anna: that officials expect fewer hikes this year. keep rates on hold as global -- that fever drives asian shares up by the most in two weeks. attention turning to the bank of england and a slew of other central banks today. toshiba tanks. shares slide more than 8%, facing a u.s. probe over accounting practices. ♪ anna: -- manus: a very good morning. anna: welcome to the program. breaking news.

manus: if you so -- some of the biggest deals in the world. 29.48e comes in at billion euros. 24 pointate was that -- 29.5. adjusted there for the company. the estimate was for 5.75. they say they have and adjusting error. anna: i wonder how concerned they are about the global growth outlook. somewhere about what happened to the dollar as a result of the fed. we got a nice chart of the dollar diving on the back of the fed's meeting. manus: that is quite a genetic move.

anna: the lowest in almost five months. a piece on the bloomberg which is about all kinds of insights. his background that we all know. he says low inflation in the u.s. is it lack of a will to? it and not a lack of tools. you can go to dots go. the positioning of the dollar is interesting because the market was already the least bullish on the dollar since 2014. this wonderful piece is this is a battle of the fed prognosticators. yet to bet on the dollar, not the treasury. -- you have to bet on the dollar, not the treasury. billy up a quarter of 1%. this barely up a quarter of 1%.

rescind the asian equity markets a little higher this morning. we've got money going into emerging markets. fx, that is one of the stories. that's chicken on -- let's check in on what is happening with the oil price. manus: one of the biggest jumps since 2011. the aussie dollar is pumping much higher. excuse the pun. we also understand some opec members are going to get together. 10 year government bond is in there. will catch up with bnp paribas. it is a great show today. toa: 5.8% did let's go bloomberg's first word news. lowtha: the yuan fell to a versus a basket of currencies. smaller than an estimated increase. central banks fixing toward speculation that china is trying

to limit gains against the dollar. 32%, compared to 1.1% in a gauge of the dollar strike. large antigovernment protests broke out in brazil after a federal judge released recordings between the president and the predecessor. she said she was bringing into her government. -- she was bringing into her government. eu leaders and the turkish prime minister meet in brussels today to try and complete a deal to abbott the flow of migrants into europe. merkelchancellor angela stood firm in rejecting internal border closing as a permanent solution. turkey made a proposal 10 days ago to take back refugees fleeing into greece in exchange

travels anda free talks. saudi arabia will join a meeting of oil producers in doha next month. move adds weight to the campaign. qatar's oil minister says that country -- says that countries would meet in the nation's capital. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stores on the bloomberg. speed getting us up to the federal reserve officials have held off from raising the borrowing costs. no shock there. they scaled back the forecast on high interest rates will go this year. anna: janet yellen cited the impact of global growth.

>> global economic and financial development continues to pose risks. against this backdrop, the committee -- the committee judged it prudent to maintain the current policy the committee gradual adjustments in the stance of monetary policy. economic activity will continue to expand at a moderate pace. market indicators will continue to strengthen. concerns about global economic prospects have led to increased financial market volatility and the somewhat tighter financial conditions in the united states. in addition, economic growth abroad appears to be running at a somewhat softer pace than previously expected. these unanticipated developments however have not resulted in material changes to the committees baseline outlook.

tot participants do continue envision that if economic as theyent unfolds expect, that further increases in the federal funds rate will prove appropriate overtime. every meeting is a live meeting. april remains a live meeting. we will be tracking incoming data. it is a slightly shorter period. that is certainly a live possibility. manus: live, global, april. you could not backtrack anymore good let's see how the market -- backtrack anymore. let's see how the market is reacting. it is a market reaction rather than an equity reaction. juliette: good morning. investors have a big thank you for janet yellen because we have

verycomments have had a big risk on appetite here in asia and we have seen emerging markets rallying. the aussie dollar, the malaysian ringgit. nikkei had a very solid morning session. the yen sawening of the japanese market follow way just market -- the japanese market fall away. in china where singh stocks higher. hong kong also higher. the regional benchmark now back to levels that we have not seen since the beginning of january. asian stocks having their biggest gain in two weeks in terms of the regional benchmark index. i was so you stocks that we have been watching. toshiba facing the potential u.s. government probe, falling in japan. australian stocks do higher.

