guy: beijing is set to intervene and that stock market as the country gathers to map out its economic future. the rebound resumes. rally in europe and asian stocks and emerging-markets strengthen. oil touches an 8 week high. it's job stay in the usa. data mean for the fed in the markets? welcome to "the pulse" here in

london. oregon johnson -- i'm guy johnson. francine lacqua will join us from new york in an hour. markets in europe starting to rally back. miners have been on a tear. anglo american up 150%. the miners are certainly season good trading. -- seeing some good training. . cac 344.18, flat. looking further ahead, let's talk a little bit about these other markets. brazil -- entering a bull market. we have seen a significant strengthening. shanghai comp flat. 37 spotude trading at

one. let's get you caught up on all the news you need to know. nejra: china's political elite are gathering in beijing to approve the communist party's 13th five-year plan. aere is pressure to find balance between growth and reform as well as improve the environment and ensure stability in the yuan. underdog republican presidential hopefuls have rounded on donald trump. marco rubio who spent the last week accusing tramp of being a con artist dismissed his immigration as un serious. ted cruz slams the numerous checks trump has written. >> the choice is who is best prepared to beat hillary clinton. donald trump has written checks to hillary clinton 10 times and four of those checks were not to her senate campaign. it was not that it was a cost of

doing business. it was to her presidential campaign. nejra: the german finance minister has made his feelings about a potential brexit clear. wolfgang schaeuble was asked about it as he appeared at the british chambers of commerce's annual conference in london. >> what would germany do if the u.k. voted to leave the e.u.? cry. could and i hope we will not. look, it's a decision of the british people, of course. news 24 hours a day powered by a 2400 journalists in more than 150 news bureaus around the world. guy: jobs day usa. today's number is forecast to show solid growth, 195,000 new

jobs. strong wage growth and unemployment holding at an 8 year low. if the data does not disappoint in 2016, a fed hike could be on the horizon. it is -- is it time to buy u.s.? 3.7%.the election, 6 let's bring in jim rogers, the chairman of rogers holders. he's long the greenback in short u.s. stocks. why you long the dollar? jim: because there is going to be so much turmoil in the world, people are going to fleece what they think is a safe haven. -- to fle to what they think is a slave humane -- to a safe haven. it's not a safe haven but they think it is. francine: guy: why not buy the yen? you flee to the japanese currency. jim: i own some.

i sold it last friday. i am out of the yen. they are printing a lot of it. they said, we will print unlimited amounts of money. of course they are. they are staggering. the yen is down 50% in three years. you may not call that monetizing but some people would. guy: is the fed one and done? jim: it is going to hike again, the, but what happened in markets as we start having more turmoil, more problems, people will call the fed and say you must save western civilization. youreople at the fed are cats and academics. that is why they work for the government. -- they are bureaucrats and academics. guy: when does it happen? jim: watch bloomberg news. how do i know?

guy: overnight we see jpmorgan coming out and saying it has, it sees a 1/3 chance we get a recession in the u.s. this year. 2/3 next year. within three years, 100% probability. jim: i say what headed percent probability within one year. guy: why do you say that? why do you say we are getting a recession? what is it you see in the data? jim: first of all, it has been eight years since we had a last recession in the u.s. historically we have them every 4-7 years, for whatever years. but look at the debt. it's staggering. japan is in recession. china is slowing down. half of europe is in recession. lots of things are going to cause it. guy: i'm wondering what the tipping point is. already happening. if you look at the employment figures -- payroll tax figures,

you see there are already flat. don't pay attention to the government numbers. pay attention to the real numbers. cratered at the beginning of this year. how did you trade that story? said you are short u.s. stocks. jim: i am. guy: were you short at the bottom? jim: i have been short since last summer and fall. there were 10 stocks that never went down. so, i short of those stocks. guy: and you made money. jim: i'm a bad trader. i am the single worst trader in the world. the only reason i shorted them and i'm not any good at this, because they never went down. guy: which stocks were they? fangs.ey are called

