The open. Stocks surge and as bloomberg reports the boj may help banks offer negative rates on some loans. Good morning to you, caroline. We got a whole bunch of really cool stories doing the rounds. We are watching what is happening with this brexit story. Obama intervention could change the terms. Does this convince britons that maybe the u. K. Should stay in . Cars are in focus as well. Caroline they are. The british pound getting a bit of a pop on the back of that, with the u. S. President saying the u. K. Is better off in the European Union. In berlin, im seeing mercedes on every high street, and daimler once again being embroiled. Tore seems to be no end where the scandal starts and lies. Weve had mitsubishi, now time for, the u. S. Wanting investigation. Already trading on the futures market down 7. 7 according to trade gate. Could see some big moves lower from daimler. Mention of that story we saw last night in the numbers. Going to be interesting. We will find out, as you say, very shortly. 28 minutes until the market open. The boj story having a big impact in asia right now. European markets not really rough acting not really reflecting that at the moment. Mispricedn the wei function, fairly flat open for european equities. I urge you to keep an eye on the dax. Those german carmakers are going to be in focus. That could be one of the biggest stories of the day alongside the boj. Caroline really. We are getting quite a move on the yen, weaker today. That being filtered in as the boj looking to try to give some relief to the banks, looking to help get credit into the real economy, offering negative loans. Percentageis up one point versus the yen. Jen, one of the worst performers on the currency market today. Euro, pretty much flat. We did see that erasing of most of the euros gains yesterday. Mario draghi is focused on credit, not on the exchange rate. I focus on brent. It is up 1. 3 . It has climbed 8 this week alone. And silver, what a week. Seen it up weve more than five percentage points. Now lets have a look at what is happening in the first word news. Lets get over to yvonne man. Yvonne president obama has urged britons to reject the socalled brexit from the eu, writing the European Union doesnt moderate british influence, it magnifies it. He goes on to say that while the u. K. Faces many of the same the bests as the u. S. , way to address them is through collective action. Wall street executives would have to wait at least four years to collect most of their bonus pay and could be forced to return money if their Companies Lose big under rules being proposed to install one of the last major planks of the dodd frank act. The ban on practices that reward excessive risktaking would strike hardest at Senior Executives and Key Employees at financial companies. The fuelefficient see cheating scandal at mitsubishi has cost the company more than 40 of his market value. The news could get worse. Investigators have continued searches at its research and Development Offices and nissan is looking at how the manipulation of test data affected its cars that were made by mitsubishi. Tokswagens board will meet discuss the impact of the emissions cheating scandal a day after the company agreed to buy back cars and compensate u. S. Customers in a deal that he said to cost at least 10 billion. Singer and songwriter prince has died at his home in minnesota at the age of 57. His publicist confirmed his death but did not report a cause. Tmz claims the star had been treated for a Drug Overdose days before his death. Global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. Guy thank you very much indeed. Central banks firmly in focus. Mario draghi telling markets and politicians they need to be patient. He did this yesterday. The ecb president said measures need to be given time but he also left the door open to doing more. Heres a wrap of his comments yesterday. Paste on our regular economic and monetary analysis, we decided to keep the key ecb Interest Rates unchanged. We continue to expect them to remain at present or lower levels for an extended people of time. The risk to the euro area Growth Outlook still remains to the downside. A recent Monetary Policy decisions have improved overall financing conditions which should support the outlook for consumption and investment. Measures in place have clearly improved borrowing conditions for firms and households as well as credit flows across the euro area. , relatedties persist to developments in the Global Economy and geopolitical risks. If there were unwanted tightening in broad financing conditions, that would alter our mediumterm outlook, regarding actcil stands ready to using all available instruments within its mandate. Any time the credibility of a central bank is perceived as being put into question, the result is a delay in the achievement of its objectives. Guy mario draghi speaking yesterday in frankfurt. Kramer is the chief economist at commerzbank. As ever, Central Banks front and center. We have boj news relating to similar way to a the ecb combining negative rates. Talk to me about where we are in this journey. We see draghi leaving the door open. We see the boj may be doing more. Draghi saying we need to be patient . How long . I think it is quite unlikely that the ecb again loses its Monetary Policy in june or september. The Corporate Bond purchases have not yet started and the cbs significantly lowered already their projections for gdp and core inflation. I dont see in the mediumterm significant Downside Risks to these projections. But in order to convince the governing council to do more in the shortterm, you need to see downward