dani: good morning. this is "bloomberg daybreak: europe". i'm dani burger in london with

the stories that set your agenda. ueda searches -- meta-searches post market. amazon reports today. sentiment roiled, the first republic slump deepens as the troubled bank could face federal borrowing curbs. concerns about regional lenders driving the s&p 500 lower for the second straight day. escalating the standoff with president biden over averting a u.s. default. deutsche bank reporting earnings now. trading revenue down 17%, a miss, the estimate had been just over 2.5 billion euros, that will be a big disappointment as its u.s. and european years so far have had strong, thick -- ficc results. the ceo says they are on track

to meet 2025 targets. they have increased the incremental savings target by 500 million euros, something they have shined at doing that is cutting costs. they have imposed hiring limits for non-client facing roles. they are engaged in trying to cut down costs, but the real issue for them will be these trading figures. there appears in the u.s., even citi, credit suisse and ubs to some degree had stronger trading numbers, but for deutsche bank it is a miss on trading figures, fic at 2.36 billion euros, the estimate was 2.5, pretax profit higher than st micro earnings coming up in one moment. we had a samsung earnings earlier that were not great, but the alec was better. st micro as a slight beat, $4.2

billion. their operating margin at 49%, the estimate was 47%, better margins should help him out. a lot of earnings to date through -- big through. two will speak to the ceo, you will hear that interview at 6:30 a.m. london time. let's get to the markets this morning because bank stress has been weighing on these markets. a lot of bond buying has been concentrated on the belly of the curve, another day of buying five-year yields, those are lower two basis points. according to a survey of economists, the most recent banking turmoil has been equivalent to 50 basis points of rate hikes. the fear is that combined with a may hike from the fed will tip us into recession. s&p 500 futures have a boost from meta-earnings.

i mentioned to chipmakers pulling back on spending. samsung is appointing, but says the global tech industry will emerge better at the second half of this year. that turnaround is helping support shares. finally bitcoin under $30,000, moving higher but order books are thin, shares are more volatile, so not too much read through there. let's get your top stories from around the world. valerie tytel is next to me with the latest on first republic. alex webb will talk about meta results, and bill faries joins us on the latest u.s. debt ceiling debate. starting with first republic, it's stock halted 16 times during wednesday's trading session. down 30% on the day after losing half its value the day before. u.s. regulators are weighing limits on the bank's access to borrowing from the fed. for more let's bring in valerie.

is there a sign of a rescue deal for first republic? >> we are in a holding pattern, waiting for some private buyer to come forward, potentially another bank to buy. the lower the stock price goes, it is more likely to happen but it seems like private buyers are hesitant to do this without a combination deal with the fbi see two-minute -- fdic to minimize the risk when they take on this loan book. first republic is trying to pitch to the u.s. government restructuring solutions, but it seems the government has demurred. we are in the middle of a standoff between potential buyers waiting for the stock price to become more attractive, and the fdic unwilling to go into receivership to take on the losses themselves. the argument is it would be less expensive for the banking system

as a whole, for a private buyer, then the receivership option for fdic. in receivership, shareholders get wiped out, they chop up the loan book, and take on the losses themselves. there unwilling to do that because of $30 billion of losses from the first three bank failures. it is well past the time for the fed to widen its emergency lending facility, for a liquidity in addition to first republic. they don't want to give additional help. we had reporting that the fdic is looking at downgrading them to cut them off from using the fed's discount window. dani: what impact will this have on the fed and economy? >> yesterday's stock price plunge did not drive a broader move in risk markets. that was welcoming to see, but

the issues facing first republic are facing a lot of other regional lenders out there. they are not profitable with a fed funds rate at 5% and their loan book portfolio is yielding way less than that. dani: this is not going away anytime soon. meta shares jumped 11% after the company forecast second-quarter revenue that exceeded estimates. alex, what were your takeaways from the meta earnings? >> google yesterday reported higher-than-expected growth in its advertising business. it is a little bit of tension for meta and whether it also had an increase in ad sales, or whether it was google specific. the good news for the advertising market as a whole is that facebook beat when it came to ad sales, that is good news

