manus: good morning from bloomberg's middle east headquarters in dubai. annmarie hordern alongside me. it is "daybreak europe." janet yellen will tell the senate committee it is time to act big on stimulus. this on donald trump's last full day in office. goldman sachs economic outlook also faces scrutiny as it

reports fourth-quarter results. italy's prime minister with a first vote of confidence. the real test comes today in the upper house. the clock ticks down on the capitol in washington. a live shot of the united states , last full day in office. steer away from a controversial pardon for himself. good morning, america. good morning. annmarie: good morning, manus. cnn reporting that there's going to be 100 pardons or so but himself, president donald trump and his family, will not be part of it as we count down. in 35 hours, president-elect joe biden will be raising his right hand and taking the oath of office. he's going to be calling for unity and it's going to be hard for him to actually create that unity when many of the republican party, including president donald trump himself, who will not be at that

inauguration, still reject biden's victory. manus: absolutely still denouncing that and never really publicly accepting that. i will put this to you. it's the global insight report. you are an american. there is zero chance the u.s. turns into a banana republic. not my words, before you start sending me emails. this is tom morning. he said the markets basically have more or less shrugged their shoulders, probably not. it will not become a banana republic, does it suggest the chances are higher than previously believed? certainly yes. what we have learned is that banana dictatorship perhaps does better than democracy in pandemics. annmarie: the operation is going to look certainly different.

because of the chaos we saw on the capital, the riot, and the fact that it is a pandemic and you cannot have large super spreading gathering events. the other thing happening on the capital is 10:00 a.m. eastern, janet yellen will be facing the senate finance committee. we talked about a little bit of this briefly, she will be talking about her stance on the dollar. she will not be touting a stronger or weaker policy. she is now a salesperson, not defending the fed anymore. she is now a salesperson for the biden economic team and she will be talking about that $1.9 trillion stimulus plan. manus: absolutely. larry summers said before christmas that yellen should not be indifferent of the dollar. my question is of course, it sort of suits her not to reaffirm strong dollar policy. there is the dollar down 0.6% at 11:25. the biden administration arrives

today. yellen, as you say, it all caps off at 10:00 a.m. d.c. time, her confirmation at the senate finance committee. what is your sales pitch for the bite into trillion dollar stimulus plan? -- biden trillion dollars to mills plan? we met -- trillion dollar stimulus plan? what can we expect from her? derek: well, i think you are going to see -- all eyes are going to be on her. she's the sort of person everyone in the financial world, if you are the sort of person who watches bloomberg tv, you know janet yellen very well. you tractor every statement as she has been an oracle of fed policy. this role is different. there is some amount of stuff you look to the treasury secretary to try and guide policy but i think you made an astute point and that is to say

that part of yellen's job here is not to just be the person who is looked at for what she says but also to be someone who is selling people on a course of action. she will be involved in these negotiations. she will be involved in trying to persuade republicans to go big on stimulus spending, the idea that rates are low. let's spend now, boost up the economy. as we know, there's a $1.9 trillion plan from the incoming president on the table that they will need to get at least 10 republican votes in the senate for so there is a job to do here and it will be interesting to see how she starts to play that and we will get that first visual. annmarie: we also have of course trump's last final day in office. gallup has his approval at 34%. don't think a president has been below that since truman at 32%. what are you expecting his final 24 hours? derek: it's really interesting

because one of the things that we know is that trump's approval rating never really got very good but it also stayed in this band in the 40's so this is a good-sized drop for trump and it's running contra historical trends because usually, a defeated president would rise slightly on the idea that, you know, a wistfulness. that not only has not happened but it is exactly the reverse. trump has no public events on his schedule but we do expect it to be active. we do expect some news may be on pardons. there could be triple digits in pardons. we have seen names floated of everyone from former politicians to famous rappers. the big question is will the president attempt to pardon himself or his family or other people who are very close to him?

