plows $1 billion in two uber rival didi. half an hour away -- less than. it's friday the 13th. i won't draw any correlation between the date and the board. we are trading down, softer this value telling us that the axle open down around one half of 1%. inlondon market looks like will be down 1/10 of 1%. friday the 13 -- risk off. caroline: it is certainly unlucky along asian markets. people moving money into the dollar, outlining the hawkish tones coming out of the fed. that's two days of gains for the dollar. meanwhile, the yen is trading higher. but isromo .6% this week currently off by 4/10 of 1%. a flight to safety, to gold, the index currently off by 2%. 21 to show you was the gold index, which is trading higher. meanwhile, crude oil is off by a tenths of 1%. we have seen that rally, the inventories coming back, but today, a bit of the selloff coming off that six-month high we saw in oil. that was a check out on the assets you want to keep an eye on. now let's get out to the first word news with yvonne man. germany's economy grew at its fastest pace in two years. at 0.7%. it beat economist estimates of 0.6%. that's as domestic spending helps weakness in global trade. that best time for a chinese company to repay their u.s. dollar debt may be coming to an end. the greenback is rallying after its worst quarter since 2010, driving up costs for businesses they can either repay or hedge exposure. the capital markets as as much as $3 trillion was are owed into the higher yield, including by individuals at foreign companies. citigroup is said to have disbanded a team of traders who used the bank's own money to make sense of u.s. treasury and agency bond markets. , known internally as the strategic trading desk, was shot down as market opportunities dried up. person says citigroup decided they would be better deployed in businesses that serve clients. monsanto,l bid for which has a market value of $43 billion, fueling speculation that a german company might need to sell assets to help fund the deal. a chemical analyst with atlantic equities says bayer could shed some divisions to make the acquisition work. representatives declined to comment. denmark has lived with negative rates from was four years, blogger than any other country in the world. speaking to bloomberg, the governor of their central bank defended the effectiveness of his team's monetary policy, say it is creating higher demand and boosting inflation. >> negative interest rates are, in fact, working almost like very low interest rates. we haven't seen any large consequences. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . caroline: yvonne, thank you. interesting, for what's happening in certain central banks in europe and the u.s.. two regional federal reserve unopposed, usually have made separate but similar cases for an interest rate increase. they argued that the central bank risks had delayed action for too long. >> we are in a world where policy mistakes anywhere in the world are going to influence us. if china or europe make a bad decision, it is going to influence our financial markets, and it is going to influence our economy. not that we expect them to make bad decisions anymore than they would expect us to make bad decisions. so we do have to be aware that as we raise rates there may be more financial market turbulence. >> moving rates to a more normal level and an aggressive pace, i think, is absolutely necessary to minimize distortions in our economy that can build over a number of years. let's kick this around. the deputy chief investment officer at black rock joins us now. good morning. what happens if the fed raises rates in june? >> it would be a big surprise.bill dudley has been talking about two for 2016, but market pricing has moved dramatically the other way. so i think a june move would be a big surprise, and for that reason alone, unlikely. guy: yet every single fed speaker i have heard over the last two or three weeks says we are going to raise rates, and even the hawks and even the hawks in the doves are on the same page now. we are getting to the point where you wonder if they are he said, as we raise rates, we would expect more market volatility. if he is saying -- yeah, we will take that volatility. the global economy, as we saw, it is beginning to firm up. >> true. what i think they are trying to do is reinforce the idea that they are data dependent. if we get too complacent about the fact that we have to wait for a preannouncement and then announcement, the market make it too complacent, and that is something they don't want, even if they are telegraphing that we have to wait. so maybe some of the dissent or opposing views we are hearing across the board represents this morning to investors; we have to be did dependent. caroline: what does one do when it comes to credit? are you bracing yourself, hedging against any surprise? >> me think the treasury market will be relatively stable over the next several months. we have some events outside the u.s. that will be very important. event, the idea is that we have some important events in the capital market. on balance, if the federal reserve is going to react to the data and react in a slow way, that should be positive for risk assets and relatively positive for longer maturity treasuries. caroline: interesting that we are seeing a 50% chance of raising rates this year and 30 year debt to go to 6%. is that where the sweet spot is? >> to get to that kind of extreme movement, you have to be concerned about break at inflation. you have to be concerned that inflation will get away from the federal reserve, and i think that will be hard, and even