nejra: william porter of credit suisse stays with us. how will the next 12 months of brexit impact the u.k.'s supermarket players? the morning call is next. and the chicago fed president joins our u.s. colleagues at 4:00 p.m. hundred time -- blended time -- london time tomorrow. this is bloomberg. ♪ nejra: how will the next 12 months in the brexit process impact the supermarket players? annmarie hordern has all the details. annmarie: jeffrey's certainly bullish on the supermarket. they say that it will be an upbeat trading update with the recent media coverage suggesting the asia process could materialize quickly. they say the stars look well aligned for a strong start to 2020 for tesco. they also have a hold for sainsbury. mostly pretty bullish for the supermarket space. nejra: annmarie hordern with the details on the morning call. porter. back to william are you bullish on u.k. supermarkets? william: to be slightly while special, at least now the shelves will not be empty. it is a sector that seems to weather storms pretty well. perhap

she criticized his association to the bank credit suisse the financial institutions but investing big time in the search for the new fossil fuel deposits is the problem with with more on how he has become a crucial part of modern reality than he's out he's in the picture and. do you know gratitude berg by her role as the world's number one a green activist or the number one shaming master well she's really been up to trying to perfect her reputation and both and it's paying off her influences skyrocketing womyn of the year in sweden person of the year in the time magazine i mean how many teens do you know that told of presidents and prime ministers like that we are in the beginning of a mass extinction and what you can talk about isn't money it came to tales of economic growth how did you. an example from just a couple of days ago a single retreat by gretta revived the scandal from 20 and made the man they called the greatest tennis player of all times find excuses for being partners with a bank here are the shaming lines she retreated since 2016 credit suisse has provided 57000000000

excuses for being partners with a bank here are the shaming lines she read tweet that since 2016 credit suisse has provided 57000000000 to companies looking for new fossil fuel deposits something that is utterly incompatible with climate action roger federer do you endorse this and so roger federer's sponsorship deal with the swiss lender was back in the news and the sports all round mr nice guy had to reassure the public he cares for the environment over that mighty grow i'll show you more of how her shaming powers stretch far beyond the famous un walls but it's just that for now not everyone's so sure that anyone who deals with banks which give loans to non green industries should be publicly shamed public shaming and taking the right people to have stare an opinion the last thing that. stops is being human this crisis but it doesn't get it so you want to see it the way he thinks he's allowed to it's a free will say meaning it's a visit into law. well together yes but it can be a discussion that's hard to say well maybe we should celebrities should be a bit more careful in picking this ponce

lauding him for the remarkable turnaround that we have seen a credit suisse.e joined almost 28 -- four years ago. topre seeing that shareholders are throwing their weight behind the ceo at this point, which is a significant advantage. guy: thank you. that's going to be some fascinating reporting, with more to follow. coming up, it's friday, the u.k. is set to exit the european union at 11:00 tonight london time. we will look at both sides of the story about what lies ahead for the british economy and the european union. that's next, this is bloomberg. ♪ 11:00 p.m. london time tonight, the u.k. will be leaving the european union. there will be a transition mean that in will the short term there is little effect. but in the long term there will be in effect. our guests are joining us from dublin. be celebrations in the united kingdom today, will you be joining them? even if it is to celebrate the fact that this period is going to end? >> this is a historic day politically, but also for british business. i think what you will hear from british business across the

. >> coca-cola structural changes are paying off, at least that is the word from credit suisse, which raised the stock to outperform in the price target to $64 a share. it sent coca-cola shares soaring today. its-cola seeing growth in historically slow or no growth areas, developed economies and darkling beverages. credit suisse believes margin expansion will prepar propel eas and cash flow. , $481 aooking at tesla share. i want to look at their market old competitors, gm and ford. take a look at this chart. a 175 percent run up since lows over the summer. of $86.5 a market cap billion, almost as much as ford and gm combined. they have an it combined market value of $86.7 million. -- billion dollars. gm post-bankruptcy, a hit back in october of 2017. joe: thank you taylor in the markets team. our cross at reporter is still with us -- process at reporter is to with the center cheap investment strategist. us and our chief investment strategist. how important is the data? >> it is somewhat important. it doesn't have to be superstrong. i don't think the economy will grow at a fast pace an

