ubs i am watching as well. ubs buying back to $.1 billion of stock over three years. of by back since the financial crisis. you can actually follow the earnings call on tliv on bloomberg. finally, barlcyas moving on a report, saying that tiger global is taking a space. we are seeing a little shift that on th eb ack oe back of report. announced the $11.6 billion takeover. the deal values the hemophelia maker at $5.6 billion a share. good morning. was this a surprise? why does the market like it? >> it is a surprise. been trying to make a big acquisition for a couple of years actually. you remember those acquisitions. we worked pretty hard on those, too. this comes as a surprise because sanofi had been looking for acquisitions within the oncology center. this one comes more into the hemophilia, which is not a sanofi,clear add for though they have made it clear they want to grow in rare disea s, r and this addresses rare diseases for blood. it is an interesting acquisition. one could wonder, why didn't s anofi make this acquisition b off byore it was bought sanofen? ist:

joining us is our bloomberg reporter who covers ubs.ubs investors want the company to refresh its objective? yes. we do have the story out today on this topic. a sickly some investors are saying they would welcome some kind of strategy update, saying even the targets are quite old. ubs last held an investor day in 2014, whereas if you look at competition, credit suisse has been aggressive and they have actually held an investor day every year for the last three years. we are also hearing that ubs is sounding out some investors, asking for their opinion on whether they should have provided more detailed on the strategy. you can say that it is a topic ,bs internally is talking about and whether they will announce any big updates on monday is not known yet. mark: if there was a change in focus, what would it look like? this is a bank that has gone in hard on wealth management. what could or might change in focus or entail? developed itself into a role model for other banks over the last five years. it had a clear strategy, less investment

of ubs.onds, our next guest thinks sweet yields are made of these. that is next. ♪ ♪ haidi: bond traders are turning their focus to this week's crucial u.s. inflation data after friday's jobs numbers for short of expectations. us now is our next guest in singapore. great to have you. to the nonfarm numbers being a miss, and this week's inflation numbers, how much does that change the narrative for you in terms of what the fed does this year? >> the fed should be quite happy with those nonfarm payroll numbers. jobs growth was strong enough to confirm the recovery in the economy, and there was not any acceleration or inflation worries either. in terms of unemployment, it was roughly what the fed told us to expect when they published their dots. it does not put pressure on the fed to accelerate its pace of hikes come up but does not take away any hike probability either. -- pace of hikes, but it does not take away from any hike probability either. it is still gradual for the fed. haidi: does it

buybackounced a share which is tiny compared to ubs's market cap.hat was most underwhelming is the operating performance. margins are falling. this is a selection of low to negative interest rates in switzerland and the eurozone. obviously there are compliance costs. i think that was one of the main reasons for the stock drop. the share buyback and the announcement of this was probably surprising earlier than anticipated by most people. it was a relatively small buyback like what ubs could be able to do. that was the main reason for the dropped today. >> they have updated that strategy, let's call it an upgrade. takeaway here? >> i think that the profitability targets couldn't belabor it as an upgrade. ar lowering some of the targets. is themple asset-management business. they previously had a target of one billion in pretax profit over the cycle. i would say that the targets we were seen by some people as not very ambitious. i don't think we see a big shift in strategy. they stick to wealth management. i think the combination underpins their strate

but is this a ubs concern? would not say away from -- it would not stay away from them altogether. we are saying monetary policy tightening and rates, are led by the states backing up, that should be good for the banking sector. the problem for the european banks is -- they are probably out there changing the price. there is the value european equity space. >> whether you want to choose value, i would be very cautious. hink we continue to think northern european equities are more attractive, though they are highly prized. as you said, the higher euros, cthe germans can cope, but can the scandinavians. mark: opec and russia signal they are ready to cooperate beyond 2018. we hear exclusively from the saudi oil minister and his russian counterpart. this is bloomberg. ♪ mark: this is "bloomberg markillance," and im barton. crude is advancing afterwards third weekly slump, russia pledging supply cuts will continue, even as some banks predict the deal could and early. speaking exclusively to bloomberg, the saudi oil

