that is it for "daybreak europe."l be joining matt miller on programming in the next hour or so. traveling, there's always bloomberg radio. ♪ matt: welcome to "bloomberg markets: european open." i'm matt miller in london. the cash trade is just 30 minutes away. ♪ matt: the yellen narrow and the fed chair leaves rates unchanged. it is now to jerome powell to pull the trigger. how will he react to a potential increase in the budget deficit? fourth quarter in the bag, unilever sales beat estimates. the review of the share structure is expected to

this is "bloomberg daybreak: europe." welcome back.oking at a live shot of the emperors thousand tokyo. you have dollar-yen at the bottom of your screen. the yen is taking action to pull back from some of their longer-term on the purchases. we have breaking news for you. they are going to be the world's biggest seed maker. this is transforming what is the world's biggest drugmaker into the world's biggest seed maker. the $66 billion purchase of monsanto. let me give you some of the numbers coming through from buyers as well. 35.3, 9.29 come might be a little bit lighter than the market had estimated. adjusted.ce for 2018 core earnings will be at the prior year level. they talked about a slight increase in terms of their numbers, but nothing dramatic coming through from bayer. you might have to wait a little bit longer for transformational numbers to come through, but the monsantois that the closing may be delayed until the second quarter of this year. that is the key that the market wanted to know. this does not affect our expectation

joining us for the last hour here on "bloomberg daybreak: europe." t, fascinating conversations with some big ceos from across europe, various sectors. the saudi sovereign wealth fund is said to be seeking a stake in profits. this is bloomberg. ♪ . . . retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. anna: good morning from bloomberg's european headquarters in the city of london. i am anna edwards. these are today's top stories. fed officials deliver an upbeat assessment of the u.s. economy, ramping up the prospect of higher rate hikes. equities in china rise after being shut for the new year holiday, but other markets in the region retreat with u.s. futures. and theresa may

anna: this is "bloomberg daybreak: europe." s get the bloomberg business flash with juliette saly. zÜrich insurance group delivers its first increase since 2011. they raise dividends by 6% after signaling high interest to payouts in november. the company announced a share buyback of roughly a billion dollars. zÜrich insurance ceo mario greco joins us at 7:00 a.m. u.k. time. back to you. anna: thank you very much, a brief business flash. many of corporate headlines. mario greco will join us later on and we will cast lead to get his thoughts on dividend policy that business and the profitability of the company. france's second-largest inner has beaten estimates with net income of 69 million euros. it was expected to post a loss of 180 million euros. the company saw a surprise comeback for the equities trading business in the final three months of the year. ceo discussed his company's earnings and future prospects. ,> first of all, fourth-quarter a very modest decline. still low volatility environment. compared with the banks that

this is daybreak: europe.k for another five-year term. the yen rises to a 15 month high. investors withdrew more than $6 billion from u.s. junk-bond funds last week. meanwhile, the rise in yields, china increases holdings in treasuries last year for the most in seven years. south africa's new leader, newly isrn in president ramaphosa expected to deliver his first state of the nation address today. 7:00 a.m. in london, happy new it is the year of the rooster. it is a sleepy lunar new year. away from theors roulette table of the equity markets. they might be enjoying themselves in london. investorses, global cautious on the u.k.. he wants to buy the u.s. on dips, sell the rallies on europe. the dax futures are down by 49 pips. the market is absorbing what ray dalio is doing. germany'serned about merkel, and also the ecb, you in macedonia.eech paris futures up 10 pips. futures are gaining. we had a dip at the start of the 6:00 show. we are back in the green. we have come out of the correction territory. equities

this is "bloomberg: daybreak europe." the u.s.reasury secretary says will raiseolicies wages but will not cause broader increases. upheaval at anbang. the temporary control of the insurance company. alleged fraud. no cherry picking. the european commission preempts the brie exit meet -- the brexit meeting. the plan will not work. ♪ anna: good morning, everyone. this is "bloomberg: daybreak europe." breaking headlines from switzerland. newing authorization of a share buyback program. the backward looking numbers netting. this comes in ahead of estimates. this is a year where we have heard from many of the insurance the backward lookingcompanies py natural disasters including forest fires in california and earthquakes and mexico. the only positive from the business perspective from all of that for the insurance sector is willthere is hope this lead to falling prices. that is one thing we are watching out for when we hear lead to falling prices. from swiss re. regarding softbank, they have confirmed that they do have some interest in

