♪ 100 days. he wants a major conflict with north korea is possible. we will look back at his time in office. investoreport cards, confidence has improved. we will speak to jes staley. comes tone, when it brexit, leaders will declare unity against the u.k.. we look ahead to the crucial summit tomorrow. ♪

>> welcome to bloomberg daybreak the flagship morning show. anna: let's get to the details. a beat in terms of the first quarter net profit coming in at 1.27 swiss francs. a comfortable beat for ubs. they are saying that well-placed to benefit from any market improvement, but they are saying they have yet to see a sustained increase in client activity. this is something they have been struggling with recently. the rich to amongst put their money to work him a political and economic uncertainty. we'll talk more about that in a moment. we'll bring you the interview with the ceo coming at 6:45 u.k. time. manus cranny is on the ground ready for that. from zodiac -- this is a supplier in the aerospace sector

in france. they are the subjects of a takeover offer. they're putting out numbers this morning. talks continue with the view to completion. yesterday we saw the stock fall as much as six and a half a report thating zodiac will refuse to be bought unless saffron makes a serious offer. some fundurvey of managers and it suggested we could see a 23% move in the shares. if we see that deal collapsed. they say talks are continuing. they say first half sales are down 1.7%. let's get to our top conversation regarding the market. we start with the euro-dollar. blog -- this is the online blog subjects from the morning.

a little bit of a dovish tone from the ec b. a downside risk to inflation. with all of that in mind, we see the euro losing momentum. can they get the momentum back? we will get the u.s. gdp data later on today. rate talk about the risk -- we talked about geopolitics and what trump has been saying about north korea. he spelt out the rest, he said he wanted to see a diplomatic solution. equities were more positive than they are right now. we will say that, down by 3/10 of a percent. are getting other comments in the early hours from secretary of state tillerson, not quite so hawkish. we have seen an increase in the last six straight sessions. the nasdaq futures pretty flat.

keep an eye on that. we could get some strong numbers coming through for some tech names in the u.s.. amazon and alphabet. we are putting the yen and there as well. data coming out of japan, inflation numbers that are not budging. a modest recovery but some of the results look weak. let's go to david and glenn. david: let's start with what you mentioned, trump has said a major conflict with north korea was possible if diplomatic solutions failed. that comes even as senator john mccain said they understood military action was the last resort. trump approaches 100 days tomorrow. with a look at japan -- a lot of data coming through indicating the third-largest economy is continuing growth yet inflation

refuges -- refuses to budge. the unemployment rate stood at 2.8%. fell toal production one point person -- .1%. the figures come a day after the monetary policy. gather inders brussels tomorrow to finalize the brexit negotiating guidelines. yesterday they warned 27 countries are besieged to limit any consequences that are negative. the negotiations are scheduled to happen june 9. in thettle over a week presidential election and france, they step up one-on-one battles. they have radical -- radically different views.

>> i am the one who today has to create unity with in a fractured france against le pen. i unfortunately grew up with the french political landscape marked by this party, it is the one of hate, the refusal of the other, and a shrunken france. >> because, yes, my friends, i am telling you, this president shall election is a referendum for or against france. i call on you to choose france, not mr. macron. his platform is about the dilution of france. on his horizon is the -- the construction of france. david: an update on united airlines, they have settled out of court with the passenger dragged off the plane. he was removed from the louisville, kentucky flight. there is footage that went

viral. the lawyers have said the terms of settlement are confidential. day?ore news, 24 hours a you can find more stories on your bloomberg. weektrading session of the -- we are seeing asian equities, first regional wide fullback. ahead of a long weekend we have the u.s. gdp coming out later on. on monday, the pmi out of china. a lot of events risk ahead. asian investors pulling money off of the table when you look at asian equities right here. as far as much narratives are concerned except the fact that we have been pushing far as far as evaluations. we get a sense there is not a lot of risk appetite. for its bestised

week in 18 months, up 2.3%. earnings coming out of amron electronics in japan. biggest five coming out in the next few hours. we talked about the data from japan. this question of whether or not we are seeing wage inflation in japan, some people say we are not. that is not true. when you look at the unemployment rate, we are back to levels seen in 1994, 2 .8%, the jobless rate. toe is one way best way measure it, the morgan stanley, that has been up. 2% levelnverging at a which some people say that could be the land -- line in the sand where the ideal wage inflation would happen. i am david.