with , that theappreciation extreme move. guy: our treasuries at the right price? take up the fed, take out everything else. treasuries versus the economic data. right price? right correlation? >> my answer would be no. fundamentally they don't seem to be properly valued. by you take the major central banks -- bank of japan, bank of england, ecb, and the fed. net issuance for those is zero. it was $3 trillion five years ago. the reality is that fundamentals and policy are in this epic battle here between what is fair value and what is not. policy is obviously a key driver. if monetary policy were to shift, you would see a shift higher in rights. guy: briefly -- so little liquidity, the pendulum could swing quite quickly. >> yes. liquidity is the challenge for number of reasons, and i think policy -- that is why fed policy is so important, that they telegraph what they will do. they're concerned the market is priced to dovish like, and you get this banter about how rates, fluid.cy should be more caroline: thank you very much. he will be staying with us. up next, michael turner says he vows to restore brazil's credibility. we go to brazil, next. up, we will have an exclusive interview with the prime minister of the republic of ireland, attending the brexit event in dublin. we will be speaking to him. ♪ guy: friday the 13th. this is what london looks like. the market looks like it will be opening on the downside. let's find out what's going on around the world with your bloomberg business flash. yvonne: thanks. apple has invested $1 billion in the chinese right healing service didi. it is the second largest investment they have ever received as it battles uber. they will help them build a data-driven ridesharing platform as they complete 11 million rides per day answers 300 million users. other investors in the business include alibaba and tencent. volkswagen's european market share has narrowed for an eighth month in a row. the european automobile manufacturers association says that their four-month market share was 23.9%, the lowest level since 2011. the german carmaker has been losing ground since it's admission to rigging diesel cars to cheat on emissions tests. deutsche bank is set to cut 30,000 clients, according to a report. cites persons close to the bank, saying it is eliminating investment banking clients by the end of 2019. deutsche bank has 65,000 clients in global markets, corporate finance, and global transaction banking, the most of it exists only on paper. hsbc is higher at 100 75 people for the financial crime compliance team. according to a person familiar matter,r with the say they will reassign offices to focus on anti-money-laundering and sanctions compliance. they will be based in edinburgh, where the bank recently opened a third office. ceo was getting personally involved in an investigation into allegations of bias in the way the company highlights important news on its social network. willzuckerberg says he host open discussions with conservative leaders and other politicians about how facebook can avoid appearing biased. he said the company found no evidence of what the report said, but will take action if they uncover anything against its principles. ay ceo says he sees boost to oil. >> i think by the end of the year, we can't have a balance between supply and demand. balance.t a i don't know it will happen immediately. [indiscernible] but i think we are going there because production is slowing and, supply is going down, development went down drastically. i think gradually [indiscernible] yvonne: that is your bloomberg business flash. caroline: thank you. meanwhile, oil continues to trade lower, off by 9/10 of 1%. let's shift gears to look at brazil. the new president has appointed a former central bank chief as brazil's new finance minister. he is tasked with pulling the nation out of the worst recession in a century and winning back investor confidence. he says it is important to restore brazil's credibility. >> i hold the absolute conviction that it is necessary to rescue brazil's credibility. internally and on an international level, a factor necessary so that entrepreneurs from the industrial sector, services, agribusinesses, and workers of all productive areas can become enthusiastic and be reassured about their investments. caroline: let's bring in our guest, the deputy chief investment officer at black rock. emerging-market debt. ubs telling us earlier in the week that potentially the credit of brazil is where it is still appetizing. as brazil appetizing? >> for us, it is still very attractive. three major, important drivers -- monetary policy, which seems to the transitioning slowly if it does; chinese economic growth seems to have stabilized, and the government has put a plate in place; and valuations still look relatively attracted although having rallied, quite a bit. you get some idiosyncratic positive stories, and those help to stabilize the sentiment about the asset class. guy: where do you think the biggest demand is going to come from? you are sitting in japan right now, and brazil looks pretty attractive. >> that's the thing. japanese monetary policy rates on offer in japan, japanese investor appetite is a very important swing factor. obviously what is happening with the bank of japan and their rate structure, i do think it is driving investors towards emerging markets. you have to because it's about an entry point and exit point because it is very volatile, by taking a deep breath and a longer-term view, attractive valuations and positive fundamentals on balance. guy: is japanese fixed income money the biggest swing factor right now? >> many, many