referendum. trade fatigue. share stumble as president trump downplays his own optimism over a trade deal with china. jay powellit testimony this afternoon. standard charter shares jump in

hong kong as the group announces $700 million in tax cuts are 2021. the ceo joins us exclusively on set this hour. welcome to "bloomberg daybreak: europe." profits just before christmas and they managed to actually beat on the numbers for the fourth quarter. so this is it. 630 million euros. the estimate was for 520 two euros. this is a very first look at the numbers. this is the guidance. adjusted ebit will be slightly higher from 2018. that is significantly important, raising the dividend. the market is 321.

you have the auto slump going on. that really has hit them when you got the profit warning. the fallout from u.s. china trade pact was the big issue for them. let's see how that opens later. have a net income of just over one billion swiss francs in terms of the net number. so the increase in net number is up by 7%. the net income, 1.08. that is double nickel. it's just over one billion swiss francs. a dividend of 16.5 swiss francs per share. assets under management. assets are by third parties.

these earnings keep rolling in. nejra cehic is in barcelona for the mwc. great day yesterday for you. we kicked off today -- how is the agenda looking? are they talking about one way? are the -- huawei? are they talking about trade? good morning. good to see you. nejra: good morning. great to see you. we had a little bit of a malfunction at the top. the second day of coverage. the big focus today is going to be the keynote speech which kicks off at 8:00 a.m. london time and 9:00 a.m. local time by chairman.ng huawei why is huawei so important at this conference? huawei makes the equipment that will enable this five g technology that a lot of people are saying is going to power the fourth industrial revolution and lead to the internet of things, , autonomous car, and

much faster download speeds, as much as 10 times faster than 4g. what has been hanging over a lot of the conference is the fact that the u.s. has been calling for its allies to actually drop huawei equipment from the next generation of 5g. they are confirmed about security, and espionage. huawei has repeatedly denied any role in doing it. 5g is a huge focus. i spoke to a number of ceo's and what they were saying is we need to go on evidence of preparing for smaller eventualities. we cannot judge one vendor without that evidence. i will be speaking with the nokia ceo. a few other big interviews coming up. in the meantime, i need to just be cap. we had full-year profit rising 28%. it did miss estimates on that full-year profit.

the key thing here is standard charter announced plans to reduce cost. he will restructure operations and markets including south korea as part of a long awaited plan. we are talking about an aim to cut $700 million in costs. we have seen the shares rise in hong kong for a positive reaction to that. interview with the ceo of standard charter, coming up in daybreak. we speak to bill winters in less than 15 minutes time on bloomberg daybreak europe manus:. manus. manus:the question from our -- daybreak your. -- "bloomberg daybreak: europe." manus: how overdone is the cfi 300? the superlative is pretty amazing. you are looking at 15%. these are the markets we are keeping an eye on. the biggest volumes in 1929.

oil had a trashy day yesterday because of mr. trump. further on the downside. take it easy. that is the message on the two meet from donald trump, and down we go. so really, these equity markets are in focus. are we overdone and overblown? i have the cio with me. he says we have taken risk off our developed market positions, but they still want to be long em. nejra: yesterday, we reached a high on the s&p 500. the futures were a little softer. ay we saw in the markets, the talks are ongoing. some of the steam coming out of the markets. you are seeing safety for the 10 year treasury yield, again being bid.

moving seen tables higher on the possibility that theresa may might be considering an extension to the brexit deadline. and of course, jeremy corbyn backing a second referendum. now, let's check in on the markets in asia. juliette saly in singapore has more. how is it looking? juliette: as manus says, we are seeing a little bit of upside in late trade, up by around .2%. there have been some lines coming through the pboc in the past couple of hours, essentially pouring a little bit of cold water on the views that deleveraging is dead. elsewhere, you are seeing weakness across asian equity markets. coming off a very long rally we had seen, markets have been higher for six sessions in a row. that was the longest winning streak in a year. we are watching indian assets as well because we saw indian stocks and the rupee fall after there had been renewed tensions

on the border between india and pakistan. let's have a look at some of the stocks we are watching in detail. yesterday, it was all about these chinese brokerages surging after we had president xi specifically singled out the financial sector. a little bit of easing coming through from a lot of these stocks that hit their daily limit yesterday. we are seeing a lot of buying in the health-care sector after the u.s.by roche for technologies and a new bio drug coming through. apple downside, the supplier technologies forecast a bit of a weak first-quarter number. that sent its share price down by the most since 2008. manus, nejra. nejra: juliette saly in singapore. thank you so much. now, stocks are reacting to a variety of geopolitical risks. donald trump raised the possibility of finding a new trade deal with xi

jinping, but he says an agreement might not happen at all. theresa may is considering a plan to delay brexit and stop the u.k. leaving without the deal. let's get our guest take on the markets. joining us now is the mliv team leader for india. great to have you with us on the show. we are seeing the risk rally that we saw yesterday. is it mainly the trade headlines driving the sentiment? >> absolutely. it just goes to show that it is really a very precarious situation at the moment. sentiment is weighed by the two fro's.froze -- to's and itre is a situation when comes to stocks. in china, aside from the everyday developments in the u.s.-china trade situation, we also have the fact that its economy is slowing down a little bit. we have seen signs of that coming through in the data recently. there is the question over deleveraging.

