anna: seven days selloff. asian stocks continue their losing streak. the turkish prime minister is said to be planning to step down after losing a power struggle with president erdogan. prepare for trump. money manager jeff goodlatte says get ready for the presumptive republican nominee's presidency. ♪ ."lcome to "countdown
it has just gone 6:00 in the morning here in london. let's start the conversation about turkey, because that is what we have seen the big moves in asset classes. a chart shows what happened to the lira over the past few days. the big moves we have seen in the turkish lira. the turkish lira falling against the u.s. dollar. a reprieve in this morning's session, perhaps. two months of gains for the sinceh currency, the most 2008, at least on some measures. we will show you how the turkish lira is responding at the moment. the political scene in turkey, big questions about president his land grab, and how much the democratic institutions can stand that. this is where we are on the turkish lira right now.
2.9393. not getting up to that three lira to the dollar mark, which is what some analysts thought would be crucial. a quick word on what the dollar has done in may, typically. the dollar increasing in the month of may in nine out of the past 11 years. a bit of a warning if you are a bit of a dollar bear perhaps. to. production dropping 113,000 barrels per day. meanwhile, we have that fire in the canada oilsands region. let's get the bloomberg first word now. there is reshot salon in hong kong. services in china slipping slightly in april. still some optimism. down from 52.2. earlier on, where the china
state council, saying that they needed to do more to promote private investment growth. veteran investor jim rogers says they are right to tackle -- right to tackle the frenzied commodities market. the upsurge has prompted exchanges in shanghai and others to try to cut trading hours. due todollar jumping anticipated march trade data. rising iron ore prices. a 4% boost. just over $3 billion from a month ago. donald trump's only republican .ival quick the race many senior republicans have said that they will not deport trump. kasich: i have always said
that the lord has a purpose for me, as he has for everyone. as i suspend my campaign today, i have renewed faith, deeper faith that the lord will show me the way forward and fulfill the purpose of my life. brazilian president dilma rousseff has suffered a blow after impeachment proceedings against her. they found there is sufficient evidence for a trial that she used illegal financing. global news 24 hours a day powered by our journalists in news bureaus around the world. you can find more stories, -- top . ,go anna: but think a look at the
market action in asia. juliet is standing by. it does to be the case that investors are increasingly focusing on the global growth story. once again, we have really followed what you saw on wall street and in europe during the prior session, and really run with that. japan is still closed, it has been closed since monday. it had the big fall on monday and markets happened really recovered. we also have had south korea closed today. thailand and indonesia have public holidays as well. the non-saying that it is still targeting growth of 6.7% for the year. elsewhere, we have been seeing general weakness across the board. in shanghai, the market down by one third of 1%. pmi numbers for april coming through with a drop from the march figure at 51.8 in april. we have also seen the h-share
market here in hong kong come under pressure. its longest losing streak in three months. alsoett -- property stocks being sold off here in hong kong after goldman downgraded the property sector, saying prices are too high. australia looking pretty flat as it heads into the last hour of trading. we have seen some weakness coming through. a little bit of buying coming through in the last hour or so. seeing a little bit of defensive buying coming through in utilities. --s index is actually now at the other story of the day has really been emerging-market currencies, similar to what we were talking about yesterday. we have seen a bloomberg dollar index at a one-week high. a lot of that money going into the safe haven assets. down onesian ringgit
third of 1%, holding at its lowest level since march. terrible week for that currency in the wake of the rate cut. it is a little higher at the moment, just under $.75. anna: thank you very much. let's talk about the story coming out of turkey. turkey's prime minister is expected to step down this month after losing a power struggle with the president erdogan. that said markets their plunging. great to have you on the program. how surprising is all of this? judging bysurprising the reaction we have seen in currency, bond, and stock markets. >> a political power struggle between the president and the prime minister. it could be the end of the road for the prime minister. we have a hearing for months of a political power struggle
between the two. it is just in the past week that there was speculation that he could actually step down. for met yesterday evening one hour and 40 minutes. although there was no official statement given, bloomberg has learned that prime minister davutoglu will hold a convention and he will not be a candidate. thisthey hear more about in a few days time. tensions between the two is that erdogan's campus saying that prime minister davutoglu is dragging his feet when it comes to moving into the presidential system, one that presidential -- one at present erdogan is all about. anna: is not hard to see why the market reacted this way.
