tv Bloomberg Daybreak Europe Bloomberg May 15, 2018 1:00am-2:30am EDT
1.7 billion is the guidance from rw you leave. -- rwe. you have a feast of headlines. let's give the numbers. profits,rter operating 2.7 6 billion. -- 2.76 billion. a share of buybacks earlier in the year. downe break the numbers tentatively. beat.illion, that's a last year, costing the industry dearly. property and casualty profit, 1 .27 billion. on track to meet 2018 and performance targets. headlinesred based
for the germans. and you can never have enough germany. anna: sticking with the financial services. numbers when compared to estimates from the senate quarter. ahead of the estimate of 274. red line, an estimate of 178. aroundthan estimated provisioning. losses lower than estimated. they are talking about a higher than adjusted revenue for retail. this is a business in the midst of a turnaround. overbanking, we talked about for many years over in germany. that has been damaging their ability to raise profits. cutting costs is one of the ways they are reducing back. -- reducing that.
butall, outlook unchanged, they are beating on a number of these metrics. sales first-quarter net salesarma, net coming in at 3.6 9 billion, just a shade below the guidance. epitapharter adjusted -- ebida, the guidance for the full year, adjusted, 3.75, -- you canonsumer see the stock dived 25% on that. a little bit of guidance from the rest of the year. anymore -- any more?
anna: first-quarter net income, a 56 million euros. -- 856 million euros. agricole, caught in a fixed income slump. the french banks are not managing to live up to the rest of the street. this business moved away from more towardsading, asset management and the italian market. and the three local lenders they picked up in italy. they are talking about a more difficult environment and capital markets. a strong euro weighing on performance. lots to tell you about in terms of what is going on in the market. let's have a look. down 6/10 of a percent in the asia-pacific.
trade tensions in washington will be foremost. mixed tensions in china and gaza how does that fit with the geopolitics of the trump administration? 10-year gilts at 3% -- yields at 3%. interesting moves in the lira. the lira hitting an all-time low, the dollar gaining. the turkish president telling bloomberg he will take more responsibility for monetary policy if he wins the next election. coming up, we will hear more from the turkish president in the exclusive interview -- as he sits down with guy johnson. to a cfo.e speak
let's get the first word update. juliette: the turkish president had said the united states need to work together with his country rather than putting up trade barriers. anmay be comments in exclusive interview -- made the comments in an exclusive interview with bloomberg. whether the united states would enter into sanctions or not, i don't know. there's only one thing i know. there is a product i consider to be strategic, such as natural gas and petroleum from russia. we can't cut our ties with russia in that respect. if we are allies with united states, we need solidarity, not sanctions. uliette: wilbur ross said america is exploring alternatives to punish china for breaking sacred -- sanctions law
separate from trade negotiations. donald trump called into question the strategy hours later. the president seemed to bytradict ross's statements looking for a wider trade birth he is seeking from china. at least 55 people have been killed on the israel-gaza border. it was the deadliest day since war.2014 cross-border the protest came as the u.s. moved its embassy from tel aviv to jerusalem. the palestinian authority says it will launch a war crime case against israel. italy's populist party is struggling to nail down the final details of their plan to form the next government and tensions are mounting. president, with the
a few more hours has been asked to complete a deal. implications suggested could take longer than that. msci has released a list of 234 chinese a-shares to be added to benchmark from next month. indexci emerging markets three of theature chinese markets, putting passive second biggest equity markets, but the move full-featured low weighting. global news on air, 24 hours a day and at tic toc on twitter, powered by more than 2600 journalists and analysts in over 120 countries. you can find more stories on the bloomberg. >> checking in on the markets in asia, a stronger dollar b have seen in treasuries. -- dollar seen in treasuries. japanese banks are doing ok. the nikkei only down by a 10th of 1%.
weakness coming through hong kong. we have a look at the vietnam sci up byex, the p 1.5%. vietnam had its rating upgraded, within outlook stable. stable.an outlook, tech players under pressure. aac tracking in hong kong. first-quarter net income missed estimates. most analysts are quite bullish on the second half. sabr avoided its delisting on the tokyo exchange. it got an 804 billion net profit. saying it may have to cut its dividends after its numbers came through, and pressure on margins. this hurts mother -- mom and dad investors that by those
dividends. nus: a deal heading this morning in the payment space. -- hitting this morning in the payment space. s.deal for 2.3 billion euroe been chosen by the swixth group as a preferred bidder. heatedole space has up. blackstone is involved. it is all about everything else that happens after you execute the purchase. anna: people familiar have said this was going to happen. manus, let's get to our top story.