are well ahead. ♪ anna: -- manus: welcome to daybreak europe. breaking news. quarter basis. banged on with estimates. europe having the strongest growth performance in decades. estimate. you have a driver in terms of the gdp and this is where you're seeing industrial production really challenged by the value of the euro. you are seeing a strong gdp number. cpi comes in at 1.6% year on year. it's pretty much in line with the estimates. the harmonized comes in at 1.4%. it was driven by a strong increase in exports. this is the top line from germany. year on year 3%. it is exports that have driven the growth year. how does this play into the european equity markets? there is the euro against the dollar. up .18% at the moment. we are up and running. we should have a higher open in the european market. we have london, paris, and frankfurt all rallying. the sharp selloffs, it's good to be hard to have a rapid recovery. it cpi day in the united states of america. that german data will help the overall sentiment as we start the trading day. anna: let's get breaking new

this is "bloomberg daybreak: europe." anna: markets take a breather.&p futures points to a higher open. manus: the u.s. is ready to engage in nuclear talks with north korea, even as it maintains pressure on kim jong-un's regime. anna: theresa may looks to reunite her divided cabinet and come up with the brexit plan. ♪ anna: good morning, everybody. this is "bloomberg daybreak: europe." let's take a look at the asian equity session. it has been in rehab after the stresses of last week. they are up 1.1 percent on the msci asia-pacific, excluding japan. futures point higher. there is a lighter tone to the geopolitical conversation, based on words from mike pence. that is helping. risk-on in there markets. it takes away from the dollar and boosts some currencies today. dollars bought index down .3%. data onnflation wednesday. in the meantime, look out for budget commentary today from the trump administration and anything big report on infrastructure. i mentioned the letter tone to the geopolitical conversation. are mentioned the lights tone to the geopolit

this is bloomberg. ♪ ♪ anna: this is "bloomberg daybreak: europe."s, they are firmer. 25%, but we by 0. have been higher than this. they're in mind that u.s. futures are negative. let's get a bloomberg business flash. >> steve wynn has stepped down as ceo and chairman of wynn resorts after being embroiled in a sexual harassment scandal. the company said its board reluctantly accepted his resignation. need -- a new ceo has been appointed. says fourth-quarter sales jumped 72% to $285 million. daily users rose. profit at the company's -- remains in retreat while the film studios big comeback awaits a bigger slate of films. excluding its tax benefits, sharegs rose to $189 per while revenue grew to $15.5 billion, missing projections. forecasters are heading back to the drawing board, bluese the euro blues -- the predictions -- blew right past their predictions. anna: they euros rally comes as the region's economy is up steam up except steam -- picks steam. remind us where you are on the euro and how strong you think it could get. after saying in the last

this is "bloomberg daybreak: europe." manus is in dubai. new headline, we will alert you to that before we jump into the markets. the weinstein company has filed for bankruptcy after sale collapses. let's move to what has been happening in the asian equity session. futures up by .8%, the dollar index down by .3%. we're in limbo waiting for jay powell to speak. he spaced tomorrow and on thursday. euro, and pound moving stronger against the retreat in the dollar. as to question jay powell, we get our first real market introduction to him in this current role. what we have said about wages, asset prices, and where janet yellen has taken the fed. manus: yeah. and on that whole concept, what will you get for mr. powell? most say markets will simply yawn, but have a look at this. the bond market may not yawn. a stronger yen is helping the bond market this morning. this is too bearish, too far. bond yields have risen 22 times, to 2.94%. they are at a record high. the question is, will the bond traders step back from 3% as they wait for mr. powell

this is "bloomberg daybreak: europe." anna: asia's fourth-quarter earnings fell short with no share buyback. the stock takes a hit in asia. we spake with the bank's finance director. >> fourth quarter from our perspective in the industry's was a little weaker with respect to global bacon market revenues, space.larly the ficc we also took corporate exposures in the fourth quarter. manus: asian equities snap a six-day rally as hong kong comes back online following the new year's holiday. meanwhile, treasury yields climb ahead of a quarter trillion dollars of auction this week. anna: and a brexit backup plan. theresa may is said to be preparing to withhold aliens and eu payments if the bloc doesn't play ball on trade. ♪ anna: good morning, this is "bloomberg daybreak: europe." let's get straight into the market auction. we will have more from the finance director shortly. msci being weighed down this morning, part of it is hsbc, where we see negative reaction coming through to that earnings statement, in particular the preta

