anna edwards is at westminster. why? anna: she has called a vote in parliament because she needs to in the housee mp's of commons to back her on her plan to bring a general election on june 8. the reason for that is we had a parliament act introduced after the 2010 general election which was to stop prime minister's from calling elections when they wanted to. but she sees this as a good opportunity, given her polling. that is what she has decided to do, and it looks like she will be successful in getting the labour party and others to back her in this motion. one of the parties that will back her, probably, is the liberal democrats. they have said they are up for the fight. we are joined by a liberal democrat mp right now, alyssa carmichael. -- alastair carmichael. the liberal democrats saying they are excited by this fight. alastair: the had a difficult election in 2015, coming out of coalition. since the vote in june last year, you have seen our party sinceship has doubled, the last election. we are winning council by e

nejra: that was scotland's first minister nicola sturgeon speaking with bloomberg's anna edwards.nie: thanks, narrow. it is time for business flash. biggest business stories in the news right now. march turned out to be a weak months for automakers. more posted u.s. sales than forecast. sales were also down. general motors, meanwhile, sales were up 1.6%. gm.ch larger increase for kaiser is considering a sale of business to pay for its acquisition of baby formula maker mean johnson. french's mustard and ketchup. that is your bloomberg business flash. still ahead, if marine le pen's business plans to embrace her anti-euro stance, mario and -- mario draghi will likely be called on again to be the savior of the currency. and he do it? this is bloomberg. ♪ [ engine revs ] [ screams ] [ shouting ] brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] [ [ screams ] ] [ shouting ] brace yourself! this is crazy! [ tires screeching ] whoo! boom baby! rated pg-13. [ screams ] vonnie: live from bloomberg world headquarters in new york and london, i am v

myself and anna edwards in the next hour.getting ready to leave the house and you have a digital radio in your car, tune to bloomberg and check us out. tv is one way you can use -- is one to will you can use on the bloomberg to talk to us. you can send questions to manus and i or talk to our guest. to hear ahe panel live stream of what we are talking about. at the bottom of the screen, you will find a blue link in order to ask questions of the guest, be part of the conversation, and get involved in what is going on here at bloomberg. turkey tensions after the president's narrow referendum win grants him greater power. we will hear from the deputy prime minister about the chances for early elections. this is bloomberg. ♪ a.m. in the city of london. we have some stocks to watch. why is pandora under pressure? nejra: i did find out, and i have to tell you, that the word of the day is "rerating." month risen the most this . pandora, on the other hand, worst performer on the stoxx 600. down 7.8%. lowest since august 2015. it

i am anna edwards. matt: i am matt miller in berlin. a lot going on this morning. markets will be very interesting as they open and into monday morning after we have these french elections. anna: absolutely. we need to talk about the french policy story and what we heard from the u.s. yesterday, also from governor kuroda at the bank of japan. let's put all of that in the mix right off the top for this morning. i have a chart of the s&p 500, making steady gains, but getting a boost because of what we heard from the treasury secretary around taxation. this has been carried into the asian session. the u.s. of ministration is aiming to complete the biggest overhaul since reagan by the year end, even if the second attempt to reform obamacare, even if that fails. this seemed to capture the imagination of investors yesterday. investors say he is worried about the high levels of the s&p. he draws our attention to the ratio between market cap and gdp that is.s. and suggests stressed. markets liked what they heard from the u.s. yesterday. matt: let's take a look at the yen ri

anna: i am anna edwards in london.look at where the futures open up on european equity markets. it looks as if we will be positive at the start of the european trading day. around .1 of 1%. we have a lot of focus on the geopolitics along -- around this missile launch from north korea. what does it do to the scene the president trump and president she -- xi meeting. but have a look at some of the other assets. i have my risk radar up right now and oil is at the top upside forsk to the brant as it passes through the top level of the belligerent and. we will get department of numbers out of the u.s. today. that could be more important than any technical indicators that you can throughout this. watch brent crude, watched of uti as well -- wti as well. gold coming off a little bit but it has been doing fairly well at 1255 a troy ounce. i'm concerned about what is going on globally especially in south africa. speaking of south africa, take a look at the rand. it has leveled off, it has been in a bit of a freefall. the worst

