this is "bloomberg daybreak: europe."hings looking little hazy over in hong kong. the hang seng up by .7%. 6:18 here in london this wednesday. let's get the bloomberg business flash. >> volkswagen is closing in on a deal to pay $4.3 billion in criminal and civil penalties to settle u.s. probe into the rigging of diesel engine emissions. it will raise the cause of the scandal to more than $23 billion in the u.s. and canada, way above the $19.2 billion b dubya had set aside to resolve the vw had -- to set -- that set aside to solve the dispute. according to people of knowledge of the matter, the conglomerates main bank agreed to maintain financing through february even know recent credit downgrades may make it an eligible receive loans. said the main bank will continue to offer support. the main a similar of apple's iphone's has recorded its first annual revenue decline since listing in 1991. as foxconn, they posted a 2.8% fall in 2016 sales is a global smartphone market went for its worst year on record, coming as foxconn'

anna: a warm welcome to "bloomberg daybreak: europe." i manus cranny. donald trump with his first press conference yesterday, seven days until his inauguration and this is what he managed to interview as the ,arkets, the trump trade because of the lack of detail, we have a great quote from oscar wilde, in matters of grave importance in terms of physical, style not sincerity. ofhas delivered a lack detail, and that's what the market has latched onto. his donald trump style -- this is the dollar index. you can saven, but the trump mania trade has faltered. anna: show me the details is the market of the message -- the message of the market. how much does he cut back on globalization and what kind of fiscal stimulus, more importantly. was that an unfair expectation? he was dominated by russia and donald trump's business interests, as we know. let's show you where we are on overnight interest. the dollar index reflecting the questioning of the trump trade, more so reflected in the dollar against the yen. the en increasing -- the yen increasing. lows: we are

daybreak europe is done for the moment.en coming up next with guy johnson, and you can tune in with me. i'm off to digital radio the between 8:00 a.m. and i'm :00 a.m. but we are global everyday. this is bloomberg. ♪ guy: welcome, this is bloomberg markets. this is the european open, your first trade of the cash session coming up shortly. i'm guy johnson in london, matt miller is in berlin. what are we watching? brexit gets its day in court. a rulinging to get shortly on whether the prime minister needs parliamentary approval before triggering article 50. but is a loss for the government priced in? repricing reality. the greenback bounces back, despite steve mnuchin

this is bloomberg "daybreak europe". it is 2:49 a.m.ong, that's where we find juliette saly. juliette: thank you. samsung electronics hit a record high after posting its best operating profit in three years. the world's largest maker of phones and memory chips is writing demand from china for semiconductors used in mobile devices and computers. the business has proved resilient to the loss of the galaxy note 7 after reports of devices bursting into flames forced it to withdraw the handset. donald trump facing pushback against his america first policy . he has been putting pressure on the u.s. auto industry to stop making cars in mexico and bring jobs back home. said sheary barra won't change production plans because the president-elect sends critical tweets. gm is shifting production of its compact suv from canada to mexico. you can see mary barra's first interview of the day from the international auto show. meanwhile, fiat chrysler is to invest in the united states, pouring $1 billion in two plants in ohio and michigan, expanding the

this is bloomberg. ♪ anna: like them back to bloomberg daybreak europe.it will stronger at the start of the equity day for european markets. that is what futures are suggesting. let's get the number is less flash with juliette saly. europe's: second-biggest maker proposed buying $5 million in shares and is considereding -- considering separating its buying division. pdynamic.g ap the ceo has been firing up the revenue growth. they price the ipo in the first tech offering. and fourth-quarter profit fell cashs investors pulled amid lackluster performance. three hundred million dollars in net outflows. in october he plans to merge with the london-based henderson to form a asset manager. that is your lumber business flash. anna and manus. premise -- prime minister faces a potential revolt i lawmakers including embers of her on party over the government's plans to leave the eu. opposition and some rebel mps are expected to press for written brexit plan. anna: following the ruling that parliament has the power to invoke article 50. invoke article 50. we spoke t

