anna: marching towards a hike. hike isest rate likely opprobrious and with dollar rallies. manus: asian stocks rally after the dow closes above 21,000 for the first time. it is the fastest 1000 point gain in history. anna: snapping up a skyhigh valuation. snap begins trading today after the photo app shares surged. manus: the speedbump. britain's house of lords rebuffs article 50, voting to protect the rights of eu nationals living in the u.k.

anna: a very warm welcome to "bloomberg daybreak," our flagship morning show in london. i'm anna edwards. manus: and i am manus cranny. let's kick it off with some red hot headlines. anna: we have numbers coming through from deutsche telecoms. of course, to rise about 4%, so says the company this morning. they have given us the numbers for the fourth quarter. revenue at 19.5 billion euros. that is ahead of the estimate of 19.1 billion euros. giving us their numbers. missing estimates, the dividend coming in at 0.6 euros per

share. that is one of the big stories around deutsche telekom at the moment. back in their home market, prices are under pressure because of competition from vodafone. better news out of the u.s. unit. we heard from t-mobile, with 1.2 million monthly wireless subscribers, more than any other wireless subscriber in the u .s. this is a bond based business. manus: a couple more red hot headlines. let's jump into standardbank's four year adjusted earnings per share. this is an african lender at 14.4 rand. the market had estimated 14 point. 82 last year they earned 22.2 billion rand. teh equity comes in 15.3%.

dividends, if you are a m 675 from a up fro year ago. that is the other red headline. let's talk about one of the world's biggest brewers. they spent over $100 billion purchasing s&p miller. this is a pretty colossal miss. what we happy or is organic revenue growth, coming in at .2%. the market was looking at a revenue growth of 3.1%. they missed on the headline earnings as well. the market had penciled in $5.64 billion. they have got issues in mexico, in terms of the currency. they have got problems in latin america. the organic volumes are down 3.3% on the year. the market estimated those would drop by .8%. these are considerably worse than the market expected.

anna: we have some breaking news coming through. i am going to delve into these numbers. the m&a story over at henkel, the german business. they have made a binding offer for the packaging technologies business. this offer is for the direct unit. ,cp applied technologies listed that whole business has a market cap around $1.8 billion u.s. and this henkel making an offer at $1.05 billion. that is the packaging, technologies business. manus: i am going to jump into the lassange. let's keep an eye on rush, because we have a flow of news coming through from the pharma mega. let's talk about lafargeholcim. they have all that good news

coming in from the u.s.. the market estimated $5.71 billion. who said medicine could not be sexy? that is nice for them in terms of the fourth quarter operating number, coming at one point zero $3 billion. net income $6.53 billion. this is a nice before lafargehol cim. that wave of spending around construction. anna: and the construction about donald trump, everyone is keeping a close eye on who would be involved in working on the wall in between the united states and mexico. we have breaking news coming through from roche as well. manus: one lifeline -- there is a newsline coming in from lafargeholcim. they appear to be on this list. it would appear from a news source we have is they are on the list.

be a huge wall, if they ever do build a. anna: briefly, roche says mark foras met the breast cancer studies. manus: macquarie let's talk about the risk radar. the dow traveled about 1000 points, the fastest rocketing rally for the dow jones. there are two things in play. look, there is the fed story. he has gone from madove to moderate hawk. anna: that is enough to give the dollar a little bit more of a boost this morning. this week we saw the possibility of a rate hike in march going above 80%. how much of that dollar rally is dependent on higher interest rates? the u.s. two year, 1.29%. it went over 1.3% for the first

time in years. we have the trump story, and that is once again, lifting stocks. manus: you saw financials really pump a lot higher. you can see records in the big names, like goldman sachs. one last line on lafargeholcim, synergies from the deal, 638 million swiss francs was delivered. anna: let's get to the bloomberg first word news with shery ahn. shery: good morning. the u.s. justice department has confirmed the attorney general jeff sessions had conversations with the russian ambassador to the u.s. when he was a prominence rated for donald trump during the -- when he was a prominent surrogate for donald trump during the campaign. sessions said he never met with russian officials to discuss the campaign. he said, i have no idea what what this allegation is about.

it is false. that revelation has prompted top democrats in congress to call for him to be ousted. president trump's new travel raq from going to drap i the list of muslim nations who will be barred from the u.s. for 90 days. t according -- according to two white house officials, donald trump has delayed the director. the order is a revision of the travel ban imposed on january 27. snapchat's parent company is going public with the valuation. inc. sold 200 million shares in the initial public offering at $17 each. at that time, they had a market value of $20 billion, based on the 1.1 6 billion shares outstanding after the ipo. the stock will start trading today on the new york stock exchange under the ticker snap.

