manus: you are a u.k. a german company, what are the conversations, your concern about brexit risks? is is readysay she to take us out of the eu. what are the conversations you are having? gete are interested that we clear regulations. uncertainty is not good for business. i am personally fully convinced that we need to have excellent trade relations with other countries. 90% of rolls-royce's are exported worldwide, so what i am we stay inin is that the u.k., a customs union, that allows the free flow of goods, capital, and talent. manus: have you made that voice known? >> we have made that voice very known. i have written a letter to my staff in the beginning of last year to outline what our thinking is. we did not want to influence anything, but we had a perspective. ar perspective is commercially driven one and a financially driven one. manus: the finish inside this , costs,ot like my car sterling down, aggressively push down, what are the consequences for pricing, for me if i want to pick up one of the

manus: thank you very much.ccused of violating pollution laws in the united states, the wouldleges the company suffer more than -- put software in more than 100 thousand vehicles allowing them to exceed limits. let's head to berlin and bloomberg's manager in -- managing director. benedict, expecting some to --benect5i 0-- benedict: fiat took a major hit. they have added software to about 100,000 engines in grand cherokee and raima cars. there is a notable difference that i think was important to point out. a defeatid not call it device, they said there was software with questions about. it was not properly registered and so on. that is one notable difference. there are far fewer cars, it is only about 100,000. in folksong we are about 11 million songs. the reaction, a very forceful ceo coming out and calling it hogwash. disappointedvery by this and that's really shows this company is willing to fight back. hads been blindsided, meetings with the epa a meeting despicable of weeks before and everything seemed fine

manus. manus: the latest on the markets from hong kong.st survey on manufacturing from china. 51.4 is the reading, shows that china's factory services on a relatively robust note. we are joined from hong kong. great to see you. what you make of the data? the word we are using in copy is stability. policy,s it mean for what is your take? economyows they got the where they wanted towards the end of last year. cost.f it has come at a higher, the exit from deflation was dragging. things are on an up right now. back policymakers can step off the stimulus pedal and do more on reforms. there is still plenty of challenge, exports remain slow. sentiment in america remains fragile and currency and capital outflows. none of the bigger challenges have gone away. manus: one of those challenges is the rebalancing. those companies which are self-healing. growth targets is something that is debated. betweencent and average 2020. there are rumblings. what do you make of the pullback and the de5% target facto redline in the sand? >> it is interesting. sayin

i am manus cranny. china has gone from being the global deflator to potentially the exporter of inflation. 5.5% busting through expectations. and that is what is driving markets. negative real rates. what we have done is track profits of chinese companies with those inflation-deflation numbers. down goes inflation and the prophets. profits in china have risen by or 2.5% in november. is there more to come? have we reset the gears? anna: there is a domestic implication. to what extent does it reset the inflation rate are globally. big debate in china as to what these numbers mean for the pboc. indid not see a big uptick cpi. let us check the risk radar. a 14ollar index hitting year high on january the third. things have looked differently, more sluggish in the last few years. manus: there does not seem to be an appetite in the market to build the dollar long. yellen will be speaking later this week. build the dollar long. rosencrantz is hawkish in his talk. he is talking about the unwinding of the balance

anna, manus? manus: thank you very much. central banks that takes this week's proceedings off, the bank of japan announced its first decision since trump. took th took to office. largely unchanged as it waits to see the impact of the recent decline in the yen and president trump's policies. let's get to the bank of japan in tokyo with kathleen hays, standing by. great to see you this morning. the bank of japan is still miles away from its inflation target, so i suppose the question islary didn't to do more? well, because it is doing so much already, manus, and waiting for the impact of everything as done over the last couple years to bear fruit. in a very small way, it is bearing a little bit of fruit. the bank of japan did nudge up , anddp forecast to 1.3% this was widely expected. today we saw industrial production slowing, retail sales weaker, but there is still a hope that the weak yen will boost exports, helping corporate profits and maybe feedthrough to higher wages. that's where the week parts of the bank of japan par