. ♪ anna: very warm welcome to bloomberg daybreak: europe. from here in london.et us get straight to the numbers in ubs. profit has increased substantially. let us talk through how well they have done over the estimates including a rally in equity boosting banks security. you seeof those areas substantial improvements. increasing profit year on year. to give you an idea of the uplift in profits, fourth-quarter pretax profit 848 million swiss franc versus 234 million swiss franc's, the same period a year ago. inus is on the ground switzerland talking to the ceo of ubs at 6:45 a.m. london time. let us pull up the risk radar. show you where we are on various metrics. the boj is evident here. substantial weakness in the japanese currency coming through this morning. to buy is stepping in bonds. aiming to keep the 10 year yields at 0%. away, therried japanese central bank stepped in to bring that back down. .he boj meets next week no changes expected. cpi data out of japan. we will discuss those details. radar, have on the risk the futures in the u.s. showing we could

that'll do it for daybreak europe. we are weaker across the trading day. future of finances the talking point coming up shortly in davos. this is bloomberg. ♪ guy: tuesday morning, welcome to bloomberg markets. this is the european open. the cash session coming up shortly. i'm guy johnson alongside matt miller in berlin, francine lacqua over in davos. one big story we are watching this morning. th u.k.e's theresa may is said to announce plans to quit the european union and strike a completely new trading relationship with a bloc, but how long will that take? on the same subject, consumer crunch. mark

you are welcome to bloomberg daybreak: europe.manus cranny. the: breaking news from u.k. retail sector. the discount german retailer today. manus: this is for the nine week period leading up to christmas. atluding fuel, comes in 2.9%. the market was looking for 1.1%. this is lighting a torch under our spending pattern in the united kingdom into the run-up of the christmas period. morrison profits will be ahead ,f the consensus and the cfo 321.7 million pounds. for 314.nsus was 330-340.ofits the consensus number was at 314 million pounds. about ae talking relatively robust period and we had a somewhat mild repetitive environment. numbers here are almost three times the market estimates and the guidance remains in check. they are going through a three year organization, selling properties and readjusting. anna: interesting to see if we have structure around that reorganization. this,l come back to further through the week as we get more on these retailers. for now, we will look at the futures. we are looking to see they are suggesti

. ♪ manus: welcome to "bloomberg daybreak: europe."t's our flagship morning show right here from the city of london. francine lacqua is settled in for a long and hopefully joy -- enjoyable ride at the world economic forum in davos. another day of great guests. you're going to kick it off of the little bit more of a swiss labor to today's agenda. francine: it's certainly very cold but we will bring you some pretty good interviews to figure out what 2017 has in store. we will speak or to the -- we will speak to the chancellor of the s checker and we will speak -- of the exchequer and we will speak to theresa may. in the post-brexit, once they start negotiating, what do you do if you are a ceo? do you start planning now and do you start moving jobs from now? ubs and hsbc and we know they are getting ready. we will now see what the government thinks they can achieve in negotiations. we will speak to wolfgang ministersnto what the thinking about all this purchasing. and of course i'm also excited about an interview with the chinese regulato

daybreak is it for europe. the first show of the new year.en this up next with .uy johnson markets indicated a little higher as you start the full first day of the trading year. the china data, the pmi is what is driving the market. join me on bloomberg radio, daybreak europe. we are live from 8:00 a.m.. this is bloomberg. wow, x1 has netflix? hey, drop a beat. ♪ show me orange is the new black ♪ ♪ wait, no, bloodline ♪ how about bojack, luke cage ♪ oh, dj tanner maybe show me lilyhammer ♪ ♪ stranger things, marseille, the fall ♪ ♪ in the same place as my basketball? ♪ ♪ narcos, fearless, cooked ♪ the crown, marco polo, lost and found ♪ ♪ grace and frankie, hemlock grove, season one of...! ♪ show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. anything with a screen is a tv. stream 130 live channels. plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any scre

anna: that is it for daybreak europe today. -- "bloomberg daybreak" today. ally session was slightly negative but not by much. looks like we could be higher across europe. questions being asked about what trump will deliver. london waking up to a very cold morning. have a good weekend everybody. this is bloombeg. guy: friday the 13th. welcome to "bloomberg markets." this is the european open. your first trade of the cash session coming up shortly. i'm guy johnson. matt miller is in berlin. hogwash. that is sergio marchionne, what he's calling the u.s. diesel emissions charge. could fiat chrysler survive the kind of volkswagen scale fine? the coast is clear. fed chair janet yellen says

anna: welcome to "bloomberg daybreak: europe." , live here in london. manus: going to rocket out for 2017. the bulls are firmly in charge for the moment. we noted a couple of little bubbles, one was the.com bubble and over there is the 2015 hi. we are still 12% below the 2015 high on the stoxx 600. it's the banks that have really push this movement higher. the question is this, do you believe that earnings will be the driver for europe? anna: this is different from what these u.s. stock market has been doing over recent years. investors are focused on the positive and what donald trump might bring rather than heeding warnings from the likes of larry summers are worrying about higher interest rates. u.s. and you can manufacturing, german inflation data, all giving investors something to smile about. the u.s. session into the overnight context, we continue to see the rally in global equities. in part driven by japan are backing the party for the first time since the new year break. the broader msci asia index up by 1% this morning. debatedor years we chin

