>> happy wednesday. these are the stories that that your agenda. stocks gain across asia as president trump unveils a 100% -- $100 ai investment push to get a 500 billion. softbank, openai, and oracle tapped in a joint venture to build data centers and ai infrastructure. still on the table. donald trump says his threat to

hit china with 10% tariffs could come as soon as next month. shares trade lower in beijing. plus, the global trade conversation continues at the world economic forum in davos. we hear from the german finance minister and the ceos of barclays and the hong kong stock exchange later this hour. let's check in on the markets. the latest message from president trump, not so fast china. 10% tariffs could be in the offing as soon as february 1. downside pressure on mainland shares today. the impetus more broadly for markets is the ai push. you are seeing that reflected in the surge in the stock price for softbank. we break that story down for you

in more detail. european stocks set for fifth straight day of games. up to tens of 1% according to the european futures. ftse futures pointing to gains of 1/10 of 1%. s&p futures looking to add pretense of 1%. the nasdaq could get that left from the ai infrastructure spend plan coming through from the trump administration, currently looking to add 150 points. let's look across asset. treasuries relatively stable. the 10 year still above the 450 level. the japanese yen at 155. we look ahead to the boj meeting. decision on friday. economists expecting that they will hike again. the third hike for a way to. you could see by the end of play friday, the highest interest rates in japan since 2008. 0.5%. brent, $79 per barrel. a little bit of pressure on oil. gold continues to grind higher.

for tens of 1% on the session today after rallying 1.4% for the yellow metal yesterday. 2756 per troy ounce. let's crossover to singapore. ondiro: yeah. asia stockades running higher today. it's really riding and ai wave. helping to offset china tariff concerns following trump's reiteration. 10% china tariffs on all china imports still on the table. chinese stocks underperforming although i would note that this is following on from a couple of sessions of games. something where a breather was due. note that 10% is not quite as bad as the 60% that was floated previously. still, these declines in chinese stocks reflect how fragile sentiment is on the mainland and in hong kong. as i say, it's really and ai playthings to trump. -- play thanks to trump.

double-digit surge to the highest level since july. some analysts have already put it as a green line from trump on all things ai. boosting not just the chipmakers but also data centers. cable makers. for a, among them in japan. also double-digit kleins -- climbs. you touched on this earlier. the boj on friday. i would just say when it comes to these tariff threats, it is showing up in the pressure on the renminbi and the yen. this is coming despite the expectations that the boj is good to go on friday. if you recall, when he gave his toughest -- dovish presser, the thing that stood out was the uncertainty surrounding the trump administration policies. we've got into a lot of it without major negative surprises for the japanese economy. the idea that we are good to go for friday.

despite this, the yen weakness is just a reflection with every tariff threat of indication for the yen there. tom: canada, mexico, china, the european union. his japan on the naughty step for donald trump? april hong checking in on the markets in singapore. thank you. president trump saying his threat to hit china with 10% tariffs on all imports is still on the table and could come as soon as next month. >> a tariff of 10% on china based on the fact that they are sending fentanyl to mexico and canada. tom: the reprieve for china was short-lived. >> ahead of his inauguration, giving time for his agencies to do their background work and conduct some studies.

it feels like that's been thrown out the window. there are studies done on the compliance story. during his first administration, he did negotiate a farm deal with china. one that hadn't been complied with in terms of buying things like soy, corn. agricultural products are also the number one export from the united states to the rest of the world. the second being boeing airplanes. that's the kind of buying that china needed to get on donald trump's good side. not just china. he's got his eyes set on europe as well. take a listen to what he had to say on the eu. >> other countries are big abusers also. it's not just china.

