caroline: w.a.r./e on the world interest rate probability says, no, we don't get any rate hike at all this year. >> we're close to whether there is one rate hike. in december, in terms of the odds. we may have one in december. probably not two. it is all dependent on what happens in the employment market. caroline: just the u.s., not global risks? is she looking at brexit? she was talking about concerns and the u.k. >>>> she talked about the said, don'tshe overstate the importance of brexit. that is one short run risk. by july, we will know the answer to that. there are things in the u.s. they are concerned about. -- they haverowth revised their growth forecast. inflation isn't yet hitting the target. employment is the one that you need to focus on, and the other one near employment is, what is happening to wage growth? up until now, we haven't had the although we had a survey coming out of the atlanta fed looking at and implying that wage growth might be as high as 3.5%. if that number comes through,

caroline? caroline: thank you.na, now stepping up stimulus by stealth in efforts to ensure hitting the leadership's will target. they are trying to enhance the role of the state, even as policy makers they want a bigger role for the market. according to jpmorgan, that would mean a fiscal deficit that would exceed 10% of gdp, more than triple the government's stated ratio. guy: it is interesting whether goldmans is stepping in and the private sector is stepping out. that miller is o -- matt miller is on set and charles newsome is with us here as well. the private sector is funding big investment projects. you can see this really clearly on this chart. assets, look at that chart. really surging over the last few quarter's. you have to step back and say, the chinese economy, near term, delivers better numbers. are you happy to invest in chinese stocks right now? the you see any asset you want to buy? >> i don't see any assets i want to buy. i want to find ways to allocate money towards china. however, we continue to w

caroline? caroline: thank you very much indeed. we said that the top, billionaire investor sounding the alarm on brexit. joseph searles says the pound could fall 20% if the eu -- if the u.k. votes to leave. he would scale by his sizable investment in the u.k. earlier this month. li king to bloomberg, a-shing spoke to us. >> i hope they don't leave. if brexit happens, it will be detrimental to the u.k. and it will have a negative impact on the whole of europe. it is not the end of the world either. guy: let's welcome our guest, s&p global ratings. you have indicated that you feel the u.k. will lose its aaa status were there to be a leave the vote. is that a binary decision? u.k. votes that way, the rates changes. we are going to see how it goes the first day. is it as binary is that? is not very fuzzy, it is pretty much binary. if brexit wednesday the day, -- if brexit wins the day, it is more likely that remain will win. if brexit wins, the rating which is still aaa with a negative outlook on the u.k. would go down. if remain is th

caroline. -- bloomberg business flash. caroline. caroline: let's talk oil. some big moves in crude.he cartel stuck to its policy of unrestrained output. >> i am confident that the future is bright. this organization will not only survive, but will adapt. >> opec will stay engaged to the market. [indiscernible] will continue to pay through -- play through. responsible to the market and to the needs. i want to say that we are very resilient. >> don't take that notion [indiscernible] important signal of the economy. .aroline: apparently not dead let's bring in our guest, nicholas gartside. will you look at this from your asset class perspective? how much are you dictating the buying or selling? nicholas: if you think of things like high-yield in the u.s., oil has been a massive driver of that, in terms of some of the investment. there been downgrades from some of the big components, really because of what has happened to oil prices. yesterday's results were great. that is what the market needs, stability when you look at oil prices and other commodity prices. oil, there are two big sho

tom and caroline? caroline: how are they coping with the reality of ryan chill coat, we saw you in the media scrum of getting in the face of this of these producers. what's the feeling like when you're trying to get out of thesguys how close they are to an agreement? is it all about the focus of iran and the frustrations there? ryan: i think the ministers are cautiously optimistic and like the direction of the travel with the oil price which has gone up 85% since the lows of february and disagree on why they arrived where they are and aren't happy with oil at $50 a barrel and want it to continue to rise. you listen to the gulf countries, they'll tell you it's because their strategy of not intervening and leaving it to the market to fix itself has been brilliant and that's what's working. you talk to the venezuelans or the nigerians and they say not so fast. we've also had some pretty major supply disruptions so they're very concerned what will happen in the second half of the year with more supply comi

caroline? caroline: of course today we are still focused on brexit. pound as it heads for its worst week since march, the worst-performing major currency this week after brexit polls begin to show favor to the leave campaign. the pound is the second worst performer, and still with us is howard ward and harm bandholz. before i get to you, i want to show the volatility that is spiking, and the pound volatility we have seen. it is really the fx that is showing the pain at the moment when we're looking at the brexit debate. this is one month volatility on the pound. the white line is a significant spike up versus the euro dollar, which as we saw in 2008 spike hugely. -- which, as we saw in 2008, spiked hugely. you, live uso ask a sense of the volatility that you are trading with at the moment. how are you looking through this geopolitical uncertainty? are you taking any bets? howard: the equity markets have been amazingly stable, given what is going on in the world. every time we are sort of feeling like the market wants to come in and give us any kind of