the pboc has reassured that it is still going on. there are considerable questions in the markets over what's going on in that situation. and you put all of that together, it really does make for a bit of an on sure -- unsure living. whether itlongevity, is a positive sentiment that we saw earlier to the start of this week which can continue despite all these other fundamental and longer-term issues for this particular market. manus: good to see you this morning. we took one of the charts from the gtv library. this is the sweet standard deviation move. the one thing we saw this morning is the amount of thisage being pumped into chinese rally. has that been concerning some of the analysts out there? absolutely, manus. it is the structural reforms they are trying to enact as part to become mores

market-friendly globally. it does tend to worry international investors because it kind of goes against the big push they have been trying to make the last few years. in some ways, it is seen of us -- as a scale back. it is hard to tell because there's a lot of moving parts going on in china. the pboc reassuring investors that no deleveraging is going on, but when you see these little signs going on, it is hard not to question what is happening on that effort, and therefore, it is a factor that will be weighing on investors. we were keeping a close eye on china. the asian assets in region might be most sensitive to where the trade talks go from here, either in terms of the sinkingis it lifting or

or both? kristine: some of the reason for instance south korea, japan, now particularly exposed to the trade situation given their proximity to china and that market, but as a whole, asian stocks are probably quite susceptible to what is going on in that situation, and it is a little bit of a -- haveis kind of what we seen in global equity markets save for the u.s.. europe is another market exposed to the twos and froze -- to's fro's of the situation. it is the short-term driver of sentiment and likely what will be driving fact and whether that continues depends on each of the fundamental factors driving the region.

there are interesting risks we have seen for each. on forand what is going the continental european politics, especially with the run-up to the parliament elections. it makes the differentiation that is an overarching driver of sentiment. it is trade at the moment and would be for the next month or so. the markets are constantly trying to debate which assets to own. rollingty markets are back into bull territory. they are flashing something else in china. fidelity's are ready to dive into the market. they say it is not cheap. absolutely. we have seen signs of that elsewhere as well. there were some comments from warren buffett saying he would

rather own fox over treasuries. then you have some conflicting comments from analysts pointing out that the earnings situation is looking like it is weakening. it's quite a question. it really depends, for instance, it's a debate between fox and -- of course, the fed is a big , a driverall of this of what other central banks might be doing next. we are still debating the state of quantitative tightening. they are advocating. we will see what happens there. manus: thanks for joining us. leader in the indian region. a $700 million plan to cut costs. can management of standard charter convince investors they can boost the long-term earnings growth? we've got an exclusive interview

for you. that is next. ♪

manus: this is "bloomberg daybreak: europe." i am manus cranny in dubai. nejra: and i am nejra cehic in barcelona. manus: let's say you an exclusive conversation with the ceo of standard chartered. they restructured the operations in markets including india and south korea. francine lacqua is joined by the ceo. very good day. good morning. i am delighted to be joined by bill winters. what you put at

out to investors, $700 million of cost cuts by 2021, where is the bulk of it coming from? bill: the cost cuts are part of a broader plan. we are focusing on getting our returns above 10% by 2021, which we are well on the way to doing. it is now a superstrong bank. i cannot tell you how excited i am to be there. we are through the really hard restructuring we needed to do to get the bank clean. we need to take the next steps to complete our journey. you mentioned would be one part of that. this is $700 million over three years. basically allowing us to fund the substantial investment program that we have had for the past three years and will continue to have. francine: how do you actually look at it? now we can grow? i woulde hard part -- not say the hard part is gone. the next part will be hard as

well, but a different kind of hard. streamlined organization, get it positioned for real growth. we talk about $3.2 billion over the past three years. it's not about cost-cutting. it's about reshaping the operation for real growth and that has to do with leveraging our great demonstrated core strength with our global international network, which is unique. it's possible for someone to replicate. they are growing and double-digit's today. these are high return areas and they are now representing well over half the bank, having started from well below half the bank. the objective is to continue to grow that good stuff. at the same time, continue to reshape the rest of the organization. they are still pulling returns back. you talk about growing the good stuff, this is organically. could it be an acquisition? everything has been