of the was drawn to some news about wages this morning. we will talk about that shortly. thank you, david. the european central bank has interest-rate unchanged. as officials monitor the economic recovery and the risk of political turbulence. mario draghi struck an upbeat note on the state of the economy, but not totally without concern. since our meeting in march, confirmed the soap -- cyclical recovery of the economy is becoming increasingly solid and the downside risk have further diminished. surrounding the growth outlook, while moving towards a more balanced configuration are still tilted downside and related to predominantly global factors.

senioroining us now, the manager at aberdeen management. we got what we expected in a sense from mario draghi, in terms of policies changes, that was expected, but in terms of how is the ec b expecting data, he had a nuanced message -- he said yes, we had something we are talking about solid and broad but inflation is not where they wanted it to be. i have a chart that shows the challenge they still have. this is not the whole picture, perhaps, but 1.5%, this is not what they wanted to be. >> no, it is not. i think we will see a change into june as well. april is a tricky month for the ecb. we have the elections in france as well. he talked about the international factors, meaning they are on the downside. i think in june we will move to a balanced statement, as we

shift towards autumn, i think they will talk more about the changes next year. we're expecting that to rise 20 basis points, still negative, but up. as the inflation numbers creep higher in the core -- anna: is that how they will do this? will that be the first thing they do? es it about taking a ax further? luke: i think for the banks they will probably do qe first. keep the depot right low. -- rate low. help the banks and continue to move the margin of profit. we have seen one cut in the qe. i think will get another in the autumn. we start seeing those rate cuts coming soon.

: he was referencing global concerns, the brexit conversation will be something a feature -- of a feature in the next few years. alexandria demos was talking about how the eu will present a united front in brussels against the u.k.. do think the u.k. has had little success in dividing up the remaining eu 27 limited success with that strategy? luke: on the face of it. underneath, there's a lot going on. the u.k. is saying, we will soften, we need you to soften. this weekend is all about the eu appearing tough. appearing united. up?: you are not softening .uke: no

luke: we talked about trade. this is the way europe works, and the back brand, there is a lot going on. it will not be about dividing, but trying to move them towards . more friendly attitude we have seen some of this, the eu trade commission saying, yes, we could deftly get a free trade agreement with britain, that is easy. on a: it seems to the goal to on thethe progress made bill, before we can get to trade talks. one area within the eurozone, where there is not unity, this has nothing to do with brexit

conversation, but their rates of growth -- i pulled up this chart because it highlights that same story we talk about divergence within the euro. this is germany at the top. this is italy at the bottom. the eurozone happen to seek out the middle ground. is this where the risk lies for europe? around italy weather in the banking or growth story? case, we had a's recovering economy, that helps with politics. when we get to italy in january and federally next year, i think we will see the election, this lack of growth -- that is the real risk. i think we will get three or four months of calm politics. we will get through august and get to september, politicians will start campaigning in italy. that is when things will get interesting in europe. and keeping their togetherness against u.k. through the middle of that time during the election

will be tough. anna: a lot has been made in the polling support in the likes of the antihero since. sense.-euro we will speak to the berkeley ceo jeff staley in his first interview of the day at 7:00 u.k. time. how is the investment bank performing and what is the latest on the whistleblowing story? we will talk to him about those matters. deluge -- fresh numbers from the world's thirds biggest economy pointing towards economic growth. this is bloomberg. ♪

♪ back.welcome europe."g daybreak: the dollar against the yen is at 111.13. -- we will get the u.s. gdp numbers later on. let's go to david.

ubs has said they had a 80% rise in first quarter profit. also adding billions of new money, they beat estimates. they added 20.5 billion francs in the first three months of the year. we will be bringing you the interview at 6:4 5 a.m.. unbrokenazon -- it is -- it's unbroken 20 years streak of revenue growth shows no sign of slowing. beatrojected sales might expectations currently, reinforcing the essence to investors that big spending on this is all part of a winning formula. there is an influx of online shoppers abandoning stores. -- google hasings

be the analysts sales projections in the first quarter, ending a four-year streak. revenue in the most recent quarter rose to $20.12 billion. google benefited from ads on smart phones. update on ceo gave an its response to the youtube ad placement controversy. they need to understand how hard we work to keep it as safe as possible. , youtubecarefully innovative creators can earn money to support their content. been actively engaged in conversations with client about the new tools and controls we're providing. we are having very productive discussions. david: that is the bloomberg business. anna: today, the boj kept their

monetary policy unchanged. we've had a flood of data out of japan. numbers indicating that japan saw a modest recovery, yet inflation did not budge. consumer prices, excluding pressured increased .2% in march, in line with forecasts. we talked a lot about japan and the boj yesterday, we talked about what they were saying how far off any change in the qe program might be. i guess that looks to be sensible, when you think about how sluggish the inflation story is. have this national agreement on wages in japan. it will keep them suppressed for a little bit of time. unemployment is low. 1.5 jobs for every person looking. -- anna: 2.8% is low. luke: and anywhere in the world you can can -- can see that come true -- but not seeing that in japan. it is the aging population

