>> holding fire. thefed gives little away on brakes as janet yellen awaits trumps policy impact. >> head of the bank of england's first thursday of the suit best will carney blank? >> how would an expected surge in fixed income trading effect europe's biggest investment banks? we get the numbers this hour. >> following facebook's timeline. the social networking giant beats earnings again.

the shares plan for new revenue streams. ♪ welcome to bloomberg daybreak: europe. i am anna edwards. >> breaking news. we are going to kick it off with sony. >> sunny cutting their profit outlook two ¥200 billion from ¥270 billion. --y have been plaguing these the movie side of the business. surpriseto monday's 112 billion yen charge against its film business. that is despite continuing dominance in its video games through its playstation gaming consoles. it has been the possibility that aty could cut the outlook

the results of the weakness they flagged at the beginning of the week. how much was that already priced into shares, we will see. the moviest between division and the stellar games division has manifested here. >> we have a bit of banking that is one of the themes that will come through today. this has caused the biggest mortgage game best mortgage bank up in sweden. swedish.on that is above the estimate of 4.09 billion. that is across the banking sector. cost efficiency remains the number one priority. when it comes to buffers of capital. estimate, up from 24%. a good set of numbers on the very face of it coming through. >> we have ing reporting as well. this is the largest dutch lender, and answer them based

back. -- amsterdam-based bank. it looks to be ahead of the estimates. the underlying profits for the fourth quarter, zooming in on the most recent period, 1.95 5 billion euros. a ratio of 14.2%. it is a business pioneering online banking for a most two decades. it is among the large european lenders stepping up digital assessments. there continued to take cost out of the business as they do sue best do so. we will be talking to the business about that shortly. >> talking about nokia now. they did a deal to boost their reach. but we have is foursquare sales at miss. they miss on the lowest estimate. they come in at 6.7 2 billion.

the market was looking for 6.7 9 billion euros. that is a big issue for the gear maker. a low stand on the 4g, a lack of demand for 5g even though u.s. carriers are expected to spend a little more come verizon upping their spent last week. looks as if the net sales, there is a little bit of disappointment. what you make of the business? those margins are improving. >> we will go up the supply chain with numbers from vodafone. lots more earnings coming throughout the show. let's show you where we are on various markets. a lot of people have been talking about the dollar. it matches more than -- it matters more sometimes than when others do. the bloomberg dollar index, down

the fed it not giving much reason to change of views on the pace of interest rate hikes. steady as she goes. manus: goldman sachs says that on the dollar. look through all the noise. there's a read on nokia. i mentioned the margin being better in the fourth quarter than we had expected. 42% act from 41%. 4017 operating margin between 6.8 and 10%. aussie dollar stronger. leading the aussie dollar to its highest in nearly three months. this is a rise above 1.1% for the first time in a year.

the question will be this, what is the bank of japan have to do? targeting yields. will that provoke a reaction? another of corporate ceos asking about that today. first word news with shery ahn. shery ahn: federal reserve officials left rates unchanged following the election victory. it will raise to its 2% target even with rising interest rates. little direction on when it costsnext raise borrowing as they grapple with the insurgency with the new administration to. rex tillerson secretary of state after they split mostly along party lines.

the former ceo confirmed in a vote of 56-43. publicans overcame a demand by democrats to delay the confirmation until rex tillerson provided his views on the travel ban. putting iran on notice for testing ballistic missiles. michael flynn assess tehran's actions point two defiance of the security council resolution passed after the 20 15th nuclear deal. iranians trump said taking over more of iraq even after the u.s. squandered $3 trillion there. president trump blessed a potential 1000 refugee resettlement deal with australia. it,aid it do you believe the obama administration agreed to take thousands of illegal immigrants from australia. i will study this dumb a deal.

unidentified u.s. officials were briefed about the conversation. taking the u.k. out of the european union has passed its first test in parliament where lawmakers agree to a lovely private minister start negotiations by the end of march. they backed theresa may by 498-114. approval warned the should not be mistaken for unconditional support to negotiate freely. the government will publish an outline of the brexit plans today. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . manus: we have equities.

juliette saly standing by. i was asia taking the signaling? >> certainly the yen has weighed in on the mckay. juliette: weakness in a late trade, coming up from the korean won as well. the feds, not much new. fora lot of movement investors willing to dip their toes into the markets. quite a bit of weakness coming through hong kong down .7%. catch-up.ying hong kong was closed for lunar new year.