organic. we would never say it we wouldn't look at adding something that fit neatly into our footprint somehow. francine: would it be and will management? -- wealth management? bill: it could be. the markets recover, we have a pretty good penetration. it is an organic strategy. management, we think of it as a product. managed byking is the same person. there is an interplay between the two. the wealth management products are distributed to our retail channel. product with two client segments. -- what does that mean? are you selling off? bill: we identified 20 markets that are in this book it where

we are a local bank. it is also part of our global network, but we are not fully scaled in the local operations. typically not fully scaled in retail. we have a super network business in these markets. we have a good, trusted local business. next stage of our restructuring, we are focusing on what can we do to get those businesses up above cost and capital? francine: cutting back on the? -- them? bill: investing. we will be attacking capital. we will be looking very importantly at ways we can partner with tech companies or e-commerce companies. we take our relatively small-scale businesses and plug them into a much broader reaching e-commerce network to deliver our products to many more clients and do that with

superior analytics. francine: has it been difficult to keep costs down? bill: it's a challenge to get expenses out of the base. much more efficient than we were three years ago. we are shifting our focus to productivity. it is not about stripping out streamlining the organization because we have done those things. the next that is to be engineer our processes to get a lower cost per unit and higher income per client. francine: is that why you are moving some employees? full-time employees concentration, reducing that -- moving them out of london? bill: the have headquarters in london, operational headquarters in singapore, a very important regional hub in hong kong, our biggest region, and in dubai.

we have accumulated a cost base in some of these high-cost locations. what we will look to do is to headcounty cycle the from these high-cost locations and to other lower cost locations in our network. it is more likely a to be a rotation. for example, in singapore, we moved substantial numbers of people. over the past five years or six years. the headcount continues to go up. want toother things we do closer to our operational well. they can be done in lower cost locations. francine: how much pressure do you get from major investors to actually have better returns? bill: the pressure we put on our songs is at least as great if not greater than the pressure we get from any shareholder.

we are very impatient at standard charter. my partners are singularly focused on getting it up above 10% sooner rather than later. we have a good plan to do that. thereant to see us get and so do we. francine: one is the one thing you need to feel better? the u.s.-china trade relationship? emerging markets? bill: we have a number of businesses that are very market sensitive. goes upth management and down. we have a more difficult fourth-quarter in wealth management. we have started 2019 on a solid footing as markets have begun to recover, so better markets would make life easier, but you cannot have better markets forever. we know that will be up and down. there are no excuses to not hit the targets we set. good economy, bad economy, trade tensions, no tensions, we have

the potential to get the cost of capital plus return, and that's what we're going to do. francine: there is so much speculation about m&a, merging with someone. is there going to be a consolidation phase in your industry? bill: is not necessary for us. that's the good news. our strategy is taking what we've got and going from ok to great. it's not necessary for us to achieve these or fill in part of our network. there will be consolidation in the european banking industry. this is the capacity in europe. some consolidation over a period of time to happen in asia as well. perhaps we can play a role in own as we regain our financial footing and get a position that would put us in a better position to be the acquirer. there is no consideration from our side. bill: bill winters, thanks so

winters,rancine: bill thanks so much for joining us. coming up, we talk brexit with theresa may set to delay brexit. that is next. this is bloomberg. ♪

manus: this is "bloomberg daybreak: europe." i'm manus cranny in dubai. nejra: and i am nejra cehic in barcelona. you.: a very good day to we have got more breaking news. we are going to talk about the markets in just a moment. numbers?s are they the magician numbers? is the first line that comes through. and in terms of their outlook for the markets, they see europe and auto markets are stable. 80% of their revenue comes from europe.

latin america will drop by approximately 1%. the dividend payout -- they are talking about europe stabilization. $5.69 billion. that is a little bit ahead. opalis the man who bought just a cover views -- couple of years ago. 20 years of losses for general motors. how is the u.k. going to hit you? launching the brand into the u.s. and canada. increasing sales outside europe. there you go. magician of the auto industry, but of course you and theow who the magician of federal reserve is.

it's jay powell. he speaks tonight. >> absolutely. you know there's a great story on the bloomberg talking about the two camps in terms of where monetary policy goes from here. it matters for markets the gaza can tell them whether we will see hikes resume later this year. the other story is talking about the curves. i know you love a little curve. one is in negative territory. it got a little bit better. go the risk is those curves into negative territory as you go further out. this is the risk. if you do see momentum continue, if they tolerate higher inflation, what could that message do? nejra: absolutely. and to me, if interesting whether you get the flattening and possibly the inversion.

