Transcripts For BLOOMBERG Countdown 20150515

Luxury brand moves in on the contemporary art world, we speak to the ceo. Mark hello, welcome back to countdown, i mark barton. Also coming up on todays show the business of sports. England cricket player needs protective equipment. Questions about the decision to leave out Kevin Patterson from the series. Caroline lets bring you uptodate on the Market Movement or if the u. S. Dollar is headed for its sixth weekly loss. The Federal Reserve will delay raising Interest Rates. Oil pared its rally after nine weeks of gains, futures are sliding as the price of opec and american shale drillers is set to increase later. Chinese stocks are sliding since the Central Bank Cuts and Interest Rate at the beginning of the week. Lets get to shery ahn and hong kong. Sherry good morning anna chinese stocks are falling by the most in a week. The shanghai composite is down one and a half percent. We are seeing increasing concerns about a liquidity tie up in china. We have a number of ipos here not to mention concerns over Economic Growth. Holding onto gains of half a percent. Asian marks markets are a bit mixed this morning. They are swinging between positive and negative territory. There is a Strong Performance out of the u. S. With the s p 500 closing at a record of 1 . Microsoft and apple leading. Some markets in asia are losing ground throughout the morning. Korea is down half a percent, after the central bank past the key rate study at 1. 75 . Singapore is trading flat. There is a Property Value or Property Company has profits drop. The nikkei gaining 7 10 of a percent. They do not think further action by the boj is needed currently right now. The bank will continue easing until that 2 inflation target is achieved. We had data out of japan this morning showing that ppi fell into negative territory in april, following a 2. 1 . That was in line with estimates. I will take you to some of the biggest movers in japan. Today we had dentsu gaining. Rising 20 . Mequon, plunging more than 12 . That is after they slashed their threeyear profit target. Showa shell down 5 . That is despite raising profit forecast at 41 . Investors not so convinced. Anna shery ahn in hong kong. Manus netflix is in talks with a Chinese Media company. It almost his 6 billion. The answer is in the headline 6 billion market and 2 billion people wanting to look at videos. Caroline the growth is exponential. This is why china is so attracted. Why would the maker of house of cards want to get into the Biggest Country in the world . It is the biggest with 1. 4 billion people. It is expected to triple in the next three years. Thats market evaluation is expected to triple. They could be up to 14 billion by 2018. The discussions are ongoing with a number of Companies Currently in the country. Watts to media is one of them. Netflix we know whats global domination. They want to be global by 2016. Earlier this week, chief continent content officer was saying they intend to try to figure out china and how to get there. Broadcasting and media in general, very regulated in china. Does that have a bearing on how they choose to execute the strategy . Caroline that is why they have to go in with a partner. We intend to go in with a partner, in fact they cannot without. It is essential, china controls the licensing. There are seven companies that have a license to broadcast television over the internet in china. One of them is last to wasu. They want licenses across the board. We are not just a tv consuming company in the u k, neither is china. They want to get into mobile phones and computers. You name it, they want a license. Mark censorship of contents how will they tackle that . Caroline i dont think they have figured that out. The regulations are stringent on chinese authorities when it comes to content. Since april, if you want to show madman and simpsons. A cannot show entire episodes until all of them have shown. Until the season has ended, you are not allowed to broadcast. They are coming down more quickly. Episodes need to be handed in. They need to check for violence sexual offensive issues in it. The Ruling Communist Party could say no. That is going to be some thing to navigate. House of cards is brilliant. A few episodes may be deemed offensive to the Ruling Communist Party. Anna a lot of navigating to do. Manus in the words of frank underwood, democracy is so overrated. Lets turn our attention to greece, the officials continue to negotiate today with the imf and the euro creditors. The latest round of talks started yesterday. This week greece made a payment of 750 million euros. It had to dip into the imf reserves to do so. The nation also slips back into recession. Varoufakis says yesterday he wishes his country had never joined the eurozone. A varoufakis make no mistake, this is not the statement that i wanted. I wish we had never entered this monetary unit. I think deep down all Member States of the eurozone would agree with us now. It was badly constructed. Once youre in, you do not get out with a kiss that without a catastrophe. Manus imf director and the ecb president spoke at a panel at the imf headquarters where draghi defended his qe program. Draghi faced with unprecedented decisions, the ucb ecb has gone through a. To deliver its mandate. These measures have delivered to be potent, more so than people anticipated. We increase confidence and economic prospects to capitalize on todays extremely accommodating finance committees. Mark barack obama promised leaders of the persian gulf that the u. S. Would come to their defense in the case of any external attacks. That was at a meeting at camp david. He also said any deal with iraq would prevent it from giving getting a bomb. Elliott has more. Have gulf leaders concerns been eased . Elliott it is hard to know what more they couldve expected. They were not expecting any ironclad treaty of mutual defense or anything. Given that was not going to be on the cards, it is hard to know what more they couldve expected. President obama was there to tell them he had their back and he would help them deal with issues. There was also john kerry, treasury secretary, and total chief all there to try to do it inform americans and the gulf our allies, but also to tell them and show them they will enable these countries to deal with the Islamic Republic themselves. President obama the key purpose of our partners is to make sure they can deal with iran politically dramatically, from a position of strength. Elliott in practical terms that means more weapons. The difficulties in that part of the world are further of were further underlined yesterday. When a singapore flagged vessel had allegedly caused the damage to an iranian oil rig. This is the third time i ran has aggressively tailed a ship in those waters off the gulf. Things could get a little bit worse or more harry the next week, or may 20. An iranian vessel is planning to dock in yemen to deliver humanitarian aid. It is being blocked by the saudis at the moment. That could result in friction at friction. Things could get more concerning in the persian gulf. Mark Congress Passed legislation that would