first: the scottish minister speaking to anna edwards.'s get you up to speed with some of the more recent developments. the world's tallest building, we understand from the dubai media a 360 story is tower complex expected to be open by april, 2018. there has been an ongoing issue. you think back to the fire that hit not far from this address. new year's eve, 2016. brainy celebrations to a grinding halt. fire wouldve thought have been resolved, but clearly there is work to be done. we don't know of there are casualties or injuries. constructione at a site quite recently as well. speaking of properties, we are going to be discussing property, coming up later in the show. yousef: we will continue the conversation. we will look at expo 2020 and some of the real estate plays around. we will be speaking to the regional ceo. we will stay close to this story, the fire in downtown dubai. this is bloomberg. yousef: you are watching bloomberg markets middle east. tracy: i am tracy alloway. yousef: let's get a reality check on the real estate market

anna edwards joins us from bloomberg europe.a genetic night. -- dramatic nice. >> politics is the story. in parise live throughout our programming today to bring you the latest reaction to the election results. manual macron goes up against -- emmanuel macron goes up against marine le pen. we will all be focusing on that. emmanuel macron now a political independent against the national front marine le pen. and manual macron is said to be winning -- emmanuel macron is said to be winning in polling. this is very significant is what marine le pen stands for. no republicans and socialists making through to the second half of the first time in contemporary french history. >> what have we got here as well? and one day is this election in the u.k. >> it seems as if the conservative party increasing the gap against their rivals. it looks as if the vote in early june could be the conservative party set to lose. the latest polling suggests they have more than 20 points lead. conservatives are looking to broaden support. we heard a lot of

. >> let's head to london and see what is coming up with anna edwards.atching credit suisse? >> good to see you. much in thee very focus for the banking center this morning. on friday, confirmation about investigations taking place. yesterday, they thought back in newspapers. they repeated their zero-tolerance approach. they also sent out a seven point response to the various probes taking place saying that they terminated relationships with clients who do not prove they pay their taxes. credit suisse wanting to fight this to some extent. that they we heard are facing a money laundering and tax evasion investigation spanning five countries that could involve thousands of account holders, at a time when people if another capital raising would be issued by the company. we continue to watch this story and work out where it is headed next. nothing would be complete without talking about elections. the latest on the french election, a new risk? >> political risk in future of the european electoral calendar. we are focusing on the french election because there

let's head to anna edwards in london.h change expected but we are still focusing on what mario draghi say.

speaking to bloomberg anna edwards, sturgeon maintains that any resistance or delay from the u.k.nment is untenable and that the scots have a right to create their own destiny. >> scotland is a great place to do business. we did not choose to be in the position of the u.k. leaving the european union. it is important in light of that that scotland works harder to say to companies around the world that we are open for business and a great place to do business. a leading american tech company is already based here in doing cutting-edge work and investing in expanding. that is a great vote of confidence in scotland. to america, my purpose is to encourage more american businesses look to forland for investment and scottish businesses to look for investment opportunities in american markets. >> some may say the investment case is more uncertain than the rest of the u.k.. you might or might not be in the eu water u.k. or using the pound. so many uncertainties. remainland wants to within europe's of the we can remain within the single market and be able to trade. of course, as i stand her

i'm anna edwards. manus: i'm manus cranny. anna: lots of earnings coming through, keeping and i'll the transatlantic m&a. we have sap numbers coming through, reiterating the 2017 forecast and giving us a host of numbers. q1 revenue beating estimates, that is one of the headlines. it's coming in at 5.2 9 billion euros against an estimate of 5.16 billion. it does seem as if that is where we got the sap story. jousting with longtime rival in thecore, this is context of the software says it ishe company being run in their data center and cloud computing software delivered online, for all those different products on different platforms. oracle reported a big jump and that competition is key. watch out for software license sales, that is what the big factor is, and the prophets number is 1.2 billion against an 1.20 3e of one point 2 billion. in novartis, they're looking at $1.11. they have been spending money on their hard drugs, so marketing costs have been core. they confirm the 2017 outlook which should be low single-digit growth