japanese investors are active in overseas markets. that has been obvious by the flow of funds. now you have -10 basis point yields -- caroline: when you go to treasuries? is your risk appetite ready? >> of course. there is a spectrum of risk appetite that goes from treasury markets to emerging markets, and obviously that is an important factor in the treasury market valuation. you don't have a very big view on the currency direction, and it's attractive. caroline: how do you break yourself in emerging markets if the hawkish federal reserve speakers prove right, and you do get a rate hike? >> this is a tricky bit. the way we approach it is that you invest in the fundamental stories that you like. brazil is one of them; india, mexico, russia to some degree. then you can take active and tactical positions in for liquid effects. there are ways of hedging the risks without taking a long-term view, but it is very volatile, and you have to be able to hedge your exposure. guy: if we were to see a hike in the near-term, what kind of extrapolation would you get from that? that is probably the next critical factor. >> it is. and this comes back to the original point -- is the fed reacting to the stronger economic data globally end of the u.s.? that's a big positive. if they are reacting because they feel like they are behind the curve, or if there is a sense of urgency, that is less positive. other risk assets would be lower if the fed were to surprise, and if we learned is because economic activity is stronger on a fundamental basis, then that is a better thing. caroline: janet yellen and her team have been having more global perspectives. there is a huge economy we haven't touched on, in china. where are you seeing the balance of risks to the downside? >> your point is an interesting one. the fed has moved its focus on the u.s. to outside the u.s. and back, and you have to also remember that 85% of the u.s. economy is generated within the united states.that being said , china is very important. our view is that 6%, 6.5% growth, which seems to be what they are targeting, is certainly achievable, and its relative slow down to that level would be positive for risk assets overall. i think the big concern in china is around finance, but that will play out. scott, you will stay with us. we are minutes away from the open. up next, the potential corporate movers, including apple's supplier as they look east for new sources. ♪ guy: 7:53 in london. we are counting you down to the european market open -- which stocks are we paying attention to? caroline: i'm really intrigued by this apple story, apple going in to didi. notably, there has been a big selloff in asia trading. the taiwanese semiconductor and supplier to apple has seen warnings that we could see a 20% decrease in chip shipments to apple, as is being reported by the nikkei. we could see dialog semiconductor on the back of this, so watch out. watch out luxury produces. burberry, nordstrom, a terrible set of numbers. we have a warning coming out, many looking out -- look out for luxury names. and lastly, you talked about this -- we got excited about this particular company with the missing plane. this is a satellite company that have warned on their overall sales growth guidance. they are cutting in and having a strategic review; hsbc cut their outlook. bank of america merrill lynch says look out. guy: you don't want satellite falling. that idea. -- bad idea. give me your take on nordstrom. are you worried? yes or no? >> they have a sign of life because of falling gasoline prices. consumer activity and gas prices in the u.s. go hand-in-hand. and we have seen the deleveraging of the u.s. balance since the financial crisis. theany respects, i think big question is will they spend that effective gift they happen given? guy: looking forward to that later on. that's it. the market open his next. we will take a break and show you the numbers we come back. ♪ guy: one minute until the market open. we are right here in the city of london. i'm alongside caroline hyde. here is her morning brief. caroline: two federal reserve presidents. normally on the opposing sides. both make their case for another rate hike. the market likes to ignore the warning. the brexit battle. leavehe u.k. vote to the eu? sales asn in iphone the companies which is gear and puts millions of dollars into the uber rival, didi. a third day of losses on the stoxx 600. if we are going to be checking in, let's look at the tech industry group. let' l -- let's see how we are opening at the moment. we have a decline of .5% with the stoxx 600. but dax is up by more than one percentage point. by .3%.40 is down >> i have got the different industry groups on the stoxx 600 on the imap. it looks like commodity producers and materials are down .4%, they are the biggest losers, but we are seeing losses pretty much across the board. energy stocks are also down .7%, not a surprise given the oil price is slipping today, especially the u.s. crude falling from that six month high. let's look at some individual stocks. here what we have is the quarterly loss widening. this is a french building and telecom conglomerate. this will affect this year 's operating profit. we will see how this is reacting to this widening quarterly loss. 1.6%. see, it is up and then if we look at vw, we can see a market share narrow for an eighth consecutive month. the carmaker emitted to rigging consumer cars to cheat on emissions tests. volkswagen is up on the board. what we see here, they said they are going to replace the chief executive officer. he hathey have been grappling with falling sales and have reported