>> good morning from bloomberg's european headquarters, i'm nejra cehic with manus cranny live from dubai. this is bloomberg "daybreak: europe." note to no deal. u.k. parliament votes by majority of just one to block the chance of written crashing out of the e.u.. theresa may and jeremy corbyn hold constructive talks. president trump prepares to meet china's vice premier. optimism pushes u.s. stocks to a six-month high. tocredit is preparing a bid take control of commerzbank, according to the financial times.

manus: welcome to "daybreak: europe." the bond market is begin to settle itself. we've done a lot of work this week. andif there is a trade deal a timeline for compliance between united states and china, the question is simple, do you need to rerate the fed? the numbers were disappointing. tomorrow is job numbers. we are up 11 basis points. ,e have a new bloomberg survey nearly 25 basis points lower than we saw at christmas time. the bond market is repricing. can a trade deal hurt the bond market? that is the question. goldman sachs said you have had a good brine, 12% return over

the past five weeks in iron ore -- you've had a good run. goldman says they are closing their bullish bet in the market could face some selling pressure and they went long earlier in the month of february. we have imbued so much market,ess across the now you need a bit of delivery. we put on 5.5% of wti over the past three days. on the floor side of the trade, you got nigeria and iran, suggesting support for an extension on the deal. nejra cehic, good morning. tora: good morning, i want pick up on two things you said, one about the trade deal derating the fed. we've wondered what's been markets, it equity could be should start repricing the fed. what we've seen this week is rally pause and a positive day

after u.s. equities jumped to a six-month high to a little bit of a pause to the risk rally in terms of these futures. the same with european futures and asian equities to the same extent. cable rose today. deal, constructive talks between theresa may and jirga corpsman -- no to no deal. constructive talks between theresa may and jeremy corbyn. expectedbetter than surge of pmi out of the eurozone from the four biggest economies, pushing the euro higher. how long will we stay there, the euro halting gains and the dollar rate -- remain steady against major g10 currencies. let's turn to our top corporate story, unicredit is preparing a rival bid to take control of commerzbank, according to the

financial times. to have youreat with us through the details. reports say this is not a planned gatecrash. >> that's the word the financial times use this morning with its story, according to people they have spoken to, they don't want to gatecrash the deal. seeing that they are basically waiting in the wings. if the talks were to falter or breakdown, they are ready to step in and make a bid for commerzbank. it has been on their minds for a while, but now would potentially be a good point, considering the fact that many and germany say this is not a deal that could work. there is a lot of regulatory hurdles. it could mean thousands of job cuts. a report last week had a poll out saying the majority of the public do not back a merger between deutsche bank and commerzbank. ft reported unicredit is waiting to potentially step in. hillaryat this morning,

had a great chart to show this battle for default protection among european banks. banks, at the three deutsche bank and white, unicredit in the blue, and commerzbank in yellow, you can see the battle for default, the winner goes to deutsche bank. right now deutsche bank is the risk is when you look at the cdf. we will track to story throughout the day. financial -- financial times is saying unicredit is waiting in the wings if commerzbank and deutsche bank cannot come to an agreement. ifus: it will be interesting you look at the possibilities for cross-border moves, this would be perhaps one of the most significant. great reporting there on the ft story on unicredit waiting in the wings. juliette saly has the latest from singapore. juliette: a little bit of a path after asian stocks hit six-month

highs. they been on quite a bit of a rally, but today some weakness led by the hang seng. australia also had a week session but we had quite a big rally in response to that budget announcement on tuesday. a bit of a pullback coming through there. a flat day in india ahead of the r.b.i. rate decision. we are expecting to see .15% cut , but the consensus is what is the governor going to say, is the r.b.i. going to get even more dovish than that? let's look at some of the stocks we are watching. chinese airlines in hong kong but did very well today -- in hong kong did well today. the government is to cut levees, which will be a big boost to those airline players. also watching interest-rate sensitive stocks in indy. -- in india. ata motors is higher against flat to down market.

