as the euro hits another record high of mario draghi still says the european central bank doesn't plan to hike interest rates anytime soon. business from. the most from the. davos trying to sell his american first agenda shall we say less than an enthusiast for out of dyed in the wool multilateralist an already fired a volley of punitive chops to press his own the audience so the world leaders and business big shots are unlikely to talk not to the idea that isolationism made in the usa is good for the rest of the world economy as his advisors have been briefing day one of the u.s. president's visit to the alps was dominated by bilateral backroom deals the big moment has arrived donald trump is in davos mr america first himself and what's mostly been an assembly of multilateralist the elephants in the room have names like trade wars and punitive tariffs expressions that stand for the u.s. is in a word pivot in contrast to european appeals to look beyond borders but that's not a unified stance the british have a tight rope to walk they have to sell themselves as a country open for busine

decisions from the bank of japan and the european central banks. on tuesday with a big highlight being president donald trump who gives a keynote speech on friday. next week you have another round of earnings. thea talks and gdp from united states. everyone is still with me. robert, jack and maryland, something we have not talked about much is credit. you mentioned it to me, is this small widening we are seeing almost across the board for the united states, is there any signal there? the markets are digesting the fact of the budget battle, their supply and their earnings. there is a lot to work through in terms of the impact with the changes in the tax law. jonathan: broad strokes are really difficult to do. looking at a tax bill and what it means to these individual companies, are you able to establish a view on what it means at this point? jack: the peace that it really affects is the very lowest of high yields. what is interesting is the part that has rallied the most. jonathan: could also mean less duration on the index, given that tech has bro

was freezing for you in davos the euro hit another record high mario druggies still says the european central bank doesn't plan to hike interest rates anytime soon. it's time for business on d w m where you don't get us welcome to the program donald trump arrived at davos and as expected it's all about america first the president's visit comes amid announcements of new tariffs set by the u.s. government that have been heavily criticized mostly between the lines of others devil speakers and his first day at the world economic forum trump held several bilateral talks behind closed doors. security has been beefed up at davos that may have something to do with the arrival of the u.s. president donald trump he seems to have opted for a soft landing meeting key u.s. allies first among them british prime minister to resume a meeting so her criticism of countries not doing enough for free trade has a direct swipe at trump's policies but she was less critical following her meeting with the u.s. president. facing challenges across the world and as you say to get to the challenges of the long run that will c

and thetion highs european central bank. we begin with the slow-motion treasury selloff. >> it could be a bond bear market. it is probably more of a teddy bear market. >> we don't need to worry about the 10-year getting too expensive. our work suggests the sort of positive effect on the financial sector of the 10-year moving higher, the potential negative effect of the evaluation compression. >> we have been talking about this great rotation. , they are nots clearly good. last year they were just ok. maybe you are starting to see rates move higher. people are moving to equities in the bond market. if the yield gets up to 285, perhaps it will get up to 3%, but the equity market is going to pick up and take notice. it will be to the benefit of the bond market. >> we think the economy will slow. are tight ands corporate bonds right now. we have been de-risking. we are introducing the high-yield exposure. jonathan: joining me is robert tipp, chief investment strategist at pgim. watson have marilyn coming to us from london, the h

eighteen percent against the greenback since january twenty seventh teen analysts say the european central bank's plans to end its bond buying program abhi high the currencies strength and the euro is expected to remain strong in the near term. we discuss to the rise of the euro with our man in frankfurt daniel cope and i asked him what's driving or driving the currency to go from strength to strength. well i think there are two main factors behind of all of this and i can tell you also from the investor's perspective this very strong euro also came as a little surprise for investors here after we really saw a rally here happening at the stock market at the beginning of this year well we are having a very strong european economy at the moment but the main reason behind this is speculation and rumors coming from the european central bank just a few blocks away from where i am that we might be seeing already if this year a change of the monetary policy of the e.c.b. right now we still have zero per cent interest rates here in the eurozone this is most likely not going to change at least until two t

