- on mobile and television content. let's dig in for the fiscal year numbers. sales likely to be stagnant overall, when you look at bt. 17.9 billion pounds worth, but profits could rise. dividends could be increased, that is what analysts are expecting overall. you could see about a 2% increase in poverty

profitability. promising you tv content, mobile packages, all about building the broadband. to go to the company to get connected to the internet. clearly, this is where the opportunity lies. this is why they want rapid mobile, going back to mobile having exited a decade ago. let's look at the opportunities, as bt looks forward. they added about 120,000 customers last quarter, we are looking at what the overall acquisition -- the 12.65 billion pound acquisition. that deal is excited to be completed next year they set up this joint value. this is a company that is trying to reenter the mobile space. it could add 25% to their overall profits.

and indeed to boost their cash generation. it has already got a commercial agreement. they are selling packages, cheap packages. you can get a mobile package already for five pounds. you get six hours of internet 500 megabytes, unlimited text 200 minutes of talk you do not get a phone. this is a company that wants to norlure by offering you mobile and tv. tv content has been cking investing billions in sports. we know they're going to renew their legal rights. ague rights. that was a bit of a sigh of relief on future premier league rights. they needed cash to go forward.

let's look at what the challenges are still facing them. everyone is getting into quad play. a wave of water quad play now being offered. they're going to be offering mobile as well as broadband and mobile. one buying up 02. we want to know what the -- that is a 7 billion pound fish in. pension. what else can they do to reduce it? manus: join the conversation, all of us are on twitter. i am mark barton, i'm going to show you a splendid dawn in

london. we are looking at live pictures where else, the u.k. houses of parliament. it is election day. britains head to the polls to make of the next government. a pretty important day for us here in the u.k.. mark: the man who has managed and promoted some of britain's biggest boxers tells me what it takes to be a successful promoter. ♪

manus: the u.k. goes to the ballot box today. and votes in the general election. 650 of these will be elected, 50 million registered voters have a chance to decide the makeup of an ex parte. the next party. polls we open from 7 a.m. until 10 p.m. we bring you breaking news and analysis from westminster. we track the outcome of the uk's general election. the policy committee begins its two-day meeting at a later because of the general election. the meetings will conclude friday, a decision will be announced on may 11.

australian employees cut jobs and a resilient currency weakens co competitiveness. mark: today's business and sports section shows my second half interview with frank warned. i started by asking him, what does it take to be a successful boxing promoter? frank: i don't know, really. mark: you have been doing it for a number of decades. frank: four decades i have been doing it. mark: what is the secret? are there skills like running other business question mark

? frank: it is a strange, old sport. it is so diverse. most promoters come from a background like myself. that is where i come from. there is a harvard lawyer part of the ministration. bob aaron's and don king, we were partners for a while. you have your ups and downs with everybody. whatever he says, if he is going to do it, he will do it. that is the way he is always been with me. obviously, there are people who do not like him when they do not like me. look at football you see, ferguson -- look at virgin and

british airways. mark: d respect them? frank: i do. boxing is a tough business. sometimes, because we are close to it, you have to be a bit dispassionate sometimes. to get step back and look at what you are doing. if you believe in the fighter you are working with and you have a good chance of making it work. more importantly, most boxers come from humble backgrounds they have a chance money. they have a chance to set themselves and their families up. mark: there is one behind your left shoulder. frank: we had a great relationship. he made some serious money for my promotions, but you cannot get involved in that side. if something goes wrong, you

open yourself to all sorts of legal stuff. it is better that i have independent lawyers and advisers. mark: who had acumen, business acumen out of the ones you managed and promoted? frank: his family got involved they were a real pain in the backside. and i don't think he achieved what he was capable of. he should've been the best boxer ever out of the u.k. he started getting soft and listening to, in my opinion, bad advice regarding his career. he got booed out of the ring. frank gounod has done verybruno has done

