Welcome to the program, this is countdown. We have numbers coming through from the German Chemicals giant. They toldthrough we have numbers coming through that came through at 1. 9 billion euros, beating the estimate for the First Quarter. Going into these numbers, we could see volume putting pressure on cost and the product mix. We are looking out for anything they say on the ability to cut cost, also there are emerging market dynamics, as expectations for growth have been on the wane, and we are getting various comments coming through. The forecast is based on the average oil price of 40 a barrel, which is interesting. Trading a little above that. The items are slightly below 2015. Their Sales Numbers are coming in at 14. 2 billion, and actually actually a touch below the estimates of 50. 1 billion. They see that in 2016, they see considerable sales decline. That said, they confirmed that outlook. Interesting comments coming through for the future of this year, considerable sales decline they are talking about for 2016, but concerning the outlook and estimates that beat in terms of that number. Lets get to some other breaking news for you this morning. The swiss reassurance giants are reporting numbers this morning. They have named a new ceo for reassurance this morning, net income coming in at 1. 2 billion u. S. Dollars, ahead of the estimate that was 969 million. A bit of a focus going into these numbers. Whether they say anything about the earthquakes they saw in the Second Quarter. Japan,thquakes we saw in the kumamoto earthquake in particular, what they will say the value what they will say about the value of that, and the cost of that to the business, thats something analysts are looking for. We could see the nine european weather the benign weather playing an impact as well. First quarter premiums and fees 7. 94 billion dollars. Lets get to some of our big stories on the macro front, because we need to talk about what is going on in china. A this a yuans story or dollar store . That is one of the questions the market is dealing with this morning. We are watcng out for the yuan as a regulator in china has responded to over nine moves in the dollar by dismantling the yuan, as it was in 2005. But we go back to the relationship between the fixing that we see for the dollar again for chinese currency, and tied the debt in with the bloomberg dollar spot index. We are following the dollars move against major currencies. That is coming from all lot of analysts who suggest the size of the move might be very big. Actually, it does not suggest apollo busy shift it is not does not suggest a policy shift from the pboc. Yesterday, we had that big move in the yen, and we are seeing continuing moves on that gdp number. By 4 10ar index is down of a percent. The yen is at 107. 22. Searched yesterday, having the best start of the year since 1995. On the commodities market, gold heading for its biggest weekly increase since february. Oil is a little bit sluggish, heading for its biggest monthly increase yeartodate, u. S. Output dropping. David joins us from hong kong. David joins us from hong kong. Gfks monthly sentiment gauge fell to minus three from zero back in march. The measure of Economic Outlook dropped from 14 to 12. That is the weakest reading analyst three years. Carl icahn says that he sold out of his position at apple because of concerns over the relationship with china. He told cnbc that he offloaded most of his or manning stake in most in february of his remaining stake in february. The former House Speaker john boehner says he would back donald trump for president in november and not vote for ted cruz. He described ted cruz as lucifer in the flesh, during a talk at stanford university. He also said that he and trump are texting buddies and play golf together. Ted cruz says that John Boehners comments show why he and Holly Fiorina are a better choice for the white house Carly Fiorina are a better choice for the white house. Soccericted fifa official was covered by fifa insurance policy. He says he is entitled to reimbursement of fee stemming from his indictment and exhibition to the united states. Facebook is revealed they spent 12. 5 million over the past three years protecting mark zuckerberg. Lester they played pay more than 4 billion in zuckerberg security making him the most expensive percent to protect on the s p 500 listed companies. Oracle spent 1. 5 million for larry ellis security. The cost of tim cook was over 200,000. Anna lets check out what is happening in the market in asia. Nejra cehic is here with the details. The asiapacific index excluding japan. We are seeing this benchmark decline, heading for a weekly drop though it is still up on the month. Across the region you are seeing some gains in china and losses in asia but the biggest losses indexeen in the hang seng its also because Chinese Energy users have been reporting poor results. Its First Quarterly loss since 2000. China responding to the first overnight tumble in the dollar by strengthening its currency fixing by the most since 2005. That is when the paint was the peg was dismantled. This white line is the dollar ou on and the dollar yuan. Extreme, relative to the small moves in recent years, but analysts say it expresses increased confidence in the dollar. Thats probably why if you look at the onshore and offshore renminbi, pretty much unchanged today. Speaking of the dollar that has dropped. Its coming in weaker than forecasts, showing at the economy expanded to its lowest quarter in two years. We saw the yen jump yesterday after that decision from the bank of japan. We are seeing dollar yen at an 18 month low. Anna lets talk about