of analysts have downgraded the stock amid his plan to raise gambling taxes and are concerned about the $3.3 billion investment to expand the casino resort on one island. nejra: juliette saly in singapore, thanks so much. the u.k. parliament has voted by the closest possible margin to block any chance of a no deal brexit. in peas voted to stop the country crashing out of the e.u. without a deal, but there is still no clarity on what a deal will look like. corbyn said jeremy initial talks with theresa may were constructive but inconclusive. they met for more than an hour, and their respective teams will talk again later today. there andted to go set out our views. she did put out the government's view, but the whole thing seems

to depend on accepting the withdrawal agreement as put forward at the present time. joining us is anna edwards, thanks for joining us against the early. mean no deal is definitely off the table? anna: we get ever closer to ruling out no deal. their headsatching and saying, didn't a house vote against no deal before question mark that was a litmus test of opinion in the house where this is legislation, a cross party group of mps getting enough support for their idea to block no deal, which means theresa may has to go and ask for an extension. even when she said she would go and ask for an extension, the mps still went ahead with the voting process to make sure she does, essentially. this has angered many of the

brexiteers, as you can imagine. they made it happen in just six hours. brexiteers are livid about the outcome and what's going to happen. they are calling it a constitutional outrage. someone they consider a marxist and self-declared socialist. manus: many people are saying this would be for labour a push toward it customs union. in terms of what they want or might extract as a price for crossing the aisle to her side? anna: we have the wish list, and that's how we should consider it. both are talking about compromise. they say the talks were constructive, but on the wish list, custom union is on there, access to the single market. it doesn't have to mean the

customs union, it can mean a customs union. regulatory alignment on environment of consumer regulations and workers rights. it's not a million miles away from what labour has been saying. only 36 voted for customs union so that would remain divisive if -- even if many of those could be persuaded on board. jeremy corbyn under pressure to put a separate -- a second referendum on the table. teams will be starting to talk in more detail. lots of people raising questions about if you might do a deal, but who would lead the conservative party after her? a nonbinding future relationship conversation, how binding is the decision-making process we're going through at the moment? nejra: you've been saying the next key moment for starling will come how that's when we find out how the initial talks

-- the key moment for sterling will depend on how the initial talks go. there is quite a bit of potential for sterling to rally. quick she don't know how it's going to work out until the actual brexit boxes fully open -- >> you don't know how it's going to work. we don't know how each side is going into these negotiations. are they going into the negotiations with the genuine desire to achieve a result here? or is it about positioning for potential future election? is about the conservative party trying to position to keep brexiteers on their side? entirely possible the negotiations in depth with nothing happening at all. we could be right back to where we were at the start of the week.

so i don't think we should take it as yet as being constructive. manus: simon, good morning. one thing that caught my eye was the shift in two-year yields. you didn't get the same reaction in sterling. how under positioned for a softer brexit outcome is the market? what is the market positioning that you talk to at the moment? simon: people are taking a relatively positive turn toward sterling over the last three months. how many notes have come out saying it's going to be a positive outcome for the u.k. and brexit? i think people have factored in that they believe there will be a good outcome. the dollar at the moment, that's the best benchmark. essentially the outreach price we've been under since the referendum.

outcome know what the will be, a positive or negative price. , we don't know what the outcome is, and believing that we can make it positive, until we finally get some real outcome to these negotiations, i think it is foolish. nejra: what have we heard from europe? anna: we've heard about the extension and the possibility of getting a short one in particular. there may be a short extension, we heard from jean-claude juncker yesterday saying there could be an agreement by april 12, next friday. he did not really mention what happens if it does or he doesn't mention a long extension. he said he doesn't want to risk giving the keys to the e.u.'s future, it's about who leads the conservative party.

to what extent do you do deals with theresa may and expect them to still hold? that is something europe is still wrestling with. we will learn more about that next week in brussels around wednesday in that meeting. manus: there is a wonderful saying, better the devil you know then the devil you don't. host derrick is our guest today. let's get the first word news with olivia. the u.s. is reportedly set to get china until 2025 to budget as the world's two largest economies and closer. the goal is to strike an agreement on the issues that follow president trump and xi to find a deal. millions of facebook records have been found on amazon's cloud service.

