Data check. Stocks them to be advancing. Dollar, treasuries, both slipping. The dollar is edging lower and treasuries are rising as janet yellen said she will step down when her term ends in february. I also wanted to talk to you about the turkish lira, you can see it at the bottom of your screen. It hit a record low against the dollar. We will get plenty more on your market moves. Now, lets get straight to the bloomberg first word news. Sebastian u. S. President donald trump is designating north korea a state sponsor of terrorism. The regime to additional sanctions. North korea joins syria and the sedan on the u. S. Terrorist list. This will impose sanctions on north korea and related persons and supports hour maximum Pressure Campaign to isolate the murderous regime. Sebastian janet yellen has said she will step down from the board of governors wants her successor is sworn into office. It widens the scope for donald trump to shape the Central Bank Leadership for years to come. Jerome powell was number needed to replace janet yellen. Ceo has told antitrust. Nforcers Randall Stephenson left the door open for negotiations to find a way for the deal to pass federal muster, but reiterated he would not sell cnn to appease washington. There has been a lot of reporting and speculation whether this was all about cnn and frankly, i dont know. But nobody should be surprised that the question keeps coming up because we have witnessed such an abrupt change in the application of antitrust law here. The bottom line is, we cannot and we will not be party to any agreement that would even give the perception of compromising the First Amendment protections of the press. So, we need a recruitment so, any agreement that results in us forfeiting control of cnn is a nonstarter. Sebastian the Washington Post is reporting that eight women said charlie rose made unwanted sexual advances towards them. The Associated Press is reporting that pbs is halting production of the program. Bloomberg has suspended the show from airing on Bloomberg Television and radio. Global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. Im sebastian salek. This is bloomberg. Francine a german chancellor Angela Merkel has signaled she would prefer to hold new elections, rather than leavd the minority government. Angela merkel i have no plans for a minority government at the moment, so we have to wait. A new election is one way. A minority government is another. Much to do, with so that is something that will be thought of carefully. I dont want to say never, but i am skeptical and i think new elections would be the better way. Francine our German Government reporter joins us from berlin. Good morning. Does michael think she would emerge stronger from the election . Does merkel think she would emerge stronger from the election . Reporter the question is not necessarily about her emerging stronger. The asp would probably benefit from the election scenario. Ist would also mean the cdu probably going to lose some votes. Francine tell us about the german president. Yesterday he spoke to the press, or he had quite a lot of meetings behind closed doors. What is his role in the Coalition Efforts . Birgit the focus is on the german president. He is now in the position he has to see whether forming a government is still possible. He is the one holding talks with and also with the social democrats, which are his party, whether he can convince them to be responsible at this particular moment in time, and whether they can actually turn around and say, i would like to try it again. Francine finally, markets have been kind of muted. How do they move from here . Markets probably watch this now very closely. Particular interest is probably how long this will take because we have now a situation where there is effectively no functioning government at the top of europe. So, the longer this is dragging is obviously in security, which markets dont like. Francine thank you, birgit jennen. Foley joins me now. On friday there was a little bit of a gasp in the market. There was no coalition and it all broke down. The euro moved quite significantly, but now retracing the gain. Jane it is quite surprising, in some respects. If we go back to the Asian Traders yesterday morning, we see a natural reaction. Yet, as soon as the European Reaction started, it fought back. Most people would agree that the sooner a government is in place, the better. The general coalition is very strong. We have more data expected to come through this week and in that circumstance, when we have a able economy, perhaps the economy can carry on in a good sense for a while. If we look at other countries, we situations whereby we might have another government for a while and the economy carried on. That is allowing investors to take a look. It has not changed the fact that the economy is strong and inflation is low. I think this explains some of the volatility we saw yesterday. Make ae jane, does it difference to brexit talks . Doesnt make a difference for the trade dealing . Very interesting with respect to brexit talks. Sources said that allegedly merkel was concerned about pushing too hard. A brexiteer could come in, which could make the tone of the brexit talks perhaps more comfortable for everybody. From that point of view, it was considered merkel might be a sof tening and so, yes, it could affect the brexit talks. Francine what about ecb policy . Does it weaken her position, so . He changes he policiesr a bit jane you could say it is a little bit more than just her ability to affect policy. There is a lack of trust within the party. I think it will be very interesting to see if the president can overcome some of these issues and persuade some of the potential parties to come together. With respect to