page.s, david jim o'neill was on, the acclaimed jim o'neill of goldman sachs.en to his forecast, but he made it clear a 1.50 sterling is something people have to begin to think about. are you beginning to think about ever stronger sterling? david: not really. we see sterling really ekeing out gains. -- to see sterling rising 1.40. 1.50, you have to look at the more political extremes. you have to have a much bigger reverse then we have seen. 1.50, is af we get dollar weakness are pound strength? david: there are two things -- we do not see 1.50 -- francine: what you see 1.40. david:1.40 israeli sterling eking out -- 1.40 is really sterling eking out the gain. tom: weak sterling, higher inflation is a theory, right? when do we break that and make governor carney's 2018? david: we are already seeing sterling dip down to 3%. we think it takes time to get to 2%. we expect it to soft and further. -- soften further. francine: if we do have a weak brexit, will it be perceived as a fudge? if it is perceived as a fudge, with a concern go away? robin: i think we have to

haidi: that was jim o'neill.shua a three jail sentence for contempt of court. this sentence is related to the occupy protests of 2016. joshua wong and two other activists were convicted over the role in storming a government complex a couple of days before the occupy protests began. the 21-year-old joshua wong one of the key student pro-democracy leaders in hong kong. it appears their lawyers launched a last-ditch effort that has indeed failed. to be the outcome, they would have to immediately returned to susan to -- to prison to finish out their sentences. handed a three-month jail sentence for contempt of court. coming up, the need to speed up race and how it is impacting lithium a mining. this is bloomberg. ♪ g. this is bloomberg. ♪ haidi: let's check in on oil prices after the first retreat for a bti in a week, trading at the highest level in three sitting abovent settin that $70 level. concerns, perhaps a pullback caused by concerns this rally is not sustainable and we could see some action when it comes to

that's the view of lord jim o'neill, the former treasury minister.n speaking to our economics editor kamal ahmed. in principle, i share the views of many that brexit is a really weird thing for the uk to impose on itself, from an economic perspective. but i quickly add at the same time, i have felt for a good couple of years, as important as brexit is, it isn't the most important thing facing britain's future. things like regional inequalities and the underlying and related productivity problems, much bigger issues. do you think now, with this global growth and possibility of productivity being better, the british economy is going to do far better than you expected a year and a half ago? i certainly wouldn't have thought the uk economy would be as robust as it currently seems. but, that is because it looks to me like some parts of the country, led by the north west, are actually doing way better than people seem to realise or appreciate. as well as this crucial fact, the rest of the world is doing way better than many people would have thought a year

tom: there it is, jim o'neill yesterday.al forecast, but nevertheless the direction is where. you just assume with the flows that we have seen that it's just an ever stronger pound sterling? charles: not really, no. --you take a dollar $.50 $1.50 and we are moving up to the euro rate against the stirring against the current , i don't expect sterling to appreciate against the euro. i expect the euro to be fundamentally strong. tom: this underscores the complexities of looking at each currency pair. it's not just about the euro are sterling. cable, whichhave is the pairing that we look at the most. charles, if we go to that chart now, we put the level at 1.60, but we will push it out for regular listeners in london. when you talk about the pound, is there an optimum level for the british economy? charles: where we are against the euro is extremely competitive in an economy with a large deficit of meeting to rebalance the payments. in that sense the region is fine. if we think the euro is going to 1.30, then the pound on that b

control us we'll go somewhere else and that's why even a very very senior goldman sachs employee jim o'neill has said if the pharmaceutical industry is not careful in a few years' time it's going to be in exactly the same situation the banks are in today with huge public contempt and hatred for the fact that they have destroyed the medical knowledge of the last hundred years seventy years fifty years. through their monopoly status and through driving for ever higher profits rather than trying to trying to do something to improve ordinary people's lives you know goes of ours because williams and his. to the will you report is that a factor that you always do anyway or at least the losses you don't go as far as the british labor body was over that it should be i'm happy to go that far i'm happy to say should be nationalized but actually i think it's a i think is a bigger issue than just looking at old fashioned nationalization for example yeah ok the government might take over a pharmaceutical company but i don't really care if the government is involved in researching and marketing suntan lot

control us we'll go somewhere else and that's why even a very very senior goldman sachs employee jim o'neill has said if the pharmaceutical industry is not careful in a few years' time it's going to be in exactly the same situation the banks are in today with huge public contempt and hatred for the fact that they have destroyed the medical knowledge of the last hundred years seventy years fifty years. through their monopoly status and through driving for ever higher profits rather than trying to trying to do something to improve ordinary people's lives you don't because of ours because williams and his. the the all of your report is that a factor that's related anyway or at least the losses go as far as the british labor body was over that it should be i'm happy to go that far i'm happy to say should be nationalized but actually i think it's a i think is a bigger issue than just looking at old fashioned nationalization for example yeah ok the government might take over a pharmaceutical company but i don't really care if the government is involved in researching and marketing suntan lotion fo

control us we'll go somewhere else and that's why even a very very senior goldman sachs employee jim o'neill has said if the pharmaceutical industry is not careful in a few years' time it's going to be in exactly the same situation the banks are in today with huge public contempt and hatred for the fact that they have destroyed the medical knowledge of the last hundred years seventy years fifty years. through their monopoly status and through driving for ever higher profits rather than trying to trying to do something to improve ordinary people's lives you know because of ours because williams and his. the the all of your report is that a factor that's related anyway or at least the losses go as far as the british labor body was over that it should be i'm happy to go that far i'm happy to say should be nationalized but actually i think it's a i think is a bigger issue than just looking at old fashioned nationalization for example yeah ok the government might take over a pharmaceutical company but i don't really care if the government is involved in researching and marketing suntan lotion for