not getting easier with a lower oil price, this is a market that is very reactive to this kind of political risk. simin: investors hate uncertainty, and that is exactly what they have had. there have intentions for months, but over the past week, it has been rising. the party stripped prime minister davutoglu of his rights to promote provisional leaders. it shows there are people in the party who want davutoglu out. 4%, the biggest decline since june. the biggest loss since 2013, and the yield on turkey's 10 year bonds on the rise, close to three week highs. anna: thank you very much, simin demokan setting up a story from istanbul. let's bring in our guest host for the next hour and a half,
simon french. great to see you, has ever, in the studio. just a reminder how politics can rub up against your investment strategy and investors are really caught in the crosshairs on this one. when you look at a country like turkey and see the politics that are playing out, is a worrying picture? simon: it is a worrying picture because of where turkey sets. -- sits. historically, they have been the boundary between asia and europe, but it is probably more of an acute focus this year with the migrant crisis. there is uncertainty, especially in the u.s., about recent regime change in the middle east, and what that has done to destabilize the political, economic, social fabric of the region. if you just roll back a few years and look at syria, egypt, where they have been disrupted, you look at a power vacuum.
investors this morning are looking at a disruption in turkey and wondering where that leaves the issues that have been grappled with. anna: this is a country that does have a relatively high currency account deficit. -- current account deficit. that leave them more vulnerable than others? simon: it does. as mark carney called in the u.k., the generosity of strangers to fund these deficits. they are wholly relied on international confidence. a beacon ofrovided stability, but clearly, with such a drag on the economy through the current account , i think,does require greater transparency for policymakers over the medium-term direction. investors being uncertain on who is in the leadership in a two-week.
-- two-week period is unhelpful. anna: i was showing a little bit earlier on a chart of what has been happening to bond markets in turkey. we have seen an increasing appetite for turkish markets, including turkish assets over the last few months or so. we will see how quickly the fed is going to ramp up its policy. the two are very related, aren't they? simon: they are. the ongoing theme of a hunt for yield in emerging markets has driven investors. but, there must be constant vigilance. these yields are there for a reason in the current globally low rate environment. i have also got another charge for you. growthgence in global stoking equity swings. we have the yen against the .ollar in blue -- in blue
we seeing very big swings in some asset classes. concern about global growth, increasing volatility. isn't that we have seen changes in regulation? what focuses the mind? simon: i would throw in a third option. this has been a reluctant rally in risky assets. you can trace the recovery from a very oversold position. it was very inconsistent with the macro picture. yes, the macro growth picture was important, but never be justified the growth we saw in the middle of q1. q2, there had through is a question of whether we have gone the opposite direction. you are starting to see real concern that -- i wouldn't so much call it a currency war, but a kind of policy war between the major central banks is becoming more difficult to predict this
quarter than probably anytime in the last 12 months. anna: if we were to focus back on the fundamentals, how comfortable with you -- how comfortable are you with the global growth strategy? we saw a risk assets perhaps turning tail in the middle, but we also sell gold continuing to move. some of those safe haven plays rising at the same time. yen, gold, swiss franc all doing well. a lot of those cross correlations that investors are comfortable with are broken, or are certainly broken in the short term. i think when you look at global macro right now, i have less lori's in the -- i have less worries in the near term that will get a shock. ,he stimulus going on in china the ongoing resilience of the u.k. and the u.s., the recovery in the european union all pointing to a near-term stability.
one of the problems we have is predicatedof this is on some fairly extraordinary policy action. you worry about the unwind of that. usa: simon french stays with for the hour on the program. here are some highlights for your day ahead. time, the an hours polls are set to open in the london mayoral elections. regional and local elections across the u.k.. time, initialu.k. jobless data from the u.s. a half hour after that, shinzo about expected to talk japanese relations at a news conference in london. what they will be able to do to stem that, perhaps, under political pressure from the g-20 and others. up next, prepare for a trump presidency perhaps. ♪
anna: welcome back, this is "countdown." 6:18 here in london, 7:18 if you're watching in frankfurt. let's the bloomberg business flash. up -- about 180 jobs are going this week, most of them in the trading division. another round of cuts, perhaps next month. woulds release said it illuminate 600 positions -- 6000 positions globally this year. the most productive timeline since the model t. for next to produce half a million electric cars -- having no electric cars in 2018, with that jumping to one million in 2020.
hit "deadsuperhero have saved the quarter for 21st century fox. generating $761 million in global ticket sales, over 13 times more than what it take -- what cost. apple music is said to be having a makeover. matterfamiliar with the say the $10 per month streaming service hasn't performed as well as expected since the june launch. an apple spokesman declined to comment. and crew 30 passengers members haven't heard on an anti-had flight -- etihad flight. it hit unexpected turbulence.
