germany is india's biggest trade partner in the european union. up next, the outlook for china. we've got the fed strategy, the latest on europe and what is going on. apparently it is a bit soggy out there. ♪ rishaad: let's check on some of the stories making headlines around the world. angie: militants have bumped a police station and armored vehicle in egypt's sinai region killing 14 people. most of the dead were egyptian police. a group that has declared allegiance to the islamic state has claimed responsibility. violence has increased in sinai since the military removed president mohamed morsi from office. rishaad: an attack on the south korean embassy in libya, the ministry saying no embassy staff were injured. at least 40 rounds were fired from a machine gun before the attackers fled. a group loyal to the islamic state said they were behind the attack. angie: 18 years after tiger woods won his first u.s. masters another 21-year-old has claimed the title. jordan spieth remains in control. the texan lead at augusta, becoming the second against -- the second youngest to wea

because european union law cannot do that. the white house security adviser is going to announce that monday. the eu will announce as well. different sanctions because different laws apply. with leaders from the u.k., italy. they agreed on this. got sanctions. they are going to ratchet it up and see how russia reacts. so far they target the inner circle. thehey were talking to european secretary about $16 billion in assets. >> i am sure they are already talking about this. time eight were already -- were actually captured. one has been released. the swedish monitor was released because of medical conditions. there has not been any violence, but that is a concern going forward. that.nks for >> our next guest says if the political conflict escalates he assetpared to change his allocation. joining us is the managing director and head of fixed-income at citi investment management. at what point are you going to do that? things have turned pretty south. how far south does it have to go for you to switch things around? >> perhaps we

>> european is an issue. you don't have a european problem. you have different pockets of debt. we have a confederation issue. we need to see more union, fiscal banking, etc., monetary, and ultimately druggy has the last thing card on the table -- lastately draghi has the laying card on the table. card on theing table. you will be the last card to follow and then these orchids start to pick up. >> that is when we will get you back on again. >> i've been wrong many times. [laughter] >> thank you so much for joining us. >> coming up, india's ruling party loses big as voters opt for a leadership change. >> we are headed to mumbai live next. >> welcome back. trading has begun in india after the election wins for opposition. how are the markets digesting this? >> they have given the thumbs- up. they are clapping loudly for the kind of result that we have seen from the elections. we have surpassed all the historic levels of both these indices have seen. we have broken the last 2008 to january high. from there from now, but a good gain of over 1.5%. november had a record high of 21,321

the european union is becoming presented by many constituent countries. >> we had the election in hamburg and merkel plus party -- merkel's party did not put forward the strongest candidate. the central democrats won by 47%. the anti-bailout anti-euro party picked up their first seat. they have seats. not even -- not an enormous emergence. it is any emergence. >> the broadest measure of new credit in china shows a rise with the stimulus cushioning the slow down. the loans has thanked lending double. an investment fund is looking to london. they will team up to build a business report. it will generate around $10 billion for the economy. the global wave of car recall has spread to korea. hyundai and tia are checking cars for a variety of potential problems. they include hybrids produced at the end of last year that may have a faulty warning. it may be less when the driver stack -- the driver steps on the brakes. >> it is healthier. not ready to come off the medicine yet. the growth of 2.2% out of recession. still below estimates. exports jumped. japan is struggling to boost production. >>

. >> in the history of the european union nothing good has come out of ultimatum. we proceed from crisis to crisis and this is how we improve it. i have no doubt that in the next few days, any notion of an ultimatum will be with drawn. >> there is flexibility in the program and we are open to discuss replacing measures. but, not why taking unilateral actions. it is up to the greek authorities to decide what are they would want such an extension whether they would take up the offer to look for the flexibility in the program. also, to give off the kind of commitments i have just mentioned, which are important to all members of the eurogroup. >> john is here to pull all of the strings together. how serious is this standoff? >> it is getting quite heated. it is very active on twitter. he is here to sign a deal that the french minister signed up as a draft. he claims that was the draft coming forward. it was denied. this is going on behind the scenes. greece says, beside never existed. that is one thing. the bigger picture is that the greece and other ministers have tol

