Should work on a clear path forward to provide reassurance about potential market distortions or risk from the latest stimulus effort. The yuan headed for the biggest two day gain in a month. The move came after a decline in the dollar that saw the bloomberg dollar index fall 1. 1 25 month low on thursday. That extends the fall after the Federal Reserve scaled back its forecast for Interest Rate increases this year. In brazil, a judge issued an thenction suspending presidency chief of staff. That is as congress restarted the impeachment process. Antigovernment protests continued overnight intima brazils biggest cities. In some of brazils biggest cities. Anna thank you very much. Now lets get into our chart for the hour. Guy johnson joins us with the chart. Guy it was over there. Anna it was there . Manus i apologize. [laughter] manus this is live tv. Anna something about the dax. Guy it is rallying. But we will see today is the running out of steam of the postfed rally. This is the chart here. Dont worry about it, live television. As a result, we have seen what is interesting is what you the idea people are moving money out of europe. I think this is quite interesting. Youve seen this underperformance which has been quite interesting and pronounced hasite the fact that draghi done what he is done. It is a question as to whether or not this carries on. Weve seen the spread between the mining stocks and the banking stocks. People, particularly the u. S. Investors have been taking money out of european funds and repatriating them. Anna that is actually looking at the rest of the year. This was the big long position. That was against the 12 again. One of the other graphics we did was this rally. It ties back in, oil is on a tear. We have locked in 24 it is mike gupta 2016 losses. Is this momentum in markets it was a vicious downside swoop. Here we are in terms of a reprieve. The trust these . It may be running out of steam overtime, but ticking up on the argument what is the next story . If we can get some stimulus rather than austerity it does suggest that when draghi is looking at fiscal policy there is a role for that to sustain the expectation for better growth going forward. The question then is Monetary Policy authorities have done what theyre done. We now move on to the next phase . The g20 has been calling for more balance of measures. John balance is key. If all youre doing is using the Monetary Policy tools, that creates a lot of imbalances. Mario draghi taking all the credit overnight, by the way. He is saying i did it all. Make sure we need to do more. The central bank is increasing. A little bit of help would go a long way. Lordson said that George Osborne is right. To austerity,tick however that is defined in the g20 is wrong. John i will not just channel my father, which is what they said earlier. Have the prince said i plot, i will go for fiscal stimulus as well. They can do it, because their debt to gdp ratio is fairly low. They can issue the debt at very low Interest Rates. Guy sounds like germany, to me. Anna guy, thank you very much. Manus it has been a busy week and that is in understatement for Central Banks. To russia. Re over how will they deal with the plunging price of oil . Analystsajority of expect the benchmarked remain at 11 . Joining us now is a russian asset reporter. What do we expect from the Russian Central Bank today . Should there be no changes . Be a veryay will interesting meeting. Even a few weeks ago everyone was confident that the bank of russia would not change today. In the past few days, oil trading above 40, and the dovish fed statements, the bet that the central bank might actually cut the rate by 50 basis points have picked up. It is a very interesting day. The majority of economists expect there to be no change. The central bank signaled a message and said it might hike of the rates because we are in a totally different environment barrell sliding to 27 a with the ruble falling off the cliff. Now we will see if the central bank will adjust that quickly. Or whether it will choose to stay conscious and keep it unchanged today. Russian assets reporter, thank you so much. Anna brazils political wrangling has taken a new twist. Teams are plan to install a predecessor as chief of staff has backfired. Has beens appointment suspended. Masses of protesters of taken to the streets. Our bureau chief filed this report. Busy thursday in brazil that started with the swearing in of the former president as the chief of staff. Her mentor and predecessor now he tries to fend off impeachment attempts. The swearing in ceremony was filled with protest inside. On the streets, people banging pots and pans, very unhappy he was taken off of this post about 30 minutes after he was sworn in, a judge or suspended and said he cant start because he is being investigated for the carwash probe. Investigators reacting pretty well. ,oday was positive here brazil stocks went up, currency also strengthened. Ee what happens for the rest of the week. Their protests scheduled for friday. We will see what the next few sets are. That was a report there what is going on in brazil. My mind was elsewhere. That is a very specific sample of what is going on in brazil. Al qaeda turmoil in that situation. You can look at other parts of the world right now and get nervous a lot of turmoil in that situation. You can look at other parts of the world right now and get nervous. John Political Uncertainty creates economic uncertainty. Especially in the brazilian situation, it is a major market. But it is pretty isolated in terms of what goes on in south america. You look for investors, people thinking of putting money there. People will tend to shy away. Going back to the european situation, again there is less support for stimulus. There is less unified views that we can spend some money and get this thing going. I think, again, when we look at Economic Policy going