Caroline we will be looking at the ecbs 1. 1 trillion euro bond buying plan. Mark stocks are headed for the biggest drop in weeks after gdp growth output investment, and retail data in china also load. All slowed. Yvonne man is in hong kong with the details. Where are we seeing weaknesses and strengths right now . Yvonne the weaknesses are definitely coming in line when we talk about retail sales and the factory sector. The Australian Dollar also slid in reaction to some of this data coming in from china. The First Quarter gdp was bang on target at 7 for the First Quarter. That is in line with economists and what the Chinese Government was hoping for. No newsflash there but that disappointing data you pointed out there are coming out below expectations. Factory output for march was at 5. 6 the lowest since november of 2008. Economists were estimating a 10 growth theyre previously. Urban investment also came in at 13. 5 . Retail sales were also a big mess, their slowest pace since 2006, coming in at 10. 2 with estimates at 10. 9 . The slowdown does make the case that if the government doesnt do anything further here in terms of using, it will be increasingly hard to reach the 7 growth target for the year. We will see what happens after that, mark. Mark there were worries about deflation in china, what does the data tell us about that . Yvonne we have seen a lot of the global patterns here in terms of deflation. The disinflation pattern, we have also seen that in china particularly in the factory sector for some years now. Todays data also allows us to calculate a broader perspective in terms of price changes. For that, the gdp deflator that we just saw here is going into negative territory with 1. 2 of contraction the first deflationary reading since the financial crisis of 2009. Mark yvonne man in hong kong thank you. Caroline governing google next. The European Commission could issue charges against the tech giant violating competition laws. Google is accused of highlighting its own web services in search results at the expense of rivals such as microsoft and expedia. The implications could be severe with hefty fines and constraints about how it delivers googles Online Search engine. Lets get out to hans nichols who is been tracking all these developments. It was the best case and give us the worst case for google. Hans good morning, caroline. The best case for google is that when these formal charges come down today is that they are actually weaker than expected and that google is able to litigate for quite a long time in various restrictions before any remedy is put in place or for any fines are put into place. There is no dispute about googles market share. They have 90 of market share stop market share in europe compared to 65 in the states. They came close to settling it with the last commission but at the last second there were complaints from some rival Tech Companies and now the new Eu Commissioner for competition is taking a harder line. Google is bracing for a harder outcome. Heres a quote from an internal memo. It says this is obviously disappointing news but we have a very strong case with especially good arguments when it comes to Better Services for users and increased competition. The worst case for google is not just a hefty fine and a change to the way they operate, but that it will went the appetites of National Regulators and that they will then crackdown. So then google would be facing charges not just at the eu level, but at the national level, and not just in europe. They get 35 of their revenue from europe. If you take what the eu can find, which is 10 of global revenue that puts you at a potential 6. 6 billion euro fine. You will have the cash to pay for it but your member when microsoft was fined . They came in at 2. 4 billion. The eu is not averse to putting big fines on Tech Companies. This is not just about search. There is an informal inquiry going in to what they are doing with their mobile operating system. No formal case there just yet. Caroline it sounds like google is continuing to try and talk tough. From the u. S. , are they fearing that it is protectionism going on in europe at the moment . Hans when you look at what Eu Commissioners are publicly saying, it sounds a little bit like protectionism. Take a look at take a listen to what the german politician who is now the digital commissioner for the eu said. He said and caroline, this is so much bigger than just google or just search. Although google also lost that right to be forgotten case. This have to do with revenue, the entire tech landscape. Europe feels like they are a step behind it sounds like they are getting a little help from brussels. Caroline on nichols all over the story from berlin. Mark talks of the deal for greece continue today as the countdown for the april 24 deadline continues. Officials say the nation and its creditors are moving closer to reform which would unfreeze the 7 billion second bailout. Caroline the imf chief economist warned that a scenario that would hurt Financial Markets cannot be ruled out. He sent a strong dollar would boost growth in the region. Price of oil has helped. The Exchange Rate probably hasnt helped yet but it will. This is leading us to have higher forecasts for this year than last year. The main risk that we saw last year was the risk of recession in the eurozone. It has not disappeared but the risk is much smaller than it used to be. Mark the ambassador who worse who worked with george soros for over a decade also weighed in on the list. He told bloomberg in an exclusive interview that he was not worried about greece leaving the eurozone . Do you think greece is leaving the eurozone . Probably. I would carry a lot more if i were greek. If you mean, do i care as an investor . The banks dont own greek debt anymore, draghi has qe at his disposal. My guess is there wont be contagion but even if there is he can contain it and as soon as Market Participants see that you