Work and prepared to set to step a little bit higher. That is how semiconductor will play into the chipmakers. You have job movementsm and qatar is a very strong economy. Fors theresa may braces and stocks are set for a high opening. You have Global Equities and pushback from tory lawmakers over her brexit repeal bill. Yellen fueled the investor confidence. Global equities, the longest winning streak since the middle of april. The chinese export numbers as well. Anna a very warm welcome to exports of 11. 3 in june from 8. 7 in may. Anna a couple of things to bloomberg daybreak europe. Im anna edwards. Watch, we put up details where manus janet yellen has managed we are in the market. A couple of headlines coming through. The owner of the unicode chain to poor coldwater on the uniqlo chain. Probability of a rate hike. The probability in december drops to 50 . In at ¥22. 9t coming when it comes to size and scale of the bond market, a 10 billion below the estimate of million bet, and this is what 28. 3 billion. Theyre betting on. Keep an eye on the retail space. Will yields ratchet higher or and an eye on cars. Lower, below 2. 28 . Been 10 million on out we are not over all of that story yet. We will keep an eye on that. Of money calls and this is the going to a frisky essence, the traitor whos put to trade on, we dont often see opening. Lets look at the bond markets. This is the center of gravity in terms of the softness coming these in terms of yield. From the fed. Weve only drop by more than 10 basis points four times on a we are there is a strangle in weekly basis this year. This is a big that on Something Big happening in the bond market in the next 10 days. The bond market, flat opening flat. E bund, french oats anna they are relying on some serious volatility by the 21st of july. Some drama is needed, whether macron meets merkel, macron meetingnald trump, the from inflation data, the white house, to make money on this kind of that. Of two new president is going to be closely watched in terms of that show everybody where weve what they say. Anna lets go to bloomberg been on the global stock story. See that weve first word news with juliette saly. Aliette it started with White Knuckle handshake and the rejection of the paris climate accord. French president emanuel not been this high ever. Macron and donald trump will get a chance to reset their awkward relationship with the u. S. Twoday visit to hong kong stocks at a twoyear high, the dow closing at a record. It looks kind of risk on. France. They will hold a press conference and had to the eiffel tower. Gold is higher, bonds or higher, the guinness higher. President trump is standing by his eldest son despite emails have a look at the revealing that trump, junior was dollar. Willing and eager for campaign help from moscow. The president has tried to distance himself from russian the cpi is going to matter more influence. In an interview with the to the conversation around the christian broadcasting network. Fed perhaps rather than janet hillaryu are had one yellen in front of congress. Won, energy would be her back at the lowest level since september. Weve talked about tenure Government Bond yields around more expensive. Want to see me the 3 level. Cpi will drive this agenda. Jpmorgan and others will there. Juliette unveiling the draft law that will take britain out be pouring over whats happening of the eu but it is likely to be in the bond market with those margins in focus. A lengthy battle with lawmakers from both parties plotting to here is juliette saly. Unite against parts of the bill. Juliette it started with a vince cable told bloomberg White Knuckle handshake and the government provisions could see rejection of the paris climate talks failing. Accord. I suspect we are a year down now president Emmanuel Macron and donald trump will get a chance to rethink their awkward relationship with the the track before something president s visit to france. There will be a press conference catastrophic occurs. At 5 00 p. M. U. K. Time and later unless the British Government gets its act together, this they will head to the eiffel tower for dinner with their wives. President trump is standing by on but the president [inaudible] optioning the impact of the saudi led campaign to has tried to distance himself from russia and influence in an isolate the gas rich oil state. The ceo of the biggest Bank Interview with the christian broadcasting that. Spoke to bloomberg. Had won, our it is a very well diversified institution, we have businesses and 51 countries. Energy would be much more expensive. From dayputin diversification is working and overcoming any crisis. One i want fracking and to get global news 24 hours a day, Energy Prices low and to create powered by more than 2600 journalists and analysts tremendous energy. In more than 120 countries. Theresa may will it can find more stories on the bloomberg you can find more unveil the draft law that will take britain out of the e. U. , but its likely to be a lengthy stories on the bloomberg at top. Unitingith lawmakers anna it has been a great session in the asian equity market. Against the bill. Japan losing out flat in terms of what you see in the relationship with the dollar. Have a look at the hang seng i suspect that it is a holding at a twoyear high. Kospi atsex and the plausible scenario. One at which they collapse, i dont know. I suspect we are probably a year down the track before something catastrophic occurs, but unless record highs. The British Government gets its and a fairly will is gdp rate. Act together, the show will just australia at closing out the be farcical. Juliette Qatar National bank session higher by 1. 