francine lacqua in madrid and i am in new york.. ♪ tom: this morning after the state of the union before chair yellen's final fed meeting, the dollar fines avery nude weakness. a word from the president on weak dollar policy. -- sit on their hands. he wants federal employees out -- and are we on the edge of reagan? in this hour, martin s feldstein on the deficit. i am tom keene. in madrid is francine lacqua. good morning, why are you in the trade? francine: r.i.m and madrid. we just finished an interview with each share of santander bank. uss is a great benchmark for to see if they're concerned about protectionism and the health of latin america. in theme up and mexico state of the union address. tom: and the building of a wall that perhaps will be budgeted. first, first word news. taylor: after the state of the union speech, trump was overheard telling a republican lawmaker he is 100% planning to release the classified memo. the memo raises questions about the russia investigation. federal reserve policymakers are expected to main

i'm francine lacqua.'ve seen quite a lot of movement when it comes to euro-dollar. we are seeing a little bit more of dollar strength. we did hear from the european central bank. one of its board members saying it should adjust its policy guide before the summer. it shouldn't have any problems in the inside of the asset purchases. that's got the moves a little bit jittery. it's having an impact on euro-dollar. seeing a little bit of movement on those german bonds. , we have information from trump's first year. later on, we get a view on trade in the global economy. still to come, jim o'neill. he talks emerging markets. to the firstaight word news. nejra: brent crude has gone through $70 for the first time in three years. closing level yesterday. hedge funds hit bullish bests. a view that opec and its partners will end their supply cuts early is spreading. all predicting a wind that will start from the middle of the year. offeringgovernment is a proposal to bring on the taps. according to three people with

he spoke with francine lacqua earlier on.he started by asking if he was worried about the risk of increased protectionism. >> we all know there could be some decisions. protectionism historically has not been good for trade and growth in the world. francine: if you look at some of the headwinds that a lot of the face -- banks face, you are talking for some settlements with authorities, there is an increase in interest rates which would affect markets, what do you worry about the most? frederic: i am optimistic for the european banking sector. hopefully with this kind of growth, we should see the big beginning. second, growth is good for banks. flows and effectively, we are also seeing the end of the regulatory agenda. we are now able to focus on the big industrial transformation and i am very optimistic because when i see this world, yes it is fractured, at the same time, at the eurozone level, there is a big fraud -- project to further integrate. , good, positive momentum and i am optimistic for us. ceo that was socgen's spe

london.ncine lacqua in tom keene out our eurasia headquarters.ts, including jack lew, and the head of eurasia group. in the meantime, donald trump -- has call for change in iran, with demonstrators voicing their discontent against the country's leaders. at least 13 people may have died. get the latest -- let's get the latest. air, or a revolutionary with this be going too far, describing the protests? >> i think it is going very far. way too far. i have seen on twitter, especially people who are not in the country -- perhaps maybe in washington or elsewhere -- asking this question out loud. these protests, the thing that is rare about them is they are scattered across different cities around the country, and they are having simultaneously. areslogans being chanted against the political system in iran. they are dramatic and severe. they are stronger than we have maybe heard in the past. but they are nothing like the numbers we saw in 2009, according to accounts from the time. the number of people coming out may be around the tens of thousands alto

i'm francine lacqua here in london. german economy boosting 2.2%. -- 2.3% for 2017 , but it came in at 2.2%. an impact on your dollar, one. 1939 -- 1.1939. we had a little volatility over the last couple days. markets we are hoping will grow worldwide, and tend to focus on earnings. today, we will talk a lot about that. of 48le bit of zigzagging hours. yield at 2.54. coming up on "bloomberg: surveillance." ," talking with a leader from armstrong, and another guest bolus act -- oldish expectations. ceo -- frank del rio. let's get straight to bloomberg first word news. here's nejra cehic. a reportina has claiming officials are reviewing the country's foreign exchange holdings, recommending selling or holding purchases of the u.s. treasury, might have quoted a wrong source. the state administration of foreign exchange said "we think a report might have had wrong sources or may have fake news." there was a report that it wasn't clear whether the recommendation was adopted. u.s. president donald trump has agreed that america