i'm anna edwards. manus: i'm manus cranny. is this a warning sign? this isre so passe, but the relationship between auto sales of the united states of america and the s&p 500, and they are virtually lockstep. but that relationship looks as if it could be just beginning to turn. should we get alarmed at the fact that auto sales have dropped, and still the s&p 500 careers higher? car sales slumped to the lowest level in two years. if you believe it will close the gap, one of them is going to aove, and that could mean 10% drawdown. is it a warning shot? anna: does the s&p fall, did car sales bounce? is that something in the past, and other other indicators? is the sector not offering what they want to buy? let's have a look at the radar risk. this is something that was a feature of the trading day. in particular in japan, some of the auto sectors were week. weakness in the u.s. auto sales, strengthen the yen, the has an impact. asia-pacific down. manus: when you look at dollar-yen, is yen strength sustainable? morgan stanley says no. they say a global r

let's cross over to anna edwards in london and see what is coming up in europe. looking this morning. you mentioned the story before the break. of alitalia footage against the cuts. without the cost cuts, they cannot do the revitalization. this pushes them towards think rub see, the second time into administration into a decade. the big shareholder in your part inthe world has bought back 2014, 20 9% stake in this business. the government says it will not re-nationalize this carrier. we are looking at the numbers that express thinking is due to report numbers at any moment this morning. first-quarter numbers for this business has been turning away from investment banking. my close friend with data on this morning. yousef: i will pick it up from here. that is it for this addition of "bloomberg markets: middle east." all of the top stories at the top of the hour. this is bloomberg. ♪ anna: markets roller. nasdaq surged past 6000 for the first time yesterday. manus: credit suisse due to report first-quarter earnings this morning. will speak with the bank's top execu

underlying fact i'm in the united states next week david: nicola sturgeon spoke to my colleague anna edwards is bloomberg. ♪ david: this is bloomberg markets, trump's first 100 days, policy under the new administration. recapping breaking news on doug gorsuch, democrats have the votes to block the nomination. you can watch wide -- life proceedings of the senate judiciary at tv on the bloomberg. start with first word news. mark: president trump has welcomed egyptian president abdel fattah el-sisi to the white house, reaffirming what the president calls, a very long and strong relationship. he likes them, since their last meeting during the presidential campaign and says the two countries will work together to combat terrorism. in iraq, jared kushner is getting a firsthand look at the situation. he is also there to show support for the iraqi government. kushner is visiting the country with the chairman of the joint .hiefs of staff gibraltar has now become an issue in the brexit negotiations. brish foreign secretary boris johnson says, only the territory's resident and british citizens can

i'm anna edwards. miller in matt berlin. na: matt, we will start with the market reaction to the u.s. missile strike in syria. investors caught off guard, reflected in the gold price and and the oil price on the screen. investors caught off guard. haven assets getting a boost. interesting the way that the japanese yen trend -- trade unwinding a little bit. asian equities managing to get back into positive territory. and u.s. futures are negative, but only by about a quarter of a percent. matt: interesting, because the moves are pronounced and the chart is important to look at. you can see when the event unfolded. the moves are not strong. this morning, i instantly looked at the yen, it was 1.10 yesterday. this is the biggest move we have seen sense basically yesterday -- since basically yesterday. treasury was the same thing. not a big drop in the treasury yields. we have seen moves this big this week as well. and all of the asset classes, oil and gold as well, you do not see the big moves. they are pronounced on the screen a

i'm anna edwards. in we will get a chart a moment but were waiting to bring some earnings for you. anna: we've got numbers from santander coming for you. ahead of the forecast of 1.73. in terms of the full in loaded ratios, the aim is to list the ratio above 11% by 2018. .ad loans ratio at 3.74% a host of updates coming through come most of which are doing better than expected. political stability in brazil was one of the expectations going into this. it got a boost from the strengthening reality in the -- of the strengthening rial, talking about improving performance in the banks 10 main markets. they plan to raise the dividend. we will speak to santander later this morning, the cfo will join at 7:20 u.k. time. manus: big news from credit suisse, the decision was whether to go for more capital. a 4 billion swiss franc rights issue, the proposition was around 3 billion after the market but they might get swiss business. they decide to raise capital, go to the market in raise 4 billion swiss franc. , an