china is an abuser. but the european union is very bad to us. they treat us very badly. they don't take our cars. they don't take our cars at all. they don't take our farm products essentially. they don't take very much. we have a 350 billion dollar deficit with the european union. they treat us very badly. so they will be in for tariffs. 47th president of the united states talking about europe not buying cars and farm goods. but he didn't mention is still tariffs which are the overhang of the european union. under the baidu ministration, they talked about changing that to quotas and not tariffs as well. that's going to be crucial in terms of whether they are able to navigate that, have more tariffs, or take them off the table. tom: arguably, the focus on ai is part of the focus on china. it's part of the peace of this

puzzle. we have the details now amount -- around this massive infrastructure spend. this seems to be significant as well. kriti: this is massive. donald trump has talked about being a dealmaker when it comes to things like tiktok. now arranging the oracle softbank, $500 billion worth of investment into the united states. this is concentrated in data centers. it comes in 48 hours basically after you had his inauguration where tech ceos were stood in front of some of the congressional and cabinet picks as well which speaks to where a lot of that investment is going. almost heralding that investment to infrastructure, ai. that's important as well when it comes to moving all of this along and only courting the likes of softbank and oracle as well. some of the other biggest investors around the world. tom: the final piece as well. it all leads back to china. tiktok.

he seems to be pretty convinced, the president, that he can get this deal done. this time he's looking at article but also musk as well. kriti: oracle hosts the cloud server that tiktok is on. tiktok is a major oracle customer. it makes sense in terms of vertical integration from the likes of oracle. elon musk is a competitor of tiktok. that was interesting. he's also talking about a government stake in tiktok. this has never happen. the u.s. doesn't have stakes the way germany does in commerzbank or france in infrastructure. that doesn't really happen in the united states, even when it comes to things like and for structure companies, let alone social media companies. he's really creating a new president here. there are other potential names in the race. a tiktok acquisition might be helpful for the likes of amazon, walmart among others. tom: thank you very much indeed.

trump, china central. actions around ai, tiktok, and the threat of 10% tariffs. thank you. let's dive deeper into the market reaction from u.s. president donald trump on tariffs. let's bring in valerie tytel. what is the latest in terms of how markets are reacting? valerie: i had to squint to see reaction when it comes to china. maybe perhaps showing us that the 10% tariff on china is already on the price. all those announcements we heard from trump late last night are doing very little to dent risk appetite after the s&p closed up nearly 1% yesterday. we are still on firm footing when it comes to risk. s&p futures up three tons of 1%. one thing i found interesting is the announcement from the sec yesterday when it comes to the cryptocurrency industry. the sec was looking to launch a cryptocurrency task force to perhaps create a clear

regulatory environment when it comes to the cryptocurrency industry. it's interesting to note that since gary gensler has stopped -- stepped down, there's been a huge wall off of filings for crypto linked etf's. a lot of interesting things happening in the crypto market. getting excited for a booster -- looser regulatory environment under donald trump. tom: bitcoin not back to those 108 levels but still gaining from the picture yesterday even as it's off a little bit today. switching to europe then. the ecb speaking to bloomberg on the sidelines of the world economic forum about his inflation expectations. let's take a listen. >> all the data that i read over the last couple weeks was a surprise to me. it gave me the indication, also the certainty that we can achieve our target. we shouldn't forget where we came from for the euro zone.

we are close to our target. tom: obviously on the hawkish end of the spectrum when it comes to the ecb, given his role at bundesbank. where do things stand in terms of expectations for ecb rate cuts this year? valerie: a cut next week is almost certain based on the ecb chat we had yesterday on the sidelines of davos. the market is pricing -- pricing in around four cuts to reach neutral which is around 2% so the market thinks. it's interesting that none of the ecb members yesterday wanted to talk about entering into expansionary territory. the possibility of going below neutral is something they don't want to discuss. another topic that was discussed was the fact that trump is only highlighting the european competitiveness issues. we had comments from both villa roy and casimir highlighting the fact that what's going on in the

u.s., the different regulatory environment under the u.s. is only pushing the urgency for the -- for europe to push through structural reforms in order to make a more competitive landscape here in europe. tom: a reminder of that overnight with you ripping up those ai regulations in the u.s. by president trump. to your point on competitiveness. valerie tytel, thank you very much indeed. we will be hearing from those ecb voices. we will have a great lineup of additional guests from the world economic forum in davos this hour. germany's finance minister. really interesting as we build up to that election in germany. cs venkat. that conversation coming up later this hour as well. stay tuned for all those interviews from the world economic forum. this is bloomberg. ♪

valerie: the chinese -- tom: president trump says his plan is still on the table. let's get more with haslinda amin who joins us from davos with a guest who straddles the divide. that divide has collapsed in terms of hong kong china and the relationship with the u.s.. hong kong is just another chinese city perhaps. haslinda: not really. you know that. that 10% tariffs. we have seen the impact on markets already. let's get perspective from the ceo of hong kong exchange. good to have you with us.