let's get straight to the slopes with francine lacqua.e: i'm pleased to be joined here in the first interview of the day for him. we have a lot to talk about. we will be away from the yesterdayts, with tariffs on solar panels and washing machines. good morning. thank you for joining us so early in freezing davos. it seems there is a wave of optimism in davos. growth is ok. bank of england is ok. life for you will get easier, then president trump says he will slap some tariffs. are used concern we will go into a stage of protectionism? >> when i think about the walls of snow, and risk everywhere. finemies are doing everywhere. in most countries at least. the imf has revised its forecasts. we all know there will be decisions which could slow down the economy. is not good for trade and growth in the world. francine: if you look at the there is an increase in interest rates that will impact the markets. what you worry about the most? >> for the europe p.m. banking -- for the european banking sector, with this kind of growth, we should see the

francine lacqua speaking to philip hammond. a very nice interview coming up with theresa may, the british prime minister. she will be joining us a little bit later on in the morning. that conversation is one that you certainly do not want to miss. this is bloomberg. ♪ guy: 20 minutes into the market session, let's take a look at the map. let's show you what is happening on the bloomberg this morning. as you can see, most of europe from an equity point of view, the level not going anywhere this morning. we are drifting sideways. it was a negative session yesterday, driven by what was happening to the dollar. that is affected by markets like the ftse 100. a sector level, a stock level, certainly more action coming through. oil continues to be a big feature. brent north of $70 per barrel. pushing on in the data and the dollar map. matt: saudi aramco's ceo says the most important tax paid by state-owned energy diet will fluctuate -- giant will fluctuate with the price of oil, clearly. francine lacqua in davos. -- saying the decisio

let's get to davos were francine lacqua is joined by two guests.re joined former prime minister of italy, and the vice president european investment bank. thank you gentlemen for joining us on this cold but nice day in davos. is this a little bit of european growth would look like? are we did get a deal on brexit? here in switzerland we are not exactly the european union. you are confident about brexit? thing is the overall european economic situation. if you want to point to specific we maylike brexit, discuss them. i am not confident on brexit. i think it was not exactly a smart move. i have to be competent on italy. and i am even confident that the italian elections are not going to be is disruptive as we might have thought six months ago. francine: on brexit, do you believe they will reach an agreement on financial services? >> usually the nature of negotiations eu find a last-minute deal at some stage, and then everyone will be disappointed. the solution is always suboptimal. the difficult the for the u.k. is to understand that when you join t

tom: we'll go to francine lacqua.ve you my holiday time so that you recuperate. tom: i have my organic hand sanitizer here. blackrock accepteds it over to sterilize me because i'm giving fran seen the -- francine the plague. seriously, that's all we do. we're animals. we studied 80 hours a week trying to get an edge. right? >> yeah, i mean -- tom: you're italian. what are you asking him -- >> i don't think millennials just like holidays. tom: thank you. do you agree, guy? guy: absolutely. avocados lately. francine: "surveillance" exclusive. we're talking the holiday. we'll have plenty more on your markets. a little bit of movement on the euro. a little bit of movement on euro trade. we'll be back with alberto gallo. this time won't be talking holidays. we'll be talking treasuries. this is bloomberg. ♪ tom: bloomberg "surveillance." good morning everyone from london. francine lacqua and tom keene. alberto gallo with us. we were talking about trying to do something with the vacation days. anthony gardiner didn't believe

with me, francine lacqua in london.sion in the last hour on brexit. i cannot imagine the discussion we will have with kevin cirilli in about 10 minutes. francine: i am really looking forward to it. i have been reading some of the excerpts. tom: look at you. francine: i got it in pdf's. i don't know what the consequences of this book are or will be, but it feels important. i think rupert harrison was making a good point. the question is whether the president wants to distract from some of the saga and do something on trade and protectionism. thank stephanie baker for "fire and fury" and how we are treating it here. here is taylor riggs. taylor: north korea has agreed to the first formal talks with south korea since 2015. kim jong-un's regime will meet with south korea's next week. they will discuss reducing tensions before the winter olympics. south korea has -- north korea has offered to send a delegation to the games. -- the trumpurity administration says it will withhold $255 million in aid while it reviews pakistan's

i am francine lacqua.

