Commiserate their loss at the ballot box. David cameron says the union cannot ignore the shift to the right. Youre watching Worldwide Exchange, bringing you Business News from around the globe. Welcome again to Worldwide Exchange on this nice tuesday morning. Weve got plenty coming up on todays show, trying to stop the smog. Beijing cracks down on air pollution as it plans to pull millions of overpolluting cars off the streets. Well also be heading to cairo where the egyptian election is in full under the watchful eye of the military but just how democratic is the process well be asking . Also, are you looking for new investments . We speak to an expert who encourages investors to turn to the new world rather than the old. So stay tuned to find out why your next business trip should be somewhere like ba gogota. Interesting. And astrazeneca in the red after pfizer confirms its thrown in the towel into its bid to take over the British Drugs firm. Pfizer withdrew a 9 billion pound offer and must walk away for at least three months. Ian read has hit back at the uk government, criticizing britains complicated takeover rules for the missed opportunity adding that regulations capping drug prices discourage investment in the uk. He also casts doubt on whether his approach for astrazeneca could be described as a foreign takeover, saying astra has a huge presence in the u. S. Astrazenecas response says the firm has attractive Growth Prospects and momentum as an independent company. The chairman also welcomed the effort of the Management Team over a period of uncertainty. Katherine boyle joins us to talk more about this. So walking away with a bit of a bitter taste in his mouth in taking a swipe at the uk government as he does it. Absolutely, julia. Theres a rocky early courtship for astrazeneca and pfizer. Its definitely gone a bit bad romance. What youve got is a testy statement from ian read, criticizing astrazeneca management and the uk government, generally coaching it in terms that are quite bad tempered. Having said that, that doesnt mean pfizer wont necessarily come back to the table for astrazeneca. They have three months in which they can try and woo sha shareholde shareholders, obviously while sticking within the complicated takeover reels. If astrazeneca management are persuaded enough, they could come back. If not, another six months time, pfizer could come back with another deal. I thought it was interesting last year,en was saying this deal shouldnt go ahead. Were concerned about what pfizer will mean for r d and research in particular. Now analysts are questioning whether or not if astrazeneca has the goods to continue alone Going Forward. Does this make them a target for somebody . Else. I think theres only so many peoples that have the cash needed to stay astrazeneca out and pfizer is one of they will. There isnt that many Big Pharmaceutical Companies that would be as good a fit. One of the key attractions for pfizer is the tax inversion. Another question is whether that tax inversion policy will be in place if pfizer were to come back for astra in six months time. Theres a potential deal in the pipeline. I cant see them doing that in england in a short spell of six months. It would be surprising. Thats one of the reasons pfizer seemed to want to get this deal done. In two or three years time will it still there be . Yes or no, do you think theyll be back . I wouldnt be surprised. Katherine were joined by yannick noll. It might be a victory for astrazeneca. Because now they will be under incredible pressure from the shareholder that theyve lost recently that will demand very, very strong result which will be very difficult in fact to achieve. I dont think as well they will be likely of astrazeneca anytime soon. If pfizer doesnt come back in six months time, i think it will be very difficult for the company to continue on the same track. What about for pfizer then in the interim . What about them looking at somewhere else, merck, bristolmyers . Whats the prospect of them looking elsewhere . It is more target, more potential target. Absolutely. Potential there . Yes. I think obviously there are a few targets. Im not sure they will be able to extract as much synergy or costcutting tax incentive for the other target but its a possibility, yes. All right. Yannick, good to have you on the show. Youll be staying with us. Siemens is readying a former offer for alstom. The deal reportedly involves the transfer of its rail activity and less than 7 billion euros in cash. The cash component is smaller than ges offer, half of what the u. S. Giant is offering. Both siemens and alstom have declined to comment on the report. Shares in Intercontinental HotelsGroup Trading significantly higher after press reports that the hotel has rebuffed a 6 billion pound takeover bid from a u. S. Rifle. According to reports on sky news and in the telegraph newspaper, the board of the crown plaza and holiday inn operator met a few weeks ago to consider the offer but agreed it was too low to accept. According to analysts cited, the missfully bidder could be starwood or a specialist investment firm. We dont know. Stay tuned. Well be talking with william vereker, head of Corporate Client Solutions at emea. Thats coming up at 11 00 cet. Any questions or thoughts for yannick, get me worldwideexchange or tweet me juliachatterley. You can also email at w Worldwide Exchange wwch worldwideexchange cnbc. Dom. The uk independence partys historical gains signal the setback, too. Prime minister David Camerons conservative which is face National Elections in a years time. I think the results show a very clear message, people are deeply disillusioned with the european union, the way that its working and the way its working for britain. They want change. The challenge is for my party to demonstrate they with have the plan to deliver that change, renegotiate britains