caroline: a deal in jeopardy. the llc says it's $13 billion plan may be derailed by a new regulatory hurdle. guy: investors await trump. the president is expected to boost defense spending and/environmental protection budget. he can also lay out infrastructure spending plans. caroline: the reality of brexit. the house of lords continues screwed o scrutiny, and the prie minister's team is preparing for scotland to call another independence referendum. ♪ caroline: a very warm welcome to

bloomberg daybreak: europe, our flagship morning show. manus: what a week we've got. we will hear from the president of the united states addressing both houses of congress and janet yellen. all these things could move the dollar. take a look at this. this is really where the fx treasuries are going to be. the white line is the movement in the long position. leverage cut their long dollar positions for the seventh consecutive week. the fx volatility has dropped as well, but it is the longest selling streak since 2013. peak long dollar positions, back in january 3. it will be what comes out of donald trump's mouth that could shift the perspective of what happens with the dollar. anna: we could hear more about his budget plans as early as today, that the address to congress a be a focus. let's put up the risk radar and show you where we are overnight.

this is what we have been handed over by the asian equity session. $70n equities are weaker, trillion universe, $70 trillion of global equities as we head into his busy week. we've got the 10 year yield in unconvinced does the market remain about whether march is really on the table? we had a lot of hawkish comments coming through in weeks past. manus: and we channeled the work function, the probability of a rate hike is up to 40%. jpmorgan, the spread between the u.s. and u.k. is the narrow west, coming up to record levels, cables dropping. it was lower, all on the back the potential. the potential for a scottish referendum, a second scottish referendum. anna: back in 2014 we had the

first one. the "times" reporting theresa may might say yes if it comes after the u.k. leaves the european union. she doesn't wanted to mess up the brexit planning. be aware we have this other great story about whether the article 50 bill will spend a lot of time ping-ponging. manus: that's the state of play on your risk radar. let's get out to rosalind chin with the first word news. good morning. rosalind: morning. good london stock exchange has its $13 billion -- are likely to proceed after a new regulatory hurdle signaled the potential and to the company's efforts to create a dominant exchange. the european union officials requested they divest nps and electronic trading platforms using government bonds, but they said they could not commit to divestment and would not submit a remedy proposal. major trump is proposing

defense spending increases and big cuts to the environmental protection agency, state department, and other federal agencies. that's according to a person familiar with the plan. two white house officials say the outline will be made public the day after tomorrow. the president is scheduled to address congress tomorrow night. u.s. governors have been told that millions of americans who lose their health coverage under republican plans to replace obamacare. say around 20rms million people gained coverage under the fort of health care act. the white house says president trump wants nobody to lose coverage. presidentialnt candidate emmanuel macron has won his third endorsement in a week, favorite to win the upcoming election.

the far right leader is expected to win the first ballot, but is slated to lose in the second round. court holds its final hearing today on the impeachment of the president. she was suspended over a scandal about undue influence involving a confidant and some of korea's biggest companies. the court will rule on the legality of her impeachment. meanwhile, the country's prime minister has extended the special investigation into the scandal. finland has urged europe to increase nato contributions and focus more on security as the consummate gravels with political turmoil from all sides, including from within. the country's president told bloomberg that one spring leaves the eu, the remaining members must focused on the bloc funding. >> i think it's not anymore a question about brexit. we have seen it, now for the union it is the question of remaining countries.

someday feeling that nearby, more and more people will understand that we have seen the bottom, so we have to construct again. rosalind: and there was a dramatic finale to tonight's oscar awards in hollywood. "moonlight" won best picture after an onstage mixup. presenter explained he was accidentally given the wrong envelope. it was still a big night for "la la land," which won six awards. global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . i'm rosalind chin. this is bloomberg. anna: thank you. let's get an update on what's happening in the asian equity session. juliette saly has details, a

retreat for asian equities today. good afternoon. session nots, the as interesting as the end of the oscars. we're seeing selling coming through today, led by japan, the nikkei off by almost 1%. weakness coming through in the chinese equity markets today, but some encouraging signs on housing front. we saw prices in shanghai fall over the course of last week. having a look at this, worth noting the won has been on that stellar run against the dollar, up for a fifth consecutive session. having a look at the stocks we are watching the asian session, hong kong exchange is one that has been weighing on the overall hang seng index, down by about 1%. it missed with its net income and also said the 2017 operating environment will remain challenging. lg electronics falling sharply

