christine lagarde spoke to me earlier this morning. ms. lagarde: if markets are interested in what is happening in the next 12 months, we should not pay too much attention to the strategies, because we are conducting two different exercises here. we will have our monetary policy access met and review, as usual, every six weeks, we all get together, we look at the numbers, we look at the markets, we look at the views of the citizens, in terms of inflation expectations, and we decide vary onehings should way or the other, and that will be constructed irrespective of the view. to say it will be stable for 12 months, i think eh, because things change, and we might have different signals, and we might reconsider. we might. i don't know at this point in time. what i do know is it will be into different exercises, and the strategy review will be on its own, on a standalone basis, and look for programs, because we are looking at what we do in the future, not what we do next week or in may or in july. francine: is it also a warning to the markets no

we will bring you our interview with christine lagarde. caughtleagues in davos up with the ecb president a-day after announcements after the strategy review and some important guidance on what markets should or should not focus on. we will hear from the self-described towel of scent -- owl of central banking. this is bloomberg. ♪ matt: welcome back to bloomberg markets. this is the european open. we are 45 minutes away from the start of cash in equities trading. solid green arrows in terms of european equity index futures right now. you see gains in u.s. futures as well. this friday could be a risk on day. bloomberg first word news with lower right in london. china's virus is not a global problem yet. the world health organization decided against declaring the new coronavirus outbreak a worldwide health emergency. it has jumped to 25. 10 chinese cities and restricting travel. the outbreak will not impact credit ratings. wildfires in australia are set to push the rising global co2 levels to a record. willrecent updates say it release 900 mi

christine lagarde joins us from davos this hour. doubling down on diversity.rom july, goldman sachs will not work on the company's ipo unless the board has at least one person who is not white, male, or straight. ♪ nejra: welcome to "bloomberg daybreak: europe." a number of markets closed in asia ahead of the lunar new year, including china and hong kong. not a huge amount from u.s. futures either, up just 0.1% after a bit of a muted session yesterday. the european session could see quite a big bounce back from yesterday's session. risk coming back on the table. that is reflected in the 10 year treasury yield as well. it has dropped about 10 basis points this week on the general risk off. citigroup saying we could get 1.50-- could get to a handle. euros-yens across -- is thecross -- euro-yen cross you want to look at. a lot of eyes going to be trained on the pmi data out of the u.k.. it comes from the eurozone as well. will that pmi data save the pound? brent firming up a little bit, heading for a third weekly drop on oil on the risk off sentiment around the c

vonnie: ecb president christine lagarde speaking with francine lagarde earlier.rg has launched bloomberg green, which uses data and in-depth reporting to illustrate the scale of the challenge facing the planet. find bloomberg green on the terminal, and here on bloomberg television and bloomberg radio. >> climate change is threatening the survival of our civilization. >> the conversations i've been having and davos are from many ceos saying we have been doing all of the work around esg already because it is important to our employees. >> all of the companies i interact within in the u.s. are very committed. they believe climate change is a real issue. they are committed to taking action. >> our industry has been very successful in reducing the carbon intensity of the product. >> we have a longer-term transition as we change the energy source and move towards a greener grade and a greater economy, but it is a transition. >> this whole conversation around climate, we will see an ambition to invest in low carbon climate resilient economy. ♪ ♪ guy: from london, i'm gu

vonnie: ecb president christine lagarde speaking with francine lacqua.manda: raising the diversity bar. how goldman sachs is taking the first step to end the all-male board. this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn in new york. amanda: i"m amanda lang in toronto. seen a risk off tone embrace the markets since this morning. lows ofw we are at our the session with the s&p 500 down 1.1%, the dow down 0.8%, the nasdaq down 1%, even with semiconductors performing well today. consistent at 1.68, with that risk off tone. one stock i want to point out, boeing, down 1.3%. the reason i'm mentioning it, we another piece a relatively bad news for the company, saying it's considering another cut to the 787 dreamliner production. at the same time they are fending off all of his dad news, it is also debuting today it's 777x line. the wingsthe wings have just bet into place, the first time that's happened for a jetline. the wing tips are so long, they are facing up on the runway. right before it takes off, they fold into place. we are wai