burkert van holt credit suisse joining us, stay with us.na plans tol, send a delegation to the u.s. for phase one, this is bloomberg. ♪ francine: this is bloomberg surveillance. i'm francine lacqua. chinese trade delegation plans to travel to washington on january 13 to sign phase one of the trade deal. bloomberg understands the plan is -- they are sending the prime negotiator. jane andh us is burkhard. we were just talking about the foreign policy of the u.s. in the middle east where it really took the market by surprise. deal, does the good feeling of the market gets canceled out by what's happening in the middle east? >> it's possible. hopefully that won't happen. a lot of the markets are rallying over the last couple of months. so the question is do the markets carry on with that about phase one or as we fear, do fears come back again. issues to be sorted out for phase one. if you listen to some of the rhetoric from one of the u.s. security advisors, they are quite hawkish when it comes to china on both sides of the political divide in

manus: you have credit suisse exiting, emirates nbd selling. symbolism.ropped more than 60% from the peak. there are clear issues. muddy waters puts a lot of pressure on the stock in the report. manus: what is the market most worried about from the report? >> there's plenty of allegations in that report. many of them are known to the markets or irrelevant. all of these things are not good governance, etc., however, the market was aware of them. the real issue is we want to make sure that the cash balances are correct. the level percentage rejections that we are talking about are also correct, because that impacts the profitability of the firm, which is central for investors in nmc> when you -- nmc. when you look at the reply of nmc, we did not get the full answer that is satisfactory to investors. the rest is less important my would say -- important, i would say. manus: they brought in a former u.s. federal judge as director. is the market convinced this is the right person to do this job? may be don't know enough about the -- maybe i don't know enough ab

well protestors have hit the snow here carrying blazing planets saying that the likes of credit suissejust funding way too much as far as fossil fuels go the black rock is still waist deep in fossil fuels and that siemens is really not helping the planet all in supporting a stray the biggest coal mine to date one of the biggest in the world a project that will see huge amounts of c o 2 polluting the planet. or i've been physical in davos will come back to him in just a moment. now corruption is a daily part of life in many countries around the world but doesn't have to be that's according to transparency international which has released its new annual corruption perceptions index reports it hopes that by doing so it can draw more attention to the issue. people around the world are showing their rage at corrupt officials and political systems they're protesting on the streets in haiti in lebanon in israel and romania corruption is a problem worldwide say experts no nation is completely free of it the berlin based ngo transparency international ranks countries in its corruption perceptio

any credit suisse worker with fever or flulike symptoms must also work from home.r latest bloomberg business flash. the coming up next in united states, "balance of power," with david westin. more of the coverage we are bringing you of the market impacts of china's coronavirus. turning out to be quite the negative date when it comes to risk assets. vonnie: major indices lower. the nasdaq one -- the nasdaq down 1.7%. the vix is almost at 18. the dollar index is at 98 and the 10-year gilts at 1.60. obit -- the 10 year yield at 1.60. "balance of power" is next. this is bloomberg. ♪ david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide, i am david westin. welcome to "balance of power," where the world of politics meets the world of business. on the brief today, drew armstrong on the latest on the coronavirus. kevin cirilli from the white house on president trump's meeting with israeli leaders, and the setbacks in rome. drew, we are focused on china and the coronavirus. what is the latest. drew: we just heard from the cdc some good