a cybersecurity service found that information had been inadvertently posted publicly online. or recently, it has cracked down on the use of user data. carlos ghosn has been rearrested on new charges. the fresh allegations are that he used millions of dollars of nissan's money for his own purposes. the former chairman has been free on bail for less than a month. he says the new arrest is outrageous and arbitrary and that he will not be broken. the reserve bank of india looks back-to-back for a rate cut. the decision comes a week before india's six-week election that kicks off on april 11. the policy decision will be announced at 7:15 a.m. london time and will be followed by a news conference. 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. up, 2025 trade is reportedly. giving beijing time to fulfill its pledges. could this be the push needed to get a deal signed? tune into bloomberg radio in the london area. this is bloomberg. ♪

manus: it's bloomberg "daybreak: europe." i manus cranny in dubai. -- i am manus cranny in dubai. nejra: that's get the bloomberg business flash with olivia. fund two years, the vision did the best -- invested in tech companies. bloomberg has learned there are talks to assemble a second fun. the softbank founder said he intends to raise $100 billion

every two or three years. unicredit is reportedly preparing arrival bid for commerzbank, according to the financial times. the move would come if merger talks break down. it has seen mounting opposition in recent weeks. ft reports plan could be to merge with a german lender already owned by unicredit. tesla has reported a record decline for deliveries in the second quarter. in europe and china, the company struggled to get cars to customers quickly. elon musk plans to accelerate sales with lower prices and quicker deliveries. that is the bloomberg business flash. manus: olivia, thank you very much. bloomberg has learned that american companies would be allowed to wholly owned enterprise -- enterprises in china. top white house economic aid

larry kudlow says negotiations are making good headway. simon derrick is the chief mellon. strategist at we've had a roaring risk on rally on the possibility of a trade deal and the tmi. to what extent would a trade invest a new move lower in the dollar? i do think a lot of this is priced in already. you can see most of the price action going on as relates to markets. i think the positivity is already there. would it impact the dollar? it probably would. everything else in global -- i think youto

would see an impact to the dollar and i do think you would start to see further pressure on the renminbi to break through that level. over the course of the last four or five months, pboc has done a great job of keeping the renminbi against the dollar in that range. it would be interesting to see if it starts to break outside of that. they have expressed some concerns about what would happen. nejra: given that we can draw line between trade talks and the eurozone economy and yesterday we saw the euro move high for the first time in seven sessions , how much does a successful resolution of the trade talks have -- how much potential does it have to support the euro and keep the 10 year bund yield firmly above zero? thing you canst say is that since probably mid

december, bund yields and the euro have completely decoupled. it was this time last your when interest rate differentials didn't seem to be having an impact. you would certainly argue that situation-- the trade in china should have a positive impact, but think again about the last three months. drumbeats on the trade have been there very steadily, and yet the euro is weaker and weaker. the euro has reacted more to that story than to anything else. , at thedds to the story it's a factor. to roll off going

one potential nailbiter, which is china-u.s., and were going to roll onto the euro-u.s. zero is not going to roll over into an easy deal. run-up to the presidential elections were another high profile, and trade spats. europe is an easy one to view in those particular terms. you look at some of the comics that have come out over the course of this week, larry kudlow -- the comments that have come out this week. e.u. asut of the quickly as possible and strike a trade deal. there is an undertone their of what the story is going to go. quite clearly you would expect that to start come and you've got the fact that already we've gotten these horrendous pmi numbers that have come out.

you saw the german manufacturing pmi a couple of days ago. really, really horrible numbers. so the potential for that to go horribly wrong is there. the only flip side is this. how much further is it to the downside for european rates? two,.s. rates, and of the ironically, the dollar has a little more exposure. market start the repricing the fed coming up only the progress but the reaction we been seeing in u.s. equity markets, hitting a six high in yesterday's session, which impacts the national position. last year with the u.s. equity market, the fed was taking the stimulus away. it's something that looks an awful lot like late 2000 and late 2007. you could argue that it was the

positive drumbeats from trade. the likely driver over the , started ine year january as the fed is signaling. the voices that were weighing on equity markets are still there. that would be like concern, they're going to keep an eye on where we are in the cycle and equity markets are not looking that great. nejra: simon derrick will stay with us. coming up, we speak to jack fust co.-- fus don't miss that exclusive interview, next. coming up this morning, we speak one chairman as parliament

blocks and no deal brexit. when you driving to work, tune into bloomberg radio in the london area. this is bloomberg. ♪

nejra: equity markets taking a little bit of a pause. but the mscire asia-pacific index slightly weaker. rally, pause, after u.s. equities hit a six-month high yesterday. manus: we are seeing all these equity markets back to zero. the u.s. has taken a greater waiting out of it all. everything almost ranked ahead the proportiont the u.s. has the world equities, 39%.

