in the u.k. something over 3%. plus the nominal growth rate of western economies which a lot of companies are linked to. 4% less. a total return of 7%. it is a sort of gain in index terms. you will see a lot of volatility through the year. at the end of the year, we will be in positive territory. better than bonds. over the course of this year, people will see core inflation rates beginning to tick up. the federal reserve will still be on watch in terms of policy. we do not how many times they are going to raise interest rates but i think the progression and policy is still going to be towards interest rates rising. i think will be -- we will be talking more about that in the u.k. bond yields are likely to end the year higher than they are at the moment. guy: is it easier or harder time in the market this year? the swings are enormous. you get a good idea when you are down 20% markets are stretched on valuations. hard: i think there will be a lot of people trying to trade the swings in the market. other hand if we s

i say "we" because we are a part of the u.k. santander always does well in the u.k. be competitive with other centers and at the moment i do not think it is for the next few years. francine: are european banks in general at a disadvantage because we are that far behind in getting our act together? because you are looking at more qe. ana: no, all the changes the u.k. has done most of them. continental europe, the rest of europe is sort of in the process. this has a cost, and so qe needs banks that can transmit qe to the economy so we can make loans and give you a mortgage and fund a startup. because regulation has still not been implemented in many aspects -- i think i was told in brussels a few days ago there is still 300 pending pieces of legislation in banks. i heard the number 400. let's say it is between 300 and 400. this means that banks are going to be holding back a bit, even though we are increasing lending. for example, we are increasing lending in spain right now, but i think there is a drag effect because of this uncertainty and because this regulation is s

the fear is the u.k. he eurozone, britain's will be worried and stop spending and businesses will flee the country. that leads us to the bond market which is the best performing sovereign bond market in the world. u.k. guilts are up -- it is a flight to safety but a fear of brexit and the fact that investors are pushing into the distance when they think the new rate hike will happen. everything you need to know about brexit and u.k. assets. chart becauseur it is timely and raises interesting questions about what is priced in, but i love the fact that brendan created a new index on the terminal. i'm going to give it to rendon for creating a brand-new index that wasn't even there before. greeley and mark barton, that was the battle of the charts. judgei want to be the with you guys going up against each other. ♪ mark: london fashion week kicks off tomorrow. designers will showcase their latest collections on the runway , but is the british fashion industry keeping up with the times question mark joining us t

david cameron will take his -- membership offers more power to the u.k. u.k. missed in the that boris johnson is in favor of the brexit, the news is now all over the press. the mayor of london and a member of david cameron's conservative party is campaigning against the prime minister. boris: the last thing i wanted was to go against david cameron or the government. but after a great deal of thought, i do not think there is anything else i can do. >> johnson's decision is a blow to the prime minister, who had just negotiated a deal to improve britain's position within the e.u., and he is not alone. six ministers and dozens of conservative mp's say that leaving the blocks will bring back sovereignty, security, and improve the economy. for cameron, that would be a mistake. cameron: we will be safer, stronger, better off inside the e.u. shows that 48% of people agree with the prime minister. 33% are for a so-called brexit. a segment of the population is still undecided. scotland's first minister says that if this campaign wins, scotland would reconsider its place

in the u.k., europe and the u.s.? just brought the company back to the u.k. ve a real focus on that. anna: that is not manufacturing though. x that is the commercial side. with open two new stores. it's very important for us and europe is very strong. germany is showing a lot of strength. a market that is a little softer is the u.s.. with the asia expansion that's really balancing the business. manus: you have these collaborations with beckham. talked was that the correlation between the cost of these relationships and volume. >> we want to reach out and build a new franchise and build awareness. great association with david beckham. dissociation with live tyler who personified -- percent of suck -- personifies the brand that we stand for. the shortcut to signify what we stand for for a bell staff woman. anna: some of the other brands you work with -- it's a luxury brand but is it a very different experience? do you bring something different? >> what you learn from high-end luxury background is that heritage is very important to a real luxury brand. the produc

in the u.k., we were in the first group. omers love it, and we did it because a significant proportion of our santander u.k. customers had an iphone, so we thought we have to offer them apple pay as soon as we can. what is interesting is that we now developed a great app around apple pay, which is making customers more loyal to santander because you can see where you spend money. it is a great tool, and it is very popular. i think we need to continue to innovate, and i think that is the key thing. having said this, i think the important thing -- and i said this recently in frankfurt at a meeting -- you know, we need a fair play market for all, so the rules have to be the same for banks and new entrants. and i think this is incredibly important. so sharing information, you know -- if i share my customer information, the new entrants should share customer information, because otherwise it is very difficult to run a business. so i think that is a key thing. francine: do you think they will? do you think the regulators are lookin

