tell us the story of bnp paribas. bnp clocking in a 60% gain. not only beats peers but is in line with the huge gain we saw from u.s. giants like goldman sachs. -- pare pervak targets back targets, though it is still somewhat ambitious given the interest-rate environments. committed to spending 50% of their dividend ratio in cash. anna: thank you very much. you can get the latest on the on yourand others bloomberg. kappa is up after reporting results. they missed estimates, but says 2020 has quote started well. joining us is the chief financial officer. good to speak to you. get your assessment of the growth prospects. e-commerce has been a driver for the business aired to what extent does that continue to be a driver? ken: we see increasing demand for our products. in a world where the consumer is pushing towards biodegradable, i think we see very structural changes in our business. e-commerce or the waste cents, -- sense, we see maybe not in the initial stage, certainly a key driver. clearly, you see some disruption in the trade war from the u

the number for fixed-income commodity and trading of bnp paribas. where does that put the relative to the street? out of a hundred million euros, that is below the billion number in the third quarter. morgan stanley nearly tumbled their numbers -- -- numbers. -- double to their numbers. bank of america rose by 25%. strong results across the business and the key takeaway is of the about the revival banks trading performance. a dividend payout of 50% and return in equity of 10%. nejra: slight cut to profitability targets amid falling rates. the red headline, revenue and adjusted industrial businesses missing the estimates. the headline takeaway, siemens is warning of a tough year after quarterly decline. misses the lowest estimate at 20.4 billion. confirming its full-year view, subdued 2020 macro development and is talking about lifting siemens energy in september. siemens was buying stake in the turbine maker for $120 million and the holding was to be folded in the planned energy spinoff. it is about the latest push to dismantle the company's conglom

on this -- page to bnp on this?o. to improve the supply chain and emissions across the value chain, technology investment, we will not set targets for customers specifically because and climate change, you will need more copper, aluminum, more nickel. you cannot say -- anna: jean-sebastien jacques, ceo of rio tinto. the markets are focused on coronavirus, the u.s. markets ticking upward. andfutures fairly flat, president saying on coronavirus, there will be a briefing this afternoon. this is bloomberg. ♪ ♪ >> bernie sanders. >> bernie. alix: the attacks on senator sanders as the debate turned bloody. virus contingent. to 2700. toll rises u.s.on in the welcome to "bloomberg daybreak." i'm alix steel. it has been a difficult two days or four days for equity markets. seeing u.s. investors trying to push risk on. we saw the same thing yesterday, but did not see it rollover. in the currency market, the dollar is the outperform or. -- the

daniel morris of bnp paribas will be staying with me.s is bloomberg. ♪ viviana: this is "bloomberg ."ybreak the parent of mercedes-benz is cutting its dividend by more than two thirds. daimler is also promising deeper cost cuts. ceo ola kaellenius is freeing up cash to pay for electric cars. his restructuring push has failed to gain traction. now to boeing. the company says it will take several quarters to return to skies.d 737 max to the telling bloomberg, "we are not system."overstress the by the middle of the year, boeing aims to get the jet flying again. we end with exxon mobil, cracking down on employee travel. this to analyze travel requests involving industry conferences. this is happening after exxon reported its worst quarterly profit in almost four years. that is your bloomberg business flash. back to you in london. alix: thanks so much, viviana. i have to wonder about that. how bad are things that you have to look at expenses? one of the company i am watching today is alibaba. it apparently is no block from hong kong's stock l

investors are expecting better than will actually come from bnp given the negative rate hit.re are early of issues. nordic banks this week. generally, the issue with the european economy is in low gear. rising loan risk could gain more attention this earnings season. anna: let's focus on the technology sector. what are we expecting from alphabet? >> analysts are expecting $47 billion of sales for the fourth. alphabet makes most of its money from advertising. the focus is really going to be on what they can do in the cloud services area. they make a small amount of money there, dwarfed by the area of -- but it is an estimates -- analysts think can grow. they are expected to make a bigger push. they want to overtake at least one of their big rivals in terms of sales volumes in cloud by 2023. focus on any incremental exposure around revenue and profit they currently make from google cloud and what their plans are for the next 12 months. the other area that continues to be in focus is regulation. that is a huge amount of focus on google as a dominant player in the u.s. and europe