tom: shahab jalinoos with credit suisse with us.an per u.s. dollar. us, 35rnings are upon minutes until we kick off the bank earnings season. a conversation with a chief financial officer of wells fargo, john shrewsberry has his hands full with the rebuilding of that franchise and making it domestically distinctive. this is bloomberg. ♪ ♪ day,what an interesting bloomberg "surveillance" in new york and london. news andt crushed by we are focused on the market. i thought your 4:00 a.m. our was really -- hour was really strong with marcus after worship -- marcus ashworth and alberto us --shahab jalinoos with alberto gallo. us.ab jalinoos with what signals do you see from your world of e.m. currency that gives you confidence or reticence to be in e.m.? shahab: it is a mixed picture. the asian space is benefiting from the lift the renminbi has had if you look elsewhere -- had. if you look elsewhere, there are problems linked to domestic issues, for example reform in as -- africa. as far as equities, the e.m. space looks good. it is not

sonali: credit suisse might want to make a push into the u.s. in smaller ways.le they are a huge of management firm, ubs has the biggest number of advisors in the world the u.s.. morgan stanley has a behemoth unit. watching them compete with the u.s. banks and their rival ubs will be an uptown battle, but when they have laid the groundwork to continue on. amanda: full circle, when we think about this bonus season and how it shapes up, is it still good to be a banker on wall street these days? we have had a mixed bag basically depending on where you work. sonali: here is the thing. even though bonuses will be flat to lower everywhere, the fittest will survive and the best bankers will get paid to retain talent. that bonusescation across wall street may be shrinking, and people may be having to get used to less and tougher times maybe ahead. the consumer has driven performance at a lot of the biggest banks, and we don't know how long that can continue for. banks can't keep hitting records here. amanda: we will see if they can. thank you so much for that. coming up

credit suisse is telling staff to work from home if they visited china lately.ying to prevent the spread of the deadly virus. it told the staff and hong kong not to come into the office for 14 days if they have been to mainland china lately. any credit suisse worker with fever or flulike symptoms should also work from home. alix: time for bottom line. we will look at three companies worth watching. wynnng with the story, resorts got a downgrade at bank of america because of the risks of the virus in china, basically saying the situation could stabilize, but near-term headline risk is significant and there is limited valuation support. even if it is a short-term thing, some of the stocks will have longer-term repercussions. michael: i will hang with a story we've been talking about. the fed. mortgage rates were down and who benefits? the homebuilders. there are not enough homes being built. for companies like my stock of the day -- stock up 53% over last year. you see what happened to d.r. horton. there shares are going up as we see the number of homes being buil

one big call came earlier this week from credit suisse's chief equity strategist. b has a street high for the s&p 500 of 3600. >> when we started to look forward into what 2020 earnings would be, we really see something which is much stronger than we would have thought a little bit earlier. for more on markets and what they are reacting to, where hudson'shead, tower ben laidler is with us now. i want to start with where we stand on a fundamental basis, and we are definitely in some emotion. it seems very illogical to subscribe anything real about the risk to businesses. thatuch of it is it earnings are bearing out, and people are looking for reasons to sell. unfortunate,ng is chinese new year, everyone is traveling. we are just beginning to have this firming up in china data, and now we have this. we had a 30% rally in the s&p. we had a melt up in the last quarter. people are pretty nervous, looking for signs of growth to legitimize the rally we have seen. clearly, this puts uncertainty into that. i do think the u.s. remains the global safe haven. you have more vis

still with me, mark connors of credit suisse.stion to encapsulate amazon and exxon, how do you play upside and downside with earnings? it -- how do you play based on our book, how do you play it, turnover has dropped pretty dramatically. the area picked up when you mentioned the oil company. when we see that turnover and our book by clients, a lot of it is kind of like jumping from a leap pad to the leap pad without jumping in the pond. they don't know where to go because of what is happening with crude. there is disruption in energy, it is under assault, no doubt. that is where people are having problems. on the tech side, people don't have to play it because they are positioned long, and they will trade, and they are accruing and growing that position. the concentration is about 5-1 in that sector versus any other sector and it is getting more to fewer. alix: it seems like part of the rhetoric is that if -- at some point, everybody who needs to buy is in it, but how many hedge fund guys or even pms are not actually in it becaus

