You will believe it is time to double up to 100 times. Some interesting calls. A little bit more down. Equity markets are higher. U. K. Banks are also in focus. Is barclays at the top or the bottom. Provisions trump everything else. Even though your Investment Bank is doing well with revenue up 37 , what youre seeing is down. And the brain of trading. Foreign exchanges havent settled yet. The possibility is they have set aside 2. 1 billion pounds for any misdemeanors proven against them in the Foreign Exchange market. That is an additional 800,000 pounds. We saw a recently a settlement were the ability to cooperate was somewhat frowned upon. It cost them dearly. Bad loans are down. Stock down 1 . You need to date a little deeper on that. What you have here dig a little deeper on that. What you have here is negative Interest Rates are beginning to quit. That suffered. Even the first corner profit rose by 30 . Banks are critically part of the focus. Barclays is undoubtedly taking the lead news. I will sit down and chat with you. It is one of those stories that has done most of the radical work. Lets take a look at some of the currencies. This is dollar sterling. It is turning up words. We had a fairly good run on dollar sterling yesterday. That was days six. The longest winning streak since 2014. It is days seven, and the longest winning streak since 2014. If you like yourself, tweet about your self with your own handle. Manus rk wasnt that yesterday . Sterling, eight week high. The ftse 100 pushing higher as well. The ftse up by a third of 1 . We will talk about that a little later. Twitter tanking. Shares in the social network plunged after the companys results were really early on the social network. Were really early on the social network. Investors flying the coop . Were leaked early on the social network. Caroline it was trending on its own website. We saw a sudden crash. You wiped out 6 billion in the last hour of trade. The market capitalization is just sinking. Look at the chart when you see a reaction to the headlines, which were leaked early. The question for investors, if you are not getting Revenue Growth where you needed, how can you bet on this Unprofitable Company . When you have market capitalization in excess of 26 billion, you have to show growth to persuade people to be with you. Advertisers will come flocking not so much at the moment because if you are looking at sales, firstquarter sales missed estimates. We saw them rise 74 percent. Analysts and investors wanted at least 80 growth in terms of sales. Secondquarter growth is not looking better either. They say sales will rise about 55 . They wanted an excessive 74 . They were cutting their own forecast. Why did they not see this coming . The reaction was brutal. If you dont have profits, you have got to have growth. The new user growth is not where it had been expected. New user growth is slowing across the board. We are seeing it up 18 . We wanted it to be 20 numbers. It used to be doubling. It really cold off. The new features he extolled the virtues on for seven hours. He took to the call trying to focus on how the Management Changes will work, how the new features will work. Why are these features not cashing in . Why are they not luring advertisers . They even say april is off to a slow start. That has got to worry people. Just to add insult to injury, the numbers are leaked early. It seems to be the nasdaqs fault. Celerity is basically a company that feeds off the web portals of the internet of social networks and pieces together information for traders and hedge funds to be able to react. A managed to find the numbers early. They were really good at 3 00 u. S. Time and portman to come until after 4 00. A little bit of a concerning day. Fail comes to mind. You know the story. You get a miss on one of these Internet Companies and people Start Talking about bubbles. There is a sizable risk. 41 . The internet and social networking stocks to the bubble. They are not quite there yet but almost. We are joined by kevin durant. He is a fundraiser. They hold 4 billion pounds in assets. Great to have you with us. Twitter, im guessing you dont use it. They cannot convince people in the same way facebook has this is useful for you. It is useful. I use this as a news service. I dont tweet. This is about valuation. The organization was 30 billion. They have done less than 2 billion with the revenue and havent ever made a profit. Lets say five years from now, lets be generous and give a 30 operating margin. Its not just a case of doubling for the next year. You have to do it for the next 6, 7, 8 years. That is why the results of your survey, internet and social Media Companies are on the books. Manus its why the stocks did as well. In the last year or so, there has almost in a bubble in the word bubble. Been a bubble in the word bubble. Lets dig in. There is a big difference between the valuations in the private sector and the valuations in the public market. I am more concerned with what is going on privately. How are those guys going to exit those investments . This is what happens when you end up with massive inflation. You end up with large rises and bond markets. We are seeing massive evidence at the moment. These wonderful people see an arbitrage. I can build something that looks very similar in the private sector and then sell it to the Public Markets in the future. This is how it goes into real world inflation. The entrepreneurs engage in Economic Activity to take advantage of inflation. Inflation is the dog that hasnt barked yet. I look at history and how the market works. Because of what happens we have this misconception that we will repeat the japanese experience. There are parallels with what happened 20 years ago and what is happening at the moment but there are significant differences. The one i point to more than anything is there are organizations, things that were heavily leveraged in japan. Things that are highly leveraged today are people, and people get