anna edwards.my next guest was one of the more than half of conservative mp's who back to remain vote in the u.k. last summer, during the debate on triggering article 50 he said he was sick and tired of being told that holding the government to account amounts to trying to block brexit. the former culture minister in the u.k. government, welcome to the show. thanks so much for joining us. obviously, the outcome, the fact that we are going into brexit is not what you wanted, but what do you make of the letter that theresa may sent to the e.u. and the way negotiations have begun? >> i think it is very early days. it is a two-year process but i have argued it will take much longer. i'm not sure i agree there will be a hard stop in march 2019. i think the letter is a fine opening gambit but this is a very fluid situation. there are so many moving parts that we have to discuss. i think it is impossible to say what is going to be the first issue. are couple ofere points to emerge and i think it is quite

i'm anna edwards. matt miller here in berlin. na: let's start by talking about what we saw in u.s. equity markets yesterday, partly because of what the fed said about equity prices. i have a chart here, a valuation of the s&p versus various global equities. think it about what the fed said, they said levels look high relative to standard valuation measures. putting it in the context of global equities, the s&p over to 2008,is going back not a benchmark people want to revisit too often. if the u.s. is 11% more expensive than the rest of the world, can it be explained away rationally? concerns about what the fed said about the balance sheet and what it does to the rest of that policy, driving things in the u.s. yesterday and the asian session as well. about the u.s., not just because of what the fed is up to or the ecb, not because of central-bank policy but because of what's going on between president xi and donald trump. take a look at the asset classes most likely to move. you have the s&p after that wild up .8% and down .3% on t

nicola sturgeon spoke to anna edwards. >> scotland should have a choice over our future. when the time is right, when the terms of the exit from the e.u. are known. is --en it [indiscernible] the prime minister is very clear that the timing is to conclude those agreements by the autumn of next year through to the spring of 2019. that seems to me the appropriate moment for scotland to have the choice over our own future and we will seek to pursue those discussions in a constructive way. this is about scotland not having a future imposed upon us but choosing that future direction so that we can remain that open, welcoming country that is not just in line with our values as a nation, but so important to the prosperity of our economy. anna: prime minister may has suggested you won't get that date. decision just another? >> that is for the prime minister to answer that. i don't speak for her. the scottish parliament which represents the people of scotland as voted on this matter and has voted to endorse the timetable i've set out. i don't think the position of the prime minist

. ♪ anna: welcome everybody, this is "bloomberg daybreak" in the city of london. i am edwards.anus: i am manus cranny. breaking news, we have felt. phillips is hitting the take coffers quarter revenue 5.7 billion euros. it -- pencilpencil and 5.69. that is progress in line. -- 442.sted that is the everest. they canity, they say flow 412 respectively. the abundance coming in ahead of the two estimates. first quarter comparable sales rose by 3%. euros, we are waiting to see if there is any, at all from the defibrillator issue going back to 2015. that is one of the things that the ceo can give us a little bit more light on when we talked to him. we are going to have a conversation with phyllis, we will speak to the ceo and the programming.r in we will, of course, have those subjects at 6:30 a.m.. the outlook remains unchanged. three point one 7 billion u.s. dollars. an update on the big m&a deal with china. they look forward to closing the transaction in may 2017. that is narrowing down the window where they expect to see. now they are saying made for a 17. april 12 they have chin

