♪ annmarie: good morning. it's 6:00 in london. i'm and reordered. this is daybreak -- i'm annmarie hordern. this is daybreak london. a sluggish u.s. labors market, eked out another all-time high, asian trade curtailed by the holidays. joe biden said the united states clinched deals for 200 million

more vaccine doses and enough supply for all americans. and a five-star rating, mario draghi wins the backing of his biggest force in italy's parliament as he prepares to form a government. very good morning to you, happy friday. let's get a quick check on where we trade, u.s. futures roughly flat, but there is some red on the screen. yesterday, we hit an all-time high. most of asia's closed for the lunar new year, dollar strengthening against all of g10, little bit of a bid hole deals a touch softer, and bitcoin hitting another record, the latest catalyst comes from bny maryland, saying it will hold, transfer, and issue bitcoin. likely not going to be the last, that's something we're going to be watching. and this momentum we're seeing is due to some decent signs in the u.s. labor market.

it's improving gradually. this comes as jobless claims decreased by 19,000 to just over 790,000 last week, continuing claims, an approximation of the number of people filing for these benefits, fell by 145,000 to more than 4.5 million in the week end of january 30. the federal program, they saw a huge increase in january. any recovery in the labor market will be driven by the ongoing vaccine drive. that continues. president joe biden announced the u.s. finished deals for 100 million additional deals, each from pfizer and moderna. >> when i took office just three weeks ago, this country did not have a plan, or in effect scenes, or people -- or in vaccines, or people to vaccinate americans, all americans, at any point in time in 2021. within three weeks, we've now

purchased enough vaccine supply to vaccinate all americans. annmarie: joe biden there. we'll get what all this means for markets with our guest shortly. we do have ing numbers coming out just now and the top line, the street was looking for $499.4 million, they brought in 720 million euros. joining me is the cfo of ing. today, very good morning to you. your track record for 2020 has been very much a reverse of what we saw in earlier years where you are a standout performer. you are behind your peers. why has ing been hit? >> i think 2020 has been an extraordinary year, and i think

we're very proud of what we've been able to achieve during this rather difficult period. if you look at our promotional performance, our customer has never been more digital than it has been during this period of time. and i think that's what we are really proud of. in particular, we are very much proud of the fact that we have been able to help a lot of our customers get through this difficult period. now, to address your questions in respect to performance, i think if you look at our overall profit this year, 2.5 billion euros in profit, very strong capital ratio, i think it stands reason to recover in 2021. annmarie: so, what are you going to do to reverse those trends? >> yeah. i think if you look at the overall performance of the bank during 2020, it's been a reduction in loan growth, which has been historically very high for us. and we have seen reductions during the course of 2020, particularly in our wholesale

banking activities. but we think with a better macroeconomic situation, that lung growth will actually resume, with pricing in additional income growth. we believe we're back on track after a challenging 2020. annmarie: looking at your fourth-quarter loan loss provisions, they came in less than what was estimated. is the pandemic going to be behind you? what are you starting to see in the first few weeks of 2021? >> yeah. if you look at our last provision, it's suddenly lower than q3 and much lower than q2 of 2020. and i think that just shows the resilience of our franchise and the resilience of our customer base. so, we have one of the lowest nonperforming loan ratios for the european market. and i think for 2021, our expectation is that the loan loss provisioning would be moving towards our through the

cycle averages. we expected to be lower than what it is for 2020. annmarie: you're also proposing a cash dividend of 12 euros cash per share. would this be after september, 21, in which the ecb was asking banks to refrain from lifting those dividends? >> yeah, so our capital ratio is very strong, 15.5%, one of the strongest capital ratios among our peers. and i think the $.12 payment of dividends will happen right after fifth quarter, so somewhere around end of february, beginning of march. we also have additional dividends for the full year of 2020 and the amount with a flexible cash distribution, that was not paid will be done after september, 2021, depending on, of course, the recommendations of the ecb. annmarie: what about a buyback

program? you're talking about dividends. could we see a buyback program this year? tanate: it's something we have a nest at the market in q3. we're looking at share distribution, and that could be a form of cash or buybacks. we're open to different instruments basically deliver cash returns to our shareholders, indeed. annmarie: consensus right now only anticipates return in equity, raising a percent by 2023. your target is anywhere -- 8% by 2023. your target is anywhere between 10-12%. is this a target you have to dig now? -- ditch now? tanate: good question. judging us on a difficult 2020, but i think what we want to give up the ambition of 10-12%, if the economic activity approves