she can in london, francine lacqua. how did i do?get a side job translating the book into french. rally.are extending the politics, left right and center. tom: right now, the president at camp david and the what has. there is taylor riggs. taylor: steve bannon is trying to get back on president trump's good side. he has issued an apology. his remarks came in a new behind the scenes book that raised doubts about president trump's fitness for office. the president's allies appeared on sunday talk shows to defend him. theresa may will reshuffle her cabinet today according to a government spokesman. willapers announced she promote new faces from a younger and more diverse generation of conservatives. wasdeputy damien green forced to quit last month after an inquiry about pornography on his computer. make or break talks would open up a door to a fourth term for angela merkel. she is trying to renew her alliance with the social democrats. she does not want to face another election or govern without a majority. the two koreas will hold thei

this is "bloomberg surveillance," i'm francine lacqua.therisks financial crisis according to philip hammond and david davis. in a joint article, they said they want cooperation between expensivedes for an deal covering both goods and financial services. joining us is david merritt, and christian keller is also still with us. this first of all, is quite odd. you have the chancellor and the brexit secretary writing jointly within a german newspaper. they are going for a domestic german audience. >> they will be there tomorrow, meeting with business leaders and officials. what we are seeing are the be ginnings of the offensive around europe and the diplomacy ahead of the negotiations on trade. it's interesting, this charm offensive. of course, this is one of the levers, i think, the government thinks it has, the financial clout of london. this is one of the big debates we will have over the next few weeks and months, the degree to which financial services will be transacted through london and the rest of the european union. their argument is

i am francine lacqua in london.t to the business flash with nejra cehic -- we will get to that in a second. blackberry's effort to push further into the self driving car has pushed off. >> in all cases, we are providing the safety upgrading securitysafety and part of the operating system for the autonomous vehicle and the platform. --t is how we are going to you know very well, when we first talked about me taking this job, was to really create a new category for us to dominate in. i would not use the word "dominate," that we are doing extremely well now in that category. >> how will blackberry help by do become a common player -- player?come a large john: they are ambitious and creating the autonomous vehicle so they ared putting together some code and a lot of partnership, and they brought us in as one of their operating system platforms. because of the safety and security certification that we have, and with that they should be rather complete in going after the car industry. i assume that the auto industry will

francine lacqua and tom keene. for smart conversation in the swiss alps. right now, single best chart. ron temple with us. i have shown this chart many times it really goes back. 2000 exuberance. we are nowhere near that right now with a huge gap to the same lift we saw in the silliness of 2000. how do we have the courage to be in the markets in 2018? >> keep focusing on the fundamentals of the economy. just got a significant tax cut which elevates earnings growth even moke -- even more. this is a good environment and there are risks. these are risks that we can basically -- plus plus option. a jump condition of tax reform. do you combine that with sustainable revenue growth and sustainable operating income? >> the important thing to me about the synchronized global recovery is i think we are going to get stronger wage growth which does theoretically put pressure on margins but it also means consumers have more money to spend which means more topline growth. this is a very positive environment for companies. part o

i am francine lacqua. holdings chairman -- has been released from the ritz carlton in riyadh. will shares of our leads company lead --- shares of our -- yousefd's company gamal el-din joins us now from dubai. good morning. give us details on the state. has everyone been released? yousef: it is almost open for business. we are winding things down. alwaleed has been released. there are uncertainty and questions that are yet the question -- yet to be answered. we understand he does get to maintain control and kingdom holdings. we are seeing the stock sold -- stocks soar. still casting is a shadow over saudi arabia. many see the anticorruption probe is more about political consolidation. when needed to be clarified, what needs to happen was more transparency. it is seen as a net positive. francine. francine: the iranians have also been very vocal about concerns that oil prices are just rising too high. i be getting any more comments -- are we getting anymore comments? yousef: it has been a busy week we had the

today on "leaders with lacqua,"

this is francine lacqua in p[aris. it will be in action-packed shows uprancine lacqua by tomorrow. frigid the bloomberg first word news. njer: sanofi has agreed to purchase seven point $6 billion. values the hemophilia drug maker bioverativ at $105 per share in a 60% premium over the closing price on friday. richment is offering 2.7 billion euros. event complete control over the finance business. richemont already owns about 50% of the unit. more of the subsidiaries halted the stock from training pending .major announcements most of the subsidiaries halted the stock from trading pending major announcements. says theelecom's ceo fifth generation of wireless technology will be a revolution for his industry. tim cook bloomberg the company will be able to provide dedicated software platforms for the president. i will benefit from andrew sharing. he also hates the made in the u.s. and the positive impact the republican stepped inside. it is not something that is just regulated. text reform. we have a monetary policy decision from the bank of japan. in on thursday, it is the ecb's term.

