draghi should at least know the answer.re questions about why it , exactly what is going on behind the scenes. a lot of this is in latvia. as one person said for the ecb, there between a rock and a hard place. of theing at a chart euro at least in relation to the dollar, a little bit of a roller coaster ride when draghi mentioned that fx moves deserve close monitoring. what will the markets glean from what he is saying today in prepared remarks about the euro? >> i would have to pass -- parse this carefully. mario draghi's's comments on the euro generally refer to the fact that the euro is, in other words, there are consequences for monetary policy. the messages we have been getting from the ecb are, at the moment, the are p level is ok. they do not want to see it is these kinds of levels and changes, they could live with that. this is mario draghi's last public appearance before the next decision on the eighth. seen arun-up, have we little more of a slightly hawkish tilt from the governing council? hard one to judge. there

certainly, wiseman has a different view on the world as draghi.en where europe is in the business cycle, it might matter a little bit but not that much if we have another european sovereign debt crisis, then it would matter a lot. i like to go back and play the hindsight game. if he had been there, would he have done the draghi speech in 2012? in a benign state of the world, it matters a little bit of the value of the euro and italian government bond yields, but it is a crisis situation that matters a lot from a policy perspective. jonathan: he was busy hiking rates, wasn't he, when maybe he should have been cutting them. guys, great to have you with me. we will wrap things up and go to the final spread. to the rapid fire round, where i ask you a quick question, and a quick reply if you can. lisa, kevin and eric. we begin with the selloff in treasuries as we approach 3% on a 10 year. value of the euro and italian government bond yields, but it is a crisis situation that do you fade the reflation trade, or accept that 3% is coming on the u.s. 10 ye

when you start thinking about the ecb post-draghi? hoping it is a german who takes the top spot? lisa: i think that may be the case. it is a selloff environment for european bond yields that have been anchored by the ecb program, by low rates. totally different set of members as well. it is a different cast of characters and we are trying to make expectations based on what they are telling us. it is a whole different set and it could be a whole different ecb next year. jonathan: kevin, let's think about it. you are at the bloomberg terminal one morning and the headline says he is the next president. do you react to that, should you respond to that?respond to that? kevin: not immediately but i think there may be a shift in focus. much like it has been a pro-usa or pro-america focus since donald trump was elected, that maybe there is a pro-german focus within the ecb or within the european union. that could be to the detriment of some other countries. jonathan: could you imagine the damage done if you have an aggressive repricing of sov

draghi and he is not exiting the market anytime soon. does that haveat to do with the u.s.lar bond market? the actions of the european central bank has driven european investors to become material players in the u.s. bond market. i think at the moment we have a floor under the pricing of u.s. treasuries. the dollar, i think there are grounds to anticipate we may see a stronger dollar relative to the trends of recent months. real yields in the u.s. can continue to rise. we will see reasonably strong bond yields. in europe, i think real yields will stay low. manus: we have more to get to. that is james bevan. coming up from abu dhabi and london and globally, we have one man you want to listen to. ray dalio joins us. that is at 9:00. rise as the european union drafts a brexit treaty tomorrow. it drops some of the u.k. prime minister's most important demands. ad apple is said to release trio of smartphones including a bigger and cheaper iphone. this is bloomberg. ♪ ♪ , excuse me, it's 2:19 in singapore. 6:19 in london. let's give some of his time to juliette saly. a company has

draghi isat mr.lity for a periodic crisis, a banking crisis, should there be a snap back in bond yields that would hurt southern europe. anna: do you see a snap back in bond yields coming? they produced bond buying, but it is still generous, i guess. you don't see them stepping away from that anytime soon. inflation is perhaps keeping the hawks at bay. guest: i think that is right. there may well be a snap back in bond yields because we have seen this in the u.s. there are many commentators and nagersnown bond ma talking about how the markets are very sensitive to inflation risk. we seem bond yields had higher and have an attract on dragging up eurozone bond yields, clearly at a much lower level. there is a risk of a snapback come of broader volatility. i think over and above what has happened in europe's bond markets, there is a wider risk that investors feel we could have an inflation induced bond market crash. the eurozone bond markets would not be immune from that. guest: when does that start to