problem they have. aroundvery conversation japan seems to feature wages, aging population, the structural change to address it. i pulled up this chart to address the factors. here in the blue we have the move in wages. we did see some pickup in 2016 in wages. perhaps that can came down again. it is not enough to get the japanese consumers spending. the international climate keeps lifting things. luke: in a sense, the yen performs as a safe haven currency. the geopolitical noise is keeping pressure on the upside. that is just suppressing inflation as well. inflation,y did have with the wage situation now, it would not be good for them. it would suppress growth as real wages come under pressure, like the u.k.. real wages come under pressure. i think the structure of the

labor economy in japan is interesting. behold the publicizing -- the izing is making a difference. people will be glad the robot helps them get productivity higher. anna: we talked about the challenges the central bank has with the driving up of inflation -- some people say technology is made in a different. is that something, not just with japan, but in general, in western countries, it is making it difficult for the central bank with inflation because of the technology. luke: there were farmers in the u.k. talking that using robots to replace workers from eastern europe. this will suppress any new hirinin wages. there are still a lot of debts around. we talked about the rising inflation globally, that will tend to suppress inflation. i think it is really hard, the

central bank is getting towards the end of what they can do. probably have reached the end. we know they are getting out on their own. anna: corporate profits in japan not looking good. this is the corporate profits in the u.s.. let's go to the u.s. conversation. focusing on the recent quarter, it predicted we would see earnings growth of more than 10%, that is what we have. we're not through the season yet. this is what we have so far. very strong. luke: it is. i think the confidence we saw through last year for the consumer and companies -- when they have such a strong dollar that currency gives them the opportunity to use the earnings to bolster balance sheets and do m&a. i think this will lead to more of it. anna: see if we see more m&a

rather than money going back to shareholders as an alternative. let's talk a little about -- this is what we have seen from the u.s. markets -- in terms of the tech sector, strong numbers overnight. hoursle of strong after moves from alphabet and amazon. luke: google, i. -- google caught my eye. the momentum of their earnings helps them get past problems quickly. they have come in and been successful and been competing in markets. i think you are seeing tech understand the need to get into new markets. intel's recent acquisition is interesting. they are going into car automation. amazon shifting into the home more and more, taking your voice now. anna: you were impressed with

the numbers on a bottom line delivering better? is almost as if they care about reporting earnings. that is positive for shareholders. it is a company that has more growth to come. anna: thank you. you mentioned the electric cars. this is gaining momentum. thank you. the senior manager at aberdeen asset management. we will be speaking to jes staley at 7:00. the ubsalso speak to ceo. up next, energy health care and integration. president trump has tackled all of his first 100 days, how effective has he been? at what he hasck accomplished and the fronts to his policies, the executive board, and the conflicts, and

his politics -- popularity ratings. we will put that together and talk about how that leads democracy in the u.s. and perhaps locally. that will be next. this is bloomberg. ♪

♪ it is 6:30 in london. hensingg is down -- the is down. dominating thern asian session as we get through comments from trump. let's get to breaking news -- numbers out in terms of the french growth. -- quarter onbers quarter, 0.3% against the estimate of 0.4%. it is a little bit weaker than estimated by economists. likewise on the euro and yen, 0.8% growth. of the forecast, 0.9%.

also lower than the prior number in both cases. softening a little bit, the french growth story. my colleagues at bloomberg intelligence telling me the broader picture around the french growth story has been accelerating as of late. the output has -- outlook has been closing and unemployment early -- remains high. domestic demand should continue to drive the expansion, the words of maxine. from get to breaking news the drug sector in france. have a from -- french drug maker printing numbers one point 42 euros against the estimate of 1.26. a nice beat. talking about diabetes, the focus, they say that u.s. diabetes sales declined. they have not yet seen the full impact of exclusions.

