♪ welcome to "on the move." he was what we're watching. when will the bank bashing e nd? 2000 more jobs go at credit suisse. trouble in brussels stranger in unity. what will boris johnson have to say to mps today? muted markets, why investors weren't position for negative

news in europe even before the attack. we have a chart to show you what was happening. so, less than half an hour away from the european open. this time yesterday, we were dealing with what was happening in brussels. the market pushing beyond that fairly quickly. on the equity front, looks like we will be slightly positive. button,, pushing the you get this fair value cut collation. looks like the euro stocks will be up by about half a percent. they rose into the close yesterday. that is a significant take away. the ratio may be position for negative news. we show you that chart little later. also this one here, an extension of a story we were bringing you yesterday. i would say is

brexit positioning. the pound affected down, you .hen had data it is sort of a risk off story at the moment. ae euro-dollar is pushing little bit lower, so be aware of that as well. here's the bloomberg first word news. >> the belgian state broadcaster has identified two brothers among the suicide brothers -- bombers that attack in brussels yesterday. unidentified police source that at least 31 people were killed and more than 230 were injured when bombs exploded at the airport in a subway station. suisse is accelerating its restructuring. that will include cutting an additional 2000 jobs.

they're one of a number of banks struggling to boost profits as global trading slumps. donald trump on the arizona republican party. he blunted the concerted effort by his competitors to you die him the party some initial post -- his utah caucus competitors to him. however, ted cruz one the utah caucus. guy: let me take you back to brussels, ryan is there for us as the security crackdown continues. the, talk to me about latest news we have regarding those involved in the attacks. ryan: yeah, you heard about how

have identified two of the three or lease they believe there were three attackers. they tweeted out a picture of three men at the airport yesterday. they said that two of them were suicide bomber that probably had blown themselves up. one, apparently still on the run. thpolice were a bit vague. people in french and they can recognize this man. these two men could be the two or working to verify that. that is coming to us from one media organization citing an anonymous police officer. we do know the manhunts are still underway here. there is a reasonably robust police present in the center of brussels. i would say, other than the fact

there are far fewer people than you would expect in brussels at this hour, and the road behind me is closed because the subway station is just down the road, it isn't an extraordinary lockdown. outside of these pockets, it asserted to look a little bit like business as usual. -- it is starting to look a little bit like business as usual. guy: we will be back to him later in the program. our next guest, a major european insurance company who posted results this morning. turning a sound the ceo of lloyd's of london. the question i have to ask you, 's willexpect that lloyd be writing more and more terrorist insurance? scenes, and of course we are here to provide

protection when things go wrong. so, terrorism is one of those highly specialized lines of business that lloyds does indeed provide. tragically, i suppose, we are seeing an increase of demand for other types of new risk that are coming along. we also have cyber attacks, and things like that that will be increasing. ing more demand for specialist insurance. guy: how do the premiums on those products compare? does the market understand how to price those risks? perhaps we don't. when you think about the other risks that the been around for longer than we can remember, we have been gathering data on those for hundreds of years. have aew risks, we relatively small amount of data we can gather. we put that into our model whenever there is an incident and try to reflect pricing that is appropriate, and fair. also, that it is also to be

enough to pay for future calims. claims. that is the tricky part about insurance, figuring out what those future costs will be. with expert underwriters, and that cluster effect coming together. that combination of that brainpower, they come together and assess risk. they have the courage to take that risk on. guy: can i talk to one of the other risks? that is the risk of brexit. bad ford about it being business. a surprise that the business community is in being more vocal on the subject -- isn't being more vocal on the subject? market is made's up of about 60 different businesses. by being part of the eu, they

can all accress -- access the world's largest insurance market. so, the eu is already the world's largest trading block. is one unified bloc, and is already the world's largest trading block. markets the lloyd's access to the pro's largest insurance mark with over 500 million potential customers. because we are part of the eu come we can easily access that business. 20% of business comes from continental europe. it is a very important part of business for us. also, we have a lot of business in other parts of the world. the eu has trading agreements iwth 55 other markets and is in a great trade

