\ ♪ >> top stories this morning. president trump agrees to reopen the federal government for about three weeks, but warns the shutdown will resume in february if no wall funding is agreed. venezuela walks back on its decision to sever diplomatic ties with the united states. mike pompeo slams nicolas maduro as an illegitimate mafia state. tou.k. parliament prepares decide on amendments to the brexit plan, the chancellor tells bloomberg and no deal brexit is a very real risk. and just days after the imf cut its growth outlook for saudi

arabia, the kingdom will today unveiled that it is seeking half $1 trillion of investment. ♪ >> it's 8:00 a.m. across the emirates. this is "daybreak: middle east." i'm yousef gamal el-din in dubai. no man's land. thefirst week of 2019, smallest weekly move since october. a few key metrics across the asset board, the s&p 500 still able to carve in some upside, leaving the gauge up in january. tech giants apple, microsoft, facebook, and alibaba will be reporting. yields on the 10 year go up to session highs, at the time optimism with talks came through

and also we are bracing for more volatility -- this week we will hear from jerome powell. it is also fomc we. 131 for above on the first time since november. ounce foring $1300 an the first time in three weeks. let's check in on the first word headlines from around the world and cross to christine burke. >> thanks. venezuela has walked back its decision to sever diplomatic ties with the u.s. after president nicolas maduro expelled diplomats earlier in the week. was prompted by america's decision to recognize the national assembly leader as the nation's rifle head of state. >> the united states is hoping to recover a brighter future for venezuela and we urge all

nations to support the democratic at rations of the venezuelan people as they try to free themselves from maduro's illegitimate coffee us -- illegitimate coffee estate. it demands action now. saudi arabia is seeking $425 billion in investment by 2030 for infrastructure, energy, mining, and other industrial projects, part of an effort to cut reliance on oil. the program targets about 1.6 trillion saudi riyal, in excess of 400 billion, so it's quite ambitious but it is over a 10 year period, so we have the time to do it. $50ill be announcing billion of projects.

u.s. commerce secretary says a trade deal with china depends on whether beijing is open to further reforms. he told bloomberg in davos that equal market access is a big stumbling block, and also said intellectual property rights are, too. talks resume in washington this week. and the u.k. parliament will vote this week on what it thinks the government should do next on brexit. amendments to the theresa may's brexit deal have been proposed although more can be added. speaking to bloomberg at the world economic forum, philip hammond said a no deal brexit would undermine peoples press rarity. -- peoples prosperity. >> it would undermine our democracy and destabilize our political settlement u.k. >> global news, 24 hours a day and at @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.

burke.istine this is bloomberg.. >> thanks. let's get back to our top stories. federal agencies affected by the shutdown have begun reopening outr president trump to democrats inside the stopgap funding measure. the deal did not include any guaranteed funding for the proposed border wall, but congress must begin negotiating border security legislation. >> a solution to this impasse was to separate funding the government from our disagreements over border security. this agreement endorses that position. it reopens the government without preconditions and gives democrats and republicans an opportunity to discuss border security without holding hundreds of thousands of american workers hostage. catch, trump the

is already warning he's ready to shut down the government again for a while to be built. >> let me be very clear. but toly have no choice build a powerful wall or steel barrier. if we don't get a fair deal from congress, the government will either shut down on february 15 again or i will use the powers afforded to me under the laws and the constitution of the address this to emergency. >> let's bring in the chief economist at emirates nbd. thanks for coming back. it was quite a tough week for economists like yourself because you had provisions from the imf, data from germany that ingested a slow, similar to what we saw

from china in the weeks prior. this temporary breakthrough -- how much of a meaningful move do you expect on monday? >> it's good news that the shutdown has come to an end, i think it adds prospects about the growth and i think concerns have been growing with the world economy slowing down. that.s. could be adding to by keeping the shutdown going. i think this is a positive step and i think market will take some signs of relief from it. there was optimism that some ring might be on the cards and i think the announcement itself will probably be met positively, but obviously it slows down the process x.