. ♪ anna: this is bloomberg daybreak: europe it is 6:00 over here in london. 3:00 over in tokyo.ct in yields in the japanese markets to bring that 10 year yield back down to 0%. that has been a plan was healed targeting for some time. we also have a move in bitcoin. dropping this morning down another 6.8%. you may want to think about if you are thinking of getting into the coin. -- bitcoin. that is the guidance path of things. the share buyback program, they are announcing a shared buyback program. has come inuarter at 6.0 4 billion which is ahead of the estimate. they are giving us various metrics around the business. they see an improving economy which means they were able to increase their guidance. they have suffered as many banks in europe and japan and elsewhere from a negative interest rates. ratesad negative interest in 2012 so we will see where they go on here. interesting to see commentary around capital levels. we will keep an eye out for that. update from the markets. >> you're seeing a little bit of weakness coming through in asian equities. it looks mixed. you can s

. ♪ welcome to the program, this is "bloomberg daybreak: europe."'s check in on the market action overnight. the msci asia-pacific is trading higher after we saw that strong session and united states. in the past two sessions, the biggest two-day increase in 18 months. 43%.s up 0. japanese markets big weighted down -- being weighed down. are also pointing down, so we need to be aware of that as we go through this morning's session. morgan stanley joining goldman sachs and jpmorgan and advising the dip.he dip -- buy the has been a substantial move, and one of the things in the mix seems to be the prime minister in japan speaking in parliament, talking about how they have a blank slate in choosing the governor of the bank of japan. reports suggested that governor kuroda would be tapped for another term. that could still happen, of course, but they're talking about a blank slates of people to choose from. the3 is where we trade dollar against the brand -- rand. zuma refuses to step aside, but many are wondering if that will hold. perhaps the writing is

this is bloomberg. ♪ ♪ anna: this is "bloomberg daybreak: europe."t improved slightly. now they are in positive territory, so moving slightly more towards positive turf for u.s. futures. omv is building a robust international framework. ceo rainer seele joins us. looking get the market, -- looking at the market, help me understand where this uptick is going to come from. i'm looking at the fourth quarter numbers, somehow much libya is going to contribute to your story this year. morning.ood first of all, i think that the numbers in the fourth quarter are not really reflecting our situation, because we only have one month of the production from her russian -- from our russian field. the increase in production in 2018 you see is the full consolidation of the entire production for the full year. this is good for 100,000 barrels per day. our production in libya will stay on the level that we saw last year. we'reing whether or not going to see any interruption in the infrastructure. i don't see a big upside in libya, but i think that the downside is not a

this is "bloomberg daybreak: europe." these are today's top stories.come asia-pacific markets extend the global gains as investors await the chairman's first testimony in front of congress. 100 deals for the eu. will it challenge theresa may tomorrow? stimulus.o mario draghi tells the european parliament that uncertainty remains and he is not ready to reduce support. we will bring you our interview. ♪ manus: a warm welcome to "daybreak." we are in london, abu dhabi and singapore. where at the fat forum this morning. forum this morning. standard chartered brings back the dividend. that is a critical message. hsbc reshore the market on dividends. jes staley reinsured the institutions on dividends. standard chartered reinsurance the market on dividends. where they risk on mood in the market. -- we have a risk on mood in the market. rates will not run away to the upside. we have a risk on attitude to markets. let's have a look at the risk radar. asian stocks recruit -- recoup their there were losses. are you paying a premium to hold asian-american markets?

