good morning, i am nejra cehic. is bloomberg daybreak: asia europe -- daybreak europe. top stories. >> the global stocks surge as president trump said he will extend the trade truce with beijing but will a report warning of new uncertainty cap sentiment? the new deadline for a final brexit vote, that you will consider a 21-month delay if a deal can't be reached. risk management as the u.s. considers blocking huawei's 5g sales area we are live from the global tech event.

♪ manus: she is on, got to barcelona, good morning. nejra: good morning. i thought about replacing myself with a robot to see if you would notice. it is made. these streets are going to be teeming with taxis. 100,000 people descending on barcelona for the conference over the next four days. the focus has always is on the tech, talking about robots, phones or augmented reality, but there is a shadow being cast over the conference this year as well. it is starting to shape up to be a proxy for the tension between the u.s. and huawei.

the u.s. has increased its delegation to the conference. the u.s. is concerned about the security issues around huawei. there have been accusations of espionage. huawei has denied these. it is putting the telecoms in an awkward position especially in europe where the industry is equipment, andei it is crucial to the development of 5g. that is a huge piece of the conference. not just about faster downloads. 5g will drive everything from autonomous -- autonomous cars, the internet of things, you name it. it will be exciting. [speaking simultaneously] day -- hroughout the manus: we have got red headlines, deals on the tech side, we will do rush breaking news. this is speculated in press, they are buying spot therapeutics, looking large.

of the 100 $.15. this is a corner of the market, the exorbitant corner of the market. they have -- this is where rush upper bidding is prepared to pay up. this is about development of gene therapy drugs. it was founded in 2013, philadelphia-based. roche in a spot with's arc in therapeutics -- with spark therapeutics, that is breaking news coming across the bloomberg this morning. in terms of the plastics business, covestro -- one of the competitors got price rises and that gave the market -- the stock moved quite a bit. the dividend.ng boolean sales 14.6 billion euros. of 2.4, thevidend

somet has 2.3, a hidden set of numbers for covestro. it is a nice turnaround really. let's talk about some of the markets. this is what we have got. the yuan on a tear. you look at everybody hitching their wagon to the yuan. you are seeing it go higher. the question is, will we see goldman sachs raising their targets for values down at 6.5, but we are in the dying moments of these trade negotiations. you see volatility return and the aussie dollar has been higher through the morning based on the assumption we will get a successful outcome. as you know, game theory and reality are very different things. we interrupted you because we had headlines on roche, but you have a cracking lineup in

barcelona. yes, i do. i will be talking to the turks sell ceo. he is on the board of the industry body that will have met over the weekend to set the priorities for the next year, no doubt the topic of huawei will come up. i will talk to the deputy ceo of orange and also the telefonica ceo or let me get to the markets as well. in terms of the risk on rally, your ability of that -- yes we have had that deadline extended, but isn't that what people were extending -- people were expecting? what will the enforcement look like in terms of futures are shaping up? u.s. futures are up. yen is ever so slightly big. we are trading at 110 .59. and when you see equities at,

seeing a clear picture of risk on there. let's check in on the markets of asia. juliette saly has more. it looked like asia has jumped on the risk rally bandwagon. it has great whether or not it is kicking the can down the road, it is a risk on day in asia. look at the see if x300. -- this is not a standard move. it is the biggest one-day jump since november 2015. investors are watching mostly to see if it will lend to bull market territory. enter into a bull market territory. in asia seeing a fixed session of games on this test gains on this optimism. japan closing out firmer than one -- .5%. holding at october highs here. have a look at some of the stocks in detail because china

is where you are seeing a rally. oak ridge stocks getting a strong bid after we heard thencial firms singled out meeting that doesn't happen very often. you have citic securities and a number of brokerages hitting their 10% limit on the mainland. also that 5g technology, we have this audible phone momentum really helping tech stocks as well -- foldable phone momentum really helping tech stocks. to the downside we have other news, this second meeting between president trump and kim jong-un. you're seeing the peace stocks in south korea under pressure. that is showing you reflection whether or not we will see anything concrete coming from these talks. manus: you hit the nail on the head. game theory versus reality.

to which of course president trump delayed increasing tariffs on chinese imports citing substantial progress. the president says he aims to hold a summit meeting with xi jinping. that whole relationship has been outstanding. we put ourselves into a position of strength for the first time in about 35 years or more than that. china has been terrific. we want to make a deal that is great for both countries. manus: trump didn't give any details on the timing of the meeting or how long he expects tariff extensions to last. -- dollar-you on tests its 2018 low. tests its 2018 low. one man who knows about markets, this man at state street global investors.