wont have contagion. I dont get this theory that greece flushes themselves down the toilet and put themselves through misery and the spanish and italians say they want to do that to. I think the more rational response is for them to go with reform and get more embedded into europe. I prefer to see greece in the eurozone for a lot of market reasons and maybe humanitarian reasons, but as a market participant, i think it is way over analyzed and overrated. Caroline as greeces cash crunch gets ever more urgent the ecb once again extended to greek banks. Ecb president mario draghi will face questions today on greece and his qe program at a press Conference Following the central bank meeting. You can catch that here on bloomberg in full at 1 30 p. M. London time. Lets get to the breaking news we have for you this morning. Alcatel and nokia, we had that is yesterday, were considering a full overall acquisition. They are coming out today saying that alcatel will nokia will buy alcatel for about one third of the shares in a deal that values the company at about 15. 6 billion euros. The board of both companies have approved the terms of the proposed transaction. Both boards are confirming the deal will stop the deal. Remember, here is the overall Mapping Service that nokia owns. They are looking to dispose of that and it could be worth about 2 billion euros. They already have cash in place after they sold the handset unit to microsoft last year. Nokia saying they will buy alcatel in a deal that values the company at 15. 6 billion euros. Combined, they have a target to reduce their costs by some 200 Million Euros and they see 2015 constituting a review. They want a review period. They want the deal to be finished up by 2016. Mark i have got some news that Julia Roberts is looking to step down as chief executive of africas biggest insurer. That is according to people who are familiar with the matter. Roberts will resign after more than six years at the helm of the londonbased firm. They said they didnt want to be identified because the move is not been announced. They reported a reduction profit last year after the rand in south africa we can against pound sterling. He came to the helm of old mutual back in september, 2008. The total return, shares plus dividends, is up 19 under his tenure. That is versus 6. 7 for his peers, so he has outperformed his peers since you became chief executive in september 2008 according to people familiar with the matter he is planning to step down as ceo of africas biggest insurer as soon as today. The top stories on bloomberg this hour. President obama will drop cuba from the list of state sponsors of terrorism. The move comes a week after obama met resident castro in panama which marked a significant shift toward restoring relations between the countries. Congress now has 45 days to respond. Sri lankas central bank unexpected the cut its Interest Rate today. That makes it the 20th central bank to cut rates this year. G7 Foreign Ministers are in germany today for their second day of talks. U. S. Secretary of state john kerry skipped the first day of talks to stay in washington and lobbying congress for the deal with iran. Caroline you can join the conversation on twitter. It is know what you think about the show and tell us the stories you want to hear more about. I am carolinehydetv and markets act markbartontv mark is at markbartontv. Alcatel is being valued at 15. 6 billion euros. Mark coming up the ecb meets today. It will be all about the timeline for qe and the greek issue. We will get investors takes on what to respect. Mark welcome back, the ecb meets today and qe is back on the menu. This is not top of the list, is it gekko is a question of how is the program doing and how the economy is improving. I think it will be about maintenance of the message and maybe some hubris from draghi in terms of glorying in slightly improved economic figures. I think, on the other hand, he will want to stop any nascent rumors of it and stop of an end. Caroline there are also concerns out there that they can get their hands of the right amount of assets and possibly greece coming to the four as well. Nick they will probably mention the range of assets they can buy going to various agencies. Greece, i think he will and he will emphasize the fact that the introduction of qe is the thing that is really stop contagion from rising over the worries with greece. If anything, he will be emphasizing that subtly as a need to keep qe going. Caroline do you agree that if greece really did rear its ugly head or we saw a grexit and we are hearing reports and denials of threats of default could be stamped. Nick the flight to quality spreads would widen. The existence of qe, the fact that this has been forecast so much or on the agenda for so long, i think people are prepared that banks have leveraged. I dont think it would be the crisis that would have been two or three years ago. Mark to show the ecbs enthusiasm in forecasting inflation over the horizon. The inflation forecast is 1. 8 for 2017. Many say that is a bit too optimistic. That assumes the full up limitation full and limitation of this qe program. Is that a bit optimistic . Nick i think it is cloud cuckoo land. Especially if china were to introduce a policy of devaluation of the renminbi. I think these are optimistic which is another reason to believe that qe will go on ad and financial ad infinitum. Caroline can you talk about some of the chinese data here today . Industrial production and the like the to be slowing more than many anticipated. Nick we shouldnt be surprised. You have to close down various pieces of a factory to retool. And rebalancing from excess investment and relying on overseas trade to domestic consumption. They have reserves and ample scope to give a further boost the writer fiscal or Monetary Policy and i think we will see Monetary Policy easing in at few months. China is fine. Mark what about the chinese stock market mark what