>> another brexit low. trying to get parliament to veto the terms of brexit. prime minister may now keen to undo the changes. next the uk's chancellor of the exchequer of else's annual budget today. saying britain is well-placed to whether brexit. >> economist blames seasonal factors but chinese shares climb in hong kong. ♪

a very warm welcome to "bloomberg daybreak:europe." i'm anna edwards. manus: a little bit of breaking news coming across the bloomberg . for your revenues come in at .7.3 billion euros this is of course one of the leading delivery companies around the world. what they do in the world tells us how healthy the economy is. terms ofpost rises in web shopping. that's what is driving the numbers for the fourth order. growth in e-commerce and a great christmas. operating profit up 1.4 billion euros up from year ago. it matched more or less with the market was looking for of 1.1

billion euros. that's what the market was looking for. we will have a conversation with the georgia post ceo in about 30 minutes -- with the deutsche post ceo in about 30 minutes. let's talk about what's happening in the u.k. today. the house of lords vote yesterday, we watched the article 50 process as it looms large. the chancellor will deliver his budget at 12:30. is, do youquestion want to be long sterling going into the challenge from the house of lords? cable in the blue, but the net short position, how is the market positioning itself? there is the record short position post-brexit.

it's near a seven-week low. the question is, are we about to break higher or lower at this particular level. anna: we will have full coverage of all the matters to do with the house of lords and the budget later on this morning. let's show you what is happening in the overnight session in asia. , assessingng higher how stable is the rally in stocks. and we have revised data on the japanese economy and import-export numbers out of china. manus: donald trump tweeted late in regard toernoon pharma stocks. a new system where there will be industry.n in the even though you got to gdp , there's no japan doubt about it, trump is unseating the market.

many futures are down for the fifth day in a row. the longest run of losses since the presidential election. anna: much more on the asian growth story coming up. now it's bloomberg first word news. we will talk about the gdp numbers from japan in just a moment. donald trump met with the over thembassador engagement between trump allies in the kremlin, despite claims that he had zero involvement with russell -- russian affiliate -- russian officials during the campaign. revelations last week that five members of his team tookontact before trump office. meanwhile, president trump has been throwing his weight behind the house republican plan to as one obamacare, even

republican senator declared it dead on arrival in the senate. trump had a meeting yesterday to rally them behind the deal, setting up an unexpectedly close alliance between the president and house speaker paul ryan. u.s.e will speak with congress secretary wilbur ross at 12:30 p.m. u.k. time. back here in asia, china's import surge last year from your back, hosting the biggest gain in at least two years. ,n per -- imports were of leading a trade deficit of $8.8 billion, the first negative reading in three years. economist said the results were skewed by the timing this year of the week long lunar new year holiday. in japan, the country is poised for his longest run of economic growth in this decade. an upward revision to 1.2%

aren't annualized basis, setting the scene for the fifth straight record growth, the longest since 2006. china's foreign minister has reported a plan to ease tensions between north korea and the u.s.. china is seeking to revive talks that kim's push for power prompts the u.s. to set up missile test in south korea. could suspend its nuclear missile activities in exchange for a halt of the u.s. south korean military exercises. that could help us break out of the security impasse and bring all the interested parties back to the negotiating table. >> 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 on yourg from top terminal. this is bloomberg.

manus: david, thank you very much. pull. real push and the japanese, good numbers from the japanese. what is all the torture about here? juliette: there's not enough ice cream in the market. we saw the yen and u.s. bonds fries, weighing on japan's market today, despite the good gdp revision number. you've had chinese stocks listed in hong kong rising strongly on the back to import data. australia had a pretty flat session as well. as we look at some of the stocks in detail, one in hong kong is an interesting stock. this is a company that had to pay $1.2 billion in fines to the u.s. for violating sanctions to iran, yet investors are still

buying into the stock and taking it in stride. and you mentioned that tweet from donald trump that has weighed on pharma stocks in the region. and telecom doing well in seoul on a note from aquarium saying concern over the missiles from north korea are unlikely to hurt telco stocks. a revision for the fourth quarter, four straight consecutive sessions of growth. if we see if it, it will be the longest one in japanese gdp growth since 2006. you see modest growth coming through and a lot of demand for exports, sluggish demand at home. also better business spending helping out the japanese economy as well. thank you for details on the asian equity session.

