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tv   Countdown  Bloomberg  May 27, 2015 1:00am-3:01am EDT

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mark: arrest in zurich as part of an investigationion into fee for. -- fifa. anna: the british airways on her gets the green light from ireland for its takeover. the details that could boost the transatlantic network. mark: the data that strengthens the case behind higher interest rates. anna: greece and its creditors had to brussels as time runs short to secure a bailout ahead
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of a june payment. mark: david cameron will bring the focus home in today's queen's speech. the prime minister than mr's on a european tour to renegotiate britain's -- then embarks on a european tour to renegotiate britain's eu membership. welcome to "countdown." also coming up, an exclusive interview that you won't want to miss. we catch up with mario greco as he gets ready to roll out new strategic targets. that is at 7:30 london time. breaking news out of zurich, swiss police have arrested him in connection to fifa corruption
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allegations. hugo, good morning. what do we know? reporter: we know that three hotels that were suspected of being rated this morning, two already have been. plainclothes police in plainclothes cars. they emerged a few minutes later with a person who was identified and they put him in the backseat with his luggage -- [indiscernible] mark: hugo, it sounds like we're having slight audio problems, we will try to get back to you as soon as we can. just to reiterate, swiss police have begun arrests.
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the raid took place at the hotel which for years has been the gilded home away from home for fifa f --'s pampered executive committee. of course the corruption allegations reached their peak with the awarding of the next two world cups to qatar and russia. caroline: the member association dissenting on zurich. mark: he is up for his fifth tenure on friday and is a favorite to win that against al hussein of jordan. caroline: it is all to do with television rights and viewing,
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but at the same time there is so much corruption. mark: the stain of scandal has not left fifa since he was voted in in 1998. he was been a member since 1975. on a financial basis he has made fifa one of the strongest independent bodies in the world. caroline: is that why he is favorite? mark: there are so many reasons. one is that each member has an equal vote and because each member has a vote fifa can focus not just on the brazils but the smaller countries and sovereign countries. so a cayman island is as important as germany or brazil so awarding funds to those as well often and shores -- the incumbent is beneficial.
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beneficial to presidential voting. caroline: we will see if it does affect that residential election. yvonne man is in hong kong with a look at the asian markets. give us a sense -- been picking up the negative data. reporter: we did see a second date -- day of losses here and china. getting close to that 5000 mark. 2/10 of a percent right now. they're losing down the 6/10 of a percent right now, there are concerns of these ipos coming up
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in china. about two dozen happening from now that could be freezing some money out of these existing equities and we saw brokerages and tightening of rules on margin lending. at one point we saw sticks -- six stocks fall and four stocks rose. the u.s. data is looking much more positive than what we saw in the first quarter, everything from housing, manufacturing to consumer confidence higher than market expectations and talking about this outlook for the rate rise could be more likely now. the vice chairman of the fed also saying that when it comes to this rate rise it will be a slow one because of the weaker global growth that we see. in terms of korea, down 1.8% the most in 16 months, japan as
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well. this was in the meeting from april 30, when they pushed back that 2% inflation target areas what was going on in the boardroom? some members were saying they were worried that japan would not reach that 2% inflation by the fiscal year, one member said it was important to keep the two-year timeframe to change that mindset overall and they decided to push that back for six months. i want to end with the dollar-yen. that eight year high. caroline: give us a little bit of a sense if you can on the ftse group announcing chinese shares in emerging market indices, has there been any reaction in terms of liquidity and excitement? reporter: lots are talking about this obviously, they're trying
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to open the doors to global investors. at this point it is transitional and will ultimately add mainland shares to its indices. there will be two indices in total 14 cap stock and mid-cap shares. we want there to be a gradual process it will be a couple of years as they said the talking about the excitement of the rally more than doubling in the shanghai composite and some trying to get in on this action. caroline: thank you very much. mark: let's move over, great creditors and progress has been slow, no sign of a deal to release the bailout, greece needs to pay the imf in early june and hans nichols has more.
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hans: the exchange in athens was up 1% after falling about 3% monday. jan is varoufakis -- yanis varoufakis has promised to pay the 300 million euros due in june, but here is the hitch. yanis verify this says -- jan us borrow focus -- yanis varoufakis is trying to put to rest this myth that they would not pay. he transposed that with what is happening at the g7. technically greece is not on the agenda, clearly it will dominate and you're starting to hear that the u.s. may be pressing european counterparts on this matter according to a u.s. official who says that the
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consequences of any sort of unpredictability or issue in greece is very difficult to foresee and they are concerned about its effect on global growth and european growth. contrast that and he was talking about how a lot of the pain might be localized in greece, that it would be very disastrous but just for greece and on top of all of this, as though we didn't need anymore drama that commission resident yesterday gave on your interview and had some harsh words about jan us verify this -- yanis arafat this -- yanis varoufakis. at the same time he had kind words for mr. tsipras and said he is becoming increasingly sponsored will in discovering increasingly the magnitude of his task. more negative comments from this
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time unclear what this will do to the negotiating ross s but it does seem to add a little more drama. mark: -- negotiating process but it doesn't add a little more drama. hans: the other plan is to -- in swiss banks, that will be discussed here in the coming weeks yesterday they floated this idea of having a transaction tax at atms so that when you pull out 1000 euros you would get taxed on it or it what they want to do is funnel more purchases through visa and mastercard systems because that way you cannot avoid paying areas they have backed away from that idea of really putting the tax on atm withdrawals. i know you always deal in cash mark, but if you were to go to greece you can take out 1000
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euros without worrying about your atm fees. mark: relief. we will see later. caroline: the irish government has agreed to sell its 25% stake in aer lingus. the selloff comes as a mixture of cash and stocks. the listening and writing for this announcement for a long time. you are about to fly to dublin, give us a sense of why now the government has given us. >> it definitely has been weeks in the making with a lot of back-and-forth. you have to remember that island is going to have an election next year. the thing that seems to have pushed the deal over the line seems to be this question of conductivity. so i e.g. has offered the irish
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government some guarantees between heathrow and dublin and some other cities and ireland so that seems to have been the sticky wicket that has been negotiated. the government has endorsed it and the transport minister will take it to parliament this morning. caroline: the other big stakeholder is ryanair. what do we think will come from them? >> it will be interesting to see what ryanair wants to do. the timing of this is favorable for ig. ryanair has faced a lot of pushback in their own attempt by aer lingus, it is also faced pushback from competition authorities and ryanair has been
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very careful about what they have said. they will consider a deal when it comes to them. have to think they would look on this situation favorably and it just comes down to a question of price. caroline: what about the questions for willie walsh. we know what the government has been dissuaded, but why is it so crucial for the ceo of ig -- iag? >> it really secures their expansion on the transatlantic. british airways at heathrow is limited by the fact that heathrow doesn't have another runway. this allows them a real growth opportunity. it also validated the vision of the airline, he has been working very hard over the past few years.
