we are joined by the nomura fx strategist. he sees greater volatility ahead.♪ >> markets are assessing the fallout from the u.k. and tech selloff, turmoil the fed coming up this week. >> theresa may embraces conservative rivals. half of u.k. voters want her to quit. trump renews his attack on james comey, tweeting links were cowardly --

nomura it employs 3000 people in london.ath and beyond , a surpriseer hours decline in same-store sales, down 2% for the first quarter. it had been predicting a small gain. profit also falling shy of projections. the company has also been spreading -- spending more on shipping, coupons, and advertising. the's get back to 50th wharton global form in hong kong, where betty liu is joined by the head of one of the world's largest private equity outfits, carlyle group. >> that's right. i'm here with david rubenstein, the cofounder of the carlyle group and host of the david rubenstein show on bloomberg. >> it is a modestly named show. >> you are here 24 hours. >> that's right. >> that is a very short trip. that doesn't signal the small opportunities. you are here quite often. >> i typically come here 6-8 times a year. billion ofested $17 equity since 1997 in 210 transactions. world's 60% of the population and 30% of gdp, so this is where most of the growth in the world will be. >> you've mentioned you have been here since 1997, bu

giantn the wake of the confirming it is no longer looking to take over i nomura real estate. sliding on the back of that news. nomura's real estate unit is falling the most since march 2011, losing over 12% this morning. post-president says he wanted to tone down m&a. guys. anchor: thank you so much, sophie kamaruddin, looking at some of the stocks and other assets that are moving. breaking news out of the u.k. metropolitan police saying there are a number of casualties from a van collision in the seven north london.n a number of casualties. one person has been arrested as a result of this van collisions your no details about the motives or what exactly is behind this other than right now the facts are that several people have died from this collision and one person has been arrested. yvonne: don't want to jump to too many conclusions at this moment, but this is a very fluid situation. police were called to the scene around 12:20 a.m. londonambulane incident. no details yet immediately available at this moment. throughas been going such a tough time already. they are still re

nomura has picked frankfurt is the headquarters for its operation after the u.k. leaves the block.an's biggest brokerage will start preparations this month to form a base in the german financial center. they will seek regulatory approval and find office space before transferring fewer than 100 employees from london. $1.9 billion raised in this second biggest u.s. public offering of the year. shares for $30d each, near the top edge of the market price range. he comes one year after it was formed when its parent company closed the acquisition of cablevision systems. that's your bloomberg business flash. trump's -- todent a president trump's top cabinet secretaries said china still has in north role to play korea. secretary of state rex tillerson appears to have disregarded and earlier tweet from president trump saying that chinese efforts have a. failed. >> we reiterated to china that they have a diplomatic responsibility to exert much greater economic and diplomatic pressure on the regime if they want to prevent further escalation in the region. guy monson is still here with us. it

yousef: next on "the best of bloomberg markets: middle east," nomura takes a bold outlook. bloomberg. ♪ ♪ could are airlines suspended all flights are it stocks face another tough day. let's get in bloomberg news. injure, a dramatic escalation here. next, i of what happens do expect the government to move forward? .uts that need to respond we have a lot more questions than answers. what happens if your citizen living in the united arab findtes or a businessman back and forth. is they have escalated this two level we have never seen and it is certainly on president. drastic right off the bat, it makes it difficult to walk this back. qatarestion is how will respond. they share this gas field with iran and lastly support for political islam is at the root of all the concerns that saudi arabia has. we will be monitoring the business templates -- business invitations for air, shipping, food, and all these other trade ties. how will this impact the u.s. presence in the region? u.s. has its central command based. how will this play out? i don't know. this comes closely after u.s.

