♪ nejra: good morning from bloomberg's european headquarters in london. this is "bloomberg daybreak: europe." shaky ground. market sentiment takes a hit, as japan reports two deaths from the coronavirus. an hit a 2020yu low. ceo,ames their next putting a retail banking veteran at the helm. michael bloomberg comes under attack and eight vitriolic democratic debate in nevada. elizabeth warren leads the offensive against the former new york mayor ahead of saturday's caucuses. ♪

a surprise appointment at the head of ubs. the ceo of ing to take over from sergio ermotti. he is known for the digital transformation at ing and a --eran of the dutch banking banking -- a comparison to what's been happening here, hamers is a relative outsider to the rarefied world of swiss management. he has climbed the ranks. he was the head of the dutch and belgium banking units. he has been ceo since 2013. what he is known for is leading the digital banking push in an effort to win customers and he is also known for cost cutting,

and that's what he has been doing, bringing ing back to profitability by reducing costs. sergio ermotti recently cut the bank's financial targets for the second time in as many years. we were reporting that the search for a successor was starting on friday. that news came through. the international wealth management cohead was widely seen as an eventual contender for the top rule. his run in with his former boss, tidjane thiam, apparently dimmed his standings with ubs board members. ralph hamers will be taking over at ubs. a lot of questions about how the strategy will look going forward and how different it might look with leadership at the bank from an outsider, but also one that comes more from a retail banking arm and digital transformation. hamers has shown the ability to boost revenues.

a 20% drop for the stoxx 600 bank index and 30% decline for ubs. in terms of what might have job, hehamers into the could get a pay raise. ing paid him about 2 million euros annually in recent years, including salary and a relatively small variable award. sergio ermotti received roughly $14 million for 2018. income comes in a little bit weaker than the estimates. end of euro 43 per share up 7%. but we are seeing is the solvency to ratio is up five points. the full-year net income is the right headline. full-year gross revenue at 103.5 billion euros es. we will speak to the ceo of ax./

don't miss that conversation. let's get to the broader markets. after we saw a record for u.s. stocks yesterday, we see a bit of a pullback today. the ms yet asia-pacific index in the red. we have seen some gains in the japanese shares. no clear reasons why exactly. we could see a weaker open in the u.s. s&p futures on the back foot. switch the board over. a 2020 low, the aussie dollar at an 11 year low. we had some jobs data feeding into that in terms of bets perhaps on easing. gold at a seven-year high but we pulled back slightly. oil continues its rising trend. for oil, the story turns much more to supply risk. on our top story, the coronavirus continuing to spread outside china. two people from the quarantined cruise ship in japan have died, while cases in south korea have more than doubled in one day.

two people have also died in iran. cases in china are slowing. there are signs of deepening economic damage. as cases continue to emerge worldwide, it is fueling fears of a significant slowdown in global growth. ontas is slashing capacity flights in asia by 20%. the ceo told us a contingency plan is in place for the next three months at least. >> we are publishing that on the end of may. we are keeping flexibility. that will be the equivalent to grounding aircraft and having many people. we are asking people to take paid leave. if things were to continue the way they are, we would extend that until the end of june. nejra: joining us now is wei li, shares and

investment strategy at blackrock. how much more resilience can we see in risk assets, even if they come under some pressure today? wei: well, risk assets have been really resilient. shapedink about the v- recovery we have seen in risk assets, even in chinese asset markets, one has to wonder if this all happened very quickly. our view in terms of economic impact from the coronavirus is see a v-shaped recovery. based on theis tbd spread of the virus. given that the market has already caught up, i think it is really important to build resilience in portfolios, thinking about gold, u.s. government bonds. it is worth holding onto given