2 . We have been watching toshiba in expansion into asia is helping impact. He the spotlight falling in tokyo. It rejected a report from asahi news. You have samsung at a record speaking to bloomberg in an exclusive interview, the ceo said it confirmed impact. Southt 1. 5 and reports it applied for a hong kong license this year. Korea could overtake taiwan as businesses in 31 the Worlds Largest chip market. Countries. This is a sense of what youre seeing in the city market in terms of a big rally coming our aim is working to helping through in health care players. Have a look at this chart. We also had china data coming the environment overcome any prices. Global news, 24 hours a day, through today and it was very powered by more than 2600 strong. Journalists and analysts in more than 120 countries. Stories on there you can see this yellow line is exports, they rose by 11. 2 in. Loomberg at top june in dollar terms. Imports up by 17. 2 . A great rally in asian equities. The hang seng index at a the has been the talk of feel tariffs from the u. S. But a lot of analyst saying even if that twoyear high, up by about 1 . Happens it does not look like it will dent chinas export highensex is at a record momentum. As is the cost the. Thank you. Kospi. S the testimonyen delivered you have a flat nikkei in in front of congress yesterday and said the u. S. Economy should reaction to what were seeing in continue to expand over the next two years along the central ink to keep raising interest rates. Bank continuesal monitoring inflation. The fed trade from june is still in place, yellens testimony making no new ground. The u. S. Economy appears to have grown at a moderate pace so far this year, she told the house, and will continue to grow at a moderate pace in coming years. The fed is watching disinflation, i how and when prices will rise is the central question. More gradual rate increases are called for until the fed benchmark neither stimulates or constrict the economy. Yellen offered no new details on reducing the Balance Sheet saying the fed wants a treasury only portfolio and the fed plus use of excess reserve saying it is not paying banks not to lend. I do not see banks as parking at the fed and not lending. She could not avoid being asked about her own future as fed chair although she could avoid answering. A servantd to keep my term. I am very focused on trying to achieve a congressionally mandated objectives and i have not had to give further thought at this point to this question. Thursday could be her last appearance before congress when she returns to capitol hill to testify before the Senate Banking committee. Manus joining us is the head of g10 fx research at credit agricole. Listen listening to janet yellen, the probability reflecting on the probability of a hike. We overreact and we have some say we should be focusing on the cpi data. The fed will be more data dependent. We are still expecting a rate hike to come in december. Expecting the fed to start unwinding Balance Sheets this year. All of that, not much has changed on the back of the testimony. From that point of view, we may be dealing with an overreaction especially if you look at the dollar under performance across the board. Before long investors will start again betting on growing rate advantage of that currency especially against the first swiss franc and the japanese yen. The likes of the boj and the smb are in the dovish camp whereas the fed is in the hawkish camp even a bit more cautious. Market seems todow interpret her as being more dovish. The fed is not the only game in town. From that point of view investors like to buy the euro, hike to buy the cac. They ignored persistently weak inflation preferring to focus on the Growth Outlook and the need to normalize policy. The dollar has company which is fine and from that point of view, that can explain why the dollar is struggling at the moment. There it looks more attractive than the yen and the swiss franc. Manus they have spent 10 they have to ratchet one way or the other. Where are we going, two weeks she or he has two weeks to make money. Make your call. Valentin all Central Banks have to put it into the monetary accommodation. The fed is leading the way, the ecb will be joining soon. The bank of canada has joined the banks. Bond yields are solo and makes no sense. Bond yields have to go liar higher. Manus they went out of their canadae bank of governor made sure we did not run away with ourselves in terms of what comes next. This is a dangerous game to play for central bankers. Valentin when it comes to the central bank, inflation is still pretty important, delivering 2 or whatever your target. It is about that. If you fail to deliver that means your credibility is being eroded area it is taking a risk, taking their chances at the moment. Are inironment we highlights inflation is no longer the paramount driver. The