great to have you. we are locked and loaded in terms of an extension, so that riskfuel to the local rally. my question to you is, the stock market in china are back in full territory but bond markets are telling me -- bull territory, but bond markets are telling me a different story. the reality is more than it is justified by a simple extension. it is telling you there is confidence a longer-term deal leads to move -- leads to medium term deal will be done. that has been out for a while. it is an trump's interest to get this -- in trump's interest to get this done quickly. nejra: good morning. i am in barcelona. if the equity market has gone a little bit further than has

justified by the extension of trade talks, what could be the next directionality for the equity market? what will be the next impetus in terms of trade discussions to go higher or lower? rick: the markets aren't just looking at china. europe is of anxiety. where companies have disappointed they haven't been punished too badly but if you get a continuing drift of bad news, that will dampen sentiment further. back to china, if the signal is coming out that the truce is really only possible because we are close to something more substantial, then the equity market could advance further. on the basis of an extension, the reality -- rally has been enthusiastic. ofus: perhaps a little bit rational exuberance to channel one of our firmer -- former fed

leaders. we really are on a bit of a tear with the yuan. volatility is rising. goldman is bullish. if the stumbling block of these negotiations is currency, this appreciation we have got in the yuan, it has manyfold effects. where does it spill over to? rick: i think the dollar overall has a chance for a more substantial downward correction. if the trade tariff risk goes away. all emerging-market currencies and currencies generally against the dollar can rally stronger. what has happened in the last week has been the discussion about managing this exchange rate between the u.s. dollar and chinese yuan which seems to run against the longer-term trend of trying to liberalize the chinese

currency. we are back to a time when we want to manage currency relationships. what is clear is let's talk about china being a currency manipulator. that is welcome. very welcome. also in terms of manipulating the yuan, if indeed that likely is what china does from here, there are many ways they could do this. that is something investors will be keeping an eye on. how closely will that affect your proclivity for risk if any of these ways of you on -- if yuan manipulation occurs? we should perhaps keep in mind there is the potential for quite big organic inflows into china which will have an impact on currency because you have fixed income markets embracing chinese bonds in their indices.

you have equity markets already putting these into -- you have an awareness and interest in and chinese capital markets. another pressure on the currency. you could say these are marginal but in some ways that is more welcome than discussion about managing rates. back to the world of manipulation. manus: one of the things we , the triple oars and the amount of stimulus that is coming through in china, i loans, $2.3w yuan realion, there is this push from the pboc on the stimulus site without monetary policy. do you see that as an extension of 2019 policy? i think it will continue

because there is real anxiety again -- overhang amongst businesses. creeping in to consumers of this trade war and what that means for chinese businesses. but started some time ago. the stimulus efforts may not be enough to overcome those risks. if the risks began to come back and looked like you wouldn't get a deal at all, i don't think those efforts are going to be enough to keep the chinese economy from decelerating more rapidly. we are in a slower landing scenario, but if you didn't really have a deal, this extension was a fake move of some kind, then i think that stimulus wouldn't be enough. global cio at state street global advisors stays with us for the hour. let's get to first word news with annabel. reporter: thank you. theresa may has again delayed a

parliamentary vote on a brexit deal. it won't take place this week. she set a new deadline of march 12. that is 17 days before the u.k. is set to leave. if the prime minister can't get a deal, some in brussels now back a delay of brexit by as much as 21 months. warren buffett wants to spend berkshire hathaway's growing cash pile on a growing acquisition but not anytime soon or he calls skyhigh prices. he said in his annual letter to investors berkshire will become a significant repurchase or of its own stock. of its own stock. kim jong-un has made little secret that his key goal is to hit -- he's sanctions. eases goal is to sanctions.