the u.k. government has suffered its first parliamentary defeat on the brexit law with the house of lords rejecting a plea to leave the bill intact. the upper house voted for an amendment that protects the rights of eu national to remain in britain. prime mr. theresa may -- prime minister theresa may would like to trigger brexit by her own deadline by the end of this month. global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. you can find more stories on the bloomberg at top . ahn.shery this is bloomberg. manus: thank you very much for the round up. let's get to juliette saly. so, the dove goes to hawk and the market is relieved. i was aged taking i -- how is asia taking it all? >> a lot of people out there are saying that what we saw in asia

was in response to donald trump's speech, but many more agree with you, that it was braieynard's comments. the nikkei closed higher by 1%. the hang seng, up by 1/3 of 1%. takata had a great day, australia having its first win in six sessions. in terms of equities we have been looking at today, alumina getting a strong boost in sydney on the back of those reports that china is curbing the aluminum and steel output. the hsbc share buyback announced in london, sending the hong kong based shares up by 1.6%. this is on reports that the chinese website was hacked. have a look at this graph because as i mentioned, the nikkei was briefly at that 19,600 point mark after the dow hit 21,000. the topix, that is actually now

at its best level since december, 2015. certainly some very strong movement, of course, a weaker yen not hurting things in the japanese equity market either. anna: thank you, juliette saly. we have heard from yet another official at the federal reserve. even governor earl bernard echoed the more hawkish tone we have heard from several officials this week. >> we are closing in on full employment. inflation is moving towards the target. foreign growth is on more solid footing and risks to the outlook are as close to balanced as they have been for some time. it will likely be appropriate for him to remove additional a ,accommodations continuing on a gradual path. manus: and as before we get the chair's comments on friday. with us now, the global head of g10 fx strategy of bank of

america merrill lynch. lael brainard goes from one of the most of his voices to absolutely sounding as if she is ready to move. we have not been at this level. we have not been at these short datesd rates since 2008. march is locked, live, and 100%. >> i think they will hike in march. the u.s. economy, global asset prices, the global economy were in a much better place than in december. until this week however, the fed seemed reluctant. this is the big change this week. all the speakers have given a strong signal that the fed will hike soon, which means march. we have to wait of course, for tomorrow. yellen is going to speak. but i think we will hear a very similar message. we started the week with a market pricing of 35% looking at the hike and now we are closer to 75%.

by the end of the week we will be close to 90%. anna: how much is the rally in the dollar returning a little bit of late, how much does that rely on higher yields from here? socgen said yesterday that you needed to see higher yields to justify the more recent euphoria in the dollar. >> to a large extent, this is the case. many people believe that donald trump's speech contributed. i doubt it. get any new information, any new details. i think the big change was the town from the fed. looking forward, i think it is important to see what is happening to the dot plot. if they hike in march, will be revised the dot plot from three hikes to four? manus: this has been the debate, and this has been on mlive this morning. do you think they will be slightly more aggressive? the debate this morning is the new rate could be up around 2%.

you stretch further than that? >> it depends on whether we get fiscal stimulus and how large this fiscal stimulus is going to be. the fed is in a sweet spot because just one year ago the market was very concerned about fed hikes, not because the market expected some kind of fiscal stimulus. the fed can normalize monetary policies. the fed can hike faster. rate can be higher. otherwise, it will continue cautiously. anna: what do you make of the comings and goings regarding mexico? bloomberg has a story that the mexican central bank is considering requesting a line form the federal reserve. that was denied, it was denied that they were even considering it. what are your thoughts on mexico? it is a strange turn of events, to be asking, i guess.

call on mexico? >> i think the mexican peso is definitely undervalued. in a way, the market is pricing the highest risks related to the donald trump policies. and i this is what anna were looking at this morning, which is, there is the victory moment. here is the retracement. you say there is potentially more value to come? >> if we don't get something aggressive on trade protection from the new demonstration. the mexican peso has been affected by the em rally. there are some trade protection risks. we don't expect something strong from the u.s. in this direction.