most important driver of the policy is Central Banks are worrying about Financial Stability and the housing bubble. There thinking about the time when they have to deal with a cyclical downturn. The main date the ammunition of they may need the ammunition of higher rates. Financial conditions are supported. Anna when we were talking about the bond market has not been moving to that extent very often this year versus last. Where does the trauma come from, it does a confirm the white house, inflation data, the ecb and other Central Banks . Since 2005 believe we will have the top major Central Banks of the world tightening. Anna the market dove back from that a little bit. Itin the markets can believe in that theme. In terms of timing we just need more confirmation from the fed and we need to see the ecb telling us from now on, were going to be buying less. What youre going to see on the back of that, the inflow back into the eurozone on market where domestic investors are talking about a higher domestic yield and abandoning treasuries and this is where the volatility will come. The imbalance between supply and demand of treasury kicks in and pushes the premium toward morneau mole levels. Treasury yields could be 60 or 50 basis points and that is a reason to expect more volatility. Anna thank you for your thoughts. A lot coming out of russia this morning. Manus the central Bank Governor talking about the economy. Shifting in terms of the Economic Development and that Central Banks are worried about growth remains unstable. , high debt and low inflation are a drag on the worlds economy. Central banks are worried about growth remains unstable and low but in regards to the russian economy, the russian economy is at the start of a new cycle. That is predicated on the price of oil. Anna just when we were talking about the willingness of the aal banks to talk about warning about asset bubbles. One central bank picking up on that theme. It is 7 18 a. M. In london. Lets get a number business flash. Juliette thank you. Offering the top role at the pharmaceutical firm according to an israeli calculation without saying where they got the information. Salaryd get double the of the previous uso ceo. A panel of and visors to the. Salaryfood drug and administran in a clinical child patients who had run out of treatment options, 83 saw the disease going to remission. It causes collateral damage. Every patient whose cancer was wiped out contracted a condition ceb celle cell t aplasia. Visit is the second biggest the agency has struck and settled claims that rbs sell and sold bonds. They must do with the investigations before it is a return to the private sector. Toshiba is looking to fetch 2. 5 billion through an ipo with their swiss energy unit. In needs to cover multibilliondollar losses. The Company Expects to train in zurich july 21. That is your bloomberg is this flash. Mass teresas make theresa expected toment is release a bill. The latest Sticking Point is over nuclear regulation. Op. Treaty is called eurot six tory mps have indicated opposition saying it could affect jobs, research, and investment. The government said it will seek an agreement with minimal disruption. Lets bring in a former Shadow Energy minister. Great to have you on the program. Lets explore this from a number of angles. What do you make of the analysis that it is impossible legally to remain in the eurozone while [inaudible] Richard Harrington was saying it is not that they object, they do not leave the can stay in. Theres different legal advice to whether or not that is the case. It is also related to other european treaties so there is a point of legal dispute about whether or not this is something you have to come out of. Anna you think the government should have tested that. Seen legal advice about the opposite. This is more about politics than law. This is about the European Union institutions and the u. K. Government finding a way to ensure that there is the maintenance of standards and relations and safeguarding inspections that the free market of trading nuclear goods and services continues. We have world leading researchers, all those things are maintained because the u. K. Government and the Commission Said that is what they want at the end of this and our argument is to explore that there are ways in which with goodwill you could find a way to ensure that continues. Manus to and is this achievable is this what and achievable because nuclear corporations that could replace the current deal, is that feasible and it takes quite a time to negotiate a trade deal. I can only imagine the nuances of the nuclear cooperation. Is that a pragmatic and possible response . Tom it is what you would need to do if you are to replicate a series of arrangement including the safeguarding arrangements which it currently does and you the to put in place welcome back. There is more than 1 and thank corporation. You, janet yellen. Domestic law means they cannot trade at all on anything to do with nuclear and that includes passing information unless there seemed to have sparked some sort is a corporation in place. Of rally. That they take a long time to do lets talk about what is happening with donald trump. And most of this is sequential, you cannot do it in parallel. You cannot have agreements he is attending the annual seriously discussed until you know your safeguarding regime. Conference and there is a it cannot have your safeguard regime in place all of those controversial meeting between his son. Things take time and the clock is ticking. We have 21 months, 21 20 and this is meeting months last left. Anna this was mentioned in the the core of the euro area. Icle that triggered you thisat to see document that triggered article morning. 