for social media companies. zuckerberg did say, we care about the metaverse, he was keen to talk about artificial intelligence. but he did say, this did not happen in previous quarters, that the metaverse remains a priority. dani: this is supposed to be the year of efficiencies. we have to talk about this microsoft activision deal. the cma blocking it, essentially saying this could harm competition in the cloud specifically. what does microsoft do now, what are the odds they could appeal this decision? >> not a great track record for companies appealing decisions from the cma. it is looking bleak for microsoft, they have made concessions about the availability of activision games on cloud services. it has been blocked on the basis

that it would give microsoft an advantage in cloud gaming. this is a very nasa and spate -- nascent space. you get a sense that they looked at earlier decisions to allow deals, you look at facebook and instagram, which they let go through. those were very nascent markets, they are getting in early to stop this activision blizzard deal. dani: that is alex webb from bloomberg quicktake. on to u.s. politics, speaker mccarthy's debt limit bill has passed the u.s. house, in a politically important victory that intensifies the standoff with the height house -- white house over avoiding catastrophic u.s. default. i would assume this bill is dead on arrival for a democrat controlled senate, so what is next? >> on top of that, president

biden himself has said he is not willing to negotiate with republicans over an increase in the debt ceiling. he wants a clean bill that raises the debt ceiling with no other strings attached. what this victory for kevin mccarthy means is that republicans are likely going to be able to negotiate something with the white house. what form that takes, and how close to the debt ceiling deadline it takes place is all up in the air, but it is a political victory for mccarthy. it would've been a tough defeat for him four months after becoming speaker. but the bigger challenge lies ahead when republicans and democrats sit down to hash this out ahead of any debt ceiling deadline. dani: it looks like the x date might be pushed back. goldman sachs writing because of the tax profit, maybe that is in july.

>> i think the terms of the debate aren't going to change very much until a few weeks before that deadline hits. we should have a better sense from the treasury department sometime later this week, or next week, about when that so-called x date is. both sides will stick to their guns until the very end. you will hear a lot of democrats saying we won't negotiate. republicans calling for big budget cuts over the next 10 years. those positions will be unchanged until the last minute when both sides decide whether they can blank or not. dani: bill, thank you, on the latest debt ceiling news. let's get set up for your trading day and look out for things we are watching. at 12 p.m. time, we will have turkey's final policy decision

before the may 14 elections. 1:30 p.m. u.k. time, the u.s. initial estimate of first quarter gdp, we will have core pce and initial jobless claims, some of the core quarterly pce readings that will be important. finally it is amazon earnings, the company is set for the weakest quarterly revenue growth on record when it reports post-market. first, we will get more on the markets as traders we the central bank's next hike moves. how does potential failure at first republic change things? deutsche bank misses estimates, don't miss our exclusive interview with cfo von moltke at 6:30 a.m. london time. this is bloomberg. ♪

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>> i may be a little too high in terms of that prediction. i now worry we could be lower. i think what we are seeing on the long end, ultimately the curve will flatten around something, 3% will be the opening gap bid for that. dani: j.p. morgan asset management saying the curve will return to 3%. joining us is a senior rates

strategist at ing bank. it sounds like he has been reading some ing research as well. you also cs returning to 3%, what gets us there? >> basically the incoming recession in the u.s., we had that call before the banking crisis, now we expect credit to titan for the economy. it is textbook credit slowing, then the fed will be able to cut rates. it is not a great mystery. what is more interesting is that 10-year will get there. but also the two-year, so the curve is converging to three. then more of a premium at the back end thanks to long-term inflation expectations, and the two-year that will reflect cuts perhaps to 3% or lower. dani: part of this debate is how much of this banking crisis is a replacement for fed hikes?

research says this equates to 50 basis points. what are you looking at to actually figure that out? antoine: there was a survey published in may, that is an important data point. we have to look at weekly loan data which at the moment is very noisy, it is difficult to get a read. it gives us confidence that there will be a turn in the economy, this is the important point. so far, as much as we knew the economy was not slowing down, it was very slow. dani: what is the economy look like if we cut 100 basis points this year per your call? antoine: not very good. the risk of a hard landing is growing, unfortunately.