theresa may is fighting back after suffering another setback in her battle to begin the u.k. withdrawal from the european union. there was a house of lords brexitleading a second vote if he. chancellor philip hammond presented his annual budget today, that expected to offer in of be you of the economy and say that britain is well-placed to whether those brexit challenges. joining us is the chief economist and managing director, we are all waiting for this upgrade to growth. brexit was not as labored an issue for the economy as we thought. we caught up with colin pickering and he said this doesn't move the dial and the issue for the u.k. is we need investment to solve the productivity issue. >> this is a great way to frame the debate.

it's all about political realities and economic realities. budget will be the last prebudget -- pre-brexit budget. triggered,e 50 is which is still possible within the scope of this might and once the french and german elections are out of the way and negotiations get seriously underway, then we will get some flavor of what brexit actually means for the economy. , there was ascript revision to u.k. productivity growth for the future, which more than offset the budgetary contributions that the u.k. makes to the eu on an annual basis. know from the speech earlier this year, it's no longer the government's

policy. i wonder what will happen in future years rejections. i'm really interested to see what happens. growth over the meter -- medium term of 2% when were expecting less immigration skilled labor. there was a forecast on the government borrowing plans around. last time we had to do some guesswork to where the whole brexit negotiation would take place. do you think they have a few more clues to justify making changes to the underlying assumptions? maybe not any material change. >> at the end of the day it's about the public announcements going forward. it will all probably go into the piggy bank of the chancellor

rather than just be given away. the rainy day fund, we've all got one of those. this is a gilt market four years later. what we have is foreign affairs redeeming, they reduce the gilt holdings by the most in three years. i grant you there was a big redemption in january that light up late into this. if the numbers get better in the u.k. and the fiscal side is getting better, how do you look at the gilt market in the global perspective and for the global ambassador? great question. there is the long-term and short-term view. having a plan b is important. it's all about the budget, which means it's all about supply and the supply side is important in

the short-term. i think this may be as good as it gets. , itk the demand side act becomes clearer once article 50 is triggered. right now we live in this double of political reality that is changing seemingly, but nothing has changed in the economic world. if are converging toward something other than single market membership, the terms will not become clear for quite some time because it's not the economics of the british relationship between the ek -- u.k. and europe, the policies the government has given itself to fit in the movement. and of course the reality is the electric -- electoral process taking place across europe. anna: there have been reports at

-- just a quick mention, there's been very's reports that there are members of the government who have been calling for an early election. u.k.ament, gates at in the she's facing trying to get complex negotiations through parliament. there some argument for holding an election early, and is that factoring into the markets thinking? >> i don't think it is quite there yet. there's a good chance that negotiations with the eu will start a great deal worse than markets expect, and also the sensitivity going forward is the political reality of the eu parliament elections and the

fact that we do have to have a general election. i think the political risks are underpriced but the budget today , this is as good as it gets. thank you very much. this is as good as it gets, you said. we will have more analysis and full coverage of chancellor philip hammond's annual budget from 12:30 p.m. london time. feast for you,a jpmorgan ceo jamie dimon speaks anh francine lacqua with exclusive interview focusing on president trump's first 100 days . that's at 12:45 p.m. u.k. time. anna: that's coming up tomorrow. today we get more data from the united states. half later it's the u.k. annual budget and after that a snapshot of the american jobs market ahead of friday's announcement

on payrolls. manus: china sees its first trade deficit in three years as exports surge while imports slumped. anna: and earnings from a sportswear giant at 11:00 a.m. this morning on bloomberg television. manus: and we are talking earnings and the boost from online shopping with the ceo of deutsche post. this is bloomberg. ♪

anna: welcome back, everybody. this is "bloomberg daybreak:europe." softbank is reportedly set to sell and $8 billion state, according to the financial times it's placing 25% into the 100 billion dollar vision fun. the paper said the decision was to -- the u.k.ht

government and softbank declined to comment. credit agricole is said to be considering a sale of its 31% stake in banker saudi francie. the third-largest bank is speaking to advisers to find buyers which may include members seeking to enter the kingdom. the deal could fetch about $2.4 billion. representatives declined to comment. at your bloomberg business flash. in china, imports into the world's second-biggest economy surged almost 45% in the month of february while experts taken just over 4%. anna: that left a trade deficit of nearly $9 billion, the first trade deficit since 2014, and here's the chart. malcolm scott joins us from hong