how quickly markets have recovered. nejra: how much potential downside could we see if that does not come to pass? wei: i think in the near term, we are going to see further downside in terms of economic data coming through before things get better. if you think about the fact that while effectively, we have almost half of the population in china still in various degrees of lockdown, if you think about sentiment indicators starting to properly register the potential downward drag from coronavirus. and also, some of those easing measures by the chinese authorities will take time to feed through. companies, small-cap cap companies are having row challenges to stay afloat -- real challenges to stay afloat, access liquidity. if companies are not really making money, what does it

matter? it will take time for some of those easing measures to feed through to the economy. nejra: right. you still have a procyclical tilt in the portfolio. why are you holding onto that despite the disruptions that we are likely to get in the near term and i guess the lack of certainty that we will get a v- shaped recovery? surely, the risks are tilted much more to the downside, so why the procyclical tilt? and if you take a step back look at the impact of coronavirus so far this year, the growth environment is still reasonably ok. if you look at the very easy financial conditions, the easy funding environment, if you look at earnings, we are talking about still surprising on the upside versus expectation. especially in the u.s. and certain parts of the emerging market as well. all of that are still kind of supporting a broadly ok risk

environment when coronavirus impact passes through. if you think about our expectations for easy financial conditions to lift growth, that is, in our view, still happening. it is just getting delayed, not derailed. nejra: you have a lot of conviction in emerging markets. is that despite the fact that china's economy could take a significant hit, at least in the first quarter, perhaps further out? and despite the fact that we are seeing a weaker yuan at the moment that the pboc does not seem to be worried about? wei: yes. i think in the near term, there is a headwind in terms of how much worse data can get before it gets better. the broader structural trend in terms of where emerging markets are in the economic growth cycle and also the fact that they are site well supported by the , ourok dollar environment

expectation is for dollar to stay range bound and not coming on very strong. that should support sentiment towards emerging markets. the easy financial conditions should support emerging markets as well. we think emerging markets can benefit. nejra: wei li from blackrock stays with us. michael bloomberg came under sustained attack and a spirited democratic debate a few hours ago. democrats unleashed their jabs on the newest candidate in the race with a series of attacks about bloomberg's statements about women, and a stop and frisk policing policy. senator warren: i would like to talk about who we are running against, a billionaire who calls women fat broad and horse faced lesbians. no, i am not talking about donald trump. i am talking about mayor bloomberg. democrats are not going to win if we have a nominee who has a history of hiding his tax returns, of harassing women, and of supporting racist policies like redlining and stop and

frisk. the formerfocus on new york mayor deflected some of the heat that bernie sanders might have otherwise received from rivals, though he did not completely escape criticism, particularly from people to judge. michael bloomberg -- pete buttigieg. michael bloomberg is the founder of bloomberg. joining us now is john hardy. us.t to have you with what was your take away from this debate as he watched it overnight? >> apparently afterward, joe -- hesaid that he still spoke briefly with michael bloomberg and said, welcome to the party. it certainly was a very lively party. it was one of those family functions where everybody wants to gang up on someone. it was the wealthy cousin perhaps. know, beyond any bigger candidate, it is part of

this larger debate over which way the party is going to go as they prepared to challenge donald trump in the election in november. do they go the more conventional moderate, or do they go with bernie sanders? who proposes something very different, radical, certainly for american politics. nejra: yes. >> that was really what the debate was about. more so than the previous ones. nejra: right. john, it really came at a pivotal moment for all the candidates. we look ahead to the nevada caucuses on saturday. a week later, we get a primary in south carolina. it is our building up to super tuesday on march 3. how did the debate yesterday change the way these dates coming forward my people? john: -- might evolve? john: it is hard to say. joe biden seemed much more on point, alert.

again, i think maybe michael bloomberg being the new candidate who has been there not beenandidate, has there before, only joined the race in november, was a catalyst for everybody else to be on top of their game. klobuchargieg and amy , can they sustain in the race much longer -- can they stay in the race much longer? i don't think so. klobuchar -- elizabeth warren pointed out the flaws of the other candidates. what it means going forward, it's hard to say. know, hasrly has, you touted his support among african-americans. that should be very important in south carolina and nevada, too, to a lesser extent. you have a large latino vote there, a big union vote.