-- improves, as loan-loss recovers. we still have the ambition to go for that 10-12%, but we do recognize the challenging macroeconomic actor and interest rate picture -- picture and interest rate picture, which is bearing on us, as well. but we do intend 10-12%. annmarie: and a you say the bank is back on track. it's not just ing, but many banks. it's been challenging. you think of it now be the catalyst to accelerate cross-border acquisitions and mergers between some of the banks? tanate: not really. not so much covid, but the acceleration of digitization of channels, which is really transformed the banking system, including ing, because of covid-19. i think we have never seen our customer be more digital than they are today. 87% of our customers deal with

us online. on bank consolidation, i think it's a separate commerce -- separate topic. on, consolidation, i go to strategy has been through organic growth -- on consolidation, our go to strategy has been through organic growth. and that's been our strategy for the last period of time. annmarie: very briefly, i want to ask on bitcoin. bank of new york mellon says they're going to hold, transfer, and issue new currencies. re: thinking of doing the same -- are you thinking of doing the same? tanate: with respect to bitcoin and general digital currencies, a review has been to basically watch and see the evolution of this particular part of the financial system. we do recognize the fact that given so much liquidity in the market, that interest in

bitcoin. but so far, we advised our customers not to invest in digital currencies for the time being. but we are carefully monitoring the situation. annmarie: monitoring it, but at the moment, not so bullish on it. thank you so much for your time this morning on your results. now, let's get a recap of the first word news with laura wright. good morning. laura: a company catering to women and led by women has made their founder a billionaire. bumble sort on its debut in new york, putting the ceo's estate at about $1.5 billion. of the over 500 companies that have gone public in the u.s. the last year, bumble is only the third founded by a woman. >> i'm just so proud of our team forgetting to this day. it's been such a journey. and for those first people that believed in us and subscribed to this radical idea of a woman making the first move, they have

been really what drove this home. laura: concluding the case for convicting donald trump his senate impeachment trial. they say their former president is accused of inviting insurrection when supporters attacked the capitol. the defense is set to present its case today. yesterday open tennis tournaments in melbourne will continue without spectators as it enters a snap five-day lockdown. all must stay home except for essential activities, including work. australia is hoping to contain its outbreak of the more very you will and variant -- virgie lent variant -- virulent variant of the virus. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie? annmarie: thank you so much. coming up, the inflation debate

continues with the great and the good weighing in. a temporary spike should be expected. we're going to get the take of bill dudley next. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it.

give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

>> i think people recognize the fed is all in. it's going to be very accommodative. they are going to push inflation above 2%. people find that credible and they're reinforcing it through statements. essentially, the fed is accomplishing its mission. annmarie: former new york fed president bill dudley weighing in with bloomberg's tom keene, lisa abramowicz, and jonathan ferro. our next guest says in reality, we don't expect inflation to go beyond 2% in 2021. we do expect overshooting of inflation between march and may.