kong. it's not quite that simple, is it. give us the details behind the figure. >> there's a lot of messy details here. it's a hard one to read. the key thing to remember is chinese new year, those state fluctuate every year. sometimes in january, sometimes that the wary. last year they were in the middle of february are there about. so the comparisons were skewed by that. this year it's more the end of january and that means we have an apparent year on year surge in imports and again on exports, though less than what economists have been looking for. and who would have thought of trade deficit for china, they just doesn't happen. you have to take all that with a grain of salt. the better way to look at it is put january and february together. you get a picture that shows things are looking good on the export front and that's probably a more accurate reading than looking at the february numbers

in isolation. manus: and still the biggest from that of trade tariffs the united states. wilbur ross last night said in terms of measures that will be announced as soon as we have a proper case. is that the biggest risk? >> that is the big risk. we are all waiting for that shoe to drop. donald trump was vocal through .he campaign so far we have not seen any specifics and maybe we won't, who knows? it could be tomorrow, it could be in some tweet tonight, who knows? for now, the economics is telling us there is a bit of china's exports. global growth seems to be recovering. how sustainable it is is debatable. for now, china's export engines are looking pretty good. combine that with inflation prices going up and things are

not looking too bad at all. anna: malcolm scott joining us from hong kong. as you look at the global trade picture, we are all waiting to hear what donald trump intends with regard to china. there has been some talk as we head toward the g-20 meeting next week, could there be some agreement around currencies or to get to a stable situation on currency? it's a clump -- it's a complex picture. lot tohave thrown in a the conversation here. yes and no. ,here will be a conversation given the political discourse about foreign policy when it comes to the border transaction tax adjustment conversation. it still very much in flux and

that means it is to early for anything to emerge. it could help if the u.s. were indeed to take some unilateral protectionist measures to adjust trade balances. that could impact mobile growth. for now, looking at the growth figures in asia and across the world, the momentum is strong enough, no negative multiplier effect from any trade. more optimistic than our guest we caught up with yesterday. it's a bit suspicious about the health and robustness of the growth story. take a trade deficit in the u.s., the largest since 2012.

trumps say donald ammunition bucket is filling up. the chinese deficit and the trade deficit has widened with that. ironically, it's the narrowest of 2015 with mexico. so is this fuel for the trump fire going into 2020? the fact that the trade policy has become a political .ootball game is worrisome when where and a time of so much uncertainty. manus: you're talking about a soft foundation to recovery. >> cyclically, the health of the global economy is very strong at the moment. structurally the concern is that there is too little for activity and too much private sector and new economies.

the global balance is still pretty much there. it's a concern, but on the other side, this is not the economy of the 19th century. out will beit plays very important as well. anna: we have the ecb meeting this week, so big changes are expected. >> i think the ecb will revise its inflation rationale, not its policy rationale. i've been saying the same thing for the best part of the last year. the growing political means it will remain a topic of conversation. thank you so much for

being with us. anna: we will break down numbers with company ceo frank appel. this is bloomberg. ♪

manus: it's 3:30 in the afternoon. off.r-yen slightly begin his rallying despite the good numbers for the fourth quarter gdp in japan. who wants risk over and ecb budget day? we are getting numbers from the sportswear maker adidas. loss coming in from continuing operations of 9 million euros. growing 20-22%.

above the estimate of 46.6. 2017 that continue operations up , as i mentioned. this is a business that's been benefiting from what we've been talking about. it's all been going well. reebok has been under pressure, trying to scale back that part of the business, they did that in november. the former boss will be speaking to bloomberg television at 11:35 u.k. time. that is very topical. let's talk about

daybreak. you know how to get it on your mobile, on your bloomberg. here is what we are looking at this morning. this is the cover story, the china data that -- the surprise rate deficit, the shortfall. meanwhile imports surged almost 45%. the lunar new year holidays in january most likely help distort the figures. anna: that and the higher import cost for energy. messy data list. the u.k. prime minister fired the government adviser who had led the house of lords revolt to defeat her brexit bill for second time in the north. -- in the lords. dealtially be telling any and stopping may from walking away.

that and the u.k. budget today keeps the u.k. pretty much front of mine. manus: and we focus on an italian story, the world's oldest bank wants to sell bad loans, pretty much to start as soon as the european authorities approve its new business, according to people familiar with the matter. only give them one month to analyze the debt. anna: let's check on the markets with the get everything you need to know. >> i'm scratching my head about what's going on this morning, whole milk is apparently the story. the more interesting aspect is what is happening around the japanese yen. up by .2% this morning. the dollar is fairly flat.