but first the message of business as usual is coming from the european central bank today card that's right and that raised some eyebrows in the finance community as the euro reached its strongest level and against the dollar it's three years but today the c.b.s. said this is not planning to hike rates this year european companies are getting increasingly worried that their products will get more expensive abroad but druggy remains unimpressed here's what the president of the european central bank had to say the recent volatility in exchange rate represents a source of uncertainty which requires monitoring well since mid december the euro has gained six percent against the us dollar hitting one twenty five today its highest level since two thousand and fourteen that rally is based on investor expectations that the e.c.b. plans higher interest rates soon. well let's bring in financial correspondent. who's standing by in france but only as expected the e.c.b. left its stimulus program in place it keeps pumping money into the economy how was the market reacting to all those names. of the

about it it's about the world around us so let's talk about the other central banks around the world the big ones bank of england european central bank bank of japan what are they doing now on rates and quantitative easing and actually could you explain quantitative easing or q.e. as we call it for those that might not know and then give us a little mini tour of the key central banks around the world. to quantitative easing is basically buying securities in the open markets trying to push interest rates down further than they would otherwise be in a zero interest rate world because zero is theoretically a bound. and banks banks engage in central banks in gauging q.e. again hoping to spur borrowing and lending and consumption in their countries i would look for more of the same from the bank of england we saw one rate hike last year we might see one possibly two but when it comes to the bank of england's q.e. program i would expect for that to continue for the rest of the year the bank of japan is has also been very adamant about its own two percent inflation target it is it is had to ratchet back its quantitative easing

central bank whether or not the european central bank will be able to buy shares in apple as swiss the swiss national bank has done swiss national bank owns millions of dollars worth of shares of apple by the way that's part of their portfolio so whether or not the u.s. government could do that without causing hyperinflation i don't think that they could do it like the swiss national bank has done and all of these mad markets whether it's kodak coin or the s. and p. five hundred already hitting near and estimates in the first eight days you know this could be the sort of spiral the vortex the craziness that you know these eight years ago or nine years ago was set in ten years ago back in two thousand and eight when they central bank started going insane is this is finally they're finally getting the inflation that they want but i don't know whether or not it will be out of control well you do have some pressure on the u.s. dollar or the reserve currency is trending down if you see that break ninety on the index you know they're going to have a free fall which would be a catastrophic ev

central bank whether or not the european central bank will be able to buy shares in apple as swiss the swiss national bank has done swiss national bank owns millions of dollars worth of shares of apple by the way that's part of their portfolio so whether or not the u.s. government could do that without causing hyperinflation i don't think that they could do it like the swiss national bank has done and all of these mad markets whether it's kodak coin or the s. and p. five hundred already hitting near and estimates in the first eight days you know this could be the sort of spiral the vortex the craziness that you know these eight years ago or nine years ago was set in ten years ago back in two thousand and eight when these central banks started going insane is this is finally they're finally getting the inflation that they want but i don't know whether or not it will be out of control well you do have some pressure on the u.s. dollar world reserve currency is trending down if you see that break ninety on the index you know they're going to have a freefall which would be a catastrophic ev

and economists see the european central bank entering toward signaling the end of qe.e begin with the big issue, the slow-motion treasury selloff. >> it could be a bond bear market. i think it is more of a teddy bear market than a grizzly bear market. >> we don't need to worry about the 10-year getting too expensive until closer to 3.5%, frankly. we've seen 3% in the past few years. our work suggests the sort of positive effect on the financial sector of the 10-year moving higher right now overwhelms the potential negative effect of the valuation compression as rates rise. >> we have been talking about this rate rotation for years. people are going to go out of bonds into equities. cinnamon is pretty high in the equity market right now. bond returns, we are only three weeks into the year but they are not very good. maybe you start to see as rates move higher and and returned to start to deepen in the bond market, people moving equities and supporting the equity market. >> at some point, when the bond yields get up to 2.85%, perhaps it will get to 3% in the 10-year, i d