the turkish president is saying he will play a more active role in influencing monetary policy, following elections next month that will transform the nation's government from the parliamentary system to an executive presidency. he spoke to- bloomberg guy johnson in london. >> you were the head of the state. when the people fall into difficulties because of monetary policies, who were they going to hold accountable -- the president. we have to give off the image of a president who was influential in monetary policy. you will play a role in monetary policy going forward? erdogan: this may make some uncomfortable, but we have to do it. this will be state are accountable to the citizens. rule the state are
accountable to the citizens. uy: you hold an orthodox view of monetary policy. an unorthodox view of monetary policy.it will be different compared to the rest of the world. are you comfortable with that? ogan: we take these steps in order to protect my country's interest. we will do whatever my country's interest require. is how youurkey think the relationship with the central bank will operate -- i curious how you think the central bank's relationship will change. they willgan:
continue in the same way at the moment. we have been running this country for 16 years without interruption. said turkey has an independent central bank. you talk about how things will be the same. now, with your greater role in monetary policy, will it still have an independent central bank? else,erdogan: above all we requiret turkey, the same governments in turkey the same way it is applied globally. the approach in the united states or europe, we will apply the same in turkey. what is legitimate for them cannot be a legitimate for -- illegitimate for us. everyone should know this and we will take steps accordingly. we will never let our country
lives -- lose. guy: the comparison with the united states, is your assessment the product of trump powell, the chair of the thinkl reserve -- do you the president speaks to jay powell about interest rates? you say you will take a greater role. is there another example where you can see a model working for turkey? pres. erdogan: no. the united states interest rate policy is known. we don't need to reinvent it. we have all the information at hand. we know what the interest rate policies are and aren't in all the countries. we not just discovering them now. are not just discovering them
now. we will take steps accordingly and make our assessment. we know what it is like in and britain.xico, we will always make this assessment. we will make her own decision accordingly. -- our own decision accordingly. guy: i would like to talk about what is going to happen in the upcoming elections. we have a parliamentary and a presidential election. if you found yourself in a situation where you won the presidency, but ended up in a mixed picture when it comes to 2015,ment, as it was in would you call another round of elections to make sure use occurred -- you secured the parliamentarian mandate the system is designed to be set up with? pres. erdogan: of course.
there is no point at all to before seeingnds the stream. let's see the results first. we will have preparations for results in the way you described. formatters to develop exactly in the way we -- for matters to develop in the way we plan, of course all this has to happen. it looks at the moment like we are doing well. an will emerge, and 40 days later, turkey will wake up to a much more different era. nus: that was the turkish president speaking exclusively with guy johnson. the lira has seen another record low this morning. lira, flicked from a gain to a loss. our chief economist has written a cracking article this morning,
talking about what killed the ment, constituted 11.5% of the drop. anna: if we put this in the context of what we are seeing in other emerging markets, many have their own idiosyncratic views turkey is no different. theey's weaker against dollar. interesting to see the markets distinguishing between the short reserves, and those that have a slightly more robust position. coming up, we turn our attention to the middle east. 55 killed and more than 1000 palestinians injured after violent clashes with the israeli army that coincided with the opening of the u.s. embassy in jerusalem. italian populist leaders asked the president to give them a few extra days. could this an end to the
anna: this is "bloomberg daybreak." italy is the populist party struggles to reach a coalition agreement. the president has been asked for a few more hours to complete the deal. a stalemate could continue. now is our economy editor, kevin costello. what does this mean for the talks? : it is not a good sign. the elections were held on march 4. ony can't still agree programs between the five star and the league. said,ader of the league
either we get started or say goodbye to each other. manus: everyone is talking about policy. but what are the top names in the fray? two names. former board member, julio, is favored by the league, and a law member at lawrence university. -- florence university. manus: let's see who they choose. thank you, kevin costello. we will keep on eye on the bpt s preads. the markets don't seem as flawed at the moment. general tension in the region in
the middle east. clashes between the israeli army and the palestinian protesters on the gaza border. the deadliest day since the 2014 cross-border war. the protest came as the united states moved its embassy from tel aviv to jerusalem. the palestinian authority says it will continue to launch a crime investigation against israel. joining us now is our executive editor for the middle east and africa. concern is about what happens today, and potential escalation. plo called this a massacre. i said there is a short-term and long-term. in the short-term, today, tomorrow, the next few days,
could be even worse, potentially, as horrible as it is. said they will send more people to the border. want to goselves may because this is a reflection of it on resolved issue for 70 unresolved issue for 70 years. faces are quiet but gaza keeps exploding. the short-term concern is that the violence gets worse than what happened yesterday. is whetherrm concern this will destabilize the region even further. though there be more people coming in -- will there be more people coming in and foreign involvement in all of this? nna: how does this fit with other developments in the region?