manus: inflation expectations.tish businesses see no choice but to hike prices according to a chamber of commerce report. this is bloomberg. ♪ anna: it is 1:49 in the morning in new york. of theflat at the start u.s. equity trading day. the asian market broadly speaking a more positive one. the japanese market set up in underperforming, perhaps the big story overnight what's happening with the yen and the dollar and the chinese currency. 6:49 here in london. let's get to the bloomberg business flash. >> volkswagen has been told it installingines after devices in diesel vehicles used to cheat emission test. a san francisco federal judge rejected a request on claims against the former bw chairman who said investors in the american depository receipts could improve. he knew the of the country's diesel issue. a spokeswoman did not immediately respond to requests for comments on the ruling. deutsche bank is considering an unusual approach to giving relief to subprime mortgage borrowers as part of a $7.2 billion settleme

manus: fighting back.ployers, from google to general electric, joined the backlash against trump's immigration. the u.s. government says green card holders won't be affected. anna: flight to haven. the dollar slides close to a two-month low and asian stocks decline. -- thetheresa may uk's highest court rules they have no right to challenge brexit. anna: overturning the establishment. win the french socialist presidential nomination in n. we are live in paris. manus: welcome to "bloomberg daybreak: europe," our flagship morning show. anna: welcome to the program. 7:00 in london, 8:00 if you are in much of france, germany, and the rest of europe. let's have a look at futures. suggestions of weakness at the start of the u.s. trading day. limited trading in asia because of the new year holiday. tokyo open, sydney open. we are getting a downward five coming through from the asian session and nervousness around donald trump policies, immigration, and the unpredictability of his policy announceements. manus: that

manus: u.k. minister theresa may touches down today in the usa, becoming the first international leader to meet donald trump since his inauguration. to decide on post-brexit trade deals between the two countries. our guest is still with us. theresa may goes to the united states. , thepeople have said to me trade in services relationship with europe, yes, the u.s. is important, but it's not going to trump anything that you get from europe, but it is important nonetheless. >> it is important. ,e know that in terms of brexit the best that is yet to be decided and will take longer than many think is the link that the journey. in the meantime, theresa may will need to speak to the other big economies and start to talk about trade deals with them. but eu trade law is that the u.k. cannot commit trade bigamy. we cannot sign up to a trade until we anybody else are fully outside the eu, and for a number of reasons, i think it will take about five years, not the two years that we are all looking for. ,anus

manus: revamping trade. president trump signs another executive order, this time with .rawing the u.s. from ttp he threatens u.s. businesses with a major attacks. the u.k.'s acclaim court will deliver its decision -- the u.k. supreme court will deliver its decision on whether the prime minister can trigger article 50. manus: you are welcome. this is bloomberg daybreak: europe. our flagship morning show. i am manus cranny in the city of london. anna edwards is on her way to the supreme court on the article 50 rolling. this is philip's which has itselfed it -- divested an organization. the fourth quarter adjusted comes in at a billion euros. in line. it is a slip below. a billion euros is what we earned in the fourth quarter. it will maintain a dividend of 80 cents per share in line with what the market had anticipated. they still have a shrew -- a huge -- the diagnostic business -- what will happen with it in terms of the u.s. from once to make america great. will that force people to buy shares in something

manus, back to you. manus: thank you very much. out of frankfurt today. up next, executives from the world's biggest dhp. -- bhp/ . metals continue to rise. details, next. this is bloomberg. ♪ manus: welcome back. it is the european market open, london. matt miller in frankfurt from the goldman sachs global strategy conference. copper futures are rocking it out this morning. the metal was seen as a bellwether for the global economy. is it up? there you go, just under 3% for the day. cannot rally continue? we had a meeting -- can that rally continue? powerpledges to develop for the mining industry. , managing editor for commodities. they are all on a journey, aren't they? tell me this, how much more of a leg up do you think this copper we havean have? will: had a couple of calls the last couple of days that's a 6000 as well within sight. we have had that from citigroup, who are pointing towards potential mining unrest in the industry. that from japan's biggest smelter today. that is being driven by optimism about the u.s. economy un

manus: let's talk about the economy.that the reality of what you have done is monumental in terms of floating the currency and withdrawing the bsies? what is a realistic growth model for egypt? nister, amr: we should expect this year something around 4% give or take. you are in a transition period, ok, transition period between action that might create some sort of, not the fastest way to grow, but you need to see investment coming to the country. this is the most important issue. now we are seeing diverse investment coming in terms of the portfolio, either b equity or debt. the next step is to see the real economy function, functioning at full steam. one of the hangovers on the economy was the situation of the currency. now this issue is being resolved. we expect to see more, and we are working on this investment floor so that also probably will encourage and bring more investment to the country as well. manus: inflation is the other issue for you and for the nation. $.14 is the publish level. 14% is the published level

