Caroline welcome to c ountdown, i am caroline hyde. Why he backs the takeover did. Bid. Manus airlines are adapting new rules in the wake of the german wings crash. Caroline. the french prosecutor suggested the pilot was locked out of the cockpit. Manus under the regulations already in place, a commercial pilot cannot be left alone in the cockpit. Easyjet, air canada and Norwegian Air are among the carriers confirming they will amend their procedures. Caroline its go to bloombergs aviation correspondent. Tell us more about this to any cockpit rule that resides in the u. S. After 9 11, there were so many rules about 9 11 and they made a firm rule anytime one pilot stepped out, a Flight Attendant had to step in to make sure they were two people in the cockpit. Part of that were if the first were to fall sick, the Flight Attendant could warn the other. It is not just about terrorism. In europe, the lots are different. It is left to each country and airline in europe to decide how they want to handle it. We have a few airlines saying we are going to have two people in the talk. Had another that is the solution longterm. There are many more factors. I dont think it is any less c4 airlines not changing the policy right away. Caroline give us a sense of what is happening in terms of the actual crash site right now. The investigation is ongoing. People sifting through the rubble. Difficult terrain. Reporter one of the problems is the crash is so powerful, everything was smashed to pieces including unfortunately the victims. It will be very difficult to identifying them. They are piecing together pieces of the bodies. They are going to have to examine them for dna to figure out who the body parts belong to and then get active the families so they can repeatatriate the remains. We can see people on the television coming through. It will take weeks or months to finish identifying all the bodies. It is likely they will not find everything. Caroline a painful and heart wrenching story. Thank you very much. Manus saudi strikes against yemen rebels continued overnight as gulf states reached out to members of the u. N. Security counsel. Elliott joins us from tel aviv. Elliott what is the most recent news overnight . Beyond the alliance they have already established with some of their neighbors. Elliott the rates have continued on the rebel positions. Things like places where weapons have been stored, antiaircraft guns. In terms of the actual mission, it is not clear cut in terms of when saudi arabia thinks it has done enough. They said they will continue bombing until they are satisfied. The advance of the rebels is the objective, marching on the southern port city of aden. They want to pop up the internationally recognized government. Finally they want to prevent instability from yemen spelling over. Or perhaps to the rest of the region. It is not going to be obvious when those objectives have been achieved. Presumably, saudi arabia will be the one to decide when that has happened. That, or the possibility that some sort of political talks which could lead to some sort of agreement and ceasefire. Manus lets talk about the Uns Security Council and the potential lobbying that has been undertaken in terms of an arms embargo. Is that what they are trying to achieve . Elliott what we understand from arab diplomats, they put out feelers to the Security Council of the possibility of an arms embargo on yemen presumably to target weapons getting to the rebel groups rather than Security Forces. Even muting the prospect of having international monitors along the Southern Coast to enforce such an embargo. Such a request, were to be carried forward, would mainly be targeted at the prevention of weapons arriving from iran. Something that both the rebels and iran deny. It is not really at the stage where are discussing it were about to table it. They are only putting out feelers right now to reduce the possibility the rebel groups are able to rearm and belong the conflict to become something akin to what we have been seen going on for years in syria. Manus lets see how the story develops. Thank you. Caroline continuing on this angle, lets go to saudi arabia. Glenn, what is the purpose of the attacks, do we feel . Glenn the minister of state for Foreign Affairs from the United Arab Emirates said the point was to bring the houthis back to the table. They feel the only way to carry this out was through a Bombing Campaign. One is to bring them back to the table. Two to, to prevent iranian influence from spreading. Caroline it feels like it could escalate from air attacks. Glen last night, the Coalition Spokesman said there were no immediate plans to send troops in. But if there objectives were not achieved from the air, they would consider it. Yemen is a difficult place. The rebels, despite lacking air power, are hardened fighters and have been fighting for many years. Caroline part of the ongoing battle between shiite and sunni. From riyadh with the details. Manus last night saw the first of four election related events. Heres a little bit more, and she was able to stay up late enough, is anna edwards. They did not go head to head. Many would say jeremy anna they both want in front of a studio audience, but not head to head debate. The question of who won been answered by a poll that came out after the event. A poll saying 54 of those watching said that cameron w on. What did we learn about new policy . I spoke to a guest. He said there were a big holes in the deficit plan for both parties. Probably not be for him to talk about deficits and welfare cuts. But that was one of the lines of questioning with cameron. Where would he cut spending . David cameron we have said that breaks down into spending 5 bil 5 billion pounds from cracking down on tax avoidance. We have identified freezing benefits for two years to raise some of the money. The 12 Million Pounds 10 billion of which you have yet to explain. That compares to 20 billion saved by this government. Do you know where these cuts will fall . You know and you are not telling us or are you not telling us . David cameron we know they