i think most likely, there are still buying opportunities in the peso. thank you. some highlights from your day ahead. voters in northern ireland go to the polls today to vote for a new assembly. anna: and snap inc. makes its wall street debut later. and then we have the u.s. jobless claims. manus: coming up, we discuss the latest setback for brexit as the u.k. government loses a key vote. anna: then, we take a look at snap's ipo. from aholdhe ceo delhaize banks joined anna and i. ♪

anna: welcome back, 6:19 in

london. the hang seng is up by 0.3%. we saw new benchmarks in yesterday's session. >> thank you. stiff competition. deutsche telekom has predicted 2017 earnings that trailed analyst estimates. the company protected adjusted growth down to 4% to 22.2 billion euros. there is tough competition in the german home phone carriers market. and deutsche telekom's ceo joins us on bloomberg at 11:20 a.m. u.k. time. wells fargo has warned investors it might find more victims of the accounts kindle that shook the company last year. it said u.s. authorities are examining whether other phones have used the technology to violent international sanctions. the company said it will withhold 2016 cash bonuses from eight senior executives and call

back compensation received in 2014. blackrock reduced annual employee bonuses by an average of 2% to 4% last year, the first cut since 2011. bonuses were slashed overall one year earlier. a blackrock spokesperson declined to comment. the asset management business is under increasing pressure as money flows from active strategies into cheaper offerings. that is your bloomberg business flash. manus: thank you. bill will gorexit back to the commons after theresa may suffered the first parliamentary defeat on the lordslaw as the house of voted in favor of an amendment which protects the rights of eu nationals living and working in britain. anna: the commons will debate the amended bill from march 13th to march 15.

watching the timetable here, aren't they. i mean, the deadline is at the end of march, but there has been a lot of expectation about what that eu meeting might involve. now it looks as if, at least according to one government official, we are talking about maybe a little bit later in march. we still could meet the deadline, but moving a little later in the month. >> it is a mistake to activate it right now. i would wait until after the german elections. earlyis is the promise -- march, late march. anna: when they made that decision -- activatethey ar article 50, uncertainty will increase. this will be relatively negative

for spending. we are not going to see any progress until the end of the year. and the only thing that we know is that the eu is asking the u.k. to contribute six $2 billion to the budget. manus: that is the worst case of the budget. it is almost terry picking which things you will do -- it is a must cherry picking which things he will do. you either send me to a very happy land, or you at 6 at asphyxiate me. what are the breakpoints for you? need tos this market move? >> if you have the transition period, you buy time. goyou don't have it, you through the cliff, which is the worst possible trade deal between the u.k. and eu. that is extremely important. we are not going to get any

information on the transition until the german elections, but when the negotiations start, any progress will be stalled. we know the u.k. want they transition period, but in their mind, the period will be relatively short. i think we need a much longer transition period. they should want a transition period. but it depends, if when he the transition period pretty early in the negotiations. anna: why does the transition period need to belong? to smooth the path? >> basically, it is what you need between the brexit negotiations in the final trade deal. a trade agreement usually takes many years. the deal between the eu took seven years. anna: he made the point in your notes that the pound is diverse from the data. you said that is not sustainable. we are talking about big changes with the u.k.'s biggest trading

partner. maybe it is sustainable. data,n you look at the the market is focusing on the brexit uncertainty. if you do get the transition agreement, the data will come back. if you don't, the data will start worsening,w hich will weaken sterling further. manus: there is no sight of any potential rate hike on the cards from the ecb from the bank of england, nor from the bank of japan. where does that leave sterling, as it were? where will sterling trade in terms of weakness through this volatile period? i was looking at one month volatility and nobody really cares about one month volatility. it is dropping away. there is no great disconcert ing moves in the market. anna: number 15. manus: there we go.

that was a foolish move. one month implied volatility, there we go. who cares? nobody cares about article 50. fx traders don't think to care about article 50. >> sterling volatility is definitely underpriced at this stage. the negotiations start, we will have a lot of headline risk. they are likely to start with a tough position. and then they will have to convert to somewhere in the middle. uncertainty will increase and when the negotiations start, everybody will realize that this will be a difficult thing. anna: let's see what one month volatility does the next time you come. athanasios vamvakidis stays with us for a little bit more from bank of america merrill lynch. anna: up next, fans love the filters, but will the disappearing photo app shares get snapped up? plenty more to talk about. snapchat and snap inc, how

do those valuations compare to twitter? ♪

manus: you are looking at a shot of the emperor's palace. it is a misty, wet day there and 3:30 in the afternoon in tokyo. the dollar is marching higher and the yen lower, the fourth day in a row of the decline in the yen. we have not seen that since november 10. you are going to say something about the weather now, aren't you? anna: no. now, a new addition of daybreak is available on your bloomberg and mobile. that was a good stat on the dollar-yen. markets on fire. the dollar extending gains and

asian stocks joining the global reflation rally after the dow" he 1000. the yen and aussi declined against the greenback, while the pound held below 1.23. manus: if you believe in global growth, you go with those. the next areas about brexit's speedbump. theresa may suffered her first parliamentary defeat on a draft after the house of lords rebuffed the order to leave it intact. chamberthe unelected challenging the elected chamber's view. anna: how much appetite will either of the chambers have for this so-called ping-pong? we will watch the timetable very closely. and we focus on the earnings as deutsche telekom reported numbers that morning.