10 people were taken to the hospital. the others were treated for minor injuries. they said the shaking was violent enough to damage overhead storage bins. that is your bloomberg business flash. anna: thank you very much, three shots along -- thank you very much. a donaldrepare for trump presidency. the money manager says that if trump wins the white house, the ratio of public debt to gdp will rise given he promises to spur job growth and infrastructure spending. the dubai billionaire has described donald trump as "a loose cannon." he said gulf money may leave the u.s. if he wins the election. i recommended donald trump,
but unfortunately, he diverged into a different line and he -- he is a loose cannon. i advised him through his daughter by e-mail that he should make a correction. what he is doing is making a mistake. anna: simon french is with us to take a look at where politics and the macro meets, i suppose. really a fascinating story. our investors preparing their portfolios for the possibility of a trump presidency? do you think this is really firmly on international investors radars? q2,n: not at the moment, in but also, as you roll forward, you need more transparency on what a donald trump, or indeed a hillary clinton residency will
look like. there is a lot of protectionist rhetoric, particularly on the public inside. clinton isillary being pushed in that direction at a challenge that will not go away from bernie sanders. when you look at physical and monetary policy, i think that what is emerging from a potential donald trump presidency is the idea that fiscal policy will take up more of the slack in demand stimulation and monetary policy. recordtrump has been on saying that he wants to see tighter monetary policy in the u.s.. certainly, that is the kind of rhetoric, and the audit of the federal reserve, which would cause a lot, given that most the basis ofsts on a very gentle path of u.s. interest rates. he references that trump
wants to build a wall between mexico and the united states, he wants to support jobs, whatever that means, and he wants to spend on infrastructure. these is that for an argument for what you are referring to there, the increase in spending, possibly debt levels. whoever wins, will we see the battle pass from monetary policy to fiscal policy? is it a question of degree? simon: i think it is. i think a lot of the fiscal policy that is expected in the next presidency will stand or fall based on the quality of that investment. with the public utterances around a wall between the u.s. and the mexican border, but the idea of infrastructure spending to stimulate the economy, to help the u.s. economy leave the zero two low bounded interest rate, and spread growth around the world
through a spillover effect -- there is nothing controversial about that. what would be controversial isn't that -- if this represents porkbarrel politics, and for the longer term stability of u.s. public finances, which is the concern. payoff, whether the net present value is positive, and actually improves the u.s. debt picture. the u.s.n you think will make the next step to improve interest rates? i have a chart from deutsche bank research. --shows you the chair price the share price. they are basically making the point that there is an increasing concern about inflation among the investor community in the united states. do you see that? simon: i do, because the weakness of the u.s. dollar starts to bring inflation back onto the table.
that all drives the inflationary picture upwards in the near term. but does that change the fed pots response function? i don't think it does. it is very much the narrative we had since the start of the year. they don't see the risks as symmetrical, and would rather sit tight in june. wow markets have been ruffled a little bit in recent days by fed members saying that june is very much a live meeting, it still remains on the balance of probability that they will wait until later in the year. we get a series of mixed economic data. very positive pmi yesterday, but they are looking forward to the farm -- to the nonfarm payroll. we need a consistent picture. were just saying overnight that they will rely on the data. thank you, simon french.
manus: it has gone 6:30 in london, 9:30 in dubai. i am manus cranny in dubai. private services in china slipping slightly in april. pmi down from 52.2 the previous month. the council said more needed to be done to promote private investment growth. it is said chinese authorities are right to tackle the
commodities market. they are pushing up prices as well as volumes. the upswing has prompted exchanges to tighten laws, and in some cases, cut trading hours. the aussie dollar jumped more than expected after trade data, thanks to increased exports and rising iron ore prices. they have seen the deficit shrank to 2.2 billion aussie dollar's, down from 3 billion the month before. donald trump is the last man standing. his only republican rival john kasich put the presidency. -- quit the race for the presidency. many republicans have said that they will not support from. kasich: i've always said that the lord has a purpose for me, as he does for everyone. as i suspend my campaign, i have renewed faith, deeper faith that
the lord will show me the way forward and fulfill the purpose of my life. brazilian president dilma rousseff has suffered a new blow after a senate committee has recommended impeachment proceedings. they said there is sufficient evidence to try their on evidence that she used illegal financing to manage the budget. a diamond the size of a tennis ball will go on sale in june, and could smash the record price. it measures more than 1100 carats in its rough form. the second largest diamond ever found, only behind one that forms part of the british crown jewel. day,l news, each journalists in more than 150 bureaus around the world. if you are a bloomberg user, find our top stories, simply type top .
