unicredit replaces its ceo after losing confidence. it paves the way for a review of its capital strategy. so, welcome to "the pulse," live here in london. i'm francine lacqua. getting some figures. of pay. the month the german business confidence at 107.7. inwill speak to the man charge of this report later on. that is better than economists expected. ifo confidence is at 107.7. the median estimate was 106.8. the current conditions also a little bit better than expected. to show apecting ifo little bit of weakness, maybe a little uncertainty regarding growth, regarding deflation. those figures coming in better than expected. do notllar, these things tend to have that much of an impact but when we look at uncertain times and what mario draghi may or may not do, it may. 111.44. stay with "the pulse." in half an hour we speak to the president of the ifo institute. let's check the markets. this is a picture for worldwide markets. global stocks rallying with some of these emerging-market currencies. i want to show you yuan and the 10-year

unicredit replaces its ceo after losing confidence.r a review of its capital strategy. so, welcome to "the pulse," live here

there's been a lot of talk about whether unicredit does or does not need a capital hike. the market's talked about the possibility of 5-7 billion euro capital hike but that could be avoided to come with these asset sales. the big news also is the idea that this could also involve a change at the helm of unicredit the ceo that's been guiding the bank for last six years and it's implemented a plan that's wanted to avoid the capital hike may in fact be stepping down. there are rumors that a board meeting could be held as high as tuesday. and rumors already that head hunters are working on finding a substitute. names running around from outside of unicredit as well as inside but in the meantime the top management continues to work on their plan in place and they continue to battle outside of our operative arena should not distract us in anyway. so they continue to work but we'll see next week if there are any news on these changes or capital hike or asset shares but certainly is a stock to watch here in italy. >> claudia. thank you very much. see you next weekend. deutsche ba

we think unicredit is doing a good job.ut yes, the capital positioning is tied to another comparable much larger margin. >> and do you think unicredit can meet this eventually 12% ebit 1 target? there are other options at their disposal, but can they reach their target? >> they have a lot of options. one will come to fruition probably very soon, in a joint venture in asset management that should enable them to 25 or 30 points. yes, it's tough, it's tough. large banks are shedding a lot of assets. and companiy ies as part of the group. >> and unicredit when you look at their top competitor. >> it's one of the few stocks that we would probably recommend in the banking system. the suggestion is still hard for the next few months. we're going to have more mergers, more capital increases because the ecb tends to ask for more capital when you merge two banks. it's going to be a tough situation. we see a clearer investment opportunity and credit in the banks. >> when we look at the selloff that started in italian banks at the begi

it comes down to this strategic plan that unicredit will put in place after that. typically, investors are looking at the amount of potential issues. 5 to 9, 5 to 10 is the rough record of the new money that could come into the company. so there's a number of disposals. the bank in poland a mistake in the turkish operations, and also they could. >> and we know some disposal is in place there, which raises the issue are they going to be internationally as well. it's kind of a victim of its own successes in that area? >> exactly. exactly. if you look at the stream of operations, the german investment banking operations, so they are operating as for years. and at the moment, they're actually a good team of the new regulation to test an additional 1% extra layer of capital because they are the only italian systemic financial institution. >> and when we talk about unicredit to its peers here, of course other banks in the italian sector have seen a dip in their shares. when you look at a bank like intesa sam paolo. and unicredit are actually concentrating about two-third

att were the problems unicredit that got us to this place?est had the second ratio across europe. the straw that broke the camels back was clearly the issues that need to be addressed. underwrite, and the november strategy day, there is still a hodgepodge. this is a bank that went through massive acquisition spree and they've written off $15 billion .- 15 billion euros it looks very bleak, frankly. what kind of capital do they need to raise? how will it play out and where with atlantis in terms of cleaning everything up? problem is, where the , there'sey need to do something they could do there. there's a lot of tidying up around the exits. in terms of how much they need right now, it depends what your view is on the bad debt. really the coverage ratio of 50% that's where in the market is getting to between five and 10. it's quite daunting. anna: you mentioned some of the assets that could be sold. were talking about a lack of ambition may be around that. what can we expect then from the new ceo? of the high-profile ceo changes at other banks