6:00 a.m.d that at u.k. manus: let's see how the market prices ab inbev. one woman in the house can dissect these markets and tell us about the fastest rally in history of 1000 points int he the dow. nejra: the global equity market continues in asia and the topix hit its highest since december of 2015. you can see broad-based gains across asian equities, australia jumping the most in three months. south korea is higher as well as the nikkei closed higher, up 0.9%. looking at the fx space, the bloomberg dollar index is up for a fifth straight day. 114.09.is down .3%, 10 year treasury yields are pretty steady after climbing six basis points yesterday. you can see a mixed picture

across the asian bondage . asian -- across the bond space. 0.5%, but ity has been outpacing other industrial metals. 0.4%, no surprise on the expectation of higher rates and the stronger dollar. the dow is what you were referring to, manus. we are above 21,000 for the first time on the dow industrial average. the s&p 500, jumping to a fresh record as well. it seems investors think the u.s. economy can withstand that rate hike from the fed and of course, march is looking ever more likely with it probability on fed futures rising to 84%. a number of hawkish comments from fed policymakers come the latest coming from lael brainard , normally on the more dovish side, saying a rate hike is appropriate same. .- appropriate soon loo

tlook at the two year yield. this is at its highest since 2009. it is not only the fed's comments. preferredt the fed's measure of inflation coming to 1.9%, beating estimates. i wonder if that is behind us some of this curve steepening. you can see the trend has been for curve flattening over the last three months or so, but we saw that little jump they're just yesterday and it is holding on today. justttle jump there yesterday and it is holding on today. trump's --dent after president trump's win, the markets are looking with caution at the french election. some investors are hedging their fx risks. manus: the head of g10 ethic

strategy at merrill lynch is with us. nobody is really that focused on brexit anymore. they are only a couple of things that matter and one is the french election risk and two is the fed, and three is donald trump. i put it to you that it is a dollar trade driving the euro. in other words, there is a double punch, the dollar trade and the marine le pen risk. isat this point, the dollar the biggest driver, but i think the french elections will increasingly become more important. we have seen increasingly hedging activity. a couple weeks ago, the market was looking at only the second round and now they are hedging the first round. when we think about the french elections, given that the market got the u.s. elections wrong and the brexit wrong, they are cautious. although le pen winning might be

a small problem, it is a high-impact event. there will be no rally if le pen were to win. the market would stop pricing eurozone risk well before the referendum in france. if you expected markets would get more cautious closer to the election. anna: she is expected, according to the polls, she is expected to win the first round. if she does, will markets remain calm, this is what we expected, and then expect she will not win the second? bemight risks the ri reignited? than le pen does better what the polls suggest, the first round matters. you would win, sh

have to be really wrong. for the first round, it gives us an indication about this affect. manus: we have looked at this a couple of times and the debate is, in the second round, she has broken 40%, up around 42% in the second round. there is not much difference between 42% and 50.1%. you would say that the euro sterling trade is about to inflood. and that the risk spectrum will move to the european zone, rather than the pound. so, it is a euro sterling cross that could see a lot more volatility and movement. >> that is very likely. if the eurozone is at risk, then the decision of the u.k. to get out of the eu does not seem that unreasonable anymore. but i think it is more the euro-dollar trade. if the eurozone is at risk, then the euro will weaken across the

board. if at the same time, the fed is hiking, the u.s. implements this euro-dollarthe will be the trade at this stage. even if le pen loses, those closest to the elections might see indications. so, i think the downside for the euro is still ahead of us. anna: let me ask you about what is going on elsewhere in europe because you mentioned about what would happen to the pound if we saw le pen doing well. i read a story on the bloomberg about denmark and how there might be more intervention to stop their currency depreciating as we see political risks climbing in europe. can we treat this as they say payment? -- can we treat this as a save haven? >> we have seen pressures on the swiss franc. it is one of the worst moments

we saw during the eurozone prices. interventions in this case, they can work in the short-term. they can buy some time and if le pen loses, everything will be ok. but definitely, there is nothing that can be done if le pen where to win in the market starts pricing the breakup of the eurozone. manus: athanasios vamvakidis, thank you for being with us this morning. anna: it is the biggest social media ipo since twitter and it sold 200 million shares and is valued at $20 billion, making it bigger than tesco, ryanair and fiat chrysler. manus: it is of course, the controversial listing of the disappearing photo app maker, snap inc. the country has a strong criticism for issuing only nonvoting shares and a valuation that many analysts are skeptical of.