there is an increasing sense about the ecb counsel probably shared by christine lagarde herself.pill into asset prices. it therefore continues to generate -- guy: i am glad you went there because that is hoping where you would go. let's talk a about the spillover. to what extent is that responsible for the extraordinary rally we are sitting at the moment? people are scratching their heads trying to figure out. to what extent is liquidity driven and what happens if they get turned off? peter: it is a good question. lotfed has done an awful with regards to that and not necessarily acquainting it to the market over the course of the last couple of weeks. there will be some spillover there. not usingid we are monetary policy further. effectively amounts to the same thing. think it does have an effect. will it be turned off? probably at some point it will be undoubtedly. i don't necessarily think that means the market will stop and allect, i think it means movement until such times until the market figures out what is happening in regard to the economy and how they deal with political

us now is pooja what you expect from christine lagarde and the ecb?ing should not come with many deliverables. we should get an updated forecast. the risk for growth has subsided. happier withto be the outlook for the euro area. last time this took place in 2003. it took around six months. during this time, they will go to each and every area for the ecb. price stability is the mandate. do they want to stick to this mandate? do they want to stick to the 2% target for inflation? how will they do find medium-term? how will they look at the policies that the ecb has been implementing? they will be looking at the pros and cons of using qe. they are going through everything step-by-step which makes sense. reviewt time there was a was in 2000 three. and many central banks are struggling with the inflation target whether it is be a we or ecb. -- boe it is time to address these concerns in the coming months. lagardees christine want to get out of negative rates? issue going to be able to do that? atja: in terms of looking pricing right now with respect to mar

initially when christine lagarde started speaking, it's like fire -- it's like -- it spiked higher.hat a move then faded. single currency down by around half of 1%. let's talk more about what we got from frankfurt. monetary policy front and center is the european central bank announced its new policy since 2003. christine lagarde saying some of the risks so around -- risks around international trading might be easing. related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets remained tilted to the downside, but have become less pronounced as some of the uncertainty surrounding international trade is reheating. lagarde speaking at her second press conference. the brooch she wore was an owl. the question is, was she more hawkish today. , at the margin, paul, a little more hawkish. paul: just a fraction. the euros spiked higher. that was when she said there were signs of an underlying improvement or improvement in underlying inflation. she medially went on to say inflation is still too low and a highly accommodative policy is needed. not all of this

. >> christine lagarde is posed to post the first review in years and talking about the fine line between monetary and fiscal policy >> politicians were in charge of central banks or a world where it sometimes has to shut up even when difficult, i'd rather choose the latter. >> coming up shortly on "street signs," we'll be spoeaking to th ceo of volkswagen as he speaks of a radical shake up of the carmaker >> welcome to everyone on our continued coverage u.s. treasury secretary mnuchin has warned european countries against arbitrary taxes. he addressed italy and the uk's plans to forge ahead with the levee and said they will retaliate by taxing european companies. a warning came after saying they would strike a trade deal. >> already having some private conversations we don't need to have on tv >> please do please do. >> i've made some comments on this already we'll be having some private conversations. i'm sure the president and boris will be speaking on it as well as the president did with macron >> this is a principal issue for you and the american government. you just don't want forei

i sat down with christine lagarde in new york a month

we had a spectacular french from christine lagarde.e are not expecting all that much to happen in 2020 we are looking at strategic. for that policy to occur the modest improvements in the fiscal stance will likely push on and help growth recover from the some what lack luster numbers. this is not the package some of these companies are hoping for the packages rumored over the past months. if there is a structural reform, there the april tide remains weak we can see some amount of france as he continues to push through the agenda we are not expecting that much to happen over the year. >> talking at the moment i'm reading comments here talking about the idea that the bank of england should resist calls for policies not related to monetary policy in terms of the environment. i want to ask you, do you think that based on the recent data, would you say the transmission of the policy right now is having the affect that the ecb intended >> that's a very good question the question what did the ecb instead. we saw them start back up in septembe

