in europe now and take a look at the euro the currency slipping to a 7 week low following a european central bank decision to hold interest rates at their current level e.c.b. president christine legarde said the risks to europe's economy were less pronounced following a u.s. china trade deal lugard also announced the bank would begin a strategic review in focus uncertainty over its inflation target and the possibility that the e.c.b. could introduce climate friendly policies such as the purchase of climate related bonds. and for more on that deal be financial correspondent konrad booze and joins me now from frankfurt conrad why is the e.c.b. so focused on inflation. well it's what the e.c.b. was told to be the inflation the way how consumer prices develop is the number one focus point for the european central bank when it comes to decide how the economy's doing and what sort of monetary policy it needs the problem with this official inflation rate this 2 percent inflation rate target is that it's not been met for many years now and that many economists also people within the e.c.b. believe that

the euro has slipped on to a 7 week low following a european central bank decision to hold rates at their current level e.c.v. president christine legarde said the risks to europe's economy were less pronounced following a u.s. china trade deal with also announced the bank would begin a strategic review in focus uncertainty over its own inflation target and the possibility that the e.c.b. could introduce climate friendly policies like the purchase of climate related bonds. and for more on this i'm joined by d.w. financial correspondent in frankfurt conrad booze and conrad walk us through the strategic review what is this. well it's a fundamental overhaul of the standards according to which the european central bank is working and one major factor why because in the guard things the e.c.b. has to do it is that you know this 2 percent target of rising consumer prices that the e.c.b. is so fixated on it's a target that the e.c.b. has not managed to meet in many many years many years ago the text books were written that said prices are stable when consumer prices rise at an annual rate of 2 p

central bank, but it is not only a central bank. it has a more broad mandate. you also do economic structure and reforms and perform macro-policies. how do you see the european policy this year? ms. lagarde: good morning, and it is very nice to be with the group. i am delighted that she is my successor. i have to say it was tempting to go along with some of the communications with her because it was my life. now i have to focus on a slightly narrower field, which is essentially the european union, and more specifically the 19 members of the euro area, which has the benefit of sharing one single currency, the euro. so when i look at that part of the world, i see some positive signs, and i see some concerning signs as well. in the positive, i look at the employment numbers and the unemployment numbers just like steven. we never had such good employment numbers. we are certainly back to the precrisis times. when i look at the wage increase, we are roughly on average at about 2.5% wage increase. for a central banker like us, we are happy with that because hopefully there will be a transmission channel to prices, which in turn would generate inflation, which woul

a big snooze was already expected by the european central bank today yes we have a new head christine lagarde and she is still very much downplaying the risk associated with the european economy but the question as you pointed out is that if these negative rates are going to stay and the more importantly how long are they going to stay that can answer can only be answered once she has. a review which is never been done in nearly 7 years because i think that the last time that the e.c.b. really looked at the definition for a price stability that was back in 2003 from from that particular moment and until now we still do not have a clarity of what price stability really means we should really makes a composition of inflation. you know we talked a little earlier with another guest about while way but i want to kind of broach the subject with you as well the u.s. to continue applying this pressure on britain over its use of war way to build up the country's 5 g. infrastructure the u.s. has indicated that allowing while way to have a role in the 5 g. buildout could risk the u.k.'s involvem

central bank. not just a central bank, it has a broader mandate. you also do economic structure reforms and a more macro policy involved. so, how do you see european economy this year? >> well, first of all, good morning, and it's very nice to be with the group, and i'm delighted that kristalina is my successor. i have to say, it was tempting to go along some of the communications that she had, because it was my life. so, now i have to focus on a slightly narrower field, which is, you know, essentially the european union, and more specifically, the 19 members of the euro area, which has the benefit of sharing one single currency, the euro. so, when i look at that part of the world, i see some positive signs and i see some concerning signs as well. in the positive, i look at the employment numbers and the unemployment numbers, just like steven. we never had such good unemployment numbers. we're certainly back to the precrisis times. when i look at the wage increase, we are roughly on average at about 2.5% wage increase, which is, you know, for a central banker like haruhiko and myself, we are happy with that, because hopefully, there will be a tran

