tom: good morning, this is "bloomberg daybreak europe," i'm tom mackenzie in london. the yen gains after the bank of

japan raises interest rates to half a percent, the highest level in 17 years, the boj hints at more hikes to come. trump tells davos he wants opec to cut oil prices. we bring you reaction from the world economic forum as well as conversations with the ceos of suntory and pharmaceutical giant merck. asian equities gained as donald trump tells fox news you would rather not impose tariffs on china. the u.s. president urges the fed to cut rates, saying he will speak with jay powell at the right time. >> good morning, happy friday. we will check your markets but before we do that, a redhead

crossing the terminal confirming bloomberg reporting that monte paschi will end is in the process of buying in an all-share medio banker. more consolidation in the italian banking space. the details then, monte paschi offering to buy it in an all-share deal, offering 23 new shares for 10 shares. monte dei paschi offering 23 new shares for 10 shares. the offer is just over a 5% premium from the close yesterday. confirming bloomberg's reporting that monte paschi is exploring that deal to take over medio ban co. we will get details on this story for you. monte paschi is seen as the oldest existing bank dating all the way back to the 15th century. more details on that potential deal throughout this hour. let's check on some lines

dropping from the telecom equipment maker ericsson, so from dealmaking to the earnings story. ericsson fourth-quarter adjusted gross margin at 49.1%, the estimate had been 48.2%. the top line, adjusted gross margin coming in above the estimates, there was a focus on the indian operations and north america. there had been an expectation that the numbers might be softer, given the strength on the third quarter on the back of a $14 billion deal with dnt. ericsson seeing first quarter cloud software sales people are to their three-year average. looking at 2.5 swedish krona, slightly above the estimates. and in terms of adjusted earnings, fourth-quarter adjusted earnings, it is a miss coming in at 9.8 billion swedish krona, the estimate had been 10.3 5 billion.

that is the earnings story coming through from ericsson, in terms of fourth-quarter net sales, just slightly above estimates. to the markets. let's get a check because we have seen some decent gains coming through for european equities. seven straight days of gains, set for an eighth straight day. futures on and we are pointing to gains of 0.4%. i hoping we can get these markets up for you. we will get the full deep dive on these markets in the next couple of minutes. because we need to check on where things stand particularly across fx and fixed income, but record highs for european and u.s. stocks. the bank of japan raised its key policy rate to 0.5%, the highest level in 17 years, as governor kazuo ueda continues his mission to return to central bank orthodoxy. was bring in taro from bloomberg

economics in tokyo. it was expected but nonetheless another historic move from the boj. what does it change on the outlook because that is important? >> of course, the rate hike today was widely expected. what was surprising was the tone in his latest quarterly outlook report. means it's inflation outlook was lifted up, not just securing 2% further, but as well as it reveals the policy board is now still alert to the inflation overshooting because surprisingly for fiscal year 2025, they lifted up from previous 1.9% to 2.4% percentage points, as well as evaluating that the risk is further towards the upside. that's why on the boj's communication, i felt it shifted -- they are still concerned about securing 2% inflation.

two, they secured inflation as well as alert to overshooting inflation. that is probably a sign that the boj is now pressing ahead with normalizing policy again. i was expecting those hawkish boj but market wasn't priced in. but now it's clear. i don't expect my baseline scenario that the boj will comfortably proceed with another rate hike, probably in april, also july up to 1%, if there is no sick giving an setback from the market or politics. tom: that's really interesting. your analysis is they have met that 2% target, now they are looking at a potential overshoot. you still expect to get to 1% by the second half of this year. what are you listening out when it comes to the press conference from the governor in 30 minutes time, in terms of building out that the you? >> -- building out that view? >> the markets eye and my eye on

whether there is any hints on further rate hike. but i expect he will steer clear because he wants to avoid any spike in the yen and probably vigilant in the market as we saw last summer after boj lifted rates in july. however we have to listen carefully to where the estimation on inflation outlook, particularly, the reason they flagged in the outlook report was surge in rice prices which is the staple for japanese diet. and if ueda says those rising prices will spillover to service prices, such as dining out fees or long-term inflation expectations, if he says so, it's going to be another hawkish signal from ueda. price outlook and rate forecast is important to watch and yen will swing depending on his