their 76.43 after the trade balance beating expectations. we have also seen very strong movement coming through in the japanese yen as well. pick you very much for update on the markets. the federal reserve is in a wait and see mode as they try to figure out what president trump's policies mean for the economy. while the fed it provided little direction on when it would raise rates they said the sentiment has risen on inflation and will rise to the 2% target even with gradual adjustments in interest rates. strategistr currency in the studio today. like everybody else the fed is waiting to see what the whirlwind of executive orders we have from donald trump.

market isng for the wondering if they are going to get going in march. march, june. the market is going to question whether or not they can squeeze three in. wasn't particularly signaling the march on the cards. janet yellen and the feds like everyone else is worried about the uncertainties that donald trump is drumming up. being we have gone from the great dollar traded, the fourth quarter of 2016. no it is the worst start for over 10 years in the dollar. on the speculative conditions swept out of this moniker and do you look through the noise or is the dollar going to become the currency manipulator?

the u.s.e seen administration already becoming a u.s. best currency regulator. enough -- a strong dollar policy is that around years. to make the remarks as we saw on japan am achina on a highly unusual. i think we do have a very different type of talk coming from the trunk administration. dollar, ict to the think what we saw last year was the market getting ahead of itself. getting excited about inflationary plans and what we are seeing is one of those come up. the dollar is in a more neutral position.

the market is fearing protections and isolations and what you can do to growth. whether it will be detrimental to growth. isa: are these conversations similar to conversations under the obama administration but now out in the open? or is the underlying material nature of these conversations different? themission in your notes obama administration was also concerned about the u.s. trade deficit with china and germany and behind the scenes, this is all out in the open. guest: if you go back to that meeting, look at the market after that. he administration had pushed back on the currency. had given a strong signal behind to otherors authorities not to engage in currency wars. japan, japan has not

intervened in the market frequently since 2004. as we say, this is speculation. if these conversations happens that they were behind doors. now it is in the open and that can create volatility in the markets this year. manus: you have made the choice -- point the japanese have not intervened. the chinese are soaring up their currency. you look at dollar-yen and you have a real sense and the market that the jgb market is moving higher, yields are moving higher. can be provoked into more action than we think. >> the bank of japan clearly has a aggressive monetary policy. market. more of the a lot of speculation that they are going to really saturate let's market.

limits to what they can carry on doing. etf as well. their policy is to really pressure that 10 year yield. that is their policy. the location is they will be doing more. there's not get the application they will start intervening in the currency. if donald trump does provoke other authorities such as china, maybe japan. who knows what could be down the road? anna: we have not heard as much as we thought we would between china and the united states. why do you think that is? because he is trying to work out where china is in the mitigation story? he said for years they may deflect the currency. -- they influence their currency. certainly there was a

he would label china a currency manipulator because he said before. he has not done that yet. that is one of the reasons arguably that china is intervening. trump or delayld him labeling them a manipulator. chinese authorities were just a boy from intervening to keep their currency higher. the world market flooded with even more chinese cheap goods. he wants a weaker dollar to rebalance the u.s. trade deficits. anna:.ng china thank you very much. with us here on daybreak. ricky news. -- breaking news. 11 9% versus

equity of 11.3%. something on the to do list for the ceo. where watching closely to see how the business does. trading?fixed income -- getting q4 equity trading at 428 million euros. the estimate was 559 euros. that looks a little like debt g. lighter than the estimate of 1.6 8 billion. a loss in the fourth quarter, 1.8 9 billion against estimated 1.3 2 billion. that net loss does look to be larger than had been estimated. this is a method that has been innovating thousands of dollars -- jobs. they paid a number of those. manus: go to top life go the

editors are there. they're talking about the valuations of craig torres in deutsche bank rebounded from the lows. let's get to matt miller in frank first looking across the numbers with us. lighter.ing's look that is what bolsters the big five in the united states. is right. there are two important things to take away from this earnings report. the debt trading side, a little bit light, and the capital ratio, a little bit stronger than had been anticipated by analysts at resurveyed here at bloomberg news. that trading is going to be weaker. people will focus in on that. that's will a problem from john cryan. when we get the press conference, which we will have at 9:00 german time, 8:00 u.k. time. a lot of questions about that.

on the other hand we are seeing soon the other hand we are seeig so many come across, seven points to billion dollars settlement with the department of justice. a traded settlement with new york and london. could have pulled ratios.tier one capital bringing up to almost 12%. anna: interesting outlook statement from the bank. they are optimistic after a promising start to year. you hope they are optimistic. shareholders don't want a pessimistic management board. they are be that getting some of the legal costs behind them. andsettlement with the doj the alleged money-laundering settlement with york and london, these were big problems. big pieces uncertainty.

