anti-e.u. it is a comprehensive and carefully considered plan that focuses on the end, not just the means. with its eyes fixed further on the future and on the kinds of country we will be once we leave , and reflects the hard work of many in this room today. tirelessly tod bring us together and to prepare this country for the negotiations ahead. -- thesereally know debates have been discussed at length. more who urge us to review , such as a blow-by-blow details of our negotiating strategy, areas in which we might compromise, the areas where there is potential trade-off -- it is not in the national interest because this is not a game or opposition's time for opposition's sake. it is a crucial and sensitive negotiation that will do find the interest as excess of our country for many years to come, and it will be vital that we maintain our discipline. that is why i said before and will continue to say that every stray word and every media report will make it harder for us to o get the right dedea

and the e.u. it's a comprehensive and carefully considered that focuses on the end, not just the means. with the sides fixed on the future and the kind of country we will be once we leave. it reflects the hard work of many in this room today who have worked tirelessly to bring it together and to prepare this country for the negotiations ahead. and it will be debated and discussed at length and that is only right, but those who urge us to reveal more such as the blow-by-blow details of our negotiated strategy, the areas of which we might compromise the trade-off will not be acting in the national interest because this is not a game or a time opposition proposition sake. this is a crucial and sensitive negotiation. it will define the interest and success of our country for many years to come. and it is vital we maintain our discipline. that's why said before and will continue to say, with every word and hyped up media report is going to make it harder for us to get the right deal for britain. that's

and the e.u. it is a comprehensive and carefully considered plan that focuses on the ends, not just the means, with its eyes fixed firmly on the future, and on the kind of country we will be once we leave. it reflects the hard work of many in this room today who have worked tirelessly to bring it together and to prepare this country for the negotiation ahead. and it will, i know, be debated and discussed at length. that is only right. but those who urge us to reveal more -- such as the blow-by-blow details of our negotiating strategy, the areas in which we might compromise, the places where we think there are potential trade-offs -- will not be acting in the national interest. because this is not a game or a time for opposition for opposition's sake. it is a crucial and sensitive negotiation that will define the interests and the success of our country for many years to come. and it is vital that we maintain our discipline. that is why i have said before and will continue to say that every stray w

anti-e.u. to a vote -- between the u.k. and the e.u. to a vote.: may said that government is determined to make a clean break from that you -- the e.u. >> we will seek to avoid a deceptive cliff edge and do whatever we do -- can do as we move towards our new parliament. optimistic.mains julie: let's get back to davos, where erik schatzker sitting down with the head of syngenta. erik: thank you. that would be michel demare. thank you. let's begin with the obvious. there is some concern, and you can see it in the price of your stock, that the $43 billion sale of syngenta to chemchina will not go through. comment onannot market prices. they are what they are. still confident. it takes time. gotten approval last august. the agenda is the ftc in the u.s. and the european union. finally will be the approval of china. it takes time. all of the things happening in the industry, although the competitors marching together, it will take time. erik: is anything you might run into that investors would be worried about? michel: really not's. of announcement dea

>> as regards growth in e.u., e.u.'s economy is ready for a number of years back to growth, this year we expect 1.6% growth, .:'s g.d.p. is god levels, unemployment down to 2009 levels, what we need to do now first is really not to jeopardize this recovery, to continue with stimulating investment, with structural policies. with fiscal also we are put manager emphasis on growth so that people also feel all parts of society the benefits of this economic recovery. eric: we've heard a will the about that here at the world economic forum, it sounds great and should be great but is it too little, too late? the financial crisis was almost a decade ago, hard to believe, but here we are eight -- almost 1/2 years later. only now, only now are we talking about inclusive growth. something is wrong with that. >> well, clearly we have been dealing with financial and economic crisis overtaking this crisis but the consequences of this are still felt including the social consequences. we need to deal with those social consequences. it m