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now aer lingus. pulling all these things together and aer lingus is where he actually started out as a pilot areas in some ways you have to think that he is returning to the company he started out with an there is some sense of validation about that. mark: now the top stories on bloomberg this hour stanley fischer said they will consider global growth. they could increased borrowing costs more gradually should the world economy falter. the way it -- fed will way how raising rates will affect other nations. general electric has announced stocks with -- according to people familiar with the matter. no deal has been reached yet and the discussion may still fall
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apart. one says that g.e. post to come to a deal by the end of the quarter. he promises his government will do more than argue about europe as he lays down a legislative program august on tax cuts including the queen's speech which will be delivered today. business deregulation and nonprofit housing associations to sell homes. caroline: you can join the conversation on twitter. trending right now is that very queen's speech mark was just talking about. the number one trend is the fifa news. that there have been arrests maidens iraq as fifa -- made in zurich as fifa officials to send on zurich. mark: we will give you more
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details as they become available. back in two. ♪
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caroline: let's focus on developments on the greek story. officials from the southern european country plan to travel to brussels to meet with creditors later today and both sides will be unaware that the clock is ticking. let's discuss this with our
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guest who is the fx strategist. your base case scenario, a deal will be done, do you believe that, what do you see on the impact on the euro as well? guest: what is important now is that greece is starting to run out of cash. the pressure starting to come on for a resolution to be put together. the payments we have over june are in four separate branches. caroline: quite a lot. guest: a big number in total but lots of small little bits. the second one will be a struggle and it also means the pressure will be a slow grinding pressure. it seems that the pressure will be on for a little bit longer. in terms of what that means for the euro, our focus for the euro-dollar is more on the u.s. story as a driver. mark: janet yellen at the end of
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last week, has she given the dollar a much-needed boost? guest: not only a much-needed boost but also the data has started to show that the slowdown was temporary. we have a combination from the fed saying the amount of capacity is declining and a eurozone economy looking to be on a strong enough footing to give the fed the competence to raise -- confidence to raise rates. they have had to come back and put on the long dollar trade. another reason we have seen quite an aggressive move. caroline: yesterday, orders of durable goods better than expected, new homes sales, better. what are the next hefty data we should keep an eye on? guest: the rest of this week is quite quiet. the key thing will be next weekend.
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we will have the usual run ahead of that we have the isn and we focus on employment components and then the end of the week payroll. mark: when will the fed raise rates? are you a september man? guest: we are calling for september. caroline: in terms of what this does for the rest of the central bank policies they are not the only hair and a lot of other -- pair, and a lot of other countries are tried to take it away but you are not expecting immediate changes. guest: the bank of china be conscious about saying anything that might cause the cap to strengthen. it continues to be a very cautious time for the bank of canada. where we think there is room for the market to bring forward expectations is the u.k. quite bullish on sterling
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because the market has pushed back the likelihood. around the middle of next year. mark: there doesn't seem to be any concern now about the referendum whatever it takes place, whether a year or two years. when you expect pound to reflect referendum concerns. guest: what we are seeing at the moment is that positive surprise were the conservatives adding the majority is outweighing the negative sentiment that they might be around. as we get closer to the events talking within six months not until it comes on investor radar. as we saw with the general election that even though we knew it would be a risk event the markets didn't focus on it until it was out in front of them. caroline: the markets not really focusing on a rate rise. do you think it will be pre-u.s. or after the u.s.? guest: we think the u.s. will come first and the bank of england will raise rates q1 next
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year. mark: you are expecting the new zealand dollar rebound further? what is the rationale? guest: one of our favorite trends at the moment is aussie-kiwi. it has failed to break above key technical levels. the market hasn't turned to go bearish on the kiwi and it has become too bullish on australia. room for the rba to cut. it favors aussie-kiwi lower. caroline: the key pair to be looking at, dollar-yen. we've seen the yen really starting to weaken significantly. a seven-year low. you believe that will be the trajectory? guest: long dollar-yen is one of our favorite ways of playing the long dollar trade. they have rebuilt some of their euro short positions but
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visioning in dollar-yen is still very light. investors haven't really been focused on it. caroline: what you think that is? inflation data has been so slow compared to what the japanese central bank wanted? guest: the bank of japan surprise the markets last october and have not shown any enthusiasm yet. mark: are they lulling us into a false sense of security? guest: we think they could do more. they might have to change policy dramatically. they're coming to the limits of qe. i target on the monetary base to a target on bond yields. that will signal to the market that they are fully determined to reach that 2% inflation target, doing all they can match a drive it higher in dollar-you. -- dollar-yen. mark: who will reach the bottom first? the ecb or that boj? guest: we are more likely to get
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surprise from the bank of japan. they might have to do more to exchange the way they conduct their policy. the ecb's course is pretty much set. what will be important is the eurozone data. that leads to higher inflation expectations and a lower euro. slightly contradictory to how we typically think of good data. in the case of the euro, when the central bank is doing you a -- qe it should mean higher inflation expectations. we see euro parity up by the end of the year. mark: the fx strategist at bnp paribas. the bart chart a little bit early today. stay tuned. ♪
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caroline: welcome back to "countdown." time for a look at the foreign exchange markets. let's have a look dollar strength. we were talking about bnp paribas, and we are starting to see a little bit of a fall down in the dollar index. yesterday surge, up 1.3%. all of this is surrounding comments that came late on trade from the united states on friday. janet yellen saying, this year, we will start to raise rates.