what is going to be happening in europe later today. Mario draghi will get a clearer view of what will be happening in europe when these figures are released simultaneously. The ecb president can expect to see another quarter of growth, but probably not enough of it to spur an uptick in prices. Lets get to jeff black, for senior european economics correspondent. What are you expecting . On the face of it, we have gdp for the First Quarter. Inflation data for april and unemployment data for march. As you mentioned, there is nothing spectacular expected on any of those three this morning, but we may reach the 2008 peak in gdp nominal terms. Is that a recent a popout the champagne corks . Probably not. Still a very high rate of unemployment. And as you mentioned, still low inflation. Anna how significant is this . It could have real implications for the relationship, couldnt it . Has been a lot of chatter about this subject in the past couple of weeks. In the immediate term, even if they do get downgraded, which is not a given, that doesnt necessarily mean catastrophe for the banks. They have other types of collateral that they can pledge for refinancing from the ecb. In the shortterm, it may make them ineligible for qe. That is not something that should plunge the bond markets into chaos. It isnt a very good sign for the country and the countrys government. That will need to be dealt with over the longer term. Anna thank you for joining us. Lets bring in our guest for the morning, lawrence hathaway. Chief economist at gam. Great to have you on the program. Lets talk about the European Growth story. Do you focus on signs of the output gap falling and unemployment coming down . Do you focus on that it gives you hope or do you look to the ecb to do more . The European Growth story is pretty intact. Different parts of the country complex and different sectors. There is a lot of pent up demand. Growth this year will probably come in at 1. 5 . We could do better. All things considered, i dont have great concerns about eurozone growth in 2016. Anna does that mean the ecb is on hold . We got a piece of the press speaking in this newspaper saying that negativity rates cannot keep going to much lower levels. A lot of people questioning where the lower bound is these days. That message was enforced by the bank of japan decision. Surprising decision not to pursue to be privately honest, i think the ecb probably overdid it so much. Inflation is really only down at these negative levels. Because of Energy Prices which have rebounded. I think that the ecb will because her to its mandate at the end of this year without having to do much about it. Anna how good is the rebound in oil and Energy Prices for the european economy . In general, it is not such a great thing. To some extent they chosen the wrong inflation target. That should give the more confidence that the underlying story of disinflation is not there. Having chosen a particular target, i think they would notice some additional lift in inflation. If for no other reason that it puts it on a more stable path. Anna we are really focusing on the periphery of the eurozone today. We just heard jeff black talking about it. They could lose their last investmentgrade rating. It might not cause panic in the shortterm, but will not go down well in terms of the ecb. And the Bond Buying Program, maybe they cant by portuguese anymore. Are you worried about that . I wouldnt worry about that on the basis of a ratings change alone. Fiscal consolidation, structural adjustment, those are the things that both the market and ecb will be looking at. Bond yields can only jump so much in this environment. Anna Larry Hathaway stays with us, from gam. Later on but we will talk about the chinese story we mentioned at the top of the later on, we will talk about the chinese story that we mentioned at the top of the show. We will have a bunch of data out of europe, starting with french gdp. Then euro Area Unemployment and gdp figures. At 10 00. And at 11 30, a russian rate decision. At 1 30 p. M. , we get a rating of canadas gdp. A couple of countries creeping onto the radar later in the day. Also coming up later is the Bloomberg Brexit debate. This exclusive conversation about the u. K. s membership of the eu. Norman who was the u. K. Chancellor when the union was formed. And another former chancellor who served in margaret thatchers economist. Side, we havein these three guests. That should be a fascinating conversation. Francine lacqua will be hosting that debate. That starts here on bloomberg. , chinas centralbank boosts its yuan fixing by the most in a decade. Anna welcome back to countdown. The hang seng is down by 1. 3 . They are without japan. Those markets are closed for a holiday. In london it is 6 19. 7 19 in madrid. Lets talk telefonicas numbers. The firstquarter numbers coming in at 3. 