anna: ubs buybacks. the swiss bank plans a repurchase and announces a new global wealth management unit. a very warm welcome. this is "bloomberg daybreak europe" today. i am joined by matt miller in berlin. we need to talk about what's happening in the markets and the breaking news coming out. breaking news out of sanofi. the wall street journal is carrying this news over the last 24 hours. a company.d buy this is a touch above the number reported -- in the reports over the weekend, suggesting $11.5 billion. it is expected to start in february 2018. they are giving us various details about the kind of eps secretion we will see as a result of this deal. this represents something like a 65% premium to friday's closing price. strategy in with the of the business, trying to add treatments from layer blood disorders to the portfolio over at sanofi. sanofi looking to offset some of those that of theen fading because insulin drug. that is the backstory. 100 five dollars per share in cash. a 64% premium. let's t

that was the chairman of ubs. you, francine.live from davos, we will be hearing from michael spencer of nex group. we will talk about financial services and the role of london. that will be part of the conversation. stay with us for that. this is bloomberg. ♪ we use our phones and computers the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited. and ask how to get a $150 prepaid card when you buy a new lg x charge. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple lo

>> this is a particular ubs issue. they have had that emphasis on wealth management, but the key to the quarter is that it is underwhelming. investors were looking for something to get excited about. even though they announced the share buyback, it is smaller than what u.s. banks are doing. investors are not as excited they were hoping to be. they were going into the results hoping for new targets, new aggressive targets, and the market feels they weren't as ambitious as they were hoping. they downgraded expectations, and that's why you're seeing week is in the stock. david: many thanks to michael mckee and caroline gage. coming up, more on the shutdown and help markets are viewing it. life from new york, this is bloomberg. ♪ >> a huge deal today, the company was spun off by biogen last year and is looking for new products to offset its best-selling diabetes drug. luxury retailing is looking more to the internet. richemont to buy ynap. aig will buy validus holdings. that is your bloomberg business flash. david: thank y

the old head of that division was a 30 year ubs veteran. decided step down in december. that raised some questions about that sector, is it competitive? this is an area where ubs has to keep an eye on the ball. credit suisse is also upping its game. in 2008 and 2009, western banks were going down in china. what were the lessons learned about what they got wrong a decade ago? ago to thet a decade side for a moment. i think what they are doing right in china is taking the slowly approach. they know china is going to be the most important market for them in asia. in terms of wealth management, it will eventually be the biggest market in the world. they have to be on good terms with the government and clients there. tom: great work out of china by our team smart comments from ubs. we will continue with jpmorgan. lots more to talk about as well. coming up, we will look at the new brexit. prime minister may is back from holidays. i guess the big four in the british cabinet stay. we will do that in the next 20, maybe the next 45 minutes. your morn

i spoke with the chairman of ubs, axel weber. he is beginning to look at how long this run can last. >> we are expecting a half percent impact on growth this year and next year. and we are waiting for what the u.s. will announce on infrastructure investment. that will be a key driver this year potentially. but the u.s., current sentiment indicators are tracking roughly 1.5% above the hard data. so the market is pricing in a lot of positive momentum. the imf is revising their growth forecast. so before these tax reforms and the current policy takes hold, it's showing there is a lot of momentum down the road. i think we'll normalize the world economy in a much safer place. i get worried there is so much consensus around that this year almost nothing can happen. the sentiment is so good, i start worries do we miss part of what might be risk. maria: there is a lot of optimism out there. are people too optimistic? >> volatility is at an all-time low. comply season i is high in the market. we have been advising our clients to cover the

ubs talks to cnbc. >> if we can grow our business we can also announce as we did today clear strategyn capital returns. >>> it's mega merger monday. as an $11.6 million deal to into a varitek on a bid on bio technique and treatment. >> ocado, oh canada. the retailer pushing it sending shares to the top of the european market. we talk to the ceo of ocado solutions in just a moment >>> and no deal. the u.s. senators remain shut. it's still not clear if there's enough support for it to pass. >>> and our session across europe, we can now see a little bit more red on the board than green. pretty flat open so far. the stoxx 600 flat right now as we look tesk at the effectsf driving that in the markets. looks like energy stock is doing well, up over 0.fi75%. telecom looking tour pretty strong so far this morning with travel and ledger down 1% travel is not doing particularly well let's talk one big story ocado shares sending the market higher to develop its online grocery business the agreement with the second largest canada food retailer comes as there are opportunities in the north and ame