agreement -- of a great trade agreement with the u.s. it impact on our global business. we will do the opposi side of the case later on. can i ask you a negative rates? we were hearing over the last few days, there was an expectation we could see rates go lower in the eurozone. premiums that are invested, money that comes into the global markets are being affected by this. if we see low rates for a long time, how will that change things? two important aspects that feed into the profit of the lloyd's market. one is the investment side, the return of those premiums. with the alledge medic reduction and that in 2015 over the prior year. that was a massive hit. we are also seeing, because of

the low yield people can access, we have capital coming in. the lloyd's market with still a very healthy return. an attractive place to invest. that then puts downward pressure on the premiums we were able to collect. on the a reduced margin underwriting we're doing. and we get a lower investment. guy: that number came down from 9.1, where will it the next year? don't know, but we need to make sure the pricing that we have on the insurance market is at a sustainable level. we are all about thing for the future. we don't know yet what those claims are. to estimated.

it does mean with the low yield, we have to make sure we get that pricing right on the upfront. guy: thank you very much indeed for your time this morning. up next, when will the bank bashing and? -- ♪

suisse ist accelerating its restructuring. that will include cutting an additional 2000 jobs. it is one of the number of tanks struggling to boost profit is global trading slumps. couple of things to note, one is been around 50 minutes some analysts -- if you want to follow what is happening, that is a function you want to be going for. joining me now for more on the is michael.

also join unset by patrick armstrong. saying theysse might've gotten it right. >> that is kind of the model you want. leslie investment banking side goingre aggressive cuts from 4000 to 6000. a lot of that cost savings coming into the markets business. they will look in the and more like ubs. guy: what are they saying about the markets right now? we are here in the trading is tough. >> especially the first two months of the year were a very bad trading environment. in october, credit suisse said we have to triage but we're going to tackle here.

then the fourth quarter came, credit fell off a cliff, the net continued in the first quarter. we do address the credit business as well. guy: is the tough to make money in that space. >> you will not be as involved, or is active in the flow. tough environment, you aren't making any money anyway. guy: would that make you want to invest in credit suisse? is too early right now, but they're showing the certificate recovery. it great better return on capital for the banks if you do stay committed to it. it is happen for decades, and decades. they probably sources into it at the beginning of the investment cycle. to get it for a cyclical return.

guy: why wouldn't you stick with the bank that is already done it? you willg et -- get some pickup. ubs,e other hand, look at pippin doing this for three or four years already and have cemented a lead -- they have been doing this for three or four years and may have cemented a lead. you don't want volatility. atrick: true, if you looking it as a value stay. guy: the swiss are all in the same boat. where does that leave deutsche bank and elsewhere? michael: they've already forecast that a very tough year. guy: the strategy is not changing radically.

michael: to the smaller retail business than a barclays, peter had that secondary business that they could pivot two. they have been a greater proportion has been the investment banking. in some ways, that makes more sense for them to kind of stick with that business and hope it recovers. guy: how easy is it to value the internal parts of these banks? david difficult. the market is also saying it is very difficult. theredifficult, i think is clear headwinds that all of the banks are faing. what draghi has done is very pro bank, guy: does that change the argument surrounding and i bank? if you are bullish on the market, or the cycle, an

investment bank is probably investing more volatility. there are significant headwinds. guy: that is a glass half full with looking at it. michael will be covering this story from the day. patrick armstrong will stay with us. up next, potential corporate movers in our stocks to watch. ♪

guy: caroline hyde is with us for stocks to watch. suisse could be one of the biggest movers, also william hill. online is a big area of growth for this particular -- that is where you go to place your bets. of theirdown 34%

revenue. online, showing weakness. online results, two main factors hitting it -- gross margins down, and timeout and self exclusions are accelerating. we could see that only william ill on the downside, but also -- also nike's share price could drop. why? numbers did live up to expectations. also across the board, we see high single digit profit in the low teens. lastly, it is about credit suisse, we could see a move. we see the stoxx 600

underperform, remember. look how much it has fallen more than the banking index. that is the banking index, it is weathered the storm better than credit suisse has. it has underperformed, and other 2000 jobs to go. more still to come. thank you very much, indeed. we talk more about that later. but bring back in patrick armstrong. i want to talk about what is happening on the foreign exchange market. with getting a huge spike this morning. the is the pound versus dollar. how nervous do you think taders tting? traders are ge

patrick: our view was that it was getting overdone a few weeks ago. yesterday's event probably pushes the risk of a brexit higher. by the time we get to the middle of june, this will be largely discounted. probably a fair reaction, and it does increase the risks risks. if three months to -- four thinks to settle down. i think great britain will be staying within europe. guy: we will discuss that later.