warren buffett slashes his stake in ibm. ♪ manus: welcome to "bloomberg daybreak: europe." les of new bys in europe, they rise 6.8%. this is perhaps one of those terms of then robustness of demand. overall.rations rise 6.8% gain at the start of the year. january.rong start in the european car market building on a 10 year high from last year. who were the winners, in terms of the lineup? moreler sold almost 70% jeeps. 2 of the western european largest markets saw sales gains. germany was up 12%, spain was up 20%. demand and the u.k. contracted -- demand in the u.k. contracted, they dropped by 6.3% -- it dropped by 6.3%. we are battling with what happened last week. it was almost an attack on the interest rate market when you saw higher wage inflation data. there was this attack on the bond market and equity market at the same time. equity markets go up. the u.s. equity markets are back in the black for this year. the biggest one-day jump since april of last year, oil is bid. yen has a whole other complexity to it this morning. ut a little bit of dollar-yen in there. dollar-ye

. ♪ anna: this is bloomberg daybreak: europe. the dollar against the yen. 10896.t think the jump into those conditional safe havens they might expect to see. of turmoil over in the asian session. the shanghai composite down by 5.5%. you can see it on the screen. we are seeing some significant losses in the asian section. good money. >> i will get to the u.s. futures in a moment. let me show you what is happening in asia. msi heading toward its worst week since february 2 16 -- 2016. it is china and hong kong debt look to be underperforming the most. everywhere is down at this global stock route continuing. -- as this global stock route continues. hong kong stocks have been some of the hardest hit this week. this is the weekly move on a weekly basis down at 13%. there it is. corrections, we saw the s&p 500 officially enter correction territory after yesterday's session. the dow dropped a thousand points. the s&p 1000 headed towards for the -- its worst week since 2011. this is a great technical chart. i do nothing we can really have to much of it. the 50 500 broke

this is bloomberg. ♪ anna: this is "bloomberg daybreak: europe."ndon, it is 6:47 in the morning. south korean court has suspended the prison sentence of jay y. lee, heir to the country's largest conglomerate. stephen engle joins us now. give us the latest on what has been going on. reporter: yeah, if you can both be stunned and not surprised, that is what the reaction is we areday, because stunned that the high, which was reviewing the appellate court me,ess here in seoul behind they have not exonerated jay y. lee, but they have allowed him to pretty much walk free. he has already left the court out here by a bus to the seoul detention center, where i suspect he will collect his belongings. he has been there for nearly a year anda local news agency says the heir apparent, the man that was convicted in the same courthouse in august to a five-year prison sentence for various corruption charges, he will be able to go home this evening. it is a stunning reversal because this was, of all the different options that the appellate court could have come up

daybreak. it is 7:00 in europe. if you are in the united states, happy presidents' day. balance herece with the cash markets closed and you have the equity futures trading lighter than normal with the best run in equities within pushing awayd against volatility and rising yields. survey with the market drop to reenter and it is all about the united states this week and the fed minutes and what you get on wednesday. andill begin to understand builds to the testimony with the actual power of powell. we have some numbers coming across your bloomberg terminal. we have breaking news on a dividend coming back and platinum declares a dividend. it is an interesting time in the market with donald trump raising and theter of tariffs dollar has trade tensions and the possibility of tariffs in the united states and the dollar manages to eat out this. i mentioned to you that the paperates are opening and will come over the next few days . who keeps purchasing it? the chinese cannot get enough of this. they have increased their treasury holdings and we see their story and if they woul

we are live from london at the top of the hour for "daybreak europe," this is bloomberg. ♪ emily: thisloomberg technology." i am emily chang. while apple plans unveiling new features in the fall as part of its annual upgrade, the most important improvement is what is not being debuted. namely, redesigned home screens and revamped photo apps. that is because apple is trying to renew its focus on quality in response to criticism that some of the company's software has become prone to bugs and underdeveloped features. here with that scoop, our reporter and michael j wolf. mark, what can you tell us? focusing on a -- consider focusing on a marketing deadline, they will let the smaller ones fade away to the following year and so they don't put enough attention on the big ones. iphone has been prone to bugs in recent years. emily: why focus on this now versus any other launch? mark: think it comes down to apple's scale. apple has grown in terms of how fromdevices they sell, tens of millions iphones a year, to over 100 million iphones a year. their engineering team has grown from fewer than 1