unicredit is the only italian systemic bank. jonathan: unicredit has a lot more interest. also very important. they had a better capital position and that is one of the reasons they performed, and a better insurance asset management business. it's capital to its loans is considerably lower. tom: i greatly appreciate that perspective. of a jesled by moments staley interview yesterday at barclays. there was a big uproar about fortress and citadel playing off jpmorgan and james dimon. if we had citadels of banking in europe, why can't these guys do a cash call and issue debt? what are they waiting for? jonathan: i think with unicredit, there is no credibility at the moment and they have asked that -- assets they can dispose of. if they begin to restructure, and the november results were reporting. place some into proper restructuring, even though it will be diluted, i think you will have a lot more happier shares that are prepared to underwrite a significant amount. if you work on the assumption that you want this bank to have 12% or 13%, those are the right numbers. tom: i k

sort of a change -- you know, turn the page for unicredit to benefit. market is betting on that they will get that news after that board meeting. for the time being, unicredit seems to be bringing up all of the banks in italia. back to you for now. >> thank you, claudia. we'll certainly bring you the outcome of that meeting as soon as comes. >>> meanwhile, still to come here on "street signs," petrol is running short in chance as workers protesting labor reforms blockade oil refineries. we'll bring you all of those details -- next. >>> good morning and welcome back to "street signs." we want to bring you up to speed on a developing situation in france surrounding these labor and now 2,000 petrol stations are running dry in the country with an intensified oil strike causing widespread fuel shortages. workers who have been protesting against labor reform halted operations at some refineries and blockade the petrol depots. french oil shut down. and in the south of france. >> the imf says that the eu should off greece, quote, up front and unconditional debt

it is benny the headlines, but watching unicredit -- beneath the headlines but watching unicredit. francine: especially if the nonperforming loans keep putting an damper -- a damper on the italian stocks and the european stocks. nejra: we start with some news breaking in just the past two minutes in turkey, markets are giving a vote of confidence to the latest move by the prime minister elect. he has decided to keep the last man standing of a market friendly team credited with turkey's economic boom. it is a boost for british prime minister david cameron and his campaign to stay in the european union. older voters are switching to his side according to the or be survey. 55 plan tors over vote to stay in eu, up from 34% in march. the referendum is june 23. euro area finance mise -- ministers meet to discuss the next step on greek debt relief. will alsonisters debate the largest problem, how to restructure $360 billion of debt by postponing payments and lowering prices. greece has started to gradually evacuate their largest refugee camp that sprung up on the border with macedonia. it

first, breaking news concerning unicredit.considering ace stake inle of its an online bank. they are also reviewing holding in poland and turkey. it bought the state back in 2014. unicredit needs the cash. is the second worst performer in the bloomberg european financial index. scarlet: pretty dismal showing so far. repeatedly ruled that a share sale. would be enough to raise capital sufficiently? >> i don't know. i'm not sure yet. there has been a lot of pressure on unicredit. there is a big italian bank crisis. big banks like unicredit have been asked to contribute to try to solve it. it's all that investors are also putting pressure on management changes that could include the ceo being replaced. it sounds like the bank is trying to come up with solutions to avoid raising capital. i think that has a lot of bank -- that is what a lot of banks are trying to deal with right now. scarlet: there is a huge base of nonperforming loans it is not been dealt with and now i taly is stuck dealing with it. what is the difference between

there was an ipo last week, unicredit was the underwriter.et this new fund had to take the bulk of the stock because investors on the open market weren't interested. how do we change that? does the government need to do more? there's so many questions surrounding the story. >> yeah. you are absolutely right. if you think of the single biggest reason why they are trading at a discount -- the only way to resolve that is to have some reform in the way to tell you banks can offload the loans. if you look at the repossession laws in italy, there are about four years of the european average, taking longer to work out the bad loans in italy than elsewhere. the government has made pledges along that path. the question is a need to implement them now before investors get excited. caroline: mohammed, give us a sense of which sectors you may be dabbling in, which areas you will be looking for growth. we are getting the numbers in, missing forecasts, not looking pretty. is the total, sector of interest? >> yeah. the telecom sector is a staple, and it has