they have people put stupid things behind them. justice, fort of the moment. go, a few more features coming through. as it management, also something we saw last week. 13 billion. restructuring costs at 113 billion. the estimate was much higher at 330. we structure and cost comes in better than the market had anticipated. anna: numbers out from ing. underlying pretax profit rose by 53%. joining us is the chief financial officer patrick flynn. great to have you on the program. the visibility we heard about deutsche bank being

optimistic what visibility do you have? reported roberts of 5 billion, up from 2015. putback of a strategy would customers first. we have grown a lending at 6%, 36 billion for the year. putting customers first, clearly working. manus: you are probably a great barometer for the truth of europe. we have had a raft of numbers. i know you do a business, how strong is europe? how much recovery is there in europe? our commercial bank

expands the world. easternrime form, europe as well and germany. growth ining strong places like poland, romania, germany. our commercial bank is also showing significant strength. good growth in belgium. not where we would like it to be. in europe buty overall it is growing strongly. the risingtalk of interest rate environments. some days that seems more true than others. for are your expectations the rising interest rates and what level due do to net interest rate margins? there's a lot of talk about it but when i look at it i think the increases we have seen so far are modest. restructured that we don't to

cap interest rate risk. as long as the impact is very slow and we see interest rates rise, it is beneficial and i would like to see it. the impact will be through very slowly. we don't expect or predict significant increase interest rates. our plans predict a low rate through 2020. we plan to respond to that, increasing our digital focus and driving ing closer to becoming a fully digital bank. manus: part of the conversation we are having ceos and cfos is about the consolidation story that many are saying is going to get ignited around europe. do you think that will be part of the story for 2017? are you a believer in organic rope or would you look for targets?

patrick: if you look at what we have done, profits of 18%. our organic strategy is clearly working. we are proud of it. our footprint is broad. we don't need an expansion prevent -- footprint to be successful. of our markets are delivering $100 million per head and have room to grow. plenty of space for organic growth. we will keep an eye on what is happening in the markets but primarily in organic strategy. germany and spain where you have moved in. what market shares do you have in these and what are your expectations? how big can a business like yours become? in romania we make 100 million.

turkey 100 million. germany over one billion. digital bank no branches. how big can that be? we think the significant capacity to grow up with a digital platform, our customers are increasingly migrating towards digital, using the handset is the preferred medium for directing. see any constraints in terms of growth. it is a huge opportunity to i've seen markets increase internet speed, this will only accelerate. manus: what do you think is the biggest risk to you? beltran on a daily basis changing a perspective of the world. -- job too manus

manage risk is the biggest risk on your radar? control, wet we can can. extraneous factors are difficult. ponder how these political changes will impact the economy. .ow they will impact gdp, trade something to watch very closely. thatregulation, something is not out of the woods yet. that we doactors focus on and do a lot of scenario panning on. anna: thank you so much. more coming out of deutsche bank game messageut the we gave earlier. we just had ing, deutsche

bank numbers. a little bit of something else. andre going to shift gears talk about the 3-d world. this is bloomberg.

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♪ anna: welcome back. movement in the dollar. the dollar is weak or. down by .5%. on.06 is where we trade dollar-yen. 1.6 5 billion euros for the first quarter. 1.65 in the market. cents, 161 million euros so the first quarter revenue at 1.65. a couple of boosts.

currency tailwind. sectorh stricter -- auto gains. infinium -- going to buy back 10 billion and danish krone of their own share. an update coming through from this bank. between 17-19,000,000,000 danish krone. this coming through the danish banking group. real credit denmark and other subsidiaries. manus: a new edition of daybreak on your travel. this is what appears. it is the cover story. super thursday, the bank of england. a pressrecast and

conference on tap for today. mark carney is likely to argue that rested risks -- brexit risk calls for giving city. the fed's decision noting the rise in consumer and corporate sentiment. tighten. will investors see a 33% chance of a move around 70%. and want a line in the -- a wonderful line in the story market and what could be ephemeral. anna: deutsche bank was front and center as it reports a net loss of 1.80 9 billion euros. outlook for the year will be in

focus when the publisher earnings this morning. guy johnson will break down the market moves for us. guy: let's talk about what is happening. you are you coming up on the ftse 100. public pretty hard to get a good gauge on where it will go. let's see how shall reports in a few minutes time. oninterview coming up later and will focus on what is with the particularly cash generation and return the companies are willing to regenerate. french market is interesting, and interview coming up that will be fascinating. the volatility priced in around into equities. that is something to watch out for. you mentioned with what was happening with mark carney, this