manus: trade troubles. china is said to be considering retaliation if donald trump starts a trade war. tough act to follow. obama is set to hand to his successor at the net -- the best stretch of jobs in his presidency. ♪ anna: very warm welcome to bloomberg daybreak. rallied,e yuan has 2.21%. the biggest weekly rally on record. what do you do when the dollar drops and you want to get control of your currency? bit less thantle what the market expected. what we have for you this morning -- i want to bring you back to january of last year. rateis when the borrowing ratcheted higher. they are squeezing. is rising andrate the fixing rate is rising and the probability of the market taking the dollar-yuan above 70 has dropped from 65% to 36%. is a veryave here active interventionist movement by the pboc. perhaps they are sending a message to donald trump. anna: china says they are doing some expectation management. lookesting that when you back to january of last year and what this spike in overnight lead to,yuan

manus: we put together volatility and yields.ields are rising, but volatility is dropping back to levels we have not seen since brexit. to that end, with the debate were going to have, we're going to get cheaper heading -- cheaper credit, and the housing debate today. ae debate is this, we are in inflationary trajectory in the u.k. what is the impact of that in the terms of equity and bonds here in the u.k.? in the u.k. we've clearly got a slowing housing market in the bank of england reduced rates and august. i think the inflationary pressures are less in the u.k.. do you think it will put a cap on our inflation spiral? .> it will help reduce the rise it will put pressure on inflation but there will be counter pressure to that. you expecting inflation to build in the short, given the weakness in the pound? >> i think it will build up very slowly. overestimate the speed with which inflation will come to the u.k. we look ahead to eurozone's inflation number. this is bloomberg. ♪ anna: welcome back. this is "bloomberg daybreak: eur

i manus cranny. donald trump with his first press conference yesterday, seven days until his inauguration and this is what he managed to interview as the ,arkets, the trump trade because of the lack of detail, we have a great quote from oscar wilde, in matters of grave importance in terms of physical, style not sincerity. ofhas delivered a lack detail, and that's what the market has latched onto. his donald trump style -- this is the dollar index. you can saven, but the trump mania trade has faltered. anna: show me the details is the market of the message -- the message of the market. how much does he cut back on globalization and what kind of fiscal stimulus, more importantly. was that an unfair expectation? he was dominated by russia and donald trump's business interests, as we know. let's show you where we are on overnight interest. the dollar index reflecting the questioning of the trump trade, more so reflected in the dollar against the yen. the en increasing -- the yen increasing. lows: we are

manus: the u.s.ent trade rhetoric as opposed to policy, it does not have an iron ore, it does not have enough pigs feet, it does not have enough of all the commodities it takes to build roads, repair the road, build bridges, and do the kind of infrastructure he is talking about, so inflation could get a double crack. john: and the stimulus we are looking at in the u.s. does involve rises in these. one of the bigger questions however is whether, even if it is this a guest role in the u.s. -- whether it is successful in the u.s., whether it will be successful in other economies. japan, these u.k., other economies are seeing the consequence of the rise in notrlying prices but do necessarily have the stronger economies to with stand it. you will see an ever strengthening dollar which will ultimately cause problems for the u.s. as well. matt: i want to get back to your home market to the u.k., and looking at gc 3-d on the bloomberg. this allows us to grasp yield occurs in three dimensions. it is an intere

manus: u.k.me minister theresa may faces a possible revolt from lawmakers including members of her own party over the government's plans to eat -- to leave the eu. expected to press for a white paper following yesterday's supreme court ruling that -- the government do not have the right to invoke article 50. >> it was a great speech. the problem is it has very little data and very little policy. we need to see some of the cards and the only thing i can say is perhaps their preferences not to show them because perhaps they don't have any. anna: talking about theresa may keeping her cards close to her best on brexit. tracking all the policies, tracking the judicial ruling, and watching what was going on in markets at the same time, the pound went on a merry dance. if remus closed the day -- tell us what is moving the currency at the moment. >> is telling us more about the current developments as is theion that the u.k. biggest current account deficit of the major economies and the cheapest currency