next week, decisions from the european central bank and the bank of japan. starting to scale back qe. some conversations in japan about the boj scaling things down there as well. who is the first to hike? the boj or the ecb? robert: that is -- jonathan: we have to go, robert. boj or ecb? robert: ecb. jack: ecb. marilyn: ecb. jonathan: guys, it has been great to catch up with you all and get your thoughts on the market. jack flaherty, robert tipp, and marilyn watson. from new york, that is it for us, we will see you next week. this was "real yield" and this is bloomberg tv. ♪ scarlet: i'm scarlet fu. this is bloomberg "etf iq." ♪ scarlet: with interest rates creeping higher, the flow of money into high-yield debt has taken a detour. we take a look at interest rate hedged itf's. state street is losing ground to blackrock when it comes to new cash. jim ross with how they plan to get back on track. what is in a name? and we drill down into a new etf

week in central bank rhetoric, the bank of japan, european central bank guiding us a little more.ke in the bund. they got dumped yesterday. anna: interesting to see stock markets managing to make hay despite the turmoil in the bond markets and concerned about where central-banks go next. let's talk about the investor futures, pretty flat at this stage. let's get a business flash with juliette saly. facebook is making major changes to its flagship social network, changing newsfeeds back toward folk -- posts from friends and families and away from businesses. feedback has shown public content is being -- has been crowding out personal moments that lead us to connect with each other. he also said the transition is likely to mean people spend less time on the site. after about a decade as the company acknowledged its expertise were in brands like gucci, rather than developing the track and field outfitter. 17%, andll distribute bloom's outstanding shares. vivendi has reported earnings in sales growth that fell short of earlier forecasts, dragged down by pay-tv. sales increased by all

next week, decisions from the european central bank and the bank of japan. starting to scale back qe. some conversations in japan about the boj scaling things down there as well. who is the first to hike? the boj or the ecb? robert: that is -- jonathan: we have to go. boj or ecb? robert: ecb. jack: ecb. marilyn: ecb. jonathan: guys, it has been great to catch up with you all and get your thoughts on the market. jack, robert and marilyn. from new york, that is it for us, we will see you next week. this was "real yield" and this is bloomberg tv. ♪ ♪ david: at one point, your father left your mother. ginni: it was sudden, and my mother found herself with four kids, no money. david: let's talk about ibm for a moment. ginni: we are the champions for business. david: when you are meeting with president trump or other presidents, do you see that ceos are willing to say, mr. president, that is not a good idea? ginni: my experience is people are respectfully honest and give their opinions. david: do you feel a certain responsibility? ginni: women do need role models.

central bank whether or not the european central bank will be able to buy shares in apple as swiss the swiss national bank has done swiss national bank owns millions of dollars worth of shares of apple by the way that's part of their portfolio so whether or not the u.s. government could do that without causing hyperinflation i don't think that they could do it like the swiss national bank has done and all of these mad markets whether it's kodak coin or the s. and p. five hundred already hitting near and estimates in the first eight days you know this could be the sort of spiral the vortex the craziness that you know these eight years ago or nine years ago was set in ten years ago back in two thousand and eight when these central banks started going insane is this is finally they're finally getting the inflation that they want but i don't know whether or not it will be out of control well you do have some pressure on the u.s. dollar world reserve currency is trending down and if we see that break ninety on the index you know they're going to have a free fall which would be a catastrophi

analysts say that the european central bank's plans to end its bond buying program behind the currency strengthen the euro is expected to remain strong in the near term let's find out a little bit more about the why and let's cross over to our financial market correspondent daniel corp who is keeping an eye for us on the frankfurt stock exchange hi danielle so tell us what do you think is driving the euro right now. well i think there are two i'm a infectious behind of all of this and i can tell you also from the investor's perspective this very strong euro also came as a little surprise for investors here after we really saw a rally here happening at the stock market at the beginning of this year well we are having a very strong european economy at the moment but the main reason behind this is speculation and rumors coming from the european central bank just a few blocks away from where i am that we might be seeing already if this year and change of the monetary policy of the e.c.b. right now we still have zero per cent interest rates here in the euro zone this is most likely not goin

central bank whether or not the european central bank will be able to buy shares in apple as swiss the swiss national bank has done swiss national bank owns millions of dollars worth of shares of apple by the way that's part of their portfolio so whether or not the u.s. government could do that without causing hyperinflation i don't think that they could do it like the swiss national bank has done and all of these mad markets whether it's kodak coin or the s. and p. five hundred already hitting near and estimates in the first eight days you know this could be the sort of spiral the vortex the craziness that you know these eight years ago or nine years ago was set in ten years ago back in two thousand and eight when they central bank started going insane is this is finally they're finally getting the inflation that they want but i don't know whether or not it will be out of control well you do have some pressure on the u.s. dollar world reserve currency is trending down if you see that break ninety on the index you know they're going to have a freefall which would be a catastrophic even