review any final nuclear deal with iran . Elliott this is the Iran Nuclear Agreement review act. We talked it passed by a wide margin in the house. It will now go back to president barack obama. It means that if and when secretary john kerry reach a final agreement with iran and their Nuclear Program at midnight on june 30, it will go to congress to be reviewed. They will have 30 days in which to review any final agreements with iran over the Nuclear Program. They will either say yes or no. Mark elliott, thank you. And girl top stories on bloomberg. David cameron is set to meet Nicola Sturgeon in scotland today following his election victory last week. The u. K. Leader will underline his commitment to pushing the scotland beltre parliament. It would make government in edinburgh responsible for 60 of spending. The nato minister discussed the organizations response to russian russias attitude towards neighbors. A video emerged of some of the western alliance swaying and belting out lyrics to lionel richie. Barclays maybe find for Interest Rate rigging. They say it u. S. Prosecutors will stop short of a deep guilty plea. Israeli Prime Minister began his fourth term in Office Without naming a foreign minister. He opened a latenight session with a acknowledgment that his government needs additional members to thrive. Pimco says it will close three active stock mutual funds and focus on investment strategy. The chief executive officer will leave and the company has no plans for a replacement. You can get more on the stories at bloomberg. Com. Mark coming up, growth in europe, could the economy be stunted by a global slowdown . We will talk about that after the break. Manus our next guest says significant Global Growth is affecting everyone. The. 4 figure outperformed the u. S. And the u. K. For the first time in a number of years, your concern is the composition, the breakdown of the individual country. That is right. If you look at the slugger of extra cash eurozone consumers have had over the past couple of quarters,. 4 percentage is disappointing. We were looking for. 6 or. 7. Although we have not had the full composition, it looks like slow exports, particularly in germany. That is part of the reason gdp fell short of first quarter. Anna the Global Economy is the Global Economy, that structural changes in the eurozone, that is in the control of some of these governments. Should we read something more positive into this . Tom it was. We need we seem to be the bearer of more bad news. If you look at what is happening in france and you look at the sectors growing in the past few months, it is the sectors most heavily reliant on cheap energy. The Old Industrial sectors have been rebounding robustly. That hardly speaks of sustainable recovery among energy prices. We think that is less sustainable in france than we had hoped. Manus the sustainability of the recovery of the eurozone. Are you comforted as a economist by what draghi said yesterday in washington that qe would be implanted in full. Does that balance your concern . Tom we think that is a key reason why the euro has sunk. It is appreciated it little bit in the last month, the euro is fundamentally at weaker levels than it was six or eight months ago. The promise of full implantation of qe is the key assumption of that respect. It is good that he reminded markets that that will be the case. That underpins the euro icon current levels looking ahead. That will be key to export prospects to the second half of the year. Manus the periphery of europe is export dependent . Tom the key for german exports into emerging markets, in particular with japan. Germany is key for so much of the rest of the eurozone. Mark are you buying into this reflation story that is being painted by some to explain what is going on in the bond markets . Tom i am skeptical. If you look at the core inflation readings over the past few months they have been stable in the eurozone. 6,. 7 . That is the same level they were at a year or two ago when people were talking about inflation fear. I am not sure that there is a real reflation story going on. Anna people are looking at oil prices and saying inflation is happening. Tom in oil prices, energy costs. Fundamentally the Pricing Power that households have and the labor market and negotiation wages, that does not seem to be recovering. Manus i saw an article government assesses over deficit reduction. Governments that obsessed with physical rectitude is a bigger problem. Would you agree with that . We are all dying or hoping that the euro tanks, not a great scenario. Tom if you look at what countries are doing in the eurozone, spain over the past few years ago two years the turnaround in business investment, these are positive messages. Some of the countries in the eurozone need to take a look at what spains government has done. Companies in france and italy might have more optimistic prospects about investment and job creation. Anna we are seeing the jobless figures come down in spain. Tom the Unemployment Rate has come down by 2 . Wages are not going to rise for quite a while because there is slack in the labor market. Households seeing their job prospects improve, they are worrying less about job security because unemployment is going in the right direction. That is positive. That is something that should be more keenly understood. Mark varoufakis said he wishes they had the track mark, and not mean he wants that. Tom it is a bit like when you asked him for directions, he said i would not start from here. Mark will he get his the little message . Might he get the drachma . Tom we saw they made their imf repayment earlier. The Debt Repayment is becoming more onerous. We are running into the. Of the year were greece runs a cash deficit. Figures will become more difficult before easier. There is going to need to be an agreement with new net financing if greece will remain. Anna are they moving at a unbelievable slow pace . We saw overnight that the greek government is dropping objections to the asset sales by external creditors. They are Still Holding firm on pension changes. Is there some sign of progress . Tom these things happen at a almost glacial pace. It is politically difficult for them to reverse pledges. It is clear that the greek population as a whole once to remain in the eurozone. I think that is the key test by which they will be judged. Manus when you follow some of the economic things that happen here in the u. K. There is this hiatus in terms of what is going to happen industry is not delaying at the moment. As we wait for the grexit referendum, it will have substantial impact, wouldnt you agree . Tom we think whether or not the u. K. Stays within the eu is a question for u. K. Voters. Mark carney is right, what businesses want to see is certainty. In that context, it is possible the conversation between the u. K. Governments and partners is starting. In addition, it is difficult to see this question would have gone away had the outcome the different. In fact it could of been an extended area of greater uncertainty culminating possibly in the next election with a more stark and divided electorate. Mark