these are the early days of twitter and of facebook. this is the facebook data. they had a little bit of a wobble in the first year and then they found the holy grail, mobile advertising. and then, twitter, which is not tweeting enough. ana: snap went mobile with valuation four times more costly than twitter. adam joins us now on set. what are the arguments on both sites, in terms of this ipo? arguments against our, there are many. you have the slow in growth, the unproven business model, no profits, incredible competition with facebook, and the no v oting. there is a lot to say of reasons not to, but why you would do it is essentially the chart you are showing with facebook. it is the idea of getting onto a rocket ship. manus: they found mobile

advertising. they found mobile advertising and the market began to believe in them. snapchat already has a competitor in the form of instagram, which is owned by facebook and has how many daily users versus instagram? >> it depends on how you want to measure it. but you are absolutely right. snapchat has been trying to develop the advertising model in a different way. their idea is a bit more like television advertising, a lot of the video focus, a little more focused on premium brands. but it is a very difficult business, but they are going into a great market. if you are listing an ipo, this week is a good time. anna: what is the profitability? two they have -- do they have one to justify this? >> it is to get more advertisers onto the platform and they have been moving more into hardware. these eyeglasses that may have,

it would be better if we were all wearing them right now to take pictures of each other. the "new york times" did a story about them developing a drone. there are other avenues, but it is very unproven. manus: there was one other line that we talked about, the nosebleed valuation. that is one other company's view of the valuation. what does this mean for the startups. this is the first big blockbuster ipo. does this give the other tech prospective ipo -- i'm thinking --ut blue apron, dropbox does it give them hope that things will get better? >> they have their pom-poms today, rooting for snap. you have all these companies, there is just a backlog of companies who have very high valuations from venture

capitalists and other investors. many of those investors are getting to the point where they want something to happen. itsnap has a successful ipo, says a lot about these other companies. anna: i like the idea that the pom-poms would make a difference. who was going to make money out of this ipo, then? >> in some ways, this is the tech fairytale story where you have a college couple of friends who start a company. the founders will become billionaires. but just an idea for venture capitalists -- check this out, ghtspeed -- that is worth $5 million. benchmark is now worth $2.2 billion. that is basically the goldmine, if you are a venture capitalist, that outcome. manus: anna and i are developing an app as we speak.

we will bring you coverage of that snap ipo throughout the day, including interviews with the investor. bell hope that the opening for that is not like the facebook ipo. anna: i wonder what he is putting his money into now. that is part of the conversation you want to tune in for. if you are a bloomberg customer, you can watch this on regular television, but also with the bloomberg, as well as the video stream. you can follow all of the charts and the functions and reach out to the show's producers directly using the link at the bottom of your screen. manus: coming up, three big ceo interviews for you on the show. at 7:00 a.m., we will speak with the ceo of allied irish banks. manus: 15 minutes later, we speak to the head of the financial comparison website

gocompare.com. this is bloomberg. ♪

manus: it is just gone 1:47 in the ark. moment'ses taking a reprieve, 2393. 6:48 in london. growth looks like what, anna? anna: it was below the estimate of growth of 0.4%. the culprit, it seems, the strength of the swiss franc is one of them. manus: of course, the swiss franc has had the haven status. as political risks rise in france, you will see more of a rally in the swiss francs. anna: exports recorded their weakest quarterly results in

more than a year. manus: and there is the line fro. the central policymakers have recalled -- have called the swiss franc overvalued. that means intervention. anna: let's get the bloomberg business flash. raiseinbev has the target for cost savings. synergies should reach $2.8 billion, 14% more than the previous forecast. adjusted fourth-quarter ebit sales dropped to $5.2 billion, missing estimates. blackrock reduced annual employee bonuses by an average of 2% to 4% last year, the first cut since 2011. flat from one year earlier. a blackrock spokesperson declined to comment. the asset management business is under increasing pressure as many flows from active strategies into cheaper offerings.