>> good morning. haslinda: u.s. mulling 10% tariffs, way smaller than 60% but markets still not liking it. markets getting sold off in china and hong kong. how are you assessing sentiment right now? haslinda: of -- >> ok. let's think about the last few trading sessions. we had a good run. what we saw in the hong kong market today. a small reaction to the news. but you have to remember, we have six consecutive days of gains. i think it's just a small correction. in any event, the market is getting used to having surprises spring on it. i don't worry really. the momentum overall is quite good. we are at davos. i've been speaking to a lot of people. obviously the topic of u.s. china relations comes up in lots of conversation. i would say generally, there's quite a bit of optimism

expressed. still early days. we are in the third week of the new year. so far, the hong kong market has shown great momentum in terms of volume. last year, we closed the year with about 132 billion you. year-to-date, we are up at 150. so yeah. haslinda: the optimism is driven by prospects of stimulus from china. but with drip drip tariffs, some say the massive stimulus we are expecting may not happen. how are you assessing prospects of stimulus? bonnie: i think the spectacular moment obviously came after the september 24 announcement of the stimulus package. we saw the market reacting in quite a strong manner. in fact in hong kong, in the course of two weeks, we broke out adt record three times. the current record is 620 billion. that's about six times what we

did in the first six months of 2024. so i remember when we were seeing that play out. a lot of people were asking, when is china going to bring out the bazooka? remember, the bazooka? my personal reaction is, i don't think the chinese leaders are going to just bring out one set of stimulus and say that's it, we've dealt with all the problems and that's the silver bullet. i do think they are very thoughtful about the issues that have to be addressed. as a result, especially given high debt -- how dynamic the market conditions are, i think that we should expect to see more thoughtful rolling out of different policies which will be targeting the questions at hand. haslinda: what's the outlook for the ipo market? quite a turnaround in 2024. hong kong was top for in terms

of ipo markets. bonnie: thank you for asking that question. the ipo market. we saw a good comeback in 2024. in terms of number of ipos, we completed 71 which was the same number in 2023. however, the amount of funds raised was 90% more compared to the year before. also, we are seeing very big deals getting done. haslinda: more big deals? bonnie: they have already announced their plans. remember, the market reopened with the medea. 4.6 billion u.s. dollar ipo which was the second largest in the world in 2024 and the largest in hong kong since 2021. shortly following that, we saw sf express. also horizon robotics. the participation by u.s. and european investors in those deals are very good.

after that, i think this is actually a response to the policy which was announced back in april. when they issued the five measures in support of the hong kong market and they said they are going to encourage more leading companies in china to come to mainland china to come to hong kong to get listed. that momentum will continue. in fact, we have completed 10 ipos in december. another eight in january. it's only the third week of january. i think there's a lot to look forward to. in the pipeline, we have about 100 deals. we need to get on with exciting names like cattle. i'm sure there will be more to come. haslinda: just under 60 seconds. we know that hong kong wants to be an international goal center. what are your targets for this year? where do you go from here? bonnie: obviously in the commodity space we have lmu which is our subsidy. we just announced yesterday that

lmu has excepted hong kong as a warehouse location in the lmu network. that's very important, considering that china is a big producer of metals as well as a big consumer of metals. lmu, if you look at their clients, there's a very big proportion which are china based. therefore i think this first move to include hong kong as location is probably a step that we take in furtherance of our china commodity strategy. in due course, i can share more with you. haslinda: thank you so much for that. hong kong exchange ceo. there you have it. pretty upbeat on the prospects for ipo and hong kong. she has -- says perhaps that the drop that we see in terms of hong kong and china could be a knee-jerk reaction to that 10% tariff. tom: 100 deals in the pipeline