on anna edwards. manus: we have a feast of breaking news for you. headline on airbus first of all. adjustedst quarter ebit against an estimate of 326 million. they're confirming the forecasts and giving numbers for orders in revenue as well. they've been facing some production glitches that's been afflicting them with the newest in their high-margin jets facing some of the problems. they have suffered problems because of shortages from suppliers. two suppliers both said they were addressing the issues but perhaps it's something that's giving the company policy for thought this morning. that's one of the companies were covering, airbus saying adjusted free cash flow has come in at 1.6 billion euros. manus: let's talk about the world biggest cancer drug maker, roche. the company confirmed its full-year -- there were talking about 2017 as being low mid single-digit growth and they been hoping to raise the dividend. ,irst-quarter sales is a beat 2.70 7 billion. the big issue is that they have a trilogy of drugs that are all coming on pace by 2020. that'

anna: i am anna edwards in westminster. we need to keep an i on the u.k. political story.ll try to two thirds of the mps in the house of commons to back her with plans for a general election on june 8. elements -- she needs parliament's action to do that. we need to get to some breaking news. manus: we absolutely do. this is about the state of the consumer in europe and they are buying and buying cars at a record level. levelrose 11% to a record for march. we are looking at this, a rise of 11%. sales were at a nine-year high and lower unemployment is boring confidence. -- buoying confidence. 8.4% gain in the u.k. and car sales, registration, 1.9 4 million vehicles. we have a shift in april, renault is gaining. france and 7%, italy up 18%. vw losing market share, 1.4. pew show and their market share drops of brown. and chrysler. 6.8% from 6.2%. anna: let's go to a bee foods, this is also a retail story with a different flavor. not just all about primark but also about the sugar sector. we have numbers coming through and they expect good growth in full-year adjusted operatin

we had a guest this morning with anna edwards talking about the potential for rates in south africa goingon the back of an additional downgrade to jump from another ratings agency. the real yield in the game is around -- yen. guy: let's return to what is happening with european equities right now. by the getting softer naked its being over here on the left-hand side of your screen. this is where the weight is. netflix softening up. we did see right -- money rotating out of the banks. some of the more safe haven , both seeing money rotating out this morning. old mutual continues to come under pressure given it south africa links. in terms of gainers, oil stocks are welded -- well bid. all trading higher this morning. matt: debate night in france. candidates,s 11 including front runners marine taken and emmanuel macron part in the second televised debate at 8:40 central european time. most polls have marine le pen and emmanuel macron that connect in the first round of voting. steen, it is incredible to see the blowout in spreads between the french and german debt in the last election. we co

anna: i am anna edwards still here in london. it has gone 7:00 a.m. in london, 8:00 a.m. in berlin.man data breaking. have the ppi numbers. we were talking with our previous guest about this, coming in lower than expected. month over the month ever was 0.0 comparing to a survey and a prior reading of 0.2. the year-over-year number which is the headline that people will look at more closely, 3.1%, that compares to the same reading last time, 3.1 and a little bit less than the survey at 3.2. german ppi over the last five years and it is incredible to see the takeoff we have experienced since the middle of 2016. tom keene might call this parabolic. has gone parabolic. anna: let's talk about breaking news. unilever reporting numbers and after fending off a takeover, that was made public in february. they are delivering what they can from this is this. they are delivering against estimates. quarter underlying sales growth has come in at 2.9%. that is reversing the estimate. that looks to be better than was estimated. the underlying volume down and an estimate was for that to drop further

anna edwards did speak to jes staley earlier about the results.ry order last year, so on a quarter to quarter comparison, we did not have the uptick that a number of the u.s. banks did, but in part, that was because we had a strong first quarter of 2016. we always want to do better in the markets business, but we are comfortable how we came out and the overall profitability of the corporate and investment banking is making good improvements, and i think we feel pretty good about the quarter. nejra: those are the bank earnings. guide. guy: we are going to carry on the conversation. she highlighted some of the key socks we are watching. the banking sector front and center for european equity markets. equity markets are not going anywhere in a hurry. we are waiting for gdp data, particularly out of the united states. today is the final trading day. remember as well it is 100 days tomorrow of the trump presidency. there is a great deal to talk about. that conversation will be happening on bloomberg radio. remember, live on monday and dab radio. up nex

