The european markets in 30 minutes time. Front, the German Company sees growth when consumers spend more. What is the Global Retail environment like . We are going to speak to the outgoing ceo this afternoon. Adidas has never quite short on that one. The french are making their point very clear. Matter whichnt because he wears, he is making it clear he is going to have consequent is for britain if they leave the eu. It is a remarkable comment. It shows you how fluid this entire conversation is going to be. We are in for an exciting three months. Guy i think he is pushing the right buttons. The contest in the u. K. Has gone very negative. He is taking that little further but he is pushing the negative campaign buttons. Look the consequences and the disaster that will become the u. K. If it decides to leave the eu. He is pushing the migration button pretty hard here it he is pushing the financial conservative button pretty hard. He knows what he is doing. Hans i will think David Cameron would necessarily wouldve done it any differently and is the negative side. This is the other side of the sphere component. Guy i think the brits all listen to the french. It is funny how that relationship works. The rally is still on in asia. We are seeing that quite strongly here it youre going to strengthen boards you are going to share the boards in just a moment. Let me take you to the bloomberg fair value. London recording lower at the moment. Berlin and paris a little bit higher. The aggregate,. 1 higher. These risk on sentiments that we see dominate the story have maybe come to a hold here in europe. Hans there is discount argument that the rally sort of petered out at the end of the month. That is not happening in shanghai. We had the shanghai up doing pretty well. We got dollar yen, all the way to 114 did the weakest in the yen. Breaking through 140. The brent is down a little bit but still above 36. When we look at that brent story, there is a question of whether or not theres going to be any maybe bring some of that down for us is Caroline Hyde with bloomberg first word news. Caroline, what do you have for us . Caroline there is more evidence of a china slowdown. The output index which covers manufacturing sectors fell into construction last month. Down from 50. 1 in january. Meanwhile, moodys has cut its Credit Rating outlook on chinas largest phone company and biggest bank. That is after doing the same with the companys government. With the countrys government. Sale pioneer Aubrey Mcclendon has died in a car crash in oklahoma city. It comes a day after he was charged in rigging bids for oil and gas. Mcclendon faced accusations that he conspired to keep the price of leasing drilling rights artificially low. He slammed into a bridge embankment. Global news, 24 hours a day, powered by 24 howard 2400 journalists. Its france would relocate camp from to britain and welcome bankers fling ludden fleeing london if the u. K. Were to leave the eu. Like thoseo reason who rollup of carpets, i would say we might have some repatriation from the city of london. Of books ahead Wolfgang Schaeuble. Guy George Osborne hans George Osborne carry on. Guy he is your finance minister. I will talk about him here he is set to hit back at his pro ,rexit colleagues later today according to his prepared remarks. He will tell the British Chamber of commerce conference that those who want britain to have to leave have not been able to leave benefits answer the most basic questions of how to retain those single markets and all of the benefits it brings. Ryan chilcote is at the conference for us. We have two americans talking about a british subject. Tell us where does the Business Community stand . Your at the same time, conversation demonstrates the difficulties of people having rational conversations upfront. It is never easy. Lets see if the german financial minister is aggressive and emotive and risque as the French Economy minister is when he is in the room. I doubt he will be, pointing out the benefits for germany of brexit. He is here to stand beside George Osborne and point out quite the u. K. Should remain in the European Union while pointing out the benefits of that, as opposed to what would be bad about it for british this is. Going back british business. Is for remaining in the European Union. Andeconomist did a survey it shows that 50 of the people withinrve a want to stay the European Union. 30 want to exit. 10 want no. That is pretty consistent. Heres what you have to keep in mind. He was saying, look, generally speaking, business in this country is not very well represented by the business groups. 80 are not represented by any of the business groups. A lot of those Small Businesses are for brexit. They dont see the value in being in the European Union. Thinks, thishe bcc might be a much closer fight that perhaps people think within the business space. Thats important. Why . Look the number. The poll yesterday, 41 of the british pub survey yesterday think that britain should stay within the European Union for the 1 think against. European union. 