after morgan stanley said there are no surprises in the new g six phone. qbe insurance is one bright spot in the city session, announcing a $1 billion share buyback and a 5% jump in net profit. i also want to show you this chart. it's really showing you this resistance that hong kong stocks are having about the 24,000 point level, they keep hitting this resistance over the last seven years, and we saw them briefly get above it in early trade today, but now the hang seng is holding around 23881. hong kong stocks are up about 9% so far this year. manus: adding to that $70 trillion worth of global value, the latest from hong kong. to the u.s. now, squarely in focus throughout the week. we're beginning to get details on what trump's president -- what his budget may look like. according to people familiar

with the matter, he is proposing a major defense spending increase and big custody environmental protection agency. the state department and other federal agencies. anna: the outline of the budget may be made public as early as today. tomorrow he makes his first speech to congress. joining us now, the cio for international fixed income at j.p. morgan. nick, great to see you this monday morning. let's talk about the united states. we heard a lot of the campaign trail. this week might be where we get to see what exactly the trump administration is planning in terms of spending, and crucially, borrowing. >> i think the key will be tax cuts. when you look at a lot of the commentary around trump, it is really a reincarnation of reaganomics. it was deregulation,, tax cuts , and they can work quickly to get the economy going. eufinance it by borrowing. nuchin was talking about

the potential for longer bonds -- does that worry the bond markets, that you see maturities out into the distance? europe, where a 50 year bond is a very common instrument. this is the hundred year bond. from a local perspectives, the havingoks anomalous in debt with a maximum life of 30 years. why not issue 50 eurobonds, given where yields are? anna: some voices over the weekend saying it would be nice to have other maturities of play with, other voices saying the u.s. likes to issue shorter maturities, a slower drip feed into the markets. what's the negative? there's a reason they haven't done it before. >> i think part of it is, these are such long-duration instruments. the reality is that the treasury market is the most liquid market in the entire world, and at the moment, it's a little short relative to other

markets. 50 year bonds would complete that yield curve such as we have in the u.k. manus: our main story this morning, "the new york times" talks about -- 2.4% this year, 3% is what trump had pledged. these are not rockingly high growth numbers. in some literature he was going to grow it by 4%. is the specter of inflation perhaps a little more muted when you look at these kinds of numbers on the growth side? >> maybe. but there are a few points -- if it is tax cuts, the risk is to the upside. when you think the size of the economy, it is nominal gdp, growth and inflation. if you've got growth of 2.5%, termsat means in nominal the u.s. economy is growing 5% to 6%. it can accommodate greater debt.

remember, the debt is a function of the size of the economy. anna: so that's the debt story. where should we be on our expectations for interest rates? through -- wemes had quite a lot of hawkish commentary of late, and we have been writing at bloomberg about how the market isn't on the same page as the fed in terms of march being on the table. last week the function was in the low to mid 30's, but is creeping up, isn't it? it's not at 50. >> it is right to creep up, and the fed should be bold. they should be considering going in march. again, think of where the u.s. economy is. it has reasonably sustained growth, inflation peaking, and we are about to get a big economic plan. add it together, the fed should be ahead of the curve. it depends on friday. anna: how does the fed do ahead of the curve when they are all about data? >> the data is strong, isn't it?

when you look at the data, on some measures, the u.s. economy is grounded by a strong rate. manus: the other asset is you talked about inflation and growth rate. the of a dynamic is, where the want to be? japanese government bonds are u.s. government bonds? that gives me a negative right. i'd say we are running into a block in the bond market. >> maybe, but again, when you look at u.s. bombs, optically they are attractive. they are a high-yield asset relative to other government bond markets out there. anna: lower interest rates are available. thank you. nick from j.p. morgan asset management, stays with us. manus: let's get you set up for your week ahead. today, the u.k. house of lords begins a detailed examination of theresa may's bill. donald trump addresses a joint session of congress. anna: on wednesday, angela

merkel gives a speech. on thursday, we see the ipo of snapchat. manus: we round off the week with janet yellen speaking at chicago. coming up -- to.: independence take the u.k. government said to be preparing for a new scottish referendum. manus: closing the gap. borrowing spending, the default risk project. can it overtake its biggest competitor? anna: spain calling. we are live in barcelona. apple giving it a miss, samsung turning to tablets. who will fill the smartphone void? this is bloomberg. ♪

manus: it's just gone to: 17 in the afternoon. -- 2:1 in the afternoon7. hang seng dropped. juliette saly is standing by. juliette: manus, thank you.