manus: welcome back.gok --you are bloomberg markets. -- some analysts relate -- reiterated -- >> china is prepared to step up its it's good u.s. companies a president-elect donald trump takes punitive measures against chinese goods. people familiar with the matter, they include subjecting american --sinesses and launching anti- to scale back u.s. purchases of goods. orders adjust the procedural swings and inflation's dropping by two point 5% in october. at the same time, 1.8% in november. a slew of data suggesting germany's a colony strengthened at the end -- germany economy strengthened at the end of 2016. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries a pretty volatile series. we were going to talk about content, but let's talk about brexit. ruling next week on article 50. whether or not to resume will be able to trigger that in march. was was on the u.k. housing market? james: 20 reports saying we have a vast spike in the u.k. were this is large

manus: we're going to talk trump taking office next on bloomberg. ♪ manus: it's just gone 1:24 in theorning in washington, d.c. where the world prepares for the inauguration of the president-elect. his last tweet, keeping you up to date, thank you all for joining us at the lincoln memorial last night a very special evening. and of course let's make america great. hat was the slogan and what he reiterated again. anna: china, the second largest economy in the world, keeping an eye on this. manus: you get 6.8% growth but what did you do to get that? 6.7% for the whole year, the slowest growth since 1990, enviable for any other nation, but they got there via debt. they saw debt levels grow. the amount of loans in the economy grew by about 15%. loan growth doubled the amount of growth. what does that come with? that comes with risk and that comes with the propensity for bubbles. >> if you look positively on the story you say, we have a year where growth has come through for the middle class and now the central bank can turn to neutral policy to try to deflate some of the debt bubbles. if y

manus. us get into those markets now. juliette saly is standing by. yen is getting stronger and the chinese equity market is also under a bit of pressure. good to see you, juliette. juliette: it is a lot about what is happening in your part of the world. this is putting a lot of pressure into sentiment. there is not a lot to give investors a reason to buy into the equity market in asia today. you have also got the inauguration of donald trump later this week and concerns about a potential u.s. china trade risk, so we have seen the .7%.hai composite off this is the fifth session in a row markets have been in the red and this is the longest losing streak we have seen since august, 2015, when you will remember we had that crash and the depreciation of the you want -- the yuan. infrastructure is one of the front-runners. recommended to shareholders. one of the best performers in australia. australia's market is actually outperforming the rest of the region on the rally we saw in deal prices. you

manus. manus: thank you.bakck to davos, man with his pulse -- finger on the pulse of the british economy. chancellort is the of the exchequer, philip hammond. people are trying to figure out how negotiations will go, what happens next, what do you see as a transition deal, how long will that last, are we talking 18 months or two years? guest: what the prime minister talked about is the need to move forward quickly after we served the notice to scope up with the and state will look like and get an agreement on a practical solution for the and the state of the relationship between britain and the rest of the european union area but recognizing that will take some time to implement. until we get into the detailed talks we cannot say much time am a we have to be pragmatic. they will be systems to be put in place, businesses will need time to make a transition. the clear message that we are giving and i think this works for britain and for europe, no cliff edges, known and change for business, plenty of time to ad

manus: i manus cranny. is at the world economic forum.ooking forward to banking with the big thing, hsbc, we will hear more from them. that will be a big theme in the next 30 minutes as well. francine: we will speak to the head of the investment bank at ubs and berries ceos to try to get the temperatures on how they see risk and what their most concerned about. what i'm looking forward to is our panel on populism. you can call it the angry middle class. lagardeeak to christine , and radel lyons, who is a big fan of what donald trump is trying to do with the u.s. economy. really want to answer, do central banks have a say in this? are they the ones that lay the foundation? if you are a politician nowadays, remember there are elections in france, netherlands, and germany. what can you do to reconnect with your citizens? we will be joined by the brazilian finance minister on that panel and the italian prime minister. thank you very francine. stay with us for a moment. this is a chip equipment maker, euv.all about future of how quickly can th

manus: absolutely. if the search for havens.e set it in the headlines -- the trump rhetoric is rising, theresa may set to set out a 12 point plan. which signs could be lurching toward hard brexit, a single european market, staying in a different fashion. we have equities all away across the european numbers, down .2%. this manifests itself in the risk radar. yen fores into the the seventh day in a row. it's really the fx prison that is capturing the real, daily volatility in terms of markets. dollar-yen is moving higher. anna: and the gold price up by .7%, this appetite for haven assets on the day when theresa may is due to speak, and as we approach inauguration day. now let's get you caught up on news.loomberg first word the u.k. is likely to pull out of the eu single market and over home links asthe u.k. is likelyt of the eu single market and over home links as it seeks a new trading relationship, according to a person familiar with the matter. that is the message theresa may is expected to deliver today as she sets out her pl