nielsenlsen -- erik with us from unicredit.witzerland out with better news, which is deflation, but less deflation. there's a number of ways that the swiss do inflation. this is the all in cpi year-over-year back to the beginning of the american financial crisis. here's the great battle for stability. here's the shock and all of downright deflation. as you predicted, the vectors improving. -- hasr it escaped europe escaped the fear of deflation? erik: i think they have. i never worried that much about it. i think we understood quite well what he did and where it came from. debt is filled by households, the risk of men deflation -- bad deflation is not aiming one. your chart was very illustrative. does oil folding to the new europe calculus? newdoes oil folding to the europe calculus? the oil price is always like a one-year effect. in has increased the income and basically put a longer term prospect of growth and inflation coming back. now we get the latest oil price increases, a faster hit into inflation. if there were still so

unicredit is second to only santander as the lowest capital big bank across the eurozone.40 billion of our provisioned performing land. it is the biggest. emily: hp enterprise shares are surging in extended trading. this is half of the old hewlett-packard still run by ceo meg whitman and focuses on servers and storage for corporate customers. the company announced it is spinning off the corporate business and merging with computer sciences corp.. is this expected? anand: no, but it makes sense. to focus -- have one part of the energy focus on hardware, predominantly networking, storage, and servers, and then finding a way to exit the services business to a company that focuses on exactly that portion of the business. it is a good strategy. into acuses the company smaller piece of the pie. the risk here is that you have an extremely small pie you are focusing on, one that is on hardware, predominately selling to corporate i.t. systems. will that be the long-term revenue growth area for hpe? be seen.ins to but in the near term, the deal makes sense. shery: microsoft is makin

credit -- unicredit shares have not done well.ll be stepping down as ceo of unicredit as soon as a successor is named. we will bring you any other developments. afternoon movers this that are the results of long-running stories. one has to do with herbalife, the long story there, the accusations from bill ackman that the company is a pyramid scheme. it is being probed by the ftc. the new york post saying the ftc is scheduled to meet regarding a law enforcement matter. they do have a meeting scheduled for 1:00 p.m. tomorrow. .t is closed to the public shares are spiking. cfo sayinges -- the in a conference today that their strategic review to sell the core business that's he says it .s going very well we are watching alibaba in relation to yahoo! as well. this long-standing situation. david: thank you very much. still ahead, how one life coaching pioneer helped form an entire industry. ♪ david: this is "bloomberg market ." if you know anything about are coaching, chances you know martha -- with me is editor ellen pollock. she is ve

a leading you take economist for unicredit.ing up, we speak exclusively eo.the intesa c we have a lot of things to discuss with italy's most valuable bank. we will talk about the new government orchestrated fund called atlanta. we will also be talking negative interest rates and the impact that has on londoners. -- on lenders. ♪ [ soft music ] e.t. phone home. when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. francine: welcome to "the pulse." i am francine lacqua. to an exclusive interview, it's talk about the future of italian banking. me henance minister told will restore confidence in the system. italy's most valuable bank created this year to help the country passed troubled lenders -- the country's troubled lenders -- always a pleasure to have you in studio. , theyou look at atlante original fairy dust is now gone and people are asking whether the fund is big enough, whether it can sustain all of the troubled banks. banking shares are down. what happens next

the unicredit chief executive is leaving.his departure mean significant changes in the banks strategic land? investors claim the plan was not ambitious enough to recapitalize the lender, one of europe's most poorly capitalized lender. fromy screen joins us europe. does this pave the way for asset sales and possibly a capital increase? dan: the main challenge facing capital needs. we have reported in the last week that management may consider doing some asset sales, for example in their big internet bank. they could dispose of some of their assets in turkey or poland. they haveted earlier, always been against doing a rights issue but clearly, analysts have pointed out the to raised need anywhere from $4 billion to 10 billion euros in fresh capital they can dothink this purely by moving some disposals. it's going to be the top priority for the incoming ceo. >> how long would the successor to him last? >> i think it's going to go quickly. the bank said last night when they made the announcement that the chairman will be leading

unicredit is looking for a new chief executive. sherry: how long will that take? let's check in on the bloomberg first. emma has more from the newsroom. toa: egypt has engaged foreign companies to look for the flight data recorders for the airplane that crashed in the mediterranean last week. a french and italian company will be working with egyptian search teams to find a black boxes which could give clues to what happened in the final minutes of the flight. in afghanistan, that television has confirmed its leader was killed in a u.s. drone strike. he died in the u.s. attack along the border afghanistan and pakistan. he will be replaced by one of his deputies. the u.s. failed to make any progress in peace talks with the taliban when he took over the group last year. classes between iraqi government forces and islamic state outside the city of fallujah quickly subsided. this is the third day of a large-scale military operation to drive militants out of that stronghold west of baghdad. the islamic state has had the city for more than two years. the imf has backed o