. ♪ anna: a warm welcome to "bloomberg daybreak: europe." , i'm annain london edwards.anus: i manus cranny. is at the world economic forum. looking forward to banking with the big thing, hsbc, we will hear more from them. that will be a big theme in the next 30 minutes as well. francine: we will speak to the head of the investment bank at ubs and berries ceos to try to get the temperatures on how they see risk and what their most concerned about. what i'm looking forward to is our panel on populism. you can call it the angry middle class. lagardeeak to christine , and radel lyons, who is a big fan of what donald trump is trying to do with the u.s. economy. really want to answer, do central banks have a say in this? are they the ones that lay the foundation? if you are a politician nowadays, remember there are elections in france, netherlands, and germany. what can you do to reconnect with your citizens? we will be joined by the brazilian finance minister on that panel and the italian prime minister. thank you very francine. stay with us for a moment. this is a chip equi

it's "bloomberg daybreak: europe." city ofre in the london, i'm manus. a day of breaking news. one of the biggest nordic lenders, the critical thing on their mind was what would they do with the dividend? committeds if they've 65, it's just a snap below the estimatet -- consensus . this after the ceo this time lester shifted gears in terms of having promised to pay out 75% of its former dividend, shifted gears and said it's going to a progressive level. you,ple of key numbers for the loan loss estimate is for 148.8, quite a significant fourth-quarter net loan losses. it will be eventful and we will be prepared, according to one banker. 1.20 one billion euros. net fee income, 876. the key message here is that the and the is in line buffers of capital are there. six-month earnings-per-share 34% and 44%. those other breaking news headlines. i thought we would start with a moment in time, have a look at this. this is the dow jones industrial average, breaking -- it took nine weeks to travel 1000 points. that is the second fastest rally on record. the last time we shifted gears like

daybreak europe. this is bloomberg. ♪ caroline: you are watching "bloomberg technology". top story, tech earnings. shares has been dipping in post-market shares. sales came in shy of estimates and it may miss sales and profit estimates in the current period. at&t telling investors they are planning to sub 2% growth. the company could see better than positive 2%. another company we are watching, ebay reporting revenue to top estimates. shares popping in on the news. it increased 2% on the fourth quarter. ebay has been working to accelerate growth, re-banding -- rebranding to entice shoppers. the company has been facing increasing competition from amazon and brick-and-mortar retailers who are migrating online. michael jaconi is our guest. health move our apps. there is a thing about e-commerce. thank you for joining us. first of all, the turnaround in ebay seems to be working. looking back to your experience, are they going at it the right way? michael: thank you so much for having me. i'm not the ceo, but the director of the division. the experience there, what we were ama

this is bloomberg. ♪ jonathan: from new york, this is "bloomberg daybreak: europe go -- "bloomberg daybreak about a ton of supply on the bond market out of the united states and europe. $28 billion of seven-year notes coming tomorrow. in the fx market, it has been the same story all morning. alix: here is what you need to know at this hour. up against a wall, president donald trump to unveil actions on national security that are expected to include steps for building a wall on the mexican border. we will take a look at some of the volatility. pick for economics. may the force be with her. u.k. prime minister theresa may battling a rebellion from her own lawmakers says she will publisher plans for brexit. david: we want to bring you up to speed on this top that brian moynihan is giving right now across town at the council on foreign relations. he is talking about global markets. he says he has not yet met trump. the same time, he says he wants him to think about the cost benefit analysis. he also expressed some concern about shadow banks, that they are not properly regulated. the question he

program.yu joins the for more, to anti-radio daybreak europe live on london's dab digital.s bloomberg. ♪ francine: this is bloomberg surveillance. i am francine lacqua in london. mark barton is at the terminal. mark: we are up. we were down for a third day of the u.s.e firing attorney general, adding concerned about the unpredictability of the new administration. stocks are rebounding. the msci is declining today. yesterday we saw the drop following from donald trump halting some immigration. it is up in january, up for a third month. banks leading the advance up by 1%. the yen was up earlier. ignore the headlines that say the yen is gaining. it is concerns over trump's measures trumped the boj decision, the boj keeping its asset purchase program to control the yield curve unchanged. the u.s.clining in after trump fired the acting u.s. attorney general for refusing to uphold the border, his order banning citizens from seven predominantly muslim countries into the u.s. the boj raised its forecast, expecting improvements in overseas economies. dollar-yen, this is a great char

