manus: we talk about volatility.got various investment banks that have cut back aggressively. have they cut too far? i talked to you about the bond market 1994. is there an issue between volatility --? it is tough and a competitor market. there has been this aggressive effort to take cost out of the system. i think they had successfully done that. the comments yesterday were spot on. manus: are there any systemic threats? we become myopic, don't we? everybody said it is great, it is good. it blew up. it all blew up in terms of closing down sophisticated products that were developed by bankers to sell. aren't we overlooking systemic risk? tim: those are esoteric products that need to be sold. i worry about is more medium-term concerns. the headlines this week about huge run-up in debt whether the sovereign house order on the corporate level. i think those are medium-term problems. manus: what is the biggest debt issue we see? look at china's debt to gdp. we are is the biggest concern about debt? -- where is the bigges

i am manus cranny. trading gets underway in less than 30 minutes. ♪ manus: the fed feels confident..s. central bankers send a strong message on growth, as the auction armageddon is averted. the verdict of barclays -- revenue plunged in the fourth quarter but ceo jes staley says 2018 started well. anglo american reports an earnings miss for the full year, but reinstates the dividend for the first time since 2015. the ceo joins me live in this hour. just under 30 minutes to go until the start of the trading day. europe is setting up for a slightly lighter opening, perhaps an understatement, down 0.8%. good news from the fed, that is the core message, what does that mean for rates? a couple themes. the fed is optimistic, equities lower, dollar is higher. bond armageddon has been averted. european's equity markets -- where you see the big themes coming through. the nikke down over 1%, following the turnaround at the end of trade in the united states. volatility is above 20 for the 13th session in a row. you have these other equity indices playing catch-up. keep an eye on the yen, gettin

manus: debt selloff. yield had the highest level in four years and triggers fresh boj action. meanwhile, asian stocks slump. u.s. fox bites back at the trade secretary. he spoke to bloomberg in china. >> it's very difficult to see a customs union compatible to trade policy because we would never be dependent upon with the eu negotiated in terms of trading policies. manus: iphone x boost, apple climbs on handset pricing as a pledges to put cache files to work. amazon, alphabet liver results. -- deliver results. ♪ anna: this is bloomberg daybreak: europe. means:00 in london, which we have reports from u.k. corporate to get through. let's get to the numbers from bt, telecoms business. their pretax profit numbers. they are talking about their transmission program, restructuring initiative. they are all on track. no news perhaps there just yet. that's one of the things we are watching out for. they tried to trim that by changing the way they index inflation. that didn't have the effect they wanted. any news on

manus: ok.e changes that are going on domestically around europe, i suppose the question is are you interested in buying any parts of air italia? it is an old partner of air france-klm. it is also a partner with delta. totallyt be uninterested, but what is -- by what is happening concerning air italia. if they continue to be a partner that will be great. we are interested in what is happening, but it does not mean that we will be involved with the company. if it is possible to keep them as a partner, it would be great. can i push you in little bit -- a little bit? have you had any discussions with them? frederic: we had some discussions last month. on not aally based joint venture. don't believe everything that is in the newspaper. we have not made any offer concerning air italia. they are today a partner of delta. manus: let's just wrap this up. you had a good set of numbers. you're adding capacity. in terms of europe, is there more consolidation? in your industry do you need to see more consol

manus: ok.you in terms of what slightly means, could you give me a bandwidth in terms of millions of euros, what is your ambition, how ambitious are you in terms of the word growth, income growth? have decided not to give numbers for 2018. we come out and say we see a very good chance of revenues in abovein 2018 will be 2017. that is new. we have not had that in a while. more than 5% loan growth in 2017. we believe that loan growth will continue to be relatively strong. and the interest rate environment should help us and our clients in 2018. we saw a bit of that in 2017. a positive development on the interest rate side meaning they yields are going up a little bit. it is helpful for us. at the same time, we see asset management and nonlife insurance products growing. we are pretty firm on our willtations that items grow in 2018. we are also very firm on the fact that we believe that costs will come down. we are not getting more specific on that. manus: that is fine. that level ofted reassurance

it's manus.t systems solutions bid, you're talking to the union representatives. know, are wants to you going to bring that decision forward in terms of what you're going to do with it? are we any clearer in terms of what you have chosen for your option? when is the timing of it? good morning. , we areid in november looking at all the strategic options. we have taken additional measures to course correct on the cost structure of the business by shutting down another plant we have in eastern europe. we are taking this decision very seriously. will attack ae decision within our fiscal year which ends in september. that is unchanged. manus: that's the timing. you have benefited from some smart phone manufacturers. how big a product can this be? >> face recognition and iris scan will become standard features in mobile phones. we see a lot of interest, particular out of china for these type of features. these are two different types of technologies. one is infrared and one is laser base. this is defin