may -- we may have entirely different conclusion on super tuesday than we did after iowa and nevada. it is certainly up in the air. nejra: john carney in washington, great to have you with us. hamers named ing's ralph as its next ceo. he will succeed sergio ermotti. raise.oised for a big the dutch lender pays him about $2 million per year, at ubs, sergio ermotti got roughly $40 million in 2018. eight people have been killed and five wounded after a shooting in germany that occurred in the city mayor frankfurt -- near frankfurt. the suspect was found dead at his home. they say there is no indication of further perpetrators. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

coming up, this is what you need to know. today, the european union's one trillion -- budget is split between two basic camps. more on this later in the show. coming up, changing of the guard. ubs names ing chief ralph hamers as ceo. more later. this is bloomberg. ♪

♪ nejra: this is "bloomberg daybreak: europe." i am nejra cehic in london. we keep monitoring the impact of coronavirus through earnings season. million-200ees 150 inlion euro coronavirus hit february 2 april. to april.-- february full year revenue came in

slightly weaker. we will speak exclusively to the cfo. while the number of new cases in china continue to drop, what i national companies are rushing to assess their exposure to the coronavirus. here is dani burger. line was a perfect segue. we keep hearing these individual companies talk about the hit from coronavirus but i want to actually quantify this. i am using the s&p 500 as a proxy. the number of companies that had mentioned coronavirus wasn't $9 trillion of the u.s. market cap. this is pretty significant -- $9 trillion of the u.s. market cap. another 29% in the blue say there will be an impact but it is somewhat limited. only about 5% of companies have said that it is going to be the severe impact. the parts of these bars start to grow as we go more into earnings

season and companies continue to see the increased fallout. again, the majority just saying they are monitoring. according to bloomberg economics, yes, it might be too early to tell, but that does not mean the consequences won't be bad for these companies. nejra: we have got fresh clues on the fed's stance in the minutes from the latest meeting. policy makers indicated they could leave interest rates unchanged for several months but remain on guard against domestic and global risks, such as the coronavirus. wei li from blackrock is still with us. is there anything in the minutes that would cause you to shift your view or the markets to shift their view on what to expect from the fed? wei: two main observations and takeaways that i would flag. this is definitely a committee that will not higher inflation. they want that want higher inflation -- committee that want higher inflation. second, this is a committee that

really also are considering speed of asset purchase programs. we are talking about slowing down in the second quarter. even if we were to slow down and pause at some point, we are still talking about adding $400 million to the size of the balance sheet. it is still very accommodative. everything considered, our expectation is still that the bar for the fed to do anything is extremely high. for hiking rates, the bar is to lasther, as compared year, where the fed has been a major tailwind for markets. three hikes priced in verses delivering three cuts. i think this year, a driver is going to have to come from elsewhere. nejra: right. so if we do see the fed on hold and is signaling it is on hold with not much of a dovish stance and then we start to see a reduction of the balance sheet,

is that going to hit risk sentiment at all? or is that something the market has already factored in? wei: i think as it relates to the fed, there is quite a lot of certainty in terms of market pricing. very few deviations from kind of the consensus saying baked in. not to mention, the fed is one central bank. if you think about some of the other central banks globally, they are more poised to cut rates. that sort of support and stimulus could kind of push certain assets higher. in our case, in our view, emerging markets are poised to benefit from that. nejra: wei li from blackrock staying with us. ubs names ing chief ralph hamers as its next ceo. more on that next. this is bloomberg. ♪

