cantor joins still with -- still with peter schaffrik.n in charge for very long. suddenly they put out this statement and it is taken wrongly. this there is too full to appointment. the cost of these refurbishment's and other changes they're going to try to move the brand upscale. secondly, there's not that much detail on what they plan to do. a lot of what they are announcing is what christopher bailey had already kind of nudged them in that direction of moving upmarket limiting their exposure to u.s. department stores and stopping sales to make the brand more exclusive. does not a lot more than that they are announcing. francine: are they concerned that costs will go up? are they concerned there is no greater director? eric: it is all about. more capital expenditure, a hit in 2020.s over 2019 francine: how does burberry traction?is a need to appoint someone to take over christopher bailey asap? eric: they do. they've said that's not going to happen right away. a lot of speculation over who it will be. they need somebody high profile bec

guy: let's bring in peter schaffrik into the conversation. you towards your home turf, as it were. are the bavarians on board for this? peter: for the time being, probably. keep in mind, the csu have an election to fight of their own in their own home state year, and that is going to be the crucial battleground for them, so they will probably stay on board because everything else will be very odd for now, but they will stay very hard on one of their main topics, which is immigration, and if you read the various reports that come out of the various parties about the failed jamaica talks, they were equally as hard on some of their red lines as the ftp was in the end. guy: where does this leave mr. macron? peter: he has to wait, i guess. guy: this is moving in his direction. if we were to see the fdp helping merkel out? ther: one of the things imf lilly certain about is that markets would probably not be on this minority government to much , particularly as the spd is very much more on board than the jamaican coalition would be on some of the eur

peter schaffrik, global macro strategist at rbc joins us now from his office in london. great to see you. we've also seen the ecb today turn the spotlight on significant risks from a china slowdown. i want to talk about the selloff we have been seeing over the past couple of days, both in equities and bond markets in europe. what is this a sign of? is this just a correction or a sign of something more meaningful ? it's not easy to identify where it really comes from. usually, you have a data release and a central bank action or comment or something and neither of those really happened. you mentioned the ecb speaking about risks clearly, but let's go back, this selloff started probably already on wednesday, there was nothing really to pinpoint down. at this stage, it's probably a correction and probably driven by valuations that were relatively lofty, particularly going into the run-up towards the next fed meeting. at the end of the day, i think we will have to watch this very closely. vonnie: in the bond markets in particular, the selloff seems to have been led by bunds.

blanchflower and peter schaffrik.e will break it down with our guests next, this is bloomberg. ♪ jonathan: shifting rhetoric from the bank of england. the pound remains little changed . why the expected the central bank will raise the benchmark rate for the first time in over the decade. peter schaffrik, still with us. danny blanche lower of dartmouth. the governor invited the committee to vote on the proposition the bank rate be increased by 25 basis points. six members voted in favor of the proposition. danny, you dissented 10 years ago. think about when it was july 2007. the bank raises rates. at the truth is it was a mistake , because the u.k. economy went into recession seven months later. we know it was a mistake. today it's very hard to actually see anything in the data to tell you to raise rates. relatively high inflation at 3%. it's about the plummet to zero. .eal wages are falling retail sales are falling. growth in the u.k. is horrible, the slowest growing economy in europe. it is hard to actually see any d