would be a member of the e.u., but they do not require it. relations with the e.u. a matter for the u.k. government. plays anconvention important part in the operation thehe u.k. constitution, as policing of its scope and operation is not a matter for the court. we thank all those who have played a part in helping us determine these important legal questions. andes of the full judgment of a summary version are now available on the supreme court website. the court is now adjourned. francine: it could not be any clearer, the supreme court saying that of course article 50 needs to be triggered through parliament, however if you look at the decision it was 8-3, which means we do have three dissenters. there has been a little bit of movement, nothing huge. i think a lot of it was already priced in out of the stoxx 600 gaining a little bit, up some .4%. loss.d-dollar pairing joining us now, anthony brown and still with us is gilles moec. reaction, what does it actually mean for the brexit members tor your does not mean they are any wiser. is the: clearly this result every

outside the e.u. are incredibly bright. >> people understand that the decision with seismic consequences. francine: and the still uncertain aftermath. takingcan you regret back control. >> the economic consequences of brexit will be more severe. >> government is a pro business government. francine: the financial sector suffered considerable pain. >> the sentiment is bad, evaluation is bad and the results are really bad. >> there needs to be a cultural change. it is unacceptable. francine: why europe's central bank tried to ease the region into growth. >> this has changed from an external fx game to a truly domestic demand. francine: it was a year of turmoil in turkey and and down for oil and controversy and regulation and transformation for saudi arabia. >> we are talking about the biggest economic shakeup since the kingdom was founded in 1932. francine: join us for a look back at 2016 on "bloomberg best." ♪ francine: welcome to this special edition of "bloomberg best." we will review the most importa

donald trump says we're indifferent to the future to have e.u. the e.u. is formed to put aside war between france and germany, unit europe in peace, it's done that and we should support it. >> yang: less than a minute left. mr. ambassador, overall, what does this say about what's ahead for u.s.-european relations? >> a very rocky start for the administration of donald trump. i have to believe that rex tillerson u the new secretary of state incoming, jim mattis, the new secretary of defense, they understand the value of n.a.t.o., they understand that we're the leader of the west and i hope very much donald trump will agree with them and shift these positions. >> yang: who's speaking for the administration? >> that's the question and we'll need clarification on that. to underscore it, european solidarity, unity, it is an incredibly trade and investment partner to the u.s. we cannot want europe to be divided, to fall apart. they're too important to u.s. national security. 70 years ago, another great secretary of state and defense george c. marshall made his

leaves the e.u., it will leave a hole in the e.u. budget of about 11 billion euros. that money goes to fund projects in eastern europe so if theresa may says, we will still pay that, perhaps eastern european countries will say we will offer you a few things in return. there is things like the 3 million e.u. people living in the u.k., what will their status be? defense.things like they arer brexit, going to rely on the u.k. defense. there are many ways theresa may can play one european country off another, and that will be vital when negotiations start. mark: will these strategies work? ian: at the moment, it does not look like it because they are all singing from the same song sheet in the e.u. these negotiations will go on for two years or more, and they could get it or, they could get arduous. -- bitter, they could get arduous. it benefits everyone to get a good brexit deal in the end. mark: our e.u. government reporter. bloomberg television, we will take a look at gold since the u.k. referendum, that is coming up in battle of the charts. this is bloomberg. ♪ mark:

since june's e.u. referendum, the pound has fallen 20% against the dollar, to levels not seen since 1985. on friday she says she will trigger article 50 by the end of march third since then, the british press has been reporting that may will announce a hard brexit in her big speech on tuesday. this would mean calling -- pulling out of the single market, the european customs union, and the european court of justice to regain control of immigration. the idea of leaving the common toket is like kryptonite traders who backed the pound. every big speech given by may has called us -- has caused the pound to fall. at the end of fall when she launched her tory leadership bid, the pound tumbled. now it is back to near record lows after may announced britain will not try to cling onto bits of e.u. membership, in her new year tv interview. many traders expect the pound to go as low as $1.15. it would make imported goods more expensive. let's take a look at the markets now. all indices trading in the red this lunc