steering. tom: excellent preview as we count down to that press conference from the governor of the bank of japan, after they raised interest rates to 0.5%. bloomberg nymex analyst taro kim ura in tokyo with the preview. let's check on china as well because with the comments from trump on tariffs around china, that is moving markets, the mainland and hong kong. let's bring in avril hong for a check of the asian story. avril: let's start with japan first. i think the expectations coming into today was a coverage hike from the boj, and then ueda would have to sound hawkish tiktok up the japanese currency, so yen bulls seem pleasantly surprised and the immediate support levels on dollar-yen are around the 155 handle. there are those that think they are prime for gains on the japanese currency. we will wait and see what ueda ultimately says but look at how the nikkei and topix have erased

gains of 0.6% earlier in the session. as you say, the chinese tariff line from trump moved markets, so we have seen outperformance of the hang seng two plus percent gains today. it played out on the currency. this next page will show you how the offshore yuan today, really steep moves about half a percent climb against the greenback, capping off a week where the tone from trump on china has sounded a lot less antagonistic. than markets had been expecting. and you think about that phone call at the start of the week, that tiktok reprieve, and then also the talk about [no audio] 10% tariffs. the yuan headed for its best since august, tom.

pres. trump: one very big power over china. and that's tariffs. and they don't want them. and i would rather not have to use it. but it's a tremendous. tom: let's bring in joumanna bercetche for more. how it plays into how he was just guessing. he does seem to be or has in the past 24 hours seems to be downplaying the threat of using tariffs against china.

and remember, on the campaign trail he was talking about imposing tariffs up to 60%. at the beginning of the week. he was talking about tariffs of 10%. and now, in an interview with fox, he says that he may not have to use them at all. so it's really unclear at this point what actually is going to happen in terms of implementation. but then at his address yesterday in the davos congress center and of course, this happened by video. he did not attend in person. he did also mention tariffs. and the fact that in the case of europe, for example, the deficit continues to be too wide. he also said that he wants to see american non-american companies invest and manufacture in the us. and if they don't, then again, he's going to wield that one economic sword that he's been talking about all this time, and that is tariffs. so it's very clear at this point that he sees them as sort of like

word in the dictionary. the messaging from a lot of executives and there was a lineup of them at that video address yesterday, including the likes of ana boutin from santander and brian moynihan from bank of america, the feedback from american executives is they are excited about the prospects for u.s. growth. in the case of brian moynihan from bank of america, trump actually quipped at the end that he would like to see the bank, at this is a quote, open up to more conservative consumers. he directed criticism at bank of america for some of their di initiatives. bringing some of the culture wars into that conversation. finally, this is a topic we are interested in, well, i'm very interested in given the region that i cover. there were lots of comments directed at opec and the fact that he wants to see oil prices lower. he things opec+ should have done

more to bring prices lower which contradicts everything they have been trying to do, which is to keep prices supported, and then the crown prince of saudi arabia in that conversation they spoke about $600 billion of investment. trump would like to see that go to $1 trillion. i think we can say for sure it's going to be a busy year. tom: and it's been a busy week for you on the ground. bloomberg's joumanna bercetche in davos breaking down what we have been hearing and the response from executives. an awkward moment for the ceo of bank of america during that conversation. back in the u.s., president donald trump lowering interest rates in the u.s., and touched on his relationship with the federal reserve and the chair table -- jay powell. >> he said he will demand that the interest rates will come down. do you expect the fed to listen to you? pres. trump: yeah. >> are you going to talk to

powell about this? pres. trump: at the right time i would. tom: for more let's bring in bloomberg valerie tytel on the market reaction because arguably, you look through the tariff discussion, and china, this is one of the most important things to weigh up for these markets is how much pressure trump will put on jay powell and the fed to lower rates. >> exactly, tom in those comments from trump did help a late stage rally in the equity market. we saw the s&p closing above 61,000 for the first time ever, notching a fresh record. a lot of speculation on those comments coming out about when it will be the right time for trump to talk to powell about lowering rates. perhaps it could come as early as next week. we have a fed meeting next wednesday where the fed is expected to pause their cutting cycle and expected to go on extended pause, possibly until the summer, so maybe this heat that powell will come under from donald trump could come sooner

than expected. i want to focus on his comments that he gave to davos. because he did use strong language when he talked about it, saying he demands interest rates to drop immediately. partly, he was not just talking about the u.s., he wants interest rates go lower globally. interesting what the market things of those comments but we had to keep our eye on the economic data because today is a big one for global economic data. we have the global flash pmi's coming up across europe this morning. we get the u.k. number at 9:30. this one is likely to be interesting because the month of january has seen volatility in the gilt market and thnd. these pmi data is for the u.k. could reflect some sour sentiment. tom: after u.k. consumer sentiment, the gfk survey overnight pointing to further weakness there. valerie tytel, thank you indeed. on that trump story around the fed, you see interest rates down around two and three basis points across the curve right