as the first republic contagion seems over, we are in the second inning of the credit crunch crisis and that is not going away. dani: the economy will look like dire straits, what does the fed do with qt? they can't be tightening and easing at the same time. antoine: they would like us to think they can continue qt in the background, but the pressure on them to stop quantitative tightening will be tre mendous. the debt ceiling issue may be solved into the treasury may be issuing. for liquidity watchers, this would agree damaging -- be damaging for sentiment. dani: does the fed slow down the qt pace in advance of this? antoine: i think of it like rate

cuts, they will await until the last minute, until the pressure is so great they have to stop. dani: while we have you, we have to talk about the boj. i'm sad you are not joining us tomorrow for it. there have been japanese life insurers that are expecting a ycc tweak, by tomorrow at the earliest, some of them are buying long bonds in anticipation, what is the likelihood of a tweak? antoine: not very high, the bank of japan on and off the record has been briefing aggressively that there won't be any move in april. they cannot preannounced these moves, but we think june is the more likely day. we think they will move the cap from the 10-year point to the five-year point, which is a way of saying they're removing all caps, because five is in the middle of 50 basis points anyway. dani: that's a good point, last

time they widened the band. we are in this environment where yields have come down globally. does that mean the market reaction to any tweak to ycc will be limited this time around? antoine: it probably won't be much of a surprise, but heavily brief that they won't change ycc. it would be a surprise. in 2024, 1 percent on jgb yield is a possibility. there is quite a lot of room for this to rise. dani: there is also an argument of what is the rush? there is less concern in the japanese bond market, why do anything? antoine: ueda just came in as governor. he wants to see if inflation is durable. he wants to see if wage increases will continue in the future. they have this

once-in-a-lifetime opportunity to get out of deflation, they don't want to preempt that too early. waiting until june make sense for the bank of japan. dani: let's do a round trip around the world. for the ecb, you are seeing 10-year treasury and determine yields converge, what gets us there? is that the ecb hiking aggressively, or the fed cutting? antoine: the biggest driver will be the fed cutting. or the market anticipating these cuts. they will price that well in advance and have in fact price that a lot of already. dani: i was so excited, i spilled my water. antoine: on the other hand, the ecb is not in a position to contemplate cutting rates. service inflation keeps rising, the european central bank will need to keep this 50 basis point hike on the table. dani: we will have to wrap it up there. i'm so glad the camera was on

you, for those who saw me scream, it is because i just spilled my water. antoine, always a pleasure to have you on, keeping calm as i spill my drink over here. antoine bouvet, senior rates strategist at ing bank. plenty more to come on bloomberg. ♪

dani: let's get your first word news with sam etienne. >> u.s. house passed a debt limit will aimed at averting a catastrophic u.s. default. the vote puts pressure on president biden who opposes this weeping spending cuts to open talks with republican leaders. the bill passed by 217-215 but has no chance of clearing the democrat-controlled senate.

xi jinping has spoken with zelenskyy for the first time since russia's invasion began. the call suggests there were no major breakthroughs, though president zelenskyy's office said the hour-long conversation was productive. xi told zelenskyy negotiations were the only way out of the crisis. the turkish president erdogan has canceled a day of campaign appearances after falling ill during a live tv interview. erdogan is facing his toughest election in 20 years, with a opposition parties joining forces to unseat him. that's global news powered by more than 2700 journalists and analysts in more than 120 countries. i am samuel etienne, this is bloomberg. dani: sam here in london.

i want to give you a quick check on bitcoin, it had quite the run this morning, at one point, trading at $30,000, it is lower than that but it is up more than 2.5%. there has been commentary that order books are thin, liquidity hasn't been great in bitcoin, so perhaps a bit more volatility. just a few trades can send it higher. deutsche bank this is first call -- misses first quarter fic estimates. don't miss our i hi, i'm lauren, i lost 67 pounds in 12 months on golo. golo and the release has been phenomenal in my life. it's all natural. it's not something that gives you the jitters. it makes you go through your days with energy, and you're not tired anymore, and your anxiety, everything is gone. it's definitely worth trying. it is an amazing product.

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your agenda. meta surges post-market as ad sales top estimates. amazon reports today. sentiment roiled, first republic's slump deepens as the troubled bank could face fed borrowing curbs. concerns about regional lenders drive the s&p 500 lower for a second straight day. house republicans passed speaker mccarthy's debt limit bill, escalating the standoff with president biden over averting u.s. debt default. deutsche bank reporting half an hour ago first quarter revenue in fic at 2.36 billion euros, that is a miss on the average analyst estimate, that is a disappointment considering its u.s. peers beat on fic. it expects to begin buying back shares in the second half of this year. this is something it had scrapped earlier in the year, so