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suddenly, all the other pairs versus the dollar are starting to weaken. today, just off by 2/10 of 1%. the japanese yen is want to keep an eye out for, still keeping that level. interesting comments coming out of rbc earlier today. they were saying look loitering is intense at 123. as we are hearing, bnp paribas feeling that the bank of japan could surprise, us once again could add to stimulus,, could start focusing on bond yields rather than the inflation data. finally, we could start to see another jerk in terms of yen weakening, dollar strengthening. keep a night out for the japanese yen. meanwhile, the euro has been weakening, now just up about 3/10 of 1% this morning. we are looking at greece once again. they are very much and focused. it we've got a meeting in
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brussels, the creditors, and greek officials -- notably, greece is likely to hijack the agenda in dresden. we are getting the g-7 meeting. we've got officials from the biggest economies, germany france, the u.s., the ecb, imf, eu, all the creditors that matter at the g-7. of course, greece is going to be front and center on their minds of what happens when it comes to managing to get a bailout agreed , money to greece so they can start paying off imf payments 1.6 billion euros coming due in june. currently, the euro, running up against the dollar today, but we are still at 1.09. back to you. mark: time for today's bart chart. greek assets -- from chumps to chaps. shares in the benchmark greece
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index raising 1% on tuesday after falling monday. the last month has seen a bit of a turnaround for greek stocks since the asc reached that as -- since the ase reached -- [indiscernible] things look very different over the last three months. since every 26th, that is the red circle right there, the ase index has dropped by 9%. that is the second worst performer among global equity benchmarks out of the 93 we track at bloomberg after ukraine's benchmark, which has sunk by a 11% over the last six months. the green circle, the ase is the
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worst performing global benchmark, closely followed by kazakhstan's stock exchange index. if you go back to the far left hand corner of the chart, the ase's bottom of the global pile once again with a 31% decline. the bond market is telling a similar story. the bottom chart is the bloomberg's greece sovereign bond index. it is a gauge of greek government bonds. the yellow circle, the index has returned 6% beating all other bloomberg sovereign world bond indices. every other global sovereign bond market has dropped. we are talking about the price, of course, not the yield. the high on may the first -- the greek bond market jumped as much as 27%. things look very different over the last several months.
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this index has dropped by 14% the worst performer among bloomberg's world sovereign bond indices. six months, same story. the pink circle through the end of this chart, following by 16%, the worst performing global sovereign bond index. if you go to the far left hand corner of the bottom chart the sovereign bond index has sunk by 20%, the worst performer in that world in that time. no other national sovereign index has delivered negative returns. there you have it, proves that timing is everything when it comes to investing. greek assets have fared very differently over the last month compared to the previous 3, 6 and 12 months. caroline: thank you. let's check on some of our other top stories. global iron ore demand will
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contract over the 2020's has steel consumption peaks in china. analysts said the long run estimate was cut to $55 per metric ton from $81. the world's major mining companies added for their cheap supply. fed chair janet yellen plans to skip this years of gab -- this year's gathering of economists at jackson hole. the central bank chief will still participate from time to time in the future as part of her speech schedule. british airways parent iag has won backing from the irish government to proceed with its takeover of aer lingus. the move is set to enlarge the airline group and bolster its network. the deal comes three months after ireland rejected a build -- a bid from iag. mark: for sports fans, the
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french open his taking place this week but the grand slam faces the big challenge. the roland garros stadium where it takes place urgently needs to be extended to catch up with rifles or risk moving away from the parasite it has occupied for the best part of 29 years. >> rafael midol is a master on clay. this year, another battle is taking place off the court. roland garros has fallen behind wimbledon, the u.s. open, and the australian open. it is not the smallest of the four grand slams and will soon be the only one without a roof on central court. >> we do need this development. we anticipate increased sponsorship revenue, increased tickets, given we have night sessions.
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we want to be the nicest tennis place in the world. >> the $400 million project will accommodate the next 100,000 spectators, but it has been delayed for more than five years. the problem is not about the money but the tiny space available. the tennis federation has decided to stay in central paris and extend into the historical botanical gardens next door. that has a lot of people upset. >>i love tennis. it's my sport but old parisians need these gardens. we can't choose between the two. it's bad politics. >> the opponents have proposed an alternative plan, putting roland garros extension on a platform above the highway. >> this highway solution is the least worst solution if you want to stay in paris. a brave decision would be, let's go on to paris.
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-- out of paris. >> the tournament director is still optimistic. >> these are the famous, historical greenhouses. what we are going to do in the garden is going to be very nice, good for the city, good for neighbors, as well. >> the question is, will rafael nadal still be around to play there? carly karen, bloomberg news paris. caroline: you can join the conversation on twitter. follow mark barton @markbart ontv. number one trending, it's another sport. fifa. in reality, we have seen fifa having people within zurich being arrested as we see officials arrive for theidential elections, all related to corruption charges. mark: corruption scandals have swirled around fifa since sepp
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blatter was elected as president. it begs the question, what will happen friday? the brother of the king of jordan, he is favored to change things. what does it mean for the qatar world cup? what does it mean for the russian world cup? so many questions need to be answered in the next 24-48 hours. i will be there in zurich. i will be jetting off. it's going to be an exciting 48 hours for the world of football. oil recently ending its biggest upward movement on record. we will ask our next guest what opec will be looking to achieve when it meets next week. stay with us. ♪
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mark: the top stories on bloomberg this hour, stanley fischer says policymakers will consider global growth as they begin to raise interest rates. the federal reserve vice chairman also said they could increase borrowing costs more gradually should the world economy falter. fisher added the fed will weigh how to raise rates will affect other nations. general electric is in talks with element financial to sell assets in the $9 billion vehicle's fleet management business. that is according to people familiar with the matter. no deal has been reached with
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element, and the discussions may still fall apart. one person said ge hopes to come to terms on the sale of the operation by the end of the quarter. u.k. prime minister cameron will attempt to reassure voters that his government will do more than just renegotiate his country's relationship with the eu as he sets only a domestic legislative program focused on task -- tax cuts did the queen's speech will feature draft laws guaranteeing cuts in income tax promising his nasty regulation. caroline: let's talk oil with a look ahead to next week's opec meeting. the 12-country producer group will gather against the backdrop of a stall in oils recovery from six-year lows earlier. prices have hovered around $60 a barrel amid speculation that a global glut will persist, as rising prices spurred the u.s.
