>> good morning from the city of london. >> this is daybreak and these are top stories. >> making the economy great again is supposed to be a center part of the state of the union. >> jeremy corbyn rules out nothing on britain leaving the european union, other than a second referendum. >> the agreement to purchase software and talks to sell a major stake of the business to

blackstone and we speak to a ceo first. >> it is 6:00 here and we have breaking numbers from phillips and we will fill in these details with them delivering revenue and the markets have and theyin sales expect the market to grow by with a% on the basis flatter this and there is a lot of upset with the

reorganization and that presents an opportunity for phillips. there is a man who has the himers and we will speak to in 15 minutes on the numbers and thehina was as giving in third quarter. andet's get to the numbers the flagship moment. revenues andotal the principles with the latest butmates, if you like, looking backwards over the past is a touch below

and the same could be said for with 6.81 andmber we have had a lot of changes in accounting practices and businesses announced and they thosehey have purchased in this is a conversation you will not want to miss later with the ceo with the bloomberg team. selloff in asia and we have strong levels in the the lofty levels and will anything disappoint?

the last 24dates hours khuram butt but it reflects what we see in the bond marketsand currency with the dollar up again today seeing equity markets have a host ofwe data and trump and the state of the union later. says that is not driving the dollar. have you been getting swatch? you obviously have been and this

estimates and they will take that anywhere in the 12.7% and the outlook figure has the theing positive and we have andry side doing well there and thehave phillips the canadianith international trade possible and the important discussion around brexit. .et's get you the news

>> e-house of representatives community -- committee has decided to release republican memos and conservative congressional republican said the fbi and the justice department are pursuing an investigation into ties to the kremlin under false pretenses. >> we have crossed a regrettable toe where they voted declassify and compromise sources and methods. >> there has been a list of russian oligarchs released and oleg derapaska

and others. others fromsuade doing business with them. washington says they are looking for a breakthrough and underscored fragility after canada and mexico came through with fresh ideas. he told reporters that he hopes to make progress with the three mexico do to meet in next month. of executives were told they would not rule out anything. representing the u.k. were five people, including the confederation of the british industry. addedeland minister has

her voice to a chorus of policy makers. she says she will look into a panel commission, including another current see. the membership is a bigger political question than a new currency and my personal the you is that we should continue. >> global news: 24 hours a day. certainly, this rally is coming moneyerybody wonders when will get taken off of the table and the hang seng is under

pressure and we have seen a close daily drop with a in technologyle stocks today. biggest, in terms constructionnd the in tokyo is doing well, after lifting the forecast and getting aided by stronger-than-expected demand. are allegations of sexual assault by the chairman and the terminal shows that you should look at the overall picture and they are poised for growth.

you.ank let's turn our attention to highlighting trade policy, according to industry sources. expected to make additional trade announcements. >> let's go to hong kong. in terms of expectations from storyesident, there is a as to whether it will be trump from doubt posts tells me about infrastructure spending and growing the economy. they hope that it is. close tone and thesomber

infrastructure. have a bipartisan tone to forwardh plans to move and the state in the union addressas just a joint to congress and was a much darker tone. investors hope that this is more hopeful and we will see. infrastructure spending was promised on the campaign trail and he is expected to propose and infrastructure package and .alk about spending

>> this is something people are watching for and there wasn't a great deal around geopolitics. what are we expecting? a lot has been done and this be theis supposed to laundry list of things with some talk of america first and he might take a victory lap and talk about the regulations to roll back, particularly on the banking sector and we will hear a lot about that, but it is trump and we could see surprises

after. investigation is never far from the news. was a bit of there interruption from trump. >> yes. according to sources, he was over thethe airplane fact that the committee would not release information that look bad for the department, in terms of the probe and the handling of the probe, but the house is now anding about releasing that there is controversy in washington with democrats angry about that. the president thought they would