a 2% decline in first-quarter sales. revenue fell in all three of its three biggest markets. guy: thank you very much indeed. we are just getting details through from honda. i just remembered, as you are looking at what is happening within the european car sector, just be aware of the fact that some of the big names are giving out dividends, as a result of which, they are tracking lower this morning. you just have to back that out. the honda four year operating profit, $400 billion. it looks like honda is a little bit light as well. european car sales are up for the 32nd consecutive month, rising 9% in april. this is not such good news for volkswagen.ks like let's look at the big picture, first of all. the european economy seems to be getting back into gear. we saw german data that was strong. is that consistent with the car data we have seen because those numbers have been increasing for quite some time? >> exactly. it is not just germany. analysts are predicting that the first corner economy growth in the european union accelerated. so, it is not just germany. that also those countries have had recessions and to last year. people are purchasing cars, companies are purchasing cars. so, that is one aspect of it. another aspect as well is the new popularity of sprint utility vehicles. these have been popular in the states for a while, but the europeans are discovering they like them as well. anna: vw sales are up for april, but not to the level of the competitors. the market share has been eroded. is vw held back by the scandal? since, it is basically september that the market share has been narrowing. now, it is that a five-year low. this is a five-year low for the first quarter as well. part of that is because there was a lack of resolution as to what was going on with the cars that were affected by this emission software system. so, the recalls have started in europe. that will help them a little bit. at the same time, people are looking at companies that do not have that burden of a scandal. vw does not have the sport-utility line out that others do. so, other people are looking other brands that have a wider range of suv's. guy: thank you. if you are looking at the with anthis morning, vw fixed dividend. do you worry about the auto market? >> i think there are signs that there is strength in consumer goods in europe. it is indicative of the positive environment for the german company over the last several quarters. you have had lower oi oil l prices and have had to balance a weaker euro until recently. other very positive for a german economic engine that has high-quality output. they are very dependent upon the currency and the oil price input. caroline: talk to us about getting your hands on corporate credit right now. ecb as a major buyer. how much will this be affecting liquidity? >> the corporate markets, the nonfinancial markets, it has outperformed other assets for example. that is only basis that we know have this big, less price sensitive buyer that will take quite out quite a bit of paper y month. in my view, the corporate market in europe, which has a yield of 1.5%, you have to factor in the ecb purchase program to make sense of that number. but is very interesting is that the treasury market component has a negative yield. therefore, you get more on spread in corporate, than you do in yield. it has been that way for a little while, but that spread continues to widen. so, corporate spreads are wider than corporate bond yields. it is very and usual, this discussion around negative interest rates, and how long and how sustainable is that. the ecb seems to be moving from further rate cuts to more asset purchases, which would suggest the bond market looks very expensive. guy: how do you look at a car company? as something that makes cars and gives them to us and then we all drive around? 40 look at them as -- or do you look at them as banks? how should i assess these guys? >> and many respects, you have to look at the strengths in the underlying consumer. how they corporate that into their balance sheets is very important, but in our environment, it is an indication of how the consumer is doing. in our mind, it is very much a reflection of the overall consumer activity, rather than the advantage to the financing. guy: we will carry on the conversation and he will stay with us, joining us from blackrock. theext, mark carney rings alarm bells on brexit. we will talk the referendum, next. ♪ anna: 10 past 8:00 if you are in the u.k. breaking news in the tech front. apple has concerns about slowing down on iphones. they are getting into the auto sector, getting into car hiring. because apple is investing in didi, the chinese rival to uber. it is investing $1 billion and bringing didi's fundraising to $3 billion. this chinese car company being able to hire and ride, set to reach $26 billion. that valuation as well below that of uber, the starting to pick up. ismillion rides per day what they are currently servicing with 300 million users. this is why apple wants into china. guy: let's talk about the markets and figure out what is happening this friday morning. we have a negative picture really. the dax is down .7%. the euro stoxx is down by .6%. that, particularly in the car sector. let's get the bloomberg first world news now. >> germany's economy grew at the fastest pace in two years. three months,in which be economist estimates of their .6% growth -- of 0.6% growth. greenback is rallying after the worst quarter since 2010. u.s. currencyepay borrowings. $3 trillion were borrowed. that includes by individuals and foreign companies. citigroup is said to have expanded to a group