41 think against. Therne needs to lead British Public into remaining in the European Union. He doesnt have that unanimity just yet from the group of people. Stuff. An, great thank you very much. Lets welcome our guest, head of global equities, matthew beesley. Good morning. The campaign is getting negative incredibly quickly on the brexit story. Does that make it harder for the Financial Markets to look at this objectively in trying president . Try and price it in . What are the stocks you expect it to the badly hit . They have not been hit on brexit fears yet. You think of the media companies. They are on board. Guy things have been heart hit hard already. Matthew the banks that are. Oing be hardest hit, rbs the event hit with dividend related weaknesses. It is not going to send them out of the economy. Its more back and loaded. The market so far has left brexit as a thing to worry about down the line. Ryan guy the foreignexchange markets have taken a different view. We have seen a revision of that gets because people affected by it. There are other asset classes. There is a witness beginning to creep in there is weakness beginning to creep in. That is right. There is a logic there. What youre going to have over the next three or four months is a hiatus of investments. We need investment in the u. K. From overseas. That investment is going to be on hold pending the outcome at the end of june. It is logical that both are willing to buy sterling, to buy british pounds to invest in the economy are going to wait for the next three or four months. That it hasogical sent the pound lower. Guy in the initial part of the campaign, you listen to what macro had to say. There is a lot of noise upfront and then we start the story settles down. What actually documents are good that is what most people are missing. Matthew that is what happened with scotland as well with the referendum. It was very pressing for Financial Markets. Markets betting scotland leading the u. K. They were consistently in the 70 stake and the 30 leave. 17 stay and 30 leave. That is enough to keep Financial Markets from panicking. Guy we start to see the volatility we saw in sterling, when does that happen . Will you be short into that . Matthew as the undecided narrows, we start to include this day and leave numbers. Asis so large in the polls, an investor, to position your portfolio, it is so difficult, your paid to hedge a wage. Hans matthew beesley, i will have some questions for you later, whether or not i should be buying adidas or nike. Up next, well have the fed page book. What is the Central Banks next move . We will discuss that next. Guy welcome back to hans go welcome back to on the move. Lets get to bloomberg this is flash. Heres Caroline Hyde. Caroline hans, thank you youd shale cofounder Aubrey Mcclendon died in a car crash in oakland city. He comes a day after he was charged with making bids for oil and gas prices. He conspired to keep the prices artificially low. He drove his car at a high rate of speed and slammed into a bridge embankment. U. S. Products, deb jones has left the jet maker. Left of the drugmaker. This sunday night, valeant has itsed its has delayed fourthquarter results. The stock is down 16 this week. Miramax, the film company betting that owns oscarwinning movies like pulp aon a deal will be spinoff of al jazeera media network. [indiscernible] that is your Bloomberg Business flash. Got . Feds beige book painting a picture of the u. S. Economy that is expanding at a moderate pace. Number intelligence analysis said the fed sentiment of Economic Conditions should reduce the likelihood of an extensive rate hike campaign. Investors only see a 10 chance the fed will raise rates. A probability that we will see a did this year is at 66 test 66 . We have come a really long way. Lets bring back in head of global equities, matthew beesley. The market has swung too far hit with price some of it out again. Where are we now in terms of where the pendulum is . Volatility there is a huge a rain of outcomes. It is harder because we have had his move where it is declining. That is really unusual. Obviously going into an Election Year as you well. Election year as well. There are so many moving variables, that swing suggests investors dont have a clue. They really do not know. The ability for that outcome to be swayed, depending on what happens in the u. S. , it is going to be a very volatile time to be investing. Guy lets talk about what is happening elsewhere we have ecb coming up. Whatve seen the impact of the japanese have done to the yield curve over in japan. 3d charts here. You can see the sharp rolloff on the bloomberg as rates go negative in japan. They follow off a cliff here as we go into negative territory for the japanese curve. We still do not understand the impact of what this is doing to the Global Economy yet, do we . Matthew this is why bankshares have been successful this year did this year. Very challenging. The margins are under immense amount of pressure. Japan is no different. It is not a lack of supply. It is not that banks are not trying to land. They are over lending. Areaid negative rates causing banks to overextend credit. It is happening in asia and australia. They are forced to compete for market share because the Japanese Bank in australia has very low margins. The Global Economic picture youd it is more creating is creating more uncertainty. Question, the idea that markets are basically not getting clear signals or investors are begging for signals and then reading too much into one thing. Does this notion of payroll being this big signifier, is that diminishing overtime . Should guy and i stay late to see what the number is for payrolls . Matthew i have been skeptical about that number. Statistically, it is the most revised series of data that comes out of the u. S. It is a calendar event on the first friday of every month. I think we as investors pay much attention to it. It is policymakers we should be listening to. What is it what is interesting is policymakers are starting to signal that rates in the u. S. Are probably less likely to go up because of hawkish members of the feds have been talking about a slower prospects of growth in the u. S. Economy. That rhetoric is much more important than payroll data. That i am going to take that everyone in london when that numbers when those numbers come out, they will be at the pub. You will stay with us for the rest of the hour. We are good to head out. We will look next at corporate movers, including the dutch king after its