manus: welcome to "bloomberg daybreak: europe," our flagship morning show. ome to the program. 7:00 in london, 8:00 if you are in much of france, germany, and the rest of europe. let's have a look at futures. suggestions of weakness at the start of the u.s. trading day. limited trading in asia because of the new year holiday. tokyo open, sydney open. we are getting a downward five coming through from the asian session and nervousness around donald trump policies, immigration, and the unpredictability of his policy announceements. manus: that transfers itself nicely into the risk radar. last week it was mexico, getting mexico to pay for the wall, canceling the meeting, then of course there was that real -- we bounced off the lows. this is dollar against the yen and the euro. our next guest says you want to use any of these opportunities to get long -- the question is how long do you want to be in a rather skittish series of announcements coming through from the new president in the white house? let's have a look at the risk radar. the dollar is down, broadly l

you can listen to daybreak europe live in london on digital. market. up 20% since last february. how long will the rally run? a new report shows business confidence in britain has rebounded from a post referendum. could paris pilfer tens of thousands of banking jobs from london? and the hunt for the istanbul nightclub killer continues.

anna: welcome to "bloomberg daybreak: europe." some on the federal reserve have repeatedly warned about the appreciating value of the dollar. what has that done to the markets? the dollar is lower against the d10 currencies. back, and we would go this is what we got. this is the dollar position. at the start of 2016. the market data suggest we are long, but we are no word near as long on this dollar run as at the start of 2015. , don't forgetions the 181. if you go by that theory, there is still the propensity for this dollar to move in syncopation with where the cash price is. about theeed to talk currency market, the dollar being one of the big stories. the yuan being another. let's talk a bit more about the dollar to emphasize the weakness we've seen overnight. cutting the bullish positions overnight. it's not normal and one .vernight trading session the fed grappling with uncertainties about what the trump policy will mean for the u.s. economy and the stress in the dollar as you mentioned. 35%, you've got to pay 35%. nobody wa

turkish currency has gone parabolic as you can see from the start, joining us now is bloomberg daybreak: europetrategist cudmore. william hobbs.s mark, i want to ask about the turkish lira, and the fall has been amazing. i have been tweeting about it for a few days now. where does it stop? is there a natural equilibrium point here? mark: i do not think there is pure it one of the problems in turkey is that unlike in most countries were the currencies depreciating and ameliorating the situations, in turkey, it is making it worse. in terms of their external data is so large, so they have to chase the move higher. i do not think this stops until the central bank comes in to support the currency. guy: does it stop until we get this view and governments that cutting rates is the way to deal with inflation? mark: i mean, certainly, that is erdoganre gone -- or t is owing pushing. people have given him more sympathy recently, but that is not what turkey needs. rateseed to hike aggressively. the currency needs some stability before inflows will start coming back in. matt: is this an interesting play he

welcome to bloomberg daybreak: europe. our flagship morning show from the city of london.welcome to the program. breaking news coming out of germany. german november manufacturing orders down by 2.5% month by month. estimate was a drop of 2.4%. is there hasy here been an investment driven search in this number. the economy ministry says demands for big-ticket items was pretty weak. partially offsetting a surge in the previous months. manus: retail sales declined by 1.8% as well in this set of data in november from the previous months. sales were up 3.2% on the gear. -- year. bustny still still on the -- robust side. good inre reasonably germany. futures, the last trading day of the week. it felt kind of long even though it was short. stocks 50 not expected to move all that much. 175,000, that is the jobs report number we are looking for later today. markets may be waiting for that for some directly. manus: the risk radar. we got some things going on. it moves in the yuan, a little dollar weakness and they jumped in there. -- 2005.since 28 -- 20 ftse by the most since 2005.

. ♪ manus: welcome to "bloomberg daybreak: europe," right here in london. i'm manus cranny.nna: and i'm anna edwards in westminster. good morning. theresa mayecause and her government are trying to get 137 word brexit bill, the eu notification and withdrawal bill, through the comments and through the lords to meet that self-imposed deadline of the end of march. that is what we will learn over the next couple days. to what extent is she going to have a free rein to get on with that job, and to what extent are her hands going to be tied in terms of the timing? all the details with amendments, plans werech iis the from mp, who were overwhelmingly further remain side, but a lot has changed since then. that is what we will talk about over the next few hours, as we build our way to the start of the debates at noon. let's check in on the breaking news and the risk radar as well. manus: we have one of the global brokerage houses -- the stock has doubled versus its competitor. ¥17.3come at 17. billion. a year ago was ¥35 billion. you can catch all the coverage from the editors. first