♪ nejra: this is "bloomberg daybreak: europe." i am nejra cehic in london. ubs has named ing chief ralph hamers as its new ceo, succeeding sergio ermotti. he will take over a november 1. it is a surprising pick for the world's largest wealth manager. great to have you with us. we are looking at ralph hamers taking over after implementing a digital transformation at ing. are investors going to see him as the right pick for the top job at ubs? >> thanks. yes, it is definitely a surprise. he really comes out of the blue for ubs. he is coming from a bank that is typically more retail oriented. ubs is obviously more wealth

management oriented. we think investors will probably appreciate everything he has done at ing in terms of cost cutting and really moving the bank into the digital era, something that ubs needs to work on. it will definitely be something that will be a positive. nejra: you mentioned the digital transformation, the cost cutting. of course, more recently, he presided over a turbulent time at ing after it got caught up in a money laundering scandal involving russian dirty money. as he takes over at ubs, do we have any sense as to why this appointment was made, given that it was so surprising? ubs succession planning started about one year ago. sergio ermotti has been there for nearly a decade. he has really steered the bank from its own turbulent times post financial crisis, really moving the banknto wealth management, turning that profitability around.

i think they are looking for the next decade and how -- who can bring them into the next decade. one of the key things is how banks are grappling with digitization and challenges from challenger banks and fintech, etc. internally, ubs has come under a lot of scrutiny as to how many internal strong candidates they had. i think sergio ermotti certainly tried to strengthen the bench of the last year. khan came over in september, october of last year at ubs. looks like they have not gone for anyone internally and have gone for someone externally. ikbal khan.entioned he was seen as one of the top contenders for the ubs co. the run in with tejon dm may have caused -- tidjane thiam may

have caused some issues with the board. do we have an idea of how he will work alongside khan? aware oft think we are any previous working relationship they have had. we are looking at someone who may have been disappointed to not be considered for the ubs ceo slot. was obviously very keen on that position at credit suisse, part of the reasons he has had his run-ins with tejon dm -- td jane thiam. nejra: great to have you with us. we expected that may be ralph hamers might be poised for a big pay rise when he takes the reins at ubs. coming up, the european union's budget has split the block into two basic camps. more on this later in the show. we will bring you all the latest

on coronavirus and the market impact. coming up, a as analyst estimates. we speak to the ceo. this is bloomberg. ♪

[ fast-paced drumming ]

♪ nejra: good morning from bloomberg european headquarters in the city of london. i am nejra cehic. shaky ground. market sentiment takes a hit, as japan reports two deaths from the coronavirus and cases in south korea jump. the offshore yuan

ubs names ing's ralph hamers as its next ceo, putting a retail banking veteran at the helm of the world's largest wealth manager. michael bloomberg comes under attack in a vitriolic democratic debate in nevada. elizabeth warren leads the offensive against the former new york mayor ahead of saturday's caucuses. ♪ axa has posted profit that must issed analyst estimates. the company posted its largest revenue gains in health and commercial insurance, while the firm's as that management division continued to pull in new money. joining us now to discuss is thomas buberl, ceo of axa. we understand that the prophets missed estimates on costs. can you give us a sense on whether those costs will continue to be a challenge in the ensuing quarters? thomas: good morning. the results that we posted today are very strong results. line, fiven the top percent growth in underlying earnings per share and 5% increase in the sovereignty, which would lead us to propose to our shareholders a dividend increase of 7%, so very solid results.

it is true that we have experienced more natural catastrophe than we thought last year, but this is something that will be immediately reflected in price increases. you have seen that prices have significantly increased. we will see that the issues have been addressed, the decisions have been taken. in 2020, we will see the change. nejra: yes. you have done a lot of restructuring at axa. in terms of further restructuring, what about the plan with the middle eastern divisions? we reported that you were reviewing those units and you might seldom. is there a possibility -- sell them. is that a possibility in the near future? thomas: we have changed our portfolio significantly. we used to be very focused on life in savings. . 80% of our portfolio was in that area. since the financial crisis, we have started to shift more