you know the names. last year, only 1/3 of american stocks on the new york stock exchange were up. twice as many stocks were down. the american market has been going down for 18 months. guy: what sense it up, the fact there were a lot of buybacks? you look at topline and you worry about topline growth. money.l this it is the first time in recorded history we have had every major central-bank printing staggering amounts of money. japan, europe, britain and the u.s. it has got to go somewhere. it's been going into stocks. guy: you talk about the dollar. that is a hideout place. jim: i own a lot of u.s. dollars, yes. i'm doing it to make money because as i said -- i think it is going to get overpriced. it might even turn into a bubble. if markets around the world are crashing, everybody is going to

put their money into u.s. dollars. the dollar, and i short commodities? jim, lovely. he's going to stay with us. first, china's elite gathers to approve the latest five-year plan. plus, a return from the cold as argentina looks to credit markets for the first time since 2001. we interview a former governor of the country's central bank. in more on jobs day. we had to new york. what this could mean for the fed. ♪

bbc is reporting that facebook is said to say millions more in u.k. taxes following the scandal surrounding the google playe -- paid in taxes. the british government going after these companies pretty hard. pretty happy is about that. he was just talking about the u.k. fangs. nejra: thanks. microsoft and google are among the tech giants that are act apple in its fight against the fbi. 15 companies, including facebook a friend of the court brief.

belonged to one of the terrorist in the san bernardino attacks that killed 14 people. goldman sachs and bank of america are planning job cuts to rein in costs as the market rout returns. it would eliminate salespeople and it's fixed income business. meanwhile, bank of america will dismiss 150 trading and investment banking employees next week. china's richest man as creating the world's largest cinema chain. amc, which isrols $1.1 billion.l for the deal combines america's second and fourth biggest theater chains. guy: thanks very much. china's political elite are in beijing to approve the 13th five-year plan. they are under mounting pressure as improveas well

the environment. npc officially begins tomorrow. of clearet in terms policy announcements and how are they going to tackle a slowdown? eidi: guy, that's right. we know we are going to get a lot of political pageantry. the key political event of the year. i think most analysts are managing their expectations. this is not a platform where you see surprises. it has been drafted a long time in advance. there is a reason why we refer to it as a rubberstamp parliament. very difficult conundrum. they are looking to prop up short-term growth, the slowest pushingars, but also through supply-side reforms to these steel and coal,

sectors that are not only wildly unprofitable but also conjured into the situation behind me where you have excessive pollution happening. are environmental and policy reasons why politicians have to stop dragging their --ls on thsese refose on these reforms. we are hearing potentially six or 8 million jobs slashed within three years. we have had part of the budget being dedicated to relocating these workers and putting in the they consolidate and take over to bring me soe sector towards a more profitable reality. as you mentioned, the yuan at the top of the agenda. this is the ideal platform for

the pboc. to get their message of stability. after so many months of volatility. we expect to talk more about the new currency basket. we know they don't the markets to free got every time the yuan weakens against the dollar. it is expected to give them mor e flexibility. lun joining us ahead of that meeting. let's get back to jim rogers, chairman of rogers holdings. apparently the chinese authorities are -- the stock market. what does that tell you? i'm not going to confirm or deny that. jim: any government who interferes in a market causes instability. and governments do it all the time. i hope they are not doing it. i hope they let the market hit its own bottom. speaking of china, that picture, the pollution is horrible. every time i go to beijing, i am

startled at how horrible it is. but that is an opportunity. one of the things i own in china, i own companies that are going to clean up the pollution. somebody is going to make a lot of money cleaning up china. it is going to take a long time. the short coal, long environmental companies. jim: i am not short coal. guy: do they have to devalue their currency? jim: the world has been demanding they let the currency flow for two decades. last summer they said, ok, we will tied to a basket of currencies. they call that devaluation. that is leading market forces take -- need? has been the strongest currency in the world for 11 years. now they are letting it float. been thatng that is strong for 11 year should have a consolidation. how low will it go? i have no idea.