where are we in terms of inflation rp. Cutting growth forecasts. Middle of next year is where the market is . Tom the key reason why the bank of england cut its growth forecast does seem to be an increasing sense of realism. Growth will be slower largely because we are entering a. Of slow growth. We will get back to capacity about the same time. Mark thank you. Manus join us on twitter. I am going to do did you picks digi picks. Well talk more about that later. Still to come on countdown, the luxury giant product prada, he says they have seen a renaissance of luxury goods, that is a conversation you do not want to miss after this very short break. Back in 2. We live in a pick and choose world choose choose choose. But at bedtime . Why settle for this . Enter sleep number. Dont miss the memorial day special Edition Mattress with sleepiq technology. Sleepiq tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow now we can all choose amazing sleep, only at a sleep number store. Save 500 on the memorial day special Edition Mattress with sleepiq technology. Know better sleep with sleep number. Welcome back to countdown. Lets check a on the dollar. Week five of the decline. We are flat now, down 1 8. This is the fifth the week of declines, the longest losing streak on the dollar since october 2013 a. Theres only one other currency doing worse than this stand is the new Zealand Dollar. June 5 is possibly the next potential day for a bit of fireworks in the dollar sentiment according to bnp paribas. The consumer comfort outlook is the lowest since march. The forwardlooking review of how the economy looks in the u. S. From the Bloomberg Consumer Confidence Index is at a fivemonth low. The dollar is absolutely on a momentum undeniable. Its on the downside. Check out the malaysian ringgit. It has overall been strengthening, as you can see, over the past 30 days. Then momentum continues. Better than market expected and the estimate was 5. 5 percent, dollardime. That complex, if its not the new Zealand Dollar the aussie dollar, the malaysian ringgit, keep an eye on the pound. We are back to flat 157. 74. I sent this out on twitter. This is your next bus stop for dollarsterling, 1. 5815. The last time it best that level was back on september 9 and the last time it managed to burst through that level it went on to rally a further 10 . 1. 58 115, mark. Mark netflix is in talks with a Chinese Media company backed by jack ma as it tries to break into the online video market. Netflix has held discussions with companies about forming a partnership in the Internet Television network aiming to be nearly global by the end of 2016. A purported buyout of Cosmetics Firm avon sending the Cosmetics Company share on a rise after it turned out to be a hoax. The filing was ptg Capital Partners sing it was offering to buy avon for 18. 75 per share, three times what it was trading the day before. Toshiba risks losing its place in the nikkei stock index as it works to quantify the cost of an accounting mess up. They are racing against the june 30 deadline of when the deadline will be reassessed. You can find more on that story at bloomberg. Com europe. Anna new ways of renting office space or making an even easier for the socalled boiler rooms to dupe investors before disappearing without a trace. Here with more is caroline. How much are we talking here . We are talking billions. We thought these sorts of crimes are formed in the city of london were potentially done by banks but there are actually con artists out there area and 5000 british investors so far have reported losing 1. 7 billion pounds and thats just in one year, 20132014. This is an enormous scale of smallscale swindling. These cold calling con artists are cashing in on serviced offices. The way you can earn responsibility. You get your mail redirected, your phone calls, all for 105 pounds per month or you can sign a lease to occupy a physical office. These serviced offices, we are seeing more and more demand. You got tech financial appetizing hobbit. We have seen rents in terms of leases being signed, 840,000 square feet double the amount signed the Previous Year and some of that demand is coming from these boiler room dupes. Mark whats being done . We are seeing that crime does not pay. People are getting found out. Five men were sentenced to all in all 20 years in jail combined for what was called the number one jims Company Selling colored diamonds grossly overpriced. They were jailed for selling diamonds at 30 times their true value. 1. 5 million is how much they managed to take before being found out. That is the average of what the hoaxes managed to get. Haircut getting Contact Details buying them from around the country, usually older people, retirement savings, and reading from scripts. They are telling people how exciting the opportunity is. Anna there are efforts on u. K. Media to warn people about this. The warnings are starting to get louder. This is what the London Police are trying to crack down on. 16,000 fliers were handed out operation Broadway Task force. Theyre trying to raise Public Awareness for these scams and they are doing spot checks particularly in these Service Offices run by the likes of regis. Do you got to fill out forms. You dont just let anyone move into our offices. They take it extremely seriously to ensure their estimates are bona fide. You need a photo and a proof of address but sometimes they get a little lax not just regis. We are seeing checks being done in westminster, canary wharf, hopefully raising awareness to stop 1. 7 billion per year. Anna thank you. Manus lets shift gears and look at the luxury industry. We sat down with the protestant year. The fashion giant opens its new its not going to happen, is it . Its early in the morning friday. We get excited. Lets talk about the new exhibition space. Everybody felt at least we europeans did, that we needed to find a new identity. In italy, we had the urge to revive made in italy not so much as a product but a cultural asset. It should not only refer to cultural products. This new awareness prompted cultural sponsorships also from other brands. Mark someone who knows a thing or two about marketing herself, Kim Kardashian, has extended her personal brand into the mobile gaming app. She told us a bit more about the game and how its ranked in 95 million in revenue in nine months. You play on your journey to make it to the alist in hollywood and do get to do these fun challenges on the way, photo shoots shopping kind of like what you would assume my life are what a celebritys life would be like in hollywood. Shes a mentor for the player. Who should you work with . Who should you date . How do you get it done . My real hair stylist, my real makeup artist, my real friends. I try to make it as lifelike as possible. When im on vacation, they can go to that same country, city, where the same bikini that i wear. It is simulated to my real life and we spent a lot of time making sure that its really accurate. Mark Kim Kardashian there at the Bloomberg San Francisco office. Anna join in on the conversation on twitter. annaedwardsnews. Mark looking at the new director of a cricket and his controversial decision to overlook Kevin Peterson for this summers match. Stay with us. Manus these are the Bloomberg Top stories. Set to buy a 90 stake in the British Fashion retailer new look. This would mark the first change in their ownership in more than a decade. The bank of korea has its key Interest Rate unchanged at a record low as policymakers way sign of a pickup in domestic demand. Rising Consumer Debt and a slump in exports, helping a sevenday repurchase rate of 1. 