francine lacqua and tom green from the green in westminster. april fools' day today. erious week. francine: it certainly is. it has probably been a deadly serious month. we have indicative votes today. parliament, right behind us, could vote on a customs union that would fly in the pie minister's plans. does she risk her conservative party? those are questions we keep asking. tom: particularly for american audiences, why does this way down on global markets? we see it with diminished pmi's. and with the new york city briefing, our first word news. viviana: british lawmakers will orderlyn to reach an exit from the european union. today, there will be proceedings in a bid to scrap the prime minister's plans. in turkey, president erdogan's nationalist alliance losing control of ankara and other key cities. plus, the opposition pulled ahead in a close race in the largest city, istanbul. turkey has been hurt by a recession. ofogan's critics accused him running an authoritarian system. in the ukraine, a tv comedian took a big step towards defeating the incumbent leader peed

tomorrow, francine lacqua. built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. ♪ tom: bloomberg "surveillance," francine lacqua in zurich with a better than good interview with credit suisse. we are joined by andrew kessner. pieceshad to pick up the on one of america's great blue chips which has struggled out of see otto -- seattle, bowing. -- boeing. what is the goal of a delicate conference call for boeing leadership? andrew: i think the focus here on the investor side is not really going to be on the numbers from last quarter, or even going forward. we think management is likely to suspend its prior full-year guidance in's the

francine lacqua spoke with italy's central bank governor.rudence and an ample degree of accommodation is required. expected moderation in growth. the risks still are pointing .own probably there are conflicting figures. at least in europe. still, i think we have to be inflationnt because is not where we would like it to be. >> how much do you worry about inflation? is it going to be very difficult? >> there is no loss control. policy -- atary the same time, we have to admit far from closeis to 2%. , don't take into account the increases in energy, the growth we are seeing is far from 2%. this is why we need to have monetary accommodation. >> to what extent does inflation actually help? inflation reflects an interest rate. worry about europe becoming more like japan? >> no, i think we have some things in common. aging population demographics, yes. we have learned a lot from japan. nonstandard policy having cleared the objective of -- but at the same time, obviously every indicator is different and we have new technology. we have demographics

guy johnson in for francine lacqua in london. it is extraordinary how quiet the brexit story is. why is that? guy: everybody is on holiday. they return next week after easter recess. buts are ongoing, basically, that's why. tom: does the whole nation take off? the weather will be sensational this weekend so i think everybody will be staying at home and going to the beach. tom: there is a lot going on here. we have european inflation coming up. thisan comment on headline, looking at germany. the export juggernaut of the european experiment. and it isn't happening. guy: and might happen soon judging by the china number. cpi data is crossing the screen and we will talk with our guests. 1.4 percent year on year is consistent with what we had previously. up month on month has picked

i am tom keene, francine the claw with me -- francine lacqua with me. the prime minister coming out and doing a photo op, is this anything more? francine: it probably is a photo op for theresa may to show back to her country and parliamentarians that she is still in charge. we hear from various sides of parliament, but many brexiteers from her party are trying to oust her. may can be done is theresa rounding the edges before the e.u. summit to muster support for really shorter extension. trips,ith a couple of theresa may will get some leaders on side. tom: we will go to kevin cirilli in washington. right now in new york city, here is viviana hurtado. viviana: british prime minister theresa may arriving in berlin as she faces a battle at home and abroad. after berlin she travels to paris and perhaps to brussels to win a short delay from the uk's departure from the european union. some members of her party are trying to throw her overboard, angry she has had brexit talks with the opposition labour party. tariffs on $11 billion worth of goods, that is trum

this is bloomberg "surveillance," tom keene and francine lacqua in italy on the border with switzerlandfredo. word is francine: it is cold, and the coldness in terms of international relations and politics, if you look at the u.s.-china trade, europe is caught in the middle. tom: strongly agree. francine: they are fighting for a relationship reset with china and president trump, if he has something to do with china, attacks germany. here reallytory going back to the 1400s. this is where a lot of celebrities go to get away. francine: everyone was here in the world of politics and celebrities in the last 60 -- 60 or 70 years. this was built for the local cardinal. tom: jobs day in america, we cannot forget that. here is sebastian salek. sebastian: theresa may has asked to delay brexit until june 30, making the crest -- request and a letter to donald tusk, citing ongoing negotiations with jeremy corbyn. their position is if there is a delay, it should be longer. theresa may is trying to get her deal approved before european elections. the u.s. and china says -- say there have been touch ha