vonnie: mike ryan of ubs wealth management, thank you for joining.his is bloomberg. ♪ mark: this is bloomberg markets. i am mark barton from london. vonnie: and from new york, i am vonnie quinn. president trump is set for his first state of the union address tonight before a joint session of congress. it is expected to highlight his successes so far and a look ahead to some of the big legislative priorities for his second year in office including immigration and infrastructure. how will lawmakers react to his proposals? cirilli,e now is kevin bloomberg's chief washington correspondent. there have been words that some lawmakers would not attend or would walk out. what is the latest on who will actually be there? kevin: some lawmakers not attending tonight, but the overwhelming majority of them will be. the president looking to stick to the teleprompter and more in line with the speech we saw last week at davos. therding to officials, president will seek to give a unifying message as he talks about the success of what he feels it in his first year in o

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i thought you were at deutsche bank >> ubs >> when did this change? >> earlier this -- last year >> last year i'm coming up on a year. >> are you helping with the pay income increases that we're seeing in the wage sector? did you get a good deal to go? >> i'm fine, joe >> you're doing well excellent. ryan, you're 8% to 10% for the year that's not stepping out on a limb, is it? >> it's probably not but when you consider the fact that we had 20% gains last year, we think this can continue here's why we have global earnings finally kicking in emerging markets in the u.s. and developed markets. we have two years in a row of growth in all three of those we have not seen anything like that since before the financial crisis look at what's happening under the surface with the base medals copper breaking out.

here in shanghai held by ubs.e outlook for 2018. yvonne: we will come back to you in a little bit. that was tom mackenzie with paul baughman -- paul donovan in shanghai. we will be back at the conference a little later, including an exclusive interview with the bank's ceo, you don't want to miss that, 11:40 monday morning think on time -- hong kong time. betty: you can find in-depth analysis on bloomberg radio, tune in to daybreak asia from 7:00 a.m. hong kong time. you can download the app, or access it at bloombergradio.com. this is bloomberg. ♪ ♪ yvonne: a quick check on the latest headlines, airbus is discussing a large plane orders from china during the french president's state visit this week. our sources say talks are models,on various although the sides of the order is not final. china purchases jets collectively before distributing them to various airlines. it accounts for a quarter of airbus deliveries. betty: bloomberg has been told that china's hna group has approach brokers about the possible sale of

anna: ubs wants a bigger piece of china. in an exclusive interview, sergio ermotti tells bloomberg the bank aims to buy a majority stake in its chinese joint venture. >> we have started the discussion with our partners about not only going out to 49%, but also we want to go up. manus: may signals a shakeup. the u.k. prime minister readies to reshuffle the cabinet as she pushes brexit through to the next phase. anna: and bannon backtracks. the former white house chief strategist issues a lengthy apology to trump and his family, and rallies around the president. ♪ anna: good morning, everybody. six: no one here in london, welcome to the program. let's tell you what's been going on in the asian equity session. manus, the msci asia-pacific, excluding japan, which is out for today, is up by .3%. the strength is coming through from the u.s. session on friday, allowing markets in asia to edge higher. the s&p closed out on its best week since december, 2016, largely putting aside any jobs report.he let's have a look at the dollar. t

we just had ubs on and they go to 157, professor. how can you be that far apart. >> maybe 145 i just -- i'm not sure we're just -- listen, i've seen huge fades from january to december if you go back a number of years in terms of optimism my feeling is i have a hard time seeing it actually going that high. >> do me a favor, bear with me one second because the president is decidedly more bullish than you. eamon javers at the white house on where the president thinks stocks will go from here. >> reporter: we just got some fresh tape in from the president's meeting at the white house. we may have seen the president do something that we've never seen a president of the united states do before, which is make a call on the dow. here's the tape. >> we broke a very, very big barrier, 25,000. and there were those that say we wouldn't break 25,000 by the end of the eighth year and we're in the 11th month. we broke 25,000 just as we came in now, i have to be a little careful because as we walk out, maybe it goes down you always have to be caref