of traders who used the banks'own money. according to a person briefed on the move, the team know internally as the strategic trading desk, was shut down. citigroup says he thought resources would be better diploid witeployed to serve clients. the german company might need to sell some assets to help fund the deal. according to a chemical analyst with atlantic equities, the acquisition might work. representatives from bayer and monsanto declined to comment. global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . guy: thanks indeed. now, in his strong the morning at, mark carney -- in his st rongest warning yet, mark carney has warned about the brexit. is inturally, the boe independent. here is the governor talking about possible risks. >> the mpc judges that the most significant risk to the forecasts concerns they referendum. with macroeconomic indicators to be less informative than usual. the committee is currently reacting more cautiously to data releases than would normally be the case. we are not making a judgment, forecast, or assessment of the longer-term economic consequences of either decision. nor will we make that determination, but we havea a responsibility explicitly in statue to talk about the risks and the trade offs that monetary policy faces. leaving the economic union could have the material effects on the exchange rate, the demand, and the economy's supply potential. they could affect the appropriate setting of monetary policy. is a judgment not based on a whim. is based on rigorous analysis and careful consideration. it is a judgment of the independent mpc and all members of the mpc. of course, there is a range of possible scenarios around those directions, which could possibly include a technical recession. our let's bring back in guest, the chief executive of fixed income with blackrock. mark carney is making it very clear that he has already seen an effect. he's making a clear that it will be amplified down the road. much of that material that is cyclical, how much of that is brexit? how can you price in this at this stage? >> this is a very pivotal moment for the u.k. we would say that the slowdown we have noticed over the last several months has really been as a result of her concern over the brexit and the eu referendum. obviously, we have seen a pretty activity,ine in which makes sense, given the magnitude of uncertainty around the june memorandum. that being said, it could pivot back to the trend we thought earlier if we get through the referendum. caroline: have you been looking to get into european asset classes in response to this? what would have been your placement in terms of investing what you go through this period of uncertainty? >> that is very important to take a view on brexit for not but u.k. investming, european bond investing. they have underperformed other risk assets in the last several months and i think that is related to the referendum. that is important for the u.k. and the eu. we are trying to position the portfolio for the fact that u.k. will remain, but there is a tremendous amount of risk regarding the outcome. the referendum was announced. if you look back at the end of next year, they underperformed. they have come back to on spread with treasuries and funds. every basic risk has rallied about 50 basis points. respects, they market has become a little bit more optimistic about the remain. caroline: does that include the pound? >> the pound has sold off about 9% on a trade weighted basis. we thought originally, if we we wouldan exit view, see 20%-20 5% depreciation -- 20% to 25% depreciation. that is our view. guy: that is making mark carney and the mpc's job just that little bit more difficult. ireland bracing for the brexit. is there a european union without britain? that is next. ♪ caroline: welcome back to "bloomberg markets: middle east ." -- welcome back to "on the move." our next guest says a deterioration in sterling is making it tough for irish exporters. what you're not joined from dublin, where bloomberg is holding a brexit debate. we are glad to have you on this show. give us a sense, where are your views at the moment as to whether we will feed thsee the u.k. brexit? >> the line is pretty indistinct, to let me try to answer what i think you asked me. the brexit vote is extremely for ireland. there are one billion euros that read each week between ireland and united kingdom. and the dislocation of that will be felt in the country. exchange-ratean appreciation of sterling, as the bank of england indicated yesterday. ireland ofect on britain leaving the european union is externally serious. guy: do you think the brexit debate or the brexit outcome the have an effect on decision to sell a stake in your business? >> well, the decision on whether to sell the shares in aib is a matter for the minister of finance. and obviously, in making that decision he will take into account the state of the stock market. and irish government policy will determine when he sells the shares. that will give us two months notice. we are ready to go. we have a prospectus ready and will be ready to comply. guy: whichever way the outcome is, there will be some volatility. is that going to have an impact? if the u.k. decides to remain in the u, there will be volatility. if the u.k. decides to leave, there might be more volatility. what are you saying? is that volatility going to be a preventing factor for the finance minister? regarding selling some of that business, i mean. >> i would say there will be a lot of market volatility if britain decides to leave the european union because the terms of trade of britain with the european union