on thursday, christine lagarde will ask colleagues to do a strategic review.centerpieces is a review of the central target they hit. the last time they did this was 2003. heading into this week, we've seen investors play it by flattening on the euroyen skew. s gettingsee i closer, still below zero, means is overall bearish. this is only bearish since 2017. it's clear investors are expecting movement. nejra: thank you also much. let's get the first word news with annabelle droulers in hong kong. annabelle: thanks, nejra. libya's oil industry caught in the crossfire of civil war. forces of the military commander have shut down an oil pipeline and block exports. will be thes output lowest since 2011. it gets underway in germany. in iraq, work has been halted in an oilfield, that's widespread on exports on opec's oil producers. there's also a risk of closure. local media reports its shut down border crossings across iran. around 600 people have died and thousands wounded. they are pro se sting government -- protesting government corruption. in china, at least thou

they come as christine lagarde fires -- we have all the details. >> following the meeting, christine poised to make her marks -- remarks with their biggest ever strategy review. inflation is stubbornly low and almost 90% of respondents to the bloomberg survey predict the ecb will alter its strategy to give equal weight to too low and too high inflation. at the core of the debate is price stability. the wording is too vague. an era -- their other policy tools could be reviewed. central bank relies on negative rates, easing, and long-term lowest two -- loans to banks. one item is climate change. the boldest move to be favoring so-called green bonds in qe or discouraging bonds for carbon intestate -- her officials doubt schedule of finishing any review before the end of the year, knowing how long the fed has taken, which is still happening. cracking elasticity of pricing for green bonds. week with the climate discussion has been top of the agenda. he highlighted key areas of focus in a bid to be more sustainable. he sees a robust economy in the u.s. and in europe. two key themes are pla

president christine lagarde who when she took over said that the e.c.b. had to become more green and consider that in its forecasts mark carney the outgoing back of england governor taking on a climate advocate role at the un that in the statement itself a high public official like this in such a visible role advocating for climate at the united nations what about if i could thank you so much and catch up with you later again. yes. gratian media calls it knows to defeat the most difficult test of the country's maturity sense and dependence croatia the youngest member of the european union has just assumed to the 6 month rotating presidency of the council has yet to adopt to the euro it will tell the country's tourism and business but not everyone sings croatia's economy is ready to join the common currency. for the croatians the treasured national currency is more than just a means of payment it's a symbol of their national independence croatian see the stable and reliable even though it's an e.u. member croatia has been reluctant to join the european com

we had christine lagarde just last week say we need to be doing more talking across that divide. this is part of what she said. risks caused by climate change on corporate, on the economy, have been largely underestimated. the climate risk in 30 years needs action now if we want to remedy those risks. that is difficult. we need to do it. that is christine lagarde on a somewhat different point, but a very important point, climate change. it could disrupt the financial markets. vice chair clarida: as chair powell indicated at a press conference on wednesday, we are participating in this network for the financial system. in the u.s. and other countries climate change policy is the domain of the legislature and executive branch. we do not do climate change policy, but the american people have a right to expect that as part of our oversight of the financial system, we want to make sure financial institutions are appropriately prepared and have business models that are robust to any climate change issues. david: one of the things being suggested is that in europe to stimulate growth's

let's go back to our big interview with the day, coming in the form of president christine lagarde withshe told bloomberg investor should not assume the current monetary policy is on hold because of the strategic review. she talked with francine lacqua a day after she announced that review of the ecb's inflation goal and policy tools. the last time we had a strategic review was in 2003. the growth was much higher in those days, inflation was higher , the prospect of the various demographics around the world were different. the world has massively changed. we do not use social media as much as we do. we hardly had a cell phone. aancine: can you give us sense of the future timetable for the reviews? pres. lagarde: that is to be debated. the timetable we are setting for ourselves is ambitious and is to try to conclude before the end of this year. december 2020 hopefully we will have reached that platform of consensus on the various topics we have. we have to repeat the exercise every five years, every eight years, every 16 years. i have my views as well. we will debate that with the group