to vote. Democracy always wins out. People will vote for politicians who will deliver inflation strategies for them. Eventually the dead in japan got to the consumer. They became abe came on the ticket of i will deliver you from inflation. Kevin is going to stay with us. Our cleese takes an 800 Million Pound hit. We will dig through the Earnings Report after the break. I will discuss a little later in the show. Then how late can rates go . A busy show. Join us after the break. Mark lets get you up to speed with top stories. Saudia lady saudi arabia possibly named his son deputy crown prince. It is part of a rish shuffle as he consolidates power after taking the throne in january. St. Marys has refused a legal case brought against the ceo in egypt. The ceo sent a statement he had nothing to do with the allegations relating to a deal back in 2001. An ejection Court Sentenced the sainsburys ceo to two years in jail. The trader arrested last week for his alleged role in the flash crash will appear this morning for a hearing relating to his bail. He has been in custody and will remain there until the bail is paid. Lets talk barclays. The british bank came up with results in line with estimates. The news came across the bloomberg terminal. Profit is one thing. Litigation of another. Lets start with legal costs. Legal costs. What we have got is provisions. The figure we are dealing with is Foreign Exchange and regulation. An additional 800 Million Pounds for setting the Foreign Exchange investigations. They havent settled, have they . Barclays has not. I think that is what the market has focused on. Another 150 Million Pounds goes into what we call payment protection insurance and border policy, which you never really needed in the first days. I think these litigation costs are going to trump a pretax profit which is in line. I read some of the comments when i came up here. They are really going for it. And he make income growth. They are saying the only thing pushing this along is cost cuts so its a value trap. That would actually contrast a little bit with the view the new chairman has come in and they are going to do whatever it takes to shake it up and revitalize the banks. Are they running out is my question. I have to move on from barclays for literally five seconds. The bank of thailand, another rate cut cut rates to one. 5 . You look at the currency market. The dollar would go higher by 5 10 of 1 . Stronger dollar. I will bring you another rate cut in 10 minutes time. Im going to try to bake it take it back to barclays. Its tough when a low Interest Rate makes money. Talk to me about the Investment Bank side of the business. It used to be incredibly important. It used to be the lifeblood of barclays. In 2010 it constituted 75 of profits at the bank. That figure has been managed down. They managed the size and contributions, the amount of riskweighted assets. The headline number, bonds along up nearly 4 . Then you delve into it a little more deeply. Fixed income commodities if you cant build a business, people leave. Its a strange concept that if you dont offer people the right balance, they leave and go elsewhere. Fixed income commodities used to be one of the top rated players. They lost about 50 market share, and erosion over the past five years. Year on year was flat. The competitors were seeing rises of between 5 and 15 . Deutsche bank rocking along. Credit suisse wasnt exactly comparable. Others are snapping on the currency space. Equities not meeting their peers. An investment Investment Banking, this is the interesting part. Taxes up by 7 . Jpmorgan was up 23 . If you are going to be an Investment Bank, you have to be the best platform, and you have to have some about it. You cant be everything to everybody. The world of Investment Banking has to be changed. If you are going to be an Investment Banker, you cant be everything to everybody but you can be excellent at certain things. Mark i know what he was thinking. Thank you very much. Samsung posted a 40 decline, but samsung remains optimistic predicting a recovery. To Asia Technology expert has more. I know it is late were you are. Why the optimism . The optimism is driven largely by the highend flagship. So far so good as far as sales are concerned. Some sun are not releasing numbers, but the Analysts Expect them to sell 50 million of those this year. That is going to lead the recovery, because it not only boosts mobile phone earnings. It helps the component business. In and if a customer in your average retail shop does not buy a samsung phone, there is a fair chance it will have some son components to make sure you buy either its phones or the phones of its competitors who use its components. Its a twin strategy to rely on a hit or someone else who used their parts. I believe we may have lost rob. Thank you very much. Up next we will take you from tech to the bond market. It might be changing for the bond market. Our next guest says the flaw in european sovereign debt is one of the greatest misallocations of capital and european history. Jonathan i am live from the city of london. Could the sovereign bond boom be coming to an end . Bloomberg did a poll asking which one they would short. 