u.k. businesses and at the same time we also feel that having the u.k. part of a reformed eu is in the best interest of the u.k.. but that will be decided on by the british public. caroline: are you optimistic about the economic sentiment out there? >> it depends on what heart of the world you are looking at. in the u.s., we think that the economy is fairly strong and supportive of auto sales. in europe we continue to see growth, moderate growth. we are back to profitability is a company. in china, we actually see the chinese economy -- the government said it would grow less than 7%. growth at anyhat time of the year and we think .he auto industry will do well down in south america, we see that market is very tough and the auto industry will probably contract. caroline: such a global picture for us and such tech expertise. chief executive of ford. not just an automobile company, but eight mobility company. throwing it back to you guys. caroline hyde joining us out of barcelona with that ford interview. back becausee you we have seen a fairly big move on

david cameron said that he struck a deal to keep the u.k. in the e.u. >>> deal is rejected by france and the u.s. >>> the author "to kill a mocking bird" has died at the age of 89. >> airstrikes target fighters aligned with the islamic state in iraq and the levant. libyan officials say at least 40 people were killed in the attack in and around the west of the capital of tripoli. the pentagon said it is a training camp that is aimed at kill an officer in the attack. roslind jordan has more from washington, d.c. >> officials both at the pant gone and state department do not want to say whether friday's airstrikes inside libya means that the u.s. is ramping up its fight against isil inside that country. the obama administration has been very careful not to do any sort of escalation because it wants to b see the unity government take control inside libya. it is very much concerned about the perception that the u.s. may be carrying out unilateral attacks inside the country something which the president barack obama has been loathe to do unless his

the u.k. 10-year is dipping to 1.4%. last thursday, it hit 1.3%. it is up a little since then. the euro is up against sterling today as david cameron tries to thrash out a deal with his counterparts in brussels for a second day. the dollar is falling. the japanese currency is proving its safe haven status in the month of february, on track for its best month since february, 2008. brent crude is rising. it is up 2.4% this week after two weeks of declines. the big data yesterday was u.s. stocks rising to the highest level in decades. the bloomberg first word news. china's yuan is headed for the biggest weekly advance in a year. bears say the rally shouldn't be taken of a sign of great reversal finished. goldman sachs is warning any further shock depreciation will accelerate it. the bank had billions in outflows last year. the $9 billion fund manager is pessimistic about the outlook for markets. beat 90% ofuglas its peers over the last five years and now has almost 60% of its fund in cash. with al

all members do want to keep the u.k. in the european union. they don't see such a strong member leave the block. the u.k. has been very supportive of david cameron since they won. david cameron has a bigger problem. half of his party do not support him. him are trying to give deal that can look good and he can then sell back home. detrimentalill be on trade with neighbors. reforms germany say the cameron was looking for were justified.nd she does not want to lose the u.k. at all. molly: they are getting ready to sit down for lunch with the president of the european parliament. any idea how long it could take? we have no idea. we know that david cameron was scheduled to give an emergency cabinet meeting at 5:00. it's unlikely that will take place. we have heard him say or reportedly have said that he has told his wife and kids he might not be back until sunday. he is ready to stay in brussels until he gets a deal that he believes is suitable for the u.k. lithuania saidf there will be lots of drama. end, a deal will be struck. that is the sentim

let's start in the u.k. leaving the european union would leap into the dark, the warning from the british prime minister as he asked parliament issue onerendum on the june 23. david cameron spoke more than two hours and is expected to of opposition to the -- great britain the e.u. in more with our correspondent in london. david cameron, he's in an interesting position, isn't he? a's never obliged to offer referendum on leaving europe. he did so freely and is now britain's place in the european union. he's put himself in a complicated position. pointd he argue that today? reporter: well, yes, thank you your question. basically, you're quite right. he did so freely but not completely freely. the point is that this is a prime minister who first didn't an election outright. you have to be in a liberal coalition. he then, to everybody's surprise, including his own and managed to win the general election last may and clinchers, he believes, is the fact that he promised the british people on whether the united kingd

miss in the u.k. at is leading to the fact that the david cameron had to promise that he would hold a referendum? >> i am sorry, brendan, i didn't hear the last part of that question. brendan: business and political fores have been pro-europe a long time in the u k and in the eu. missed? when you make such a convincing argument to stay in, what did elites miss in the u.k. that is causing david cameron to have to hold this referendum which she clearly doesn't want to have to hold? jacqueline: it is because we live in a democratic society and he knows that the people will vote for the best decision. my concern, when you read the headlines at the moment is there is a great emphasis on migrants. the whole business issue is often lost. it is so critical. when you look at trade opportunities, growth opportunities, jobs, how important that is attracting to the u.k.. isn't it best with tires off to china -- someone said we shouldn't tie ourselves to europe because economically we are a stronger nation. why sho

what about the u.k.? 1.2% core inflation. nt level reached in june, the lowest since 2001, but still below december's 1.4% and below that 1.8%.y's-- matt core inflation in the euro area at 1%. we think the ecb will ignore that because today come up had headline inflation in spain falling, headline inflation in germany falling and headline inflation in france falling. which means headline inflation in the eurozone when announced on monday will be close to zero. check out my chart. it's all about inflation today. matt: i like the global look. but i'm going to dock you for using epi. i will give the win to joe. you find the pce ticker and charted out 100 times. joe weisenthal, thank you for joining us. mark barton come always a pleasure. , the famed auction house reported an $11 million loss. is the slowing high-end art market taking a toll? ♪ matt: welcome back to bloomberg markets. in today's pursuits, so there views reported a loss of $11.2 million in the fourth quarter. by's.uther sales off 50% from one year ago. atya.ng me n