these comments coming in from the ceo. consumer health business is seeing momentum, challenging payor environment, they talk about. this is from a conference call from the ceo. a real focus for this company on insulin, that is why the diabetes comments. they have been facing pressure from cheaper competitors. they are trying to pursue new drivers of growth as they see losing patient protection, that was in 2015, they are focused on potential bounces from rheumatoid arthritis. that is the focus topics from sanofi. the ceo will be joining us at 7:30, london time. let's get the numbers from danske bank. we have had numbers coming out from the banking sector. dan scott bank -- think the bank

beating the profit that was estimated. the ratio was 15.5%. we will be speaking later to the keanks go bank ceo --dans bank at 6:50 london time. a new edition of daybreak is available on your mobile. is eu united on brexit. eu leaders are set to declare that when it comes to brexit 27 of them will stand as one against the u.k.. a saturday summit in brussels will serve as the stage for them to talk about unity and warned her to show officials against division, in the hope of securing a better exit deal.

of the 27 takes place on saturday in brussels. certainly, they will be trying to show their unity. they will be challenge -- channeling alexander dumas, offer one. -- all for one. 80% rise in an first-quarter profits with clients adding billions of francs a new money. more analysis from manus cranny shortly. we will be speaking to just sit daily -- jes staley. daybreak focuses in on gdp. numbers from the u.k. and the u.s.. the u.k. economy probably lost momentum in the first quarter. of zeroect a figure point 5%, down from 0.7% in the prior. in the u.s., the median is 1% growth. growth figures coming in.

we started with the french number earlier on. let's turn our attention to what is going on in the u.s.. it is day 99 of the trump administration. as we approach the landmark 100, bloomberg guests have been weighing in. here's what the politicians and hedge fund managers have had to say. >> i think it is then a combination of positives. >> work. work. get people jobs. >> it has been chaotic. it has been inconsistent, little has been accomplished on the legislative side. >> turbulent. difficult as the first days always are. a lot of promise. >> a supreme court nominee, you look at that, it will have implications well beyond when he leaves 1600 pennsylvania. >> nerve-racking and confusing. >> good momentum, when he is able to work on his own. >> he was able to roll back

rules and regulations that are a thousand times more than any previous president in the history of the nation. anna: many views being expressed their about president trump. tomorrow marks his 100th day in office. here is brian, a fellow in comparative politics at the london school of economics. great to have you on the program, brian. this is a rather artificial benchmark. why should he live up to anything in 100 days? we talked about this in the u.s. context. why with that matter? brian: this tradition started with fdr in the 1930's, it is arbitrary, but an important benchmark. set a ridiculous standard, but when he was campaigning he said he had a contract with the american voter and said he would sign 10 piece of legislation in 100 days. he has signed none of them. he has done nothing on the legislative side. i think the question is, is all of the optimism -- for business,

people were excited about trump. -- was that optimism misplaced? the hundred day benchmark suggests yes. anna: the shows what we saw from high tax rated companies. they lost gains they made. gainingthe russell 2000 , and then losing some of the momentum. still a little bit of optimism. coming back to the 100 days thing -- you say he was using it. maybe he has the long game in mind. he was not brought in as president because he was going to do things the way people did in the past. he is running up against teasing problems. brian: it is supposed to be a barometer. we know it is arbitrary. there is no reason why he cannot, shang's in the fourth month. obama had signed for major bills into law after 50 days.

trump has signed zero. that said -- that is something that tells you he has a problem because the comparison is fair. the democrats controlled everything when obama was in power. now the republicans do. anna: he is an outsider. he is running things more like a ceo. that will rub people in washington the wrong way. it is not necessarily tell us he will not have success. brian: this is the problem trump has inflicted on himself. his campaign message was not just, i will be another politician, it was my will be better and faster. the exact opposite has been true. his own words are used against him. you say itre, when is an arbitrary standard, he set the standard for himself. he signed the contract with the american voter saying this. i am not somebody who wants to say, gotcha politics, you didn't do what you said. he said, this is what i will do. i think it is fair for people to then hold him accountable.

iso, keep in mind, he historically unpopular. at this stage, obama was in a 65% approval rating, the lowest in american history since the 1950's the president has had with 55%, clinton. trump was at 39% yesterday. anna: is there an implication of that? does that matter? brian: absolutely. we are now 20 months away from the midterm elections where the president's party loses seats. publicans are starting to worry about the fact that his unpopularity might be cost -- might cost them their reelection prospect. that means he will have a harder time getting legislation through. they will think, maybe i don't want to side with the guy that is the most unpopular president. that is a real risk. if you want to get a tax reform law that is confident -- commercial, 8 -- controversial, you need the president's coattails. trump cannot offer that.

anna: he has written quite a few executive orders. there have been a lot of fanfare. if we look ahead, into the coming 20 months, where do we focus. health care is a big thing. brian: trump made a mistake. what he should have done, was an infrastructure bill. it was the only thing in his agenda that could have gone democratic support. anna: do republicans want to pay for that? brian: yes. i think a lot would say it is a necessary investment. he could have extended an olive branch. instead, he used the divisive aspects of health care and tax reform, some of the thorniest issues. we saw what we expected, they fell flat. anna: thank you. we will be speaking to a host of ceos in the banking industry today. we are keeping focused on that.