joining us is the fun a mental head of equities. i want to get a sense of you -- you're not too worried about inflation. but do you line up more with power, which is inflation is not a concern at this point? four dudley, who says -- four dudley, who says that -- or dudley, who says there are reasons to be concerned? >> it depends on the perspective you're looking at it. i'm looking at it from the perspective of global equity markets. we're looking that it will overshoot and it will close over march and may, given the energy crisis last year. we don't think or cpi is in issue. rentals are still coming down in the u.s. and we think that eventually will come down back to 2% by the end of the year. but most importantly, for equity markets, inclusion between 1-3%,

historically, has been the sweet spot of the markets. the best performance. so, from that point of view, i think as long as inflation reflects the recovery and economic conditions is a positive. annmarie: the are you rate about higher costs on the impact of stock prices on the so-called inflation trade, is borrowing costs -- as borrowing costs? fabiana: look, it is clear that for some companies, this will be an issue. this is something that we're looking at very closely. when you look at credit markets, there's clearly a diversion there. when you look at europe, you have companies that we refer to as zombie companies, companies that can't pay their own coupon from their cash flows. so, it is a mother being very careful where you put your mother in, but there's also a huge opportunity -- money in,

but there's also a huge opportunity for attractive investments. annmarie: in your notes, you talk about headlines versus value. what you say is what clearly appears in the market is a certain headline affect, stocks that have well-recognized brand, well-recognized stories, seen unprecedented buying relative to the rest of the market. there's a number of stocks you like, and they call them enablers. they make progress that will be growing in parallel. you say that is where the value is. can you give us a sense of some of these enablers? fabiana: absolutely. so, this is an opportunity i haven't seen in a long time. the market has been so polarized. if you look at the dispersion in performance, in the s&p 500, top five stocks were 65% last year. and the rest were up 10%. emerging markets was 47%, 11%

ratio, so there has been clearly a big headline affect. now, what we have seen, however, these stories that being bid are very clear stories, big brand names. i'm sure you know all the names and thinking about. but when you're looking at ev, when you're looking at power management, there is a huge number of companies that actually enabled them. they're parallel stories, companies that will grow with those same brand names. and this is really where we find a lot of valuation opportunity. these are the stocks falling between the cracks. what i will tell you, every time these stocks get discovered, the price action is very, very intense, so you really have to be early on. annmarie: right, and are you worried about any volatility on the way down? dani burger brings up a good point, saying stop buying is near record, but the vix is very

low. what happened to this everything rally, when we actually get good economic data? is there a potential for a meltdown? fabiana: at some point, there will be. i really don't see it at this point in time. there's just a huge dispersion in valuations and performances that you might see some episodes from a broader index level, but there's still a lot of good opportunities to take from. the clearly, retail -- but clearly, retail investors are affecting volatility in the market, and that's something we have to keep an eye on. annmarie: we'll come back to that point. fabiana stays with us. coming up, the five-star movement hostile to bankers. the former etv president mario draghi forms a government. the details next. this is bloomberg. ♪ want to save hundreds on your wireless bill?

with xfinity mobile you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network. sure thing! and with fast nationwide 5g included at no extra cost. we've got you covered. so join the carrier rated #1 in customer satisfaction. and get a new samsung galaxy starting at $17 a month. learn more at xfinitymobile.com or visit your local xfinity store today. (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you maintain comfortable, correct form. that means better results in less time. 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.

annmarie: good morning. this is "daybreak europe." i'm annmarie hordern in london. the biggest force in london has thrown support behind mario draghi as he prepares to form a government. joining us is john foley. good morning to you. he has the backing of five-star. how close is he to actually forming a government? john: good morning. he has a parliamentary majority he needs. it's a broad, cross party majority. now he's going to report back to the president, who gave him the premier designated mandate, and draghi is expected to bring with them is assistant ministers. annmarie: when can we see the cabinet taking shape? john: well, they could be as early as today, possibly saturday. they have given him complete freedom on how much time he

needs to bring all the parties around to work out who the minister should be, so from today onward. annmarie: how much influence will political parties that have basically given him the green light have on who's in the cabinet, and the makeup of his government? john: right, well the issue for draghi is how much politics does he want in the cabinet? does he form a government which has many politicians, party leaders and it? -- in it? does he have a cap which relies on technocrats, on experts, or both? the likelihood is a bit of both because he does need, of course, the parties on board. annmarie: john, what's's top three priorities? i imagine covid is number one, but the other two? john: you got the pandemic. his gut talks with party leaders -- got talks with party leaders.