very well. everybody is different. a footballer stops playing some people argue with money, some are bad. mark: when you look at bruneau and harrison, d.phil. sorry for them? frank: that is how people are. it is like people talk about muhammad ali with parkinson's disease. you are going to get parkinson's disease you're going to get. football is haddock, boxers have had -- all- olit just happens to people unfortunately. it is how they deal with it and what support they get. a lot of boxers do not get

support. there are successful boxers, and there are not successful boxers. like all walks of life. you have the top tennis player and the guys that are scratching around -- just making a living. frdon king was fearless in business deals. he is doing this and sometimes he would make the deal work. quite a genius. they didn't get into the sport until his 40's, became a prison. a black guy. he came into the sport and just totally turned it upside down. muhammad ali was around the most famous sportsmen of all time in the last century, and he was there. and don king got it out of

closed-circuit tv, using that model to promote. and then became paper you, now isy per view. mark: what he be number one? frank: he is 84 now. he was a great promoter. markbob is a great promoter, a great promoter. they're the same age. bob looks after manny pacquiao. he created the hispanic market in the states, yet if i that and bill that. he is now in china, macau, he is great a new market there. you have the golden boy with richard schaefer and you have

al who is raised $435 million for his new venture into boxing. on nbc cbs, spike tv espn -- he is buying the airtime. he is creating this brand. an ex-music guide, 59 years of age, suddenly out of nowhere. mark: is it easier or harder than 30 years ago. ? frank: when you're old, you always say years ago. that is just how it was. we are not interested in domestic boxing. so, working on that and breaking that stranglehold there were

not many venues in the u.k. you had when lee arena and the royal overhaul. now, every city has a big venue. everybody has a stadium. franki think it really is. you have box nation. you have sky tv. and you have -- it is a very healthy state. manus: the legend that is frank warren with the legend that is mark barton. everything you need to know about boxing and sport. go to bloomberg.com. coming up, what more could you work? it is all about carlos slim selling his townhouse. ♪

caroline: that means digital output time. amanda can do no wrong when it comes to wealthy investment, it is carlos slim. he managed to buy a townhouse back in 2010 for just over $40 million -- a double.

now on the market for $80 million. they're talking about how prices have escalated within new york. manus: if you like p orts 1815 was a great vintage they say. to celebrate the defeat of napoleon and the battle of waterloo. the tower of london some of thesetheby's sale. too late, ran out of time. mark: rail ofbarcelona, 3-0. messi scored. he scored the most goals in

champions history. one more than rinaldo. manus: we are back in. ♪

next we bring you the latest after high valuations. >> oil prices snapped and investors weigh the slump in supply against signs producers are planning to boost. look at where crude is rallying. >> ecb is putting pressure on citrus to compromise bailout talks. we tell you what it could mean for greek lenders. caroline: election day in the

u.k. the next government hanging in the balance. manus: welcome. caroline: we are just getting breaking numbers. for your adjustment earnings six point 2 billion pounds. that is just ahead of analyst estimates. the revenue coming in at 4.6 billion. we have underlying revenue just topping. we are expecting slightly sharper sales.

they say they have a normalized cash flow and the dividend is where we have expected. we expected 8.6, but it is gaining from the previous year. they say it is modest growth expected. it seems to be online. profit gaining and dividends up a touch. there is going to be more on those numbers. the finance director. is he here? are we going to be speaking with the interview? thank you for joining us this morning.

modest growth next year. talk us through drivers of growth. >> in terms of results, we are very pleased with what has happened. we beat consensus by 50 million in terms of market expectations. we beat expectations with cash. in terms of next year the growth is going to come with our investment in sport and what we will do in relation to the global business+++

when we talk about modest growth, it is on the back of the big investments we made, which will not make a return. also in the fact that previously we have taken our labor costs below the line. overall, the underlying growth will be 3%. >> how important continues to be the move to quad play? they actually get their internet from one provider. what sort of market share do you think they will have in terms of quad play? >> i think with the levels of penetration they have made in relation to internet broadband base. we know from market research that 80% of people are interested in this area. we feel we can make reasonable levels of penetration. what i will say is it will be a driver for growth in the future. >> we understand you are giving