towards technical risk away from financial risks, which leads us to the fact that today, we are 80% focused on technical risk. so this is very good. we have also simplified the organization, simplified our footprint. we are continuously reviewing where should we be, where should we grow, where should we not growth. this is part of a normal business that you should be doing. you can certainly understand that i am not commenting on any rumors. you have seen that the strategy is very clear and we are continuing that journey. nejra: are you reviewing the middle eastern divisions with perhaps on intention to sell them? thomas: again, i would never comment on any rumors. but certainly, we have a middle eastern division that is very strong. we are very proud of our partnership there. we have been developing this well so far. nejra: i understand that you

cannot comment on that. i am sure you will have a comment on coronavirus. we have been asking all of our executives about the potential impact on their business. you try to assess the impacts of that, what impact is abbvie so far on you in the first quarter -- is it having so far on you in the first quarter? thomas: you try to assess the is we see an impact certainly operation of the. people are stake -- operationally. people are staying at home. customers are not leaving their home either, so we have to work with digital means. this affects certainly china and hong kong. when it comes to international customers, we see the effects of that. we see more demands for repatriation. it is too early to say what it really means and how we are affected, but certainly, we have taken all measures internally to help our colleagues to continue their work and also our

customers in the need china is n which axa wants to grow. with the backdrop of the risk of coronavirus, can you tie those two things together for us. does it change your strategy in china apple? -- at all? thomas: it is true that china is a very important market for us. we are the largest foreign insurer in china. china is the second-biggest insurance market in the world, with a very good growth prospects, especially on the health side. it is true that the coronavirus and its effects currently is not helping. since insurance is a long-term business and we are looking at it on a much longer term, china rests and remains a very important market for us. we will be continuing to invest in there. nejra: is there another way of

looking at this in that the coronavirus outbreak could drive increased demand for insurance products in china and elsewhere? thomas: you can certainly see it this way. we always see after waves of health issues or natural catastrophes that the demand for insurance, the demand for protection, also the demand for prevention is increasing. i think this is the great society role that an insurer has , not only to pay claims, but also to go and help people to prevent and make sure that they are much better equipped for when it happens the next time. so yes, every difficulty also has gotten upside and a preparation effect for the next time. nejra: how satisfied are you with the integration of xl group? verys: so we are satisfied, because this was a integration, over

60 countries, a very large acquisition at the time of $15 billion. in order to do that, there is certainly always a challenge on the organizational integration when it comes to legal entities, organizational structures, processes. it is also a challenge from a cultural integration. traditionally used to be more of a retail oriented company. xl is very much a large business company. i spent a lot of time myself with my team on how can we align culturally, make this something where both sides contribute and create something new. i am very proud to see and to say that this has worked very well. nejra: yes. xl dealer does bring perhaps increased exposure to catastrophe losses. that brings me to how your pricing in climate change impacts.

how are you doing that? how are the impacts of climate change changing your business? thomas: so it is certainly true that we do see climate change and the different dynamic in the natural catastrophes in two ways. we see more events. secondly, we see events that are more severe than they used to be. this is clearly a change. the reaction that the market always has when there is more insurance claims and more disasters than we expected, prices will increase. you are seeing this at the moment. but it is exactly like we talked about early on the coronavirus. when there is something new coming, when certainly companies or individuals are affected, it is a moment to talk and see, what can you do as a company to protect yourself better, prevent better? when i look at how the risk management services are really increasing in demand, i think it

is a very great opportunity to be closer to our customers and help them to prevent themselves better when it happens next time. nejra: thank you so much for joining us this morning. thomas buberl, ceo of axa. we have been seeing some risk of sentiment overnight but that has bit.lized a little it seemed investors were starting to get concerned about coronavirus cases outside of china. futures lower in asia. european and u.s. futures are steady now. the 10 year yield also steady. we have seen the offshore yuan weaken. joining us to discuss his juliette saly in singapore and dani burger in london. juliette, you are looking at weakness across asia currency markets today. the bloomberg dollar index is that a four-month high. does that have something to do with it? juliette: you would think it certainly does. the aussie dollar at that 11

