and there are over 20 exercises to choose from. get gym results at home. no expensive machines, no expensive memberships. go to aerotrainer.com to get yours now. manus: good morning from bloomberg's headquarters in dubai. i'm manus cranny. annmarie hordern alongside me in london hq. it's "daybreak europe." a huge day for covid results across europe. we will speak with unilever and the cfo of deutsche bank. the treasury curve steepen spirit stimulus expectations rise.

loretta mester says policy is in a good spot. james bullard does not suggest tapering just yet. u.k. officials say the nation has passed the peak of the latest virus wave. attention now turns to the bank of england's role on decision day. we are waiting for the deutsche bank numbers. we have had lots of bloomberg scoops this week. the trading, those meat-eating bond traders. commodity and equity traders on wall street with a fairly robust investment banks set of numbers. let's see if that is what they deliver. we are looking for that revenue on the investment bank of $1.4 billion. good morning. annmarie: steven arons with this group before the results this morning. the ceo is really leaning into the trading department in order to be able to bring some profit

back into deutsche bank. it's going to be interesting to see what they performed today because of course we also had commerce bank, which yesterday, we learned is going to post a loss of almost 2.9 billion euros for 2020. the 2020 loss, almost completely wiped out the banks profit over the previous five years. i read that this morning. just absolutely stunning. manus: we mentioned that this is going to be a big day on the earnings front. we are rolling them up. let's get a couple lines coming through on the pharmaceutical side. slightly different metric that the market focuses on. earnings-per-share. 19.6 swiss francs, lower than the market had anticipated on the full year, on the core profit. $21.54 billion. that is again just a little bit lighter than the market had penciled in their on the -- there on the russian numbers.

on the sales side, light on sales, light on profit, light on earnings-per-share. annmarie: there is literally a slew of earnings hitting the tape right now and a number of them coming out at 7:00 and we are going to be speaking to a number of ceo's and cfo's throughout the day regarding the earnings lineup today including in this show, talking to the other ceo's as well as at the 7:00, speaking to the ceo of shell. of those earnings are coming out at 7:00 and then the unilever ceo, those results out at 7:00 as well. manus, a number of earnings reports dropped today as well as tomorrow. we are still of course waiting for deutsche bank even though we do know a little bit of what we can expect from deutsche bank given steven arons really had that scoop about the fixed income trading. manus: take your mind back to december time, when we had the

guidance. deutsche bank exited the equities. they have grappled with the restructure of deutsche bank. exiting the equity strategy and upgrading and leaning in, to use your phrase come into the investment bank. take your mind and let's flick it across into ubs. ubs ramped down the scale of the investment bank, integrated that into wealth management, making it a much more integral for, and this a discussion is about when with the two institutions be at a comparatively equitable level to join one another in the sanctity of marriage? that comes -- in this entity of marriage? deutsche bank could begin to re-accelerate. annmarie: we are going to be speaking of course to the cfo, looking forward to that conversation. the deutsche bank cfo will be coming up in 30 minutes time, 6:30 a.m. london time. james.

coming up. we should note to our viewers that we have a great one regarding deutsche bank to take us through the numbers and simply game highlights before those numbers drop with the german lender. manus: i like your phrase. the pregame highlights. let's talk about the ceo. many people in 2020 question that strategy. the medium-term profitability goal, that whole concept of medium-term profitability goal was about achieving stronger growth in the trading unit. let's leave it there. tliv is available for everybody that has the bloomberg. they are sitting and waiting patiently. we will come back to that. let me just pause for thought. we are going to go to the first word. a pause is always good.

it helps me recalibrate. let's get to the first word news with laura wright. nora. laura: thanks. oxford university is starting a trial combining the covid-19 vaccines from astrazeneca and pfizer. it will see of two shots of different vaccines are better or worse than two doses of the same product. it could enable greater flexibility in the rollout of the shots across the world. president joe biden said he will not retreat from his promise for a $1400 stimulus check but he is open to tightening up the eligibility rules. in the past two rounds of aid, people earning up to $75,000 could get the full payment. cats are weighing lowering the cap $50,000. protests against myanmar's who are growing. the military is tightening its grip on power, ordering internet service providers to temporarily block access to facebook. authorities charged the former civilian leader with violating

important rules and possessing illegal walkie-talkies. 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. annmarie, manus. manus: laura, thank you very much. laura wright on the first word news. let's stay with the earnings front. fourth quarter with the profit of almost 5% better than was expected. because of the smaller impairments and better-than-expected topline. the lender has set a target of net zero carbon emissions through 2050. the bank wants to reduce the emissions from lending and investment by 40% to 50% by 2030. let's see how the numbers play out. we have the ceo. thank you so much for being with us. let's get to your numbers, first of all. some would say the nordics have been a little bit less battered and bruised by covid.