paperwork this week. is that correct? have there been responses so far ? >> we are very confident this deal will go through. it is a question of whether it will go down in phase one or phase two. that is all i can say at this point. the big consultation discussions have gone well. >> in terms of the pension, 7 billion pounds you were putting and 2 billion to pay it down. you took a big hit of that overall. in april you put aside one and a half billion pounds. where do you want it to get to, and what sort of timeframe are we looking at to ease the deficit? >> i cannot predict what is going to happen to the deficit.

i know we are in an artificial situation. for me what we have got is real certainty over the next three years. we made an agreement, which was a good agreement from both sides. for us we have got certainty. we view the discount rates will eventually go down, and the deficit will hit near the median. the median was about flat. no deficit at all. caroline: you talk about the deficit you made in sports, and that will be rewarding in the next two or three years. some analysts are saying the poll isn't what it used to be. how content are you investing? is it crucial to have the content there, or is it more

about having mobile in the full array? >> our offerings have gone very well. it is the key driver in terms of consumer performance. in terms of bt sports, the average audience pictures have gone up 50%. our rugby coverage has gone very well. we are going to have the chance to inflate this year. that means we will be televising twice as many games involving english premier league clubs. the quality of our proposition is dramatically different. >> him in a, are you going to see more deals -- him in a, --

m$a are we going to see more deals? what's i think it is a big deal. >> thank you for talking through the latest numbers, beating analyst estimates. >> the $2 trillion selloff, the global retreat is continuing in asia. the latest concerns come from janet yellin. >> i would highlight the equity market valuations are quite high. they are not so high when you compare the returns on equity's two bonds.

-- equities to bonds. >> the stocks 600 closed down 6%. the dollar dropped against the euro. the adp payroll numbers also missed estimates. manus, you have got the full story. >> the dollar is lower. bond prices are falling. yields are rising. 2 trillion and counting. janet yellin said biotech was stretched. this is how u.s. equity futures were lower by three quarters of 1%. this is coming down from an uptick earlier in the session.

just a short time ago we were looking at dax futures. you are right. a fairly negative outlook for tomorrow. let's go to bond market prices. folly yields are rising. 2015 gains are gone. that rally is gone. the five-year average yields on the german government bond market is around 1.78%. is it an opportunity for investors to buy at the periphery? still a little early. the question is, is there

something more to do with the oil profit? have a look at the aussie bond market. prices falling at the of the move. this is the longest rising streak in terms of yield in australia since 2011. ozzie bonds trade at 2.98%. stephen major says the bond markets have got indigestion. the japanese bond markets rise the most in almost three months. we will extend the conversation shortly. we look at the dollar, trading near its three-month lows. will that continue? i have lost my oil chart. there we go. this is west texas, down half a percent. stockpiles are down.

there is a man sitting beside you who has got the answer. back to you. caroline: we are talking oil. the commodity has just started to pair its gains. ryan chilcote, you have got the details. plus i'm not sure i have magical answers. i'm not sure anybody does. >> you have been speaking to key experts. it is going to be volatile. >> if you trade oil, it is 10:30 on wall street. we learned that the stockpiles for the first time actually fell. the expectation was they were going to grow and they fell.

we are only talking about a fall of about 1%. still half a billion barrels of oil. the price actually went up. the price went down. it is still down by 3.3%. i think that tells us what we can expect with oil prices. the idea was price would plummet and it levels out at a lower price. some people are still calling it a price but not leveling out necessarily. they have been talking about a w

shaped recovery for the oil price. effectively, what they are saying now is with the oil price where it is, we are feeling better than we thought. five or six months ago everybody was talking about $60. they are finding daily laid off all these people. they are prepared to reenter. >> that is the point. >> they can move quickly. we are right in the threshold where they can make money again. they exit and come back. you have a lot of volatility.