this set for wednesday and thursday in hanoi. mr. trump: i think it will lead to something good, maybe not. , butnot pushing for speed we are not removing the sanctions. reporter: a book about race relations in the 1960's beat out favorite "roma" but the spanish film has three awards, best director. in an even bigger upset, the best actress -- queen and in "the favorite." global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. annabel, thank you. coming up on bloomberg, security and five g networks on the

agenda at the mobile world congress, we speak to the ceo of one company. manus: and if you are traveling to work, tune in for bloomberg radio. we are live on digital radio in the london area. this is bloomberg. ♪ this is bloomberg. ♪

manus: this is bloomberg daybreak: europe. nejra: i am nejra cehic. questionare asking the how long before dollar yuan tests its 2018 low? looking at the extension of the deadline, but are things going to get more complicated? at the conference in barcelona, the largest exhibition for the mobile and tech industry. the problem surrounding huawei

but itis a big one, promises faster 10 times faster than 4g. a movie could be diluted in seconds -- downloaded in seconds. refrigerators could send and receive data. but control over five g networks could allow an enemy to wreak sabotage. but also the trump administration says there are risks china will use its equipment for spying, something they have denied. 5g is something my next guest is aware of, turkey's information securities regulator. the ceo of turks so. thank you for joining me. you are on the board of g fma, the industry body that

represents mobile operators for you had a meeting to talk about industry minorities. what has huawei discussed? >> thank you for having me. i do not comment on discussions , but i can tell you that we are a mature industry who is quite capable of taking care of the security of our networks. we are not in this business just yesterday. thank you for everybody who is mentioning about the concerns on this. really in a way we are in this business for a long time, trusted by customers and have technical capabilities to secure networks. onwill have a major impact many industries, but it is not just about how fast it will be. it is about operation of artificial intelligence. gets to zero, you

can bet smart things -- you can embed all kinds of smart things. that is why we need a sustainable, competitive supply chain. we have a handful of technology companies table of supporting companies like us with technology. huawei has been a partner. nejra: that is part of the challenge for european telecom operators because huawei is deeply invented in 4g technology and seen as on par with competitors that are cost-effective. you said before they have been a reliable business partner, looking forward to continuing their use of you are aware of potential risks and you are well prepared. how are you prepared? providing as been turkcell for 25 years infrastructure or our country and customers. everything is -- infrastructure

for our country and customers. we have many business partners, technology partners, and every service we put into commercial use goes a very detailed. we will be very diligent on that. nejra: how disruptive would it be if you have to stop any partnership? kaan: we work with multiple partners on every fund. none of the technology partners themselves is good for the industry, but we need advanced technologies and so far we have been extremely reductive working with huawei. -- productive working with huawei. nejra: turkey could become a leading nation in 5g. we deployed an advanced version of the network that allows us to do things almost 5g

ready. our network is one of the best mobile networks. we use carrier aggregation technologies and others on our 4.5g network. the moment we have the spectrum available, we can put on commercial use. nejra: how will the inflationary environment impact your mobile lended revenue growth? -- blended revenue growth? manus: as turkcell we are the fastest-growing telecom company. this doesn't come from selling the same for higher prices. it comes from offering wider range of value for the customers. we have been in a process of becoming a digital operator, which means we don't only serve the turkish relationship, but we go beyond that with instant messaging, search engines, tv, music. that will allow us to grow our business.

companies need to take action to sustain success, but the real thing is serving customers. nejra: you mentioned other services for customers. what is the profits that -- the prospect of your service rivaling whatsapp? kaan: in turkey we have 30% market share. we are growing every day. it is a better product. the space ofin instant messaging platforms. it can provide translation services to 65 languages so we can speak with indian or japanese, they can speak with each other. all these things is about innovation and making sure you serve customers the best way. nejra: thank you for joining me exclusively this morning. manus: would you like a bit of china? the volume is rocking. a red headline am a stock

turnover surpasses 900 billion yuan, the most since 2015. we have put $1 trillion worth of value on the market since january. it is a winning streak. ♪ ♪

manus: i'm manus cranny in dubai. nejra cehic is nsw swc in barcelona. just to reaffirm, another headline on china. men under billion yuan's worth hastock has surpassed, traded today. the most since 2015. there's no doubt about it, china stocks out gunning the global peers based on the extension. absolutely. i'm asking myself how far the rally has to go. says it's may be gone too far on the back of the latest headlines.

yes the 10th deadline has been extended with are so many other issues to be discussed yet more could the talks go from here even though it have extension deadline. both sides really want to come to some sort of agreement. let's, markets around the world. here in london is bloomberg's dani burger. the indian markets start off well but they cooled off quite quickly. what accounts for today's volatility? is our lack of belief in the rally continuing based on the headlines around extending the tariff deadline? you now that. good morning to you. the volumes nowhere close to the chinese volumes but probably the lack of belief that the rabble -- rally will continue. , kindh of the local front

of plane on the minds. .bout a third of a percent the macros have looked ok but the market is a lot more quiet than the counterparts have been. as we said, the reasons are now known. and don't see anybody betting on a big rally. the one market i'm watching out happened to the real estate stocks. the taxes have been brought down . in a meeting held on sunday, that's led to this index moving up almost 4%. really strong showing in last four days. real estate stocks are really doing well. back to you. thank you very much.