forward, we need a better balance between monetary and fiscal policy. Political uncertainty limits the attempt to get that balance. Talk about the u. S. Elections through our prism on many occasions. Using a variety of language in this country in terms of hillary clinton. John what do you mean . Manus i am being generous. What is our biggest market risk situation wetical find ourselves in between trump and clinton . Is it polemic . Think it is. The market will react to comments that individual contestants will make in the president ial race. The whiteirant to house might a comment about orde, or china, or mexico, capital gains. Again, it creates a huge market move, creating uncertainty. What exactly will be the policy . That is why it is intriguing when you see a little bit of the conquernt the yuan has relative to the dollar. It is taking a little bit of fire away from the antichinese rhetoric. Home. Ys out well at the Exchange Rate is adjusting. Has depreciated little bit. Maybe our position is a little bit better, manufacturing is better supported. This could lead well. Both trump and sanders have had some currency in talking with the limits of global trade. From completely different ends of the spectrum talking about how it doesnt deliver benefits in their view for all americans. To sayt is interesting that, different ends of the spectrum. That is a good point to be made. People on the left and right concerned about the limits of trade. And the fact that in many situations trade benefits the average american consumer. On the producer side, there are people getting displaced. Read china and the u. S. , or listen to the fed speak, the dollar reference 20 times in december. It had x number of sightings. To make it this whole discussion about china. China doesnt matter, china is only 8 of the exports in the u. S. Why, and how does china manage so much . I know the globe, without relationship with the u. S. John in my presentations with clients there is a graph that i use. Of the top seven u. S. Trading partners, japan, south korea, and china are three of them. Interlinked. S it is not china by itself, but the secondary impact on japan and south korea. Asian trade is extremely significant for the United States. Both as an importer and exporter. It does matter more than the 3 or 8 people talk about. Not a terms of the actual trade, but also the perceptions of a the opportunities are going forward. Anna do we know enough about the contestant in the president ial race, or what they would stand for . Can reform and educated argument about what is best . John i would to the answer would be no. Time and again, they say once they win the primaries they drift towards the middle. What does that mean in terms of tax policy . What is drifting towards the middle mean . Thes nice to play for extremes, neither have your core democratic and republican constituencies in place. I have to go for that 30 of the middle. You have to say only really going to do some of the things i talked about in the primaries . No, we are going to do something else. Manus do you think trump will step back from some of these outlandish statements . Debateven in the last many of the comments are about this is much more simple or a casual discourse. Absolutely. Again, the relationship between the United States and china will be for the next 50100 years. We have to think about this is a longterm arrangement. And it doesnt help to be yelling and screaming at each other. Rather, we need to work on certain things over time and that is the way we will approach it. Anna take a somewhat for spending the last 50 minutes or so with us. Chief economist at wells fargo. Manus coming up next, more money these of free travel and a fasttrack to eu entry. Look at turkeys demands. What are they prepared to really offer . Back, 648 in the morning here in london. Ubs said it is allocating 40 more money for bonuses from last year. Total annual take coming in and 14. 3 million. 2015 was a switzerlandbased bank it was its most profitable year. They still plan to make the final decision to go ahead with an 18 billion pound Nuclear Power plant in the u. K. That is according to people familiar with the matter. They said the approval for the project could come this month. There has been speculation about the future sense edf said the project would put the company under too much financial strain. Valeant has taken steps to reassure employees over the companys plunging share price. Yesterday, he sent a memo saying the business wont go bankrupt and apologized for the recent turmoil. Shares are down by 57 this week ing in value on tuesday. Full control given to a Systematic Trading hedge fund to david borden. That focuses on macro strategies according to a person with knowledge of the matter. Shot or spun off noncore money pools as part of the plan to focus on its Macro Hedge Fund strategies. Main hedge fund lost 32 during the first 14 days of march and is on course for one of its worst monthly performances. That is according to two people with knowledge of the metal. Matter. Is down 27 this year. You very much. Lets switch back to policy. The eu president s meeting with the turkish Prime Minister this morning all to have turkey extend the refugees into europe. What was the reaction likely to be in turkey to this possible deal . So in returnght, for deal on the refugee crisis the refugees,y to and free travel for its citizens. The latitude may be easier to accomplish. But eu membership talks a be the main sticking point. He has been striving to get into the eu for three decades. Turks dont see this as a possibility in the shortterm. They struggle to pass all chapters. This because, the president is increasingly ruling with an iron fist. Turkey has issues with human rights and media freedom. See what they managed to resolve. There with the latest from turkey. Anna lets get to another part of the story. We are in brussels this morning