and then, of course, there's the whole economic recovery front. and he'll be drawing on the massive italian chair, 209 billion euro share of the recovery fund. annmarie: john, thank you for your time. i know, busy weekend for you. back with us is fabiana. she's still with us. i want to quickly jump off on what john outlined their. i know you like european assets. with draghi at the helm, as is the time to think about italian equities? fabiana: i would say it's too early to tell. let's see how it happens. that's my mother country, so i'm used to seeing a lot of surprises from a political standpoint. the star is good, but we'll have to see how execution goes. annmarie: if you were to go into

italy, is there any sectors you are going to be watching that you think draghi can have an impact on? fabiana: yeah, at the moment, we're really on a wait and see mode. we are concerned on the financial sector. that's the sector where we still think there's a lot that needs to happen. and we like some of the industrial companies. the again, it's too -- but again, it's too early to tell. annmarie: that makes sense. i understand what you're saying. regarding europe, everybody is focused on the vaccine trade. but you say the elephant in the room is brexit. is that the biggest risk here exposure in europe? fabiana: i would say it is not the biggest risk of exposure in europe, but definitely a risk

that is out there, and i feel the market thought that because there was a deal, there is not an issue anymore. execution is key. you've seen a lot of issues. there is no real agreement yet. we still remain concerned about u.k. domestic, and that is also why we are underweight u.k. domestic demand and u.k. domestic stocks. i think the key here is there's a lot of opportunity outside the u.k. there's a lot of opportunity in other areas. in europe, sustainability materials, they're really interesting stocks to look at. those enablers we talked about earlier, and also health care. so, we would rather look at other opportunities. an outside of europe, we like emerging markets. it's all relative from a global equity standpoint. annmarie: of course.

just very briefly, i know you much like europe and are overweight europe. does a slow, sluggish vaccine rollout scare you at all? fabiana: you know, that will definitely create volatility. there are two things we have to observe in markets at the moment. one is the rollout of the vaccines with the lockdowns. what happens from that point of view, and when we get out of those lockdowns. and then obviously the second one is stimulus packages, the biggest one obviously in the u.s.. vaccinations in europe are just too slow. that means it will create volatility. but we are closer to the end of that process than the beginning, and we see lots of valuations still not being discounting that, that's why we still like your. at some point -- like europe. at some point, we're going to get out of this. annmarie: happy friday.

that's all the time we have for today. thanks for joining me. coming up, a company catering to women and led by a woman, has made the female found a billionaire. our conversation with whitney hurtful next. this is bloomberg. ♪

♪ annmarie: good morning, from bloomberg's european headquarters, i'm annmarie hordern. this is "daybreak europe." here's what you need to know. a sluggish u.s. labor market, he was features flat after the labor market eked out another high. asian markets curtailed by the holidays. this president joe biden says united states has a clinched a deal for 200 million new doses

and enough supply for all americans. and a five-star rating, mayor draghi wins the backing of the biggest parliament, and prepares to form a government. good morning. happy friday. it's 6:38 in london -- 6:30 in london, wall street eking out a little bit more of an all-time high. this morning, we are softer across u.s. equity futures. the dollar stronger against all of g10, a little bit back into the treasury market. and then bitcoin, we hit another record, latest catalyst is bank of new york mellon. they're going to hold, transfer, issue bitcoin. we're going to watch and wait and see at the moment. but we did see yesterday in the market was a pickup in equities. that was due to tentative signs in the u.s. labor market that it's improving, if so only

gradually. state programs increased -- decreased. continuing claims,an approximation of the number of people filing for ongoing benefits fell to more than 4.5 million in january 30. any recovery we see in the labor market, this will be driven by the ongoing vaccine drive. president joe biden yesterday announced the u.s. finished deals for 100 million doses, each from pfizer and moderna. pres. biden: when i took office just three weeks ago, this country did not have a plan, or in effect scenes, or people -- or in vaccines, or people to vaccinate americans, all americans, at any point in time in 2021. within three weeks, we've now purchased enough vaccine supply