75 . Gold held near the 12 week i. Headed for its biggest weekly increase since january. Gold held near its 12 week high. This will hurt the dollar and spur demand for alternative asset. It is set to climb 2. 6 this week. Indian Prime Minister Narendra Modi spent time with the chinese president part of his trip to the country. He has said the two leaders discussed several issues including ways to enhance india and china as the two seeks to boost cooperation. Mark my attention turns to english cricket ahead of the Summit Series against new zealand and australia. Events off the field of dominated the headlines after new director of cricket Andrew Strauss sacked peter moore and told the leading run scorer peterson he would not be considered for the summer tests because of trust issues. I caught up with about them in ian bell who scored 7000 runs for his country. If england could replicate the success the team enjoyed against new zealand in the summer 2013. New zealand is one of the top teams. Its exciting series coming up. Its going to be difficult. We have to play far better cricket. It will be a good test. Mark english is 10 and three to win this series, australia oh 11 to four odds. As it that tell us about the gulf between the two sides right now . It says a little bit of may be where we are. Australia has been fantastic and all forms of the game. They are very stable in the minute in terms of whats off and on the film. Weve been a little all over the place. There are a lot of distractions. I think it is a pretty fair reflection of where we are. In my time playing in england against australia, ive been on both sides where we have been favorites, and the dogs. It goes back to 2005 when people did not give us a chance and through good leadership with michael horn and amazing performances along the way, we managed to win that series. I dont think being in the dogs is a bad thing to be. Mark you mentioned distraction. There is no greater distraction than Kevin Peterson. Hes essentially been a distraction on and off since 2012. You are one of the leading players, most respected. How difficult is it when its the off the field things that are taking center stage rather than on the field things . Part of being i suppose a sportsman in england and a cricketer is being able to deal with the media, issues off the field. As a senior player we have a young group of players who may be have not been through this before. This is our responsibility to make sure we are winning against and performing as a team. Thats what it boils down to now. We need to win this against new zealand. Mark is there a trust issue in the changing room . It was hinted at by strauss. I dont know where andra specifically was coming from with that comment. Im sure we will sit down with strauss as a team and he will go through more in depth where he sees us wanting to go forward. I think its very difficult. We dont know a lot of conversations that happened for graves himself and kevin. Mark if kevin scored some runs, which he did this week, a chewable century he would be considered. It seems as if that was not the case . Graves is the guy who can answer that question. I was not involved in a conversation. If youre told to go score runs and then you will be considered, you would expect that to happen. Its difficult from the outside because we were away on tour with those conversations happened. Those will carry on for a while still. We have to make sure when we look towards next week we win that game of cricket and we allow the other stuff to control. Mark he will be the coach longterm. Could england really expect to entice the best coach in the world if he cannot choose the players he wants . Is that a risk . Is that i worry . The england coachs job is a huge job in cricket. If not the best then one of the group of Young Players this coach will have to work with is as exciting as any team you can have going forward. In all forms of the game theres a lot of talent coming through. Also on the test matches coming up now, the test side has been more consistent and within that there are some serious players this team more this coach would have to take the team forward. Mark who could it the . Do you have any thoughts on who would be top of the pile . As a young lad watching Jason Gillespie enough on that side hes one of the best cricketers of his era. It be great to be able to pick his brain on cricket. Im sure he would be a great candidate. Im sure Andrew Strauss and the board are looking for the best person they think you can take this team forward in the immediate future. Mark do you have sympathy for peter moore . Andrew strauss said he would expose throughout strategy intact x. Was that the case . Was he lacking . As well as players, you have to take responsibility as well. We did not perform as a group as well as we probably should. We let down in that regard as well. Strauss made that decision, that call. Im sure he will be set there thinking if he would have had more time maybe could have gotten things have exactly he wanted them to be. Mark do we need a nonenglish coach . Why are they not been talked about as potential successors . Its a good question. We should have more candidates out there in england. To me, im not too bothered where they are from. We just eat the best bloke for the job to take this a group of Young Players back to the top of the world. Mark high hopes on your shoulders in the us trillion series. How do you cope with Mitchell Johnson . He was the scourge of the english tied a couple of years ago. How does england cope with johnson this summer . You will be at the top dealing with him. Hes one part of their armory that is particularly strong. He has a good pace. Theyve developed into an incredible bowling unit. Start as well. Theyve got a lot of depth and we will have to play well. We will be tested not just against australia and new zealand, but there was a major difference in both teams and if we play better this year, we will have to get the gap closer and hopefully have a chance to win the series. Mark you scored 7003 hundred and 11 test runs. Kevin peterson is 8000. Is it your ambition to overtake him as number one on the alltime list . Its not my ambition. Ive enjoyed playing 10 years of cricket with him in good partnership. For me its been about winning the game of cricket for england. Within that, if i can contribute, thats what i look for these days. I dont set to many targets in terms of numbers. I just want to win as many games as we can for england. Mark anna join the conversation on twitter. Bbking is one thing being trending on twitter. He has passed. He was 89. He died in mississippi according to the ap newswire. He