and yes, there is a sense right now i think from a lot of the reporting that we are seeing that may be some of those things will not happen, that the president will not pardon himself, but i think it bears watching because you never -- with trump, the probability of something at zero -- unless it definitely does not happen and i think people are watching in these final 36 odd hours to see what the last moves are going to be. manus: let's see what the next 24 hours bring us. derek wallbank setting the scene for the last day of the trump administration and yellen is saying to act big. the doctrine, what does it mean for markets? the s&p has gained 15% in 2020. this morning, room for more stimulus, and what does it mean for stocks? let's bring in our senior

multi-asset strategist at state three. always great to get your take. we are kicking off a new administration. adam pozen, the president of the peterson institute, says she will have to work on a -- with the fed that does not look like a conspiracy and is explicable to congress. that's the first political hurdle she's going to have to face, isn't it? maria: absolutely. i mean, she has -- i mean, she comes from having been chairman of the fed so it's almost kind of expected that she will work closely in cooperation with them. no question about that. more to that discussion is she herself and chairman powell are known and perceived as a little more dovish, historically dovish president of the fed, chairman

of the fed, so there is this perception that both of them will work somewhat in concert and try to do everything to stimulate the economy and that is exactly what is needed now so that sounds like a very constructive set up at the moment. manus: amri will wreak -- annmarie will rejoin us. in her absence, why not take the dollar question? we have had a strong dollar policy since 1995. mnuchin tramples on it. what is the risk? what is the risk that yellen goes for a market-based dollar valuation and does not invoke strong dollar policy? maria: i think this is very likely. she is an economist. she is a politician as well but she's coming from a very strong economic ground and so far, the noises that have been made by her suggest that that is what she wants, let the market

determine what the right rate is. i would be surprised if she does not do that. annmarie: i want to ask you about one of the things she is expected to say, coming from our bloomberg colleagues who covered the treasury. she's going to talk about neither her nor the president-elect proposing this relief package without an appreciation for the countries that burden right now. she will likely be asked about the u.s. debt which is on the verge of surpassing 100%. does u.s. debt worry you as an investor? maria: it's difficult to worry about debt while interest rates are low, but i think what does worry me as an investor is that it's very, very difficult to have a healthy economy until we defeat covid. two beat covid, we need to restrict the movement of people and you need to have a big stimulus package so that really

was first and foremost the problem for me, to see how quickly we can restart the economy. if that requires higher debt, so be it. i think that is really kind of the line of thinking that politicians and the fed should have right now and that is what yellen suggested, that there is a need for strong action right now to stimulate the economy, for the u.s. to not go into deep recession and that is far more important to me than what -- at the moment. annmarie: with the incoming biden administration, we know that you like the tech sector. are you worried about the regulatory risks to this administration in terms of the technology sector? maria: that's right. the technology sector for some time. i would have to say -- we have

been living for almost a year relying on technology, day in and day out, and yes, there is a risk from potential breaking out, but technology has proven itself a real lifeline. to me, again, i don't think fighting technology companies right now is absolutely a key priority. we need to restart the economy. something that potentially could the more important i would say is maybe some tax regulation. as we discussed, the u.s. government will need to spend enormous amounts of money to kickstart the economy and stimulate the economy and it needs to come from somewhere so some closings of some loopholes would probably be more kind of urgent avenue and yes, the technology sector can get caught into that. ironically, real estate is the one sector with the lowest tax rate so that's potentially where

risks are, but i think things like antitrust, breaking up technology, i'm hoping it would not be among biden's administration agenda. annmarie: maria stays with us this tuesday morning. thank you for your time. let's get a recap of the other news you need to know this morning with laura wright. laura: italian prime minister giuseppe conte is facing a crucial confidence vote in the senate today after winning the backing of the lower house of parliament. last week, former premier called out of the governing coalition, leaving him without take coalition. boris johnson plans to host an expanded g7 summit in june. it is worrying some members who fear the u.k. may be trying to restructure the group. johnson wants to establish a so-called coalition to counter china and other authoritarian dates. is also keen to project the

u.k.'s influence now that it's less the e.u. the incoming biden administration plans to block president trump's plans to allow travel from the e.u., u.k., and brazil. the white house was promising to resend the band by the spokeswoman said the new president will keep the restrictions on the advice of his medical team. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus, annmarie. manus: thank you very much, laura wright at london hq. coming up, big bank earnings continue after a long holiday weekend in the u.s.. bank of america, goldman sachs, kick off the earnings reports. we have the details. this is bloomberg.