really having an impact on the risk sentiment story. european equities giving a little indication that they will be a little softer this morning. but clearly it's a day were not going to get very aggressive moves from the equity markets. with continued to remain range down right now. it's interesting to see exactly where we go. where do we go from here? jeffrey gundlach talking about that overnight. and what's happening with the german spread? to go evertinues wider. we are at 2.2 it the moment. is thathappening here despite the spread widening, we're not seeing it take the currency with it. at some point that is probably going to happen, so pay attention to the spread.

the euro dollar trade probably more correlated with the tenure spread. we've been waiting to see what happens with the equities, are going to get some sort of correction? that's been the story over the last few days. generally you get a snap back a little lower. that can be a perfectly healthy thing to happen. trend line,this that is november and the election there. that, somention to interesting small little things happening that may give us a sense of where these markets go from here. manus: let's talk about deutsche post. earnings jumped 16%. ceo frank appel joining us. thanks so much for joining us. shareholders will be happy, they are getting a better dividend.

well done. we were looking at the top line and we talked about your visibility. the companies six-year forecast until 2020. the question from us is, how have you that level of visibility with all the discussion about trade, trade wars, border taxes. how are you so assured of your vision through 2020, sir? on thate already journey since 2014 and we are still confident we can make that target. best visibility is your own congress and your own strategy. the long-term will be based on your long-term strategy. , we made a confident very solid step last year in that direction. you're right, number -- nobody

knows what will happen in the next 12 months. the company is better equipped if you have a long-term strategy and not be so worried about the short-term volatility. anna: that raises lots of questions about the new president in the u.s. just a bit of housekeeping around your forecast. what do you expect as the growth rate for the various parts of your business? give us some guidance about those parts of the business. >> we have not change that. overall gothe volume slightly lower than gdp, which we expect slightly stronger than last year. tdi will slightly grow faster than the worldwide gdp year --

gdp. supply chain will grow faster than gdp because there's a continuous trend on outsourcing. pretty well and e-commerce we expect a continuation of what we've got or possible volume growth in germany. we see a lot of opportunities in germany where we just expanded our foot rent significantly last year. overall it is different by sector, but if you take arounding together, it's worldwide gdp growth or slightly better. manus: you mentioned the expansion for europe. this is going to be an organic plan? it you, what works best, is organic and controlled and built from the ground up, or he would you be interesting in doing and other deal? and what it be as big as the u.k. deal you did last year?

quick there is no need to do something like the u.k. deal in europe so the continuation will be significantly more organic. there is no simple answer. it depends on the local situation and the ability to see a proper target. we will make that decision based on markets. rightk we found the recipe for success. return to the subject of global trade and what president trump means for global trade? your business is very tied in with that. he talks about putting america first. as that make it difficult for your business to do business in the united states? knows what will actually happen. we have done studies for a couple of users where we looked into the connectedness of

countries. we find that the best connected countries are doing the best. that's what we believe in. protectionism is not good advice for anybody. there is not a single country that has succeeded with protectionism. benefitedlong list of from that, and i'm confident that we will see a lot of activity, but at the end of the day, we will see a continuation of localization are free trade. anna: so you say protectionism doesn't help. what are you planning for the possibility of trade barriers being imposed by the united states? >> we are following our customers, and we have a global platform, which makes us resilient against any changes. protectionism leads to more complexity.

complexity is good for service providers who provide great quality. customers will turn to us and say, how do we deal with more duties are tariff barriers or whatever? on the short-term it's helpful if you increase complexity. in the long-term, i'm confident we will see a continuation of free trade. manus: try to give as a global insight into asia and china. surging upad imports by 45%. back in growth trajectory. are these numbers real? is china growing that aggressively in terms of imports? gibberish your outlook for that particular region. outlook for that particular region. >> we've seen in the fourth quarter a stronger growth rate in asia than in the previous quarter. that is already a long-term early to say.o

it looks like china is back on trading more than it has done in the first record as of last year, and that's good. as i said before, it's so unpredictable what will happen. therefore the best solution is you are a diversified in different product, like we are. second, you have to have a global footprint, as we do. challenges,the there is a tremendous premium market coming, particular from the u.k.. if we did not have such a strong provision, we would not of capture that. is there a stronger growth that of japan, that's great for us, or from china. market, soin this this is the right recipe, to have a global footprint across the whole supply chain, and then you will benefit in all