ran some very notable blues clubs. I have some fun times in the one in memphis on real street. Here is video of bb king and president obama. He has died at the age of 89 from mississippi and was living and died in las vegas. We will take a short break. Coming up, a look at famous stories from the bloomberg Digital World. Mark shall we look at our favorite pieces from the bloomberg Digital World . Manus this is written by sarah jones on bloomberg. Com. It was his last address as ceo to the shareholders of credential. He faltered several times during his speech at the Queen Elizabeth ii center. He thanked everyone. Mark tucker will take over and he referred to his mother who basically said and all last specs of life, its not how you start in all aspects of life its not how you start its how you finish. Anna i am on devo luwatch. By which i mean devolution. Jim oneill taking a job in the u. K. Government. We heard that the last 24 hours. We have a piece on that. Jim oneill has many connections with manchester, the poster child for devolution activities taking place in the u. K. David cameron says he will be talking about scottish plans. Mark the young chap played for yorkshire has never played for england before but he will open the match. A lovely piece of info. He will have 666 on his shirt because he is the 666th player from england. Manus i watched the omen when i was younger. Anna more from athens when we come back. Mark asian equity markets closing high but china retreating from rate credit rate cuts and recent gains. Manus after rising for nine weeks in a row set for a rally. Anna the ecb president says his Stimulus Program has been processed and he will carry it out in full. Mark Netflix Online china plate, seeking a partnership with a business backed by jack ma. Anna the 14 billion luxury brand product moves in to the contemporary art world. We speak exclusively to the ceo. Manus a record rally after nine weeks of gains. They are just turning a little bit lower this morning and supply from opec and american shale set to increase. Mark cutting gain since they reduced an Interest Rate in half. Lets go over to hong kong. Shery ahn has all of the stories today. Good morning. What you have for us . We are seeing chinese stocks at the lowest level in one week and now. Almost half of their gain since the cut. Shanghai composite down 1. 2 . Utility and Energy Stocks leading the decline. Their investors are increasingly concerned about a possible the quiddity tie up in china. We have several ipos here this month. Of course concerns over Economic Growth also growing in china. Investors are kind of waiting to get Housing Price data for april due out on monday. Managing to hold onto profits up 0. 5 but the hand saying hanseng shows it is now headed for its fourth weekly decline. Asian markets overall looking a little bit. It was swinging between positive and negative territory. It was slightly gaming right now. It is slightly gaining right now. The s p 500 in the u. S. Closing out a record last night. The nikkei ended the last session this week up 0. 8 and Central Bank Governor corrode the tsonga does not think further action by the boj is needed right now. Central Bank Governor kuroda saying he doesn not think further action needed. They announced fullyear profit rising 20 . They also raise their planned dividend. Nikon did not have a good day ending 11 lower there after they slashed their threeyour profit target. Sharp closing lower 7 thereafter they posted a 1. 9 billion net loss more than seven times the companys forecast. They are also saying that they will cut 10 of their global workforce. That stock has been down three consecutive days. Singapore currently trading flat at the moment. I want to show you one stock today which is declining 6. 5 . They are a Property Developer and they operate casinos. Profit plunged in the last quarter. Gaming revenue fell 26 . The stock there taking a hit. One market today that reversed earlier gains ending 0. 6 down after the central bank kept the rate steady at 1. 75 . Back to you. Mark shery ahn in hong kong today. Manus they get officials continue negotiations with higher euro area creditors. Talks started as there is pressure an offense to avoid default. This week saw greece make an on time imf tame it but it had to dip into reserves to marcus on the ground in athens. Were seeing a variety of comments come through. Where are you . Whats your take . Were kind of read a phase now with all the drama at the beginning of the week where you just get your heads down, the socalled Brussels Group of officials from the finance ministry and the officials formerly known as the striker. They are meeting formerly known as the troika. We have statements from greek tv channels saying they are dissatisfied with how much progress has been made so far. Paul thompson, the European Mission head, reportedly briefed the imf that they speak with the officials around the table but they dont really know how much political backing they have at home. The former troika dont really get to speak with ministers. In terms of headlines, there might be a few days of radio silence as each side tries to see how many more concessions they can wring out of each other before a final deal. Manus getting that final deal done its a question of the witch redline are the greeks prepared to give up on. I think anna was mentioning earlier there is some movement in terms of asset sales in terms of the ports. Its also pensions are the absolute absolute red line. Pensions in labor market reforms. If you hear a greek official speak about it, they fluctuate about how broad or narrow the red lines are. For example, anna mentioned asset sales that has been one that is less so now. If you get Something Like Social Security reform, the finance minister yesterday and a speech said we absolutely agree the Social Security system needs to be reformed. Its not sustainable as it is right now. It sounds like a big move towards compromise. It has been an issue in the past where we had convergence. On the other hand, its one thing to say yes, we agree the Pension System needs to be overhauled. Its another thing to agree with your creditors how it should be overhauled. Yes, this is definitely one of the key red lines from the greek side as well as labor markets something the imf feel strongly about as well. Manus marcus lets see what the weekend brings as well. Marcus bensasson thanks. Anna sab miller will require acquire meantime brewing. This would go a long way to describe why this is an attractive offer. We have seen these brewers talking about the rise of craft beers. Volumes of beer sales at meantime grew by 58 in 2014. That out pace by some degree the u. K. Beer Market Growth of 1 . If you are looking for growth in the beer sector in the u. K. , craft brewer rate seems to be where you need to be. Eight minutes passed 7 00 a. M. Barack obama promised leaders of persian gulf states the u. S. Would come to their defense in the case of any external attack in a meeting at his retreat it cap david. He said any deal with iran over their Nuclear Program would prevent them from being bombed. Middle east editor