the ecb, i think they will continue to focus on the economic data. Francine jane foley stay swith s with us. We will be speaking to the ceo of the Analytics Company that uses artificial intelligence. This is bloomberg. Francine this is bloomberg surveillance and im Francine Lacqua in london. Heres sebastian salek. Sebastian bnp paribas has fallen in the ranking of banks. The Financial Stability board shows that citigroup fell one level in the rankings, meaning the extra Capital Requirements will be 2 of assets. Bnp paribas fell as well, forcing it to face a surcharge. France and the netherlands have won the contest to host two londonbased european agencies. The eus Banking Authority will move to paris and the medicines regulator will move to amsterdam by march of 2019. The two cities emerged victorious after a series of secret ballots. Nestle is amongst the companys exploring a purchase of hains celestial group. The food you want the switzerlandbased company has a market value of more than 42 billion. Representatives for hains celest ial did not immediately respond to requests for comments. After earlier forecasting it decline. That is after the collapse of rivals removed excess capacity in some of its biggest markets. The Budget Airline says pretax , held down by the weaker pound. Paschi has come out. Ryanair has taken some capacity out as well. We have benefited from air berlin. So, its all very good news for easyjet. We have come in at the top end of guidance this year and the forward outlook is good. Sebastian that is the Bloomberg Business flash. Francine Philip Hammond is the parent to develop one of the most could go budgets in recent times. The chancellor is under pressure to curb spending when he outlines the plans tomorrow, but with little economic flexibility and conservatives arguing amongst themselves, he has a tricky balancing act to head. And of course, hanging over everything is brexit. Foley tos now is jane talk about any currency moves, future or past. David, lets kick off with you. What exactly will be in this bud get. It is difficult, but he will try to present some optimism Going Forward. David yeah, a budget is always a balancing act. This one does seem particularly challenging. You have got, as was mentioned, the brexit. Remember, Philip Hammond was very much against brexit. He is one of the more proeuropean people in the cabinet, yet it falls to him to take on what he describes as the mess. Forecasts are for a deterioration of public finances because of bexit. At the same time, you have a Resurgent Labour Party who are leading the polls. Hes got to come up with something to try to change that narrative, to try to capture the attention of the public, win back the voters they did not win last november. They are trying to encourage young people in the house publicsector pay another huge issue. We have had demonstrations. Teachers had their wages capped for a long time. Is he going to loosen that . We know he is fiscally conservative as well. How much will he be willing to loosen the Purse Strings . Thats going to be the key question. Francine i imagine he will focus on health care, but is this the most politicized budget you have ever seen . David well, if you remember the budgets of gordon brown and going back, i think, there was a deeply political event. Its a political opportunity for the government to try to finally make progress. We have had setbacks with theresa mays government now. Tomorrow is an opportunity for the government to actually make some political headwind. Remember, last year, they do intend to unwind. Remember, George Osbornes shambles. We had the increase in the insurance tax rate. You can be sure the detail will rapidly, andr they will be looking to exploit any weaknesses at all. Jane, what does this mean for the pound . Jane there is potential there. Hammond is not indicating he will be doing huge amounts of spending. Teh june we go back to election, which was a big shock for theresa may, we had the young people coming out and voting for labour. Perhaps this budget is about trying to regroup and take back some of the young votes. Whether or not we can see a significant change for growth and Interest Rates on the back of this is highly debatable. If we do, then sterling will lose. Latestwe will get the rbr at therom the beginning of the speech. And what does the independent analysis show for the u. K. Economy . That will be key, too. Francine are we still talking about the possible income Tax Deduction for students . David i mean, who knows. Its possible. There could be a range of packages to entice younger voters. These things will probably have to be more or less fiscally neutral. It will all be in the fine print. Francine what is one thing that sterling wants to know right now. This is a divorce bill. It seems to be complying with what the eu is expecting. Will be pound significantly rally . Jane it certainly can rally. This is all about trade. The pound, or sterling at best, is one mode of trade talks. Theres already been a delay. They have been penciled in october with a delay in december. If we dont start in december, they will be a lot of vulnerab i ility. Francine so, sterling will certainly be encouraged in the trade talks. What about productivity . Wiser. E are non the the we know there are several issues with respect to productivity. Again, that is one. That is related perhaps to quantitative easing. We know the demographic is there. We know there is productivity that is pretty low. That is something that must change in the u. K. That probably means that earnings will be low for a while too, suggesting the bank of england will be slow to hike Interest Rates. Francine jane foley stays with us. Up next, the turkish currency against the dollar. I have a great