the mayor of london says he will campaign for britain to leave the european union. the decision caused him a huge amount of hard rate -- heart ache. his choice put them in direct opposition to david cameron. the prospect of a so-called brexit is weighing on u.k. assets. lawyer -- ted olson says the order would open a pandora's box of privacy issues. apple is fighting, it night in a long simmering battle between the tech industry and the government over civil liberties. powered by over 2400 journalists euros around the world -- bureaus around the world. talked, lastst we , that wasyear holiday before the lunar new year. that is when things looked dire. it?it sustain let's the jury is out there on this. there on jury is out this. the volatility has been damaging for the market. there has been some internal damage. it is a concern. specific, with regards to the outlook on the fundamentals, my sense is that it is about the central banks. about the fed, which is looking backwards, talking about the employment situation in the u.s. we have global growth concerns. >> what

that's true for the rest of the european union. to point the finger at the greeks and say where are we now. once drag sirks introduced. there was big that said we need fundamental reform and if that doesn't take place forget about me. >> the emergence of the far right parties have a lot of power in europe. that is getting more and more attraction. >> does that change the voting culture? that's a scary thing. >> yes and no. the greek communist party, let's go back nearly 70 years. there was one massive civil war in greece that is hardly known outside greece that started before the second world war had even end. they fought in december 1944. when did hitler commit suicide may 1945. threrp already fighting their allies, the greek communist party fighting the allies and that continued until august 1949. greek communist party gets year in year out 12% of the vote. it means one historic with a pinch of salt. that's why they are positioned in greece, the right wing party. as they get nearer to have having a vote majority in the parliament

ask most people in the european union one reese to stay in as well. there are other countries who have wrong current the. -- current he. -- currency. they have made a list and said you need to improve this. back the threat is otherwise you will be suspended from the current fee. -- currency. how does that work? back they need euros. there will be other problems as well. the banks don't have euros. if you sell red and i sell oranges, we need to barter. we need to issue a new medium of exchange. >> the drop my or the iron use? >> -- dracma or ious. what are the chances? >> it is difficult to say. this could happen. it seems they are willing to come to some sort of agreement which greece must vote on. >> tsipras could have had this deal. the problem is it is in more dire streetaights than before. >> the more it goes on the bigger the disaster may be. >> is germany the villain? >> it is the a pictured as such by a large economy. spain and ireland and finland as well. we should not inc. of it as one country and another. >> a lot of people like the fundamen

was solid, the european union, the eurozone seem to be doing better. it looks like global growth well be renewed once again. >> i think that we are going to have some weaker performances, especially in the european theater. exit, but also because the recovery has been weaker than we thought. tom: angie, it did not seem that were dominated by talk of austerity. the discussions were very much focused on providing fiscal support. and despite the fact that the communiquÉ that comes off the back of this is not binding, we would probably expect governments to get more money in the pockets of families in developing countries. so, those are some likely outcomes of this g-20 summit, angie. angie: can we get any more clarity, tom, on when britain might start official negotiations about is to parch or -- it's departure? tom: that is a question and has been a question for days. here.w exchequer was we spoke to the commissioner in charge of the eu financial affairs. he told us that the timing is crucial. >> it's up to them to evaluate that. it represents huge work

the european union ruled that certain type of data must be deleted. what is going on here, exactly? .e have robert 2007, i believe. >> that's right. towrote in 2007 and referred the ceo of merrill lynch. bbc thatformed the some search links to this article were removed. it was not mentioned and they did not tell the bbc who requested it. >> who could it be? that is the big question. >> they are not revealing that kind of information. privacy or freedom of information that is more important? >> it is hard to know some time. >> it is a quagmire. which one is it? a report aboutis a soccer referee called mcdonald who lied about a penalty he gained. removed. >> i will look for him. >> driving someone. >> couldn't it peaks your interest? are millions of searches -- tens of thousands of searches out there that you may not know about. you would never go looking for it. case, the original entry is there and the bbc has it on the website of stop the biggest search engine no longer has links to it. oryou search other words other combinations of words, it may come up. this is a gray area and th

decision to leave the european union. ues saysastian jacq really doesn't do politics. the pound dropped to a 30 year low and sent shockwaves through the global market. some have indicated that they might move jobs out of the country. and japan's most popular messaging app has lowered the saying thes ipo, hike is due to strong demand and market conditions as it prepares for what could be the largest tech ipo of the year. line is offering millions of shares in tokyo next week after delaying plans to go public two years ago. an 11% jump in profit ahead of a plan to share sale which could be the largest this year. documents filed to the hong kong stock exchange showed net income of $1.9 billion through march 31. goldman sachs, morgan stanley, china international capital, j.p. morgan chase, and bank of america are sponsoring the listing, which could raise $8 billion. a big m&a deal may be in the works in china's financial sector, china international capital court and china investment securities, said to be in early discussions. let's bring in stephen engle. what do we know