the e.u.there are two things britney's to do -- it is clear -- there are two things britain needs to do. they can negotiate many things, but it is very important for britain to step aside and renegotiate with the rest of the world with their relationships on trade and financial services. >> the british prime minister mated clear that it is going to be -- the british prime minister made it very clear that it is going to be difficult for brexit -- post-brexit. what is she going to do? everyone thinks it is like you pick up a mobile home and move it across. this is real people's lives. keep calm and work out a transition plan. >> citigroup and goldman sachs wrapping up wall street's big bank earnings. reporting results that beat analyst's estimates. >> after a year of steep declines, that revenue uptick is the key focus. >> it is 2017. the crisis is ancient history. goldman sachs is so much more profitable than morgan stanley in the fourth quarter? . >> it is called interest rates. goldman sachs

of course, this might add some pressure on the e.u.may cantiate negotiate something with donald trump. guy: the reaction from the french is really indicative of what the story is, particularly the french election as well. caroline conan in brussels. still with us, otto dichtl. if you are looking at the u.k. banks and financial sector at the moment, where does the bigger advantage lie? does it lie in doing some sort of deal with the united states and harmonizing with new york and london? at the moment, new york looks like it could be the real winner from all of this. or does it lie in looking too far and therefore allowing some sort of deal with europe? how would you be positioning yourself if you were the united kingdom financial sector? otto: well, i think it is probably a mix of what you described. it is clearly already in the press that many banks are looking at alternative locations in the e.u. for at least part of at the samess, and time, there might be some shift of some activities also to new york. but i think both. i mean, clea

does as well. , of worries about theworries follow from the e.u. does as well.hey going to take the full two years to negotiate this? we do not formally take of you on that but if you consider the range of issues that have to be covered, and negotiating e.u. 27 is likely to take, yeah, it will take the full two years and indeed, at the two-year deadline, there is not likely to agreement on a range of issues so a transitional arrangement will be necessary. we do not think we will get clarity on that until later in the day so we are worried about momentum and sentiment for the u.k. economy over that two-year period. we have got david davis coming to the house later on. the speaker of the house of commons will be the final arbiter of what amendment go to this. how protracted could this -- is this the most messy part of it? once it has been drafted, you're expected to be expedited through parliament quite quickly, because the upper parliament house is a mess with this bill. it could be the death knell for them. svenja: they still have full power to do so. the proble

timesa may may have named bowers as the new ambassador to the e.u.is barely 24 hours after his other disaster resigned. mountinge this as a criticism that she has no plan for brexit. there was a lack of preparedness for leaving the european union. morris is still with us. last year you downgraded the u.k., the institutional strength from the years passed wasn't there. that was your argument. now it has been a few months. we are seeing the positions if anything, digging themselves deeper, becoming more of a polarized conversation. it is hard, brexit becoming more uncertain. moritz: we maintain the negative outlook even on the downgrade. in my mind, the likelihood of a hard brexit has been increasing over the last couple of months, hard brexit meeting the u.k. would leave the e.u. without any sort of substitute an agreement in place. the agreement for that is the lack of time. there is an awfully short time to negotiate such a complex web of relationships. the second is really the starting positions of the negotiations being so far apart, but strugglin

clearly, and i think one of the things that e.u. resignation has highlighted, is the e.u.n army of negotiators. we are in a difficult position. francine: so yesterday we had the news of the u.k. ambassador resigning with a memo that was pretty brutal in terms of intimating or insinuating the reasons why he left. do you look at that and change your portfolio or take a longer-term view? otherwise every week you would be changing your exposure. mark: i think you have to take a long-term view. it highlights that we are ill-prepared for what is likely to be a seismic event for the u.k. economy. francine: when do you see negotiations -- we know they will start in march. where do you see them ending, steven? steven: white some period of time. the problem with the exit negotiations is the timetable is on the e u's side, as well as the manpower argument has just highlighted as well. i think the key issue for the u.k. would be to try and make sure that the talks are elongated sufficiently over time in terms of the new relationships between the u.k. and the e.u. once the u.k. has to