50. We see politicians having a vote on this whether, commenting on this is a moment to become global again. This and many objecting to leaving what is it possible to is the 100th university and go back on that path of the bigger without opening up what many would see as a can of worms about the triggering of article both have a lot to gain here. 50 . Tom this first emerged when the government pushed the bill to trump is not popular in leave. It was in the legislation, and france. The explanatory note and that was article replicated in the article 50 notice. There is no protest plan. This is my we are in uncharted territory. No one is trying to leave the union before going through that there is nothing major and it is riskfree. Process, no one sought to understand what you would do. The ability to say we want to risk for trump. Look again, can we find a way of he will be asked about the having associate membership emails. Theyre going to throw the focus which the current treaty enables, there are two different ways you can do it, a range of on. Different ways this can be dealt with. It is about all of these things. What is important for us and there are things they disagree they are not afraid to important for our Nuclear Sector and research and trading is to ensure we do not have the cliff show away. Edge and point with nothing else in its place and the issue is it how do we judge the relationship takes a lot of time to get those between these men . Things in place because they are what about the personalities reliant on a series of negotiations with different states. Behind it . They have their processes to agree with those arrangements and contracts and agreements. They could not be more having a transitional time that different. Is long enough to ensure that intellectual and they what we have, we can transition to what we have now to what we , this is what they can rapport andcertain apply themselves to. Manus this comes down to vince some dramaticcts he says that you confront the implosion in terms of Brexit Issues and talk about the things discussions over the next year. Thedont agree on and transitionbe a good time for you and layout for us french and American Forces work and they work and see i the practicalities that the negatives that would result if there is no due to business to live . To i on issues like syria. Tom if there is no arrangement that means the Current Nuclear there is more complements than common area which exists under you would imagine. There is the ability to but to hide the fact that this is something we agree on. Have information between the President Trump meets u. S. Based company and the current operator. President macri on. Anna there are areas that people are concerned about. There is a backdrop and they safeguarding does not apply to medical isotopes because a are in dangering that is have so many this comes down to politics and of being used in terms of Nuclear Proliferation but they trade. Are part of that area market. They backdrop is this european it is specified in the treaty, union and the relationship with and you cannot stop a stock america. Isotopes as they decree and this is an export and this they decay quickly. Relationship has to the special. More on Bloomberg Radio if terms and similar you want to find out more. Manus you have a brush higher this will be beneficial. In the asian indices and the dollar is higher against the understandingore aussie. Anna this is bloomberg. They reform and the people. Condition is right and there is the strength of the growth story. The labor market reform is going to get difficult. There is a sense of stability and you get a synchronized sequential growth that is higher than potential growth and this is a moment to do it. It is possible they are not able to do it. Ofyou find that this is part good and this is the trend and it is a mess ticklygenerated in the eurozone and this is the global chance and challenge as they scaled down. It will go slowly as predicted. The policy is distorting the behavior of banks. There is an emergency level of interest and the economy is doing pretty well. Issue and there and there is a challenge in the face of adversity. One thing that is holding andgs back is the wages they have to escape velocity. Frenchs a cap on the wages. Politics does not help this story. At the same time, we have the ismployment rate and this something they are struggling with and it is technology. Story about great wage negotiations. Thank you. To going to talk but so you what happened. Korea and theth close of the market sin have the you look at the index and it is lower with a benevolent janet yellen. Guy youre watching bloomberg this is bloomberg. Markets, the cash trade and equities are ready to open and 30 minutes time. Alongside matt miller in berlin. What are we watching this thursday morning . An american in paris. Trump meets macron in the french capital ahead of bastille day. Will there be fireworks . The greenback extends its slide as stocks and bonds rally after janet yellen signals they will not rush to raise rates. 