caroline: which country -- guy: sorry, caroline. caroline: which countries?think the countries that -- it is the northern europe economic reformers like the netherlands, like sweden, in a way germany, though it is a separate case, certainly denmark, which are going to really reflect on this. and think we can just plow ahead as we are. r vulnerable country is italy. in italy, the opposition politics is now all about you know, a similar strategy to britain of not necessarily with hdrawal, but a new loos your.et-based ue -- based europe. guy: what countries do think would be members of that? will we just end up with a series of concentric circles emanating out of that? >> it would be very much the original countries of europe, the original six in a way. guy: including italy? >> well, i think it would face a lot of internal opposition. and in the local municipal elections two weeks ago, the opposition did very well indeed. but i think it would be germany, the netherlands. but in that group of countries, particularly the netherlands, you have a lot of internal opp

caroline: three years of long waiting. many thanks. .ow let's bring it on you have got to stay tuned. 12:45 u.k. time. followed by mario draghi's news conference 45 minutes later. you can follow all of the live news on bloomberg using top . we can dig into the ecb news a little bit more now. chiefn mark, the global investment officer of wealth management at ubs. wonderful to have you here in london with us. give us a sense of what you are expecting. it looks like there will not be fireworks. many how much will you be digging into the detail of the forecast? mark: we expect no change. we expect the ecb is hoping that the fed will do its dirty work for it. caroline: short answer. i wonder if you expect any increase to the forecast. our survey found no increase is expected. we heard the vice president of the ecb saying that he does expect inflation forecast to move closer to 2% in the next couple of years. mark: we think that the inflation forecasts are going to start to rise, if not this time, over the summer. you get th

caroline? caroline: thank you very much indeed.ain heads to the polsl this week, we await the decision. in oneople have weighed the impact of a brexit. >> they have a plan to the purpose. governments have the right and ahead aboutk the future evolution of the european union in scenarios. with, which i hope, or without the u.k. on board. >> the italian economy is subject to brexit risks much in the same way the other members of the union are. there is no specific italian problem from the point of view of the brexit. caroline: wilbur ross is still here with us. you had previously said that the u.k. would be a madhouse if it pulled out of the eu. would it really be the madhouse? would italy? would greece? which is the first domino to fall? wilbur: the first domino would be scotland. scotland would undoubtedly reactivate their own exit from the u.k. you have the u.k. having to negotiate on both sides. then, you wonder what would happen with ireland. what -- will that nationalistic streak come up again. those are enormous problems for t

caroline?aroline: also on the back of the european car sales data. 22.9% of theon to overall market share. on u.k. stock this morning, how land could fall on the open. -- pound land could fall on the open. airbus ceo saying they could have trouble leading up to all of their commitments. managing to pop-out 50 of those by the end of the year. it could fall 2%. let's get into some of the central bank news. we got bob janjuah to dig through it all. i want to go further. talk to us about the federal reserve, sounding far more dovish. you're thinking a cut is more likely on the cards. bob: there is space -- there is space for a hike so any hike is unwarranted by the data. i am going to come back on this show and probably six months time and talk to you about the fed and why they cut rates. the jobs recession is beginning. we got they relate cycle lack of productivity. the corporate sector always response the same way by cutting costs. the biggest costs they can cut is labor. between now and then, pe

caroline? caroline: thank you very much indeed.y and get over the embarrassment -- we are going to return to u.k. politics briefly. -- saying he stands by his decision to hold the referendum. .e are in a prolonged of economic justice. he says it is crucial to provide fiscal stability. talk of the government stepping in and help to support the government -- help the economy. we don't have anyone to help the government while david cameron is leading. news.talk about corporate the cost of the emissions scandal is growing for volkswagen. camp is saidaid -- to have settled on more than $15 billion. the company is said to settle the -- in san francisco. give us a sense chris of how significant five ilion dollars actually is. that's $5 billion actually is. the $15 billion figure, 50% more than what we were expecting earlier. that is a huge settlement in the u.s.. it is a big hit. that gets volkswagen up to its limit in terms of the money it set aside so far. works to a 13n billion euros. that gives them a buffer of 3 billion euros to cove