now. we have a great line above guests from the world economic forum in davos. it is the final day today. this one will be interesting. the ceo of suntory. it is a major drinks maker headquartered in japan. so, a response to what we have heard from the boj, the inflation story as well as broader global demand for drinks products. and we will hear from the ceo of germany's mark. we have a sluggish economy. stick with us. this is bloomberg. ♪

tom: welcome back. the bank of japan has raised its policy rate to 0.5%. that's the highest level in 17 years, in an effort to combat inflation, it follows a report showing consumer prices rising

at a faster pace of 3% above the central banks inflation target. let's head to the world economy forum in davos where joumanna bercetche is standing by with a as to can certainly comment on the inflation story in japan and the broader appetite for retail goods and drinks globally. joumanna: yes, that's right, joining me now is suntory ceo and president takeshi niinami. given how cold it is, i could do with a bit of whiskey. my bosses don't want to see that. let's start with the big news out of japan. another interest rate hike. rates are sitting at 50 basis points now, this is the third rate hike in the past year, rates are at the highest level they have been in 17 years. do you welcome this decision and do you think it was the right thing for the bank of japan? takeshi: this was very much expected. we welcome this increase. the reason behind his consumers are a much affected because of the current inflation. i think consumers feel the

inflation is hurting their life. the big factor is

at what kind of talks in business will be going on as for wages. i think business will increase wages just like last year. they confirmed that business will take that action to support the life of consumers. that's a big reason for them to be confident to be able to increase the interest rates. but i think they need to do more. >> are you planning on increasing wages? >> 7%. i think big business will increase at least five. that helps bank of japan to keep increasing interest rates gradually. and business should be prepared for further increase of interest rates. >> you mentioned in the first answer the weakness of the yen has been a thorn in the bank of japan's side and it seems difficult for them to counter the weakness so long as u.s. yields remain high. what you see as the outlook for the yen? takeshi: i think 155 is now, but close below 150 or something, but not dramatic increase of the value of the yen. that is not expected by the business leaders in japan. the reason is definitely fed. it doesn't cut rates. and the drawbacks in increase of interest rates in japan will be coming such as housing loans, so we have to fix those drawbacks gradually, such as sme's will be affected. but definitely, increase of interest rates will benefit the japanese economy. joumanna: there are reports that prime minister ishiba will visit president trump in the u.s. beginning of next month. do you worry about geopolitical issues that are arising with the case of nippon steel and the fact that the u.s. administration had been quite resistant to having a japanese company take over an american company? just from a geopolitical perspective. takeshi: i don't think so because the deal of then yvonne

steel -- nippon steel is not based on economic security, it is politics, that is our understanding. we will keep investing to the united states. we need japan because the u.s. economy will be still very good. and the best in the world. only the key country for us to enjoy the benefits by investing, i mean investments. our portion to the u.s. will remain intact. nippon steel deal doesn't bother for us to make addition whether we go to the u.s. or not. i regret that this president biden decided not to go for that. definitely we will be in the united states. we will keep investing to the united states. joumanna: what are your biggest growth markets? takeshi: u.s., definitely.

joumanna: what signals are you seeing from china? takeshi: consumption is waning further. the confidence of consumers is very weak. so, china must get rid of the issue of real estate asap. with japan experienced the same thing but the magnitude is totally much bigger in china. so, china needs to fix the real estate asap. joumanna: and the domestic environment, obviously there is a coalition government, how do you see the government policies impacting the outlook for business? they are looking to pursue a slightly looser fiscal policy. takeshi: i think japan is facing a tipping point. and the government should encourage more labor mobility. because we are suffering from that huge labor shortage. so, mobility of labor is the key

thing to pick up the economic outlook. joumanna: are we likely to see more m&a deals? takeshi: i think so because more corporate governance will be seen in japan. which means we will divest nonperforming divisions, businesses i think we'll see more opportunities of m&a. joumanna: suntory ceo and president takeshi niinami. a really interesting conversation on the heels of that bank of the ban decision great to get a local view. tom: right lines in the need for higher rates in japan and the consumer squeeze in china and the demand he is seeing in the u.s. thank you very much indeed. there is plenty more coming up. we will do a deep dive into trump's comments around oil and interest rates. this is bloomberg. ♪ g workday to p ut finance and h.r. on one platform. tim, you are a rock star.