guy: the unicredit ceo federico ghizzoni has agreed to step down after only six years at the helm of biggest bank after losing the support of investors and share price capital as well. do they have to raise money? jonathan: they certainly need more capital. one of the issues it faces is when you are trading at four times global growth, it is hugely diluted. there was a lot of things they can do, spin off assets, relieve some of the capital pressure. bear in mind, unicredit is second to only santander as the lowest capital big bank across the eurozone. and it has 40 billion of unprovisioned performing land. it is a big issue. emily: hp enterprise shares are surging in extended trading. this is half of the old hewlett-packard still run by ceo meg whitman and focuses on servers and storage for corporate customers. the company announced it is spinning off the corporate business and merging with computer sciences corp. was this expected? anand: no, but it makes sense. to focus -- have one part of the company focus on hardware, predominantly networking, storage, and servers, and then findi

unicredit is second to only santander as the lowest capital big bank across the eurozone.40 billion of our provisioned performing land. it is the biggest. emily: hp enterprise shares are surging in extended trading. this is half of the old hewlett-packard still run by ceo meg whitman and focuses on servers and storage for corporate customers. the company announced it is spinning off the corporate business and merging with computer sciences corp. is this expected? anand: no, but it makes sense. to focus -- have one part of the company focus on hardware, predominantly networking, storage, and servers, and then finding a way to exit the services business to a company that focuses on exactly that portion of the business. it is a good strategy. it refocuses the company into a smaller piece of the pie. the risk here is that you have an extremely small pie you are focusing on, one that is on hardware, predominately selling to corporate i.t. systems. will that be the long-term revenue growth area for hpe? that remains to be seen. but in the near term, the deal makes sense. shery:

remember we are watching unicredit today. will he be there at the end of the day? coming up later, we are going to be talking in an interview with berkeley's ceo, just daily -- -- jess ceo, just daily staley. got-- we've problems at deutsche bank, germany's biggest bank. we need to get this fixed. how far away are we? moody's is concern that it is going to struggle. jean: it is all about the execution. deutsche bank is still investment grade. the questioning is if you're on the outlook -- we have seen with credit suisse before, rather than any kind of critical view if you want other banking sector right now. that said, as you rightly pointed out, the business model for investment banks is challenged. probably -- you need to be selective in terms of the kind of insurance you will invest in. trading have deutsche incredibly low. is there more bad news they could push it further south? to be honest, investors are priced in most of what they expect to be on the bad news front? most one of probably the fixedred toward investors income. you got a lot more returns and a l

unicredit is having a solid day.an see it in the forms of london, the miners are moving very nicely. that is the main story we are watching. .he latest news down here >> bill dudley says the federal reserve is moving closer to raising rates in one of the next two meetings. he admitted to the fmo sees april meeting which will publish this week. >> it was a live meeting but it depends on the economy is going to evolve. we're looking at the market expectation. -- tighteningy through the july meeting looks 60% if you look the federal funds futures market. -- has: -- >> chief investment officer of global fixed income and blackrock says apple officials are likely to wait until july to gauge the outcome and applications of britain's eu referendum on june 23. france's foreign minister says total cooperation between his country and egypt after a plane flying from paris to cairo vanished over the mediterranean. other mysteries surrounding the disappearance of egypt air jet has deepened after greek authorities in this report sa

unicredit is second to only santander as the lowest capital big bank across the eurozone.illion of our -- un-provision performing loans. it is the biggest. emily: hp enterprise shares are surging in extended trading. this is half of the old hewlett-packard still run by ceo meg whitman and focuses on servers and storage for corporate customers. the company announced it is spinning off its troubled corporate services business and merging with computer sciences corp. was this expected? anand: no, but it makes sense. to focus -- have one part of the entity focus on hardware, predominantly networking, storage, and servers, and then finding a way to exit the services business to a company that focuses on exactly that portion of the business. it is a good strategy. it refocuses the company into a smaller piece of the pie. again, the risk here is that you have an extremely small pie you are focusing on, one that is on hardware, predominately selling to corporate i.t. systems. so, will that be the long-term revenue growth area for hpe? that remains to be seen. but in the near term,