is the most interesting contract to me. you get an idea of where the market is pricing at. 2.5 years, june in 19. sitting at 99. 25 basis points currently on. as conniebut indicates any concern runs inflation it is these contracts you need to watch out for. moveu get a significant lower on the contract, you will across the whole curve that will feed into sterling, the equity story. is these contracts further out as critical levels that you really need to watch out for. bank is that the starting to get concerned about the inflationary trajectory then these ripple out across the entire u.k.. watch out very carefully. anna: look out for any slight

pivot from the bank of england. analysis from stephen england on the program. manus: 2017 reporting sales growth of danish krone between 1-6%. company,a and diabetes a start share buyback and concurrently with what you just told us. starting a share buyback program of 16 billion danish krone. they see the full-year growth between 0-5% on an earnings level. sales should grow between 1-6 percent. shareholders get a dividend of 7.6. share buyback is a bit of a thing. reportedther company they are the world leader in 3-d software and a company right now with this for an exclusive interview. joining us from paris. great to see you. you said in your statement are

of your five-year goal to double dps. what gets you that visibility and why the confidence? confirmsball last year this. we grew 10%. 11% for the eps last year. we saw an exclamation fourth quarter of 2016. inry's very strong dynamic asia. there is no reason why beats should not be able to meet that goal by 2019. manus: great to see you. we can't get away from it. you are a company inextricably linked to global trade. from the news flow and day 12 of

the 100 day administration of trump, get your -- give me your concern from 1-10 of trade wars and a slowdown of trade at a global level. how worried are you? guest: very difficult to say at this point in time. why? we have a footprint that is very withg in america area clients and partners and we have a footprint that is very strong on europe. i believe this balance of would probably be neutral to us. i don't see a direct effect. i see a strong dynamic in

america in terms of -- even stronger in asia and india. also factors above that. at this point in time we cannot relate. that is why we are still confident despite all these statements being made right now. the: we take that that notion of america first and the policy statements we have seen from donald trump, is that being reflected in a changing buyer behavior from any customers in the united dates? 40% come from the u.s., have you seen any changes in customer sentiment as a result of that kind of national policy? guest: it is clear there is more tension around the digitalization of production systems to get productivity on a

new generation of plans. we have a lot of customers in silicon valley outsourcing a lot outside. now they might be doing more in america. in this case they will have to build plans. they will have to build capacity which means they will build our software -- they will need our software. we don't see at this point in time any special negative effects. manus: you reflected a couple of times, you referred to asia. where does china feature in terms of collaboration and innovation? to be yourng strongest partners over the next five years? where to the chinese feature in those relationships?

guest: it should be noticed that china has decided to become an innovation country. evidentthis is now very with the adoption of advanced solutions. shipbuilding, electro-mobility. i don't think this wave will slow down. it will accelerate because of the internal needs of the market. china has been clear they want to be a leader in electro-mobility. we are in the middle of those projects so i think that is given to me today that china is going to become not only the factory of the world but they this is anovate and new balance in terms of the

world economy. about new offers to the market. it seems like one of those years where he can't escape it. everyone is asking a french policy. does it matter to you as a whoness person and france wins the next election? you have fears around access to talent? now sd.e are we have a lot of labs around europe and germany, italy, u.k.. i don't see how these will slow down.

access to talent is european wide. concerned with our situation in france right now because our country needs reforms. significant reforms. dependent on much the situation in france per se. revenue that 45% of our is across europe. we have put great clients and france but they are global partners. clearly we need reforms from a business standpoint. this will not slow down access to talent as all in our mind. manus: thank you so much for joining us this morning. .tay with bloomberg anna: it is 7:42 in germany and

we should tell you that deutsche bank earnings will be front and center. will be speaking to bloomberg later on in the program. a look ahead to another super thursday at the bank of england. at 7:00 a.m. we will be joined by the cfo. -- anotherer banks big earnings interview of royal dutch shell. this is bloomberg. ♪

manus: 1:46 a.m.. 256 -- 2256, the fed is gradual. down .3% on futures.