manus: very good morning to you.he last time we caught up revenue growth would not return until the third quarter this year. if that still be gotten for the market and secondly and much more emotionally, the last time we spoke you have concerns about the middle east and about some of the geography. give us an update in terms of revenue, growth, and the geography in terms of whether areas have improved. eric: good morning to you. when you look at our growth profile, we have improvement between 2015 where we increased by 3.5%. 2016 we declined by 2.4%. by2016 we are impacted markets and we highlighted accounting for 1.4% of growth. impactsve that these are going to be having a much in 2017.gnitude this is why we have confidence that the company will return in the later part of 2017. anna: what is improved in the middle east in turkey? eric: our situation was such that we decided that we should limit our sales because we were not being paid. we will see that impact continuing in q1 but softening. as indle eastern turkey

the tigers defeat was compounded by another injury for manu tuilagi.has been ruled out of england's six nations training camp. here's our sports correspondent katie gornall. how many premierships prix teams would like it listen in to welford road is leicester's fortress. watching was england boss, eddiejones. with the six nations' looming, much attention was focussed on manu tuilagi but the injury—prone centre made little more than a cameo. another comeback cut frustratingly short. in a first—half dominated by the boot. the two sides trade pep tis, with 0wen williams putting leicester level, 6—6 at the

manu raju is covering this fast breaking story. manu, are you there? >> reporter: i am here, carol. president obama is not here yet. we do expect him to arrive right behind us momentarily. this is a rare visit by the president to meet with congressional democrats in the capitol. something he has really not done a whole lot of in his time in office, very significant in his last 16 days to try to strengthen the democratic resolve against efforts to try to dismantle his signature legacy item. as we know, it will be very difficult to stop republicans who do control both chambers, to prevent them from dismantling this law, carol. one of the questions going forward for the democrats in this room behind me, will they work with republicans in trying to replace the law? right now the democratic leadership says no. there are some moderate democrats who are open to the idea. >> manu, is there a chance that president obama and mike pence could run into each other accidentally on purpose? >> reporter: i don't think so. we're in two separate parts of the capitol. they're in the capitol building,

cnn's manu raju is live in philadelphia.eyla santiago is in mexico city. >> reporter: we're seeing tensions between the u.s. and mexico simmering in recent days. you saw president trump moving to finish this border wall that he touted during the

manus: everyone is looking at america.ere hints that there could be deals in the offing and you may be looking at m&a. will you scale up on wealth management? when will you shift gears in the u.s.? sergio: we are already convinced about what we do in the u.s. our wealth management business in 2010, we were losing $150 million pretax. momentum in the u.s. from an organic standpoint is still very good and we are very focused on growing organically. but as i mentioned in the past few times, the time of consolidation in our industry is clearly starting and it is almost inevitable to address both overcapacity and in some cases profitability issues. want to beou say you one of the players in that consolidation? sergio: consolidation is one option but not the option. we have to always look at what fits into our strategy. we have a clear strategy and we ourot want to dilute strategy for the sake of consolidating. a marriage, be strategic and financial in doing that so we are open to exploit any option that makes sense and accrues

thank you, very much, manu. "outfront" now, mark preston, executive editor, and dave gergen, rick santorum, presidential candidate in 2012, 2016. michael nutter, mayor of philadelphia. and david axelrod, former senior adviser to president obama. mark preston, let's start with you. when manu is doing this report, certainly the time line here is incredibly troubling. >> no doubt. and look, this story just broke a couple hours ago, so we won't know the full impact until perhaps tomorrow. but no question, when donald trump has said his number one domestics priority is to overhaul repeal and replace obamacare. you have your hhs secretary up against the wall, going into a hearing on wednesday to have to answer these questions. it's not good timing right now for donald trump. >> so you've been in the position where you could have done something like this. you didn't. >> well, i was broke when i was a senator, so -- didn't have any money to invest. >> we're talking up to $15,000 here and "wall street journal" reporting