this is a moment of truth and we have to convince the u.k. that is the case. has also hadn criticism from eurosceptics hoping for more. flo co "-- they are talking about the great delusion. in its editorial, the daily says we admire cameron, but on europe we have to say frankly his capacity for self-delusion is breathtaking. what happened to all of those pledges, prime minister? "the daily mail" accuses cameron of selling the country short. genie: there is still a lot a on the race to the white house out of their -- after all the drama at the iowa caucuses. flo: the iowa caucuses signal a long contest for both parties. no candidate has an easy path, according to "the new york times. on the republican side, ted cruz was the surprise winner, but he could face tough competition from marco rubio, who came in third. he is getting a lot of attention in the press today, seen as having a good chance of winning the republican nomination because he has the backing of the republican establishment. in this cartoon, you can see ted cruz cruising ahead, thinking he is going

jeff says on the u.k. january retail sales data, which was very strong, he says, whether this matters depends on whether you're a chicken or an egg person. that might be right. still strong. the fashion elite goes gaga. the marc jacobs runway was graced with a surprise guest model as part of the new york fashion week autumn-winter show. lady gaga strutted her stuff with her best poker face alongside the famed kendall jenner. the singer was dressed in an oversized fur coat with platform boots and blond vintage waves through her hair. how lovely. isn't that beautiful? very elegant and lady like. still to come here on "street signs," we'll be hearing from the ceo of kering in an exclusive interview. we'll also be getting some market thoughts from the lovely marcus ashworth. stay tuned here to "street signs." and your symptoms have left you with the same view, it may be time for a different perspective. if other treatments haven't worked well enough, ask your doctor about entyvio, the only biologic developed an

you have countries like the u.k. and france. it is part of the so-called coalition imagines it as taking it step-by-step. >> the german chancellor is trying to hammer home this point again. sarah: we will see if they buy it tonight. police there have arrested nine people. the attack killed 28 people and injured over 64. no one has claimed responsibility. >> on his arrival in turkey from syria, they say they were a member of the syrian kurdish militia group. he is suspected of having planned the attack with the outlaw kurdish workers party in turkey. the political arm denies responsibility for the explosion. the turkish president rejects this. >> even if the pkk and the political arm dispute this, the interior ministry as well as the intelligence service have information and evidence to prove these groups were involved. shown here, they are allied with the pkk which turkey, germany, and thethe white pg is considera western ally because of its opposition to the so-called islamic state. the turkish government has been -- six turkish

obliged the u.k. ot to take refugees, the sense of chaos in europe and the better off out notion of very much accelerated by chaos. that is why of course the prime minister wants you to avoid having the referendum in autumn. mitigate in june helps the sense of another day loose in the summer. extent in which is played out in the british twos is a battle between university chums. this is a huge impact on europe. even if the u.k. votes to stay, referendum and the negotiation process will have a big impact on the future of europe. francine: this is difficult, because it is emotional. and hek at the tabloids will go what, this is what they are writing. pinpointy difficult to the mood at the moment of the people. could it be a vote against david cameron? aecks -- rick: it will be grassroots element that will be influenced by the tabloids. what will be key is what the turnout will look like. they're getting jazzed up about these issues. thet of people that take benefits of the european union for granted. les

he was the u.k. to leave the european union. cameron, the prime minister, speaking in the house of commons right now. he is trying to persuade his fellow mps to take his lead and support him, support the uk's membership of the european union. the big story took place in the currency market today. --ill show you a chart with which highlights volatility. volatility has been rising ahead of this debate. this is sterling, euro volatility. expectations for movement in the exchange rate in the next six months. rising to the highest level since 2011. we are only four months away from the referendum on june the 23rd. european markets close in a matter of minutes. stay with us. ♪ when you're on hold, your business is on hold. that's why comcast business doesn't leave you there. when you call, a small business expert will answer you in about 30 seconds. no annoying hold music. just a real person, real fast. whenever you need them. so your business can get back to business. sounds like my ride's ready. don't get stuck on hold. reach an exp

the u.k. prime minister got the most he could obtain and other members states offered him as much as they could offer which leads me to say that the deal with the u.k. is fair, balanced and complies with the great principles of the european union and takes into account the concerns and suggestions of the united kingdom. i therefore think the british people, which through the course of history have proven their wisdom and courage time and again, we say yes to the arrangements we have arrived at with the united kingdom. the commission, from the day the british people approved will pass legislative texts to parliament and council. in particular with regard to the social aspects of the agreement arrived at with the united kingdom. that juncture, the legislative proposals from the commission will come to you as soon as they have been tabled in german. we look at the refugees and migration issues. won't have escaped you that the european council confirmed with the european council decided in principl