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production. let's talk to an independent oil analyst. very nice to have you with us. give us a sense of what we are expecting from the opec meeting. in large part, saudi arabia is going to have its way once again, it is assumed. >> i think so. opec this time is going to be different in the sense there is not much to do, and there is much action to be taken. during opec, their last meeting, opec decided that it would relinquish its role as a producer. therefore, the process -- the prices came down to $45 a barrel. today the prices are around $60, $62. opec at the moment is happy satisfied. caroline: prices are starting to recover. kamel: they are not entirely happy, but they are at $62 --
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better than $45. therefore, since the market took the lead, not opec, in organizing this, they don't mind it. they are ok. they are nearly satisfied. they want $100. mark: will they get $100? kamel: not really. i think $100, after three or four years, but not today. mark: shale producers in the u.s. will be back in the game as oil keeps creeping higher. kamel: absolutely. this is the concern. the question is, will this -- will they join opec in cutting supply?a higher price is good
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for opec. every dollar increase in oil prices, that means an increase in production of shale oil or encouraging shale oil to come back again. caroline: there are some countries that have been feeling the pain for more particularly at $60 bills. venezuela, nigeria. talk to us about countries that are trying to push for a curtailing in production. kamel: last november, we saw a clear split between the majority of opec and the minority of opec. the majority are venezuela iran iraq. they are asking for $100 a barrel. the gcc, the arab countries saudi arabia kuwait, they don't really want $100 at the moment but they want to have a maximum share of the market. with the arrival of shale oil,
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it has affected them. that is not to say we won't hit $70. there is no point in producing cheap oil when my annual budgetary number is in the region of $60 or $70. what is the point of having cheap oil but my fiscal budget is asking for $60? mark: your country kuwait is part of opec. how is it affected by the current oil price? kamel: we will not have as much surplus dollars as we used to have, $40 billion, $50 billion,
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but its ok so far. we can manage for the next two or three years those levels. after that, i think we have to do something. caroline: is it prompting domestication? mark: we've been talking about that since the early 1960's but it has never happened. you have the surplus is coming. what is the point? as long as you have a surplus we are not in a hard need to do something. caroline: what is that point? kamel: in terms of the price? caroline: in terms of when you would prompt diversification -- kamel: we would have to cut down on subsidies, and we would have to increase the prices of oil, the domestic oil, gasoline prices electricity prices.
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then we feel the real crunch. something must be done in terms of cutting costs. as we said to cut down the magic number of $70, we have to come down to $60 a barrel, but again, if we are forecasting that $100 will be there in about two to three years i don't think we have to do much. caroline: so wonderful having you on, thank you very much. mark: some more breaking news on the story, this fifa story, and the swiss federal office of justice says six officials have been detained, six soccer officials detained, pending extradition. they were alleged to be part in payments of more than $100 million. the federal office of justice believes suspects got latin american media rights in return. that is the breaking news right
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now. bloomberg has been running a story that u.s. prosecutors have charged at least 10 international soccer officials in an investigation of corruption, including vote rigging in the selection of host countries for world cup tournaments. that is according to a person familiar with the matter. swiss police raided this hotel after the u.s. justice department accused senior officials at the far, which is soccer's ruling body, of racketeering, wire fraud, and tax evasion. that is according to this person. sepp blatter will be running for reelection on friday. he hasn't been charged according to this person who has asked not to be identified discussing a private matter. this story is an ongoing developing story. caroline: we are going to be on top of that story. we will be sending you to zurich tomorrow to get to that hotel and keep pushing forward on that
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agenda. coming up, we will be looking at our favorite stories, including snapchat's plan for world domination. ♪
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caroline: welcome back. we are just over an hour from the start of most european trading, but let's check in on what our top choices are from
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bloomberg's digital output. i am all about snapchat. i am all about this fantastic very long feature. you've got to dig into this. it's going to be a good read with a couple of coffee over the better part of 20 minutes, but it is all about evan spiegel. he hates doing interviews. he admits it. he is something -- on a happy juice. he has a startup with 330 employees, 100 million people using it. it's the youth, the millenials. he's turning snapchat into what they call a proper business. they are going to advertisers and saying 60% of 13 to 40-year-olds in the u.s. use snapchat. 2 billion videos per day. they are going to want to start going via snapchat. how can you start driving this company to be worth even more?
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brad stone and sarah frier doing an amazing bit of investigative analysis. i'm getting a great interview. mark: on a lighter note, the french open is taking place in paris. serena williams and raphael myrdal both won -- rafael nadal both won yesterday. serena williams mistimed a high law. it fell on her shoulder. she let out this big laugh. she lost the next two games, but after that, she rattled off the next six games. caroline: who was she playing? mark: andrea hallett cove. she won 6-2 6-3. nadal also moved into the second round yesterday. he has won it nine times. caroline: king of clay. mark: might he not win it this
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year?that is what some are suggesting. "countdown" continues in the next hour. ♪ stay with us.
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mark: at least 10 international football officials have been charged by the u.s. in investigation of corruption. we bring you the latest two days ahead of the world football's presidential election. caroline: iag gets the green light from ireland for its $1.5 billion takeover of aer lingus. we bring you the details behind the deal that could boost the networks -- the transatlantic network. mark: american data strengthens the case for higher interest rates. we are live from hong kong. caroline: greece and its creditors had to brussels as time run shorts to secure a bailout ahead of a june imf payment. mark: david cameron will bring
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the focus home in today's queen speech, as the u.k. parliament opens. the prime minister will then embark on a european tour to renegotiate britain's eu membership. welcome to "countdown." i am mark barton. caroline: i am caroline hyde. also coming up an exclusive interview you will not want to miss. francine lacqua will catch up with chief executive mario greco as he gets ready to roll out new strategic targets. stay tuned. that is at 7:30. mark: u.s. prosecutors have charged 10 international football officials in an investigation of corruption. it includes the vote rigging in the selection of host countries for the world cup tournament according to people familiar with the matter. let's get to perry hand-check who broke this. what we know so far?
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>> so far, we know as she felt officials were tucked up in bed at the hotel in zurich, plainclothes detectives from swiss police entered the hotel and arrested officials. what we also know is it forms part of a wider investigation dating back several years in new york by the now attorney general loretta lynch's office about corruption at fifa and soccer bodies around the world. mark: do we have any idea about who has been arrested? tariq: we can report three names of senior football officials who we have found out about thanks to our contacts with the justice department in the united states.
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there are several more, but three people we know who have been charged will include jeffrey webb. he is a cayman island fifa vice president and has been talked about by for president -- fifa sepp blatter as a future president, as has a uruguayan. business executive member of fifa's top body. he was replaced in march. of course, jack warner he is a former fifa vice president. he was implicated in numerous allegations of skulduggery dating back to the 1990's. he quit in 2011 amid an investigation into vote-buying before the last fifa presidential election. mark: this is just the latest in
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a whole series of investigations into embezzlement andry during blatter's tenure. what a bombshell, just a couple days before the presidential election. tariq: you mentioned the drumbeat of investigations and criticism, but this is unprecedented. this is a joint operation by the swiss authorities in the u.s. actually going into this hotel where fifa's gilded class have slept and enjoyed hospitality for years. they have been impervious to investigation in the past. of course, we discussed allegations of corruption, but if you think about it, nothing has really happened. this is a really big deal. as you mentioned, sepp blatter was going for, is going for reelection as president on friday. he's up against one challenger.
