insatiable demand for european debt at a time when the economy is looking worse and not better, matt tomstt: i think ultimately with global rates looking to stay low, people are looking to stop up any rates they can. the ecb not being able to move, it means you need to get away from negative rates and you will buy anything with a positive rate. that's the demand for a bid the last four years, it is back in. jonathan: the periphery behaved like credit and not a sovereign. are we starting to witness a slow change, or is the periphery still changing like credit? matt: i think the periphery still trades like credit, without a fiscal union and the ability to credit, any credit -- the ability to print any , credit will trade like a credit bond. italy showing that with widening of some 15, 20 basis points. i still think credit, not government bonds. jonathan: do you agree with that, tony? tony: it is not nearly to the extremes we saw in the crisis. but the point about that need for yield and income when you have negative rates and income, the demand will continue, especially now that the ecb is

. -- coming to us from atlanta, matt toms.re we underestimating the strength of the u.s. economy? jim: i don't know about underestimating. i think the markets moved on the fourth quarter of last year on expectations that the fed was going to slow the economy significantly, but the economy has been pretty stable throughout. consumers are really good, businesses are in good shape, and you still have although it is rolling off, a substantial fiscal stimulus last year. jonathan: manufacturing also really coming hot last week. what are your thoughts. >> the risks are from abroad. just because there was an external risk, doesn't mean it will be materialized. i think the market is back to its narrative, strength with material risks. tony: i don't think were going into recession. i think we are slowing down to a 2.5% pace. i think there was a risk that the fed did not know there was slowing in they stuck to two more tightening this year that may have driven it into the ground, but i think this report gives him a lot of cover because t

tony rodriguez, jim keenan, and matt toms.oming up, issuance taking off in 2019 with investment grade and high-yield making a big comeback. that is next. this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro, this is "bloomberg real yield." i want to head to the auction block, where we wrapped up the busiest month for high-yield since september. january pricing more than $17 billion. the highlight of the week posting the biggest jump bond offering since 2016. meanwhile, the u.s. treasury announced plans to issue another record-breaking amount of debt, it is raising its long-term debt issuance refunding auctions to $84 billion. $1 billion more than three months ago. in europe, what a month. the primary bond market racking up a record $255 billion in sale in january. issuance jumping 18% versus last year, with sovereign deals pulling in massive order books. still with me to discuss is jim keenan, tony rodriguez, and matt toms. your thoughts on the insatiable demand for european debt at a time when the economy is looki

jim keenan, tony rodriguez, and matt toms.e treasury curve, yields coming in big-time on a two-year following the fed retreat, down nine basis points on the week. yields at the longer in, and still ahead, the final spread. the week ahead sfeaturing comments from pal, trump, and carney. this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro, this is "bloomberg real yield," and time for the final spread. coming up, a reminder it is chinese new year some markets in asia will close for part or all of the week. in the u.s., we have the state of the union address, comments from jay powell, and fresh readings on the u.s. economy, and don't forget, there is a bank of england decision taking place with governor carney. still with me, my guests. a final word from you going into next week. what are you looking for as things progress here? the u.s. economy looks solid and the rest of the world looks soft. increasingly people are looking to deploy capital and take on more risk. what is your message? jim: we need to look at inflat

matt: tom, thanks very much. ckenzie joining us out of beijing, our chief china correspondent, covering the story we are following very closely. some breaking news we're getting out of socgen. the french bank looks to be cutting jobs. we're getting headlines across eighting're w thousands of bank job cuts. socgen is considering the possibility of a joint venture for cash equity trading. research. they're eyeing global banking and investor solutions for cuts. this could be where you see job losses. just to reiterate, we're just getting headlines across the bloomberg terminal. they are weighing thousands of job cuts in its investment bank, possibly global banking and solutions.g we are minutes away from the ocean of stock trading across the continent and in the u.k. up next, we look at the stocks to watch in the opening, including telecom italia, as the new ceo is forced to drop its predecessors profit target. this is bloomberg. ♪ matt: six minutes and change to go until the start of cash equities trading around the

matt: tom mackenzie out in beijing on this progress. some of the stock movers including bank of ireland after reporting a week net interest margin. this is bloomberg. matt: welcome back, this is the european open and i'm matt miller. we are 43 minutes into the trading day. looking again to cross the board. the dax index here in germany, 4/10 of 1%. not seeing a lot of gains across the indexes. 0.8%.se mid is up let's get into individual stock stories. we have to start with bank of ireland. it's down 8% this morning. investors said it was a mixed bag for earnings. underperforming what was expected. manus cranny spoke to the ceo early this morning. irish smes have deferred, not canceled, but deferred investment decisions. once clarity is provided there thatbe some investments will maintain the competitiveness of irish smes. >> speaking earlier today. unicredit to the upside alongside other italian banks. italy avoided a credit rating downgrade. we are seeing the tying banks getting a bit of a boost. automakers and auto-parts companies are