i own a lot of renminbi. i'm long the renminbi. if it goes down, i hope i'm started off -- smart enough to buy more. guy: how big is the debt? jim: i do not know how big it is. i hear that and i don't know how they know. in 2008, when the world came to an end, the chinese started spending money. they had a lot of money saved. this time around they have got debt. they have never had debt for decades before. now there is debt in china. they say they are going to let people go bankrupt. i hope they mean it. in the west, we do not live people go bankrupt, but they are good communist. are they going to go bankrupt? they say it is. they say we are going to at the markets judge. guy: do think they're going to

let people go? jim: i don't know. but they say they are going to let people go bankrupt and i hope they do because there are plenty of people overextended in china. guy: stay with us. more tips. up next, breaking up is hard to do. we are going to discuss the u.k.'s european decision -- the brexit next. >> what would germany do if the u.k. voted to leave the e.u.? would cry. [laughter] [applause] guy: would jim rogers actually cry about this? that is the question we need to debate. we will do that in a moment. ♪

there will be consequences if the united kingdom leaves the european union. there will be constitutions a and lots ofequences fields. on the common market, in the financial centers, for the economic development between our countries. i am not suggesting it is all going to collapse. i do not want to be catastrophic that there will be consequences. guy: "there will be consequences." the french president speaking yesterday with a bilateral meeting with david cameron. let's gets to consequences and ideas about brexit. good, bad.

jim rogers still with us. if you had to vote, would you leave or stay? jim: for great britain, i would vote to stay definitely. to trade with europe without being in the common market is not going to be good or helpful. britain is already in relative decline over the past few decades. you've got huge debt. if you have to have more difficult trading, it is not going to help you. guy: you know something about shorting sterling. jim: i have no position -- i have a few quid in my pocket. guy: are they dollar braces? jim: i told you i am long the dollar. i'm putting them everywhere i can. in my socks. guy: why not short sterling? if you are worried about the brexit story? jim: if there's a consensus, i

do not want to do it. i never want to be on the same side with everyone else. by being long the dollar, i am short sterling, but i do not have any position in sterling. guy: talk to me about was signaled a sense. jim: i think sterling is going to go down whether the exit or not. they have got giant debt. great britain is in trouble whether the government admits it or not. current account deficit. jim: everything. guy: you don't believe the growth numbers in the u.k.? i'm comparing and contrasting. theow you don't like government statistics. you compare them with a consonant and they look a little bit better. jim: what sources of international income do you have? the city of london is not what it used to be. you don't make cars anymore or

motorcycles? guy: would you buy a house? jim: not with your money. house prices in london are going to go down. it's a bubble. you must know it is a bubble. guy: i just want to hear it coming out of your mouth. talk about the flip side of your trade. it is like a euro-sterling trade. i have got a euro that needs massive stimulus from the ecb. jim: no, no. i said earlier, lots of country in europe already in recession. go to spain and portugal and italy. they are not getting better. the central bank says we will print whatever it takes. you print a lot of money in it is going to make the currency weaker. guy: you would've thought it would've gone down much more now. they're talking about massive stimulus and the u.s. is talking

about hiking rate. yet i see euro-dollar fairly stable. jim: for the past few months but the euro is down a lot. it was 1.40. now it's 1.09. guy: do you think he goes down even further from here? you have not given me a sense of the magnitude of that. where does it trade, sub one? jim: it will go below one. term outcomes and some of that will come from europe, many european countries have problems, and t central bank is going to printhe a lot more. say greece or great britain pulls out, they start panicking about the euro. the dollar goes higher. that is why i own dollars. there is a lot of turmoil. you do not have to worry. you have job security. because somebody is going to have to report on this. guy: hopefully you will be sat

next to me telling me about what is in your socks. brazil's charges into a bull market. argentinian debts are being settled. rising commodity prices back into the eyn-- the yen story. ♪

welcome back. you're watching "the pulse" live in london. i'm guy johnson. nejra: thanks, guy. china's political elite are gathering to approve the communist party's 13 five-year plan. under mounting pressure to find a balance between growth and reform. as well as improving the environment and secure stability. spent the last week accusing trump of being a con artist dismissed his