there's a lovely line in the stories this morning that talks about a springtime for stocks and an all to whether chill for bonds. classic currencies. the impact you the latest good morning. >> it's all about the yuan and china stocks. it we have the u.s. dollar, chinese the one. below six .7, first time it's crossed that threshold since july. this shows a positive trait outcome hasn't been based into the picture otherwise you wouldn't see markets doing what they are doing right now. in china, a more than 5%. 900 billion yuan. turnover, the most since 2015. it's on track for the biggest intraday gain since 2016. we also have to look at a aussie

because it's correlation with the chinese currency has really kicked up. or seeing gains here as well. this picture but certainly the commodity currency, since it to chinese growth. definitely seeing some action there. when it comes to volatility a want to take you into my terminal because we have seen a more subdued chair. the vix falling for nine straight sessions. this is a record. but is it all clear? the css be, another fear gauge, measures options as well but only on a three-month basis. the vix is really a wide range of options. it's been increasing. the highest since october. some tension still left in the market. nejra: thank you so much. we are asking the question on mliv come all about the trade truce.

how long till dollar yuan passes its low. .ou can join the debate let's get the first word news with annabel drool and in hong kong. president trump has delayed increasing tariffs on chinese imports citing substantial progress in trade talks. withms to hold a meeting china's president xi jinping in florida to continue the pack. he didn't say how long expects the extension to last. that whole relationship has been outstanding. we got ourselves into a position of strength for the first time in about 35 years. probably a lot more than that. has been terrific. we want to make a deal that's great for both countries. theresa may has again delayed a vote on brexit.

it will take place this week. she has instituted a new deadline of march 12, just 17 days before the u.k. is set to leave the eu. now reportedlys back a delay of brexit by as much as 21 months. that would push the exit until 2021. warren buffett says he wants to spend the berkshire hathaway's cache file an acquisition but doesn't see it happening anytime soon. he lamented what he called skyhigh prices. to it -- in his annual letter to investors, they will become a repurchase or of their own stock. movie about race relations in the 1960's, has won the oscar for best picture beating out favorite robot. the spanish-language film still has some bragging rights come it won three awards including best director. in an even bigger upset, olivia colman be glenn close for the best actress oscar in the favorite.

global news 20 brown is day in a tictoc on twitter. than 120 countries, this is bloomberg. manus: thank you. it's good to set up. it's going to be busy. mike pence heads to bogota to four -- voices support for venezuela. jay powell testifies before the senate banking committee. is going to deliver the fed's policy report. train tramples on. good morning in barcelona. morning, manus. back to the fed story.

met in january, they will probably back ending the runoff while raising uncertainty over further rate hikes. one of the stories on the bloomberg is talking about flexible inflation targeting. -- as inflation targeting its more and more difficult for the fed, those inflation expectations keep falling, do you see any prospect for inflation expectations and inflation picking up from here? >> not really. wage inflation is rising in the u.s.. you so that the economy growing. inflation seems at risk -- doesn't seem at risk of rising eventually.

we think the potential for rate hikes is still with us for 2019. >> should we be prepared for more? i want to prepare for the bond market volatility. that is cascading lower. movement byvent to the fed. is it smart to sell in 2019 or would you be a pickup? two big moments with the tax plan and with mnuchin meeting everyone and it ratcheted higher. it looks to me as if we are underpricing potential. we love grey swans is a concept. we are not global traders but it seems for a long time, fixed income volatility is too low or implied volatility is too low. when you think about the real uncertainties you have different

chill policies between u.s. and europe, a lot of uncertainties out there. yet the move index and others would suggest we are very confident we know are markets are going. earlier we were talking about the prospect for the equity market rally to continue from here. i want to ask about credit. are starting to be asked about the outlook for credit whether it's more effective of the law's we saw the end of 2018 and the gains we've seen in 2019. it seems for some to be an unloved credit rally as well. are you taking positions in credit that can be easily unwound if we see spreads widening? we are dating a sense. grade dating investment but we are not married and not fully unloved -- in love.