manus: it is your daily diet of "daybreak europe," with me, manus cranny, in dubai, and annmarie hordern in london. wall street scheduled to deliver their quarterly results today followed by a on wednesday. the results of citi and jp morgan, their share prices slid. what happened and why? dani burger has the inside track. dani: in the bank earnings we get this week, there will be a really strong focus on capital markets. ipo activity has been really big in the fourth quarter. in the second half of 2020, along with just market volatility in general so that's going to benefit banks like goldman sachs and morgan stanley but the dichotomy we are going to see is also what affected some of the bank earnings on friday, that consumer response. it is the consumer going to be able to hold up? bank of america might not do as well because of that. we have heard them call for more stimulus. jp morgan on friday saying they

need a longer bridge to help the consumer so credit card data will be important this week. we have seen some pulmonary data from bank of america saying that credit card spending at least in the start of january surged by 10%. 20% if you look at the people who received stimulus payouts serve stimulus outlook, how that affects banks, that's going to be important along with buybacks, the fed allowing buybacks to resume. goldman sachs and morgan stanley said they planned to restart share repurchases this quarter. annmarie, manus. annmarie: very excited about those buybacks. thanks so much for dani burger. still with us is state streets maria. we talk about this every time you are on. we know you do not like banks. the quote is "you have to pay me to buy banks." i know you thought the provisions coming down were very good. u.s. banks are starting to get the green light for buybacks.

does any of this intrigue you at all? maria: this quote is going to haunt me for years. our main beef with banks is low interest rates make it difficult for banks to make money in commercial lending. the interest margins are still depressed but you are absolutely right. banks made a lot of money and investment banking and trading activities. it has been a great year. they are seeking money and they really want to give it to shareholders and that is a very positive short-term catalyst. banks do probably well on that and i will have to eat my words again but longer-term, it is still a challenging situation for consumers and still a very difficult situation for net interest margins. interest rates have gone up a little bit but it's really not enough to kickstart this kind of

moneymaking lending machine where it's very difficult. the one stock that caught my attention in the jp morgan report is how much the loans to deposit ratios have come down. the long-term for banks, how much moneymaking. if they are not making money on lending, it's very difficult to make banks for a long-term investment proposition. manus: you don't capitulate and wave in the wind. you have a view and stick to it and resolutely. don't worry, amory has them at -- annmarie has a memory of an elephant on this show. thank you maria, state street, stays with us. final showdown? annmarie: final showdown. manus: giuseppe conte with a confidence vote. ♪

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annmarie:annmarie: good morning. this is "daybreak europe." i am annmarie hordern in london with manus cranny in dubai. giuseppe conte faces a high-stakes confidence vote today in the senate. a narrow win would allow him to stay in power while defeat would force him to offer his resignation. the final showdown comes after he received the backing of a lower house of parliament on monday. still with us this morning, our guest from state street. this is italy's 66th government since the end of world war ii. this is basically a government every 1.2 years. our kits for the most part seem to be shrugging this off. what are you expecting from christine lagarde and the ecb this week? the ecb is the one really putting a backstop on the government bonds. maria: that is exactly the

point. the 66th government and we almost kind of -- italian governments don't change often enough where we begin to worry. i have to say in a world where money is virtually free and investors are super hungry for yield, i struggle to worry about things like changing governments. the ecb is there. there is an enormous amount of money to find any yield anywhere so it's difficult to see markets worrying too much about it. manus: can we just chat a little bit about that? i'm trying to find it in my i.b. , she shared a story this morning that we are peek -- she has been very kind to me this morning. it is about -- is there any risk of peak ecb? and their patience or liquidity for italy at all, as goldmans