it means different things. and speaking of markets, let's check in on the markets around the world. joining us from our bloomberg -- annmarie hordern. geopolitical tensions in india are escalating today. pakistan claiming and airspace violation by fighter jets. india's ministry gave -- niraj: good morning to you. well, the markets started off lower. therefore, the indian markets started off lower, about 1% lower. it slipped down to 1.5%. you see the rates right now. we have recovered lost ground

from almost all asset classes. .5%.ifty down even the currency for that matter, if you look at what happened, they started off lower. ofy recovered quite a bit loss. a bit of a recovery for the rupee. digestings seem to be the news flow well as of now. i will leave you with this. it doeshem said that if not escalate into anything further, there could be damage on the rupee. back to you. manus: thank you very much. gotarie hordern -- we have

these installed markets taking a pause. a deal might not happen. buled and loaded on the l's side. difference when he four hours makes. we look at the gmm function in the terminal. leadingloped markets the way down 7% as well. we are seeing some muted gains across the csi, which entered a bull market yesterday, but again, across the border, it is a down day. the japanese yen is higher. jumping to a four-week high as theresa may is said to be considering a plan to possibly delay the u.k. exit from the european union. that deadline is set for march 29. i want to talk about oil. another story i know you know very well sitting in dubai.

do with everything to president donald trump. he took to twitter yesterday, telling opec to relax and take it easy when it comes to prices. -- you canatility see volatility really jumping. the big question is will opec decide to possibly increase production? say they saw this. washington was asking them to keep the tabs open. donald trump decided to grant waivers. we saw the price collapse. if they do not heed his advice, you can expect more tweets. nejra: thank you so much. shah and annmarie hordern. annabelle jewelers in hong kong . >> kim jong-un has arrived in hanoi for his second summit with

president trump. will develop on the previous meeting between the two. the two sides have not even agreed on the meaning of denuclearization. asked a judge to hold elon musk in contempt for violating an agreement to get tesla approval for social media posts that could impact investors. they claimed he breached that deal with his tweets about teslas reduction outlook. sec would raise the earnings transcripts. the latestrida is voice to warn of the dangers of yield curve inversions. right now, the u.s. economy is in a good place. bloomberg where the fed policy is going next. >> the only from that matters -- are they going to go up and are they going to go up a lot and are they going to go up fast?

my guess is they will raise them a little more, but i never thought it was going to go up far and fast, and i still don't. president holds the edge in early election results, but the main opposition claims the outcome was manipulated. the results show he is leading his main challenger by 51% to 46%. the final vote tally is expected later today or tomorrow. 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. manus: thank you very much. let's get you set up for the day ahead. mark carney faces the treasury select committee. the boe governor's his likely focus on brexit.

second referendum. those are the debates and issues. powell gets his semiannual monetary policy report to the senate banking committee. the first of two days on capitol fed appearances for the chief. what would you say about the tolerance for inflation? and the chinese bull market is back. the index is fluctuating. again follow president trump's in theement of a delay tariff deadline and the possibility of a new deal. with today's stall, who has been buying? dani burger has a look under the hood of the market. good morning. contours ofg by the this rally, it does seem it has been driven by speculative flows. have a lot ofe mainland buyers. we can tell that because the gains really stay confined to the chinese markets. i have correlation with the hang seng. it drops off yesterday.

since 2016.drop we are more likely to see some versus global asset managers that might sort of stick around and sustain the rally. in fact, already seeing some weakness on the csi 300 today. open interest on the futures. also a big point to note here. essentially, the demand for the gained as the csi 300 high as 2015. what this tells us is we are likely to see a lot of automated trend follower programs in this market because this is really where they play. that is not really driven by fundamentals. weis fragile especially as head into later this week and get more data points. dani burger, thank you so much, highlighting why that rally might be fragile. today, we are asking the question on mliv -- will trade

or domestic stimulus drive stocks? the csi 300 is up almost 24% year-to-date. can the rally continue? reach out to us on tv on your bloomberg. on brexit.he latest theresa may is said to be considering a plan to delay the u.k.'s e.u. exit. bloomberg understands the possibility of an extension will be discussed at a cabinet meeting today. meanwhile, jeremy corbyn has from hisressure lawmakers and agreed to support a new brexit referendum. let's speak to bloomberg's managing editor for markets. great to have you with us. all this equates to the pound hitting, what, a four-week high today? paul: the pound is picking up gains.

also, more noticeably, stiffening against the euro. war than one year high. than one year high. what we are seeing is the chance of and no deal brexit. the scenario being priced out here. for currency markets, the conclusion is a delay or softer brexit is generally good news. this is while we are having short-term gains, how much is this uncertainty going to be out of the u.k.? we could see the potentially good reach kind of coming down at the same time. manus: i just wonder, if you the maps for a second referendum, we're getting a bit ahead of ourselves.