in terms of ipos. great conversation. thank you. our davos conversations continue this hour. germany's finance minister speaks to us at 6:30 u.k. time to discuss the state of europe's largest economy. a crucial conversation as we build up to the elections in germany that could have consequences will be the borders of that country. 6:40, i speak with the ceo of barclays about the banks turnaround plans. do not miss those conversations. coming up, the ecb governing council member says there's a certain probability of a rate cut next week. we bring you more from her interview with the bundesbank had. that's coming up next. this is bloomberg. ♪

>> there are concerns. we have some structural issues. our election is coming in four weeks. this is a very important election. the new government, i think they have to overcome the structural issues. but i said it many times. i don't think germany is the sick man of europe. we have very good potential. good structure of our economy. good strong smes. i'm positive but we have to do our homework. >> what does germany need right now? more investment from the outside? >> we need a capital markets union. i think that's very important to crowd in private capital for the investment to change the economy to finance the transformation process. this is key. >> if we have a trade war between the u.s. and china, it's unclear if that means deflation coming from china or inflationary. >> there's an ongoing discussion

about that. i have to admit that i do not have a clear view about that. it's a very complex set up. what does it mean in terms of spill over to the european union? it looks like if you are in a kind of trade war situation, the only thing i can say is that there are losers on both sides. >> bridges erupted in the middle? >> when you're sitting in the middle, you are in a squeeze role. it's also not very easy. china is also very important for the european union. as i said, it's too early to have a clear indication on the way forward here. tom: that was the bundesbank president and ecb governing council member speaking to francine lacqua at the sidelines of the world's economic forum that continues in davos. some other stories making the news this wednesday. the u.s. president says he's

likely to impose sanctions on russia if vladimir putin does not come to the table to negotiate on ukraine. donald trump said during his election campaign that he could end the conflict in one day once back in office. monday, boudin said russia was ready for talks with the u.s., emphasizing the need for a long-term peace based on respect for all nations interest. 3:15 p.m.. u.k. time. we will hear from ukrainian president vladimir zelinski after he spoke with bloomberg's

tom: good morning this is bloomberg daybreak: europe. these are the stories at set your agenda. stocks gaining across much of asia if you ship out china as president trump unveils a $100

billion ai investment push. openai and oracle all tapped in a joint venture to build data centers and ai infrastructure. still on the table, donald trump says his threat to hit china with 10% tariffs could come as soon as next month. shares trading lower in beijing. the global trade conversation continues at the world economic forum in davos. we will hear from the german finance minister and the ceo of barclays. the check in on european futures after five straight days of gains, you are set for a sixth straight day of this story holds. currently pointing higher by .2%. brushing off european futures. the threat of tariffs on china. it's a focus on tech, the focus on ai with southbank and asian stocks powered higher by that infrastructure ai spend. downside coming from hong kong sox very ftse 100 futures

pointing 2.1%. gaining 3 -- .3 after yesterday. nasdaq 100 looking to add points. tech stateside to get a lift. let's flip the board and lacrosse assets. the treasury markets are relatively stable in the session. 457 on the benchmark. 155, softness, threw down .2%. the boj is expected. it is expected a hike on friday. brent at $79 a barrel. go at levels we haven't seen since november after a rally of 1.4 percent yesterday looking to add .1%. 748 right now. the eu is working on a proposal for block wide purchase incentives for electric vehicles to support the union struggling automakers. speaking at the world economic forum olaf scholz said europe economies must have more competitive industry and less bureaucracy.

let's head over to bloomberg's francine laqua who was on the ground for another important german voice. francine: good morning, happy wednesday. joining us is germany's finance ministry. thank you for joining us. there's a lot of talking davos about trump, jumped 2.0, what it means for europe. is europe ready, is germany ready? >> we are still learning about what exactly the policy will be. no matter how the policy is formed, it's always in our interest to be close to our biggest ally and to strengthen the transatlantic relationship so the dialogue with the new administration will be sought. just like in the last trump administration, we will look for a very close contact and interaction. francine: germany was the eye of the storm first time around donald trump as president. do you worry it's the same this time around and that retaliation could be limited?