divisions. anna: thank you so much for your time, frank. fascinating to contrast what he sees as positive momentum from increased protectionism because it drives up complexity where in the long-term you don't want to see protectionism. is the keyectivity to success. let's talk about gold and connect it to the markets. money has been moving out of the u.k.. yousef joins us now with his chart. good to see you this morning. yousef: i know you would hold onto to your gold bars, but i will tell you what etf investors have been doing in europe. it's not enough to keep them holding onto the metal. this chart tells the story in terms of the capital that's

moving out of that etf. notice i've highlighted the sessions of outflow, still up about percent. let's go back to the mid-december area, and were also some outflows right there. the biggest one out there, their holdings were unchanged as of march 7. in terms of how they forecast are holding up, the median forecast for the first quarter, 1205.e looking at for the fourth quarter it increases to 1230 an ounce. an interesting picture of

yousef. another east coast center for you coming up -- interview coming up you. that's at 1:45 p.m. u.k. time. anna: remember you can watch the show using the tv function. better than that you get all the stuff that goes down the side. all of that there for you. you can contact the producers of the show using the button at the bottom of the screen. up, and pole position, we judge the strength of the banks of europe. we will speak to a ceo and the largest asset manager. find out about her transatlantic boost from president trump's decision to drive or dollars into the fed. manus: turning its first profit

since 2007, we speak to an irish minister to see of dublin positions itself as the new london, post-brexit. this is bloomberg. ♪

anna: welcome back. 6:49 here in london. futures suggest we will be a little bit weaker at the start of trade. president trump took to twitter once again. we will leave that story to the later conversation. softbank is reportedly set to sell and $8 billion take, according to the financial times. 25% of the uk's biggest technology company into the vision fund. the paper says the decision was

made as it looks to me to theraising goal and secure backing of an investment group. agricole is said to be considering a sale of its 31% stake in saudi francie, according to people familiar with the matter. the bank is seeking to advise buyers which may include international and regional lender seeking to enter the kingdom. representatives for credit agricole and saudi francie desai -- to climb to comment. an accelerated process of 28 billion euros of bad loans. the struggling lender wants to start the sale as soon as european authorities approved its proposal. they said the bank plans to offer all the loans in a single block and may sell it for less value.% of its

a monte paschi representative declined to comment. manus: thank you very much. insurereurope's largest , when it completes a takeover, the ceo joins us now to talk strategy and all things eastern european. welcome to the show, good to have you with us. many people said politically this makes sense, but this is not the bank assurer's role. many have tried and perhaps not been so successful. what are you going to do in the bank assurance deal that is going to win for you? all, i think the deal justifies itself by its financial merits. we are the largest asset manager with the interest rate that it's on the limit to what we can make

on the asset management. every second company in europe has some relationship with this bank. it's been very profitable, paying maximum dividends. buying the polish part of pioneer. already launched our internal project and we think there is potential. we are selling our products through other banking channels and some of them work very well. anna: you talk about the relationships it has with companies in poland and abroad. how do you intend to leverage those relationships? >> we do not anticipate a major

change in strategy. very respected and we've cap cost under control. we intend to invest more in technology and innovation is high on our agenda. we think poland should have an growingnt bank in outside of the country. for me, i can only say we could become [indiscernible] a leading franchise in investment banking. the fact that there will be a new owner or controlling shareholder once the deal closes , hopefully between may and june, will help us target new clients apart from the existing clientele. manus: you will be a tough task master. talk about wealth management.

where does wealth management fit into the strategy? >> it's part of the asset management strategy. are respected on the asset management style -- side. to launch be able direct through the internet. and with the government's plan to increase savings, we see big potential and up selling particular clients with savings products. anna: let me ask about m&a. what are your plans? and with regard to international, because you have done all the m&a you can do in:. -- in poland.

have presence in estonia and ukraine, but it is a smaller market. generate upwant to from% of bottom line overseas, so outside of poland. we don't rule out international acquisitions. think the business is also changing, i've seen successful ventures in asia done by our peers. something we could consider, but macau management board if they want to expand in , but we will work on the strategy. manus: you've already talked about the weakness of sterling, which is one of the drivers. do you see the strength continuing?

we have a rate meeting in your own country, expected to hold rates at 1.5%. are you expecting rates to remain low through the end of the year? onare really cannot comment decisions of the central bank, but i think the economy has not weakened. currency andstrong we don't expect any increases in rates for this year. sticking to your plans for the dividend, paying out 50% of net? >> we will be announcing our results next week. i cannot talk too much about our results. andsting in innovation internal growth is very important for us. anna: thank you for joining us this morning.