francine lacqua has the day off.- renewing the attack on the federal reserve, tweeting the stock market could be as much as 10,000 points higher if it were not for the fomc. cannon,us that is fred ian bremmer still with us. to quote mario draghi talking about central-bank independence. certainly worried about central-bank independence, especially in the most cheery -- thertant jurisdiction in world, referring to the united states. does united states have anything to be worried about? ian: not in the near term. the fact that the president is talking about undermining the fed chief -- out of nothing people around him believe that. certainly the most recent aoating of stephen moore as fed board appointee makes you believe confidence is at a lower premium, and there is a desire to put it on the scale, but republicans have reacted as a consequence, this is not changing what we think near-term. guy: ok. fred, would u.s. faang stocks the higher if interest rates were lower? fred: likely they would be higher at this point in

i am tom keene with francine lacqua in london. there was a snow in london yesterday -- but there is an oddity. francine: every day is different but similar in that we do not know what kind of extension the u.k. will ask for. we do not know if no deal is taken completely off the table. theresa may is talking to jeremy corbyn and they do not like each other. if they find a compromise about the customs union, that could get voted in parliament. tom: there were more meetings between the two warring parties. the first official word on last months crash of a boeing in ethiopia, a preliminary report called on system.o review their the plane unexpectedly pitched nose-down and they were not able to repair the disaster. backed lawmakers have efforts to avoid a disorderly departure from the european union. prime minister theresa may is concerned -- and jeremy corbyn's labour party will be in talks to find an agreement about a post brexit relationship with the e.u.. there is signs talks between the u.s. and china are in the final stages. presi

he spoke with francine lacqua at the world bank at the imf in washington, d.c.ed by asking if the chancellor would support a customs union if that was required to clinch a deal with labour? >> we've gone into these talks on the principle we agree with the labor tarp -- labour party we need to leave the late -- the european union. the on to that, week -- beyond that, we haven't set out red lines. we know this is one of their public demands, customs union. it's not what we set out to we're prepared to discuss these things with them. it doesn't mean we are going to do it but we are prepared to talk about it. francine: would you accept it? >> i'm a member of the government. we're prepared to talk about it. francine: a lot are wondering if theresa may will go, if she will go, what kind of way. is it better that she stays beyond the extension now that we have it beyond october 31? >> the prime minister said she will leave once she has done the deal and taken us out of the european union. as far as i know, she doesn't have any intention of leaving done.that deal is she

tom keene and francine lacqua are there with luxembourg's finance minister. are delighted to be joined by the finance minister of luxembourg. we have so much to talk about. negative rates in europe, banks, consolidation. brexit. a longer extension, doesn't mean automatically that brexit gets water down? >> i think that is probably not the right angle. what i would highlight is that europe has proven it can be flexible and mature. a disorderly exit, which means a note yield brexit was not reasonable at all. markets did not price in the no europecause they thought and u.k. would be reasonable enough to avoid it. i am pleased about that. the two years of negotiations were not enough to find a compromise that is acceptable to the u.k.. on the eu side it is acceptable now. i hope the urgency is seen on the british side. francine: the urgency is taken away. what do you see happening in the u.k. in the next six months? pierre: i do not think the urgency is away. if you are short term you think six months is a long time. we have seen that two years were not enough. th

francine lacqua is on the scene with one of the leaders will help shape the future. francine?ine: we are having a great conversation about the future of europe. we talked about what europe could do to retaliate against u.s. tariffs. the eueased to welcome commissioner for monetary and financial affairs. thank you for giving us a little bit of your busy schedule. talk to me about what you worry about the most. is it the eu downturn or is it tariffs from the u.s.? not in a recession. our fundamentals are quite solid. we see the end of the expansion and we see the outset risk. we must think in advance for what could happen if those risks materialize. francine: how quickly can we be in a recession? >> i do not think we are threatened. -- you dowe do not not think there will be a recession question mark >> we will deliver our forecast on may 7. i do not want to sound alarmist. we are above 1% for the eurozone. we know we need more. we are at our potential or a little under our potential. we've also seen the are imbalances because two of the three biggest economies, italy and german