deutsche bank has cut its pool by almost 80%, according to german sunday newspaper. the ceo told the newspaper that germany's largest lender is reducing the payments with shareholders and is aware it will be frustrating for employees. he says some workers in key positions, about 5000 in all, will get a special long-term incentive tied to the bank's performance and paid out after six years. ryanair is an advanced talks with aer lingus and the region air on an agreement for short-haul flights, according to an interview with the ceo, michael o'leary. ryanair also that alitalia to discuss such an accord. two of asia's biggest technology companies are joining forces as softbank agrees to form an investment joint venture with foxconn through $600 million share sale. the foxconn let venture would

begin identifying targets for investment, that has not yet said which areas it will focus on. samsung has released a new tablet targeting both city of gamers and professionals as the company tries to bounce back from the note 7 debacle last year. they were previewed at the mobile word conference in barcelona. it also made its latest smartphone, set to be released at the end of next month. and that is your bloomberg business flash. anna: thank you very much. juliette saly in hong kong. let's talk about the u.k. currency. the pound fell against all its major peers after reports said the u.k. prime minister is preparing for the possibility of scotland calling for a new independence referendum next month. manus: sterling fell as much as .6% as "the times" slated unidentified government sources as saying may could agree to a second scottish vote, but on the

condition that it would be held after the u.k. leaves the european union. our guest host this morning, nick, this is the moment of red flag that goes up, the prospect of a second referendum in scotland, but not until after brexit. this is really the last thing theresa may needs. it? t't >> i think it is, the brexit hasn't even gotten started is the remarkable thing. i suspect we will see a lot of red flags over the next couple years, and in a sense, this will be the difficulty for sterling. it's going to have to continue to dodge all these different landmines over that time period, which probably keeps it weak. anna: even if the most recent polling doesn't suggest that the s&p would be victorious this time around, memories go back to what happened in 2014 before the last referendum.

we saw weakness in the currency, considerable weakness in the months running up to the vote. these things would make investors nervous . >> they will, but the point you make is valid. markets don't focus on these things until you get very close to the date. this is going to be some point in the future, but generally a means of sterling is weak. manus: the other thing we saw last week from the propensity of retailers wanting to raise thats -- anna is saying services -- the price expectations are the highest since 2007. services companies are going to try to raise their prices by the most in a decade. a, we can argue whether there is any validity, but there is one thing sure for a bond trader -- inflation is taking real root and branch in this country. >> yes. the hesitancy there -- a a lot of it is down to the depreciation is sterling.

the other thing it is down to is increased commodity prices. let's be honest, to get real inflation back, we have to see wage inflation, and that is unlikely. what in reality happens is you have higher headline rates, but the average person gets poorer because their wages don't keep up. that is gross negative, ultimately that goes forward. anna: i know the bank of england has said they will look through the weakness of the pound, but some of it does stick, doesn't it? it means people who were importing stuff, buying imported products, you are feeling the effects of that inflation. it's going to have an impact. >> it does. the other side of that is due retailer margins get squeezed? you look at the market share of things like discount supermarkets, probably it goes up. the last time inflation was very high, following the financial crisis, that is what happened. margins went down for retailers

and market share for discovery tellers went up. manus: there is one thing for sure -- we are going to pay in the end. anna: it's what happened to ex-ceo, the supermarkets would put the price is up. manus: let's talk about the bond market. there is one theme running through, and it is talking about u.s. yields potentially rising. u.k. yields have not really priced in the potential of a referendum. m-line was looking at it in the negative, the spread of being the why this in history between u.s. and u.k. this is u.s. over u.k. do you see that spread from a bond perspective? that record high, record low depending on which way you flip the spread? do you see that momentum continuing? the differential continuing? >> that spread is about done