equity under pressure in the asian session. in talks to buy baby .ormulator -- formula maker discussing an offer of $90 a share in a cash. a 29% premium to the closing price on wednesday. it would be financed, facebook estimates given by advertisers continue as sales rose 51% to $8.8 billion. users increased 17% from the year earlier to 1.8 6 billion people. mobile ad revenue made up a 4% of the total sales. a german prosecutor is investigating the purchase of company stock months before the exchange announced talks to

acquire london stock exchange. it looks into the trade place on december 14 2016 according to a statement from the market operator. it emerged on separate 23rd 2016 and takeover discussions were underway. the shares rallied 6.7% between those days. u.s. companies including facebook, microsoft, apple, amazon circulating an open letter to donald trump expressing concern about his recent order on immigration and offering help. according to people familiar with the plan the goal is to publish the letter this week. are many involved sectors but it is not clear which will agree to sign on. that is your business flash. anna: thank you. the bank of england will deliver its military policy decision --

monetary policy decision. them to raiseect productions while keeping the key interest rate at a record low. manus: for more on what to expect from today's decision let's head to the bank of england. mark carney has a very fine line to tread today. he is in neutral mode but any surprises under the hat? reporter: absolutely. a very fine and delicate balancing act as always. balancing the fact we have had a stronger growth and inflation recently, a potential risk down the line. no change expected to the key interest rate. what's we might see our new forecasts and an update for growth and inflation.

1.4 percent growth, 2.7% inflation for 2017. expecting an upgrade to those numbers. give the thing that mark carney emphasized in a november was a neutral stance. the next move in the bank of england could be either up or down and that is what we will be waiting to hear about at the meeting today and the press conference. markets are pricing and more likely to a rate hike than a cuts. that question, which direction with the bank of england moving next. markets falling on one side rather than the other. guest: markets take into account -- account the economic fundamentals in the u.k. since the meeting of november. we have seen solid growth, a pickup in inflation. sterling has stabilized but nonetheless the economic fundamentals have picked up. the markets have probably been

listening to mark carney himself who did say the bank of england would be less tolerant of above target inflation. they are in fact pricing in a greater probability of a rate -- ratherer than a than a cuts cut and a 50% chance this year. how will you manage those expectations? hawkish toneke a or in the risk to the outlook from brexit? certainly something he brought up before and he is likely to bring it up again. some say brexit is the only thing standing between a rate rise. bringing you that decision when it happens at 12:00 followed by the bank of england governor mark carney holding his news conference at 12:30. get the strategy

group at citigroup, the world's biggest currency trader. here to talk about the u.k., europe, and later about the u.s.. great to catch you as you fly through london. let's start the conversation about the u.k.. move ishink the next higher and when does it come? stephen: it is true that brexit is the only thing standing in the way of a hike but it is a pretty big elephant. it will be there for quite a while. retrospect may have been a necessary ease. i think they will emphasize don't extrapolate anything we do here. let's start with a simple

points. do you think he will be neutral with no hint of a hawkish stone? stephen: even if he thinks he might be hiking over the next six or mine months -- nine months. whyou will not do it today, tease the market? i do think the fact that growth is better and inflation is higher than they thought, with respect to commencing on policy i think let's of the market draw modest conclusions as opposed to guiding the markets. when does inflation you need to look to turn into inflation you need to react to? there's this argument that you look through that but at some point you start to talk about secondary inflation and working it's way more into the economy. stephen: that's one of the

reasons central banks pay so much attention to wages. if you get an increase in prices from a weak sterling or from oil and doesn't show up in wages yards that it shows up as an inflationary spiral is persistent that inflation is pretty low. that, thence for history of the last 30 years tells us the path through is not as strong as we thought it was. wait and see whether there is a pass-through into the wage cycle. manus: we have to get some rate levels on sterling. did theresa may get the market to price brexit for a hard brexit at 120, 125? stephen: i think 120 is about right. -- 1.20. sterling is really cheap and i

idea that they lower it for a an extended appeared of time --. of time. it would get investors buying u.k. assets. it could go lower and obviously we backed away from the most higher of brexit risks but i think that we are not a mile away from where we are going to be at the end of the process. my guess is five years from now sterling will be higher, not lower. anna: the euro versus the sterling? there is risk on the calendar, isn't there? is that overdone in the minds of market players? stephen: it is there because it exists. begetter thee dutch elections, the french

elections, the german elections with no surprise. the italian election seems to be the one that has the most risk. it is weighing on the euro. very weekly, where is the firesale? we are using a firesale? stephen: when you translate the pound price into foreign currency, investors are looking at cheaper u.s. assets and real estate people that are very interested in what is happening in the u.k.. everybody is looking to do like for like with u.k. against local firms. the cheaper it gets hard the harder it is to keep it down there. anna: thank you very much. stay with bloomberg. earnings from shell at the top of the hour. we will be speaking to the company's ceo. his first television interview of the day on the european market open share. manus: also talking to the cfo of deutsche bank and those are the big blockbuster earnings as

