james bevan, what is johnston going to do? cut to the chase. -- there will be a falling short of any serious challenge to her leadership. seen a not want to be party in disarray. james bevan and sharyn o'halloran. francine lacqua rejoins us from frankfurt, germany. do i go longer short after your conversation? [laughter] francine: tom, you know i cannot say that. we are not allowed to invest. but i did have a good conversation. i will bring you highlights and 55 minutes from now, tom. we did talk about a bit about currencies, but he did say the ecb does not target currencies. i knew that. we will bring you that it goes a conversation about monetary policy and 55 minutes, so we will talk about brexit in the french elections. this is bloomberg. ♪ ♪ this is "bloomberg surveillance." i'm francine lacqua. president emmanuel macron looks to expand his control of politics after his party put him on track. majority cane president mccrone get and what does it mean for his reform? given -- because of the two set to get ae is crushing majority, three quar

james bevan is still with the "daybreak" team.wo pieces of political theater, one of which is the travel ban. the second and more important for markets, is the potential that they repeal of obamacare could falter. million americans could be without insurance for a decade. how would markets interpret this bill if it was dropped on the floor? james: there is a general concern that the floorplans of washing policymaking have been played out in a way that puts real risk on the trump commitment to cutting taxes and deregulating. , the eight team senior members, have 113 years of political experience between them. hefty amount of business experience. team trump is deeply competent. whatever you anticipate about donald trump, his team behind him -- the treasury secretary, all of those people are very capable. however, getting through the political format of washington is proving really problematic. assumes of people would with a big republican majority in the legislative area of government, he would find is difficult. i think people will

james bevan there. a last look at the markets. surprisingly quiet. he pound has boosted as james was saying a lot of the international stocks. that's business. i will have more tomorrow. see you then. the duchess of cambridge has visited hospital today. donald and their son baron on the streets of washington dc celebrating president trump's inauguration. but since that january weekend, melani and baron have been living at trump tower. the first lady insisted she wouldn't be relocating to the white house until their son had finished the school year. now after nearly five months of living apart, melania trump announced that she and baron had finally moved into the white house. looking forward to the memories we'll make in our new home, hashtag moving day. a decision to stay in new york raised many an abrow. the washington post reported it as unpress didn'ted and described the decision as flouting the most basic of all first lady traditions. the huge costs of maintaining kurt at trump tower was an issue with the taxpayer forking out $145,000 a day. melan

joining us is james bevan, chief investment officer at ccla investment management. good to be here. whilst we are chatting away, mark carney‘s delivering his speech, this is all ongoing in london at the moment. absolutely. we can see there the governor of the bank of england, just following on from philip hammond, the chancellor of the exchequer, they are all discussing brexit, the negotiating stance. at the same time, we have barclays unfolding, a serious fraud office investigation, criminal charges, just gives your thoughts on all of this? a busy day? as a microcosm for ba rclays this? a busy day? as a microcosm for barclays itself, this is relatively old news, and if there is a fine of say £200 million, that's worth around two bases points off capital. this is a bank trading on 0.7 with tangible book value, in other words cheap given that banks tiply shouldn't trade to discount to their tangible book value. can i ask though, four individual bankers are also being charged, john varley one of them to who is really respected... a man of immense integrity, absolutely.

the kindness of strangers seen this morning from james bevan.surprised that foreign owners, a prominent force, are still there. will they remain as the brexit train goes along for the next couple of years? gilliard, 1.02%. i am off to digital radio. i will see you in 24 hours. guy: manus cranny, thank you very let us talk about what we are -- we will come back to the gilt market. breakevens versus the 10-year is one of the most interesting stories. group, it looks like they have gone ex-dividend this morning. it is trading down. let us flip it over to the upside because the market is just down, but not by very much. upside, we have a merger that seems to be taking place. think year -- bankia is a nationalized institution. this is the spanish government's way of time to get this home thinking nationalization story to work better. is pricing that positively. what is interesting is the mining stocks. anglo is trading higher. glencore is up quite nicely. what you have seen overnight is quite a strong bid being attached to the iron ore market and oth

let's get detailed analysis of all of this with james bevan, chief investment officer at ccla investmentf about the co-op bank? no. this is a welcome relief but by no means the end of the chapter. so the hedge funds that have had to swap bonsall equity now have to raise £250 million. retail investors will get back 45p in the pound but it remains to be seen if the customers still wa nt to to be seen if the customers still want to be in the bank at all. tesco, trouble there, these redundancies at head office. does this speak to a wider problem in the retail sector. certainly does. tesco isa retail sector. certainly does. tesco is a retail bank which come out with results ten days ago and declared a margin of1.5%. results ten days ago and declared a margin of 1.5%. they've made a commitment to getting those margins up commitment to getting those margins up to 3.5%—4% by 2020. those margins will come in part by squeezing suppliers, in part by getting customers to pay more money in when they go shopping and inevitably by controlling costs. that's what the headcount reduction today is all abou