he is the head of bnp paribas market 360. let's go straight to the yuan.t is stoic and its desire to be below seven. we see it hold the line. we see the pboc withdrawing cash from the system. >> there will be upside to some extent that will be capped. despite of the macro environment. that is due to the phase one trade deal that we have. the political preferences for some currency stability. the yen is likely to be more sensitive. because theonly trade linkages to australia but because of the central bank reaction function. nejra: has that now been put to one side? it has, what is the best way to trade that? >> it is definitely being challenged. it has been set to one side. markets have already shifted quite significantly. we have seen a real shift and that positional dynamic. if we look across armed emerging-market strategy teams risk premium model. that suggests that current market crisis has a lot of bad news already. that favors a rebound. manus: where might those biggest rebound come -- rebounds come? they like receiving rates and selective high-yield

we have also had bnp paribas out with earnings. it's a busy day for earnings.see the markets in europe are all down about a quarter ofa%. now to the us, where department store chain macy's is closing over hundred stores and cutting 2,000 jobs in its hunt for growth. michelle fleury has more from new york. shopping malls aren't dying, but the weakest ones are disappearing fast, and that is hurting department stores. the latest casualty is macy's. the chief executive of the 161—year—old chain said it's closing its cincinnati headquarters. new york will remain the single head office. 125 stores, a fifth of its locations, will go over the next three years and it's cutting 2,000 corporate staff. the move is expected to save it $1.5 billion annually at the end of 2022. the cuts are an admission that it can't succeed so long as shoppers make fewer trips to the mall and spend more time shopping online. macy's isn't giving up yet. the retailer has launched a small store format which will operate under the name by macy's on the day it will try to convince investors of th

joining us now from paris is the bnp paribas chief economist.anks for joining us this morning. william: good morning. matt: how difficult is it to gauge the effects of the coronavirus on the economy so far? william: it is very difficult, because basically, we have theory, demand shock, supply shock, and center tutti, -- uncertainty. we have a lot of anecdotal evidence. we don't have survey data recorded since the virus broke out. that means the next couple of days will be crucially important. we will now have the first evidence of how it shows up in the data. this has an important implication. the next several weeks will see more clarity. it means that for economists, we will probably have bigger surprises, bigger deviations between consensus and what comes out. that will be something that markets will need to cope with, thther they will ignore ese disappointments. matt: which areas, which data points are you focused on specifically? , we havewell, clearly to understand what is really happening in china. the risk it of looking too much anecdotal

. >>> bnp paribas rose over 28% to 1.85 billion euros let's get to charlotte it looks like they had a big quarter. big beat and good capital formation. tell us more why do you think the stock is not reacting well this morning >> reporter: you are right quarter-on quarter, it was beating forecast on revenues, it was up 11% net profit up 28% at 1.85 euros. all was driven by the cib division up 62.5% even equities as well which has been struggling a little more. as i mentioned, positive effects in the three operating divisions. a three to one ratio they reached a 12% target for the first time they mentioned operating expenses up by 4% because of the impact of transformation costs there on track to meet the targets. as you have seen, they have d n downgraded the return for 2020 they say the revenue in domestic markets should decrease in 2020. the domestic market make about a third of their revenues. the lower interest rate are being difficult to navigate. we talked about the french business take a listen. >> there is a good business drive. that's what we see all the other things are there

the french bank posted a boost in fixed-income revenue, still, bnp boosted the impact target becausees. an ultimatum from credit suisse ,nvestors to the chairman thiame.thidjane the urge the chairman to publicly back the ceo. european markets trading strongly as we head towards the break. we are looking for a decent session. we are about to start counting you down to the european close. ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. wheneveryone is different.a, which is why xfinity mobile created a different kind of wireless network. one that saves you money by letting you design your own data - giving you more choice and control compared to other top wireless carriers. now you can choose unlimited, shared data, or mix lines of each and swi

daniel morris is with us from bmp -- bnp. i'm curious as to what you would do treasuries.hey have been a haven for safety, but are they still at these levels? daniel: i guess it is a question of timeframe. even how much uncertainty there is out there, it make sense to hold on the treasuries that you have, though we are not increasing our obligations meaningfully -- meaningfully. between now and the end of the year, we would expect yields to be higher. we don't think were at the low point for yields yet, but in fair value of treasuries, it is yields higher than we have seen today. guy: daniel morris joining us asset management. vonnie: let's get to global markets overall picture. >> we are off the session lows, so we are still lower for the sixth consecutive day when it comes to global equities. s&p 500 off by 1.5%. a saw the index breach is 200 moving average and enter correction territory earlier. as did the dow and the stoxx 600 in europe and the european session. we are seeing the bit into safe haven treasuries. u.s. treasury yields are down five basis points. for safe