still ahead, featuring comments from both jay powell and mario draghi. draghi.ll have that conversation very shortly, this is bloomberg real yield. ♪ ♪ >> i am jonathan, this is bloomberg real yield. it is time for the final spread. coming up, one of the main highlights will be the new federal reserve chairman jay powell. we will get a fresh round of economic data including numbers on a u.s. gdp plus mario draghi and theresa may will both be speaking. to wrap things up, matt, kathy and mike. matt, what are we looking for from chairman powell? >> i was reading the transcript. there were enough interesting speeches from powell. i think he will have his eye on financial stability more so than we have seen for other chair people. with that in mind, even though we don't see risks to financial stability today, if financial conditions can ease as they are trying to tighten monetary policy, that will change. that will encourage the fed to a accelerate the pace of rate hikes. that is something that will continue. jonathan: i have a question from a viewer. will we finishe

i also want to ask you about mario draghi. been hearing him testify before the european parliament. when it comes to growth and inflation and monetary policy, he has traded a fairly neutral force as you would expect his final appearance before march 8. what are you expecting this year in 2018? are you expect in the hawks to come out more enforce? not really. if you look at what has happened to the euro, that will put quite meaningful downward pressure on inflation. the notion that the ecb is full hawks will parade sometime this year is misguided. you will see downward pressure on core inflation, particularly the imported inpatient -- inflation in the eurozone. they are in no rush to raise rates at all th this year. nejra: i have a chart and that does point to what jpmorgan is saying, that the outperformance of cyclicals have not yet peaked. how are you investing in europe sector wise? mike: even though base rates in the eurozone are going to remain at these low levels come i think you're probably going to see further steepenin

draghi to panic, considering he has a long-term plan, which he can stick with.lso, there in mind that next year he is going to leave ecb, and he may like to see everything kept nice and tidy and calm until everyone knows his successor, which could be a hawk. guy: yeah. interesting articles being written right now, is a view of the world. different views in frankfurt. one at ecb, one at bundesbank. thank you very much. mark cranfield. forcan follow the mliv go smart market analysis throughout the day. what have we got next? the mobile world congress opening in barcelona. we have exclusive interviews coming from that event. chief executives of bush telecom and seat. these things are being merged. what is a car show? what is a tech show? what is a telecom show? the venn diagram is blurred. all of that coming up. the market open is 19 minutes away. ♪ guy: 16 minutes until the start of european trading this monday morning. let's talk about the telco sector and figure out what's going on. executives are gathering in barcelona for the mobile world congress. we spoke ex

draghi? >> it is interesting. we were talking about the u.s. earlier.h europeference and what mario draghi is alluding to versus the u.s., europe is on the mend, but not coming through in earnings. we still need more help, whereas if you look at the levels of credit outstanding and bank loan growth in the u.s., it has gone above 2007 highs. in europe, we are still way below that and why we think europe is an interesting area in equities. as things go up again, you start to see more inflation, but we have to see the delivery of earnings for more people to get interested in the stock market come and we hope that will come through. -- market, and we hope that will come through. yousef: black rock disagrees with you and says if you're looking to make strong gains, you should be looking to the u.s. >> going back to the 15-your argument of where returns have ---year -- 15-year argument of where returns have been. >> we like japan, where we have had earnings deliver, and europe is somewhere where we see earnings pick up, but if you look at how the u.s. has don

who will replace mario draghi?here's on kind of eu decision-making driven by all sorts of political calculation. if a southern european takes the deputy's role and its seeming much more likely that the new president will be a north european and you have a very helpful feature on your website -- nejra: you say they might be german and that might be a faster pace tightening? stephen: i think a bit more than that. i think it's a complete change in style and direction if we have the very hot favorite. mario draghi is an italian. he is a goldman sachs alumni. he's a believer in intervention and he's created a narrative that because inflation was undershot in the eurozone, then we will allow to do all sorts of unconventional policies. i think they will completely reject that in my opinion. nejra: overall you are seeing declines in your hanging that largely on this withdrawal a stimulus globally or something else? stephen: i'm saying there's a trigger. jay powell is now the chairman. we have a new personality. what do we