and the e.u.ing germany to lift domestic demand and imports to reduce the imbalance and fuel global growth. that is it from the business desk. now brent has got that sinking feeling. brent: a sinking ship, thank you very much. it is at the bottom of the atlantic ocean, very few of us will get to see what the wreckage of the titanic looks like close up. but that is about to change the code and immersive titanic exhibition is about to open on dry land. this is an likely -- leipzig. reporter: the titanic, the collect -- luxury liner sank in 1912. there have been many meanings attached to the old faded ship. -- you'll -- ill fated ship. now this person has immortalized what was once the world's largest passenger liner in a huge diorama. ♪ >> it is a great subject, the titanic was a genuine symbol of the euphoria about modern things back then, but the tragedy as well. it is a bizarre type of beauty that happened over a century ago, and we have not forgotten the accident. invite other thoughts that coul

it puts the country on course to leave the e.u. in 2019. >>> political and business leaders have gathered in davos, switzerland, for the annual world economic forum. xi jinping spoke out about protectionism. >> translator: china is clearly opposed to protectionism. no winner will emerge in a trade war. >> xi said globalization should not be blamed for every problem such as international financial crises. china is becoming impatient with trump. he suggested high tariffs on chinese imports. the president-elect accuses the country of manipulating its currency to put u.s. companies at a disadvantage. xi rejected that criticism. he said beijing has no intention of giving chinese products a competitive edge by keeping the yuan weak. >>> putin has argued that allegations will negatively effect bilateral ties. he said there are efforts to undermine trump's legitamacy and they will try to tie him down. >> i don't know mr. trump. i have never met him, and i don't know what he will do in the international arena. that's why i have no reason to

joe: to discourage the e.u. from theng -- she discouraged e.u. stance against england. there was a lot of cross-border manufacturing flows and changes. it would hurt a lot of european countries if they try to hurt the u.k. is she right about that? megan: she is to a certain degree. there is some truth, and trade wars hurt everyone ultimately. but i think also what european leaders have to go up against is how they are going to fair in upcoming elections relative to anti-european factions and their own countries. so it will be primarily domestic, not really thinking about the trade aspect. scarlet: one thing in the u.s. might be a border tax adjustment. donald trump said to the wall street journal over the weekend, anytime i hear border adjustments, i don't love it. usually means we get adjusted into a bad deal. that is what happens. when you did analysis, this is something that was part of paul ryan's proposal. megan: it is supported by a lot of republicans who are not traditional protectionists actually, more moderate. but trump said it was too

e.u. 27 is a block. some sort of understanding early on would be potentially a blow to the u.k. trade as we move through brexit. and then i think the point guy made, which is that the u.s. has a new administration. many fear they have a protectionist agenda. yet trump has come out and said i'm a deal maker. it is very important to watch the mood music from his perspective. the u.k. is a major trading partner for the u.s. but in terms of exports to the u.s., it runs at 1/6 of the size of the exports that mexico sends. mark: a trade surplus with the u.s. john: that's right. with the u.s. it is a relatively modest amount if you look at the broad u.s. economy. it is a grownup trading partner. the u.s. can strike bilateral deals or at least look to do that or perhaps take some of the air out of the -- some of wind out of the sails of those pointing at the trump administration saying protectionist, anti- free trade. mark: how do you expect sterling to react? let's say we get some sort of mood mu

guy: 2016 has been busy year for margaret and the e.u. commission, and with political populist movements reshaping trade, the commission stands to play a significant role again in 2017. now back to brexit. after the sudden shock of the referendum, instors and policy makers found themselves in uncharted territory. here is a look back at some of the market action and ensuing reaction from the second half of the year. jonathan: june 27, 1985, that is how long you have to go back to find sterling trading of these kind of levels, a fresh 31-year low on the cable rate at 129.80. >> formal u.k. property ones frozen and investors seek to dump real estate holdings in the wake of the brexit vote. three have suspended trading in at least 5.7 billion pounds. >> the level of panic is clearly spreading. you have more than half of the real estate fund in the u.k.by value frozen in the space of four days. it is incredible. >> how much will commercial property assets drop? can it touch the 2007, 2008 level? >> i don't think so. we are in a very different