not release it and were angry. much.nk you very things to watch out for in the united states and you can watch trump tonight. and is almost one day away there is plenty of time to talk about banking and regulation. will the trump dobb's man dominates? a global

afternoon:17 in the and this is a bit of a shock to everybody. the s&p had the biggest drop since late autumn. this is what the talk is in the the market is down and it is a little bit jittery. they are laser focused. >> selling a stake in the andncial and risk business

it is $6.1 billion in annual talks for more than dollars.on -- million bloomberg competes with thomson reuters. an agreement to bolster information and the largest software developer has generated sales of 6.8 billion euros in line with analyst expectations. we will be joined for the first interview of the day at 7:30, u.k. time. potential first quarter shortfall of $2.4 billion in the conglomerate and their ability to repay debt.

the representatives did not respond to a request for comment. that is your business watch. >> thank you for the latest on the markets there. ceo speakinghilips to us and it is good to see you. adjustedh quarter was and they don't look as high as , or worthyes analysts off the mark? there is a quarter with 5% revenue growth and 140 basis

with thed i am happy growth that was driven by had newt and we innovations coming and it is good for the future. time, you said that you. was a standout for still get the gold star? isn't a word i would china continues to notorm strongly and it is

surprising, in my book, because china needs to expand and consumers are involved in their own health and that is good for phillips. in europe and america and philips is performing across the globe and i think that it has to do with leader ande a focused with putting research and development to advanced technologies and drive better productivity with our artificial intelligence platform getting and you hear that from providers that are keen to deepen a relationship to benefit from innovations to drive

patient outcomes and productivities and we were able contract as a testimony of the interest. fundsyou plan on using and this is a topic for your business, which has reoriented around equipment. -- equipment? ones that had large include imaging equipment and this can provide breakthroughs and that is great. are prudent and we and hope to get a good return.

we are organic growth and we thispotential to boost considerable commitment and we have almost spent the revenue with the organic investment happy withand i am the approval for our business being poised for rapid growth in practice werelog people look through microscopes and we think that the computational pathology can help and our consumer businesses we get children to

brush better and this is exciting with health care benefiting from innovations. davos.oe ntioned did you have a conversation with trump and will you invest with america? and, with regards deeplyh america, it is have a large manufacturing footprint there. >> are you tempted to invest more? >> i hear you. not directly to the message and

we have taken new head quarters and we want to be close to and that is not substantially changing that footprint with a balanced approach in europe and china and rightnd i think that is a approach, but it is important to the inclusive and have a balanced approach phillips has always done that and, if you action, i course of think you believe in euro and capabilities to innovate and grow. >> thank you for joining us. coming up in the program.

we have all things french. this is bloomberg.

>> good morning. it is bloomberg daybreak here. the dollar is against the yen and on the move as a whole and that appears to be what we are generally seen coming through. andhis is the french growth that matches median estimates with a combination of proof with another rates straight quarter of growth and we have seen that drop a little

starsth all of the aligning and monetary and fiscal and there isng gdp a major planned economy reform in the spring and a loosening of restrictions for plans for employees. estimate was validating this. out the selloff in asia. tough selloff and you can see this is down in

the index is down in the session with the treasury yield reverberating and that takes me to the next chart. againyields advancing here and we look at the relative suggestsindex and it oversold and the clearwill say the path is and others will say the fundamentals are strong and it will come down again and we have seen the dollar track and the

yields and this is the second day. andfully, that will change andcan see a three-year low this is nothing to get too excited about. i know you've seen this chart elsewhere. steam and aing some little bit of the stronger dollar with the decline for a second day. >> thank you very much. to the annual conference. good morning. >> good morning. by theased to be joined

ceo here and u.s. stocks had and the endst drop of the bond market? and i don'think so think it is the beginning of volatility and this should be interpreted as a signal of a u-turn. looks do you think this will continue? >> yes. we see this significantly and it was -- what are the challenges you see?