but they will raise rates by the timemario draghi exits next year >> that's not priced in. the market is not accounting for a december depo rate hike. >> the eurozone -- the currency is less relevant, but if today's pmis, the start of a trend, our views about eurozone will fundamentally change at the end of the day if we get a situation where eurozone is still surprising on the upside, clearly mario draghi will want to -- his legacy will be i've taken the eurozone from a recession of financial crisis, i've done qe and have raised interest rates >> almost like janet yellen. >> yes >> let's talk about legacy mario draghi has to step down next year. we got the new vp announced. do you think that has bearings on policy or some steps they'll decide to do >> the interesting thing to us is the two key people communicating the ecb policy beyond mario draghi is the vice president and peter pratt, the chief economist. they always did the job of providing keynote speeches after every press conference, doing interviews, if you went on and read the speeches, they put it into context wha

not mario draghi personally. the , perhaps going to frankfurt and working as a governing member. guy: i don't do have to put this more delicately. have you ever been offered a bribe? gov. rimsevics: no, i have been hinted. these are very thin ice things. that hint?u report gov. rimsevics: no. guy: why not? gov. rimsevics: that is a good question. usually you think maybe i misunderstood, let's see how things are developing. the bank of latvia, the most important thing is we have nothing to do with commercial banking supervision. to thatt to come that issue, you say is a good question. credibility of a central bank is extremely important. we can put the regulatory issue on one side. but i'm curious to know why you didn't -- even the merest whiff of impropriety, why didn't you report that at that point in time? that would be a fair thing where you can say now, that happens then but i reported it. you can imagine, if i had known that this thing was going to develop like it has been developing, i regret that i did not

how important is this to mario draghi?ery important because with the ecb is saying is that they have a foundation of growth in the euro areas that is strong enough to allow them to slowly move away from the extreme levels of monetary easing. that's a credible statement. you look at these pmi's, particularly in the service sector, they are extremely strong. and they are going to be resilient to financial conditions in the form of stronger currency. the sector that is going to be less resilient to a stronger currency is the manufacturing sector and in particular, the manufacturing sector in the economies which are further behind the curve. really, i'm thinking about italy. if there is one economy in the euro area manufacturing sector that would be susceptible to slow down in the event of a stronger euro being maintained, it's that one. that's where i would show some caution and that's the economy that frank like, i'm following the most closely at the moment. guy: stick around. petr cech will joining us. i want to take you to

mario draghi is the president of the ecb.iving his opening statement to the european parliament. he says the ecb still can't claim success in its struggle to restore inflation in the euroyen area despite -- bureau area despite strong economic growth. we will discuss in just a minute. this is bloomberg. >> household incomes rise. this has helped to strengthen private consumption growth. ♪ mark: live from london, i am mark barton. vonnie: in new york, i am vonnie quinn. this is the european close on "bloomberg markets." time now for stock of the hour. fargo are thes biggest loser in the s&p 500. the federal reserve stopping the bank from growing until it addresses its shortcomings. joining us now is taylor riggs. a real slap on the risk for wells fargo. enough,interestingly while having its worst day since 2011, it's been up a little bit. if you want to call it a little bit of a recovery, there you can. there is some headline news and in the fundamental news. the analysts we were looking at were really looking at the fundamenta

gdp plus mario draghi and theresa may will both be speaking.ngs up, matt, kathy and mike. matt, what are we looking for from chairman powell? >> i was reading the transcript. there were enough interesting speeches from powell. i think he will have his eye on financial stability more so than we have seen for other chair people. with that in mind, even though we don't see risks to financial stability today, if financial conditions can ease as they are trying to tighten monetary policy, that will change. that will encourage the fed to a salaried the pace of rate hikes. -- to accelerate the pace of rate hikes. that is something that will continue. jonathan: will we finished near 2%? >> they will be substantially lower than they are today. as the market is forward-looking and by the time we get to the end of this year, we think investors won't have as bright and outlook as they do today. people are very bullish on everything today except treasuries. we think that will be different. kathy: we think the 10 year rates could peak of about three and a qu