-- theup, pointing to market recovered yesterday. next, the market open running to the numbers. ♪

guy: good morning and welcome to "on the move." we are right here in the city of london, moments away from the start of european trading. here is your morning brief. when will the bank end? 2000 more jobs go at credit suisse; the cuts digging deeper. terror in brussels. prime minister david cameron is linking the attacks -- david cameron says linking the text of brexit is inappropriate. and markets heated. position for negative news in europe even before the attacks yesterday. let's talk about how we think this market will open. yesterday, equities recovered toward the close.

this morning, we look like we will be fairly flat. let's get the details of caroline hyde. caroline: thank you. we seem rebound in the travel sector -- we have seen some rebound in the travel sector. 1%,ftse closed up 1/10 of but asia coming into lows. it came up that high posted yesterday. on of theng an erosi energy stocks that felt the pain. ftse opened flat, similar to the cac 40.w you will see some of the betting companies in the limelight. glencore once again maybe feeling the pain. moving out of metals into gold, digging into asset moves, with the dax open a higher. euro on the downside. dollar strength for a fourth straight day.

the dollar index is currently up one quarter of one percentage point. it's looking a little more hawkish than had been expected. more hikes says two is is good. we are looking at the pound ahead of boris johnson. we'll bring that to the u.k. viewers later. we're down 3/10 of 1% on the pound. an interesting move to be expected -- we're seeing oil trade lower today, down 8/10 of 1%. is there some concern about america once again? 8.8 million barrels added. let's have a look at the stocks to watch. --ant to paint your picture are we seeing a rebound on travel and leisure? thomas cook fell yesterday but credit suisse is up 4% as they/charter, 2000 -- as they

slash harder. they're set to make what .7 billion francs in slavings. interesting considering that nike slump so much on the back of not living up to expectations. william hill is expected to drop as much as 10%. look for the other betting companies. guy: thank you. caroline was mentioning credit suisse. the call has opened in we are now getting analysts asking questions to management, but the market reaction is fairly clear, stocks trading sharply to the upside. let me take you to the map. noticedation we have over the last few sessions is continuing. financials are on the upside, unsurprising. funny enough, health care not performing. in the last few days it has been a rotation out of the metals and miners, and oil stocks have also been sold off.

a slow stretch on the valuation front. you have also seen the pull toward draghi. to stocks most likely benefit from what he's doing have been the beneficiaries -- some sub currents below the index level that affect it as we work our way through the start of the year. half the world's stocks are currently embracing a rally. fed's dovishness washes away the pain. $28 million are in bull territory, others approaching the line. let's get patrick armstrong's take on all of this. the market is- back, but the question is do you believe it? >> i think it is back. i don't think we can expect higher prices from equities. i think europe has a lot of pessimism. pmis,u look at th

european equities is where we are attracted. i think the safe haven sectors, food and beverages, consumer staples -- if you are feeling safe, it is probably overvalued. some cyclical risk is where the better value comes in. guy: it's interesting -- energy stocks are at the highest valuation stretch.since records began . absolutely extreme. there are some really obvious long shorts. >> we don't have much -- we are not short equities in the u.s., and we don't have any energy stocks at all. where we are long is the industrial companies in europe. there is a lot of pessimism on economic growth in europe, and we think with the ecb is doing will create a weakereuro. people are buying the credit,

and the qe will still be negative. there is a divergence between the fed and the ecb that will translate to a stronger dollar. guy: to your point about the skepticism surrounding the rally, the market has risen and so has the ratio. it is effectively taking a protection. will that be maintained? is that a trade he would see having legs? >> i think there is still so much press of hi pessimism, ande are still so anxious. i think you can see that in this chart on the screen right now. one of our best traits this year -- trades this year, week the central banks being dovish is suppressing volatility -- guy: all-time low, or close to it. >> kuroda is very much in the dovish camp.