forecasted sales and earnings growth this year, as it prepares to fight with the rival. the operating income fell to 1.3 billion dollars, matching estimates. in january, luxottica agreed to the deal for $5.2 billion and stop. that is your bloomberg business flash. anna: thank you. juliette saly, joining us with the update. outdoord's biggest company expects revenue to fall during the first quarter following global uncertainty on the global economy and political risks. we can♪ speak to the ceo from paris. great to have you on the program. thank you for joining us. looking at your statement this morning, you talk about uncertainty, uncertain global economies, as well as the uncertainty in the political

outlook. you seem quite cautious. and yet, we have a global stock rally that is suggesting there is a lot o investor enthusiasm at the moment. why do you see the world differently? >> good morning. yearyear we had a record in terms of revenue at 3.4 billion euros. we have a very strong sales tax with more than 6% organic growth. the second half was affected by the slowdown in the asian pacific. and we continue to see some weakness in china. which is about 20% of our total revenue. offset by some very strong momentum in our new digital networks in london and new york. in london, you have seen all of the digital software we have installed. they are popular among advertisers. we are making significant progress in three of the top four advertising markets

worldwide with the digitization of london and new york, where we now have the most visible advertising location on fifth avenue across from trump tower. also recently, we won the major contracts in japan, which is the third-largest advertising market worldwide, where we are now providing a network which covers 40% of the japanese population in the top 41 cities. we have some very good news in terms of organic growth and a digitizer nation, which is trance -- and digitize asian, whic -- and it digitization, which is transforming how advertisers will be advertising in the future. manus: you are spoiling me for choice in which direction to go, whether i go to the trump question or the brexit question. let's go to trump. he is talking a great book. there is enthusiasm amongst the manufacturers and the consumer.

is that feeding through two bookings in the first month and a half of this year? is there any push higher in the u.s. business, apart from trump tower? >> our u.s. business is doing very well in q1. obviously, we are not giving guidance on the geographic basis. our guidance is for the world as a whole, which is the first question of anna. why are you so cautious? we are cautious because we see a slowdown in most of the emerging areas, which is 26% of our revenues. of digitaztion in the core manhattan is proving very successful. the u.s. is going to be a top country for growth in 2017, but the u.s. is only representing 10% of our growth revenue. , so: you already mentioned let's come back to the u.k.

last time you reported to the markets, you warned of the potential of brexit delays. you did talk about the expectation that 50% of u.k. advertising revenues would come from digital in 2017. can you update us on guidance for the u.k.? >> you are perfectly right. we targeted a 50% share of revenues coming from digital in 2017. we are well on track because last year we generated 40% of our revenues from digital. what i told you last year when ispresented our 2015 results going to be true. we will be generating 50% of our revenues in the u.k. coming from digital. we operate the largest digital out of home media network in the world with now 600 screens. oxford street is th busiest shopping

street in europe. we are selling to new advertisers. manus: france is 19% of your revenues at the end of 2015. there is a router of ways -- there is a variety of ways to look at french risk at the moment. everybody has to have a worst-case scenario. if le pen were to become the leader of france, what would be the immediate decision process that you might go through as a ceo? would you consider moving your headquarters? what would go through your mind? have you thought about it? >> we are a french-based company. paris is our showcase for the western world. this is where we launched the most successful bike sharing system. -- most of our new

products, such as the automatic usbic toilets, the connections at the bus stops -- everything was invented in france. we will continue to be a french-based company. there is no doubt about that. you should know, manus, that we, has a 30%n france media space. we gained market share and we have a strong position in france, employing more than 4000 people. we are very devoted to our country. having said that, i am still living in london and we are operating in 75 countries. it is no longer the biggest region. the biggest region remains the asian-pacific. reason, i don't see any reason why we should move out of our home country.

anna: thank you very much for .our time, the ceo ♪

i generate 27 that was blocked. snapchat's parent company is going public. evaluation twice as expensive as facebook and four times more costly than twitter. it sold 200 million shares in its public offering. at that price it has a market value of $20 billion based on 1.1 6 billion shares outstanding after the ipo. the stock will start trading today on the new york stock exchange. the u.k. government has suffered its first parliamentary defeat on the draft with the house of lords -- rejecting a plea to leave the bill intact. the voted -- it protects rights of eu nationals to remain in britain when the country

leaves the flock. 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 top . whether or not you're in the camp that thought trump was rally,he -- behind the the rally continues into the asian session. pointkkei closing at one hitting 19,600. seng touching the 24,000 point level as well. asian regionthat and jakarta had a solid day. one stock to look at rising on back of these -- this news that china is cutting steel and aluminum output. the hong kong listed shares are doing well.