unicredit is second to only santander as the lowest capital big bank across the eurozone.ion of our un-provision performing loans. it is the biggest. emily: hp enterprise shares are surging in extended trading. this is half of the old hewlett-packard still run by ceo meg whitman and focuses on servers and storage for corporate customers. the company announced it is spinning off its troubled corporate services business and merging with computer sciences corp. was this expected? anand: no, but it makes sense. to focus -- have one part of the entity focus on hardware predominantly networking, , storage, and servers, and then finding a way to exit the services business to a company that focuses on exactly that portion of the business. it is a good strategy. it refocuses the company into a smaller piece of the pie. again, the risk here is that you have an extremely small pie you are focusing on, one that is on hardware, predominately selling to corporate i.t. systems. so, will that be the long-term revenue growth area for hpe? that remains to be seen. but in the near term, the

banks like unicredit, which is thinly capitalized than some of its bigger european would have to taparkets at these low valuations. mark: thanks for joining us. bloomberg news finance reporter. takes the helm of the second largest u.s. carrier today. highlights from our interview. ♪ live from london and new york, i'm vonnie quinn in new york in for betty liu. and i mark barton. this is the "european: vonnie: it is time for the business business flash -- bloomberg business flash. it was below estimates and a big reason that there was a solid rise in home building. home construction was a bright spot for the u.s. economy and that is expected to continue for the rest of the year. manufacturing rose at a slower rate in the u.s. last month. factories still struggling with weak global demand. fell at theg index level that indicates the line between stagnation and growth. ande is a big transaction the paper business. the largest company in the business has agreed to buy warehouse spurs unit. international paper says once the deal is done, annual cost savings will be $175 billion. that is yo

erik nielsen and unicredit on janet yellen, central-banker to the world.k the talk of a weaker yen and yuan. and a generational change in riyadh. the mystery that is saudi arabia's new oil policy. good morning. "his is bloomberg "surveillance from new york. '

the ceo of unicredit may be forced out by investors.lders met on monday to discuss a possible shakeup. they gave the chairman orders to draft a plan over the next few months. he isco biz own eliminating thousands of jobs as regulators step up pressure. madea group is looking to raise its stake in cougar -- in kuka. inillustrates a surge chinese investment in europe. kuka says it will evaluate the upper. the scandal over the flawed fuel efficiency tests has gotten bigger. now suzuki says he used an improper method for testing how its miles to the gallon cars get. shares are down 15% in tokyo. last month, mitsubishi said it had overestimated mileage ratings in four of its models. scarlet: it is time now for our bloomberg quick take, where we provide context and background. we begin in poland. it began the 21st century in a positive note. but an election last are caused a political shakeup. when there wasse a parliamentary majority. peopleised a poland for left behind by the economic transformation. it overhaul the nation's highest court.

. ♪ francine: the unicredit ceo has faced a torrent of questions.after lending growth led to an erosion and in net income fell. he is not worried about bank strength and he is confident the lender will meet 2016 credit -- earnings. >> i don't consider critical the capital position it wiki working -- position good we keep working at -- [indiscernible] we have created capital against much more banks. we will continue in this way. francine: coming up later, we speak to italian finance minister. we talk about capital needed in the banks. this new fund expected to sure up some of the bad loans. tomorrow here on the pulse, we banking to from beer. desk rosenbergn is down. -- carlsberg is down. let's take a look at the numbers with ryan chilcote. i know you are great reporter when it comes to numbers. problematic. the key to kuwait is -- russia is problematic but the key take away is china. the luxury market was in decline in china but how many people realized the chinese are drinking less beer? why is that a problem? that the -- that led to a decline in 1

unicredit is content -- considering selling a stake in reviewing its holdings in poland and turkey.hat's from people with knowledge of the matter. investors are trying to replace .nicredit's ceo barclays will learn by early next year if prosecutors will file charges in connection with a $10 billion fundraising effort. the lender is being investigated over a capital injection from private investigators in abu dhabi. the money health are clays avoid a government bailout. and 2/3 of americans would have difficulty coming up with the money to cover a $1000 emergency according to polls from the ap, which found americans' financial positions are as precarious as ever. 38% of households say they would have some difficulty coming up with $1000. still ahead, using the to profit off of wild swings in the market. intech, which has been beating the indexes with its unique methods. ♪ david: this is "bloomberg markets." between fed hike talk and brexit fear, there are enough factors causing uncertainty in the market. our next guest has a math-based trading model to profit off of volatility. joini