to vaccinate all americans. annmarie: president joe biden now, the uk's booking system for his hotel currency and system crashed within hours of going live yesterday, and it still down. it's part of the u.k. measure to contain dangerous variants of the virus in the country. the country surged tests in the country, but my next guest says it's unlikely to work on this done on a much larger scale. joining is now is mike, a member of the u.k. scientific pandemic influenza modeling group. mike, very good morning to you and thank you for joining us. i want to start. with the surge testing you say this is not going to work unless it's a large-scale. with the government take your advice on board? mike: i think it's difficult to predict what strategies the government will follow. but the key is that it's

possible it could work, but with coronaviruses, we're always behind the curve. when individuals report infections, they could have been infected many days ago. so we need to be a bit proactive. and that's casting the net a little bit wider, not just posting -- focusing on the post-covid level, to make sure we capture potential spread outside those are really important so we can prevent this concerning new variant from spreading further. annmarie: yesterday, chancellor merkel said it's only a matter of time that these variants, these mutations become dominant, and that the worry is that this could wreak havoc across all the success. is this the elephant in the room that every president and prime minister's office, that these variants could white out -- wipe out the success they had in both quarantine and vaccinations? mike: i will say, it's not a

surprise we're getting these variants emerging. this has been standard since the start of the pandemic. what is more concerning is we're getting variants that have this particular mutation that means it's more transmissible, so it spreads more quickly. also, there appears to be an indication that may be the vaccine is not quite as good at blocking transmission as we thought they might be. so, this is a concern. in terms of the transmission, it appears the u.k. is turning things around with lockdown. the concern is we start to ease that, we need to make sure the vaccination program can keep up. so, it's definitely not a doom and gloom scenario right now, but it does mean we need to be cautious when it comes to lifting controls to make sure that we don't get a resurgence. annmarie: but is that south

african variant that you're talking about, if some of the vaccines don't work against it, is that the biggest risk to lifting restrictions? could we see long-term into 2021, potentially 2022 restrictions on social life and economies? mike: well, no one is suggesting the vaccines don't work against the south african variant. certainly, they do work against the development of severe systems -- symptoms. we still encourage as many people as possible to take the vaccines so that we can minimize the risk of severe symptoms from developing. what's more concerning is that is not quite as good as blocking mild and moderate systems, -- symptoms but also transmissions. the country is going to tweak the vaccine. in terms of long-term control, we probably do need to ease out. but if we can ease out of any

measures we have in place, hopefully, kind of by the summer in the northern hemisphere, we can get back to some level of normality. annmarie: some medical professionals are concerned about the long gap of the pfizer vaccine between the first shot and second shot. the u.k. government decided to get as many people vaccinated with the first shot. do you think what the medical professionals are saying about the potential gap, the thing that is still a wise decision? -- do you think that is still a wise decision? mike: it is important. we do have evidence that it is protective a few weeks after the first dose. there's nothing to suggest the vaccine would wane after that time. and given the situation we're in, this is really important to get as many of the vulnerable vaccinated as quickly as possible. i would say i would stand by that decision, but when

individuals are offered the vaccine, it's really important they take it. annmarie: what we're seeing in the u.k., we're seeing a massive pickup in the u.s. numbers are much higher with the u.k. variant than they were in the spring with the original covid-19. and a you give advice to the u.k. government. but having dealt with the u.k. variant, what would be your advice to the cdc? mike: well, they need to be extremely cautious. we have shown in the u.k. the severe lockdowns are not palatable for everybody. it's not like we are relishing being in lockdown. everyone wants to be relaxing as soon as possible. but we do know these measures have worked. we are seeing the pressure coming up at hospitals -- off of hospitals. it's about putting policy slightly before you think you might need them. because if you wait and it does take off, there's a danger you

could get significant waves of infection spreading across the country. annmarie: mike, thank you so much for your time this morning. giving advice to the government. let's get a recap of your first word news this morning with laura wright. laura: the u.k. and au remained deadlocked on a brexit deal in northern ireland. three hours of talks failed to resolve key disagreements through trade. tensions flared through supply of vaccines and the flow of goods over mainland britain and northern ireland. the new york times is reporting that former president donald trump was sicker with covid-19 than covered. he had a lung problem associated with pneumonia. officials believe he would need to be put on the ventilator at the time.