manus' word -- manus: don't blame it on me! >> it is very accurate. needed is for a while and i would look more at the bond market than the equity market because we have had this frustration with the market for 12 months now, that we have not seen a steepening of the u.s. curve, and we have not seen longer-term yields move higher in the u.s. finally we are getting that, 2.88% this morning on ten-year yields. this is normal with the fed hiking rates. i think a slightly negative impact on equity markets is to be expected from that. our view at b.n.p. paribas is not that this is the start of a dramatic equity selloff. manus: you start with the bond market. i have a bond market curve for beenwhich has obviously talked about a lost over the last few months, a flattening. i will pull it to a slightly shorter term perspective. this is the yield curve. we will get there in the end. you have seen perhaps one of the a numbereepeningssteepening in of months. that is a healthy u.s. economy. that is the biggest steepening in a number of months. steven: i think the

manus: i am manus cranny. these are your top stories. anna: asian equities plunged. japan's benchmarks clerk with 10% correction, and u.s. stock index futures continue to tank. manus: stocks fall. investors flee to u.s. treasuries. the central bankers from draghi to kuroda weigh in on inflation. anna: we hear from bnp paribas's cfo. good morning, everybody. this is "bloomberg daybreak europe." we will get into the big picture story in a moment. breaking news. we are waiting for the banking sector to wake up with bnp numbers. numbers coming through. let's talk about what they have got to say this morning. they have decided to accelerate the pace of investment. fourth-quarter net interest income. that is ahead of the estimate of 6.27. they have increased their mortgage volume income. this is a bank that is very exposed to the swedish housing market, of course. the impact of the slowdown we have seen in this housing market for this business is crucial. we have seen the biggest slump since the financial crisis, even as the economy has been growing faster than average for

manus: a lot of it is game theory.avels you make an to what extent do you think there will be more support for the british position of the next round of negotiations will turn more homogenous and breaks a little bit? stephen: there is more long-term than is at brexit first clear when you look at various news reports. anecdotally, there is more thinking, but in the long run, brexit could actually be a good thing for the u.k.. i think what people and investors are concerned about in the short run is the state of the u.k. government here. that is a bigger risk for , ifstors to worry about there were a war of words in the cabinet, in the government which could not be eased. leading to some type of follow the government or a snap election. there is a lot of worry about that. the government is being led by theresa may. she was a remainder brexit are. i don't know what she wants and i don't actually think she believes in brexit. i don't think anybody in the country really knows what this government wants from brexit. there is

manus: the u.s.s ready to engage in nuclear talks with north korea, even as it maintains pressure on kim jong-un's regime. anna: theresa may looks to reunite her divided cabinet and come up with the brexit plan. ♪ anna: good morning, everybody. this is "bloomberg daybreak: europe." let's take a look at the asian equity session. it has been in rehab after the stresses of last week. they are up 1.1 percent on the msci asia-pacific, excluding japan. futures point higher. there is a lighter tone to the geopolitical conversation, based on words from mike pence. that is helping. risk-on in there markets. it takes away from the dollar and boosts some currencies today. dollars bought index down .3%. data onnflation wednesday. in the meantime, look out for budget commentary today from the trump administration and anything big report on infrastructure. i mentioned the letter tone to the geopolitical conversation. are mentioned the lights tone to the geopolitical conversation. could with the conversations takin

manus: these are today's top stories.nna: asian stocks rally after up s&p 500 closed back almost 2%. morgan stanley joins the call. is the goldilocks market really over? manus: president trump proposes budget,rillion federal favoring military spending and a mexican border wall. anna: south africa's ruling anc is said to tell the president to quit after he refuses a request to resign. ♪ welcome to the program, this is "bloomberg daybreak: europe." let's check in on the market action overnight. the msci asia-pacific is trading higher after we saw that strong session and united states. in the past two sessions, the biggest two-day increase in 18 months. 43%.s up 0. japanese markets big weighted down -- being weighed down. are also pointing down, so we need to be aware of that as we go through this morning's session. morgan stanley joining goldman sachs and jpmorgan and advising the dip.he dip -- buy the has been a substantial move, and one of the things in the mix seems to be the prime minister in japan speaking in parliamen

manus: lawmakers demand the u.k.ake a quick, clean break. ♪ anna: good morning, everybody. it's around 7:00 here in london. we got information from a mining giant. we have full-year adjusted ebit a touch below the estimate. full-year maga -- ebitda, in the same region. the big question going into this is in return of cash to shareholders. depending on the size of the theyt that we see here, say in the statement, what level of payment are we seeing and how will they balance that with him and day -- with them in a -- m&a? we are focusing on the dividend payments. a historyrecommend should of $2.9 billion or 20 u.s. cents per share. they will be paid in two equal payments. there is the announcement on what they will begin back. the question is how do you balance the return of cash with m & a intentions. they have added to their portfolio. copper assets, oil assets, call, agricultural commodities and products is an area they want to expand. the bloomberghat chief executive is a senior non- involved executive at glencore.