4 billion. That is exactly in line with the estimate. They are reiterating their goals for 2016 and their goals toward their dividend. I touch below the net line for the First Quarter there. That seems to be the focus for our bloomberg colleagues. Going into these numbers, a reminder that this is a business that has been streamlining and refocusing. Since 2013, it has exited ireland, taken itself out of the czech republic. It is agreed to sell its u. K. Operations and is using those assets to acquire ands acquire in spain and brazil. U. K. Ceo will to be joining us at the top of the program in the next hour. We will talk to him about the broader operations. Isna after central bank responded to a tumble in the dollar. The pboc is responding to the depreciating dollar. It is depreciating the yuan. If investors were to view the tuan as depreciating against h he dollar, they might be shaken and it might spur outflows which could jeopardize the improving economy story. Anna the other big story out of has been the last week the regulatory response. Talk to us about what is going on. There were some reasons for Commodity Prices to lift. There is an improving Housing Market and that has supurred purchases of the commodities used in construction. Some of the bigger players moving in on this, as we saw property prices improve over the last couple months. The market generally getting better. Happen ins wont to china, speculators got in on the game. The government has put in place a series of curbs at various commodity exchanges throughout china to curb that speculation. What we are seeing here, in terms of the drop in volumes thesehe past week may be curbs having an effect on the speculation. Anna thank you for joining us. Greg in our shanghai bureau. Lets get back to gary hathaway. With yourweigh in thoughts. It seems this big refixing story is not causing a panic in markets. This seems to be an other curr c ncy kind of story. There is a chinese angle on this as well. The first is that the Chinese Authority would like to create a twoway market in the yuan. Opportunities to see a bit of yuan appreciation are welcome from that perspective. Figure the economy has improved, so some movement on the currency is allowable at this point. Anna i was looking at this story last week about speculative bubbles in commodities in china, and one of my colleagues was describing this about a game of whack a mole and the bubbles that keep popping up in china. There is little doubt that in the long run, chinas economy remains very in balanced. Not enough activity either. So those problems which are now well known but remain unaddressed are at the top of the list. The strong desire by chinese residents to accumulate foreign assets, thes capital outflows have to be managed in a way that is consistent with stability in the market and chinese economy. Capitalnaging this outflows and reducing the imbalances, do you see any activity by the regulatory forces to take these issues on . They are well understood, but are they going to be interacted upon . On the capital side for the most part it has been cosmetic. Try to curb certain parts of the illicit capital outflows. Very little has been done. Its a big task and they had better get on with it soon. We seem anna we seem to be going higher on the commodity since february how much of this is a dollar story and how much of it is has has to do with real enthusiasm for the commodity . There is a dollar issue, no doubt about that but then would become more differentiated. So for example it reflects some unwound that are being with movements back to norms, relative to Commodity Prices. The big mover is oil and oil represents increasingly the big reductions in capex. The wells will be depleted. Heard for a calling of the bottom of commodities in china. Do you share his view . There is a certain demand. Oil is a more interesting story. Anna we have gdp figures from france. With the economy have recovered from the devastating paris attacks last year. Iaaem anna welcome back, this is countdown. Lets bring things back to europe. Lets talk about the earnings from various french companies. The First Quarter companies coming from the french drugmaker. Net profit 7. 22 billion. A few more details coming through on their attempts to take over medivation in the u. S. They are saying the price is a good premium. They have written a letter and they want to take over this. They are searching for new avenues as growth and generics ease into their sales. A real focus on what they are saying with regard to that potential m a. 0. 4 was the estimate for quarter on quarter gdp. That looks to be a touch ahead of estimates. The actual number theyre coming in at 1. 3 , against 1 . Ahead of the estimates. Of course the French Economy still recovering from the dreadful effect of those attacks that we saw last y ear. I want to try to see if i can find this breaking news on casino. They are an operator of supermarkets in the French Economy, saying that they are selling their big business for evaluation of one billion euros. The casino group saying they are selling that business this morning. No other details coming through. Lets get over to david ingles. Consumer confidence has fallen to the lowest in 2014 at amid concerns about the u. K. Referendum a measure here of Economic Outlook dropped to 14 from 12. That is the weakest reading in almost three years. Says it sold out of its position in apple because of concerns over the companys relationship with china. He told cnbc that he offloaded most of his remitting stake in february. Keep in mind that china shut down apples itunes, ibook, and movie services. Showing that the company is not immune to the reach of beijing regulators. Pay the Legal Defense costs of an operator covered by a certain insurance. Is occurring to a judge who says he is entitled to reimbursement of the costs extending to his extradition to the united states. Facebook has revealed that it spent 12. 5 million over the past three years protecting mark zuckerberg. They paid more than 4 million in zuckerberg 14 million in zuckerbergs security making him the most expensive person to protect. Amazon spent 1. 6 billion protecting jeff bezos. The cost of protecting apples tim cook was a little over 200,000. Day,l news 24 hours a powered by our 20 were hundred journalists in 150 news bureaus around the world 2400 journalists in 150 news bureaus around the world. Anna lets turn to the news around the banking sector. 4. 