we have big numbers to come. vodafone, pharma is in focus. this is bloomberg. ♪

dennis: the fed gives little away on the road ahead. the dollar slumps as human away -- awaits trumps policy impact. anna: economists see inflation forecast rising but [inaudible] lender's cfohe today. anna: following facebook's timeline. it beats on earnings again and shares planned for new revenue streams. shares plans for new revenue

streams. manus: you're welcome to daybreak europe. anna: we have had a host of earnings news this morning and it keeps on coming. manus: let's kick it off with astrazeneca. these are the numbers for astrazeneca, fourth-quarter revenue beats back the number you want to know, $5.99 billion. the market was looking for 5.57. in terms of the breakdown on the drug crestor. one of the main pieces of the astrazeneca story. there is athere and little bit of a miss. the market was $767 million. earnings per share is that comfortable beach. the market is looking for above

13. anna: we get some numbers from vodafone. third quarter organic services revenue up by 1.7% versus an estimate of an increase of 1.5%. this is the money that boat to phone gets from customers' plans and networks excluding the handset sales. the number has come in pretty strongly ahead of the estimates. , he has beeneo stoking expansion by making investments in fourth-generation rollout. they have been facing price pressure in india and the u.k. exposure as well. rival bt talking about forecasting lower growth from government contracts. that could be an area to watch a for commentary. they are confirming their guidance, guidance confirmed for this full-year. the growth of 3% to 2 -- 6%.

manus: delivering the fourth-quarter numbers adjusted profit. coming in at 1.8 billion dollars. he this is below the market price. significant miss on the fourth-quarter adjusted numbers. and cash flow $9.2 billion. this is a considerable miss. booster for big them. exxon missed and chevron, shell mrs. on adjusted numbers. they spent $54 billion last year trying to break down the debt. training the highest since 2015. earnings per share a big miss. the market had penciled in $.34. the guidance fourth-quarter

earnings attributable to shareholders just $1 billion. they have missed on their profit of the lowest estimate. anna: we have numbers coming through from daimler. net profits -- at 8 billion euros versus 7 billion previously for the year of 2016. they see the outlook is for slight growth in revenue sales and a bit -- ebit. of last year a 13.8 billion. revenue for 2016 up a 3% they say. this is the company that has been revamping its mercedes cars , that is something that has been driving sales for the student art, germany-based company. they have been reaping the rollout.and aggressive younger buyers.

lucy davis reclaimed the top spot in luxuries. there are the numbers that underlined that trend. manus: you can follow all of the billions, dollar miss for shell. that is the big lock. on astrazeneca we have more guidance in terms of the future. singlell be low mid digit percentage growth. this is astrazeneca's guidance for the future. chevron is amiss. we have the conversation, we will be speaking to shell later on in programming. this will be a fascinating conversation behind that story. the chief executive joining bloomberg for a conversation 7:45 a.m. u.k. time. the billion miss, what is

outlook, what is next? anna: will it be a day guided by corporate stores or will the macro picture takeover over? we have a host of corporate reporting building its way into the trading picture. take a look at futures. at the start of the equity trading day. also talking about what is happening and currency markets and the latest move in the u.s., all those comments from donald trump this week or the last couple of weeks weighing on investors' minds in terms of uncertainty. manus: that translates in the risk radar. flattish sort of fed commentary. yields are rising in japan to the highest levels in almost a year. what mill -- more will the bank of japan be forced to do? anna: here's juliette saly. juliette: deutsche bank said its

fourth-quarter loss narrowed as they listed largest investment banks. that was larger than the 1.3 2 billion analyst had expected. the ratio rose to 11.9%. the ceo has been cutting bonuses and thousands of jobs to raise profitability and bolster capital that has been hit by [inaudible] will be talking about deutsche bank's earnings with the lenders -- the lender's cfo. -- senateson 17 confirmation after lawmakers split along present -- on party lines. he was confirmed in a vote of 56-43. republicans are -- overcame a demand to delay the confirmation until they had provided views on trump's travel ban. he was sworn in surely after.