and the european central bank's former leader received germany's i started today the order of merit italy's mario draghi is credited with rescuing the euro at the height of the debt crisis. for such as a using native napier grass to feed cows in kenya could help reduce emissions of greenhouse gases they argue the practice could also help business around for millions of small fall as well conserving forests and grazing lands this napier grass in kenya small forest provides animal fodder for grazing in the area researchers have now found that napier grass office multiple benefits overturn vision of feats by boosting farm yields preserving forest and cutting greenhouse gas emissions. is a very good supplement that would easily digestible to the animals nessun the thin being produced more mean a big boost so the big greenhouse intensity we see is there more within the produced by you need to wean goes the. kenya has to make in dairy farmers who have 10 colors or less the farmers taking part in a new study once had their livestock only with forest grazing or with silence made from locally grown

meanwhile former head of the european central bank mario draghi has received germany's highest honor the order of merit he's been credited with steering the yours and through the worst of the debt crisis. and world athletics the governing body of track and field sports as outlawed some versions of nike's of paper fly running shoes they've been used in recent record breaking runs in container 3 carbon plates in the soul which appear to enhance performance from now on only single carbon planes plates will be allowed . i just briefly return to our top story it's unclear how much exactly leaving the well cost brits in the long run but at least they can pay for it with freshly minted bricks coins these new commemorative $50.00 pence pieces you can see feature the words peace prosperity and friendship with all nations and the bricks that date the 31st of january 2020 around 3000000 of them have just gone into circulation with more coming later in the yet it's not the 1st on the roman it has produced a special court in one of the previous occasions was when the u.k. joined the european comm

and important policy coordination between the federal reserve in the bank of england in the european central bank bank of japan for example we're a little bit worried that in the event of serious economic problems in 2020 you're just not going to get that sort of policy alignment whether it's monetary policy or fiscal policy these multilateral solutions are going to be much much harder to come by i thought would you would you agree with that well we've had 15 trillion dollars worth of investment if you like spending from central banks globally since the financial crisis began and the result has been affected leaving a lost decade. so it hasn't really done a great deal of but from a massive inflation of asset prices which has led to inequality which is that the political problems which is you know so we'll see where that's actually ended up leading. it has got to the stage where you can only stretch a piece of string that far and we do and in the central banks while the central banks have been working overtime in cutting in easing monetary policy it's allowed governments and politicians to basical

we are delighted to be joined on bloomberg by the european central bank president, christine lagarde.u so much for giving us a little bit of your busy schedule. you really laid out what you are trying to achieve yesterday and the press conference. at this moment, what do you see as the biggest challenge? madame lagarde: the biggest challenge is going to be to harness all the views, all the assessment, all the convictions into a direction that would actually serve the purpose that we have been assigned to, which is guaranteed price stability in the economy. that seems like a very dry proposal. the whole point is to actually create the ground, maintain the ground, and fertilize the ground so that there is growth, so that there are jobs and the economies a the euronet area -- you're area are out -- euro working well and generating value. [audio drop] underon't think that be any kind of influence, other than reviewing the rights, understanding the reaction, response, the effectiveness of what we can do. the world has changed so dramatically for the last 20 years. last time we had a strate

the new european central bank president christine lagarde says policy actors -- makers need to take action on climate change now. >> we are waiting for the cdc to tell us more about more cases of the coronavirus in the u.s., but since we got word from that by a senator briefed by the cdc, stocks have turned lower. the s&p 500 down .9%. even though there are some great stories, the intel earnings coming in positively for the street. the dow is down six. the nasdaq down 0.8%. of course, we are looking at u.s. treasury yields compared to duration. you mentioned yields have been falling. one big call came earlier this week from credit suisse's chief equity strategist. b has a street high for the s&p 500 of 3600. >> when we started to look forward into what 2020 earnings would be, we really see something which is much stronger than we would have thought a little bit earlier. for more on markets and what they are reacting to, where hudson'shead, tower ben laidler is with us now. i want to start with where we stand on a fundamental basis, and we are definitely in some emotion. it seems very illog

woman to lead the international monetary fund woman to behe first elected president of the european central bank of the three most powerful women on the planet. i sat down with christine lagarde in new york a month