unicredit down 3.5%. it is one of the banks backing atlantic.are seeing into the sao paulo fall -- into's us and paulo fall. valued at $1.2 billion. deutsche bank also falling today after u.k. regulators faulted in bank for serious lapses efforts to thwart money laundering. this is according to a person with knowledge of the matter. , let methe bloomberg show you currency markets. father-yen unchanged, but they yen still near an 18-month high after it climbed as much as 0.3% earlier. dollar-yen, definitely one we are keeping an eye on. the best performer among g-8 and currencies. what is that doing to stocks? tumbled theopix most in 11 weeks over in japan. also, nikkei volatility, that rising as the yen has been strengthening, widening the gap with the vix index in the u.s. in the currency market, it has also been about dollar weakness. if we take a look at the dollar, the dive has been giving gold a bounce. gold is trading near its highest in 11 months. it is closing in on that psychological $1300 an ounce level. , hedge funds have been missing

the unicredit speculation continue sending it shares 2.3% lowers, the chief executive could resign asoon as tomorrow, according to people familiar with the matter. they say the board will meet tomorrow, basically, there is general discontent about governance, the bank's performance. he's cutting thousands of jobs and selling assets to comply with tougher regulatory standards. but he has repeatedly ruled out a share sale, leading it among europe's least capitalized banks. shares today down by 2.33%. will tomorrow be the end? interesting data today out of the eurozone. we had growth in the eurozone private sector, unexpectedly slowing in may, signaling the region won't maintain its a stellar growth and experience in the first quarter. we had a pmi composite of manufacturing and services that fell to 52.9, as you can see there from 53. in thel, an increase forecast. the economy expanded .5% in the first quarter. that was the quickest pace in the year. it's inflation is lagging, -.2%. a far cry from the ecb's goal of inflation just below 2% on the horizon. there is evidence that the stell

unicredit is looking at measures including selling as much as 50% of one company.are looking to replace the ceo who has repeatedly ruled out a share sale. espn is reporting the national football league will return $723,000 to the u.s. government. it all stems from the pentagon displaying adriatic space between 2012 and 2015. it was designed to promote the armed services. senators criticize roger goodell for letting the teams take the money. that is your bloomberg business flash of eight. let's get to this om shell trading case which has come to light today originating from trade to the foods chairs. are some of the details from news conference earlier today. artistic patient in this critical scheme, tom davis has already plug guilty and is cooperating with the government investigation and case. was arrested yesterday in las vegas. allegations.ely he has the presumption of innocence and a very capable lawyer. the case will play out in federal court like every case we bring. what happens now in this case? walters'm sure that will put up a fight. his lawyer has come o

i think everyone is expecting the new executive unicredit come up with capital raise and there are alsoe investment banks, potentially deutsche and barclays and should those not bear fruits short-term they could come up with --. and also looking at in spain and the like of santander and --. lower than before the --. >> we've seen european banks enjoy a little rebound here kicking off what was a terrible start to the year. some people were citing optimism over the greek deal. from the credit perspective does this make a difference to the european banks? >> to some extent yes. lot of issues remain. at the moment it seems to me all those improvement at the expense of the --. k kah. >> do i as a shareholder buy in whole do i buy with the intent of selling off again in three years? how should i think about my investment strategy is this. >> spanish bank wills tell you probably play the range. by one over sold and capital raise coming up and have to readjust because the community will prize the capital raise before the spanish election and the brexit referendum. physical the spanish election

performers aren't how banks because private investors snubbed an ipo by ankle papillary -- by -- unicredit is one of the main and you will see its shares are down by 5%. a regulators are sent to decide whether -- is eligible for a listing on the exchange after -- if the bank does not get a listing, they will buy all the shares. a separate story today for the italian lender, it has agreed to to a group that includes bain capital and advent international. 1.7 4a deal valued at billion euros. euros -- 1.74ion billion euros. -- upset by contraction in france. what was interesting was comments from market economics which brought out the report and said the gauge points to anemic factory growth in the region. the report also showed price declines used in april. this news comes after data on friday showed the economy grew by .6% in the first quarter. that was the best growth in a year. still minus two -2%. -- is still manufacturing data here as well, hassan aiding. a first look at manufacturing. i want to point to something -- some mario draghi headlines. he is speaking at an annual meeting and p