i will say that we posed this chart to jonathan golub of credit suisse about an hour ago and he said, would not be too quick to count out these large tech companies. , but theaw the rally earnings picture for small-cap is likely to be a bit rockier. at the same time, many are saying that it is probably time for a leadership shift. amazon, microsoft, facebook, apple, and google, those companies accounted for 29% of returns. outn from blackstone puts an annual list of surprises every year. this year, one of those was that the fangs will likely lose their leadership luster. 2020,st early on in especially today, we continue to see large cap tech outperforming. taylor: as we get away from some of the bigger tech names, we go into the smaller companies. salesforce, a topic by rbc, closing at a record high. as aoes rbc see salesforce top opportunity? sarah: it seems like the stars are aligning. and i mean analyst recommendations. what they did was they pointed to their revenue forecast for salesforce throughout 2020, through 2024. it is not just rbc. had also seen suntrust as well, one of th

deutsche bank credit suisse and others are consolidating their control over water and wealthy tycoons such as the late t. boone pickens and george h.w. bush and his family were among those buying thousands of acres of land with aquifers lakes water rights water utilities and shares in water engineering and technology companies all over the world how close are we to nothing coming out of a faucet let's ask the author of chasing water a guide to moving from scarcity to sustainability brian richter is president of sustainable waters a global education service sharing information about water scarcity water shortages and information and tools for solving water problems brian welcome thank you very much happy to be with you a citi group economist predicts that the water market will eclipse the oil market there are water hedge funds now and u.b.s. investment research calls water scarcity the defining crisis of the 21st century where here in the us a is water already most scarce and why basically any place that ends up using most or all of the available water is going to be on the brink of di

francine: we are joined by the credit suisse chief executive, tidjane thiam. i will start with u.s.gan, should european banks compete with the u.s.? djane: we have a chance with a clear strategy. we have chosen to be a wealth manager with strong banking abilities. in that space the results have been good and we are in a leading positions in a number of markets. francine: can you compete if you have different regulations and negative rates? it does not make it easier, but if we are focused and know what we are doing, we have a chance. if you look at what we have done we are in a leading position and doing very well. we are not an u.s. wealth management, but that is a strategic choice from many years ago. in america we do investment banking, and we are restructuring our markets. we are top five in equities and doing well. francine: what your clients tell you what they want in 2020? is there a lot of pressure giving them outstanding returns? tidjane: it is early days the people are positive about 2020. are u.s.-china trade agreement is good for markets. esg israel. -- esg is real. are

. >> for more, i'm joined by the senior equity strategist at credit suisse and director of ass assett after a selloff yesterday, the worst day we've seen for the dow and s&p since october and worse day for the nasdaq since august. many say it is just an excuse to sell off we have gotten perhaps a little frothy why does the market sell off on these things if we know they are short term i think what people are trying to understand is what is trans-torry and what is permanent. if a company is going to buy a piece of equipment, if they can't buy it today, they'll buy it tomorrow to meet that demand. there are things that are going to be lost like around the chinese holidays, if people aren't traveling, those are more porm nent impacts. investors are trying to understand what is permanent >> as a follow-up to that, things lost like travel, should investors remain cautious there? >> the question is does it ultimately damage those, people need to take time to understand the impact or is it going to be a prolonged period of time it gives investors time to understand the gravity and how the s

we're planning to on the vehicle fleet financed by credit suisse and others and make sure we owned the means in six or seven years from now, we keep putting these vehicles back out to the market, so we have recurring revenue, but we also have hardware where we can keep applying the latest software or even other hardware because we own the fleet. taylor: you are also talking that comes from all recycled materials. is it really all recycled materials? everything,, not but all the carpet is made from recycled materials from the ocean, like plastic bottles, fishing nets. eco-suede that is made from recycled t-shirts. use thatfacturing, we in the back and the trunk. we are trying to make this vehicle as sustainable as possible. this is where we need to move in the world. we have to bring it into where we want to go in the future. we cannot keep on producing vehicles the way we do it today if we want to keep private mobility. it's great that we have car sharing and ridesharing and all that, but at the end of the day, people like their own cars, which means we have to make them more sustainab

