coming up in the next hour, we will be joined by unicredit's chief u.s. economist.ing him about inflation of the sector and what it means for janet yellen. ♪ leave or remain. we will recap the question on both sides of the brexit debate. currency surges against the dollar after the boj holds off on further stimulus. saying misses estimates it will take longer to resume dividends. this is "bloomberg surveillance ," francine lacqua in london, vonnie quinn in new york. vonnie: some currency movements and all the deals yesterday impacting things. we got a lot of economic data out of europe, including gdp figures on top of u.s. gdp figures. francine: gdp better than expected. thatnflation with concern mario draghi has over the lack of inflation. here is nejra cehic. a square off at the european headquarters in london. to market access not just in the e.u. but around , it isld for trade deals value for jobs, for investment, for the future prosperity of our country. what they tell us is that they do not see any way of getting the same market access from outside the europea

then unicredit announcement was something.ine: and we know that unicredit is meeting with intel some, pressured by the government, which is why they are actually the biggest gainers today. i have a disclaimer. tom, you have a lot of sense of humor. you do not have an offshore account. i do not want to get internal revenue on our behind. tom: get over it. continue. francine: paul, when you look at the banks, we forget sometimes that there's a transmission mechanism that has to go through the banks. then you think anyone that goes through qe, you need the banks there to support it. is that almost broken? paul: i think we can't talk about monetary policy as being end-all anymore. you have to talk about regulatory policy. as we see more regulations on the banks, good or bad, it does have an impact on the transmission mechanism. it does change the way things are operating. we have this complex interaction. this is part of the problem with things like the federal reserve. we have a multifaceted policy. you have three options in fron

unicredit's chief economist is still here. eric, we had some inflation figures.s is a chart for a pound over the last 40 minutes, but we fo rget that brexit is a huge problem for boe. whatever happens, it probably will be able to raise rates, and inflation is ticking higher. >> that's right. there are two ways of putting it. there is no central bank that likes the uncertainty we are heading into. that said, if you look at the chart and you go back, you see this big depreciation -- i think that came in handy. he was not very happy with the level -- there is a country with the huge problem, and the weaker pound was good. that's ok for him. francine: yeah. at least a little helping hand. tom: i would weigh in with joseph ninth. this is an essay in support of the prime minister, "brexit and the balance of power." he's hugely influential in national relation and this summary is simple. he tilts after a good essay conversation towards the united kingdom staying within the european experiment. that's an important tal moment. francine: it is. but the problem is that we t

creating a rescue fund and supported and announced a plan that was announced privately, including unicredit. the atlantic fund should calm concerns about stability in the banking sector. has submitted a list of concessions as they tried to get the approval for miller. premium selling off the european brands and antitrust toulators are looking resolve the deal of the 24. allow them to expand in south america and africa. the expansion of a criminal of a fund.bezzlement two former officials are being included in the inquiry. $4 billion is earmarked for investment and some of the money may come under accounts in switzerland. statests in the united are shining a spotlight on the gender pay gap on tuesday. home 3.5part took months of extra work. to everyn about $.79 dollar earned by a man. for minorities, that is even greater. hillary clinton wants it will pay and called for transparency and action on the gap. >> some say that there is not a gap. that is wrong. working full-time in 2014 and, when you break it down, for african-american women, that number is 60%. for latinas, 55%. the last time i

unicredit is participating up to 20% of the fund. these two largest banks are participating both with about 1 billion euros. other groups that will be participating are the government-run gdp as well as banking associations and insurance group. it's still not clear exactly how this fund will work, who will be participating, as you were saying, and how much they will actually be able to raise. it's expected to be about 6 billion euros total which will help but not solve the nonperforming loan problem. the jury is still out as to whether this fund is comprehensively positive. of course, it will help reach these capital increases that two italian banks have to go through to raise 2.75 billion euros in the next months. that's the first objective. the second is the nonperforming loans, as we were saying. need to still clarify the underlying mechanism as well as financing structure. a lot of work to be done, but for the time being, these banks have certainly benefitted from the idea that this fund is actually being created. it has improved

unicredit also driving up higher. why? threat that consolidation is using a little bit for the italian big players. maybe they won't have to scoop up some of the lowest performing private lenders. the italian financial institutions are intensively working on a solution that would see private investors participate in a fund aimed at supporting the recapitalization of troubled lenders. unicredit might have to be one of those that has to buy up other companies if they are doomed to fail. it seems that the popolar vicenza ipo is on the move as well. there is hope for local lenders. a human oil services company. why is it falling on the day when oil is on the rise? the reason seems to be, a w arning for the first quarter. at one point as 4% because it will miss its estimates. net revenue at $64 million. the last quarter they mentioned was arguably the most severe in this down cycle. a hint of optimism, but it seems to be a warning coming out, tracking that stock lower. hans: donald trump's promise to terror up the iran nuclear

