of michel barnier and others, a re interested likes of michel barnier and others, are interested in dealfor financial services? i do not think thatis financial services? i do not think that is even the discussion now. the european union have heard what the uk government does not want, because theresa may decided, on her own, really, not with parliament with the we discovered afterwards, this idea not to go for the customs union or the single market, so what the european union is waiting for — in brussels, germany, madrid, paris, everywhere — is to hear what you want. as soon as she defines that, they will stop the discussions, but there are around 53 or 63 weeks, i think, to brexit, not a lot of time! eu officials have been writing to company bosses in key industries, warning them that britain will effectively be a third country if this deal is not done, it is a stark warning for them. britain will be a third country no matter what. but without automatic access to the single market. there can be no single market. there can be no single market. there can be no single market access ta

that was the opening remark from michel barnier. remark from michel barnier. deals with other countriesing the condition period. the condition period. all down to brexit or to do with other policy areas? other policy areas? all to do with brexit and that is why it is so dangerous for her. why it is so dangerous for her. the lack of progress on domestic policies. policies. they say she is not showing enough vision. they want more from her. will they make that giant leap and trigger some sort of contest? trigger some sort of contest? are voices in the party urging everyone to calm down. everyone to calm down. down and put a wet towel around her head. head. months whether that is advised she will take. will take. the 1. the personal independence payment, are to have their cases reviewed. discriminated against claimants with mental health conditions. affairs correspondent michael buchanan explains. chloe clark is a busy mother of three. three. the house until she is with close family member. family member. rather than a physical problem and she was denied payment. she was denied payment. ai

market access in contradiction with the hard-line previously set out by the chief negotiator, michel barnier. us, peter schaffrik. let's talk about the bank of england.

that's the model proposed by michel barnier, the chief negotiator of the european union.avis saying existing free trade agreements with the eu provide the floor, not the ceiling for their future planned agreement. akiko, this is some interesting developments in terms of david davis' position on some of this stuff. he says this is not a deal breaker. we have heard from michel barnier he wants the transition period to go no later than a year and a half after the formal end of british membership in the european union so the idea they'll try to restrict that transition period is something british business don't want to happen something that david davis does not see as likely. >> yeah. what's interesting, and what strikes me about that, there's still perhaps maybe a little clarity on the timeline here, but no real clarity on the specifics of that. that's been weighing on some business leaders we've been speaking with in davos we had a chance to speak with inga biel from lloyds this morning, she said we're not in position here to make certain what the presence for lloyds will b

does michel barnier understand why britain voted for brexit? erstand why britain voted for brexit? what answers did you get from michel barnier to the three questions posed by your listeners, particularly that one as to whether he understands why britain voted for brexit? well, he said the british people were told a pack of lies, they were told there was £350 million a week for the national health service. i said, well, 0k, do you not understand that, actually, open—door immigration was the key driver that pushed turnout up on the day of the referendum? pushed turnout up on the day of the referendum ? the pushed turnout up on the day of the referendum? the answer, very clearly, was no. he looked at me with some degree in convention. did you talk to him about the no deal scenario? i did. said, look, when it comes to it, you sell us a lot more wine, motorcars, cheese and chocolate and we sell to you. there is an annual deficit that averages about 80 billion every single year. isaid, you know, if about 80 billion every single year. i said, you know

on monday, and he is now convinced that michel barnier will not "give us a good deal". he made earlier. there has been a backlash for nigel farage, the man getting that referendum and who has long advocated the uk's departure from the eu, suggesting that he welcomed a second referendum. a lot of leading brexiteers have said that is the wrong thing to do, even members of ukip, of which nigel farage the former leader is still a member of, they say that is not part of the policy. on his radio programme tonight, he has said that he does not want there to be a second referendum but after his meeting with michel barnier, as you say, he came away thinking that uk wasn't going to get a good deal and in that eventuality he thought the british parliament would say rather than walk away from the eu that there should be a second vote. he suggests that leavers, those who want the uk to depart from the eu should not be complacent but gear up for the possibility of another referendum, he said that there could be another dramatic battle go to come. alex, talk about political odd couple

cooking a deal is the job of michel barnier. we have a very dedicated organisation.tart a negotiation country by country. it would be ridiculous. and the best way to dismantle the whole eu. i think what we have to do, and what we will do, is firs to take the decision in march regarding the mandate we want to give to michel barnier for the negotiations. after that, he will have to negotiate, with your negotiator. and they will decide, and it depends on the proposals made by the uk, but, for sure, full access for financial services to the single market is not feasible, given the functioning of the single market. so by definition it's not a full access. so in concrete terms some form of passporting deal is off the table in these negotiations, as far as you're concerned? i'm not the one to negotiate, and i don't want to close doors, but it depends on what you're ready to put on the table, in terms of preconditions. if you respect the precondition to get access to the single market, it's feasible. but there is no cherry picking with the single market. i mean, if i had to