riad: you have president trump pulling out of the iran deal and moving the embassy to jerusalem. these are things israel has worked hard to achieve. both of these things are seen as victories for netanyahu's policies. that seems to be the connecting line between these two events. hamas. a supporter of some say that iran might be stoking this. i don't know if they are directly. there is a genuine problem in gaza. the situation is dire. there is a lot unresolved. life is hard in gaza. this is the only option for hamas. anna: riad, thank you.
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discussing retaliatory measures against u.s. sanctions. theresa may is scheduled to meet with her brexit cabinet manager to discuss plans for a post-withdrawal customs union. and scotland after theresa may's disarray are the top headlines. anus: the chinese president continues trade talks with steve mnuchin. wilbur ross stepped in with this big relief rally over zte, his comments last night put the caps on the pigeons. and breaking news on the retail side in france -- in germany. anna: second-quarter numbers coming through. first-quarter revenue, 8.4 5
n.llion -- 8.45 billio ebitda coming --ough, numbers, one point 153 million. this company is expected to give more detail on the situation in russia. but this is not just a phenomenon related to metro. manus: i know you have a whole new thing these days. pandora, -- one of the world's biggest jewelry producers. they delivered their numbers. a slight miss. 1.78.
first-quarter net income, 1.16. what are they doing wrong? what are they doing with the margins? withll have a conversation the daybreak team in under 45 minutes. get to annmarie hordern. nnmarie: not many standouts in asia. japan, china, hong kong, all down. chinese stocks fluctuated after data showed economic momentum broadly held up. low futures now pointing ahead of europe. u.s. investors in -- and chinese officials meet in tc -- d.c. german data out and economic data has not been so hot for
germany. forecasts have been rising for tenths of a percent -- four -tenths of a percent. the german economy slipped lower at the start of this year. the question remains whether this is start of a downswing or a more sustainable rate. the white line, the lowest since 2012. i cannot do a market check without talking about turkey. a great exclusive interview with the turkish president and guy johnson. the turkish president said he asked -- he plans to take more responsibility for monetary policy if he wins the election next month. more from the bloomberg economist in dubai, saying loose
monetary policy only accounts 01%.. this is negative feeling toward turkey. his model shows what has really pushed the lira down this year./ anna: a great conversation. thank you. a jump in fiscal second quarter earnings. profits more than doubled in its metal making division. joining us now on the bloomberg -- thank you for joining us again. happy with the strategy that reduces reliance on a deal at a time when business is doing nicely? look, we areke a happy the still unit and still markets are in better shape -- steel unit and markets are in
better shape than we used to be. 20, numbers were down and we are impressed. numbers were down and we are impressed. if the steel market is good, it can only be good for the joint venture and produce growth. characterizeyou the supply and demand story in the steel right now? people talk about overcapacity, but also strong demand. guido: we see strong demand and production everywhere. we also see 300 million tons of overcapacity worldwide. prices have recovered and demand is ok.
it is moving in a better direction. but it is still volatile. it is still overcapacity. when are you going to decide on the planned merger? guido: our intention is to get it in the first half of 2018. we are depending on because location process. -- dpeepending on the consultatn process. this needs to be finalized in the netherlands and united kingdom. anna: are there problems? guido: i don't see it. there are always challenges involved, like in germany. that is normal. anna: let me talk about the tariff story.
the trump administration imposing them. sow do you see the u.s. tariff the european steel industry -- impacting the european steel industry? uido: we don't see anything there. into the steel plays united states. schedules. the -- priced schedules. our customers stay loyal. having said that, we have to see how tariffs it will impact other volumes. they might be redirected. let's wait and see what the european union is doing.