tried three former nomura bond traders. began deliberating after a month-long trial of the former traders. the three are accused of lying to customers about the prices of mortgage-backed securities. spoken publicly about plans for building a self driving car. ceo tim cook described autonomous vehicles as "core technology" that he views as critical. we see it as the mother of all ai projects. it is probably one of the most difficult ai projects actually so autonomy is something that is incredibly exciting for us, but we will see where it takes us. we are not saying from a product ,oint of view what we will do but we are being straightforward that it is a core technology that we view as for important. well, the markets are almost 100% sure that there will be a rate increase this week, traders are looking for information about plans to unwind the balance sheet. thank you for coming in. deal, and then of course as is always the case, we look at the statement and wonder about rate hikes in the balance sheet this year. >> definit

nomura takes frankfurt as its european headquarters after brexit.fer about 100 people from london. currently employs more than 3000 people in europe, most of them in london. dialogues is ready to set up a base in frankfurt as the u.k. leaves the european union. bed bath & beyond tumbled after hours, following a decline in sales. sales fell 2% in the first quarter. analysts predicted a small gain. it fell short of projections. brick-and-mortar transactions have stalled, the company has been spending more on shipping, coupons, and advertising in attempts to boost online sales. uber has admitted hiring a former engineer now accused of stealing trade secrets. they hired anthony levandowski last august do head self driving cars, something he did at google. kalanick tolds him not to take sensitive material with him, and he agreed. plenty more to come with asia's first market open minutes away. let's get the latest with sophia -- sophie. >> we could be looking at a lackluster end of the week in asia. we had banks lower in the wake of the fed stress test. a

let's stop -- start off with the nomura perspective.ive us a sense what the last few minutes of been like, what you're hearing from clients, what guys on the trading desks are telling you. give us the position. i had to refresh my screen and made sure i was seeing things clearly. around one were point 2%. in this situation, a lot of people in our survey said the sterling against the dollar fell to 1.26. we will have a bit of uncertainty if that is the result. 2015 et result seta silar thing, hung parliament. but really, it was a slim majority. it is still possible for theresa may to hang in. she is actually quite close to 16 seats she would need. she needs to hang on with those seats from northern ireland. it is not over yet. we still have the night to go. if these exit polls are 100% correct, we have a hung parliament scenario, where even an alliance of labor up to ais not adding majority. therefore, the pound is not liking this. in 2010, it took a while to come up with a coalition government. in 1974, they could not achieve it. it too

. ♪ nomura strengthening internal controls.sources say japan's biggest brokerage has acknowledged it has violated local law. bloomberg reporting that a former branch manager mishandled private information, that a laundry company wash house was considering it stock listing. angie: expedia says it sees new opportunities in japan. the country manager told bloomberg it would change the market completely. airbnb has taken the lead in japan, but homeaway says it's focus on luxury vacations gives it an advantage as the market expands beyond sharing individual rooms. reports of the death of brick-and-mortar retailing may be exaggerated. it is opening for new stores, selling skincare products in china. chainerator of watsons plans to open 1400 outlets globally this year, more than a third in china. before we end the show, we talked about china, but let's talk about the fed. voices whenlot of it comes to central bankers, janet yellen, mario draghi, who else? bernankerk carney, ben . have a look at this bloomberg chart we put together. th

nomura says a liftoff in u.k. rates, they say august could be live. you would not concur with this either? james: you are talking about? manus: in the u.k. jame: actually, this is so far ahead. what we really are talking about, is there anything imminent in the horizon? there are too many variables to confident about 2018 or 2019. at the moment, there is nothing on the horizon that leads me to believe we will see rates higher in one year's time. manus: nothing that says rates will be higher in one year's time. i was looking at the gilt market. yearng up on the tw oyeao paper. james: there is not a monstrance uptick yet. the context of the sideways trend. what i do find fascinating is the 10 year yield remains at 1%. the second-largest owner of gitls after the bank of england is the nondomestic investor. why are they prepared to finance our government's debt? in terms of risk the future value of the pound. manus: so, if i take that statement and take rates agreeded, mam i that this is reprised in the propensity to reprice is the upside? james: the yiel

elsewhere in the region, we have nomura leading, down over 13%.1, this after japan said it is no longer pursuing an acquisition of nomura's real estate unit. i want to highlight woolworths, slumping the most in three months. it is sending jitters across the supermarket industry in new york, europe, and now in asia. rishaad: thank you. over theconcluded its weekend pledging to do more. let's get info from our correspondent who was at that meeting. what was the key takeaway? >> you know what, rish, the message from aiib was clear -- it is committed to infrastructure. unlike other multi-development banks, which are seeking to look at poverty, we heard the president say that the bank will boost more projects as the sole lender, even as it works with others on large-scale infrastructure deals. be as a 7 billion -- wants to boost its own credibility and be seen as a real alternative to the likes of the abb and the world bank. , it is 80 strong -- hong kong argentina, madagascar, tonga. membership is rising to 85 by year end. he also says he will keep th