immigration and foreign policies as un serious. ted cruz slammed the checks trump has written to boost hillary clinton's political career. senator cruz: who is best prepared to beat hillary clinton? checkstrump has written to hillary clinton not once not twice -- 10 times. and four of those checks were not to her senate campaign. it was not the cost of doing business. it was to her presidential campaign. german finance minister has made his feelings about potential brexit clear. wolfgang schaeuble was asked about it as he met with george osborne at the british chambers of commerce. >> what would germany do if the u.k. voted to leave the e.u.? >> we would cry. [laughter] [applause]

but i hope we will not. look, it's a decision of the british people, of course. nejra: global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. guy: let's head to the bloomberg with mark barton. the latest on europe's equity markets. mark: stocks" falling for a second day but the stoxx 600, on track for a certain weekly gain. the winning run since february 11. today is about the u.s. jobs report. investors have an eye on tomorrow's start of the chinese national legislative gathering. this is our lovely wceo functio n. -- weco function. this is the figure your watch,

195,000 forecast today. the average gain for last year was 228,000. another figure to look at is the unemployment rate at 4.9%. the lowest in 8 years. hourly earnings 2.4 versus 2.5. we are getting some traction and wages. keep an eye on th participation ratee. 62.8 versus 62.7. showing the share of working age people in the labor force. gold in a bull market. who would have guessed that a months ago? first bull market for goaltends 2013. prices are rising along with stocks. from december the 17 when gold fell to the lowest level since october, 2009. it is the asset king in 2016. crude oil gaining for a third consecutive week.

longest run since may 2015. heading for its highest close since january this year. falling to a 212 year low on february 11. 33% -- oil has rebounded by . oil headed for its third weekly stretch of gains. guy: thank you very much. now by some measures it has been a good week for emerging markets. currencies and stocks are headed for their biggest gain since october. argentina has settled the 15 year debt dispute and brazilian stocks charge back into a bull market overnight. do you believe all this goodness? let's bring in the vice chairman and former bank of argentina governor. jim rogers of rogers holding still with us. good morning. let's start off with argentina. good news. is it going to last? >> i hope so, very much so.

a dramatic change, not only in policy but in approach. the approach has been to settle this problem and to start reintegrating into -- the international markets. for argentina, it is a big change. i think it's a lot of hard work. jim: aren't you just going to borrow money again? mario: it is going to borrow money now in order to pay the outstanding debt. jim: still borrowing money. mario: you're going to borrow money at a lower rate to pay -- to get out of a problem that prevented you from having access to capital. jim: is the new government going to run a tell you ship, or just continue to borrow and spend? mario: the trend for the new government is to reduce the deficit. the efficiency of the country.

but not to do from one day to another. you still have to face the fact there is a big deficit there. you cannot cut it from one day to another. . it will have to be financed to reduce inflation a coupledea is that in of years the deficit will be small enough to allow for bo rrowing. guy: is the currency the escape valve? mario: there is still a lot of speculation and uncertainty. the currency was used as an anchor before. there is an adjustment in the currency, too. i hope they, as a country, they will improve the situation. the market will have more investment and the will be more gains in productivity. bette technology importedr. that would increase competitiveness without the need to raise rates all the time. guy: who thinks the brazilian

stock market rallies into a bear market overnight is a signal that good times are coming for brazil? jim: i don't. i think there are better places to investthan brazil. i am not investing in argentina, either, because i have heard this from brasilia and they always get it wrong. i know it. i'm just saying. i'm not picking on brazil. mario: i do not see this as a sign of a reversal. veryrgentina, -- it's difficult to see argentina sustained over time with brazil in a recession. but i don't think this is a sign of reversal. jim: things will be better in brazil because oil prices are going up. but the management of the country, the politicians, they're worse than american politicians. guy: the politicians might be