whenever you see extreme risk aversion, if you lean into it, you generally get abnormal returns. it's not a comfortable way to invest but that is where you will get it. guy: on equities, equity risk premium -- >> we think they are looking fairly valued, but when you compare them to bonds, they are still very attractive. guy: high-yield? >> high-yield is great. you should be going high-yield, even energy high-yield. we saw the energy high-yield's about a year ago, and spreads are so wide, so much negativity. guy: is that still the case? clearly there is a ripple effect out of draghi. we have seen that being put on -- you are not too late. >> there are a lot of strategies that work right now. what you have -- risk aversion is very high, if you are willing to take risk you can find it by next to nothing. a credit high-yield trade makes

a lot of sense, discounting in a significant amount. guy: is the trade inequities -- indices look like they will do very little, but some -- you get so much movement, so much rotation within the stocks, and you see so much already this year. is that the sweet spot where you will make your money? >> yeah. if you look at the msci world, you won't get a big return. if you look at exposure in europe, you will do well. if you shore up expensive stocks -- food and beverage -- utilities in america, trading you canmes earnings -- buy growth that those multiples but people have just moved into the safest sectors.

i think relative value can do well. guy: you like europe. a lot of people think u.s. investors have taken money out -- why are you right and they are wrong and what will it take to get them back onto the play? >> just manufacturing numbers, pmi. it's in the midst of recovery. it is doing well in manufacturing -- guy: europe is doing well? [laughter] >> it is. if you look at the pmi, it is plus 50 everywhere. doubt. is growing, no it has a central bank that will not choke off the recovery. but in europe, you have a central bank that is really trying to stimulate growth. it's much-needed. the companies are really pricing in a negative scenario, but i think there is room to beat in europe, were in america people have pushed into it because it has been better performing. that lead to very high values, 2.8 times book value. guy: give me a sense of the

difference in rates of return. >> if you want typical europe, i think you have room for 10%-15%. u.s. isthink the going to collapse. it's a very high carry strategy. there is a double-digit differential. guy: thank you very much. we will be back with you shortly. patrick armstrong. up next, joined by the president of the export import bank of the united states. he will be joining us very shortly. ♪

guy: 12 minutes into the opening market session, european stocks pushing higher. let's get you caught up a what you need to know with the bloomberg first word news. kumutha: the belgian authority has identified two brothers that attacked brussels yesterday. any named them, citing unidentified police source. at least 31 people were killed when bombs exploded at a subway station. credit suisse is accelerating its restructuring. they announced that they are targeting cost savings of 1.7 francs.

it is one of a number of banks struggling to get profit as global trading slums. donald trump one the arizona presidential primary, capturing all of the 58 delegates, wanting the concerted effort by his opponents to deny him the nomination. however, ted cruz one utah. -- won utah. hillary clinton was the victor in arizona, but lost utah. and idaho. declared barack obama an end to the last remnants of the cold war, and concluded his groundbreaking trip to cuba. a speech broadcast it to entreated for a more open economy. later he attended a baseball game was president fo raul castro.

you can find more stories on the bloomberg top go. guy: thank you. talking of terminal functions, let me take you to what is happening with credit suisse. the media call is later on; if you want to follow all the action, top live is the function you need to know, commentary underway on what they have done in terms of changing the nature of that business. -- how competitive u.s. companies are on the global scale. good morning. nice to see you -- congratulations for still being in business. >> we are great at being in business. guy: as you work your way around the world and look at what is happening, where does your company set? when they see the opportunity in front of them -- what are they, and how stronger u.s. companies

to take advantage of them? whenf the last century, president obama signed us back into ending the lapse, i have been to 10 american cities and 10 foreign cities, and there is still a lot of opportunities. the change in commodity prices are fueling that. countries are retooling, weather in saudi arabia, whether it's india, who got that windfall, all those things are playing a role and i'm not sure the market has factor that in yet. guy: are u.s. companies at an advantage or disadvantage? >> i think they are on a good advantage. people like to do business with america. they like to do business with america in terms of quality, product, delivery,. service it is a reliable partner, whether it is infrastructure,

whether it is building of their economy, health care, so forth. guy: the fed is in a very difficult place with the ecb now. this is not 100% your belly wake, but they are stepping in, helping out european companies. is that something you can lean into? >> it is outside my lane. i'd say that i still see a lot of good opportunity. i see companies able to compete. ice needs for power in places like cairo. bangladesh,ia -- mozambique. i see a lot of places like that that have the opportunity and need to buy these goods and services and build infrastructure. and they are reforming their economy so they have the means to do so. guy: i talked to the ceo of airbus the other day. this is a european company, but