give me your outlook for 2021 as we come out the other side, hopefully off a pandemic world of covid-19. >> good morning. but nordic economies have handled covid well. nordic economies are generally strong. we have seen very fast and also powerful actions from governments and authorities and we as a bank have been in a strong position entering the covid-19 crisis. that has led to i think -- through the covid-19 pandemic in quite a good way. of course, [indiscernible] but lest i should say. we expect the economy to bounceback, to start to bounceback, to be back to more

normal shape. annmarie: frank, you guys are accelerating the further cost reductions for 2021. how do you plan to achieve those for the cost cuts? frank: it's more of the same. it's not really that complicated. it's about efficiency. all the things that we do that makes great value for our customers. we try to know what to do or do it in a different way and that is what we have been doing the last five quarters and it works and we will continue to do so. at the same time as we will drive income growth initiatives and create better customer experiences and that combination has led to a good thing. manus: you have a slightly more unique position of a dividend story relative to your european peers. you can perhaps pay more

generously. do you think that puts you into a more advantaged position? frank: we have a very strong position. one of the strongest in europe. at the moment, we are running with a ratio of 17.1%, which is 70% higher than the requirement -- the requirements from the ecb. that's after we have full dividends. so we are in a good position. we have followed the recommendation of the ecb. we understand the reason behind the exceptional measures and have followed these recommendations. dividends are important for shareholders and societies and that is why we now have decided -- the board will decide in february to pay out the first

installment of the dividend of seven cents, in line with the recommendation of the ecb, and we will decide on mandates. we will decide on a dividend, first of all, to pay out the main part of the dividend. a dividend of $.39 to be paid out after september. annmarie: are you nervous you will not be able to compete with your swedish peers? >> no. annmarie: short and simple. manus: frank, we -- annmarie: frank vang-jensen, thank you so much for joining us this morning. frank vang-jensen. staying the course for fed officials played on the retail frenzy as they signal the central bank will not be tapering its massive bond buying program anytime soon. that is coming up next.

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>> at some point, they are going to have to turn the dial back away from significant accommodation, and when they touch that dial or when they are perceived to touch that dial, markets are going to react so i think it will be difficult for the fed to avoid a bond taper tantrum. manus: reconciliation moment. bill dudley warning the former president of the federal reserve bank of new york, the central banks massive bond purchases. i don't think he is telling us anything we don't already know. the fed would be asphyxiating if they thought they had a 2013

moment on their hands but if you look at the language of the fed, you have got everybody out in tour de force last night. loretta mester, you are talking about some hawkish voices here that were in a good spot at the moment so the last thing that they want is to shake this market in any way on that. that's on your bloomberg. they want to keep it. annmarie: one thing i was thinking about when i heard him say, the fact that there is a worry that it could -- that taper tantrum is something that has scarred the memory of jay powell. the first time he was at the board, he said we should go for it and what many are saying is we are not going to see it until 2022. that is when jay powell's term is up so he might be able to avoid that as the fed chair and those are the officials, manus. let's take a quick check. 6:15 in the city of london. the are seeing a little bit of

weakness when you look across on the msci asia pacific and asia as well as s&p 500 futures. we are down more than .1%. it's all about the bond market. widest since february of 2016. gap rising by 147 basis points. joining us now to break down all of this is the founding partner and ceo. very good morning to you. thank you so much for joining us. short-term yields of course, locked down by the fed. steepening at least in part due to inflation expectations, stimulus expectations on the longer have, but evans is talking about the fact that he is unsure if it is embedded in terms of inflation expectations. are they embedded? what is your take? >> is hard to see inflation at the moment with everything going on around the world. you are seeing unemployment play out. you will see oil prices higher, which is not great news. you are not going to see

