A very warm welcome to the program. I am anna and words. Just facets 00 year in the u. K. Will join us in dubai. The French Banking Group reporting their numbers, q1 profit at 227 Million Euros against the estimate of 220 Million Euros. That number beating estimates on the next level, Large Customer unit net profit coming in at 163 Million Euros. Cole reportingi that trading revenue fell at the bank began a reorganization to streamline the capital structure. The cost of a rebound, that is also of interest. Remember this european Banking Sector the largest having struggled this year, at record low Interest Rates, freezing income. And turbulent Financial Markets deterred clients from trading, listing, and other matters. That is something the whole sector has had to deal with. Back in february, we heard they were selling stakes in three dozen regional banks in 18 billion euro transaction to simplify the structure, reinforce capital, and pave the way for all caps dividends. Ollanta change happening at this particular business. We will see how that one trade at the start of the trading day. Lots of earnings of course from the european financial sector. Let us get the big one out of the way, the sea meant maker giving us the big numbers, adjusted operating numbers at swiss francs, reconfirming their commitment to the targets announced back in the summer. This is according to my colleagues at bloomberg intelligence. It is still challenged, trying to deliver the target of 1. 5 billion swiss francs, a total costsaving by the end of 2017. Theyre still trying to deliver the savings. It is the Worlds Largest cement maker. They will dispose of assets, notably 3. 5 billion swiss francs of assets, including a big piece of the indian business. The operations of the company spread across you under 13 plants and 100 different station. It is a very broad business, concerning the target today. Let us move on to german utilities. What we are getting from them, net income at 857 million, ahead of the net number of 863 million that was estimated by analysts. They are confirming the fouryear forecasts as well. That is the headline number. Remember, prices are the lowest since 2002. As germany shifts to renewable energy, both of those factors squeezing margins in europes biggest power market. Rwi and other rivals, including eon, having to put aside of course billions of euros to pay for the countrys exit from Nuclear Power by 2022. The biggest decline are on germanys bench work dax index last year. Had to suspend index to common shareholders. A host of earnings out this morning. Let us have a look at the Broader Market picture. Will bring up the risk radar. Asian stocks have been in decline, concerns about earnings decline in japan and the u. S. Reducing the appetite. We have wti, the price of oil pretty stable at 46 21 cents. That is up by 3. 5 in the session, dropping u. S. Supplies and stockpiles to blame for that. Is worth giving an eye on. Weakening a touch this morning, toyotas president keeping the pressure on japan, in regards to the currency. Saying the days of easy profits are over. Dollarcourse versus the year today. And the Australian Dollar in their down around half of a percent really reflective of that lack of Risk Appetite over 24 hours or so. Let us get the bloomberg first word news. We are joined by Rishaad Salamat from hong kong. Rishaad brazil is slogging towards impeaching president Dilma Rousseff. Debate has gone through the night, meaning the vote itself may not come until around dawn local time. 81 centers voted in favor. She will be suspended and put on impeachment trial. Nissan and Mitsubishi Motors say they are in talks for a possible d theal tied up, ami fuel economy standards. The separate incident on the Stock Exchange occurred because no decision had been made. People familiar with the matter are seeking a 33 stake in Mitsubishi Motors. Super thursday before the Eu Referendum, all economists in bloomberg say that predict no change to the Interest Rate. Bank of america and Merrill Lynch say the panel may vote for a rate cut. The quarterly Inflation Report was cut after governor mark carney was scrutinized by both sides of the Brexit Debate. That was concern about the vote outcome taking a toll on recent services, manufacturing, and Industrial Production data. Japanese investment appetite for 30 year bonds has made them, in the words of one hedge fund manner for the most expensive on earth. The local say they want more. And more are the only ones with positive yields, leaving investors with little choice what to buy. And the ceo for the Capital Hedge Fund claimed that the japanese thirtyyear bond may be the most overpriced security on the face of the air. Says he supports donald trump for president. And has backed his call for a temporary immigration ban on muslim. Speaking in las vegas, he said that the loss, so we can figure out who they are coming in. We have plenty of people here. We have a good economy. Most of those coming into the u. S. , i do not see that impacting the economy at all. Global news each day every day, 2400 journalists working in 115 news bureau around the world. If you are a bloomberg user, discredit top. , think you very much for that. Let us take with asia. Shery ahn has the data. A little bit sluggish today. Anna, that is right. Corporate earnings out of japan this morning, not to mention from the u. S. Overnight. Just gathering sentiment across asia. The nikkei did turn positive just a couple of minutes ago. Rising 2 10 of 1 . It was a negative all day. We are see a weakening yen, and that is helping exporter outlook there. Negative still down for tenths of 1 , reversing five days of gains. The shanghai composite back from the break, for tenths of 1 down. We are still seeing concerns of china, the vice premier saying that economists still face downward pressure. Down for tenths of 1 . The causing to be unchanged at the moment, but slightly in negative territory for the second consecutive day. As we continue to see the currency strengthening. It let us take you through some moves, especially in japan because he to keep an eye on the auto sector. Mitsubishi motors is unchanged. We are expecting mitsubishi to jump by the limit, when the sets a price on the close, about our there. That is on reports that there is capital tied up talks with nissan, currently down 1. 