We have a busy day ahead of us. We have some great guests. The mood in the markets is often haven assets. Tom we see some weakness across all. I love the guests we have. To dive into productivity. We are doing around the world in 120 minutes. Thanks very much. The European Union is getting closer to a deal with turkey to stop the flow of migrants. Jacked up thehey price at the last moment. The turkish government wants to double the Financial Aid to more than 6 billion. Turkey made the most serious offer yet to stop the tide of refugees into europe. Malaysia is marking the second anniversary of the death disappearance of that boeing jet. They are committed to solving the mystery. Ships are searching the southern indian ocean this year. Chinas president thrown to punish polluters with an iron hand. There is evidence that iron hand is loosening its grip. There has been a number of days where air quality was listed as hazardous. Balancelem is the between the environment and commerce and Michael Bloomberg said he will not enter and run for president. Michael bloomberg is the majority owner of bloomberg. The front car of a commuter train punched into a creek after derailing. Nine people injured and Authorities Say it was a miracle no one was killed. The train was traveling to stockton. Our 2400ered by journalists. Over to you. Tom thank you so much. It was a quiet day yesterday. We pulled back today, futures are 15. By a good sixen basis points. That shows the pullback. Lets go over to the next screen. Fixes 17. 35. Theres the dow, nicely placed after a good threeweek run. Part of that flight to quality is stronger japanese yen today. Francine that was also on my board. You can see stocks are up 600. The yen you can see at 112. Copper is falling. This is on the back of weakened japanese data. Chinese exports are shrinking more than expected. U. S. Treasuries are falling. We just heard. He did not talk too much about brexit. He said that he wont publish the full analysis of the brexit issue. He does not want to be involved in the political debate. He has been trying to avoid talking about it. He did say one thing that was significant. He said they have the tools to deal with any financial ability stability. Thats different to what weve heard. Tom that is very different. Francine and i dont talk about whats on our data check ever. We never talked at all except if it has to do with the butterfinger candy she brought back for caroline hyde. Its important that we see the same thing. Lets go to the bloomberg. This is the theme to the program. This is the four year moving average of american productivity. I moved out the quarterly data. This is the expansion in the last decade. Greenspan was way out front and identifying this good productivity. This is the mystery. Right now. Re one of our big themes today. England the bank of president is still giving his testimony. Is john. S thank you so much for joining us. He made it clear hes not going to get into the brexit of eight. He did not share the views with the cameron. He is independent. What do we actually learn . He has a handle on the situation. John he may not want to talk about brexit much. He is going to be forced to do it. They want to propagate the idea that they are politically neutral, but everything takes place in the context. The bank is in a little bit of a bind here. Its going to be jumped on by h sides of the debate debate. It could be used to suit whatever arguments the side of the campus to make. Francine we can remind ourselves that the last governor was in front of the same committee. He said he did not have the tools to ensure financial stability. Mark carney says they do no matter what happens. John they can be told that whatever happens on either side of the date, you can do it. Tom i know you are the one guy that can Talk Straight on brexit. Mere you explain to mortals what london has to fear . I dont see a replacement for london. I dont see luke johnson moving to europe. Explain to me why i should be worried that london will be diminished if the u. K. Exits. I think it will be improved. I think there are regulations and restrictions around us as part of the eu. I think pain in greater control of our destiny and a more democratic nation, Less Beholden to on elected bureaucrats in russells will be healthy for london. I think we will thrive. Kingdomng up the united of gdp chart. This is real gdp. Luke has this tattooed on his left arm. The u. K. Is one of the great successes of the global economy. There is that little bit of a recent rollover. Do you link this into your analysis of gregs it . Exit . Global think its a factor like the commodities decline in the slowdown in china and brazil and other countries. I dont believe the exit is inhibiting growth. Francine you need to find a chart that talks about sovereignty. Its very clear that luke is on the brexit side. This will harm the recovery. The risk of brexit is hurting investment. Luke i dont know that thats proven. The investment and political move should be dictated the longterm consequences, not shortterm volatility whats comes and goes. Which comes and goes. Do we have sufficient toxibility in our system thrive in the 21st century . Locking ourselves into a rigid system with 28 countries that cant agree. We are not part of the eurozone, which is a failing union. We dont want to be part of an ever closer union. I dont see why we should remain part of a project it isnt succeeding. Tom you read 14 papers a day. How organized are the proeurope crew in the United Kingdom . How organized are they right now . John it seems like there is a reasonable amount of organization. Determination not to repeat the mistakes that were made in the runup to the contract. The Business Elite left it too late to weigh in on the side of staying in. Energyseeing a lot more on both sides and more organization on both sides than we saw in the runup. There are a lot of nuances here. A lot of people say its better staying in and renegotiating. Some say we are better off with sovereignty issues. What do you make of the concern . People