anna: what is your understanding of where we got to with compensation between europe and washington? are you happy with the lobbying europe is doing? are you confident there will be any kind of exemption? guido: we are not too close. i cannot comment. we have to take what is tariffs., steel anywhere, trade protections are not helpful for underlying economies. ana: you are clearly running business more than steel. tell us your take on the global economy at the moment. guido: it is doing well. the united states has a strong infrastructure building. we see it in south america, brazil, slightly coming back from the volumes.
china is solid. the middle east is ok. i think overall, this is a good economic situation, one of the best we have ever had. anna: guido, thank you. bloomberg users can interact with all of the great charts annmarie was using a moment ago. go -- gtv go. browse all the recent charts bloomberg television has been playing and catch up on key analysis. moved.lira president commenting on the contrast between the palestinians and israeli troops yesterday. nother cfo joins us for
anna: good morning. this is "bloomberg daybreak." the pound against the u.s. dollar. a stable -- pretty stable. theer at the start of trading day, in line with what we are seeing in the united states. let's get the bloomberg business flash. a jump in fiscal second-quarter earnings. for its more than doubled as the metal making division is planning a joint venture. profits rose to 500 million euros.
the german industrial giant is working on a joint venture as part of its strategy. for portugal's biggest energy theany, is poised to reject 9.1 billion euro takeover. said the bidoard was too low. edp is working with advisers on a potential deal. representatives declined to comment. azon is said to be taking its most assertive step into the digital advertising market by testing a new display advertisement offering multibillion-dollar revenue streams. spots can be purchased that will
follow shoppers around the web to learn the consumers back to amazon to buy. the company is inviting select merchants to test the new advertisements later this month. announced a staff member is leaving the company. it marks the end of an era for bank.vestment she is the last of a generation of bankers who babbled supremacy in a golden era of commodity profits for wall street. american -- dan silber, the head of credit american foreign exchange business has died at 48, reportedly of a heart attack. that is your bloomberg business flash.
manus: operating profits have been reported for the first quarter above the average analyst estimates. saiders profits have been changeoosted by trump's in tax policy interloper restructuring charges -- and lower restructuring charges. .et's talk about the numbers there is a good performance, and the company on track to head its 2018 targets. what is going to help you had those targets -- hit those targets? is it going to be property, or the asset management side? inwe had a very good start 2018. ourgrowth revenue was 5% revenue growth was 5%.
the operating profit was down 6%. profits were up 4% last year. this reflects the underlying operating improvement we are recording across the board. e improvement was by 80 basis points. we have increased revenue business of 8%. we were able to post $21 billion. in the package is very strong across the business side -- the package is very strong across the business side. manus: you talk about a remarkable 16.3% rise after
foreign-exchange. is that the end of the bonus retention scheme? is that what is helping you move the dial on those numbers? see isimprovement we driven by operation improvement. the cost is more or less flat. manus: everyone is looking at the bond markets. there has been an indication that it was time to cut risk. are you seeing that in your investment portfolio? are you making adjustments due to vault -- volatility down the road? guill we are long-term
investorso on the life insurance side and insurance side. from this point of view, we are not changing the statistics as a location. this mightty side, be an opportunity to buy more -- to buyndamentall more equity, but fundamentally, we stick to our asset allocation. manus: the other big story on everyone's mind was your ceo saying, the company would be open to a merger with a big competitor, which raises the question if you would consider a merger with zurich? is that who you are referring to? the topic of m&a is always interesting, but it is not our
first priority at the moment. we are very much focused on delivering the new agenda. we have set targets for ourselves for 2018, operation improvement targets. we want to achieve them. m&a is eight for we have at our disposal -- a tool we have at our disposal, but it is not priority number one. have you had any major conversations with a major competitor on the prospect of a merger? mna. never comment on we are very focused on operation improvement. manus: we won't expect further. areand credit suisse
having discussions about merging back offices. is this a strategy you have talked about? merger, need a mega but to capitalize on the efficiencies of the industry -- is that a suggestion? aboutare more thinking internal services. we are thinking about the shareility we could offer services to other companies, for example in germany. we are also focused on creating synergy within the allianz group. guy: i want to focus on to bond -- on bond markets.