this was on a report that it's chinese website was hacked. have a look at this chart. we have seen the dow breaching that trying 1000 point level. that is the yellow line. the nikkei is the white line and it briefly touched the 19,600 point level. topix tracking attire level since december. the weaker yen you boost to equities. there withet solly the latest on the markets. let's talk about allied irish bank. there is a quarter of a billion euros. we can speak to the ceo. and the finance minister is on the tape. an ipo.eady for

markets are getting away before the first half? guest: the second quarter was the first opportunity. these results demonstrate the bank is a strong position. the bank is ready and the market in terms of the irish market could grow and unemployment since two dozen eight. the market is ready, the bank is in good shape. it is a decision for the minister at this stage. what margoppose wants to know is the market is in a sweet spot for banks at the moment. will it be at the start of q2? guest: i think it is a sweet spot at the moment.

you are trying to get the market in a good condition. economy is in good shape. all those things are right. q2 from all of those perspectives would seem like a good time to go. anna: does the politics come into play here as well? the irish prime minister has been under pressure. not commenting necessarily. -- does political consideration come in here? could that you lay an ipo? -- delay an ipo? guest: it is a good thing to get the debt down. also from a policy point of view to have that separation between the bank and government. all those things are aligned and that is a fracture point in terms of the politics. they would have an impact if someone was in place to make a

decision. manus: your impairment loans are coming down from 13.1 billion. could that trajectory continue for you? what is achievable in terms of impairments and seeing those bad loans go down? from: when we have come almost 30 billion down to 9 billion. a 7% reduction. we have a good machine built at this stage, with 1500 people who work through the solutions on a daily basis. we do have a lot of solutions delivered every week with our customers. our target is to get low the european norm at this stage. betweenill provided so ongoing restructuring and looking at any other option in terms of that 5 billion net, we will take -- make sure this is addressed. will take any option. there are suggestions at the

bank might want to selloff impaired loans, is that something you're looking at? some: i think looking at of those portfolios that we have been working at for five years and seeing is there another option which could include a portfolio sale. manus: the government owns 99. do want cornerstone investors, have you tentatively touched the market. what kind of cornerstone investors will you get in this ipo process? >> we stayed close to the market so we have a good understanding of the appetite that is there. i think at the moment there is a strong level of interest in aib and the irish story. it is seen as a good barometer for the irish economy and a good way to invest in the irish economy. we would not necessarily see a need for cornerstone investments to get this one moving.

i think you would expect to see the traditional funds taking a position. our perspective is there's lots of interest and lots of people who find this attractive. anna: you said at the investment case for us for the irish economy and what you're doing on top of that. looking at the stress tests the bank was, aib was the second worst performer in the stress test. what new speak to investors -- when you speak to investors, do they raise that as a concern? other worries about getting involved in an ipo? guest: once investors understand how the stress tests were constructed and they understand that the way the tests are done, it is on countries that have high nonperforming loans which we did. there are static balance sheet which means they do not look at the momentum or profitability. they do not look let -- at capital restructuring.

in the year we generated 1.7 billion of profit, 260 basis points of profit for you in an addition straightaway and we were -- that is another 1%. between those two items alone at -- and ignoring every thing else you see a huge change in terms of capital position. we are a fast-moving bank that is improving quickly. i think understand or's -- investors understand that. manus: let's talk about interest rates. no sign of the european central bank and we need to raise rates. how is your fee income growing, how do you move the growth story forward for investors in ultra low negative rate environments, where are you eking out the gains? guest: the first number, our net interest margin finish the year on average at two under 25 basis points. our exit name is 242. we have said getting into the

mid-twos is a target. it is one we can sustain. the market is well poised for lots of growth. the housing rocket has been quite subdued and we expect the mortgage market to double over the next three years. we have had a 36% share. you will see growth coming from that market. activity across the board, unemployment down below 7%. last0 new jobs created year. driving s&p. .- sme you have lots of positive activity and we think we have growth. a have you seen any impact from the impact -- brexit vote, what are you bracing the business for?

, 10%: we have a business of our income. the time of the brexit vote slowdown in sme business. there are some impact. i would say that the market has normalized and barring some currency related issues, businesses that are sensitive have been impacted. everything else has been more positive than we would have thought. in terms of the irish economy the key sectors are going to be impacted are some of the egg sectors. things like beef. in general it has been muted. manus: on the brexit issue many people are talking about where banks may domicile themselves. how optimistic that you get new friends around you in dublin, how i missed it -- optimistic are you that global banks will relocate to dublin? and scale are

relevant. london is a huge financial center. dublin is an important financial center that a totally different scale. there will be some relocations that take place. anything that happens will be meaningful in terms of its impact, positive impact on the irish economy but i do not think you will see the entire london relocate. anna: thank you for joining us. the ceo of allied irish banks to us with the latest on the numbers and that ipo story. manus: i am not going home yet. , theygoing to go compare have released the first set of e-merging.nce d anna: we will speak to the ceo next. this is bloomberg. ♪

manus: a shot of berlin, gray and a little bit dark and overcast.