caroline hyde is in berlin. she has her morning brief. caroline: no way back.la merkel says there is time for wishful thinking after the brexit referendum. david cameron tells european leaders that the leave vote is their fault after they already aren't negotiating. economists tell bloomberg that the u.k. should get ready for a recession. they see the bank of england cutting rates. when will mark carney act? terror in turkey. islamic state is blamed for the attack that killed at least 36 people. we are live in istanbul. or six secondse away from the equity market open. the could see another leg higher . that is what we are anticipating. we are coming off a little bit into the close yesterday. see, it is moving to the upside quite strongly. it reasonably positive market coming through for european markets. that in context with yesterday, when we rallied up. is fitzy is can -- ftse continuing to push ever up. cac is nowsee, pushing higher as well. we have a positive story. e is up at the get go of trading. here is nejra. at the industry groups within the stoxx 60

caroline? caroline: thank you very much indeed. when talking about the pound, it remains at 30 year lows, but sterling rallied slightly after european leaders called for an orderly british withdrawal from the block. afterpoke in brussels taking the historic step without the u.k. for the first time. >> before we receive official announcement of the u.k. wishing to leave, no negotiations can take place. >> we have made it crystal clear today that access to the single market requires acceptance of all freedoms, including the freedom of movement. there will be no single market a la carte. >> i have very much warned the european places, the markets need to get ready to host some transactions which made a longer be held in the united kingdom. meetingsdig into those more. jones, what are the next steps forward, now that we have had this discussion coming from the 27 remaining? >> they met here yesterday without the u.k., the first time that has happened since the u.k. has been a member of the eu. so, unprecedented in those terms. they wer

francine: caroline, thank you so much. caroline hyde with some of the top stories.et's get to our chart of the hour. this is the picture for pound. this is what you see in white. we had some polls over the weekend. they agitated investors as they were not only close. it was the leave campaign that was stronger. you can see volatility going up. let's bring back vincent chaigneau. if you look at this chart and affects in general, it seems that it is going to be a much more volatile, much more emotional market. everything does seem to be played out in currencies because of monetary policy being left, right, and center. vincent: with the fed hike becoming less likely, the dollar is going to be soft. we saw the dollar underperforming against most e.m. currencies. on sterling, i think we are going to stay very nervous into the finish line, the 23rd of june. the polls are suggesting that the brexit momentum is gaining. sterling is going to stay week very much into the front, which probably is going to be tight. francine: is bound going to be week whatever happens? are you

caroline: but only 4% gloom.oger: what happened then was the media and the public were gloomy and subsequently it transpired that the economy did very well. i think we're going to benefit from the lower bound. the key issue for the government is how to keep the pound down at this more competitive level. it is part of the solution. caroline: does it worry you that airbus says it is reviewing its u.k. investment strategy? roger: i think we've got to keep a close eye on things like this. there may well be various firms that reduce their involvement in britain. i think it is incumbent on the chancellor to paint a picture of the outlook for britain and businesses in britain that persuades these firms to stay with their existing contacts. caroline: we have breaking news now. merkel is making a statement in berlin at 12:30 local berlin time, 11:30 a.m. u.k. time. the six founding members of the european union will be gathering in berlin tomorrow. so much work to be done over the weekend. we will hear from the leader of

caroline: which country still need help?learly manufacturing is an contraction and greece as well. pierre: if you look at the global picture in europe, it is getting better. we still have a lot of investments in quite a few countries -- lack of investments in quite a few countries, both private and public. luxembourg, we will spend more than 4% of gdp and public investment and this is encouraging of the private sector to do more. it is also the task of governments to have a legal framework that is conducive to growth in terms of having a digital services policy, things like that they can boost growth. caroline: are you worried about the emerging markets and commodities? are we seeing an end to the commodity spiral? pierre: the commodity prices are low are a tailwind for the european economy. is not goodand it for emerging countries that have a lot of commodities. there is a rebalancing taking place in terms of the prices of the commodities. they are probably too low now and were too high before so we have to find a good meta

this caroline hyde -- caroline hyde there. >> we are balancing the books.we see oil price levels at a level that we have go further, we will go further. he still have more in our tank in terms of taking cost out, in terms of investment programs. we can work much harder on operational excellence. i am not so worried that we will not be able to bounce the books. francine: he spoke to ryan chilcote who joins us now. what if the oil price plus back to the low we saw this week. what did he say about that? ryan: we should focus on what he said about capital expenditure. they said that in 2016, they twoct to put $29 billion in capex. a few months ago, they were talking about 33 billion, then it was trending toward 30 billion. they are cutting back. when we heard from been burden uerden.b at a certain point, it feels like they are in danger of biting the hand that feeds them. >> we need to be at a $25 billion level in order to sustain the company for the longer run it yet to bear in mind, we have to move fast in the -- in order to keep this company strong. yet to h