using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah.

the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways.

this check in on the markets. european stocks take a bow. set for eight straight days of gains. seven straight days of upside. european equities currently pointing higher 0.5% rate looking to build on the gains over the last seven straight

days. this upside for european stocks have legs? the 100 futures point to gains of zero point 1%. the consumer sentiment overnight from gsk pointing to further weakness in the u.k. s&p futures currently up. notching a record high by the end of the close on thursday. let's flip the board and have a look cross assets. the japanese yen is to be in focus but the pound as well. the yen strength on that interest rate hike. we listen to the governor over the next 30 minutes to see whether gives any hints of further heights in the pipeline. that suggests certainly, or seems to be the positioning, the direction of travel for a boj that is looking at inflation, most recent print at 3%. the pound at 1.24 after a weak sentiment survey, but the upside tells more about the dollar story, dollar weaker again largely tied to comments from president trump trade brent at

$78 a barrel. currently down has trump who saudi arabia to cut prices. and bitcoin at $104,000, up from the executive action on the crypto space overnight in the u.s. the german economy contracted a second consecutive year, as it struggles to escape from his long stagnation. this is as political tensions that sank last government further hit confidence, investment and consumption. how are europeans incorporates navigate these challenges, putting uncertainty over china and the rise of ai is a key theme at davos where joumanna bercetche is standing by with another great guest who can comment on these issues. joumanna: joining me is the ceo of germany's mark, good to have you with us here, you were telling me you are about to head off to the world a comic forum panel right after this. calvert talk about european competitiveness, which really has become a central theme the

last couple months, you can feel it with a big disparity between how american executives are feeling about the trajectory of the u.s. versus how european executives are feeling. what do you think europe needs to do? i know this is a big question. to regain competitiveness? belen: first of all, thank you very much for having me. we have been speaking about european competitiveness for the whole week. many people put it in the context of the u.s. elections. i really believe that we have been talking about this for many years. now we stand to go from debate to action. we have everything we need to address the challenges that we have. among which it is highly complex and fragmented. regulatory environment and political environment in which there is no unity between the number states.

closing the technology gap and creating an environment that is fostering innovation and growth for the industry. obviously, we have not spoken about the capital markets union which is absolutely key. so that we don't continue to invest in technology in europe. 300 billion euros every year leave europe to be invested somewhere else. simply because of the complexity of our environment. and of course the energy challenge. joumanna: there is a german election coming up. i wonder whether is too early because we don't know who will win but it is likely that conservatives will come back in again and there will be change of government. do you think there will be more focus on investment and fiscal spending, and introducing more progrowth policies for businesses?

takeshi: the environment in germany has been always aimed to foster investment in the country. we as a european based company invested heavily in germany and europe, signaling that we are confident that the ship will be turned around. let's not talk about elections. citizens will vote and we will have advantage or not of government, so let's not speculate about what is going to be happening, but i insist that we cannot look at germany in isolation. we cannot look at france in isolation. we have to really raise the level of political willingness to choose europe. joumanna: i want to ask a few questions about mark. when you took the helm might be introduced 25 by 25 policy. 25 billion euros of sales by 2025. belen: 25 by 25i-25 was an

aspiration. in one to 21, when we called that aspiration, we were in the middle of a pandemic. then we have several major crises that actually influenced very heavily the market conditions in which we operate. we continue to deliver on our promise of accelerating growth. we have seen growth acceleration in 2024. if you look at our q3 data, we delivered not only revenue growth but a significant growth of our ebita margin. joumanna: talk about your drug pipeline. many analysts in this space would love to see where you see the most promising drug pipeline. belen: i think in terms of revitalizing our pipeline, we need to step up on innovation.

for many years, we have focused internally on our assets, and of course our pharma. and our pharma business comes with attrition. the more options you have, the better placed you are to deliver growth of your lunches and de facto since 2017, the growth of our successful biofarma business has been driven by the launches, not by the core business. looking forward, our top priority is to increase the optionality of our pipeline, both in the areas of immunology and oncology. we have given very good signals that we are factoring innovation outside of our company to fill our pipeline to rejuvenate our pipeline and you need to drive innovation which is the lifeblood of growth. joumanna: china is a big market for you. i was speaking with a prior guest about the weaker consumption signals coming