manus: coming up, and unexpected slump. that was yesterday's data, what about today? angela merkel's cause for concern is beyond politics. this is bloomberg. ♪

manus: another brexit low. the house of lords reroute theresa may's draft law last night trying to give parliament a veto on the terms of brexit. the team devised to undo the changes. anna: painting and upbeat picture. the exchequer reveals his annual budget. britain is well placed to whether the challenges of brexit. manus: china's imports top exports for the first time since 214. chinese shares climb in hong kong.

welcome to daybreak europe, our flagship morning show right here in the city of london. anna: a warm welcome. it has gone 7:00 in london. let's get to some data from the german economy right now. merry danceon a yesterday. let's see what today's holds. we have german industrial output rising by 2.8% in january. it is an estimate of 2.7%. that looks pretty much in light ministry,ead of the excepting continued industrial growth. this rebound in industrial output is being led i a jump in investment. we talked about in case you are thinking, we did this yesterday, factory orders and we saw yesterday that number dropped the most in eight years. there is a mixed picture coming through in terms of the german data. tuesday's report showed factory orders plunged since 2009,

markedly below average demand for big ticket items. the bundesbank predicted [inaudible] the statistics released, we got from germany yesterday did stick to its more positive outlook. confirmed german industrial out look up by 2.8% in january a touch ahead of the 2.7% estimate. manus: we're going to talk to the ceo very shortly from that company. adjusted revenue for the full .82 billion pounds. the market has penciled in 6.8 one billion pounds. we had that conversation with ashley manza. let's talk to about markets. it is quite a day. you have the rejection of -- from theand her house of lords and a shift off,

trump rocked the market when he talked about pharmaceutical pricing. that shook the market. you're upset for slightly lower opening. some pretty flat, hiding interesting to virgins is. the yen was stronger in the early part of the trade create investors reassessing how intainable the rally is global equities. $71 trillion global equities empire and we see no trading volumes. n despite the gdp revision. the hang seng rising up by .4 of 1%. chinese trading and hong kong, stronger and imports surging. there is a lot of one offs in that number and a lot of it has to do with the timing of lunar new year. byus: we have slipped lower .8 of 1%. that is the longest run of declines since the election and

since that's weird down by 1.7%. that tweet which came out late yesterday, a new system where there will be competition in the drug industry. tweet, that is a list you do not want to be on. anna: four minutes past seven in london. let's get to the bloomberg first word news with juliette saly. juliette: thank you. in the u.s., it it has emerged that president donald trump met last april with the russian ambassador at the center of a para controversies over engagement between trump allies and the kremlin. that is despite claims that he had "zero involvement" with their -- russian officials. and revelations last week that at least five members of his beforen team had compact -- contact before trump took office. he threw his weight behind a

house republican plan to replace obamacare. conservativess mounted their savage attack on the bill with one republican declaring it did on arrival in the senate. trump held a meeting yesterday with the house republican vote counting team to rally them behind the bill setting often unexpectedly close alliance between the president and house speaker paul ryan. we will be speaking to wilbur ross at 12:30 p.m. u.k. time. --na's import scourge posting the biggest gain in two years. imports jumped while exports rose 4.2% in january. that left the trade deficit of eight when it billion dollars. the first negative rating in three years. economist said the results were skewed by the weeklong lunar new year holiday. japan is poised for its longest run of economic growth in at decade. an output revision of gdp to

1.2% on an annualized basis sets the theme for a fifth straight time of growth. the longest streak of expansion since the six quarters of gains in 2006. the u.k. chancellor is expected to offer an up the view of the british economy when he delivers his annual budget later. philip hammond will say that country as well placed to whether the challenges of brexit. he pledges to take the decisions needed to prosper outside the european union. will bring you full coverage of philip hammond's budget from 12:30 p.m. london time. 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 . a little bit of a mixed session in asia. anna mentioned every thin trading volumes, not a lot happening. we did have that stronger yen down. chinese stocks in hong kong

lifting on that very solid import data we saw. the hang seng up by .41%. us trillion sharemarket fairly steady and the close down by .2 of 1%. stock movers in the region, listing in hong kong for the h-shares rallying despite the fine it has to pay for -- to the u.s. government for breaking iran sanctions. thatalling in japan on trump tweet, hitting a lot of those former players in the region. on -- telecon [inaudible] at the gdp data in terms of seeing it on a graph, you can see those four quarters of modest growth coming through. we see that it will be the strongest run since six quarters