the euro is holding on to its support line. the dollar is stronger all around. that's look at the gmm function and see how that reflects. a couple of cash closes from yesterday in the top left and the london market. we will see how they open a little bit later on. there is one thing and that is that fed moving much more aggressively. middle getting ready for potential hike. indexthe bloomberg dollar up. raising its target for savings synergy should reach. two point $8 billion 14% more than the previous forecast. dajusted fourth-quarter ebit fell missing estimates. blackrock is said to have reduced annual employee bonuses by an average of 2% to 4% from

last year, the first such cuts since 2011. according to people briefed on it was flat. a spokesman declined to comment. asset management business is under increasing pressure as money flows into cheaper passing offerings. luxottica has forecast sales and earnings growth as it prepares to combine with its rival. 2016 operatingd profit fell to 2.1 3 billion euros matching estimates. it agreed to buy luxottica for 22.8 billion euros in stock combining the largest eyewear manufacturer with the biggest retailer. is selling the former trump taj mahal casino in atlantic city to a group of investors led by hard rock international. the billionaire's enterprises acquired it to a bankruptcy court restructuring in 2015. it shattered the property

october 2016 after failing to over with workers benefits. president trump is no longer associated with the property. that is your bloomberg business flash. anna and manus. manus: thank you for the roundup. website hasmparison released its first set of annual results as an independent company. it promised the demerger. welcome to the show. independence, you are free. how do you grow in 2017, you have cut the umbilical cord. you have the insurance and the noninsurance business, what is the balance going to be as the year goes forward? guest: we start by looking at the businesses today and we have had a fantastic your last year. where pleased and good results. that was in the bases of two things, a strong brand and we have a technology platform which is scalable. we are starting from that base

and we have to apply to that an element of speed to get the company to go faster, to get more out of the existing assets we have got. we have applied and strengthen the management team, brought in some software engineering skills, dillman skills and brought in some new digital skills. the -- we are delivering more savings. the strongentioned brand. no one will sing on the set. we know it you're talking about. the [inaudible] authorities cutting the discount rate used to calculate payouts of personal injury cases. this weight on the insurance industry. this is something that pushes prices up and [inaudible] thet: if you go back to

growth opportunity which we are excited about before we talk about this, let's talk about why consumers do not switch. to consumers switch regularly. bills, car energy insurance every year. but it out of 10 times. six only switch in frequently. to have never switched anything. eight of 10 people have an opportunity to switch more today and we're focused on that eight out of 10. when you look at the ogden premiums arear likely to go up. go up,surance premiums consumers look around and they're likely to switch. that is our job to help consumers switch more. that is a growth opportunity for us in the sector. manus: you saved a billion pounds and interactions europe. take me over the conversion rate, what is the one thing that you are going to do to get me to convert. i go on go compare.

what is the holy grail of getting me to switch? yes: it is making it easier, reducing hassle. manus: not price. guest: prices super important for everybody until they cannot find what they want. it really is about reducing hassle, number one, making it easy, and then even when you make it easy for people, some people cannot be bothered. that is the problem we have and those eight out of 10 people, you have people who say they cannot be bothered because it is too much hassle. there are too many things to fill out. anna: it says something about the value of our time. -- went to other sectors worked in other sectors. this is technology, you're keen to point out. people mentioned venture capital around her story, that is not because you are avc. are a we heart -- we

highly cash generative business. in the a great value business. rather than putting the capital back into our existing technology platforms which is scalable, there are the difficult problems we have talked about. how do you reduce the hassle and reduce the father? businesslike to find startups, investments, companies and our own ideas that we put that cash and that capital into in a venture style way. we have -- we are innovative and quick. anna: are the it to come? guest: we are working hard on that. we are a public company so we cannot say until we have something to say. we have a team that do that. manus: i hear a lot of people want to put their money off of quota markets into private markets. guest: it is a pacey market. a lot of people looking for interesting ideas. so we have to be quick. we have built a team of

entrepreneurs that are designed to be quick. anna: thank you for your time this morning. that is it for daybreak europe. manus: we have a mixed indication on the futures at the moment. 73.63. it was the numbers that were a big mess. we will see how that trades on the open. the european open is next. this is bloomberg. ♪

♪ guy: good morning. welcome. this is the european open. your first trade of the cast session coming up. that miller is in berlin. what are we watching this thursday morning? a no-brainer. is march, a hike in march all but guaranteed? an interest rate hike will be appropriate soon. rally on. asian stocks gain after the doubt closes at 21,000 for the first time. that was the