uber, buried on page 278, francine lacqua took lyft in from dulles, competition. i am tom keene. francine: they did not let me through immigration. tom: you had a battle at immigration. francine: me and the rest of the imf gang. it took at least two hours. tom: this is a metaphor for these meetings, and i want to go to president trump inserting himself into the -- himself into the festivities. francine: this is something we have been trying to figure out, if he signs a trade deal with china does he put his sights on europe with tariffs on cars and the 11 billion we were hearing about? we will kick off two days of the imf annual spring meeting with conversations. down with the sit managing director of the imf, christine lagarde, asking her about clearing the european banks and whether a certain possible merger would make it too big to fail. tom: lael brainard with the governors of the fed. in new york city with our first word news, here is viviana hurtado. viviana: a breaking story fast developing, julian assange in the custody of london police. the president of ecu

i'm francine lacqua in london.t few minutes, deutsche bank and commerzbank have ended talks on the future of both lenders thrown in the question. let's bring in what we are looking at right now. deutsche bank actually gaining on the news and if you look at commerzbank, it is down 2% on the news. the agreement forces deutsche bank, it one of europe's dominant financial institutions to really come up with a new plan. we call it plan b but it is the fifth turnaround plan because they want to try to allay investor concern. you see deutsche bank gaining 2.8%. this get straight to the bloomberg business flash in new york city. bank anddeutsche commerzbank as we have reported have formally ended merger talks. the banks have made a decision that risks are too big surrounding merging. there were opposition from labor unions and other key stakeholders. elon musk promised tesla would stop losing money and it turned out to be premature. posting a bigger than expected loss in the first quarter. tesla planning $2.5 billion in ca

i am francine lacqua here in london.issan in the government of japan rejecting renaults call to engage in merger talks. relations between the partner companies hitting a new low following an intense relationship after the arrest of former reliance leader. apple says it removed several parental control abs over security concerns. this is a rare response. the company is eliminating competition to its own tool. meant to manage groups of devices for employees at apple says they violate app store policies. double-digit pace of growth for phillips in some markets is being driven by electric toothbrushes. the company isn't offering discounts. instead phillips is expanding its range to cover all budgets. the giant stepping up launches to battle the slowdown in china. the chief executive has concerns about the euro area economy. >> some countries are doing well. other countries don't. flat to lowee a single-digit market growth in europe. >> business flash sending it back to you, francine. francine: has king dollar reached its pea

joining us is francine lacqua, the woman herself.ly a turnaround for the global markets unit at credit suisse. francine: and you can see that on the share price. the stock price is up 3%. if you look at year-to-date, 25%. tidjane thiam was trying to tell us it is too quick to cry victory but it shows resilience. two concerns on credit suisse in the last quarter. global markets and that beat estimates, and the other was equities. when you look at some of the equities performance, which was one of the main concerns last quarter, they also beat u.s. rivals. he was pleased with his that. we talked about client activity. he said client sentiment is better than january but that is not that difficult. he said a lot of clients are still actually quite focused on cash because they don't have the stomach quite yet to go into the markets. overall, he painted a pretty optimistic picture for the future. anna: interesting. januaryn the tliv blog and february being described as it dragged by the business, but march looked markedly different. what a

heathrow ceo spoke to francine lacqua. >> we are preparing for a no the worstt, that is case we can seecine: stockpiling? >> there are some things we are stockpiling were we need vital supplies in the airport. used for a patdown, swabs, things like that. we have been working with the government and the eu and u.k. so they understand what the .arriers will be for aviation they have done a good job with aviation. they understand it is the enabler for any other trade. heathrow, the biggest airport in the u.k. is important to european nations as well. there is an agreement in place that planes will keep on flying even in a no deal brexit, that is a big step forward. francine: do you have a idea how security for passengers will work? >> that will remain -- no major changes. even in the case of a no deal. about are being pragmatic how we make this work. even in a no deal brexit, the airport journey will have little changes. you can book with confidence and expect to travel with ease. there may be additional passport on the european and than the british end. the u.k. wants to be sure we are op