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he remains the overwhelming favorite. what we don't know is what the status of that vote will be. can an election take place against a backdrop of senior football officials being dragged out of their beds and taken to a swiss police station? mark: of course, it all happens amid vote-rigging allegations in the selection of host countries for the world cup tournaments in 2018 and 2022. does this have ramifications, tariq: for those tournaments in russia and qatar? tariq: we are going to have to wait and see. we will actually have to see the full details of the indictment coming from the united states. if it does relate in any way to the awarding of those cups.
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they were pretty controversial at the time in 2010, and it remains of. there may be some doubt as to what the next steps are. mark: thanks for joining us today. we will try to chat to you later as the story unfolds. caroline: let's look at corporate news and bring you breaking news. the airline has just reported its full-year earnings. passengers climb in some 18%. revenue, also up 21%. looking at the reported net profit, doubling. 109% growth if you are looking at the reported net profit. underlying net profit, up 67%. we get the first interview of the morning with wizz air's chief joseph bernardi. where is the most growth when you are looking at your numbers? what is driving this profitability?
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joseph: our business is focused on establishing operations in a dozen countries. we flight a network of 400 routes. our growth has been very balanced. we have been growing the business and every single market except for ukraine. you can understand the situation. it is the focus on europe across the board. mark: how are you coping with the likes of ryanair and easyjet? we interviewed their chief executive. how are you tackling the challenge faced by those two airlines who are expanding into new markets by the month? jozsef: competition is a fact of life. consumers benefit from competition because fares get lower. we benefit from competition, too. competition puts us on our toes and we have to sharpen ourselves and get better every day. we are an ultra-local carrier
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and we are focused on delivering the business at the lowest possible cost. we have been successful in achieving that. that is our best defense when it comes to competition, and it's our best offense when it comes to stimulating the market. caroline: you've potentially taken a leaf out of ryanair and easyjet's book in the sense you have a plus fair. you are making it a nicer experience to travel but still travel on a budget. have you looked at easyjet and ryan air to see if people want allocated seating, check their bags in earlier, etc.? jozsef: i think we have to recognize the change in consumer expectations. the market condition is different from where it was five years ago. five years ago, it was about democratizing. today, low fares are a given to the market. we need to do better on other
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fronts and satisfy customers and help them achieve their aspirations. this is what we are trying to do. we are very focused on delivering the lowest fares to the market. it's the most important issue to our customers. at the same time, there are more sophisticated travel needs we need to meet. this is what we are trying to achieve. mark: how have you welcomed the decline in the price of oil? of course, it has rebounded since january, but from the highs of last year to the lows of this year, a decline of almost 60%. how has that fed through your business? jozsef: we have to recognize that being a local airline, we don't fully benefit from the lower fuel costs given the euro-dollar exchange rate. also, unlike in the u.s., the european airline industry is not as consolidated.
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airlines tend to compete at a cost-benefit. we are seeing effectively a lower input cost just feeding through to lower fares but we are not expecting meaningful financial result. so far, we are not seeing it. caroline: you talk about consolidation. we have just seen aer lingus get a thumbs up from the irish government when it comes to aig -- iag buying the company. jozsef: i think consolidation is something that will continue to happen in europe. it is not yet a fully consolidated industry compared to other consolidations. consolidation will take place in different forms.
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central europe gives us plenty of growth opportunities going forward, and this is what we like to do. at the same time there might be acquisitions like the aer lingus case. we have seen some felons go out of business. a small one in lithuania just went out of business. i think you will see those kinds of consolidation forms happening mark:. you mentioned ukraine. i know you've been reorganizing your ukrainian operations. how have you gone about that? what is your presence like in ukraine, and how is business? jozsef: actually, we are happy with our success in the ukraine, but at the same time we need to recognize that certain measures have been taken by the ukrainian government, imposing foreign exchange restrictions on the business and as a result, we had to reorganize ourselves.
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now we operate through the main european airline that is not subject to those restrictions. we remain committed to the market in ukraine. we adjusted capacity to the new demand. we've tried to buy dress these burdens. caroline: thank you for spending your morning with us, chief executive of his error. mark: manus is in hong kong with a look at the asian markets. tell us what is going on. >> good morning. asian stocks are headed to a second day of losses, not looking too good. a lot of volatility in the china markets, in particular. for the most part, there is some concern about the ipos coming out. 23 in total starting in early june could potentially be freezing up quite a bit of numbers -- money from existing equities, about $790 billion in terms of liquidity that could be
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lowered away. brokerages are tightening them were -- the rules on margins in london. shanghai composite up about 7/10 of one thing percent. the hang seng, down three quarters of 1%. a lot of this is coming from what we saw in the u.s. overnight. we saw some upbeat u.s. data coming out when it came from housing, manufacturing, consumer confidence, all beating the forecast, boosting the likelihood that this rate hike could possibly be happening this year. said vice chairman stanley fischer, also talking about this -- the rate hike is going to be a gradual one amid this weaker global growth we have seen. equities sometimes happen the opposite way, which is what we saw in the u.s. overnight. we are starting to see this in korea. the worst fall in the last 16 months -- and the nikkei to 25,
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also up about 2/10 of 1%. we did get those boj minutes come out today. this is from the april 30 meeting, the time they push the back that 2% inflation target. what was going on in that room? some members said they didn't expect inflation to be reached by april 2016. that is why they decided they needed to delay it. one member said, hold on a second. we need to keep this timeframe because we need to change the deflationary mindset, but overall, they decided to vote otherwise and delay it for another six months for that inflation target. i do want to talk about the dollar. it is strengthening quite a bit against all 16 major peers. the dollar, dominating the yen near that eight-year high. let's see what we've got. 123.31. i also want to talk about the run in the -- renminbi.
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we did see that the pboc actually lowered that reference rate to the load weakest level -- to the weakest level in a month. we have seen the chinese currency fall for the past four days, but overall, strengthening quite a bit against most of its peers, including its trading partners and the u.s. dollar. mark: thanks a lot. we are getting some breaking news from zurich from the federal office of justice in switzerland. just to confirm, six soccer officials have been arrested in zurich today according to the fo j. u.s. authorities suspect them of having received bribes totaling in the u.s. dollar millions of $100 million.