positive. manus: thank you so much for being with me this morning. anna: the msci has selected 230 four chinese stocks to be added to its global equity index in with and september -- 2 china's stock market swings, does the inclusion of asia pose additional danger to investors? let's get more from our strategist in singapore. sia willitially china-a make up a tiny part of the world index. why does it matter? mark: numbers are very small to begin with. chinese markets are already huge.
measures are very large beyond sure markets. people expect the number to get larger. it is a recognition china is doing the right thing. they are part of a global community as far as investing. years,n, within five china could make up a pretty big chunk of the msci. if people are expecting that to happen, they will be very incentivized, beginning with the chinese market. it is a long-term play. because of the size of their market, they will affect everyone. they are too big to ignore. anna: making a slow, creeping start. zte, how is the market taking news president trump wants to save it?
this changes the mood music around the u.s.-china trade conversation quite substantial yesterday. mark: it was taken well initially. monday morning, the asian markets liked it. china is now reopening qualcomm. positive on that side as well. the vice premier of china is now in washington to discuss trade. it doesn't seem as though the commerce department in the united states is entirely up to speed on this. murkyis a little bit of a picture on it today and hopefully that can be clarified quickly. if the united states and china are looking more favorably at takeovers, that is a very good thing for equity markets in general. the chinese data today was mixed as well. anna: mark, thank you.
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>> good morning from dubai. i am manus cranny and this is "bloomberg daybreak: europe." anna: and i'm anna edwards. these are today's top stories. manus: the turkish president erdogan tells bloomberg he will play a more active role in shaping monetary policy. language]ng foreign we have to give off the image of a president who is influential on monetary policy. manus: you will play a role in monetary policy going forward? pres. erdogan: this may make some uncomfortable, but we have
to do it. manus: dozens of palestinians are killed as the u.s. embassy moves to jerusalem. we assess the geopolitical implications for the region. president trump defends a move -- afterhina's dead facing criticism from both sides of the aisle. -- to help defend -- to help e after facingt criticism from both sides of the aisle. anna: good morning, everyone. we have some breaking news coming through out of the german economy. the first quarter gdp number grew by 0.3% quarter by quarter and by 1.6% year on year. we are looking for any evidence -- there we go, 0.3%. 0.3%,owth has slowed to and estimate was for 0.4%.
we are looking for any estimates on how the german economy has fared. we have seen some weakness across the eurozone. we had the ecb wednesday -- yesterday talk about how this was temporary. manus, you have got some breaking corporate news? manus: yes, a little bit coming through across the bloomberg. we have got first-half revenue rising by 3.3%, that is above the analyst estimates. analysts have been expecting a bit of the narrowing of the loss. a going out of it -- italia going out of business. first-half revenue was 2.8 billion.
that is the state of play with them. the loss, the operating lust comes in at 10 million. the operating loss was estimated at 11.5 million. that is a narrowing of the loss, and that will be good news. the telecomout dividends. anna: yes. all about the underlying performance and management changes. we have q4 service revenue growth that is better than the estimate of 1%. 1.4%.at they are giving us some news about succession over at vodafone. the group's cfo is going to succeed the ceo of this business.
they are giving us other numbers surrounding the business. ebifull your at the da, -- tda was --. we now see a ceo change in the cards over at vodafone. vodafone making a bid for liberty global germany. they also face intense competition in spain and italy, as regulatory headwinds really blow against them. they can news over at vodafone. the date for this ceo change is october the first. anus. manus: yes, that will be an interesting announcement for them. let's talk about the equity futures. you have wilbur ross stepping in , really blasting china for its unfair practices. we have had a slew of earnings.
the futures are a little bit lower in europe. bank beat, allianz beat. will italy coalesce? will they create a new government? china showed a little bit weaker cap-ex -- numbers -- numbers. let's talk about the turkish president, recep tayyip erdogan. he said withdrawing from the arendt nuclear court and moving is u.s. embassy to jerusalem not increasing he's -- peace. pres. erdogan: you do not for your hands without just folding
he hams without -- hems without seeing the strength. let's see the result first. of course we will have preparation for the results that you have described. of course all of these will happen. it looks at the moment like we are doing well. plan as weer, a wished, will emerge. 40 days later turkey will wake up to a different era. >> is the system that you have established -- does it only work when the ak party wins both elections? the presidential election and the parliamentary election? is the system that you have designed, does it only work at that point? if one part does not fit into that, the system does not work?