manus: thank you very much.es fueled by trump's tax cuts. 7% tradingeported a decline. that is smaller than the drop compared to some of their european peers. let's get to paris now. the credit suisse's ceo says he couldn't be more pleased with global markets. goldman sachs says the risks have not change that much. how do you describe the first six weeks of 2018? laurent: good morning. markets have been much more volatile for the beginning of the year compared to what they were at the end of 2017. we say that volatility was one of the reasons we had the lowest reserves in the global market in this return of volatility is offering opportunities for banks like ourselves to provide solutions to our clients. we see pretty good activities is beginning of the year. your variance at risk, without pickup? that pick up? laurent: we have always tried to have low risk out there. what we are trying to provide is more and more solutions to our clients and keep less risks on our books. surget expecting to see a in our value a

manus: i'm manus cranny. this is "bloomberg daybreak: europe." anna: asia's fourth-quarter earnings fell short with no share buyback. the stock takes a hit in asia. we spake with the bank's finance director. >> fourth quarter from our perspective in the industry's was a little weaker with respect to global bacon market revenues, space.larly the ficc we also took corporate exposures in the fourth quarter. manus: asian equities snap a six-day rally as hong kong comes back online following the new year's holiday. meanwhile, treasury yields climb ahead of a quarter trillion dollars of auction this week. anna: and a brexit backup plan. theresa may is said to be preparing to withhold aliens and eu payments if the bloc doesn't play ball on trade. ♪ anna: good morning, this is "bloomberg daybreak: europe." let's get straight into the market auction. we will have more from the finance director shortly. msci being weighed down this morning, part of it is hsbc, where we see negative reaction coming through to that earnings statement, in particular the preta

manus: the fight over rights. theresa may pushes back at the formpt to extend protection citizens until 2020 one. meanwhile the cape prime minister expects to sign deals in china. anna: tech titans change course. hoursok shares rise after as ad your revenue beats estimates. ♪ anna: welcome to the program, this is "bloomberg daybreak: europe." we're in the midst of earnings season. nomura,numbers from third quarter trading profit ¥87.7 billion versus 108 y.4 billion the previous time. this is in comparison to same quarter the previous year rather than in comparison to estimates. -- ¥530.6 billion. revenue moving higher, brokerage commissions moving higher. investment banking fees moving higher, asset management fees moving higher as well. so the trading profit moving to the downside. we seen from a number of angst concerns about fixed income trading. how much has retail and investment banking offset any weakness in that fixed income trading? that's the question going into these numbers. japanese stocks have been ra

manus: we have another line coming through here.senate passing to end the shutdown, sending it to the house. it is something we had as soon as we can. raffle was being irksome. senate passes a bill to end the government shutdown. they affect the house. anna: we are in a technical shutdown currently. it could be sure. is this something that comes -- this is the talk at the slopes on davos. what we have heard about the u.s. administration about certain household appliances and so panel. we get more of that? to be erratic. they're going to be pockets of problem. look at export data from the leading trading nations. japanese exports up to a record level. even american exports last year were up here on dear by 6%. european export data, very strong. we were talking earlier in the program about how the new pay exports are the key support for the u.k. economy at the moment. if you look at emerging markets, the chinese experts are up 11% year-by-year. very strong advances in exports in countries like brazil and the rest of mesoamerica. expor

manus: and i'm manus cranny in dubai. this is "bloomberg daybreak: europe." anna: china's power play. the communist party moves to allow xi to stay longer. meanwhile, the chairman becomes the top shareholder. manus: danger for many. in a speech today, beleaguered labor leader jeremy corbyn is expected to support a customs union with the eu, putting even more pressure on the prime minister. anna: and samsung strikes back against the iphone x as it unveils the galaxy s9. we are live from the mobile world congress in barcelona. ♪ anna: welcome to the program. this is "bloomberg daybreak: europe." manus is in dubai. a new headline, we will alert you to that before we jump into the markets. the weinstein company has filed for bankruptcy after sale collapses. let's move to what has been happening in the asian equity session. futures up by .8%, the dollar index down by .3%. we're in limbo waiting for jay powell to speak. he spaced tomorrow and on thursday. euro, and pound moving stronger against the retreat in the dollar. as to question jay powell, we get our first