manus: let's get into these markets. for theocks dropped seventh day in a row, the longest losing streak in five months. -- , and made a growing >> those concerns coming after we got that adp report on u.s. jobs, actually missing estimates. also, the enticing china services -- the china services pmi coming in a little weaker, though still in the expansion territory. we are seeing asian stocks, excluding japan -- markets in japan are still closed -- asian stocks on their longest losing streak of this year. global equities have also fallen to their lowest level in almost a month. looking at currencies, we saw data in australia.
we see the aussie dollar up against all of its g 10 peers. it is one of the best-performing currency against the dollar today, gaining for the first time in three days after the weakness we saw a earlier this week, when the central bank unexpectedly cut rates. bloomberg dollar index pretty much unchanged after tuesday. it is holding near a one-week high. i want to look at fx volatility. for g7 volatility currencies is actually higher than that for emerging-market currencies for the first time in a year. this is looking at j.p. morgan's volatility indexes. the blue line is tracking the indexes, the white line tracking the emerging markets. this is about growing doubts over g7 central banks' ability to stoke growth, inflation. more optimism that emerging markets will actually avoid the
widespread economic slowdown. the spread has been increasing as well. finally, i just want to look at oil. gaining for a second day on wti and bread. wti -- and brent. wti just shy of $45 a barrel. wildfires in canada's oilsands region cutting output. u.s. output is at its lowest since 2014. we are seeing that data from yesterday pushed oil higher today. anna: hong kong property stocks have been downgraded by goldman sachs, which critics a 20% decline in home prices as borrowing costs rise. that is our subject for the chart of the hour. guy johnson is here. news if you back are long of hong kong property this morning. guy: goldman sachs is down trading these numbers based on the fact that interest rates are going to rise.
the federal reserve reaches beyond the shores of the united states and has a massive impact around the world. i think it will be interesting to see which one they are more interested in. where is the balance lie? he thinks the fed is very data dependent. tomorrow, we get this big piece of data out. i think is goldman sachs story is really interesting in that light, the fact that we are going to see interest rates may be going up and the impact that will have on interest rates around the world, i think that will be something that will be important to monitor the effects of. the: you talk about it in context of the turkish story, how partly that is turkey, and partly it has been very much a fan story. simon french is still with us. i would like to see what dublin house prices look like against the cheapest the borrowing around the world. they spent decision, how quickly
it increases interest rates, normalizes policy, said to affect they host of asset classes. not a hong kong trend. you can look at most global cities right now, and their valuations on a price to wages metric have surpassed all to thes peaks prior financial crisis. the real estate is the obvious trade here. you are right that an awful lot of the commodities story right now it's highly linked to dollars sensitivity to this fed policy reaction. that june meeting, although people are probably already tired of talking about it, is really fundamental. , theyworth remembering have only managed to squeeze out one rate rise in the last nine years. don't expect them to go twice within a year. there is a premium on setting, waiting. us,ral bankers keep telling
but i think we have a bias toward some action. anna: i think the work function on the bloomberg suggesting only a 10%. good morning. this takes me back to late 2015. ubs call the london market as a bubble. a negative rate environment, a floorhink there is under global property, and therefore it is not the same issue we had in 2007 at 2008, we saw a huge amount of provisioning on the housing front? simon: i don't think you get a redux. you're absolutely right, there isn't a degree of shift in the risk-free rate that we saw in 2007 and 2008. there is a lot of macro prudential action going on from central banks, recognizing the huge increase in valuations that have taken place across multiple geographies and looking at restricting lending ratios,
adding stress tests, adding additional parameters to ensure the financial stability of a lot of these banks that are no -- that are highly sensitive to any change in sentiment. guy: have you feel like 100% mortgage, the 1.25 in the u.k.? simon: i think the barclays story from yesterday was more .ymbolic of a previous era let's not forget, barclays still have that constraint that only 50% of their loan book can be .ore than 4.5 times income even if they load up with 50% of their mortgage book, there are followthroughs regarding their risk adjustments, their ability to pass the stress test, and the spc's response function.