we will talk to ubs. we will also speak to jes staley. that is coming up shortly. this is bloomberg. ♪

♪ anna: welcome back. "bloomberg daybreak: europe." it looks sunny in sydney. where on the s&p asx 200 for the days trade. the bank of australia is meeting next week. longer below 2% target range. we are atf australia, 0.74. 80% jump in an first-quarter profits.

net income outpaced analyst expectation. the bank said it is yet to see a sustained pickup in client activity. manus cranny spoke to the ceo. sergio: we do see a little bit of momentum coming from the q4 into q1 in terms of opportunities that are more constructive. translating that into sustainable client activity across the board, and some other matters -- we are seeing a difference between private clients in this quarter, we are more active than institutional. i think it will take a while to normalize the situation. we do need more concrete actions in the world, politically speaking in stabilizing the geopolitical situation. : 100 days into the

wemp administration, -- when caught up earlier, is the lever that shifts? levers will be concrete plans that will translate into action. they will potentially fuel be momentum. i do -- the momentum. i do think the real danger is that people could get tired to be optimistic without seeing concrete actions. this is for the time being, not the case. i am sure that in the foreseeable future we will see more action and normalization. management in america had a record performance. do we need to rerate what we expect? sergio: yes.

if you look at its contribution for the last four or five years as being very strong. the fact that we had a record q1 17, it is a demonstration. i think the franchise is one of the best in the market. we do see growth in the foreseeable future. we need to look at the global franchise. if you look at the results. 1.1 billion of pretax profits across the board is the big story. 19% up. i think we need to look at a rerate of the value of the global franchise. that is unique and cannot be replicated. manus: we need to rerate globally. across the border, is that something that will be an undercurrent? say at the end of 16, we do expect similar

outflows for 17. around 14 billion for the year. we saw 1.4 for this quarter. we are not focused too much on that. we have been seeing, and the last five years, 50 billion, out of 2.2 trillion of assets. you can see it is an issue, but not the driving force. what we are looking at is the quality of the flow. our flows translated into investments and opportunities for the clients, and for our capabilities. ,anus: i have to get global fine. talk to me about the investment up 51%, the are five big players in the u.s. have had a strong quarter. what was the strength? the strength is

something you have seen in the last three or four years. the superior capital. we had a 24% return on capital for the av. without cover rising on quality and excellence. we are a leader in many areas. they are the one in which we choose to compete. are some competitors showing good momentum -- some were coming off a very weak q1 in 16. if you look at certain businesses, they might deliver pretax profit, but if you look at the consumption of capital -- one is to say, i am happy with our business. manus: the repeated question, i will give it another go, are you, or would you be prepared to allocate more capital to the -- to be any part of the business? sergio: absolutely not. they don't need it.

they are performing well because they have a clear business model. they are very focused on what they do. they are one of the best. if you look at the effects business, we are one of the leaders. we don't need more capital. we are investing on technology. we try to bring ourselves to the next level of client service. the balance of capital allocation within the group and a b is the right one. manus: i cannot get you did change the structure? sergio: we would be diluting the return. regrets says the ceo of ubs. sticking with banks, thanksgiving d --anske bank beat estimates. joining us now is the cfo.

in an exclusive interview, live from copenhagen. great to have you on the program. let me start with the performance in the past quarter. it seems the trading business has done better than expected. what are your ambitions? how significant part of the business cannot become? >> thank you. you are right. we had a good start to the year. no doubt the q1 has set us off to a strong start. as you point out, trading was strong. i think it is another quarter where we prove that we are the nordic ficc powerhouse. it is a very strong set of numbers. i am hesitant to go into projections. i can see why you're asking, but we have had a number of strong quarters, especially from the ficc business. in terms of extrapolating that, as you know, we dried a customer driven business.

therefore it will always be dependent on the customer activity. it is an encouraging start. the nordic ficc powerhouse, you say, are you taking market shares from others who are retreating? jacob: when we look at the nordic region, there is no doubt there has been good volume and good activity in a number of areas where we are strong, especially when you look at danish and swedish mortgages. the fixed income markets have been strong, including fx. that is are we have a strong position in the nordic region. take someen able to share, but also exploit the decision. at the same time, i think, the other important take away from the counter market -- capital market side is, the business in general, where you will see from the numbers today we have strong fees coming.