cautious about high-yield markets. we are uppointed out, in quality in average. stay worryt hard to are in credit cycles. in the u.s., to be sure. values returned to investment grade markets. >> the balance sheet of the federal reserve is made up obviously of treasuries a number of other items. , that you look at that ability to be flexible by the fed? are you concerned about the mortgage backed securities runoff versus the treasuries? >> it's a volatility story, isn't it? we think markets might return to normal people appreciate that.

to u.s. is probably going raise rates later this year because the economy is not going to be doing is bad. we have very low unemployment the u.s. and we have trim growth but we are seeing rates below. it will reflect itself all the way through markets including nbs. manus: handwritten there a edange which -- you hand irritated to hold a phrase. we speak on the show, to the ceo of the rig operator marist drilling as a gets ready for its market debut in copenhagen. that's next. when traveling to work turn into a bloomberg radio live on your mobile device or on dab digital radio in london. this is bloomberg.

manus: i'm manus cranny in dubai. nejra: i'm nejra cehic in barcelona. manus: time for your business flash. huawei has launched its first folding tablet phone after sensing is in the same. it's slightly bigger than the galaxy for. it's a bit more expensive to. cost 2600 dollars. the galaxy full comes in at just under 2000. giantan mired -- mining barrick has acquired thousand shares through a subsidiary and plans to table changes.

gary goldberg says the move is, tote, a desperate attempt quell a current deal. gains near three-month high in the world's largest oil traders as prices could rally even further. opec columns outputs an american sanctions cause a shortage in the market. a surge in u.s. shale supply could drive prices lower in the fourth quarter. an exclusive talk with guy johnson. is quiteoducing area removed from the coast and quite remote from refining. they need pipelines to connected in those it was are being built. as is pipelines come on, some of when can we so the expansion is forecast will start to hit we should of a surgeon production.

if the pipe what is there coming .an move it is probably reasonable to assess the opportunity to get above 13 later on this year or early into next year when logistics allow that to happen. as logistics of the pipes is there more pent-up demand behind that? i'm wondering how the story plays out. is logistics always been to be the bottleneck? slightlyk it be overbuilt. it's quite a lot coming on. the next 12 to 24 months, think there will be adequate infrastructure of the wood access on the producer side area for them it's a clean equation of does the price in midland give them a return on capital and distance will to carry on drilling? guy: first half of 2018 quite

tough when it came to trading. second half, you have and publish any numbers yet the give us an idea of was the second half better than the first half? >> it was better and he will have a company update in about a anth's time with volumes and little bit more information. in general, yes, better second half and first half. guy: how is it changing within the space you are operating? missing some companies going to the wall. how is that changing dynamic within the space you operated? >> the trading community is benefiting a lasting years of a huge amount of trading growth. they've managed to grab a lot of the growth. pressureow much more on the other communities, national oil company in international oil for more that

capacity and space. as a little bit of a fight on and it's our job to make sure he of the best teams in all of our disciplines. so that we are ahead of the pack in seeking out new opportunities in pretty new opportunities for either a suppliers or customers. it's very much the way we see things. we have to stay ahead of competition stay hungry and thirsty to achieve that. that was the ceo of veto groups talking school to bloomberg. let's play -- that stay with marist drilling. the world's largest shipping company is set to list and and mark in early april. a shady market after the collapse that sent shockwaves drug industry. --maersken -- jorn:

going services ceo jorn madsen join us on the phone from copenhagen. is the biggest message to shareholders this morning in terms of the growth plans that you've got? jorn: good morning and thank you for letting me join you. it's a great day. i will get the opportunity to talk to investors. single not may be a piece of news one of the things areee is that markets improving and especially the norwegian market where we hold the stronghold has been improved more than any other markets. we do see some light at the end of the tunnel. good morning. how long will the overcapacity last in the market?

the expect any industry consolidation as a result? jorn: the overcapacity in the , we are seeing improvements. we have seen that since 2017 are bothw tipping point for the jacobus and the footer markets. market,ly the norwegian the party scene quite an improvement in the space we are in. instance, we've sold off the entire year. we are quite optimistic in that sense. a little bitual deeper, excuse the pun, into that. we have incredibly tight with the major drillers. are you sensing an opening of

the cap? is there a reach for efficiency that is driving? we seen that the oil companies have done a lot to bring down the cost. some of it has been procurement driven. we've seen that them are now in a situation since 2017 where they have capital to spend. which is of course a prerequisite for moving into more activity. we've also seen the situation with the rest of us have been the beating. somethingneed to do to remain in their space. the offshore is at a point where price, weurrent will see that 90% of the fields that are undeveloped are in the money. activity wise, we see it's going the right way.