re will be difficult decisions. Anna ed miliband of labor. David cameron has promised a referendum on whether we will stay in the european union. But it is not as distinctive clearcut distinction. We have to be in out looking country. I have said, and this is unlikely to happen, this is a further transfer of power. It is not likely to happen. That is what leadership is about. Saying what your priority is. Why would i call a referendum and plunge the eu into two years of debate about some things i do not want to see happen . Anna if there is a transfer of power proposed, there would be a referendum under labor as well. Caroline it seems as if cameron has come out on top. What about the actual men themselves . Anna the criticism often leveled at David Cameron, the character hes caricatures painted by the media. People want to find out how in touch he is with ordinary people. The questions opened up about food banks, free food for people who cannot afford to buy their own. The other thing they focused on was zero our contracts. Job insecurity. He was asked, could he survive on a zero hours contract . If you are a student, and you want to do some parttime work a zero hours contract can work for you. Thats why we have not outlined them outlawed of them. What we have is exclusive contracts. So no, i could not live on those. Anna the criticism for ed miliband is, is he statesmanlike enough . He comes behind David Cameron for suitability for being Prime Minister. Jerry paxton he did a picture of him with vladimir putin. Could he crumble . He was trying to paint the picture of being a tough statesman. Ed miliband mi tough enough . Yes, i am tough enough. Do they want my ideas. My principles, when i have stood not up just to president obama but rupert murdoch. Fighting for ordinary people which is what i believe in and why i came to politics. Anna in terms of the overall poll, David Cameron wioon. When asked who would be the best Prime Minister, David Cameron came in at 48 compared to 40 for the labour party. Not as big a gap. Manus the papers are going with the view that miliband was more aggressive. Versus that of cameron. It is all the nuances of body language. Anna they both seem to shine in different environments. The questioning with the audience, it seemed that ed miliband felt comfortable. Manus did you see him sitting back . A lot of interpretation anna. You will dissected all during your politics show at 11 00 a. M. Today. Caroline lets kick it to the top stories. The bank of japans key inflation gauge ground to a halt. The bojs measure that stripped out sales tecax showed inflation at zero. The governor said any drop will be temporary and will not stop the bank from reaching its 2 inflation target. The chairman of the italian tire company per really has called on my narrative shareholders to accept the takeover. This project [indiscernible] this project will be set aside. I dont see third parties entering. Anna rio tintos chief executive has warned prices the roles would go in several operations including iron alan moon them aluminum, and hr. Manus Alastair Campbell has been on last night. Caroline manus cranny. A good night dire for dave. Caroline coming up, zero inflation. Japanese inflation grinds to a holt. But what does it mean for the countrys recovery from the recession . Manus welcome back to countdown. Breaking news from chevron. We will bring you those updates. Selling down is consistent with the vestment goals. They remain consistent with moving australia look to find natural gas projects to startups. Caroline looked back to japan. Caroline look back to japan. That is where inflation rose 2 . If you strip out the sales tax increase, it gives you inflation at zero. You have actually been traveling via tokyo. Give us a sense with the feeling is. All this plays into the retail sales declining in tokyo. It seems as if the recession is not being kicked through. Guest one of the biggest problems is structural issues. Error economists think now o ur economists think now japan is at its full capacity. It will be inflationary without much growth. There will be a situation where growth will feel quite stagnant. Manus is that going to help this picture . That was the holy grail. Guest it will help the picture. Our projection is it will swing the other way. Inflation will become a problem. Stimulus is inflationary. The bank of japan will continue have to buy bjbs. They have got themselves into a difficult situation. Manus that sounds like a vortex. They have no choice but to continue on with qe. You are not painting a good picture at all. Michael this is in contrast with when the fed is hiking rates. Our peak down the road is 140. Caroline i understand the aging concern, but there is focused to get women into the workplace. Are those changes not working . Michael they are working, but they are increasing growth from zero to 0. 5 to read they are working on the margin. One of the problems is companies do not want to invest in japan because if they build a factory, they have trouble getting workers to fill the factory. They would rather increase capacity elsewhere in asia. Manus lets talk about commodities. A huge week for oil, the hugest rally sense february since 2011. Commodity currencies, Canadian Dollar and australian dollar, is it a temporary reprieve . The oil, and how it plays into this. Michael geopolitical risk is coming in as a factor. Our analysts do look for oil rising over the next year. Shortterm, the capacity for storage is declining. At some point that will feed to a low oil price. Wills being supported by geopolitical risks. Medium term, the outlook is buried. That means we are bearish on commodity currencies. The aussie dollar is the one we are most bearish on. It has had the best performance over the past week for the last couple of years. There is the commodity slowdown in australia. The need for australia to rebalance away from commodities. That will keep it average. Dovish. Manus you also have aussie dollar mexican. Michael we like ozzy max. Aussiem mex. Are not correlated with the dollar view. Caroline how much is China Industrial