the people that are to blame are these people from the european union and the imf. as you can see, i have been here all day. i think that the no vote i think it will get at least 55%. in one hour, we will see. i just want to tell you in greece you have about 40% of the votes and it's 69% no and 31% yes. angie: and here in asia, the first of the markets to respond to that out of greece, it has been a very busy morning across financial markets. david has been tracking all of this from the very start. what is happening now? david: we are at just about the worst part of the day. halftime score, shanghai is up 2%. the rest, small caps. nikkei is down about 2%. north korea, 2%. this is a regional benchmark. i think we have come back to the levels last march. the hang seng index, the last few minutes of trading has not been very good. 3.2% underwater. you look in the water. 4.2%. you close-out these levels, it is just about the worst day for hong kong stock going back to 2011. in shanghai we will be opening up in about an hour's time. look at the blue chips, the large caps

it doesn't go by the european union when it was to do a deal with a european country. it goes to wrigley to that country and that country benefits from that. that goes directly to country and that country benefits from that. when xi jinping was in germany in march, he went to cells per, which is the biggest inlet work. there's a lot of chinese business there. there is this desire for the chinese to open up this new sort of trade route that would go straight into the heart of europebecause obviously is a massive market for china. china is a massive market. >> and clean tech, germany is massive for that. >> there is a car deal. it was merkel looking to expand ins sphere of influence chengdu. if you want to look at this from a u.s. side or trade side, there is a microcosm between clean tech. bickering that happens. through trade between the two countries. generally speaking, we can say to mutual detriment. it is better for you as consumers in terms of social welfare that is diminished by not having cheap chinese goods and is bad for chinese produces where, if they want to

will leave the european union. japanese shares have been weighed down by a stronger yen and oil has retreated. investors are awaiting monetary policy decisions this week in japan, britain, and the u.s. china's economy studied in may in may.ied .etail sales climbed 10% the data suggests monetary doing its job. the gunman who killed 50 people was a u.s. citizen of afghan dissent. --descent. omar mateen was 29 years old and had been working at a -- as a security guard. the presidential candidates have reacted to the massacre with donald trump saying it proves he is right on extremism and hillary clinton calling for tighter gun laws. : it is more than a nightclub, it is a place of solidarity, empowerment where people come together to raise awareness, advocate for their civil rights. reminder thatring a tax on any american regardless of race, ethnicity, religion, or sexual orientation is an attack on all of us. angie: those are the headlines from bloomberg news. let's get the latest on the markets. japan comes back onli

will stay in the european union. a 30% chance now of so-called brexit. china and india it may take a stake in russian to plug ant rosneft budget black hole ahead of the election. >> i'm watching the markets today. risk? what risk? in thel about the rally pound today at the core of these gains we are seeing in the asia-pacific. abovechange rate just 106. as you can see at the bottom of your screen, it has been pushing top endthe high end or of that range. i will flesh out everything for you. i will be back more in a bit. nowe: bookmakers are weighing the chances of britain leaving the eu at 30% with the pound climbing is campaigning resumed after the murder of jo cox. leaders visited the sunday talk economicsle 10 nobel laureates wrote an open letter saying that britain is better off in the eu. tome minister david cameron questions on a bbc television special accusing leave campaigners of misleading the voters. a bloomberg tracker of six posters showed a sharp drop in the leave campaign since the murder of jo cox. support now averages 45%, with 42% in fav

even if it is an element of their union. >> you are right. that is why they've asked greece to come back with more stringent proposals. that is really the key thing. stephen: does this paved the way for a fiscal union? >> i think that's a tough one. that's what germans are talking about. you see the french taking on all these tough reforms. the germans may go for that. basically, the jarman's -- the germans are holding out for a fiscal union. you need to realize that people are enjoying at your cost. if you see the economies getting competitive, it may be a fiscal union. as these things keep happening you are not going to see that happen. yvonne: do you see angela merkel budging or going past the 50% she hopes for? >> i think she fully realizes what happened in russia where we had the german economy which was doing exceedingly well suddenly losing momentum. the last thing she wants is any of these things. the way we discussed before, she is not willing to be steamrolled by a smaller economy. you want to set a strong precedent for other econom