i want to come back to the subject of a potential consolidation in the industry, we have been talking about cash, etc.. would immersed drilling -- would maersk dissipate as a buyer? jorn: it's too early to say. the growth ory are going be looking for is within the areas where we are strong and where we have an edge. the upper the model we have is delivering compared to our competitors profitability that's higher than the top. the sabine area where if we are looking at growth, it would be where you will see growth. thehe floater market, jakobson the north sea, that's

where we are good. you going to be free now to stock up the larder, so to speak. would you go after the capital? we are in a situation already wary have -- already have quite a good balance sheet. probably the best balance sheet in the industry. i'm quite happy how we could capitalize out of this merger. think you so much for joining us on daybreak europe. timer some final thoughts. we talked about the next potential step.

if we are looking at a clock in 2070 2008 with midnight at the and we are looking the global cycle, what times it now? near 2007/2008. the comparison in terms of financial stability is different. we are still a few years away from the end of an economic cycle that we seem to be up to extended a little further. around the rest the world we are plenty of room to run. it's not so much that we are nearly and but how do we get ammunition back in the toolbox in case we do have problems. manus: contact a lot of in that slot into the show. he will continue his conversation with bloomberg the

team. coming up with near an eye on daybreak europe, we have another conversation with the ceo of the bank of ireland, ubs wealth management joins us. joins us.ca:

manus: good morning, i'm manus cranny. nejra: i'm nejra cehic live from barcelona. these are today's top stories. manus: risk on, global stocks rally as president trump says he will extend the trade truce with beijing. china's csi 300 surges more than 5%. march 12thess emerging as the final brexit vote. the eu is said to consider a 21 month delay if a deal can be reached. risk management as the united states considers blocking

huawei's 5g sales. we are live in a global tech event. welcome to daybreak europe. nejra, you are on tour. you have the glamorous work in barcelona. where are you? i'm on a rooftop overlooking parceling in a. the sun is up, you're starting to get the cars honking. a hundred thousand people defending on a four-day conference here. it's about augmented reality. there's also a shadow being cast. the big concern for them is walk away. -- huawei.

the risks around espionage. they denied it many times but it's going to be the discussion in the room and perhaps cause some awkwardness for some telecom executives because especially in europe, the networks the need to be built around 5g, they could be heavily reliant on huawei. 4g was. i will speak to another industry -- number of industry executives throughout the day. interviews. i'll be hosting a panel called shaping the worth of the future. you can watch the discussion on live go on bloomberg terminal. that's london time 5:30 p.m. barcelona time.

it's not just about faster download speeds. it's about ultimate factories of homes. the beginning any ideas about getting a job in tech. stay focused on the job. let me bring you some breaking news. a bee foods, the outlook for the group is unchanged. be primark is expected to ahead. a bad thing, they're are telling me. when i go to the gym. sales growth in all areas of the business exuding sugar, sza be foods. from the high street of u.k., let's cross over and have a look

at the bank. is going todonagh change -- join us. the question is the durability of the lending in the economy cranking on gas if there is a hard exit. net interest margin of around 2.16% for this year. profit is not hundred 35 million. i would take a little bit deeper . those not performing is critical. manchester joins near and i shortly. don't find yourself a new tech. -- tech job. might get a robot to do the show tomorrow and see which you notice. let's get to these future markets. we have seen u.s. futures on a firmer footing along with rally in asia.

on this traders. the extension of the march for a deadline. you are seeing ftse futures, dax, all of the front foot. it is -- is this a rally that will continue? yes the deadline is extended wasn't that already price then? there's even more perhaps convocations to calm. >> are watching a wave a flag. csi entering the shanghai composite shanghai. the bulls are roaring. they are both back and bold territory. we've got the stimulus. hitching a ride on the sentiment from the extension of tate -- trade tensions. juliette saly never hitches a

ride, she deals in fact. the question is, is this game theory and like it harder? how are your markets looking? it's all about this scene in on the 300 up almost 6% close. that's's biggest one-day jump since august 2015. stocks at june highs on friday. we saw the chinese index and now we have the large caps. it's not just on trade optimism, we've also had the meeting coming through in virtually every single chinese stock with the word securities in it has risen. elsewhere you've had japan close higher by half of 1%. australia firm by third of 1%. it's the sixth session of gains for asian stocks.