>> the french economy is doing well and the rest of the eurozone is doing well because europe is back with confidence the confidence in the past 10 years. there is fiscal consolidation some she reforms that have been delayed are being implemented and there is work to be done with fiscal contributions. efficient isent is

what you are saying? >> he clearly has been left and whatssful, but you look efficit has been implemented with the changes in the labor code and taxes for households and companies and massive changes in the way professional learning is going to be implemented and i think he has created a new momentum and it transforms production of goods and services. >> the irish stock exchange. and there is an advantage in the world after the brexit. >> this is a great company and a global leader with bond listing

and the irish economy is booming . so, we want to do the yields and whoever wants to has to beal services willlished because they fundamentally change and it is clear that dublin is one of the few places in europe, like , that had to relocate themselves. >> who is winning currently? >> they are fundamentally proximity in terms of

futuresr art different with different businesses that have to be relocated in europe. >> we talk about crypto currency. part ofexchanges take the crypto currency situation? should we create a market? the have nothing to do with the economy or bitcoin and we that all assets are currency'.

like a diamond or a pokémon card , it can capture value, but it that is great. asset, this isng not the mandate for the place. this is part of the new game in town. you been there so far? is a focus and there is a minor loophole and --

this is an issue where it is they had the reality fundamentally changing the way of things for the better and the regulators and they are more those.e ready for >> thank you very much. >> that was fascinating on bitcoin. we were joined from paris there.

let's talk about the bank of japan. there is this. of a global fx code. the bank of japan has reviewed the contents and there is a set of principles generally andgnized with the code their reaffirming the commitment and say they are in compliance with it. , the treasuryin they are notid free float.from the there is global leaders pushing

for the clarity. let's talk about mergers and acquisitions with the largest software developer representing enterprise values. dell, the chairman, says he is looking to combine these companies under one roof on the newsplunging of a reverse merger. good to see you this morning. let's kick it off with the story of acquisitions in the company and this must be music to donald trump. acquisitions and

dinner was expected. that trumphave heard was meeting with business leaders and it was announced that it was quite peculiar was ae the project specialized in customer service management and that is the kind of business salesant to grow with the shrinking us licenses and they want to grow that.

what impact will that have on the tech sector? merger and a reverse you may remember the company as theref a bigger deal and were plans for a reverse merger and we saw stocks plunge on the dell anduse of michael because how that played out and that will be one of the biggest this year. >> thank you so much.

that the ceo will join us at 7:30, u.k. time. >> coming up, and in full discussion with business groups has jeremy corbyn saying there'll be nothing other than a second referendum. firstald trump gives is state of the union address. discussedture will be a little village. this is bloomberg.

at futures onking and theeen and the snp state of the union and will it

davos trump who shows up this evening. voicesl hear a host of could out today and i literally right that script. by.s go to juliet standing >> thomson reuters is in talks to sell a stake in a business that accounted for half of the salese and offered annual with reuters reporting that the private equity firm is in talks to buy part of the business. bloomberg company of competes with thomson reuters.

an agreement for an enterprise customerbolster the relations and they have generated sales in line with analyst expectations. william mcdermott will join us for his first interview of the day. creditors have been told there is a shortfall in the chinese conglomerate and their ability to repay debt. they briefed provincial officials last week and representatives would not respond to a request for comment. named frontrunners dimon, who says he plans to stay at the top job

for five more years. that is your bloomberg business flash. europe andrn to jeremy corbyn said that the party would rule out nothing other than a second referendum. according to one in attendance, the concern was have the nextwill several minutes kicking off with brexit. i suppose that the first theyion is politics and are engaging in business and

nowies and where is that and how do you look at the political risk? get you unlikely to they kindis year and of understand that will not suit them and they need to get a final deal to go to voters and say they have the deal and it is fantastic and the election would be for the taking. theerms of ruling out second brexit referendum, you look at how poorly favorability is, the labour party is not andg as well as it should

