francine: thank you so much, kathleen hunter, and stephen gallo.p next, is theresa may about to give ground on a key issue? we will have the latest. this is bloomberg. ♪ francine: you are watching "bloomberg surveillance." i'm francine lacqua in london. it has been another tough week for the pound. the e.u.'s chief negotiator, michel barnier, told the u.k. to come back with more clarity. "the guardian" reporting that britain is willing to accept a transitional deal for up to four years after leaving the bloc. that would mark a shift in tone from prime minister theresa may, who made taking control of immigration a redline issue. stephen gallo is still with us. the politics versus economics question. does the pound trade on the back of negotiation, words from michel barnier and secretary davis, or on the figures and boe? stephen: the only way i think the pound trades off brexit negotiations is if there is a rapid move to get a deal in place. markets will move to christ in the softest of brexit. we think there's some upside in sterling, but not much.