now. that's pricing the u.s. federal reserve being very active and the bank of england doing nothing. there is an argument to say that, if inflation stays at elevated levels, if sterling stays weak, the next move could be to raise interest rates. yieldsat means is gilt will take a little bit of that strain. anna: they are not mutually more, do you think? are they, do you think? >> the bank used to be very asymmetric. now it's clear the bank of england are very symmetrical. that means that they could well hike rates, and again take a step back,. look at the performance of the u.k. economy. at the moment is very strong. at the moment we have an emergency level of interest

rates, and the u.k. is not an emergency. manus: i'm not going to argue one of monday morning, because i'm barely with it at all today. i'll go tentatively with this -- you are bucking against the expectations of the market. the probability of a rate hike this year is slipping away, and 40% to has gone from 70%. -- to 17%. when do you think they will be able to raise rates? bundesbank, ecb not on the hook until 2019. >> if we look at -- we're looking at risks. the very low probability events which will be very high impact -- if those percentages flip around, and let's think back in previous years -- market expectations for central banks can turn on a done. -- on a dime. they can change with political changes. that 17% probably for the u.k. this year, --

anna: and we are watching the news headlines, we should be ready for this ping-pong scenario, where the article 50 bills goes to the commons, to the lords, maybe even back again, then back again. this is something we are being set up for. could we see delays around the timeframe? >> baby. markets look at it and it is happening. whether it happens in march or april, it is happening. ultimately, when we get into those negotiations, as we get to the end, that is one of the market focus will be, like a laser, on the details. anna: thank you very much. nick stays with us. manus: up next, the commodity come back. rio tinto is using the valley to cash in and cut the borrowing. the cost of insuring as bonds plunge. we have a spectacular chart of the our next. the discussion straight

after this short break. ♪

>> welcome back. it is 3:30. week in the busy market. trunk is speaking a number of times in this week. it is a new addition of daybreak. >> let's take a look at top stories bloomberg. they cover story is "falling apart." this was the potential merger that was unlikely to

perceive because they will not commit to defenseman of the bonds trading platform. see almost 80% and it is more than anticipated. >> finally, we focus in on scotland, who may get another referendum. team is preparing for lawmakers to potentially call for a vote in march that coincides with article 50.

and there was a charge into the bent and there could questions around a vote in parliament. check on the a .arkets here with the details question investors are looking ahead to more details on trump and his spending plans. quite a bit of a response in the asian session moving and the money you can see it down almost to the dollar isnd

is theing strongly and worst performer at the moment there is a call for the and wedence referendum and thee it go above big focus this week is janet yellen speaking at the end of the week when time is running out, despite all the jarring

from policymakers. there is a rate hike that is far from 50% and the 10 year that'sy yield is up on oil at thelooking at tightest range in more than a money managers have increased the positions to an all-time high and producers have been going the opposite way. index, speaking of sunday and there was a launch saying how they wanted to attract more foreign capital.

isif we check the market, it the most liquid markets in the region and we are the 23rd largest capital markets and the 13th largest market in the world is larger than all others combined and we can see the defective gateway to the region, not just for the foreign investors, but for the local issues with the market and we believe that changing this cycle and the technical parameters will be final requirements that will lead to most international financers. >> will do this be a catalyst

for capital inflow? investors of foreign has not really jumped and it is of capital.amounts >> the percent is still about 4% with international investors and we have found that they have been encouraged with the regulatory regime and most of them require a change with the technical infrastructure to invest in capital markets to bring this in mind with what they are used to in the rest of be theld and this would conduit to attract more foreign investors and that has been a

key thing they are looking at. >> do you have a target? what is a healthy percentage? >> larger than what it is. larger then what it is today. the listing of the company. what are you facilitating when you roll out the red carpet, as it were? domain and the infrastructure is in place to accommodate any other place. privatizatione with the same rules and

technical parameters applying and, in the event that they inose to have a dual listing capital markets or exchanges, there will be additional requirements needed with other exchanges that will have a dual listing, but that is a technical parameter and not a showstopper. go back to asset management. this is part of the inflation story and it becomes more broadly entrenched. view onyour commodities? and thewill gently rise demand is in balance with the

key to commodity prices being economic growth. if you toward the world, economies are growing nicely and .p above friend you will see oil go higher by the end of the year. >> a big call is the emerging market. well in adone they are going to have better growth rates than the rest of the developed markets world. >> you go and you take the local currency risk and you have to recognize that not all emerging markets are equal.