will leave the european union. fallingd in a tailspin, to a 1985 low, where futures doing a 7% drop at the financials brother broad. hsbc, potential and standard chartered tumble in asian trading. welcome to "countdown," everybody. magnus: we are live in

the united kingdom voted to leave the european union. not sure if he has talked about that just yet. china weakening, that is the most since we saw in august. we will continue to watch the headlines coming out. it's go to david, keeping and on the market. -- keeping an eye on the market. david: talking about the need, the importance of keeping the international financial system stable. they do remain committed to reform. equity markets looking like this. not as bad as friday, but not much better as well. equities in most the u.k. and u.s., oil prices are also getting sold it down as well. looking at gold, getting more and more precious every day. i will be back with more in a few minutes. you so much. the markets will be looking for any additional signals on the timeline for a brexit. david cameron addresses parliament today. the conservative and labor parties -- lyrical chaos. -- political chaos. >> we have seen the prime minister step down and no successor has been named. in the opposition labor party, there has been a call for the lea

union. victor, we talked about this for so long now every time that you come onto the show you talked about this and you talk about the experience at lehman brothers and the greek fallout. is this something unimaginable or something that people are expecting? victor: if you remember, their problems started early in 2008. the expectation was that everybody knows what's going to happen. that is what everybody says today, that they know that they will have an -- what will happen and that we can let greece go. when the second or third derivative will happen, they will a -- we did not think of that and there is another pipeline or product affected. that we are so interconnected through various instruments that you do not know the impact yvonne -- impact. coupon: how effective will this be -- yvonne: how effective is this going to be? victor: cash already left. that has been happening for months and months. the question is, what do you do going beyond this point? how do you continue functioning as

the pound has fallen after the most recent full suggest more britain's favor leaving the european union. a survey found 45% of those would choose to leave. another poll had a majority in favor of a so-called brexit. .he race has tightened government might have a bigger problem than slowing growth. the nation's jobless rate maybe three times initial estimates. tripled tot has 12.9%. the world biggest -- has raised prices on most of its delivery to asia and the u.s. saudi arabia has said -- crude is valued at 60%. news.s bloomberg banks are set to decide on key interest rates this week. will any of them move ahead of the fed's decision? joining us is johanna chua. reports a very bad jobs on friday. 20,000 even below the lowest estimate by the bloomberg -- >> it is shocking. the three-month trailing average is still about 116,000. still, it is a big miss. in june for a fed hike is off the table. even july is probably off the table. we have to see how the data pans out over the next couple of months. angie: currency fluctuation in this region today, especially the yen. how does this predica

on the other side, we still need more than 30% of energy consumption and european union. it is related to russia. no burning away from the time of being even if you're safe on the natural gas aside. course, oil prices have been rising as well. is that fall in tandem with the gas prices or not related? not related. you are looking at natural gas and in the u.s. which was a weather phenomenon and the fact we have one of the coldest winters on record is clearly giving price support in a key driver. by the way, think about inventory plunged dramatically in the u.s. and that keeps natural gas is prices up. onferent from what we see the european side. here, what you are going to see if things deteriorate on the political front, the premium dollars-$10ld five for the sm the seasonal weakness we usually have in the second quarter. europe probably will see unchanged surprises along there are no disruptions to the flow on the energy side. really declined quite sharply. does that continue or will we be looking at these levels. an idea of what is going on in a base metals? you need t

in europe as you know the entire european union neighboring countries have entered into a and finding a framework for the future. this effort is mostly done. we are left with france and italy with whom we are in dialogue. singapore itself has come up with a number of rules that should also regulate how clients combine in the region and singapore, and it's the same in hong kong. wax the credit suisse ceo was grilled for about three hours just last week by the u.s. committee. what do you make of his performance, and have you bysonally been approached the department? >> we have not been approached. it's difficult to judge the performance. i think one should judge only his own performance. ambiguity of how they are to be answered i think it did reasonably well. >> a quick lance at the afternoons business in tokyo. we will get the latest on japan's reopening. down.s were concerns about the ukraine and north korea. all that coming up after the break. >> the west moves to iceland. stocks are falling on the news from japan. the work of getting to work. bumper to bumper across asia. reaction t

in the european union. bloomberg will have complete coverage for you. we begin our special programming this afternoon with an extended version of "the pulse." for those of you in sydney, 7:00. it has been a big uk's sports. australia won the cricket championship against new zealand. they beat new zealand 33-19 to win the 40th edition. it is now moved to tokyo next weekend. and for rory -- ferrari won the grand prix, breaking were said he bends' streak -- breaking a mercedes-benz' straight. a lot of excitement in those boards world. ferrari and new zealand getting beat in cricket and the rugby in hong kong. it was the weekend that was a lot of partying.