revisions in the projections, which i do not expect. Nothing will happen i think in june and september, but i continue to expect the ecb to start acting at the end of the year. Guy so were not done yet. About thisou reporting that bloomberg is producing on the boj that is moving the market . The boj apparently looking maybe to allow banks or helping banks may be to issue loans in negative rates. Does this feel like a bit of copycat, like the boj is looking at this story out of the ecb and saying, we will have a piece of that . Joerg that is possible. The japanese yen has appreciated over the past couple weeks. This puts pressure on the bank of japan to ease Monetary Policy even more. Is,precondition of this they have to avoid more negative Interest Rates as a burden for the banking sector. the end will cut its rate even more into negative territory in order to weaken the yen. Caroline even more into negative territory it is Caroline Hyde from berlin. I want to throw another central bank to the next, the bank of england. We are getting news out of daimler, saying we will see an effect on the u. K. And the european economies if we have a brexit. You have obama speaking out against the brexit. Where do you lie . Case where arese you envisaging the u. K. Stays within the eu . Joerg as far as brexit is concerned, this would have significant implications for the eurozone. The root cause of the debt crisis is not yet solved. In most countries, but it to gdp ratios are markedly higher. This theory would require that the head of States Government act on this, implement reforms for example by shifting to brussels or stricter fiscal rules, but a brexit would strengthen the position of antiEuropean Union forces in the European Union. Inhave the from nationale france, the alternative for germany, and in most other countries, there is emergent antiunion parties, and the government do not dare go for more european integration. But this is needed to solve the debt crisis. When that governments are not able to act, then the pressure on the ecb will increase even further. Implication, if the u. K. Population were to vote for a brexit. Caroline goldman coming out today, saying they are pushing back there forecast for a hike to the Second Quarter of 2017. Sticking with us is Joerg Kraemer at commerzbank. Up next, we are talking much more about the u. K. Obama warning against the brexit ahead of a summit with the big for economies. Can a bit of president ial magic bridge the divide . We discussed that next. Guy welcome back. Here is yvonne man. Yvonne good morning. Daimler firstquarter operating profit fell 8. 5 as the mercedesbenz Division Earnings before interest and taxes from ongoing business declined 2. 7 billion euros. The figures were clouded by the disclosure that tyler is cooperating with the u. S. In anment of justice investigation of emission certification process. Lloyds Banking Group is considering deeper cuts to eliminate 9000 jobs by the end of next year. Britains largest Mortgage Lender could remove more jobs than outlined under the october 2014 plan to help lower expenses. A spokesman for lloyds declined to comment. Googles Parent Company of about said Profit Margins could be it by higher mobile phone use. More smartphones means google gets its services in front of more people, but the company has to pay more to partners to reach users on their phones. Shares slumped nearly 6 . Microsoft shares also fell after hours after profit came in short of estimates with a weak pc market and higher tax rates weighing on the bottom line. Microsoft is trying to transition to cloud and subscription products, away from its transactional business. Iseant pharmaceuticals finalizing a contract to hire a chief executive. Valeant said in march that Mike Peterson would leave the company once a replacement is found. Caroline . Caroline thank you very much indeed. Barack obama arrived in london yesterday evening for a visit to britain and germany, where he will hold a summit. The u. S. President has already entered the debate on the future of europe, urging british voters to reject a brexit. For more, we are joined by Alan Crawford here in berlin. Thank you for joining us on a beautiful morning in berlin. Obama taking to the telegraph to give the u. K. His thoughts. Why is he doing this . What is the impact on the United States . Wants the u. K. As an ally that is stronger in europe. He used very emotive language in this piece. He was talking about the tens of thousands of americans in american cemeteries fighting for europe during the second world war, so it is a significant moment, not unprecedented. Two years ago, he appeared alongside David Cameron to make the case for a strong written that was united, and this was just ahead of the scottish referendum. Might take anaps impact when it comes to the british motor. He comes to germany and it is not just merkel meeting with obama. Italy, alandi from from friends. It seems to be the five big heavyweights coming together, talking terrorism this time. Alan the u. S. President is coming over ostensibly to meet with merkel for a trade fair, but on monday, they are having this g5 meeting that was just announce yesterday. They are talking lidia in particular, which is a mixed focus for europe because there are said to be something in the region of perhaps one Million People waiting in the migrant migrant countries of north africa. Guy allen, can i take you back to the brexit story it is interesting to see how the terms of the trade are starting to change. Migrant countries of norththe market is paying atn to what obama is saying. Do you think the british people will Pay Attention to what hes saying . Give us a concrete response to this. Do british people tend to look towards washington positively . What actual effect do you think this is going to have . Alan i think that rather than listening to individual voices, as important as they are, this important contribution adds to the momentum that weve had. Virtually every european leader backing David Cameron. It is this overwhelming sense that Global Leaders are behind the british Prime Minister on thisj. , we saw it yesterday with the pound going up, with our own bloomberg index, which is a complex amalgamation of holes and actually going down the probability of the u. K. Leaving to 20 . So i think it is significant and it adds to the overall momentum. Caroline were seeing the british pound, the best performer. British pound up 0. 