>> when i talk to my colleagues from the other finance ministers yesterday in brussels, those have strong trade ties with the world and who are export oriented have the most at stake when it comes to potential disruptions of trade. but that something that's normal for us and that's to be anticipated because germany is export and import oriented. international and global trade is important. francine: what does retaliation from europe look like? >> i wouldn't want to talk about retaliation if there nothing yet to retaliate. who knows the way i understood the president's yesterday there is also scope for discussions, germany is already importing very substantial amounts of oil and gas from the united states and security at supply of the

transition energy is extremely important. in that sense, i would say let's talk before we think about retaliation. francine: is there a mutual agreement that there could be a response from europe if things were to go sour? >> trade policy is organized at the european level. the european union just signed a very promising trade deal with the latin american countries and we have given the authority to conclude trade agreements and or and interact with the world to the european union and we said we want to be one big block. that's why trade will be negotiated at the european level. francine: it looks like some of the policies that donald trump will put in place will be dollar positive. does a strong dollar help with european exports? >> markets are pricing that in right. we have seen this movement it,

so there is all -- always offsetting factors and that is something when i talk to the ceos here, also comes up in their minds that from the global sourcing and fx adjustments there's factors that go in so there's never unilateral effect that takes place. francine: one of the big advantages the u.s. has is deep capital markets so they can attract investments and investment flows. why is there such push back in germany from unicredit china by commerzbank? >> there's huge amounts of support for the capital markets in germany. since last year germany and france from the joint ministerial council have pushed for stronger integration of european capital markets that beijing markets. we see many transactions of european americans, of global financial players in the german market just recently a dutch

bank bought one of germany's largest private banks. a french bank brought one of germany's largest private banks owned by british private bank at an american equity bought -- there is broad opportunity, as we said many times, it's idiosyncratic. the behavior in this specific case which was in transparent, which was opaque, hostile takeovers are not a recipe for systemic bank of the discussions we are having are very specific to this one case. francine: he push back against the fact that he has been called -- we meet with him in davos? talk to me a little bit about -- >> given the many multi-participant firm, we may be in here once or twice, who knows. francine: there's nothing on the table to iron this out? talk to me about what else is

needed for europe and there is a lot of defense spending that is to go to ukraine, but maybe want to use that money elsewhere to make sure your voters vote for you come february 23. >>'s support for ukraine is high priority for as long as it takes, as we said at the g7. we held our promise with the 50 billion package to ukraine, which was deemed it near impossible several months ago. what was done, the money is flowing now. support for ukraine is absolutely essential. if i see the brutality of russia's attack, i spoke with ukrainian finance minister yesterday morning. the attack on the civilian infrastructure, on train stations again. everything you told me as it reinforces my conviction that we urgently have to support ukraine. competitiveness europe has to

finally make decisions. cutting red tape, accelerating planning permissions, getting the capital markets union done, fixing our gap in securitization, in equity finance, pension incentives, all of those topics are front of mine. i'm hearing a massively increased urgency from colleagues from the european commission. everything understood we have to get serious about these things. francine: is 3 billion the right number? >> germany is ukraine's largest supporter in europe and will continue to be sold. we can add another 3 billion to the already existing large amount that we are supporting ukraine with them the rest is up to the debate in germany on how to do things. francine: he push back up against the 3 billion. >> as i said in an interview yesterday, he has made a

proposal on how we can get it to work. at the same time, not increase the gap in our budget of around 60 billion in that we will have to, in the course of 2025, make a decision on how to bridge the gap. francine: what levers does your party have to try to give voters on board for that election february 23? >> there's a lot of undecided voters. the campaign has started at the beginning of january. so all of the discussions is just starting, so it will be a short end for our standards, very short. a intense campaign. the question of lack of economic growth, the question that we are structurally in such a weak position that our growth potential has strong from 1.5% to 0.5%, that is one of the core