i am francine lacqua. we have a great lineup. to the primespeak minister and we are joined by the deputy governor of sweden's riksbank. we will also be speaking to the prime minister of italy. ceo.he saudi aramco there are plenty of good interviews coming up. trump's new trade barriers are putting more pressure on the nafta talks when they resume later this week. ont is as important taxes washing machines and solar affect canada and mexico. >> we are working very hard to make sure our neighbors to the south recognize how important nafta is and that it benefits not just our economy, but his economy, and the world economy. very much open to re trade deals involving more people. has withdrawner the offer he made last week to give donald trump more than the initial $1.6 billion he requested for the u.s.-mexico border wall. republicans called the move a step back in the continuing debate for immigration. donald trump tweeted, crying chuck schumer understands that if there is no wall, there is no daca. the u.s. federal reserve governor

i'm francine lacqua here in london.et's get you a roundup of the week sick of brexit news with nejra cehic. nejra: the ceo of lloyds told bloomberg she is still planning for a hard brexit. the comments come as the u.k. is preparing to resume talks with the european union. >> we're still going full steam ahead on our plans. about 2 billion euros of business for us. asare going full steam ahead if it is going to be a hard brexit. may's hopes of thawing frosty relations with donald trump at a meeting in davos next week look to be fading. according to people familiar with the matter, the prime minister's team wanted to schedule a conversation during the world economic forum. while there is still a chance they will meet, coordinating their diaries is said to the proving difficult. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm nejra cehic. this is bloomberg. francine: thank you so much. just getting some u.k. retail sales. if you look at retail sales excluding fu

vonnie: that is francine lacqua in davos, switzerland. still ahead, tom farley.ow far will his exchange chase the saudi aramco ipo? that is next. this is bloomberg. ♪ from bloomberg world headquarters in new york, i am vonnie quinn. >> i am mark barton. this is "bloomberg markets." let's get to the european central bank in frankfurt. mario draghi expressing convention -- expressing conviction the area would revive. joining us is maxine of bloomberg economics. draghi'siting for commentary on the euro. it seems that if he was attempting to stop the euro's dissent, it didn't work. >> he is downplaying the effect on inflation. volatility is something they are monitoring. volatility is not something that you can do a lot about. you can monitor it. is quite small. they're looking at the trade weighted euro. since the last meeting. it is upset a little bit by the oil prices also going up. the effect on inflation is not something that is an expense to the ecb that is dramatic or worrying. this is not something that he was trying to do. troublesome are steve mnuchin's rem

mark: that is the riksbank governor speaking with francine lacqua and tom keene earlier.llowing stocks less than 35 minutes away from the embassy monday sessions. gains decline and in frankfurt and paris. i will leave you with the currency boards. a lot of data out of gdp inflation, a massive week. this is bloomberg. ♪ . . mark: is 11:00 in new york and midnight in hong kong, 30th left in the trading day in europe. from bloomberg european headquarters, i mark barton. fromnew york -- vonnie: new york, on vonnie quinn. this is the european close on "bloomberg markets." ♪ mark: here are the top stories we are covering from the bloomberg and around the world. prime minister theresa may comes under increasing pressure from her own party over brexit negotiations. some calling for her ouster, others rallying to her defense today. heist, $.5pto billion in digital's of an stolen from a japanese exchange. the security of cybersecurity in a digital from regulation. exception to the down day. spencer if heck sees sell signals flashing. european equities