you would imagine they would after an the support with voters has stayed stable be it means that labor would in the coalition and you have the coalition would jeremy corbyn. >> there aren't many liberal democrats, but you can see the things are divided. growthows the real gdp have the best growth and everybody sort of does the back story here. thisis your assessment of

scenario and the impact it will have? >> you go with the free trade agreements and it is an economic services thatcial this rules take and out a deal everyone was talking about. this other deal won't happen been you eatis has and you have had details being released for cabinet ministers and it shows that the economic suppressed and the market is pricing where we are and it is trickier. >> what about the current see

value? there has been a move and you position andlong they are rising. this? hold your nerves in what next? a lot of people arguing against us and there is a big short we saw and there is andlit with the hedge funds real money accounts and the growth chart you showed shows more growth and that is a good reason to be short on the looking for we are

one for eight by the year-end. we have the market crisis as a positive and there was some sort of deal secured that pretty much looks like the european union andthat is another positive forink this is the thing next year. >> you think february will give us another clue on a rate hike. >> you remember the strong vigilance? in is not enough and they could have the hike. >> the sterling is carney's best

friend. about trump and the state of the union and who will show up. >> we have a good questions. this is bloomberg.

manus: good morning, from bloomberg's new european headquarters in the city of london. i manus cranny. anna: and i am anna edwards. manus: making economy great again. in the state of the union address, president trump is expected to account his compliments and unveil action over trade. an informal discussion, jeremy corbyn wools nothing out on her to meeting the e.u. except his second referendum. sap agrees to buy a software company and thompson. reuters in talks to sell a major sake of its business to blackstone. we speak to the sap ceo.

7:00 a.m. in london. 8:00 a.m. in europe. tooe the u.s. faltered, so did the european markets. the s&p futures. london, paris, frankfurt, all dropped. tech job in asia. all of this to do with a report that nikkei -- a reduction in production of iphones. if that's true, tech could well be under pressure in the european trading station. state of the union today, the fed began 30 bank-day meeting -- the fed begins their two-day meeting. volatility rising across the markets. this is how it looks. volatility rising. the bond market volatility has

climbed by 20% this year. the stock market volatility up by 25% this year. .eep an eye on the metals iron or dropped. there is a strike in columbia for them. these markets just taking a snap off the top -- a snip off the top. ana: they are worsening little bit since the last hour. the asian equity session down by 1.2%. a little bit of profit taking perhaps, coming off stunningly high numbers. year in start to a recent history perhaps. is this to do with what's happening in currency markets or bond markets perhaps? or is this just a reassessment about whether expectations can really -- whether result can live up to expectations? this is the negativity we are

seeing in asia. the dollar spot in next, up once again. this is a bit of a turnaround, isn't it? today, we are stronger on the dollar, a turnaround from last vos. in dalla we see movement in the u.s. 10 year. the first time since april 2014 we have seen that. out.ve a lot of data due is the yield on the 10 year government bonds. let's have a look at the bond markets. what's happening to the bond market? as the dollar really moving on the back of yields? that's a question for our guest, jordan rogers. yields are rising. $441 billion minas supply. that is according to the treasury. what is your drop dead date? the end of march, according to jeffries, when you have really

got to have the debt ceiling packed up. billion is expected to come in the first quarter. jeffries expects a rapid resolution on the debt ceiling. 2.71% is where the risk lies in the treasury market. again, stronger gdp numbers. you want a haven. you are running into resistance, of course, on the 10 year of government bonds. just shy of .7%. many people have talked about 1% in terms of the market. all about the ecb and more rhetoric about coming to the end. what is the end of qe? what is the timing? anna: a lot of talk about in 2018 in terms of the monetary policy conversation and trade as well. we are going to be joined by canada's international trade master. he joins us on the debris program. get a bloomberg first word