the ceo told me this doesn't feel like the kind of time where we will see oil price pick up soon. he thinks it is going to continue. the point is it is going to continue with a lot of volatility along the way. >> thank you very much indeed. >> let's get you up to speed. the central bank will decide at the next meeting of the finance ministers whether to tighten greek accent -- access to liquidity. the ecb is expected to raise the level unless the government shows a willingness to compromise in talks. the u.k. goes to the ballot box to vote in the general election. the registered voters get a chance to decide the makeup of

their parliament. around 50,000 polling stations across britain will be open after 7 a.m., and they are open now. they will close tonight at 10 p.m. we bring you 12 hours of breaking news, market reaction an analysis of westminster, the city of london, and europe. the bank of england's monetary policy committee begins its two-day meeting a day later than usual. the meeting includes friday, and a decision will be announced on may 11. the number of people employed

fell from a month earlier. compared with forecast. >> join us for the conversation on twitter. trending things on the u.k. election. also trending. >> thank you, good night. we are in the finals. ♪ manus: coming up after the break we are joined by the ceo. it is his first interview of the day. stay with countdown.

>> welcome back. first-quarter income falling. to be fair analysts surveyed were predicting 53 .5. let's bring in the chief executive. good to see you. you did miss it just slightly. >> i think it is adjustment on the euro. we have outstanding debt payment from the molly government. it is a big swing from last quarter, where we had a positive adjustment. that is really the answer. >> that explains everything.

>> we seem to be in a new normal. could it creep higher? >> i think we are making a profit. people talk about cash flow. if you look at our net cash increased by 71%. >> is that coming out of the business? >> taking out some of the working capital and the other thing is we allocate capital at $1000. our view is the range is directly related to the industry

continuing to produce goal at -- produce at a loss. people are not prepared to take unprofitable reduction off the table. >> what is it with commodities? is there an obsession about growth? why is it that oil, iron or, keep taking oil out of the ground and won't learn? >> they are very different. you don't cut when you are making a profit. a large part are making profits at these prices. the difference in the gold industry is the majority is not making any returns on the gold.

the reason they have to produce it is the debt is too high. that is what is keeping the gold. the market itself is very healthy. we have seen this support you see. >> i think every time you come in and mark asks these questions you think you are going to get a blockbuster deal. is it getting closer? where are we with that? >> the last time we talked about it, was five years ago. today we are sharing a very interesting target. it's the very early stages.

we haven't drilled it yet. what we have done stacks it up with other main discoveries we have made. for the first time we have a tangible exploration project. we have already moved the rigs there. we should have a good handle the next time we talk. mark: were you rebuffed? apparently you made an approach to buy a mine. give us an exclusive. >> our discussions sometimes when projects don't work or are

presented to the market as not working we approach and suggest we could recut it at $1000. >> how often are you doing that? >> we do it relatively often. >> you get rebuffed? manus: he is not very helpful. >> we are very thin on him in a -- on m&a. >> you have 500 million to 700 million? >> we are growing our cash. everyone is selling assets. they are selling the assets they don't want, and they are not

valuable. it's a tough business. we need to get a point where people are selling assets they have to sell. >> good to see you again. stay with us.

manus: 7:30 in london. the dollar at a three-month low. we saw a variety of things. economic surprises were the worst since 2009. the trend is virtually flat at the moment. we did turn a little bit negative. richard making the point that any drawdown on the dollar

pretty much since the start of march, that was piqued dollar. there is an opportunity to actually pick up dollars. the euro is also 113.55. the euro put on 157 basis points. pretty much the risk reward is done. they say it could get down but they have a neutral weight. another story we are running.

people hedging, using hedges. the asset class is falling. it was barely half $1 billion. people are buying european assets. >> and employer unexpectedly cut jobs. the brazilian currency weakens the competitiveness of local industry. the number of people fell from a month earlier compared to the economists forecast. israeli prime minister benjamin did ya who succeeded in forming a new government. he was able to reach a majority in parliament. he struck a last-minute agreement, giving him the seat.

alcatel lucent reported an increase in first-quarter earnings. adjusted operating profit more than doubled. sales rose 9%. >> europe's biggest engineering company announced another 4500 jobs could go. that is after numbers missed estimates. >> the thing they have been warning about for a couple months is the ceos try to focus on distribution. of course those sorts of businesses are not going so well. that is one of the main reasons behind it.