topics. my party has made very specific proposals on how to make investment grants, investment support for production in germany. it is the public spending deficit on infrastructure, education and the rail system, bridges, roads, 5g. it will be very contested and interesting topic. francine: the economy is always top of mind for all voters. the finance minister with that. tom i will send it back to you in london. we will have plenty more throughout the day in davos. tom cole and francine laqua fantastic in davos. i am quoting from the finance minister around unicredit's takeover attempt or at least building up that steak and commerzbank. you competitiveness with ukraine and of course the elections and

the politics domestically of germany as well. plenty of interview still to come from davos today, including with the ceo. u.k. chancellor rachel reeves as well. ukrainian president volodymyr zelenskyy will talk to us. the president of jpmorgan chase in conversation with bloomberg. nasdaq ceo adina friedman as well as former u.s. secretary of state, john kerry. you won't want to miss any of those interviews. coming up, commerce bank ceo says the german lender has eyes on various potential smaller deals to create value for shareholders. but speaking to us at the world economic forum in davos, the bank won't do anything stupid to fend off that potential takeover by unicredit. >> what do we do, we really focus on our own strategy. we deliver the results, we are now heading our capital markets

at february where we will present an upgraded strategy. it will serve as an excellent basis for 2025 and we always said that if unicredit wants to put a proposal on our table, we will evaluate putting things on the table so we can focus on our own strategy. >> one of the concessions you are looking for from unicredit that would convince you? >> first of all, there must be a draft proposal which we could discuss, then we could compare notes, and we could move further. i think that is the prerequisite we are looking for. until then, it's very much we stand alone. >> any specific share price you have in mind you want to reveal to bloomberg television? >> know, we constantly are working on improving our share price. we just concluded our share buyback program.

we expect approval in the next weeks. then we will continue with that and have an attractive capital return for 2024. and then we will hopefully have some promising plans for everybody presented during capital markets stay. and our intention is to bring the share price up to deliver sufficient capital return and then automatically target prices in the share price will follow. >> it does seem to me you are open to the idea if a proper offer is given to you, as you just said, as you indicated. what about other m&a's to fend off the approach, would you consider a white knight? >> we always said we would not do stupid things and we would really concentrate on value creation, therefore we evaluate certain m&a options for ourselves that are really bold on acquisitions, smaller ones to make our value proposition better.

besides that, we always said that we would act in the interest of our stakeholders, and that's what we do. tom cole in commerzbank ceo speaking to us in davos. coming up, we go back to the slopes for a conversation with the dutch central bank governor. stay with us. this is bloomberg. ♪

tom: president donald trump is being called very bad to the u.s. for ending the -- francine laqua is standing by for us. francine: thank you so much fear we talk monetary policy. we don't usually do that before 10:00 a but we are making an exception because we've yet -- we have an exclusive conversation with the financial stability board. governor, thank you for joining us.

next week there is in ecb meeting, the markets think it's a done deal. what we need to happen for you to change your mind and stay on hold? >> it's never a done deal until we have arrived in frankfurt and listen to our staff. but i must say as long as the incoming days are in line with our projected return of inflation target this year, then i think there is little obstacles to making a rate cut. i think it's rather unlikely, but there are some risks that will play out in the more medium to long term that we have to be wary of. francine: given everything that's coming, which is possible trump policies, possible trade wars and tariffs, this seems very unlikely. are we 95% there on next week? >> it's difficult to give a percentage, yet again, staff needs to confirm my perception of the incoming data.