news update. here's juliette saly. u.s., the in the house of representatives committee has sought clearance from the white house. it alleges bias and abusive government surveillance of people surrounding president trump. conservative congressional republicans say the fbi and justice department pursued the investigation of possible kremlin ties to the trump administration under false pretenses. we have crossed a deeply regrettable mine in this in thise -- line committee where there was a vote to politicize the declassification of intelligence and potentially compromise sources and methods. juliette: they u.s. treasury has released a list of oligarchs with regard to putin. 96 oligarchs. while those names will not automatically face any putative measures such as an asset

mayze, their inclusion prevent banks from doing business with them. washington says it's pushing for a breakthrough on its catchiest proposals within a month, underscoring the fragility of the new mood of optimism an aftr canada and mexico came forward. reportershthizer told that he is hoping to make progress before the next round of negotiations. the leader of the u.k. has told a handful of business executives that he would rule nothing out on brexit except a second referendum. jeremy corbyn held a private meeting that lasted about one hour. representing the u.k. were biggest lobbies including the confederation of british industry. maragos finance minister says the north african country benefited from -- but

thinks there will be no need to renew its when expires in july. he told bloomberg morocco is constantly ready to tap the international bond market that will need do so when the time is right. >> it is possible this year. it's possible to make it next year. we make trade-offs in terms of our debt. we want to manage our debts by reducing the risks of foreign exchange and other risks. there are of course several solutions. one of which is the opportunity to tap the bond markets. juliette: global news, 24 hours a day, powered by more than 2700 journalists in more than 120 countries. you can find more stories on the bloomberg at top . there is a lot of red on the world map when you look at asia today. down by .9%. a switch out of those material players. weakness in china heading into

the close in hong kong. chinese stocks listed in hong kong. there has been a lot of weakness coming through in the tech players, which has affected the andx and the kospi in korea japan, closing down the session by 1.4%. a lot of analysts and economists saying is this the time that people are starting to take table?ff the you are seeing a retreat in this rally that has been supporting global stocks. macau coming under pressure. allegations against the chairman. interesting piece on bloomberg intelligence saying there is a lot of upset for the company. in singapore,sted but a hong kong company coming under pressure, but it has avoided bankruptcy. an educational service provider in australia saw its first profit declined by 54% amid u.s. tax losses. falling quite significantly in

the sydney session. a lot of red across the board today. manus, anna. you very much. juliette saly in singapore. hong kong -- she travels a lot. of the dayighlight and possibly his policy is going to set it out in the state of the union address later today. while he will stress the steps he is taking, trump is also expected to make additional announcements. anna: let's talk to jordan ,ogers, fx strategist at nomura about what we should expect. let's talk about the state of the union. the focus seems to be on infrastructure, on trade, on banking, on flagging strength to the economy. what are you going to be watching out for? what moves the dollar jordan: all of those things should be moving in there. the one thing the trump administration has not really done is toughened up on trade versus the rhetoric of the campaign and what they set out to do originally.

what we are seeing now is recent .anctions -- tariffs we had the report yesterday on russia, individually listed. it is a softer start to what most people were fearing, which is labeling china a currency manipulator. these sort of things. if he mentions anymore increased rhetoric on trade, that is what we are watching out for in the state of the union. manus: you know very clearly that the use of the language, a more aggressive stance on free but fair trade, intellectual property. the other side of the coin is china's response. we have not seen any response to the washing machines and solar panels. how concerned are you about response to the u.s.? is it just too early for the rest of us to make a concrete response? jordan: i don't think it will be that immediate.

you might have fresh, new tariffs at the state of union. that could happen. the chinese response should be quite mild to begin with. in terms of donald trump's premiership, it has increased by another 10% since he took office. this the u.s. trying to counteract that. we will see more softer measures, increased rhetoric, but not action from markets. anna: what is driving the dollar few at the moment, jordan? a lot of people say the dollar weakness we have seen in 2017 and last week was leaving aside comments from the u.s. administration, to do with global growth and the fact that there are other, "better" options elsewhere. i have a chart, 432, showing global stock markets on the rise in the white. it also shows the economics of prices, also a global measure, coming off a little bit in the middle of january. does that mean that the data globally is deteriorating a little bit and therefore, we might see dollar strength? jordan: deteriorating