Elliott Gotkine more. Have gulf leaders concerns still . Has that been eased by the americans . They still have concerns especially about the negotiations with iran. They are convinced it will deal with iranian sanctions being lifted. They will become more powerful and will be better able to metal even more in the affairs of its neighbors. They are concerned they will be better able to meddle. They are concerned about the nuclear arms race, the exact opposite of what the president is trying to achieve. This is short of some kind of ironclad treaty of mutual defense, which would never be on the table. Its hard to know what more they could have hoped for. President barack obama bringing up the big guns, secretary of state john kerry, energy , and others to reassure them that america not only has its back but america will enable them to be better able to deal with the Islamic Republic. Kick purpose of bolstering the capacity of our partners is to ensure that our partners can deal with iran politically, diplomatically, from a position of confidence and strength. The need to be able to be in a better position was outlined yesterday when iran fired across the vowels of bows of a boat. They have either fired across or aggressively tailed vessels in that area. Yesterdays incident was ostensibly because the singapore vessel had allegedly damaged an iranian oil rig. They retreated safely to emirates waters. This is one of the biggest points in International Shipping and things have come to a head on may 20 when and iranian aid ship is planning to dock in yemen. There blockaded by saudi vessels and that is perhaps causing some concerns. Things could perhaps get a little tense next week when that comes around. Anna Congress Passed legislation in the u. S. That will let it review any final nuclear deal with iran. Give us an update there . Thats right. Passing by an overwhelming majority, the Iranian Nuclear review act was passed 40025 in the house. Now it is back to president barack obama to sign into law. If and when the u. S. And the other five world powers negotiating with iran reach an agreement with the Islamic Republic over its Nuclear Program, it will then be able to go to congress for congress to review this and potentially rejected if they do not agree with any of the important aspect of that deal. This takes them forward. The deadline for a permanent deal with iran is midnight june 30 and the negotiations are ongoing. We have the preliminary deal. The same time of the deadline that is also when the interim deal with iran to lift some sanctions will expire. That is a kind of hard deadline. They could extend it to try to reach a final deal but that is when sanctions relief and interim agreement is due to expire. Anna Elliott Gotkine, bloombergs middle east editor. Mark netflix is talking with a Chinese Media company backed by jack ma to enter the chinese online video market. Caroline hyde has the details. Whats the potential here . Why go to china . The people in the sheer scale of growth. House of cards and oranges the new black will be entering china if they can afford a deal. The explosive growth of china one. 4 billion people. The market is a worth 6 billion but it will triple in a value in the next three years. It is the sheer scale of growth they want to leap on top of. Tripling of the market value and we understand there are discussions with a number of Companies Including wasu media owned or 20 by billionaire rock star of the tech world in china jack ma. Netflix has global domination in its sights. It once to be nearly global or the end of 2016 and only a few days ago, may 13, chief content opposite was saying we are going to try to figure out china and we will try to figure out how to get there. Manus why do they need to partner . Talk to us about the Market Structure in china. That there is why this is where they are going. You have to have a partner because you need to get licensing. Internet licensing is controlled by the Chinese Government and they hand out only to seven companies so far it have the right to stream tv via the internet. Seven including wasu. Lets face it. Netflix is probably talking to all seven, im sure. The licenses for content, they wanted to be a cross device. You and i dont just watch house of cards on the tv but we want to be able to watch on our tablet smartphone. They need the licenses across platforms. Anna another issue will be censorship. Weve watched a bit of house of cards. Might have a few problems getting through the sensors. Sexual innuendo, rude language. This will be censored. Not only will they have to form a team to get in china but once there, the government can do take whats allowed to be said the government can dictate. Mad men, simpsons, theyre not allowed to air until the entire set of shows, the season has been completed. On top of that, episodes have to be handed over for censorship approval. Violence, offensive language, the Ruling Communist Party can say they are not allowing that bits. We will see what form oranges the new black and house of cards will take. Mark caroline, thanks. Manus lets get you up to speed. South africas Largest Company is set to buy a 90 stake in british retailer new look. The deal would mark the first change in new looks ownership in over a decade. Barclays may be fine for violating a settlement over Interest Rate rigging. People familiar said the u. S. Prosecutors will stop short of seeking a guilty plea. This would come on top of a penalty that the Justice Department is set to announce in the coming days. There has been a probe on barclays and for other banks for manipulating currency benchmarks. Burundi has been hit by weeks of protest against the president ial nomination by the ruling party as its candidate for the elections in june. The leaders bid for another term is unconstitutional. Indian Prime Minister he Narendra Modi has met with his chinese counterpart as part of a threeday visit to the country. Modi said the two leaders discussed several issues including ways to enhance ties between india and china as they seek to boost economic cooperation. For these stories and more go to bloomberg. Com europe everything including sports. You cant miss those. Join us all on twitter. Anna the u. S. Enters a second day of talks with gulf states today. Because the latest on those talks from camp david coming up after the break. We get the latest on those talks. Anna welcome back. 7 21 a. M. In london. The u. S. Has a second day of talks with gulf states today. U. S. Engagement with iran could put a strain with saudi arabia. Lets get more with our guest deputy head of mena at various maple croft. We are seeing that the strains between saudi and u. S. Relations. The saudi king is not there and he sent his son, the ke chief of defense. It is indicative. Its extremely difficult to realistically is the fears of Saudi Arabians and other gulf states. Saudi arabia clearly has some strong reservations about the deal being made with iran. The deal will embolden iran and theres also the issue of sanctions relief allowing iran to become more active and maybe even yemen. Its a big concern. These concerns also could have a longerterm