disney is posting surprise profits after a surge of subscribers to its streaming service. the parks have been closed since march. disney plus grew to nearly 95 million subscribers, benefiting from high-profile programming like star were spent off, "t -- "star wars" spin-off, "the mandalorian." global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. annmarie: shares of bumble, were bloomberg -- where women make the first move, soared. woolford spoke with my colleague, emily chang. >> it's been a profound right, and i'm seriously rid -- ride, and i'm seriously humble.

i know the work starts today. we've had our cheers and our small celebration, and it's back to business, thinking long-term. we're not watching the start. we've just -- the stock. we've got work to do. emily: we are watching the stock. shares are up over 70%. investors have been screaming from the rooftops that there's something wrong with this process. do you at all feel like you left money on the table here? whitney: so, the way i look at this is we feel we've priced the way we were all comfortable. we were running a business and we understand we need to show up and operate, the earnings, -- it -- hit earnings and beat earnings. people subscribe to the long-term. that's the right way to look at it. you're not joining us on our

journey today just for tomorrow. you are signing up for our very long road ahead of us to try and make relationships healthier and more equitable, and to build a brand that resonates not just with women, but makes connections better for everyone. so, the folks that have joined us on this journey today, i'm grateful for them and i'm really excited for what lies ahead. emily: you have video on their. you edit things like voice chat, fun games, virtual badges. how does the growth story change out of the pandemic? are you concerned people are going to be tired of talking to each other online and are going to want to meet in person? whitney: so, we think we are well-positioned on both sides of this pandemic. this pandemic has proven loneliness is not the way we were designed to live. we were designed to love and to be loved and have healthy and equitable relationships and community, not just love

relationships. so, we feel like we're well-positioned to serve our community during this time, with video and at home features, like audio, video games, others coming soon. at the other end of this, we feel we're well-positioned to thrive in the sense that people have seen the true benefit of online dating. it's unlikely to ever revert back to how it was. annmarie: whitney woolford speaking with emily chang. coming up, we're going to speak to the former prime minister of australia to discuss china's relationships with the u.s., and the trade relationship costing billions in exports. this is bloomberg. ♪

>> last night, i was on the phone for two straight hours with xi jinping. and you all know, as well as i do -- it's a good conversation. i know him well. we spent a lot of time over the years i was a vice president. but, you know, we don't get moving, they're going to eat our lunch. annmarie: president joe biden talking about his first phone call with xi jinping, saying china will "eat our lunch." comes as a broader strategy to advance interests of america first. no matter what strategy the u.s. and china pursue, my next guest says tensions between the two are only going to grow as competition intensifies. because it inevitable. joining me is kevin. his a former prime minister of australia. he served from 2007-2010, again in 2013. thank you for your time.

i read your latest report. you said that the u.s. and china need to place guardrails on the relationship and manage strategic competition. what are the first steps of building that framework? kevin: well, i believe the initial telephone communication between president biden and xi jinping is the necessary first step, and that would confirm, from china's perspectives, that president biden attempts to sustain a strategy of strategic competition with china. theprobably not welcome that message. but now that that's established, i believe the second step would be for both countries to determine, what are the parameters in which the relationship will now be conducted? that's what i discuss in this article. and that means a doctrine of what i also described as managed

strategic competition as opposed to unmanaged strategic roller coaster ride we had in the last 12 months of the trumpet ministration. -- trump administration. annmarie: this critiques about the trump administration of being too hostile. but there were also critiques of president barack obama's relationship with china. they thought he was way too eager to advance climate change initiatives. how does biden strike a different tone? could this be potentially a multilateral approach to china? kevin: in the case of the trump administration, the essential problem was not strength or weakness. it was absolute unpredictability. we've lurched from one extreme to another, with an often very short time frames, which meant it was impossible for other beijing to read carefully which way the americans were taking