expectations and economists. they are very good at telling you what happened, not what is going to happen. in terms of will exceed selloff because of this chart? perhaps. it's hard not to be long risk assets when you have got global growth going as it is. you need a turn in that. overheating, bring christie's, bankruptcy,s -- delinquencies. say i predicted 5% year on year growth for the u.k. and came in at5% year on year, it grew 5%. that is the sort of thing you have to take into account looking at that chart. manus: we looked at the date on the pound and you clearly made the difference between fast money or hedges and real money. i have a similar one for you in regards to positioning of the dollar. such very far, some would say. perhaps a little bit oversold. -- 533 this -- is 533.

a different story, a different takeaway from that? jordan: in foreign exchange, most of the goings-on of fx are not speculative. they are real world economic transactions. minorulative part is a portion. what you are seeing here is most people are looking into long- carry trades, looking at the interest rate return. the u.s., even though it is raising interest rates, is seeing a split between its rate level and were the fx is. if i take your dollar for example, the two-year or the five-year spread would imply euro-dollar around 107 to 110. the dollar has appreciated a lot since 2014. a lot more than previous fed hiking cycles. what matters is actually the rest of the world such as the ecb, bank of japan, u.k., and many other central banks, especially emerging markets

raising rates of their own accord. it is that lift off phase, not the midway through the cycle. it is when you first start moving monetary policy stimulus between the u.k., bank of canada. another good example. anna: tell us about the relationship between treasuries and the dollar at the moment, jordan. hespoke just yesterday -- was saying he had been traveling in the middle east and there was no reduced appetite amongst the client group he was talking to for treasuries despite weakness in the dollar. is this -- what is the latest on the conversation that you have had? is the dollar continuing to slide? today, we see yields going a little bit higher. what is the relationship for you? jordan: probably a few factors. when you talk about the u.k., everyone loves to talk about the current account deficit and trade deficit. the fiscal deficit expansion in the u.s., the tax cuts we just had, and the current account that has been widening, good

reasons why the dollar should be weaker. we are having the classic havents why you should a weaker dollar. that is what is going on with rates. outperformance in european rates on the periphery. that has been driving your low outperformance -- euro outperformance versus the dollar, driving the things. we have seen the breakdown of the puzzle. has been reverting to what emerging markets usually follow. it is rare for the dollar to do it, but not uncommon. manus: to what extent to this last meeting with janet yellen in charge -- to what extent will that set 2018? do you think she walked a shift expectations? will this be her swansong of messaging? jordan: one has janet yellen ever gone out with a bang? it has usually been to the dovish side. anna: i think that's a good thing when you are a central banker. jordan: i don't think there's going to be much surprise.

in terms of the dots and so forth, the big question will be will the fed revise up the dots to incorporate a path of more dots? that's what investors are looking at. inflation is not really picking up gangbusters to validate that. that's the sort of place we are in the markets. anna: jordan, thank you very much. really appreciate it. jordan rochester. jordan will be continuing his conversation with bloomberg on radio, next. manus: and you can watch president trump's state of the union address and 9:00 p.m. new york time. trump's may dominate the state of the union. will he talk about infrastructure in deregulation? anna: breaking news coming through across the bloomberg. this is over and turkey. -- in turkey. emirates confirmed talks with spare bank. this is interesting. turkish lender rises 5.2, 5.77

lira in trade, the highest level since december. this is a commercial bank-to- bank, leasing, and other services in turkey. manus: that is emirates, nbd, one of the biggest. spare bank is under u.s. and european sanctions since 2014. it's an interesting move. a very preliminary stage. no certainty any transaction will be entered into according to msnbc. anna: the trade minister joins us to talk about nafta and beyond. another guest joins us for his first interview of the day. what drove him to do the deal. this is bloomberg. ♪