the ftse? when you look at u.k. al companies with foreign cash flows, a large part of the ftse 100, sterling going down to less positive is extremely for global companies. it is not great for domestic companies. exporter, ande an getting out of a foreign cash stream. theftse 100 basically as of -- has nothing to do the u.k. bob: focus on companies which benefit from devalue to currencies. if dollar euro goes to 1.02, that will be great for european exporters. states, i, in the think one sector which you consistently have to avoid is american companies which are driven by u.s. exports. u.s. exports, if you look at the graphics come we're down by about 7% year on year. back to 2009, exports were growing. exports butamerican companies also have over borrowed in dollars. frankly, you could be in trouble. guy: back with bob parker very shortly. up next, we talked to a u.k. stream going to a spanish company headquartered in spain. the 15 profit came in. the company said it increased profit this here. live from london, next

unemployment in the u.k. holds steady in a decade low 5.1% in the fourth quarter but the pressure to raise pay remains eak and we'll look at why. mark: and then shares jumping the most in cole after announcing plans to sell stakes in regional banks and pay as a result were very different at a.b.m. 5 amro. brendan: and what could affect the whiskey market? we'll ask an expert. we're half an hour away from the close of trade in europe. mark, tell us about today's market action and tell us ether i brownsed glenmorangie. it's a soft g. mark: we'll ask our man in 15 minutes. what a day it's been. third day of gains in four. stock 600 up by 2.55%. last thursday is all but forgotten where the stock fell to more than a 2 1/2 year low and the index rebounded by 8% thanks to earnings and thanks to news from the likes of agriculture. shares up by 15%. biggest rise in four years for the french lender. what it's doing, brendan, is selling stakes in more than three dozen regional french banks and wants to boost capital in t

francine: the u.k. is opting out in certain measures but at the same time the u.k. e negotiating table and what i keep on being told. it's better to be a part of the clan and try to negotiate rather than being kept out and having rules still on you. roland: i don't recognize any shape or form michael's description testify as a foreign state. there's three parts, the council of ministers which are the democratically elected ministers from each individual state. there's the commission which is actually appointed by the counsel of ministers who are democratically elected and obviously the european parliament that is democratically aleced. what i would agree is that it's one layer removed and there is an anti-politics feeling at the moment. an anti-politicks feeling to westminister and anti-politics feeling to brussels and i get that but it's not a foreign state because we're right at the heart of it and freely choose to be a member of it and i would argue we have a huge influence in it. the single market was created by margaret thatcher and think this commission is more

. >> this week, the u.k. reached an agreement that gives them special status in a ptolemy within the european union. and includes exemptions to eat you rules on welfare for migrants and the euro currency. britain will hear hold a referendum on eu membership on june 20 third. the european parliament debated the terms of the deal and the possibility of britain leaving the european union. this is one hour. >> we now move to the debate on the 18th the 19th of february 2016. welcome to the open counsel. >> thank you, brett president members of the parliament, the last european council was difficult at the end of my term. even though we found a common solution, the time is ahead of us because of the referendum and the united kingdom on whether or not to remain a member of the european union union. only the british british people can and will decide what we could do on our side is a new settlement with the eu. the ten heads of state adopted a legally binding and irreversible sentiment for the united kingdom and the e

the uncertainty shock, u.k. anies will not know on what base they can trade with the eu, with the rest of the world. francine: a recession out right in the next few quarters? kevin: it is difficult to be precise about what the uncertainty shock, to precisely say how big a risk that is. u.k.'smpanies, all the existing trade arrangements are via the eu. it will not only have to renegotiate trade deals with the eu, but with every other country in the world. companies will not know on what basis they will be able to trade with customers abroad. say, let'skely to wait. let's pause on investment spending plans. if a mother of companies pause on their plans, that will be very damaging for u.k. growth. whatever about the long-term implications of brexit that we think are negative, it is those short-term implications from the uncertainty shock that worry us most. francine: what happens to pound from now until june 1? kevin: it depends on what happens to the polls. in one scenario, you can continue to see a majority in fav

does the u.k. lose its safe haven? t a surprise that companies are coming up favor of staying in. think of massive disruption on the administrative decisions. it is one of those uncertainties. caroline: i read some notes and one was saying the british pound was at 70%. when we stay in or go. ,t seems at the moment the u.k. sterling is one way down. andrew: after being one way up for three years. we see the weakness in sterling occurring because people began realizing the chance for brexit is quite real. that is what they're starting to discount is a danger of the brexit. francine: andrew, thank you so much. let us get straight to the bloomberg first word news. surged byna's yuan the most in over a decade catching up with dollar declined after the weeklong holiday. currency that the most since it scrapped the peg for dollar since 2005. it just as he has decided to keep its global headquarters in london. the decision was made unanimously at a board meeting on sunday following 10 months of debate. u.k.s been based in the 4