. >>> to this morning's top corporate stories, ubs is the latest bank to announce a short-term hit overhe tax overall. switzerland's largest bank posting a loss for the fourth quarter. among other headlines from ubs, it's increasing its dividends a share buyback program worth up to 2 billion sfraefranc. >> we got that basel 4 thing significant in the european banks moving forward it's kind of like they're turning the tide coming over, but later than the u.s. in tellers of when they can go to shareholders to announce a reinstatement of that policy even though the earning are down and kind of disappointing to the analysts, going back to the shareholders it's a significant moment >> interesting with the global banks having to deal with regulations in europe and tax laws here changing. >> in other corporate news, carl iza icon has got a message for xerox. >> they're pushing carl icahn to explore options. they're calling on the company to explore alternatives which could include other transactions breaking up a straight venture with fuji film and firing jeff jacobsen effectively immediately.

ubs point out home depot, lowe's, dollar tree and dollar general.lar stores in particular, ubs, thought would do well with the extra bumps in paycheck. cruise lines like royal caribbean and carnival and starbucks and burger king where every extra dollar in your paycheck can turn into big savings and big spending for those stocks you can see the whole list behind me. i i wanted to highlight a few names. back to you guys >> eric, thank you eric chemi it's interesting because there's only a few dollars here and there. it's not like george w. bush rebate checks. the trump administration is unveiling it's proposal for immigration reform >> the white house trying here to break through the log jam in washington, but they may have actually made the problem worse. their plan provides a path to citizenship for the 1.8 million undocumented immigrants who qualify for daca in exchange, the white house wants $25 billion to build a border wall system plus more money for immigration enforcement. the administration is also calling for an end to what it says is chain

that is the big question. 855.ly, a general look as to where ubs peers.relative to its ubs is in whitet the best performer year on year. credit swiss is up over the past year. is aboutbank in yellow flat. barkley is in the negative. if this is the bellwether for anything, the swiss miss harbinger of things to come. >> yeah. very different from what we saw from u.s. banks as well. coming up, the i.m.f. warns forcy makers to be prepared a new recession. where are they seeing bright spots? we're going to hear from maurice, next. this is bloomberg. ♪ >> well, the international monetary fund is warning policymakers to be prepared for itew recession, even as predicts global growth will accelerate. chief economistic discussed the outlook for growth and u.s. tax reform. emerginglook at the and developing markets, we've seen them open up. seen them reform. we've seen them introduce and fiscal frameworks that are consistent with stability. we've also seen many of them, all, converge toward levels. country income not always that close but it's gotten better. markete, you know, friendly reforms do

shery: that was part of our exclusive conversation with ubs ceo sergio ermotti.ad, north and south korea will hold talks for the first time in 2018 on tuesday. what this means. we will discuss next hour. vonnie: the s&p 500 is holding on to a slight gain. all the sessions last week were higher. a quick reminder, you can catch all of our interviews on the bloomberg, just type in the function tv . this is bloomberg. ♪ shery: it is 1:00 in washington, 6:00 i london, and 2:00 a.m. in hong kong. i'm shery ahn. david: and i am david westin. welcome to "bloomberg markets: balance of power cocoa with a focus on the economy. shery: too little too late. steve bannon's attempts at peace with donald trump. clock is ticking and time is running on a partial government shutdown. is january 19. will lawmakers decide to once again pass a short-term spending measure? despite a rousing speech of the golden globes leslie in los angeles, oprah winfrey said she intention of running for president, but will the buzz change her mind? ♪ david:

. >> billion-dollar write down after tax code overhaul talk to former executive about ubs from what iwants to talk more football can tax reform or anything else we will talk did long term impact and an horizon joe primed and ready to go the tech titan,spent opening the door to store of the future, interesting story complete with a checkout with no cashiers at all, just ahead. and the go -- does it again integrates of all time tom brady tough to argue leading patriots to amazing comeback win, yet another spot, in the super bowl, there is controversy from what we're being told now there is always conspiracies plans not about that hug, but about -- some refereeing this kind of stuff also a claims against new england the bottom line. shutdown bloms up how about this, a d.c. bar taking care of if you are loud workers with cap shill inspired menu names on there, break it down, in this hour, of the pollster lee carter with us all morning jon hilsenrath "the wall street journal" and managing partner mike murphy, welcome all. >> good morning. >> great to be here. >> we will get a deal on this

francine: on ubs, what was -- it was a very difficult day.u remember some of the conversations that you had at the time where you realized something had to be done that -- which would have been unpopular? philipp: we had done conversations about what it would look like. we had engaged with the bank to -- at the time to study some swap operations. we never told them that we were prepared to actually buy the assets or take them over, so we were well prepared, but the actual moment i remember very well was at breakfast at my apartment actually at the time in zurich, with the ceo and the chairman came by and basically told -- thomas jordan was there at the time, myself, and the head regulator, and they told us that they now needed help. and that was a very clear, decisive moment. from then on kind of the plan went into action. and that was a tough moment, because we knew that, you know, we had to do it. but we also knew that it would be a grave thing to do in many ways. francine: talk to me about the capping of the franc to the euro. again, were

i think ubs has been the most vocal about china.seeing announcements they are getting more aggressive, they are ahead of targets and we heard about reforms late last year. i think there was some excitement, but for the most part, those of us who have been around for a while have said we have seen this movie before and we will wait until we get a little too excited to see -- to see some meat to the reforms. lisa: we don't want to get too excited, we have seen this movie before. there's a reason why china is -- theyup the $40,000 are trying to crack down and they are concerned about credit markets overheating. you have to wonder what risks these banks are assuming from a credit risk standpoint, but also with respect to the relationship with the chinese government. there was a story on friday that shocked me about one way china is trying to crack down on financial risk taking by limiting bond trader salaries to $154,000 a year. this just sort of shows the risk of that might not be fully appreciated. david: why is it important that bank

investment office at ubs wealth management. continuing rally we saw last week, and it we are down an if bit today on the stocks first hundred, we are look at the gainers on the riskier stocks and losers on the defensive stocks. when will investors get tired of getting into this market? >> i don't think they are getting tired at all. it is surprising optimism. it is more of taking a step back, looking at the data, the fundamentals and feeling more comfortable with it. it is something we would -- would encourage as well. right now, people feel confident. guy: equities have been driven higher by central banks. central banks are turning more hawkish. the punch bowl is going to be taken away. geoff: look at our financial conditions. markets notty really reacting in a negative way. that is a flight normalization of fundamentals to justify current gains. matt: we will talk more about this equities market with our guest. he sticks with us for the next hour. by the way, if you are a bloomberg customer, you can watch our program using tv

ubs says the pboc will stay the course on interest rates in the next two years.alk to their to china economist. that is next. this is bloomberg. ♪ yvonne: this is "daybreak asia," and i'm yvonne may in hong kong. betty: i am betty liu. a rebound to 1.9%. that is well below the government prosecutors and target. little pressure for the federal bank to tighten monetary policy. expectt guests does not any rate change the 2019. let's cross over have to ubs greater china conference in shanghai where tom mackenzie is standing by with the bank's chief china economist. tom. you.betty, thank joined by the chief china economist at ubs. time thisfor your morning. as but he was saying, we got the inflation data out tomorrow for china. what are you forecasting for cpi and ppi? >> our forecast is cpi will have a bit of a rebound to 1.8%. to decelerate. tom: is that posing a risk for profits? the corporate did pretty well as producer prices picked up last year. is that a risk for corporate china? >> ppi rising was driven by upstream prices. all materials and commodities. while

otra falta de ube. comentarista: son provocadas por el cansancio que tiene el amÉrica. son todos jugadores de la liga mx. marchesÍn. el cronÓmetro. este partido va a terminar en cualquier momento. el Árbitro ya miro el cronÓmetro y dice que es el final en el estadio!. amÉrica y pachuca, hhan igualado 2-2. comentarista: asÍ viene siendo la historia en el enfrentamiento entre estos dos equipos. casi al finalse lo lleva. presentador: tenemos mucho mÁs de la liga mx. tigres-santos. mantenga