>> it also shows that the paralysis in washington is so very real. and is a temporary solution we could be back at both ends of the spectrum. >> very much so. and ia temporary stopgap think it's hard to concede that the president will follow through on his word to shut down the government quite so quickly, so i think the markets will probably be a little doubtful about whether that will happen. the likelihood seems to be that ande will be a compromise the committee has a few weeks to discuss the subject in there will be some kind of compromise. >> is interesting this comes ahead of the fomc decision. a lot of speculation as to what we might here in terms of the runoff of balance sheet. we put together a graphic that shows where we are at with the balance sheet normalization that

has been a very drawnout process. rbc says the reality is there are entirely too many challenges -- what are you expecting? >> it's a little early for them to be articulating against this background of the uncertainty in terms of changing messaging regarding the balance sheet or even regarding interest rates. i suspect the fed will want to date clear of those issues, particularly in public pronouncement, you event that the economy is still sensitive. we will not be seeing the data property for some time, we have to catch up with data that has already been miss, and we will also start to see the full data. i think it will take a little while longer the fed to become more confident, to send stronger singles on monetary policy. >> we saw the greenback we can

on friday. aken on friday. there's uncertainty in the fiscal side. there's really not much of an option in a time of general anxiety, it's a difficult balance to strike. >> markets will remain concerned about bigger geopolitical issues, trade issues will remain prominent, and that will require or create demand for safe haven as well. be reliefere will that the shutdown has ended, growth forecasts will probably not be as weak as they may have , so they can probably breathe a little bit of a sigh of relief on that run. i suspect markets had priced at the fed for the year, the possibility might be as we go forward that that comes back into play. >> i look at the political

capital of this administration in the white house, it is clearly coming under pressure. as an investor you begin to think maybe he has more of an incentive to come to a deal for top the upcoming delegation, the talks that will be underway. are you a believer in the breakthrough? >> i think the backdrop of political uncertainty in the united states making some agreement with china is more likely and to some extent now that you've gotten through the domestic problems he can afford to be tough on trade stop you never quite know which way it is going to break. there probably will be some form of deal with the trade between think thend china, i greater uncertainty is what will happen to the intellectual property issues and technology disputes. those are the areas which might last longer in terms of differences between the two sides. >> we still have a lot to talk about. thank you very much.

tim fox stays with us. let's get you a preview of what's coming up on the program. we are going to be look into saudi arabia days after the imf cut their growth outlook for the kingdom. they will be unveiling a half trillion dollar package of investment to be done by 2030. we will break down the numbers and what it is going to mean for asset classes in this part of the world. but first, as the u.k. parliament prepares to vote on amendments to the theresa may brexit plan, a no deal brexit is a very real risk. this is bloomberg. ♪

♪ >> the u.k. parliament will vote this to stay on when it inc.'s the government should do next on brexit. so far 14 amendments have been proposed, but more could be added.

speaking to bloomberg at the world economic forum in davos, chancellor philip hammond said in no deal brexit would undermine peoples prosperity. >> i know for business leaders the deadline is only two months away and that seems awfully close, but in the way political negotiations happen we are's dill at the phase where people will count on their preferred outcomes. the truth is that too many people have not yet moved from their preferred outcome to an acceptable outcome that allows a compromise, and that's a process that will happen over the next days and weeks as people recognize that they cannot get their preferred outcome because there isn't a majority for it and we have to find a common except,hat we can all which represents a way forward for the country and protects the interest of the people. >> but is there a 30% chance we get a no deal brexit? ? >> i will not put a percentage on it, clearly there is a risk of no deal, and that risk is

very real and people need to remember that. equally, people on the other side need to write nice there's a large body of opinion in parliament that would seek to avoid no deal at all cost, including putting at risk brexit itself. the right answer is to find a compromise around a deal which avoids both of those extremes and allows britain to proceed prosperously to a sensible future relationship with the european union. >> have the thought about a second referendum? there are real problems around the idea of a second referendum in there's clearly no majority for that. what we have to focus on is ideas that are likely, ultimately, to be supported by a majority in parliament. >> so what is there a majority for? >> at the moment nothing,.

that's the problem. parliament knows what it's against but hasn't worked out what it is for. we are still at the stage where people are promoting their ideal outcome rather than compromising toward a common ground that we can all agree on. >> if we don't find a solution or if we don't find something that parliament would be in favor of, would you be in favor of delaying article 50? >> that's not the government's preferred outcome. we are clear that we want to leave on the 29th of march and believe we can. you asked ais this, few months ago what will bring people together around the compromise, and it's the sense of the deadline. youou were to remove that take the pressure off people and you're only going to reinforce their inclination to keep promoting their preferred outcomes. >> if there was a delay, would

it be a the trail of the british people? >> will it be of the trail is if we either didn't deliver brexit for them or we delivered brexit in a way that undermines their press ready. i believe in no deal brexit was undermined that prosperity and that's not what people voted for. thatheard from the leaders we could get a deal with the european union, we could have a smooth and seamless exit, and that is what the majority of people in britain want to see. \ >> is it not fair to ask what kind of brexit the people want? >> it is clear that there is a majority of people in britain who want to see us navigate this , acess in an orderly way smooth passage to a future arrangement with the european union that allows us to continue trading together, to protect jobs in the u.k. and means we