a lift to its profit guidance. it has been a focus on in these emerging-market currencies. the korean yuan the strongest out of all of the emerging-market currencies. anna: let's bring into the conversation, laurence mutkin. tonow that manus is raring you. i might just step aside. manus: this is dots go. will get into this. the history. this shows you the dissipation in terms of where the fed really thinks they are going to get to hikes priced in -- two hikes priced in for this year. the global head of chief analyst

at bnp paribas. anna: where you stand? laurence: i think they have taken out -- they reduced the hike or two. the market is not anticipating anything as much. if you extrapolate a two year yield, you end up with a yield of 80 basis points higher than the two year yield that we have in the marketplace. convinced that the fed is going to deliver. actually reminds us of what the dots are all about. the dots are not asking the fed what they think are going to happen. they're asking what would you do if you were fully in charge? .here is a difference laurence: the dots were introduced as a broader

communication strategy by ben bernanke as a way to shine more information into the feds thinking. the problem is the dots, because they are done person by person, do not necessarily convey the combined message of the statement or the message from the chair herself when she is speaking. we got 10 year government bond yields. we have had the best year in month-to-month. giving some of that back, your job is rate. your hike ohmmeter. you are hawkish going in. --e treasuries had their have we seen the peak of treasuries for the moment? is there further to go? do you think april is really live as she said? she said april is live , but i don't think anyone is thinking there warming up to the touchline.

-- is thinking they are warming up to the touchline. time before much april as she pointed out. we are going to get the cpi print for march. q1 gdp comes out the day after the meeting. they are probably -- what is going to happen between april and now. you are right that at the very beginning of this back in december, we would be on a much deeper trajectory than we were. guess we will the votes on that for me in the feds for the way there risk market started the year. anna: we got some breaking news coming in through rio tinto. succeeding sam walsh as the ceo of rio tinto. be rio's- he will deputy ceo. he will succeed sam walsh from july the first.

it is no need to recount the headaches. manus: let me show you on the bloomberg, you can see how has the ceo performed during their tenure. this is sam walsh the ceo of rio tinto. his tenure is 3.2 years. he is 66 years of age. far isformance thus negative 11.7%. that is the performance data on the bloomberg. you can go straight there. you can see what the board is. in 2007ares in rio back trading at 5000 in the london market. now down to 19 pounds -- they were up at 5000. now down to

1129. we take some of the moves that we've seen in the market. laurence mutkin, stays with us. manus: it is going to be a busy feast. europe as we got the swiss national bank at 8:30 london time. a hold of a record -0.75%. and got no's decision comes a half hour later. -- anna: norway's decision comes a half hour later. rates ok, we also have from south africa, egypt, serbia, chilly -- chile. anna: in just under 15 minutes .ime, he eurozone cpi eu leaders meet with turkey prime minister to discuss a deal on the micro -- on the migrant

crisis. over southrtainty africa's central banks decisions. we are live to johannesburg with the details. ♪

anna: welcome back. it is 6:18 if you are in london. let's get to bloomberg's business flash. kumutha: toshiba is under investigation by the u.s. over allegations that it had $1.3 billion in losses at its nuclear power operations. that is according to people familiar with the matter. u.s. authorities are scrutinizing allegations made in an internal review published last year by the tokyo-based company. shares plunged over 8% in tokyo. the sheba declined to comment -- toshiba declined to comment.

refinery 18 year u.s. partnership. saudi arabia's national oil company explores plans for an ipo amid a slump. new york's plaza hotel is poised to go up for auction month potentially ending two months of uncertainty over ownership of the historic property on central park. billionaire bowlers -- billionaire brothers holding mortgage and scheduled a foreclosure option for april 26. that is according to a person with knowledge. fedex raised the lower and of its four year earnings range to $10. $70 a share. the company nears the end of a cost reduction program. the move comes as a moderate economic growth supports demand for shipment. the company reported third-quarter results that beat estimates. holdings auare

security lost 26.4% this year through march 15. pershing has been hamburg -- hammered which saw its share price have this week. stake to it cut its 5.6%. at -- that is your bloomberg business flash. manus: the fed is not forecasting -- is now forecasting to hikes instead of four hikes. bill gross says it is problematic if a central bank does even one more this year. anna: he expressed concerns over global debt. bill: it is the debt level that i don't think the fed really appreciates. the phillips curve doesn't back

to that in. it is debt that is come to the forefront over the past several years in the global economy. that is what we need to worry about. decision andd sharp focus ahead of the announcement from central banks around the world. the swiss national bank which sets -- it is already in negative territory and is expected to stay there. manus: at 9:00 a.m., norway decides here it predicting no move there which would mark seven years of note rate move at the bank of england. anna: south africa also set to -- let's stick with the fed conversation for removal on to that broader rates picture. manus has pulled up the chart in the u.s.. sincea surge, the highest july.