. ♪ >> ubs expects robust economic growth in 2018, although the u.s.e less of a strong driver. exclusivelyti spoke to bloomberg about the opportunities and challenges for investors over the year ahead. >> we continue to see a robust economic growth, 3.8% in 2017 .hould be repeatable we will probably lose some momentum from the u.s., or at least not as strong as we had in 2017. some from the rebound of commodity prices in general, some from the property in china. brazil and india to continue to develop well, and we need to watch on the other end what are the repercussions monetary policy by central banks. >> in the u.s., europe, are they starting to look frothy? is that synchronize global recovery underpinning goes for you asian's? -- those valuations? >> we feel equities are still a , at least in be terms of other asset classes, but also on their own. we do believe it is the place to be. valuations across all asset classes are high, and therefore there is a focus on quality and diversification. >> what are you seeing in terms of trading activity from y

orders ubs see inflation -- or does ubs see inflation percolating? have a weaker dollar fueling prices. these numbers may bring u.s. headline cpi inflation close to 3%. tom: that is quite a statement. you are predicting 3% u.s. inflation? themos: a little below that. what if the dollar continues, around the middle of the year, headlines will jump. francine: what does that mean for treasuries? , they get tight. now, we neednk for some inflation. the worry has been we are not delivering some of that. at the same time, allow the market of -- to price in more hikes. an environment of easing, equities are strong, growth is strong, the market will absorb it. the curve will flatten. and given that a lot of that is priced in on the long end of the curve, the u.s. will have less to worry about in the dollar. francine: are there bubbles in the market? kona: -- "bubble" is a difficult word to use. the low end of the credit quality is more susceptible to higher rates. that will underperform. you mentioned eastern europe is a place where you could see some real m

tom mackenzie spoke to the we should at the ubs greater china conference.. >> we have guided investors in our series where we sell 20 or 30,000 cars. how much of it is down to have this replace the factories and buildout because we see this concept cars being launched at auto shows that when it comes to this, how do you manage to get over that? what are the challenges? >> data capacity for 102,000 cars so with a process of tilia now and putting all the robots and blind assembly, i think we will have as difficult a time with made treasury has tesla did, china is the king of manufacturing so it is a jvc know how to manufacture cars. >> you are squarely focused on the chinese markets but where are the biggest markets beyond china for the done the line? >> we are targeting to be in the u.s. in 2020 and we also had to europe as well. terms of the infrastructure in china, charging points are very important, what are you seeing in terms of the buildout and the starting point and ensuring that the arm can get from point a to point b smoothly and efficiently. >> we

ubs held its greater china investment conference in shanghai this week.ie caught up with sergio ermotti for an exclusive interview and asked for his thoughts on the global macroeconomic climate. robustontinue to see a economic growth. the 3.8% we saw, the mix of this -- we willoing to be probably lose momentum in the u.s., or not a strong as 2017. some from the rebound of commodity prices, generally speaking. end, we expect brazil and india to develop well. we need to watch on the other of the repercussions normalization of monetary policy. are the u.s. beginning to look frothy? say thatk we can starting the year we believe -- is a good place to be. valuation across all asset passes are high. -- all asset classes are high. what are you seeing in terms of trading, volatility? are we starting to see a pickup now? early in the too youter, but in general, expect january in the first quarter to be more active. in terms of market volatility and realized volatility on financial markets, it is still very low. i don't see a change in the trend. if i looking to 201

is it resetting the agenda for ubs as a capital given?it is quite difficult to get ahead of our u.s. peers. if you look at the size of our share buyback, it's very aligned with our capital requirements and ar our need for growth. i think we would be benchmarking that way. what we are doing is adding a flexible capital return policy with an attractive opportunity to couple of with the share buybacks. manus: you're putting wealth management and wealth management america together, a joint leadership. what does this in response to? is it in response to margin pressure? why now? >> i do not think it's reactive response to anything. dos a proactive move that we following the evolution that we had the last five or six years. you think about those businesses went through changes restructuring could they want . they went through growth, focusing on their own growth path. we started and internally and externally to communicate and make it. for example, our network alliances working closer together in our family office operations were working very c