eighteen percent against the greenback since january twenty seventh teen analysts say the european central bank'splans to end its bond buying program are behind the currency strength and the euro is expected to remain strong in the near term so earlier we discussed the rise of the euro with our man in front third study of corp and i asked him what's driving the currency to go from strength to strength. well i think there are two main factions behind of all of this and i can tell you also from the investor's perspective this very strong euro also came as a little surprise for investors here after we really saw a rally here happening at the stock market at the beginning of this year well we are having a very strong european economy at the moment but the main reason behind this is speculation and rumors coming from the european central bank just a few blocks away from where i am that we might be seeing already if this year a change of them on the cherry policy of the e.c.b. right now we still have zero percent interest rates here in the euro zone this is most likely not going to change at least unti

now to the european central bank and economists have brought forward their analysts of when the centralond buying program. the first change in forward guidance is for seen for march. we are back with themos fiotakis . i think i have a euro trade wage chart if we can bring that up on stage. i don't know if there's a difference between trade wage or the real one. where do you expect that to go depending on how markets perceive the ecb? captions think what this trade weighted chart is the euro has been undervalued. part of the reason is the -- of the ecb. european bonds are the most expensive in the world among the major countries. european yields are way too low and as the ecb exits, this should correct the fair value. mind, they will still be buying bonds for the majority of this year and absorbing more of the supply of german bonds. even if they tweak forward guidance, they will be making very sure they imprint on the market's minds that this will happen a lot later after they stop purchasing bonds, potentially in 2019 and that has been actually the core of some of the comments we have

yes and it's stellar not least of course also due to the generous policy of the european central bank with zero interest rates and pouring trillions into the economy germany one of the people benefiting one of the countries benefiting i should say and the business confidence here in germany again at a record high interestingly though the current situation being judged much better than the look ahead to the next half year but the german consumer also confident at the highest level that indicator by j.f.k. has been since the year two thousand and one stable jobs rising incomes a lots of open jobs that can't be filled at the moment of course that leads to the question what does that mean for germany twenty eighteen most economists say more growth even faster than the last year other people also pointing to potential risks like that rising euro that you spoke of when he brought in frankfurt thank you so much. a top u.n. official says it's still not safe for one of muslims living in bangladesh to return home to me and my unicef a directive just in force it also says that drain the villages

the business world currently gathered in davos is also looking to frankfurt today where the european central bank has been meeting the eurozone economy has posted strong growth recently but the e.c.b. has decided to leave interest rates unchanged at zero percent and continue monthly bond purchases until september the euro remained unchanged against the dollar on the news it at its highest level. since twenty four to. specter the zeal of the stimulus program in place let's cross over to frankfurt where my colleague ali abbas is standing by with a house the market reacting. it's reacting just a little bit but there's a little net change now about a half hour after or three quarters of an hour almost after the decision was made public the tax and how went down a little and now it's basically where it was before the euro down a little i think no surprise that at this stage of the game with a year of being so strong the euro basically counteracting the e.c.b. policy efforts to stimulate growth and inflation is not going away from an stance and it was before the euro was so so so strong hope that the e

as a whole the eurozone economy out paced its peers last year it's going so well that the european central bank plans to begin throttling back its massive stimulus program this month. well twenty eighteen could be a blockbuster year for i.p.o.'s in parts of the world initial public offerings for the first time stock of a private company is offered to the public so your chance to win best now last year was a disaster for hong kong's if it's to braise equate that the number of big chinese tech firms doing public will go public could change that analysts expect new listings to raise around five hundred billion dollars over the next couple years that pits the chinese port city against new york as the favorite place for tech companies to find funding among the i.p.o.'s a smartphone maker shalmi and wealth management platform new fox hole from our asia correspondent andrea hang as well as our frankfurt reporter and their device on the wave of i.p.o.'s to hit germany this year but starting with you under a why is asia leading this global i.p.o. judge. well this is eighteen percent jump which is almost