with a guest. Good morning, again. i am joined by a member of the european parliament, his them as Richard Ashworth he is here to talk to us about both the refugee crisis, but also other things when it comes to the u. K. First off, i want to ask about the deal to solve this refugee crisis. In the european parliament, you are on the budget committee. Youre involved in where the 3 billion euros that the additional would come from. What does the eu have to give up to get those 3 billion euros to turkey . Lets be clear, we will not solve the crisis overnight. The crisis is huge stop it is on the mic 3 Million People living in turkey. But the European Union has decided to do is take control of the situation rather than manager crisis. Acceptg that, we have to coming to this decision. Now that they have a two pronged improve the loss of the people in the camps and to regularize flow. Words, to stop the people trafficking. With theit a problem u. K. And many others dont want to take in the refugees. The u. K. Is planning on taking on 20,000 over the next five years. Opinion is now accepted this is a collective problem. It is everybodys problem. It needs collective funding, and a collective effort. There is money being made available. 3 billion euros have already been assigned in february. There is no more money contingent upon turkey meeting certain requirements. Ryan i puritanical heritage makes difficult for me to discuss this explain, was the british Prime Minister discussing the tampon tax . Of the that tax is part Single Market. If youre going to have a Single Market on a level Playing Field you have to understand that it has to be a level taxation right across the European Union. Currently, in fairness to the treasury, the United Kingdom has an arrangement whereby the tax level is the lowest possible. I expect people will say that is too high. I rather hope that the chancellor will put pressure on the European Union colleagues to say we want that. Skeptics will say it is the tip of the iceberg and a manifestation of the fact at the u. K. Has lost control over its tax policy. Richard that is not the case. To the skeptics the one thing you want to remember is the Single Market. If you want that, you cant pick and choose. If you want a trading relationship has to be a level Playing Field. To turn around and say everybodythe tax and we dont, that is having your cake and eating it. You cant have it both ways. Ryan for insulation, solar panels, do you see the british Prime Minister bringing these things up . he can come up at this is the nature of the thing. If to persuade other people that this is what you want to do. We take enormous benefit from the Single Market. Trade, that is a huge value to the United Kingdom. You cant pick and choose. There are rules, and your to play by them. Brian in this battle over brexit, which is in the lead campaigners are a bit disorganized . Some are saying we are a little bit lucky . Richard you might well say that. They cant seem to agree among themselves with the future looks like. They want to get over a better life out there somewhere. The message in the campaign will say look, there is no substance to their arguments. I think people will have to understand that if you leave the European Union you run the risk and break up the United Kingdom. Ryan thank you very much. Back to you. Anna back in two minutes. Manus the u. S. Currency makes its steepest decline in more than four years. The yuan has its biggest twoday gain in a month. European leaders are for 3 billion euros to help turkey with the migrant crisis. Draghi on the sidelines. The president has the eu leaders the central bank has no alternatives. Manus welcome to countdown. Anna welcome to the program, we start with some inflation numbers. Manus or deflation numbers. Anna we have a reading of 3 coming through cents february. 6 at was an estimate of2. Decline. We were expecting a fairly significant number. We got a slightly bigger decline that has been anticipated. The focus of the ecbs problems us a go further and negative territory. See how much deeper can we actually go . Switching our attention to futures, it was probably more to do with oil and the dollar move which is probably weakening. Lets check in on the features at the moment. 0. 9 i1 in london, at should say. Banks have all driven the markets higher. You are seeing a little bit of a drawback on some of the bigger risk moves. Emerging markets on the cusp. Oil is still above 40. Those are the things that are driving these markets. We may take a little bit off of that. Lets have a look at what is moving. We have a little bit of a move in these markets. Start of thisthe month and the strength in the korean yuan. Adding to appetite for emerging markets it seems whether it is currency or equities we talked about. Bloombergs first world news. First word news. Leaders attempt to contemplate a deal to help the full refugees into europe from turkey. They will offer turkey and extra 3 billion euros but assurances made last week about turkeys eu membership talks and a waiver of these are requirements on turkish travelers of all been watered down. Mario draghi told European Union leaders that the ecb has no alternatives to its recent rate cuts and policy actions according to people familiar. He told leaders they should prioritize moving forward for the euro area and providing reassurance that potential market distortions. Yuan heading for the biggest twoday gain in a month. The move came after a decline in the dollar that saw the bloomberg dollar spot index fall to five month low on thursday. That extend after the Federal Reserve scaled back its forecast for Interest Rate increases this year. Month in china rose last the most since march 2015. Gains were led by the major hubs and come after banks eased credit in the government loosened curbs. In brazil, a judge issued an injunction suspending the chief of staff nominatio