caroline: i mean, you are right., we get a wealth of pmi data, manufacturing from the eurozone. it was only earlier this week that france pulled out of the bag first quarter gdp better than expected. unemployment coming down two consecutive months. and we are starting to see signs of revitalization across the eurozone. interestingly, we spoke to a chief executive, he is the leader the focus is on temporary employment. he sounded so buoyant about the eurozone. have a listen. >> europe is improving. absolutely. percent, growing 7%, a which is good for us. the dutch market has been growing around 10%. so that is pretty good. we see early this year germany improving. germany is now around 5% growth. year,and italy, also this posting double digits. so europe is really thriving after all, whereas the last two or three years, it was the u.s. caroline: many feeling that showing signsgain that the u.s. can start to raise rates. and we'll that does in terms of the dollar strength. we are what we talking about the emerging mark

here's caroline hyde. caroline: clerk oh -- hundreds of them as traitors -- pro-democracy sinker.s long cold bland -- after chinese called for a product boycott. the singer is known for her call for hong kong's -- billionaire investor ron baron is predicting that tesla motors will become one of the biggest companies in the world, growing the fold in market value. his market sent shares higher. baron is one of tesla's biggest investors. his company has a stake in the -- market value. to unit is facing more bumps in the road and the state is -- the companyir says the issue can also affect the radio. francine: caroline hyde with the latest on corporate stories. the ecb iss set -- said to have [indiscernible] sally bank well joins us. you have been covering the story closely. geraldine sundstrom is still with us. sally, he looked the balance sheet, it is rising. this is a great chart, courtesy of my great inducer. -- great producer. is there enough bonds that you could i corporate? sally: that is the question on everyone's mind at the moment. the market is incredibly liquid. ou can bu

caroline?it is a beautiful in paris for the opening night of the euro 2016, but there are many challenges for this tournament. strikes, fonts, and terror threats. i'm joined by bastions route. he's written several books about the economy of football. do you think that president ollanta has more to lose than to win? i think france has much more to lose than to win. france is the company welcoming the most tourists in the world. to attractnot need foreign tourists. of aimagine a problem terrorist attack or i don't know what. this could deteriorate the image of france worldwide. caroline: do you think the strikes are deteriorating the sports atmosphere? bastien: possibly could deteriorate france's image as a -- this is not really hasistic, maybe, but france contributed to this image further. caroline: especially the piles of garbage in the streets, do you think that will prevent or maybe discourage people who haven't bought their tickets yet? bastien: i don't think so. i think people already havin

delicious. >> marie-caroline: amazing meal? man: how are things? what kind of things? >> anthony: is the environment good for business in senegal now? is it getting better? i mean, there seems to be a lot of money coming in dakar. you see buildings going up, somebody's building. >> marie-caroline: they key thing for me will be the development of, uh, business and because when you look at all these young people in saint-louis and there is no companies to employ them. let the young people take a big part of the power, which is not in our tradition, but we need the young people to be, to be strong. >> anthony: if you could compare yourself to someplace else in, in another major city in the world, the new york of west africa? >> man: the hong kong of west africa. >> anthony: ah, oh, ouch. [ laughter ] yeah, you're, you're right. ♪ [singing] [singing] ♪ [ applause ] dad, you can just drop me off right here. oh no, i'll take you up to the front of the school. that's where your friends are. seriously, it's, it's really fine. you don't

caroline hyde. caroline: thank you. risk aversion is right across europe.200 billion euros over market valuations on the stoxx 600 last week -- today we wrote yet further -- this is the imap function with the individual industry groups. consumer staples, one of the performers, down. the worst performer is energy, the oil trading lower on the back of oil rigs coming back online in the united states. the banks are also off. risk aversion is being filled with concerns -- the u.k. pound being hit harder. look at the trajectory over the ,ast month, currently trading nowhere near zero we know now see on the german 10 year debt. will not of negative as we see a search for safety because we certainly are with u.k. debt. againlls are showing once that the league's campaign seems to be ahead to the tune of 55%, which royal the market, -- roiled the market. that is pushing the british pound down 5/10 of 1%. this is the world currency rancorou, and it is -- ranker, and it is one of the worst performers today. chinese data looks a little bit better than usual. let's hav

caroline: could we see any negative rates in norway?ensen: that is up to the central bank to decide on. my job is to make sure that we that isiscal policy actually working for the economy. i think it is a good thing that we have financial muscles to stimulate the economy through fiscal policy. but then again, we needed to stimulate structural reforms. that is why we have this tax reform in place. that is why we make sure we take care of the labor market. that is why we are pushing efficiency into every spectrum. i think we need to stick to structural reforms. caroline: which sectors excite you the most in terms of the growth you have seen? siv jensen: i know there are a lot of possibilities. we have a lot of skill, especially surrounding the oil sector. that is also related to the energy sector. but a lot of what we see in future growth is technology driven. that is white it is important to have a well functioning education system to make sure nobody falls behind. about thewhat concerns when labor reforms seem to be going rather slowly