6 . But they are going to hold the discussion in the respective board meetings within the day. Toyota slumping today after the forecast, annual profits slumped in five years. Over in korea, rising the most in a month, after reports and local media saying that tesla has picked the main tire maker hancook. Slumping on pressures in the Property Market, that is as we see rising unsold units. Anna . Anna shery ahn in hong kong with the latest on the markets there. Let us get to where politics meets markets. Been votingate has on impeachment. A vote that may come around dawn local time, could and 13 years by the leftleaning party. And put Dilma Rousseff on trial. We are joined by our former you have bureau chief, been following this marathon debate overnight. This is been going on for some 16 hours or so. When and how might this end . It has certainly been a long night for the senators in the long night for the reporters in brasilia. Each reporter it 16 minutes. Nearly all of them were making use of that 15 minutes. This will not end until sometime after dawn committee 6 00 or 7 00 local time. The senators currently give a speech. They are not casting votes. They are giving an indication of what they are going to do. We are running at about 35 in favor, 14 against. That was as of a few minutes ago. And local papers are saying we may end up with about 53 in favor. They only need a simple majority. They need 41 to start the impeachment trial. As soon as that happens, if the vote goes as projected, she would need to stand aside. And i think i just saw and local papers that she spent most of the day to date meeting her aides, cleaning out her office. All indications would seem to be at this point that they will vote in favor of starting an impeachment process, and she wanted to step aside as soon as thursday morning. Anna and what happens next and then for brazil, andrew . It has seen the ratings cut to or companies. What happens next from here . Theew as you pointed out, situation in brazil is not good there. We had this decade of surging commodity prices, endless riches, and that is now gone. In brazil is facing this deep economic slump. This is very much, i think, the start of a new process, the end of anything. Beginning, thee new president himself has questions about his medical career. There is huge economic challenge, great uncertainty, i think we will have to wait and see. Let us start with the day and find out what happens. But there will be a great period of volatility, both economically and politically. Anna andrew, thank you very much. Andrew barden there keeping an eye on what is happening overnight in brazil. The debate going into the morning. Whend 6 30 local time is we might see some movements, 10 30 here in the u. K. Joining us now, just telling you that toshiba has falling numbers. The tokyobased conglomerate fourthquarter numbers coming in, we were expecting a net loss. Coming in at 483. 2 3 billion yen. Interesting to see what they have to do with the westinghouse Nuclear Power unit. There has been some news around that of course the most recent period. Toshiba, were they going to do with the forecast to return to profit in the current fiscal year . They are trying to narrow the business, selling medical units to canon. And applying business to china. Ofy are in a state of flux, course played by record losses. And after failing years of profits, this is a business very much in flux. Theyre giving the new forecast today, operating loss. Forecastingr 2016, a ¥100 billion net income. Lots of news still to come out of the japanese sector. We have that later on. Joining us in the studio, c hris, thanks for coming in. Let us talk about brazil. This debate going long into the night. We are not asking you to look into the crystal ball. But how should investors prepare for what is on the other side of this . Chris we have had a very large rally in the currency, and brazilian stock market. And i think those expectations now are very high. They will be removing, and the looks like it will happen, and as predicted by the various websites tracking the vote, so the question is now, can the Vice President step up and do the technocratic thing that needs to be done to get the economy back on track, get government finances back on track. I think the expectation for that is very high. I am hearing people talk about a salvation of agenda. I think we are very wary of the situation, it is would be very complex. Anna the function, currency rankings on the bloomberg, you mention a Strong Performance we have seen in the brazilian currency. Here it is. One theilian currency, bestperforming currencies against the u. S. Dollar, up from the start of this year. Is it all in the price, i suppose . If you say expectations are high, the Vice President can be more technocratic and deliver big or substantial economic reforms. Is it all done . Chris personally, i think it is. Im not sure that normal investors would have been in there for that ride, that was really a very scary situation. Now the situation is a bit less scary. But the price is now that much further up. Anna if we look at some of the other currencies, it is clear we have the brazilian situation politically. But we have a japanese yen in there as well. Others playing into that. We have energyrelated currencies in there. Thenorwegian krone, canadian dollar, the search higher than we have seen in energy prices. That was underlined yesterday. 