thatare running a risk attracts regulators who have already been quite active in this space. don't forget, here in the u.k., mark carney is the chair of the financial stability board. from a global perspective, look at ireland, australia, new zealand, whoever much tighter rules. anna: thank you very much. guy johnson brings us the chart of the hour and simon french stays with us on the program. more than half of china's rated issuers could face downgrades after the stress test. malcolm, talk us through the stress test. what do they reveal? melco: they took a basket of the companies they rate around the world and they looked at what would happen if china's growth fell in half from the current 6.8%, and extreme scenario, which they don't anticipate happening. this is what the stress test is
all about, testing what would happen if this extreme event happened. they also have brent crude hovering at around $30 per barrel. if that were to occur, between 16 and one half of that basket would face ratings downgrade. in 2009, about 20% of their companies that they rated face downgrades. -- it would been not be pretty for global companies. before we start to panic and stash the cash under the bed , how likely is this scenario? do you think the bond market has already priced in this readjustment of the credit line? it is not even part of the doubt case scenario that the snp monitors. thatis the tail risk stuff really bloomberg forecasts and
show how unlikely that is. for this year, the median economist forecast is 6.5%. even the most bearish forecasters around 5.9%. even the bears don't think this is possible. we have some data today that sort of added to this picture of stabilization in the economy. the pmi slipped a little bit in april but still remains in positive territory. the march data was quite strong across the board. if anything, the balance of evidence at the moment suggests china's economy is come at a minimum, stabilizing. manus: thank you very much. french, chiefmon ,conomist at penn near gordon back to this conversation. what struck me from your noses that global pmi has slowed down.
there is a wall of death coming up for refinancing, and that is what we're going to see. $571 billion in debt. how big a concern is that? simon: the ability to refinance such a stock is, in the current environment, of limited risk where investors are very happy within,to china specifically, the sector that feels like it is underscored by the central administration. if you have central government backing, that also some of the corporate jets, it is fairly low risk because it looks a lot like government debt. we don't know is, through the credit cycle in china, what the peak nonperforming loans default rates actually look like, and
therefore how you would price it in the event that the macro conditions deteriorate significantly. with asia andtick africa question about what we have seen with the japanese. we'll referencing a chart here on the bloomberg how wild the yen swings. yen week, the swings in the , tracking to three standard deviations. it is suggesting that we have seen recently in the yen is an incredibly unusual. standout moves in the japanese currency. will that give them support what they have to go to the g-20, g-8, other meetings? are they more likely to get support because they can prove that these moves are out of the ordinary. you are right that when you have such violence swings over such a short horizon, you can make the case for intervention against what is
now emerging as a bit of a global consensus. we must not go down the route of competitive devaluation, beggar thy neighbor monetary policy. the japanese have a very strong .ase to say, such is the mood that starts to have negative feedback loops into the real economy in japan, which is expecting the second consecutive quarter of gdp growth. case to saying they need to come to the aid and be part of the abenomics program that has actually supported and hold up over recent years. abe will be speaking a little bit later on in london. it will be fascinating to see what he asked to say about negative rates and what his of a nymex plan looks like. plan looks nymex
manus: welcome back. you are looking at that glorious shot of new york, where u.s. futures are indicated at one corner of 1% higher. london.49 in let's get the bloomberg business flash. credit sweeties carrying a fresh round of cuts to london. about 180 jobs are going this week -- mostlyis in the trading division. will eliminate 6000 positions globally this year. tesla ceo elon musk has said the
company's most ambitious production timeline since the model t ford. they plan to produce 10 times the amount of vehicles in 2018 as 2015. that figure is leading to one million cars in 2020. surprised superhero hit. saved 21stmay have century fox. generating $761 million in global ticket sales, over 13 times more than what it cost to make it. apple music set to be having a makeover after receiving mixed reviews. month say the $10 per streaming service has performed as expected. they plan to change the interface and integrate it with
itunes. that is your bloomberg business flash. anna: thank you. e-commerce giant alibaba reports earnings later today. shares of the company have third by more than one and their 2013 peak, despite profits doubling over the past year. joins us from hong kong with details. what will investors be looking out for when we get the earnings later today? na: investors will be looking for growth in its core e-commerce business. they will want to see a resurgence in revenue growth. they are also going to be looking at key metrics. they want to see how alibaba's acquisition spree and impacted its bottom line. explained it was why the
stock has performed well despite positive earnings in the past quarters. >> you are correct that it has not necessarily reflected the positive performance. many see alibaba as a proxy for the chinese economy. many are worried about the strength of the chinese consumer. unfortunately for alibaba, much of the stock prices out of his control. manus: what do investors actually want to see from alibaba's international business? and maybe -- selina: $1 billion deal to buy lozada. see expansion to in these fast-growing southeast asian markets. the challenge for alibaba right now is that much of its revenue still comes from the chinese consumer, which investors have been seeing slowing down.