about the chinese stock market . The bestperforming global stock market. Frenzy, mania, bubble . Nick i think that is more of a worry. A protected a protracted correction is possible there in the nature of 25 . We have seen this impressive growth in china over 20 years and investors have wondered which stocks they should go for to benefit from that. For many years, it wasnt terribly rewarding. There have been rises in prices over time but not as impressive as this last rise. We should now turn into bubble territory. You have to be in for the very long run. Caroline but bring it closer to home with the United Kingdom the. The british pound under pressure last week. Uncertainty starting to weigh on the markets. Interesting report coming out today from bloomberg saying that the bank of england could actually move faster, could raise rates faster if labour is elected because they would have less austerity. Nick i think that is possibly the case. A less rabid desire for european exit. The fringe parties are all very old school, left wing, snp, plaid cymru and the green party. That would drag labour to the left of the same way you cant has dragged the same way ukip has dragged the tories to the right. And out right loabour victory would do the best because it reserves it removes the possibility of a Hung Parliament and a referendum. The taxandspend policies are not the markets favorite. Mark it is certainly beginning to be felt in the currency market. When might the stock and guilds market catch up . Nick i dont want to give an exact date is a question of exact date. It is a question of polls, really. I think the conservatives will start to increase their lead as the date approaches. We saw a slew of very carefully targeted announcements in the manifesto. Policies that arent going to please every part of the electorate but, i think it will please the critical parts in critical, marginal constituencies well rather cynically while rather cynically during the message that there are some people that will never vote tory. Mark do you think the promise of a referendum by cameron was a clever move . Nick i think in the very long run it will be seen as a clever move because i do think the conservatives will win cup either outright or with a coalition. I think many ukip voters may vote tory because they are the only ones who will give a referendum. I think in the long run it will be good for the conservative party if we havent referendum because then there will be a decision from the plebiscite. And it could stop the internecine warfare that has plagued the party for years. Caroline that of course is in the longest term. In the interim, if we go and are concerned about any referendum what is the sense of what we do for investment into the United Kingdom . It is scaremongering to a certain is the certain degree . Nick i think it is more scaremongering i tend. Scaremongering. I tend to lean on the side that we will survive the same way that switzerland has without the euro. Businesses are split on this, the markets are split but some of the markets have a too short time horizon sometimes. I think they will quickly form a view that we are just important to our trading partners as they are to us and will become more sanguine about the process about the prospect of a departure from the european union. I think it will turn out to be something of a red herring in terms of markets. Mark are you a 2015 or 2016 men yet of man . Nick i think it is september at the earliest but i do think we will see a bounce back in u. S. Economic figures over the next two or three months. I think the weather abated facts affects diminish. Caroline still to come on countdown, it a billionaire family trying to break down a multibilliondollar merger. Mark time for a look at the Foreign Exchange market. As ecb president mario draghi prepares to hold court today, i thought we would look at the euro against the baskets of nine major currencies through the eyes of the eurobloomberg correlation weighted currency index. As of today, it is only 1 10 of 1 above the low for the year reached on march 13 which in itself was a 2. 5 year low for the index. Year to date, the indexes 7. 7 lower. That is the worst performing currency on the bloomberg correlation weighted indices. The swiss franc is the best with a gain of almost 9 over the last year. As you can see, the euro is down by almost 10 , which makes it the third worst performer after the Swedish Krona are and norwegian krone Swedish Krona and norwegian krone. The other currencies in the basket of the aussie dollar, Canadian Dollar sterling japanese yen, and the u. S. Dollar. The ecb meeting today should be one of the more uneventful ones in recent months. A few key questions the president mario draghi might want to answer include, is tapering really on the cards our inflation forecast to optimistic, will the ecb have enough assets to buy, what is the latest on greece, and is their progress on Structural Reforms within the euro zone economy . That is a currency index you dont get to see every day. Over the last 12 months, the eurobloomberg correlation index is down by over 9 . Caroline lets take you on to some of the top stories on bloomberg this hour. U. K. In the party u. K. Independence Party Leader Nigel farage has said that his party is serious. They have placed tax cuts and more spending on police. Meanwhile, president obama plans to drop cuba from a list of state sponsors of terrorism. This comes a week after the president met raul castro in panama. Congress now has 45 days to respond to obamas notification. Sri lankas central bank unexpectedly cut its Interest Rates. That makes it the 20th centralbank to cut rates this year. The economy slowed the most in two years. Mark g7 Foreign Ministers continue their talk in germany or a twoday summit to discuss ukraine, iran the middle east and terrorism. Hans nichols is in berlin. It seems as i ron is iran is dominating the conversation. Hans interesting wa