of twenty fourteen and that's raising eyebrows among currency experts the president of the european central bank mario draghi said just last week that the recent volatility in exchange rates represents a source of uncertainty which requires monitoring we are custom junia's chief economist at sanford seris and beg if he thought u.s. officials comments on the dollar or break with tradition. absolutely it would be a break from tradition and it's not encouraging what they what they do so often with this administration i have the impression that they are not really aware of what they're commonly cation is doing they seem to believe that they can make statesman to lie the us finance and finance minister. and reserve reversing them the other day that is not how we used to communicate in these markets all what we expect from central bankers and governments and it's definitely not to doing any good for the world economy and the financial system. major withdrawal symptoms for lithuanians draconian new alcohol low came into effect on january the first not only is the drinking age being increased and alcoho

is on everybody's minds the markets are flat in europe and i think the european central bank meeting on thursday is one of the main reasons for that it's going to be a very important one considering the minutes of the last meeting the one in december people assume that the e.c.b. is looking at a way to tighten monetary policy earlier what does that mean perhaps raise rates earlier and go back with khan wanted to easing earlier it's not just said and done yet but people will be watching very carefully what mario draghi says this coming thursday in order to get any hint of that sort of thing it's possible that the e.c.b. will wait until the next meeting but people are very anxious about what is coming and that's an important topic for the market today but it also big changes that a diligent buzz image runs the france talking strange there where you are what can you tell us. that's right the new c.e.o. ted of i'm of who's been in the office and so january first is going to have his first public appearance at the microphone is all ready been seen at a reception here in frankfurt but he w

thousand and fourteen and that's raising eyebrows among currency experts the president of the european central bank mario draghi said last week the recent volatility in exchanges and exchange rates represents a source of uncertainty tree which requires monitoring or we asked cost and junia's chief economist at sephora seris and bank if he thought u.s. officials comments on the dollar are a break with tradition absolutely it would be a break from tradition and it's not encouraging what they what they do so often with this administration i have the impression that they are not really aware of what their common occasion is is doing they seem to believe that they can make statesman to lie the us finance and find it's all what we expect from central bankers and governments and it's definitely not to doing any good for the world economy and the financial system. to date on all the big business stories i've noticed in business fix. the to. cut cut. cut cut cut cut cut. cut cut. cut cut cut cut cut cut cut cut cut cut. cut. cut. that's all to a roaring stock as the detroit. favorites . anticipated. and chr

the other question mark ban is really when you talk again about the monetary policy of the european central bank. because many people here again questioning what mario draghi just a few blocks from here is doing with this very strong economy we just heard from him last week that he doesn't see any reason at the moment to change his monetary policy speaking about interest rates and also speaking about the bond purchasing program yes so lots of question marks also reports today about a leaked a paper there was a release. kind of creating a scenario how breaks it could be for the u.k. economy and those figures don't look very promising at all british prime minister trees are may now saying that this was only initial work and was never supposed to be released so yeah very interesting what is also going to be said about this issue thank you very much for your interesting analysis there you go person. and i was doing business with you i'll see you again very soon here on the telco and. clinton. going to. come. to. the true and. the a. preview. and see a trip. then come come the stakes with something.

if they get them, it could prove helpfulfor meeting the european central bank's target inflation targetbelow 2%. they've been struggling to do that but moving toward it will help them unwind their stimulus programme. let's get more on this story from damien mcguiness in berlin. welcome. how are the workers justifying a 6% inflation busting pay rise? the past decade and a half has had a lot of wage restraint. even though the economy has grown in the past few years, we have had tough labour market reform about 15 yea rs tough labour market reform about 15 years ago, leading to a loss of wages. and then with the financial crisis from 2008, that also led to a loss of wage growth. wages have been co nsta nt for loss of wage growth. wages have been constant for a long time. many trade unions say it is time for wages to go up. companies, especially manufacturing companies, where many of these workers are employed, they are getting record profits along with record exports. they are saying it is time to get a share. the other reason is, as you said, workers feel ina reason is, as you said, worke