earnings beat estimates. Guy six minutes to the european open. A lovely day in london. This is what were looking at the futures. Thanes a little bit softer that. Nevertheless, lets get to Caroline Hyde it lets talk stocks we need to be watching it caroline as we are heading toward the eurozone we tell numbers coming out later. Adidas, prewant preannounced the numbers that it has come out with it the confirmation come out with. Final annual results. We are going to see doubledigit growth going to 2016, 10 to 12 is where we are likely to see the profit going. This is why you see over the course of five years adidas surge to record highs. It continues to rise higher when it comes to adidas us share prices. Go evenlly, it could further higher. Ashad zone the rains he hands over the reins. Soccer going to be driving the next few months. Lets have a look at our holders, another retailer, big in the netherlands and United States. You know the brand, stop shop. Hold, improving because of cost reductions. Seeing sales on the upside that managing seeing margin improvement for 2016. The reduced rice is theyve got to keep on driving forward here it hans, back to you. Next, it is the market open. Futures pointing up. The open is next. Caroline, we are going to get back to whether your running in adidas or nike. Guy welcome to on the move. Im guy johnson. Here is your morning brief. The brexit battle bills. We of the toughest morning yet regarding the rest of a brexit. The german finance minister will speak on the topic in london today. What will he have to say on the matter . Asian stocks extend the risk rally. Appetite continues to build. If the rally going to lose steam here once the european open gets underway in a couple minutes time . The German Sportswear Company has seen 10 growth. What does the Global Retail environment really look like . We are going to speak to the companys outgoing ceo this afternoon. Hans guy, when we take a look at the future, it is basically flat. Lets head out to Caroline Hyde at the touchscreen. Caroline thank you very much, indeed. Could we make it a seventh day of gains on the european stoxx 600 . We have had our longest winning streak since october in europe. We have added 1 3 of one trillionyearold. Asia is up for three straight worth. Dding 1 trillion france is opening up 1 10 of 1 . Energy stocks are on the rise. Once again, it seems to be the miners who are in vogue across the board. We are likely to see retail sales come out of europe later. We also have a lot of services data. The Chinese Services data is ts. Ing below forecasted we are expecting the retail that a to show a little bit of slowing in europe. Down,e got oil coming though. Even though stocks are rallying in asia, that correlation with oil prices is breaking down once again pulled. Once again. We did see oil at 36 yesterday. Why . See a hurting t starting to lowering of production. Shell providers are winning back in terms of production. We have a little bit of risk aversion creeping into the gold market. Overall, the debts markets money is going out of the u. S. Into greece this morning. Ahead of the retail lumber in europe, the big retail in netherland and in the nasa states is showing better than expected and in the United States is showing better than expected probability. They are at record highs in terms of their share price. Numbers showing the expected doubledigit growth in profit for the next year. And porsche, keep an eye on this. Once again, it is opening flat. The legal battle could be rearing its ugly head. The judge could be bringing back two witnesses. Porches now 6 10 of 1 lower. Guy european stocks are flat and slightly negative. That is depending on the market. Let me show you where we see money flowing this morning. We can see discretionarys are off. Financials are a little bit later this morning as well. Japanese financials have been interesting to watch. Industrials are trading a little bit higher this morning. Lets bring in matthew beesley. Rally inatched quite a equities. Here . We chase it from i think it is hard to. The rally did not happen when expected. It finally has happened. We traced back most of the loss we suffered back in the early weeks of the year. Centralare waiting for banks observations. We are now looking and watching data ahead of further corporate news. The chances we know end up in a bit of a flat or sideways market with investors not yet knowing which way they want to jump. I would argue that we look at the list of positive and negatives. The negative list is the still longer. I think it is very hard to be a buyer of some of these stocks that have been recovering in a this rally, given where fundamentals are. We are looking energy. Prices are rallying. Copper prices have turned from very low levels. If the evidence yet that we are seeing sustainable supply and demand normalization . As a longterm investor, you want to be confident that the lows are behind you and the outlook from here is not as bad as it was. I would argue that the jury is very much out on that last point. Hans matthew, if i could follow on that. Does that mean you are not buying into this traditional spring rally where mayday will be a beacon equities . Inmayday will see a peak equities . Off somes have sold much harder and faster than anyone expected. A negative feedback loop potentially, given some of the tensions we can see in equities and credit markets. A lot of those issues are now well understood. Therefore, from here we are looking for further news, we are looking for confirmation that the markets were oversold of the Growth Outlook is ok, or be are looking for confirmation that the outlook has been materially impacted. Totainly everyone we speak and i am a bottomup stock investor. There is definitely a tone of caution. Companies are holding bac