to me, it's like the european union. you have 40 states or whatever. in one state, you can get things done. if you are running the central government in india, you need to have the states coming behind you and that is a much harder prospect. it has one of the honest populations in the world and that talent needs to be harnessed. >> i think inflation is the key issue. and happens between modi the reserve bank governor is going to be key. he is very much an inflation fighter. he is a bit like volcker was in the u.s. one suggestion i have heard is that -- is clearly worried about how tight money policy is and roger has no ax to grind. will there be some deal done between -- deal than between greenspan and clinton. key.will be >> check and balances that we were talking about earlier. stick around with us because we have a group discussion coming up in 20 minutes. afternext, six months back in the philippines to witness the rebuilding effort. the storm left millions homeless and took away their ways of making a living. bloomberg has been back to see how thi

at europe andok the eurosceptics are now firmly in charge, is there going to be a european union if this momentum, this political will of the people, continues? of statusee a fissure quo? >> no, because i think they all want the money. they want the common agricultural policy. .hey want germany's dole out world war ii guilt still going on to this day in my mind. i think the war is over with. germans have apologized. nothing justifies -- it is over with, it is done. >> you still think the germans are trying to save europe because of that? >> there is a huge guilt complex still. contrary to the japanese, who have not even gone one little step of apologizing, the germans hog in doingle this. i want to add just one point. i think what needs shaking up separately is brussels. i don't know whether this rightist swing is going to cause brussels to get a shakeup. that is all cloaked in the history of corruption there. >> i think there will be a lot more pressure on brussels. we saw last year when they were coming up with the budget that the u.k. skeptics have a lot of sway. they have become more

., but they lag behind other european countries. the meeting that david cameron had with the dalai lama in 2013. angie: china did not like it. david: after that, you saw a freeze. if you look at the top five chinaan union partners, -- britain has the biggest trade deficit. exports going to china. it is something the u.k. needs to address. angie: how is the u.k. doing that? the queen is factoring into this. what the u.k. is doing, they are rolling out the red carpet. one currency china is interested in and that his prestige. he is going to be afforded all of these incredible honors. angie: incredible for china. david: there have been some reports that prince charles will have a tea, but he will not go to the state banquet. he is doing a protest of his own on their position on the dalai lama. but that has not been confirmed. it has not been reported by the chinese. u.k.ould think that the --ulace was in a frenzy angie: how is this being covered in china? david: this is the front page of the china daily, hong kong version of the chines

leaves the european union. the question is whether they will be up to find common ground in these increasingly acrimonious environments. part of the issue is the u.k. itself has not formulated a plan. >> what we have to remember is there is a lot of politics behind this. it is coming ahead of the time when europe is going to have to negotiate with britain over the terms of the exit. both juncker and mario draghi are part of the camp that says the solution post exit is more integration. rosiland: we will have to see whether the remaining leaders will come to any agreement. chin with the latest. we will have analysis of that speech from john claude juncker. angie: breaking news, we have numbersfinal industrial for july. factory output fell 0.4%. on the year, it fell for trying to percent. -- 4.2%. disappointing data set, industrial production dropping more than expected, 4.2%. this follows better than expected machine orders earlier this week. let's see how japanese markets are reacting. here is juliette. juliett

coming up later on the program, overtaking the european union, a dubious milestone. over to beijing with the latest on china's pollution problems. up next, warnings out of australia. we will look at what g-20 officials are concerned about. a bit of equity weakness across the board. " is back in a couple of minutes. ♪ simple take away. financial markets have nothing to fixate on. central banks having their g-20ent policies by their peers have stayed unmoved i do communicate. -- unmoved by the communiquÉ. >> a new norm. there is no inflation at the moment. given that scenario, it means they can look at lifting rates over an extended period of time. i do not think we are going back to those heady levels of consumption. -- heavy levels of consumption. the new norm is about 3.75% rather than 5% in australia. we asked the division director about the other favorite. china and the u.s. and we think the stimulation will continue. we saw some pump priming last week in china. an adjustment on the reserved ratio on the option side. no doubt that the chinese authorities want t

