I am Francine Lacqua. Also coming up, we try out the bendable sunglasses that kids cant break or lose. This is serious business. My children love destroying sunglasses, anything they can get their hands on. Plus, the church of buffet. The oracle of omaha has inspired thousands of investors. We sit down with one of his most faithful followers. First, a bloomberg exclusive. We have been speaking with italys newly appointed finance minister. He told us he would welcome further depreciation of the euro but he doesnt expect it to happen. Offario draghi has taken the table the risk of the breakup of the eurozone. This benefits all eurozone members including italy. Italy are growing again, exiting the recession. The challenge for italy is to make that growth which is too fragile, much more consolidated and resilience. This is where a italian policy comes in. Broad and launching a ambitious structural reform reform ascluding tax well as measures to boost economy in the short term. We strengthen the recovery and make it more sustainable over the mediumterm and more job rich. Any concerns about the italian banks . We have the stress test results not the result, but the stress test tests that they will be put through. They need to be credible. Will they be credible . The comprehensive assessment needs to be credible. This is a need that all european banks face. We need to be convinced and d that the system will be fully repaired. Italy has gone through two years of very deep recession. In spite of that, italian banks have proven to be highly resilient. There are nonperforming loans but banks are rebuilding their capital. I am convinced that in a short time there will be normal conditions to lend to the economy and support growth. There seems to be a lot more open talk from france that we need a lower euro. Certainly a lower euro would help the european economy. It would take off some of the pressure towards deflation in europe. One thing is to think that a lower euro is useful, which i share. The other thing is to think that we can target the euro. This is not something that is feasible. How do youtually explain the fact that the euro has been so high . If the fed starts this program of less accommodative monetary policy, is it a consequence that the dollar should go up . We tend to forget one fundamental element, that recently the eurozone has turned into a large current account surplus situation. That adds to the strength of the euro. Fundamental variables driving currencies have to do with growth and in this case higher growth in the euro in the u. S. Why is that happening . This is a bit of a puzzle. There is no obvious reason to see a strong depreciation of the euro coming up to reagan i would coming up. I would really welcome a softer euro. This is different from the Exchange Dynamics in the short term. That was italys finance minister speaking to us in an exclusive interview. You will hear more from him shortly. Lets turn to another bloomberg exclusive. Sprint is planning a bid for tmobile. We are joined now by our International Correspondent, hans nichols. And Matt Campbell is in london. Hans, lets start with you. Lets figure out exactly what this eel looks like in terms of timeline. How long before we get to a deal being announced . According to people familiar junejuly iser, when the formal offer would come. It would come from sprint which is owned 80 by softbank. Here is the news. You have these executives from sprint who are lining up the financing. They have spoken to six banks. You can look at that as a sign of caution or confidence. Caution because they simply want to be ready if and when they get Regulatory Approval. They have two hurdles to clear, to clear. Softbank and sprint think they can jam this through. There is a Regulatory Environment somehow different from 2011 when at ts attempts u. S. , when ite fell through. I would be curious on that and whether he thinks this is caution, confidence or a mix of both. I see this as almost a regulatory story. Secondarily, a business story. Obviously, muska gushy Masayoshi Son wants to do this. He is an aggressive guy. Whether there is willingness in washington is really the 40 billion or 50 billion question. At t found this out the hard way. I dont think sprint wants to see that. We have seen in europe a couple attempts to go from four mobile players to three. That is still tied up in the regulatory weeds. I dont think this is a slamdunk at all. How much of the story is the fact that Masayoshi Son is involved . He is the chief executive officer of softbank which owns 80 of sprint. We understand he is trying to build an argument to convince regulators. Can he do it . Like he doesnt give up. He doesnt give up. This guy is a journalists stream. He wants softbank to be the most important Telecoms Company in the world. You cant take to the Regulatory Industries in washington. A lot of companies have found that out. They will make a case. One thing i thought was interesting in alexs excellent story, was that Masayoshi Son doesnt want to include a big rig up the. When at t did this with tmobile, there was about a 7 billion breakup fee. Tmobile became a much stronger competitor than it was before. Softbank wants to avoid that. I would be interested to get both your takes on that. Do you think that signals he is saying i am not 100 sure . Mission may be that the regulatory story is not on his side. It is a bit of a hedge. We dont know what the number is going to be in the attempt to take over tmobile. Isthing south of 7 billion an indication that they are not as confident as at t was. At t was overconfident. I remember talking to bankers who were convinced this was going to go through. They thought it was a layup. Everyone was so shocked. Now we have mr. Son making this play. Perhaps the only ceo that is more interesting than Masayoshi Son would be john legere, the ceo of tmobile. Next time, we are all going to wear pink tshirts. Not a problem for me. I can do that. We can all do that. Matt doesnt normally wear a tie. He is looking very smart. Would be much more in keeping with my usual look. Thanks very much, hans nichols out in berlin. Campbell herematt in london. A tonight, dont miss conversation with the tmobile president and ceo, john legere. Lets move on. Lets go from telecoms to television. Bskyb shares are rallying and shares are advancing. Ryan chilcote has been watching this story as the tv landscape changes. The numbers, ryan . Third is just one number you need to Pay Attention to, 74,000, that is how many paytv subscribers btb bskyb added. That defies expectations from the analysts who thought this lose skyrter bskyb may tv customers, may see a drop, which didnt happen. Dough andome serious has been somewhat successful in bringing tv customers to its business. Billion topent 1. 