place in europe, get a better deal for britain, to change europe and put the choice to the british people in the referendum before the end of 201. That is what well do. The real test for that plan will come at the next general election. Nigel celebrated his victory, a major win for the euro skeptic party. First they ignore you, then they laugh at you, then they attack you, then you win french president Francois Hollande used his latest speech to express concerns over eu power. Still with us, yannick naud. I dont see this as a catalyst for thoughts. What are your thoughts . The main risk for the parliament if we have a large group of people that have the power to block any kind of deal or arrangement, i think there will be a larger representation of antieuropean party, far left in greece or the far right in france or italy. Its very unlikely they will Work Together in order to push for specific legislation. I think theres quite a big possibility that most of the vote will not exist because it will not really be represented in terms of people working for new legislation. As much as we will have been concerned about what this will mean at the eu level, what were seeing is very little because theyre not a cohesive group. They have different views. Quite frankly most of them dont it the like each other. They cant combine to push for change as far as at the european level is concerned. What about the National Level then . Yes. I think the main impact is for domestic policy. In italy, the clear winner is h hamzi. In france its the opposite. You have Francois Hollande which is weaker an weaker. In march, they lost new possibilities for election. After this blow, it will be very, very difficult for Francois Hollande to implement what has been announced but not yet implemented, which is 50 billion of consolidation and structural reform. In the next three years theres a risk nothing will happen. I think its interesting the reaction in the markets yesterday is they ignored the people that were punished, the likes of the uk and france. They celebrated spain and celebrated arenzi in particular. He said were not going to have elections, this government will remain until 2018. Do you buy into that . In italy, we have seen a drop recently. It is coming back. Our strategy for peripheral bond is coming back. Well have further news on the 5th of june, we think italy, spain, it is probably the right thing to do. The expectation is not incredibly high. Now the yield is obviously much lower than six months ago. Yannick, great to get your thoughts as always. Yannick naud, managing strategist. Ukrainian forces launched attacks on donetsk airports to take back control from prorussian insurgents. Dozens have been reported dead and injured in the clashes. While gas talks continue, the ukrainian Prime Minister says the gazprom must return 2. 2 billion meters of gas stolen due to the annexation of crimea. Steve is in kiev. I see this as positive that these gas talks are continuing. If we listen to nafta, the gazprom talks are pretty much stalled and the Prime Minister saying we need to reach an agreement by thursday or well have to take this to arbitration. As far as i can see on the surfa surface, these talks are going nowhere fast. The fact that theyre talking about going to arbitration rather than walking away from each other. The fact that you have minister to minister conversations as well, i think thats absolutely positive. Im not going to take the negative just yet. Youre right. Nafta said we want progress. Yatsenyuk said we want back the gas that was stolen. Comments are coming from lavrov and poroshenko about normalizing things. He said we dont want the russian people to be suffering any more as well. Everyone is making the right noise. We cant look at the gas talks in isolation, including the june gas bill, yes. The ukrainians owe a price of somewhere in the region of 5. 1 billion to the russians. I know the ec commissioner was hopeful that some of this down payment could be made in advance and we could move forward from there. Its no the in ice lay we see the talks. Links between russia and ukraine happen on a multitude of levels as well. The trade between the two nations as well. Around about a quarter of trade done in ukraine is done with the rugs as well. Despite the fact theyre west leaning and looking to Greater Association with the eu and financing from the inf, very important relationships still. Im moderately positive at the moment that the right noise is being made. This one issue, can be a step forward. When you were here, julia, we didnt have a government, a legitimate leader. The russians recognized. Yet a couple days later within the russians are saying we recognize the will of the people. Poroshenko got an astounding 55 of the vote. Most negatives perhaps not in the gas talks, the russians are saying, do not attack the separatists. Poroshenko is saying we will not deal with terrorists as well. The language is very far apart on this issue as well. Well get an update within the next hour and a half from the authorities here. There has been enormous blood shed in donetsk at the airport there as well. One side saying as manies a150 casualties, the other at least 30 as well. There have been deaths. That is of course violence in a region which is needed to bring back in the fold if poroshenko canute his country. Back to you. Well catch with you later in the show, as you said. Thank you, steve. Lets look at the performance right now after european stock markets, 64 greens to red this morning. The stock market up 0. 1 . The uk markets yesterday in particular were closed. Were making gains, catch up gains for the ftse 100, off 0. 3 . Relatively unchanged for the dax. Strong gains there in yesterdays session. The cac current losing a bit of ground and still the ftse mib, the key outperformer, up 3. 