boeing is a big fan of yours. is that something you could step into? >> no. iran is still a state sponsor of terrorism and that is not something we need to do. guy: right. just in terms of the fact -- >> a very simple answer! [laughter] guy: i want to explore it a little bit! what would it take to change that? that is a huge market that boeing wants to get into. >> well, first of all, they have to stop state sponsoring terrorism. that's a giant step. we've made -- president obama made in a norm is step last year. the europeans are more aggressive leading into that. it's not something that american companies want to do. guy: what do you think the story is like in europe? >> tough. i would say tough. we at the export-import bank don't do that much business here. 2/3 of our business is in

emerging markets, but this is not there. companies have headquarters that are easy to work with -- guy: you say it is tough. >> it is still a slow growth area. where we have done best in terms of exports, in terms of export-import, economies that are moving quickly and adding infrastructure. guy: i am glad -- there has been an emerging market slowdown and people are terrified about china, and you are seeing that reflected in the financial markets. they are worried that china is moving away from service sector growth. you see that in other places in the emerging markets as well. result, i's -- as a am curious to see how you see that story working its way out. are the emerging markets as rosie as the picture you paint? >> well, even china -- china

with attorneys and they are adding more than one million jobs a month. service jobs are adding a lot of jobs. there aren't a lot of jobs in other areas, but a lot in the service economy. that means more people into the middle class, more people have the disposable income to buy the kinds of things that, frankly, we in the united states sell. china growing at a percent, 9%, 10% forever was not possible. they are still adding half $1 trillion year to the global economy. the u.s. adds that much. adding, even at 3% global growth -- that's the equivalent of the country of india, their gdp annually. that's not enoug nothing. we may have to get used to different growth levels, but that is still not that.

guy: i producer will shout at me -- the argument about this bank in the united states, coming up to an election, is everybody on board? everybody. secretary clinton understands that if we want more jobs, we have to compete globally with an export bank. there are 85 around the world. it would be crazy for the united states not to have one. guy: great to see you. hochberg, the chairman and president of the export-import bank of the united states. on the chinapeak conversation, next. ♪

guy: 23 minutes into the session, and we are pushing higher. let's talk about china. the forum is underway, and stephen engle is standing by with a guest. over to you. morning.hi, good we are in southern china. we are with our guest, the deputy managing director of the imf -- thank you for your time. it has been a rocky two months for the renminbi since the last time we talked in china at the world economic forum. just after they devalue the currency, we have had a lot of hedge funds speculation, talk of

competitive devaluation, what with negative rates in europe and also japan. are you concerned about competitive exchange rate policies, and how it might affect the renminbi? >> so far the central bank governors will not take comparative devaluation to monetary policy. i think that is clear. we do clearly see the exchange rates volatile in the market, and a lot of currencies depreciating with oil price dropping. meanwhile, this is a different mark on the exchange rate market. twoexchange rate -- this is very different concepts. stephen: i guess we have seen the authorities spend about half $1 trillion of their reserve defending the currency. is the imf asking china for more clarity on the derivatives

market and potential futures, holding that they might be using so they wouldn't have to burn through those reserves? >> no. when they ask about issues, chinese authorities subscribe to stdf, the quickest offender to meet the requirements. they're both working well. we do not require actuarial information. stephen: have you requested any more transparency from the pboc or chinese authorities on their currency policies? >> we always encourage to improve transparency. wethis particular issue, think china can to fill their commitments. stephen: right. the analyststhers, have pointed to evidence of data showing a rise in holdings of future contracts that the

chinese might be doing. you have obviously look at this, right? >> that's -- when you see the market move, i think it's obvious. so many different things. but we have all information in line. we're ok with current status. stephen: following the national people's congress, how do you see reform agenda, and also the economy right now, in 30 seconds? >> i think it's a good plan laid out, the principles and framework for the china to move forward. the key issue is implementation. at 6.5%, given the transition really moving in the right direction. i see the service sector picking up. but the structural reforms -- stephen: far too much to talk about in just three minutes. we always appreciate your time, zhu min.