--gelang: some of it laurence: janet yellen must've been performance -- must've been encouraged by the performance yesterday. it is nice to see from the point of view of all of these central banks. this week's collection of monetary policy meetings as a whole as well as seeing them individually. what the central bankers want to see is the markets encourage by inflation prospects. you can see in the inflation market. markets encourage by growth prospects. which you can see in the stock markets. such a banks that's central banks are getting it wrong -- look how much this has moved. the idea that you can think of central-bank policy without making policy mistake did you might be up to think sentiment policy at anna: is it because the fed is more worried about the world and global growth, you are very encouraged by what you are seeing.

laurence: when the central bank is more worried, the market is going to prove to be less worried. manus: there is an acronym that you don't want to repeat -- i have to remember what i wrote down. inflation against good 1.8% so far. conventional treasuries, 1.25%. is it time, given what you just said, is it time to reconsider an allocation in terms of protected against inflation versus treasuries trade? laurence: the interesting thing for bonds market, the bond becomes the tool first interbank policy. -- for central-bank policy. although the fed will continue to lean to the side of raising rates, they will not deliver a single rate hike this year. , there will be a

lot of upside in terms of buying nominal bonds for the preakness of the -- inflation expectations continue to rise. we are printing strong core inflation at the moment. maybe we had two months of strong core inflation. maybe that will continue. manages -- it is still going to be very cautious. upa: where does this tie with the other central banks? let's talk about these other ones that are going to be announcing. we came out of the g-20 meeting where there was a commitment to do something. , buttalked about fiscal they also did talk about . -- monetary. against --hey lent conspiring some way

to ease monetary policy globally? i guess you hope so. if they are conspiring to boost world economic growth, more power to them. manus: there was this shot in the market that negative rates were not working. they were met -- they were weapons of mass destruction. this is a lovely graphic that i found this morning in terms of who is passing on the negative rates. this was are being protective in terms of -- the swiss are being protective in terms of exemption. question to you is this, ecb in the bank of japan hoped to get a more hawkish fed last night and they did not. they're hoping for the fed to do the heavy lifting. how do you reach the end of lower negative rates? laurence:

where they really hoping for that. you might argue that it is not just a sum game that happens through fx here it -- fx. more stimulative with further rate cuts with not producing rate hikes must have a global economy in aggregate. i'm not sure they are relying only on the currency to the currency if it moves too far is a risk. i wonder if that is one of the reasons janet yellen was so keen to continue to say rate hikes were in the pipeline, because she is trying to moderate what they can expect from the dollar. if i may on your graphic, there is a big difference between currencies which are -- which have a quasi-peg versus the ecb and the boj actually taking negative rates into the economy. anna: lawrence, thank you very much to -- very much. he stays with us.

we get into the eurozone in a moment it -- in a moment. manus: angela merkel presses for a deal to stem the flow of refugees. ♪

manus: it is 6:30 in london. 7:30 in london. let's see what is coming across the bloomberg terminal in terms of lufthansa. exide -- ting -- lufthansa profitability jumped by 65%. a hold back in terms of growth. let's give you some of the numbers. 2015, the dividend is back in line. of course all of the airlines being helped by the declining costs that go into their business. what they've got is revenue,

7.75%. that is a little bit of a beat on that. line withetty much in the full-year estimates. i slightly weaker yield -- a slightly weaker yield. the revenue came in in terms of lufthansa, you've got 32 billion for the full-year good the fourth quarter earnings coming in at 124. the adjusted ebit. the airlines are getting a nice boost. anna: pay results showed strong and of the year good -- end of the year. manus: if you want to get a number in terms of euro saved. the airline forecast one billion euros in fuel savings for this year. the euro wings leading below average. they are forecasting earnings for this year rising only

slightly. they got weaker ticket pricing. that means it is not going to fully benefit. that is the yen and yang. the: let's remind you that torture ceo will join bloomberg at 11:42 k time. -- 11:42 u.k. time. kumutha: the one fell to a low versus a basket of currencies. smaller than estimate increase. china is trying to limit gains against the dollar the monetary authority raised its daily compared rates by 0.3% with a 1.1% drop and a gauge of the dollar strength. large antigovernment protests got in brazil after a federal judge released recordings between the president and the processor -- the predecessor.