pres. erdogan: at the moment we have done our homework well. we are working well. we would not allow a development which would not allow the system work. in any case, there were some people who clubbed the system after june the seventh -- clogged the system after june the 7. in november, and people said this can't happen -- our people said this can't happen and brought the ak party back to power again on its own. the system started functioning again. politics to stay with for a minute longer, what will be the result in the region of the reimposition of sanctions on iran by the united states? naturally, we are fed up with hearing with these -- about the sanctions. the u.s. sanctions on iran are
not new. imposed aw, they sanction previously too, but we did not find this to be right for the sake of the piece of the region -- peace of the region. iran is a country which fulfilled their obligations. in that case, on what basis do you punish iran now? these are not right. and also, there has been a procedure which was in place during president obama's term. in that process, everything was normal. when obama leaves the office, arrive is punished -- iran is punished through a new practice. these are not right, and all of these result in tensions in the
region, not contributing to the region's peace. we do not want this region to go into tensions. also, this region is now tired, so at once, let's establish peace in the region, and contribute to it peaceful world altogether. you see the step of declaring jerusalem as israel's capital is a various -- very serious step towards tensions in the region. we are looking at the number of people killed in the gaza strip. it is a disaster, 37 people. in fact, i believe more died, and hundreds of people were wounded. these people were wounded by real bullets. how could this happen? 700 people are now wounded in gaza. this cannot happen. there are two people responsible
, mr. trump and netanyahu. israel.sia and as the geopolitical shift taking place in the region -- is a juvenile political -- is a geopolitical shift taking place in the region? pres. erdogan: i don't understand what a shaking of hands between netanyahu and vladimir putin will break -- bring. anna: let's return to the earnings story here in europe. cybg reported first-half adjustment -- adjusted pretax profit of 158 million. let's talk about these numbers. you have taken another provision
on ppi. tell me the earnings story and how close to the end we are on the yet -- ppi. costs are down 7%. even probably more than we had hoped. we are looking at taking our guidance down. if you look at your revenue, growth, and cost, very good performance. when you go to ppi, you see headlines still at elevated levels. let's put that behind us. the end of that process is looming. let's focus on what the underlying performance of the business is an the execution of our strategy without that discretion -- distraction. anna: we have seen advertising encouraging people to get their claims in if they have not already done that.
where is the profile from here -- what does019 the profile from here to march of 2019 look like? >> i think you will see some more advertising as you get to the deadline. the claims management company profits are going to be curtailed through legislation. i think as a business that starts to weaken. we're looking at things that occurred pre-2005. at the end of this process you will see a phasing and slowing down. anna: let's talk about strategy. the virgin story. what is the motivation there? what is the rationale for doing that bid? >> i am extremely restricted in what i can say. we see a combination of virgin and ourselves as creating the leading challenger in the u.k. i think that is a really good story for both shareholders and our customers. the strategic intent is very
clear and the outcome is very good. anna: what is it that you're trying to get? what is it about the strategic fit that you like there? >> i am going to disappoint you. i am not actually allowed to say anything about that, even to my own investors. it is frustrating, but i think if you stick with the strategic intent of creating the single largest challenger in the theetplace, i think that is strategy. anna: how much opportunity is there for you as a challenger bank in the u.k.? we saw rbs recently decided not to set up -- as a challenger bank. do you see more opportunity than before and challenger bank space -- in the challenger bank space? david: yes. we are incredibly well-positioned as the only challenger with real experience in sme.
what they are trying to do is create competition. about 120,000 customers have to move from williams & glyn. sme is really attractive. we are launching open banking later this month. i think there is a lot of potential for it challenger bank -- a challenger bank. anna: open bank started in january of this year. it was ruled -- rolled out the u.k. david: the consumer does not really get it yet. i think things like we will launch this month, aggregation, all of your bank accounts in one place, convenience. i think it will be slow. the first year or 18 months will be an emerging story of value to the customer. once it is well understood, i think it will take off. we want to become the leader in strategic terms of starting
amongst the first of the pack in delivering that, and then demonstrating that as a challenger bank we are offering an experience that customers cannot get elsewhere. anna: is that the case in the mortgage market? so.d: i think i think you also compete on service on the product that you have. i would refer to our growth levels of 6% in mortgages. i think if we can deliver those levels of growth, i think we can sustain that. anna: david, thank you very much. g.vid duffy, the ceo of cyb tomorrow will bring you an excuse of interview with -- exclusive interview with the st. louis fed president. he has been very critical of the yield curve. that is on wednesday at 6:30 p.m. u.k. time.