if the u.k. , we could be stuck with the lloyds share a little bit longer because that will create volatility. riskis a great amount of it has with relation to the u.k. economy in the event of a break. votes to stay, we could keep the 9.2% stake in a bit longer if we vote to remain. shares.g leap in lloyds investors economists and voters are weighing the consequences of the so-called brexit. we are being quite unambiguous saying, if written leaves the eu, thus run rating would go down a notch. we think that britain has been benefiting from the membership. has been a magnet for inbound investment, not only from the rest of the eu but globally. it is our belief that a lot of this attraction of britain, among other things, but also that it is a member of the eu and it is therefore an integral part of the largest trading area in the world. boston.ffrey klein in let's talk about the brexit possibilities. the big decline has clearly been in the pound against a whole range of currencies. when does it sta

junior hospital doctors in the u.k.'ealthcare service will stage three strikes over a new contract that would cut pay for working at night or weekends. the government said 2 previous strikes led to 6000 operations being canceled. the legal battle is heating up between vladimir putin and petro poroshenko. the government sued ukraine for gasillion over a bond and export is demanding $32 billion of unpaid bills. meanwhile petro poroshenko once pressure to pay $62 million over the annexation of crimea. the cases are expected to take years to evolve -- to resolve. is committed to reduce spending on the military to 2% of gdp by 2023. australia is a major ally of the u.s. news, 24 hours a day, powered by our journalists around the world. francine: sterling is trading and the seven-year low. oute trying to figure exactly what governments are doing and cabinet ministers are doing. we're talking about the brexit, theimpact this will have in future of this country. how the you case he is itself in the future in the country and the

there is this growing view in the u.k. ed to see something will are to the constitutional court in germany that allows some sort of ability to deal with legislation coming out of brussels. hans: yeah. thef the counterpart to constitutional court in southwest germany. merkel voiced her support for the general principle. she says he could potentially get a deal. cameron will be pressing his case, then he is off to, i believe, poland and denmark on friday. he's, selling job to do. guy: he certainly does. it will be interesting to see what a bore celfin says later on. a quick check on the markets before we go. mark: two charts, one minute. credit suisse, 1990-2016. shares today falling to their lowest level since 1992. they sank 12%, the biggest drop of the year after that bigger than forecast lost. ahead of super thursday, when the ble releases its rate decision minutes from the quarterly inflation report, this is the morgan stanley measure, which measures the month from the first u.k. rate hike. guy, it is 25. no rate hike, a

fran: let's talk more about the u.k. sts surveyed by bloomberg say the property ability -- the probability of recession rises to 40% if the u.k. votes to leave the eu. scaroni,ng in paolo deputy chairman at rothchild, and our tonio -- and antonio garcia pasqual. just a quick comment. do you think ceo's would leave the u.k.? i've lived here for a very long time. theill find it crazy that london mayor says london will be fine outside the u.k. paolo: i'm not expecting the brexit. i think at the end, brits are very reasonable people and they will be reasonable in economic terms. therefore i don't think brexit will happen. the position of the mayor of london, the mayor of london is always kind of original thinker. i wouldn't think that this would really change the balance between yes and no. fran: how do you model it? is it more difficult to model a donald trump in the white house as an economist for a brexit? brexit is pretty darn hard. it is difficult because -- first, the legislation. the legislation is well laid out for co

let's see that back into the u.k. equation. the whole dollar and oil thing is not a driver here. if oil is going up, the chances of risk sentiment is improving. inflation will go. doesn't need to go up that much as long as stocks fog, inflation will go up. high.re rate is if it goes up, it gets there really -- rather quickly. it does make a case for a rate hike very decisively. if the rest of the economy is looking all right. this market pricing and cut into the u.k. strip is just fascinating. oil went up to $50 and stay there. rob: $50 is good. stability. middle east likes $50. if the economy is all right, you have a good case. in the eurozone as well. this is not a u.k. only phenomenon. all of these places have exactly the same issue with inflation. if oil goes up a little bit, inflation comes back. had he keep making the case of additional easing? at least u.k. is leaning in the direction of a hike. they haven't done that yet. the u.s. has already done one. they are all on the same boat. the policy action as well. what are w

employment data from the u.k. is crossing the bloomberg now. let's get to mark barton. mark: u.k. ers showing should -- showing few signs of responding to a tightening labor market. unemployment holding at 5.1% in the fourth quarter pretty earnings growth slowing. pay growth excluding bonuses edging up to 2%. the data likely to reinforce expectations that boe remains a long way raising its benchmark rate from a record low .5% " some policy say near zero inflation is keeping a lid on pay settlements. unemployment falling 60,000 between october and december to 1.69 million. employment climbing 205,000 to 31.4 million. jobless benefits fell 14,000 to in january760,000 taking the rate to 2.2%. nothing there to make us believe the bank of england will budge on its record low interest rate of .5%. any movement in the ftse 100, it is creeping higher today. up by 1.25%. whichs the 10-year yield last week hit its lowest ever level, down to 1.3%. since thursday, it has crept up to 1.43%, but still, the be global bonding market in 2016. that is the latest data from the u.k. anna: not all that