at least according to the minister aheadce of an evaluation by the european union. ,intesaook at unicredit saopaolo. the finance minister in italy saying the italian banking system is in a very healthy position. a lot of effort in increasing their capital. interesting turn of events. italy leading on the banking capital rules. >> thanks. some of have a look at the other corporate stories we are following with you today. win approval to open its first branch in london according to the financial times. a clearing bank in london for the u.n.. -- the yuan. says that fuel cell technology is unlikely to succeed outside of japan. the government offered subsidies of as much as $200,000. any, countriesf would be able to afford it. alibaba's roadshow starts today. executives are meeting investors , hong kong, and new york. he listing may raise $21 billion in the biggest ipo ever. it is scheduled to price on september 18 and make its trading debut the following day. does then alibaba, how offering stack up? takes a look at the biggest listings in the u.s. ♪ >> when tim cook

it also does not serve the interests of the european union. that on september 14, fundamental decisions are made. it is not just a question of making little adjustments, it is the policy in place. >> the u.s. wants a well-organized reception for refugees. this is a key issue in the response so far. in many cases, it is impossible to verify if all of the people are fleeing the war in syria or where they are from or what motives are. angie: joining me now are zeb, david, and the executive director of lpg capital partners. you look at the fed's story of human migration, fleeing syria. are these the headwinds of the global economy we have not factored in? >> i am not sure it is a headwind to the economy but it might affect sentiment in europe. it is a big issue, especially in the core of europe. the sad thing is apart from the humanitarian dimension, this has been going on in greece years now and it is only when it reaches the core of europe that the eu policy awakens to the fact. in that sense i think it is progress because now it is on the table

the european union's case fatality rate is nearly three times higher than ours. but you don't hear that. they don't write about that. they don't want to write about that. they don't want you to know those things. altogether, the nations of europe have experienced a 30% greater increase in excess mortality than the united states. think of that. we enacted the largest package of financial relief in american history. thanks to our paycheck protection program, we have saved or supported more than 50 million american jobs. that's one of the reasons we're advancing so rapidly with our economy. great job. [applause] as a result, we have seen the smallest economic contraction of any major western nation. and we are recovering at a much faster rate than anybody over the past three months, we have gained over 9 million jobs. and that's a record in the history of our country. [applause] unfortunately from the beginning, our opponents have shown themselves capable of nothing but a partisan ability to criticize. issue took bold action to a travel ban on china, very early inde

>> we invite the european union two honesty on the issue of membership. they shall determine their visit for future. will they continue to welcome turkey or not? they need to put this clearly. we shall see their decision and determine our own path. there are elections for some members of the eu, therefore it is very different. we will see if those different types of rhetoric will continue after the elections or not. it is clear what some members of the eu did before the referendum, therefore the eu should determine its future vision for itself before the things can proceed on a healthy path. it should put forth what type of a path it wants to walk on. this nation needs to find out what goes on in their head. did these -- do they see europe as a union of religion, and they need to put it earnestly. if they have the idea that a non-christian company has no place in this union, otherwise there is no place for both sides. --cy: coming up, the fine prime minister tells us about plans to consolidate two of its sovereign wealth fund and created $25 billion giant

>> we invite the european union to honesty on the issue of membership, first of all. they shall determine their vision of the future first. will they continue to walk with turkey or not? we will see their decision and determine our own path. there are elections in some members of the eu now. the rhetoric is very different. we will see of those different types of rhetoric will continue after the elections are not. -- or not. it is clear what some members of the eu did before the referendum . therefore, the eu should determine a future vision for itself before these things can proceed on a healthy path. it should put forth what kind of path and wants to walk on with turkey, or won't. this nation needs to find out what goes on in their heads. do they see europe as a union of religion? they need to put it forth earnestly. if they have the idea that a non-christian country has no place in this union, otherwise there no point in both sides wasting time. tracy: we hear from the finance abouter of qatar consolidating 2 sovereign wealth funds and consolidating a giant. this is

agreementfree trade with the european union. worse withde will be the u.k.. >> we need more vision, less bureaucracy. nejra: it has been a year of transformation. the