through there. belen: china is a very important market, it is our second largest market. our main sector in china is biofarma. and we continue to deliver growth at and even above the market for some of the segments. for life science and electronics, china remains a fabulous growth opportunity, so we will continue to be investing in china. and in asia to be able to get the right risk/reward position but i am confident that china will recover. joumanna: i want to round off with another big theme in davos. and that is the question of ai. and whether you are using ai to a your footprint -- increase your footprint without huge cost outlays. belen: in terms of footprint, we have been investing significant capital the last two years to diversify and create resilience of our supply chains. we are much better position to

to be closer to our customers in any continent. talking about ai, we use ai, the frame guiding us is to deliver growth to accelerate innovation or to allow us to be more efficient. so, in that context, our main priorities when integrating ai has been covering to increase the productivity of our research efforts, and also i am quite proud and excited that we have been pioneering making our manufacturing operations much smarter, more efficient. we are collaborating with siemens to digitize our manufacturing operations. we are already very advanced on these. becoming even the best in class in this topic. joumanna: thank you so much for joining us. that was belen garijo, the ceo of germany's merck.

tom: thank you very much indeed. on the need for europe to finally step up to all those challenges. joumanna bercetche at the world economic forum. a lot more coming from dave us through the day. it is the final day, but do not turn away, because there's so much more to listen in to. on the pulse, francine lacqua will speak to the first round ceo and he has an interview with the economy commissioner as well. stay with us for that lineup from dave us. tomorrow stories making the news this friday. u.k. household confidence has fallen to its lowest level since the end of 2020 three, in the aftermath of the chancellor's budget. the latest survey by gsk shows that consumers are pessimistic about the economy and their prospects. the declining confidence comes with an economy that has slowed sharply since labour won a landslide victory in last july's election. the new french administration of

francois bayrou expects to raise 2 billion euros this year from the richest individuals with a planned levy to counterattacks optimization. the measure is part of a package of around 52 billion euros in spending cuts and tax increases aiming at bringing the country's public finances under control. the french finance ministry says 12 billion euros will come from additional taxes on companies. let's go back to japan right now pray lines crossing from the boj at the presser for the governor ueda. so far he is not sounding particularly dovish after raising interest rates for the third time by him and the team in this cycle. rates are at 0.5% after they hiked by 0.25 percent. he is talking about expectations that wages and those negotiations will continue in line with expectations for this boj. he's talking about trump as well. we have a line from ueda talking about will markets, the calm, we

know that is a factor they were considering in the lead up to today's decision, talking about real rates expect those to remain negative even with today's hike saying the pace of rate hikes will depend on the economy and inflation. they have no preconception on the pace of rate hikes. worth noting that the yen has strengthened in light of these comments. now up 0.7% versus the u.s. dollar at 154.88. we will get more analysis from valerie tytel in the next few minutes. more on the right decision from the boj and these lines from governor ueda coming up. this is bloomberg. ♪

tom: more consolidation news in the italian finance sector. monte paschi offering to buy

mediobanca in an allshare deal. the move confirming bloomberg earlier scoop. let's bring in our managing editor for southern europe. the scoop from your team has been confirmed. what do we know about this potential tie up? >> we know that we didn't sleep too much last night. we managed to report the news first. it is quite a big surprise because monte paschi is smaller than mediobanca which is a larger rival. auntie paske is coming out from a long restructuring process. the italian government is still the biggest investor while mediobanca is seen as the leading investment bank in the country. somehow a surprise move. what is not surprising is that mediobanca and paschi shares

investors. the billionaire delvecchio family. they are the biggest, together, the biggest investors in mediobanca. and recently, they moved on pa schi, about 9%. the italian billionaire families could play a key role in such a move. we have to see which will be the market response, the mediobanca response to an unsolicited offer. this is just a new chapter in a wave of consolidation in the italian banking industry. tom: the market cap differential between the two with the takeover target versus monte paschi is interesting. i'm old enough to remember when monte paschi was the troubled child of the italian banking family. what are the potential regulatory hurdles? ms. meloni going to look favorably on this?