francine: will we hear on the ecb a less dovish christine lagarde because of the encouraging data?ident lagarde will be doing is avoiding providing any answers to questions, and she will have a very good excuse. we saw that in her first meeting, whenever she was asked, she said it would be part of the strategy review and officially announced in the next meeting. the parameters will be broad and the ecb will enter a period of introspection, not doing much. we expect the ecb to be very quiet. one other point, if you look at most of the speeches president lagarde has made since she became president, very little about monetary policy. she made a speech yesterday about europe and frankfurt, nothing about monetary policy, and i think that will continue. thinkconomists introspect is always -- introspecting is always dangerous. on thataravelos research note. now with our business flash. viviana: shares of gap are rising, saying it will no longer seek to establish old navy as a standalone. in recent quarters, old navy's performance has deteriorated. demandingtitors are mark zuckerberg give

on the ecb, is the pressure building on christine lagarde to defend where monetary policy is right nowfend the concept of negative interest rates? ken: i think she got a fair amount of support as super mario left the picture and made it clear that the policy that the ecb has followed has been the right one. he also brought up the message that we can only do so much lifting. what needs to happen next is the fiscal side of things. we have not seen that. we have to get germany to get off the dime on that and make moves in the right direction. jonathan: do you think that's going to happen anytime soon? ken: i don't think so. lisa: things have to get significantly worse before we see a real move on the fiscal side. jonathan: seems to be the take. greg: i have strong connections in germany, and the consensus is it is not going to happen. jonathan: some people on this side of the atlantic think it is going to happen. greg: not going to happen. jonathan: that seems to be the consensus at the moment. let's get to the rapidfire around. three quick questions, three quick answers. first question,

we are expecting christine lagarde to take questions on it.r promise the market they will not go into deeper negative territory. there is a strong idea that negative rates -- germany,e a saver in italy, or france and you've suddenly realize you don't have -- [indiscernible] this is a social cohesion problem. the man fromion by barclays is simple, does it translate over into bond price up and yield prices down and equity prices to the sky? that is what we have. francine: i am looking forward to hearing from christine lagarde and the ecb press conference with the rate decision, the first one of 2020. let's move to the u.k.. we have a spokesperson of boris johnson, one of the key world leaders that did not show up here in davos. talking about a number of things, they were talking about what they could do in trying to achieve a trade deal with the eu. conversations with that are ongoing. we spoke to ursula yesterday. tom: she has been very visible. francine: she was here for three .ays here, am a foreigner considering what we have seen before from

on my left, my former boss, christine lagarde, now the president of ecb. next to her we have steven mnuchin, treasury secretary of the united states. then we have mr. scholz, the minister of finance of germany. last but not least, kristalina georgieva, i hope i pronounced the name well, president of the international monetary fund. an excellent panel. i would like to start with you. you just issued the updated global economic outlook. where do you see world economics in 2020 and beyond? you have only three minutes. i understand it takes 30 or 40 minutes. [laughter] >> it is can easily be summed up in three minutes. we are in a better place in january of 2020 than we were in october of 2019 during our annual meetings. we are projecting growth this year at 3.3%, next year 3.4%. this is clearly an improvement vis-a-vis last year's low of 2.9%. what is driving this are three things. one, trade relations are proceeding. the signing of the u.s.-china trade deal creates more confidence. and we know that uncertainty was a drag on investments to central . two, cent

ism numbers, president trump delivering the state of the union address, and we hear from christine lagardethursday. friday, the u.s. payrolls report. their final thoughts, kathy jones, subadra rajappa, rob waldner. that the friday. become a nonevent considering everything around us? almost everything has become a nonevent tracking the coronavirus. it will be an important data point. manufacturing will be important next week, given we had a week chicago pmi. of in the correlation of chicago pmi and ism manufacturing is also not great. one more data point on the week manufacturing sector. in jobthat any slowdown growth, the markets will not take that well. kathy: wages will be the big one. we have seen a little leveling off in wage growth, but if that continues or turns down, that will be a significant number. rob: very little uncertainty around the labor market. jobs number comes in pretty close, not much of an issue. jonathan: let's get to the rapidfire round. three quick questions, answers around the desk. beginning with the coronavirus. the economic impact, transitory or long-lasting? su