70 billion against an estimate of 4. 5 2 billion. It seems what analysts what way off on here, the estimate had been for a 1760 17. 6 million danish krone are on the loan and theyve done it right back. Interesting to look at another bank beating estimates though they are sticking to their fullyear outlook. Asian stocks are on track for a weekly decline as investors weigh earnings in the region. Look atirl nejra the index excluding japan it is declining today. Japaneseapan because market are closed today. We have seen losses in chinese markets. With seen some losses there, too. It is still up on the month as is the asiapacific index. It is on that on course for its him first backtoback monthly advance since april 2015. If kept their stimulus unchanged. Ive got the dollar yen here but also the dollar. Weve seen this dropped to an 11 month low. Number came. S. Gdp in weaker than forecast, it shows the economy expanding at a slower pace in the past two years. We saw the yen jump unexpectedly. Look at the weaker dollar driving that dollar yen down to an 18 month low. Seeds sees a slide. With the dollar pain, you are seeing commodities gain. Oil is poised for its biggest monthly advance in a year. Part of that is down to u. S. Production dropping to its lowest since 2014. That is in blue. Pushing commodities higher and is set for their best monthly gain since 2010. Anna lets turn our attention to whats happening in portugal. Today there debt rating could get cut to junk by the last of the rating agencies. Us. Y hathaway is still with db rs. The p. M. The exit expectation is because it is stable they wont jump over stable and go straight to a downgrade, but the risk is there. If the risk work to be realized he would see the ecb Bond Buying Program unable to acquire portuguese debt. The worst performing bond market in europe. I think it will be an interesting day. I dont take we are done with this story yet. Using portugal going up. Excited to be here because we will be talking to the head of the european commission. We will get a hit on this as well. On and talk about what is happening in greece as well. Anna there have been a lot of economies around europe this year even without governments. We have telefonica this morning talking about how they have done well in spain, talking about how they have a revenue increase for the First Time Since 2008. The stability is overrated. I think it will be interesting to see how it translates into the u. K. It does seem to have an effect already because of the political instability. If it were to be realized, how much more effect would we see. Anna larry has some nice ideas. This is certainly the bellwether for this drawn back to the u. K. Currentaccount deficit which needs to be financed so if there are concerns is probably going to be reflected on a weaker sterling. I think the natural emerging currencies that are still undervalued in mexico our case in point. Anna so this is a by mexican pesos, sell the pound kind of trade . I think the security severity bounced back. Because there has been some Short Covering it makes it more interesting. Anna thank you for your chart of the hour. Its been quite a week for Central Banks. Most notably the bank of japan. Lets get the thoughts on this broader central banking subject. We touched on this at the top of that program but where are you seeing this old question. When you look at the moments in market data, it seems to be a lot of and Central Banks, what they do and dont do. How much were you caught offguard yesterday . To the honest with you it is not that surprising. They facing normal pressure not to go to the deeper interest rates. Savers are concerned about the prospect of negative interest rates. Number three, ahead of the g7 meeting in tokyo, we are beginning to see a shift here. The bank of japan is leading that shift. Essentially Central Banks are reaching the limits of what they can do and we need more policy support on the structural side. Anna i heard somebody yesterday describing the boj as having to act like the grownups. Because of the commitments everybody keeps making about not using currencies in a way to gain competitive advantage, and calling on fiscal players to do more. The jet the bank of japan. Is a debate emerging and i think it will come to the four next month. We have a lot of japanese data yesterday and not all of it was that bad. The applicant ratio at very high levels. We have poor legislation in positive territory. I think the bank of japan was moving,tified in not but also in putting this pressure back on other policy instruments. Anna do think they will go to negative territory from here . I think we are largely done with this particular move. I dont think it is warranted anymore. Anna thank you for joining us so early on your friday. Amazon surged in extended trading after earning speak estimates. Sales fell thanks to new delivery options and its prime and cloud services. A Strong Quarter from amazon in its First Quarter reported just now. The results are interesting in many counts. Is now growing in the First Quarter faster than it has in four years with a growth rate of 28 . A lot of that is not even as interesting. Yes bottom line and profitability from amazon. Com, the famously barely profitable company. Impressive operating margins are driven largely by the Amazon Web Services business. Web services were about 60 of the company profits. That business is growing at 64 yearoveryear. Rapid growth in Amazon Web Services driving the rest of the company to a picture of profitability and topline growth. Anna just getting some numbers through from the Italian Energy giant. The First Quarter adjusted net loss coming in at 479 million euros. Ofs is an estimated net loss 12. 