manus? manus: thank you very much.ons. $260 billion of paper will come. it is up for grabs. the sales get the clearest guidance yet. borrowing costs need to rise in lieu of the debt burden. we have had recent selloffs. since the highest level 2008. we have the investor of london capital. there is a supply load coming to the market. $260 billion. one companies said they may have to price it more ritually. is that is something we have to markets?to in the >> absolutely. -- given howis late in the cycle it is coming and the implement rate at 4.1%. we know it is very tight. we are well below our optimism level -- our optimum level. it is a matter of time before the prices begin to pick up. the hourly rate is now at 2.9% and is quite likely you will see another half percent. will put a lot of pressure on to the yield curve, especially the 10 year. you are talking about all of next year where the economy is going to accelerate. the fiscal boost is putting a lot on the growth rate. 0.4% for next year. nine years into the econ

manus. manus: thank you very much. , 54king news, comcast skype. we have a stack agenda for you.hatzker along with -- this is bloomberg from abu dhabi in london. ♪ mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. sure. momwhat's up, son?alk? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. guy: welcome to "bloomberg markets: european open." i am guy johnson at our new london headquarters. the open is 30 minutes away. ♪ guy: the new fed chair speaks at 3

go to manus cranny.f the gic, he wears a lot of caps during the day and he is the chief economist. let's get right to it. i have had kaplan and dudley and williams all coming out from the fed telling us this is a blip but are we at a moment of repricing volatility in markets 2018? guest: we are clearly at a moment of that sort and it is early to declare that we are in the clear. it does not mean the fundamentals are bad. the fundamentals are quite good. when we look at the u.s. economy and go through the components of gdp, the fundamentals underlying the situation are quite good. that does not mean markets will react in one way or another or overreact. that is ahead of us. manus: it was all about wages. back at the data. you are trading at 3.6% in terms of wage inflation. is this the foothills of renewed wage inflation, do you think we are starting a new trend? guest: the trend may develop somewhat slowly. we have the unemployment rate coming down and while the phillips curve is debatable, there are issu

manus: we'll have this covered.r italian bonds ahead of what could be a ittle bolt from the blue in regards to the italian elections, speaking in brussels, what is the tone. and angela merkel, the c.d.u. on coalition with the sdp. kick down from a milestone to milestone, you have to ask the question. put together a decision-making coalition. >>. do s: part of that is to with what does she have to give up. we have seen the possibility of ministries given away. what does she have to give up and what does it mean for political clout. dragy and gwindso will be apparent. set the tone for the trading day in the next hour and a half. fab, he has the interview. ousef: we speak to the c.e.o. and on the line we have a c.e.o. on the line. the u.a.e. central bank governor will talk to us. be speaking will as well. it's a jam-packed lineup. a very, very important juncture for this part of the world. and : all of the opinions the news makers on blook berg middle east. we are in abdo dhabi on the ground. it.t's stories.ll the top

. >> i manus cranny will stop >> good to be here. manus: a couple thoughts. worn buffet. he has 116 billion dollars. what are your eye over the weekend? >> we are seeing more of a backlash. more commentary from president donald trump. he is looking and thinking back to what that wto director general said in january. he said the risks of a trade war are looming. they never come from where you expect them to. >> going back to buffet, his profit is all about the tax break he had. that is something he was a bit shaky on. he has $116 billion in cash. well companies produce cash? it is all about railroads. he says he is in the mood to do a huge deal. >> 20. let's look at the uss and classes. manus: we rose in the afternoon. 1.6 percent.hed up we had a two week selloff. investors are back. they brought in nearly 60 billion dollars. be careful, after these spikes up to 40. typically you could see double bottom stocks. there is an important tactic here. could be signaling. 200.ing under i went for two's rather than tense because two-your paper is more insightful. at a nine-year hi

manus cranny with axel weber. manus: thank you very much. a good morning, mr. bever.debating policy. fed.t volatility, cap and were we complacent? good -- axel: that is a desk that is exactly what i said in davos. so, a correction was waiting to happen. i also said, don't assume that volatility will creep back into the system and volatility comes back. i didn't expect it to happen so soon that it did. it really shows that many people were wrongfooted. if you have a strategy where you had low volatility, that billy kept it on -- that really kept it on. the markets were really complacent. there is a disconnect between sentiment and hard data. it is a good year. matt: we need to reprice our risk models. they are good numbers that stand out. trillionon and $2.2 against morgan banks -- mortgage backed securities. it is a spillover effect that we should be more concerned about. it is that what you are going to be watching? axel: i am watching with the new federal reserve president, the 10 year treasury is going to be price. that is going to be a big driver for what we are d