decision to call for a vote is poised to bring her a landside when. .his comes not without risks anna edwards is in westminster outside parliament. mark cudmore joins us out of singapore. what happens today? the: she needs to get support of two thirds of the mps in the house of commons. she wants to go ahead with her plans of june 8. but that she will get that and it is made -- easy to make the case for a general election. more on the numbers in front of her but at quick look on some of the papers and how they sum up she is doing what she is doing. the partreference to of her party that she is going after. mp's snap poll will kill off labor, says the sun. which rebel tory is she going after? the daily mail says this is about crushing the saboteurs, the market came up with a different view saying this was not about crushing the saboteurs, those who want remain. this is about crushing hard-line .rexiteers 17 and 21, 17 because that is the majority she has right now. that given that she has a 21 percentage point lead over the labour party and the latest polling? that is the calculus that she has

anna edwards has been following the action. some of the weakness we've seen in u.s.markets in asia and the european session really being driven by concerns about the fed balance sheet, things paul ryan said about the difficulties of passing taxcutting legislation. it was also one of the things the fed said that caught investors a little off guard. that was the red flag around valuations in equity markets. they said some of them looked a little bit high. here's a standard valuation model. ratio for the stocks for the s&p versus global equities. the s&p is trading at around 11% more expensive than global equities. that has been a topic of discussion. not quite in irrational exuberance, but certainly giving investors some reason to think. sometors in unilever got reasons to think. we got a flurry of news surrounding the anglo dutch food giant, and there's been a lot of expectation ever since we got ,hat approach from kraft heinz from warren buffett and co. in the united states. it really gave the board at unilever a lot to think about and the stock has been outperformin

the first minister spoke with anna edwards. >> i don't think the position of the prime minister which at the moment stands in the way of the scottish parliament is sustainable but to discuss it with the u.k. government in a civil manner but the will of scottish parliament has to be and must be respected. emma: the british government said a second referendum is not up for discussion while the brexit process is ongoing. in south africa the pressure is building since the finance minister was fired and shook up the cabinet. the leader made the changes without consulting officials of his own party. now the speaker of south africa's parliament may have to discuss the issues. bloomberg, powered in more than 120 countries. this is blerk. jonathan: more on the political turmoil in south africa, joined by the former president of south africa. great to have you with us on the program. let's start with what investors are looking at. jp morgan saying the s&p may cut south africa to junk in the coming days. give me a sense how important the investment grade credit ating is to your government. >> we

chris edwards is here, anna palmer and msnbc cricketer robert costa who you just have to turn on the tube and you see him everywhere these days. chris, i want to start with you if i can on the idea of the tax reform plan. this overall we'll hear today. the head liner is the slashing of corporate taxes with not just big business but small mom and pop businesses that will benefit by this. they say it's going to be paid by by economic growth. treasury department saying 3% will be just fine. what is the risk here in that strategy? >> i think the corporate tax cut would be paid for by economic growth. we have the highest corporate tax rate in the world and we're shooting ourselves in the foot. if you slash the rate, corporations would bill more factories in america and they would avoid and evade taxes a lot less and i think that would pay for itself. on the individual side -- >> to be clear, you say that would pay for itself. it has the potential to add trillions to the -- >> not the corporate tax. but the individual side ought to be offset with spending cuts or the correspondent loob loo

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anna wieslander, what kind of additional commitment would you suggest of the estonians? i think the estonians are doing a lot of commitments, i think it's good you spend 2% on defence. i don't agree with edwardif russia wants to regain trust, they could return crimea to ukraine and stop the war. applause you know for global questions we asked people to tell us their comments online and so on. i will give you a taste of the kind of thing we have been getting on social media. one says, do you think the appeasement of putin by trump would lead to invasion of the baltic states ? and another asks, does anyone really believe that russia wants to attack the baltic states, and why should it? you know what, actually, panel, take a pause. iwill ask you know what, actually, panel, take a pause. i will ask the audience what they think about that question. give mea what they think about that question. give me a show of hands, who believes russia really wants to attack the baltics? put your hand up if you think they do. that is quite incredible. i would say literally just a handful of people believe russia really wants to attack the baltic states. let's go to the audience again for some questions. let's t