what we see in equity markets moved this week has been on the headlines we been getting out of trade. on that note, as the u.s. and china make progress toward a trade deal, the liquefied natural gas sector is paying especially close attention to the outcome. and a dealpioneers between the company and sinopec could be worth as much as $18 billion. it has been cited as a new concession that china could be compared to make to end the ongoing trade spat. joining us for an exclusive ,nterview is jack fusco president and ceo. thank you so much for joining us. could you update us on the latest between a potential deal with sinopec? is it on the cards? jack: we have been very focused on china for some time now.

we are one of the first companies to sign a long-term transaction with petrochina here in china. it has been a focus of mind to make sure that we continue to grow our presence here. while i don't want to talk about commercialonal -- negotiations on air, i can take that we are very optimistic that we have a solution for china's desires to have a cleaner source of energy. is it going to take the trade deal to clear first of all between the u.s. and china before will tell us what the detail is? can you give us some complexion of what that relationship might look like? we have what we call foundation customers. we have 18 foundation customers. askedl liquefied natural on average for 20 years, and my

expectation is that any future contracts would look a lot like the ones we have done in the past. we have delivered over 600 cargo so far, year to date. 60 of them have come to china directly in our expect that we would continue to supply them a -- supply them with liquefied natural gas and it would he between two willing counterparties. when we talk to her chinese counterparties here in shanghai decadesk, it's for over -- when we talk to our chinese counterparties. then thech longer term current trade negotiations between china and the u.s., and we feel like we are on the right side of that in balance as we only export. nejra: understood that you have to make longer-term plans that go beyond these trade

discussions that we talk about on a daily basis as we get the incremental headlines through. if we do get positive news out of the discussions between the u.s. and china, do you expect more dealmaking to come through across the industry? yes, i would expect it to help. i was here back in november of 2017 on the trade mission with the u.s. and was one of the companies that was fortunate enough to sign a memorandum of understanding back then. ofhelps having the support both of the presidents. my expectation is that if the solved, theregets will be good things to come for us here in china. currenthat is the capital expenditure program? we're just looking at some of thesites, building out

sabine pass terminal in the louisiana, have you finalized any contracts that would help you with that? jack: we are pretty much done with phase one of the first capital expansion program, which was seven liquefaction trains, as they are called, in about a $30 billion investment. last year, with the help of petrochina here, we were able to commercialize and expand another train, train number eight, at corpus christi. in 2018, we also have signed six contracts with six new foundation customers for 7 million tons of liquefied natural gas, which is helping us at sabineninth train pass. we have big plans, though. nejra: go ahead, jack.

jack: i was going to say we also have big plans to expand our corpus christi facility. we received a positive and thatntal report will add another 9 million tons of liquefaction at corpus christi. that's the closest to the permian basin in the united states. a good source of cheap natural gas. much, jack, thank you so .ack fusco thank you very much for joining us this morning. let's take you back to markets around the world. agam, the sensex is still at its record high. what is the impact in terms of the markets, and bring oil into the mix for me as well. we are looking at a little

bit of -- ahead of the r.b.i. meeting. off trading come .ighs on an intraday basis they are trending a little lower and we've seen a little bit of weakness as far as the broader markets are concerned. the bank holds on to green and as the u.s. dollar is concerned, we seeing some strength at 68.8. what also stood out is because of the fact that we've seen a rise in crude, we have consequently seen a decline in share prices for oil marketing companies in india and this would involve some of your very large-cap names. all of them are under a little bit of treasure and as long as

crude continues to rise, analysts on the street or of the opinion there could be a little more weakness in store for some of these companies going forward. nejra: thank you so much. you're looking at the latest lines from unicredit and commerzbank. give us the update. >> this is a report from the financial times that unicredit is basically waiting in the wings if the talks were to break down between commerzbank and deutsche bank. they don't want to gatecrash this deal, but they are making some noise that there is interest. they think if you make the noise now and show that you are in play, and the german government would be more open to cross-border deal. the reason unicredit is likely willing to raise their hand now is because there's a lot of hurdles facing the deal. we've seen so much opposition and backlash against the deal politically, from the labor unions, about 30,000 commerzbank