at 9:00, mario draghi speaks to the european parliament. at 10:00, will get the data for new home sales. alix: we will take you through the top three stories. xi forever. also we have a bond bear, bond cold situation. morgan stanley says by. david: to go over it all, we are joined by lisa abramowicz. xiant to go into thisx forever. the committee announced that it proposed -- that is limited the president to two terms. this is in vance of a parliament meeting. -- this is in advance of a parliament meeting. -- that is growth not that growth of gdp but the rate of growth of gdp. blue line is the shanghai composite. that is level. he hasn't done to better job. lisa: they love him and he is trying to cement his putin like status. he is in a second five-year term. he is in his mid-60's. there are a lot of questions. he has a heart attack ahead of him last month -- a lot of -- he has a heart attack ahead of them right now. stocks and bonds in china are rallying because of political uncertainty is viewed as a good thing. as we saw and what we will

next year draghi's term is over.he head off the bundesbank is set to take over it's very political now in europe and draghi's task is complicated. >> peter spiegel, thanks for joining us. >>> energy has been a big factor as well over the course of the last couple weeks. the etf for energy down nearly 9% since friday. let's get to jackie deangelis with more on the slide in oil prices >> good morning. i want to put this in context. commodity prices themselves are not reacting as sharply to the market selloff as many expected. oil is holding under $65 a barrel copper was up in yesterday's session. gold did not spike that dramatically either. the relative stability in commodities is telling us there's confidence in global growth and demand. copper is a widely used metric when it comes to appetite for global growth because of various industrial uses. it's up 2.5% in the last month going a step further, the energy stocks, earnings misses from exxon, chevron, hiss, they have been dragging the sector down. that drop in the x

featuring comments from both jay powell and mario draghi.will have that conversation very shortly, this is bloomberg real yield. ♪ ♪ i am jonathan ferro, this is bloomberg real yield. it is time for the final spread. coming up over the next week, one of the main highlights will be the new federal reserve chairman jay powell testifying before congress. we will get a fresh round of economic data including numbers on gdp, plus ecb's mario draghi and theresa may will both be speaking. with me to wrap things up, matt hornback, kathy jones and david riley from bloomberg asset management. matt, what are we looking for from chairman powell next week? >> i've read every speech he has written, i've read the transcripts. jonathan: couldn't have taken long, there weren't many. >> there were a number of interesting speeches from powell. i think he will have his eye on financial stability more so than we have seen for other chair people. with that in mind, even though we don't see risks to financial stability today, if financial conditions continue to eas

draghi said there. >> yeah. the ecb is going to be pretty cautious, i think, given what's happened in the markets, it's unlikely to become less cautious that's true in the uk as well. the bank of england will be cautious no one is going to push this sti tightening except mr. powell that's the important question at the moment we're in a transition from janet yellen to powell it's no coincidence ma the markets had a wobble during this transition when grown greealan greenspan ah '87 crash happened soon after. ben bernanke, quite soon after there was a financial crisis >> can i throw the boj into that the p where i'm based in singapore, people are saying they could be the sleeper risk data is looking constructive they're slowly nudging closer towards 2% they have to be careful how they communicate, but how close is the boj to qt? >> that would be the unexpected development. that probably makes it the most likely development you're right that the japanese economy is picking up pace we are edging back to a sustainable

the central bankers from draghi to kuroda weigh in on inflation. anna: we hear from bnp paribas's cfo. good morning, everybody. 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 he

secondly, who is likely to replace mario draghi the second question we won't know for some time but ihink markets themselves are likely to still look at it with a fairly cautious view. so we also expect to see five-year yields particularly in europe go higher we've actually recommended this morning to be selling the five-year part of the european curves because of that >> guy, thank you very much for joining me this morning. >>> up next on "worldwide exchange," a call to action. the latest on the big push for gun reform in america. we're live in washington with orwi etails on that when "wlddexchange" returns that binge watch over the weekend thing. that back from the dead or robot-cowboy thing. or maybe it's watching satisfyingly-satisfying things. organic avocado on everything thing. doing it yourself or tagging a friend thing. more checking-in or checking out things. like faaaaaaaaaar out of this world things. far out. more revolutions in the making thing. that play like a girl thing. is it a '4 your eyez only,' thing. more of a 'no role modelz' thing. that triple-double thing. "is