3 million. That does not look as if they have managed to keep up this trend or the European Energy is mrs. Beating estimates Energy Businesses beating estimates. This is one that like any others, have been forced to cut capital spending, postpone or cancel expensive exploration projects. Its interesting to see what they have to say about capital expenditure. They talked about that being cut this year, exiting the 17 drop. Also, anything they say about operations. An the project has been delayed several times. Up later on bloomberg programming, you can watch right here. The exclusive conversation about the u. K. Membership of the European Union. The man who was the u. K. Chancellor when the European Union was formed. Lawson, an, and nigel chancellor who served in margaret thatchers cabinet. Well atree guests as 8 30 u. K. Time. You can watch that here on bloomberg. Up next, the road to success. Record fourth quarter. They managed to turn a loss in europe into a profit. How did they do that . We will speak with jim farley next. Anna welcome back, this is countdown, live from london. Here in london it is 6 48. Lets go to david inglis. He has the Bloomberg Business fax. Lets talk about linkedin. Extendedny surged in trading after posting a betterthanexpected forecast for the Second Quarter. It also raised its fullyear sales guide indicating it may not be as bad as later this year. It had recalculated. Some strategic moves. Is steppingember down two years early after criticism that he went too far in probing potential wrongdoing by the company. He was left isolated after he saw to examine potential links between Board Members and legal cases starting in 2014, according to people familiar with the matter. He has the responded to requests for comment. And the producers of what was one of the most popular tv shows in america have filed for bankruptcy. Idol and other core entertainment are seeking for protection from 400 million of debt. It was the number one program in the states for a record eight years, drawing 30 Million Viewers at its peak. That is your Bloomberg Business flash. Anna lets turn our attention to the car sector. Ford motors has recorded its best quarterly performance on record. The company made a pretax profit of 430 million in the continent up from a loss last year. Lets talk about the earnings. This profit that you have managed to generate in europe. Tell us how you did that because this has been a lossmaking part of the business for a while. It is really a tremendous a competent. We made 430 million, topline growth of 6 . Our cost went down and our revenues went up. Anna that sounds like a recipe for profit. What is it that is driving it . Is it some thing you can put your finger on . Particular models or particular regions . We are selling quite a few suvs. And commercials. We are number one in europe on commercial vehicles. Theyre important for our future. And our cost, we reduced both are structural and contribution cost. Anna how do you do that . How do you reduce your cost enough to turn a fairly sizable profit in europe . We are focusing on our admin and selling expense. We did announce voluntary separation programs and reducing the material and logistic costs. Just sweating the assets of the business. Anna i have a chart here that shows the european this is the eurozone unemployment rate. Still at elevated levels of 10. 3 , it has been as high as north of 12 . How do you sense that in your figures . We are seeing a couple of detailed things in the market. First of all, people are buying much nicer for its. Fords. We have seen people buy more expensive models. We are being careful where we participate in growth in europe. We are seeing really solid growth in germany and the u. K. Anna can you sense that where vw is moving out, you are gaining and others are getting as well . Can you see a lack of trust in the vw brand . I dont think so. Our performance is related to our new models. We Just Launched a bunch of new products from mondeo. Our new cvs, our new suvs. We have a new small utility up 50 . I think that is what is driving our performance. Anna does the sector have a lot to do in terms of regarding trust . He seemed to be quite far from the scandals we have been talking about with vw and mitzvah she motors. The sector and mitsubishi motors. The sector as a whole, are they asking more questions . There is nothing more important than the trust between our brand and our customers. We have a lot to do in our industry. Ford are proud of the fact we do not have any defeat devices on our vehicles. This is a really hot topic in the u. K. You signed a letter in conjunction with a lot of other Business Leaders in the u. K. In support of staying in the European Union. What does it mean for ford to stay in . We have had a lot of momentum in our business. The u. K. Is our number one market in europe. Having access to the free market in europe is absolutely critical. That stability, lack of uncertainty is really important for our 14,000 employees. Eurosort one billion worth of engines to europe. That is a huge risk with any trade uncertainty. Anna would you see yourself holding back on investment in the u k if there were to be brexit . We can speculate. We are doing a lot of simulation as any business would do, but we do with facts. On the 23rd, the voters will decide. For us, that stability and certainty around trade is a critical issue. Anna what kind of modeling are you doing . What kind of uncertainties are you trying it is difficult to find the parameters for a bottle around brexit. Has never happened before. As you say, any Good Business does those simulations. We dont deal on speculation. Its really the facts. The voters will decide and our employees will decide on the 23rd. Thatost important was billion pounds of export. Almost 1. 