the ceo of the company. read will become ceo. inreported a jump first-quarter fiscal earnings. adjusted earnings before interest and tax in the three months through march rose 21%. the german industrial giant is working with india's tartar steel for a joint venture. portugal's biggest energy company, edp, is poised to a reject a takeover offer from china'. is too low.bid
they said edp is also working with advisers, including ubs and morgan stanley on the potential sale. that is your bloomberg business flash. manus: thank you very much. has reported net income for the first quarter that missed analyst estimates. the company had said it anticipated a slowdown in sales growth, but expected to improve throughout the year. joining us now is the ceo of pandora for the first interview of the day on the quarterly earnings. good to see you. i go straight to your guidance on the year. you predicted sales growth in local currency from 7%-10%. these are quite ambitious things to promise the market. are you 100% confident of hitting those numbers? >> i think that the important
thing is that we have started the year as we expected to start the year. we feel comfortable with the guidance we put into the market. what i am really happy about is the development that we have seen towards our strategic ambition. we have seen a very nice development in our e-commerce in the first quarter of the year, which grew by 50%. we have introduced a number of new products, which is one of the things that is really important for us. that is where the consumers resonate with us. we have opened a grand new facility in thailand. all in all, we started the year as expected. we are on track to meet our full-year guidance. manus: talking about those new products and margins. advising of what people can buy at walmart, amazon. at are getting fish heads
$4.25. i am talking about the charms business. your mother's day charms are $55. isn't the fact of the matter that you have got expensive products in one of the biggest markets, america? >> we are what we call affordable --. what you have to recognize is that even though our volume is very big, we are the biggest manufacturer of real jewelry in the world, we still work in the materials of gold and silver. in that area we are definitely affordable, which is very much recognized by our customers. manus: quality goes with that. that is about the brand. i get that. i understand the brand. talk to me about your asia business, because that has dropped in the first quarter. a drop of about 9% compared with last year.
what is going on? what is the reason perhaps behind a slowdown in your china sales? itselfe look at china in , we had a growth in the quarter of 16%. you can say by nature that could be a big number. our expectations were definitely higher. we dug deep into the chinese business and also made a plan, which will come into force during the next three quarters. we are the most recognized jewelry brand in the world. being that comes with the territory of people trying to sell your products in the gray market. we have seen quite a pickup in the past few months in other people selling our products online, but in other parts of the world -- bought in other parts of the world. that is one of the things that we are addressing. we have increased our marketing spending.
there is an opportunity for us to do even more and chinese market. we're going to do that for the remaining part of 2018. manus: we touched on products and geography. help our viewers understand u.s. retail right now. are we over calling the death of the mall and united states of america -- in the united states of america? >> i think what we have seen in this quarter is a stable development. ything a little bit positive, because we have not seen a decline. we are very happy with the stores that we have in the u.s. market. they are all profitable and we are placed in the right malls in america with our 380 stores. while you can run a really good business in the u.s., but clearly what you have seen over the past quarters is that we have seen a slowdown in retail. it was flat this quarter.
we will see how it develops. for us the important thing is really not so much looking at how the market is doing, but what we can do in the market. any consumer around the world is very focused on new products. for us, adding a lot of newness into the market in 2018 is one of the things which we expect will help us improve in the u.s. manus: we wish you well taking the fight to amazon. that is the ceo of pandora. the retail consumer is alive and well. how are the markets looking? anna: let's have a look at what we see in the turkish lira. our exclusive interview with the turkish president has moved the turkish lira. we have seen a weakening in the currency, as he has said he will play a bigger role in monetary policy if he wins the next election. manus: we have a little bit of
♪ guy: good morning, welcome. you are watching "bloomberg markets: european open." we are live from our european headquarters. matt miller is off today. cash trading is less than 30 minutes away. ♪ the lira hits a fresh record low, as the turkish president tells bloomberg that he intends to tighten his grip on monetary policy if he wins next month's election. credit