inflation going through over the longer-term. bond yields will stay higher rather than lower for the time being. even though in europe, we have gone negative rates. you have germany about -2.57 in the u.k. at 0.36. you also have the rotation trade coming on as well out of bonds into equities and commodities on the back of reflation coupled with government issuance longer-term as well. there -- they are all factors to consider but it's hard to see a strong case for inflation longer-term at the moment. annmarie: founding partner -- manus: not at all. annmarie: stay with us. founding partner and ceo. we have a lot going on today and one of those things is so course spacex, set to launch another batch of satellites from the spacex falcon nine.

there it is at the air force station. this is the first of two launches over the next 24 hours. the next one takes place tomorrow from the kennedy space center. this year, the group is planning to launch 40 rockets between its california and florida launch sites and we are about t minus one minute to this launch. manus: absolutely. the mission will launch the next batch, as you say, of 60 broadband satellites so it is in that countdown mode again. this is just another part of the elon musk ambitions in space. let's listen in. >> the first and second stages are fully loaded with propellant. the white cloud deck you see venting is just -- complete.

>> final confirmation. the white cloud is just the leftover liquid oxygen in the load line in the transported director, vaporizing as they come into contact with the ambient air. in just a few seconds, falcon nine will be in start up and the first and second stages will begin to pressurize for launch. >> falcon nine, start up. >> we heard the callout. falcon nine start up. and the onboard flight computers have taken over the launch countdown. >> 45 seconds. >> we heard it. our final go for lunch today. at this point in time, we are green for today's launch. let's listen into the terminal count and watch as falcon nine

takes our stack of satellites into orbit. >> t -15 seconds. 10, 9, 8, 7, 6, 5, 4, 3, 2, 1, zero. admission. and lift off. >> down range. >> chamber pressure is nominal.

manus: spacex launch recovering. deutsche bank numbers finally hit the tape. the first annual net profit since 2014. if i see revenue up 17% versus the 10% on wall street. this scoop was on the money for bloomberg. fic is the narrative leaning into the investment bank. comfortable numbers. the first annual profit since 2014. let's get to the tliv. a couple of other comments coming through in terms of the capital. 13.6%. that is above the estimate of 13.2%, so what we are seeing is a comfortable set of numbers for deutsche bank coming across the tape. what else stand out for you in terms of the numbers? annmarie: they are reaffirming their target for adjusted cost reduction. i have to think deutsche bank wanted to line up their results earnings from the spacex launch

as well. the ratio, 13 .6%. estimate was for 13.2%. really, as you mentioned, the top line from deutsche bank is they are having the first annual net profits since 2014. manus: bone loss provisions, this is something we saw ubs deliver stunningly low loss provisions because they have in theory less exposure. fourth-quarter credit losses, 251 million, little bit of head of where we were -- ahead of where we were. that's to hunt at 74. they are reaffirming their cost reduction program. the ceo is confident that the positive trend will continue. this is about the upswing. kisses and fic bank, not an equity bank. they had guided lower on the earnings on the back end of last year. let's take the conversation to our guest host, founding partner and ceo.

here we are. we are knee-deep in earnings season. give us your take first of all on what you are looking for as they most important hallmark in this reporting season, whether it is intact, banks, or big oil. what is a critical issue for you? >> i pick up revenue numbers. we can see some guidance from the ceo's going forward and then of course, it's great to see deutsche bank reaffirming their cost-cutting program as well. that has been really loud in the marketplace at the moment with all of the people losing their jobs unfortunately. changes in strategy as well. the european wonders that we have had so far have been really good. we had santander, siemens, novo nordisk, all the really good numbers as well, but if you look at what is actually going on in the u.s., the numbers so far are much better than everyone expected, but to be honest, a good number is already priced into the market.