the ecb, because the european central bank is due to release minutes.he market will be looking for any signs of dissent on former guidance as hawks take the lead on the qe debate. alessandro, are the hawks in the ascendance? >> for sure, they are dominating the conversation. they are being much more loud, talking much more and trying to steer, because the state of the european market is very strong there is little signs inflation it is nog up, but longer a situation that requires strong monetary support, so they hope to see the end of qe i the end of the year. the doves have been keeping silent but that does not mean they are in the minority. mark: we have a wonderful chart showing the doves versus the hawks. this is a spectacular chart making it clear. what is the balance? is draghi losing his majority? alessandro: the way you look at the chart, this is just the main failures come of the most influential and vocal councilmembers. there are 25 people in the governing council of the ecb, six members of the executive board in 19 heads of the central banks

record growth and those levels at the figure of two percent raising slight concern all for the european central bank . david considering inflation and thinking about markets in the us i mean we had something like seventy record dow jones industrial average highs in the market last year it was just on a chair and some people. myself included maybe think we're about tapped out although i've been saying that for six months so is this a place where in the e.u. the eurozone a place where people should be investing higher investment should help boost productivity and profits also job creation was maintained at a record pace in inventor and combining that with new orders and rising that near record pace while purchasing growth and a new people are giving investors more confidence inflected some of those fears when it does come to inflation david miller thank you so much appreciate your help . now that there is a new tax reform law officials in higher tax states like new york and california are looking for ways to reduce the end packed up on their side of the new law limits deductions from state and local t

we do see the european central bank is moving in a less accommodative direction. we think that qb could be done by the end of the year. when a central bank is moving toward these very accommodative monetary policies, going from negative interest rates to positive rates, we see that as having more of an influence on the currency and being more supportive for the euro or these foreign currencies as opposed to the fed raising interest rates where it is some ways along its monetary policy tightening cycle and that having less of an influence in terms of u.s. dollar support. mark: how do you view sterling? as i said in my market report at the top, we are up 5% this month against the dollar. we are at the levels we have not seen since the day of the brexit referendum back in 2016. what is priced in when it comes to sterling? it has seen quite a leg up in the last month. eric: a lot of the recent movements or just general fluctuations in sterling is a reflection of the broader underlying economic trends and overall monetary policy to direction. you saw the bank of england

that is the personification of the rethinking of the global central bank, isn't it the bank of japan, the europeantral bank, the fed and even the bank of england, -- tell me what this ttall of negative yielding deb says to you. >> it says we are in a transition away from negative rates, eventually. that is the yield and the hunt for income is still on amongst the love investors. if you put a little bit of a cap on how fast treasuries can break tot he upside, in the short term at least, it is starting to look quite attractive on the tenure. we still have seven plus trillion dollars worth of that was wrong. rather than necessarily being institutionalized. why you short on guilt question went -- why are you short on guilt. we are looking at large, structural, fiscal antarctica deficit. we don't have in the united kingdom anymore support consensus around the market economy, or the fundamental business and social models of there are not enough risk premium prices for brexit either. if we finish the trade on friday. where we go from here? grow to onesily that:55 -- we can easily grow up to 1:66 pom. tha

and thetion highs european central bank.th the slow-motion treasury selloff. >> it could be a bond bear market.

i think we are going to see policy surprises from the european central bank.eurozone manufacturing has expanded 54 consecutive months and at a record level in december. at some point the ecb is going to have two talk about taking the punch bowl fouled away and it is going to get a big pop. that is going to happen in the next few months. julia: i look at that inflation reading and it felt like a reminder that for all of the excitement we can see in the manufacturing sectors, actually on the inflation front there is a huge concern. what is your forecast? how concerned are you about inflation holding them back? thingse are a couple of tied into this question. while inflation has been tepid it is likely to increase as we .ee commodity prices increasing these things are going to provide upward pressure and you are going to see that manifest in the u.s. and in the eurozone. i think you're going to see the ,urozone respond quite quickly by the end of the year we are higher30, quite a bit than where we are now. your member in january we were testing around the 104 lev