guy: for you expecting from christine lagarde? policy review that is underway. that sounds great, but do we get anything that is market moving? adam: not at this stage. we know that review formally starts, but we are likely to get very little in the way of publicly available information on where the debate is going until much later in the year. the ecb, shorter-term, has also laid out the stance of policy in the near term, so i think of the four central-bank meetings we get this week, the ecb is likely to be one of the less interesting. guy: ok. i understand why you would say that, adam. as you say, laid out the short-term. medium-term is going to be discussed. , doese policy situation the market fully understand that? is there pressure to explain a little bit more? the data is still relatively bad out of the eurozone. is there going to be more in the medium near-term? adam: i would certainly be skewed in that direction. the data are just less negative than they have been recently, certainly not turning positive. the pressure for

she has got that sort of bit like christine lagarde, formally running the imf, she has that gravitasn the issue, johnson, get brexit done mantra was very clever during the general election and clearly surveyed a lot of people but it only means you get the formal departure done, nothing of substance and certainly nothing that affects real people, the hundreds of thousands here and in europe. nothing has been settled nor is it close to be settle and every day goes by in increases people '5 anxiety. this is specifically as the telegraph headline suggests about not watering down right for that citizens living here? this has been something we have been talking about for three years both under theresa may and borisjohnson. lots of warm words about reciprocal guarantees for what eu citizens living here and our citizens living in the eu and yet we still don't have an agreement on that. the clock is ticking again so everyone will say a breath of relief when we leave on the 31st of january when we leave finally but we are not, it will be the very beginning of our discussions on our relationshi

i asked bank ceos all the time, can you give christine lagarde advice on how to go about getting outways tell me they don't know how it could possibly happen even though they want to get back to positive territory. what would it do to the economy if the ecb brought us back to positive rates within the year? janet: i think it would come as a real shock to the market. when we look at the real economy , growth is still quite low and potential growth is still quite low and inflation is way too low. for the ecb to be raising rates in the next year, i think it is more likely for markets to view it as a hollis emr and you could get a financial market reaction. the ecb is in a world where monetary policy a loan cannot return inflation to target. only monetary and fiscal policy together have a hope of returning inflation to the 2% level and that is the only time we can hope to get an increase in interest rates coming through from the ecb. anna: what you expect to see in europe then? still goingnk it is to be quite modest. in the case of france, that is in line with what we saw in 2019. and as

christine lagarde has to do that to provide the safety blanket for the euro zone. all right, simon, you are going to stay with us. our guest cohost for the hour. is beginning already. the countdown to the 2020 election. if president trump wins again, he will be the first impeached president to win reelection. we will preview the key dates to andh this election year talk about how markets could react. that is next. this is bloomberg. ♪ whether you're out here on lte or here on a wifi hotspot, xfinity mobile has more coverage to keep you connected to what matters most. moooo. that's because it's the only wireless network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. save up to $400 a year when you switch. plus, unwrap $250 off our best phones. click, call or visit a store today. matt: the pboc plans the rrr as chinese stock falls near two year highs. this comes amid reports beijing has suspended plans for the shanghai-london stock connect. hong kong starts the new year just as it ended the last one, with protest

i think the best course of action for the ecb would be for christine lagarde ripped the bandage off.tes are penalizing the banking sector. while it may be fun to eat up on bankers after the global financial crisis -- we certainly don't do that here. but a healthy banking sector is necessary negative interest rates do not foster a healthy banking environment. thatne: one of the things bernanke he kind of hinted at was that we should not be surprised if we do get to subzero or near zero. there is a sort of sinkers asian effect. if everyone is at or near zero, than the u.s. can't stay two points above them for long. >> of the rest of the pack goes into negative territory, i could not advise u.s. policymakers to follow suit. this is one of the reasons jay powell -- he did not have a phd in economics. but he has a strong understanding and private sector finance. that is a strong edge for him. that is why there have been more rational minds to say that negative interest rates will clobber private sector finance. >> forget the bankers. to what extent are we seeing negative interest rates hu

you would put forward as a candidate to lead the imf, the next manager director after christine lagardeat will happen in the future? first of all, i think she will be a great... that is not what i am asking. britain has never been able to land at the imfjob since its creation even though british economist came up with the idea. i do not know whether it was brexit induced... your main job is editing the london evening standard. we talked about theresa may earlier, have you used your platform to go after people. some of the things about theresa may have been absolutely brutal. as a former politician do you ever wonder about getting the tone right? what i try to do with the newspaper speak with the more than a million readers we have in the capital and the paper has a has been a liberal conservative paper, conservative of the conservative party but prior engagement in europe... the headlines, do you regret that?|j headlines, do you regret that?” would say... look, people will take a judgement. i would say the things isaid a judgement. i would say the things i said that were inevitable once