and bnp was out with this story.e are away, the big institutional players haven't tradeded -- they haven't the slowdown yet. they think yields should be lower when people start coming back. , anything below 2.6% takes you back to 2002. shery: thank you. our bloomberg markets, anchor joining us with the latest -- us withcoanchor joining the latest. friday as part of the phase one trade deal. let's talk all of this with the senior fellow from the peterson institute for economics, professor. great to have you with us. given the outbreak of the coronavirus, very little attention is being put to the fact we are going to see this reduction in tariffs on imports from both sides. tensionwe are seeing between the two countries. larry kudlow saying the trump administration is disappointed about the lack of transparency when it comes to reporting the numbers. the honeymoon period didn't seem to last long. mary: it didn't. i think the current rounds are sort of engaging with a collective sigh because they are not that significan

think of bnp paribas and socgen among them. paris was just the latest.rotests including new york and london. pressure is on for blackrock, the largest asset manager and its competitors to tackle environmental and social concerns. fink has given executives new sustainability roles, these protests show how far will blackrock be able to go if it wants to satisfy the harshest critics. anna: bloomberg annmarie hordern with all of that very interesting story. next, private equity firms have big plans for 2020. 75% of managers plan on raising an even bigger fund this year. according to a recent survey. we will speak to a partner at private equity about this. this is bloomberg. ♪ anna: welcome back to the european open. 40 minutes into a positive session, the ftse 100 up more than 1%. private equity firms have big plans according to a recent survey. about 75% of managers plan on raising an even bigger fund this year, the highest share since 2013 when a wise first started posting service. .ani: a telling survey this will be the story of 2020, the increased amount

that was a good sign. , buty a little below bnp generally held up.rd story we are watching his goldman has its third elite guy leaving from the electronic trading unit. what's up? sonali: third guy and one woman. a lot of people leaving. as a partner just a couple of years ago, which is rare to come in at such a high level. another exit this week that i thought was very interesting was someone who, just a week ago, was presenting at the investor day. the other person, the woman i was talking about, who is a very interesting person, she had about $2 billion in principal investments she was also overseeing. a lot of these tech firms goldman invested in early on, she was a big part of that push. so we have a range of executives leaving here, and that is above and beyond what we saw last year , marty chavez leaving as well. alix: i wonder what firm they will all start together? sonali basak, things a lot. we will look at bernie made off's plea for ape -- at bernie 's pleaf -- bernie madoff for a passionate release. he says he suffers from kidney cancer a

shery: paul sandhu, great have you, joining us from bnp paribas. we are continuing to see the chinese stock market under pressure with the csi 300 falling the most since august of 2015. in fact, broadly in china, we have not seen such a selloff since that equity bubble burst in 2015. we will have anymore. this is bloomberg. ♪ shery: we are getting the latest lines from the national development and reform commission. this would be the planning commission in beijing, saying they will reduce fast three -- factory outlook in an orderly manager -- manor. profits dropping more than 6% for the month of december. we are seeing copper futures, commodities, under pressure as we continue to see the coronavirus outbreak in china. 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 any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireles

bnp paribas in the fourth quarter keeping pace with some of its biggest wall street rivals, posting aome trading revenue after a rebound in rates and foreign-exchange activity. back, they are paring profitability because of negative rates. apple's main partner is cutting off -- cutting back its -- the chairman tells bloomberg the company is addicting a sales --rease of no more than 3% predicting a sales increase of no more than 3%. disney saying it can challenge netflix, profits soaring to almost 29 million. that success is not cheap. the quarterly profit is falling because it is spending more on movies and tv shows. that is your bloomberg business flash. francine: there is quite a lot going on. we have been using the wisdom of alex webb throughout the day and throughout the week. we have to talk about tesla and disney. alex webb makes us smarter on all things tech and cool. when you look at tesla, it is unclear how much value the company can have from here. pre-they are down, and elon musk -- premarket they are down and elon musk taking to twitter about opening a factory in texas. al