downturns.dity oil is known for many mac -- manufacturing the world's first .ommercial disposable phone credit suisseed --king on the upcoming u.s. according to sources. other investment firms including citigroup and bank of .merica it follows going concerns about a potential sector downturn. has offered alone after u.k. probe into the startups funding round brought on a cash crunch, according to sources. it could be running low on london-based food delivery service is said to have sufficient funds to continue operating. a spokesman declined to comment. those are the top tech stories we are watching. shery: an achievement in the tech sector for huawei in china. it broke into the top 10 recipients of u.s. patents last year. it's the latest sign that chinese companies are aggressive in pursuing the u.s. lead in global technology. and trying to overtake germany for the first time as the fourth biggest recipient of u.s. patents. , great to by anand have you with us. it seems a lot of those patents were related to 5g and we have this trade dispute still ongoing in the tech sector with the blacklisting of

shares of credit suisse are lower today after the bank announced a $1 billion buyback program. >> announcer: today's big number $1,331,000,000,000 that's apple's markecat p after it closed yesterday. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. ♪ new fixodent ultra dual power provides you with an unbeatable hold and strong seal against food infiltrations. fixodent. and forget it. >>> good friday morning, stock futures pointing to steep losses the dow is set to open some 270 points lower s&p futures are off. nasdaq off 115 points on news that the u.s. has targeted the leader of the iranian revolutionary guard. let's get a check on other top headlines. frances rivera has more news for us >>> we start with the deadly fire crisis in australia that rages on authorities have declared a state of emergency in the state of new south wales the fire has killed at least 17 people and scorched millions of acres. firefi

that is a strategy she used at credit suisse as well.et to the first word news with annabelle droulers. manus: just before we move on to that, one of the other names that is coming through is -- this is perhaps the whole momentum behind the strategy. he will be involved in leading the restructuring and origination outside of america for the global wealth management. he will be the link between the investment bank and the wealth management and this all goes back to the conversation we had with him before christmas, which is about an obsession with cost, so this is about cost-cutting and efficiency, so this is going to be the start of a new year at ubs. we will catch up with him on the 21st. nejra: let's get to the first word news now with annabelle droulers in hong kong. annabelle: thanks. washington sending more troops to the middle east as tensions with iran escalate. over 2000 marines are on their way to the mediterranean. the u.s. is denying it is pulling out of iraq, saying a draft was released an error. mark esper says there is no d

upgraded over to overweight from equal weight at barclays and coca-cola upgraded to outperform at credit suisseatch those two stocks time for the executive recap that ukrainian airliner that crashed shortly after take off was apparently on fire before going down meanwhile, the u.s. aircraft surveillance firm says it has collected position data involving the jet and is sharing it with appropriate authorities. >> chase is hiking the price for the sapphire reserve card. customers will now pay $550 fee up from $400 they are adding new perks with lyft and doordash to help compensate for that. >> stock futures are pointing to another record open. the dow would open up by just over 134 points. joining me now, chief technical strategist good morning so many charts to talk about let's talk about two that have been a huge focus, commodities take us through some of the moves you are seeing and what you could see in the future. first of all, gold prices. >> gold here, 1921 down to 1046. i count this a completed five-wave move this is the initial leg down of a much larger climb. here on the way back up is c

ill brexit and battlelines drawn ahead of a key board meeting at credit suisse. i am guy johnson with vonnie quinn in new york. we are now counting down to the close on bloomberg markets. ♪ vonnie: markets are on edge in the 90's to his s&p 500 picking up steam. consumer companies from colgate -- palmolive to amazon are down almost double digits on the s&p 500 but we have oil companies, international paper lower. international paper saying demand for packaging shot up once there was a phase one trade deal. but revenue still missed. crude oil is at 51.52 a barrel. that's opec plus. getting very nervous, looking to move up its meeting to february and the vix is above 18 now. european stocks standing by -- the you're a stoxx 600 down 1%. the market in line with that. the pound is down .6%. countdowniting the clock. resultsnue to await the in the bond markets as we continue to see the effects of the coronavirus on the bond market. a day of turnaround in europe, particularly france and italy. vonnie? promising to bring the coronavirus under control as the u.k. and rus