in general, the capital markets business has also done well. it is not just a trading thing. it is generally a very strong performance. anna: you are famous for being the tank dealing with negative interest rates the longest perhaps, how are you coping? is it starting to hurt? jacob: it is a fair question. we were the first major bank in europe to move into negative rates. when it came, but it has given us the opportunity to work on the business model. i would not say it has hurt, especially in the last few quarters, compared to what we have seen in the last few years. the business model has adjusted. it is not a healthy fine for the economy, for the banking system in the long run. we are very clear on that. on the other hand, we work very hard to mitigate the negative effects. i think what are showing with our numbers coming up, we have managed to mitigate that. gets hurt by this, as we

decided not to pass on the negative interest rates to the retail customers. there is a negative side. there is the risk in the long term of creating bubbles in an environment with negative rates. anna: are you confident retail clients will not be asked to pay up, even if negative rates continue into 2019? the retail client base will not have to share the cost? jacob: i am confident in that coming us. we made a pledge as a bank that we will not charge ordinary customers negative rates. it is not part of our plan. anna: where do you see growth coming from in the coming quarters? where are you looking for growth? jacob: i think that is the right question, and i, when you look at our footprint, it is diverse. the growth we have seen in the

last few years has come from the swedish and norwegian business. that is where we see the growth in the coming years. denmark and finland are large markets with a gradual economic recovery. we are seeing a bit more growth coming out of those countries. the main growth will continue to be sweden and norway, especially sweden i would say where we are seeing the effects of our partnership agreements being made with a number of unions in sweden. that has given us good growth. we have seen double-digit lending growth in sweden and norway in this quarter. we expect those to continue. it is a nordic case. for the nordic sector, some of the capital ratios look strong by comparison to others, globally in the banking sector. there are conversations about balance sheet strength have stalled. things could be

less correlated with trump in the white house and other factors than they had in the past. jacob: there is no doubt we are in a situation of uncertainty. target out with our own in the summer of last year. we raced those targets in the light of uncertainty. we are not going to try to be clever in terms of predicting where we will end up. there is no doubt there is a high degree of uncertainty. ofre is a risk, as you say, different tempos in different jurisdictions. right now we need to focus on what is in front of us. we will let the politicians decide what will happen. we will deal with that as a comes along. anna: thank you. the cfo of danske bank.

we will stick with the making sector again. we will speak to the ceo of barclays, jes staley. this is bloomberg. ♪

♪ and: ubs beats estimates investor confidence improves. earnings from barclays and speak to the ceo jes staley in his first interview of the day. comes 100 days as u.s. president nears the landmark date, major conflict with north korea to be avoided if possible. his days in back at office. 27 eu leaders will declare unity against the u.k. this weekend. we look ahead to the crucial summit in brussels tomorrow.

warm welcome to the program. this is "bloomberg daybreak: europe." in london, i am anna manus. 7:00 here in london. we are getting numbers from barclays, net revenue for the first quarter at 5.8 billion. that is ahead of the first quarter a year ago. an improvement on the previous year. the ct one capital ratio come in at 12.5%. that was against an estimate against 5.4%. balance sheet coming in stronger. billion,ses to 1.8 6 that is the profit before tax at one point 68 billion. these are the details we are looking at at the moment. a host of other numbers awaited from barclays but with headline numbers in mind, let's get over

to the ceo of barclays, jes staley, who joins us from the london headquarters. great to have you on the program. diving into these numbers right now. first-quarter revenue looking to have made an improvement against this time the previous year. what are the big positive drivers there? jes: i think we had a great first quarter. growth was quite strong over the first quarter of last year. doubling or more than doubling the pretax profit speaks to the core earnings potential of barclays. part of the story is, we are getting very close to closing our non-core business. differencesbig between this year and last year is -- the difference between our core results and our group non-corey the drag of was 600 basis points. that has narrowed to 200 basis points because we are focused on

getting out of businesses we don't want to be in. two months from now, barclays will be the bank we wanted to be as we launched the strategy of march of last year. for: are you still on track june and give us other strategic matters, like africa. to 27on-core, we are down billion. down 5 billion in the quarter. our target is to close non-core on june 30 of this year at around 25 billion. we have two more assets to close the sale of. sell is ourset to retail bank in france, which is well on track. the big issue is africa. have an agreement with the inagement in barclays africa terms of how we will separate the two banks. for there waiting

regulatory approval in south africa from the minister of finance. and i love there continues to be constructive and we look forward to receiving the approval. then we have time to sell our stake in africa down to a level that allows us to be consolidate the african business as a regulatory manner. is some of the strategy around businesses you don't want to be in, but you have thrown their weight behind investment banks. let's talk about investment banking revenue. how have you performed on that revenue line this last quarter versus the same quarter in 2016? jes: the strategy is to be a transatlantic consumer am a corporate and investment bank. investment bank is an important component of that. the corporate and investment bank generated a little north of 8% in the first quarter. on hundred basis points better than last year. on a strong note, in terms of