manus: peak oil.before we came over and we have not hit peak oil or peak chatter. there's more peaks in there, but where are we with that debate? are weak oil meaning going to run out of oil? and now it's peaked demand. i think it's overdone. people are trying to pick a date here. 2 billion people on the planet with all forms of energy going to be needed. the exact point that we peaked oil is out there. we will release our projections up to 2040. when it does get out there, it will be a gradual plateau for a long time. manus: great to see you today. thank you for taking the time to come speak to us so shortly after the results. we wish you well. bob dudley, the ceo of bp. two different markets desk a lovely perfect hedge. simply offered a $40 to $50 bid. francine: the chief executive of bp telling manus cranny that rosneft is a good partner. in the meantime, we also have some comments coming in from the u.k. brexit secretary david davis. he is speaking in the end and you can follow that speech live an

jackie, manu is talking about the president and whether he'll say, fine, this . this is something democrats are already expressing concern over. listen to mike quigley. >> my concern isn't what republicans will do at a business meeting i'll be part of this afternoon, it's what the president will do. this is a president we have seen would do anything to obtain power. i can't imagine why anyone would imagine he won't do anything to retain that power. i'm concerned he won't sign off. i'm concerned that he will try to redact or change the memo. >> what do you hear from your sources, jackie? >> these seem to be valid fears. look what the president was doing today, he was attacking adam schiff, who is the democrat on the panel as someone who isn't telling the truth, who was liki leaking classified information. it seems he's already setting up an adversarial relationship to give himself an excuse, look, this is classified information out there. this is not beyond the realm of possibility when you're talking about this president. >> so was the republican memo was somethi

manus: no wobbles pleaase. do you think saudi aramco will ipo?an: yeah, it is a challenge for one, selecting the location. but yes, they will. manus: would you take a stake in saudi aramco if the opportunity came along? ian: it will be of a good value and attractive. quiteentally, we are positive. yes, i think so. manus: finally on the market, what is the risk we go to the end of the year with a bit of information in terms of an exit strategy -- what is the possibility of this opec -non-opec deal over tightening the market? honestly, there is a small possibility that could happen. that does assume that demand is up in the 1.8% this year. it is very early days. suggests it will not quite make the number. theynk the chance that over tighten substantially is ridiculous. yousef: that was the vitol ceo, ian taylor, speaking to manus cranny. we were speaking earlier about leadership positions. mike pence has made a few comments and some remarks, saying it is important to look at market fundamentals and they are "very strong." he also added that the flo

manus: you have liquidity coming in.ng the imf flagged very recently was a concern about reserves. reserves in bahrain. is that something that has come desk, is that something you'd be prepared to help with if it was an issue? what do you have to say about what the imf has said with regards to reserves? mubarak: with regards to central-bank reserves, we have plenty of reserves. we have looked abroad to make sure there is the availability of the dollar. in terms of reserves, we have plentry of liquidity. that is with regards to the central bank. uae,regards to the it's the base for the sovereign wealth funds, which help us during difficult times. manus: in terms with the sovereign wealth funds, they have adequate reserves. you don't expect you have to draw on any of the sovereign wealth funds. mubarak: of course, there is a coordination between monetary and fiscal policy. and sovereign wealth funds, they play a part in that equation. which means the government needs to keep surging growth rates, economic growth rates. in

and manu raju is outfront. what are they saying about the memo?ting what the house will do. and if the white house did move forward with any redactions, erin, it's not clear whether they'll get any resistance from anyone on the hill or block the schiff memo. a number of republicans are not saying they would vote to override the president. which was what they would have to do to release the schiff memo. now that position much different than the position they took over the nunes memo last week when a member of them regressively lobbying the white house to release the nunes memo. now the nunes memo is roughly 3 and a half pages in length versus the schiff memo 10 pages, they offer different points how that warrant to surveil carter page was had. they said it was done improperl improperly. and schiff saying it was done right. what john kelly said just now was significant, erin, said for the first cut, the first look at this, it's not as clean as nunes memo. so this assign the white house may be taking steps to at least limit what the public could view

manu raju on capitol hill, thanks very much. straight to the white house, right now, where the president has been using his executive time to vent out loud and in all caps on the russia investigation. abby phillips at the white house this morning. good morning. >> reporter: good morning, john. the president has ended his relatively lengthy silence on twitter with more tweeting about russia. he's been tweeting all morning, with some older quotes from fox news appearances over the course of the weekend. that's what is so interesting about this, the president isn't watching this morning necessarily, he's tweeting things from all the way back on sunday. one from ken starr that was on fox and friends and another from jonathan turley, praising his comments on fox on saturday night. so it all is full circle here. he ends it all with that last all caps witch-hunt tweet, which is a common refrain for this president and might very well be linked to the fact that hope hicks, one of his closest aides and someone who has been around the pres