kellogg got an upgrade at credit suisse, giving that stock of boost.semi equipment in the s&p 500 are up 1.5%. level, up 2%.sox all of that, on the downside, progressive is the worst performer in the s&p 500. the insurers are having a tough day. guy: let's turn to markets politics in london. members of parliament are beginning three days of debate in the brexit bill. live shots from the house of commons. joining us is bloomberg executive editor stuart wallace. this is a done deal, isn't it? getting this across the line. this is the brexit bill boris johnson promised and we would leave the european union. the bigger question is what does this tell us about what comes next? stuart: i think we need to look at it. yes they have a clear majority. yes they are unlikely to pass any amendments the government does not like, but there are amendments on the table. that could throw up interesting debate. onave to say when i spoke , he said the chances of failure were small. i would tend to take his judgment. we have to think a long way to go before we get a trade

memo shows it is overhauling the flagship business in europe the first big change since former credit suissexecutive joined as the head of that commission last year ubs has $2.5 trillion in invested assets. >>> microchip technology is up projecting sales this year to be at the top end of the previous range. microchip ceo says he used the latest quarter as the bottom of the turn and expects revenues to grow in 2020 >> shares of tesla continue to march higher after another record said yesterday. boosted last week by fourth quarter deliveries that top forecast and 2019 numbers in line with its own guidance that brings us to our own younes yoon in china where they have reached a milestone. arguably, the china story is what is driving that tesla stock. >> absolutely. there is a whole lot of potential. today, tesla delivered its china made model 3s to the chinese public for the first time. elon musk is in china for this occasion this is just one week after the company had delivered some of its model 3s delivered here to its employees. the company has said that 10 tesla customers received their car

alreadyy valuations are trading close to lows seen durin g the 2003 epidemic according to credit suisseng singapore stock prices is price similar to the sars virus. su: we start with the latest impact on the virus. china is racing to contain the virus and construction work is continuing around the clock on two new hospitals in wuhan. it's the epicenter of the outbreak with the vast majority of deaths recorded there. beijing has ordered extra medical supplies to help the fight. at least one senior official has been fired. alibaba's co-founder jack ma is the latest figure offering to help fight the virus outbreak. china's richest man will donate $15 million to his foundation join bill and melinda gates. that's on top of alibaba offering to establish a $145 million fund and share expertise in artificial intelligence with researchers. the virus is also affecting a range of international sports events in china. the world indoor athletes championships has been postponed by a full year. the first world cup skiing races in 2020 due to be held near beijing have been canceled. and qualifying tour

credit suisse noted that people were very positive.aying buy the shares on the weakness. what we hear from the company is different. things are picking up in china but they still see weakness in u.s. and europe. the company is saying something different than the street on that david:. we are all reading tea leaves on earnings. does this say anything about industrials? kailey: it is a bellwether, and they say that their customers are seeing the command. that means that the pickup that everyone is expecting may not be here yet. or the company is being really conservative, and things will pick up and they will beat. david: thank you so much for that report. balance of power continues on bloomberg radio. we will be speaking to a russian expert from georgetown sniversity about putin' overhaul of the russian constitution. live from new york, this is bloomberg. ♪ ♪ hey. hey. you must be steven's phone. now you can take control of your home wifi and get a notification the instant someone new joins your network... only with xfinity xfi. downloa

credit suisse raised their price target for grubhub ahead of the company's fourth-quarter results next he highlighted a blue sky scenario where the u.s. food delivery market begins to rationalize in 2020 as market participants will back off promotional activity and instead optimize profitability. up, amazon almost over the $1 trillion mark. its most recent earnings crushed expectations. that and more at our look in the week in review next. 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 wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. and save even more when you say "bring my own phone" into your voice remote. that's simple, easy, awesome. click, call or visit a store today. taylor: this is bloomberg technology. i'm taylor riggs. we continue to await on the