the orange line is unicredit, under stressnks and trying to come up with a fund to save the banks. are 360 billion. it has put a lot of stress on the banks. nonetheless a huge stress and the lending. criticisms the big in europe is they have not done enough to clean up these bad loans on the books. perhaps we are starting to see some progress on this. causing a lot of anxiety. alix: the other countries really got it under control many years ago and they are late in doing this. the impact to see u.s. stocks. we begin with market minutes. major indexes closing at their session lows. a study dissent over the last hour of trading. felt very much like last week. overall, still fairly quiet. best performing stocks within the snp, chesapeake. a big rally in oil and gold. chesapeake now has a lifeline. it extended its credit line, taking a huge debt load off the chesapeake back and buying this company some time to get their house in order. aboutt was talking italian banks. surged, european banks today within the european market led by italian banks. on the hoped there would be some sort of

chiefts from unicredit's executive that financial institutions and italy are intensely involved withotiations with institutional investors to be involved in this fund to recapitalize trouble binders. you will see many of the italian lender's rallying today. that is what is happening. stoxx 600 is up by .5%. the best performing industry group has been the health care industry. you will think the reason for that has been m&a speculation after the scupper ring of the deal between pfizer and allergan. it is not the only reason. because analysts are very bullish on the health care industry. in fact, relative to the stoxx 600, they are the most bullish ever. that is fascinating. that is what the top chart shows us. the bottom chart shows us the actual performance of the stoxx 600 health care index. have00 health-care stocks outperformed in the last three years. fascinating to know that after this industry group, the health care industry, had its worst quarter in a year, it had its best week. it is down to analysts boosting their profit expectations. cutting profit expectations for the stoc

certainly good news for unicredit as people begin to worry about it.erformance from that sector. they are trading a little bit higher. telecom italia on the downside. nestle, check and see what is happening with the dividend. season kicks off today with investors turning their attention to the first major company to report first-quarter earnings. investors are braced for the steepest earnings slump since the financial crisis. our reporter joins us now. stephen macklow-smith still with us, head of strategy for european equities in london. good morning. talk about this earnings season. >> as you said, the worst quarter in the u.s. since the financial crisis. earnings are expected to contract 10%. a lot of that has to do with, the first quarter in markets, we all remember one of the most volatile quarters. it is historically a quarter where clients come in fresh from their business break and they want to do business. they want to get out on their ideas. it was really not like that. it was a quiet for the ipo's. markets trading -- we've already got banks w

that the european banks that a bad day were the it was their ceo who came out and read justified unicredit'susiness plan. we are going to see a lot of moves on these. they are very dependent on eu subsidies. the thinking is if >> happens -- happens, it -- grexit these countries will be in a a lot of pain. tom: arise in inflation in the 80's. vonnie, here is the long greenspan period. imagine, vonnie, nobody saw this coming. didn't see this coming. down we go to the zero bound with a triage of bernanke and yellen moving forward with actual progress at this little left. vonnie: ida bernanke didn't even believe it. we can map this with all the different phrases we use for the crisis, but there is. we will talk about that in the next hour. this is a great day. muchpecially as we have so market talk. i'm looking at yen in a million different charge. this is the one i picked out. this is the yen. it is in red. yenwhite line is japanese noncommercial futures positions. if you look at this chart, what it tells us apart from today where we are seeing a weakness, they noncommercial positioning as a pe

we already have comments on the record from the ceo of italy's biggest bank, unicredit.ikely the number two bank as well. investment funds, pension funds are also getting involved in this solution as well. david: we have been through a version of this in the united states with tarp and direct investment of capital and things like that. why has it taken this long for italy to try to a dress this fundamental problem -- to try to address this fundamental problem? we have known about it for a while. dan: it is a great question. --re was a round of global brussels was very actively involved in those talks, and italy was forced to scale back their original intentions, which turned out to be a very elaborate complex guarantee mechanism for banks who wanted to stall bad loans. what else can i say? you have several different players involved in this, and my suspicion is that it is probably going to take a few more days of --mer -- before a former before a formal italian proposal is hammered out. sticking point, given that we are talking about 60 billion euros, roughly a fifth of