manu, what else are we hearing about her testimony? i know it's going on behind closed doors. >> reporter: we're in hour 3 of this closed door testimony. what we are now learning is she's not planning to answer some key questions about her time in the white house. this is according to congressman chris stewart, a republican who sits on the intelligence committee, saying he does not expect her to answer a number of these questions. this is a change, because a number of members going into this closed door hearing, including the republican leading the investigation, mike conway, believed that she would, or they wanted her, at least, to answer those questions during her time at the white house and the transition period. we'll see what she says about the transition period, if she answers any questions about that. but wolf, this is keeping in line with other key witnesses who have come before the committee, including steve bannon, the white house chief strategist, as well as president trump's campaign manager, corwin lewandowski, who would n

i've been sitting down with team members evan perez, barbara brown, manu raju as to what are the main points here. first a few of them. one, that we now know that there were four applications for fisa surveillance warrants here. an initial warrant to surveil carter page during 2016. now, the allegations that republican chairman of the house intelligence committee, devin nunes, makes in his memo is that andrew mccabe, the now former deputy director of the fbi, that he told the house intelligence committee that those warrants, that initial warrant, would not have been issued without the information contained in the steele dossier. something we've reported on before. just for the sake of our viewers, this was prepared by former british intelligence agent christopher steele with money coming from opponents of donald trump and later from the intelligence committee. this was an effect of democratic research that led to this memo. so andrew mccabe told the committee that that warrant on carter page would not have been issued without information contained in that dossier. i'm going to provide

manus: i am manus cranny. these are your top stories. anna: asian equities plunged.rks clerk with 10% correction, and u.s. stock index futures continue to tank. manus: stocks fall. investors flee to u.s. treasuries. the central bankers from draghi to kuroda weigh in on inflation. anna: we hear from bnp paribas's cfo.

manus: president trump puts forward a $4 trillion plan. but who is ready for the military ball and mexican immigration plan? areher large speculators more convinced than ever that the bond market will resume in the days ahead. the aoc order president zuma to quit. the rand has weakened during the uncertainty. and shrugging off shale, at least for now. real. says it will not markets:loomberg middle weeast. we have seen signs of stabilization over the middle east. we have seen gains of 2.9% over the last couple trading sessions in the u.s. let's get straight to the global market. go on your bloomberg. overall, a very positive picture then, in asia, led by the likes of hong kong, and posting 2% as well. 2% as well.s are up in terms of japanese companies being driven back online by tech and machinery after the holidays, the fourth quarter remains mostly unchanged. we are talking against the backdrop of a u.s. dollar index that has gone unchanged happy what was going on with the repricing around the world. in the commodities space, we saw it wi

cnn's manu raju is on capitol hill. what are you hearing? >> well, the expectation going into this hearing from both republicans and democrats alike that they did expect her to answer questions, or they wanted her to answer questions about any topics that occurred after the campaign season, that includes the transition period and the white house. those are two periods in which steve bannon, the former white house chief strategist, did not answer questions over those two periods during the transition and his time at the white house when he said that the white house instructed him to invoke executive privilege over those communications, over those -- any questions during those time periods, saying that he would not answer authorized -- unauthorized questions. what is uncertain today is whether or not hope hicks will do the same thing before this committee. members were not sure, even mike conway, the republicans running the russia investigation, said he was not aware of any agreement that the committee had reached with the white house on limit

manu tried botox last year. now he gets injections every ten weeks. >> i saw a night and day difference. he's back in school. he's playing sports. he is playing with his brother. >> reporter: taking a shot at a new treatment so he can get back to being a kid again. dr. john torres, nbc news, orange, california. >>> coming up, the surprise move a major american city is making now that recreat leg >>> and my we finally know what was in the blue g lady gave to another at at&t, we believe in access. the opportunity for everyone to explore a digital world. connecting with the things that matter most. and because nothing keeps us more connected than the internet, we've created access from at&t. california households with at least one resident who receives snap or ssi benefits may qualify for home internet at a discounted rate of $10 a month. no commitment, deposit, or installation fee. visit att.com/accessnow to learn more. >>> if you were up late last night or perhaps early this morning, extra early, you may have see