the santander chairman speaking to a very own francine lacqua in madrid earlier.n the european close, less than 31 minutes what from the -- away from the end of the session. you can see it on the lovely -- board right there. gauge, stoxx 600 falling for a third day. finished the month higher, though, strongest since october. eurozone inflation, headline inflation weaker, better than estimated but still weaker. core inflation picking up, but well below the ecb's target range. giving the ecb food for thought as it considers whether to -- this is the bond market today. you are seeing the u.k. and the german 10-year yield rising. close is 33 minutes away. ♪ . mark: 11:00 a.m. in new york and 4:00 p.m. in london. midnight in hong kong. 30 minutes left in the trading day in europe. from bloomberg european headquarters, i am mark barton. vonnie: i am vonnie quinn and this is the european close on bloomberg markets. ♪ mark: here are the top stories we are covering. stocks snap a two day losing streak with the dollar slumped deepening after the state of the union address.

i am francine lacqua.008, central banks have added trillions of dollars to their balance sheet, driving yields to where they never have been before. so now, as they start to tighten monetary policy, is the world economy really ready for the end of easy money? please, give a big round of ourlaws applause to wonderful panelists. [applause] francine: radel io, bridgewater associates founder, the financial research chairman, and the chairman of ubs. thank you for joining us. we will start on currencies -- we will get to inflation in a secon.d there's been so much talk as to whether we are entering a phase of currency wwaars. if we are, how much does that complicate the world of central banks? >> hello. good morning. war is the last thing the global economy needs today. ratese in a world where should not be targeted for competitive purposes. let's stick to that. and we see a lot of activity being created by different statesman. and any discussion on the acceleration should be sent back to where it belongs. that

today on "leaders with lacqua," we meet jean paul agon, chairman and ceo of l'oreal. so much.

i'm francine lacqua. let's check on with your markets.re is a little bit of a downside on the stoxx 600. euro-dollar, little bit of an improvement there. coming up on bloomberg surveillance, we talk european growth. to our man from jpmorgan. then we talked to teri haynes. of the get a preview state of the union address. a let's get to the bloomberg first world news. nejra: the house of representatives has committee -- has voted to get clearance to release a republican memo. it alleges bias. say thetive republicans investigation to come in ties to the white house are under false pretenses. >> for the first time the 10 years or so i have been on the committee, there is a vote to politicize the declassification process of intelligence. that would could potentially copper my sources and methods. the u.s. secretary has announced a list of oligarchs in russia with ties to vladimir putin. it includes 96 oligarchs. -- willmed will not all not automatically face in the sanctions of inclusion may cause banks not to do business with them. there is f

tom keene with francine lacqua, lots to talk about.nd up about burberry and i wound up about 2% yield above. right now in new york city with our first word news, here's taylor riggs. on capitol hill, house republican leaders are trying to come up with a stop gap spending plan that would prevent the government shutdown friday. the measure would delay obamacare taxes and provide money for children's health insurance program. any plans could not pass unless it has democrat votes in the senate. a former c.i.a. officer suspected of helping china identified u.s. spies has been arrested. he has been accused of unlawful retention of national defense investigation. as tolso a suspect whether imola led to the deaths of american spies in china. the commanders of two u.s. navy destroyers involved in deadly collations will face court-martial charges that may include net judge it -- negligent homicide. both accidents took place in the western pacific. other officers face charges that include dereliction of duty. mario draghiviewed for attending meet

up next, it's "bloomberg surveillance" with francine lacqua.m. ♪ is this a phone? or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. are markets ready? mine is bigger than yours. president trump takes to twitter after kim jong un warns the nuclear button is always on his desk. stocks averaged fresh record highs. ♪ good morning, everyone and welcome to "bloomberg surveillance," i'm francine lacqua in london. we are seeing a littl ebit related to eur

france while lacqua is up next is up next lacqua with "surveillance."ancine: downward dollar. pressure on the currency continues. will we see a government shutdown on friday? the strong as level since december of 2015. chinese gdp. and hope in hthe city. the financial services sector has a chance of getting a good brexit deal. ♪ francine: good morn