leaving the e.u.nd becoming a steady-state, the fundamentals of global free trade and the balance between national interest and globalization is also in play. one of the reasons i think theresa may way -- maybe thinking about caution is because we do not know what the relationship between the u.s. and europe is going to be in terms of trade. you mentioned the netherlands elections and in april the french elections, there are so many variable elections. if i was may i would be step by step, she has got to get some more principles out today. life, darkprevious and i used to be involved and we were heavy it -- mark and i used to be involved and we were heavily involved with global trade. there is a definite danger that if you end up with an american-china confrontation -- essentially chancellor merkel suggesting to trump, we don't need you. this idea of a nato is an antiquity. ifncine: i would be careful you are a politician because you are talking to your own electorate. tom: they do that in davos? fran

was a country leaves the e.u. single market. the financial sector is interested, considering london's place as the european financial hub. hsbc has gone on record saying they are ready to move jobs from london to europe. we have more on the story. reporter: as pressure mounted for british prime minister theresa may, she took the stage brexits to seell a post britain. >> at the heart of the plan i set out this week is determination to pursue a bold and ambitious free trade agreement between the u.k. and the european union. reporter: for some of the international bankers, may's promises will not cut it. her announcement on tuesday is that britain would leave the e.u. single market. that is a big problem. as single market rules allow them to sell products throughout the e.u. without worrying about local licenses. two of london's largest lender's, ubs and hsbc, have already announced they will shift 1000 jobs each out of london. while j.p. morgan chase is contemplating moving 4000 jobs. goldman sachs in barclays are taking a wait-an

things like the e.u.ato, and the various forms that have been formed in the post-cold war, post second world war international order that kind of have kept the world together. the forms that have kept things going, and a desire to create a world based on bilateral relations versus the lateral institutions. that would be one of the shared areas of interest. guy: let us just put this all in context. we have a president of the united states who is rapidly changing the relationship with the united states has with a number of countries. it is going to feed through into changen politics and the relationship with the global international order. this is, if you were to have written one year ago what vladimir would want to achieve -- daragh: don't give vladimir putin a number of openings. the question is, this is kind of the story of the dog that catches the car. once it does, it does not know what to do with it. whereas we would assess that the kremlin regards, for example, the european union as anniversar and ad

the e.u. summit is two days later. potentially, we see movement before the end of march on article 50. that will depend on how quickly this process goes. this is the second of a 10 stage process. after the comments, it goes to the lords, and could get kicked back to the commons after that. we will see at the committee and report stage. we already know that labor wants to put forward seven movements. it could be we will get a bit more detail on how the timing is looking over the next couple of days. francine: but how can -- what kind of robust debate are we expecting? if you are a lawmaker and the bill says you respect the will of the people, it will be difficult for you to go against it. anna: yes, and that will be the point that david davis is going to make. he is going to say "trust the people." at noon, we will hear from him. he said in a statement overnight, we asked the people of the u.k. if they wanted to

vote to leave the european union is how britain would extricate itself from the e.u. laws and regulations. but leaving the european union means it leaves other relationships particularly with it partners like the united states. there is an opportunity here. for america it gives donald trump an opportunity to show what. >> real trade relationship

you also have to find out what the e.u. wants. how much do we know about the e.u.much they are willing to give in to the u.k.? janet: we don't know very much. the rest of the e.u. did not want the u.k. to leave him a so it is difficult for them to really make the first move. the u.k. needs to come up with its plan of what it wants and put it to the e.u. and see whether they can find some common ground. e.u., the fact that the u.k. has remained resilient, it is not really in the interest of the e.u. to give the u.k. particularly attractive deals. it sets a precedent for other countries to seek similar. francine: janet henry, roger bootle, and simon kennedy from our brexit team here at bloomberg. "bloomberg surveillance" continues with tom keene and i. ♪ million jobs per year. panic move. the offshore bond falls as attempts from -- you want falls as attempts from the chinese currency regulation comes in below estimates. president-elect donald trump moves closer to the white house. this is "bloomberg surveillance." i'm francine lacqua in london. tom keene in boston. w