what does that mean for mario draghi and his successor next year conrad. well the written rule in the eurozone is that if a man from the south or a person from the south becomes the vice president of the european central bank somebody from the euro zone's north. has to become the president so that now after the nomination of the who is the go in windows from spain as vice president of the e.c.b. the chances are rising for young man our man from the bundesbank here our reserve bank in germany to eventually succeed mario draghi when he leaves this post in the autumn of twenty nineteen conrad who's in first in frankfurt a financial correspondent thank you. now today it's back to work for traders in asia after the lunar new year celebrations hong kong's hang seng index closing off eight percent. and for traders the first day of the work week was dubbed the special new bold was a woman with a big posse that will be used to host ceremonies the companies that are listed in hong kong's hang seng index there's also an area that museum telling the history of the sto

guy: that is not mario draghi's role in the process.conversation with mario draghi or anyone at the ecb to explain what is happening. the ecb's credibility is on the line to a certain extent. it is important also because other countries are potentially looking to join the eurozone and this may or may not affect their ability to do so. seewill be interesting to if the ecb wants that in twice shy baltic a different view in countries gaining seats on the ecb governing council. surrounding what is happening, the credibility of the latvian central-bank, the latvian legal system, and the credibility of the euro -area to a certain extent. tom: what is the view of the bank from the politicians in latvia? the independence of the central bank should be absolute in theory. it is operating in the eurozone. it should be an independent central bank. of whatpart and parcel is going on. there is no difference in theory to any other bank within the eurozone. you have to see it within that context. tom: will this get fixed in the days, or go on and on. g

part, they have got mario draghi with peripheral yields. germany down 12 months. the periphery.he outlook for the periphery in this process? there are a few political murder -- hurdles? >> european bonds and collective thatng, it is a concept has been a study, clearly going through around in europe. the first instance they have is that more europe leads toward a banking in as well. means there is talk that debt in , aope could shake shift backdrop of the support mechanism, like the european monetary fund. mandate for a the new coalition, we may get more europe, which can only be great news. mark: thank you. columnist for bloomberg gadfly. funny: another last effort to avoid a critical deadline, trying to get a deal on immigration. the latest in a live report. this is bloomberg. ♪ mark: live from london. i am mark barton. bonnie: congress faces another self deadline one funding runs out it tonight. congressional actions. and, the funding extension is tied to legislation to it the so-called dreamers stay into the country. in march, the specter increasingly hangs over the debate. o

mario draghi is presenting the annual report to the european parliament.n in, a rate brazil and earnings out of tesla. thursday, the bank of england rate decision, with a potential u.s. government shutdown for the close of the week. tracy: macro and micro. the way we like it. let's talk about saudi arabian stocks. the best monthly performance in years. a key resistance level was broken, that could signal further gains. -- felipe, what was driving that performance? >> saudi has catch up to do. january was a good month. the index was going up more than 5%. had the indexwe trading at such levels was in july of last year. what we do know is that investors see some of the concerns that were mentioned. including the crackdown on corruption, how far this could go. this is seen as behind us. drivers are getting investors to look forward when it comes to stocks. the potential addition when it comes to emerging markets. sees this happening the first half of this year. combination of not as much bad news with potential good news. this is on a year to date basis. mate

it also won't make mario draghi the head of the e.c.b. very happy at all his goal is to keep the inflation rate at a level of two percent for the eurozone next week there's going to be a meeting off the e.c.b. here taking place in frankfurt just a few blocks from where we are and we can be very sure that not too many changes after monetary policy of the e.c.b. will be announced there has been this rumor and many have asked for that for a long time that we might see by the end of two thousand and eighteen accomplis stop off the bond purchasing program this was already had reduced in the last last month from sixty billion euros a month to only thirty billion euros a month but most likely regarding interest rates we're not going to hear anything new here at all ok i believe the markets aren't to happy today either and that's because the u.s. fed is expected to increase rates several times this year. yes exactly investors were closely monitoring the words of mr powell the new head off the fed even though he has been working for a long time th