these are your brazil's and your you have the currency looking cheap and it is a surprise for the emerging markets to do that for attractive returns. >> in the face of the fed delivering, is it something you are getting in your notes with being on constraint -- not constrained and looking for the best bond products. where do we stand on the trade front? trade.ill see on trade is going to continue. rates of growth have gone down and they have gone up.

you take a look and the currency irrespective of attractive a very cost producer. considerablyanks attracted and we have a look at this and this is rio tinto. and it is a collapse. the commodity prices are rising and you can use the cash flow with the balance sheet management. >> they did a fantastic job as a

proxy for corporate profits and they are actually in great shape, having paid a lot of debt and earnings growth is coming through. healthyions look very with the recovery we are seeing. willntracts and it immediately contract. >> we were talking about the mining sector. you have high-yield bonds and the play on the commodities .pace in the united states >> there a much so. the reality is that it is going to go down this year. >> even with the higher interest

rates. >> even with the higher interest rates. 2020 before ag at lot of repayment is to. if the default rates go down, 3%.4% red goes to >> a thing that is missed is compliance between opec and non-opec and this is betting in the oil market. you have a view with propensity in the bondg higher space for you. >> you look at the oil prices and, over the course of this year, they increased on the back of a stronger global growth backdrop, adding to inflation for the is good news

commodity-sensitive, with position on earnings outlook. >> thank you very much. a reminder that, if you are a bloomberg customer, you can watch on the video stream and you can follow all the charts and the functions we put up and yourself.n them >> coming up, we are going to look at the changing fortunes in france. the endorsement in less than a does the independent have a shot? ceo ofpeak to the deutsche telekom. unlikely and to proceed after

regulatory hurdles. this is bloomberg.

>> welcome back. this is bloomberg. it looks like it will be pretty flat on the equities market. hours until that happens, of course. let's get the headlines. >> thank you. by 80%, bank has cut according to the german sunday newspaper. the chief administrative officer said that the lender is reducing the payment within i towards shareholders and he is aware that it will be frustrating for employees.

out after sixpaid years. they in band and an idea of a joint venture with an insurance company. he says that he does not see sufficient value and the second-largest bank said that they plan on improving the creation of value for shareholders. two of the biggest technology companies are gaining -- joining forces through a share sale. target -- they have not said what areas they will focus on. targets video gamers and professionals, as the company tries to bounce back from last year. the galaxy has previewed in

barcelona. they tease that the latest smartphone this now expected to be released at the end of the month. that is your business flash. >> thank you very much. there is a global conference of tech leaders and the future of the telecoms industry is the focus, with everything from gadgets 2 -- youaroline, great to see this morning. the big news is that there is not much big news, really. >> exactly. it is great to be on the continent and in the time zone. there is no take news. 35% of and apple have the mobile market and neither of .hem are releasing big phones

not much of a surprise. samsung has always unveiled the at theg smartphone mobile world congress, instead, there are those exploding note 7's that were a debacle. wants to displace apple and samsung to become a number one player and they are trying to steal some of the limelight here and show off some of their latest gadgets. big playerst many lighting up the stage. mark zuckerberg is not here. there is talk about more players here. >> good morning to you. money bringing you back

from america. who are you going to chase. herehave to earn my way and we have some great guests and we will speech to the head of deutsche telekom and dig in there and story across the other side of the atlantic and we have the ceo of ericsson coming up here and we and ie making our way will prove that this was worth -- flight costs costs. >> thank you very much. caroline hyde has been over and lending insight to the mobile world congress. >> indeed. you have a candidate who has opened up his biggest lead yet

and has begun to narrow the cap. quite he got the third endorsement in less than a week. we have make from jp morgan asset management here and we are french politics looking in theou european universe for signs of nervousness? are we seeing anything else about the future of europe? >> this focuses on the french story and there is a ripple of fact. in a sense, italy has been a lightning rod for a lot of this, but the market focus will intensify and the volatility