3. 5 higher in wti yesterday. An Investment Strategy based around a rebound in Commodity Markets that we have seen . Chris we are not. Getting back into emerging markets, benefiting commodity prices, we are not doing that. We think thats still the benefits are really on the upswing, the importers of commodities. On a year on year basis, they should show improvements and so on. That will fall away as the year goes on. But i think no, at the moment, is a very volatile environment. Particularly a volatile commodity. Anna we ran through a lot of earnings at the start of today show. As we have done all week. Chris i think there is much i think it was a difficult quarter. Stories there were news going into recession, the u. S. Going into recession, default sneaking around the world. There were scares of market prices. But now, they have balanced themselves out of it. And so i think it will be a slightly easier Second Quarter. But this seems to be something, some aspect to weakness in the First Quarter that you really do not see in the macro. I think that really is probably the bad environment for confidence. Anna coming from high yields in the u. S. . Chris not just the energy sector, but the other ones. I think it was a Market Structure problem. Anna Chris Darbyshire stays with us on the program. Let us have a look ahead to the day, here are highlights. 7 45 u. K. Time we have inflation data. And a Rate Decision from the norwegian central bank. Stay tuned for our interview with the governor. And we get a policy decision and a Rate Decision from the bank of england. Half an hour after that, governor mark carney holds a News Conference. They will be based on both sides of the Brexit Debate. Bloomberg users can watch all of it on live go. And u. S. Initial jobless claims hitting the bloomberg. And it 9 30 u. K. Time, the u. S. Secondlargest bank, in sao paulo, that is 9 30 london time. Up next here on countdown, the worlds most expensive bonds. We look at the aspects of superlong date in the land of minus rates. Coming up. Welcome back. 1 21 in the afternoon if youre in hong kong. 7 21 in the morning if youre watching in paris or frankfurt. Good to be back in hong kong. The hang seng down 4 10 of 1 . The markets in asia a little bit sluggish, getting a boost this morning on the nikkei 225. More on that later. Japanese investors appetite for 30 year bonds has made them, and the words of one Hedge Fund Manager, the most expensive on earth. They say they want more. The only ones the nations with positive yield, leaving investors little choice but to buy the ¥800 billion, a record low auction yield of 0. 319 . With us now is Chris Darbyshire, cio at seven investment. Let us turn attention to the bond market. Crystal you have to go up to 15 years in the japanese bond market to find anything with a positive yield. Yields getting lower and lower and lower. Central banks the key to the story. Chris in the bond market, it is the most extensive asset class in the world. This is the effects of qe. And what it means is that it sends i think a very bad message to the world, that we are in a growth environment because bond yields are low. They are low because you have a very large buyer distorting the market. Anna and we have a large buyer in japan, some other parts of the developed world. In the United States though, things are little bit different. The conversation is different. I have a chart here that shows the u. S. Yield premium over japan. Japanese bonds hitting expensive, if you compare u. S. Yield premiums over japan. That is what this chart shows. This is something that investors are increasingly trading on, transatlantic or transpacific in this case divide. Chris it is remarkable because u. S. Bond yields are not that high. I think that we had the fall in the oil price beginning of the year. We have the kind of deflation fear come back, low growth fear. I think people are forgetting there is still inflation out there. And what we are seeing in the u. S. Is core inflation taking up fairly consistently, now over the course of a year. Course, that outstrips energy and food. What you have left is a broad base and rising prices. That is of some concern you look at charts like that, bond yields being where they are. Anna you think selling the bond portfolio, taking the position in inflation spots. You are preparing for that. Chris this is u. S. Inflation oregon the break even expectations have been very low. They seem to be affected by the oil price. Even though it is down 30 years, moving in line with the spot oil. We think there is an interesting trade there. In a world where there are not that many interesting trades. Anna you mention the chart comparing japan with the u. S. Yields, not particularly high either. It seems that where japanese ist is popular, u. S. Debt not completely unpopular as well. Because u. S. 10 year treasury sales yesterday seeing record sales from indirect bidders. The hunt for yields within the bond market continues. Chris there is not much to offer. I think you are probably feeling pretty insured as a bond investor, by other bond buyers out there. In the u. S. Has the fact that money may will flow into the dollar again. It has been quite week recently. But it may turn at some point. Anna this is all at the very forefront of the minds of the businesspeople. This is been a stunning week for u. S. Corporates coming to euro to issue europe denominated debt. Easing have the ecb policy to the extent that they are, it can be a really cheap place for u. S. Company to raise that. Chris absol