50 of respondents said they would short eurozone sovereign debt and then corporate bonds. Lets get some final thoughts. You call this one of the greatest misallocations of capital in history. It doesnt mean it is going to unwind anytime soon, does it . It should be 60 . We have got almost 3 trillion of bonds. P that for a fact. 3 trillion of bonds on negative yields. You are guaranteed to make money. It is 40 of the eurozone debt stock, but you have made money. You are becoming more negative. This is the wonderful thing about bonds compared to equities. This is mathematics. You cannot change the laws of physics. When you buy a bond the yield is how much it will deliver over its life. If you are buying a bond, the only way you could make money is if there was someone more stupid than you are. If there is someone more stupid prepared to buy on an even more negative yield. We have nearly 10 trillion of bonds below inflation next tatians. Thats why the greatest misallocation in history. The 10 trillion is guaranteed to give purchasing power. They saved because they want the purchasing power. Jonathan what do you do . You have Central Banks that could go lower across much of the developed world, and you have a lot of these guys buying bonds. Where do you go . You have to own real assets. With certain types of equities you want to learn any asset least in line with inflation. It is the best asset class. Footie is at an alltime high. U. S. Markets are at an alltime high. People are talking about equity markets. I look at the risk premium in comparison with bonds, and equities are the surefire place to be. How do you value bonds . We will talk to you again soon i am sure. We are on centralbank watch. The Bank Decision is due after the break. The estimate is another rate cut. I will bring you that decision after the break. Inutes into the trading day and i am waiting for the decision in sweden. The ftse 100 is flat. 0. 1 . All pretty boring. What about the Bank Decision . The survey is for a cut. It remains unchanged. Native 0. 25 . There is a move in the euro swedish krona. That is a weaker euro by a fair amount. They are leaving a rates unchanged. I want to bring in our guest. Kit juckes. My question was what are the guys doing in sweden . Kit juckes they do not want these swedish currency. They will be dovish and trying to prevent the currency from strengthening. The currency could grow 3 or something in that general area. They are moving out of deflation and announced their qe. The currency, i like. I think it will strengthen further. You will see the central bank lien against the strength. Jonathan ferro the repo rate is 2 in 2015 and 2016. The purchases of the bonds can be extended. As you touched upon it, it is not an economy warranting this. It is a country with prices and it will go away now that oil has moved up. If you get european data, more particularly, we start getting people talking about European Growth and you will see the swedish economy benefit quite a lot from that. You will see better growth and all of that from the edges. Jonathan ferro we know they have a small plan and announced a bond buying plan with the swedish krona. The gdp was 3. 2 and the u. S. Would love this. And everyone seems to hit the Snooze Button news button. Kit juckes there is a policy conviction that it is more dangerous to raise rates too soon then too late. Despite what i would have said, im not sure about that. It is accepted wisdom. So, they are not feeling hurried. I do not think the u. S. Economy needs zero rates. We will raise rates when we have to. Lets see what it brings. Jonathan ferro what do you make of the data. It has not boosted confidence. Kit juckes maybe we will see a pattern. Mitt more seriously, the economy has failed to have the acceleration that people have been hoping, looking for. The cruising speed of the economy is lower than what it used to be and that may be a fact of life. The positive is the employment is 2. 25 year over year and there are jobs. There is no Capital Spending and in what was the hottest part of the economy. It was easy. It was short and heading towards parity. I asked the question at the height of the financial crisis. I think it is down at 110 with a shallow rate path. Kit juckes more than anything else, there is a turbocharged combination with negative Interest Rates staying in place for a fair span of time. That got us here. The problem is now, the greek crisis and the negative rates. We got here on the repricing and we will go to the fed. The less said about that, the better. The commodity and Oil Prices Collapse and we are waiting for new news. The most likely news is data and we will be waiting to see how high the eurodollar could go. My guess is that native yields are refusing to hold. There are more european investors encouraged to buy something else. Do not put my pension in funds with negative yields. Jonathan ferro reading your recent notes, what does it tell you about the direction of the market . Kit juckes the rate differential story tells me the move in the dollar has stalled correcting, and you need patience. The problem is that the next move has to come from the fed for the dollar because the pricing is still at two basis points. Again, if growth picks up a little bit, we might think it is possible. I would like in the market to benefits that benefit from places that benefit from the recovery. So, the places around the edges of europe are where the growth benefit will be strongest. When do i get the most rank for my dollar . You have to be patient. Jonathan ferro quickly, are you surprised about the pound falling . Kit juckes a little. Im surprised we did not trade back after the fall and the pound went down one percentage point or so. The numbers were disappointing. Trade is up. The election does not play well. Sometimes, economists let the market dictate the narrative and people say, that will be temporary. What was your view . Kit juckes it was soft and the question with construction is, is it just a statistic that is volatile or, volatile Construction Projects could be put on hold as the election and people would like to see how it is done and if it will bounce back by the third quarter. The best year for growth was last year. It will not be this year, the next year, or the year after. We are a downtrend from here with 5 of gdp budget deficits. If we slow down fast, we get worried. It really snowed in london for the First Quarter of the year. Lee strategist joined us to talk about everything. We will look at the u. S. Growth figure and the fed Rate Decision statement. We will talk europes largest carmaker with the results beating expectations. We will break down the numbers and we have something a little special for you. Do not miss it. Jonathan ferro welcome back. We are live. Lets see how things are shaping up. The minus side of things is 7. 