ubs held its greater china investment conference in shanghai this week. tom mackenzie caught up with sergio ermotti for an exclusive interview and asked for his thoughts on the global macroeconomic climate. >> we continue to see a robust economic growth. the 3.8% we saw in 2017, the mix of this growth is going to be -- -- going to be different. we will probably lose momentum in the u.s., or not a strong as 2017. some from the rebound of commodity prices, generally speaking. some of it from the property in china. on the other end, we expect brazil and india to develop well. of course, we need to watch on the other end. the repercussions of the normalization of monetary policy by central banks in the future. >> are the u.s. and europe starting to look frothy? is that synchronized recovery underpinning valuations? >> i think we can say that starting the year we believe equities are still a good place to be. at least in terms compared other assets. at current levels we believe it is a good place to be. valuation across all asset classes are high. therefore, w

abigail: ubs ceo sergio ermotti

nejra: the ubs investment bank says there is a slew of investment.e spoke exclusively to francois villeroy de galhau in -- he spoke exclusively to francine lacqua in davos. >> it has been climbing from 2016 to 2017. we have the biggest deals being done during the fourth quarter. we think that should continue due to what has risen, which is growth, confidence, changing taxation in the u.s. and regulatory relief. we think that will push the amend a cycle. -- push the m&a cycle. let's get back to davos, where we are joined by haslinda amin. haslinda: the brexit transition period. monday it is expected to lay down a december 2020 expiration date. countries are open to expanding the phase beyond that deadline. joining us now is the european commissioner. he joins us this morning. good to have you with us. when you look at the brexit negotiations? will it be a long time before we see actual results? >> britain will leave the union on the day which has been set. it's in our law. so, you cannot stretch the legal system. there is a one-year time period. of co

ethereum, that is being used by ubs. a blockchain technology, which is the debate over bitcoin that i don't want to join in on, frankly, the cut because it is very speculative. francine: you don't really like cryptocurrencies. you have made that clear. but is there anything you need to look out for when valuing this underlying technology? >> let's be very clear about where i stand. i'm not against blockchain and developments in the sector. i'm pretty sure 10 years down the road we will be talking in a totally different framework. is issue i have right now you don't have a credible solution backing them. therefore, i question seriously their value. secondly, you don't have any or you have minimal regulation. the way these things develop is initially have a number of smart people that start development and get engaged. they create value. then, you have all these momentum players that want to start joining the party. at in the absence of credible institution backing them, this creates the massive problem. francine: you thin

said their controversial safe injection site plan responds to drug users unprecedented crisis with an ub precedented step. >> meet them where they are. the safe injection sites take a practical approach. if you can't get people to stop using drugs right away, at least help them stay safe as they do it. users administer drugs like heroin with sterile needles only steps from medical personnel trained to treat overdoses. in philly the sites will also attempt to connect drug users to recovery options and even leaders who were initially skeptical like the police commissioner say they have arrive d at an open mind. >> we certainly cannot just throw our hands up. >> there are many questions like how his officers would police the spaces. officials still have to determine where the sites would be located, what outside agency or organization will run them and how the federal government will respond to the plan. >> i think we're confident that and hopeful that the federal government has more important things to do than to not save people's lives. >> the trump administration has not endorsed safe in

evan brown of ubs still with us. you look at the asset data question mark evan -- that asset data? evan: this shows that the ecb is in no rush. they are on autopilot, and policy will be quite accommodative for a time. alix: are you of the mindset that we will see more strength in european equities, or a pause and we will have to prove some growth? evan: i think we will see more strength in european equities. we talked earlier about growth revisions higher. there has been nowhere except europe where that has been so strong. fact, european growth is almost double potential growth in europe. so that in itself is going to attract inflows. people are feeling much better about the cyclical upswing. what will matter is the speed with which the euro appreciates hear it if it appreciates to bring fast, it can weigh on earnings. we have been hearing for some time that european stocks are undervalued, and people coming on this program saying you should buy europe, and yet it has not happened. why? evan: at least now you are get