alongside this continued commitment, i'm also clear that e.u. nations must similarly step up to ensure this institution that provides the cornerstone of the western defense continues to be as effective as it can be. yet the most important institution is and should always be the nation's stage. strong nations form strong institutions. and they form the basis of the international partnerships and cooperation that brings stability to our world. nations, accountable to their populations, deriving as declaration of independence puts it, their just powers from the consent of the government, to join international organizations or not, they can choose to cooperate with others or not, choose to trade with others or not, which is why it's the countries of the european union wish to integrate further. my view is they should be free to do so, because that is what they choose. but britain, as a sovereign nation, with the same values, but a different political and cultural history, has chosen to take a different path, because our history and culture is profou

according to downing street, may and pen to let the hard-line approach from the e.u. including 12 specific rarities. expected to save the u.k. wants to trade as freely as possible, but will not be passed in, half out of the e.u. the speech expected to offer more hands that britain could save the single market. we'll be bringing you her remarks live here this morning starting at 6:45 a.m. eastern time. lauren: there's back and there's this big announcement from general motors. gm expects to unveil plans to invest a billion dollars in its u.s. factories creating or keeping 1000 american jobs. the announcement comes after building their cars in mexico and then shipping them to the u.s. gm says however the decision was made months ago and is not a risk wants to criticisms from donald trump. nicole: south korean automaker hyundai will invest $3 billion in u.s. landfall as president. also considering building a new u.s. factory. the five-year plan will focus on research and development and maintaining factories in alabama and georgia. lauren: also following breaking is that

may didn't support leaving the e.u.her, but she's now pledged to see it through, insisting it will be a clean break. >> brexit means brexit, and we're going to make a success of it! >> reporter: last april in london, then-president obama warned that a vote to leave the e.u. would jeopardize a future u.s.-u.k. trade agreement. >> because our focus is in negotiating with a big bloc, the european union, to get a trade agreement done. and the u.k. is going to be in the back of the queue. >> reporter: mr. trump, however, was a vocal brexit supporter. >> people want to take their country back. >> reporter: nigel farage, the man who led the brexit movement, campaigned with mr. trump, and visited him in new york just days after his election. atop may's agenda now is to get president trump to commit to negotiate a bilateral trade deal as soon as britain leaves the e.u. yet president trump vows to "put america first," and has already issued some protectionist orders, like insisting new oil pipelines be built with american steel.

but alongside this continued commitment, i'm also clear that e.u. nations must similarly set up to ensure this institution that provides the cornerstone of the west's defense, continues to be as effective as it can be. yet the most important institution is and should always be the nation's safety. strong nations form strong institutions. they form the basis of the international partnerships and cooperations that bring stability to our world. nations, accountable to their population, deriving as the declaration of independence puts it, their just powers from the consent of the government. confused to join international organizations or not, they can choose to cooperate with others or not. choose to trade with others or not. that's why it's the countries of the european union wish to integrate further, my ability is they should do so because that's what they choose. but britain as a sovereign nation with the same values but a different political and cultural history has chosen to take a different path. because our history and culture is profoundly int

e.u.ling is looking really negative this morning. it has kind of been a double low in the past couple of weeks since the recovery from the flash crash. we are seeing the bloomberg count in texas also breaking its clean, nice, upward trend since the flash crash. there is a lot of dollars uncertainty. it is looking quite bad after may's comments. >> japanese drugmaker cicada pharmaceutical will expand its footprint in america. -- footprint in the u.s.. . it is a $4.6 million deal the company is expecting to close by the end of february. walk me through the math that it took to get to $24 a share on a stock that was trading at $13. >> well, you know, if you look product byproduct -- product by product we look at how much the , product is. >> this is the lung cancer product? >> this is the lung cancer drug. we believe it can be the best in class. we believe it can be worth $1 billion a year. that is how the math works. if you believe this product has the potential, then you can price it. >> al

no country has ever left the e.u.de deal struck by norway and switzerland, two countries never a part of the e.u. and canada in turkey might provide a guide to the u.k.'s future. ♪ michael: that was just one of the many quick takes you can find on the bloomberg. you can also find them on bloomberg.com along with all of the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i'm michael mckee. this is bloomberg. ♪ ♪ the pound takes a hammering on reports theresa may is aiming for a so-called hard brexit. president-elect will trump shakes the foundation of transatlantic relations, dismissing the eu and calling nato obsolete. lineng takes a tough saying the one china policy is not possible. and korean prosecutors say they will decide whether to issue an arrest warrant for j wiley.