i'm francine lacqua in london. to oil after the u.s. spurred higher prices by tightening sanctions on crude, prices are back down to where they were before the announcement. what is on the agenda this week? >> it is a busy week for earnings as well as geopolitically for the oil market. runis in its longest bull in 13 years. the latest data on where positioning is an oil market shows that hedge funds are betting almost 14 times more that prices on wti will go higher versus lower. side, we havete heard from petrochina. than expected production earnings that offset some weakness and refining. we also heard from bp today. the big takeaway was boosting the cash flow. the first quarter earnings as well as on thursday, iranian sanctions are back and play. president trump will not extend the waivers to countries currently importing crude from iran, greece, india, japan, south korea, taiwan, and china. it will be a busy week on the corporate front and the geopolitical front. >> let's get straight to the bloomberg. it is viv

i'm francine lacqua in london.artphone is getting reports of screen failures on review units. the giant says they will investigate the issue. since i will be aiming to of her fiasco like the introduction of to recall that led after some devices started bursting into flames. chief executive of tesla elon musk spoke to investors in palo alto. driving computer designs called the homegrown chip the best in the world by a long shot. >> that is objectively what has occurred. not best buy a small margin. best by a huge margin. francine: it would not be the first time that he overhyped something. let's bring in matthew. we're also with neville and sonja. on samsung, what is behind the delay? >> the phone has proven not to be very robust. after a couple of days, they were finding ways to break these phones. we have these devices in barcelona and something that is foldable and droppable. how will it last? it is proven not to be robust enough for that. francine: where do they do next? can they change it quickly? is it a disas

tom keene in new york, francine lacqua holding court in london. y, but i'm distracted by deutsche bank. it is a standalone strategy. francine: yes, you are right to focus on deutsche bank and we will continue focusing on deutsche bank. we are hearing from the chief executive also saying he expects to take part in deals regarding asset management. the story i am following closely as if you look at what president xi was saying in his speech, he seems to be signaling he will give trump what he wants in the u.s.-china trade war so things could be moving in the right direction quickly. tom: maybe they are saving face. right now with our first word news, here is viviana hurtado. forana: time is running out theresa may and her plan to get the u.k. out of upcoming european elections. she is unlikely to put her brexit bill before parliament next week so probably will not get it ratified before the european elections. that vote will likely mean losses for her party. kim jong-un morning the current -- off the korean peninsula is at risk, accusing faiths. of b

francine lacqua spoke with ana botin about the banks plans.l be investing $20 billion in digital. billion, most is digital. it is quite a healthy ratio. in terms of scale, we are there with the biggest banks in the world. fourth or fifth in the u.s. depending on how you measure that. we have enough scale to invest across the globe. one of the ways we are to work more for countries like the u.s. and countries where we do not have the profitability we want. your returns to shareholders is probably one of the highest out there compared to rivals. when were your share price fall? ana: you tell me. it is frustrating. we can put it in the box of european banks, although have our business is in america. it is a question of interest rates in europe. we were at seven euros two years ago. we have more capital so we took our capital from a 27 to 1130. a return on tangible equities was from 10 to 11.7. our share price lower than a few years ago. having said this, what is important is our earnings-per-share -- we also had adverse effects. arranged against

francine lacqua and tom keene.tion, open ramin and catherine mann, and on we go to various dignitaries. -- lupin rahman and catherine mann, and on we go to various dignitaries. it has been hours since we last saw dr. frenkel. francine: when we look at the end of monetary policy and the fact that it is being extended, what does that mean for global growth? the end of monetary policy deserve some clarification, so you main lengthening -- mean lengthening the period we will have low rates? francine: yes. jacob: though rates by themselves will not create growth. by themselves will not create growth. it has been now 10 years and monetary policy has tried to give the space in the room for those other policy instruments to come up. as long as the other policy instruments do not come in, monetary policy alone will not do it. low interest rates that are exceedingly low create distortions. they direct investors into the financial markets. we want them to invest into growth and services and plans and equipment, so we flew --

that was world bank ceo kristalina georgieva, along with francine lacqua.ing our coverage now of the imf world bank annual spring meeting, tom keene and francine are standing by with one of the hosts of the meeting, the managing director of the imf. tom: thank you so much. the news flow extraordinary, but all of that pushed aside. we welcome the grandmother christine lagarde. [laughter] carol: newly minted grandmother --francine: newly minted grandmother. tom: everyone fine and well? christine: everyone doing well, now we will look to the future. what is delicate at the moment is moving from what we had assumed would be a synchronized growth a year ago to what looks like a synchronized slowdown at the moment. you actually try to understand the roots of that and identify the policy that countries can apply in order to go back to roaring growth, which we are still hoping for in 2020 because we believe that while this year will be at 3.3% global growth, next year we will focus on 3.6%. francine: how much of a concern is it when they have to roll this back? chr

