let's bring in david stubbs. i going to talk to you about field in the second but i want to start off with pound. how further lower can the pound go? did mark carney preempt too much? david: i do not think so. our target on the pound is 1.25. another rate cut is going to support that. i think mark carney was smart, using foreign guidance. most of the committee thinks we are going to go lower by the end of the year and even though the positioning of sterling is extreme in terms of some of the lowest short position we have ever seen in the current the, i think as we get some kind of look at the hard data to show the scale of the actual slowdown in the economy, not just the survey data or backward looking data. as that comes out in the scale of the slowdown reveals the health, i think the sterling will go lower. francine: i know tom will ask you more about the markets but we heard from ian mccafferty saying he wants to wait and see. i do not know if this fills you with confidence but he is waiting for signs of what b

function,s -- the a david stubbs joins us now. t are your early thoughts the earnings season so far? david: is a patchy one. european companies have for long time had the best return on equity's. for a while we have been pointing to these as the possible fuel to significant upside in the medium-term, three to five years. of course, we look at the functions on the bloomberg and you can see there is some strength in different sectors good test sectors. the banks adventure -- sectors. the banks have been trading. resolutionustainable to the key issues in the european banking system. everybody knows what they are. i think before the equities can get out of their own way. hopefully that should actually release a very good period of performance for investors. the eurozone economy is performing well. it has plenty of room to run it we see a pivot toward government spending. governor draghi has been wanting that out. that's has been pointing that out -- has been pointing that out. we have been waiting for some satisfactory resolution. caro

we kick off the conversation with david stubbs. this is bloomberg.bloomberg.com. ♪ francine: i prefer to learn as we go. the boe advocates a gradual brexit response. the pound sinks for a fifth day. to returnes tax cuts the u.s. economy to precrisis days. obstacles asces oil drops from the highest close in two weeks. this is bloomberg "surveillance." i a