when i was president of the investment bank at ubs, 27 countries. everywhere, and based on what south korea has -- is briefly looking at, japan and china, tradeings, it's going to change the speculation. we're seeing the dump when we can. liz: regulation is the sword of damocles hang everything on the bitcoin saying we don't want to do with it. china saying we don't want banks trading it and also said we don't want related businesses, that would include block chain, the ledger that legitimizes block chain? >> block chain is decentralizing, using this virtual ledger. there is going to be speculation in all of these cryptocurrencies, there will be some that are real asset classes and here to stay and whether bitcoin is the future. i'm not sure. let's recall, they're down 50% from the high, but up 10 times from a year ago. there are still a lot of people that are still active. liz: there was the long island iced tea company, long belong chain company, plummeting 18%. we have other stocks we can show you that are involved in either bitcoin or bitcoin tr

ubs is a bellwether, kicking off next week.tors wondering if they are going to move them a bigger of -- he gives you more information in the upper left-hand corner, for example, right now we are almost looking at even brent. 205 stock down. 140 yet to open. here you see the leaders. it is on percentage change and there you are going to see more dignity than ubs. if i switch it to index points, i get a bigger name, because they are moving the index around with their weight. basf as well and shire. ec technical, bio and drug stocks moving up at the top. at the bottom we see total and royal dutch shell. bp at the bottom. hsbc, allianz, a lot of the big banks are moving down as well. you see banks on both sides of the ledger as investors get their bets ready for the european banks earning season kicking off. the u.s. house of representatives has passed a spending bill to avoid a government shutdown. senate democrats say they have the votes to block the measure in a bid to force republicans and the president to include protection fo

from a ubs standpoint, a lot of clients are interested in it.ture is we don't really understand the dynamics for brexit, value. where do things come from? with are a lot of issues respect to money laundering, what is happening in the background, etc. we take a cautious view. we act as an agent. we are supportive, but we do not get involved proactively. here 24: you have been hours, two days. do people want to see your thoughts on brexit, europe, switzerland? what is a conversation you have over and over. andrea: brexit. francine: what do you tell them? it is more calm. everybody has a plan how to redeploy and relocate. we are waiting for march to see if there is any definitive agreement on transition. we are beyond maximum time now. i'll investment banks need to take a view -- all investment banks need to take a view and start executing. march is the deadline. we are going to try to keep as much as we can in the u.k. as a firm. it is because if we all go back in history, we had a decentralized model in the past. we all centralized for efficienci

abigail: ubs ceo sergio ermotti shares of shares exclusive insight on the global economy. >> at least as we thought in 2017. abigail: plus, conversations with heavy hitter

ubs is now coming in at $14.4 for amazon, up from $12.50. today amazon climbed 2% to close at $1,276.68. >>> this flu season is packing a punch, coming up. >> reporter: doctors say this could be the worst flu season in nearly a decade. coming up, what's driving it and . >>> the flu was estimated to co the u.s. economy roughly $10.5 billion annually. that figure doesn't even include lost productivity from sick days. as meg terrell reports, this year's flu season is >> i think i got it on wednesday. >> r flu season is here. and already it appears to be more severe than usual. flu is now widespread in 46 states and hospitals and clinics are seeing a spike in patient visits with flu-like symptoms. a major reason is the strain of the virus that's circulating. it's called h3n2. the centers for disease prevention say reports of the strain increased in december. dr. anthony fauci says it's a more severe strain and the flu vaccine isn't providing as much protection this year. >> a really good year of protection would be about 60% efficacy. we can't t

ubs wants a bigger piece of china.erview, sergio tells bloomberg the bank aims to buy a majority stake in its joint venture. we are 30 minutes into the trading day. let's see how things are shaping up. take a look at what is going on in the markets. ,e have gains on the continent so the dax is gaining, and the cac is gaining. meanwhile, the ftse is down .1%, so it looks like that bullishness inequities is prevalent here on the continent, but not so much in london. let's get the first word news right now. for that, we go to sebastian salek. sebastian. u.s.,ian: matt, in the steve bannon has issued a lengthy apology to donald trump and his family over comment in the book "fire and theory." he set -- and fury." he said donald junior is "a patriot." -- to get damaging information on hillary clinton. gathering was treasonous and unpatriotic. in the u.k., after a year marred by disastrous snap election, the departures of several high-profile ministers and an unfortunate conference speech, theresa may is looking to enter 2018