trial of former nomura bond trail say they may have trouble reaching a verdict on at least one chargeey began to liberating last week after a month-long trial of federal court in in connecticut. the three are accused of lying to customers about the prices of mortgage-backed securities. bloomberg has been told the carlyle group expects between $5 billion and $6 billion for its fifth asian buyout bond. the group aims to close a new fund in the second half. competition for buyout deals have increased in asia, with a sovereign wealth funds, pension funds, and a large corporations joining the fray. uber ceo travis kalanick says he is taking a leave of absence without disclosing when he will return. he is handing control to a management committee as a wave of scandals. for more, here is eric newcomer in san francisco. date forno return travis kalanick. and also, he will be stripped of some of his duties, right? eric: yes. at first we thought it might be three months, but now it is totally indefinite. no matter what happens, when he comes back, former u.s. attorney general eric holder out th

nomura plans to strengthen internal controls after it reached treaty laws with the company it took publicknowledge -- >> -- knowledge that it violated local laws. last month it was reported that they mishandled a company. yvonne: googles self driving unit says avis will manage its fleet of vehicles. it is a new partnership. avis shares close up 14%. apple is leasing a small fleet from hertz to test its own self driving technology. rtz closeded up -- he up 13% on confirmation of the apple story. apple and google are driving further into the realm of autonomous vehicles after leasing small fleets of cars. has struck a deal with avis. let's take a look at our tech editor. let's talk about this apple/h ertz deal. it has resulted in a 13.5% increase in the stock of hertz. what are we talking about? >> it is a deal that just involves half a dozen cars. this indicates that these car rental companies can have new relevancy in an era of autonomous vehicles. though stocks were getting battered over the last 12 months. that time 75% over frame over concerned about what their role would be in this ne

joining us is george buckley, the chief economist at nomura. what would be more significant to move the needle in terms of inflation, but also gdp? is it if theresa may stays or what happens to brexit negotiations? george: one of the big parts of gdp iis investment. it does not respond very well to uncertainty. we have gotten far too much over the last three years. i am not sure that investment will respond too positive to that. on the consumer spending side, consumption tends to respond to prices. so if we see a continuation, which we do not think we will of the fall in sterling, then that would, of course, prompt potentially higher import prices and higher consumer prices and potentially weaker consumption. that is the sort of things we are looking at. issue is what big type of brexit this is going to cause. is it going to mean a softer or harder brexit or something in between? could it mean the suspension of talks? we'll have to wait and see what theresa may says in just over half an hour. francine: what happens to the economy if we have a m

rodolfo: estamos en el show nomura un espaÑol en las maÑanas, gracias a ti! alan: es viernes!a¡crave van! jack: ¿qué onda? prueben mi jumbo breakfast platter con salchicha o tocino, más 8 mini pancakes, huevos y un hash brown, por sólo $2.99. ¿se te antoja? te lo servimos. ¡crave van! ♪ alan: antes de balonazo, trae el cafÉ! el serio, ensÉÑales! rodolfo: ahÍ le da lo mismo, para que bueno lo bueno que soy. cayeron dos, bien! alan: hasta con channel estudio dice que yo no sirvo para esto. rodolfo: quÉ tal el bailecito? la selecciÓn mexicana continÚa... [risas] alan: me rompiste el nudillo. rodolfo: la selecciÓn mexicana continÚa su preparaciÓn en kazÁn para el debut de la copa confederaciones el domingo ante cristiano ronaldo y la selecciÓn lusa. la bronca es que la fifa ya estableciÓ e hizo oficial que los gritos que ellos describen como homofÓbicos cuando despeja el portero podrÍa ser consecuente a que suspender el partido. a partir de la confederaciones, si comienzan a despejar iba no tener visores en cada rincÓn del estadio. eso ya dejÓ de ser gracioso, aquÍ puede perder mÉ