they are totally talking jim o'neill's call on sterling at 1.30. bloomberg. ♪ alix: this -- kaylee: this is bloomberg daybreak. you are looking at the hewlett-packard enterprise greenroom. in the next hour, john allison, former bb&t ceo. now to your bloomberg business flash. saudi arabia's sovereign wealth fund is going hollywood. the saudi fund is in talks to invest more than $500 million in an endeavor test in endeavor. -- in an endeavor. it could range between 5% to 10%. -- represent stars like -- energizer holdings has agreed to pay $2 billion for specter band -- brands's business. a 1.7 billiontake dollar charge in the fourth quarter of 2017, on remaining economic issues from the deepwater spill. the 2010 accident in the gulf of mexico has cost bp more than $60 billion in compensation and penalties. that is your bloomberg business flash. alix: we turn now to wall street beat where recover three things they are buzzing about. bitcoin for the wind. how it helped hedge funds soar more than 1000% this year. in the money, the big investor strike on

that's the argument of lord jim o'neill, the former conservative treasury minister and remain supporterf the possible effects of brexit are likely to be "dwarfed" by the more positive figures. a charity says one in three young women in the uk are embarrassed to attend smear tests for cervical cancer because of issues with body image. jo's cervical cancer trust, which surveyed more than 2,000 women aged between 25 and 35, said it was worried about the impact on screening rates, which have fallen to a 20—year low. the key finding which has come out is that one in three women researched say that body image is a significant factor. that is a big concern. for those under 35, it is the most common cancer. potentially, lives could be put at risk if they are not going to screenings. a man's been rescued after a week of being cut off by the snow. the 64—year—old, who lives in dumfries and galloway, had been attempting to reach the nearest village, but his path was blocked by deep snow. a mountain rescue team tried to drive to him, but had to abandon the car and go on foot to help him. they final

we will talk to jim o'neill later. this is bloomberg. ♪ ♪ tuesday morning, good morning.rkets the european open. i'm guy johnson alongside matt miller. castrate less than 30 minutes away. trade less than 30 minutes away. we have conflicting commodities above $70rude closes a barrel for the first time in three years. barclays warns iron ore could collapse to $50 a ton. what are the implications for global inflation? asia marches

we have ing and jim o'neill says that we could go to 150.more dollar weakness than pound strength. >> the pound's side of the argument, it fell 15% on the referendum results, i still think because it go down by 10%-15%. there is still big two-way risk. >> for the last 10 years, the fed, bank of japan, ecb have all attempted to use the policy of the valuation -- devaluation. having a weak currency probably reflects something. goodine: i actually have a trade weighted euro to show you second --ond -- and a in a second. i had someone come on who said that the chance of a fresh general election have increased? what are the chances of that? >> i would say about 20%. there is a small chance of a big think happening. that is one thing that those of us british people struggle to get our heads around. where used to a sort of mainstream, stable, everything is basically all right sort of thing. now the labour party thinks that there will be another general election. they thought there would be general election in the second half of last year. the conse

francine: gina, i don't know if there's an easy fix, but someone was, jim o'neill, was talking about northern powerhouse. he said one thing that could be good at of brexit is bridging the divide between the south and north. gina: it is interesting. all the ills with been putting out the door of the e.u., can be at the door of westminster. manpower asked has to come back to westminster. there is no bandwidth in westminster. one of the pluses could be more devolved powers to different regions. i think you will find that there's more local government increase. anand: one of the positives that has come out of the referendum and brexit is that we've become more self-aware. policymakers realized there are inequalities. our discourse has changed. we are about these things now. you can ask whether the referendum was a price worth paying, but it is a good thing that we are having it. francine: thank you. .nand and gina miller we will be talking a little bit about regulation. coming up, the fda accused of creating an anti-competitive market. we will discuss that next. this is bloomberg. ♪ fran

the message i have heard interview after interview, including jim o'neill, is it will continue to defuse across london. do you see that? is it a better united kingdom, even with the soap opera known as brexit going on? >> i do think the bank of england has done quite a good job managing the transformation of the financial crisis and we see reasonably strong economic growth. countries, ithese want to go back to technology. one of the things playing well within the united kingdom's technology. i said this during a couple of forums, perhaps the biggest economic event was the decision to make london the center for google, with 7000 engineers in london. the u.k. has got to have an outstanding academic base that is at the forefront of what is happening with technology and there is not a business in the world that is not deeply impacted by technology. if we could keep the borders open, and use that plan to allow a barclays to be in the forefront for mobile banking and digital safety, that is good for the bank of the u.k. >> europe, many people thought was dead and gone years ago and would be a

the former treasury minister and remain supporter, lord jim o'neill, tells the bbc that global growthosting britain's economy far more than expected. and on the markets: this is how the dow closed on friday. after months of deadlock, germany has moved a step closer to forming a new government. the centre—left social democratic party has voted to enter into new coalition talks with chancellor merkel‘s conservative bloc. a partnership between the two could signal a step change in economy policy. over the past two years, germany has recorded a steady increase in its rate of growth. rising incomes have helped to boost tax revenue, but merkel‘s government has come under fire for its refusal to spend this additional revenue. at present, germany is the only country in the group of seven major economies, which collects more tax than it spends. in fact, germany has the largest budget surplus of any country in the world. the social democrats want all of this to change. in addition to a cut in taxes for low—income earners, the sdp has asked for an increase in spending on schools, pensions and ho