joining us from zurich is francine lacqua, with whom he was speaking. very good to have you.is, credit suisse under a lot of pressure about the global banking business. he must feel a little vindicated today. how did he turn it around? francine: i think overall, the move where the chief executive was he couldoom finally smile about coming around. in costld do more cutting in that unit. at the time, equities were worried about it. global markets also deemed better-than-expected. he keeps on saying this is about having a model which is robust, so they wanted to give a chance to global markets to get up on their feet. he says it is not a trend that can continue forever because. haverever because you will good and bad, but at the moment they don't have too much pressure for cutting costs or finding other way around it. david: that raises the question, what comes next? is it more of the same, keeping strategy? are there other businesses you can get into, or daresay mergers and acquisitions? francine: we did ask about mergers and acquisitions. every day we hear about deutsche bank

francine lacqua, what did we learn from embers eddie? bout the tools of the central bank going forward. the tone was more optimistic about world growth, may be more pessimistic about some of the european countries. we talked a lot about banking and the need to clear the market. tom: nice summary. i would emphasize, the immediacy ,f fixing global banking particularly e.u. banking, front and center. here is viviana hurtado. viviana: a lightning rod for criticism over immigration policy is leaving the trump administration. bloomberg has learned online security secretary kirstjen nielsen was asked to resign. the president is said to want a strong law enforcement type figure in charge of the department he is said to be frustrated with a border and a system that has been broken for many years. the british prime minister is hoping to restart brexit talks through chief rival. over the weekend, theresa may defended her decision to work with labour party leader jeremy corbyn. she says without his support, the u.k. may never leave the european union

tidjane thiam spoke to bloomberg's francine lacqua. tidjane: it is market dependent.ere is pressure, with less capital in a market like this is a satisfactory performance. this is why we did hard work. is give them a chance. three years of deep cuts, it is important to be stable. restructuringh there may be upsides for us to take market share and equities is strategically important for our business. francine: take market share from who? tidjane: we do not mind. available. we are strong in the americas, we are gaining market share in q4 2018. my heads of equities tell me do not be too/. -- too bullish. results does not mean we have solved every problem. we have revenue and leverages up 31%. we have optimized our collateral management and consumption to make sure the business stands on its own. cash, we are investing, with recruitment. our joint venture up 23%. revenues, what they do a structured products for our ultrahigh net worth. services, it has worked really well. we are repeating that in asia. person,n by the same who will do the same thing for our asian client.

anna edwards is in for francine lacqua. we are in the heart of the city.city and knows finance across europe where he is chairman of bnp paribas. we're thrilled he can be with us this morning. we will begin the one-hour conversation and will have to leave it to a number of minutes. the question for me which i saw at davos and even more now is the chronic nature of negative interest rates. is this an experiment that has failed? how is bnp paribas adapting to the reality of negative interest rates. >> i would not say that negative interest rates policy has failed. in the given context, we know it is the cost crisis context. without this, i would seem more harshness and difficulties. and understand the decisions that are, in a nutshell, continuing the policy that is decided in the past. we know this, but monetary policy decided to be not in the banking sector and we have to adapt. we reduce cost. we have a business model that can cope with this, but we need to adapt for sure. tom: you were front and center on the negotiation with greece. we're seeing a german

i'm francine lacqua in london.on the ftse set to enter bull market territory today, rallying 20% from its low point. with ongoing political uncertainty, what can investors inspect -- expect? my next guest is a securities regulator. welcome to surveillance. great to have you on. aboutl, we talk a lot turkey, brexit, and political uncertainty. what makes you worry for the next 12 months? >> good morning. what is your biggest risk out there for europe and italy? actually, we have a moment in europe and in the eurozone. actually for the president of the ecb. we have to week that think about the raising of interest rates. especially as it is related to a situation where you have a negative interest rate and a of the in terms trillions of dollars of negative interest rate securities. and that is something that we have to face. survive is something that is interesting. it is not the case that they are discussing monetary policy around the eurozone. it to -1%.ng decision,een the bringing it to value, that rate of financing