was to shield him from a corruption probe. critics said the recordings which were obtained through a police wiretap and. through television suggested otherwise. eu leaders and the turkish prime minister meets -- meet in brussels today. speaking ahead of the summit, german chancellor angle a merkel stood firm in rejecting internal border closings as a permanent solution. turkey made a proposal 10 days ago to take back refugees fleeing into greece in exchange for more funds. furthere the travel and talks. saudi arabia will join a meeting of oil producers in the hot next month. -- in doha next month. the move as a way to the campaign by financially stricken crude exporter's to freeze output and overcome the glut that is weighing on the market. qatar's oil minister says the company would meet in the nation's capital on april 17

without providing details of who would attend. former japanese finance minister predicted the yen's rally against the dollar six further depreciation. mr. yen is predicting a surge in 105currency to as much as against the dollar in the second half of 2016 as the outlook for the world to economy worsens. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg. anna: let's get to the chart of the hour. guy johnson is here on set. laurence mutkin is still with us here at you brought us a sickening yield curve. guy: what is really interesting is you compare and contrast what is happening with the u.s.

curve, this is what yellen would've wanted versus what is happening in japan. you look at the amazing price. this is tight -- this is the divergence trade. in the cpi data coming out of the u.s., that should affect the backend more than the front end which is more growth driven than inflation driven. you got this will compare and contrast around the world. it want to go to the heart of the concerns that yellen has throughout the rest of the world , but you look at what is happening in the united states right now. this is what the fed was looking for yesterday. this was the reaction in the market. curve,in terms of the that is what we refer to. this is quite a pronounced sort of addressing of that issue. the same question to you. yearyou look at the 10 government bond yields and we were touching up to those 10% --

all-time low overnight, .42% for 20 year paper in japan. this is going to push a reach for you. you're looking for levels that you have not seen. guy: if you look globally, it is also in the eurozone. qe going on and negative rates going on. investors are looking to find yields. manus: they'll go anywhere on the curve. kerr -- anyy steve steep curve is a good place to put your money. if you're looking from a japanese perspective, there is that downward push on yields globally. manus: japanese money is traveling out. is it permeating around the world? aboutce: if you think japanese investors, we spent the last 10 or 15 years thinking the jgb yields were low.

now we know. anna: they could go lower. laurence: it is amazing how consistently japanese investors have managed to make money. it is a lesson for us all did how do they do that? -- it is a lesson for us all. how do they do that? rolling bonds down the yield curve. we did see after the bank of japan took rates negative, the flows that the market so out of japan were out of japan into the steeper bit of u.s. and europe. anna: laurence mutkin joining us this morning. guy johnson as well. manus: and a merkel is -- angela merkel is encouraging europe to lock in. turkish prime minister will discuss the issue at a two-day summit starting today in brussels. anna: jones hayden joins us.

how crucial is the deal with turkey? how confident is angela merkel in achieving it? her political future is on the line over there. jones: there has been a rise in anti-immigration sentiment in germany as well is across the eu . the leaders have that in the back of their mind when they are coming here to brussels today to try and finalize this deal with turkey in order to solve the refugee crisis. this is critical for the eu. the further we get toward spring, the more the refugee flow is going to increase again. they want to make sure they've got something in place to stem that flow before the numbers start to pickup dramatically. this is what we are anticipating going forward. the eu president yesterday in his invitation letter to the leaders, he set out, he says there is a lot to do.

we are here waiting, anticipating a very long day today. a long day tomorrow as the leaders continue to hash out this agreement. manus: jones, there was a culinary agreement last week. high politics on the globe changes. what were the main sticking points? the turks said we want more money? or is it the politics? jones: it is mostly the politics. the money is an issue but the leaders, eu has got around that. there is accounting that needs to be done. the political stuff is the big stuff. one thing is speedier visa liberalization. there is a political element but there is a logistical element to this. they are trying to do this by june eu has said in printable, but theybehind that

have to see if they can make that happen. there has been concerns about the legality of this issue of shipping refugees back to turkey wholesale. it is like human rights groups and the u.n. have come out and said the legal ground for doing this is not quite there. the eu has spent the last week trying to shore that up, making sure it has the legal basis for this. anna: jones, thank you you to jones hayden joining us from brussels. let's check in on the markets. nejra cehic has details. market reaction to the fed is the big story. nejra: going to show you the bloomberg dollar index because it spells -- it fell the most in a month after the fed decided to keep the rates unchanged. it fell to its lowest level since october. what i want to show you is the bloomberg dollar index versus u.s. two-year treasury yields. we talked about this the other day, the fact whether he you should have been following the

yield. manus talked about the yellow brick road. the u.s. two-year treasury yields. it shows you that dollar traders got it right, because they were investing on a lower dollar as well. hedge fund cut future bets. the least since july 2014. we did get a weaker dollar on the back of that decision. yields came down and the dollar came down. the message here is if you are watching these two, you should've been watching what currency traders were doing rather than bond traders. i want to show you what happens with gold. that decision really sent gold surging. this is after the metal cap its longest slump since november. this is because lower rates have been a boon for gold recently. manus: thank you very much. anna: you were channeling dorothy. manus: this could seriously go off track.