, then we should stay in the european union. the other coherent position is to say no, we have said we will leave. that means, as everyone made clear in the referendum campaign, that we would leave the single market and customs union, that we are ready to do that. but having made that position clear, the u.k. would then be, first of all, be able to announce its new u.k. immigration policy and say to our partners in europe that we would like to negotiate a free trade agreement at least in manufactured goods. that is a coherent position. what is not coherent is suddenly to turn around and say we are leaving, which was what was the position of the manifesto in both major parties, who afterward increased their votes, and yet to say at the same time but we really want to stay in the single market and customs union. that is not a coherent position. francine: how do you explain brexit? why did people vote for brexit? lord king: i think there were, there were two main reasons. one is that it was crystal clear that the only way the u.k.

union in order to train more people to reach the one million people able to work in digital. , we are busypany looking for talents in the digital all the time, it is part of my job, recruiting -- it is the biggest part of my job, trying to find talent out there. lacqua: where do you see yourself in five years? yoox-net-a-porter doubling in size -- i see them doubling in size, a growth of 20-30% year, which is what we did last year. and i see myself still innovating and trying to come up with new ideas and also, enjoying all of the talents that i have recruited. me, afantastic for fantastic experience for me to work alongside people who are working here since we began, 17 years ago, many people. from the chief operating office, the head of r&d, many people. we have veterans from net-a-porter, we have people who with them for 10 years and we will be celebrating our anniversary with them. so i feel very lucky to work with such a talented team and that is what i expect in five years, to continue to work with talent to will teach me, and not only be driven. lacqua: if you could change some

that is why yoox net-a-porter's group is a part of this coalition and european union to train more people to reach the one million people able to work in digital, because for the companies, i see our company is desperately looking for talent on digital all the time. and it's part of my job. recruiting is probably still the biggest part of my job, trying to find talent out there. francine: where do you see yourself in five years? federico: i see yoox net-a-porter group doubling in size. as we expect from our strategic plan. we're on track with a growth of 17% to 20% year on year, which is what we did last year. in the first quarter, 19.1%, so good. and i see myself still innovating and trying to come up with new ideas and also, enjoying all the talents that i have recruited in all of these years and it is fantastic to me, a fantastic experience to work alongside people who are working with me for 17 years. many people are working here for 17 years, from the ceo, the head of r&d, so many people have been with the company for a long time. as well as some veterans from net-a-porter, i mean al

hopefully the european union will stay a little bit longer on. and in the case of japan, hopefully a little longer. but the whole point is, we are running out of room there. fiscal had a role, they did it. even at the expense of bigger deficits, they did it. but that again has run out of steam. the question now is structural, structural, structural. and unfortunately, we have measured, we have observed that there is a fatigue for reform, just at the time when we need it more. tracy: on this fiscal deficit point, are we constrained, does it into constraining economic growth when we have deficits where they are right now? we just saw moody's warning on the u.s. aaa rating for instance. angel: listen, the u.s. does its own rating apart from everybody else. tracy: they are special. angel: i always say that perhaps other than the u.s., maybe germany and japan, we all belong to the avis club. you remember when you got to the avis counter and we want to rent a car, and the people have a sign that says, we are number two so we try harder. ok, everybody h

. >> i want to negotiate a free-trade trade agreement with the european union. business and financial leader share their outlook for the year ahead and their insight for changes on the global horizon.

trade union. are just disruptions to global trade flows and passenger flows. can that you are in dubai your straight in the crossfire host a >> there are so many markets. 200-odd cities connected directly between dubai and the rest of the world. if one or two markets are going through a few problems that is an issue but, we are so well spread with so much of the world's population that there are plenty of markets. usually what happens is that the market finds a way to react to these conditions because consumers are looking for value, for good service and i believe we provide both of those. >> you are currently the world's number one airport for international passengers. will that be threatened in your world of protectionism? >> i don't think so. we're comfortably ahead of heathrow which is the number two world for international passengers and 7.5 million ahead and we are increasing that lead every month. if some .5 million through dubai international and the course of 2060 and i think that the lea

union. those threatened global passenger flows. in dubai, you were in the crossfire, aren't you? citieshere are 200 connected directly between dubai and the rest of the world. if one or two markets are going through problems, that is an issue, but we are so well spread with so much of the world population within a very short flight. there are plenty of markets. usually, the market finds a way to react to these conditions. consumers are looking for value, looking for good service. i believe we provide both of those in dubai. >> you are currently the world's number one airport for international passengers. will that be threatened in the new world of protectionism? paul: i don't think so. we are now comfortably ahead of heathrow, which is the number two in the world for international passengers, 7.5 million ahead, and increasing that meet every month. 7.9 million people through dubai international during the course of 2016, and i think that lead will increase because the rate of growth is somet