would say? maria: i will probably take the other side of this trade. it is difficult to see people until economists get healthy. i said it before and i will say it again. it's hard to have a healthy economy before defeating covid and that is a priority. if it means the economy needs to slow and we need to take a pause and central-bank government needs to pour an enormous amount of money into the economy, that is what needs to be done and it's very difficult to say that now, it's time to stop. it's not. annmarie: what about the recovery fund? do you expect any of this political uncertainty and drama in rome to shake where and how the recovery fund could be deployed? maria: i think it will create uncertainty and drama but ultimately, no. i think money will be made

available. we have seen a lot -- it was obviously quite different but we have seen a lot of drama with hungary demanding things but we need to ultimately spend money to recover the economy and that is paramount, so yes, there will be drama. there will be lots of politics around it but ultimately, money will get deployed. manus: there may be trouble ahead. there is a song in that. europe exposure, if we think about it, big industry, high luxury. it is that high relationship. where do you want to deploy in europe if not the banks? maria: if not the banks, definitely. first of all, thinking about europe itself in terms of regional portfolios, you are absolutely right. you want to have a lot of cyclicality in your portfolio, some -- something to china.

definitely true. if you think about regional exposure in your portfolio, the emerging market. you have to think about which -- where do you want to play? both of them are very cyclical, dominated by a lot of exporters, dominated by a global industrials, consumer discretionary companies, but then i would choose japan over europe in general because there is wide concern about currency strengthen and that is beginning to take a toll on the earnings outlook so we will be beginning to see earnings momentum in europe coming down as the currency strengthens so that to us as a little bit more concerning on european equities. manus: we are going to have to draw a line in the sand.

you can capitulate on banks any time. our guest host from state street. a live shot of the capital. we are going into inauguration day, last day of trump in the white house. last day of the administration. ♪

annmarie: good morning. from london, i am annmarie hordern with manus cranny from dubai. this is "daybreak europe." janet yellen will tell a senate committee it's time to act big on stimulus. this on donald trump's last full day in office. goldman sachs economic outlook faces a scrutiny and it reports fourth-quarter results.

italy's prime minister wins a first vote of confidence. manus, very good morning to you. a lot going on in the political sphere, especially in washington, d.c. it's the final day of president donald trump and his administration. there's questions about what pardons will be coming from this administration. we have a live shot of the capital, and then muniz turned tomorrow, in about 35 hours or so, we will have a new president , biden swearing-in, calling for unity, but how does he do this while many of the republican party, including the president, donald trump, who will not be at that inauguration, still reject the outcome of that election? manus: absolutely, it will be 100 million vaccines in 100 days. what can biden do on health that is deliverable and demonstrable to the american public?

the op-ed we have this money from tom, and again, 30 minutes ago, i warned you, there is a bit of a charm. what tom was saying this morning, there is zero chance -- a banana republic republic. the odds are too low. the article is written with scott johnson. it's not saying the u.s. will turn into a banana republic tomorrow, that you go into a dictatorship snow mario, but he looks at funding and the disintegration of democracy and it is the slow, slow ebbing away of democracy that is a risk that may be we are not genuflecting enough today. annmarie: and you are talking about what can actually get done in 100 days. one thing for sure, front and center, is going to be the economic pain that many americans are dealing with and that is where janet yellen is coming in. today, she is going to be

talking about and selling this 1.9 trillion dollar stimulus plan and that of course could bring in the dollar, it's down for a second day, the dollar index. this will also be front and center because she is going to be touting a very different policy than the trump administration. manus: absolutely. i think was stephen englander said over at standard chartered. we expect yet to choose a weaker dollar -- janet yellen to choose a weaker dollar over the competitive advantage head larry summers, very good friend of bloomberg shows, says she should not be indifferent to the dollar so what does the market force do for the dollar? there you go. it is the last -- you got coffee. what have you got, coffee? [laughter] annmarie: no, it's tea. we don't want more caffeine on this show. manus: she is becoming more british by the day. it's the last full day of the trump administration across the atlantic as the e.u. is hoping