3 . Lets bring in our guest from frankfurt, Joerg Kraemer, chief economist for commerzbank. We were talking about the impact on the bank of england potentially from the brexit. Are you expecting the bank of england to have to hold off any rhetoric about rate hikes . When do you envisage the first potential for rates to rise, depending on whether we see a brexit . Of course isexit economic risk. This would cause a lot of volatility in the market. The bank of england takes this into account. I do not expect them to tighten Monetary Policy ahead of the voting. Guy when you think about the political debate surrounding all this, when you build your models, what are you plugging in . How hard is it to model this stuff . Barack obama comes over, make some comments, moves the dial in terms of polling. How volatile is this win you are trying to calculate the Market Reaction to all this . Joerg you can only make assumptions and scenario analysis. Our main assumption is that in the end, the u. K. Remains in the European Union. However, it indicates that they will vote for a brexit. This should have implications for the eurozone. You have to understand that in each and every country, we have huge antiEuropean Union force. In germany, the alternative for germany party. If for whatever reason the u. K. Were to vote to leave the European Union, this would significantly strengthen the position of other antiEuropean Union forces in the eurozone. And those parties will talk to the u. K. And say, obviously it is possible to leave the club, and this one make the government even more cautious to move towards more european integration. But this is necessarily an order to solve the problems of the eurozone. In the end, a brexit would destabilize to some extent. Guy great speaking with you. Thanks very much indeed. Joerg kraemer, chief economist at commerzbank. And thank you very much indeed to Alan Crawford as well. Caroline, we should probably talk about what is happening in the car sector. Caroline we should. Six minutes away from the open, autos in focus. Daimler coming up with numbers beating. There is concern that it is embroiled in the investigation when it comes to emissions. Volkswagen, hes it managing to step away from the scandal . Coming out with its agreement yesterday. Ryan chilcote is at vw headquarters. We are scattered across germany today. What can we expect from volkswagen . Ryan they have a Board Meeting. It may have already started. We are expecting a little clarity or at least a robust conversation about how much money they are going to set aside after that deal yesterday. What kind of provision are we going to get . How much are they going to pay out in bonuses . Always an interesting conversation given the cheating scandal. Who done it . Always an interesting one. Not everyone has rushed to providine information to investigators. Finally, what kind of dividend can investors expect . Guy ryan, the stock moving this morning. Talk to me about what is going to happen with daimler. Yan interesting obviously a drop in profit from same time last year. However a beat on estimates. Again, another carmaker overshadowed by this emissions scandal. Daimler disclosing that the are part of an investigation with the department of justice, that they are cooperating with the department of justice. Exactly what that means for the company financially, no one knows. But it is going to weigh on the stock price this morning. Guy ryan, thank you very much indeed. We are to focus on daimler as well. The market open is next. Were going to talk about these stocks. Looks like a flat open for europe. That story, next. On the move guy good morning. Youre watching on the move. Im alongside Caroline Hyde. Shes in berlin today. We are moments away from the start of european trading. What is the brief . Caroline president obama urges britons to stay in the eu. Does his intervention change the terms of the brexit trade . Buying its way out of trouble, vw strikes a deal over emissions in the United States. Is the rest of the industry caught up in a scandal . Keep an eye on daimler stock. And money for nothing. The yen sinks and stocks surge as the boj may help banks offer negative rates on some loans. Fascinating day. We are expecting daimler to fall. Were seeing the dax reflecting what could be a negative day for some german stocks. We are down some 0. 7 . We see it performed farmers than the foot to 100. It does seem to be about the carmakers. Keep an eye on daimler. It seems to be caught up in the United States investigation. We are moments away from the open. Lets get over to nejra cehic. Nejra thanks so much, caroline. We saw a mixed trade in asia. The shanghai composite, one of the worst performers in the world this week. Lets see how europe is shaping up. We could see some muted losses. Ftse 100 down almost 0. 4 . Cac 40 pretty m