aspect to them. Theres the question of what happens after 15 years when the deal comes to an end. The concern is iran is being allowed to keep its Nuclear Infrastructure to research more advanced centrifuges. It raises questions about how they will respond to that. Mark obama has promised gulf nations the u. S. Will come to their defense against any external attack. Is there a sense of distrust after his famous line in the sand over syria . Is there a lack of a belief that the u. S. Would come . Clearly that is the key problem here. The gulf states were looking for more they more of an ironclad guarantee closer to article five of the nato agreement. They did not want to agree to something that would automatically judge them into conflict. What we might see in the wake of this summit is perhaps more arms transfers to the gulf that weve seen a lot in the past. It is a way for the u. S. To t ie its interests to the gulf. It is becoming a larger market for aerospace and it will be a growing trend to enter. Manus mark points out that there are substantive stand to area of agreements. Maritime security, cyber security, Ballistic Missile defense, amongst a list of other things. There are some fundamental Common Grounds and the u. S. Presence in the gulf, will it remain at this level . A problem from the gulf perspective is this is nothing new. They been talking about Missile Defense for a long time they have their own antiMissile Systems that the u. S. Has been a strong advocate for trying to get a gcc Missile System which would work in conduct. If we are just seeing renewed security guarantees, perhaps some more deliveries for fighter jets, more missiles, Missile Defense systems, thats not something really new. The situation has changed a lot and they would like to see something a bit more substantial. Anna its becoming more intense. There are some reports of a more assertive saudi arabia particularly since the arab spring in bahrain. And then in the last few weeks we have seen a more assertive iran taking on ships in a more aggressive way than they would have done before. Are things getting worryingly tense . Is not it has not reached a critical level yet. They were very cautious taking a backseat and the tar was the main activist country in the region and that has changed quite a lot they were very cautious taking a backseat and qatar was the main activist. With the summit in egypt, the saudis put in another 5 billion in investments but its clear they come with strings attached. Egypt being involved in the yemen conflict am a they are reluctant to get involved with the fighting of isis and they find its very hard to say no to the saudi and yemen because of all of the money that has gone into egypt. Mark what about syria . They have put their problems a size aside but there is the collaboration with the affiliate of al qaeda. Its very problematic. You have the front its hard to say if its part of the army of conquest, but its clear they are fighting alongside it. The newish leave we saw turkey qatar, saudi arabia pursue different strategies but now they are taking a more hard line. They have put their support in behind some of these groups and there have been rumors that they will disassociate themselves from al qaeda to cement that. Torbjorn soltvedt from maplecroft. Welcome back. The dollar is just getting a small gain. 93. 50 nine is where we are. The overall momentum is down for five weeks in a row. That is the longest losing streak. June 5 is possibly, you might have to wait until june 5 before you know when the dollar rally is. That is a fivemonth low. The dollar is on a downward trajectory. Asian currencies are getting a little reprieve. Wide growth coming in higher than expected. Oil will stay above 60. It will ultimately have an impact on emerging markets. Flat as a pancake. Look at the volatility. Bloomberg first words are never without an analyst. They are much more capable. That is the 233 moving average. You get back to that level, and we have tried four times of late. If you get to that level, you will be on a river. It could also rally 10 . Sterling certainly the momentum over the last several days. Thank you. Netflix is in talks with a Chinese Company as it tries to break into the market. The Internet Television network aims to be nearly global by the end of 2016. A reported buyout said the companys share price on the rise. It said it was offering to buy it. In tokyo trading after a wider than expected net loss. Sharp has about half employees working in japan. Manus our attention turns to english cricket. It is events off the field that have dominated this week. The english player told Kevin Peterson he would not be considered because of trust issues. I caught up with bell, who scored over 7000 runs for the country and asked if england can replicate the success of the summer of 2013. New zealand is one of the informed teams. It is an exciting series. Its going to be difficult. Its a real good test for us. Manus england attempted to win the series. Does that tell us about the gulf between the sides right now . I think it certainly says something about where we are the last 12 months. Australia has been fantastic. They are very stable in terms of what is on and off the field. There is a lot of distraction off the field. I think it is a fair reflection of where we are. I have been on both sides where we have been favorites where we have been underdogs. In 2005 they didnt give us a chance. Through some amazing performances we managed to win that series. I dont think being underdogs is a bad thing to be. You mention the word distraction, that there is no greater distraction. He has essentially been a distraction since 2012. You are one of the leading players. How difficult is it when it is the off field things taking center stage . I think being a sports men in england and being a cricketer has been dealing with issues off the field. We have a young group of players of players, but also our responsibility is to make sure we are performing well as individuals and as a team. That is what it comes down to as well. Mark is there a trust issue . That was decided by Andrew Strauss . Its difficult to know. Obviously it would be great. He will go through more in debt waiting for it to go forward. It is very difficult to answer that question. We dont know a lot of conversations that have happened. Did you feel that if kevin scored some runs, which he did this week, he would be considered. It seems as if that was the case . I was not involved in the conversation. If you are considered, you expect that to happen. We were away on tour when those conversations happened. Those conversations are going to carry on still. We have to make sure we win that game of cricket and we concentrate on that. Paul will be the coach longterm. Can england expect to entice the best coach in the world if he cant choose the players he wants . Is that a worry . I dont think so. Being a coach is one of the biggest jobs in cricket. In all forms of the game, there is a lot coming through. We have a test team that has been more consistent, and within that, there are some serious players to take the team forward. Mark