for a renewed cooperation with america under the biden administration after what could be described as a rocky for years. maria tadeo rolls with the punches every day. she is used to a rocky road. good to see you. special relationship for the u.k. what are they going to call the e.u.-biden relationship? maria: it's a good question and they will probably -- renewed partnership. that's very much what they are hoping to get from the biden administration, especially after four years, like you said, very rocky relations with the u.s. under trump where we know there were tensions over climate, tensions over trade, tensions on foreign policy, brexit, pretty much everything that you can think of. when they look at biden, the europeans see the more traditional american leadership in the world and some of the names he is bringing in and i'm thinking of course of the secretary of state who is

replacing mike pompeo. you are going from someone who is very much of a hawk, america first, to a man that speaks perfect french, that knows the workings of the european union very well so they are hoping to rekindle ties and focus on points that they have in common and i'm thinking of course of multilateral trade, climate change, and so on. what i would note, and this is really important, because it does change the dynamic going forward, is the europeans say they want to pursue their own strategic agenda, that if anything, the trump legacy does show that europe needs to wake up, that you should not just rely on the leadership of the united states going forward, should not follow that path lightly, and that perhaps is a change in dynamic where until now, europeans were always keen to follow u.s. policy. there is this phrase i always repeat. this european strategic autonomy gets mentioned every day here in brussels. annmarie: what about the other key partnership, which is of course the "special relationship" specifically

between the white house and downing street? maria: right. that's also a good question. how special is this relationship going to be hunter biden? you know -- under biden? there's been many jokes where joe biden says he's irish, he's very happy to come from an irish background, and he has a catholic. that has sparked a debate as to whether or not he would be a good fit for boris johnson. that is just speculation. you could say it's a light note of humor. the big question is the trade deal. president trump was a clear brexiteer who said openly many times, i do not like the european union, and the u.k. will get a quick deal if i get reelected. that dynamic could change. that could be a problem for prime minister boris johnson, brexit, cutting these big deals. that was the whole point of it. there is a delay that could be problematic in the whole sphere of the new global britain that is pursuing its own trade interests in the world.

annmarie: maria tadeo, our reporter in brussels, thank you for joining us this morning. here without now is the director of the ucl center on u.s. politics. thomas, very good morning to you and thank you. i want to start out with this inauguration tomorrow. it is unlike any other because of the riots nearly two weeks ago, because of cobit and the pandemic, but also for the fact that the incumbent president, for the first time since 1860 nine, with andrew johnson, when he decided to skip ulysses s grant inauguration, do we have an incumbent president not showing up to demonstrate to the world a peaceful transfer of power. biden is going to call for unity, but how does he make it happen? how does it actually happen given how tense the politics are in d.c.? >> good morning. if anyone is positioned to bring the party together, it is someone like joe biden who

promised to bring back normal politics of washington and lower the collective partisan temperatures, but i'm doubtful that he can make any more than incremental progress in the current landscape. one poll showed only about a quarter of republicans think the 2020 election was legitimate. it's hard to make inroads when a sizable portion of the electorate does not think that the future occupant of the white house is deserving so even if biden does everything right, and he will not, he will make some mistakes and some issues are just by their very nature partisan, the only way polarization will lessen the is i think if there is an evolution within the republican party. that means a broad-based -- not -- a broad-based pivot away not just from trump but trumpism and what it represents. it seems to me unlikely so it will be an uphill battle for sure for joe biden. manus: good morning to you. i'm sitting in part of the world where trump came to -- he came

to saudi arabia. he very firmly put his stamp over that. biden's mantra is build back better. how will he balance year one with his priorities? we understand there is domestic and stimulus and covid relief versus perhaps his global footprint. how will he balance 2021? thomas: i think that primarily his emphasis is going to be at home. building back the united states, building back its infrastructure, getting jobs back on track, insuring the economy recovers from this pandemic has to be priority number one, and everything comes second, and even the united states and its role in the world, its ability to project power, it has to start within. the united states has encountered so many challenges to its own democracy that a lot of citizens across the globe are looking to the united states as a paragon of democracy and wondering if it really serves