manus: i'm manus cranny. this is "bloomberg daybreak: europe."gs fell short with no share buyback. the stock takes a hit in asia. we spake with the bank's finance director. >> fourth quarter from our perspective in the industry's was a little weaker with respect to global bacon market revenues, space.larly the ficc we also took corporate exposures in the fourth quarter. manus: asian equities snap a six-day rally as hong kong comes back online following the new ye'

let's go to manu raju up mono manu, we're told hicks has refused to answer some questions. what's going on? >> she first came to the house intelligence committee at 10:00 and there was a back-and-forth after she initially refused to answer questions about her time during the transition and her time at the white house under the direction of the white house, that generated significant pushback from members of both sides of the aisle, particularly after she answered questions about the transition period in a separate meeting with the senate intelligence committee. so late in the day wolf we are told she started to answer some questions about topics in the transition but she still is not answering questions but a time at the white house. tonight white house communication communications director hope hicks refused to answer question, frustrating democrats. >> i have less hope we will get to the answers. >> reporter: was there a subpoena issued for her? >> no. >> reporter: should there beb? >> yes, i why? >> anyone who doesn't answer questions, they ought to be subpoenaed. >> rep

that's go to manus cranny in frankfurt. he has a guest for us.e conference is quite a mouthful. >> it is. we have huw r. pill from goldman sachs. it's former central bankers and current central bankers. there is one man who can perhaps context.in you just got off the plane. some up your contribution to the six days of volatility. is this a more realistic pricing of markets? we have to consider that normalization and volatility are back on the table. have the view that inflation in the u.s. will eventually come back. i think last friday's data is consistent with that. we also believe the fed's normalization will create a quicker pace than markets have been pricing. the combination of somewhat stronger inflation trends with the market response to that and i think this is a relatively healthy, more realistic pricing. europe is behind the u.s. in terms of the cycle. i think the inflation outlook is a little more quiescent. immune to the pressures to normalize. i think they are a little further behind the u.s. in the process. we don't really think it

cnn's manu raju on capitol hill with the latest. hope hicks, has she

senior congressional correspondent manu raju is outfront. learning what changed when democrats saw it until it went to the president. this is crucial question. what are you finding out? >> reporter: that's right. top democrat official on that committee actually says there have been five material changes that were made to the nunes memo. changes they did not see, were not aware of at the time of that committee vote on monday. they say it was significant beyond just the grammatical changes and typographical changes that were fixed, other significant substantive changes. now when i went to nunes office and asked him is that true, they did not respond. but last night nunes spokesman said two changes they made at the request of the fbi and of democratsment and they have downplayed other changes as very minor, very technical in nature. so this one they agree on. there were changes, erin. and one thing that we have also learned when house members reviewing the memo, not reviewing the memo with the changes. they were reviewing the memo before revise

manu raju, karoun demirjian, and former fbi director josh, i want to start with you.ssue of christopher wray who has been in the middle of it the last several weeks in washington on several issues. let's start with the controversy surrounding the memo. there's the republican memo alleging fbi investigations in the russia investigation, the democratic memo that hasn't been released and the fbi under attack frankly. what does the director need to say in your mind about that as he sits here today? >> these hearings typically start out focusing on worldwide threats in general and then quickly hone in on whatever the issue of the day is. today we have many issues of the day. first and foremost, the memos, the security clearance issues we've talked about. what i hope people don't lose sight of is the fact that a foreign adversary meddled in our election. i hope they spend a lot of time on that as well. i suspect the director will go into detail on those issues. he doesn't strike me as the kind of person who is going to get in a tit for tat or some kind of food fight with pa

since 1984. ♪ manus: china has that cr

manus cranny is with me on the set. date lined up. >> the standard chartered story, if you tie that back to the head of markets you spoke to and the deputy ceo -- yousef: a key interview, right? >> very important. they talk about the reality of rates on the bottom line. with a bank that is one of the top rated in the world. the dividends story at standard chartered will be pervasive, and that is the story with barclays, the miners, the oil companies come all about dividends. it comes to the wider story, the other interviews we have. that will feature highly in daybreak. what else are we looking at? we will extend programming through the day. we have a couple of big interviews. the uae central bank governor joins me later on at 10:00 p.m. that will be fascinating. any sovereign wealth fund, you can see the readership spike. what are they doing, how did they see the volatility, are they more bullish on the bond as opposed to that death spiral? yousef: makes for some of the best conversations come absolutely something you