>> caroline: parenthood wipes him out. i'm sorry. -- i shouldn't have said that, the whole "parenthood" thing. i wasn't thinking. >> thomas: it's fine. you shouldn't have to edit yourself in front of me. and besides, that's what -- that's what we agreed on, right? dad is the father. [ sighs ] >> caroline: yeah, but i -- i put you in a mood. >> thomas: no, i was... i was already in a mood.

anna: caroline, thanks very muc h. sticking with the german scene, london to lose influence as a financial hub as a result of this decision. brexit will not impact insurance as heavily as other markets. economic growth will suffer in the eu to a lesser extent. it will have severe implications on the economy. somebody considering these implications is david cameron. there is number 10, downing street. he will because that are in what this means -- he will be considering what this means for his political career. let's get to the latest results, shall bwe, manus? manus: there we go, 57.1% has voted to exit its relationship with the eu. 48.24% has decided to remain. merkelill discuss with how to avoid the domino effect. guy johnson has the latest on the markets. guy: the volatility is absolutely massive, trying to get a price on this one, it is really quite difficult. the charts are lighting up, but the spread, absolutely massive. it looks like table is fighting around the 134 level. we continue to see asian markets gettin

here's caroline hyde. caroline: let's look back.fted towards a brexit this week with several surveys putting the leave campaign ahead of remain. the uk's biggest newspaper "the behind theits weight brexit on its front page. the tabloid said britain must free itself from "dictatorial brussels." phuket chancellor warned that leaving the eu could spark a fiscal crisis. said reducede trade and investment would leave a 30 billion pound black hole that would have to be plugged by increased taxes and spending cuts. the justice secretary said such an austerity budget would not be needed. the u.s. federal reserve help fire on a rate hike. chair janet yellen cited their eu referendum as one of the uncertainties discussed at the fmoc's today meeting. >> brexit, the upcoming u.k. decision on whether or not to leave the european union, is something we discussed, and i think it's fair to say it was one of the factors that factored into today's decision. tragice: events took a trend -- turn when labour mp jo cox was killed in her west yorkshire co

caroline and cole were no exception. before their surgerie kids had trouble seeing in low light.ow, though their vision is not perfect, they say they are noticing big differences. >> good things are to come. >> it was snowing and i'm like, oh, i can see the snowflakes. it was really cool. to actually see something i've never seen in my life before. >> reporter: spark is one of several companies developing gene therapy targeting everything from sickle cell disease to other disorders. if successful, it will be a new paradigm, fighting genetic disease in one treatment. >> i thought it was really cool, how simple it was and how it changed my life. >> so patients only have to receive one treatment. spark is so committed to this idea, it chose once, or o.n.c.e. as its stock ticker. it's getting this treatment. >> this is amazing. watching those kids to suddenly be able to read, that's amazing. >> he was a braille champion before getting this treatment. it was really incredible. >> when you talk about a one-time treatment, that's phenomenal for the patient receiving it. a lot of times y

guy: thank you, caroline. to you like european stocks? u.s.s look very expensive right now, don't they? >> u.s. stocks are very expensive right now. at least in europe, they are significantly lower. we obviously have a week euro. guy: tell me where the earnings growth is coming from, though? >> it's hard to say. i think a lot of the market is trading around the u.s. dollar. eally, it seems to be a market driven by the u.s. dollar. as the u.s. dollar weakened, it will benefit commodities, emerging markets and it could help stimulate growth. the issue of course, is currency wars. everybody wants a weak currency because it helps their economy and help boost earnings. weak dollar doesn't help any companies here trying to export to the u.s. are trying to get earnings back from dollar markets, does it? >> really, when you look at the euro, we would like to see a weak euro. in the u.k., you would like to see a weaker sterling. if the dollar does weaken, it is not great for the rest of europe. the point i am trying to make here is the global economy a

speaking to gordhan caroline hyde. otc next.tle of the charts is next. ♪ betty: time now for our global battle of the charts where we take a look at the most telling charts of the day, what they mean for investors, you can access all these charts on the bloomberg by running the function featured at the bottom of your screen. joe weisenthal is back with us. we got one oft, my favorite data points in the world, korean export trade in a. -- trade data. is the chart going back 10 years, you can see the different ,aves -- precrisis, doing great post crisis come a big recovery, then moving sideways, then the big plunge. i plotted it against the yellow line, the emerging markets index. tracks, nicely it surging at the same time, plunging, coming back, sideways, then a plunge. korean trade data starting to get a little better. the rate of deceleration is getting better, so maybe that is a good sign for the world economy. g #btv see that chart at 1517. mark: mediocre rather than 'ssmal, the words of oecd secretary-general when he was tal