how the european union performs post-brexit. these things are weighing on markets, as well. the regional tensions do not seem to be gaining a high ranking in terms of investor investor and allocation at this region. yousef: in terms of other recommendations, your conviction calls are focused on kuwait and the united arab emirates. run me through your thinking. >> kuwait is an a strong position at this time. fiscally, they have been prudent with government spending. they have the lowest breakeven level with respect to oil prices for their budget. the demographic position in kuwait is very strong, as well. we have recently seen indications that the kuwait equity market will assume a bigger position in the emerging market indices. that should lead for attention, global attention towards the kuwait equity market at this point in time. yousef: up next, libyan central bank governor warns that nations -- the nation's oil revenues could drop sharply this year. they continue to deal with the chaos unleashed in the spring. this is bloomberg. ♪ ♪ yousef: welcome back. libya's centr

in the custom union. that is the conservative party's protest about staying in the customs union. that is why the talks continue today. of that european leaders, what are they saying about this? the german finance minister and emmanuel macron, both of them suggesting the same thing. the door is still open to the u.k. changing its mind. they went surprised far as to say that they don't think that is very likely. they are not expecting the u.k. to go back on the referendum decision. all that added complication coming from the european commission and their plans around euro division -- euro derivatives clearing. all this adds up to a busy week. the biggest reaction to the u.k. election was seen in the currencies, specifically the british pound. on wherefor his view they are going. >> we think that it really does matter. think itort-term, we is clearly luck. a lot of uncertainty, absolutely, the reality is that there is still quite a bit of uncertainty to go through. what form the u.k. government would take and what form the on the brazen negotiations they would take. a lot of uncerta

may's office called it a vote of confidence in the economy before britain leaves the european union. i got more details from bloomberg's emily horton. >> it is key for both governments as theresa may embarking on the post european union, she sees it as a vote of confidence in the u.k. after brexit. and really for the crown prince, this is his first test on the international scene. can he bring foreign investment into the country as they look towards this 2030 vision to expand the economy past oil. yesterday, it was a political day. they first met with the queen of buckingham palace then came to downing street. we saw him in a bunch of ministers joined him entering downing street. it today is the business day. they are expected to sign 14 deals. it will be interesting to see what companies are involved. it will be interesting to see some of the opposition from government, as well as from parliament. and then progress being the business of ally and security in the region, isn't it? >> it is a fine line for the u.k. government. they want to continue this political and business support w

union is thinking these guys are messing around so much. it's going to be very tough. she has chosen that path. i don't really know why. regardless of the cost of the economy. >> very quickly, what are the chances the u.k. does a full brexit? >> i think the chances are very high. the prime minister is determined to get this hard brexit. i think it is going to be terrible. >> president trump won praise from saudi arabia. more on that next. this is bloomberg. ♪ >> you are watching the best of bloomberg markets middle east. president trump one praise from saudi arabia. went as far advisor as saying the talks could mark and historic turning point. executive editor for the middle east and north africa. extremelye is glowing. i think it reflects a sense of relief that you have in saudi onbia and the wider golf having the administration. they understand their concerns a bit more. points thatthe sore the saudi's felt like they had with the obama administration. they reference the muslim brotherhood. still percolating. they also reference the issu

one guest to the european union. pipelinelk about this to greece and italy. who is paying for that? i cannot hear the entire but there has artie been a feasibility study. theough this is going to be longest gas pipeline in the world, and deepest, stretching from israel through greece and cyprus directly to italy, we have found that this is economically feasible and technologically possible. of april, theng .inisters coming to israel we've already conducted several rounds of talks with the energy minister. conclude frameworks, israel, cyprus, greece, italy, framework. this would be to pay as the way for the east coast mediterranean .as pipeline my vision is that three years from now, we will be able to export natural gas to turkey and six years from now we will complete this pipeline, to supply gas from the eastern mediterranean. to greece and italy. >> and comes to the pipeline, do have a plan on where the money will come from? privatebly it will be a sector project. it is commercially feasible we are to have some ideas. that we have to conclude in the next few months some kind of g