holding on october highs. a those currency moves. the wanted aussie dollar on the front. up by 4/10 of 1%. has been higher as much as 6/10 of 1% against the dollar. both of these could start to falter throughout the course of the week. you and their have been mentioning are quite a few obstacles in place. the other big news of the wake -- week is the meeting between president trump and kim jong-un. for arean won is higher potential deal there. nejra, manus. thank you so much. let's get to our guest for the hour. the senior economist for

vanguard asset services joins us. great to have you with us. the csi 300 entering a bull market. theme a clear risk on today. at the same time, china has talked about new uncertainties and possible arduous frictions. given we've heard that from china, how much conviction do you have on the rally in chinese assets? of theret's good news has been an extension announced but we'll have to wait and see when it takes off. this pointear at what concessions the chinese government will need to give to the u.s. and are to strike a deal. clearly there is some uncertainty in the chinese side about whether a deal ultimately will be struck. what have to wait and see how things play out. manus: we will see how it all plays out. stocks return. fair values 650.

view,o have this wash of i've seen the chinese react 2018 to safeguard themselves. this level of stimulus, we put it up for you. in terms of what they are doing. thatreally what is behind part of this extra velocity in the market. it's about the stimulus in a confidence any potential trade deal. >> it's a combination of factors. the risk of an escalation in trade tensions has diminished. in addition, you have stimulus from china. the u.s. tax-cut stimulus funding to the system and recently at a dovish tilt by global central banks which has also served as a sort of stimulus. all of those propping up the equity market which has rallied in the early weeks of this year. what do you expect to happen from here in terms of the currency? we've heard talks of some sort

of currency agreement. this after there were reports that the u.s. had asked china for stability and the yuan. do you think any china will use to create stability or avoid weakness in the yuan? chinesealready the government will and to shore confidence in the economy by reducing the risk of having these kind of trade tensions are traitorous collations. and provide stimulus were necessary to probably economy. and make sure the kind of ongoing confidence that china is going to not have a hard landing anytime soon. though they combination of both fiscal and monetary stimulus when needed. they're getting more fiber by the day. to talkingget back about synchronized levels?

it made you smile, that's what i want. to speakingback about centralized levels of growth? there's a trade deal. last year was unusual in the u.s. decoupled from the rest of the world. the fiscal stimulus cause the u.s. to grow much more above trends than other markets. i think there will be more synchronization this year was somewhat disappointed growth across the world. perhaps next year even further synchronization. nejra: one of your colleagues was commenting about favoring front-end treasuries in a roller coaster environment. if you are this roller coaster environment, what assets would you be looking to favor right now? i think equities are still life is outperform bonds of the median turn. he had a significant rally in the equity market. quite a lot of

positive economic news to sustain that rally even further. we will sustain what is already been a 10 plus percent rally in equity markets. for the medium-term, equities in the short run, it's difficult to say whether equities are bonds will outperform of the course of the rest of the year. manus: there are greater minds out to the myself. he created this to boost. warren buffett. he has like -- he has cash. many people are trying to work out how do you play the yield curve? is this really come right down the curve and have a three-month taper? alexis: i think you have to be rather pessimistic about the outlook to see them cash is going to outperform in

particular equities. you would need to see a significant correction in the equity market in order forecast outperform over several years. we still believe the global economy is going to avoid a recession. other major markets expect will fall into recession. we are optimistic that the premium for investing risky assets remain positive. nejra: the of the conversation is around the fed. we look for guidance in terms of speakers. around this issue of having average inflation targeting in comfortables being with overshooting inflation given how hard it's been to get inflation up to the target from here, and the environment you .ave jpmorgan do you see inflation overshooting would you be also favoring tips and gold in that environment? i think it's difficult

see a strong upsurge inflation. the labor market is already very tight for me -- tight. it simply isn't passing through too much stronger inflation. at this point. it's difficult to see if that would happen. even with the u.s. economy turning down. it's hard to see a lot more inflation coming through. i wouldn't necessarily favor tips. manus: we are in this new paradigm of inflation. thank you so much. let's get the bloomberg first word. theresa may has again delayed a parliamentary vote on the brexit deal. it won't take place this week.