thanks for joining us. guy: thank you very much. we'll take a break. ♪

guy: will come back. half an hour into the trading day now. let's get an idea of how things are shaping up, or down for that matter. largely up this morning, equities continuing to push after yesterday afternoon, the brussels attack. we are now up by around 6/10 of 1% on the stoxx 600. let's talk about the stocks on the move this morning with caroline hyde. caroline: we have a massive slump for one stock in particular. william hill. check this out -- down 13%, the worst day for william hill since 2008. the reason for the slump? the online weakness.

this business has been growing in taking up more revenue; a real standout. they have had to get into online betting, but it seems as though there is weakness. they could see profit down to the tune of 25 million pounds in that single area. overall, they seem to be warning that earnings will be about 8%-15% below where analysts had been expecting it. they'd been looking to 15% higher than the 280 million pounds we have been given. so surprising is what they say; a significant profit shortfall. william hill slumps, dragging down paddy power. look out also for some of the gold miners today, rand among the worst performers. the reason? gold is at a one-week low,

falling after that spike yesterday ended the sudden surge to safety amid the terrible atrocity in brussels. gold is now falling back lower. lastly, a high note. hermes. line up, the results look pretty good for the full year, overall buoyed by demand in japan, beating analyst estimates, operating profits up. operating margin is also ahead of last year's 31.8%, and overall they say they will be raising prices 3.5%. guy: thank you very much. stocks.g another stalker want to mention is credit suisse. initially when the market opened, the stock was around 12%. it is now 1%. it has been underway for around 30 minutes. tliv go is where you need to go on the bloomberg, and we have an

interview with the ceo, will be joining francine lacqua at 10:00 london time. equities were aggressively and receiving this business -- 2000 jobs are going to go. david cameron is looking to drum up support from the drinks industry. he says continued membership of the bloc will protect $45 billion in the industry. our next guest, though, has a different view. the founder and chairman of the jdb operator kati willis lee. >> i can't understand david cameron -- people have lost faith in him. he is acting like a salesman of poor medicines from hundreds of

years ago. it simply isn't true that 90% of people want to stay with the eu. guy: of the drinks industry. >> of the drink industry. we will be a far stronger nation outside the eu. democracy and prosperity go together. the eu makes rules which are democratic. we will be better off without them. that is better for the drinks industry as well. the drink's industry is an international industry. i think it is madness for a country like britain not to have control of its own laws. guy: here's the thing. that may all be true, but the problem is we don't know the deal we are going to get. we don't know what the reaction is going to be in brussels, in berlin, in paris. >> that is such a bad argument. i buy beer on behalf of

weatherspoon, not by any means the biggest pub company in britain, but i can do a hell of a deal. if i was organizing a deal with europe and i was their biggest customer, i would be able to do a heck of a deal. we will see one of the biggest suppliers of bmws in the world, the biggest buyer of champagne, perhaps the biggest iris camembert. we can do a great deal with our european friends. south korea has a free-trade deal; canada has a free-trade deal. it's not a problem. guy: but you don't know that, do you? >> obviously, there is a certain element of unknowns. i don't know the deal i can do for beer when my contract runs out in a few months. one,know i can do a good when they are down the road. it is in both sides interest to strike a good deal. guy: do you not worry that there will be an argument that says, well, others might follow?

as a result of which we need to make the deal not good? we need to make it punitive? we need to show that others should not follow? >> i just cannot believe bmw will say let's do a really bad deal -- guy: bmw is a negotiating. >> bmw has a big difference -- it's the people of germany and the people of france and the people of italy and the people of europe who benefit from free trade. this has been going on for 200 years, and it doesn't need a bureaucracy in brussels to imposed a trade deal. we can do real well -- -- youm just curious talk about the fact that it is bmw who will be negotiating -- >> i didn't actually say they would specifically be negotiating. just imagine in germany if bmw, a huge market in britain, and we're the german's and french

biggest market -- no free-trade deal? what are we going to do? guy: two things occur to me. why is business not making its voice heard -- you are, but others aren't. people have been surprised that businesses aren't stepping up. >> business is going to be speaking very loudly if it hasn't already. i know a lot of businesses which are speaking out. we had this know -- exact same thing with the euro, i was in favor, of nile fitzgerald of unilever says it will be hell if we don't join the euro. there wasn't one single bank, not one single financial institution, that said if you don't have a government you can't have a currency. a government and the currency are -- no one said that. but that doesn't mean they were right. in a lot of businessmen, a lot of accounts are back with money.