impeached. brazil was ah igh beat at trade on china. own uniquegot its problems but, nevertheless, do tou need to be long china be long brazil? jim: i would prefer to buy pressure rather than brazil in that situation. oil would be going higher. better manager than brazil. keeps making so many mistakes every day she wakes up. she's got a lot of hydrocarbons, too. that is a lot of for story. her story gets worse and worse. i would rather buy russia because of china. china and russia are getting closer and closer together. guy: if china starts to improve,

is that great for your part of the world? mario: yes, of course. they are directly and indirectly affected. because of the price of commodities. his countries in latin america still continue to be highly dependent on commodities. commodity is,se we are told, going through a revolution. from being an internet -- an industrial economy to a service economy. jim is chuckling. but that is the theory. mario: that is the claim. not only that, to reduce investment in consumption -- and into consumption. a very important structural change. that is one of the reasons that has been claimed for the fall in the rate of growth. they are. still growing, let's not forget it is not in a recession. jim: not yet. but japan is in a recession. willapanese government

tell you. that is one of china's largest trading problems. korea is having problems. many european countries. that is why you should be worried, guy. guy: i am getting to that point. am is long the dolloar for number of reasons, but if i am long the dollar, am i concerned about your part of the world? mario: no. this is a different -- about latinorry america. jim: he has taken away exchange controls. now the currency is float able. mario: you have to have an ordered path of evaluation not once and for all because that creates a log of disturbance. they are moving in the right direction. be moving int to the right direction because the previous politicians were disasters. mario: at this point --

jim: it has stopped going down. that is a start. mario: always a start. the countries in a path to go up at this moment. guy: great to see you. thank you for joining us on the program. former bank of argentina governor. going to stay with us. up next, the ceo of digital security company says the governor should help the justice department have access if there are serious crimes if they have been committed, the stock is flying this morning. ♪

guy: shares in digital security companye jumping as a predicted growth in margins. joins us now.o for an exclusive conversation is bureau.ar everyone was down on your company over the last few months. we've seen that reflected in some of expectations. nice to come out this morning and surprise on the upside. why do think people were down and the business and what have you done to turn things around? >> i think people do not the changes the company is going through.

we look at what we are doing in the 20 century which is to do sim card. the country has diversified a lot. the sim card is less than 25% of our revenue. their other domains, the machine to machine for the internet of things. cyber security, digital payment, government programs for the digitalization of government, electronic passports is much more important to us. so, we have tried to convince and after some time we gave up. guy: barkley says that revenues in payment can be more than half by, pretty soon. half of our sales are going to be in that area. is that correct? it is already in 2015 58% of our revenue. i think it is just a reflection of what i was describing, which is that payment in terms ofthe credit card with a chip which is

in western europe has reached china and they u.s. people were wondering whether this would ever be adopted by the americans, and it is there. so, i think we are busy developing the company. verynk some people are egocentric in terms of their views. theirrd with a chip in pocket, they believe it does not exist -- it is not true. guy: i am doing the math differently. when you look at your business going forward, you're not in, you didn't latch on to apply e pay as quickly. is it just that you were focusing elsewhere? or do you think it was a missed opportunity? earlyr: no, we started on mobile payment. we were the early diploid -- deployer. when it was terminated, it

created some emotion. it's created a challenge for us. not goinge world is to be only apple or google. paribas, many bankers and many retailers will want to have a payment system which is convenient for the consumer. so, the mistake that observers are doing is to believe there will be a single winner taking all in a domain which is so global, like mobile communication or payments, it is not like there is only one operator. visa may be very strong but you still have china -- jcb in japan. more complicated and more fragmented. guy: one final quick question. security obviously front and center in everybody's mind. i guess it's hard when the nsa

you to is having a look be 100% resistant. how much money do you have to spend, how much of your balance sheet is exposed to the security story? you is an affair that happened in 2010, which we had -- which was revealed a last year it was the nsa and the nchq. we have detected this attack. we have countered it. they did not steal anything from us. it was a surprise during the snowden revelations that it would be the u.s. and the u.k. that would be attacking a western company. it was clear what were their motives, too. he afghane peak of t war. they were after information for afghanistan. somalia, etc. i do not think this had anything to do with the commercial space