. ♪ manus: welcome to "bloomberg daybreak: europe," our flagship morning show in the city of london.are here in london. erik schatzker is at the world economic forum in davos. really busy first hour of the program. what have we got? erik: moments from now, dick boer, the ceo of apple delays, a gigantic supermarket operator which you may not know generates most of its business in the united states. some questions for certain for subject of the trump inauguration and what to expect as pretty much everything in the united states it seems is on the cusp of changing. manus: on the cusp of change, what a great phrase. let's see what the president delivers in terms of china, the dollar. he's taken to twitter. it is policy by twitter. let's check on the markets. mnuchin, the-- treasury secretary elect, says trump is not talking about a long-term policy of dollar strength. futures in europe, london is showing a gain. chinese data undoubtedly set a nice stability town. 6.8% growth. anna: let's show you where we are on various assets. the shanghai composite reacting to that better than estimate

daybreak europe, live in london on dav digital radio.e we will work towards the inflation data. what that means for the ecb. this is bloomberg. ♪ francine: london's thinking needs to be challenged. that is the message from that of parting british ambassador to the e.u. is a hard brexit more likely? contingency planning in china. on ford and wins. the u.s. automaker is ditching plans for mexican expansion and will add products and jobs in michigan. good morning. this is "bloomberg surveillance ." lacqua in london.

daybreak." futures and equities across europe are unchanged and stable. the bond market was a little choppy yesterday at the treasury. economic data is decent. the treasury is stable this morning in the u.s., as well. euro, welook at the are changing on -- trading on the cable rate. tries to slow down the flight of capital as the dollar continues to climb. it affects everything from chinese company debt payments to the value of a bitcoin. european economic data shows encouraging signs of growth raising questions about possible tightening policy from hocks in 2017. donald trump gets his way. mexico andbout gm, ford abandons a plan. he talks about congress changing ethics rules, and congress backs down. is he on a roll? that is what you need to know at this hour. first, our top story on china. we are joined now by in expert from beijing. john, welcome to the program. out us a consensus right that there is a substantial element in the chinese government saying we should take new steps to curtail the capital flight. what are the steps being considered? >> we

coming up later today on bloomberg television, bloomberg daybreak: europe, an interview about what we a company given our new administration. this is bloomberg. ♪ tom: good morning, everyone. on a wednesday, let me get my glasses. is the important, this asian currency basket without japan. on the left, the crisis of 1998 and 1997. this is the great presumption, what does donald trump do with this? if the market gives us the sister -- of securities and a weaker renminbi, that changes the certitude coming out of the white house. this is a big deal. a big debate, asian inflation has been higher than u.s. inflation and we expect the currencies to go down. with respect to china, one of the points we make to investors is that the chinese currency is probably being held up, not held down. if the chinese currency were to be let go by the authorities to find its own level, it would go down against the dollar. between 5% and 10%. the idea of the administration saying it is being held down is yesterday's story. tom: bring up the chart, please, stay with me. this distance of asia currency weakeni

for more, tune into radio "daybreak europe" on da be digital. is "bloomberg surveillance." let's check in on the markets. here's nejra cehic. nejra: i'm starting with gmm just to give you the big picture view. if we look at equities first, we are seeing a mixed picture. lower in greece and portugal. 0.1 percent.y seeking gains in luxembourg and some other markets. 1.2318., it was one of the few currencies down against the dollar. most others have been rising. the euro up 0.2%. swiss franc higher as well. some yields ticking higher in europe. the 10-year gilt yield higher, for example. we've commodities space, got a bit of a move upward in a lot of commodities. brent crude off by 0.4%. 600, weok at the stoxx pretty much unchanged. we saw gains in asia and the u.s. yesterday. some of this could be down to the stronger euro. day,uro, up for a second extending its gains after the eurozone pmi and inflation data. this chart perhaps showing a bit of a link between the two. the big theme in fx markets today has been dollar weakness. it seems like inves

that's daybreak europe live on london this is bloomberg.c: let's look at the ftse, the 10-day performance, longest winning streak since may of 2013. eight of those gains have seen record closes since brexit. the game has rich by 1%, helped of course by sterling side. the steep yield curve is helping banks, and inflationary policies are helping. crude are you surgence is lifting oil companies. what a rally it's been. in dollar terms it's down by 6%. haven't forgotten that. look at sterling today, 121.45. the level to watch is 121.23. that was the october 1985 low prime minister teresa may signaling in that interview yesterday the maintaining control of immigration and law making of brexit priorities even if it means quitting the european single market. she said sunday leaving the e.u. will be about getting the right relationship, not about keeping bits of membership. she seems willing to gamble britain's trading relationship with its biggest market in return for greater sovereignty. i.n.g. sees sterling pressing 1.21 this week as the u.k. go