are outside the european union, delivering the decision of the people in the referendum. >> let's go back to tim fox. he is still with us. quite a few scenarios that are being drawn out. -- what is votes your base case in which alternative/amendment is likely to prevail? aret is hard to say, there quite a few but there does seem to be a lot of support for the tondments that favor delays brexit happening on the 29th. if a deal hasn't been arranged by the middle of february and there's this proposal i think it suggests that there should be a delay. different amendments are getting different amounts of support -- i suspect one will come through and that could throw a spanner in the works for march 29.

i think from a markets point of view at this stage they are probably quite relieved. fire, weng has been on -- this is the weekly sterling performance. folks at aberdeen think this is overdone. agree or disagree? >> i think it's fine as far as the information we have currently but as we go forward you may see a situation change and amendments to pass, we move toward a no deal by default, which is a possibility. certainly sterling would be vulnerable again. >> thank you very much for stopping by. always great getting your views. a new up on the show, starbucks opens in china in 15 hours, and the coffee chain says

asked tension is far from over. we will hear from them next. this is bloomberg. ♪

♪ >> let's talk about starbucks. they are betting on a massive expansion in the chinese market. this as local coffee competition is heating up. the ceo is confident in the growth and success of the business and says they will continue to adapt to new tech. >> digital is a key part of our strategy. we have worked to extend the in-store experience and digital is a journey because technology is always changing, and we continue to adapt with that. for example, we now have in the u.s. 16.3 million active rewards havers and in addition we digital connections with another 13 million customers. are approaching 30 million

digital connections with customers and the united dates alone. we are now applying things like personalization software to make sure we are engaging with those customers and a way that deepens their connection with starbucks. toare using technology inform us on where to build stores and inform everything about our holiday plans. and thaty is a journey is why in this latest quarter we launched starbucks delivers. customers are now embracing technology to this will it take a state of convenience so in addition to coming into our stores are going through a drive-through or using mobile pay, a customer can order and we can prepare the food and , and that'svered another example of the evolution of technology. >> u.s. growth is one of your priorities but another one is growth in china. you have an established footprint and you get a lot of your growth from china. -- how are you going

to get more growth? and do you worry about cannibalizing the stores you already have? >> first of all, as you pointed out, we just heard of celebrating our 20th anniversary in china, we entered china 20 years ago and today we are approaching 3700 stores in china. we have 45,000 50,000 partners in china, and the focus that we have is on total transaction growth. grew a new store account by 18%, we entered 10 new cities and are now in 158 across china. we are in a market will download. we -- the market is so significant and the priority is continuing to build stores so we have a brand in relationship

with those customers, then deep in that relationship through a great experience in our stores an additional global connection. china is a very important part of our growth strategy. the two long-term markets for growth of the u.s. and china, and in both cases those markets delivered this quarter. >> i notice as you are laying out the strategic areas you didn't mention europe. coffeerely on a global reliance? >> clearly we are approaching 30,000 stores in 78 markets. in europe, the middle east, and africa, a big part of that portfolio. in september we opened the starbucks reserve grocery in milan. it was a beautiful 25,000 square-foot store right in the heart of milan, built as a way

to pay tribute to the italian coffee culture. this last quarter since then, our partner has held a number of her books is in the lawn and we are starting to build out italy and that rose three in milan is serving the brand for all of europe. we are very enthusiastic about the progress we've made and we continue to have a very significant business across 78 markets around the world. was the starbucks ceo speaking with david westin. we will stay with emerging markets and talk about turkey. our exclusive interview with the finance minister and his claims for a soft landing after the currency crisis. we will show you what has been happening with the turkish lira, a very slow, gradual recovery, but far from the lows we saw around the summer of last year. the turkishole says lira is best positioned to

inform, and they say they will be a top beneficiary in the global risk on scenario. plenty more ahead this is bloomberg. ♪ mberg. ♪

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♪ >> 8:30 a.m. in dubai. a live shot of the financial center, could be a big week for earnings in the u.s. and this part of the world. we are waiting to hear from saudi basic industries and in the meantime this is how brent crude fared. a key number to watch out for are the rigs in the u.s., because the rigs targeting oil rose to 862. that means we are looking at a turnaround and possibly more problems for opec plus going or word. let's check in on the first word headlines from around the world and cross back out to christine burke. >> thanks.