within will get greater and greater. >> this was something i prepared andier with these stocks this litigious mood with the upside. this is the spread and here we are at the moment. is this the kind of indicator you look at? a europeangested complex is getting ready for the punch up. >> very much so. the markets of sus about this and the levels of volatility go up. it is the french and dutch elections and this is very much a market focus. two things take this, the for referral bond spread and the euro, which has been strong, in

the face of elevated risk. >> you said we need to be and noneith the polls wille coalition partners want to do this. is an populist media that is going to be something new. is this a roadmap for the french election? again, you have an environment wideningbond spreads and that is what they will look for because of the opportunity

with the attractive bonds. theseare checking on underbelly's for the market. they are not going to touch these levels beyond 2012. italy and there is a very attractive valuation there. is inically, italy reasonable shape. they have a modest deficit. banks. or take a few that is a conversation for another time. thank you very much. >> up next, we'll have a

conversation and caroline hyde is on the grind their. this is bloomberg.

>> a deal in jeopardy. the plan may be derailed by regulatory hurdles. >> the president is expected to boost defense spending and/the environmental agency budget. x the reality of brexit with the house of lords continuing the scrutiny of article 50 today. the prime minister and his team is preparing for scotland to prepare for another service referendum.

>> welcome to bloomberg in london. here inm welcome london. majority, watching in we're waiting for the inflation one of the u.k. house builders. line withetty much in they sayx profits and and there is aup with the look at

that. this is the value of global it is one line coming through and we are theing about the lsc and regulatory hurdles. progress reports are lines with the they expect this

lsc.his is a line from the there is strong andrt with the transaction there was a question about signing a part of the business and they pointed out a bit on the performance and they are byfident in the strategy led the ceo. another follow-up statement is coming up. let's take a look at the markets. >> excuse me. the equities are a slightly better bid and it is fading down a clearf with indication from trump what might

be the details. have janet yellen later in the week. >> we have the bond traders waiting to find out what he plans to spend his money on. have $73 worth in global equities and it has been questioned a little bit with the pound a bit weaker in the asian session on the back of this and the government is preparing for another referendum on scotland and as long as it would be held after a separation from the eu. it is more fractures coming on

board. the london stock exchange is with a new proceed regulatory hurdle. officialsropean union have requested the defenseman. the lsc said they could not commit to the investment and would not submit a remedy. down trump is proposing major defense spending increases and cuts to the environmental protection agency's and others. the has officials said that outlines of the budget will be made public today. u.s. governors have told

-- have of americans been told that millions could lose their coverage under a repeal. 20 million who gained coverage under the affordable care act and the white house says that president wants nobody to lose coverage. a third endorsement in a week and a suggestion that he is a favorite to win in the election. hurling le pen is expected to win on the first ballot. korean court is having the final hearing over the president, who was accused of

having undue influence. the court will rule on the legality in two weeks. in the meanwhile, the prime minister has rejected calls for a special investigation into the scandal. increaseill look to nato contributions with turmoil from all sides. when britaint, leaves the eu, they will focus on the founding principles. >> is not a question about brexit. it is a question of how the remaining countries play with each other and i have a feeling , more and more people will understand that we have to construct again.

finale toa germanic the oscar awards. on after la la land mistakingly was announced as the winner. war and baby said that he was given the wrong envelope. global news powered by journalists and analysts in 120 countries. bloomberg.d more at >> we are seeing some closing up and it drags the japanese equity andets down in china australia finished lower. it is worth noting that they

have continued the proxy trade thethis one has been up for stocks. exchanges continue to fall and the operating conditions remain challenging they pressure and announced a $1 billion buyback. >> thank you. let's get back to caroline hyde at the mold whole world congress. indeed. we are joined now with what is hot here this year. >> good morning. a subject of don't to telecom.

infrastructure that capacity and it gives time with aresponse lot of technology coming to the people. >> how does that help? what kind of devices are you going to be bringing? ande are connecting people devices in our infrastructure in 2020 and everybody is connected. you know? technical equipment here withverything has to come guaranteed services that are process with a special

offered. >> is this working fast enough? are the fastest industry in the world and regulators are trying to hurry up and they are catching up. there is all this different functionality and you need to make this available. this is what the industry needs. i want to hear about how deutsche telekom is forming. well and there is an unbelievable growth rate every quarter and, in germany, andave had this very solid

we will have it. >> there is so much speculation interested if t-mobile will pare together. time, i amauction not allowed to talk to anybody in the industry. >> what about the regulatory environment? do you think they will go through more? >> across the globe, for the globally connected industries, sendoff and wee -- same standards. i want this harmonize in standardized. -- harmonized and standardized.