this is "bloomberg daybreak: europe."gs fell short with no share buyback. the stock takes a hit in asia. we spake with the bank's finance director. >> fourth quarter from our perspective in the industry's was a little weaker with respect to global bacon market revenues, space.larly the ficc we also took corporate exposures in the fourth quarter. manus: asian equities snap a six-day rally as hong kong comes back online following the new ye'

simon will also join us on bloomberg radio's "daybreak: europe." that is live on dab digital.ius xm, your bloomberg radio plus app or your bloomberg terminal. up next, problem planes, strong earnings results for airbus are dragged by engine troubles and a one-off charge cost overruns on their military transport model. this stock,uss which is actually soaring today. this is bloomberg. ♪ ♪ guy: welcome back, we are 47 minutes into the trading day. european stocks well bid. airbus shares jumping this morning after fourth-quarter operating came through very strongly. cash flow well ahead of estimates. the plane mayor struck a positive tone on the current year, promising growth of 20%. the a400m military transport aircraft. benedict campbell joins us now. the market loves what it hears. what are we hearing from airbus that the market likes? >> good morning. a halfket is taking glass full approach. we had a couple of negative headlines out of the company. you mentioned the a400m, a program that has been going on for years and is bleeding money. tom anders called it mission impossibl

this is "bloomberg daybreak europe." we will get into the big picture story in a moment. breaking news. we are waiting for the banking sector to wake up with bnp numbers. numbers coming through. let's talk about what they have got to say this morning. they have decided to accelerate the pace of investment. fourth-quarter net interest income. that is ahead of the estimate of 6.27. they have increased their mortgage volume income. this is a bank that is very exposed to the swedish housing market, of course. the impact of the slowdown we have seen in this housing market for this business is crucial. we have seen the biggest slump since the financial crisis, even as the economy has been growing faster than average for europe. saying they see signs that pressure is easing on this housing market. headlinerucial, the coming through. manus: we are officially in a correction. falls by 2% from the high point. i said to you in the headline that the asian markets were careening to a correction. market --tion in the the hang seng down by over 6%. the biggest drop since 2011. we discus

david: welcome to "bloomberg daybreak: europe go -- welcome to bloomberg daybreak. up yesterday, look what happened. we see those higher bond yields. 2.5 hours to the cash open in the u.s.. future looking to a positive open by about 13 points. weaker dollar, weaker dollar. 1.24 heading up to some kind of resistance. the selloff in the bond market continues. yield --he 10 year 2.93% on the 10 year yield. pivotrt of the morning to of the weaker dollar has to be dollar-yen continuing its move below of critical support levels. nonetheless, the question of the stronger yen, is it a safe haven play? is it the hedging? a lot of question marks to what it's doing. companies aren't so fine with it. it does not do well for equities. taylor riggs is here with first word news. taylor: in south florida, a 19-year-old former student has been charged with 17 counts of premeditated murder after the deadliest school shooting in the u.s. in five years. cruz open nikolas fire with a semiautomatic weapon. he had been kicked out of the school last year. 15 wounded survivors have been hos

bloombergcome to daybreak: europe i am david westin.am excited about these treasury auctions. alix: it is perfect. david: it is a big one. alix: it is, and markets are wishy-washy heading into it. the dow is off by triple digits and the dollar is modestly stronger against all currencies. about the softng belly of the curve, the 3, 5 and seven. 10 year yield up 2.9%. and nymex crude up .7. david: declare victory and retreat. ok, let's find out what is going on outside the business world with kailey leinz. kailey: about 100 students from the florida high school that was seen of a mass murder are going to the state capital today. they hope to pressure the legislature to vote for a package of sweeping gun control laws. president trump has signaled he is open to tightening background checks for gun buyers. meanwhile, the president has set aside long-standing differences with mitt romney. he has endorsed his run for the u.s. senate seat in utah. critical ofeen president trump, but the republicans are trying to hold onto the majority in the se