2 30 the afternoon. 6 30 in london. Coming through as we set the stage for macron and merkel to meet. Thatfrance, macron says germany needs to boost investment. We were just talking about pay freezes, a run negotiation is. The germans want to see the french are pushing ahead with reforms. The french want to see the germans spending on military. The backdrop to macron and merkel who will meet today. All that happening in paris. Manus look out for the handshakes. The asian equity story, good morning. And as a twoyear high. Longest streak since april. Youre seeing ever see every Industry Group gaining, tech stocks leading. The msci asiapacific rolls on. With equities we have been rolling over a little bit on this curve when we look at treasuries. We have been seeing a little bit steepening from the end of june. That has been flexing over. Like of conviction in yellens comments on inflation. Dollar index down for a fourth day hitting a low since september. What i wanted to show you was the one month in a quite and one week in loop. Blue that has moderated slightly in todays session. The dollar has ended here. Anna the head of qatars biggest bank and the gulfs artist lender remains optimistic it can grow despite the geopolitical situation and even if qatars isolation continues. Manus an exclusive interview with yousef, he asked how he was going to refine his strategy to adjust to what is happening in saudi arabia. We have a plan for the end of the year for 68 . We do not see changes from that level. Station. Ll diversified working and helping to overcome the crisis. Yousef the last time we spoke you were bullish in terms of your expansion into asia and africa. Where the gulf crisis to be more aggressive come up push harder into those markets . Strategy is among middle east, africa, and asia. We dont see any change. Recap, a corning our existing network. We are very opportunistic. We are looking for acquisitions as we speak that we are very opportunistic so should we have opportunities arise. Existing network, we will be spending within the existing geography in terms of making organic fashion. We will be building two branches , opening one more branch in kuwait. This month we will be establishing our business as a fullfledged branch in india. Also going to be applying for i license best a license in hong kong. China we are changing our position from an offers to a branch. An office to a branch. Focus on your strategy and you say little has changed. You have got a reality on the ground in saudi arabia and egypt as well in the latest local dispute. How are you going to reallocate resources or reprioritize, refine your strategy to adjust what is happening there . 5 of our Balance Sheet. This impact we see is very little, if any for our stratagem Going Forward. Were going to be pushing more, but as we see even the situation continues forever. You know, to diversify at 5 is so easy and does not really take so much. What are your financing plans for the remainder of the year . Also elizabeth across the region, how does that change the funding strategy for the bank . Funding wasof result of the rate increase this year. Year, goingd this , a growth ofumbers 5 , a dilution of the egyptian currency. Four are asset at the same speed as our liabilities, again we are diversified. Book, ourr funding from u. S. ,m qatar, from europe, from asia, the middle east. We have very much diversified. Abnormal. See any let me remind you, it is a highly rated institution and investors love the guitar story and continue to do so. Anna u. S. Secretary of state Rex Tillerson will be in qatar today read his second trip since they supplement severed ties with the nation. Manus our economy and toernment editor and the cio discuss. Welcome to london and good to see you. Thank you very much for listening. Here you go. Kuwait, qatar, the kuwaiti moderator. A littleature bringing bit to bear here . Is Rex Tillerson moving the agenda forward . As what we have seen. Two things are going on for him. Countriesom all these from his days at exxon he has ties from all these countries from his days at exxon. Beginning, there were doubts about what the u. S. Relationship. Now we have one person in charge of that. Two days ago we saw the first tangible step toward a solution with the u. S. And qatar signed on financing. The saudis said this is not enough, but it enables Rex Tillerson to say take that off of your list. We have signed that. We can guarantee as. Lets go on to the other demands. The fact he is going to bet back to tour again without us knowing is there a deal, that is a positive sign. They willkeep anna keep going until their demands are met. Any sign from them as to where they go next . Said thesting, they demands that they made at the beginning are null and void and they expect more measures. We talked to analysts, when we talked to people on the ground you find very little Going Forward in terms of additional measures that do not have some sort of self harm. Lets say you were able to do questions on the organization Going Forward. Take