>> what about the implications for the chief executive? where does this strategy leave him? >> it does not look great. energy is not going swimmingly. it would offset any problems. if you're not going to buy oil generators, you might buy wind turbines. now it is 13,100, which is above the 10,000 analysts addicted six months ago. we will have to see if that is going to be the case. >> thank you very much indeed. >> after more than six years the federal reserve chair says

stocks and bonds are highly valued and bond yields could see a sharp jump. let's get more perspective. peter, great to have you with us this morning. janet yellin telling us what to do in markets. she is worried about bond yields. is it indigestion or something bigger? >> it is really expensive. it is amazing. she is only telling you what you knew. >> are you challenging? >> bond yields, it's interesting. they responded very interesting when they said inflation is possibly coming back again.

it doesn't stop anyone from doing anything. that's the problem. you have a momentum. just keep going. it is a momentum driven market. is it going to change people's perspective? >> yours comes two weeks after it started. is this going to come to an end? do you expect them to dive back in? >> there is though rationale. they have beat earnings by being only 4%. domestic profitability in the u.s., thanks to the dollar. it's one of those magic moments where there is no sanity left.

she is only telling you what every investor knows. the truth is the average stock in the u.s. is incredibly expensive historically. it's not my opinion. they are just matters of fact. quest what are the signals it is coming to an end? you are saying it probably won't change that much. >> you are going to get a situation with ketchup from europe. brazil is still a credit crash. in asia china looks insane. you have got 1.6 million in

april. >> the price earning is not so bad. compared to previous rallies is not so high. >> it depends which bit you want to buy. you and it going in the opposite direction. if 80% of the people buying have never traded in their lives. it is fascinating to watch it. >> the fact we are starting will that work? >> the pricing hasn't stopped. all yellin is suggesting is they justify the price earnings. at best you get stagnation. as we go through this transformation of interest rates and hopefully become stimulated cyclical growth, which is what she is implying.

it is also interesting when we raise interest rates. that is interesting as well. >> you say that as if it is a surprise. >> i think it pushes it to last year. manus: does it change the perspective? >> they might do it sometime this year. they have a change in trend. it is actually very strong. the debate is probably moved to september. >> japan. long-term bet? >> there is a lot going on. the most important thing is they are very cheap. everything going on is about infusing the corporate sector.

it is becoming a badge of honor. once the japanese tend to get the idea once they get a consensual view of the world, they tend to want to follow it. i think there is a lot of enthusiasm that benefits the stock market. it is very interesting. >> most people don't realize this. i think they think everyone works at sony. actually, they don't. we also focus on public debt in japan. the rest of the sectors are highly liquid.

i don't think they need the yen weakness. >> you are in japan. you go for the growth. you don't go for traditional benchmarks. it is the new part that is interesting. it is a generational change. i think that is also being missed. it's an exciting market. it is cheaper than anywhere else. it is genuinely cheap. most of the market is less than one. that makes it cheap. wi-fi by have got to move on. oil, do you trust the rally? >> it will go up a lot. i think you are at the top end now. it is interesting the commodities in stock. i wouldn't trust that.