caroline hyde reports from germany. caroline: one of shock and concern clearly.o leaders in foreign policy particular. they say, overall, a catastrophe for germany and the eu. angela merkel is a voice of calm at the moment, typically pragmatic as she is the leader of germany. she has got a very difficult balancing act, vonnie. on the one side, wanting to punish the united kingdom, hold them up to prevent anyone else from calling referendum and start this domino effect so feared in the eu. we have the right wing parties from france and spain already desiring that own referendum. talking about a rush through to get this deal done with the u.k. and to immediately start with start -- preparations for an exit. she's been the voice of reason. wanting to see a calmer measure is because she realizes the other side of the balancing act, business side of the balancing act. she was to support the business ties. she wants to ensure the economy progresses as best it can. >> you will be covering this meeting on monday when the french and italian ministers arrive in berlin. wha

caroline: indeed.ou heard from anne-marie holden -- annmarie horden talking about merkel, speaking about the need to avoid ugly negotiations. she gets negotiating tomorrow, because she brings over the renzi, of italy, matteo as well as donald tusk, the eu president, who said the end of the u.k. in the eu could be the unfolding, the dismantling of western political civilization as we know it. that's the threat he made before the vote. how will they make sure western civilization doesn't come to an end as he was discussing,? they will come together here in berlin. we will be covering that and trying to talk to these leaders to see what they are trying to push forward as merkel remains pragmatic as she is. anna: thank you very much, bloomberg's caroline hyde with the latest from berlin. yousef: let's take a quick check on how the energy markets closed friday. wti and brent both dropped around 5% as traders moved to save havens after the u.k. voted to leave the european union, and those numbers are in fact

caroline: i want to focus in on u.k. are being hit by the uncertainty surrounding the brexit vote. polls showing that perhaps the vote to leave is gaining ground. it is hitting the likes of barclays. one of the banks that would underperform in a leave of vote. many of the property builders, the homebuilders have been hit my the concerns that we will stop seeing money being poured into the u.k. property market. 2.5% lower. keep an eye on the ing group as well. pmb -- b.n.p. paribas. these can be hurt the most if the year -- if the u.k. did exit the european union. asset manager based in switzerland, there being hit by the current volatility in trading. a 15% erosion in the capital market capitalization. that is the worst day on record holding.olding -- gam they are sing performance fees dry up. -- they are seeing performance fees dry up. compare that to $44 million last year. they see it continuing good on the upside, i leave you on the brighter side. m&a is a bit put off by the brexit concerns. touching thatl percent pre

caroline hyde reports from germany. caroline one of shock and : concern clearly.ng to leaders in foreign policy particular. they say, overall, a catastrophe for germany and the eu. angela merkel is a voice of calm at the moment, typically pragmatic as she is the leader of germany. she has got a very difficult balancing act, vonnie. on the one side, wanting to punish the edit kingdom, hold them up to prevent anyone else from calling referendum and start this domino effect so feared in the eu. we have the right wing parties from france and spain already desiring that own referendum. talking about a rush through to get this deal done with the u.k. and to immediately start with start -- preparations for an exit. she's been the voice of reason. a collar measure is because she realizes the other side of the balancing act business side of , the balancing act. she was to support the business ties. she wants to ensure the economy progresses as best it can. >> you will be covering this meeting on monday when the french and italian ministers arrive in berlin. what do we expe

caroline hyde has what we need. tara: -- caroline: we have a couple of big moves.retty well on the fact we have oil and gas and energy stocks today. it is 25% exposed to the oil and gas sector. the reason it is of the most is it is going -- and analysts that want you to buy it. this has to do with can accord going out there saying compared to american beer, we are going to be trading at a significant discount. pretty unimpressed with the rally in oil stocks in general. they don't believe we are going to be hitting any sort of bottom. they do feel this company has a track record of cash generation through good and bad times. they should not be trading at a discount to their north american peers. -- up 3.8%. this is all down to analysts recommendations. when the analyst recommendations are moving the stoxx. capital return and -- jeffries mixed.roving returns a not being reflected yet and the stoxx and we are seeing a price target being raised to 595. we are at 434. guy: caroline, thank you very much indeed. the stoxx we need to be watching. in the essential governor