manu, thank you very much. he mentioned the top republican in the house, paul ryan, vowing to repeal and replace simultaneously, he said it, in the first 100 days. speaker ryan said he wants to prevent millions of people from losing their coverage altogether. >> because we see more insurance companies pulling out, people are little or no choices, and another round of double digit premium increases, we really feel we need to stoep in and provide better choices and better options as fast as possible so we're going to move on this as quickly as we can. >> first 100 days? >> definitely is a plan within the first 100 days to get moving on this legislation. >> lest talk about this. i have bill press and lonnie chin, a former public policy director for mitt romney. mr. press, i'm coming to you in just a second here. lonnie, you first. you know the deal. you know as manu perfectly outlined, the first hesitations in this procedural vote with regard to either hesitation because there's no specific replacement plan or, yo

cnn's manu raju is live in philadelphia. leyla santiago is in mexico city. >> reporter: we're seeing tensions between the u.s. and mexico simmering in recent days. you saw president trump moving to finish this border wall that he touted during the campaign. president nieto addressed his country yesterday and said essentially we're not in favor of walls and we're certainly not going to pay for it. donald trump walk up this morning and shot back on twitter. this is what he wrote. "the u.s. has a $60 billion trade deficit with mexico. it has been a one-sided deal from the beginning of nafta with massive numbers of jobs and companies lost. if mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting." the two were slated to meet next week. the mexican president is catching plenty of heat in his own country for agreeing to this meeting. we'll see if it still comes to fruition. as for donald trump, today we are expecting him to take some executive actions on trade. he's also going

manu raju is with us, is president obama in the auditorium? >> reporter: yes, he is expected to leave any moment. it was a pep rally of sorts, carol, in this meeting, he actually told democrats that they should not do anything to help republicans replace the obamacare law if it is in fact repealed, he said, quote, don't rescue, according to sources in the room. he said, don't give them a few votes in the senate to pass a worse plan than the affordable care act. he was really telling his members, the democrats here, to draw a pretty firm line against working on any sort of replacement. interestingly, i'm told he also said that democrats and liberal activities should employ the tactics of the tea party in 2009, when the tea party activists stormed town halls, expressed their outrage at the passage of the affordable care act, and do the same thing with the repeal of the affordable care act, and let members of congress know that they should not go that route. his argument is it will be politically painful for republicans to go this route, to do th

set the scene for us, manu. >> reporter: yeah. hey, wolf. right here on the second floor of the senate office building, i'm right outside the hearing, where tom price is going to face a grilling with the senate finance committee. and that committee is very critical, because this is the one that will actually vote on tom price's nomination. unlike last weak's hearing, for dr. price, the congressman from georgia, that hearing by the senate health committee, they don't have a vote. this is very important. and it is part of this review that the senate finance committee did on congressman price's record. and they also found some issues that he did not disclose, initially, to the committee. we have obtained a memo to have the bipartisan staff from the senate finance committee released late last night, saying he did omit some issues from his questionnaire, saying that he did not disclose late tax payments on rental properties, also, he allegedly undervalued some stocks that he owned in that pharmaceutical firm. and that he also didn't disclose that

alice, rubio also said in that with manu this week when manu said, are you prepared to be the sole republicann committee to block this and slow it down? he said, quote, i'm prepared to do what's right. what do you think rubio's end game is here? >> that remains to be seen. i think it's important to note he hasn't said he's not going to vote for tillerson and he's asking simply the hard questions. look, at this stage of the game, after the hearings that we've seen, i think any republican that opposes tillerson's nomination is on an island against many gop heavyweights when it comes to national security. look at those that have supported tillerson. we've had stephen hadley, robert gates, condoleezza rice and heavyweights with foreign policy with the faith and confidence they need to support tillerson and his experience in not just the private sector but his experience in building national and global relationships which are critical to this role. russia is the key factor and the key issue but you have to look at the full context of this experience that it's a reason why so many in the gop and as

manus: everybody's looking at america.irman hinted there could be deals in the offering for ubs , that you may look at m&a. will you scale up in the united states in wealth management and ib? >> i think we are already convinced in what we do in the usa. losing $150were million pretax. last year, we posted $1.25 billion of pretax profits in the u.s. the momentum in the u.s. is still very good. we're focused on growing organically. of course, as i mentioned in the time of consolidation in our industry is clearly starting and is almost inevitable to address both overcapacity and in some cases profitability issues. that you wantsay to be one of the players in that consolidation? >> consolidation is one option. whatve to always look at fits into our strategy. we have a clear strategy and we don't want to dilute our strategy just for the sake of consolidating. there has to be a merit, strategic and financial merits, so we are open to exploit any option that makes sense. ubs ceo, was the sergio ermotti, speaking to manus cranny.