jobs could be lost at 60% of their payroll. a newspaper was showing three quarters of the german public does not agree that a deal should go through. even some of deutsche bank's biggest shareholders, they are wary of this deal. is making some noise on the fact that they would be open and waiting in the wings. they would merge it with a german lender that they already own. one thing we are looking at is where they stack up in terms of how risky they are. you can see we have deutsche bank in white. it is taking the top as the riskiest. as you know, this changes so often in europe, there is no clear winner all the time of who is europe's biggest risk is

back. ,eutsche bank has the highest as talks continue between deutsche bank and commerzbank. manus: the question is whether anybody has dirty laundry like the market had in 2007-2008. , one of ourk preoccupations is liquidity. i'm just curious to jump off the consolidation story, commerzbank , deutsche bank, unicredit maybe in the wings, want to ask an equity question. from a liquidity point of view, what's going on on the lens that -- on the landscape? the bid offer spread on highball

data, it's getting a little bit vol data.high i don't know if it's a factor of consolidation. over the course of the last five years, you've seen material change in the way to foreign-exchange market works. you can see pretty well from late 2014 onwards, you suddenly get these bursts of incredibly high volatility. about the flash we had in sterling back in 2016. had inflash crash we sterling back in 2016. as soon as an event emerges in that twilight zone, it disappears entirely. environment,tility when it's hard for people to make money on a day-to-day

basis, that desire to pull away from the market is often greater. i think that right now, the nervousness of the market in circumstance, i think one of the interesting the feds volatility starts to creep in a bit. suddenly you are starting to get a bit more movement as people start to become a little more if all. there you go. simon, thank you for taking us through that. simon derrick, our guest host this morning. he will continue the conversation on bloomberg radio at 7:30 a.m. up, a market debut. johave the conversation with

rn madsen, next. nejra: new traveling to work, tune in on your mobile device. simon derrick will join the team there later. thegroup at the start of week was recommending trades around that. this is bloomberg. ♪

>> we are moving forward and the team is very comfortable. have a digital videocast to the rest of the group. leader, we work great together and he has an amazing team working for him. we are very optimistic about the future. >> what happens for exit? have you considered the worst and are you prepared for it?

small companies, big companies, we are ready to service them and i continue we are ready and they can trust that the service will continue, whatever happens with brexit. >> if the resin no deal brexit, does it impact operations in europe -- if there is a no deal brexit? >> it's been more onerous in terms of cost. we've had to move up you people, but not many. to theg us back decision. >> at the outset we said we would do what makes economic sense and take all or stakeholders into consideration. that's what we did. it was the first time the rationale made sense, and that's what we did. we have flexibility and we will

take that in the future to either do it or not. we believe we did the right thing. the executive chairman of sense and are. this is bloomberg "daybreak: europe." welcome back to the show. i am manus cranny of alongside nejra cehic. after spitting all from -- is $3.6cted to be worth billion. investors will be looking to seize on the opportunity. stop debutabout the -- the stock debut west jorn with jorn madsen. are we about to enter a new phase of growth in offshore drilling in the market?

your assessment, and good morning. >> good morning, and thank you for the introduction. the markets are improving, that's the conversations we have with our customers. that's the backlog we are building. in the market last year, quite some improvement when it comes to utilization and when it comes to rates. yesterday we were out telling about a new contract in the deepwater space which also shows that market fundamentals are going the right way. i'm very optimistic that we will see improvements as we look ahead. nejra: good morning from london. ,ou expect to see improvements that said, the drilling market is still to a certain extent feeling the stress from the

collapse in crude prices almost five years ago. your balance sheet, though, is stronger than most of your peers. you have less debt. i'm wondering, can we expect maersk drilling to take advantage of this position to buy up weaker rivals? i believe in this industry a strong balance sheet is required because the industry is cyclical. in order to make it through the cyclicality of the bowel -- of the balance sheet, a strong balance sheet is required. to look at attractive opportunities in the market and seize them, for us it's really that doing something that fits into the operating model that we have. the customers that we serve. we like to be in the tough markets like the north sea. if you see us using our balance sheets for that, then it's going

to be that arena. manus: let's dig a little bit deeper into that. it's going to be your choice as to how much leverage you take according to that balance sheet. what debt ratio would you be comfortable with if you scale up to do a deal, what kind of debt levels or bond issues could we expect from you? the leverage is one thing you have to look at. it is a cyclical industry. when we compare leverage year on year, it might change a lot, just due to the fact that our revenues will vary over time. there's two things i'm looking to. first it's the leverage, but also the absolute debt that you have. where we are at the moment, we are very comfortable with the leverage we have. when we went into 2019, we had a leverage of 1.8.