get ast 10 tories to majority. we know at this moment, and i emphasize that, at this moment in dubai, the math does not stack up for a second referendum at the moment. if we were starting to price in the second referendum properly, you would see sterling flying a lot higher than it is at the moment. at the very least, there is optimism. you are right. would take aat long time to organize, and there is no guarantee it would reverse would be the optimal situation, but you know, ultimately, there would be a lot hanging overnty the u.k.'s economy, hanging over financial markets for a lot longer as well. that is the currency market.

talk a little bit about the picture with gilts. when it comes to gilts, we have to factor in the expectations for the boe's as well. paul: i am interested to hear from the boe again. i would sneak in a little rate hike. i know they have been anxious to raise interest rates for a while, looking at them wage growth situation -- the wage growth situation. that started to tail off in the data. the month ago, you might have -- get another hike on the table. otherwise, that could put a damper on the situation. the situation is a little bit less clear. the economy and not looking so good. before me there was some clarity. not coming through. if that is the case, then it is good news.

manus: if i do not get this question in quickly, i will lose for the day. it is almost turning green. stephen gallo says, actually, short dollar is the path of least resistance. and once the fx market get a hold of the narrative, that is it. i am paraphrasing. the dollar is toast. there is no other option to go short the dollar. i would challenge that. from introduced two-way risk again. even clear.ot if you think about it, what was the dollar -- would the dollar actually we can against? -- we aken against? other currencies are looking better. we think about the idea that the fed is on hold for a while, but at the same time, other central banks all around the world are also stepping back, and her economic data is worse.

that is weighing on those as well. the ugly competition at the moment, it is one of those situations where none of the major currencies, none of the g3 looks particularly attractive. further afield maybe, it's all the rage at the moment. choose your funding currency carefully. that is where you want to go if you're looking for weakness. manus: thank you very much. great roundup, paul dobson, bloomberg's managing editor for markets. brexit risk. it is all there. coming up on the show, changing trends as electric cars power up the auto industry. we will discuss the future of energy. this is bloomberg. ♪

manus: it's "bloomberg daybreak: europe." i am manus cranny in dubai. nejra: i am nejra cehic. barcelona. let's get a check on the markets across the board. taking a look at asian equities, we are seeing a bit of a mixed picture in the session. we had a strong rally yesterday on hopes with the trade truce, the extension of the deadline. today down .4%. the yen is bid along with treasury is. a bit of a bid for the safe haven reality kicking in. puttingt trump perhaps in some two-way risk into the market. the rupee coming under pressure. border tensions with pakistan have been flaring. manus: day two of the drop of crude. we saw a crash as mr. trump tweeted out, "take it easy, boys and girls." four-week high.

it might be a move for a second referendum. you have had such a cracking run. we close out a november high on the cash market last night. let's talk about oil companies. they had been reassessing their long-term future, working to reinvest himself. the appetite for electricity, particularly in the auto industry, is one of the driving factors. they are looking to ban sales. electric cars sales more than doubled on the year. topictter to discuss this than -- great to have you with us this morning. you know, i quote the numbers for china.

you lectureumber of cars this january that we saw last year, but it is still a minnow in terms of the election fixation story. we could face a moore's law moment in electric car history over the next 10 years. >> definitely. around 2% of global car volumes were electrified last year, but it is growing dramatically. you talk about the numbers from china last year overall. seeauto industry did not anything. the only thing that group was electric vehicles. a relatively soggy backdrop for the impacts of trade wars, etc., we saw dramatic growth coming from electric vehicles. over the next two years to three years, the growth we have been seeing in china will start to be replicated in europe and really driven by regulation. we have the 2021 emission

targets, which i am sure you are familiar with. they are going to force the car companies to shift. average sellers will have emission levels of no more than 95 rounds per kilometer of co2. the plan was to sell more diesel cars. the only real way we believe that the industry can avoid substantial fines is to begin electrifying the fleet. there is no surprise. mini coming.mw this is all part of making most markets, and therefore, it gives us some visibility that the trend will continue to accelerate. nejra: alastair, good morning. i might get onto a couple of questions in just a moment. investingu actually around the scene of electric vehicles? are you doing it via the

materials needed for the batteries? alastair: we are doing it across the board. we are excited by the growth in electric vehicles themselves. we think there is a 50 fold increase in the size of the market. 20% per annum growth. we are more excited by the opportunity of the longer value chain. we are expecting a multiply effect. some of the technologies that go into these new vehicles, all the infrastructure around that. it is 15 to 20 times as many components. not even going to try and work out the market. manus: tell me this, alastair. in my part of the world, there is this huge moved to implement cascadingk about the solar prices, wind prices, etc.