6 million engines that we export is a certainty of that euro market. Anna i wanted to ask you about the future of electric cars. Anglo merkel is working hard to try to lift german electric car sales. Do you think it will embrace what seems to be a new era for the car industry . This is really a big change for all of us. , only 1 of the industry is electric cars. What we have seen in other countries like the u. S. Is it cannot be just incentives. The german like the German Government announced. It has to be infrastructure. The most important thing is to pull from customers. They want to see electric as a better experience and we have a lot to do to convince them of that. Especially economics. The german subsidies will help, but it is up the only thing that needs to be done. Anna great to have you on the program. Jim farley joining us there from ford motors. Up next, a slew of earnings from the u. K. Rbs earnings are due. We drilled down into the earnings and we want to get numbers from the drug sector as well. Anna different directions, the dollar drops after weaker than expected u. S. Growth. Chinas Central Bank Response by strengthening its currency by the most since 2005. What will todays euro zone inflation and gdp figures mean for the ecb . And brexit blues come award about the Eu Referendum since Consumer Confidence to the lowest level since 2014. Anna welcome to countdown. We are getting a host of breaking news coming through this morning. Lets get to rbs with some numbers coming through there. 2. 4 billion pounds operating expenses. Tax forg profit before a 21 Million Pounds and a net loss of 968 Million Pounds. They were revealing a ct one ratio here of 14. 6 in the First Quarter down from 15. 5 in december. A ratio of 5. 3 . Of course, the numbers are only part of the story. The bigger structural story we need to talk about and digest this morning. Lets get to our u. K. Backing reporter whoanking joins us now on they sat. We have this q1 that loss of 968 400 59 million the time before. How do these numbers sound to you. For rbs making a lost doesnt necessarily cover the whole story. This bank has been in trouble for eight years now. The drop in the ratio doesnt sound particularly great, although it is higher than some other banks. You alluded to the big news to break yesterday rbs has had to come out and tell u. K. Regulators it will miss a deadline at the end of next year. Anna remind us of the back drop. Even in the u. K. , it is not a name that everybody knows. As a condition of its massive bailout back in 2008, rbs had to shrink. Part of this was things like tsb which is a brand you might recognize more readily. Also, williams and glenn. This is incredibly propagated procedure because rbs doesnt have very good computer systems. It is building up an entirely new tax structure for this unit then spinning it off. It is 5000 people working on and it is losing millions every inrter just by keeping this there. Now, looking forward, the problem is investors are wondering when it will get to the dividend again. Anna this also has to do with lloyds spinning off part of their businesses. Then we look at movement because the old dividend question this is still a business substantially owned by the u. K. Taxpayer. Are several, there big roadblocks. Thereafter settle a potential huge litigation case in the u. S. Related to miss selling of state back to mortgage bonds. Some estimates have seen the fines as high as 10 million for that. They want to get that out of the way to how much for they could drop and what is left over to pay shareholders including us, the taxpayer. Anna thank you very much for your instant analysis. Asterara zeneca an estimate oft . 96 a share. Looking at the core operating profit come with 1. 5 9 billion u. S. Dollars against an estimate touch of light perhaps but theyre not changing their guidance. That remains unchanged. There talking about seeing a full year eps in the low to mid singledigit decline. T incorporates the effects this business has been doing some deals of late. This new guidance does include that. They see fullyear adverse fx impact on revenues and core eps for listening intently to those numbers as they break down. Aw the director of Research Bloomberg intelligence and expert on the drug sector. Its talk about these numbers. Line. Ms to me broadly in i think that is refreshing gust of there were some worries they might miss. The mercy ofe at what happens to currencies. Venezuela has been very tough, enecaor astraz specifically, this seems pretty much in line. I think really what the core will focus on when it comes out later on today is their pipeline. This story is not about earnings today, you dont want them to miss, but it is really about how that pipeline is evolving. Has this is a company that a making several acquisitions to try to plug the gap that will be left by nexium and crestor. Fifth hated pretty chunky number they have paid a pretty chunky number. That could be better than the incumbent today which is owned by others. They paid a pretty big number to go get and pay for that. There is a lot of activity in the cancer front. We have two deals potential he announced yesterday. Again, it comes down to how people feel about what the company says. Today, theyll probably have to say that theyre fast to market approach is probably not going to work out. Anna on that approach, they said they still havent heard back from motivation management. I think everybody is