mario draghi was addressing parliament. economic expansion is partly due to the renewed vigor of small businesses, which are a key engine of creation in our economy. while our confidence that inflation will converge towards our aim of below but close to 2% has strengthened, we cannot yet declare victory on this front. yousef: let's get back to hans goetti, the founder and ceo of hg research. as you listen to neel kashkari and mario draghi, what are your key takeaways? does it have any bearing on how likely you think the central banks will start winding down policy? >> first of all, the fed is using the wrong inflation, they are using the pc inflation, which has not been at 2% for the last seven years. i would think that they will have to recalibrate, if they really want to look at inflation. it has been too easy for too long. the fed now finds itself way behind the curve, and that is where these forecasts of four rate hikes come from. the fed will probably stay on course. the answer here is, it depends on what the fed will

it was the case when i was president and the case with mario draghi and also my predecessor. the united states of america, we have open market committee deciding, it is the same in europe. there is a visibility of the president. which is normal. he is not -- vonnie: he is a message bringer. at the trilateral commission, there is a question of whether north america, western europe, and japan are as close as they used to be. what is the primary concern of the group right now? confidence,ay that cooperation, between all countries that are systemic at the global level. which is the franchise of the g20 itself, is the franchise of the trilateral commission. we are doing what we can to exchange views of all persuasions, all sensitivities. it is very important. we are not associated with any association but we trust that the world, which is interconnected, which is so important in terms of links -- interlinking between all countries and all markets. between all economies. we need to have confidence and cooperation. and what goes in that direction is, for us, very important. vonnie:

guest: i think mario draghi has managed this quite effectively. think the transition from what i would call emergency policy settings to transitioning to more normal policy settings, i think he is managing that transition very well. i think you're right. this next year is the end of his term, and i think by the time he is replaced with the next ecb president, we will look back on this era as being an era of effective munication by the ecb president. nejra: does the ecb or the fed come with one of them has more potential to catch markets offguard this year? richard: given that both central banks rely on forward guidance, i think that the ecb is actually changing its policy from one of super accommodative stance to less accommodative is perhaps where he might get a little bit more surprised. the fed narrative is well-established. we know what they've been up to for the past two years. it will continue in that regard. there is possibility for some surprise from the ecb, although i think it will probably try to avoid that. do you think the euro will h

president mario draghi hinted that the strong euro wouldn't affect the block's economic prospects but he said global factors were a wild card that could have a negative effect the european commissioner for economic affairs pierre moscovici said the eurozone would maintain its momentum at least into twenty nineteen but he hinted at worrying issues including a lack of investment persistently high youth unemployment and stubborn public debt . of all sounds very good about will it remain that way let's bring in mark was very he's an economy economists rather at the university of sun-god in switzerland marcus druggy mentioned global factors as a wild card but does it does he mean with that. always wild card he probably means the wia guys i mean north korea can be on the phone and mr trump you never know what's going to be happening in the next tweet so global factors could be nice or it could be political issues in europe take the german grand coalition discussions which hopelessly hopefully will finish today we have elections in italy to come up so there are a lot of political factors whi

as pressure rises on draghi, despite today's inflation ontistics, pressure rises draghi to push through full taper. alix: thank you very much, great to see you. this is bloomberg. ♪ mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. alix: "bloomberg daybreak." this is -- this is "bloomberg daybreak." theresa may saying now u.k. prime minister could agree to the eu draft brexit deal. she is standing by the commitments made in december. on the flipside you had michelle barnier saying there is no cherry picking when it comes to brexit. that would be an illusion. he also says it is really the u.k. that has been dragging their feet and that a transition period is not a given, vital for businesses and is not a given that the ecj will not play a role in that. may standing firm, barnier standing firm. wha