that role. if the united states wants to be a strong global player, and it certainly will regardless, but if it wants to do so with the moral clarity that it has in previous times, it's going to have to focus on some of these domestic challenges, bridging polarization, and just ensuring that these other big domestic challenges are solved. manus: manus i kno -- -- annmarie: manus is key on the foreign policy but i'm also transfixed on the policies of bc right now. president obama said he wanted to work with a bipartisan approach to legislation. we know that did not work. biden says he wants to do the same. is there any reason why we think it should work in this next biden administration, which some people say is almost obama part two? thomas: that's a great question. one thing joe biden certainly has going for him at this point is that he controls both

chambers of congress. democrats winning the senate in that georgia runoff will make his cabinet confirmations more straightforward and it will make it easier for democrats to control the agenda. in some ways, i actually think controlling both chambers of congress could make governing a bit more delicate for biden and the reason is that he will probably get tugged a little harder from the left flank of his party because there is no divided government and in policy directions on climate change, health care, etc., i don't know if he actually wants to go because he said he wants to be more of a centrist. and probably where he really cannot go, ultimately, senate rules make it very hard for even the majority party to get legislation through without at least 60 votes so any policy successes will still have to be the product of compromise and we will see from the very beginning with this covid relief package how effectively he is able to bridge some of these divides and

forage coalitions with republicans. manus: thomas, where is the burning fire in terms of policy? we talk about him trying to have this bipartisan narrative and healing and bringing people together, but there are certain touch points in domestic policy that are going to be quite literally red rags to a bull. where are the most delicate of policy matters that could erupt? thomas: i think if there is one area where joe biden could get some bipartisan compromise, it might be in the area of infrastructure. and this is something that even donald trump, if you recall, tried to make a signature platform, but was rebuffed. i think that there is a fair amount of democratic as well as republican consensus that america's infrastructure is broken, that it needs to be improved.

this is roads, tunnels, airports , other forms of infrastructure, so he's looking for somewhere to get on the right foot, and i think it might be there. somewhat complicated with that is that he has kind of rolled his broader infrastructure plan into a blueprint for climate change which of course is a bit more radioactive for republicans, so that could run into some roadblocks. other places where there might just be a lot of controversy, certainly on immigration if he tries to push too hard there, there will be significant pushback, if he tries to push too hard on health care, there's going to be significant pushback. all these third rails in american politics, it's delicate for any president, and especially one who has come up in such a fraught partisan environment. manus: thomas, thank you. our columnist this morning says there is zero chance the u.s. turns into a banana republic.

we are a little bit too low on the probability of that. thank you. joining us this morning. coming up on the show, we are all about italy. the prime minister wins the first vote of confidence but the real test comes today in the upper house. we will discuss. this is bloomberg. ♪

manus: it's "daybreak europe" with manus cranny into by and annmarie hordern in london. the beginning of the year, saudi arabia and its allies restore diplomatic ties with qatar. the dispute centered on accusations that it was undermining attendance to isolate iran. speaking exclusively to bloomberg, simone foxman spoke to the qatar foreign minister and again, he's calling for a gcc summit. >> the time should come where

the gcc will sit on the table with iran and reach a common understanding between the countries that we have to live with each other. iran cannot move the gcc away from his neighborhood and the gcc cannot move iran away from the neighborhood. simone: is that time now with a biden administration perhaps like it may return to the 2015 nuclear deal? >> well, we hope that what will happen between the u.s. and iran -- we hope that they are around to reach a solution. that will help between the gcc and iran. of course, everything is interconnected at the end of the day. simone: do you want qatar to be the center of those discussions? oman played a very large role last time around. is this something that you see yourself?