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the six soccer functionaries were arrested in zurich by these are a capitol police. the arrest warrants were issued on a request by the u.s. authorities. the attorneys office for the east district of new york is investigating these individuals on the suspicion of accepting bribes and kickbacks between the early 1990's and the present day. the bribery suspects who are represented as sports media and sports promotions firms are alleged to be involved in schemes to make payments to the soccer functionaries, delegates of fifa which is the ruling body, and other functionaries of fifa son organization, totaling more than $100 million. in return, it is believed they received a media marketing and sponsorship rights in connection with soccer tournaments in latin america. according to the u.s. request, these crimes were agreed and prepared in the u.s..
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payments were carried out via u.s. banks. that is the news coming out of zurich. police will question the detainees today on behalf of the foj regarding the u.s. request for their arrest. that is the latest news out of zurich. caroline: what happens to the presidential election, and what happens to the sponsors? we will bring you the latest on that story. let's turn our attention back to greece, always in the headlines. officials plan to meet with their creditors in brussels today. progress has been slow in recent talks with no sign of a deal to release the bailout funds greece needs to pay the imf in june. hans nichols has more. it's not looking promising for greece or its creditors. hans: that was the view on monday. yesterday, athens was up a little bit. here is maybe one reason why.
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the finance minister promised they would pay the initial june 5 payment to the imf of 300 million euros. here is the issue. it is a circular promise. he said they would pay because of course they would have a deal, which is to say, the promise to pay is contingent on a deal, and we don't have any firm evidence they are any closer to a deal than they were two weeks ago, three weeks ago, three months ago. you even heard more pessimism out there, especially from the estonian central banker. everybody is going to be descending on dresden in a few hours. you also have central bankers there.christine lagarde will be attending ahead of the visit by u.s. secretary of treasury jack lew. some u.s. officials are saying lew may pressure his counterparts to act more swiftly. lew is concerned about the unpredictability of this. he said there might be consequences for the entire global economy. caroline, one final note on this
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-- just as if there couldn't be any more drama in this saga, you have jean-claude juncker talking about jan us varoufakis to he says "he is not helping the process. that is a quote. he did have kind words for alexis tsipras, but it seems mr. juncker and mr. varoufakis are not on the same page. caroline: the clock is ticking when it comes to physical cash for greece. how are they increasing the revenues? june 5 is when they've got to pay the imf that first installment. hans: one proposal that was floated -- we had two proposals floated yesterday out of the greek finance ministry -- one is the idea of a transaction tax on atms. they want to prevent people from paying cash to funnel people into the credit card system. after floating that, they drew
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that back. there is another proposal out there to have a 15% tax on foreign deposits by greek nationals. this is to get after money stashed away in a swiss bank. they are not necessarily walking away from that just yet. the challenge with that is it would take a while to put into effect. it won't lead to immediate revenues, and it's an immediate cash crunch they face. caroline? caroline: thank you very much, hans nichols. mark: join the conversation on twitter. trending is fifa. that is a big story on twitter. that is the big story on bloomberg. that is where you'll find us @carolinehydetv. caroline: ireland has given the green light to iag's takeover of aer lingus. we are live in dublin after this short break. ♪
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mark: continuing to get breaking
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news from zurich on this fifa story. just to reiterate the headlines we've gotten from zurich, the six soccer functionaries who were arrested today in zurich by the zurich police -- arrest warrants were issued on the request of u.s. authorities. the attorneys office for the eastern district of new york is -- is investigating these individuals on suspicion of accepting bribes and kickbacks in the early 1990's. the bribery suspects were represented as sports media and boards firms and are alleged to be involved in schemes to make payments to the soccer functionaries, delegates of fifa , totaling more than $100 million. in return, it is believed they received a media marketing and sponsorship rights in connection with soccer tournaments in latin america, according to the u.s. request. payments were carried out via u.s. banks.
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that is the statement we have received today from swiss authorities, the federal office of justice. caroline: we will stay on that breaking story. at the irish government has agreed to sell a 25% stake in aer lingus to iag. 1.4 billion euro selloff comes as an extra cash in stocks. we are in dublin with the latest. what did iag give ireland that suddenly prompted this decision to approve the sale? >> this has been dragging on for over six months at this point. ireland is an island nation. therefore, connectivity is an important part of our strategy. when iag first made a bid to guarantee the routes between london and dublin for five years we yesterday learned that they had increased that guarantee to seven years or at least seven years. they also gave the government
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power over the heathrow slots. that gave the government to say, -- government the comfort to say, we are ok with this deal. caroline: the next six months what happens? dar thea:a: some significant news this morning. there are six or seven members of the labour party, they have always been against it, but we learned they are going to back the deal. that is a significant development. willy welch is going to be in town today. he has a press conference at 11:00 a.m. the third thing is probably the most important thing. ryanair has a 30% stake, and we need to know what they are going to do. we have yet to hear it definitively from ryanair. caroline: thank you very much. mark: we've got an exclusive live interview with the thought of insurance giant generality.
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stay with us for that. ♪
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[beeping] ooo come on everybody, i think this is my grandson. [lip syncing] ♪little girl you look so lonesome oh my goodness. ♪i see you are feeling blue ♪come on over to my place ♪hey girl ♪we're having a party happy birthday, grandma! ♪we'll be swinging
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♪dancing and singing ♪baby come on over tonight caroline: welcome back to "countdown." time for look at the foreign exchange market. let's have a quick look at the dollar. it is all about dollar strength. yesterday, the dollar moved by the most in two months, up 1.3%. that is the biggest spike in two months for the u.s. dollar. you know the reasons why. data coming in stronger than expected -- capital goods spending, new home sales. at on top what we heard from janet yellen on friday, that she sees a rate hike this year. suddenly, that rejuvenates that desire it to buy into the dollar, up 1.3%. coming off it a little bit
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today, off 4/10 of 1%, but i want to focus in on the yen. we saw the japanese yen weekend significantly yesterday. this is the dollar moving higher, the yen moving lower. it's just about flat today, but we are close to that 123 point. this is what rbc was saying. "it is loitering with intent around 123." many feel this is a wave of things to come. we are only going to see the yen continue to weaken. if you're looking at technicals, the yen dropping below a 25-year trend of 123. when it hit that mark, we saw it breached a line that you can paint between the previous lows in the 1990's. sure, the relative strength index, which signals potentially over buying, that is showing overselling at the moment in the yen. they feel it's gotten a little bit carried away, but this shows
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the strength of the momentum. ignore the oversold signs. you get in, and continue to sell the yen. they feel this is a trajectory of things to come, the yen continuing to weekend. we have bnp paribas saying that they believe the yen could breach and continue to weaken on the back of perhaps a boj surprise. mark: europe's third-biggest insurance group generali is unveiling a new set of strategic targets. let's get to francine who is with a very special guest. good morning, francine. francine: good morning to you, mark. i am delighted to say we are welcoming the ceo of generali mario greco, after unveiling his new four-year plan. thank you so much for speaking to bloomberg. give me a sense first of all of how difficult it was for you to come up with this plan. you laid out a four-year plan. you have a solvency ratio.