it's going to go up a little bit over the year, short of three at the end of the year, 2.7. it's difficult for me to give you an absolute number on what is the right leverage, especially given the cyclicality of this industry. nejra: on the broader industry, do you think the industry might see round to restructurings at some point, or has the work that has been done already enough to bring the industry through the recovery? the restructure we have seen, if you look at balance , it does seemers that, depending on how optimistic you are, most of our managed through the down cycle. manus: we started the

conversation with your outlook and you are cautionary but you , and that'se rigs probably a good position. are you in talks with any potential clients? just give us a complexion in terms of the demand for that business on the drillship. jorn: i'm not going into details s, but we are continuously working with customers to see what we can do. we see it in the deepwater space, interest is picking up. we see that longer contracts are being talked about. the contract we landed yesterday , which is a three-year plus contract at much better rates than we have seen recently, it's a good indicator of that.

oil companiese are back in a situation where the want to go back into deep water also on the bigger stuff, not just short-term. tora: let's bring it back where we started the conversation, the fact that your stock is about to trade on the exchange. many analysts have said it has been tough to estimate a valuation for your company. should we expect it to be a volatile investment from the beginning? jorn: that's a good question. that's up to the investors. the way we look at it, we think that within the next weeks or months we will see the stabilized value on the stock. i'm excited and interested in knowing where it lands, but i'm also prepared that there might be some volatilities to start with. also toe are excited

see where it lands. thank you so much for joining us this morning, great to have you with us on the show. hedge funds are resisting the rally that we have seen in equities, despite the best quarter for stock since 2010. equity managers have spent the last month slashing their exposure. >> hedge funds have reduced their exposure to the lowest tier in two years, according to credit suisse prime service data. the plunge is the fastest rate that cut their equity -- equity exposure since 2010. there are signs they want more of a defensive positioning. this get some of the most crowded it has been in years, according to bank of america. some strategists i spoke with said their clients are waiting for some eps growth confirmation before going back into stocks.

but hedge funds are still making money, still turning a profit. that's because they have added to their short exposures. the top u.s. and european shorts have dropped last month by about 11%, last quarter, rather. this will pay off the most for managers since roughly 2015. even though it's a lot of aeration is, equity bulls may take solace in this because hedge funds have a lot of shorts on and because they don't own a lot of equity, there's a lot of room for them to buy, should the picture turnaround, giving the equity market more life. manus: great reporting in terms of where the money is sitting and the potential for markets. are going to put that in context. coming up, 2025 is the trade target. thatis what we understand the u.s. is reportedly putting on the table for beijing to fulfill their pledge.

could it be the push the markets need? will the deal get signed? you can get all the charts we use throughout the show in our library. this is bloomberg. ♪

>> good morning from dubai. i'm manus cranny. these are the top stories today. the u.k. parliament votes by a majority of just one. theresa may and jeremy corbyn hope to stop the talks. president trump prepares to meet china's vice premier amid signs trade talks are edging toward a deal. optimism pushes stocks shy of a high. ad unicredit is preparing

bid. this according to the financial times. >> good morning. 7:00 a.m.. data coming out of germany. factory orders, months on months. than what was expected, a gain of 0.3%. if we look year on year, we are down. pmi, the four biggest economies pushing the euro high for the first time in seven sessions. we had u.s. equities hit a six-month high along with european equities hitting the highest since august.

the rally and equities yesterday. you can see that reflected in futures. ftse futures off 0.4%. we will see whether this german data plays in. might play into what we are seeing in the european session. .till study now not doing a huge amount. definitely a positive in this equity rally. to hear as early as today on a date for the meeting. >> what will the details be? how much of that is already in the market? more than a flickering of growth to take off. let's see how that translates. two-day look at the

chart. down she goes and turns of the euro-dollar. u.s. treasuries, we have done a lot of work. we are up 11 basis points. we have traded up. says 396 by the end of the year. in that respect, we are dealing on all fronts. the bond markets are up and running. let's get into one of our lead corporate stories. unicredit preparing a rival bid. this according to financial times. joining us is our banks reporter. this isstand preparedness. not, as it were, crushing the current discussions.