this is something investors will be watching very closely. manus: our tech reporter, selena weighing, in hong kong. -- selina wang. cameron said the u.k. would be discriminated against by other nations if we were to leave the eu. cameron warned of the consequences for trade and for the british pound if the country voted for brexit on june 23. cameron: do we sign trade deals faster inside or outside the eu?
+++ from inside the eu because we have -- not only is this agenda very much and eu agenda, but we have the ability to get good deals. manus: let's bring simon frank into the conversation. the markets are really sort of trying to disseminate the risk. one of the things i have read recently is that actually what you would see it a premium for germany against italy, germany against spain, you would see those spread in the event of a brexit. the bond markets -- the currency markets on these risk moves at the moment. simon: that's right. i think what investors are looking for is the implications much wider than the u.k. of a vote to leave on the 23rd of june. the next stage of the european commission's work program is to complete monetary union. the five presidents report published last year too much they havehich said
certainly identified the requirements for fiscal integration, political deepening in order to make the eurozone what it was always intended to be, which is an optimal currency area, which, at the moment, is a suboptimal currency area in need of those policy prescriptions. the challenge they had is that while the five presidents may support this, it is much less clear -- forget the periphery. any part of the current eurozone's electorate thinks that fiscal mutual eyes asian, n,eater -- mutualizatio greater political union, is in their interest. you have leadership and greater political will heading in opposite directions. the german bunds and peripheral debt will widen.
anna: before we get into the brexit debate, we have another vote that takes place today here in the u k. you can't really draw any straight lines between today's vote, which is regional, local, mayoral. simon: i think the signs are very limited today by international standards, we expect turn out to be very low. it is the piece that is the central part of today's event is the one you alluded to, the london mayoral election, where boris johnson isn't running for a third term. -- is running for a third term. sidehallenger on the labor , although they are struggling at the national level, they are very successful in london. in the election they lost
>> seven-day sell off. the asian stocks continue their losing streak. the turkish prime minister is said to be stepping down after losing a power struggle. says get ready for the presumptive republican rival donald trump as john kasich puts the race. desk quits the race -- as john kasich quits the race.
anna: welcome to "countdown." manus: i am manus cranny in dubai. anna: we have numbers breaking. the spanish oil giant. adjusted profit, 572 million euros. that comes ahead of estimates. just as we have seen from a number of other companies, the estimates not turning out to be -- or turning out to be too conservative for the companies. this is the worst performing oil year.over the last the question is how much weakness in price would outweigh strengthen chemicals and refining. costs,ve an slashing seeking to divest. trying to whether that slump. -- they made
matters worse with their $30 billion acquisition last may. and extra assets which they offloaded. to cut costs further, they announced they will cut their dividend. of theironfirmation debt level today. just like other oil companies we have seen, read excel -- repsol profit ahead of estimate. you have retail on your mind. w a morehave, indeed. send is fighting back. these numbers are big. fighting back. these numbers are big. the estimate was for a rise of 0.2%. first quarter number, the total numbers, dropped by 1.8%. the market was estimating 2.3%.
they are targeting debt of 1.4 billion pounds by the end of the year. beat. comfortable the second straight quarter you are seeing a nice move on these like to like sales. of what theyerms do with amazon? they are up. we spoke yesterday. shoppers are not spending their petrol money yet. numbers.the bp anna: take a look at what they are spending their money on. let's look at the numbers. $2.08 billion. revenue of 5.6 billion. up 22%. they are telling us interesting things with regard to their broad sand -- broadband
ambitions. they have anng -- fiber optic broadband, look at the story. 2 million homes and businesses would have copper wire replaced. bt has not been that keen to do in the past area that has been the allegation from their rivals. to spend about 6 billion pounds over the next three years. in the sector crucial as well. , the btfirst, tony finance director. great to have you on the program. we will get to your capital plans in a moment. first, a question on the numbers. revenue is up 22%.