which is increasing the speculation of more write-down, and the capital raises at least from the unicreditave talked about brexit, and the bank of england has considerable challenges, and doing a huge amount of contingency planning for june 23rd saying that it could raise mortgage costs, and he is campaigning to stay on the side here, and he says that they have house prices which could be a difference of voting to leave the european union. and meanwhile n the uk, the production was poor. not necessarily because of the brexit, but because of the cycles of the uk and the u.s. on compared to everybody else. tomorrow is the bank of england meeting, and is it is going to be interesting if they are more dovish in anticipation of the brexit vote in the commentary or the vote. one thing that uk has done is to try to bolster the economy with great relations of china, and remember they invited the premier there in october something that he described as visionary and historic, and now the queen has put a foot in it, because the garden party of which the chinese have been rude to the monarch last time

the unicredit, one of the big italian banks, the ceo at a news conference in madrid suggesting there'shing wrong, no dramatic changes are about to happen despite it being widely reported that he could be on his way out as the bank looks to become more profitable and potentially raise up to $10 billion in order to strengthen its balance sheet. another move, chrysler, a german magazine reporting that it -- alleging over the weekend that it too may have used illegal software on emissions. they are suggesting there's no problem with emissions, though the stock is down. the biggest faller is bayer as it prices the bid for monsanto at $62 billion in cash. it's a cash offer that they are making here. the analysts are looking at what might have to be sold. will it be the seeds operation, for example, at bayer in order to successfully do a deal with monsanto if of course monsanto agrees, then you are back to square one. today in the uk is one month to go until you get the referendum on whether the uk should leave the european union. boris johnson who you see here leading the out campaign has re

. >> yes,london is outperforming, and two stocks, the unicredit is rising to the top size on talks ort it is going to sell-off some of the bank stakes to plug what could be a $9 billion capital requirement moving forth. the biggest loser is rishmont which is the owner of cartier and carte blanche. they say that the sales are stro strong, but now buying back inventory, and destroying it w which is so bad in the area of luxury goods. and some of the uk stocks have gained in the session, and notable that the home builders are there, and front and center is the uk's underperformance because of the threat of brexit june 23. and importantly, the britains are living if spain or say the south of france have lost their appe appeal, but if they have been outside of the country for 15 years, they can't vote in the referendu referendum, and that is crucially important and it is up to 2 million people, and most of them are resident around the european union, and if the vote is going gaiagainst the part ofe european union, the residency of the homes goes into question, and that is a hard core stay

finally, unicredit having lower, and a number of the italian banks heading down today.lators are going decide as soon as today whether the bank is eligible for listing on the lawn exchange. this is after investors showed little interest in the lender's 1.5 billion increase and a rescue funds has a step that. guy: we are going to see how big that number is. thank you. let's talk about oil. $46 per barrel, depending on whether you're looking at wti or brent. investor sees it rising to about $60 per barrel. mark mobius is the executive chairman at templeton, and he spoke to manus cranny. >> i don't think you need a freeze. i think the market will handle it. you must remember that the demand for oil continues to rise; it is not going down. the recount globally in the u.s. has gone down precipitously. this only means that the supply have got to diminish despite with happening in the middle east. the demand will continue to rise 1% or 2% and the combination of this means that we will see a higher price. n manus: you think we could trade through this? $30 is what we are writin

shares are unicredit higher. the ceo federico ghizzoni is being replaced.e is thought to be out of touch with shareholders. time for first word news. in albuquerque, a protest outside a donald trump rally turned violent. demonstrators burned t-shirts. police pepper sprayed and through smoke grenades. protesters disrupted trump inside. has arrived in japan. he will attend a summit of the g7 nations tomorrow. he will become the first sitting president to visit hiroshima, where the u.s. dropped an atomic in 1945. a new report says a brexit could force the u.k. to extend austerity measures through the next decade. it says britain may face a budget deficit of $44 billion if the company leaves. that could lead to more spending cuts or i/o borrowing. -- higher borrowing. coming up, yelling at yellen. has the fed slowed growth? an economist reveals what yellen needs to do immediately. and later, wilbur ross joins us on set. now he is putting money to work in two very beaten-down areas of the market. more go coming up. ♪ jonathan: this is bloomberg . i'm jonatha