if you look at q4 earnings, we will be down 2%. revenue numbers will be up 2%. earnings beats have been really good but the market sold into the earnings beats. if you look at the 2020 numbers, it's been a bad year, manus. -12% for earnings. -1% for revenues. it's a pickup that everyone is focused on. if you go into 2021, you look at analyst forecasts, you are expecting 24% growth in earnings on a much lower base but the key number we are really focused on is the revenue number which is up around 90%. you talked about a few -- attack trade still looks very crowded. we are buying on the dip but it's hard to get excited with valuations where they are at the moment. everybody is focused on cloud computing, yes she's have now become very topical as well. we have become more constructive on health care in u.s. financials, trading, and growth, and i guess the more obvious value trade the rotation from

u.s. equities into europe does pretty much run its course now. the rotation into cyclicals, which is the reflation trade, that is -- annmarie: you said you want to take profit in the second quarter but there is a lot of momentum, as you said, with earnings that you think are priced in. with the vaccine news, is it too early to start thinking about taking that profit in the second quarter given the momentum we are seeing on the racks in front ? >> we don't think so. the euro is -- the ftse is around 15. investors are really ignoring fundamentals at the moment and they are focused more on vaccine news. that is the reflation trade as well. covid-19 cases are still on the increase. the way we look at things as markets are priced to perfection at the moment. if there are any key events that disappoint around distribution,

safety, around the corporate earnings fund -- front, markets will start to trade lower, so we think markets at the moment are trading on momentum as we get to q2. they will be more focused on fundamentals and fundamental picture is not as intact as markets are suggesting at the moment and that is the way investors need to think. think long-term. do not trade the short term. manus: what does that do to the differentiation of the spread between u.s. exposure to china exposure? yogesh: that is a really good question, manus. what has happened is you have got a new government in place with biden so we are starting to see the environment between both nations improve in terms of talks and trade. i guess the way we look at china , more and more positive china than the u.s. at the moment. they have got robust growth. gdp growth is 2.3 percent while u.s., europe, and the u.k. are all contracting.

i remember china is ahead of most of the developed world in terms of bringing covid-19 pandemic under control. it has managed to really avoid that second wave, so china, specifically areas like e-commerce, education, health care, where we think they are just much better positioned to do well, we see that spread slowly and gradually winding where u.s. valuations are at the moment. annmarie: china has been a big driver of growth for manufacturing companies. we saw yesterday with siemens, but there's been a little bit of seesawing in terms of the data coming out of china. do you still think china could be in 2021, the big driver of demand and growth for all of these companies in europe? yogesh: absolutely. if you look at slow growth in europe and gdp growth specifically and what is actually going on, we are looking at minus seven .5% in

2020. you're looking at two point 5% in china so there is a massive spread already and whilst we see things improve in europe, we think that the growth is more u-shaped in nature and we will get to around 4% to 5% in 2021. the numbers in china will be back well above 6% to 7% with the way things are going at the moment so i think china and their growth story is really good news for europe. it's a shame that the domestic story in europe is lagging the u.s., lagging china, but there is some comfort from the export led recovery we might see in europe into 2021. annmarie: founding partner and ceo, thank you so much for joining us this morning. a very busy day. thank you for sticking around throughout the rocket launch. we are getting some new comments coming out of the deutsche bank story. those earnings hitting moments ago. we are hearing from prepared remarks.

he said the bank is hitting all of its key milestones, noting it delivered 12 consecutive quarters of year on year reduction in adjusted cost and the key takeaway of course has to be that they were profitable in all four quarters last year despite the pandemic. manus: also on funding, go to the tliv. everybody is there. he is commenting. the bank put aside any doubts that you have that this bank can self fund's transformation and again, this is quickly important. the asset management side of the business, they pulled in 13.6 billion euros in the fourth quarter so that's going to be a boon for them but the top line numbers, may be at wall street, boys and girls, didn't they? annmarie: they certainly did, hitting some serious milestones. we will be speaking in the next

two hours in the european open, speaking to the dws ceo but yet, manus, debt trading delivered a 70% jump in quarterly revenue, still getting some new numbers coming out of deutsche bank but his big takeaway is that they posted their first annual net profit since 2014. we spoke to the cfo. >> we did see the positive momentum continuing. our year on year growth in fixed income was 28%, 21% in fixed income, 28 percent in the investment bank last year in the fourth quarter, and we have seen that momentum carried through to the first few weeks of 2021, which is encouraging for us in terms of the outlook. >> is a similar growth rate. >> one month does not make a quarter but we are encouraged so far in those businesses. >> the outlook for the full year, when it comes to fixed

income trading. >> as we shared with our investors in december, we expect a normalization of the market environment in 2021. the very high levels of 2020 really were not going to be sustainable. a moderation of volatility, very likely a moderation of financing activity, but on the other hand, we are seeing strength in a number of different product areas. i would expect mna to pick up this year. it has been a very vibrant equity underwriting year so far. we expect in pockets, activity to continue, and there's also arguably a rotation back to credit and leveraged finance that may take place this year which are the centers that are relatively the weaker performers in 2020. >> the equities trading market has also seen a great year in 2020. he sometimes regret that you pulled out of it or most of it just before the boom. >> really, we don't.