more, tune into radio daybreak europe live in london. is bloomberg. ♪ francine: this is "bloomberg surveillance." president minister, lawmakers are taking questions on plans for leaving the eu. we are expecting a white paper where theresa may will lay out her plan. the government will try to delay that is much as they cantered what we are expecting a couple of hours is the bill after the supreme court said theresa may had to go through our lament -- through parliament. we are trying to figure and how much of a hurdle it will be to get the level of parliament -- the approval of parliament. theresa may is in d.c. today. she will meet with president trump tomorrow. let's get a check of your market that the bloomberg. gain stoxx 600 is ing, investors embracing riskier assets after the dow crossed 20,000 yesterday for the first time. a bullish sentiment toward equities. investors encouraged by early indications from president trump about his policy, taking steps for fulfilling progrowth campaign promises, approving to oil pipelines and cajoli

for more, tune into daybreak europe.his is bloomberg. ♪ francine: good morning, this is "surveillance." let's get straight to your market check with mark barton. mark: president trump's inauguration speech on friday, the america first rhetoric, is causing uncertainty in the lack of details on fiscal and economic policy, also causing uncertainty across various asset classes. this is the stoxx 600, down by .5%. strong basic resources up, most of the industry groups are lower today. and fell for the first time, and europe is underappreciated ahead of the investment office. if you like at the economic data performance and how it is improved, investors are focused too much on politics when it comes to europe and less on the underlying fundamentals, which he says create investment opportunities. this is the dollar against all its major peers. as you can see, all the peers are rising against the dollar today after president trump took the america first approach, spurring concerns about trade protectionism. bank of tokyo mitsubi

you can also tune into radio daybreak europe in london.s is bloomberg. ♪ francine: this is bloomberg surveillance. i am francine lacqua in london. we just had breaking news out of the italian central banks. thank i tell you saying italy's banks bad loans stand at 100 billion euros in november. this is pretty much in line with what we thought. we know they are trying to deal with of course monte paschi. we are still expecting a little bit of news on the details of that, but there is nothing shocking. we have not seen a big repricing of italian banks this morning. they are saying the bad loans owned by italian banks aren't 199 billion euros for november. -- are at 199 billion euros for november. ftse 11 in a row for the 500. it is quite a rally we are saying because of the weak pound , boosting all sorts of companies that of course our global players. exporters, especially when they derive their overseas earnings. commodities are benefiting from the reflation trade, thanks benefiting from the higher bond yield as well, all companies benefiti

that story and talking more about donald trump and the transition with -- more, to get to radio daybreak europeve on london. this is bloomberg. ♪ francine: this is bloomberg "surveillance." let's check in on the markets. mark: the ftse 100 rising for the 12th consecutive day. that is the record. yesterday, 11 they winning run was the best since 2009. yesterday, the ftse hit a record high for nine consecutive days. that also is a record. is a record on the record straight and 12 would be an all-time record winning streak. a lot of records. 2 ben't watch it, will lucky or unlucky? a lot depends on sterling's decline, we broke the key level today, 121.23, that was the closing level on october 11, the lowest since may the eighth 1985. which9 today come hsbc right here is the blue line says .10 this year, the median -- the endless median beecast is 1.25, will hsbc proven correctly and will sterling continue its decline? the october close is the key level today. excitement today, shares -- same-store sales rising .5% in the latest 15 week time, revenue topped projections. the general merchandise chan

. ♪ jonathan: this is a bloomberg daybreak: europe i am jonathan and david alix steel tweed futures down for the s&p 500 after the worst day so far in 2017. not that dramatic create down .601%. ,witching out the board treasuries unchanged, 248 the yield on u.s. tenure, but the dominant story is the weaker dollar story. 500, cross, november s&p city home prices rising 5.2% year on year, more data in a moment. over to alix steel. drama, thek at retail sector, under armour off by 25%, fourth-quarter sales missing estimates and the u.s. could continue the rapid growth. it has doubled, failed every three years on average and the most short in stock in the s&p 500, so taking it on the chin and the cfo will be leaving the company, dragging down some of the years like lululemon and nike. a look at big pharma, pfizer down by 1%, and getting hit by down 8%. pfizer cutting the 2017 forecast due to the generic affect on its business. missing, sales fading on an older insulin drug. the ceo will meet president trump at the white house. we will her eyes on the headlines. fourelva, losing patents on its

. ♪ ♪ this is york city bloomberg daybreak: europe moments away from the opening bell in the united statess we go into the open. we have been flat throughout much in the morning. we look a little something like this. yields down a basis point at 2:39. -- at 2.39. off the backowth largely from a negative trade contribution. anything, spot of this is equipment spending. we cross over to alix steel. at a record high closing level and we are right at that level for all indices here. the dow over 20 set -- over 20,000. the s&p is set to break a two week down streak in the individual sectors. pivoting on tech, the nasdaq is the biggest gainer in all three indices. stocks to watch, because you have a lot of cloud data information. microsoft cloud unit saw a near double in revenue. the intel ceo saying that shift to cloud computing is happening very quickly. google's other revenue line, jumping 62des cubs percent, though shares were down in premarket. of they are up by 4/10 in 1%. there is a lot of question of what to price and from president trump out -- from president trump one a tweet goes out.