how do you invest around renewables? is it directly? what is the vehicle? how are you seeing the best return? invest across the capital structure, both direct into the projects, and myself, i looked at the listed equity opportunities. one of the key benefits is the market is underestimating the pace of change. this has been happening all long time. they thought we were taking until 2030 for the world to install 200 gigawatts of satellites. in reality, we surpassed that in 2015. and it is happening still. bp put their energy outlook out very recently. over the last four years, they upgraded them by over 50% for forecasts. think the markets are underestimating the pace of growth. , iterms of where we invest

is across the value chain. we are looking at manufacturers of that equipment. we are also looking at the companies buying that equipment, transitioning their portfolios. we think the ones that are taking a head start will be very well-placed for that future. very briefly, is the market underestimating the potential for renewables as well in terms of meeting that energy to drive five g? is going to be a real game changer for the transportation space. as i'm sure you are aware, 3g, 4g, it was all about getting faster networks. 5g will be faster but it also allows a lot more complexity. it is a technology waiting for an application. alastairastair --

bishop. blackrock portfolio manager. delighted to have you with us. thank you so much. coming up, we will talk more about trade and more from barcelona. this is bloomberg. ♪

manus: good morning from dubai, this is "bloomberg daybreak: europe." nejra: i am nejra cehic, these are today's top stories. -- gettingocusing on our returns above 10% by 2021 which we are on the way to doing so we spent the last three year -- three years cleaning up standard chartered. $700: pledging to cut million of cost, we will bring you more with our exclusive interview with the ceo. you turns galore, theresa may is considering a delay to brexit. with jeremy corbyn backing a second referendum. trade fatigue.

shares stumble as president trump downplays his own optimism over a trade it with china. markets await the jay powell testimony this afternoon. let's go to the breaking news india, tensions between india and pakistan are escalating in an incident that described asad grave aggression. india has said its fighter jet destroyed its counterpart in pakistan. market -- in terms of reacting, 300e militants killed in pakistan, the latest land -- line from the pakistan side. thehe latest line from

indian side is this is a preemptive strike, information about more terrorist activities. markets are buying that because they are not reacting to negatively to this piece of news, in the morning when the piece of news came out or the word from pakistan came out, right now a measured move for almost all of the key indices, .51%. the bank showing -- nothing too dramatic out there but keep in mind the money markets, that is the reaction you want to watch. moved, and todly the currency which open lower at 71.30 to the dollar, so the rupee is covering a lot of lost ground. i day like this you would have some [indiscernible] it was par for the course and markets reacted.

recovering some lost ground. and this is the extent of the aggression from either direction, do not expect too much of a negative reaction on equity markets as well. back to you. nejra: thank you so much for that important update from our bloomberg partner in mumbai. thank you. i am at barcelona, always chairman will be speaking later, that is a key area of focus with the u.s. asking a lot of its telecom allies to drop equipment we has denied any wrongdoing around security and yesterday, i spoke to a number of telecom ceos come at today i will be speaking to arm holdings important on the chipmaker supplied chain, it powers smart phones and the ceo will speak to me a little later in barcelona. also i will be speaking to the nokia ceo, the competitors to

huawei. met his president will join me 11 a.m.celona from london time. let's get to the broader markets. the shanghai composite and the csi 300 rallied to a bull market with risk on a we heard the extension of that march 1 trade deadline. today a little more shakiness into the markets, u.s. futures equity off, the u.s. markets hit and almost four-month high. you can see the picture across europe. dax futures down by the same and cac 40 futures coming on -- under a little bit of pressure as well. manus: the equity markets are shaken, they are pausing for thought. futures, as. bond few options went through last night. we are seeing u.s. treasuries at a couple of pips. the question is this, we are trading a stubborn bandwidth in

u.s. treasuries, that is the latest story we have tonight. will jay powell lean into the proclivity to run higher, windsor slightly stronger and all based on this risk off momentum on the equities side of the market. those are your bond markets, let's get to juliette saly with your asian markets. juliette: we had that strong rally for asian equities six sessions of gains and we are in the red, china's market coming off on the close down on the csi 300, it had been fluctuating but it seems like some lines from the pboc that we should not be thinking the deleveraging campaign is dead, there is a little negativity coming through. where watching indian assets -- we are watching indian assets. we have seen the nifty up by has been generally it