in 2006. you can say we have not seen a strong amount of tdp -- gdp. quarter 1,ack to 2002. we are seeing a little bit more upside. this is as we see strong export data despite sluggish demand in japan and an uptick in business spending across the country. manus and anna. manus: thank you very much. the latest on the markets. let's talk about [indiscernible] a touch of of the estimates, the security firm at 5.82%. us now.joins great to see you this morning. well done on the numbers. i look at your statement, g4 set out its strategic plan to transform the company. it remains much to do to get our full potential. what is the it is thing in your

to do list 2017? good morning. good morning. thank you. as you say, today marks the third anniversary since we set out the translation plan area at the heart of that plan is organic growth. we continue to see strong demand for security services around the s is fortunate to have global market positions from which we can address that man. the single important thing is to continue to invest in product and service development. we have brought tremendous amounts of new innovation technology systems into our custom offering over the past three years. that is reflected in our results with revenues from technology and systems up by more than 30%. that alongside our productivity program is the most important

priority. anna: good morning to you. i wanted to ask about your expectations for selling product, providing services to the u.k. government. considering negative headlines that your business is -- has created and also the brexit times in which we live. what does that mean for your relationship with the u.k. government and how much they will spend for companies like yours? anst: the u.k. government is important customer. it is important to put it into context. central government revenues in 5% ofk. represent around our global revenues. we are highly diversified numbers and as our show, our business globally is growing faster than our business in the u.k. having said that, the u.k. government has been, is today, and will remain i hope an

important customer in the future. we do not yet know what brexit means for the government's procurement program. we have the skills, the capability to respond when the government comes forward with its procurement program. manus: brexit means brexit. i have seen it on the tv. that is what the prime minister keeps telling me. let's talk about another leader, mr. donald trump. he wants to spend $54 billion in security. you must be salivating. this must be a moment. it is getting a bigger part of your business. what is the potential trickle-down effect, a $54 billion spend that a ceo like you sees? guest: the c -- the specifics are not yet available. the new administration in the u.s. is talking about business friendly policies, talking about investing in infrastructure, investing in security. market, is our biggest

the biggest security market in the world and it is the single biggest region. we have a strong franchise their and our business has been growing strongly. in more terms as when the specific policies come out, if those are consistent with the signals we have been seeing from the new administration, i think it will be positive for our business. anna: that is the positive interpretation. a more negative one might be that with an america first policy there is more difficult -- it is more difficult for a business with those kinds of contracts in the united states. is that something that concerns you? guest: no, it isn't. we employ 50,000 security professionals in the u.s. most of our services are developed and delivered in the u.s. i think we are strongly positioned to bid for and win new business in the u.s. is we the other dynamic are coming up to a bit of eta in

the united states of america friday. talking about unemployment and it will talk about wages. you have even made a number, 50,000 people that you employ. have you seen tightness in the labor market, is it hard to hire people, are you finding it difficult to find the right people, are wages rising westmark fill in the great part of the federal reserve problem. guest: there's no doubt that the labor market has tightened in the u.s. we have long taken a position of offering better than average benefits to our employees because we offer internal premium service to our customers. you're absolutely right. at the moment, we have a strong pipeline of new business in the u.s. and one of our biggest challenges is recruiting, screening, training, and deploying new staff to fill those opportunities or to meet those opportunities as we bring

them through the pipeline. so that is something that we in the whole industry will have to contend with. for yournk you so much time. good to have you on the program. s ceo joining us from the london stock exchange. next on the program. manus: pharmaceuticals catch a cold. how the latest twitter outburst sent drug stocks into basically slump. ump. sickly sl this is bloomberg. ♪

anna: welcome back. this is number daybreak europe. sky and berlin. 7:17 a.m. in london. little weaker at the start of the european equity trade at least on the dax futures. that moves for the u.s. future as well. futures weaker there. juliette: thank you.

accelerated sale ofcess of 20 billion euros bad loans. the struggling lender wants to start the sale as soon as european authorities approve its new business proposal. the bank plans to offer although loans in a single block and may sell it for less than 25% of its -- of its value. toepresentative declined comment. snap shares have fallen for a second day in new york trading. the owner of the platform closed almost 10% lower as concerns over its growth trajectory weight on investors minds. the loss of declines almost 30%. and whittled the market value to below 25 billion dollars. -- $25 billion. ferrari has launch this be as production car in its history and is sold out. and cost more than $300,000

comes with a b12 engine which it tos -- which gets from zero 100 in as little as 2.9 seconds. it must be fast. manus: thank you. president trump jumped back into the pricing debate. this is what he said. anna: he said he is working on a new system where there will be competition in the drug industry. pricing for the american people will come way down. for more, let's ring in art -- director of research. we saw the market response in the session in the united states. good morning to you. we saw some response. what are your thoughts on the message he is getting across here, it is not new, is it? guest: it is not new. it is a tweet so there is not a lot of meat on the bone.