he spoke with francine lacqua. corruption got quite bad. seeping into state institutions, state owned enterprises and it took quite a bit of time for all of us to realize that this was a network which was well thought out which resulted in the capturing of the state. revealingaper started that itls, we realized was former serious than what we had hoped. cleaning up is going to be quite a task, but we have got to start somewhere. i believe that we have already started. we're cleaning up our state enterprises and leslie we dismissed a whole board of electricity company that we have. we installed a new board and a new ceo. those who have been found complicit in wrongdoing have been removed and will be removed as we fine-tune. the wheels of change are moving now. they are going to start sweeping up as we go into other government departments, state owned enterprises. it is an imperative that we should clean up south africa. read our country of corruption, because that is why -- that is what is holding us back from reaching higher levels of growt

today on "leaders with lacqua," we meet jean paul agon, chairman and ceo of l'oreal.hank you so much. jean paul: pleasure. francine: what happened to l'oreal in the last 10 years? innovation? your share price has grown. was it exciting times? jean paul: very exciting. i started as ceo 10 years ago. it has been 10 years very exciting. of course, we had crisis in 2008 and 2009, but globally the business has been very good. we have been growing, acquiring brands, launching new products, gaining market share everywhere, in europe, usa, china, so very exciting, fantastic. francine: what has been the most fun? paul: the most fun has been the past three or four years. thanks to digital revolution, everything has been transformed. as i tell my teams, i think this, i industry, our business, our company has more chance in the past three years than in the previous 30 years, so it is an amazing time, extremely exciting. francine: is this the way you sell, or the way people look at makeup? jean paul: no, in fact it is the relationship between brands and consumers. in fact, digital

francine lacqua and tom keene. right now we need the first word news brief. see the possibility of a deal allowing young undocumented immigrants to stay in the u.s. despite president trump's comments that the effort is probably dead. is part of a bigger debate over federal spending. congress has to pass a bill by friday. president trump is in a fight with the wall street journal over comments he made about kim jong-un. besides differ on what audio recordings indicate. sides differ on what audio recordings indicate. the palestinian authority president says they will try to replace the u.s. with other international players in peace talks with israel. abbas criticized trump for recognizing jerusalem as israel's capital. the china banking regulatory commission has outlined its priorities which include examining bank compliance with rules, restricting loans for real estate developers and looking into wealth management businesses. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. u.k. constructio

today on "leaders with lacqua," we meet jean paul agon, chairman and ceo of l'oreal.hank you so much. jean paul: pleasure. francine: what happened to l'oreal in the last 10 years? innovation? your share price has grown. was it exciting times? jean paul: very exciting. i started as ceo 10 years ago. it has been 10 years very exciting. of course we had crisis in 2008 and 2009, but globally the business has been very good. we have been growing, acquiring brands, launching new products, gaining market share everywhere, in europe, usa, china, so very exciting, fantastic. francine: what has been the most fun? jean paul: the past 3-4 years. thanks to digital revolution, everything has been transformed. as i tell my teams, i think this, i industry, our business, our company has more chance in the past three years than in the previous 30 years, so it is an amazing time, extremely exciting. francine: is this the way you sell or the way people look at makeup? jean paul: no, in fact it is the relationships between brands and consumers. in fact, digital has completely transformed

francine lacqua joined by a calm teen. join the daybreak team on bloomberg radio. this is bloomberg. ♪ francine: the fire, the fear in the fallout. an apology from steve bannon. there are still a lot of issues to be addressed in europe that good derail the recovery. president macron arrives in china, echoing the call for moral markel upset. -- for more market upset. but what could endanger the retreat? good morning. welcome to "bloomberg surveillance," i'm francine lacqua in london. let's check in on your markets.

francine lacqua with me. an extraordinarily serious and terse prime minister may with many agendas for her today. francine: that was without a doubt the interview of the day so far. we also saw president trump land just a couple minutes ago, about 15 minutes ago. we saw the helicopter for our radio listeners in london. good morning to you. davos man. i'm looking for the davos man. i'm seeing little women. there are several chairs. tom: it is a big shift. movementen a gradual toward this important shift. here we are with their conversation with madame lagarde this morning, who has provided so much leadership on women representation, with angela merkel coming here, it is a radically different davos among social issues and the politics this year than last year. francine: that is underlying the main concern, which is probably currencies and protectionism and tariffs and everyone awaiting what president trump will say in his speech tomorrow i 2:00 p.m. coming up this hour, we have a pretty packed show for you. we