do you have any favorites . Jason gillespie appears to be top of the pile. Are you a fan . As a young lad watching, you would have to be a fan. He is one of the best of his era. It would be great to pick his brain. I am sure he would be a great candidate for the england job. I am sure andy strauss is looking for the best person that can take the team forward in the immediate future but longterm as well. He was exposed around strategy and tactics. Was that the case . Was he lacking in those areas . As players we have to take responsibility. We did inform as a group as well as we should have. Strauss made that decision and that call. I would have thought he would have more time. That wasnt to be. Do we need a nonenglish coach . Why are they talked about as potential successors why arent nonenglish coaches talked about as potential successors . Im not too bothered about where they are from. We just need the right bloke for the job who can take this group of players back to the top of the world. You have scored some good runs. How do you coach with Mitchell Johnson . He was the scourge wouldnt england lost in australia couple years ago. How does england coach this summer . That seems to be the question. Ian he is one part of the armory that is particularly strong. They have developed an incredible unit. They have got a lot of bowling debt. We are going to have to play well. We will be tasted tested not just against australia, but new england as well. There is a major difference between both teams. If we play them well, we will be able to win the series. You scored 311 test runs. You are not far behind. Is it your ambition to be number one on the alltime list . Its not my ambition to beat kevin. I have been backing him as a partnership. For me it is always about winning a game of cricket for england. If i can have a match winning contribution, that is what i look for these days. I can win as many games as i can for england. Manus great interview. Have a look for that. Were going to take a look outside london. We will find out which cities to watch after the break. U. K. Investors should look young to london according to our next guest. It is set to improve when the devolution comes into force. Stephen jones joins us now. Are you talking about dying commercial property in those places . The real opportunity is region the nation of infrastructure and devolution of power to allow that to happen in a localized and more efficient way that might have been the case historically. We believe that can lead to good commercial property gains. Especially with some of the industrial parts for retail. They are being overlooked by investors. Perhaps were not all able to get into property funds, but there are companies that might be able to play on that opportunity. You have seen that come through fairly recently with the continued Strong Performance of small caps and those that are really involved by the u. K. Economy. The buzz word seems to be greeflation. I was drawn to an article. This is the year of noflation. Does that mean all this talk about reflaiton is overdone . Whats i think you are going to see a series of swings around the core scenario. Its very interesting that we had a deflationary shock. You saw nominal Government Bond yields globally, especially in europe, trade down to absurdly low levels four or five basis points. Over 50 of the marketplace being in negative territory. That was driven largely by following oil. The fear that the ecb might not be doing enough and the continuing falling commodity prices. That is dire expectations have swung the other way now. We are getting a thought about activity coming through a bit more strongly. I think that is overdone as well. You come back to the core, which central bank support is not bad for assets. If you are just looking at oil prices and working out what that is going to do to consumer sentiment, perhaps there is an argument . I think the bounce is significant. It has become 120 pets 120 pence a leader. We are still down a third. It is still very good indeed. Interesting. 100 billion came from oil into our pockets. Are you convinced the drop in oil will make it into the stock market . Retail sales numbers. Counter that idea of reflation as well. I think the signs in europe are a bit stronger at the moment. Perhaps it is relative to expectations. You saw a better overall picturesque french and spanish data. It is reasonable in terms of sales and confidence. The early sign is there will be a mechanism into consumer activity and stocks. Mark a quick word on emerging markets. You say they had their day in the sun. It is midmarch. Is that it . The bounce is just that. It is a structural challenge they face until the end of the year and week commodity plays. That is when a focus on shareholder returns and him and a continued bank support will push investing opportunities. Caroline thanks for joining us. Mark has the postelection u. K. Asset bounce lasted . Coming up. Has the post u. K. Election bounce lasted . U. K. Uncertainty was put to bed. All three charts are year to date. The white circle right there. The index had its biggest jump. The biggest gainers. They were perceived to be among the biggest losers. Things arent looking so rosy. A fall on tuesday with a standout performance after a warning about earnings. The footsie is 1 over the fiveyear time. Ftse is 1 over the fiveyear period. The middle chart tracks the pound against major currencies. It is a weighted index. Last friday it led by 1. 4 . The yellow circle right there. The biggest oneday gain in almost five years. The index rising a further 1. 4 on tuesday. The gauge closed at the highest level since july, 2000 nine. Investors chose to overlook a reduction in the bank of england quarterly growth forecast on wednesday and focus on a potential rate hike in the next 12 months. Lets focus on the bond market. The final chart is a gauge of u. K. Government bonds. Last friday it rose by. 66 . This drop takes the losses over the last five days to two thirds of 1 . During that time the u. S. Bond market dropped and all but two of the eurozone bond markets have posted declines as part of this big selloff in Global Fixed Income markets. A mixed fortune for u. K. Assets since that surprising victory for the conservative party. On the move is next. We will see you on monday. Have a good weekend. Good morning. I am jonathan ferro. Lets wrap up the week and get straight to the morning break. More than five years after the firm started its effort to add stock marking to its line of reform. Drug he is in it for the long haul, defending qe. Draghi is in for the long haul, defending qe. Oil is poised for the longest winning streak and 32 years after rising for nine straight weeks. We will look at the crude price in the morning. Futures higher. Ftse futures up by 19 points. Bond yields coming down just a little bit. Manus cranny, over to you. Manus those equity markets are linked to the move in the bond markets we saw. The Motion Movement between the rest bite is released in the equity rally. The u. K. Had been down this week. The cac is down 9 10 of 1 . It is options expiry day. That is the feet ahead of us