panic and you see a shock. This is when we did when we met lehman go. We will have a minimum of two years to renegotiate our trade agreements. We are the fifth largest economy in the world. I dont see why we will falter. Currencies fluctuate anyhow. We export less to europe than they export to us. Interestbe in the eus to see us not succeed. Tom thank you so much. Luke will continue with us in the hour. We have huge news on china this morning and their lack of exports. In the next hour, we are bringing you Deutsche Bank. We will talk about wall street as a utility bank. This is bloomberg surveillance. Tom tom francines fired up in london over brexit. What a great conversation. Tuesday, herehis is remy understands io. Overseas shipments in china fell 25 . That is the biggest decline in seven years. Slowdown in global trade is making it hard for chinese leaders to keep growth in the target range of 7 . Nike has suspended its contract with Maria Sharapova after she failed a drug test. Forhad been taking a drug Health Reasons for a decade and did not notice when it was put on the banned list. She signed an eightyear deal worth 70in 2010 million. Shares of burberry are searching. Is luxury goods maker looking at a takeover offer. They are prepared for a bit after a mystery investor took a 5 stake. That is the business flash. Francine i spoke to burberry sources last night. Tom ill bet you did. Francine she said they are monitoring the situation. When you go above 5 , you dont have to disclose who you are. This person went above 5. 4 but then came down. They are trying to find out who that mysterious person or group of people is. It could be an activist investor. They are looking good the moment. Tom do you buy burberry in london or do you buy it on 57th street in new york and mark . Francine a lot of people are shopping around. They are not speaking to the worldwide traveler. If we talk about brexit and the pound goes down, i might start buying it back here in london. We have a very wellknown entrepreneur who is proexit. We talked about your reasons. My argument would be why take a risk . We dont know what the u. K. Would look like. This could hurt innovation and entrepreneur is him. Entrepreneurism. Luke innovation requires risktaking. I think the for countries to thrive, they need to evolve. They cant remain static. One of the great problems of the eu is its not very good at creating jobs for innovation. Tom but the u. K. Is. Luke i think some of the regulations and restrictions that we suffer under the eu would be lifted. Would have a resurgence of belief in democracy. I think the eu has in a way damaged the peoples faith in politics and Political Leadership. I think that is, across europe. Francine unlike the u. S. Luke i think if there were votes, it would be closer than you think. The dutch and the danish and the germans are looking at us, saying how come they get to vote . There are many other challenges of making the eu work. Tom you are a fossil in this business. Where do the young kids want to be . I know they want to be in berlin. We have cool people like hans nichols, they want to be in berlin. Everybody wants to be in london . London is thriving thanks to bright younger people and older people as well. They are starting businesses. They are generating investment. Growth and job creation are at the top of the tree in terms of the eu. We have pretty good demographics compared to other members of the eu. We have a better pension provision. I would say there are many being independent. Can paris or amsterdam ever compete with london . Luke they are wonderful cities. I think in financial terms and entrepreneurship terms, they will not outpace us. Tom luke johnson will continue with us this morning. Tomorrow, we are thrilled to lse. The this was my book of the year last year. Brexit. Talk about this is bloomberg surveillance. Francine we were saying than mark carney tried to avoid the Brexit Debate at all costs. He didnt want to get sucked into this. He is being grilled about how it could affect the Pound Exchange rate. He just gave us a glimpse of what could happen if the u. K. Were to leave. Brexitso tied with the debate. Its time for my morning mustread. This is by mark gilbert. The regulators dont want you doing anything exciting. The public despises you. Johnson, one of the best entrepreneurs we have had in the u. K. Is still with us. Carney you make of mark saying it may affect the Exchange Rate . People said when we joined the euro that if we didnt they would be doomed. They were all wrong. I think we will prosper. There may be shortterm volatility, but we will overcome that. Tom you are a nonbanker, i get that. How do you perceive u. K. Banking not restructuring to complete the european tanks . Banks . Barclays, hows, do they pull that off . Luke i think its really tough. Being leads they are by the regulators. They are finding it hard work. Attracting example talent to banking is more of a challenge than it was. ,here are many plate people they are now becoming entrepreneurs. That is good news. If they start successful businesses, that will be good for the economy. We dont want to lose our banks. Mba courses, the most popular career would have been investment banking. Now, im certain the largest would look to start their own business. I think thats good news. You very muchk for this spirited conversation. Coming up, she is the jpmorgan Vice President of asiapacific. We will be asking her about emerging markets and deflation and devaluing. Thats coming up next right here on bloomberg surveillance. Tom good morning, everyone. Bloomberg surveillance. Right now, heres remy. And its primary again republicans have four states. Is michigan. Hillary clinton leads in michigan by double digits. Bernie sanders is doing better with younger voters. Justin trudeau says donald trump may turn 10 down his rhetoric. He meets with president obama this week. He suggested the things trump needs to win the nomination are tongs you wont say resident. A magistrate ruled last week that apple did not need to cooperate. They have helped the government on leak unlock iphones in the past. Tomakers are considering give police more power to fight terrorism. There was a bomb in gun attack in the capital blamed on islamic state. The government want police to be able to detain a suspects for up to six months. Syria, the u. N. Has begun providing food to a rebel held area outside damascus. The ceasefire has made it in to help some of the millions of people displaced. We are powered by our 2400 journalists. Thank you so much. Concerns over japans reinflation program are boosted by numbers. In china, exports tumbled 25 . In february. Epened its been challenging for policymakers to keep the economy moving along. Its great to have you on the program. Its great to have your thoughts on this ominous day. They have a 6. 