start, looking at liquidity for the central bank of turkey. This is bloomberg. Francine this is bloomberg surveillance and im Francine Lacqua in london. The turkish lira has risen to a record low against the dollar and investors dismiss the Central Banks latest measures to support the currency and call for higher borrowing costs. But is the only way down for the euro . Jane foley is still with us. How far can it go, lower . Jane i think for now, it can go lower. Its quite possible we will be up against that in the next week or the next couple of weeks. I think the big story here is, will be central bank raised Interest Rates . Bankll be centrathe central raise Interest Rates . If they dont, in a way, that affects their credibility even more. They are bowing to the pressures of the president. If they do, that will help rise some of their credibility. Were to hikeey Interest Rates, that would try to win back control for the labour. Francine theres an auction today. Jane they are certainly trying to help companies right now. They are taking measures. But i think, generally speaking, strong signal to the market. Francine im showing you my turkish chart. Again, can this get uglier . Jane well, it is pretty ugly. I would hope we approach a new term high. Again, if we look at emerging markets as a whole, they have had a pretty good year. Global growth is strong and that should be supportive for risky assets. I think if the central bank does take that control, it can come lower. Francine jane foley, joining us this morning, senior strategist at rabbo bank. Up next we speak to erkin adylov , the ceo of behaox. We will look at how this kind of insight can be the future. This is bloomberg. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit, or go to xfinitymobile. Com. First word news. Sebastian at t has told antitrust and orchards you will see them in court after the Justice Department walked the company to buy time warner. They will find a way for the deal the past federal muster and reiterated he would not sell cnn to appease washington. The speculation of whether this is all about cnn, frankly i dont know. Nobody should be surprised that the western keeps coming up. We have witnessed such an abrupt change in the application of the antitrust law here. And we will not be party to any agreement that would give the perception of compromising the First Amendment detections to the press. Any agreement that involves us forfeiting control of cnn is a nonstarter. Sebastian that is your first word news. Francine weve got breaking news at the u. K. We were just talking about the budget. They are meeting to walk the line and try to keep everyone happy. We are getting some public finances. Is a lotc sector higher than expected. It is at 7. 5 billion. This is out of the budget. This goes back to what sterling could or could not do area it plays into how much the chancellor has two spend. Coverageave plenty of from the budget tomorrow. Town, theya small have managed to make a career. He works on his parents farm. His parents would sell a home to pay for a oneway ticket for them to go to a university in hawaii. Their, it was comanaging 1. 5 billion. On his own he went with the londonbased startup company. They use software to monitor employees and how likely they are to do anything wrong. Of he joins us on surveillance. First of all, you have an amazing life story. We will talk about that later on. Youre building a company like no other. How did you have the idea of giving the tools to a bank to monitor every step of their employees . Erkin its more than monitoring of employee behavior. We are doing something called people analytics. When we come in it, we are giving an opportunity for the bank to make money out of their own data. You can make the type of insights of your data you could not get before. For theghts ares red compliance teams and commercial insights. This makes your sales team better. Francine lets say you have a Trading Floor and you analyze everything. Have for one trader, you tens of thousands of data points. If francine how fast you talk on the phone . Erkin what you say in the phone and how you say it. It picks out words and your tone and pitch of the voice. It classifies things like questions, speech rates. It takes email. Andcan recognize sentiment places where people have seen. It gets even more interesting because then you get into chat. It turns out there are different chat but forms traders use. Francine it gives you a profile of the type of trader you are. Erkin it gives you the profile. Its going to give your relationships, how youre communicating with them, what are the best practices of communication. It brings to the fore what you have been talking about. It is going to for the first time see what is going on on the sales floor. Lets say thats 2000 people. It can summarize every single discussion going on on the sales floor and give you a summary of the top 10 topics being discussed right now. Francine where do you draw the line . Wheres intrusion . Erkin when it comes down to is who is at the other end of the. The recipient of that information is a computer, i dont have a problem with it. Its the same thing happens with netflix and amazon. You have a problem with him watching you so long as there is no person on the other end of it. Regulatingre already , they record all of this information and unlike us, there is a human being sitting at the other end, which is intrusive. Francine whys it so important for banks . Is it to find rogue traders . Erkin the way it works is if you take all of the digital footprint of the human being and you look at it as an individual, you can apply something called people analytics. Thats about recognizing different dimensions of human being. Humans are not onedimensional