laurence mutkin is still here to save us from our good humor. you are not as frivolous as the average bond trader. where should we go? europe and the eurozone, more negative rates. you changed me in terms of the boj and what the ecb were hoping for more action from the fed did when it comes to the ecb, there is a new guy in town in the bond market. anheuser-busch. they are going to watch the market with $13.25 billion of debt. the ecb is going to get involved . it is shifting and turning. how does that play into how you think when you talk rates? laurence: you are right. part of what is been going on with the negative rates and qe is that it is encouraged a lot of in sewers to come into the european bond market.

manus: 46 billion in four days. lawrence: the new buyer and -- laurence: the new buyer in town. the details are unclear. what we already have is the traditional qe works is it has a portfolio balance china where the ecb is taking not only the core government bond markets and taking bonds out of that, but the entire government bond market. it is not only did ecb that is buying corporate bonds, it is also the european investors that are finding yields wherever they can find it. there are two ways this is happening. sector and the private it on top of that, we have the is anltro's which incentive program to encourage

european bankers to lend directly. i guess if you look at the bond market, -- anna: somebody is striking. the rates market was underwhelmed by the ecb. describe underwhelmed. the front end of the rates market sawed-off because we were looking for some thing specific on the lowest rate. we're looking for a two-tier rate. willing for deposit facility cuts. instead of that, they cut the lending rate. they offered some banks to fulfill these conditions to borrow right back down. for them, it is interesting, they were not attacking the rates market. a lot of the banks in europe do not have any money. a lot of them are borrows from the ecb. what the ecb's move was about last meeting was addressing those banks who were borrowing rather than the market who is

already sloshing money around. manus: let's get it taken term of the spreads. italy over germany, spain over germany. spain has returned over 2% in the past month. is there room for more compression? laurence: there is room for more compression. it is hard for the ecb to find those bonds. onical up next, seven years 2 -- manus: up next, seven years from a low. does the bank of england have in the face of a brexit? coming up next here it just coming up next. ♪

>> today logic happened. becauset is profound big business normally commands controls, pushes. today, the people in this

country, [indiscernible] all the ngo's who grafted for years on this. logic was heard. anna: that was celebrity chef commenting on the -- this privacy from george osborne unveiled yesterday. there stocks fell on the news. manus: well done. he was excited. he campaigned on that. again, it is a bit like the rest , a lot of it is not coming through. i'll -- even a lot of sugar between now. anna: more details on the budget and a moment. let's get to bloomberg business flash. sentha: lufthansa has operating profit has jumped 55%. at the same time, the german carrier forecast the earnings this year will rise slightly. that is as a week ticket prices

cannot benefit from oil prices at the lowest in more than a decade. royal dutch shell and saudi arabia and oil is ending a partnership good this comes as shell buys $30 billion in asset exportsd saudi arabia plans for an ipo amid a crude price slump. rio tinto, the world's second biggest mining company, announced that jean sebastian shock will be appointed chief executive in july. he will succeed current ceo. he is currently the head of the producers copper and coal division. walsh will retire. -- was in line with estimates. operating ernie's this operating 11% to 5.7 5ell billion. cement makerargest

says demand is expected to grow overall in 2017. even as a slowdown in emerging-market economies like india and brazil hurt earnings last year. that is your bloomberg business flash. anna. manus. manus: among the key announcements made in yesterday's uk's budget. anna: the cut makes the rate the second lowest among developed countries. here's how voices reacted. >> be careful about the the devil in the details. he is going to make it harder for companies to offset previous losses against this year's profits. the rate looks great. that does not necessarily mean the companies will be paying less corporation texas. going to make it harder to offset the losses. >> that is a welcome mat for the world businesses. we are backing this is good where doubling down in terms of the u.k. economy. >> there is a problem with tax

evasion which is in the area of corporation tax. we've had several multinationals who do this. of course the lower the rate of corporation tax, the less the incentive to try and avoided. >> more easing done and making sure there's share prosperity. generally the opportunity for that. not just that but we see business investment revised down. manus: the voices outside of parliament. here is a john wraith, the head of strategy at ubs. welcome to you. if i try and take all of the complexion that anna gathered yesterday, this was a fudge. this was a budget from what i read. it is all about the long grant. the hike will come in 2019 and 2020. the hike raises will come in john: -- 2020.