>> you use more than three words, but you are a good man. thank you. >> join us in the conversation on twitter. let us know what you thought. the u.k. goes to the polls today. manus: we are going to take a short break. we are going to leave you with live pictures of a polling station in the united kingdom. equity is a little lower. mark: coming up, maybe you noticed the bounce in commodities. that is next. ♪

>> have you noticed the bounce

in commodities? the commodity index is a gauge of 22 commodities. and almost 13 year low. it has rebounded by 7%, which doesn't seem like a significant move, but when you consider the index is on track for its fifth consecutive drop, it's definitely worth a mention. during those four years, the index has dropped by 40%. since the all-time high, the index has sunk that 56%. commodity with the best return within the bloomberg commodity index is crude oil. no surprises for guessing that one.

it is no incidents it mirrored the low for the bloomberg commodity index. it was a six-year low for crude oil. it has rebounded. a rise of almost 40%. cutting the number of active rigs to the fewest since 2010. slowing output. another commodity which stands out is copper, with a return of 10% from march 17. copper's dissent began on january 29. that is the green circle. on tuesday, it entered the bull market, having risen 20% from the january low. it has been an extraordinary run with copper rising for eight straight days through tuesday.

it is the longest winning stretch since 2005. in february, 2011, it has risen. since the 13 year low for the commodity index, the global stock benchmark it gained by 2.6%. the bloomberg index has dropped. the treasury market has dropped by .9%. the euro zone bond market has slipped by 3.3 percent. commodities are very much the place to be since march 17. >> lets have a look at other top stories this hour.

an australian employer unexpectedly cut jobs in april. and this weakens the competitiveness of global industries. the number of people employed fell from a month earlier. the zynga founder is cutting 18% of the workforce. the move comes less than a month after taking the reins. the housing led to a plan that will save $100 million. the state bank of vietnam devalued the currency for the second time this year in a bid to maintain competitiveness. the vietnamese concert -- currency is allowed to trade as much as 1%.

>> some pictures coming through of the party leader. he is leaving the station right now. it is election day in the u.k. today. there he is. >> boosting the amount of emergency money greek lenders can access. they will decide next week whether to impose fewer restrictions. elliott got conjoins us. the ecb is getting tough. is that what we can take out of this? >> it doesn't want to push them over the edge. it has got a bit of a dilemma. it wants to play its part in prodding the greek government to make some concessions to try to get a breakthrough in the

bailout negotiations that have been going on forever. he doesn't want to impede the greek government's ability to repay the loan that is due to the imf next tuesday, which is the day after euro zone finance ministers are due to meet. i think they are hovering over. it is not going to decide whether to press the button until after finance ministers met. >> meanwhile, it seems the ecb does not want to get censored. >> the movement seems to be increasingly positive now that the greek finance minister is so heavily involved. the european central bank wants to give politics the chance. it wants to see what is

happening. it has the ability to demand additional collateral. according to one memo, it could raise that to 90%. it out to be extremely tough on those greek banks. the europeans want to be tough. they don't want to push the greek banks over the edge. >> the world thinks verify this -- for pockets has -- varifakus has taken a backseat. follow ireland. bad banks are in.

>> you are looking at live shots of the city of london. futures indicate stocks will open lower by half of 1%. stay with us. ♪

caroline: welcome back. we are going to have a little look at what is ahead for the open. really talking about the growth potential. mark: he said sports is going to push us forward. caroline: and more him inm&a to come. >> more football. low energy prices.

how do you make tires sound exciting? that is an achievement. raising sales estimates. caroline: on the move. a few minutes. and ♪

>> good morning, and welcome. i am jonathan ferro. moments away from the start of the european trading session. global selloff. about $2 trillion has been wiped off global equities and bonds since the start of last week. janet yellin once the valuation to hike. the shanghai composition heads to the biggest three-day loss since june, 20 13. analysts sound the alarm on chinese equity. the ecb is said to consider tightening greases access to cash next week.

only after euro zone finance ministers meet to discuss refinancing. the u.k. goes to the ballot box to vote in the general election. i am looking at futures markets. ftse 100 futures down by 27 points. back futures up by 54 points. i am looking at the bond market. bond yields higher. i will bring you the numbers. over the last 44 hours it has been one voice dominated. fed chair janet yellin. >> equity rates are generally quite high. they are not so high when you compare returns on equities to the returns on safe assets like bonds, which are also very