i think the u.s. model is a good model for the world. >> what about the pushing back against some of this and the frustration. find theope, you will consumer prices and their is a huge competition. build are trying to networks, we are not allowed to do so. it is difficult. if we are allowed to congregate more, there would be a re-ignition of investments in the industry. >> talk about the dominance in markets and how they are performing, at the moment. >> at deutsche telekom, we want

attitude leader with and by doing things that are than the competition and we do is want a europe that falling apart. our industry digitalization is to build bridges and we want to be one united europe. with buildingpany connectivity for all of the people here. >> you talked about the connected europe and we see the u.k. removing itself from the eu . how concerned are you? but, i wouldrned, love to see a europe that

reinvents and remembers this project of peace and prosperity for the last 70 years and i would love to see this. life is for that have deutsche telekom standing for europe. >> always wonderful to get your time again. >> thank you very much. thets are a focus and robots say they are friendly. >> not hostile. >> that robot, they could flock her up and move her away. but, she is there. you do not want to miss the coverage of the event in

barcelona, which last for three days. coming up, what have we got? >> we discuss the obstacle that could derail the merger and we will have the details of that next.

>> welcome back to daybreak in europe. is 19 minutes past 7:00 here in london. bank has increase the pool by almost 80%. officerf administrative

says the largest lender is reducing payment and is aware that it will be frustrating for employees and that there will be a special long-term incentive tied to the bank performance that is paid out. model withbandoned a the insurance company. the ceo says that he does not see sufficient value in merging and the second largest bank says that it plans to improve the creation of value for shareholders.

and samsung teased the latest smartphone that is set to be released at the end of the next month. you very much. let's talk about the london stock exchange and they are unlikely to pursue a new regulatory hurdle. remind us why this deal hit the rocks. we got a statement last night. >> ever read deal has a redline and the commission gave more than they were prepared to give and an issue came up with government bond trading and they were not prepared to make the sales wanted, blocking the deal.

companies bending over backwards to keep regulators happy. >> indeed. >> to you think it is a surprise that they are planning on blocking? is this really that much of a surprise? before andseen this we have seen deals with drawn because they look tough. they have regulations coming in and we should see more competition now. companiescomplicated and everybody knows there are lots of different product lines and you do not see these in orvice and you face only two

three providers and risk this. >> does this tell us anything about the prospects in the sectors? that it will be they will look at what they have to sell and it will not be easy. there is always a deal that is doable and -- this is a deal that looks like it may come to an end. busy earnings a season. trump policies have been affecting markets. with ae, we are joined

run-up of the winners and the losers from this year. >> if we start with the losers, the expectation is that investment thanks would have a good season and there are certain things that is good and we saw that in the united states , where they had the best quarter since 2009. the actually fell short of high expectations and the outlet wasn't particularly good either year,d, in terms of this a lot of negative language on the consumer side, with the -- with union leaders saying the

consumer is not spending and they do not forecast a great year for 2017. >> in the united states, the language seems to be more positive, versus some of the cautionary changes and this is a function you guided us to. we put this into the stoxx 600 and there is no doubt that you with 86% inandouts earnings growth and you focus in on metal miners. >> it is a rebound and we look back to the way things were a year ago and known was talking about a good year for the mining companies. rebound in a

decade for rebounding companies had fantastic results. the cash flow concerns are not coming through. this is a highlight we are seeing in a rebound that is expected to continue and we will see oil and gas coming through this year. what about the forecast benefits? andt seemed a little high it was a mixed season, with shell having a really good quarter and bp, not so much. we may see a rebound. >> thank you. thank you for coming in. up byks like this will be 2%. miners.e profit for the

>> that is it and the market is up next. i'll speak to the ceo. do not miss that. this is bloomberg.

♪ >> morning all. watching bloomberg markets. alongsidee european matt miller, we are back. he is in berlin and i'm in london. potential amendment to the brexit bill prayed a second scottish referendum could be on the cards. could theresa may be in for march madness?