your money all of your money out. The differential in qatar. Banks go on both sides. Manus youve got my view on the oil markets. This is qatar. We have put a couple together which is the yield and the bonds. Equities have had a crack in, and the city is is a 17 month high. At the moment people saw that that thought that qatar would case. Qatar did not do that. People but maybe it would be under question, we have seen on shortoffshore rates. The onshore market liquidity, i said we are going to keep on doing that. That is why we see some relief. Dubai is unrated. As an investor, how you look at this . Do you think the community is engaged and does it draw you to a way to express this . This is just too complicated to play it that way . Theres no premium to the oil price. That does not mean any reaction because of this. I find it fascinating because you should have certain premium even because of the leadership change in saudi. That is really important for the longterm. If you look at the fundamentals of the market, it is still quite imbalanced. They have been rising, there has been an aggressive view in terms of the challenge. The challenge comes from politics domestically and the gcc which is opec production versus u. S. Production. You see these opportunities in the equity, the bond. Which space would you be exposed in . Positions a short which is very big, technically it looks quite good as a set up. ,hey always talk about shale but in reality if you look at the numbers that is the only replacing the diminishing supply on the other side. , you should actually get much higher oil prices. The inventor a data is very murky. The people that the data areifically and storage quite bullish. People look at stocks and commodities. Anna this is not stuck in a geopolitical print sense to the oil price. Qatar is more about gas. Should it be having more than complex an impact . Once they out that decision and we saw stocks drop, supply is going to still the same. Saudi arabia is not going to close, so no. Nothing is going to happen. To the physical production. Over the past two or three years this market has been ambivalent toward political risk. Maybe in libya but that was the result over physical production. Not basically just the concept of risk. Manus thank you very much. Middle east editor and the chief investment officer, thank you very much. Anna great conversation. The former brazilian president has been sentenced to nineday and a half years in prison for corruption charges. The favorite for the 2018 running, prevented from throwing it wide open. Our managing editor for emerging markets joins us from dubai. Momentous events again in brazil. How big a deal is this . What does it mean for markets . In brazil it is an extraordinarily enormous moments. In this whole carwash investigation that has been that has brought so much of the Political Press class. He had two terms of office and oversaw one of the main growth periods in brazils recent history. Now he is facing jail. The market has reacted very well. It will be interesting to know how much of the rally we saw yesterday was also yellen, was also the labor reform proposal from the day before yesterday. Where does this leave the 2018 elections as we suggested . If he does not run, and he could still. I will come to that in a minute. It leaves the field wide open. Thatightmare scenario is process could last an awful long time. It could get in a situation where if he becomes elected president , huge backing in brazil. The most popular candlelit until yesterday. Candidate until yesterday. If he loses appeal and has to go to jail, we are in a messy situation. Lets see what impact it has on the currency and on the markets. Thank you for joining us this morning. Our managing editor for emerging markets. Anna next on the program, an uphill brexit program. Battle. Inresa may is in for a fight her party over the repeal bill. 1 48 in the United States of america. Futures higher, 24, 32. A slow pace from the fed is to be probability of a hike is dropping away to barely a 5050 tossup. Global equities are rising. Lets talk about the u. K. Because theresa may is going to bring britainll out of the eu. Anna a battle with both parties tossing against parts of the bill. The government divisions could see brexit talks failing. I suspect it is a plausible scenario. The point to which they collapse i dont know. Probably one year down the track before something catastrophic occurs. He british and government unless the British Government gets its track together. Subdued in the Second Quarter, challenging business conditions. General adam marshall. Lets reflect on what he said there for a moment. His language was quite shocking. The point at which it collapses i dont know. One year down the road something trust something catastrophic that is what he is propagating. The risks from brexit are rising in terms of rhetoric. Have you seen a discussion of that around the country . Our people becoming more concerned are people becoming more concerned . There are two thoughts, one trying to scream these noises out. Others are being installed, are seeing their confidence hit by this endless drip of political opinion. You see it on all sides of the spectrum. Those who think we can leave without a deal and those who