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you want to be a leader in retail. mario: the plan we have set is an ambitious one. it's a continuation of the journey we started three years ago, less three years ago, to reestablish generali as a market leader. we think with these targets and in these efforts to generate cash and distribute dividends to shareholders, with investments also, we will accumulate -- [indiscernible] francine: can you break it down further? [laughter] mario: we would not like to break it down further, except we said we would distribute more than $5 billion in the next four years. this comes out of the fact we committed ourselves to generate more net cash flow over the next three years.
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we demonstrated today that our capital position is solid as we well knew, and we are glad to report our capital position is solid. it's adequate. it's something that does not worry us at all. it is all about generating free cash flow and distributing this cash flow to shareholders. francine: what are your targets for operating income? mario: nonoperating income, we set a target of 13% return on equity. we maintained this. we think it's the proper target always above 13% return on income. we are in extreme market conditions. we think that it is a serious challenge to maintain year after year 13% return on equity
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particularly in a context where, over the next four years, we increase capital. capitalization of the company. the nominal operating income will have to grow in order to keep the ratio stable. francine: you also send you are not going to go for acquisitions at the moment or nothing substantial nothing big, as far as i know. how will you take on elian's -- allianz? mario: we think the franchise we have today is extremely powerful. we have over 70 million customers worldwide. almost one citizen of europe out of four is a sick -- is a customer of mario: -- of generali. we don't need acquisitions.
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we need to investigate we need to work on our services and quality and our brand. we want the customers to have a much higher reputation of what generale can give them -- what generali can give them. we don't need an acquisition. we think that this plan is very solid. your share price francine: didn't grow as much as the overall insurance european index. up 4% from the beginning of the year. the overall index was up 16%. why do you think that is and is this addressing concerns investors have? mario: yeah, we saw that. i think partially this was a consequence of the capital news we gave them in march. today, we are reporting on a much more stable and serious set of numbers.
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that can change the perspective of the markets on us. the other thing i would like to say, frankly, we don't work for the share price. we work for medium-term development and sustainable growth of the company. i think this is what we did over the past three years, and we will continue this journey in making generali bigger and stronger. francine: can i ask you about the investment strategy at generali? we have seen uncharted territory with qe, depressed yields. how is the environment going to be going forward? mario: there are no easy solutions. people are doing what everybody else is doing. they are very conservative these days. the business has to change and allow investment people to take -- make reasonable investments. we are even taking gains now.
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for some specific asset classes it is time to take some gains and rebalance the performance of these asset classes. there is no magical solution. we are much more working on the business basis and restructuring the business basis. that will take a little bit of weight out of the investment piece. francine: the g7 meets today and the next few days. they are going to talk about greece. how worried are you about a possible default or exit of greece? mario: we think that an exit or default of greece would not be good. it would not be good for greece first. we don't think that this is a nice outcome. we understand that the situation is tight. we think the markets have taken a view of greece since many
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months ago. we don't see anything unexpected but europe has to step up and lead a solution for this issue. it is time greece sees the light at the end of the tunnel. it has been very tough for greece to walk through this situation. francine: thank you so much for joining us this morning on bloomberg tv. on going to you, but that was the ceo of -- i'm going to hand it back to you, but that was the ceo of generali. caroline: let's turn our attention towards the queen's speech that will be delivered today during the state opening of parliament following david cameron's election victory earlier this month. joining us is here at o'donnell. what is the significance of this speech? >> this is a chance for the
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brand-new conservative government to send out its mission statement. these are the big priorities they will have over the next five years. we've seen manifestoes spelled out and then debated in parliament. mark: what are likely to be the most controversial? svenja: initially, one of the most controversial is the euro referendum bill. labor has dropped its opposition to it. we can expect some kind of statement on that. cameron is going to try to ban taxes on pictures. he talked about setting no tax areas on key areas in stone. another big issue is the housing bill. he mentioned in the manifesto this idea of extending the right to buy, potentially forcing
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housing associations to sell properties they own to their tenants under certain conditions . we are likely to hear that. also, cutting red tape, which brings us to the eu referendum. caroline: give us a sense of the difficulty in getting these promises through. svenja: the main challenge is timing. we may get something on that. we may get some hand at the political will to bring it forward. i think there is pretty broad backing on that. essentially they want a vote, and it is how that is delivered that is going to be more significant. on the housing bill, there is going to be opposition from labor. this is seen as potentially reducing the stock of social housing. these pledges haven't always been met.