5 growth target. These exports are worrying. Jing the numbers are not surprising. The month of february is a short month. There is chinese new year. We cant just look at one months number in isolation. Pictureook at the trade , china has suffered from a decline in exports for the past 12 months. This month, we need to take in conjunction with january figures. Going forward, when the Holiday Season is over, we can look at the pattern. The most important thing is we know china can no longer rely on exports to drive growth. That makes it more important to stimulate the economy. Francine the problem we have heard is they want to focus on growth. Toy will do what it takes get growth where they wanted to be. What does that mean for reforms . Jing this is a fine balance between reform and restructuring. China has unveiled a host of reform programs, including a supplyside reform. Sectorve a financial reform. China needs to stimulate the economy because growth cannot fall too far. You will have unemployment. In 2016, we can see the supplyside reform unveiled. Creating means is Industries Like steel and aluminum where there is a lot of overcapacity. The government will reduce the supply. They will get down on housing inventory. Tom you and i are on the same page saying a oneyear average. The yellow line is the one year moving average. This is remarkable. And the down in exports depth of this back 20 years. We have never seen this before. Chronic we seen this export slowdown and is the solution a currency depreciation . Jing tom, there are several reasons. There is a Global Economic malaise. Experts ely on exports to drive growth. The current environment is different. Was weaker currency last year against the u. S. Dollar. It was stronger against other currencies, including the yen and the euro. Tom this is critical. What is the prescription from you and jpmorgan to jumpstart this . Against aart managing basket of currencies . The forwards solution. Tothe past, people were used the relationship the dollar. The chinese r b should be looked at other countries in the basket. Year,december 11 of last when the index was unveiled, we have seen a stable Exchange Rate against the basket of currencies. U. S. U are expecting the dollar to be stronger compared to the pound and the yen and the euro, the chinese would be weaker against the dollar. Francine what have we learned from authorities . He started speaking. Given what we have heard from the air, they are pushing didnt monetary policy. How can we understand what they mean . Communication has improved in china. Silence from the central bank governor. Now they have broken the silence. That is very good. Many senior officials of come out to speak. This has eased some of the concern toward china. In terms of monetary policy, the phrasing is an easing highest. That is a code word. Francine can we see more intervention as well and mark well . Jing they are going to undertake openmarket operations on a daily basis. Tom where is hong kong in five years . We have really moved on from the excitement of the shift over to china. There is hong kong in five years . Jing hong kong has been a big beneficiary of the connections with china. The hong kong economy has boomed. Years, hong kong has experienced many challenges because of strong dollars. Hong kong is very expensive to do business. Land costs are very high. Forward, hong kong has to continue to reinvent itself. The major advantage is its close to china. Is theng Exchange Listing avenue for many companies. I think in the future, you will see more conductivity between the exchange and the mainland exchanges. Ais year, we will have connect introduced that will bring more International Capital to china and bring more Chinese Capital into hong kong. He will continue our discussion with jpmorgan on china. Some very difficult export data. They are moving to a 12 month study or a threemonth study versus onemonth data. Morning, an this important conversation with the chair of the securities and exchange commission. Look for that in the 8 00 hour. This is bloomberg surveillance. Francine tom keene is in new york. We talk a little bit about women in the boardroom. We talk about what is. Jpmorgan vice chair of asiapacific is here on International Womens day. How different is it in china compared to the rest of the world. We talked to a lot of female ceos. You dont need quotas because of the back story of the Chinese Communist party. Jing women in china have enjoyed equal status with men because of what chairman mao ago, women hold up half the sky. There are very few female ceos. Boardroom, the chinese boards are very different from western boards. The way they operate is completely different. I would say in asia in general we are seeing the rise of women in the corporate world and in Political Leadership positions. In situations like japan where they face a demographic challenge, they could include more women in the workforce. Francine we talk about women and economics, this is one of the big Research Centers they are trying to promote. I picked out a morning mustread from the World Economic forum. If you look at the place women revolution,ustrial the job losses will be for women. A computer and laptop, people dont need to know that you are female. Jing there shouldnt be any gen