paschal: ireland wants to be represented in the exact positions within the european central bank. an central bank has been up a heart of the monetary policy that allowed the eurozone to move through the exceptional difficulty of a number of years ago. it is a vital institution for ireland and europe, and we want to be represented in this. i will make a decision what we do. francine: you will definitely nominate someone? is there a job that you think would best suit your candidate? paschal: no, i think any of the rules that are coming up are very important for the functioning of the ecb and very important for ireland. we will be making a decision on the matter imminently regarding do we put the candidate through who that person will be? will be an exceptionally well-qualified person reflecting the experience we have had in ireland and our desire to ensure that kind of experience is embedded in the vital institution for the eurozone. francine: how often do you catch up with apple? paschal: we have ongoing engagement with apple. francine: are they ready to pay the money? paschal: we e

coming up over the next week, you have rate decisions from the bank of japan and the european central bankeconomic warm in switzerland opens on tuesday. a big highlight, president donald trump gives a keynote speech on friday. also next week, another round of earnings, nasa -- massive talks and gdp rates from the united states and the united kingdom. we have robert tipp, marilyn watson, and jack flaherty. something we have not talked about much is credit. robert, you mentioned to me, the small might in the -- widening we have seen almost across the board in the united states, is there a signal there at all? robert: i don't think so, i think the markets are digesting the budget battle, supply and earnings. there is a lot to work through in terms of the impact with the changes in the tax law. jonathan: broad strokes are difficult to do, but looking at what we have done so far on a tax bill, and what it means for companies, are you able to establish a view on what it means for investment grade and high-yield? jack: the peace it really affects is the lowest wrong -- r ung of high-yield. the ve

moving at the view on what happens next from the european central bank in terms of let's get to the endcb qe road. juliette saly is in hong kong. juliette: theresa fighting on multiple fronts today as critics inside her governing conservative party threatened to up and her plans about brexit and even her premiership. they believe philip hammond is plotting to deny them the clean, quick break they want. even donald trump has been critical of their handling of brexit and has taken a "tougher stance with the eu." the leader of the u.k. opposition labor party is calling for a second referendum, exerting pressure. jeremy corbyn spoke to the bbc. >> what we asked for and demanded in parliament has been a meaningful vote in parliament at the end of this. and what happened with this though, it was an undemocratic move. ecb governing as soon asl end qe possible. the head of the dutch central bank says the program has done what was anticipated and there is not a single reason to continue with it. last week draghi said there was signs of rising inflation. in the u.s., goldman sachs said we should

minutes from the european central bank's latest policy meeting revealed an upbeat outlook which could translate into the winding down of its massive stimulus program for the eurozone. that's called the euro a surge of about three quarters of one percent against the dollar. here in front negotiations of the guns reform the costly unemployment benefits system. president emmanuel michael wants to bring the benefits fund under state control. is also outlined proposals to extend the benefits to self employed workers or people who quit their jobs to set up their own companies. unions and employers groups have asked before their own suggestions by early next month. the government meanwhile is threatening sanctions on a dairy manufacturer and a number of supermarkets as a food safety scandal continues to deepen. like tell us recall the product in december because of the risk powdered milk could be contaminated with salmonell. but since emerged at more than two thousand packets of the infant formula have been sold since then. for finance ministers meeting with distributors promised extra safet

thank the european central bank and such bonn certain projects which wouldn't be feasible for businesses to invest in. what is a says it did in the abbas diesel supporting? okay. never said it was to the wall and i'm you like me to. fiji because as you know in lebanon we have one and a half million refugees which is a lot to handle. we need economic growth. is that's the only way we can really be able to take in those one and a half million refugees. walkable up but usual. it's a bird in lebanon can't keep carrying. the idea of a political solution in syria. i don't see it happening soon. so lebanon is doing a public service for the entire worl. by allowing those one and a half million refugees into our country. and i think the international community has a responsibility to lebanon as well as to jordan. motive all components of the news. the the full senate usual virtually france has always played a unifying role. worker the because you know my call add the. the man yeah guys mikey i think president mackerel has a wa. charisma that is very effective at introducing dialogue in these coun