guy johnson in for francine lacqua. i'm tom keene in new york.e dame and will have reports across all of bloomberg. be author of france will here for the next hour. at your side of the pond, we have seen subpoenas come down for various banks. deutsche bank is the name that sticks out. lawmakers are subpoenaing financial information related to story andbusiness whether or not actually this was stained in at was variety of ways that they wanted to investigate. marty, we have lawmakers subpoenaing records. what are they looking for? they want to see if there was any inappropriate relationship between deutsche bank which is donald trump's lender of last resort for decades. whether there was some untoward relationship. guy: what does that mean? is this russia related? is this how financial reporting works? marty: it could be any of those things. there are some suspicions that deutsche bank bent its own rules to help donald trump with his real estate empire. and somehow they would be treated favorably under his presidency. he would presumably have acce

francine lacqua has the day off. lanka, where 290 people were killed in easter sunday bombings at churches and luxury hotels. a nationaleclared emergency. officials now blame a local muslim extremist organization. beenozen suspects have arrested. we want to bring in bloomberg's correspondent ft. sri lanka. give us a sense of what it is like on the ground and what the fear level is. >> there is a sense of unease. yesterday was the bloodiest attack the country has seen the civil war. curfew,rnment set in a put in place for tonight, and there is a call for emergency, inause they want to bring laws that will allow them to peopleterrorism -- arrested on terrorism charges. this is a local organization, but there is concerned they may another group.y tom: thank you. we will speak again with her. right now with first word news is viviana hurtado. viviana: saudi arabia and the united arab emirates writing another check, pledging $3 billion to sudan. its longtime president was ousted this week. most of the money will go toward

we go back to francine lacqua, standing by with a special guest. ancine: we are here at the imf meetings. one interview i have been looking forward to all day, the president of the south african reserve bank. thank you so much, governor, for joining us today and giving us a little bit of your time,, because i know you have a very busy schedule. after your central bank kept rates unchanged, economists were asking, what does it take for your central bank to cut rates? do you need a recession to go lower on interest rates? >> we hope we will not see another recession. we were very clear about our policy. target.le inflation we have been worried for some inflation the fact expectations were either at the top end of the target, or outside of the target. two years ago, we started communicating we would like to see inflation expectations come closer to the midpoint of our target rate. inflation outcomes have or justflation is at below the midpoint. what is more important is the expectationslation expectations, and they are the lowest in a long time. have l

bloombergs tom keene and francine lacqua with another key voice in washington, d.c. guys? is near the end. amongo opportunity central bankers, finance, and the leadership of the international monetary fund. it was a delicate moment. a delicate moment. they did the photo op. francine: all of the attention when we talk about trade. you are smiling for the pictures. one man always smiling is the finance minister of canada. thank you. tom: there is always good news in canada. francine: there was also a little bit of a slow down. you worry about the canadian economy? >> my job is to worry about everything. in terms of the canadian economy , we had a slow down because of changing oil prices in 2018 and we had a particularly good month last month. we are hopeful we will see a positive change in the second quarter which will be good for our economy. francine: out of all the finance ministers of g20, you probably know steve mnuchin more than anybody else. what does he tell you about trade, about u.s. and china? will they find a deal? bill: i do have a good relationship with steve m

executive chairman discussed the strategy and some of its recent challenges with bloomberg's francine lacquahe next few years in technology and digital. it is about $5 billion total per year. of that, $2 billion is in digital. to run the bank, transform the bank, so it is a healthy ratio. in terms of scale, we are up there with the biggest bank in the world, so forth or fifth in the u.s. depending on how you measure that, so we have enough scale to invest, which is one of the ways we are aiming to work more for countries like the u.s. or other countries where we don't have the profitability we want, so we will really take advantage of our size globally. francine: your current chief executive, i asked you in february, is he here to stay? does he have the confidence of everyone? will it be settled legally? >> i think we are moving forward. the team is very comfortable. we have a talking here yesterday -- top team here yesterday. we now have the rest of the group. he is a good leader. we work great together. we have an amazing team. we are very optimistic about the future. francine: what happen