having the u.k.rt of a reform to eu is in the best interest of the u.k., but that will be decided by the british public. youre you cannot -- are optimistic about the sentiment? >> they're working at different clock speeds. in the u.s., we think the economy is very strong. in europe, we contingency growth there, moderate growth did they are making good progress. see the chinese saysmy -- the government it is going to grow 7%. we would take the growth at any time of the year. we think the auto industry -- the government is putting subsidies to stimulate the auto market. in south america, we see their market is very tough to the auto industry will probably contract. francine: the plunging pound. we'll take a look at where the -- uncertainty. ♪ francine: the pound fell the most since 2010. ae mayor said he would back brexit from the eu. great to have-- you on the program. the business is at the pound will follow. will he have put a percent downfall or is that too much yet go >> goldman sachs -- too much?

he now goes back to the u.k. knowing that he has to convince the british people that he has a good deal. david cameron will meet the cabinet on saturday. some of whom who are preparing to campaign. they are expected to confirm that the referendum will take place in june. hard work, it seems, has only just begun >>> live to our correspondent outside the british prime minister's special residence, 10 downing street. when can we expect the announcement, and what do we think the date will be. >> well, that is the question. the cabinet meeting behind me now, and the ministers arrived. michael goh, the senior cabinet minister to come out and say he will oppose, he want the u.k. to be active in the european union. in terms of the timeline we understand the speculative that june the 23rd would be for the referendum. the question will be how the campaign goes. when the prime minister speaks to the media, he will tell us what links as a great deal for the u.k. has been achieved. all the opts out referred to. but because of

or the u.k., headquarters somewhere else. e is no doubt there is a great risk of people in business moving away from the city. francine: on standard chartered, we knew it would be not pretty but we did not think it would be this ugly. >> there were a lot of things thrown in. loan impairments were almost doubled. they threw in a restructuring charge of $1.8 billion which they said may be coming at some point but it came now. it's just, i think they are taking on a lot of their challenges trying to get a lot of things out of the way, so they have a clear path forward towards the 10% roe they want to get by 2020. francine: i want to show you the share price. it was interesting because it opened and it fell sharply, down 12%. now it's only losing 3.5%. do you think the worst is behind them, or are they turning a corner? >> it is pretty early day. what is interesting is you have a number of banks, deutsche bank, credit suisse, standard chartered, all going through some major restructuring, yet more major restructurings in market co

ireland we speak to the ambassador to the u.k. out the impact of a possible brexit. ♪ anna: welcome back. this is "countdown." let's get to the bloomberg business flash with caroline. caroline: the boj's negative interest rates are boosting investor demands. the investment bank is the second-largest lender. it currently employs 75 people in japan. they might increase that number by 10 by the end of the year. a former deutsche bank analyst will pay a $100,000 penalty and be banned from securities industries for one year. he issued a recommendation at odds from his personal opinion. he recommended buying shares of big lots in a march 2012 report while telling colleagues that he did not downgrade the company because he wanted to maintain his relationship with its management. he did not admit or deny wrongdoing. a request byected u.s. investigators to help unlock an iphone used by shooter farook. they are seeking a new version of the security system that would circumvent the iphone. he calls the order a dangerous precedent and a chilli

david cameron sounding optimistic saying he has made on the u.k. deal but will only do the deal if it is what the u.k. needs. meanwhile kering, it is u.k. fashion week. have to focus on gucci. it looks good. the stock is up. tom: i can see you in gucci. caroline: i wish i could see it. tom: let's get out of this quickly. we're going over to the bloomberg -- here it is. i didn't know how pretty this chart would be until i did it. this is a u.s. two-year yield and german two-year yield negative interest rates. the quiet news of the week. here is that hope and prayer of the fed raising rates, three, four, five rate hikes this year. we have given up so much of that. this really bears watching. caroline: commerzbank saying they are in the waiting room to the e.u. decision. tom: it is a really interesting soup this friday morning. an indeterminant week. we go to chinass right now. caroline: we do. that was a focus when we got into european trading. the central blank increase requirements for reserve some banks but they must must lock away this capital. a

if the u.k. vote to exit the european union i think that will motivate a lot of the fringe parties to hold a referendum. we could see some capital flow out of the monetary union in the event of the u.k. exiting the eu. francine: marvin, how do you model the brexit? marvin: this is the view of barclays analysts, not barclays, but one of the things we have highlighted to clients is exactly andrew's point, this is not as much about the u.k. -- the u.k. is involved -- but this is really about europe. global, it is the major risk event on the horizon. this is a project that has been 25 years in the making. if you have one member leave and set the precedent for how to do that, you effectively have 27 other countries that all have right and left parties agitating for independence from the european union, roll the dice. the chances that somebody comes up yachts the as high. francine: thank you very much. thank you so much for joining us. china,, we talked china's largest currency surge in more than a dec