, mergers and acquisitions, equity capital markets, we had a great first quarter. number markets revenue in the history of the bank. currency,f rates and you always have to look at -- we had a strong first quarter last year. on a quarter to quarter comparison, we didn't have the uptick that a number of u.s. banks did, but in part that was because of a strong quarter in the first quarter of 2016. we always want to do better in the markets business, at the overall profitability in corporate and investment banking is making good improvements and we feel pretty good about the quarter. . anna: are you happy in how the peers performed? you mentioned your strength last year was exceptional. are you happy versus the competition?

bank,crease at deutsche 14% the top five in the u.s.. are you happy with where you sit in that competitive bracket? i am very comfortable with barclays is as a competitive matter. a number of investment banks had very down quarters in terms of the first quarter and have recovered from a week first quarter. we had a good first quarter last year. we could have done a little better on u.s. rates, but we are not going to make any judgment based on one quarter's performance. anna: let's switch to a subject that has been preoccupying you of late and it has to do with the whistleblowing episode over at barclays. i know there is an ongoing the proxyion, but advisor said the shareholders should abstain all votes against your reelection to the board at the agm. and you update us on what you

hear from shareholders? you still have shareholder support despite what happened in the weeks passed? the full board of the bank did its review, and voted unanimously to support me as ceo of barclays. fromgetting positive shareholders. i am as committed as the day i joined.

anna: where you put your staff? jes: i think there will be some hiring in locations inside of the european union, but i think the mistake is to say that it is firing here to hire there. we will increase our staff in the european union, but if you look at the results of the bank where we are doubling our profits. the encouraging thing is as we close non-core in june, now is the time to invest in barclays. as an institution to look forward to growth as opposed to always cutting and slashing. we will add some employees within the european union. we have had to restructure the bank within the u.s.. we had to restructure the bank for the bank and you can.

we will have to deal with these vis-a-vis the european union as the result of brexit, but we are committed to our position and role in the united kingdom. we believe london will stay as the financial center for europe and barclays is committed to do its part. anna: thank you so much for your time this morning. we appreciate it, jes staley joining us from barclays headquarters. let's get -- sticking with the banking sector, we get to the rbs numbers. 1.3 3 billion pounds profit. above the estimate. beating estimates this morning. just getting through to some of the details. net interest of -- removing 78 -- 13 7% as the annual -- cost cutting the focus here. the ceo removing costs trying to

maintain revenue as his target returns to sustainable profit in 2018. also wants to retain the dividend. the government remains more than 70% owner in this business. some of the big obstacles facing rbs at the moment. looking for an update on those at the moment. let's stick with the banking sector and get more information on making good numbers. another update on the u.k. government's ownership of this banking business. 0.8% rise. government voting rights lower for the first time. they took a higher stake in lloyd's than they did others at the height of the crisis.

mistake pretty small in that u.k. focused bank over at lloyds inking group. its get to japanese auto. numbers through from honda, operating profit coming in at -- against an estimate of 84 -- 85 billion. fourth-quarter numbers coming through from this business as well. based on their forecast, this is interesting. ¥105 to the dollar they currently trade at 111 or so. the japanese equity markets this morning, numbers through from sony also. how strong is the demand for camera chips. we have some numbers from them. is more about the outlook statement. profit ¥500 billion against an

estimate of 506 billion. coming down a touch but not an enormous amount. an update on their numbers there. this in the context of what they have done in recent years. it makes for good headlines. sony sees the highest profit in two decades on gains and phone cameras. the president has made an effort to turn the company around since 2012 and you put the focus on games and camera chips, trying to see the company through the restructuring. 7:15 in london. a host of earnings for ubs and barclays, we returned to the banking story when we come back. we will be live in zurich. this is bloomberg. ♪