believe that talks can collapse and it will be dangerous indeed. We see a ton of this stuff. When you get into the financials mewhat is going on it leaves a bit concerned because what you are seeing is a slowdown. On the subject of the relationship between business hasgovernment, the election robbed theresa may of her majority. Has it been reset between business and government . Our doors more open than they were . I think they are, indeed. I sent i seem to be spending my time on the key issues for business. A welcome shifts. The economy has to be put act front and center again after it did not feature at all in the political debate has to be welcomed. I do see a sincerity and a greater sense of realism amongst these cabinet ministers about the things that are important spread important. Treasurys not just the listing. This is a willingness i am seeing a gear shift in terms of that engagement. Anna you get a sense manus you have a sense of confidence that everybody seeing an, is there a great quite later coagulator . Do you feel confident this grip . Ment has got a gro i dont think they have in peacetime had this subject. There are so many different moving parts in brexit so i dont think we are tooled up yet. I would like to get comfort on the technical issues. On customs and how you get exports over seasons. Ready . Y we have more to do. Anna this is complex and some have beenling saying transition cannot be three months long. It should be 510 years. Is there thinks standing in the things are there standing in the way . Im working on the assumption we would of my members be looking at 2022 before a deal is in place. Anna what about pushing it beyond that . Businesses have one set of adjustment costs, not one on exit and another when a deal is reached. I dont care when the election is. That is a westminster problem. The business problem is avoiding to sharp shocks 2 sharp shocks. A subduedfinally got Second Quarter and challenges ahead. Break it down for us. How widespread is that subdued duedness . Sub whether they are exports in some sectors, certainly. I think the one right spot for see in this is the pressures that they are facing. Less acute than in the first quarter. That has to be a good thing because a lot of companies are seeing their margins squeezed. We do not see that kind of strong appetite for growth, even one year ago. The Services Sector is one where i would specifically say looks slower than the manufacturing. Exports, a lot of government wants to do big trade deals. Are we seeing a pickup from your members . How does that go up against an economy is typically in services . We do see some manufacturers saying they are benefiting and having sterling 13 lower. Toy still have access grandfathering those. Making sure we have them in the future. Manufacturers are saying things are solid. They are saying is a doubleedged sword. Pricing, butgood they are paying more for input. Manus unemployed its data came in yesterday. A 42 year low. Wages at 2 . Are your members beginning to say a bit of a squeeze . That is the core of what the bank of england needs to monitor. We are not seeing a push in wage pressures which is interesting. They are also saying to us repeatedly that they cannot get the people they need where they are working or indeed overseas as well. That is the biggest constraint on growth for many. Im surprised we dont see wage pressures stronger than they are. Director general adam marshall. Manus a couple of minutes into the future future stock trading. Im going to break those numbers at 7 00. Anna an eye out for land securities. Their numbers as well. They hold the adm late this morning. Manus astrazeneca offered its top job to estrogen a good ceo astrazeneca ceo. You have got the old whole asian, the dollar soft. We are back in just a couple of minutes. This is bloomberg. Manus stocks and bonds rally after janet yellen signals the fed would not rush to raise interest rates. The committee continues to expect the evolution of the economy will warrant gradual increases in the federal month rate over time achieve and maintain maximum employment and stable prices. Housepresident macron trump in paris. Canada leaders reset their manus theationship . Secretary have of state back to doha. The ceo of the regions biggest lenders says the economy remains robust. To third to work on a standalone basis. May braces for setbacks. Manus welcome to bloomberg a break. Anna we have cpi coming through this morning giving you the headline numbers. Cpi up in line with the estimates, in line with the previous number. Eu, exactlyat the in line so nothing to see here in terms of changing your stance on german inflation but heading to the next week and the story for draghi, how quickly they are able to exit or signal any exit. We saw burberry at the upper end of the market deliver stellar numbers. Atlyear sales will come in 30 to 35 so that will be at the high end of their expectations. Profit before taxes anticipated to be in line with our kitchen senses. When it comes to delivery on the numbers, International Sales rose by 44 . The International Side of the business, a little bit better than the u. K. Strong. Rose, continued customer engagement, active up 25 on25 average. Gross margin is flat versus the upor year with the total orders