>> so far we don't have any response from the italian government. as you may know, the italian government had been trying for a while to deter the big italian banking group. before a unicredit moved on banco of milan a few weeks ago, the engineered a stake sale to italian billionaires, so we can presume the italian government would look favorably on such a deal but we will wait and see which will be the real response. tom: thank you so much, after very little sleep, you broke the scoop and now we have it confirmed. we will watch how the story unfolds around a potential significant deal in the italian banking space. let's get the latest lines from the bank of japan's press conference that is ongoing. bloomberg's valerie tytel watching the market reaction with the gun at 155 versus the

dollar on these comments from ueda. >> we were on tenterhooks to see whether he would follow up this hawkish decision with a hawkish comments. it wouldn't be the first time we get a major head fake in between the decision and what he says in the press conference. he started out hawkish. he did mention that he expects solid results from the spring wage talks and the yen took another leg stronger on that but he says he sees no preconception on the pace of rate hikes. meaning that he doesn't necessarily know when that second rate hike this year would be coming and the gun did pair some earlier. tom: giving optionality at this point? >> perhaps, he is also talking about uncertainties which might lead into that optionality. the uncertainty on his mind is all about trump. trump and tariffs. that is on his mind when it comes to that. importantly, what we got in that

decision was very hawkish. if you look at how they upgraded their inflation forecast, it was a substantial revision, 1.9% to 2.4% is their inflation forecast for 2025, half a percent increase on that call. tom: to 2.4%? >> about their 2% target, that is a hawkish signal. he has made comments that if the economy grows in line with their expectations, if the economy meets their forecast, they will follow up with more normalization. it seems like rate hikes are on the board for the bank of japan later this year. the uncertainties over the wage negotiations that take place late march, early april time, and the clouding of the uncertainties around trump and his trade policy are top of his mind. tom: what are we hearing from analysts in whether this takes the brakes off the yen? we are seeing significant dollar weakness today, other factors playing into that, as you look

at the fx market, what should you be considering? >> i look at the fx market and i think there are a lot of people underwater. this move today is very painful for many out there who are dollar bullish. the dollar bulls are really taking it on the chin overnight, whether it is the yen, the chinese yuan and the move in euro, all sides are coming under pressure for those dollar bulls. another leg in this dollar lower story could be exacerbated by if we don't get further tariff talks from trump. obviously, it is on ueda's mind, he says they can speculate on the impact of tariffs. that could take this dollar strengthening, this whole paradigm around having a stronger dollar with tariffs, it could take a massive hit. the dollar has strengthened nearly seven to 8% since that trump trade started.

think about reversing a substantial part of that. it would be a big swing in the dollar. the one being the second-biggest currency traded versus the dollar. tom: also implications for japan which is a major importer of energy, but on the flipside, a big exporter of products where stronger dollar would benefit. continue to watch those dynamics. we heard from the centauri ceo at davos saying they are increasing wages for the third year in a row. 7%. these are sizable wage gains in the history of japan's recent couple of decades. the idea of 7% wages three years in tomorrow, five years ago, you would not have thought was feasible. >> these negotiations mostly take place once a year. we get clarity at the end of march. tom: excellent in terms of the market reaction to what we are hearing from the governor. with the yen currently up just over 0.4% versus the u.s.

dollar. lundmark coming up. -- plenty more coming up. bloomberg.♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪

>> he is a dealmaker. the first thing you do is you show you are a powerful stance. >> there is the policy environment and the rhetoric. >> he makes big statements. i will buy greenland. and from there a more practical deal approach. >> you will always do it in his own way. but that's ok because that makes possible for europe to come to agreement. >> if you are in the mantra been getting out of it on in the united states this week, you are full of optimism and energy. >> the progrowth agenda is very encouraging. >> smart regulatory environment.

we are going to have to see what the year brings because there are still more unknowns than knowns in the equation at this point. >> the policies are not particularly growth enhancing. not only for europe or the rest of the world but even the u.s. >> a trade war is not in the interest of course the european union. >> clearly the rhetoric is something we will have to tackle. tom: world leaders, ceos and central bank chiefs around the world at davos reacting to donald trump's first week back in the white house. and one area that have been targeted the last 34 hours has been the oil markets with a particular aim at saudi arabia, saying he wants saudis to lower prices. you have seen that this week. oil is currently at around $74. not a lot of movement today but the expectation of course that he could continue to hammer the

question of oil prices to get the pump prices down. but what does opec+ do in response? capital economics says the breakevens for u.s. producers is around 60 to $70 a barrel, so those producers going to step up and undermined their own pricing is another question. is the u.s. in terms of the amount of oil being pumped, at historic levels under the biden administration, you have not had a u.s. pumping this much oil ever, so how much more can those producers actually do? asset volatility has faded. you see dollar weakness today. morgan stanley saying they see a plurality of investors building out differing views on the dollar. this is bloomberg. ♪

the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways.

>> good morning, here is what you need to know.