which we serve. we don't detain specific secrets. we provide security because we are getting strong -- and the e nd, the project euro information as your credit card number and your balance at the bank. they enable you to be authenticated on the telecom system. but they are not meant to be a defense system. we are not in the defense business at all. guy: congratulations on the numbers. the stock rally hard on the back of it. the ceo of gimalto. to the job go back stories in the united states for a look ahead, and we are going to talk about the latest in the race for the republican nomination. all of that next here on "the pulse." ♪

it is jobs day in the united states with estimates of 195,000 jobs created last month. let's get to mike mckee. always kind of an important number. a little bit of stability in this figure the last few months. what does today tell us? are we going to edge lower? mike: anything within range is probably going to be acceptable to markets. wouldd strength in hiring

be in important signal the u.s. economy is picking up. the employment -- the on the plummet rate is so low they may not need to hire -- the unemployment rate is so low they may not need to hire as many people. it will be hard to sell politically into the markets. traders are saying anything 230,000 175 or north of would provoke a reaction in the market. guy: when you look ahead to this impacting fed policy, what impact will it have? mike: they're going to be watching wages and the unemployment rate. figuring that wages have to rise in inflation will go up if job candidates are scarce. we had a big drop in unemployment and a rise in wages last month. any combination would get the fed's attention. they have taken a rate increase nth,the table for this mo but it would raise the odds of a

move in june. guy: looking for to the coverage throughout the day. let's stay with the u.s.. republican presidential hopefuls rounded on donald trump during a televised debate overnight. always been aave leader. i have never had a problem leading people. if i say do it, they are going to do it. choice is whothe is best prepared to hit stand up to hillary clinton and beat hillary clinton. donald trump has written checks to hillary clinton not once, twice -- 10 times and four of here checks were not to senate campaign, it was not the cost of doing business. it was to her presidential campaign. senator rubio: there is no doubt that donald has done well. 2/3 of people that cast a vote have voted against you. they do not want to be our nominee. i'llrnor kasich: i believe be the nominee.

when you enter the arena, you want to respect the people you're in the arena with. if as of as the nominee -- sometimes he makes it a little bit hard -- but i will support whoever is the republican nominee for president. rogers.ll with us, jim jim, would you vote for donald trump? for i'm not going to vote donald trump hurt i've never voted for a winning u.s. president. i always vote the protest vote. guy: you have never voted for a winner. jim: they keep sending us turkeys. look who's been elected president in the past few decades. would you be happy about having voted for any of them? guy: i don't have that privilege. he is the candidate. what he is doing is appealing to the squeezed middle, the people beaten up by globalization, the people that q.e. hasn't worked for. he is the protest vote.

jim: i would not vote for the consensus candidate whoever it is. guy: cruz? do you like what any of them are saying? jim: there is not a single person in either race i would vote for. i would vote a protest vote. in 1968, i voted for benjamin spock. guy: i remember my political theory classes. jim: he ran an antiwar campaign. i always find some protest vote. guy: we are run by military policy. the politicians are not there. jim: you are exactly right -- all over the world, britain, japan, europe, everybody is being run by central banks. central banks are making mistakes but the politicians do not know that. they do not understand what is going on. the do we now need to see move from monetary policy to fiscal policy? jim: we should be stop printing money and we should stop running

up huge debt. in the 10 years, a lot of people have talked about austerity. there is no austerity. guy: it has been a pleasure seeing you. jim rogers. "surveillance." is up next. ♪

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>> jobs day in the u.s., and economists estimate the u.s. economy created 195,000 jobs in february. what will the data mean for the fed and the market? beijing is set as the country's political elite gathers to map out its economy future. and from shanghai to brexit, and we also talk donald trump as a fight intensifies in the republican party. this is "bloomberg surveillance." i'm francine lacqua here in new york with tom keene. we talk u.s. jobs. tom: i wore