6 , continuing to add to these gains in todays trading session so far. Lets take a look at the top stocks, key movers. Africa focused oil and gas company has slummed to the bottom of the stock 600, ophir energy. That down just shy of 5. 5 here. Accor gaining just shy of 1. 5 after the group said its spending 900 Million Euros to repurchase around 100 hotels in europe. Accor sold the hotels to morpark for 747 Million Euros back in 2007. And over to the uk now, and weve have i. T. Engineering firm aveva trading to topside, gaining more than 11 . The pretax profit jumped 11 and the company says its confident on nurnlg growth. We spoke to the ceo earlier and asked him as whether a high margin business, if a strong pound really matters. Were still growing the business in spite of that. I think, you know, its perception as you say. Its a question of reporting. If we were reporting in dollars, things would be different. You know, it swings in round abouts. Quick check on bond rates, bunds relatively unchanged. Continuing to see the descent. Uk tenyear gilt, 2. 64. Mario draghi spoke yesterday, reiterating his vigilance as far as the dollar is concerned. Were sitting around or flirting with that 200 moving day average around 1. 3635. But lacking movement in either direction right now. Next week is the key. Dollar yen under a bit of pressure, 101. 80. They were significantly higher than the years low we failed to breach last week at 165. We were talking about dollar yen. Right now lets check in on the asian markets in particular. Political risk is the topic de jour, sri. What are we seeing now as far as india is concerned . We now see a new government in play. Thats right. Were seeing give back in the markets, although this will probably be constructive for the higher level. Air has been named the new finance minister. Hes seen as a safe pair of hands. His comments are worth listening to. He said that the emphasis of this budget is really going to be squarely on fiscal consolidation. There could be a drag on growth rates as that tightening happening. Elsewhere, we continue to keep our out on the market. It is seeing consolidation right now. Yes, this is a country under military rule. The military council has been endorsed by the much revered king. The military seemed to be getting down to broad task of trying to fix the economy. They have started to pay the rice farmers for the rice theyve pledged under this flawed subsidy scheme under the previous government. That seems to be positive. That should help rule consumption to a certain extent but probably wont be enough to offset the decline in tourist arrive afl arrivals and private investors as well. Volumes are quite thin because we didnt get any lead from the u. S. Or the uk markets. The nikkei, we did see weak highs earlier on in the session. Thats where we stand. Jewely, back to you. Well catch up with you later in the show. Still to come, egypt votes for its next president. How democratic has this progress been . Well be discussing right after the break. Stay with us. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. The second and final day of voting is getting under way in egyptian president ial elections with el sisi with the majority. His main opposition ham dean sabahi is saying it is not a fair fight. To our guest now, thank you for joining us this morning. They are raising concerns about political polarization, theres a severe concern about how democratic this process with with suppression of the opposition. Where does that leave us if he wins this election . It leaves us with an election result which is skewed. Its skewed in view of the fact that we have supporters of ere sisi turning out en masse, casting their ballot. And theres an alliance that includes a contingent of Muslim Brotherhood supporters. The april 6th movement is not partaking in the vote. We have an effective boycott by a significant segment of the population. Its interesting to note, france, that Approval Ratings for el sisi stands at 54 of the population. We are not dealing with an overwhelming majority of the population that supports the general. Were dealing with a marginal advantage he has despite the perpetuated message coming forward saying general el sisi. Its the same amount of people that to go back to the point you said about young people not voting is a risk were storing up further tensions after this vote take place . There is indeed a risk. There is this view in egypt that somehow a strong man will be able to bring about greater stability, that hell be able to generate jobs that socioeconomic inequality and poverty will ab dressed. Poverty stands very high in egypt. Has worsened since the revolution kicked off. Its an unfulfilled revolution. I think a key point relates to unemployment. Unemployment, according to official estimate stands at 13 . Effectively its much higher. 82 of the unemployed are between the ages of 15 and 29. Poverty is likely to worsen, i would say, in the short term before it improves. This has accounted for pent up sources of instability looking ahead. As we see, there has been a significant security issue here with militants attacking state Security Forces in the delta, in the nile valley and the sinai peninsula. This is anion going source of concern. Were talking about the possibility of further violence. Were saying he has huge issues to deal with as far as the associatio Economic Situation in the country. The markets understand el sisi enjoys the support not only of the army but intelligence services, also of the police force and states and private sector media across egypt. He enjoys the support of big business which is crucial. Another important plank in terms of his overall perspective is the fact that gulf arab states are forking out billions of dollars in the form of aid. They are unlikely to cut off this aid in the short term. Gulf arab states also understand this is a sensitive period and th