were put forward as a candidate to lead the imf, to become the next managing director, after christine lagardeich was kristalina georgieva, the bulgarian economist, rather than go with you. is that symptomatic of what is going to happen in the future? britain, frankly, will have a much less important seat at the multi—lateral international table. firstly, i think kristalina georgieva is going to be a good... that is not the question i am asking you... look, i don‘t know, is the short answer to your question because britain has never been able to land the imfjob since its creation, even though a british economist came up with the idea. i do not know whether it was brexit induced or whatever. .. your mainjob is editing the london evening standard. we talked about theresa may earlier, have you in a sense, used your platform at the evening standard, to go after some of your political enemies? because some of your headlines about theresa may, and your editorials, have been absolutely brutal. and as a former politician, do you ever wonder about getting the tone right? what i certainly try and do wit

snooze was already expected by the europeans and to the buying to the yes we have a new head christine lagarde and she is still very much downplaying the risk associated with the european economy but the question as you pointed out is that if these negative rates are going to stay and the more importantly how long are they going to stay that can answer can only be answered once she has. a review which is never been done in nearly 7 years because i think for the last time the e.c.b. really looked at the definition for a price stability that was back in 2003 from from that particular moment and until now we still do not have a clarity of what price stability really means we should really makes a composition of inflation. you know we talked a little earlier with another guest about while way but i want to kind of broach the subject with you as well the u.s. to continue applying this pressure on britain over its use of war way to build up the country's 5 g. infrastructure the u.s. has indicated that allowing while way to have a role in the 5 g. buildout could risk the u.k.'s involvement in intelli

christine lagarde calling for vigilance, that came out of the latest minutes for the ecb.if you look at a month by month energy,f you backout .2%. let me scroll down to the important part. if you backout autos, up .7%. up .5%.s and gas, still input into gdp coming in strong, up .5%. that looks pretty decent. import prices were stronger and export prices were a touch weaker. that is an interesting read. it is positive. romaine: on the whole this is positive, specifically the ex autos and gas numbers. i should point out they did revise downward some of the numbers from the previous month. basis, it ison kind of a washout, at least on the headline level. some folks are expecting a drop. you had a lot of the earnings reports come out as well as preliminary warnings from retailers including target. they are therewith with concerns the holiday sales were not going to come in a strong as some folks thought they were. this should give them something to hang their hats on. alix: that control group i mentioned decreased .3% versus a .6% rate in the three months before that. there is

whether it will be enough for christine lagarde, hard to tell.ld be enough for the ecb not to act again. matt: thanks for coming to join us. the chief economist for ing germany, happy to have you are or in the berlin studio. we will talk about the phase one china deal, the big beautiful monster. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: european open." 30 minutes from the start of cash equity trading. we are looking at futures down across the board. we had drops in asian equity indexes. there was a mixed close in the u.s., but now we see red arrows for u.s. futures as well. what you should be looking out for today, you should get that initial trade deal signing with the u.s. and china. in russia we can expect vladimir unions state of the address in 9:00 a.m. u.k. time. we should get a sense of how the european economy is doing with german gdp coming up in about half an hour. anna: and hour and a half. matt: exactly. then after that, we will get u.k. inflation. anna: how will that change thinking around the bank of england mee

christine lagarde without an front talking about this.ereto a they want to start to look at these risks. another thing i would flag is you've seen from the investor community, particularly public-sector pension funds, very large institutional investors starting to put a lot of pressure on, on the, you know, the managers they outsourced to. also to companies they investi in that is something they are aware of and caring about. as a result, that is where the becauseits the road, they are in charge of the capital and the investments. >> when it comes to governments, how much more of an active role should they take in economies given the big challenges facing us in the next decade, including climate change and inequality? heidi: all hands on deck for both of those. importance,flag the obviously you have government in ty as a decisive role hose -- both inequality and the types of economic policies that could alleviate inequality as well as the regulatory and the investment, particularly the support for investment in new green finance. at the s