>> the report says they are preparing this. used to be interested in commerzbank. they already have a strong interest. adding commerzbank would make perfect sense. most ofe come through the restructuring. there are getting to a point where they are able to make such a bid. if the plan falls apart, commerzbank would be on the market. it does seem to make a lot of sense. >> thank you so much. joining us on set, the co-cio. great to have you with us. want to get your first reaction to this news. sockve been following the of a commerzbank merger for a while.

how does it figure into your investment? perhaps looking at german or other banks? >> not surprised whatsoever. the strategy is about building and continuing this pan-european strategy. the person credited with theding the bank, is one of key investment bankers and can architect of this deal. , aould go one step further nextoes do a german deal, as france. >> the possibility of cross-border deals. we have a headline. we have bring that before we move along. this is that you g.m.. the agm.

going on as we speak right now. more cost cuts to come. over 60% of the plan, $1 billion cost cuts, will be completed by the end of 2019. the presentation. big cost cuts to come. how much will be in europe? pressing calls. more to come from him. let's get into the rest of the markets. juliette saly has the flow in singapore. a ratere weighing decision coming through from the bank of india. there was talk of rate hikes. now we are pricing in cuts. coming off of those record highs, strong buying coming

through in china. particularly on the close. china reportedly announcing raiseto reduce taxes and incomes for citizens. mixed elsewhere. a bit of a down day coming through for asian equities that had been tracking at those six-month highs. the r.b.i. rate decision coming down. weakness in some the rupee. the indonesian rupiah looking strong. up by a third of 1%. we have been speaking to the bank of indonesia chief. the rates there are on hold among the global risks. the aussie and kiwi, higher ahead of those trade talks. >> thank you very much.

juliette saly with the latest on that asian market session. beijing untilving 2025 to make commitments on commodity purchases. it would allow american companies to own enterprises in china. it comes as president trump is set to meet vice president lu. larry kudlow says negotiators are making good headway. headway. we want more fax. i -- facts. we have been looking. we are on the cusp of a trade deal. the winner is the american equity market, up 10%. where is the biggest possible next return, usa or beyond?

terms of equity markets going forward, we have been banging the table. that, ourraded position in terms of domestic shares. investmentour next committee, we are going to be asking ourselves the question, perhaps u.s. stocks have had a little bit of their day. what has been left behind? what is sensitive to exports? japan. down.ions have come in terms of where is the next leg, that could potentially be japanese equities. >> that completely makes sense. with the next step be europe if we are talking about exports to mark links have been made

between the two regions. equities undervalued and under loved. >> there is one thing that keeps me up at night. u.s. china relationships improving dramatically. we see deterioration between u.s. and german relationships. there is a probability of the deterioration between the u.s. and germany. we priced that or is that underpriced? in terms of u.s. japan or u.s. china? >> u.s. europe. >> i don't think it is telegraphed. i don't think anyone is talking about the prospect of there being a conflict between the u.s. and germany. next set ofe the headlines in the coming weeks. equitiese looking for

-- opportunities. you are looking at japan. what about in the bond market? saw a huge shift in sentiment in terms of the treasury market. i would make the case the 10 year and the u.s. government bond complex will be in a consolidation, a price discovery. not too much upside, not too much downside. we have seen rallies and high-yield. our best view is we are going to see more consolidation of the bond market. >> in terms of the bond market action, i started the show with a 10 year paper. giving a little bit back this

morning. what do you think the bond market, if there is a trade deal between the u.s. and china, one of the lines is may be fed would need to re-price we would need to reprice the fed. do you think it is too early to suggest that? >> i don't think it is too early. the consensus is no hike for the rest of the year. traction some really in terms of the trade deal taking shape, another thing people are not talking about is oil has rallied. the fed might turn around and say, we do need to be reasonable. let's job own the market into excepting the prospect of one hike. cementingstion, financial bubbles. take a look at that story. stays with us.

let's get the first word news. olivia how here in london. the u.k. has taken a step away from a no deal brexit. just before midnight, the house of commons voted to block leaving without a divorce deal. may came despite theresa stance.g her the trump administration is shutting options for entry points from mexico. this is in case the president follows through with his threats to close the border. they are somewhere between a theoretical discussion and implementation planning. a dozen others appeared in federal court in the emissions scandal. among those are men. is packaged food entrepreneur

from california. global news, 24 hours a day. this is bloomberg. >> thank you very much. all change at nomura. a billion dollars in costs. high-yield exit the bond market. down to 150 six. overall, cost targets, 10% over the next three years. this is a significant moment. this is the institution that bought the lehman and bond business. is that a shock? we can discuss that later on. >> the cost reduction will be done through radical simplification of the operating model.