would leave e.u.e market, as she spoke with the heads of the european commission and the european council and they told her they would negotiate in the spirit of goodwill. korea willsouth decide whether the samsung group heir apparent should be arrested and that influence tunneling scandal. they appeared at a hearing today, being invested for bribery, embezzlement, and perjury as part of a scandal that led to the impeachment of the south korean president. george h.w. bush has been hospitalized in houston, according to two local media outlets. no word what he is suffering from although his office expects him to go home in a couple of days, the former president is 92. global news 24 hours a day, powered by more than 2600 journalist and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. bonds,uities, currencies, commodities, 14, not the going on in the market, two didn't spread called the trunk litmus paper of the market system and is market -- and that is boring. -- you want tod

will have to pay to the e.u., whether the e.u. will ask too much and force the hand of the u.k.chard: if we wanted to have access to the single market on the same basis that we had access previously, and almost certainly, we would have to pay substantial amounts into the e.u. i think the politicians and the prime minister are telling us that is not what brexit means. they are not going for a halfway house. i think they are going for full brexit. francine: what happens to the pound, more weakness? richard: there is the potential for more weakness. careless words from politicians can certainly drive sterling lower. but i would say that at these sorts of levels, the pound is undervalued. on a medium-term view, i think the pound will probably gain value, but there is going to be a lot of volatility. francine: thank you so much for now. richard jeffrey of cazenove capital management stays with us. up next, as your repairs for a year of elections, -- as europe prepares for a year of elections, we bring you analysis of the latest data. ♪ francine: this is "bloomberg surveillance." grow

. >> if questions throws the united kingdom's exit from the e.u.. may not have to leave the e.u.? no. i'm sorry. you do not get out of brexit. you do not, no. because brexit inspired everybody else to screw up their own countries! people running around burning down (bleep) chanting brexit brexit brexit! america elected mr. brexit! now you will try to breezle out of it? no! britain's, like, oh, we didn't realize we had a backdoor. no, redidn't realize -- america's like, you mean -- no, we don't. you said we were getting face tattoos. no, i thought it was permanent but it's not. i've got a dick on my face! looks really nice! no! you brexit, britain! get out! we suffer together. ( laughter ) we are suffering. because, you know, it's been almost a week, a whole week since donald trump became president -- ( audience booing ) -- yeah, but it feels like a lot longer. in trump's presidency, one day is like a year. i mean, this was me last friday. look how innocent i was. look at me, look how i've aged! it's hard to believe that in less than seven days we'v

a european leader puts the trump administration on a list of threats to the e.u. along with russia, china, and isis. "the lead" starts right now. breaking news, the head of the european council listing the trump administration as one of the external threats facing the 27 european nations. is president trump playing right into vladimir putin's hands? >>> who will it be? we are just a few hours away from finding out president trump's nominee for the u.s. supreme court. who are the top contenders? where do they stand on the most charged issues? and how hard will the democrats fight them? >>> plus, a u.s. raid against terrorists where too many things did not go according to plan leading to the first american combat death on president trump's watch. also among those killed, the 8-year-old daughter of a notorious american terrorist. welcome to "the lead," everyone. president trump's executive action temporarily banning visitors from several countries from entering the u.s., putting a hold on the refugee program and perhaps indefinitely halting the entry of syrian refuge

we're also looking at the impact of a donald trump e.u. on the more protectionism, what it means if it does happen for bloc as well. moving on to china trade data as well, that's coming out in just about an hour five minutes or thereabouts. slated to come out. it can come out a bit later. sense ould give us a of what's going on with domestic demand. on top of that, the state of he global economy as well, so that's out of that stage and getting into the as soon as those numbers break. a look atthat is, robots. probably fake eggs in china and robots are being used to actually, well, guard the chickens coup, as it were. details e you more on that. that story we've got coming now.n 55 minutes from >> poultry police, i love that story. thanks so much. we'll see you soon. is over.h the group has finally named replacement for oust ed chosen one has of its nome to head up the entire empire. here's the story for from us singapore. now?, who is the one >> yep, search is over. it's almost as if we make it seem like a talent contest. anyway, one job i