>> for us in qatar, what we want is accomplishment. we want to see the deal happening. wherever it is, whoever is conducting these negotiations, we are going to support them. if qatar will be asked by stakeholders to play a role in this, we will welcome this idea. we maintain a good relationship with the u.s.. we maintain a good relationship with iran. iran is our neighbor. they have stood with us during the crisis and supported us. i believe there is a mutual respect between the countries that allows qatar to play a special role, reaffirming that if any country will play that role, qatar will be fully supportive for that and will not do anything unless it is being asked by the parties. simone: it looks like south

korea is perhaps reaching out to qatar for assistance in resolving the tanker and crew that are detained in iran. what assistance are you providing them, if any, and what is the situation right now? >> with the south korean tanker crisis, we have received the request from the korean government. right now, we are working on it with iran. they are talking to each other directly actually and they might just need qatar's support for the process. our response to our friends in korea that if there is anything we can do to help, we are going to help. we are talking to the iranians and we hope that we can help in facilitating that.

annmarie: qatar's foreign minister speaking to simone foxman. hsbc plans to accelerate its expansion in asia as part of a new strategic review. the chairman told bloomberg at the asian financial forum that the world has changed since last year's overhaul. hsbc's plans need to be more radical. >> i mean what we said is the strategic plan that we set out in february last year really aimed to transform hsbc over the medium-term by effectively shaping the organization investing in growth. the world has changed. low rates are likely here to stay. economic reality means that what we were doing, what we were planning to do in february, we need to be even more urgent in doing, so we are accelerating the plan by confirming areas of focus in the bank.

especially in asia, where we see at -- we see real opportunities to expand across south asia. technology is a key enabler. again, we want to capitalize on this, building more capabilities. we made long-term climate commitments. we spent this last session discussing it. we are intending to sort of up the pace, up the intensity, and up the delivery in 2020. >> china is somewhere you will be making a big push across wealth management and private banking. the greater bay area will be a key focus. what are you planning, very quickly? >> across the area, particularly on the wealth management side, we see substantial opportunities but also on the banking side within the greater bay area. it is the opportunity to have

and lead in finance across the greater bay with the marketplaces that are there. it's an honestly exciting in our intent is to step up commitments, step up investments across the greater bay area and in areas of the wealth business particularly. >> marc tucker, hsbc chairman, speaking exclusively to bloomberg. coming up on the program with manus and i, italy's p.m., giuseppe conte, faces a crucial confidence vote in the senate. his premiership at stake. that is coming up next. this is bloomberg. ♪

annmarie: good morning. this is "daybreak europe." i am annmarie hordern in london with manus cranny in dubai. giuseppe conte a faces a high-stakes confidence vote in the senate. a narrow win would allow him to

stay in power while defeat would force him to offer his resignation. joining us now is bloomberg's bureau chief. alessandro, good morning to you. does giuseppe conte have the votes he needs in the senate? alessandro: that is exactly the question, whether he has enough votes in the senate where he already has a razor thin majority to carry on. there are three scenarios and i will explain them quickly. the first one, you get more than 161 votes. he can carry on. if he loses, he has to resign. if he winds the vote -- wins the vote, he leads the minority government that cannot pass ballot measures which means he would probably -- for weeks or months as he tries to find more support in parliament. manus: great to have you with us

this morning, alessandro. any move in the yields or was it fairly flat? alessandro: that's unlikely. as long as the ecb is in the market. so far, italian bonds have not reacted much to the crisis and the main scenario investors fear, which is snap elections that might ring him into power, u.s. far-right parties -- no matter what happens today, it remains a remote possibility for now. manus: our bureau chief speaking to us. let's see how the vote goes today. i have got a bit of an announcement for you. i am one of the very lucky people here in dubai, one in 18 of us have got the vaccine so i have just been vaccinated yesterday evening. annmarie: that's very exciting, manus. manus: it is indeed. annmarie: one in 18.

i'm looking at our tracker. i'm looking at our tracker. one in 18 in uae but in the united kingdom, it's 6.8 doses for every 100 people so we are very excited and pleased. share how your feeling on twitter. people want to know what it is like to go out and get the vaccine. that does it for us. this is bloomberg. ♪

anna:anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london. alongside matt miller in berlin. matt: good morning. today, the markets say who is driving? e.u. new car sales slumped by the most. stocks and futures push higher but as bank of america and goldman sachs reported today, they will prepare