big changes afoot to read we will keep an eye on that. when you are traveling to work, tune into bloomberg radio. there fromoining you 8:00 a.m. to take you through the equity market open. this is bloomberg. ♪

this is bloomberg daybreak: europe. to the decision from the reserve bank of india. the central bank cutting the policy rate to 6%. that was expected. a cut, inflation forecast for the six months. we have the decision. you can follow it there. reasoning, the

facing headwinds in terms of the global economy. that is the decision we can see some weakening in the rupee. you, and i on that. eye on that. the u.k. parliament voting to block a no deal brexit. there is still no clarity on what a deal will look like. jeremy corbyn said initial talks with theresa may were constructive but inconclusive. they met for more than an hour talk again.ams will >> i accepted the meeting to set out our views. put out -- it depended

on accepting the withdrawal agreement. let's get back to the co-ceo. if you are not already significantly invested, would this be the moment to start adding? isin terms of yesterday, it unclear whether she has handed the opposition leader and all of ranch or poison ivy. what is clear to us, more eyes are beginning to focus on the u.k. as an asset class. we have historically been andrweight both across fx even commercial property. we are going to focus on whether we want to rotate out of assetstional focused into domestic assets. there will be some adjustments in that regard. saw, they said

when people smell fear, it is time to step in. they bought these kind of names. a couple ofing at pack oriented names. in their view, perhaps have less exposure. no, we don't have that, that is what i'm being told. names which are little bit less exposed to the domestic economy. how are you going to differentiate next week? what we are going to be doing from an investment perspective, we are debating things like banks. if we believe the armageddon scenario is on the table, stocks in those sectors trading at attractive valuations will be on our radar screens.

did decide whether we go from underway to neutral. it is certainly on the debating table. >> that is interesting. earlier you said more the action will be an equity and fx. you were talking on a global level. does that mean with the u.k., you would be looking to increase exposure to sterling? been aview is it has lightning rod. it is a barometer and terms of sentiment with regard to the brexit debate. it has formed a bottom. i suspect as the developments take place, sterling will be one of the best indicators, the early warning signs of upside or downside. more is probably a favorable decision in the nerd -- near-term. >> a little bit of skepticism.

deal got voted through. the co-ceo i/o. joining us now to talk more , the the decision bloomberg executive producer. the market is stacking up for more to come. there is a 25 basis point cut which is what the market was anticipating. the context on how and why this of been taken, the first back-to-back rate decision taken by the monetary policy committee . two important factors pointed out. the committee has maintained a neutral stance which gives us leeway to react to data on inflation.

i will come to growth in a moment. the two factors that set the context, inflation, a medium-term target at 4%. high frequency indicators of india's growth that have been showing signs of a slowdown. demandof data showing cooling off. supportedsupported growth. we are going to wait and watch whether this is going to be a consistent rate cutting cycle. will they cut interest rates even further? oil pricesth and how play out. we are heading into election season, which is going to be important. >> kicking off april 11. great to have you with us. the executive producer. .hank you for joining us

today is the deadline for u.k. businesses to report their gender pay gap details. reports show few signs of progress. how are companies doing? >> on the top line, nothing has really changed when you look at median hourly wages. one thing that did widen was bonuses. for 8000 ofthe data these companies. they have until midnight. this is look at ftse 100 companies. among those where women are less, these are some of the names that come out. anglo american services. women paid more than men, tesco maintenance

services. it,can see, looking at broadly speaking, women are getting paid much less than men. it is a sea of green. many say there is not enough data. last year, not enough data. banks, any kind of publicly traded companies. it. say they are working on a lot of the stuff takes time. theome amazing insight into disparities and the disclosures. breaking news, more from japan. ¥409 billion. up tore going to buy back

¥100 billion worth of shares. that is the latest breaking news. we will take you through the breaking news on brexit.

>> good morning. welcome to european markets, the european open. i am anna edwards alongside matt miller. say turns the markets to frankfurt. slump in factory orders. and commerce bank in focus after a report of a multibillion dollar bid. the cash trade is less than $30 billion -- 30 minutes away.