risk off. we have a look at currencies, you can see a lot of movement has been going into the yen and also gold today. the yen has been rising against the dollar, if we can switch that over and then watching what is happening with the rupee, it is weaker against the dollar but traders telling bloomberg they -- there could have been some r.b.i. intervention after we heard a couple of hours ago there had been that attack on the terror camp. and looking at the korean won, it is rising against the dollar ahead of the second summit in vietnam between president trump and kim jong-un, also getting close to its 200 date moving average. manus: thank you, juliette saly asianhe latest on markets. this is your mliv question for the day. will trade, will domestic stimulus drive chinese stocks? we are back in bond market territory, the biggest one get -- one day game -- gain since

yesterday. is it a stun fantasy, fiction, or leverage? us there. as there has been mixed jews on trade talks between the u.s. and china. president trump raising the possibility of a new deal. agreementhe fed, an might not happen. investors are playing a waiting game to see what happens next. they should get a clearer idea on policy when the fed chair is due to speak to lawmakers later today. it is a some -- semi annual testimony to congress starting at a quarter to three this afternoon london time. n emf strategist. how important is it that jerome powell treads or leads into the

dovish line today in front of congress? morgane: we can expect that the fed is in a wait-and-see mode at the moment, waiting for more trend inn the economic the u.s., but i think that without any inflationary pressure and growth at close to 2%, there will not be any hurry to go into a restrictive territory. we might expect kind of some dovishness but patients and a wait-and-see mode today. patients -- patience and a wait-and-see mode. we are talking about the williams camp policymakers who would rather see inflation exceed the target i-4 resuming

rate hikes, would you say that you are more on the side of the williams camp given what you just said? morgane: one more rate hike is .ossible the timing is uncertain and without any inflation pressure they will probably wait and see beforee cpi to peak hiking one more time. the endrtain evidence of this year or early next year. manus: there is this great and we havewe have a note out this morning in our fed rates, it is an unloved part of the yield curve, they dipped into negative territory before christmas, it has never recovered. it has gotten a little bit

better. are you concerned that you could see a cascade of negative curves? have the fed not done enough in terms of dovish messaging to stop the rot, so to speak? curve isthe yield between -- between the u.s. will remain stable as it is now, quite flat but i am not -- and there is a convenient -- complete inversion of the yield curve because the fed is posing the tightening of its monetary policy. at this point, i think it is hard to see any trends emerging from the fed because they are keen to wait and look at the data before taking any next steps. let's talk about broader risk sentiment, we are seeing some risk coming off the table

after we saw that strong rally and chinese equities, the csi 300 and the shanghai composite entering of bull market around the trade headlines. every day we get new development son these trade headlines, are you getting a sense that investors have a stronger or weaker proclivity for risk at the moment? investorse are seeing slipping from risk off mode as there is develop mend on the trade deal or exit emerges. it is hard to see a trend from the trade perspective. and overall trend on the etf market suggest an appetite for halt -- high-quality assets and income. suggesting probably the reverse rotation from equities to fixed income. this will be the theme for 2019. in the etf world. colleaguesof your

suggested that once the markets deal, whicha trade takes me to the china side of the equation which is that -- the trajectory of the yuan, we are in golden cross territory. are we going to see a strong yuan and is that a challenge to the rally on the equities side in china? morgane: it is definitely a challenge for china because as trade talks make progress, i think the risks are now skewed toward china. and the key point will be about the currency deal with the u.s. if it is a to restrictive currency deal whereby the yuan this willat freely, slow down the globalization of the yuan but also kind of weaken the monetary policy in china and

the policy response if there is a significant slowdown in the chinese economy. so chinese equities will be driven by this risk off sentiment and risk on risk off sentiment alternatively. in the month ahead, the focus will shift away from the trade europe as aok at main driver of chinese economic growth. nejra: our guest stays with us. let's get the bloomberg first word news with annabel. theresa may reportedly considering a delay to brexit. the u.k. leaving europe

next month. it will be a major climb down. she has insisted that britain will leave the block on schedule. this comes within hours of another major u-turn, jeremy corbyn has decided to back a second exit referendum. tohard clarida is the latest voice the dangers of yield curve inversion. told lavert hill's thoughts on where fed policy is going next. andre they going to go up are the going to go up a lot and go up fast? my guess is they will late -- raise them a little more but i never thought it would go up far are fast and i still do not. annabelle: kim jong-un has arrived in hanoi for his second summit with president trump. they hope to develop on the previous meeting it not even the white house is counting on a breakthrough.