this is something investors had been looking forward to. one of the other things deutsche bank has been able to do strongly, is the fact that they have been cutting costs. they announced savings of 500 million euros so far this quarter. they are slowing down the pace of hiring. that means there cost-cutting goal it has increased to 2.5 billion euros, it was 2.1. that is where they are trying to tighten the screws. we spoke to the cfo moments ago, our anchor manus cranny did, take a listen. >> let me take you back to february 2, where we announced the decision not to pursue a repurchase in the early part of the year. we think that was prudent given that the we were cautious about the outlook for 2023, and we had some model changes that were

coming. today, what has changed? we think the outlook is a little more clear. we have gone through some turbulence, but we can say the way forward. our step off from a capital ratio is better than anticipated. we have more is visibility into the model outcomes coming down the pipe. we have confidence to move forward as a management team. we have engaged in dialogue with our supervisors and intend to move forward in the second half with a buyback. manus: credit suisse imploded, ubs is on a technical pause, do you have cover to be cautious? >> we made the right decisions at the time. we will not be definitive about timing and amount. but our goal is to frankly execute on the capital plan we shared with investors last march, and to do so as quickly and critically as possible. manus: you have upped the cost

cuts to 2.5, how fast will they be delivered and what does it mean for jobs? >> today we're announcing a reduction in our senior management layers, a streamlining of our mortgage platform. we're taking management changes to concentrate the ownership of the cost base. essentially executing the plans we have and going further into the cost base. we started to talk about that in february. the management team will always work on the cost base to deliver better outcomes for shareholders where we can. dani: march will be as shown our mind as a month in which volatility in banking was quite frightening. credit suisse imploded, you have upped your liquidity buffers, what is the biggest consequence of credit suisse? do you need to build a look to

be buffer -- liquidity buffer as a result of that one-day attack? >> we need to communicate more clearly what the liquidity buffers mean, and how liquid the banks are, especially the globally systemically important banks. our capital and liquidity ratios improved during the quarter, which speaks to the resilience of our balance sheet. and the tools we have built to manage these things over the years. but i don't think there are actually changes needed in the regime we operate within. what we need to do is help our counterparties, clients, understand how conservative the stress scenarios are that we manage the balance sheet to. manus: switzerland has a mega bank, credit suisse and ubs. does germany need a mega bank? >> germany has a leading

globally systemically important bank with a set of capabilities unique to our market, and that we can execute as a strategy supporting our economy. manus: will there be pressure to look for a deal to grow in size? or will you not be hurried or harried? >> there are benefits of scale in our business. we have been consistent about that future of our strategic landscape. we have also been consistent about talking our strategy, execution, and making deutsche bank the best it can be, which prepares it to be a participant in consolidation over time. manus: that two weeks of sheer angst around curtis we -- curtis we saw major movements of deposit in the banking system. was there a exodus of deposits around the credit suisse time,

or was it flicking into money market funds? >> there were a lot of movements going on in the quarter in deposits, much of which we see as a normalization of deposit balances in the industry relative to high balances at the end of last year. central banks are training with eddie from the market district -- draining liquidity from the market. we had a for percent reduction in deposits during the quarter from a relatively high level, frankly in line with the market as we see it so far. dani: deutsche bank cfo james von moltke speaking to our own manus cranny. he ended saying deposits fell 4%, it is clear that all banks are feeling the tightening from not necessarily the concern about buffers, but the higher rates they can get from money

market funds. we have seen a big flow there. von moltke did say they had improved capital and liquidity ratios during the water -- quarter, but the market doesn't necessarily understand those buffers. trying to communicate how conservatively capitalized deutsche bank is, and saying the lender needs to communicate that more clearly. i believe we have manus cranny himself running over from deutsche bank hq to bloomberg in frankfurt. hot off your interview with von moltke, what were your takeaways? manus: the reason we were delayed as we expanded the conversation around deposit flows. i want to get some clarity around this. 27 billion went out the door over the space of the quarter, but when i pressed von moltke for the second time around this, he said there was a material

shift at the end of march. two thirds of that outflow, this is critically important, is to do with normalization. about a third was to do with the discombobulated and -- discombobulation with credit suisse. he said we have steadied in terms of deposits. this was an extended part of the conversation, because it is important to get clarity. the net flows into asset management on the private bank side of 12 million euros, he will not admit that came from credit suisse, but there was an undertone that that was part of the flow show. that was a heck of a run from deutsche bank to bloomberg headquarters, that is the fastest i have moved in about 12 years. dani: you can probably skip the