that's the problem. [laughter] guy: ok. this is the pound, the euro-pound -- >> it looks like the himalayas. guy: it does! it has been going in one direction, and the euro has been getting stronger versus the pound, at the same time it is getting -- >> i'm sat listening to this for 25 years, the currency has gone up and down -- guy: but you would completely ignore that? >> i would say it is a very nice-looking picture of the rockies. [laughter] thinko that point, do you the city by and large is petrified of this? do you think the city is in a bubble? >> the city is in a moneymaking mode. a permanent moneymaking mode. me when weained to

first saw the stock market and i was interviewed on bloomberg 20 years ago, when share prices go up everyone is happy; when they go down they are said. that the city. it's not a great philosophy where therency to say pound will go against the euro tomorrow. they aren't saying the euro can't work in the long run. guy: who is the most sensible person you have heard making the argument for why we should stay in the euro? who is making the most cogent argument from the other side of the fence? >> if i even dream of answering the question, i would have to wake up and apologize. no one has come up with a cogent argument for staying in the euro. guy: you are completely unconvinced? >> utterly. guy: great to see you. thank you very much for your time. tim martin. we will carry on the conversation. coming up, the u.k. treasury committee is going to be questioning the london mayor,

boris johnson, on eu membership. we will bring you that live here on bloomberg. coming up, terror in brussels and european unity. more on the immense task ahead for david cameron and angela merkel; that story next. ♪

guy: 42 minutes into the equity market session. welcome back.

you are watching "on the move." equities pushing higher -- let's get you caught up on what you need to know. kumutha: thank you. credit suisse is accelerating its restructuring. that bank announced it is targeting cost savings of 1.7 billion swiss francs in 2016 including, an additional cutting of 2000 jobs. it is one of the number of banks struggling to boost profits as global trading slumps. francine lacqua will bring you an interview with the ceo syngenta. nike shares fell in after-hours trading after they missed analyst estimates, raising concerns about growth. the company says sales will increase by a single-digit percentage of the next fiscal year. analysts have projected a rate of about 10%. the earnings will rise in the low teens, nike said, compared

with an estimate for growth of about 15%. full-year earnings that beat analyst estimates -- the french buoyedhandbag maker was by sales of leather goods in demand in japan. operating profit rose 19% to 1.5 4 billion euroon an adjusted basis. that your bloomberg business flash. guy: thank you very much. equity investors were already positioned for negative news in europe pre-yesterday's attacks in europe. nejra: this chart is really interesting. when it shows is that the resilience we have seen in european stocks following this awful attack actually came after a period the frantic hedging in european shares on monday, and that is what this chart is showing. a six-month high relative to cause. in other words, they increase their bearish as on the stock 50

index. to come back to that resilience, the rapid rebound we have seen in the stock 600 may be a function of how much it has already priced into europe's market. 2016 is already the most volatile year for european equities since 2008, because investors have been fretting about everything from corporate earnings to oil to central-bank policy, and as we know, strategists had already flashed their expectation for european equities, painting the gloomiest annual outlook in five years. guy, terror maybe on traders lines, but it is far from the early thing driving it. i had a look at the volatility index that rose yesterday, as is down today. -- and it is down today. guy: let's talk about that from a different angle. the brussels authorities have identified two brothers involved in the attack; let's get the

latest at the belgian capital, where ryan chilcote is. what can you tell us? ryan: very interesting, coming from the state broadcaster here theelgium, saying that police have identified two of the suicide bombers. it's not entirely clear whether both of them were at the airport or whether one was here at the subway station just a few hundred meters to the road from me. nonheless interesting that we have one news organization reporting that these brothers have been identified by the police as the suicide bombers. it definitely suggests a pattern if you look at the last few attacks; the involvement of a lot of brothers. the german news agency dpa as saying they were known to the police but haven't been involved in organized crime before this. we are also getting details about the individual details. they appear to still the at large, and there may be a

connection between them and the paris attacks. we are working to confirm this, but that individual, according to some reports, may have been solecomplice of the participant and was at large until he was apprehended on friday. lots of interesting details coming in on who may have participated. guy: ryan, thank you. ryan chilcote joining us out of brussels. let's talk about the knock on effects of the attacks. our chief international correspondent simon kennedy joins me, and by alan crawford. alan, how does this change the positionhat merkel find yourself in? -- finds herself in? alan: it definitely puts are pressure, andng at the same time we are looking at the way the german media is reporting this. they are playing a relatively