venezuela's neighbors are pushing back against the idea of military force to resolve the nation crisis. the u.s. has refused to [inaudible] the actions were those of a tyrant desperately clinging to power. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. and a and matt. i will pick it up from here. coming up on the show, the trump-kim summit. the latest from vietnam, preparing for the meeting as he has arrived. that is the motorcade and kim jong-un arriving after today's on the train. if you are traveling to work, what are you going to do? nejra: tune in to bloomberg

radio on your digital device or on dab digital radio. i will still be on radio from 8:00 a.m. london time. this is bloomberg. ♪

nejra: it is 7:19 a.m. in london, 8:19 a.m. in barcelona. there 40 minutes away from european open. inus: i am manus cranny dubai. let's get more on the geopolitics story, the u.s. president mr. trump and north korean leader kim jong on will meet in hanoi following a singaporeummit in last year. kim had arrived this morning and trump is expected later today. is chief asian correspondent on the ground in vietnam this

morning. give me your sense of the atmosphere, we saw the traditional waiving of paint pump comes -- pom-poms yesterday. what was the reception like? .tephen: it was quite similar people were handing out american and north korean flags around -- along the route here in central hanoi in the old district in front of the hotel where we were stationed for much of this morning. we were right there, we had the washing --ird seat watching the motorcade arrived. arriving with a complete motorcycle police escort as well. followed by large military vehicles with gunter its and the like. it was quite a strong man arrival. to the hotel. he might take a bit of it to her tour of hanoi.

he took a late-night stroll along the riverfront in singapore and to marina bay. today, who knows, maybe he will be along the lake here behind me as well as maybe take a stroll along that bridge, the red bridge you see behind me. tomorrow we are hearing he will be meeting with the enemies leaders including the prime minister of -- the primary stir. south korean media is reporting that could happen at the ho chi minh mazza lamb which is next door to the presidential alice here in central hanoi. that is the atmosphere and we saw the great pictures alongside you but are we expecting any kind of breakthrough question mark bloomberg reporting the white house might not be expecting one. stephen: the white house

spokesperson has been downplaying the expectations saying it is our fault, we in the media. dairy say trumping up the expectations and they are ramping down the expectations. usually when you have a summit like this, the deliverables have already been arranged by the negotiators but that is not necessarily the style of these two gentlemen, donald trump and kim jong-un, they want to meet face to face and perhaps even one-on-one and then seek out their own concessions from each other. both sides, neither side giving up much right now and donald trump has tweeted or has said recently in the last couple of days he is not going to relax any of those sanctions on north korea. that is what kim jong-un wants, he will -- needs the relaxation of those sanctions if he is going to give up any of his nuclear arsenal. a bit of a stalemate, perhaps a logjam will be broken with face to fix -- face-to-face talks but

it is a guessing game. we are expecting more than what happened in singapore but what more will he get? we do not know. whatever happens, you will be across it. thank you so much. let's get a bloomberg business flash. annabelle: thanks. the world'screate largest gold producer offering 17.8 billion. it will review the deal and the plan to take over offers better value. desperation, i do not know where they are coming from thinking they can take on a third piece of complexity. >> this is a carefully concerted process. we have been working on it for a

long time and we have engaged newmont before hand. annabelle: standard charter is reducing costs over the next three years, hoping it will sooth investor concerns after lackluster concerns. it missed consensus estimates. the ceo is seeking to convince investors they can revive earnings growth. another firm investigating laundering allegations following revelations it was under investigation for failing to identify suspicious transactions. the bank said the firm will report results before march 28. that is your bloomberg business flash. nejra: thank you. we have the china foreign inistry minister speaking

beijing. we will be keeping an eye on that as they come through. china is prepared for potential xi-trump meeting. we have heard that the meeting could happen but he said a deal might not be done. our guest is still with us. we talked about the risks around trade and you are seeing the seamen etf's might be money moving out of equities and into bonds, another risk we are talking about is brexit, we have seen the pound hit a four-week high on these reports that theresa may could be considering an extension of the brexit deadline. how much more upside could we get into the pound? it seems as if this extension is what markets were pricing for. is icing ae market decline in the currency in the pricing aalso it is sterlinguptick in

versus major currencies. it is difficult for now to say how much the pound can rebound. it was -- it would depend on the outcome but definitely from market perspective, the brexit scenarios are queued toward an or asion of articles 15 soft brexit which should support the sterling in the next weeks or a month. in 10 seconds, does it matter if it is a long delay or short delay, which would be the favored issue for the markets? morgane: a long delay for sure because it creates more uncertainty. manus: thank you for being with at the investment strategist be a mogul asset management.

seeing're [indiscernible] we have some cracking interviews.

anna: good morning, welcome to bloomberg markets, the european open. we are live from our european headquarters in london. alongside matt miller in berlin. matt: the markets sake give us more fuel for the fire. russian optimism fades. the pound is gaining on the possibility of a brexit delay. the cache trade is less than 30 minutes away. anna: risk rally fatigue,