matt: thanks very much. tom mackenzie, china correspondent lives out of beijing.w to talk further about what's going on is freya beamish, chief asia economist at pantheon, coming to us out of newcastle. what's your take on the economic situation that the chinese are sitting in? looks like the typical spending binge we've seen in the new year holiday binge didn't grow as quickly as it typically has. freya: i think the data at this time of year are very hard to pass, but certainly the household sector has been under pressure on the slowing wage growth, in terms of the pmi's indicating jobs growth or in the manufacturing sector. we're reducing headcount continued. on the labor side, not much of a boost. on the wealth side of things, we've all seen what happened in chinese equity markets, and that does have an impact. we've also seen the property market starting to soften. in terms of fundamental drivers of growth, they are not really in place. we have had these tax cuts coming through in october and further in january. the text data in this time in particular, is har

right feel, and when i met with chris, steve, tom, maps, brandon, we came out of that and jenny will tell you, i was excited when i came out of that meeting. —— matt's other stories. french midfielder hatem ben arfa is seeking up to 8 million euros in compensation from paris saint—germain for not playing him during the last 15 months. the suit alleges that psg "did everything to push him to leave." hakeem al—araibi has been given 60 days to prepare his defence against extradition from thailand, where he was arrested in november when he arrived on honeymoon. the bahraini footballer is fighting charges he says are politically motivated and says he'll be tortured if he's forced to go back. the australian cricket captain tim paine says steve smith and david warner will have a "huge part" to play in the ashes this summer. the pair were suspended for a year for their part in a ball tampering scandal against south africa. they can return to playing next month. staying with cricket, england pace bowler mark wood has defended west indies captain, jason holder, after he was banned from the third test due to a slow over rate. that was despite the windies win

tom: you got that right. matt miller, thank you so much. let's go to john right now.ant to talk about the important points the banker made, you can't make money with negative interest rates. is eu banking really about the fiction of the ecb drive in the bond market into negative rates? nobody watching this program or listening to this program believes banks could survive on negative rates, is that correct? >> the problem in europe, take france. take commerzbank, they are growing single digits loans and interest income is coming nowhere. in french banks markets the growing five or 6% a year and interest rates are going backwards. the negative rates tracking are a huge problem. cfo i want to go to the of commerzbank who does not give us the courtesy talking about the only thing that matters which is the future of german banking. brief our audience unlike he couldn't on the regulation and government overlay his bank faces? >> the fact is we are going to get back to cost again and again. the easiest way to cut costs is to put banks together. domestic consolidation is some

we have a clip from acting attorney general matt whitaker, having an exchange with republican tom mcclintockver the fbi for the tactics over the arrest of roger stone. here's what he had to say. >> let me talk about the apparent double stander and disproportionate show of force in cases like the rest of roger stone. 's i understand it, attorneys were in constant -- his attorneys were in constant , he doesith the fbi not own any firearms, but he was the subject of an early-morning raid by officers. cnn was obviously tipped off and they had cameras there, and they arrived to set up before the raid began. they were allowed to stay to film the entire spectacle, despite the public being told to keep away because the fbi was so afraid of violence by the 66-year-old unarmed man. compare that to bob menendez, who was allowed to quietly turned himself in. the obvious exultation, this was a political act's purpose was to terrify anyone thinking of working in the trump campaign in the future and harkens back to the conduct of the irs terrifying rank-and-file tea party members with tax audits because of

ripley, the con artist character made famous by matt damon who creates a new life through lies and impersonation. >> it's tomthor is now yorker" article which uses named and unnamed sources accusing him of systemically lying to industry colleagues and superiors saying the author claimed among other alleged falsehoods to have brain cancer and cancer-related surgeries, as well as claiming that his mother and brother were dead and they are not. one unnamed co-worker tells the magazine that mallory's gas lighting, lying and manipulation at the workplace was cruel. >> when i was 21 years old going way, way back now, i was -- >> not that far. >> well, thank you. i was diagnosed with severe clinical depression and for the next 15 years, i resorted to every treatment imaginable. >> reporter: mallory who has been open about suffering from mental illness in the past now attributes these miscontract saigss to a bipolar ii diagnosis issuing an apology telling abc news in a statement that in my distress i did or said or believed things i would never ordinarily say or do or believe, things of which in many instances i hav

tom: where it going to do about negative interest rates? the ceo of commerzbank told mattork with negative interest rates. center.s are front and what are you to do about the chronic nature of negative interest rates for financial people, not fancy pants economists? right.you are absolutely is the key challenge. you could add negative interest rates. it makes it even tougher for the and investor to maintain the purchasing power. that is part of the raise middle income segments of the population are being so hard. it is incredibly tough. we need to get back to growth. we need a dose of inflation that is tough to achieve. the central banks have shown how difficult it is to get that back into the system. clearly, all of this uncertainty around trade conflict, brexit doesn't help at all. francine: thank you both. david are staying with us for the hour. coming up in the next hour is a spanish foreign affairs minister. with see the campaign being started for the election in spain. i believe that is april 28. that interview, a must watch. this is bloomberg. ♪ francine: this is "b