. ♪ jon: welcome to "bloomberg daybreak: europe co i'm jonathan ferro alongside alix steel. d.c. we have breaking news from you. the earnings out from citi. income trading coming in at $3 billion. investment banking revenue also better than estimates coming in at $1.1 billion. equitiestake a look at , a similar story from goldman. trading revenue coming in a little bit lighter at $694 million. that is higher than the third quarter. a little bit of disappointment on the equity side. overall, in terms of earnings, a beat for the company. jonathan: breaking news from deutsche bank. deutsche bank told senior employees that most of them would not get an individual bonus because of last year because of the lenders' performance. it will be vice presidents, directors, managing directors, and members of the management board will forgo their variable compensation. we are joined by allison williams. let's begin with the deutsche bank and the bonus story which has been confirmed by deutsche bank themselves as they told the senior employees that most of them would not get a bonus. what's

daybreak." futures and equities across europe are unchanged and stable.erday at the treasury. economic data is decent. the treasury is stable this morning in the u.s., as well. euro, welook at the are changing on -- trading on the cable rate. tries to slow down the flight of capital as the dollar continues to climb. it affects everything from chinese company debt payments to the value of a bitcoin. european economic data shows encouraging signs of growth raising questions about possible tightening policy from hocks in 2017. donald trump gets his way. mexico andbout gm, ford abandons a

daybreak." i am jonathan ferro. in the markets, a little bit of drama and consolidation. futures softer. we roll over in europe.f we switch up the boards, the fx market looks like this. it is a little bit risk-off, so a stronger yen trade developing. -- a stronger yen trade developing. treasuries up about a basis point brent crude stable at 53.30. alix: the market has to shift from taking president trump seriously and literally what is happening with volatility. lows,volatility is near treasury volatility is near highs. the lower it goes, the higher the move indexes going. we have not seen this level of volatility since bernanke's taper tantrum in 2013, and the 4.nd tantrum in 201 how do you respond to the pickup in treasury volatility? robert: the volatility is higher than it was. you are looking at the relevance to equities. so the 80 basis points of expected volatility in treasuries is not unusual. what is unusual is the collection volatilities. alix: what is unusual is the move in yield since the fed move back in september. robert: you have first of all the domestic impact of expectations, of tax cuts, and

europe. travel bans, trump's will have some wide-ranging implications for silicon valley's biggest companies. we will take a look at the tech industry's response. this is bloomberg. ♪ asia."this is "daybreakonne: a quick check of the latest business flash headlines. a possibility of a strike at a copper mine in july -- chile. workers are overwhelmingly in favor of action. the boat is continuing, but a union spokesman says miner -- the vote is continuing, but a spokesman says miners are rejecting the offer. they have rejected calls for a 7% rise and a bonus of about $38,000. betty: fortescue metals says second-quarter shipments helped oteady its costs thanks t productivity and efficiency changes. they shipped 42 million tons in the three months ending december 31. net debt dropping to $4 billion, with the target $3 billion by july. trading -- iron ore is near its highest level in two years on record demand from steelmakers in china. yvonne: boosted by its lng facility in queensland. revenues doubled to $411 million u.s., although that was slightly below goldman sachs' forecast. they have benefited from higher energy prices. betty: as we heard moments ago, acting attorney general sally yate

europe is a very big concern of germany and the other east and west european countries. rishaad: the former undersecretary of state and ambassador to nato was talking on daybreak americas.s and looking at donald trump's impact at the moment of firing the attorney general. jump in goldw a close into the 1200 level as well as the dollar-yen declining after trump's actions. we had the nikkei going into the close lower by 1.3%. the kospi declining .04%. take a look at the movers. we do have some news around samsung. asia business daily reporting the company is considering building a mobile phone factory or whole appliance factory because it does not have either in the united states. it does have a semi-productive -- semiconductor production line in texas. we are seeing samsung electronics fall for the first day in four on that news. difference when you see the , sk hymix uper today. marketingy is a services player jumping its fourth-quarter earnings beats x to miss -- beats estimates significantly. we do have securities that raising the stock to buy from hold with a price target of 21,001 from 18,000 want. the stock rising above 9% on the back of that news. rishaad: thank y