year low really to do with some economic data there. we had the jobless rate creep up -- january to.3% 5.3%. the yuan is recovering some of those losses. this weakness in the dollar weighing into a lot of these asian currencies. christopher wong from malayan bank thinks the yuan and singapore dollar could be some of the biggest casualties as the economic fallout continues to worsen. in singapore, you have seen the currency fall to its lowest level in nearly three years. centex'ster we saw the best day in two weeks, taking a bit of a pausing indian equities today. what is driving that? >> may be just a bit of positive global sentiment, which is helping the indian markets as well. though i must say, we started off very flat. , .6%, .7%nking index

at the banking index. ot really necessarily the reason for the banking index is to do well. lots happening. it is a long weekend for the indian markets because tomorrow is a holiday. ahead of that, the banks seem to be driving on the highside today. nejra: if you are off tomorrow, have a good holiday. we have been talking about the resilience across risk assets. even though we saw a off earlier in asia, we are stabilizing a little bit. you're looking at the push into defensive factors. what are you seeing? today,ite that pause these quality stocks remain en vogue. this is something we have seen throughout the past month of the coronavirus.

investors are really liking these names. it has by far been beating out the msci world index. j.p. morgan analyst brought this up overnight, saying we are entering bubble territory here, with investors flocking towards low yields. jp morgan notes that this will not last. they see a rotation coming as soon as some of the noise around the virus starts to calm down. that these stocks are in bubble territory and the bubble will soon be popped. for now, quality stocks right now en vogue. nejra: the s&p hitting another record in yesterday's session. thank you so much. great work. coming up, this is what you need to know today. the european union's budget has split the block into two basic camps, those who want to spend more and those who can see they will it stuck with the bill. intesa's surprise bid for their arrival has lost one of the

biggest european banking deals in a decade. 9:00ll speak to the ceo at a.m. london time. this is bloomberg. ♪

♪ >> most americans do not see where they fit if they have got to choose between a socialist who thinks that capitalism is the root of all evil, and a billionaire who thinks that money out to be the root of all power. let's put forward somebody who actually lives and who works in a middle-class neighborhood, in an industrial midwestern city. let's put forward somebody who is actually a democrat. nejra: that was pete buttigieg during the latest democratic vegas.in las the former south bend, indiana mayor called bernie sanders and

mike bloomberg the two most ures on thefig stage. we should mention that michael bloomberg is the founder and majority owner of bloomberg lp, the parent company of bloomberg news. let's turn to what you need to know today. brags it is deepening the risk between richer and poor -- brex it is deepening the risk between richer and poor states. -- are poised to clash with frugal eu members. joining us to discuss is maria tadeo from. brussels. . what can we expect from these negotiations? >> that's exactly right. we are now being told this entire area around the european institutions will be shot until saturday, which is not a good omen. it means we are in for a very long summit, which should not be a surprise. we knew this would be a long summit.

we knew it would be a question of money. this is all about who gets to pay for what. it is also a question about ambition. we know that the european commission has said they have great plans for the future, but the fundamental question has always been, how is this going to be funded? who is going to pay for this? there is a big divisions between countries that pay into the budget and countries who receive aid. the hawkish voices are saying we should have a smaller budget. that is problematic for countries who say we should be ambitious. ultimately, we are investing into our future. you have brexit, which is still very much an issue here. we know trade negotiations will start imminently. speaking to european officials yesterday, they're told us they see a gap of 60-75,000,000,000 euros over the next seven years because of the u.k. leaving the eu. who is going to pay for this? at this stage, it is not clear.

this is going to be a very difficult summit. nejra: my thanks to maria tadeo from brussels. i am not sure we have ever been at an easy summit. joining us now is anna rosenberg europe signum and global advisors. maria has laid out the debate. who is going to have the upper hand? anna: i think at the end of the day, it will be a compromise, as usual. we have 27 member states trying to reach an agreement. these summits are always very tricky. eventually, we are going to reach a point where everybody will be more or less set aside. i do not think it will be a matter of upperhand. i expected the upperhand it will be with charles michelle, if anyone. of will reach the point