more injury concerns for leicester centre manu tuilagi.e's out of england's six nations training squad. he limped out of the premiership match against saracens with a knee problem. sarries won the game 16—12. and defending champion gary "the flying scotsman" anderson beat peter "snakebite" wright by six sets to three in their semi—final of the pdc darts world championship at alexandra palace. he will play michael van gerwen for the title later today. and what a final it should be, two players in scintillating form. sad to say goodbye to the mohican though. let's look at the papers, starting with the front page of the times. isis vows new campaign of terror, the hunt for the gunmen who killed 49 people in the nightclub in istanbul. we have been talking about that throughout the morning. lots of stories about george michael, i slept in my car as he died alone to the front page of the daily mirror. the daily telegraph has one of the

and his england comeback is in the balance as manu goes down injured again. a wonder strike and three points for arsenal and they're are up to third in the premier league. the gunners beat crystal palace 2—nil. tim hague was watching. what a way to welcome in the new year. wet and wild at the emirates. but arsenal supporters would soon have something to remember 2017 by. the man who should have put them ahead against crystal palace would provide it. olivier giroud somehow missing there

manu tuilagi has been ruled out of england's training camp next week after a knee injury forced him to limp out of leicester's defeat to saracens. elsewhere it's 8—defeats in a row for sale as they were beaten by the bottom side bristol. gloucester can't win either another narrow defeat for them. and harlequins' poor away form continued in a 24—17 defeat at struggling worcester, their 12th loss in 13 away games.

more importantly, they have to figure out, you know, as manu was saying, right now there's a debate among republicans about the process, about when it's going to happen, how quickly can it happen, and that's a vigorous debate because it's about, you know, the promises that these members feel they made to their constituents. at the same time it's how quickly should it happen given another promise that they made to their constituents that people are not going to be left in the lurch without health care. that is what -- the thing that

leicester and england centre manu tuilagi will be out

the leicester centre manu tuilagi limped out of their premiership match against saracens with a right knee problem just a day after being named in england's six nations' training squad. the sarries won the game 16—12. 0wen farrell getting all the points for saracens. elsewhere, it's eight defeats in a row for sale, as they were beaten by bottom side bristol. gloucester can't win either, another narrow defeat for them. harlequins' poor away form continued in a 24—17 defeat at struggling worcester — their 12th loss in 13 away games. there were also two

and our manu raju corners senator marco rubio because he is -- has all the power right

manu, what exactly are you picking up right now about this? are republicans considering what they're hearing right now, are they considering this, the president-elect, going back on a campaign promise? >> reporter: they are. in fact what i've heard from republican sources who have been in meetings with trump transition officials, that the message has been very clear to them that this should be funded in the trump transition team's view through the appropriations process on capitol hill. that means this april, they need to pass a bill to keep the government open. there is a push behind the scenes in order to it some money in there to pay for this wall. now, trump is saying that that is actually the first step. they say that they're going to get reimbursed later down the line by imposing some punitive measures on mexico. and this is what trump tweeted this morning, saying the dishonest media does not report that any money spend on building the great wall for the sake of speed will be paid back by mexico later. there is a lot of skepticism, i can

we're covering all this with cnn's sarah murray at the white house and manu raju. sara, i want to start with you. good morning. >> reporter: good morning. donald trump has a busy day ahead. it comes from moving forward with the plan to build and wall and now he says have mexico reimburse us. is heightening tensions between the u.s. and mexico. we saw mexican president pena nieto come out and address the nation saying he's not going to pay for the wall, but not scrapping the plan to meet with donald trump next week. now trump has taken to twitter apparently to up the ante. here is what he tweeted just now. the u.s. has a $60 billion trade deficit with mexico. it has been a one-sided deal from the beginning with nafta with massive numbers of jobs and companies lost. if mexico is unable to pay for