will not be known for an extensive period of ti me and it will take a very long while for the revised trade agreement to come into effect. the are some very heavy-duty negotiations, in the absence of any agreement. apply rules.o will during that period, there will be reduced business investments in britain. that will have an effect on the irish economy as the british economy slows. this is an extremely dangerous economic event, which both governments have indicated is the biggest macroeconomic concern. admitted quite publicly that the british people will decide to remain in the european union. it does not seem to make any sense at all why britain would leave. caroline: what is your contingency plan? what have you put in place already if we do see the u.k. leave the eu? >> thank you. caroline: sir, can you still hear me? some technology issues. thank you very much indeed. we of course, will be digging into this much more. we have an exclusive interview with none other than the prime minister of ireland. we are hearing very much the negative side of the equation here. of course, the impact on exporters in ireland. what about the potential positives? could we see more corporates go to ireland, go to dublin? perhaps, it is an easier jump then moving to frankfurt? guy: as a banker, would you rather live in dublin, or in southern ireland, for would you rather live in frankfurt? caroline: i know what i would choose. guy: up next, we are talking about what will happen in the technology sector. didi received $3 billion from apple. we look at the motivation behind the move. ♪ [ soft music ] e.t. phone home. when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. trading day. let's bring up the numbers. 8%.are down by . the ftse 100 is down by .6%. friday the 13th, not a great start to the markets. uber'ss set to help china rival, didi. putting $1 billion into it. . the thing. i thought apple was investing a driverless car. why are they doing this. what is the motivation from tim cook's point of view. caroline: they have a $200 billion cash cow. and they need to put that to work. i feel like this is talking up with the services sector. they keep on talking about the billion users. they can suddenly have 3 million users using apple pay. suddenly, they are able to expand their presence in china. they might not be selling the iphone's like they wanted to, but they are getting their services into the chinese user. big bet onthis is a bet bet o automotive and transportation. guy: if i am an investor in apple, what it my getting out of this? -- what am i getting out of this? i wonder if they are trying to replicate the google model. invest,e the cash to and maybe they are just trying to spend that money. the concern about apple is it has x growth, to generate a certain amount of profit. do i value it the same way as the service company, for do i value it as if it is going to turn around and produce new products? caroline: and whether it is the moon shot element, replicating google. interesting that they are working with these huge economic players in china. the guys before, apple and uber have always been very close. the app was developed for the apple product. we understand according to berormation, that the u chief executive is going over to apple headquarters as soon as he possibly can. so, interesting. guy: i just need to bring up the chart because nejra has joined us on set. i hope this is all going to work and pop-out. caroline: give us a sense of what is going on. last summer, apple was worth 1/4 more than all of china's tech companies combined, quite staggering. but if you look at this chart, see it is worth about the same as apple. we put another chart as well on the bloomberg showing that because of apple's lost yesterday in u.s. trading it has fallen behind alphabet again for the second time this year. it could be again, losing its place as the world's. he will company. going back to this chart, on the one hand apple's lead has narrowed because what is going on in the smart phone market. but also, the stronger yen has pushed up the value in dollar terms. the stock was down 30% in the last year and 14% in 2014. caroline: reports on the nikkei overnight says may be, we need to slow down to the tune of 20%. this will have ramifications off the entire supplier base for apple at the moment. once again, just to these nerves that the killer product is not selling like it used to. nejra: and that is why apple fell yesterday and why we have seen it affect the asian trade as well when it opened up overnight. there is a possible ove silver lining for apple. the stocks tend to bounce back after these rare periods when they are having a rotten couple months. guy: it will be interesting to see whether or not this carries on. thank you very much. apple is an interesting subject for our next guest, the irish prime minister. he is probably more worried about the brexit narrative right now. we are going to be speaking to him next in dublin. ♪ guy: welcome back. you are watching "on the move." it is a risk off story this morning. up ay, we are catching a bit. gold is catching a bit as w ell. this is consistent with the theme we have seen in asset classes this morning. gold is up by .1%. we are in risk off mode, gold is doing well. which stocks are muddying th e pond? nejra: i am starting with one of the biggest gainers on the stoxx 600 this morning. at a beat.oming in they maintained their target for 2016 to 2017 revenue. we are also seeing bouygues move higher. this is even after the last quarterly loss. the company said financial charges for the rollout of its mobile network sharing will affect this