1%-1.5% of gdp for everyone to be happy. this is about internal posturing as well. it is not really about, how much money are we going to spend? it is about showing to national societies, we are making sure your taxpayer money is not wasted. nejra: as an investor and the investors you speak to, what is the key thing they are concerned about for the upside they can take from this? anna: i think they are looking at, where is the fiscal stimulus going to come from? it is not going to come from the seven-year budget. formality.is a i would not expect any groundbreaking announcement from that. what i think investors need to look at is the european green deal and that is going to become much more central over the next few months. we will see more funds being directed into that. not a massive amount of stimulus is going to flow into it. we do think that the eu's overtime going to enable financing that actually allows the green new deal to come up

with the one trillion number they're looking to get. nejra: how have the flows been looking into european assets? i know we started the show talking about coronavirus. that might be overarching more than the other domestic issues but are investors positive at the moment? wei: in short, no. last year, we had a significant for european equities. so far this year, the outflow momentum continues. concern around growth, concern around exposure to china, concern about political uncertainty, the budget discussions being the latest example. all of that has led to investors just exiting europe in favor of the u.s., for example. there has been significant flows and in some cases, emerging markets as well. nejra: earlier, you are saying

to me that despite the coronavirus fears, there have been some inflows into china. you are telling me there are outflows into europe. i find that quite an interesting dichotomy. meanwhile, the euro has had its worst start to the year since 2015. does that tell you that they euro weakness is much more to do with europe rather than coronavirus? wei: i think the euro weakness has also a lot to do with the dollar strength and the capital outflows that we talked about in terms of the financial market flows. then flows into chinese exposures is really interesting. if you think about how quickly the chinese market recovered from the initial significant drawdown, those flows have been retrospectively the right call. now, still uncertainty around how quickly growth can actually rebound. it is really time to deal with

resilience through gold and u.s. government bonds. nejra: the other thing we have been talking about is the discussions between the u.k. and eu. we have seen the pound, it's resilience head a little bit about concerns about how this will evolve. what are you telling investors? anna: i think it will get messy before it gets better. the retort has become much more fierce on both ends -- the rhetoric has become much more fierce on both ends. we are going to achieve many deals in uncertain sectors towards the end of the year were both sides want to cooperate. where are we on different spectrums? there is a lot of agreement on security cooperation, research, transport, and logistics. i think those are areas where we will see many deals. i do not think we will have on official extension of the transition period. what i could envisage is that we

will all agree to keep on talking. we will call a phase two discussion. at the end of the day, the market is going to be so anxious by the end of the year that the mini-deals and prospect of ongoing discussion will be good news. nejra: anna rosenberg, thank you so much for joining us. wei li from blackrock stays with us. intesa's surprise bid for its the most lost one of surprising -- biggest deals in a decade. this is bloomberg. ♪ loomberg. ♪

♪ nejra: this is "bloomberg ."ybreak: europe gold prices slightly coming off a seven-year high. ubs is saying the rally has it room to run. the data isgold, as to look ugly before it gets better. wei li from brock rock is still with us -- blackrock is still

with us. are you still positive on gold? wei: absolutely. go.re talking about $1600 it i hundred percent agree with her that -- i 100% agree with that. gold should be supported from here. in this broader context, there are not many exposures that offer you diversification. gold is one of them, u.s. government bond is one of them. nejra: it is interesting, because you have got those kind of asset diversifier as well you still remain procyclical tilt. thank you for joining us, wei li . that is it for "bloomberg daybreak: europe." the european open is up next. we saw a risk sentiment take a bit of a hit.

we are stabilizing on futures and the 10 year yield. this is bloomberg. ♪

♪ good morning. welcome to "bloomberg markets: european open." i am matt miller. the cash trade is just under an hour away. ♪ virus jitters. japan reports two deaths from the coronavirus and cases in south korea jump. amid concernsump about the spread of the disease outside of china. th