gym today. you got your cardio in. in your other interviews this week, you have talked about where are the flows going? they have left credit suisse and gone elsewhere, you also asked about this idea of does germany need a bigger bank? we are looking at a much bigger bank in switzerland, why not germany? does it seem like it as part of their plan? they are trying to cut costs, what did the future look like in von moltke's eyes? >> you have sat down with him before. he is a smooth operator as a cfo. does size matter? the deputy finance minister sat down with oliver crook a few weeks ago, he was not that bothered. von moltke said that there were good reasons for size, but that was not reason enough to push deutsche bank to go on an acquisition trail.

they have upped the cost cut guidance to 2.5 billion, that is clearly top of their agenda, with shuffling at the top and downsizing shall i say those meatier parts of the upper echelons. this is about coming more and aggressively. when it comes to the future of deutsche bank, i put it to von moltke, that this was peak nims, peak turnaround, he decried against that, but we continue the conversation in regards to rates. his view was that we will endure a higher for longer regime than perhaps the market had anticipated. that is the rates narrative. we have an ecb meeting next week as you know, the consensus seems to be building around 25 basis points of a hike. i put it to you, the risk to

deutsche bank, and europe, it is a policy mistake a.k.a. 2011. dani: certainly, if the peak for nimms, i can't imagine that this fic miss will go over so well. the u.s. did well when it came to trading. ubs had a solid quarter when it came to trading. here we have deutsche bank missing on a key component of earnings. manus: it has been the core driver. the alpha of deutsche bank, if you let me use that word, is within fic, fixed income currency. to a certain extent, that has gone on adrift for two quarters. vol collapsed at certain periods during the first quarter, we talked about whether it was a good indicator or not, but rates

volatility has dropped, that knocked the numbers. we didn't quite get around to who are you hiring? and people are saying to me, they are hiring in rates and credit, and people are saying that is overstating the case, they are being idiosyncratic, not beefing up that part of the business, but it is a core part of the bank. are your private bankers knocking on the doors of everybody in europe and there was a wry smile, this is one of those once-in-a-lifetime opportunities for wealth managers and bankers around europe. dani: fantastic interview, fantastic 50-meter dash as well from deutsche bank to bloomberg. that's bloomberg's manus cranny in frankfurt with that fantastic interview with deutsche bank cfo james von moltke. we will have more earnings to come for banks, we will have an exclusive interview with the

barclays ceo this morning at 8:30 a.m. u.k. time. let's get the bloomberg business flash. >> u.s. regulators are weighing the prospect of downgrading their private assessments of first republic bank. the fbi see is considering the move as the bank struggles to reach a deal to shore up its finances. it could limit first republic's access to the fed's discount window. britain's biggest lobby group, cbi, will be renamed after weeks of allegations of serious sexual misconduct and bullying. the new boss of the confederation of british industry said the rebranding would be necessary as part of a root and branch reform of the organization. 50 copies have cut ties with cbi during the scandal. vodafone shares surged in london

after talks were revived on a sale deal with iliad. they started with discussions after the owner of iliad bought a state of vodafone in september. dani: coming up, meta surges pose market as sales top estimates. we will discuss what it means for the company and the tech space. this is bloomberg. ♪

>> there is an opportunity to increase ai uses to billions of

people. it has been an amazing year of progress. the work happening now will impact every single one of our apps and services. dani: mark zuckerberg on the company's ambitions. who i am sure was wearing a suit and a bow tie for the company earnings also. the meta digital ad sales rebound is buying the company time to pour money into speculative businesses like ai and virtual reality. you heard him commenting on ai ambitions. let's bring in the lead equity analyst at hargreaves lansdowne. it feels like a contradiction when you have zuckerberg talking about cost cuts, yet spending on ai. this seems to be a theme among tech companies, the market is rewarding it, but should they be? sophie: good morning. yes, this is the major contradiction at the moment.