can you tell us anything about the churn you are seeing or the way you are managing to retain customers that supports that up tick? tony: good morning. a slight correction, i wish our revenues were up 22% to rick 2% is the top and -- up 2%. 2%. number, that is the best number for seven years. it has been fueled by what we are doing in the retail business. we have had could performances in business. the levels of decline in global services has reduced. spend 6ou plan to billion pounds in capital expenditure over the next three years. this of course toward your new targets.
is this a conservative number at 6 billion? do you think that might grow? how conservative is that number, six billion pounds? tony: it is not conservative. it is based on ambitions. the regulatory infrastructure to allow us to do that. ofess we've got a degree certainty, we cannot spend that money. shareholders in the eye. what we are looking to do is spend in the infrastructure. by that, we are going to improve the quality of the network. give you an idea in terms of speeds. what fiber to the premise does, it gives us the opportunity to get speed up to one gig. that will go to retail parts and
new sites. additional to put infrastructure in there. the rest of the spend is based in terms of what we do in relation to our mobile network. anna: just to clarify of it for on these plans. the fiber optic plans. are you talking about replacing copper wire to holmes? is this a project that services industrial parks? are you going to front doors with this? tony: we have a fiber to the premises project that goes to consumers and businesses. all we are talking about rolling at a greater speed. the important point, it is meeting the customer requirement and demand. the basic product, which we believe will get us speeds of 500 makes, will meet requirements in the future. it is a question of getting a
balance, blending the network to meet the requirements of different types of users. much appetite you have for replacing copper wire? you were talking about a limited rollout. suggesting your heart is not really in fiber. you want to sweat a copper wire a little more. ony: the product is based rolling out fiber and rolling it out close to the promise -- premise and using a link at the end. when we first rolled out five or come of the others would not sell the product. 90% of the sales were with bt downstream businesses. that has moved across. this sales are roughly speaking 50-50. there is more of an appetite. we will roll the network out to meet the requirements of the customer. premise the
requirements will meet the needs of customers who need speeds of up to one jake, -- one gig. you take a little pause and let me throw this to you. deal -- youe the must be a happy man. what does it mean to your business? tone escalating -- tony: we welcome the competition. it doesn't really impact us. the key for us is we have the best network, we have the widest level of coverage in terms of 4g. of what wequality are doing and the fact we are going to extend the reach that the emergency services network, whether we've got to bank abettors or three or number more, it doesn't really make
much difference to us. and it: it doesn't make much difference. do we have the right number of in the u.k. mobile space at the moment? is fourether it networks or three, it will make little difference to competitiveness. perspective, whatever happens, we are fine with the outcome. anna: thank you for joining us. director.ance thank you so much for joining us. once again, to reiterate that number. noteasing revenue of 2%, for the 2%. 22%.t up have a percent. a contrast, what we could bc coming through asia.
asian numbers look a little gloomy. and looks as if futures will be higher in europe. what correlation coefficient we would be looking at. oil? let's check in at the bottom of your screen. as we saw,his comes, a nice move in terms of reduction. falling the most in a month. wildfires in the oilsands cutting production. driving supply. beware of the month of may. 49 out of 11 times, the dollar goes higher. dollar lira is what we are keeping an eye on. the political situation turns contentious. we will see how that goes. the lira, the most five years yesterday.
turning around ever so slightly. it lost 8%,w the -- the most in three years. the new alpha and markets. anna: let's get the news now. from hong kong. reset -- anchor: optimism outbreaks pessimism. the previous month earlier, we had a meeting. promoting private investment for a veteran. china arehorities in right to tackle the frenzy and commodities. the episode has prompted exchanges. tradingen rules and cut hours. aussie dollar jumping.