gains,ue ceo elizabeth we will discuss those results later on "daybreak europe."erg markets: asia." i'm haidi lun in sydney. rishaad: and i'm rishaad salamat in hong kong. spotify founders are following google and facebook, trying to maintain control after listings by holding shares with super voting power. the ceo and vice chairman -- [indiscernible] spotify has been valued at up to $20 billion in private trade in the recent month. haidi: sprint is selling junk bonds for the first time in three years to fund a wireless upgrade. it is selling $1 billion of unsecured junk bonds. talksllapse of merger with t-mobile last year left sprint alone in an increasingly competitive market. it lagged verizon, at&t, and t-mobile in terms of subscribers. rishaad: broadcom's ceo received compensation last year mostly consisting of shares linked to the company's performance. the return beat 90%. he would be entitled to as much as 4.5 times as many shares. -- [indiscernible] and what he may achieve from the bid for qualcomm. haidi: tournaments are starting to resemble major sporti

david: welcome to "bloomberg daybreak: europe go -- welcome to bloomberg daybreak.bond yields. 2.5 hours to the cash open in the u.s.. future looking to a positive open by about 13 points. weaker dollar, weaker dollar. 1.24 heading up to some kind of resistance. the selloff in the bond market continues.

coming up on bloomberg daybreak: europe conversation of laureate of yale, robert shiller.bloomberg." ♪ taylor: this is "bloomberg surveillance." in the u k, barclays operating unit faces criminal charges over its controversial capital fundraising at the height of the financial crisis. this area accuses barclays of unlawful financial assistance that has to do with the $3 billion loan the bank got from cointreau008 step former executives in the bank holding company had already been charged. barclays says it will defend itself. pension fundy firm making a joint bid for specialty chemicals unit. that is according to the financial times. mt says the pension fund p[gg be a minority: besser alongside apollo global management. the akzo unit can be valued at more than $12 billion. the new deal will ensure airbus gets producing its a380 superjumbo for at least the next decade. emirates signed a contract for another 20 of the double-decker planes. $16deal has a list value of billion. last month airbus have the a380 program could be terminated if there was not a new sale soon. that is

"bloombergn daybreak: europe america -- look for that interview this is bloomberg. ♪ ♪ good morning,mberg surveillance ." .et's talk about italy we are about 8 days away from the italian election and if we focus on what we know so far -- of course we know the region's third-biggest economy in the elections take place on march 4 towering debtn's and banking system potential stress points. -- italy ambivalent relationship with the single currency. the leader of the eurosceptic leak has said the euro is a mistake in social and economic -- stay with us, sony kapoor and david bloom. thank you for sticking around. i thought a lot of the parties if not all the parties backed away from challenging the euro. they are talking about the relationship between italy and germany, italy and brussels, but not the euro because there's overwhelming support for the euro in general. sony: the closer we have come to election date, the less extreme the eurosceptic positions have become across the board, which is interesting given that the problem -- the background to the italian election is that italian gd

daybreak asia." asia-pacific stocks look set to fly as europe fails to extend afterr gains retreating from a 15 monthising, hitting above 52 bothers -- $52. bloomberg's global headquarters, i'm ramy inocencio in new york, where it is past .:00 p.m. on a monday hsbc will deliver fourth quarter as well as full-year results. the last under stuart gulliver. dhp is said to report its biggest first-half profit. it is under renewed pressure from an activist investor. this is the second hour of "daybreak asia." welcome. first word news with haslinda amin in singapore. hasinda: singapore announced a range of tax increases including a surprise to copeproperty levies with its rapidly aging population. it is worth more than one million singapore dollars and goes till 4% from tuesday. the government also wants to raise the goods and services tax from 9%. isresa may's brexit team said to have secret plans to withhold billions of pounds in a you payments to give the u.k. the trade deal it wants. we are told senior officials have discussed atf in case a failure to clinch a free-trade agreement happens. may is expect