presidents futurent on the u.k.'nship with the european union could pave the way for a brexit. let's welcome richard reid who is with an investment company. us., thank you for joining yesterday was crucial. yesterday we had this draft what you have in front of you. i love when reporters, drafts. how comprehensive was it? i was not coarser -- quite sure what we negotiated. >> i do not think this a be troubling the best seller list. it is a treaty text. when i was reading it yesterday at great speed, thinking really i wish i was a lawyer, because then you would understand, you would know -- i was or was an international lawyer and then i went make a lot of money off make a lott i would of money off this. the headlines. this is coming to come down to how it is framed. david kram and promised -- toid cameron promised get a lot of stuff. and he did not. we were not shale -- pay child benefit for migrants at home. we should not paid child benefits for migrants. l, we will be paying child benefit. it will be indexed to 28 d

none of the eu members want to see the u.k. leave. kesill do everything it to make sure a deal is struck. for that report as the brexit summit gets underway. next wednesday's deadly bombing turkish capital. 28 people were killed when a car bomb targeted the military in ankara. a syrian national was linked to syrian kurdish initial -- militias carried out the bombing. the leader of the group has denied involvement and has warned ankara against retaliating with ground action. a blast heard across the city. emergency services rushed to the scene to recover the injured and dead. passersby helped clear the route to allow ambulances through. cctv footage caught the moments on camera. authorities believe a car packed with explosives parked by a convoy of military buses. hour at a busy junction less than 500 meters from parliament and close to military headquarters. >> this attack was not only bus, at military on the but carried out in an atrocious way without honor. way treacherous and petty against our holy nature -- nation. >> no group has

he now goes back to the u.k. knowing that he has to convince the british people that he has got a good deal. david cameron will meet his cabinet on saturday, some of whom are already preparing to campaign against staying in the e.u. after that he is expected to confirm that the referendum will take place in june. the hard work, it seems, is only just beginning >>> plenty more still to come for you here from al jazeera, including these stories. uganda's polling has said to be rigged. a look at a legacy of a book and author who changed modern literature. >>> welcome back. a recap of our top al jazeera stories. the deadline for acisation of hostilities in syria passed on friday as fighting continued on the ground. russian planes continued to strike syrian targets particularly in aleppo as forces supporting the government pushed towards the country's largest city. fiji has been hit by the strongest cyclone recorded on the island. it is packing winds of 290 km/h with gusts of over 320 km/h. the government has declared

we have a socialized system in the u.k. ne of the best -- commonwealth fund saying the u.k. had the best health care system in the world. our junior doctors are on strike. junior doctors leaving the country to go to australia and canada to provide services. how do you square the circle of keeping those policies but also the people delivering it incentivize, particularly the junior deliverers? michael: i think the u.k. system has got a lot of strength. i think it has been very slow, though, to move toward some of the innovation and restructuring in care delivery models. i think the junior doctors are frustrated. they feel like they're duplicating their -- they feel they're not equipped and allowed to practice medicine the way they hope it can be practiced. so, i think there is a more innovation going on in the u.s. right now in the care delivery process. tom: we continue with neil dutta as well. our single best chart coming up next on the linkage of economics into our politics as well. coming up across all bloomberg platforms

different from what you saw in the u.k. nly did not economist estimates, coming in below expectations, the slowest growth we've had for two years. the services side of the economy is about 90% coming quitting utilities, health care, retail. even though services might be insulated from what's going on overseas, some of that sentiment may be changing as we see the stock markets decline. we are coming off our lows of the session. abigail doolittle has more. abigail: we do have a bit of a recovery here appeared the nasdaq had been down 2%, now down about 1.1%. still a selloff there. one of the worst percentage after missing fourth-quarter earnings estimates. some are calling this "messy." below the, the stock 50 day moving average. elez comese of mond in the past, they have recovered from this. the worst percentage performer in the nasdaq coming yahoo! shares plunging today after the company ironically beat fourth quarter estimates but did announce that expected 15% layoff and they are open to strategic alternatives. not positiv

it also mentioned that the u.k. regulatory and men's spirits handling complex international affairs, and important and globally connected economy. it also underlines the importance of asia. asia remains at the heart of their strategy. they mentioned the strategy was a core part of a strategy unveiled last june. hsbc does make most of its profit in asia. something like 62% of pretax profit in a nine-month to the end of september last year. they tend -- continue to see asia as a big driver. for many reasons, it has decided to stay in london. they have been there for 23 years. angie: did they get what they had threatened to do, especially in terms of regulatory environment? >> regulatory and miami, taxes, if you look at hong kong's corporate tax rate, 16.5% versus the u.k. 20%. also perhaps you could say hong kong's regulatory environment may not be as stringent in some ways as the u.k.. the u.k. government has been to pull back on certain regulatory requirements. also things like loosening up on levees which are requir

if the u.k. leaves, its own economy will be impacted. ose in favor of britain leaving the bloc say the u.k. could save 8 billion euros a year and contributions to the eu. others warned the british pound would humble in trade -- tumble in trade. until june, david cameron has to convince european partners and his own country that staying in is worth it. reporter: british newspapers were quick to ridicule the prime minister. despite the threat of a brexit, cameron's demands are not gaining the traction he had hoped. >> i am very willing to be creative in order to allow great britain to remain inside, but not at any price. we have to conclude now that there will be no second chance. cameron wants the right to scale back social benefits for eu citizens living in the u.k. he hopes to gain more legal independence from brussels. exceptions like these are not sitting well with many eu members. >> i heard rumors about possible problems with the final outcome of the summit. also related to the universities. reporter: greece unveiled its own list of