the white house says it is putting iran on notice. for testing ballistic missiles. michael flynn says to ran's actions were in defiance of the security council resolution passed after the 2015 nuclear deal. president trump tweeted iran is rapidly taking over more and more of iraq. even after the u.s. squandered $3 trillion there. blasted atrump has potential 1000 refugee resettlement deal with australia. he tweeted to believe it, the obama administration agreed to take thousands of illegal immigrants from australia, why? i will study this dumb deal. the washington post reported malcolmmp paraded turnbull over the deal and ended their phone call on january 28. the post cited unidentified u.s. officials who were briefed about the conversation. the bill to take the u.k. out of the european union has passed wasfirst tiff in parliament

lawmakers agreeing to allow the prime interest or two start negotiations by the end of march. the comments by theresa may. lawmakers warned the approval should not be mistaken for unconditional support to negotiate freely. the government will publish an outline of its exit plan today. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . asian markets reacting to the fed decision also waiting the bank of england and those nonfarm payroll numbers due out on friday in the u.s. and we have seen some downward pressure coming through as you see dollar weakness, that meant yen strength and the nikkei the underperformer in the region down by 1.2% in japan. we are -- have an hours trade to go. some downside in hong kong. a second week of declines. we have been seeing investors play catch up to that level

foroff, china still closed the lunar new year break. we saw some downside coming through in australia and new zealand today. there has been a little bit of buying coming through from some of the emerging markets. the aussie dollar has been in focus, we did have a bit of an comingd trade surplus through in december from australia. it is up .7 of 1%, interestingly, the aussie has rallied 1.5% of -- over the last few sessions but the yen also very much in focus in the asian session up .1 -- a third of 1%. raking through that 113 handled during the asian session today. bond yields are higher in japan and australia. manus: juliette saly wrapping up the markets. i will give you a bit of a gift

at the start. you are the gold standard of european real estate space. what i want to know from you is what are we going to see from you in terms of development completions for this year, take me forward. i can read the press release. give me your vision for 2017 and beyond. we have to take the longer-term view. we are delivering a new shopping forer in poland and we do extensions and innovations, very profitable on the basis of standing shopping centers, the risk, high returns. anna: what about u.k. assets question mark we were talking to stephen engle and a little earlier from citigroup. he is still listening, coming back on a minute. he was talking about a fire sale in u.k. assets. doesn't look that way to you when you look at u.k. real estate? guest: there is a distinction, there is a interest in looking at everything.

financial markets are much more liquid and they are signaling their perspective on what pricing is likely to look like. there is still a significant demand from sovereign wealth funds in particular. large investments and stable different view on interest rates and looking for a stable home to park their cash. of middlesee lots eastern investors and other players coming into the u.k. market? guest: we have seen that. one of the big office buildings here is being sold by british land. they are expecting to find demand. there is [inaudible] the matter what happens with brexit. there will be continued demand for real estate assets in london. we do not specialize in offices in london so we do retail. manus: only look at your business and the geographic complexion of your business, ing gave us the banking side. i think reasonably optimistic.

give me the european perspective from where you said. everyone is telling us there is recovery. the numbers and soft data say so. does that translate to your view of europe and your optimism? times we areh many not a proxy for the macro but what we see is positive. coming from a low base, we're looking at growth that 1.8% across europe but highly anything to write home about. there is more positive trend we're seeing at the strong pockets like spain. we are seeing it in the nordics. there is patch year places as you mentioned. that is eastern europe is a little softer. anna: i have written here in terms ofspain, expansion plans. where do you see expansion coming from? guest: across all the countries in which we are currently present. we have to look through -- building a shopping center can take between five and 15 years

so it takes with a long-term view. we look at individual opportunities and we will decide whether or not to move forward based on the risk-adjusted returns. manus: politics is something that every ceo and cfo has to consider. there is some risk in front. you have big exposure. politics is heating up. who it matter to you exceeds the power in france this year? guest: there is two elements, one is the more broader political implication of the wind by particular persons to the larger european picture and the other is what we can control. , peopleshopping centers need to be light groceries and they still need to seek entertainment. there is a distinction. we cannot influence what happens in the political level. we have to deal with whatever comes our way in the best thing we can do is focus on the business. we're seeing a lot of the

politics play out in foreign exchange markets. to a large extent you are in the euro but although -- also in other currencies. do you see volatility on that side of your business, they gives you something to manage with all the politics at the four. guest: we try to be currency neutral. except for sweden. you try to match assets to liabilities and cash flows. that basically covers it so we minimize the currency and try to minimize the currency impact. it is small and relative. manus: great to get your take on how the world looks at the moment on the set of numbers. keep of the gold standard according to the analysts. anna: later today, the incoming cio joining us to discuss thursday and the big week of central-bank decisions. we will also give his outlook --