the european central bank. has been buying. and is buying them hand over fist the swiss national bank and over for me it's just a matter of time before the fed starts buying equity. i think that it will see more clearly i think they have no other chance but to think for the markets they've proven. markets. in the stratosphere the problem is we're still doesn't know what it. is it's a problem as i said for a couple hours it's impossible to hit the top of a bubble and you can tell we're going to probably have. $13000000000.00 and then we are yet to make a profit. and have a. seat at an all time high making a valuation or test i think there's something in the world. that's not over the outs. and is finding out with. the big technology in those battles. and frankly it needs rare earth metals so those metals not come from china i doubt china is going to be very helpful in for moti american companies over their own. force everybody is getting into the game with the east now so. i think we will come forward and in school. in russia. an

and it's germans vanity project to have the european central bank in frankfurt and it's less of advantage of projects to have premises election given the whole european parliament doesn't get up like a travelling circus and some people have said once every month how do you have a cost of over $100100000000.00 euros a year have you asked the cost of having premises in luxembourg in frankfurt and in many other places in europe that doesn't justify this. my to more than just specific interest you must you want your crap to stay in brussels public . cut from the reality of the ground cut from member states is that what you bought is that what citizens have been voting for for them they are telling us please go to mammoth things please get out of this but these areas to work once a month are not telling you that. in my country it is only something in you but at the cost of between $11000.00 listening to my voters between 11019000 tons of extra c o 2 emissions every year just to make this stunt possible you know every time you don't know what a program on your smartphone you are participating i

you know europe is this is not an experiment there's never been tried were in easy to be the european central bank has a negative interest rate and their banks are flow through it in a very short manner so i mean there's a 0 percent or negative interest rate helps anybody in the world as voters or economic growth is concerned no i mean how can a bank made money when they're paying interest on their deposits and essentially i mean what and what's the spread between their loans are going there because it's in their loans are basically the same thing there's no more urgent. interest north and then there's the. no way to basically make money if they can't make money they don't lend so they keep their money at the central bank and pay them to do it because people are saturated situation i mean look at it i mean let's just look at the corporate jets an area here in the united states and around the world let's just talk about the united states for a 2nd you know the i.m.f. said that if we have a recession that is one half as bad. as what we had in 2840 percent of being too high or too built world's corpo

the european central bank. has been buying it in the bank and is buying them hand over fist the swiss national bank is buying equities handover for me it's just a matter of time before the fed starts buying equities as well in my belief i think that it will see more clearly i think we have no other chance but i do feel we keep these markets boy they've proven frankenstein's slide a frankenstein's they markets are doing at the end of the stratosphere the problem is we're still doesn't know where they stand is it's a problem as i said for a couple hours it's impossible but it would stop a bubble and you can tell we're going to probably have. some $1000000000.00 and then we're still yet to make a profit. and have a test and see if this is at an all time high making a valuation or test i think there's a lot of company in. with who won't mostly when callers and. it's not. over the else knows rules from you know even. the big technology in those vehicles is that bad and frankly it needs rare earth metals so those met

. >> if i had to choose between a world where politicians are in charge of central banks or european central banks or a world where i have to shut up even when it is difficult, i'd rather choose the latter >>> the swiss national bank chair chairman thomas jordan told me more about the pick up i asked to address optimism about the outlook. >> in some case, yes, we did not change your boyce for the world and for europe we see an improvement in 2020. not very, very strong but a slight improvement >> do you think one of the reasons we saw the slow down was on the back of the weakness of the economy? >> yes indeed a couple of factors for 2019 we saw a weakening demand. this is a phenomenon we see globally the car industry was hit hard in germany. we have many firms that supply parts into this industry >> how would you say the balance of risk is now would you say it is tilted up or down side? >> we believe it is still tilted to the down side >> if you do see morris being to the down side, surely another risk is that the ecb go ahead and cut interest rates in their economy, that wouldn't hel

now moving on the european central bank on thursday held interest rates steady as a large its 1st duty to previous since 2003 the e.c.b. right now is trying to determine whether it's inflation. target is still appropriate and ultimately the e.c. voted unanimously to keep the main deposit rate at a historic low of negative point 5 percent in line with market expectations so is this kind of policy of negative interest rates the stain of all because we've had many quest people questioning this policy already. a big snooze was already expected by the europeans and to the buying to the yes we have a new head christine lagarde and she is still very much downplaying the risk associated with the european economy but the question as you pointed out is that if these negative rates are going to stay and the more importantly how long are they going to stay that can answer can only be answered once she has. a review which is never been done in nearly 7 years because i think for the last time the e.c.b. really looked at the definition for a price stability that was back in 2003 from from that partic