what i've been saying a lot with recent earnings, is it is really difficult to cut your way to growth. that is exactly what meta is trying to do, as you say, these cost-cutting efforts are enormous. but at the same time they are saying don't worry, we are stoking long-term growth, that is coming in the form of ai and the metaverse. we know the market has gotten carried away by these fads. if everything goes right and we get solid plans about what this will actually mean, and the cost for meta, that market reaction may well be warranted. but i am nervous that the market is hearing ai, and getting overly excited. we know what happens with frothy reactions, they can be undone at short notice. dani: there was a period of time when every company was talking

about incorporating the blockchain. that feels like a repeat of this, or the cloud, or something like this. we see this repeat over and over with tech companies. how do you separate what is fundamentally a strong growth story around ai versus just froth? sophie: this is obviously a difficult ask at the moment because everybody is providing some kind of commentary on it. there is a great deal of noise. a lot of it comes down to looking at which part of the cloud ecosystem companies are trying to get involved with. for example, if you look at aws, they are more exposed to the hardware and infrastructure side of things. microsoft has a lot of apps that are already using cloud-based systems. whereas you bring it down to meta's ambitions, don't get me

wrong, there is a lot of potential for crossover, but the plans are woolier. when a company is shouting about their results on ai, i strip it back to the basics, look at their business, what current existing products are there where you have got easy implementation and easy cross-selling opportunities? that is the big one because when you are starting from a lower based on that front, it gets more opaque about how monetization will come through. dani: in terms of other nuts and bolts in finances, you mentioned how this will impact spending. if you look at microsoft with chatgpt, this requires really serious computing power that presumably is very expensive, how are you looking at this through a profitability lens? sophie: the cost associated with

cloud, it is quite hard to actually fathom. that's why there is such a small number of companies that can realistically afford a see that this table. there are two ways i would slice it, one is from a viability perspective. from that i will look at the balance sheet. microsoft is looking at about $56 billion in cash right now. alphabet is about $100 billion. they have the resources to throw money at this. that is not what the market wants ultimately, they want profit. what i really look at is that scalability, once again. for example, alphabet just posted profit in the cloud division for the first time, that has come from a rapid ramp-up in revenue and they built that scale successfully, so it comes down to per unit cost relationships.

what i will need to see is rapid growth, so that i trust that infrastructure base has enough units running through it to give it positive margin. that is not an easy task because we look at this huge market, competition is going to be quite fierce i would say. those dynamics don't always lend themselves to the scalability building quickly enough. dani: sophie, i want to ask about the shocker of a no deal between microsoft and activision. we are showing a quote from our opinion columnist who says no microsoft deal please, we're british, running that the u.s. block on the acquisition of activision is the starkest reminder get that britain is ready to see flaws in dealmaking that other regimes might be able

to deal with. the message boss is contemplating bold m&a will become think again. what do you think of the fact that the u.k.'s cma is blocking this deal? sophie: we always have regulatory risk. for a deal of this size it is going to be very high. on that front, it is not a complete surprise to see the cma say actually, we have concerns. for sheer size of activision's ip means the risk is high. on the other side, it is disappointing to see something like this, the rhetoric of london is a safe haven for ambitious companies has been going backwards. seeing this kind of ruling come through does very little to help that perception. of course, the authorities need

to get the right balance between keeping things fair, and making the right rulings, but also you don't want to also risk pulling more growth out of what is already a difficult region. dani: really great to get your thoughts this morning, sophie lund-yates, lead equity analyst at hargreaves lansdowne. oil is steady today, but makes a round-trip from where we saw gains post opec+ cut. more on that next. this is bloomberg. ♪

dani: oil is trading around $75 a barrel, making a round-trip since the opec+ decision to cut production. let's bring in our oil reporter in singapore. one of the main drivers pulling oil back down? >> it is a flight with prices

going back to where they were before the cut. there are macro fears of slowdown, that is striking future -- dragging futures lower. that is showing up in weaker refining margins, the prophets refineries made from processing crude oil. those have come off in recent weeks and that is all flagging lower demand. dani: how is opec likely to react? >> again, we have always seen opec respond when prices come off. they only just responded recently, so we are going to wait and see from them. moving forward, what are prices going to do? there are signs prices could tighten again with air travel picking up in china over the holiday weekend. we will have to wait to see what prices do. dani: quickly, i want to mention

carlsberg, the full year outlook estimate was 4.5%, they go from a drop to growth of 5%. first quarter revenue did beat, but a wide range that indicates uncertainty for the full year. in other earnings news, barclays will report in a few minutes. don't miss our exclusive interview with the ceo at 8:30 a.m. london time. this is bloomberg. ♪

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>> good morning, welcome to bloomberg markets europe. i'm anna edwards live in london. mark cudmore joins us fr