leaves the e.u. value financialav services and the city -- and global britain will do just that. nejra: global news 24 hours a day powered by 2600 journalists and analysts in 120 countries. this is bloomberg. you so much.nk we have been looking forward to this interview for three days. i was lucky enough to have lawrence summers, former u.s. treasury secretary, on a panel. tom: a very successful panel. francine: thank you so much for coming on. we spoke to george soros. he said this next year will be disastrous, part because he is hockin ghis book. lay out for us what president trump means for america and the next four years. mr. summers: there it hard to know. i think the risks are greater than many people suppose. biggest breaks are probably not in the economics area. biggest ricks are geopolitical --biggest risks are geopolitical with huge provocation vis-À-vis china and the unprecedented allies withour nato the soviet union with challenges to something that has been at the centerpiece of american

brexit, that he'd champion brexit, of a british withdrawal from the e.u.and therefore, i think he maybe sees something of a kindred spirit with theresa may and relationshipd a based on ideas of political upheaval and revolution and all things.nd of >> we have, of course, as you've been mentioning, been speaking very long time about this special relationship between washington and london. that become consolidated over the years, between various prime ministers and presidents. is this relationship set to change across the next four years, do you think? think, as with anything to do with donald trump, it is incredibly hard to predict what happen. to i think that since 1945, they've been having ups and downs in the relationship. the relationship was most often as -- that was a relationship driven with despite outward amicableness, there were disputes within various issues to do with the wider world the we're dealing with. so how it will actually pan out, assured himself to be volatile, change his mind a lot. at this stage, as in so many of things with his pres

it's outmaneuvered the west over syria, it's played some e.u.ntries off against other one successfully, and with donald trump in the white house, its win win win for moscow. let me explain. if trump plays things as he said he would, skating over america's differences with russia that could speed up an end to sanctions against moscow and bring russia in from the cold. goal. on the other hand, if there is a face-off, if trump and putin clash, russia can stick to its old tactic of demonizing america as an external enemy to deflect attention from problems at home and russia wins again. meanwhile, any turmoil in america over trump could be used by the russian state media to present life here to the russian public as more stable. bingo. having said that, the kremlin will need to keep one eye on defense. you see, donald trump and brexit benefited from a wave of antiestablishment sentiment that is sweeping the western world. if that were to come to russia, who is the establishment here? it is vladimir putin. laura: well, for more on relations with russi

s permanent representative to the e.u. yesterday and urged british officials working in brussels to keep challenging muddled thinking from colleagues in london. his resident nigse nation is seen as increasing the prospects for a hard brexit. donald trump picks a treasury secretary who may have engaged in widespread misconduct involved in foreclosing on home owners. that's according to magse magazine "the intercept." a spokeswoman said the attorney general's office made no finding of any violations and took no action against him. china has studied possible scenarios to the yuan and outflows and is preparing contingency plans according to people with the matter. this comes amidst increasing pleasure, rising capital outflows and concern donald trump may take punitive measures n china's exports. , speaking to bloomberg, the forpe governor over the reserve bank of india raising t yellen's rates will impact other reserves. >> i think the federal reserve seeing limited room for continued accommodation and starting to raise intere

he spent most of his career in e.u. politics. chad: he has been in the e.u.ent since the mid-90's, so he'll be able to come in, and we don't know exactly what policies he will be espousing, but certainly more to the left. matt: this is a huge deal yesterday when the news broke. i was in the taxi and it immediately came on the radio when i got home after coming back to work. it was all over german tv. everyone seems fairly positive about this for the spd, and saying it will make the election were interesting, but doesn't salt have kind of a drag in that he is so closely connected with europe and there's this populist wave so anti-europe? chad: that is true and the alternative for the germany party, populist party on the right, they came out yesterday with tweets and other messages on social media saying great, this is absolutely the kind of candidate we want to run against. they call him -- ultimately also, let us not forget that this is still merkel's election to lose. her party is still the most popular by far in germany. what'll brings his momentum for the