matt: all right, well, thank you anyway for joining us. a letter fascinating information from you. emmanuel babeau, deputy ceo and cfo of schneider electric. up next, we will speak to the , tomladesnger erdoga after the german industrial company says it plans to turn a profit this year. we are available on dab digital radio in the london era. tune in. this is bloomberg. ♪ anna: welcome back to the european open. 17 minutes to go until the start of the cash equities trading day. we are expecting to be a little bit higher at the start of the european trading day. there is some positive news around trade. our colleagues reporting that the trump administration is considering an extension to the trade conversation and deadline with china. we will see what that delivers. the asian session more mixed. let's get a bloomberg business flash. calling -- pulling the plug on its slow selling joubert -- superjumbo after only 12 years in service. it will seize deliveries of the double-decker jet in 2021. emirates, the only major buyer, cut its order. the ramp up of other models could upset some of that. the french government is said to be considering delisting energy giant. it would be the

matt were saying. i don't have a sophisticated enough grasp of deterrence theory to know exactly the implications of this, but i know tom this is a gift to russia by changing that deterrent balance in ways that advantages them given that they're the ones who have an aggressive posture toward their neighbors and are looking as they did in crimea to take more territory. so i don't know if it complicates the narrative or not and you have an overlay of two different things. you have the trump/russia issue and you have people like john bolton, the hawks, who just don't like treaties, period. so i don't know how all that nets out, but the decision-making process in the administration does not inspire confidence that there is a sound strategy behind this. there could be, but i don't think many people take that for granted. >> we've learned a lot about this administration's hunger for or lack thereof of intelligence. and how the administration is ignoring those. >> yeah. and i think this is the point and i absolutely agree with michelle and john on this. you have an administration that literally the president this week having h

featuring realclear politics' tom bevin, "the washington times"' charlie hirs, "the bill press show's" bill press. hosted by the american conservative union chairman mattchlap. [applause] >> all right, everyone. some people are leave, bill, i don't know what that's about. i'm uncertain. >> stay! stay! it's going to be interesting. >> so i first want to start off much like i started off earlier in the day to say that we are kind of disappointed that there are folks that are unwilling to go ahead and sit down with someone they disagree with from time to time and have a cordial conversation. so whenever we do this annually, we always try to find a brave, shall we say, left of center person to sit with us. in this case, bill, you took the short straw, you're here because and we want atured to hear what's on your mind. go ahead. >> that's not true. i know that lanny davis was your first choice. and i'm only hear because lanny davis refused to come but lan nee davis did arrange for tom stire to pay i pay my transportation. >> carbon neutral, i'm sure. >> oh, yeah. >> i think lan nee davis just does whatever bill and hillary clinton tells him to do. i think w

tom close is with us, andrew mccarthy, u.s. trade and development agency head no, ma'am me darryl isa, and former chief of staff under bill clinton, mattant to miss the lineup. border funding showdown, a wave of protests are being planned across the united states for president's day in response to president trump's national emergency declaration, democrats vowing to fight back with some already planning lawsuits. on sunday morning futures, maria bartiromo spoke with kevin mccarthy who says the president was right in declaring an emergency. maria: is this a national emergency? your reaction to what's happening with the president saying that it's a national emergency, but some of your colleagues are pushing back. >> yes, it is a crisis and emergency along our border. think about the human trafficking that is happening, think about the children that are being moved across the country. think about the amount of drugs and how many thousands of americans are dying and most of that is coming through the southern border. yes, it is an emergency that has been shown before. i believe at the end of the day this wall is going to be built, not sea

matt: i have not had a chance to look at that, but spotify is a great business. there is a runway for that business, that is quite exciting. nejra: thank you so much. tomis podcast -- podcast for gimlet. for drivingm forward the bloomberg podcast. we have the entire bill gross interview on podcast. look for that on spotify and apple podcast. on the state of the union, it will be good to speak to someone who has lived in russia. the former white house press secretary will manage this. this is bloomberg. ♪ i'm a veteran and the army taught me a lot about commitment. which i apply to my life and my work. at comcast we're commited to delivering the best experience possible, by being on time everytime. and if we are ever late, we'll give you a automatic twenty dollar credit. my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. ♪ nejra: i am narrative which in london with tom keene in the -- nejra cehic in london with tom keene in new york. eli lilly is lowering its 2019 eps guidance to reflect the pending deal. results, it is the lowering of the guidance coming in. the fourth quarter of dps came in just