meeting by meeting a has served us pretty well in a world which was already plagued with quite a bit of uncertainty. one stick to that rhythm and we will let you know next week. francine: we will be watching closely. when we look at the data that we've had so far, what is your outlook for cuts look like this year? >> it's hard to say. the data is encouraging. it confirms the broad picture that we will return to target and the remainder of the year. and hopefully the economy will also finally recover a bit. there is actually not so much rational reason for consumers to be reluctant to spend in the euro area. it has been around for a long time. the consumer sitting on a pile of savings, the labor market is still producing full employment. what we are hoping to see his recovery in the economy. and then we have to take it from

there. that's when it meeting by meeting means. francine: the world looks like it will be more in certain rather than certain. that will presumably impact consumer spending. >> if you look at the balance of risk, there is clearly a new downside risk on the horizon. that might be the impact of trade policy. then again, we'd have to watch this space and see what the impact on inflation, it will be on growth, it's pretty clear that the impact will be negative. we have to take into account trade substitution. from all the parts of the world and what have you. it's not even so clear whether this will have a meaningful impact on u.s. inflation as well , the u.s. consumer is pretty, pretty wealthy at this moment, so it may well be that the u.s. consumer is simply able to pay for these tariffs without much ripple effect elsewhere in the

economy. francine: reducing interest rates in europe in june? >> that's difficult, we are on a trajectory towards neutral and the question is, where is neutral. we can only say with a certain range, but let me say i'm pretty comfortable with the market expectations for the upcoming two meetings in i find it too early to comment. francine: because of trump policies are because of what the fed does? >> yes, and with each rate cut we are getting closer and closer to neutral and there is some difference between removing restriction, which is what we are currently doing, and if necessary, going to more stimulative posture. francine: on balance, what's your gut feeling? quex if the recovery proceeds, if we approach target by let's say the middle of the year, then i'm not convinced yet that we need to go into stimulative mode as well. then again, there is a range for

neutral, when in the range that gives us some leeway. let's not be head over heels, the data will tell us where to go. francine: do you feel like the ecb policy is more tight because of market dynamics? >> monetary policy always takes place. there are always opposing impacts for marching politics in the united states. suppose the fed runs a tighter ship because of internal u.s. policies, that has two opposing effects on us. some of the tighter financing conditions will spill over through market conditions. if it leads to a stronger dollar, weaker euro, we will import inflation. which of the two effects dominate is always a big question mark. francine: it's only been three days that donald trump has been president because of the inauguration, the given what we know so far, three days in, is a more likely that you cut more than expected are less than

expected because there are various factors in china. we are not sure what happens to trade, so what's your gut feeling? >> it's too early to tell. you also illustrate the great many channels through which his policies might affect the global economy, the global inflation outlook. when we come to frankfurt, we will make sure that we do the best we can in calculating what this means for the inflation outlook for the euro area. francine: that was the dutch central bank governor in the chair of the financial stability board. we are doing a panel on financial stability. stay tuned for that a little bit later on so that you see it, maybe some of the concerns over shadow banking, i will send it back to you in banking. tom: bloomberg's francine laqua on the ground at the world economic forum in davos. a lot more is coming up, stay with us. this is bloomberg. ♪

tom: the take our viewers inside bloomberg house in davos with a conversation of this sovereign wealth funds. take a listen. david: is that the case in norway? say don't really care with the u.s. is doing? >> there is clearly a backlash, but the policies we have are anchored in the parliament, so we are not changing her mind. we think it's important for client reporting, we think diversity is good. david: in most scandinavian countries, certainly in norway, there is about climate change and there's a lot of interest of renewable energy, but you make your money from nonrenewable energy, so is there incongruity when you're making all this money from carbonized chemicals

and fuels, but you really don't believe in that to some extent, how do you square that? >> we believe in it, and we think the gas that norway produces, which is very high proportional, the gas supply in europe is very important and continues to be a big part of the energy supply. tom: ceo of norway sovereign wealth fund from the bloomberg house in davos. plenty more coming up. stay with us. this is bloomberg. ♪

kriti: good morning from london i'm kriti gupta. an hour away from the opening trade, here's what you need to know. a complete 180 on china. president donald trump said a 10% tariff on chinese imports could come as soon as next month all part of his crackdown on the fentanyl trade. still a dealmaker, trump announcing a 100 billion dollar joint venture, softbank, openai