overall impact of monetary policy, incredible easy monetary policy we have, what do you think of christine lagarde aching a clear the ecb is going to reassess the whole strategy? this is going to be a month-long process. what does it mean for how people think about inflation in the eurozone? katie: when i was talking to people today about the comments, they kind of fell flat for the people i talked to. they are hoping for a lot more details. combined with her saying she was not as optimistic as she hoped. that is why you saw the euros fall today. it is really surprising because she did make those inflation comments. there was some moderate increase in inflation. joe: talk to us about this seeming one wayness we are seeing in the bond market. we are seeing rates go down significantly, especially if the virus were to worsen or if the economy were to weaken. it is hard to see what would cause rates to go up given the expectation it would take a lot for the fed to do anything. alicia: the surprise would be that growth is better than expected. when you think about it going into the second and third qua

you can just imagine christine lagarde hosting a party saying, we did it.cest miserable thing 2012 in the u.s.. what does that do to markets when you see real yield in the u.s. at -66? hugh: one of the main lessons for me from 2019 is that yields will still find room to fall in a downside scenario. looking across the fixed income market, large parts remain relatively unattractive. if the macro weakens further or we get new geopolitical shocks, yields will still find room to fall. even at current levels, i think government bonds have an important place in portfolios today. nejra: coming up, as fears over the deadly coronavirus continue, one analyst says to be careful pricing and risk. manus: it is not all about the fed. thursday marks one of the bank of england's trickiest rate decisions in years. this is bloomberg. ♪ nejra: this is "daybreak: europe ." i am nejra cehic in london. manus: i am manus cranny in dubai. amid shockingays backdrop the next few weeks, you have pricing. dani burger has the details. >> i have been talking to him for years now and he i

friday ecb president christine lagarde spoke with bloomberg about policy and politics. ♪ >> we need toiveness of what we have done, learn from other countries around the world in the process. the fed is undergoing the same exercise. and we need to take time to reach out to the parliament, to academics, to people interested in the issues, to hear the voices, to understand what their views are. we will listen to markets as well, but they are one of the voices that we will listen to. >> economists leave monetary policy at ecb will be on autopilot for the next two years. is that a mistake? : no.tina that is ridiculous. whichis forward guidance is strong, setting a very clear timetable. but let's look at the facts. let's look at how the economy evolves. that is what we do. we need to be fact-driven, we need to be clear in our communication, and i am saying today, don't assume it will be on autopilot. >> yesterday you talked extensively about negative rates. and the side effects of negative rates mean you need to scale it back. christine: we need to be attentive to that. financial stability

romaine: ecb president christine lagarde will speak on thursday.is is bloomberg. ♪ when it comes to using data, everyone is different. which is why xfinity mobile is a different kind of wireless network that lets you design your own data. choose unlimited, shared data, or mix lines of each and switch any line, anytime. giving you more choice and control compared to top wireless carriers. save up to $400 a year when you switch. plus, save even more with $150 off galaxy a70. click, call or visit a store today. ♪ taylor: i am taylor riggs in san francisco, denver emily chang, and this is "bloomberg technology." the senate is getting set on whether or not to allow new witnesses in the impeachment trial of president trump, but it looks like mcconnell and the gop have the votes they need. plus, frexit is here. supporters are ready to celebrate after years of

on thursday, the latest ecb rate decision and president christine lagarde will finally unveil the scopethe central bank strategic review. the e.u.'s new trade chief has accused president trump of electioneering, warning about the damage from protectionism. phil hogan urged u.s. government to work with the e.u. his remarks came during the three-day washington visit aimed at preventing an escalation in trade tension. hogan added that commercial relations between the e.u. and the u.s. affair are mutually beneficial. must callout the narrative that the united states has a trade deficit, unfair trading relationship with the european union. isreality, the relationship more balanced and highly mutually beneficial and this cannot be stated enough. the facts are clear. nejra: joining us from brussels is bloomberg's. -- bloomberg's maria tadeo. how do those things stack up? maria: it's a good question. we did speak to him. because as young point out, the whole purpose of this strip was to de-escalate tensions. phil hogan, the words coming out of his mouth now are really important, and he is a tra