it is still well below the european central bank target of 2%. germany has been struggling with a slump in manufacturing. in the u k, prime minister boris johnson's government is looking for widows and misfits. he says he wants to overhaul the way the government works out so he is seeking people with different skills and backgrounds, saying the government needs true cognitive diversity. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. guy: thank you grandma's. i think life is about to get very interesting for the british civil service. let's talk about how the escalation in the middle east is impacting markets. this is what you would expect on a day like today. up 3.5%. wti gold continuing a bid. the market coverage continues. this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i am guy johnson. this is "bloomberg markets." risk off. abigail doolittle, over to you. abigail: you just stole the words out of my mouth. risk off i

monetary policy front and center is the european central bank announced its new policy since 2003.hristine lagarde saying some of the risks so around -- risks around international trading might be easing. related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets remained tilted to the downside, but have become less pronounced as some of the uncertainty surrounding international trade is reheating. lagarde speaking at her second press conference. the brooch she wore was an owl. the question is, was she more hawkish today. , at the margin, paul, a little more hawkish. paul: just a fraction. the euros spiked higher. that was when she said there were signs of an underlying improvement or improvement in underlying inflation. she medially went on to say inflation is still too low and a highly accommodative policy is needed. not all of this year or next year. that will bring to your back down again. the message is the tensions at ease, there's rumors revit -- room to have a rethink. that's a relief. ecb watchers get what they were looking for today? tha

and important policy coordination between the federal reserve in the bank of england in the european central bank bank of japan for example we're a little bit worried that in the event of serious economic problems in 2020 you're just not going to get that sort of policy alignment whether it's monetary policy or fiscal policy these multilateral solutions are going to be much much harder to come by i thought would you would you agree with that well we've got 15 trillion dollars worth of investment if you like spending from central banks globally since the financial crisis began and the result has been effectively been a lost decade. so it hasn't really done a great deal of but from a massive inflation of asset prices which has led to inequality which is that the political problems which is you know so we'll see where that's actually ended up leading. it has got to the stage where you can only stretch a piece of string that far and we do and in the central banks while the central banks have been working overtime in cutting in easing monetary policy it's allowed governments and politicians to basical

in december, a promise of a trade deal between china and the u.s., more stimulus from the european central bank, more certainty around brexit. despite all of that, the numbers dipped down more and it was a gauge of confidence among manufacturers continues to slump. david: germany seems to be leading the way down. to what extent is this brexit hangover because we are not sure what happens with the trade deal , or is it china? what is it? then: it is probably more global trade tension that is hurting germany. they export all over the world. brexit is important but more of a sideshow in the general sentiment in the global economy. it was distracting because there was reason to be more optimistic last month. david: thank you so much for reporting from london. that is brian swint. now it is time when we get a check on how the markets are reacting to the top stories with abigail doolittle. i thought i knew what you are talk about a -- what you would talk about because it is green all over. abigial: last year's themes continuing into this year. happy new year. not surprising to see this rally. the nua

say no need tot fear, european central bank officials dismiss concerns of a recession.n the data later this morning. the cast trade is less than an hour away. ♪ matt: duty-bound.

. >> european central banks say six out of 109 bankses evaluated last year had a level of financial strength below what it wanted to see for 2020. four of the banks remedied the shortfall at the end of december while the other two have been told to take action. the e.c.b. requires banks to hold a minimum capital amount and an additional nonbinding buffer as well. nike says its online store sold out of kobe bryant apparel in the two days after his death contradicting a report the company pulled merchandise to thwart profiteers. nike declined to comment on the volume or the revenue. espn reported that nike removed all products to stop stockpiling from fans who would sell it later on secondary markets. the number of confirmed cases of coronavirus soaring. our china correspondent joins us from beijing. get us to speed with what's happening this very minute. >> the numbers continue to rise now. the official number of confirmed cases is nearly 6,000 ith the death rising past 132. it is in china, every province, asia, the united states, germany. the u.s. and u.k. are telling residentses to avoid al