rising iron ore prices. a boost saw the deficit shrink. sales also better than the economists thinking. standing.mp, last man his only republican rival has quit the race. the challengees of persuading a party to unite behind him. many senior republicans and donors have said they will not support trump. lordhave always said the has a purpose for me as he has for everyone. today,spend my campaign i have renewed faith, deeper faith, that the lord will show me the way forward and fulfill the purpose of my life. anchor: south america, the brazilian president suffered a
-- blow after impeachment a tennison the size of ball will go on sale in june. the rock found in botswana measures more than 1100 carats. the second largest diamond ever found. it is expected to fetch more than $70 million. day.l news, 24 hours a for all our top stories, go to bloomberg. anna: thank you. you are a bloomberg terminal customer, you will have al ready cnet philip low set to replace glenn stevens.
australia appointing a new rba chief for seven-year term. having to deal with the unusually low or surprisingly that caused some big moves in currency markets. all change at the rba from september 18. manus: it is indeed. if you click on his profile, he going the interim -- i'm to blow up the aussie dollar for our viewers. you can take a look at it. 2006, let's have a look. this is where the aussie dollar was. volatility. to parity with the dollar.
110. we are all the way back down to 75. what doesn't mean? record low interest rates. cut from 2%. on the name, you get performances. all in context. let's go to julius. >> -- juliette. pain out intical turkey. how does it look at the close of trade in asia? juliette: we have seen estrella high. the -- australia high. reversing the earlier losses, due to the fact that we saw energy players arise. new zealand also had a good session. elsewhere, we are seeing weakness in china and hong kong. been closed since
monday and will not reopen until tomorrow. we had korea and thailand and in asia closed. is the tmie seen services number coming out of china. which was a drop from march and april. putting some pressure on the asian markets. the market having its fourth session of losses. in terms of the regional index, it is looking better than it was an hour ago. , consumerstocks sector, the basic materials coming under pressure. the seventh session of losses for this index. the longest losing streak since last year. some of the movers we have been watching. coming through with the first half numbers. out in macau.
details from istanbul. , suggestingmarkets a lot of what happened has been a surprise. reporter: that is right. we have heard of political infighting for months. it is over the past week there was speculation the prime minister could actually step down. the two met yesterday evening. for around lasted one hour and 40 minutes. even though there was no official statement, bloomberg has learned the prime minister planned to hold a party convention in around 15 time -- days time and will not be a candidate. he will be speaking at 9:00 a.m. london time today. we could hear more about his plans. what caused the rift between the two? his people thought was draggingister
his feet in relation to transitioning into a presidential system, one that the president is passionate about. anna: tell us more about the market reaction. reporter: that's right. investors hate uncertainty and that is what we have been seeing. it has been leading to a downward spiral on the markets. the market is expected to open in 10 minutes time. futures are pointing to percent lower. a fifth consecutive day. the lira yesterday slid, as much as 4%, heading towards its biggest decline since june. it bounced back somewhat today. the yield on the 10 year bonds is rising.
i want to quickly talk about what has prompted this rift between the president and prime minister. when one wasriday stripped of his rights to pick provincial leaders. it made it obvious there are people in the party who wanted him out. he has be following what to say closely at 9:00 a.m. london time. anna: thank you. manus, we have seen big reaction as she was saying. manus: we have. checking in on the literate. -- lira. the lira dropping, after the political strife. back from the edge. you saw a record movement of money into turkey. days. drop 7% in four ba
that is the story on the lira. let's talk about cars. tesla has revealed it can accelerate production. the founder wants to see a tenfold increase in the number of electric cars it makes by 2018. ryan chilcote has joined us in london to run us through the numbers. lofty ambitions. ryan: lofty. what he wanted to do already was effectively the sort of most aggressive if you will ramp up or ratcheting up production for a carmaker sense henry ford introduced the model t. that was the plan before which he moved up yesterday, by two years. the original was to get to 500,000 by 2020. good enough.is not a we are going to do it by 2018.
to show you this chart, last year they produce 50,000. this year, they will do under 100. underear, to do just 300,000. 500,000 in 2018. the new goal for 2020 is one million. hurry?he in a he is an ambitious guy. the other reason is there is this subsidy for consumers in worths. for electric cars 7500 dollars. he has to get the cars out in time if they want to avail themselves which would help his sales. anna: they are looking to put their model x problems in the review mirror -- rear mirror. ryan: one of their goals is to ratchet up production. and the battery
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the billboard music awards, live sunday may 22nd, 8/5 pacific, only on abc. >> it is 7:30 in london. johnson. we are watching, leaving on a record low. a new governor at the rba. aside.tevens will step he will be replaced at the astral he and central bank. are you ready for trump? investors should prepare for a debt driven donald presidency. and stocks fall as t p