and economists see the european central bank entering toward signaling the end of qe.th the big issue, the slow-motion treasury selloff. >> it could be a bond bear market. i think it is more of a teddy bear market than a grizzly bear market. >> we don't need to worry about the 10r

now the president of the european central bank is yeah out its steven incheon an armored truck he did so without mentioning him or the united states by name. this for his comments in favor of a weaker us dollar jonny said the use of such language went against an agreement by eating economies to refrain from competitive devaluation of currencies. this thursday drug he also played down the prospect of a retired this year. on our regular economic and monetary analysis we decided to keep the key ecb interest rates unchanged. we continue to expect them to remain at their present levels for an extended. time and went fast the horror is an overnight us at this is the reason validity in the exchange rate. represents is. of uncertainty. which requires monitoring. now there is a was theresa may's big day at davos the marriage prime minister told a gathering the world shouldn't pull in different directions on trade. she also had a bilateral meeting with the us president donald trump the uk has now been placed at the front of the line when it comes to negotiating a free trade agreement. with wash

if they get them, it could prove helpfulfor meeting the european central bank's target inflation ratebelow 2%. they've been struggling to do that, but moving forward, it will help them unwind their stimulus programme. with me is karl brenke, an economist at the german institute for economic research — he joins us from berlin. so, if these demands are met, what do you think the impact would be on the german economy and the wider european economy? last year the great unions, we have had wage increase of about 2%. and the inflation rate in germany is nearly 2%. and therefore we have no increase in real wages. on the other hand the companies had a good business last year and therefore i think higher wages are necessary, and in my opinion, the increase must be 4% or more. and i think it is important that we have a push for the business cycle inside germany, for the domestic demand here. and how damaging do you think these strikes would be? yes, strikes in germany! i think most of our leaders of the great unions know strikes only from history! i don't think we will have strikes a! so, what

european central bank president draghi got the dollar off on the first leg of its round trip journey can comments indicating he didn't care much that the euro recently strengthen against the greenback. >> we don't target exchange rates. we say exchange rates are important for growth and for prizability. now, in certain movements in the exchange rates to the extent that are justified by the strengthening of the economy are part of nature. >> the euro surned from 124 to 125 against the dollar a level not seen since 2014. the way traders saw it draghi didn't much mind the strength and didn't sound like he was going to do anything about it. but someone did mind. his name as president donald trump. speaking to cnbc exclusively in davos, trump came down firmly on the side of a strong dollar. >> the dollar is going to get stronger and stronger. ultimately, i want to see a strong dollar. >> the effect was immediate and dramatic. within an hour the dollar regained all it lost on the day and then some. underpinning the nervous action. these are nervous times for economy traders and the global

strategy in the federal reserve along with the bank of japan bank of england bank of canada european central bank said not on our watch let's get those bubbles going again we're going to push credit is the markets they did a great job we have enormous amounts of new debt in the system since two thousand and seven but what we haven't had is the organic underlying economic growth that would justify those actions so you know when this next crisis comes are we ready for the answer is no we have more debt just as much derivatives on the books and worse we don't know where the risks really are because don't forget these big banks big financial institutions are still allowed to account for the derivatives on their books by something everybody calls mark to fantasy whatever that whatever number they want they're still not marking to market we see emergency provisions stuffed into place in two thousand eight still muddying the waters all the way here ten years later chris dodd switch over to tax free for mom what kind of impact do you think we'll see now that trump and the g.o.p. have passed their latest

and european central bank president mario draghi joined the critics of u.s. treasury secretary steve minucci and on thursday drug pointed pointedly suggested that the new chin's comments that a weak dollar is good for the u.s. economy was a violation of an agreement reached with washington in october to avoid competitive currency devaluations druggy went on to say several members of the e.c.b. governing council quote expressed concern that this was broader than simply the exchange rate it was about the overall status of international relations right now . in the us aid trump appointee is pushing a major change to the legal process for settling alleged labor law violations peter robb general counsel of the national labor relations board or n.l.r.b. outlined plans to affectively demote the regional directors who resolve about eighty five percent of n.l.r.b. cases by placing them in a new smaller tier of civil servants who could overrule the regional managers the changes expected to tilt the system toward ruling in favor of employers. all right let's head back n