the relationship under trump, or frankly for american allies to understand that, as well. for the future, this is not a zero-sum game between one set of prosecuted by the united states or another. it's having a strategic framework which enables the united states to a, understand what its red lines are in dealing with beijing, but also to understand chinese redlines, as well. b, the domains in which competition can occur, and foreign policy and human rights, in trade, investment, technology and the rest. but also the areas, thirdly, which make up strategic collaboration, corporation, like on climate change action. it is possible to walk and chew gum at the same time, not to see one set of interests as canceling out the other. annmarie: what do you make of the quadrilateral security

dialogue between the u.s., japan, australia, and india? do you think it's the right approach? kevin: china under xi jinping has become more powerful and more assertive in terms of its interest and values in its immediate region, and beyond that in the wider indo pacific and globally. as a consequence of that you see strategic reactions by countries around the wider region, as well. that's given rise to consolidation of the relationship between delhi, tokyo, canberra, and washington. for the united states, it's important to understand that in strategic response to the people's republic of china under xi jinping, this is not simply a question of whether to have the quad or not to have the quad. it requires a much more fundamental reappraisal of america's global and regional strategy towards china.

when president biden said that unless america gets its domestic act together within the united states, otherwise china would "eat our lunch," he's actually right. china looks at the state of america and will be watching very carefully as the united states rebuilt its domestic economy and the longer pillars of american strength, including the effectiveness of its traditional and digital infrastructure for the 20 century. annmarie: what about the tensions between china and australia? near the former prime minister. does australian -- you're, of course, the former prime minister. kevin: once again, we're friends and partners, allies with the united states. it is possible to walk and chew gum at the same time. it's possible to be an effective ally of the united states, which

australia has been for more than 100 years, while at the same time, prosecuting an effective relationship with beijing. the degree of difficulty in doing that is getting greater. but once again, these things are not mutually exclusive. i think what's required on the part of the australian government is to pursue a balanced strategy with beijing, one that doesn't walk away from our alliance with the united states, one that doesn't walk away from our commitment to principles of universal human rights, but also one which seeks to engage china in terms of our trade interests, investment interests, technology interests, and at the same time collaborate with beijing in the various forms of global governance, as well, such as in the g20. these things can be done. it simply requires effective diplomacy to do so. annmarie: thank you so much for your time this morning, president and ceo of the asia society in new york and former

prime minister of australia. coming up, michel barnier tells bloomberg the block will be hurried into granting u.k. financial firms free access to the single market. more from him next. this is bloomberg. ♪

>> there will be no new negotiation on trade and economic challenge. the negotiation is finished and out. we have to apply and implement correctly, and in a clever way. there will be no new negotiation. annmarie: michel barnier, the european union's chief brexit negotiator speaking with maria tadeo. he warned the block will be granting the firm's free access to the market. we have plenty more from that interview. great work and brussels. is over an hour away from the

start of trading. yesterday, s&p 500 hit another all-time high. this morning, we are lower across the entire board, as you look at equity futures, nasdaq, s&p 500, alongside the dax and ftse 100. we do see a bid into the ex-wives morning, dollar strength -- xy this morning, dollar strength. the news of bny mellon, willing to hold, transfer,, and issue cryptocurrencies something we are going to be watching. this friday, we are seeing some of that momentum into the u.s. close. we also should remind you much of asia is closed, as we do have the lunar new year beginning. just over an hour away from the start of european equity trading, ftse 100 off by nearly .3% this morning alongside dax futures. stay with us. happy friday.

anna and matt up next. this is bloomberg. ♪

[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] ♪♪ anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards live in london alongside matt miller in berlin. matt: good morning. today the markets say what is the next wave to ride? weed stocks slump after another wall street bet retail rally. an asian sexson hold for the lunardi i don't remember new year. here are