bloomberg's francine lacqua spoke with britain's chancellor of the exchequer philip hammond at the imfer he supports a permanent customs union if that was required to bring a deal across the finish line. hammond: we've gone into these talks on the agreement that we need to leave the european union and end freedom of movement, but beyond that we haven't set out red lines. we are prepared to discuss anything they put on the table. we know this is one of their public demands, a custom union. it is not what we set up to deliver, but we are prepared to discuss all of these things with them. just because they've put it on the table to the main we are going to accept it, but we are pretty talk about it. francine: but personally, would you accept it? chancellor hammond: it is about the government's position, and we are prepared to talk about it. francine: many are wondering whether theresa will go. is it better for her to stay beyond -- theresa may will go. is it better for her to stay beyond the extension? chancellor hammond: the prime minister has said she will leave once she has done the de

was sent had their chairman -- that was santander chairman ana botin speaking with bloomberg's francine lacqua. mixed economic data this morning. the market services data was better than forecast. two diverging reads for the services economy. adp figures disappointed a little bit. mortgages were up more than 18%. all of that needs to get factored into gdp growth models. meantime, we did see the s&p 500, off its highs after manufacturing data, up 2/10 of 1% nonetheless. amd the bests, performer in the s&p 500 right now, up 8.5%. the fda is investigating seizures potentially related to vaping products. that is hitting some of those stocks today. caterpillar backlog growth is going to turn negative very shortly, according to deutsche bank, which has downgraded the stock off the back of that. the backlog growth will turn into slow down and revenue. if you remember back in february, ubs had already said there would be a decline. that is causing some jitters for that stock today. guy: tobacco stocks also trading off here in europe, adding to what you said. we've also got weaker u.s. data on that fro

guy johnson and for france a look. -- for francine lacqua. bring it up right now. know, year to date. 13% on the dow. 16% up on the s&p 500. 29% up on the fall nasdaq composite and other glorious worldwide results as well. , i missed the last 100 days. what do i do now? risk depends on your tolerance. it has been an absolutely terrific year. it is very possible that this will continue for a while. test 3000.l probably think it is possible the markets go up another 5%. and we had a dislocation later in the year. tom: i have to make a coupon equities relative to the outperformance. is there a total return place in fixed income. coupons.ing >> i think, actually, yeah. as we discussed earlier, they are anchored here. i think taking the yields on the treasury and in europe, when you bunds, thenes -- curve is quite steep. the duration for the tenure part of the curve is quite decent. part of the curve is quite decent. there is no real inflationary pressure. central banks are very patient. if more u.s. investors put more money to work in the german bond markets? you've go

to great question of francine lacqua, which is how haiku the price of oil go. this is what -- how high the price of oil go? this is what he said. >> $100 a barrel. i do not think that is the base case. our base case is $82. there is a chance prices keep rising, because headed into the year end, we have a fuel specification change which will lead to a big jump in oil demand globally. david: one of your favorite subjects. for those of us who do not cover oil, how much of this is things like the iranian sanction and how much is the fundamentals that underlie the oil industry? alix: it feels like it will be the former. when you have iran out of the market 500,000 to 900,000 barrels of oil, the issue is if saudi arabia and russia get in there and produce enough, that means they have less capacity. if libya gets bad, there's nothing to make that up. that would lead prices higher. he is talking about a demand story. tankers have used different types of fuel starting in 2020. a huge change in the shipping industry and you need a certain type of crude. you need brent cr

francine lacqua spoke with the company's ceo about that strong performance.highis consumer confidence, let's slow down because incentive to produce is paying but it is still positive growth -- is fading but it is still positive growth. we will take advantage of that. asia is doing better, china is doing better. numbers are still below q1 2018. 2018 in asia was strong. we are seeing below that, but healthy. europe is always a pressure zone. francine: because of what? interest rates? >> germany, the car industry is .truggling we have the good fortune of , where swiss bank everything is very good and we are doing extremely well. we are the first to announce the european banks, so i cannot talk about the others. we are pleased with the performance, we are pleased for our people, particularly in global markets. we were under intense criticism and intense pressure, and i'm sure we will have difficult quarters, but what we wanted to show is it is a viable business and it is now delivering by working more closely with wealth management, which is what we have always w