5 get rights to Champions League games. There has been an astounding amount of money to get those 38 games per premier season. We still have some pretty good results today from bskyb which is going to give bt a running going forward. Ryan, thank you so much for all of that. Here is what else is on our radar. Passengers are facing long delays at several u. K. Airports. The glitch on computers caused chaos at heathrow and elsewhere. Say engineerses are working nonstop to resolve the problem. Actor kevin spacey sat down with charlie rose. They spoke about what goes into making the hit series. It is so much fun because i am heavily involved in it. We all grapple with it, we talk about it and discuss it. Andve an idea and we play he says, your idea is terrible but that led me to this idea. There is this remarkable journey that we are all on. The funnest part is that there are so many things i dont know yet. You can catch the full interview on charlie rose a little later today. The fed says it will continue to scale back stimulus as the u. S. Economy continues to recover. The central bank is on track. Interest rates will remain close to zero for a considerable time. Up next, you cant always get what you want. Italys finance minister says he would love the euro to weaken but doesnt expect it to happen. Is he more optimistic about his countrys rose goals . We will bring you more next. Welcome back. Lets get back to a bloomberg exclusive. We have been speaking with italys finance minister. You heard him say that targeting a weaker euro will not work. We also spoke about growth targets and whether the governments forecast is actually realistic. I do hope that we can do better than that. Although i cannot say that more explicitly, i think that there are good reasons to think that we will have a surprise. Upside surprise, by what . Led by a combination of support measures to low income families, support measures to companies and to a boost in confidence. What is your take on the deficit . Does the European Union need to be more relaxed . The fiscal position in italy is extremely stable and in line with targets. Expectedal deficit is 6 this year and yea declining next year. The debt will start declining next year and continue to do so. State that the current fiscal position is absolutely under control. If i may add, figures look better in italy than in other countries. Is there a danger that because markets have gone up quite a lot and there is a lot ,f confidence in the markets that there is not that third check on the markets . Certainly markets are very benign these are the Investment Opportunities in the periphery. A risk of complacency. I would describe the situation a bit differently. Windows a very favorable of opportunity with growth resuming and financial conditions easing and Market Opportunities increasing. Must strengthen this window of opportunity by making growth more stable, more resilient, more jobrich. Finding ways to make a budget balance, which is more growth friendly. Italys finance minister speaking to us in an exclusive interview. Lets get some reaction to his comments. We are joined by an economist at deutsche bank. Thank you so much for coming in. Italy is on a path to recovery but it is going to be slow and painful. Does it help . If the reforms dont go through, we are back to square one. Finance minister is saying in terms of shortterm growth maybe we are less optimistic. The problem of italy is not the fiscal deficit. The problem is growth. Without reforms that have to be approved by the parliament and , that is really the problem for italy. Does italy need to renegotiate its compact . I dont think so. Improve potential growth by a higher deficit. But you sometimes need to prime it. It is easy to do structural reform when the commie when the economy is starting to pick up speed. Structural reform in a low growth environment is difficult. You prime the pump, start the motor running and then start anchoring. Referring to the experience of germany. Strictlyt follow very. We are in a recovery stage and italy has got a public debt a bit higher than what germany had. I still think that the Structural Reforms they need do not require big deficits. They require implementation. I still prefer to see more work on Structural Reforms rather than saying it might be easier. That was the point i was making. It you look at the Structural Reforms, it boils down to the problem italy has had before. Politics, it is mustering the support to push these reforms and have the dozens of Political Parties backing matteo renzi. Is he the guy that is going to push this through . If he doesnt, does italy have a chance . It is more likely that renzi then berlusconis government. Willingness to implement Structural Reforms. Renzi does have a fragmented majority behind him. However, it is also in the interest of the party. So renzi has to master the actually giving up implementing reforms. Institutional reform or structural reform . One presumably has to go handinhand with the other. Get the institutional reform done, stable base, economic reform. That is a very good point. Understandalways ,hat without new electoral law a proportional