operating word is competition. as we have been saying all along from the republican perspective we think that the appetite for drug price controlled by the government is low. as it has ever been. one way of trying to deal with this which is what we have been saying is to bring in faster drug approvals, hopefully without jeopardizing safety. so that you get price competition naturally in the market. that is one way. the other way is to put -- approved generics faster. anna: this is a way of bringing competition in a republican way rather than a democratic way. manus: we have connected to -- nipped into your pages. of u.s.the valuations pharma stocks and they have had a cracking run.

yesterday was a bit of a setback. orange and is in the the stoxx 600 is in the blue and pharma coming up behind. where are the valuations? guest: one of the things that we saw last night as you rightly said, share prices fell a little harder at the beginning. they moderated more after they talked to the hhs secretary. he put a better feel on the tweet. let's not forget that pharma stocks has had -- have had them -- a stronger run. u.s. sector -- y are outperforming. guest: the sector had run so much that it had come so close to analyst price targets, it was only shy of the high that we hit in march 2015. anna: the tweet is only part of the story. thanks for joining us.

set with us here in london. 2016: full-year profit for came out 159 million euros. the company says "they are confident of the future." joining us now from dublin is the ceo. thank you for joining us this morning. your earnings, 159 million, that is an improvement. you are a mortgage-based lender in a fairly tight market. how do you grow the business through 2017 and deion? welcome to the show. guest: good morning. currency is an interesting one. we capitalize by the state, heavy lossmaking for the last three years. ipo, ieveraging program,

am confident we can grow the business because management has been spent on transformation. there is a lot of energy in the organization, a lot of focus. ireland itself is growing. we can grow with it. strong franchise, large customer base. a really good history. we are confident about the future for the bank. anna: the focus is on growth and the commercial agenda, does that set the stage for the government reducing your business? it is 70% owned by the irish state still. 75%.: i cannot comment on the minister of finance his views on when they will sell down the state. my job is to make the business is valuable as a possibly can and increasingly attractive to the private market. 25% free flow, we did

an ipo in 2014. the stock is known in the market. i think the commercial agenda will make it more attractive. not for me to say about when that might happen. but really confident about the intrinsic value of the business growing over time. manus: i am curious when you comment but you are running a bank and there is a sweet spot for financials. would you agree, are you going to win market share to grow the business from aib from bank of ireland, is that the strategy in the mortgage market, are you going to become more aggressive on pricing? guest: there's a natural market share i think. i think you can assume i would chase it. i am not chasing volume for the sake of volume because we saw what happened when that was done back in the celtic target days. first quality is my

objective as a ceo. i have a team -- that can put together some compelling propositions. in terms of aib, i would say that the ipo will be great for ireland and great for the irish banking market. from my perspective i wish the team every success in getting that way. update us on the nonperforming loans story. that is part of your focus from what you said. what are you doing to get that down, would you concede selling off part of that? guest: history is important here. when i took over the job, we had a huge stock of nonperforming loans. the troika and the government agreed that long-term forbearance was the strategy. lasting four to five years. we built an asset management unit and put in place many thousands of long-term treatments for our customers.

bases isof the npl treated. with the time that has elapsed and quite rightly with management and the regulator asking around, the stock of npl are going to have to consider all options. my guiding principle is to --ure that we do not delete dilute capital. i will consider all options whether that is holding some, selling some of them, putting them into some sort of special purpose vehicle. i'm not sure yet. in answer to your question we will consider the next strategy in 2017. manus: there are a few italian lenders selling loans. it is becoming a crowded space. think of for joining us this morning. live from dublin. anna: things that are coming up of the next couple of days. jamie dimon speaks with francine lacqua tomorrow in an exclusive

interview. it will focus on resident trump and global banking at 12:45 p.m. u.k. time tomorrow. this is bloomberg. ♪

♪ guy: good morning, welcome. you're watching bloomberg markets. this is the european open. the first cash trade of the session coming up shortly. what are we watching is wednesday morning? aiming to deliver a budget to bolster the british economy ahead of what he describes as the economic roller coaster. we will speak to an analyst that sees another big leg lower for the pound. promise the moon but give [inaudible] imports surge while imports --