francine lacqua redacted today.nd michael i want to get a sense of the u.s. economy. the economy in europe looks like it is going nowhere in a hurry and we look across the atlantic and the economy looks like it is doing reasonably well. does the fed need to sit on its hands? michael: i think it is. data sincec december, there is some weakness. each piece of weak data has been followed up by stronger data. the economy is pretty much where it was six months ago and with the exception of housing, it looks a little better. guy: did the fed raise rates to quickly? michael: i think the fed was justified in making its moves. there is an old saying, three steps and a stumble for the third. they got a little more than three steps in place. they got to a point that financial markets started to become nervous, but there is no sign the fed did damage. tom: the mother of all recoveries, the most unloved recovery ever. what do you do now? what is the strategy for people a little bit behind or people like me in all cash? michael:

the group executive chairman , wee to francine lacqua started by asking when the plan would lead to job going to be investing 20 billion into technology of digital. it is about 5 billion total per year, about 2 billion in digital. transforming the bank, rather than investments for the future is quite a healthy ratio. of scale, they're are right up there with the biggest banks of the world. invest enough scale to across the group, which is one of the ways we are aiming to like in the u.s. or other countries we don't have the profitability we want. so we're going to really take advantage of our size. matt: i have asked you in february, she here to stay? do you feel like your questions are settled, and will they be settled legally? >> i think we are moving forward and the team is comfortable. we have had all of our top teams here yesterday. we'll have our digital videocast to the rest of the group. we have an amazing team also working. we are very optimistic about the future. matt: what happens for brexit? we have been working for months to ensure that all of our customers, and we have a l

francine lacqua will be speaking to their chairman to. and cm -- today.mc markets is plunging, down over 8%. the spendingaving is down, so that stock is definitely under some pressure this morning. anna: thank you so much. back to brexit, theresa may is turning to labor in a last-ditch attempt to find an acceptable the -- deal. >> i'm taking action to break the logjam. i'm offering to sit down with a leader of the opposition to agree a plan we would both stick to to ensure we both leave the european union and do so with a deal. anna: corbyn welcomed the move, saying he would be quote very happy to meet her. this may open the way to a much softer form of brexit. joining us now is bloomberg's u.k. government reporter. great to get your insights this morning. i have been wondering how much we can expect from this conversation between may and corporate. -- corbyn. i suppose it expects of how much they expect from each other. rob: entirely. these are not to people who get not great at talking to people they disagree with, and they disagree with each other quit

ambrosetti francine lacqua is joined by the foreign prime minister. francine: he was also for many years and insider in the workings of brussels at the commission. thank you for giving us a little of your time. yesterday, bloomberg learned that growth will be lower than expected. what does that mean for the budget? >> in italy? well, these are two parties with very different ambitions, and for each of them, delivering on their relative coral promises is much more important than the outcome on the economy and there is competition between the two as to who delivers most, so this is a very unsettling framework. they have the inner conviction or alibi that because italy has not been doing well in terms of growth for many years all past recipes were wrong and they just have to do exactly the opposite of what was done in the past so obviously, it is a risky bet. francine: given all this, will the coalition hold or will we see early elections? mario: a will depend a lot on the outcome of the european elections in may. it is possible the coalition renewed bala

talking to francine lacqua. terminal users can interact with the charts that you see during bloomberg tv programming. g tv a great resource to use. this is bloomberg. ♪ ♪ welcome back to the european open, everybody. we are 56 minutes into friday's trading day session. matt, the ftse 100 fairly flat. some of the losses coming through from the peripheral markets, the ibex and ftse mib this morning. matt: i was supposed to be in battle of the charts today. because we have run out of time, we cannot do two charts, but i was going to win anyway, so why don't i just show what i have here. this is an explanation for the fact that people can get into cash and the market does not tank, because companies are buying back their stocks. the s&p continues to rise as buybacks get up to $1 trillion in white. that is it for the european open. "surveillance" is up next. >> our pledges independence. the fed's chairman planning to save local bank -- federal bank will not out to local pressure. the ideal to go public, what cou

. >> philip hammond with bloomberg's francine lacqua.an exclusive with singapore's minister for communications and information on his campaign against fake news. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. >> we start with treasury secretary steven mnuchin, who says the u.s. and china are continuing to make progress on trade. and they are edging toward a -- speaking of the imf, a detailed agreement that has not been dealt with before. u.s. may face repercussions if it does not live up to its obligations. president trump has renewed his attacks on the labor -- on the u.s. federal reserve sank stocks would be 10,000 points higher if