straight, a newspaper headline splashed with "we are at war." they sayeir website, that these kinds of attacks are the price we have to pay for our freedoms. at the moment, they are not questioning specifically. they are focusing more on the idea that there has to the greater security and intelligence sharing. at the moment, there is no huge call for merkel to reverse her policy, for example, but i think if there were to be any connection with germany, such as these people traveling through germany, that could easily change. guy: or if there was any connection to the refugee crisis more broadly. do think that would have an impact? alan: well, it certainly could do. -- therethe same time

was a single member of merkel's party, the chair of the european parliament, the foreign affairs committee, he was in brussels at the time of the attacks, and he was interviewed on german tv, saying that this is -- he was asked about schengen. he said that, look, this is a global war against the islamic state. this is noabout closing the border between germany and austria. so i take from that that merkel's party is standing fast of their position. guy: simon, let me bring you into this conversation. david cameron made it clear yesterday that we should not conflate the issue of what is happening in brus brussels and brexit. if you look at the financial market reaction, that line was drawn fairly quickly. how does the story play into what happens with that debate as we work our way through the next

three months? attacks like this -- how do they impact the story? simon: they impacted dramatically -- the pound went down minutes after brexit, it fell faster. the reason is people will draw that line, whether rightly or wrongly, and david cameron has been absent, saying that leaving the eu makes britain safer and stronger. yesterday in brussels, they challenge that view, and there are other parties that will draw a sick line between that. there are others who will just drop conference. -- draw inference. officer british peace was talking about the importance of intelligence, of being able to get across borders, get suspects, find out who is moving through schengen. all those has been raised as suggestions is why we should -- guy: the fact that this happened in brussels -- if it had happened elsewhere, with the

same conclusions be drawn? simon: perhaps not. brussels has become a catchall for european government, but regardless of whether they are there are not, it is still a major european city. it's not that far from british borders. certainly some within that will make the point that it is happening in brussels, and paris, they could happen in london. the case for david cameron to make is that there is a vast reason to stay within the european union. it makes us safer -- guy: wellbore straw a line or raise an eyebrow? simon: we will have to see. the message yesterday from the party was that this is rising above politics. boris johnson may articulate the brexit campaign, to navigate that line. guy: thank you very much.

simon kennedy and allen crawford. up next, let's carry on the conversation. sterling has been dropping. we will take a look at the pound amid speculation of the brussels attacks. the markets drawing the line between that and brexit. that story, next. ♪

guy: welcome back. the select committee in

london will grill boris johnson; fascinating with what is happening with the asset classes. i want to show you this chart right here. you can see -- this is the the poundh on cable, versus the u.s. dollar. is coming under pressure is volatility spikes, the charts moving in different directions. i will bring you this one as well, show you the spike, and bring in richard jones to talk about it. this is a longer-term chart. huge ryan. richard: we have seen a sharp in the helen versus the dollar in the cash markets over the past few days. initially on the duncan smith resignation, and it accelerated yesterday after the tragedy in brussels. i think investors are clearly saying that there is a lot of nervousness about the pound, and

heavy selling. guy: is this predicting they don't know which way will go? richard: you. -- yeah. the polls are tight. i think that is what investors are saying -- the uncertainty means they are concerned about where the pound is going, but the selling of the pound shows that perhaps they are concerned -- guy: any sense on the more regular measures of whether or not the market is stretched? what are the technical -- richard: technicals are showing that the most recent run-up we had was getting stretched, and now we are getting to levels where we could see some further downside. guy: richard, thank you very much. richard jones stays with us. i also want to tell you what else is coming up later on. we will be speaking to the credit suisse ceo. that is an exclusive conversation between francine him, coming up at 10:00 a.m. london time.

time, we will be talking to the st. louis president, james bollard. a busy morning here on bloomberg. plenty more coming up next. ♪

♪ this morning, suicide homers are identified in brussels. . third attacker is at large after paris and brussels, europe can not contain terror. credit sweeps cut to the bone. 12% will leave. we consider the new utility bank. francine lacqua and a conversation with our chief executive officer. yesterday, the debate on brexit. bloomberg