year's operating profit. that stock is gaining and the biggest loser on the stoxx 600 is down a staggering 26% of the moment. that is eutelsat. they actually cut their outlook for the four year margin and four year sales growth. it also undertaking a review and it will give us a strategic update in july. this stock is falling quite significantly on that news. caroline: what a move, down by a quarter. now, let's get our for a quick check on the bloomberg business flash. >> thanks. apple has invested $1 billion in uber's china rival, didi. this will help the company buildup a ridesharing platform. they service about 300 million users across china. didi also counts alibaba among its investors. the bank is about to cut 30,000 investment clients. to papers that it is a plan eliminate investment banking clients by the end of the 19. georgia bank has 60,000 clients. most of them exist only on paper. has reportedhell a sheen of 97 miles south of louisiana, near its glider field. the spill was estimated to be 88200 gallons. there is no drilling going on at the area. hsbc is hiring 175 people for the financial crime compliance soon-to-be u.k. consumer bank. the team, which will be joined by 25 employees moved from other offices, will focus on money laundering. they will be based in edinburgh, where the bank recently opened a third office. a facebook ceo is getting personally involved in two an investigation. mark zuckerberg says he will host open discussions with conservative leaders and other politicians about how facebook is appearing to be biased. the company found no evidence, but the report is true. take steps towill address this if anything is uncovered. that is your bloomberg business flash. caroline: now, let's get on to the mma story. largestould create the supplier of of chemicals. areces told us, they discussing the bit internally. give us an update. how realistic is this phenomenally sized deal? because monsanto has been bid for in the past year significantly. >> there is a big shift going on in this space. the reason this is being considered is because buyers have seen past mergers. you have bayer looking around thinking, what do they need to do is the rest of the industry is consolidating. the likelihood of it happening -- that is the $1 million question. but they are a bigger company and they have the money. concern, gives me some how you would finance the deal. could we have a situation where they structure it in a way, where they finance these companies and then split them up into different divisions, like we have seen with the rest of the sector? nobody has discussed the idea of a breakup. i know that model is out there and you could ask the question because bayer is an interesting company. up until now, they have been very adamant that there is synergy. they want to become a life sciences company. so, while no one has discussed the idea -- of course, you could talk about it -- but the idea is you combine crop science with monsanto. you get the integrated model, which would, the pharma business and make it more diversified. you very much indeed. the irish government is keen to attract british officials to island. bloomberg is currently holding a brexit event. we are now joined from there now. good morning. is the irish government ready at the possibility that we see ane theit from the eu of u.k.? >> it is a decision for the british electorate. it is not for me to lecture them what to do. really though, this is one of the most crucial decisions that will have been made in the past 50 years. we want them very much to remain part of the european union for many reasons. that includes obviously, the trade between our countries, the impact on of northern ireland island, the fact that we have a common travel area since the early 1920's, and the fact that europe itself is much stronger with a stronger britain. but that is a decision for the british electorate. guy: is all negative though for ireland? some suggest that maybe actually you could see a huge influx of companies from across the irish sea, particularly finance companies. : well, all kinds of possibilities are being talked about. we are focused on working in the interests of a stronger union and a better britain. and that britain should stay. with of we identified the fact that britain might decide to leave, as a major strategic risk back in 2014. clearly, a decrease in the british gdp would result in a contagious impact on the irish economy. but we are focused on the fact that it is important that the british electorate be fully informed, or as informed as possible, about the implications of the decisions they must make. and while nobody likes to be lectured by anybody else, we have a unique arrangement with britain since the 1920's. there are almost one million irish people living in britain and we take a particular interest in in forming those people, who have the opportunity to vote in june, just how important this is. over the last 40 years, we have had a lot of experience on voting on european referendums with the different treaties. so, people in this country are very well acquainted with the issues that surround the european project and the european process. and from that point of view, island has clearly made its decision. irrespective of the decision of the british people, and we hope it is a positive decision, ireland will continue to remain linked to the euro and european union. 