erik nielsen, unicredit chief economist still with us. accept the fact that they have been the biggest beneficiary of the single currency? it started with them. it was a quid pro quo for the french to allow the reunification of the germany, but germany has been the biggest beneficiary. now when germany is so against what is happening in the ecb and many members of -- many german members of the ecb have left, why would the germans accept this? question and i am not sure i can answer it in a satisfactory way. -- ite right that germany it is notight to say the biggest beneficiary but it is one of the biggest beneficiary. i believe the euro is not a zero-sum game, it is one where everyone benefits. it is also important to remember that monetary policy and exchange-rate policies are important for growth, but they are not as important as structural reform and prudent fiscal policy and both expansionary and contractor he ways. this is important. there is one thing that has been overlooked with the euro. germany has been a major beneficiary of th

and: and now, to tom unicredit. what is going on with turkey?oint venture of the company that controls a turkish bank that the italian lender with write-downs and a stock purchase last year. in august, people familiar with the matter said unicredit wanted direct control of its stake which would give it more options on the holding. in today's news, it shows the two companies are trying to finish this by the end of the year. anna: thank you, tom. politicser come u.k. rubbing up against u.k. corporate. what can we expect? at theifically looking housing and construction sectors. the manifesto yesterday included pledges on construction. as well as the measures on housing. that includes a stock like persimmons. and othersso sse looking at their holdings offshore regarding labor. no shortage of u.k. stocks moving today. anna: thank you to the team. thank you for bringing us the stocks that you are watching. first go is where to watch the stocks. the latest news lines around trade and president trump on friday and from the chinese on intellectual proper

cycle of business are flattening out and do expect their recovery >> a tale of two banks shares in unicredit and commerce bank sinks despite confirmation of prerelease numbers >>> and gaining altitude cost cuts helped lufthansa and they believe they will return to profitability by 2021. >>> potentially big news china and u.s. agreed to remove existing tariffs in phases if both sides agree to lift their tariffs at the same time presidents trump and xi were supposed to meet in chile before that was canceled. it is agreed they are trying to meet in december >> reaching a phase one deal that they would have met before host country chile canceled the event due to unrest. that deadline might not be feasible as the two continue negotiating the terms. if the date gets pushed out, that could get pushed out to europe president trump is expected to attend the nato leader submit in december he has suggested switzerland as the neutral location leaders have reported switzerland and sweden are under discussion the firm deadline for a deal signing is now viewed as december 15. >>> let's taicke a look at the

unicredit's ceo. episode ofcoming "leaders with lacqua."ith us is peter toogood, cio, embark group. current --s a net what planet does negative interest rates were? planet does negative interest rates work? companies need much cash. the german reaction to negative rates is to save more. concept of why they think negative rates so close ,aturally drains will be useful there is no credit cycle created by this. see japan for reference, it did not work. there are more savers and borrowers. anything positive you can say about negative rates? peter: no. juliette: one trader when trump is calling for negative interest rates, he is devaluing the currency. the dollar is showing heights. up have the currency going at some point, that will change. that is bad for the dollar. it is another way of introducing protectionism. that economy is relatively strong. anna: he will not get the negative it just rates he wants. what will the fed do next? peter: who cares? you said it is explainable by the cash washed into the system by the fed. peter: 1% yield. you

juliette: still ahead as we review the week, the ceo of unicredit insists negative interest rates canave positive effects. plus an exclusive conversation with san francisco fed president mary daly. >> i am a little bit open to the idea that the risks are on the downside. juliette: up next, more of the week's top business stories. disney launches its streaming service. the first day doesn't exactly go magically. this is bloomberg. ♪ juliette: this is "bloomberg best." i am juliette saly. let's continue our global tour of the week's top business stories with china. alibaba staged an e-commerce blowout with its singles day event. >> alibaba surpassing a sales record, bringing in more than $38 billion u.s. for singles' day bonanza. what were the popular items? >> we have a huge number of electronics. they are pushing a lot of products through us. new iphones. those are the top of the list. it is really the headline number, $38.3 billion worth of sales this time around. that is an increase of 26% from the year previous. interestingly, this is what people are looking at, it is a slight slow

francine: that was the unicredit chief executive.atch the full interview in an upcoming episode of "leaders with lacqua." the executive director of the iea will talk about people and where they see that coming. that will be coming up. this is bloomberg. ♪ everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines. mix in lines of unlimited, and switch it up at anytime. all with millions of secure wifi hotspots... and the best lte everywhere else. it's a different kind of wireless network designed to save you money. switch and save up to four hundred dollars a year on your wireless bill. and save even more when you bring your own phone and upgraded your network. that's simple, easy, awesome. click, call or visit a store today. francine: a substantial threat. president trump says the u.s. will increase tariffs on china. show me the money. the u.s. president lays into jay powell, saying he is hurting the u.s. economy by not using negative rates. go