let's keep it on european central bank's. is franÇoist villeroy de galhau.thank you so much for joining us. we had an extensive interview with the ecb president this morning, saying she wants to focus on the facts. sheavor of -- in the past, has argued for symmetrical practices. do you think there is a bias towards that? franÇois: we use a window of opportunity, and there is a good, clean spirit, let me stress it, around our new president, christine lagarde, and second, there is some stabilization of the economic outlook, confirmed by the last pmi this morning. so we have got favorable conditions, we use them. we should not confuse the strategy today as we just announced yesterday, if you allow me. let me express one point, inflation target will be one target, but let me stress the outlook of the strategic review. it should go beyond the theester specialist, with economy, markets, etc. it should go also to businesses anti-to european citizens, and it is very important, not only for reasons of democracy and accountability, but also for reasons of economic eff

prompted a bed to leave the unions they say the troika of the international monetary fund the european central bank and the european commission are experimenting with a new kind of privatization. you would strike only for a moment at the time the day is today and if they strike. very going no where going to trade unionists and me thinking since it's an international you know trying to use me think they very much interested thing in the paper they say sure that this news thing there and they still or it's going to sky here and use that since they're private i say even the port authority or at least city it's faced features on the part of you know important story this is that the envelope or getting there or appears for the 3rd to headquarters and it will be privatized the day after and this meeting we've been given to the costco. because costco doesn't recognize unions the doctors feared they will go from being skilled employees with secure jobs to temporary workers with no rights. can you explain of what is the difference between the working conditions if the part of paedos which is still old by th

. >> china down nearly 3%, european markets are mostly lower today after the european central bank opted with christine lagarde striking a more devilish tone than expected they're set to launch the first policy review since 2003 aiming to tackle whether the inflation target of around 2% is still appropriate. lagarde noticed that lower wages are underpinning the euro economy along with a sluggish manufacturing environment. listen in. >> in particular, the weakness in the manufacturing sector remains a drag on euro-area growth momentum. >> now, adding to pressure in europe are growing fears of the spread of coronavirus. the european center for disease prevention and control noted the further spread of the virus is likely we've been watching the impact on luxury retailers that rely on the chinese market, like lvmh, richemont lower. >> seema, thank you very much. sue herera has a news update >> hello, everyone here's what's happening at this hour the trump administration publishing new visa rules aimed at restricting what's called birth tourism in which women travel to the u.s. to give birth

in the fear in the european commission european central bank institutions where all of these people who are here tonight are not represented the dog. it's the same realisation that sparked the 2011 base of resistance which spread from sin that must carry the. words of the soul in spain across europe to bulgaria romania still enough and even for a should. be. in bosnia the citizens assemblies went beyond making easy to satisfy demands and like all colonial resistance movements demanded the right to rule themselves. what you can see in the european union today is that we have at least 2 directions one directions we have seen in hungary. and in other countries when we have the rise of right wing extremist movements what we can see in paris today is that we have also an attempt of direct democracy which is not linked to right wing extremism but that this link to the critique of the labor law which was the trigger for rotha it is linked to solidarity more once we try to help the refugees and these are it is a creation of a new political image in asia. and in part 2 we look at but that would

prompted a better with the unions they say the troika of the international monetary fund the european central bank and the european commission are experimenting with a new kind of privatization. you would strike over the coming days 20 days today at the end of day strike. very going where going to trade unionists and me thinking since it's an international trade to us we think they are very much interested thing the paper they say sure that is news stream and these 2 ports which is quite unusual since they are private i say even the port authority or at least city it's fish features on the part of your knowing that all of this is that the envelope forgetting there for a passport authority headquarters and it will be privatized the day after and this building we've been given to the costco. because costco doesn't recognize unions the doctors fear they will go from being skilled employees with secure jobs to temporary workers with no rights. can you explain us what is the difference between the working conditions if the part of paedos which is still old by the greek state and the parts which is alre

the european central bank put together analysis.hey found the impact of a 10% rise in oil prices, you see about a .1% gdp growth rate being shaved off of europe's growth consensus that, of course, increases in the second year and the third year now, if this situation were to play out, then there's the foreign policy discussion as to whether europe warms up to russia, you're seeing the north stream pipeline being built up between russia and europe. that, of course, is natural gas. but still there is a conversation being -- taking place around what happens -- >> that links germany to russia in a very meaningful way from an energy perspective russia literally could turn off the lights in germany because that second pipeline >> and if prices continue to rise, you could only see europe warming up to germany even further, the state department has been saying and threatening the companies that are involved in the construction of this pipeline will be sanctioned if they don't -- if they don't stout constructing that. that is expected to go