. ♪ caroline: gasoline prices in the u.s. demand are at a record. >> they are driving a medievalist amount -- a ridiculous amount. prices have been cheap. that encourages people to buy. they will drive more. the question is is that sustainable? when it is no longer two dollars a gallon. caroline: onto zinc and copper, copper is a much better benchmark to see the state of the global economy. what does the price tell us about strength? >> global demand is slightly off the boil. i think the margin, carpet -- copper is -- china is going to invest in the electricity grid touches quite heavy on copper use. between copper and iron ore, going forward, iron ore is slightly weaker. >> that is right. zinc, copper and all of the metals, you have this trend that the stockpiles we can see, that is giving people a false sense of supply and demand balance. caroline: stuart wallace, stays with us. we will be talking emerging markets. we talk about low interest rates. ♪ you guy's be good. i'll see you later [ bark ] [ bark ] bye. see ya pal. e

the van flipped five times on interstate 95 in caroline county early saturday morning near the town of ladysmith. investigators trying to figure out why exactly the driver lost control and hit a there. 16 people were in that van. one of the six killed, a child. we're told no one was wearing a seat belt. >>> apparently looks can be rather deceiving. that's what one teen is learning after a pretty bad fall at annapolis mall. >>> he tried to jump over what he thought was a small wall. the theater is located on the second floor of the mall. he fell 35 feet down. he was flown to shock trauma with serious injuries but is expected to be okay. >>> phase two of the metro's massive maintenance plan is well underway. we are now entering day two of the 16-day shutdown. both stadium armory and potomac avenue stations are closed. the metro is providing free shuttle bus services to help riders get where they need to go. work crews are fixing sections of rail, replacing and doing other repairs. >> this is the worst experience i've had on metro yet. i didn't expect this and was not understanding it. >>

caroline: it happens tomorrow. , 8:00 up right in early a.m. united kingdom we will see the foreign leaders of the sixth original eu founders. foreign ministers flying over from luxembourg, france, italy, belgium, netherlands. all meeting with a german foreign minister to decide on the next step. we will be at that meeting. and monday we have merkel franceng holland from and the eu leader, the eu president to meet on monday. the very fact that the u.k. leaving the eu, he warned this could spell the end of the western political civilization as it stood. we really hope that does not happen. for germany, it is all about business. the u.k. is germany's biggest trading partner. merkel wants to support her german businesses. mark: thank you very much. front seen, what is the mood like on the ground? mood is a little bit surreal, a little bit subliminal. you have a lot of shouting in the background. it's clear there is a sense of resentment from the eu. people come up and ask if it is true? is a treat the eu parliament president wants us out as soon a

let's go to caroline hyde.he upper forming industry group, not surprisingly, is utilities. ]one outperform or is sainsbury, up 2.6%. dropped .8%, but that was better than the slump the market had anticipated. the market remains challenging, so says one of the u.k.'s biggest grossers. this is impacting sales. erste, also want to watch out for today, down about 3%. 17.4 million shares. they are earning millions of euros for that. down goes the share price. lastly, your worst performer on the market right now. they are a payment processor. they are feeling the pain from across the atlantic. the reason? verafone in the u.s. reported -- well, they fell 28% after lowering their four year forecasts. look up for other competitors in the u.s. all of these companies are likely to fall in sympathy. ingenico, the worst performer on the stoxx 600 today. guy: the utility sector is the in positive territory this morning. you can see this very clearly ont h the imap, the only sliver of green. the french corporate bond market i

let's find out the details of caroline hyde.ine: two days of losses on the stoxx 600 -- this is the imap, already down 2/10 of 1%. digging into the industry groups we will see that it is a little bit lackluster. byecommunications are buoyed the fact that the death of some of these companies are down by more than a percentage point. utilities up. a little bit of recalibration after yesterday's exuberance from mary drug you waiting into corporate bonds. down 3/10 of a percent on the stoxx 600. woeful warnings coming from big hitters today. george soros concerned about the outlook of the global economy and a risk to the large market shift. , he looks at government bonds. let's look at u.k. 10 year yield, diving today. money is going into german debt once again, close to the record low. 1.23%, so clearly money is moving into the debt markets overall. let's have a look at the stocks to watch. mario draghi is about to take the stage, so i want to dig into the numbers that are down. the opposite from many calls i have seen, forecasting

guys, back to you. >> caroline, the fbi had contact. in fact, interviewed the shooter in recent years, and then essentially let him go? >> yes. and that is the big question today. how did he get a gun then? 2013. he worked as a security guard. he has been working as one since searches. a co-worker said, called up the fbi saying he is talking about having terrorist ties. they interviewed him twice. closed the case. in 2014 a person said he was talking about connections to a suicide bomber. the fbi came in again. another interview. he was legally able to buy the guns in the last week. the handgun and the assault rifle, because the fbi investigated, but it was close the. we are not sure if he was some type of watch list. it wasn't a watch list that would say you can't buy guns. you can't operate freely. so the fbi still investigating this. there are already bills proposed in congress. one senator proposing closing up some of those loopholes. this will have greater implications in florida. >> thank you, caroline. >> just about 20 minutes ag