♪

anna: welcome back. 7:18 in london. its get a business flash. here is david. david: thank you. let's talk about tech earnings coming through amazon's 20 year streak of double-digit revenue growth. no sign of slowing. estimates in the first quarter projected sales beat projections. tonforcing a message investors that big spending of warehouses, movies and devices were all a part of a winning formula helped by an influx of online shoppers abandoning business for its cloud computing division. plans to reshape the companies. a snag in the third quarter as lackluster sales to tablets and weaker demand for corporate software kept revenue growth in check. i adjusted sales in the period billion. rose $23.56

starbucks new chief who took over this month isn't getting much of a honeymoon. sales mists analysts estimate. problems are weighing on growth. sales rose 3% last year. that was your bloomberg business flash. the: let's return to banking story. ubs reported an 80% jump in first quarter profits think's to its wealth management division. 1.2 7 billion swiss francs topping analyst expectations. it warned it has yet to see a sustained pickup in client activity. manus cranny spoke to the ceo of ubs, sergio ermotti. sergio: the biggest risk to markets is the convergence of what we call minor issues. you mentioned north korea, france, you talk about any

geopolitical event. any macro economic issue, and they are all there. imagine a radio screen and one or the other, is there a chance that any of those issues may crash? sergio there. manus, good to see you. strong numbers from ubs. was there a hint of caution from sergio? manus: i think the measured tone. donald trump talking about a major potential issue with north korea. if you look at his first quarter, money is coming in. a turnaround from christmas time when we got together. the clients aren't fully translating but they are doing more. new money. and the margin. they want to think about net margins, those are up and wealth management is a global business. we chatted about how to think about that and he is saying you need to rerate what you can

expect from wealth management. a record quarter and i suppose if you think about it, if they do get a 15% corporate tax rate from donald trump, a rewriting on the wealthier taxes, you can understand why he says it is expected that you would rerate wealth management america. good set of numbers, very much all the way around. still cost cuts to do at the bank and deficiencies to draw out. we heard from sergio ermotti earlier that you must think globally on wealth management. what about the investment bank? hass: the investment bank had absolutely a bang out quarter. it is about deals flow. they talk about an unevenness in clients. a lot of people in the market go, ubs pulled back from certain parts of investment banking. the credit side. one side is deal flow pumping

away, then you've got rates, credits and effects. number one in fx, not fully geared in credits and he shows no remorse. i'm not prepared to allocate any more capital to the credit's nest. i am happy with where i am. if i did put more capital into that. i would dilute earnings. relaxedever seen him as , on form and ready to engage. i still couldn't get him to say which bank he would be interested in buying. we had a chuckle at that. i told him to speak to bloomberg first, though. anna: i'm sure you did. thank you very much. manus cranny from zurich. much more on the banking sector to come through. 7:23 in london, eight: 23 in paris. the presidential face-off is in its final round. france alexa new president and emmanuel macron and marine le pen step up, turning

combative. macron told voters they must take a side. the one who today has to create unity within a fractured france against mrs. le pen who is the face of the national front. a party we have known for decades. thefortunately grew up with french political landscape marked by this party of hate, the refusal of the other and a shrunken france. pen: i am telling you my friends, this presidential election is a referendum for or against france. friends, you to choose platformacron, whose is about the dissolution of france. his horizon is the deconstruction of france. anna: we're joined from paris. you have been tracking the story for us. great to have you on the program. we have seen macron still

leading in the polls but slipping a little bit. how is he trying to turn that around? >> the challenge is to not appear like the candidate of the elite, which is of course what marine le pen is playing on. emmanuel macron tried to do that yesterday by going to the sale and playing soccer with the locals, and then last night, you have seen this incident which happened on wednesday where macron had to engage with some strikers, since he has been appealing as the candidate trying to appease the social malaise we are seen throughout france. polls,you look at the the momentum for emmanuel macron is slightly fading. versusl from harris, 61% 39% for marine le pen. if you look at the same poll

just a few days ago, it was showing 67% for emmanuel macron and 33% for marine le pen. the gap is narrowing. make the voteld swing in favor of the pen? wille big unknown is what the 21 million voters who didn't vote for either macron or marine le pen will do in this runoff? for example, if you look at the republican candidate francois fillon, one third of those who voted for the republican could go for marine le pen in the runoff. the bigger unknown is what will the milan shall voters do and -- many will obtain some some started a campaign on twitter saying, without me on may 7. much.thank you very

that is it for daybreak: europe. the european open is next. european equity markets on a slight rise. a little positive ground waiting for u.s. gdp figures later on today. this is bloomberg. ♪

i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second.

you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. ♪ francine: good morning. happy friday. welcome to bloomberg markets, the european open. your first trade coming up. what are we watching this friday morning? at the headline level, a big beat for barclays, pretax profit comes in above expectations. it appears as if the trading wasn't enough to scratch. we have seen a miss their as a result it will be fascinating to see how this stock opens. tracking towds