2 . Left lets lift the lid. Caroline hyde home retail is up , coming off of highs. This is the units in the united kingdom. Very much an evolution, focusing on how it grows and getting more savvy. Sales are responding, up with both of the brands. Earnings are climbing. They are cutting the costs and saying that it enables in the rapidly changing retail markets. There are signs of improvement. The market seems to like but they here. It is up 2. 3 . The retail stocks, it is a First Quarter beat. The warm weather, it would seem. Suddenly, a dose of warm weather and everybody goes wild for shorts. All of the analysts are saying healthy, strong, these are the things we are hearing. On the downside, down almost 7 . A net loss in the First Quarter underlies the earnings. Back to you. Jonathan ferro volkswagen reported earnings and shares are up. What is behind the beat . You have seen remarkable sales figures and what the branch does is 9. 7 profitability. It makes 1. 4 billion in profit. You have 165 million in profit and it came in with the estimates. It comes from porsche and audi. The brands are bringing in new customers. And you compare that to what mercedes posted. That was 41 and why the stock is not taking off. You have the sales and profitability as the mainstay brand. The volkswagen brand. They want to bring profitability up hovering at 3 . They have a 5 billion euro costcutting program. Those are the challenges. For volkswagen, a little bit of breathing room. They will have to figure out who and when they will install someone to run a board and how they will get around martin. Jonathan ferro you and i need to figure out how we drive to work, do our time shave, and eat breakfast. You are seven years away from solving the problem. They hoped to offer fullypiloted driving up to 80 miles an hour. Whatever task you are doing, you need to be ready to drive within 10 seconds. Your hands can be off of the wheel. Another day. Is this the future of commuting . Or, will it look like this . So much talk is about a safety aspect. That is true. Im driving without my hands. There is the efficiency and economic argument about this. The typical worker spends 28 minutes a day computing and the average oecds 38 minutes. That translates to 150 hours a year. Your morning commute is the least enjoyable of the daily tasks. Might as making yet make it more fun. Time to take care of hygiene or thankless tasks. Time to prepare lunch. They will get a mayo sandwich. The task is done. Fullypiloted driving is not scheduled until 2022. We have a model here with a windscreen and laser scanners in the front and back. We have four additional radars in each corner of the vehicle. This is a 360 degree view of the vehicle. The safety concerns are real. Drivers report texting behind the wheel. In others, the number is more than 30 . When autonomous driving becomes a reality, the driver will not be allowed to totally checked out. No drinking. I got the green light to mix an evening martini. The most surprising thing about the testdrive was how frequently it changed lanes. You said it at a speed and it gets in the righthand lane on the autobahn. That is the law here. It sees the truck, it looks back 150 meters it takes over the truck, and he gets back. It is remarkable technology. They have to figure out the regulations side of it and the legal side. The lawyers will have a field day with who is liable if the accident happens. Not the most amazing thing about the video. The most amazing thing of the video is a mayonnaise sandwich . Not cool. A little bit of a rough ride. Getting no love. The latest on greece, after the break. Jonathan ferro good morning. The greek finance minister having a rough week. Speaking out against a man and saying it was a good move. Lets get to athens. Strong words this morning. For a guy who has been sidelined he seems to be in the spotlight, doesnt he . It is also the finance minister and he said that he was pivotal. Adding to this, we had the incident and he was attacked anarchists attacked him and his wife and a restaurant. It is cornered and it seems that there are limitations. Jonathan ferro he was shielded by his spouse instead of the other way around. Is that true question mark they do love each other. Jonathan ferro that is almost it. We are joined by guy johnson. Greece, twitter, what do you have. Do you have . Guy johnson aluminum demand. There is an awful lot of energy and we can link you back to the energy and Global Demand story. This is a component to many of the manufacturing processes. They use a lot of aluminum. I think that is interesting. We have another hearing of the flash crash crater. We have some good guests coming up. And a roth child joining us. We will look at this. There will be a real sense of things happening around here. What is happening in the eurozone . What does it mean in corporate boardrooms. Most people expected the scotland moment with the sterling starting to fall out of that. Guy johnson the market thinks conservatives will form the next government. That is the most logical explanation. That is, probably, from a city of london, point of view, that is the outcome. There is a belief that this will not be tight. I was surprised by the bounceback yesterday. You go down and the market is looking at it. Jonathan ferro twitter, i know what some investors think he should tweet. It is two words and the second one is quit. Guy johnson theyre talking about getting facebooks adds to work. They are delivering. Is that enough to hang on before it gets to the numbers . He needs to make the numbers shorter. They need to get them right. Jonathan ferro politics is coming later. Bloomberg politics. Do not miss that. There are two Central Banks. One was making the cut. The thai bat got the cut. Guy johnson fail. Twitter profit plunge. We will take a look at credibility. The crown prince and appointed. We will look at that. Guy johnson beating estimates