i just mentioned about christine lagarde, who says monetary policy has run its course.many and other countries to spend more. emerging markets are already expanding their fiscal, you know, policies. have -- when you you have expanding fiscal policy, when you have germans spending more money, you get better quality growth. manus: jump in. nejra: better quality growth. the growth largely priced in shofar in equity markets. so what does that mean in terms of the type of returns we might see in 2020? i know you are saying stay invested, but should equity investors expect your returns than 2019? deepak: two parts to it. yes, i think the quality of growth is much better. you have fiscal expansion. that growth is fueled by real spending. goodonsumer is already in shape. and therefore, i think the next leg of the equity market comes from there. sorry, what was the second point you mentioned? i was simply asking about returns for 2020. deepak: yes. so when you look at 2020 returns, i mean, we do not look at calendar year returns. i am looking at returns from october 1 of 2018, b

down with it in a flight to the safety trade i do think it has to do with what is going on with christine lagarde. she is pushing for interest rates to move higher and move away from a negative interest rate in europe because it was killing their banks. as those interest rates move up, those rates become less competitive. they can move up as well people won't need to come and buy u.s. bonds as much as they had. when people talk about, geese, rates will go higher it will be fine because the economy is better they can go higher for that season >> interest rates a certain key there. thank you very much. >> thank you >>> when we come back, breaking news out of the middle east. dozens of people reportedly killed in iran during a stampede during the funeral for the commander killed in u.s. drone strikes last week. plus what tesla is doing right having its stock hitting record highs. we are live with that answer and new details emerging about carlos ghosn's escape from japan. a very busy hour ahead when "worldwide exchange" returns after this i can. the two words whispered at the start of every race. ev

we have just heard from christine lagarde who has put out a study on what we are doing. this is a long anticipated strategic review, the first since 2003. people were hoping for details on exactly what the ecb would study at they did not get that. a broad brush from madame lagarde on what will be studied. policy instruments on one hand and other considerations like financial stability, potentially controversial, on the other. we understand that was deliberate. people have told us the policymakers inside the governing council did not want to get into specifics for fear of steering the conversation toward potential outcomes. they want to broad, open-minded review, a thorough analysis, before they start getting down to the nitty-gritty. david: i have no doubt this is a worthwhile thing. is there a little bit of politics involved? it does involve -- it does allow madame lagarde time to take over her job. she does not have to make any decisions. she can say we are studying it, wait until the end of the year. paul: she made clear the policy decisions taken this year and the re

the new ecb president christine lagarde says she is targeting next week during dow post to announce aduring davos to announce a strategic review. what will be your biggest hope from that? think the lagarde approach seems to be appropriate. indeed we have gone through a long time in which we have seen central bankers being confronted with a new environment, in particular the fact that inflation seems to have disappeared more or less. the question has been raised by a number of economists and market participants about the best questions. the fact that after the announcement made last september by the ecb, there had been so strong negative remarks about the conduct of monetary policy by the ecb, justified the fact that the ecb reset the basis of its monetary policy. consensus around the monetary policy and therefore the basis will be as clear as possible. i think at this juncture in honesty to is no modify the course of monetary policy, it is a good way to take advantage of the timing to try to think through these problems and refine the goals of monetary policy and the instruments of mo

. >> the ecb, releasing accounts of its meeting with christine lagarde at the helm.ial signs of -- are we seeing initial signs of stabilization through the slowdown? are we seeing any subtle signs of pushback from the governing council about where monetary policy setting is now? >> what stood out was this point made on vigilance. it seems several members are arguing you need to monitor the potential negative side effects that could come from this current policy stance, even though they have agreed to keep it what it is at the moment. going forward, there might be more reluctance to take interest rates lower than where they currently are. in a way, what it also shows is the ecb will be taking its soul-searching mission in the context of its proposed strategy review very seriously. >> the trump administration is planning to change how economic data is released in a move that could affect access to figures such as the monthly jobs report. >> the trump administration is looking at changes to the way it releases economic data out of the labor department, including taking