i love this part from unicredit's ceo.ing to play a quick soundbite about m&a and what he needs to see to get on board. >> today, with the share price of banks depressed, it is very difficult to do. you need to ensure capital when you consolidate. for us at unicredit, we said recently that we prefer buying back our shares rather than doing larger cross-border transactions. so what this means is probably for the bank shares to go up, and then we might look at it. alix: what was your take away from that conversation? sonali: it is a poignant conversation to have with him because unicredit is one of the banks with think about having potentially merged with hummers bank. there were talk about -- with commerzbank. there were talks about potentially merging with softbank. that said, it is easier said than done. people have been waiting for m&a in europe for a long time. it is really hard to merge these banks. it is nice that he gave a little criteria. alix: higher share prices, and you got to be able to fire people. sonali: that

unicredit is up by 3.4%. we have numbers out of unicredit a little bit earlier in today.naround of that business continues better than expected, profits increasing their adjusted profits. that is the upside. that stock still up by more than 3%. looking for any read across from some of the companies that have reported today. we will go back to that shortly. let's have a look at the downside. hiscox is the biggest fall or. rolls-royce, we heard from them overnight, and exceptional charge coming through, guiding a little lower end of the rate and operating a free cash flow. certainly taking its toll. deutsche telekom also reported numbers this morning. we will let the markets just settle, but the overall picture being driven by these headlines around china and the u.s. as expectations for the rollback of tariffs. matt: an absolute ton of earnings out and not a great outlook news. on theocks are rallying one-china headline. anding us now is the cio founder of latitude investment management, the business celebrating its third anniversary this week. , are we what you think in t

forecast.s upped its only upd unicredit 0.5%, but unicredit is on fire, hockey sticking up. row we have seen gains for unicredit. it is amazing that it continues to run after it was up 5% yesterday. wealth management is a great theme today because of allianz and inflows we have been seeing across the industry and region. take a look at the losers, it is funny when i say that, allianz is one of those, even as it ups its outlook the cousin of the better wealth management story, the stock is down 1.9%, maybe the news involved in that. we also see nestle down as well as asml, bp. the defenses stocks are down. some of the tech stocks are down. we will keep an eye on those. anna: let's talk about where we are on these markets. european equity markets retreating, down 0.4%. signs of abating yesterday as asian stocks traded mixed and negative, and u.s. features also suggest a retreat. joining us now is stephen macklow-smith, head of european equity strategy, jp morgan asset management. very good to see you. it has been a busy week with the risk on momentum. this chart is a trade dea

we do have good numbers out from unicredit. we will talk about those in just a moment.nk having to downgrade its targets. the travel sectors are doing well. the bottom end of the market is rotating out of the bond proxies, understandable given the scale and size of the moves. we will get the bond proxies on both sides of the atlantic. the u.s. 30 year going through 2.4. real estate, telecom, food and beverage, the classic sectors you would expect to move are moving sharply to the downside. the bond prop the utility sector down 1.9%. let so you single stocks. , a strong demand for wind turbines. what is happening is the market is happy with the top line. against the middle of the p&l, margins are being squeezed. markets are looking past that. as a result, it is a plotting today's numbers. unicredit being applauded, up 5.68%, certainly showing better numbers. npl's being dealt with. it'll be interesting to see whether this can be sustained considering the exposure the italian banks have to the btp market. commerzbank, at a day where you're seeing markets moving sharply to

unicredit's ceo talked about the impact of negative rates.elp the european banksy stay to -- so the have been having a decent performance. you may have a negative impact on banks. vonnie: consolidation among european banks will take place only after share prices slide. that is your latest bloomberg is missed/-- bloomberg business flash. guy: still ahead, an update from capitol hill. the impeachment probe hearing now underway. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." time now for the muni moment. as we up arch -- as we approach the latter part of the credit cycle, there's a similar moment to the muni market back into thousand eight. here with maurice taylor riggs that's here with more is -- in 2008. here with more is taylor riggs. --lor: >> that's exactly right, taylor. there are a lot of similarities to 2008. there's been quite a bit of issuance, and the issuance, with particularly lower rated credit, have very few protections with regards to covenants

unicredit profit was up 26%, better-than-expected. they are offsetting the drop in lending income with higher fees and better trading. so unicredit looks good, and capital buffer was boosted up to 12.6% in terms of the cte one ratio. that's what the two have in common. commerzbank also boosted to 12.5%. that is the good news. on the bad news side of the coin, they cut yet another target. this time it was profit. the last time i spoke with them, they cut the revenue target. before that, they had a new plan to cut costs, a new plan to cut jobs. almost every quarter, commerzbank cuts a new target. o said it is negative rates, higher taxation. they will try to pass on the rates, but they don't know, and you can't advise anyone as to how to get out of the situation. it is edging towards a crisis for german banks. alix: thank you very much. we turn now to tech. qualcomm reporting fourth-quarter earnings after the bell yesterday that were stronger than forecasted, indicating that smartphone demand they be picking up after , with five years o