daybreak: americas." i'm alix steel. in asia, buying in europe, and selling modestly in the jurors market.00 points. to a lower open but nowhere near the last few days. buy the dip is all we're hearing from the big banks. wells fargo upgrading their for the s&p. a broader stronger dollar story. seeing some buying come into the treasury market. watch the 10-year, billions coming up in an auction at 10:00. what will the demand for yields to buy the longer term duration asset? softer, 29, ale far cry from yesterday. crude oil down .4%, despite goldman sachs being bullish on the commodity. the eia saying they are looking in 2050.brand at let's get a look headlines outside the business world. the house has passed a temporary spending bill that whatever the government shutdown tomorrow night. it wasn't the budget cuts to fund the military to september. a broader bill may be added before the senate votes. leaders in both parties say they want to end the cycles of temporary budget measures. the head of the house financial services committee says markets go up and down and is not up to congress to

staying with european finance, rhetoric joined bloomberg daybreak: americas this week for a wide-ranging conversation. he spoke about the future of europe'sr. >> the most important thing for -- beyond theind long-term opportunity, we are going to complete the banking union. are long-term opportunities and we can take advantage of them. on top of this, the economic activity is good in europe. we have growth rates like we have not seen for maybe the last 10 years of across the eurozone. that is an opportunity for banks and hopefully we will see rates rising. we have's -- we have suffered dramatically from negative rates. ratee a much better environment. >> it is not just the steeper curve. what is your best case for that? assumption, the strategic plan was that progressively in 2019 the negative rate territory would exist. with growth rates at 2.3% or 2.4% for the next two years for the eurozone, normally you should see lower unemployment rate and higher inflation on wages. i think this is much better and the monetary -- the central banks would like to exit the policy progressively to avoid an asset bubble or a distortion on prices. >> as y

daybreak. equity futures are trying to stabilize after the selloff from yesterday spread to asia and europe.asses, gilts take a break. we see some selling on the margin as yields are up by one basis point. that's the highest level since 2014. the dollar is mixed, the vix is softer and crude gets weaker. we are still a stone's away from that 100 moving average. goldman sachs stays bullish. this is with making headlines. ended one of the surest government shutdowns of all time. the house passed a two-year budget bill that raised federal spending by $300 billion. it placed the debt ceiling on hold for a year. the public and senator rand paul had blocked the senate vote for hours. he was unhappy over the extra spending it. the sister of the kim jong-un president has shaken hands of the south korean leader. she is the first member of the dynasty the rules north korea to officially visit the south. she will have lunch with the south korean president. the brexit negotiator has waived the prospect that the deal could fail. there are substantial disagreements with the u.k. over period.year grace they

finance, frederick today a cash joined "bloomberg daybreak: americas" this week for a wide-ranging conversation. he spoke about the future of europe's sector. >> the most important thing for me is, beyond the long-term opportunity in europe financial markets, we are going to complete the banking union. we are going to see deeper capital markets. there are long-term opportunities and we can take advantage of these. on top of this, the economic activity is good in europe. we have growth rates like we have not seen for maybe the last 10 years across the eurozone. that is an opportunity for banks and hopefully we will see rates rising. you know, we suffered dramatically from negative rates. you did not have that in the u.s., it is painful, i can tell you. we will see a much better rate environment. >> it is not just the steeper curve. you need to get out of the positive rate environment. what is your best case for that? >> our assumption, the strategic plan was that progressively in 2019 we will exit the negative rate territory. with growth rates at 2.3% or 2.4% for the next two years for the eurozone, normally you should see lower unem

europe. from bloomberg's european headquarters, nejra cehic. vonnie: and in new york, i'm vonnie quinn. --s is "bloomberg daybreak♪ we have crude oil inventories out this hour. we are seeing a drop, so this will come as a relief, of 1.6 million barrels. we had so many weeks in a row of a build. once again, a drop. let'ssee has oil have -- see how oil is reacting to that, rising 2/5 of 1%. to point out a few other numbers right now out from the department of energy. refinery utilization was lower than 1.7%. economists and the we surveye

daybreak. i am alix steel. up by 37 futures points and weakness in europe with the dow taking a calmer stance.t will get interesting in terms of the dollar, now emerging as the strongest g10 currencies into the release of powell's testimony. yields continue to move higher. joining us from d.c., michael mckee. reporter: this is one of the shortest and most upbeat testimonies and a long time, just for pages doublespaced. the powell era begins with the economic outlook strong, he says, and the fed planning further gradual increases in the right to keep it that way. powell says "the robust job market should continue to support growth and household income and consumer spending. solid economic growth among our partners should lead to further gains in u.s. exports and upbeat business sentiment and strong sales growth will likely continue to boost business investment." any reference to the markets, he said "financial markets have tightened a bit in recent weeks, but remain accommodative. some of the headwinds that have faced to the economy in recent years have now turned into tailwinds, particularly n