0=40ade that decision in a 6 decision a number of years ago. guy: you have had an interesting referendum in the past on a number of european subjects. but just to come back to the issue of the upside, have you been actively courting u.k., european banks, american banks? try to make it very clear you offer an opportunity, as you say in your point of view, not very good outcomes to come into reality. have you been talking to the banks? have your guy's been there, trying to make a case for ireland? we have not been actively courting the possibility of further investment here if britain were to leave. those who wish to invest in a country like ireland know fullwell the opportunities that we offer. in a position to make investments. offers.w what island clearly, these are applications. but for us, it is important and having very close relations, having signed memorandums with britain, that we walk with britain in europe's interest, in britain's interest, and the eu's interest. but as i said, it is a matter entirely for the british electorate. they have an opportunity to cast their vote on june 23. guy: you talked about seeing a linkt to the euro area. there have been a lot of questions whether or not we would see copycat referendums on eu membership. do you think that could happen? if it doesn't happen in ireland, where could it happen? >> well, ireland has already made its decision. we are linked with the euro and the eu, irrespective of the decision britain makes. burton is our closest neighbor, with over $1 billion in trade across the irish sea every week. jobs from400,000 both countries dependent on the trade. we look to the future. has europe had the opportunity to set standards for trading in the next 50 years. that europe would be stronger as having britain is central player. so, we look very closely and we will continue to do so with britain. if the british electorate were to decide to leave the european union, island would obviously still stand up for britain and would talk about those close at a european level. but i could not determine what the outlook of what the response from the other 26 countries who had arrangements with britain would be at that stage. so, these are all alternatives. these are all outcomes that one cannot predict. but for us it is very important that we continue to inform our people, and that the british electorate are fully informed, as to the nature of the decision they must make, as to the consequences of the decision they must make, and that they make up their own minds at the end of the process. it is now intensifying in the range of debate taking place. guy: one final question and it might seem from m frivolous. if the u.k. were to leave, do you think english would become the common language of the eu? >> i think english has become to some extent, the common language in a global sense. obviously, those from other countries, far eastern countries, from the eastern european countries that have joined over the last several years, have all done the business in english. i remembered when island of the presidency of the union back in 1996. many of those countries were doing their business through english because they recognized its global implications. it has been around for a long time and it is not going to go away. guy: thank you very much indeed. the irish prime minister, enda kenny. we are going to take a break and then we are going to talk about the federal reserve. we have a dove and a hawk in agreement. ♪ caroline: 8:54 in the u.k. and 9:54 in france and germany. here are some highlights from a rather dreary day. guy: it is going to warm up over the weekend. caroline: an hour after we get economic growth data from the eurozone we have italian economic data. and then, at 1:30 u.k. time, we have u.s. retail sales and the ppi number. there are real concerns about what the consumer is doing at the moment in the united states. guy: don't slow down. don't stop spending. that is one of the critical messages. jones, walkchard us through the day. we have been looking closely at the retail sector in the netted united states. >> you are right to focus on the retail sector. i think the number today is expected to be better than it was previously. like you said, it is quite murky? caroline: what are they buying? >> everything is always on sale. price forpay full everything. it always seems there is some kind of sale going on. i get e-mails every day from the is 30%ying, "everying off!" guy: that is a richard jones spends his time off. essage, it is something the market does not believe. >> every time the fed says something about what is going to happen in the future, it is not a promise or a commitment. it is their best forecast. these things have been changing constantly during this entire cycle. i think, every meeting his life, but the market is looking at -- guy: they are trying to say, we will warn you, in terms of a formal process we have had in the past. are they trying to shorten the time between, we say we are going to do it and, we are going to do it? >> i think things changed in 2008. course during the entire of our careers, it has always been the fed very much telegraphing what they are going to do and this is consistent with that. but in the world we live in, it is a much more contentious and i think, drawn out process. caroline: 30 seconds ago, we also were speaking about the brexit today. all eyes on the british pound. stay with bloomberg television. "the pulse" is up next. we dig into those retail sales. will we see a bit of a pickup? ♪ beware, saidkets voices face a near hawkish tone while governor kuroda signals there more easing to come in japan. brexit battle. kenny joins kearny in a morning on leaving the eu. and brazil's new dawn, the government's first day on the job. we assess the enormity of the talk ahead. welcome to "the pulse" live from bloomberg's european headquar i