up first, from a mario draghi speech to the d.o.a.ate decision, we take a look ahead to some of the biggest events next. this is bloomberg. ♪ yousef: this is "bloomberg markets: middle east," line on bloomberg tv and radio. let's get you up to speed with the regional equity market action. you looking at the dubai exchange come away down -- exchange, the lowest level since november 2016. saudi stocks down 6/10 of 1%. qatar has rallied quite a bit into 2018. all numbers of the exchange down , overall loss of 2.7%. israel as well joining the big movers, the biggest move in quite some time for the israeli exchange. let's get you up to speed with the latest business flash headlines, starting with the story of saudi arabia. the state oil company aramco has kept pricing to asia the same for the second state month. the first time since 2007 at prices have stayed the same for back-to-back months, aramco had previously arranged prices for five straight months. the ceo of dubai holding has left the firm less than a year after taking the helm of

lauren: investors in europe waiting the european central bank president mario draghi.posite index and a jump in about one and a quarter% overnight. >> a fire inside an airplane. so pour into the cabin and the passengers are forced to flee. what happened? "fbn:am" continues right now. >> 530 in the morning. monday, figure 26. thanks for joining us. i'm lauren simonetti. trying to guess where pitt and connell mcshane filling in for you. i do remember the first half of the show selected back and everything that happened for the next half of the show. lauren: at 530 basically on the.now. kind of accessed at the time. we have a long-awaited democrat intelligence memo released to counter the so-called republican nuÑez memo. arguing the fbi in and justice department acted appropriately and did not abuse surveillance power to attract campaign. connell: kelly wright is with us this morning. good morning, kelly. reporter: good to see you both. hope you're doing well. this is the memo, 10 pages in no case for the american people in terms of dealing with dueling memos. the 10 page

the next person who takes over for mario and draghi has big shoes to fill.u're hoping it is a german text the top spot? >> i think that may be the case. it is a selloff environment for european bond yields that have been anchored by the ecb program, by lower yields. there is a different cast of characters and we are trying to make expectations based on what they are telling us. set andwhole different it could be a whole different ecb next year. do you react to that, should you respond to that? >> not immediately but i think there may be a shift in focus. much like it has been a pro usa or pro-america focused -- maybe there is a pro-german focus within the ecb or within the european union. that could be to the detriment of some other countries. imagine the damage done if you have an aggressive repricing of sovereign yields and credit? let's say you have a more conservative central banker in the hot seat -- i would they want to do that anyway? point --ing up a good given where europe is in the business cycle, it might matter a little bit but not that much if w

powell said before congress, and will get a fresh round of economic data, personal spending, and mario draghiheresa may will be speaking. up, matt, wrap things kathy, and mike, and david rally from bloomberg asset-management. what are we looking for from chairman powell next week? >> i have read every speech he has given and every trans cript. his eyeis going to have on financial stability, more so than other chair people. with that in mind, even though risk today, if situation eases, that will change, and that will encourage the fed to perhaps accelerate the pace of rate hikes. that is a big that in our view it will keep flattening pressure on the yield curve. jonathan: when of our clients has written in saying he is sticking and coal. the message from us is clear, we expect yields to and lower than they are today and substantially lower as the market is forward looking at credit that we get to the end of the year we think investors will not have a bike outlook as they today. people are bullish except treasuries, it will be different by the end of the year. >> we think today. rates could pea

draghi told e.u. lawmakers he is sticking to his stimulus plan.ot ready to reduce support for the euro area despite increasing confidence inflation will pick up. he told the european parliament that economic slack may be larger than thought. he said the bank must continue to provide the accommodation required amid continuing uncertainty. brothers have had their assets frozen in india. the saga started in 2008 when the brothers told -- a department of justice inquiry in heted in him admitted sold adulterated drugs. gthe man fired three years ago, seen making a comeback. he was sacked by jacob zuma in 2015, but sources tell bloomberg he had the support of the new president, ramaphosa. the current finance minister was seen going back to his former job as minister. the formerral -- general may contest india's next presidential election, which would be a return of the bitter race. the party indicates he will be its candidate when the decisions are in august. care andular in health infrastructure, but has fallen short of a promise to boost growth. globa