expecting this to be a protracted discussion. There are lots of potential targets that could get involved. Novartis could make better use of this. Anna great to see you, have a good weekend. Lets turn to the airline sector, with numbers from iag. That is the parent to british airways. The overalls, picture seems to be that the First Quarter profits have beat estimates. No big change there. Theyre saying that their revenue in the Second Quarter has been affected by the brussels aftermath. That will be an interesting and tragic development to what is coming through in the numbers. The also said they moderated their shortterm capacity post brussels will be interesting to see if other airlines have been doing something similar. In the immediate aftermath, they had to drop some flights. The numbers for the First Quarter beating estimates, year viewg their full grappling with unions over cost. To competitive environment has been distracted. Without this Company Operate Profit jump in 2015. To some extent, that combined with the strategic choices there making building up business because it now includes. Ritish midlands it is a slightly different story to the rest of the sector. Really fast any comments about brussels. Lets get to the bloomberg first new david inglis. U. K. Consumer confidence has followed to the lowest level since 2014 amid concerns of the impact of the Eu Referendum. They fell to minus three from zero back in march. A measure of economic drop to 14 to 12 which is the lowest reading in almost a year. Icahn said herl sold his stake in apple over concerned about the companys relationship with china. This month, china shut down Apples Service showing the company isnt immune to the reach of beijing regulators. The former white House Speaker john boehner says he would back a donald trump for president in november and would not vote for ted cruz, boehner described cruz as lucifer in the flesh. He also said that he and trump have play the golf together. Cruz says comments like that are why he and Carly Fiorina are better choice for the white house. Was covered by a fifa insurance policy according to a u. S. Judge. That is stemming from his extraditing to the united states. Global news 24 hours a day powered by our more than 2400 journalists around the world. Thank you, joining us there from hong kong. A quick look at the futures in europe. There is a negativity in the asian sector. Euro stocks down by around 1 what could be as much as 1 maybe more than that on the french market. The outlook in the futures market. A lot of earnings to factor in as well as the a global picture, the picture around the dollar. Hat is almost all of its peers of course, a search at the end. A big move in Foreign Exchange markets. Certainly at the center of things in the asian trading day. Move takes us nicely into our next story. First Quarter Sales trailed analysts estimates as the decline in latin america currencies outweighed a Strong Performance in the home market. Companys now is the u. K. s ceo. Good to have you on the program, elcome to the countdown set. On the one hand, spain is doing very nicely, but the latin american currencies are weighing of the business. Underlyingook at the business, the good news is that there was Service Revenue growth. There is profit expansion. There is also improvement in operating cash flow. The trends are positive. In latin america, theres been fx headwinds. F but the underlying business has a very positive set of numbers with spain being a highlight. Their Revenue Growth of the quarter for the First Time Since the Second Quarter of 2008. Anna this is the first since the financial crisis. A real turning of the table. How strong is spain . A realspain is making recovery, later that weve seen in the u. K. , but it is an important market for us. Brazil, spain, germany are the big markets. The turnaround in spain is for a positive. Jonathan i want to talk to you about the broad consolidation story. Of course, youre caught up right in the middle of this at the moment. Attempt to sell the u. K. Business to hutchinson, do you plan to contest what seems as if it will be a block put in place by the eu to this attempt . Nan to be clear, nobody knows the answer to this yet. In the event the deal doesnt get approved, that decision will be for hutchinson as the buyer relevant for us as telefonica. We have an exceptionally strong asset in the u. K. In spain and across the group is stronger now than it was when we made the decision to sell a year ago. We are well positioned whatever the outcome. Anna even if it was to get rid of these assets somehow . In eventuality if the deal was blocked we could consider a number of options. The key thing is the underlying strength of the business over all and the fact of the u. K. Is still a great asset to means that telefonica without choices. An ipo still be on the table if other offers werent appealing . About i wont speculate certain choices but it is fair to say that the u. K. Remains an attractive asset whether it be for shareholders of hours or others i am confident of our future. Anna what does it tell us about the future of telecom deals if we see this a blocked in europe . Challengesbiggest the traditional regulatory approach is to look at the mobile market as a standalone market. In the u. K. And across europe is a converged market. Moden create a better which casts a shadow across the u. K. Market. Operators are looking at a different set of regulatory rules as to whether or not that is appropriate or not. The question for europe individually and across the continent is do we want to have champions across the full suite of converged products . Look at awe have