she set a new deadline of march 12. that 70 days before the uk's set to leave a year. if the prime minister can't get thatl above the line, would push the uk's exit until 2021. warren buffett says he wants to spend berkshire hathaway's cash on a giant acquisition. he lamented what he called skyhigh prices. willid the berkshire become a significant purchaser of its own stock. doesn'tt trump says he expect to loosen sanctions on north korea. kim jong-un has made little secret that is key goal for the haiti to ease sanctions north korea's faltering economy. he's currently on route to vietnam for a second meeting with president trump. green book, from about race relations in the 19 60's, won the oscar for best picture.

the spanish-language film still is the bragging rights. it won three awards including best director for alfonso cuaron . beat glenn close. local news toy for hours a day on air and at tictoc on twitter. more than 2700 journalists and analysts in more than one of 20 countries, this is bloomberg. thanks so much. let's get you a recap of what has been happening in china. seen the csi 300. and they, as it both entering a bull market. the stock turnover in china still surpassing $900 billion -- better billion yuan, the most since 2015. we had the trade truce announcement admin a thing driving markets today. we're going to get a reality

check. it might pick up the bubble of enthusiasm. this is what we have for you. to the dividend. we speak to francesca mcdonagh. she joins us certainly. certainly.

manus: 7:20 a.m. in london and dublin. 39 minutes away from the start of the cash trading day. cehic.i'm nejra at the mobile world congress in barcelona. the bank of ireland has -- they haverlying

boosted their dividends to $.16 per share. towards a payout ratio of around 50%. join us on the phone from dublin , the bankca mcdonagh of ireland ceo. when you think they will hit that 50% pay out? >> we are reporting are 2018 fully resolved lending's we have creased our profitability and dividends. we said before it continues to be our policy kahlil dukes to 50% out in the more median turn. nejra: to have any marks pacific's and the median turn. ? no yvonne he said

median turn -- medium-term. you are confident about the strategy that we are delivering. median turn strategy and today demonstrates we are delivering against that strategy and going and transforming the bank of ireland. you said you are considering all options. you wanted to reduce the level of bad loans. where are your possible loan sales? we're looking at all options. we managed to improve our book by 24% in 2018. it's now down to about 6.3% of our total book. are the best bank in ireland in terms of performing exposures. we continue to have all options on the table. the made some further progress in assessing potential

alternatives. we will be updating the market once we have news on that. nejra: you got the ratio down to six point 3%. the eu average is around 4%. i'm wondering if you could give us more detail on specific data of how you plan to cut that ratio to 4%. we are confident will get close to 5% iv end of this year. can do that by getting -- working with individual customers as we have over the years to manage it. we have other options on the table. today on those. we're confident we'll get to maybe a bit below by the end of this year. what issues have you seen

on your u.k. business on the risk of a no deal brexit? has lending stalled? other any cracks in the wall of lending in the u.k. biz? wexis: -- francesca: continue to grow our total lending to customers in the u.k.. part of every discussion we're having. whether that's in the u.k. are in our home market of ireland. i don't think anyone can be definitive on brexit. there's will documented uncertainty. tos directly correlated clarity on brexit. it's difficult for us to be definitive. there's two things we can be certain of. one is our readiness as an institution. are brexit ready and it's taken steps to what -- whether in all measure brexit. we launched last week a 2 brexit fund to support

smes on the island. but also to prepare linzie plans before brexit and look at responses to brexit. while this been a lack of clarity on brexit and ireland, they've deferred investment decisions. we see once clarity is provided, there will be scope of some investments to maintain competitiveness. nejra: quick question on your cost income ratio. the target of 50% by 2021. should we expect a staff cuts this year as you had towards the target? reduce costs in 2018 by 3% which is the first time we produced. it's very important step towards getting our total space down to 1.7 billion euros.

have had some reduction in our global headcount. without about a 5% reduction in 2018. it's not been on our front line. we put more of our colleagues on the front to provide the service, support, and grow our business with our customers. i've been on record before saying i think for many european banks there be fewer people working in banks in the future and there have been the past. that's a reflection of changes in consumer behavior. don't have a target for headcount reduction. we continue to recruit, we continue to invest. but total headcount has reduced 5%. thank you so much. the bank of ireland ceo. that's it for daybreak europe. the european open is up next. i will be on tv with more programming.

workyou're traveling to you can catch us on bloomberg radio. manus and i will be back with you tomorrow. this is bloomberg. ♪

>> good morning and welcome to bloomberg markets. i am matt miller here in berlin. today the markets say let the bulls run, china runs out of the gate with index is up 6% but europe is set for muted gains. the trade less than 30 minutes away. ♪ matt: substantial progress, president trump says he will extend the trade truce with beijing, but a