system would create a stalemate in the parliament. What you need for the new electoral law, you also need for the senate, a reform of the senate. The two are interlinked. To change the senate, you need constitutional reform. However, renzi does have the opportunity to push this through. Needse senate reform, he the support of berlusconi as well. It is always politics. Back to berlusconi. Never underestimate this guys power. He is one ofome, the richest people in the world but he lives like he is middleclass. He has inspired thousands to do the same. We sit down with one of Warren Buffetts faithful followers. Welcome back. You are watching the pulse. You are looking at live pictures coming out of athens, celebrating mayday today. The day of labor, the day of demonstration as it has become. The situation, relatively peaceful right now. Noisy but peaceful. Over in istanbul, we are getting reports of tear gas and plastic bullets being used as the turkish authorities clamped down on the center of the city. Here is manus cranny with your asset check. Ftse holding strong. A lot of europeans are closed. We will be closed necks monday. There is a couple of dimensions to play with when the markets come back in full. Saying, it isre sell and go away, that is something to be considered. China purchasing managers underwhelmed. The fed, they are happy with growth. In terms of the u. K. , there are a couple of big names driving the market. Chilcote, the only man that can turn the bskyb y into a ron burgundy story. Up four percent. Ealth management up at schroders. This is a big Management Company here in the u. K. Nicely. Doing quite the levels of earnings are up. We will talk about that story more with guy very shortly. In terms of the u. S. , it is going to be a pretty big data day. You get an initial jobless spending. Rsonal manus, thank you very much indeed. A as we had to break, just reminder, you can follow both of us on twitter. We are back in just a couple of minutes. Welcome back to the pulse live from bloombergs European Headquarters in london. I am Francine Lacqua and these are the Bloomberg Top headlines. Sony posted a net loss larger than forecast due to additional cost for the pc business. Sony is struggling to come up with new hit and demand for its traditional products but tvs declined. Manufacturing grew less than analysts estimated in april. Weakness in the worlds secondbiggest economy. Numbers above 50 signal expansion. The fed says it will continue to wind back stimulus as the u. S. Economy picks up pace. That puts it on track to bring qe to an end by the end of the year. Interest rates will be close to zero for what it calls a considerable time. The feds comments came after an official report said that u. S. Gdp barely grew in the first quarter. Feds decision, chief economist at markets. Com. What do you make of what the fed said last night . Steady as she goes. I dont think anybody didnt expect what we got. One of the points i want to mention here is that traditionally the fed has eight meetings a year. Saying, wee market saw what kind of activity it was yesterday, people are talking are we only going to have four real meetings when janet yellen has a press conference . Traditionally it has always been the week before and the week after the meeting was the blackout period. This blackout period is going to last less than 24 hours. She will make four speeches during the month of may before we get the minutes. It is going to be a situation where i think the only thing we saw in last nights minutes was that the economy is improving. We had a unanimous decision. Steady as she goes and we talk about steady. Important is it going to be, the next meeting . We have a press conference and we also have forecasts. As we saw with the gold ,elling off, the bond market sort of no real improvement. The key thing i am looking at and this is more from the european standpoint, yesterday when we got gdp numbers, we saw the euro selloff. This morning, it is 1. 3888. Of clientne a number seminars in Eastern Europe over the past six or eight weeks. Europe,see in eastern as much as eurodollar is going up, we are seeing hungary, poland, the czech republic, all of those being sold to buy the euro. Looking more away from the fed. What kind of dilemma is mr. Draghi going to have with the 1. 3875, heading toward 1. 39 . I would expect no change from the ecb. Going back to the fed, it is exactly what the market expected. We probably will not get even close to our first Interest Rate hike until the middle of next year. Bill, thank you so much for that. Guy, over to you for breaking news. We just had manufacturing data coming through from the united kingdom. This is april data. The data are much better than anticipated. 57 point tree was the number we were looking for. Cable continues to be welded. We are in touching distance of 1. 70. Nevertheless, a strong showing for sterling. Mortgage data, a little weaker than anticipated. That leads me to our next story. 22 ds Bank Delivering a rise in quarterly profit. Manus cranny has been digging through the numbers. What should i take away . Profit up 22 . We know the british economy is getting better. People are feeling stronger in terms of income. Costs are being cut. That is a blockbuster number. , we might are saying find it a bit tougher to earn good money on the money we are lending out. There is a beautiful line which opposed toloyds as chopping change at royal bank of scotland, they are running a simple, low risk business. They are ready to go back to regulators and say, we have done everything you asked us to do. Can we pay our dividends . The government now only owns 25 . If the numbers are right, lloyds could be offering you and i a 5 return. Not bad when you are getting deposits. If you have money on deposit in , the bank says we are slashing the rate by nearly 50 . See how the Mortgage Market works in the next few quarters. What they do is in the retail market. I think this ties up with the second