we made the right strategic choices. it allowed us to focus on the businesses where we truly had leadership positions, and there were certainly times in the past 12 months where we felt that had our risk management focused been distracted across a broad array of products, we might have lost focus where it needed to be. we have been very pleased with how we have been able to manage our risks through this period of time both on the credit and the market risk side and also operational risk so it's not something we regret. we think we made the right strategic choices. >> you also managed in 2020 to achieve the first net profit since 2014 actually. what does this say about your turnaround plan and also what is the profit outlook for 2021? >> we are talking about a pivot to sustainable profitability, to see the fruits of the restructuring that we announced in july of 2019.

we have now demonstrated both the execution discipline over the last six quarters could also the success in terms of franchise improvements. initially stabilization. now, improvement and growth. i think that speaks well for the momentum, as i mentioned, going into 2021. we fully intend to sustain the level of profitability and improve on it as we work to our 2022 goal of an 8% rotc. -- rot. >> you said you want to move excess capital to shareholders. when do you think you will resume dividend payments? kennedy in a years time? -- can it be in a years time? >> we expect it to be this year in 2021. it has been part of our planning throughout to resume dividend payments in respect of this year as the first step towards a much

larger $5 billion return over the next several years. annmarie: the deutsche bank cfo talking to bloomberg's daniel schaefer in frankfurt. manus, just the tliv is coming out with more and more of what we are hearing from christian, a lot of momentum for this bank. if the first time that they are getting an annual profit in six years. she is really going to be leading into the trading part of the bank now. manus: so much easier when you interview these bank ceo's with a good set of numbers. everyone is so much more relaxed around you. comes out with a profit. did caveat one month. i love all bank ceo's. none of them give us a hard time. i don't know whether they love us. one month does not make it. but the strategy is working. we have another ceo, friend of the show. i think he likes us. we are going to speak to the

french software maker. bernard charles, irregular. what does it all mean? we have other inclusive conversations coming up. the executives on bloomberg. unilever. they all join the bloomberg team throughout the morning. your destination for earnings season. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down,

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>> i do not look at it so pessimistically. we need to make the economy rebound. there are no problems with investment in export but

domestic consumption is an issue so how do you promote this consumption? even if you normalize social distancing caused by covid-19, consumption will increase a lot so economic growth will not be that slow this year. manus: that is the south korea prime minister speaking exclusively to bloomberg. he expects the economic growth to speed up and has rejected claims that south korea is rolling out its vaccine program slowly. it is a headache for all governments around the world. let's take a quick look at the markets. we are coming off this a lot. we had a cracking roll up. the question you are waking up to is to whether the soft, sweet spot the fed things we are in is just keeping the pedal to the metal in terms of the stimulus. stock futures down. we come off the lows of the day. european stock futures flat on the day. crude banging higher. opec-plus making the right noises. we are going to rebalance this market.

you are just seeing, you know, they are going to pursue a speedy rebalancing of the market. what else have we got? are we falling out of love with the euro? annmarie: it certainly is. we are seeing some of these bullish bets really start to ratchet back but of course, it's all about huge earnings and we are going to turn right now to the french software firm. it seems full-year revenue between 4.72 and 77 billion euros and an operating margin for the period around 30.8 percent purity joining us now is the chairman and ceo. thank you for joining us. i want to keep it off with your geographical span here. the united states operation when it comes to software is growing at a pace that far exceeds europe. do you think the united states is going to become the bigger chunk of the pie? >> clearly, the u.s. grew 38%.