. ♪ ♪ alix: this is "bloomberg daybreak", i'm alix steel, we are 30 minutes away from cpi data. a rally in europeny. other aspect classes, dollar-yen is on the radar continuing lower off 6/10 of 1%. marketease, treasury neutral as we wait for the number. lower by one basis point, the spread flatter. the numbers are out. take a look, year on year cpi better than estimated. over 2%, 2.1%. core, back out energy, year on year coming in stronger. 1.8%, expecting sequential decline, that didn't happen. month on month, looking large. points, better inflation read across the board. retail sales, potentially different story. back out auto and gas for january, coming in down 2/10 of 1%. real average, weekly earnings coming in, 4/10 of 1%, down sequentially but still, coming in solid. hourly earnings as well, a tenths of 1%. let's look at what is happening in the bond market, selling across the board. strongest selling in the belly of the curve, to year yield jumping by three basis points, 10-year jumping three basis points. margin, a, on the little selling, that is not the big mover. look at what is happen

daybreak." about 30 minutes until the cash open here in the u.s.. there is a rally over in europe in particular, the ftse, up .5% and sterling is also up. a couple of things going on. you have the more hawkish rhetoric out of some of the members of the boe. jeremy corbyn in his labor speech seem to apply a softer brexit. all of that helping equities and sterling. we take a look at the next board, you can see that rally underway. a broadly weaker dollar story on the g10 space. buying bonds. the 10 is down by one basis point. i wanted to point out aluminum. the outperform or when it comes to metals. part of that could be some steel tariffs coming down. that could also be good for some curves as well. the coat it is now time for an update for what is making headlines outside of the business world. taylor: china is on the verge of using ping grip on power -- xi jinping grip on power. -- that would remove the only barrier for him to stay in office indefinitely. house has taking a wait-and-see attitude when it comes to talks with north korea. kim jong-un indicated he is going to hold di

daybreak. i am david westin with lisa abramowicz. lisa: let's get you caught up with a market action. green on the screen. you can see stocks europealmost 1%. also up even more s&p futures, less than .2. nasdaq futures up a bit more, so tech stocks are rallying more into the open. if you flip the boards, you can see oil is up a little or trying to get back to where it was after plunging on the dollar strength. gold futures are up. 10 year yield dropping in tandem with a decline in 10 year u.s. yields with german yields. kailey: taylor riggs -- here withlor riggs is first word news. theor: the u.s. has deep in impasse over how to protect undocumented immigrants facing deportation. lawmakers lost four proposals and republican senators are floating the idea of a temporary extension of protection for dreamers. the 17 people killed at a florida high school were remembered at a candlelight digital. the names of the victims were read out loud and there were signs asking for action to fight school violence. a judge ordered the suspect to be held without bond. according to the rest report, nikolas cruz confessed. officials say he arrived t

daybreak asia. look at first world news. forecasts near back to base in 13 years. -- itpared to estimates was the highest since 2004. 2018 manufacturing in u.s. and europe delivering a surge that will please central bankers. the data shows the tribe versus japan divide. planet and nissan left market rivals behind -- toyota and nissan. the big three are coming off of the sales drop after the recession, and seem to be having a hard time coping with consumers. prosecutors have opened an investigation in the acquisition of a european-based holding. provided falsee information and is facing adening global security after spending spree of more than $40 billion since the start of 2016 hna is trying to thwart a cash crunch. ceos earned more after companies last year. 356 companies in the study received $60,000 on average. their bosses compensation is not specified but thousands of display in the upcoming months. cryptocurrencies are facing criticism in europe and india. has longn central bank been dismissive of bitcoin and others, but now says the risk of illicit activity is too high. the lack of transparency makes it suitable for money laundering. india says i