profits not looking good. Posting profit that is declining. Is that feeding into emerging markets, why you are getting out of fx in that respect . Michael the situation in china is not just the growth is off. The growth they are generating is not as commodities in tents. A lot of growth was building infrastructure, things that demand commodities. Now we are shifting to stimulating construction consumption growth. That means we have a bearish outlook for Commodity Prices as well. Manus stock prices crumbling in the u. S. The fed. Other fed governors are saying, the market is out of sync with the fed. Michael we think the market has gone too far. We think the market is worried that if they removed the word patients, they wrapped it up in dovish commentary. The market went too far, perceiving it as being too dovish. The fed will be hiking shortly after the midyear. We have yellen this evening indicating the same signal. People have reduced dollar exposure. Caroline dollar going back up. What would you say about eurodollar . Michael we are looking for a decline to 104. Manus what is it, is there isa hesitancy to capitulate . Michael there are a lot of eurozone investors who want to move out. That means any rise in eurodollar gives you the chance to sell euros and by other assets. Buy other assets. The u. S. Is a key region because the Growth Outlook is strong. Caroline it has been wonderful spaghetti you, if extra just speaking to you. Manus nigeria is up next. At a crossroads. Stay with us. Manus you are watching countdown. 6 30 in london. Lets see how Foreign Exchange markets are due. 119 20 is where we are. Inflation comes in at 2 . Below estimates. Household spending lowest in 13 years. Pimco has a High Conviction sell on yen. They said we are going to break through the 120 level. Aging population, the economy maxed out. The bank of japan will have to continue to print money to keep the target from bmp, saying clearly they have a new target. 140. Certainly in the longer term. Pimco has higher conviction short trade going on as far as this can see his concern. As far as this currency is concerned. Way below what the market and bank of japan want to get to. Eurodollar, 108. Flat to asia. A short position on eurodollar. Hard to get up. We are seeing a repositioning by bmp para bought. Bmp. Liquidity will come in as the trade comes in. You have ruvell up for the fifth day. Dollar down, ruvell up. Dollar down, rubelle up. The best performing currency of 2015. It is slightly overbought. You could see a little bit of a drawback. The ruble go back to 59 and then reassert itself down to 55. Dedicated on the view predicated on the view that you have the move with the oil prices related to thes in yemen. That reignites ruble trade. Analysts have never been so far apart in terms of what the price of oil is going to do. Well it is sunshine, the ruble makes hay. Caroline lets move to the top stories on bloomberg. The pay package will put her among the highestpaid cfos in the industry. On top of a 60,000 annual salary, she will get a 5 million signing bonus and a 65 million stock grant this year and in 2016. The worlds biggest distiller plans to boost chinese sales by focusing on consumers. The demand force or its purchased as gifts has been hit or the governments frugality drive. Registration of the model s four to has law in china dropping. The model s for tesla has been dropping in china. Down from hundreds per month during last year pass fourth quarter. Last years fourth quarter. Manus nigeria is a country in crossroads. The elections to determine whether it is cheese its potential or descends into chaos. Here is a take for what is at stake. Reporter nigeria is at a crossroads at the moment. The country that had the fastest growth this century, became the biggest economy on the content. If u. N. Projections are to believe they believed, it will become the thirdlargest nation in the world, overtaking america by 2050. This could make it the next india. The election is pitting north against south korea and the pdp has never been out of power since the military north against the south. The pdb has never been out of power since 1992. The road we are on started out when the governing party in nigeria, the pdp split. That was caused because the leader, goodluck jonathan, did not hand over leadership. Nigeria is a country with a delicate balance between the north and south. Roles are alternated between the north and south korea the leadership of the governing power is no different. The Central Bank Governor challenged the governments over corruption. The third point was oils collapse, which had a major effect on nigeria, which relies on oil for 90 of exports. The worsening situation with boko haram come which caused a delay to the election. We are already seeing the risks before our eyes. There has been a massive investor exodus. It was one of the favorites of emerging markets a year ago. Now you are seeing lots of investors pulling out money. Basically because, first of all, oil is bad news. Secondly, they dont know which way the elections are going to go in terms of the violence that could happen. Manus for more on the elections our correspondent joins us from legos. It will be a tight race. The two candidates, it is amazing. Goodluck jonathan has never been out of power and he does not want to lose his grip. Whereas we have a dictator trying to oppose him. What is the thinking . Reporter you are right. This will be the tightest race ever we have seen sense military rule in 1999. Jonathan, who has ruled that nigeria for five years, he has been associated with major reforms. He has been criticized for not managing corruption and failing to stop the bloody insurgency of boko haram in the north. The other candidate, a former military ruler from 1983, he ruled the country for 1. 5 years. He is known for his strict campaign against indiscipline and corruption. He was criticized for brutality, crackdown on freedom of speech. Also, he jailed a lot of politicians. A lot of people observed that he ran against and jonathan good luck in 2011 and lost. Many observers think this ti