they reported an operating loss of 1.2 billion swedish krona, compared with a profit a year prior. i'm delighted to welcome borje ekholm the ceo of ericsson thank you very much for joining us outline for viewers where you see the biggest problems for your industry and ericsson specifically at the moment >> thank you it's great to be with you. yes. we had an unsatisfactory quarter. our sales were down 13% if we adjust for currencies. we see that it is a tighter market for telecom and for our market in general it's a tighter market condition. we see that relatively concentrated in europe and latin america as well as the middle east and africa. that's where we've seen tighter markets. and we've said that we believe the market will decrease a bit more than we anticipated before. >> looking at gross margins for the second quarter, it's a precipitous decline. we know prices always go down. do you not have enough in the pipeline in terms of new product with greater margin to offset that what we see is a couple of things impacting gross margin. we see here that part of it is that our legac

broadly speaking, we are overweight the euro versus the dollar and we are overweight the swedish krona versus the swiss franc an overweight the euro versus the swiss franc. as you know, the swiss franc is a safety currency. with the political risk out of down, we think that will help the euro and take some of the safety trade away from switzerland. vonnie: thank you and we always appreciate your time. let's check in on first word news. president trump legal team is making headlines again. according to the washington post, some of the president's are trying to undercut special counsel robert mueller who was investigating ties between the trump campaign in russia. the post says the lawyers are building a case that mueller has a conflict of interest. is thele, john doubt lead attorney on the russian probe. he replaces the longtime trump lawyer who is set to be part of the team. the u.s. government will ban citizens traveling to north korea. an american student died after he had been imprisoned there. he was in a coma when he was released from north korean prison. the imf has ended two yea

a lot of market participants have been looking for a stronger swedish krona.keeps underperforming. one of the reasons that we are still relatively bearish on the swedish krona in the near term is precisely because the central bank is unwilling to deliver that hawkish bias. anna: one generally on the outlook of central banks and rates, i know one of your colleagues saying that the biggest risk to markets, not the best case scenario, but the big risk is we see a lot of typing from central banks. that leads to a combined selloff in equities and bonds. is that the biggest risk out there? what chance that happens? elsa: it's certainly a risk to be aware of because the implications are very unusual. we have become accustomed to either risk on or risk off markets. bonds and equities move in opposite directions or indeed markets where both bonds and equities are rallying together. the market where they selloff together is unusual, but it does happen. it runs the risk of seeing dollar appreciation, which many people are not position for. it would also put the risk pari

right now we have the infrastructure minister, not giving a huge impact on the swedish krona.ook at the bloomberg 5872.nal, 9. still with us is andrew bailey, that with us. paul hamill with us as well. thank you both. we had a nice conversation about regulation and what you are doing with ilbor. d-- with libor. do you worry the u.s. will regulate last the industry? and we are therefore, not on a level playing field with europe? >> i think we are in a different world post crisis, where there are much stronger global standards. led by the g20 and the fsb. yes, we talk about it a lot. adon't think there has been fundamental fracturing of the commitments to these standards of regulation post crisis, based of course on the experience of the crisis and what we all learned from it. us should say our system of regulation is perfect, that it will never be revised. history clearly tells us that is wrong. i think it is natural there is discussion in the u.s. about the way forward. i draw a line though, between that and the commitment to global standards. francine: do you agree with that,