manus: joining us now from the unit is the canadian minister

for international trade. champagne.ilippe that is the top line in on bloomberg this morning. are the, how confident canadians, are you, that nafta will survive? francois-philippe: i think there is reason to be cautiously optimistic about the meeting in montreal. there is a lot of work to be done. as you know, we made some progress on some chapters, but some of the most difficult discussions still need to happen. you have a sense that everyone understands that agreement that has provided millions of jobs in north america. we need to modernize it. the trade between canada and the u.s. is 2.4 billion. 400,000 people are crossing the borders. so, we had to modernize it to my

understanding that this is an agreement which is more than two decades old, and i think you feel around the table that there is a willingness to modernize. anna: good morning. jpmorgan suggests after the press release of yesterday that canada seems willing to accept a rigorous review of nafta every five years. can businesses deal with that level of uncertainty? francois-philippe: there are still discussions to be had around that. this is one of the most difficult aspects of it. certainly, you want stability, pretty stability. there has been preliminary discussion, but this is something that will need to be discussed further in the next round with respect to the nafta deal. ministern i ask you, -- she suggested she was pleased with the program, but there is this line that the canadians have ideas. call themwould not

formal counterproposals. what is the biggest and most positive proposition that your side has put forward that is a redline for canada? francois-philippe: if not about redline. it's about being constructive. canadians come to the table solution-mode, propose issues with respect to the origin. we will continue to be creative. i mean, the understanding of the canadian side is that we need to be engaged. we have been engaged. and we need to be constructive. those are the ways we are looking at it. canada buys more from the u.s. and japan, and china combined. for us to make this thing work is obviously essential. how can we be more innovative in north america? how can we build more in north america and sell to the world? by looking at the integrated supply chain, that is what we are looking at, putting solutions on the table which

would strengthen this economic box to make it very competitive around the world -- block to make it very competitive around the world. anna: do you see any chances that ct-tpp undercuts nafta? can the two coexist? it seems like the rules of origin rules look different. perhaps that might undermine nafta on that front. francois-philippe: i would say those are two separate tracts. we set from the beginning that from the canadian perspective, there has not been a better time to diversify. that opened up a market of 500 million people. $3.3 trillion for public procurement. for us as canadians, we are presented 0.5 percent of the world population. 2.5% of global trade. it is essential for canada was to -- modernizing whilst modernize -- it is essential for

modernizing. we will continue being engaged at the nafta table whilst making sure we are looking at the end of trading blocs. manus: francois-philippe, you mentioned a number of countries he give you do business with. how likely is this between the u.k. and canada? can i ask you, to what level is that a priority? mr. trump has indicated a willingness to do so. how willing are they canadians to do trade with the u.k.? francois-philippe: we have a trade deal with the u.k.. we currently have -- [crosstalk] manus: that is the current farm. it is a new free trade agreement that i'm referring to. francois-philippe: sure. trading is our largest partner. we want predictability in the relationship. ofentioned this on a number

occasions. we will continue discussions to look at making sure we have stability and predictability in our relationship. anna: the conversation in europe over the last way for hours on brexit, francois-philippe has been around transition. can you confirm whether the rules would continue to apply to the united kingdom during transition? 27 did not seem able to guarantee that. francois-philippe: what we are talking with the u.k. government is obviously -- like i said -- this transition period connector make sure there would be,, that overtime -- they would be, no cliffs, that we can ensure overtime. we want to make sure we have a smooth transition. anna: francois-philippe, thank you very much. francois-philippe champagne joining us from munich. nafta, -- can't keep up with all the acronyms.

"bloomberg markets european open" up next. doing deals. out this is bloomberg. ♪

♪ guy: good morning. welcome, this is "bloomberg markets: the european open." london, matton in miller is in berlin. cash trade less than 30 minutes away. taking profits, shares in asia follow america lower, european futures point to a negative start to trading. buns are trading higher despite weakness in the treasury market. the french economy delivers its first annual performance in six ar