to fresh way of assessing consolidation. The market is changing all the time. The extent of the products that are in his defining the competitive environment. A quick word on brexit, you signed a letter along with a number of other ceos about the need to stay in. You think the u. K. Should stay in europe. What a are you doing for your business, what effect would it make . Dealers aree domestic in service, but international and product. Largely the same standard across the whole of europe and the rest of the world. If we were to exit, and change any rules and regulations, the cost the input cost would go up. The concern is that the economy in britain is driven by services and growth in digital. Input cost for delivering digital going up would make the u. K. Less competitive. Anna thank you very much for coming in and seeing us this morning. Further thena fixes Central Bank Response to the dollar weakness. Most since 2005. Were in shanghai, next. Back, 7 19 in london. The pound against the u. S. Dollar 14641 a bit of Pound Strength in the this morning. Consumer confidence the weakest in around three years. That free brexit vote uncertainty looming large over the u. K. Economy. Lets talk little bit about the Business Issues this morning. Lets go to david inglis who joins us now in hong kong. A lot of earnings, a big miss this morning. Italys largest oil division reporting a loss for the First Quarter. A losss had forecasted of much less. It plans to cut spending by 20 this year. Has reported firstquarter profits that beat analysts estimates. Ceo has been reducing costs and pruning the companys sprawling products at a time when the two biggest rivals dow chemical and dupont are merging and splitting into three companies. Advisory board member is stepping down two years early after criticism that he went too far in probing potential wrongdoing at the company. He was isolated after he soft to legal cases inal 2014. It is according to people familiar with the matter. He hasnt responded to requests for comment. Editor Bloomberg Business flash. China central bank is responding to an overnight fall in the dollar by strengthening its currency by the most since 2005. Lets get more from our emerging markets editor who joins us now. Tell us, what is the pboc trying to achieve . That is cost great volatility in market in other years. A reaction tos plummet overnight to any kind of policy shift. Prevent still wants to depreciation and further capital outflows. Today, you see a lot of was expected. Problem for a stronger fix was made by the bank of japan which decided against monetary stimulus. That is why the yen surged. Anna this is a story about the dollar, and the yen, and this is the chinese response to it. Away from the currency story, there is the more focus on where we might see speculative bubbles popping up. Regulators have been trying to pop those bubbles. Tell us more about how that is playing out. Like it does look commodity speculators are on the run. Were seeing a lot of the commodities are starting to fall. The bar the value traded is down 42 from last week. Material prices are slumping as well. The upshot to all this is that it appears that theyre taking a more preemptive measure to prevent further bubble similar to what happened last year. Some of theld see speculatives return to the bond market after a pretty poor april. Anna thanks for joining us, the china emergingmarket editor. That is almost it for fridays down, but count lets catch up with manus cranny first. He spent the week in the middle east and joins us now from do by dubai. Manus well, i have missed you. There is a bird in the auditorium. We are trying to get the pulse of what is going on here. The markets, the dollar, oil, the vision 2030 that bloomberg has been such a part of. Whatyou want to look at, it is done relative to dubai, the whole oil story and banking story has been the dominant theme. The banks are finding it hard to make money at the same scale. All of our is just cohorts in europe, it is hard down here as well. Timerforming loans, this property prices trot by 10 . The bond market is rocking. Anna in contact with those conversations you have been having about reparations of some postoil environment, i was talking to the 40 europe ceo louis was telling me that electric cars and a real opportunity for electric cars. Back to the show, you launch on sunday, i understand. What is the plan . A phenomenal new set. It really is cracking, the heart of the United Arab Emirates right here in dubai. We are live it 00 a. M. Local time. We will absolutely barnstorm it with our guests. This man was part of the sovereign wealth the story. We will get a flavor on the take it tot that we trade. ,is excellently excellency if you want to learn about trade. And to learn about the scale of the world and the pulse of the world, that is a conversation we will be happening right here on bloomberg markets. The strands,r and off to the pool. Aam working, technically, on saturday. I will see you on sunday morning at 8 00. Manus, fantastic. The global story really shaping up there. Joining us on sunday for the new show. Coming up, we have a Brexit Debate taking place. Francine lacqua have a exclusive. You can see the various participants. They will be taking part. Former italian Prime Minister as well. That start at 8 30 london time. Welcome to on the move, 7 30 here in london we are you down to the european open. Here is what we are watching. The yen spikes along with Blood Pressure at the boj. The best annual start since 1995. Will portugal cling to its very last investment great rating . Debttaly handle its bad and what is next for greece . Much to stock about