john: the profile for borrowing over the next two years sort of automatically changes for worse. his choice, given his self-imposed rule, means he has to have a service by 2019 meant that number at the end of the path had to stay in positive territory here it in budget surplus. he is borrowing more for the next three years. change policy to adjust this lower growth or leave the decision for further out here it given how other political scented -- further out. given how other political the coming year, he is going be raising less than we thought. i believe the consensus that is partly tied into the fact that some of the more difficult

decisions have been delayed. of the overall market reaction, it was very muted. although the number is slightly smaller than expected, it is not to the degree. manus: the bank of england decision today. no change of all -- no change at all for the past seven years. is a growing? -- is it growing? i know you're looking at me skeptically, anna. placerld is a difficult good janet yellen is worried about the world. anna: the clouds are gathering. .anus: the clouds are gathering john: it is not preposterous. in a global context. as you say elsewhere, the fed has had to pair back in hike intentions essentially. other central banks have been coming aggressively over the

past several months. it does leave policy rates in the u.k. looking relatively elevated compared to some of those other central banks. the message events have seen growth slow. there.re big risks out if they crystallize, the bank of england -- next line manus: -- -- manus: instead of the sterling market doing something for them, they are actually relieving the button. becomeco--- john: it is -- that will bring in a bit more inflation. it will make exporters more competitive. it helps in that way. but, as you mentioned, it does point to the risk around brexit. anna: nigel ferro says he was quite pleased with sterling.

it would be a good thing if there were was a reaction to brexit. if we do see a brexit, what are your numbers that you are playing with in terms of worst-case scenario? john: the weakness of sterling is likely to continue. it is going to stay uncertain. uncertainty here, it is undermining sterling. nothing has happened yet it were the u.k. leaving the eu, we would recommend -- you can see down a percent in three months. you can see that sort of decline double over. manus: is that going to be more manifest in your sterling? john: it will follow against everything but more against euro. manus: it is a big bucket. anna: john wraith stays with us. we will talk fed in our next conversation. more on that conversation here at how it is moving asian equity markets. -- on that conversation.

how it is moving asian equity markets. moves we are saying and asia. in asia. ♪

nows: fed officials expected to keep rates on hold as global pressures mount. asian shares up to the most in two weeks. and the slide of more than 8% after concerns it is facing a u.s. robe over accounting practices.

>> welcome to "countdown. let's have a look at what is going on in the futures market. 0.4%. in london we are up is about a less hawkish fed than the market had anticipated. higher all of these risks on assets. anna: we're still not on the same page. that's the function that sir manus is expired -- excited about. and that exactly on the same page.

manus: the south korean you on this is the best asian fx trade out there and indeed it is the best of the year. is there more to go on the aussie dollar? .e're this differential what else have we got? a 15 month fell to low. the increase in the central bank speculation that china try to limit gains against the dollar. the daily reference rate raised by 0.23% compared with a 1.1% drop and a gain of the dollar's strength.

the recording between president roosa and her predecessors. she said she was bringing him into the government for his marriage denying it was to shield him from the corruption probe but critics say that reporting obtained through a police wiretaps says otherwise. the turkish prime minister meet in brussels today to try to complete a deal to stem the flow of migrants in europe. german chancellor angela merkel is rejecting internal border closings as a permanent solution. further euravel and talks. will join a it meeting of oil producers in doha next month according to a person with knowledge of the policy. criticsncially stricken

order to freeze output and overcome the glut weighing on the market. the qatar oil minister says countries would meet in the nation's capital april 17 without providing details of who would attend. global news 24 hours a day powered by 2400 journalists and more than 115 during -- news boroughs around the world so you can find more stories. manus: a little bit of breaking news coming through. ceo.er ceo, a veteran >> the board is now going to for at a formal search successor and will consider internal and external candidates for the role. early on we got news about sam walsh in the mining sector. second time in an hour to use that function. management ifder