today on "leaders with lacqua," we meet one of the most recognized names in swiss banking.e is now vice-chairman of -- at blackrock, the world's biggest money manager, which handles more than $5 trillion in assets. so we are 10 years on from the financial crisis. what have we learned? philipp: we have learned that we had too much leverage in the system without any doubt. and that when you have leverage, bad things happen. not only do they happen, but when they happen, the effects tend to be amplified. so i think that is the key take away from it all. we have also learned that this notion of kind of letting the market be totally free, that governments really should get out of the way, that wasn't a very good idea. i think what stands out is banks needed much, much more capital than they had at the time. we had capital levels that were excessively low. i mean, in some cases, these -- they were these banks were , leveraged nearly 100 times. and that, to me, has always been the key takeaway. in fact, in some case -- in some ways i wish we had focused more on the capital issue a

today on "leaders with lacqua," we meet jean paul agon, chairman and ceo of l'oreal.nk you so much.

i am francine lacqua in london, tom keene in new york.re we speak to stephen engle's. we have quite a lot of earnings coming up, and of course brexit with the cabinet reshuffle that was not quite as genius as expected. tom: i sent michael wolff to write on it. i have no idea what happened. david merrill will stop by and a couple of hours. i have no idea what prime minister may did yesterday. francine: this was a show of then from theresa may, and she basically tells all the ministers to come and see her and two say, no, and one and's up resigning. -- ends up resigning. tom: are the cats ok? ok.cine: the cats are still let's get to the bloomberg first word news. taylor: there was an early agreement as north and south korea began their first high-level talks in more than two years. kim jong-un's regime has agreed to send a delegation to the winter games in south korea. the south wants to resume negotiations on removing nuclear weapons from the korean peninsula. tom: taylor riggs, thank you so much. francine, why don't you start our data che

saudi aramco ceo told francine lacqua the decision on where to list the company is still being made.eady toompany, we are be listed in the second half of 2018. the transaction team that will carry that is currently waiting for the decision from the the venues that will be listed, because there is work that needs to be done in preparation for listing on the stock exchange, definitely in saudi arabia, but outside saudi arabia. as a company, we are ready. are hopeful we will be listed by the second half of 2018, but it is all depending on the decision. >> do think the government is nearing an agreement? what kind of things are they looking at to make a decision? >> where we are going to list of -- list saudi aramco is a major contributor to the gdp of saudi arabia. the decision is not like listing in the company. the government committees are ,ooking at listing saudi aramco different stock exchange decisions, and each need to be evaluated, then ultimately somebody needs to come up with a decision on the pros and cons on each listing venue. that is a lot of work considering the size of s

eurasians president -- eurasia's president shared his thoughts with tom keene and francine lacqua. >>e global economy feels the weight geopolitics do today people respond. they see it's a crisis. they know they need to do something. they have to bail things out. they have to do infrastructure projects. i have to get the banks ready. we had that in 2008. everyone knew. we all knew it was a crisis we had to respond. the geopolitics are easily as bad today globally as the economics where in 2008. they might be worse and yet there is no crisis. if you look at the americans the one superpower in the world today that could conceivably help to respond to dig us out of this crisis is actively doubling down. we are saying, we have no intention of providing the kind of certainty to our allies of supporting institutions so as a consequence anyone that looks at the geopolitics today has to understand this is not sustainable and the crises are coming. without question the top think tank research on the street, mckinsey global institute is just a miracle. i don't care about that. i want to know wha

too high so that we continue to -- an effect the prime minister of norway speaking with francine lacquarik schatzker earlier. erik joins us now with the chairman -- ,rik: i'm here with roger carr the chairman of bae systems. one year into the trump presidency, united states has not had a commander in favor of the military and defense since ronald reagan. 's donald trump good for bae business? roger: donald trump is committed to the military. that means a commitment to ensuring each of the countries and nato is equally committed to defense. you've given the right sort of encouragement to spend 20% of gdp throughout the whole of nato membership, which is clearly good for bae business. onk: he is coming to davos thursday. what do you hope you will telik l -- tell delegates are? roger: a positive message about world trade. the american message is clearly his core message. america is not vital to the world economy. i hope he shares a sense that he is first and foremost america but he has an eye to the rest of the world as well. chaos will it be utter here? roger: were ever american president