manus: martin, let's just close this off.ou have got to get on with it, you have done it before, a very pragmatic field. what does this mean for fees in this business? are they going to have to slice and dice on the fees to win it? martin: yes, fees are going down globally. it is already quite a low fee. whoever, including ourselves, may have to cut the fee to win this sort of size mandate. but it is a very complicated mandate. it is not just one bank account that you can transfer all of anz's money. so it is a big, complicated mandate, which is why it will , if at least a year to lose it does move to anyone else. francine: martin, is this what you are focused here in the u.s.? martin: you have heard me say many times that more than half the world's assets are in the u.s., and we would like to be bigger in the u.s., whether it is a deal or growing organically. whittling we have the right products now for the u.s., and yes, our aim would be to expand , australia, asia, all of these markets are looking very good for us now. rig

manus: these are today's top stories.rally after up s&p 500 closed back almost 2%. morgan stanley joins the call. is the goldilocks market really over? manus: president trump proposes budget,rillion federal favoring military spending and a mexican border wall. anna: south africa's ruling anc

manus: will you expand the risk you are prepared to take?trying to have low risk out there. what we're trying to provide is more solution to our clients, and keep less risk on our books. samee sticking to the policy. i am not expecting to see a surge in our risk during this period. we are managing in a cautious way. manus: morgan stanley says the 30 year business is done and the united states of america. will you buy more businesses and the united states, or do you think it is organic growth for you in the united states? laurent: the u.s. today, tax,bly 35% before contribution to our profits before tax. it is already a significant part of our revenues. management, 70% of our revenues come from the u.s. we have a strong business out there. we keep on growing its. -- we do note to i have to buy. it is a significant part of our business. we see significant opportunities for growth there, and we will continue growing there. it has been one of our fastest growing business in the last two years, and it will continue. guy: the ceo of the texas spea

manu, let's go down the road to you on capitol hill. if katelyn is saying to release this thing tomorrow it goes to congress then what. >> then it's going to be released. there's a furious debate right now, fight between the democrats and republicans on the house intelligence committee about exactly the memo that is being looked at, particularly the changes that occurred in this memo now -- i'm just learning from a democratic official on that house intelligence committee that they have identified five material changes that were made that they say that the members of the committee were not aware of when they voted on monday to release this memo and give the president time to decide whether or not to object or allow for its release. they said they were not aware of these material changes including one modification that they say was intended to water down the overall findings that the republicans had in this memo. now, the republicans are not too concerned. actually devin nunes has said, his spokesman said last night there were only two ch

role in the creation of the controversial memo, the man behind it, devin nunes, had this to say to manuu moments ago. >> did the white house have any role in your memo, sir? >> democracy dies in darkness, my friend. get to work. >> this comes as lawmakers on both sides of the aisle are pushing for president trump to release the democratic rebuttal. cnn congressional correspondent sunlen er is faserfaty joining from capitol hill. nunes didn't respond, he had his own little phrase there, the catch phrase of the washington post. what is the expectation that this democratic memo is going to be released, sunlen? >> reporter: at this point we do not know for sure. as you heard kaitlan say there, from the white house, but i think the expectation is that there certainly is a great amount of political pressure on president trump to declassify this memo and potentially that's what he might do. certainly was a strong message being sent by the house intelligence committee, the fact that last night they voted unanimously to release this memo, sent it over to the white house to make that decision. an

. >> manu raju joining us from capitol hill. what have you learned?er: these e-mails shows that peter strzok played this key role in the release of that letter saying to congress that james comey and the fbi were going to reopen the hillary clinton e-mail investigation. according to the letter we obtained from october 11, 2016, he wrote the first draft of the letter that formed the basis of what comey said to congress the next day. separately we're told from a source familiar with his thinks that he supported reopening the investigation after those e-mails from hillary clinton were found on anthony weiner's laptop. now, this all comes as peter strzok has come under enormous scrutiny and criticism from republicans because of the anti trump texts that he exchanged with lisa page, an fbi attorney with whom he was having an ex a extramarital affair. those texts turned over to congress. republicans have seized on that to claim there was some anti trump bias. we are told he did have private reservations about going public. publicly with his colleagues, guys

i want to begin with cnn correspondent pamela brown and cnn congressional correspondent manu raju, both of you with us tonight. pamela, a new report in the "new york times" this hour saying the president's lawyers, including john dow, jay sekulow and other advisers are saying don't do it, don't talk to bob mueller. you have been reporting with gloria borger on a lot of this over the past week. what can you tell us tonight? >> that's right, erin, in fact, the president's lawyers have been in the president's ears telling him for a long time he should not testify. the concern, it would be a perjury trap. it would be some fishing expedition and would basically set up the president to where he could be caught in a lie. as you know, the president has been outspoken about his desire to want to sit down with robert mueller. he even said he would love to do under oath, but under that caveat that he would only do it at the advice of his lawyers. they're making the argument to robert mueller's team that they have not met the threshold of interviewing the president. they are making the argument tha