the major driver for growth in the u.s. was the life science after the acquisition of data, as you know. on 70% of the worldwide clinical trials on the vaccine for covid-19 are based on the platform so this was a major driver. by the way, despite the tremendous pressure, it was out due to military equipment. europe was resilient for marginal 2% growth. it was a strong base before on the driver for the growth despite the fact that biontech is using it for what they do. asia was ok. especially very strong with

china, exceptionally strong with china. manus: let's just pick up that, bernard, because we are interested to get your take on china. some of the data, there's been a bit of a wobble on the activity. are you seeing that come are you seeing any evidence on any shake in the data? are you confident that they can contribute to the global recovery still? is it all intact? bernard: there is a clear program in china for innovation. if you look at all sectors of industry, they are really thinking about a new product portfolio, thinking about mobility, ev's, space, you think about all sectors. energy, nuclear installations and so on on cleaner energy. the program, we notice in 2020,

despite this pandemic, they stay focused on the midterm-long-term plan, how this is driving our growth, so by the way, our costs in china are almost equivalent to the cost structure in europe on the u.s., which now we should not assume that there is, from the type of business we do, cost differentiation is going to be the value that china must address and i think they are doing it safely. annmarie: are you worried about china's 2025 made in china pledge? bernard: well, the made in china , it's not about factories only. it's about portfolio that could be exporting worldwide. i think we should be very sensitive to the dynamic of china when we look from the

european banks or the u.s. based on the competitiveness of new product portfolios, on innovation at the core of it. the view of just the production systems, that view is changing. same for buildings on construction. in this area of construction, for example, europe and the u.s. have been very much behind an this construction is very low penetration in those sectors as compared to aerospace mobility and i believe that china is changing the rules and i think the experience will have been in china first. we are doing it from a modular building so it means the former digitization with 2d drawings is not going to last for the same techniques we did in aerospace.

they will happen in construction soon. manus: let's pivot to homeground, to europe. some would say a dysfunctional rollout of vaccines or certainly an uneven rollout of vaccines. how is that going to stymie or reduce your growth trajectory in europe and what are the end customers saying to you about vaccines delayed, orders delayed, progress delay? bernard: i think this topic is highly frustrating around europe. i believe that this system, the health care system is still across europe, quite artisanal. we are changing the system for integrating clinical trials with the data growing 200%.

the life science sector last year. this sector is going to adopt the platform approach to integrate big data analysis to improve the process in the search development, bioreactor, because one of the issues with production is the fact that those systems are far from being digitalized. the way it is done in aerospace or automotive because they are in which companies? logistics is quite poor. it needs to be improved. it's all techniques. this is where we want to change the world. manus: we wish you well. come back and tell us how the whole platform rolls out for the world and progress as you go through the year. great to have you with house. always a great friend of daybreak europe. chairman and ceo.

we have got more. do not worry. there is first word news. laura wright has that from london hq. laura: a sense of some positive news on the horizon. the u.k. vaccinated about 15% of its population and has passed the peak of the weight is -- latest wave of the pandemic. infections are still alarmingly high. britain is on track to inoculate about 15 million in the highest risk groups by february 15. u.s. securities and exchange commission is combining social media for signs of fraud in the rally of gamestop, mc, and others. sources say the regulator is looking for posts that may have been part of an effort to manipulate the market can drive up prices. yellen will meet with regulators today to discuss the recent volatility. the financial times says the u.k. and e.u. are planning to launch an in-depth probe into nvidia's purchase of arm. nvidia agree to buy it for

$40 billion in the biggest ever deal. but rivals are calling for it to be blocked. 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, ann marie -- annmarie. annmarie: the group the estimates with fourth-quarter operating ebitda and there is plenty more executives to come. the executives of volvo cars, and many more all join us this morning, right here on bloomberg tv.