caroline: and deals that seemed to be dead before the begun.va, 8% on the open. .his is the u.k. software maker schneider electric analyzing the company thing they want to do a reverse takeover. they have two days of talks. this is why we saw a spike in stocks. we could see a slump. agomber, it was six months that the initial first time they tried to do this deal fell away. with the stock price reaction then. desk will be at a see a slump at -- will we see a slump at aveva? this is about the brexit which we have been talking about all day. barclays has a significant warner -- warning to 20% slump in reservations this year. reservations down 20% because of the eu referendum. good thereis growing is a real dumping this year because of the brexit affect. , it an eye on this stock could rise as numbers beat the first quarter. back to you, guy. guy: thank you very much indeed very caroline hyde on the stocks to watch. up next, we have the market opened. european equities on this sunny day in london. it is going to be sunny today. london market up by

jim: sarah and little caroline come over.father and son wore matching shirlts and he'll have a chance to compete for the green jacket next year at the masters. peter, back down to you. peter: thank you, jim. i'm here with the memorial champion. if memory serves me correct, your last victory check was for $16,000. this one comes with a ticket to the masters, a few more dollars and more importantly, validates you as a winner on the pga tour. how does that make you feel? >> unbelievable. it was a struggle all day. i fought my golf swing all day but i just tried to hold on to could. made a lot of really good par putts. my speed was great all day and that was what saved me. i had some opportunities to three-putt and rolled it up there nicely. 14 was pretty crucial because that putt breaks about 10 feet and can get away from you really quick and lolled it up there to a foot, foot and a half. that was a big one but my putter really saved me this week. peter: you've now won jack nicklaus's tournament and you got a lot of fedexcup poi

we told everyone that he's my kid. >> caroline: right.ecause we thought that we were doing the right thing. but we weren't. and it's time to admit that. and it's time to just tell everybody that thomas is douglas' father. >> brooke: hope says hello. >> katie: oh, i've been meaning to call her. i'm sure she has a lot to say about wyatt and steffy's marriage. >> brooke: mm, we didn't get into that topic. i don't think she wants to be choosing sides. >> katie: that's smart. bill certainly has. >> brooke: chosen sides? >> katie: yes. he made it very clear that liam is to back off. steffy and wyatt made a commitment to each other and that's that. we have to respect it. yeah, i'm proud of him. you know, he stood up for his

they were friends until caroline's death.she also read various segments in draft. >> i want to ask you one last question before we open. that is what did you learn for yourself personally? >> one of the things i learned this history of is always with us. pauli was one of those people who carried history around with her. whenever she was writing letters, she was forever writing letters to peep hole. she might start the letter is saying today 70 years ago and she will tell you what happened and tell you why it's significant in terms of that particular moment. so i found myself taking a minute have it. when i was working on this for, there were several current event happening that reminded me of things they had gone through. there is a case in the book of a virginia black sharecropper who was executed and while i was working on the book in my home state. they are not taxes that they execute anybody. there is a case, troy davis, of a man who is executed and the victims had recanted. jimmy carter had repealed, the pope had gotten

caroline hyde is in berlin. what can you tell us? caroline: at the moment, nothing is clear.e have been seeing across social media and on the television reports that a gunman was barricading himself within a near themplex just city of frankfurt, south of germany we are talking about. it is understood that many have been injured trade we do not know what the extent is and why they have been injured great there are some mixed reports, some of them calling it on the back of pepper spray used during the incident. others talking about an armed man. detailed to bea ironed out about the exact reasoning behind these injuries. it is thought 25 people at least have been injured by pepper spray and by an incident in the southern german town of vie rnheim. other press reports talking of an armed gunmen, masked, possibly armed, in a cinema complex. we have that very tragic news coming out of the united states last week, and that within the club when looking across the whole of europe is whether or not to be on stated alert. many cities -- the paris terror attacks have not had the beginnin

anna edwards in westminster, ryan chilcote in brussels, and caroline hyde in berlin.onathan: let's get to anna edwards in westminster. scotland starting work on their own referendum all over again. going to happen? another independence referendum up in scotland? anna: it was talked about as a once-in-a-lifetime or once in a generation decision. it seems things have changed so much that this could be back on the table. that is what nicole sturgeon was addressing. she says this is something they are considering, and because of that legislation is paving the way for a possible independence referendum. she is in talks with the eu for immediate discussion. the timing will be interesting. will they be able to get the independence referendum on the radar before the u.k. and eu go through the divorce proceedings and enable scotland to not actually leave the eu? that could be one of the angles on this. meanwhile talking with those , disappointed by the results yesterday, as 62% of scots wanted to stay in the eu, we also have a petition calling for another referendum. it seems