you were to see how they perform, this is the function. andrew was in the hot seat or has been in the hot seat for 7.8 years. he stepped up on the 21st of may, 2008. he delivered a 9.13% return which scoops up all of the dividend pay as well and his or her group has delivered 1225% return. you begin to understand where we are with glaxo. going back to 2008 when he actually stepped up into the seat -- there you go. in terms of stock prices around 10.68%. >> talking but his normal thirty-year service in the group

saying they are focusing on the executive search based on executing this strategy to drive growth and performance. marketheck on the asian action. >> a great day in asia with the .xception of japanese equities appetite risk on following comments from the fed. we seen some great ones coming through across the market today. the fifth prevention of gains and we have seen from chinese stocks. here in hong kong as well. the new zealand market coming back up stuffing its recent run of win since yesterday and the australian market went higher

because of the destroying commodity producers but there is also the story of the emerging market currency. we have heard that the yuan had the biggest jump since 2011 against the dollar and also the aussie dollar has an moving higher during the recession. 76-17. even though emerging market currencies are coming back in fashion, the so-called safe haven yen is rising. 111 at the levels we haven't seen since october 2014 has been and is ordinary session with the regional benchmark back at those levels we haven't seen since january 5. >> thank you very much. they held up on raising borrowing costs and scaled-back

the forecast for how high interest rates can rise this year. anna: janet yellen cited the potential impact for weaker market growth. >> global economic and financial development's continue to pose backdrop, thethis committee judge it prudent to maintain the current policy stance and today's meeting. >> john is the head of the u.k. rate strategy at ubs. so the global center bank are concerned about it because all meetings are life. go will show where the fed have paired backwards and they reckon two hikes this year. do you think you can do that? and how soon, given that she was meant he meant -- so the

in her concern? >> what's going on elsewhere as yellow as you was what is going on in the u.s.. we did think they would raise rates twice more this year the fact they have penciled in four has been making markets nervous there was widespread hope that they would technology the need for slightly more dovish process. that's what we seen in the action. >> do you see is more globally focus these days than recent years? one story on bloomberg's money talking about how this was a shift thet check -- likes of which we haven't seen since the asian crisis in the end of the 90's? >> this is when global events or external events come significantly more troubling than they were before. if you look at the u.s. and are showed some of the data there, unemployment rates come down

rapidly. manus: this is the kicker that we had. let me show you the inflation expectations. this was almost an a dear. but it has been a while since we were in this converging path. toy 14 was the last time inflation next petitions in the fed target were at hand. inflation expectations are rising. >> we have seen inflation indicators pick up a bit. if anything yesterday it was slightly stronger than expected and alongside this we have a fed that has been easing in a more dovish direction than the have from last year. it's not a worryingly high level, if anything it was a worryingly low level so this is a healthy move and does suggest that if the fed treads carefully

and the recovery is nurtured that the chances are improved. the worry before was they might be premature and hiking rates and in doing so might choke off the recovery. >> we got a new reminder last night that the pace would be slow and gradual. >> and cautious. and a lot of good indicators and some that are slightly more troubling and there is a lot to worry about so the fact that they are adopting a wait and see approach rather than a preset course is a relief. --the other question i have the conventional treasury is still doing better. this new look at the fed, exit paired back there expectations for this year on

the terminal rate. do you begin to switch? towards inflation protection? >> only if you believe they are being effectively wrongfooted and things are better than they are indicating. the sort of reaction we have seen could also be appropriate. we do not believe there will be a material rising treasury yields are inflation over the balance of the year. >> you have all meetings are life meetings. do you read much into that? >> if asked a question that has to be the right response. in terms of the narrative from here, with thinks of september other two hike months. april and that context is probably a dead meeting. that's will try to set the market up front hike in

september but as with all of these banks every meeting has to be live because a lot can change in a short space of time. a national know if that is such a shock but we have gone from unanimity in the firstut here is little crack in terms of policy, could that be a theme the rest of the year? >> some of them did think that four hikes this year was appropriate. it changed, but obviously not in a dramatic way so his son a surprise that they said four hikes were appropriate this year and i still think that. that is no real dissent. here they have been

reminding us what those dots are all about saying, it is not about asking fed officials where they think rates will be but it's if you have dictatorial powers, you and nobody else, where would you put them? think something should happen but expect something else to occur. >> yes but when you get the big dissertation -- dislocation between what they have said where they would expect to want rates to be and where the market is and that is why this realignment to a large degree gives us relief into with what they expect to see. -- : manus: up next, battling the crude. we speak to you k's largest independent oil producer.