>> what was the biggest thing you learned about what a leader needs to be? >> it's really emotional. it's about being authentic. it's about believing in the path you are taking. annmarie: good morning. this is "daybreak europe." i am annmarie hordern in london

went manus cranny in dubai. it's a really big, heavy day ahead. a meeting at the boe. policy likely unchanged. the focus will be on the u.k. central banks review of negative rates and then the nato secretary-general will make a major speech outlining his vision for the defense alliance at chatham house in london and later on today, a trio of data points for the united states. initial jobless claims, factory orders, and durable goods orders, so really just a lot to look out for in terms of central banks. big names speaking and eco-data. manus: it is a huge day on the corporate results from the power and automation giant. the operating ebitda and says comparable revenue growth is expected to prove resilient. any economic turnaround in china spells good news for the group. the company derives 15% of its sales from that nation. the ceo joins us.

we have the numbers in front of us. orders are up, margins are up, and your operating ebitda is up, but what is your outlook on china? it is the same question and we are trying to dig into this. how confident are you that it can continue to fuel the global economic recovery and boost corporate earnings and your earnings? good morning. >> good morning. china stands out quite dramatically in this report. up 21% so that is a strong ending but i think china already showed strong during the summer but it accelerated during the year so yes, they tried to boost their performance and i am sure there is also support from the government also to make sure that china continues to grow. i think many companies are

benefiting from it today. annmarie: many certainly are. we heard from siemens yesterday. last november, he broke some news on this program saying you are considering a spinoff for your turbocharging unit. what is the latest? are you going to list it? are you selling it in options? >> we've made the decision last year that we will spinoff off three of our divisions. charging is one of them. we will start that process, starting with the business, the u.s.-based power transmission business. and then we will come later into the turbo business. from that point of view, it's a very solid business. it's quite sizable and it is while performing with steady, solid performance, so it could probably -- that is something we need to investigate, to stand on their own legs, but we will make

that decision a bit later. manus: could you tighten up for the market in any way? last time we caught up, on the turbochargers, you could have a corona discount. i want to tighten up the timing area do you think it will come in the first half of this year, are you optimistic it will come in the first half of this year, and with a vaccine, does that discount drop away? what valuation is it improving? >> you now, if you look at the business, i don't turbocharging will be in the beginning of this year. probably by the end of the year, somewhere around there. the first business we will start with -- the valuations of the businesses. it is difficult to say. all the businesses we are talking about our -- are while performing businesses and well so they should do a good value for the shareholders. annmarie: let's talk about the

dodge unit. it could fetch more than 1.4 billion dollars. is that the price? >> know, we will put it out, and then i think there is a great interest for that business in the market today so we will see where it ends up but it's a nice business, well-positioned in north america with good market share and you know, many of these companies look for businesses in that part of the business outside of the automotive. manus: we caught up a couple of times. one of the things the markets focus on is your transformation of ram and what margins you can deliver. we know you have an activist shareholder. with these divest us, these sales, your margin is 11 point 2%. 11.5% so you beat on that on the operating margin. to tell the businesses what will be the boost to margin and then dividend. tie the two together. >> i think we have been pretty

transparent when it comes to our targets when it comes to financial performance. the group will reach 15% in 2023. i think where we are now, i think we created a good foundation. we have set the new decentralized organization in place. we have gone through our radio. we have sustainability -- we have set the sustainability targets. we cleaned up a little bit on the balance sheet. i think moving forward, we are well-positioned to get where we want. annmarie: thank you so much for your joining manus and myself. he is the ceo of abb. one final thing we have to mention, you are going to be off tomorrow but you are leaving me with a fantastic interview. he spoke to david. i don't need to explain who he is. he said my job is to make people happy, and he is hoping we get a

summer 2021. will we get a summer 2021, manus? manus: he is hopeful. he says we are going to party like we never party before when we come out the other side united together. it's in dubai. it's in the background there. this man really is star quality. turns up on his own, no entourage, no explanation. i have to say, it's the best 200 pounds. her producer is listening to the daybreak remix by the producer of daybreak europe. daybreak middle east. annmarie: he sometimes helps us out as well. what's interesting is that actually, his view, to me, matters. he is talking to a lot of event coordinators essentially while he is playing a show this summer. he has a bit of an insight on when lockdowns may lift and we will get back out into normal life. manus: absolutely.

he has done an avatar of himself. he would not give me anymore in's as to what the future of our clubbing will look like. i will leave you with that thought. this is bloomberg. ♪

>> good morning. welcome to "bloomberg markets: european open." i am anna edwards alongside matt miller in berlin. matt: today, the markets say it might be time to bail. a three-day rally in global stocks fades as earnings role in but european futures are all trading higher. the cash trading is just one hour away. here are