we get more from manu raju. >> reporter: good morning. the fight with obamacare started on day two of the new congress. mike pence, the vice president-elect met with house and senate republicans. they discussed how to move forward on repeal of obamacare and replacement. not many details on what is in the replacement, other than donald trump will move on executive actions and tom price, the health and human services secretary, assuming he is confirmed, will move as well. they are digging in on the democratic side. they will not work with republicans on replacement if the obamacare plan is ultimately repealed. president obama himself making that case yesterday to democrats in a closed-door session saying we will not rescue republicans if they replace the plan. suggesting what republicans are doing is quote trumpcare. he thought it would pay a political price. saying the town halls will be outraged. storms of protesters and activists expressing concerns that republicans districts. if they move forward with this, this is all the beginning of

leicester centre manu tuilagi is out of england's six nations training squad.limped out of their 16—12 premiership defeat to saracens with a right knee problem. bath's semesa rokoduguni has been called in to join—up with the squad. tuilagi has suffered groin issues for two years and lasted just seven minutes before being carried off, all witnessed by england coach eddiejones..// the match was effectively won by the only try of the match which came from sarries fly—half 0wen farrell. there were also wins for bristol, worcester and northampton. in the pro 12, scarlets beat cardiff blues 15—10 in the welsh derby. scott williams scored their second try of the match to secure the win and move up to fourth. defending champion gary "the flying scotsman" anderson has

manus: the lafrentz. la france.lar getting squashed on those comments by admonition that you and matt were talking about. look at the swiss franc and the aussie dollar, we are just dolling just jumping off of those blows. far right hand side you see commodity compacts are dead. oil is up in terms of compliance. goldman sachs talks very specifically about an upturn on global activity. the impact of china's stimulus through the first half. a physical object across the globe. what is need for global growth for protectionism? is the end of capitalism? that is the question on daybreak. parliamentarians get more of a say. is it due to the great brexit debate, does it make a hard brexit? lowest ever since the 1980's on the pounds. bob said you're still going to see a slight probability of a higher pound in the very near-term versus the people who are saying we are nowhere near pricing it. here's a lovely one in terms of a long-term chart. this is euro-sterling. there is your crash on the far left. again, the market is tryi

john and christine. >> manu raju. nice to see you. thank you, sir. >>> joining us to discuss this, let's start the confirmation hearings. tal kopan and eugene scott and selena zeno. >> a full table here this morning. >> bright and early. we love the early birds with us. let's start with health and human services. i don't remember a time when there was -- whoever gets that job, tom price will have a huge responsibility with obamacare. listen to the exchange between price and senator bernie sanders yesterday. >> i look forward to working with you to make certain that every single american has access to coverage. >> as access to does not mean they are guaranteed health care. i have access to buying a $10 million home. i don't have the money do that. >> that's why we believe it is appropriate to put in place a system that gives every person the feasibility to be able to purchase the coverage they want for themselves and family. not what the government forces them to buy. >> guys, do we know more today about what replacement will look like

cnn's manu raju has the latest. >>> good morning, john and christine. 115th congress convening yesterday with a lot of pomp and circumstance. members who were elected and re-elected for the first time, getting sworn into office, getting ready for a very aggressive agenda one in which the house republican and senate republican leadership want to replace obamacare, overhauling the tax code, trying to get rid of major regulations. and of course, conforming donald trump cabinet and also a ninth supreme court justice. how, that doesn't mean there wasn't controversy yesterday. in fact, there was a significant. of controversy after house republicans tried to move forward with a rules package that would have gutted a key ethics watchdog, that actually polices members of congress. a lot of members do not like the way it has conducted itself over the last eight years. so they voted to try to kill it essentially. and they got a lot of pushback. angry voters called the lawmakers' offices demanded they do not vote for this when it became public. then donald trump tw

manu, first to you. republicans are meeting to talk about their agenda, they're meeting to talk about the future for them. they're also having to talk about and answer a lot of questions about the statements that the president is putting out. >> reporter: yes, that's absolutely right, kate. remember, right after the election, republicans laid out a pretty detailed, meticulous agenda, knowing there's going to be a lot that want to get done, whether it's repealing and replacing obamacare, reforming the tax code, getting rid of an a number of regulations, confirming donald trump's cabinet, and confirming the supreme court nominee that donald trump is going to nominate next week. one of the things they didn't really talk about or plan for, is essentially how to deal with this issue that donald trump campaigned on, building a wall on the border with mexico. now we have learned that donald trump plans to send a package, a funding package for congress to approve to spend money to build that wall and trump says