conversation continues with james bevan, next. bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets." matt miller here in berlin. guy johnson with is in london. let's check in on the markets right now. green arrows across the board. futures indicated little to no direction, and now we see a direction, especially there in london with the ftse up .6%, i am going to go ahead and guess that the pound is down a little bit against the u.s. dollar. that is typically the way it is set up. my, how do you see the currency trade right now? guy: the currency trade is interesting. you also have a bunch of other things happening with the london market. hsbc is a real driver, and heavyweight in terms of its performance. it is very much on the front foot this morning, but 3%. as the mining and oil stocks on the front foot as well, is what we've just been discussing at the beginning of the 8:00 hour talking about the very strong performance overnight as well, some of the metals, iron ore in copper driving ford. let's focus for a different direc

james barty from merrill lynch, james bevan from ccla investment management. really do, james, underscore the dilemma facing boe policymakers. >> if you look at the employment numbers, perhaps the bank of england should be raising rates. you look at the wage inflation numbers and say, if you've only got 2%, the bank of england is not exceeding its inflation target over the medium term. jobless claims have not been up for a few months in a row. the rate of growth is slow. can the strength of those employment gains be sustained going forward? to my mind, ben broadbent is right. the bank of england should be forward-looking. the rise in inflation is squeezing real wages, slowing the economy down, and as long as wage inflation doesn't pick up, the bank of england will be hitting their target. ork: are you a broadbentite are you going to go for the hawks? >> i think you can make a very good case why we need a rate hike relatively early. ,here is a broad expectation somehow the consumer benefits. the consumer is still paying 6% or 7% to borrow money. a very signific

joining us is james bevan, chief investment officer at ccla investment management.s pick up talking about us gdp. we had that 1. 496 up talking about us gdp. we had that 1. 4% figure for the first three months. president trump and his advisors hoping for 3% for the second three months of the year. we have had strong data, some strong corporate earnings out, do you think they might do it? absolutely not. it's great to hope but that is not a number that i can get to. i think if you stretch all the numbers and say let's be optimistic, you could say we get to 2. 9 but actually if you think about the lower case numbers we have also seen, could be as low as 2. we have also seen, could be as low as2.2 we have also seen, could be as low as 2. 2 buti we have also seen, could be as low as 2. 2 but i don't think we are going to see three. the run rate for the us economy is much lower and i think this is going to be a year that looks like 2014, 2015, 2016, no real change, bad luck, mrtrump. some analysts saying that number was achievable at the height of the tech bubble. absolu

let's get detailed analysis of that with our markets guest today, james bevan — he's chief investmenteal and excellent coverage. they are ina deal and excellent coverage. they are in a sense in their eyes being punished. the smaller players are saying, well, actually, you don't give us enough market shares of cannot afford to invest. we have to have more infrastructure, so 0fcom is going to have to find a very careful way through this minefield. let's get on to pearson. shares initially rose when they said they we re initially rose when they said they were selling their stake but by the end of the day, it looked like they we re end of the day, it looked like they were going into negative territory, why is that? we started off by getting the news they were going to getting the news they were going to get about $1 billion, but of course, they are giving up about £60 million of profit so it is not a fabulous deal, it is a better deal because they are making their business cleaner and more obvious and that will do well in the long run, but it is not a one—way ticket by any means in terms