. -- if the u.k. how much does it affect ipo's and m&a leading up to it. >> the same way the u.s. election will affect. it is a very scary year. the risk that the u.k. leaves the european union. you have a u.s. election where trump is continuing to defy expectations and people in europe have no idea what that would bring. pen.ance, the rise of the you have got a tremendous political uncertainty. the only place that seems certain is russia with putin. ♪ watching you are bloomberg best. in cape town bloomberg hosted the africa business and economic summit bringing game changers from across the african continent with ceos, investors, and policymakers from around the world. the opportunities and challenges for investment and growth in africa. africa andpioned barclays business here when you were ceo of the bank. possible thatt is come tuesday we will find out that barclays is exiting all or part of its investments in africa. simple question. will barclays regret that move? >> i know barclays business in a

that fed into the u.k. markets. kets have been ahead of central bankers and economists in predicting where rates are going to go. guy: you are looking at live pictures coming out of brussels. they are all feeling a little bit tired, i would think. they have another session of negotiations in front of them. the press is waiting for every single utterance. "the pulse" is up next. ♪ equities close flat. credit crackdown. the people's bank of china hikes reserve requirements for banks as it seeks to stem a lending surge. u.k. prime minister david cameron's negotiations with fellow eu leaders builds into a second day. welcome to "the pulse." l

david: this is one of the benefits of the u.k. looking softer in recent months, especially on the wage side. it does not seem the real economy is going to be in a place where he would raise interest rates in the first half of the year, even if there is a referendum. we do not know that this referendum is coming. once the data is set, we will see some market participants focus on it. for global markets to push down the currency and the valuation on large companies listed in which would be the obvious impact of the referendum , i think you need to get it moving in a few weeks. people over the world to have it on their calendars and start to traded quarterly. anna: it seems that the currency markets are already alert to the risk of brexit. maybe they would become increasingly alert as we get closer. thed: you never know composition of drivers that make a market move there has been a solid push back from the bank of england. interest rates have been the key driver of that move. the activity and inflation data in the u.k. has weakened

your impact on the world stage could suffer if the u.k. e eu here to give us a good deal. that is having some affect. --heard angela merkel saying there are still some sticking points. the french are unhappy with what cameron is pushing her changes to financial legislation in the eu. eastern european countries aren't that happy about some proposals for limit on migrant welfare payment. there is a long week to go before this crucial summit on thursday. guy: walk me up to that summit on thursday. what are the critical moving parts. what kind of summit is it going to be? ian: it sounds like it is going to be a long summit. cameron and his team are preparing for three days of long negotiations. before then, there's a lot of intense diplomacy going on. ofald tusk is in charge getting all of the leaders together, he is engaged. going to paris, athens, prague before finishing his trip in berlin. he is trying to get everybody on board. cameron is speaking to the european parliament tomorrow. a lone go before thursday's summit. guy: it is going to b

hsbc has been based in the u.k. for 23 years and says remaining there is the best option for customers and shareholders. it is president's day in the u.s. and that means stock and bond markets are closed today. president barack obama will be at work, greeting leaders from the association of southeast asian nations for a summit in california. he is $53 says million in debt. he made the revelation on twitter. he asked his fans to pray he overcomes the situation. he also asked them to subscribe to the music streaming service tidal. global news powered by more than 2400 journalists. manus: let's get straight to zeb eckert. i am looking at my screen. topix up 8%. nikkei up 7%. the top three markets are all literally soaring. technician, to a they've have been saying that it's oversold and that is what is driving the market. give us your take. zeb: if you look at the markets today, we are seeing that buying on the thought that the markets got too far last week in terms of the selling pressure. that is why you are seeing th

on the u.k. in 2014 we did 14 billion videos for youtube it that's across all types. >> are you able to be more specific in the future, would you be able to look at the number of websites and the number of have terrorism content? >> we can't do it right now but were certainly open and actively thinking about ways that we can be more transparent about what we remove and what really pilots. it is worth noting that one of the reason it's difficult is because if someone is offended by something on youtube they go chart flagging procedure. and those flag over laps, could be for terrace content or they might for speech so at present we are not able to count that way but it is something so it was pretty critical a few days ago. >> about what was the content she said she felt it had become a place where heat was being disseminated. is that right? how many pages has facebook taken down relating specifically to counterterrorism? >> so what happened we are confident -- there's weeks ago in berlin the joint c