get his outlook for this year. manus: the road ahead. the single best central bank is in a wait-and-see mode. it tries to gauge what president trump's policies mean for the economy. this is bloomberg. ♪

manus: it's just gone 8:19 a.m. in berlin. the sun is rising. germans have it all their own way and it comes to currency? juliette saly is standing by. juliette: richard bank said the fourth quarter loss narrowed as trading listed -- lifted the

largest bank. ratio rose to 11.9%. bonuseshas been cutting jobs. later in the day we will be the bank with the ceo. the company is discussing a 29% premium to meet the closing price. it would be financed by [inaudible] facebook's fourth-quarter revenue beat estimates driven by advertisers continued mobile push.

monthly active users on its social network increased 17% from a year earlier to 1.8 6 billion people. mobile ad revenue made up 84% of the companies total ad sales. that is your bloomberg business flash. anna, manus. anna: thank you. the federal reserve is in a wait mode while they try to figure out what trumps policies mean for the economy. left the rate unchanged. manus: while they provided little direction on when they would ask to raise the rate, sentiment has risen and inflation will rise to the 2% target even with gradual adjustments in interest rates. is back on form. here you go, the dollar, job on theawboning is the name of game. respond to that?

of talking down the currency if you are doing the big fiscal policy initiative, i think will be very unsuccessful. capital flows will follow incentives and u.s. rates will be higher. money would go to the u.s. so it would be hard to talk down the dollar unless you are willing to subsume your inflation targets. it can get nominal rates down but if you do fiscal policy at the end of the business cycle, your exchange rate will go up. they are talking the dollar down but on the other hand policy announcement as we know them so far have been dollar positive. have the fiscal structure we expected where if hillary

were to be elected. the market will say that kind of noes sense that there is trust and the dollar is expensive, there is some expectations built in. the dollar should fall but if you are doing some that looks like the house plan or the trump plan where there is keynesian stimulus and incentives are capital to move to the u.s., the u.s. exchange rate is good to go up unless you have a supply-side miracle. they may believe that is going to happen but history tells us that the -- it will not happen to the extent is needed down their side. --needed on their side. manus: let's say they get some of the tax changes. what is the biggest offer in terms of dollar? it is the currencies we have on the screen. the ecb not doing much of anything, boj will not do much of anything, bank of england is going to be cautious.

i think the spreads, they will not go up one for one but they might go up if u.s. rates go up by 100 basis points, everyone else goes up by 20. that is a lot of dollar strength that would be built on that basis. anna: you brought the ecb into the conversation. we have a chart that shows the undervaluation of the euro. the undervaluation in the euro based on some early ecb data. what do you like -- look at to make this conclusion? this in relation to come as we got from navarro early on this week. n: the euro is cheap but there is a reason. you cannot make the argument that the euro should be at its ,roper valuation and then say the european economies are sluggish and the and the on a planet rates are high, you have the political and ongoing debt

concerns and parts of europe. there is a reason it is cheap. the question would be my ok, where do you think european interest rates should be because it is not just a question of how much coffee costs in new york versus paris. it is a question of capital flows -- what capital flows are emerging because of the policy structure. given the divergence in the economy i would say this is where the euro should be. manus: the ecb, this is the great debate, while the germans balk on the ecb and will their he edified? -- be a divide? steven: the ecb and mario draghi are determined to stay the course. he said we told you we would -- what we would do in 2017. we will examine it at the end based on conditions but this is what we see and what we are

going to do. i think the impact of the weak euro is easy to examine it -- to exaggerate the benefits. trade flows do not change that dramatically because your currency is week. you anticipate that something will be pat -- fashioned by the u.s. government either a border tax or something else that would comply with debbie chi overrules and will be able to stand and will push up the dollar, therefore? you can frame what is in the congressional plan was what is consistent with the wto. you are allowed to change the payroll taxes, you are allowed to change the payroll tax. everything that they say they're going to do is consistent with wto. you for joining us today. manus: that is it for daybreak.

interviewhe shell coming up. profit $1.8 billion, that is a big mess by $1 billion. ♪

guy: good morning, welcome to bloomberg markets. this is the european open. i am guy johnson. i am still in london but matt miller in frankfurt. he is outside deutsche bank's of therters, clearly one big stories we're watching. what also we watching? trading troubles. deutsche bank's losses narrow but debt and equity revenues rise less than expected and fall short of the numbers posted by its u.s. peers. the cfo is coming up