anna: there is a picture of london this morning. up 0.6% at the start of the trading day. let's get the bloomberg business flash. >> the lufthansa operating profit jumped in 2015. the forecast says earnings will rise only slightly as weakening ticket prices mean oil prices are at the lowest in more than a decade. that jeanannounced sebastian will be appointed chief executive and july. is currently the head of the copper and coal division. walsh will retire from the company. chief executive andrew witty plans to step down in 2017. the board will begin a step for a successor and will consider

internal candidates. he began leading the largest drug maker in 2008 after a 20 year career. oil.t's focus in on u.s. production has dropped to its lowest since 2016. anna: they said to join in oil producers meeting next month. lay the ground for us about this meeting. be.hat is how it seems to we heard on wednesday that the qatari capital would be the host for this meeting of oil producers between opec members and non-opec members.

you said saudi arabia will definitely be attending the meeting but the russian minister says there will be 15 producers there but it will be interesting to see who isn't attending. they are trying to regain market share with about 92,000 barrels per day more to produce on a daily basis to get to the 4 million barrel per day mark like it wants to. we will also play no part in this agreement. that said, they have to start somewhere when you have reduction in the u.s. declining in stockpiles growing at us lower rate that is feeding to this optimism in the market and the reasons we're holding about $40 per barrel when it comes to brent. >> the question is, can we sink above that level. commoditiesbout

elliott, no shock there, is there? moves goinge actual on here. to have this joint venture in the united states refining business. they've been together for 18 years and are going to go their separate ways. shell is looking to talk 30 billion dollars worth of assets. for the saudi's of course they will decide exactly what to do about having the initial public offering or selling off some down shares. company he to sell a owns 100% of the just a part of. usa: think you for joining with the latest on the oil story . the largest u.k. independent oil producer in the north.

they said that annual production is up 31% and joining us for an exclusive interview is the inquest chief executive officer. let's talk a little bit about the results and one of the playing in your favorite is the way you have managed to hedge your output. >> we have been producing around 17 million barrels at the range of production we're talking about. 31% last year above the top end of the range and this year will be up 26% at the middle of the range. manus: yesterday with the budget, i'm looking at the line on the lower 15 end of $750 million.

everything we see against that level, what does capital expenditure mean for your company. kelly what really means. towe have reduced originally 850. something very significant about 950 of hundred 50 range. i think it is a very significant reduction in terms of reducing cost for suppliers and phasing out some work. manus: are you really able to squeeze that? >> we have to continue working with the supply chain but the margins are declined for everybody in the business so it is important for all of us to work together. anna: it sounds quite amazing for an oil business, are you flying against the global price at the moment?

in 2009usiness started doing 13,000 barrels per day. will have a significant increase in production. havenk we do in because we competitive increase we are squeezing more out of those assets. we are increasing cost and productivity. we operate nine fields in the united kingdom so i think our footprint is getting bigger. >> the company has not declared any dividend since 2010. that is not exactly heart lifting. have you considered offering a paper incentive? >> the type of company that we are has been focused on growth. have bit of capital we

generated has been reinvested in the business to grow the business. when growth slows we will look at the possibilities of offering business in the future. price ins on the oil the capital program going forward. i think we have a large development that will come in place next year and i think it is beyond next year that we will look at that. john: -- anna: how do you way up what george osborne said yesterday? but zeron't abolished rated. technically the same. it is very positive and shows that the government is focused on the industry. i think these things will help incrementally increase investment in the north see. important that

we focus on maintaining that infrastructure and i think the government is moving in that direction to maintain it. manus: you're a global oilmen and you were born and bred in texas in terms of your history. what i want to know is when are all of the shale boys going to come back in? >> i think it is a spectrum. some of it is some of the best areas in the shale oil can start looking at drilling and returning capital at these levels but i think most of it will require significantly higher levels. >> probably in the 50's or 60's to get them started but even then you can only at a certain amount every year. there is a limit to how much you can add in the u.s.. low oilunning very prices now because our budget this year is 430.

we hedge for most of our production. next, an-- >> up exclusive interview with the canadian prime minister justin trudeau coming later today on bloomberg tv.

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follow every pitch, every play and every win. change the way you experience tv with x1 from xfinity. guy: welcome to on the move, we're counting out the european open. hans nichols is on assignment. growth concerns take a seat to the fomc. when does inflation have its voice heard. whatve a chart that shows sterling is set to sink further as the bank of england's rate decision.