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caroline: a monumental time, as ever. thank you very much. mark: join the conversation on twitter. let us know what you are following. find us @markbartontv. u.s. prosecutors have charged at least 10 international soccer officials in an investigation of corruption, including vote-rigging in the selection of countries for world cup tournaments. swiss police raided a zurich code tell after the u.s. justice department accused senior officials at fifa of racketeering, money laundering wire fraud, and tax evasion. caroline: fifa won't be making any more comments. mark: up next, greek assets, from chumps to champs. stay tuned. ♪
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mark: time for today's bart
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chart did greek assets -- from chumps to chance. shares in the greek benchmark the asp index, rising 1% on tuesday after falling 3.1% on monday. last month has seen a turnaround for the greek stock market since the ase index reached a three-month low on april 21. it has rebounded by 17%, which is the best performance among the 93 global primary equity indices we tracked on bloomberg. that is barring the venezuela stock market, which has risen by 89%. things look very different over the past three months. since february 26, which is the red circle, the ase index has dropped by 9%. that is the second worst performer among global equity benchmarks out of the 93 we follow at bloomberg after
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ukraine's benchmark, which has sunk 11%. the green circle on the top right, the ase index, is the worst performing global benchmark with a drop of 16%, closely followed by kazakhstan's stock exchange index. if you look at the last 12 months, the far left hand corner the ase's bottom of the global pile with a 31% decline. the bond market tells a similar story. the bottom chart is the bloomberg greased sovereign bond index. it is a gauge of greek government bonds. the yellow circle, right there it has returned about 16%, beating all other bloomberg world sovereign bond indices. in that time, by the way, every other double sovereign bond market -- global sovereign bond market has dropped. from the low right to the high right there, the greek bond
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market jumped as much as 27%. things look very different over the last three months. the brown circle right there, the index has dropped by 14%, the worst performer among global world suffer and bond indexes. six months, same story. that is the pink circle at there. the greek index has fallen by 16%, again the worst performing global sovereign bond index. it's the same story over the last 12 months. go to the far left hand corner of the chart,. the greek sovereign bond index has sunk by 28%, again the worst performer in the world, and in that time, by the way, no other national sovereign bond index has delivered negative returns. only greece has. there you have it. timing is everything when it comes to investing. greek assets, faring very different over the last month
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compared to the previous three previous six, and the previous 12 months. from chumps to champs. caroline: let's get back to our top story. u.s. prosecutors have charged at least 10 international football officials in an investigation of corruption that includes a vote rigging in the selection of host countries for the world cup tournaments, according to people familiar with the matter. let's get to tariq panja. separate it out for us. there are lots of things going on. we have the u.s. stepping in, but also the swiss announcing arrests. tariq: the cooperation is quite remarkable. i was talking to colleagues earlier. i cannot recall another instance of such cooperation between the u.s. and swiss authorities when it comes to cases like this white-collar crime. this is remarkable. we must not forget the swiss
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were assisting in a big u.s. case. all of this investigation centered on new york in particular and the justice department and the irs and fbi who have been investigating fifa and officials there. some names have come out in the last hours minutes relating to soccer officials, some connected to fifa some connected to marketing companies, involved in apparently bribing these officials in return for sporting rights. this, of course as fifa knows, is something not new to the organization if health -- itself. fifa it's former president sepp blatter's predecessor, was named among people who are taking bribes from fifa's former
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marketing company, the turn-of-the-century. mark: remind us of some of these names. you mentioned the former president, but what about the current names that have been mentioned by people familiar with the matter? jeffrey webb he is quite associate -- a close associate with president blatter. tariq: jeffrey webb, you certainly couldn't be closer in a way. we have to be cautious with what people say publicly, especially in this world of fifa smoke and mirrors, but jeffrey webb and sepp blatter have been side-by-side ever since the last election when blatter won following the premature retirement of his opponent over vote-rigging claims. since then, jeffrey webb has sort of ascended to the higher levels of fifa. he is now a fifa vice president. he is a former cayman islands banker.
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he has been talked about by sepp blatter in the past as a potential replacement should the day come when blatter decides he has had enough. mark: blatter, the question is clear, hasn't had enough leading up to friday's election -- at least, that is what he has told us. could we imagine that he won't stand in friday's election? tariq: having watched blatter closely for seven or eight years, i can't see an instance of blatter not standing or wanting to be fifa president. it would take people to pull him out of his office for him not to want to do this. this is his guiding power in his life. fifa is blatter, and blatter is fifa as far as he is concerned. he would find it difficult to walk away from this. mark: well done on today's story, tariq panja. caroline: just a few minutes
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until the european equity markets open. it lets some analysis from chris beauchamp -- let's get some analysis from chris beauchamp. chris: we've seen the u.s. dollar storming back into focus the last few days. it was all kicked off by janet yellen on friday with that speech she made. it continues to resonate through financial markets. we got the data yesterday, as well, performing nicely. we've seen the u.s. dollar ramp up across the board. i don't think we have seen the end of this rally. that puts currencies like the pound and euro all firmly on the back foot, as the u.s. currency takes off. mark: barring the pound's potential performance against the dollar sterling in its own
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right on a trade-weighted basis is trading at an almost seven-year high? the postelection rally doesn't seem to be running out of steam, does it? chris: it has taken a bit of a breather over the last two or three weeks. we have seen it come off its highs. if you look at the overall ugly beauty contest, the u.k. since right behind the u.s. in terms of where you are looking for central banks to raise rates. it is still a long way off. nonetheless, it will be interesting to see what they say in the queen's speech. i doubt they will have too much effect, but it will sort of underlie the idea that this is a conservative government in full control of the economy. it is full speed ahead on austerity. caroline: iag, wanting to keep an eye on after ireland said with aer lingus, they could sell their stake to iag.
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we've got generali. any view on where we are going to see equity markets trade? chris: if you are looking at iag, clearly, we have that big news finally out of the way. it clears the path for them to push on. we have had a strong performance from those shares this year, but a lot more to come if that recovery in european business travel continues. probably, equities are still under pressure not just the u.s. dollar, but of course the greek situation. a lot of headlines crossing yesterday. hopefully, we can get a bit more peace and calm. that makes life a lot more difficult as we hurtled towards what many think is crunch time for greece. mark: anything else you've got your eye on today? what else is catching your attention today? chris: it is hardly likely to be too crucial, but the bank of canada decision later today -- we have seen the u.s. dollar surging. the canadian dollar, as well. any dovish comments from the
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bank of canada could give that rally a bit more strength, as well. that is another one to keep an eye on. we know the weakness in oil, as well. that is the other big event of the day. caroline: chris beauchamp, senior market analyst at ig. thank you very much for your time. mark: fifa big story prosecutors charging 10 international soccer officials in an investigation of corruption including vote-rigging in the selection of host countries. caroline: hundreds of millions is what they are saying had been given and forms of kickbacks, in terms of bribes. a phenomenal amount of money. what will sponsors start saying? mark: you've got a visa coca-cola. emirates has stepped down as a sponsor of fifa. still, coca-cola remains. what will they say to this? tariq panja said sepp blatter
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would need to be kicked and screamed out of the office. caroline: "on the move" is up next. ♪
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caroline: jonathan: welcome to "on the move." just moments away from the start of your team trading -- of european trading. volatility jumping. let's get straight to your morning brief. fifa arrest. at least 10 officials have been charged by the u.s. greece hijacks the g-7 agenda. it will be creditors in brussels today. the standoff set to dominate the g-7 meeting in preston. iag gets the green light for island and getting aer lingus.
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dax futures up by 23 points. yesterday was a day of losses. caroline market has your market open. caroline: it was rattled yesterday. the good news was bad news. the usa data not looking too positive. everyone is aware that it rate hike could be back on the agenda. we are starting to see things pull back today. in the -- mp moving forward, reclaiming some of yesterday's losses. we are looking pretty much flat at the moment. belgium is also up. the dax is up .2%. we have the g-7 kicking

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