nejra: that was francine lacqua talking to the unicredit ceo.ch the full interview on leaders with lacqua. europe, we are awaiting cpi data out of germany later today. we will find out whether germany is in a technical recession. you are short boones. you have high conviction in that trade? >> pretty high. germany has been hit very badly in terms of its economy by a number of factors. it's a manufacturing dominated economy. it has been hit by the section 232 tariffs on auto's. it has been hit by china. it has also been hit by brexit. that's why you see boone's -- bunds trading some expensive. some of these factors are starting to turn. it will be interesting to see if germany goes into a technical recession, whether that is the cover the politicians need. they already have plans to increase fiscal expansion next year by 0.4%. there were some of it going on but this could give it cover to do more. hitgerman economy has been on multiple fronts. wrongould look terribly if the tariffs do go on. i think there will be a cause. best policy. -- be a cau

unicredit, for example, 1.5% on the 10 year. there is a baby bear market for bonds. they see up to 2.25% on the tenure. that's kind of a glass half-empty thing. sarah: i think you're still stuck with, if you're going to continue to have lower rates, people are almost forced into equity markets. you could see some volatility and perhaps correction into the spring because you have people getting into this year, but you don't have a lot of other places to put money. you still have a huge amount of negative yielding debt across europe. it is hard to see how the 10-year goes very high given that rate differentials just can't be that big. correct, if goldman is and they probably will be, i think the other end of that sector is right around 2%, 2.25%. that is not going to be a detriment to equities. that is not the trigger point where people say, that is great. i am going to move to 2.25% yield versus the s&p 500, probably yielding the same thing at the same time. alix: when we hear about the spread flattening again, everyone talks abo

today on "leaders with lacqua," we meet jean pierre mustier, the chief executive of unicredit.ustier, thank you so much for joining us.

vonnie: coming up on the unicredit group's chief economist eric nielsen joins us.n to the european close. he will be joining us in a couple of moments. let's take a quick look at where we stand. the s&p is down two points, the dow down 47 points, and the nasdaq is up 0.1%. some earnings movers today, as well as trade headlines moving markets. this is bloomberg. ♪ vonnie: -- guy: trump isn't on board yet. the president says he's yet to agree to roll back tariffs. stocks drop, but not that much. is rm because valuation work the $1.7 trillion the crown prince is looking for? greece and italy are hit hard again today. is this a rational repricing or something more? live from london, i'm guy johnson, with vonnie quinn in new york. we are counting you down to the european close here on "bloomberg markets." ♪ vonnie: we have the s&p 500 grinding backup towards flat. we are off our highs for the week, but there are a few hours to go in the friday session, so we will see what emanates from the market section. 10 year yield back down to 1.90%, reversing some of the selling d

unicredit's three-year transformation plan is showing results.xpected percent rise in first quarter profits, higher trading income and fees more than offset lower earnings from lending. for the second time in just weeks, commerzbank has downgraded its full-year outlook. the german bank is struggling with rock-bottom interest rates and increased competition. in september, commerzbank abandoned its goal of increasing revenue this year. cfo stephan engels spoke with matt miller in frankfurt. stephan: everybody is getting a little bit more scared by the quarter because it is unclear how to reverse the situation to something that allows interest rates at the end of the day to do what they are supposed to do, which is steering capital -- and the economy and the negative interest rate does not do that properly. i think that is pretty clear. >> that is your bloomberg business flash. francine. ? francine: thank you so much. commerzbank has downgraded full-year profit outlook. it marks the second retreat in just weeks by the chief executive as he grapples

from unicredit, first quarter net comes in at 1.1 billion euros. 995.3 million.s that is a beat.t is confirming its target for 2019, the target for revenue it is confirming it of course, what we heard earlier this week was that it was selling its entire stake. that is a reminder of that. in terms of the update today, the main number to draw your eye to his the third quarter net, which is a beat. lehman's numbers coming in as well. full-year adjusted, industrial businesses, 9 billion euros. the estimate was 8.61. that is a beat, at least on that number so far. looking through some of the other headlines, decline in market volumes for short cycle businesses. this was a problem last quarter as well so it seems this issue is still remaining. year 2020 of 6.3 to seven euros, excluding charges. the outlook will be something analysts are keen to hear more about. the global macro economic development, some dude in the full year 2020. that is a bit of a downbeat guidance. the main two headlines, a decline in the market volumes for short cycle businesses, and the full-year adjusted ebit-a.

shery: the ceo of unicredit speaking to francine lacqua.more lines from the hong kong government saying it should parents that decide whether or not children can go to school on this wednesday. we have seen disruptions around hong kong, including the train operator not running or closing some of their stations. the hong kong transport department saying that the train service will lend at 10:00 p.m. on wednesday. of course, we continue to watch whether those protests will continue this wednesday in hong kong. we will be watching hong kong and also the market ons in japan and south korea at the top of the hour. plenty more to come on "daybreak asia." this is bloomberg. ♪ everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 les, and switch it up at anytime. all with millions of secure wifi hotspots... and the best lte everywhere else. it's a different kind of wireless network designed to save you money. switch and save up to four hundred dollars a year on your wireless bill.