daybreak." i'm jonathan ferro. about one hour 23 seconds away from the opening. a pretty flat session so far this morning. over in europe continues on the ftse. bond market, record shorts coming into this year. the squeeze continues for three weeks as we start 2017. 238 is your yield on the 10 year. around 12166. that has not been the story of the last couple days. alix: inflation ahead. china's factory prices rising in the fastest and five years, adding to the global reflation seem. cene. it's a double recce for the fetzer -- record for the ftse 100. trumps confirmation test kicks off today with attorney general jeff sessions. the big question is how many democrats vote against him and what changes they could make. following one of our top stories, for more on capitol hill, we are joined by kevin cirilli. any chance that jeff sessions does not get confirmed? kevin: no, i don't think there is a chance the democrats can block them. they're going to try to characterize him and bring up some of the previous racially charged statements he made. sessions is going to drive home the point that he is going to be able to unify t

daybreak." daysng off 2017 with two of gains, but looking at equities there's not much of a signal coming from futures. thet's dead flat across board and likewise in europes well. an interesting session developing today for the dollar against a chinese currency, specifically, a real mixed session for the dollar, marginally stronger against the pound. >> returning to that big china store that you referred to, the yuan surging the most ever on record against the dollar. we're joined now by our chief asia economics correspondent today. i will be simple about this. why is the yuan up soldier medically against the u.s. dollar? do we know? >> look, it's a most killing season for the yuan bears and they didn't like how they started last year. the chinese stories are coming in in a big way. it's less clear if they are dumb -- directly intervening today, but they have engineered a andsic liquidity shortage the net result of that is much more sensitive to short the currency there. they are really sending out the signal that it is not a one-way bet and you place your money at your will, we are coming after you. yesterday the big story was the chinese government enc

europe with france's 10 year yields reaching year. more many the risk on the rally as it continues to weigh on bonds. that is next and this is bloomberg. ♪ jonathan: this is bloomberg daybreakcheck of the markets. as we count you down to the open, we are 70 minutes away. futures slightly up on the dow. abovel-time high closing 20,000 points. moving forward, the s&p 500 futures stable and going nowhere. cable rates once again an upside surprise. gdp coming in at 2.2% for the fourth quarter. quarter on quarter as well. we hit a 2017 high on the cable rate and then we hit this. the pouncing to be the story, it is 1.2564. alix: global bonds selling off in europe. as that continues, we spoke about opportunities in germany. >> real rates in germany are at their lowest level ever right now. inflation in germany is spiking. it is not moving in a linear fashion. ecb and theof the buddhist banks speak today about the fact that i think we are going to see inflation running much hotter than any other central banks thought it would. i think the move in bonds is just beginning. alix: paul richards of medley global advisors, you mentioned rising u.s. real yields at the cap and 10 year yie

europe, the u.k., and germany. we take you to the banking industry and stop. fitzgerald, an effort to build out trading. from new york, this is bloomberg. ♪ jonathan: this is "bloomberg daybreakcheck the markets for you as we get back to work on wall street and the city of london. happy new up 135 on the dow. now positive about 16 on the s&p. the ftse on a record session. if the inflation story dominating the conversation across assets. the pmi is solid and inflation is a surprise out of germany. down andyields are bones are down as well. the dollar on the front foot against the euro as we trade with a one of three handle. david: chinese new year. 2017 starts with strong pmi numbers, showing continuing chinese expansion and new efforts to monitor capital outflows. aesident-elect trump names trade hawk as his negotiator and rams of twitter warnings to the government of the world's second-largest economy. opec down payment. oil hit 18 month highs on news that kuwait and oman are delivering on those promised reduction cuts. thinkers on the move. -- bankers on the move. run fitzgerald and jpmorgan wishes to keep all its jobs in london. paris is looking to lurk as many as 20,000 t

europe have benefited from order and prosperity and the cavalierness with which it is being jettisoned is quite stunning. julie: that was richard haass with jeffrey wu and david owen on "bloomberg daybreakavid: speculation on the successor to the samsung chairman ending up in jail. this is bloomberg. ♪ julie: this is bloomberg. we have breaking news on qualcomm. qualcomm is set to face a u.s. antitrust case over licensing. apparently the federal trade commission has been investigating the company's business since 2014. this would follow a south korean fine. the eu is also investigating the company. qualcomm said it to face an antitrust case over licensing of its chip the stock took a sharp leg lower in the wake of these headlines coming out come down 1.25%. not down by that much in percentage terms. right now 1.5% or so. nonetheless, a sharp reaction to this, and we will bring you more details when we have them on this case. david: all right, thank you, julie. a south korean court is set to rule on wednesday whether to approve an arrest a friend of the president get us up to speed with the state of play. what do prosecutors accuse him of doing? >> they are accusing him of making illegal