it sounds like mario draghi wants to step back on his inflation.talked about inflation and the need to get there. what makes sense to take some money off of the table -- would it make sense to take some money off of the table? >> the market has been anticipating that perhaps we did not get an interest rate hike from the ecb this year. with the bank of japan, the market was convinced that the bank of japan would be stepping back. i would say that that type of speculation as a little bit ahead of itself. both mario draghi and kuroda have been pushing back against this speculation. i think we are likely to get a continuation of that dovish talk. anna: we have seen some strong data out of germany. does that involve the hawks at the ecb? >> i think it keeps the hawks at they -- bay. the hawks in germany are not going to go away. the pay deal that they have got, it is quite substantial. i think it is very interesting, because one of the reasons that we have low inflation is because wages, wage growth is so low. without wage growth you are not going to ge

will we get draghi 2.0? kathleen: no. nick: no. jeffrey: yen is vibrant. jonathan: there you go.hleen and nick, great to have you with me. we will be here the same time next week. this is "real yield," bloomberg tv. ♪ ♪ yousef: welcome to the "best of bloomberg markets middle east." i am yousef gamal el din. here are some of the major stories driving headlines from the region this week. crude comeback, oil recovers ground following its worst week in more than a year. the iea says the global surplus has almost been cleared. as u.a.e. report earnings we hear exclusively from industry cfos. and the sky is no limit for air arabia as it beats on full-year income. the ceo lays out the carrier's ambitions for 2018 in our exclusive interview. hundreds of global political and

will we get draghi 2.0? kathleen: no. nick: no. jeffrey: yen is vibrant. jonathan: there you go.hleen and nick, great to have you with me. we will be here the same time next week. this was "real yield," this is bloomberg tv. ♪ scarlet: i'm scarlet fu. this is "etf iq." where we focus on the assets, risks, and rewards of exchange traded funds. ♪ scarlet: are we on the cusp of seeing the whites of inflation 's eyes? how it is causing a shift in portfolios. ibm's watson is now stoc

and mario draghi the new and departing directors of the european central bank sent a secret letter to bonus going to be exposed by the korean adela's newspaper. they remind him of the basic measures expected of it in a. structural reform favoring competition and italian balance including the full liberalization of local public services through large scale privatization. that secret letter. caused quite a backlash because the e.c.b. has no institutional jurisdiction to enforce policy making in an e.u. member state. it was judgment the judgment of the e.c.b. and what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the. was under attack one of. the berlusconi government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. courts intervened and said no you cannot remain should use. legal provisions that i've been repealed as a result of a referral. this caused european commissioner olli rehn to write

will we get draghi 2.0? kathleen: no. nick: no. jeffrey: yen is vibrant. jonathan: there you go.hleen and nick, great to have you with me. we will be here the same time next week. this was "real yield," this is bloomberg tv. ♪ 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. scarlet: i'm scarlet fu. this is "etf iq." we focus on the assets, risks and rewards of exchange traded funds. ♪ scarlet: are we on the cusp of the whiteswife of -- of inflation eyes? ibm's watson is now stock picker, sort of. we talked to the team behind aieq.

mario draghi uses verbal intervention as well.re you thinking in terms of the currency wars in 2018? viraj: we saw it with mario draghi given a verbal warning to the u.s. administration last week. i think it's only of currency start trading away from fundamentals. let's not get carried away and try and drive the dollar away from fundamentals. we know the dollar is structurally weak that let's not private aggressively lower. that's one of the reasons mario --ghi did not actively that's what has been driving the euro. the ideas that central banks are not necessarily trying to get involved, but there is certainly a bit of noise around here, cautious that things are moving maybe to quickly. anna: there are a few opportunities to change the environment 2018. the trump administration likes to talk about bilateral trade instead of multilateral trade deals. i was interested to see that in the export data from china we saw the strengthen their currency was damaging some of the chinese export engine. that's been such a part of the globaliza