the negotiations will be led by michel barnier, but it does mean that the access that it will allow will be equivalent to access as if you are a memberof the equivalent to access as if you are a member of the single market. you can choose between norway or being the equivalent of a current member of the european union. then full access. what i set out in the lancaster house speech and indeed in the florence speech was our desire to develop, to negotiate a comprehensive free trade agreement with the eu 27 for a deep and special partnership in the future. we recognise that as we're leaving the european union we will no longer be full members of the single market. we recognise that. there will be a different relationship. in future. a different set of balance of rights and responsibilities and we've been very clear about that. i believe that it is actually in the interests, not just of the believe that it is actually in the interests, notjust of the united kingdom, but also of the european union, as it goes forward, to continue to have a good economic relationship and partnership with the u

and she has very little time because mr michel barnier is have —— has had christmas with his family andll this as well as brexit. downing street has said that all of the speculation in the sunday papers is just speculation. they are saying it is all guesswork but we are expecting a reshuffle all guesswork but we are expecting a res huffle o n all guesswork but we are expecting a reshuffle on monday and tuesday. there has to be, because there is a va ca ncy there has to be, because there is a vacancy created by damian green moving on. you have to get that in place. there have been a lot of complaints from civil servants and other parts of the non—brexit policies that brexit has taken over. maybe brexit has to? it is the most scary thing we are doing. and you will work the —— you are working with europe with europe who have never done before. the daily mail, pm's never done before. the daily mail, pm‘s discussed at sordid tweets. toby young has got a position on the new office for students watchdog. it shows how social media can haunt you for years. it is the advice given to university st

the eu's chief negotiator, michel barnier, has been clear britain cannot cherry—pick which benefits ofmembership to keep, and there will be no special deal for its financial sector. it is a concern echoed by the head of the german—british chamber of commerce, who spoke to the bbc late on wednesday. i think they're trying to get the best deal for britain. whether they will succeed remains to be seen, because from the german government's point of view, and also from the european union's point of view, yes, of course individual deals might help individual businesses. but for germany and the eu, it's also important that the single market remains intact, and therefore it will be difficult to negotiate bespoke deals. as we recall, just a few months ago, everyone was talking about "no deal is better than a bad deal," and now they're trying to do individual deals. now they're trying to convince german politicians and the business world that might be an option. with me is arnab das, from invesco asset management. good morning. so where are you on this story? are you confident philip hammond and

he made it clear to the prime minister that it would not be as repeating as michel barnier, the eu negotiatorsaid, about cherry—picking eu negotiators said, about cherry— picking and eu negotiators said, about cherry—picking and bespoke deals. he was obviously making a big deal of rolling out the red carpet to british bankers, desperate to have them there and pinch them from us. you can't blame him. not desperate. he referred to it. he said that this is healthy competition. that is, that our two countries have, and emphasised, as did theresa may, what the countries have in common, it was notjust defence and security, it was about science, it was about research, medical research and new advances there. and a young generation getting to know each other, so economy there as well. but an important sentence that came out very much in the press conference in response to questions was the french president and i had not heard the line in that way before saying: i am not there to reward or to punish, i'm there, obviously, to defend french interests. it is very much as pa rt french interests. it is very

he said i am not doing the negotiating, it is up to michel barnier, but he is clearly going to be a figurerkel are absolutely pivotal is that this is where the language of the brexit debate gets confusing, he says bespoke deal but it doesn't mean this bespoke deal that a lot of people who support brexit are hoping for which is a very, a lot of services involved and special carveouts for the u. k.‘s. services involved and special carveouts for the u.k.'s. it could mean anything from what i have described to a very limited deal which is what canada has, certainly far below what brexiteers and brexit ministers are roping. in —— are hoping for. he has been very clear about this, which again is refreshing. if you are not the eu you cannot be in the single market in the way that you previously were. you don't get the benefits of the single market unless you are in the single market unless you are in the single market. that is a pretty sobering message for people hoping for a very good deal of getting the same benefits. all down to negotiation. as far as i am concerned, a bespoke deal doesn't nee

in december when the brexit secretary met michel barnier, they hugged.ure to encourage home ownership and improve education and health and leave this country and a better place than when we found out.” leave this country and a better place than when we found out. i have to say he talks about passionate embraces, i do not think he has had the case that he once asked for. —— the case that he once asked for. —— the kiss. we are determined to deliver a britain fit for the future and that means we need to get brexit right but we need to do a lot more. we are committed to building the homes this country needs, that is why we have put £15 billion of new financial support over the next five yea rs, financial support over the next five years, why we have scrap stamp duty for 80% of first—time buyers. we are also improving school standards, 1.9 million more children and good on outstanding skills today and we are protecting our natural environment. we are building a britain that can look to the future with optimism and hope. could i wish you and all the house and

we've heard michel barnier saying that financial services won't be included in a free trade agreementrning. what are you going to do to change the eu's mind? translation: first of all, please allow me to be very clear. i'm here neither to punish or compliment. i'm here to make sure to neither to punish nor reward. i want to make sure that the single market is preserved because that's very much the heart of the european union. so the heart of the european union. so the choice is on the british side, not on my side. they can have the no different access to the financial services, if you want access to the single market, including the financial services, be my guest. but it means that you need to contribute to the budget and acknowledge the

theresa may believes michel barnier a is bluffing.he chief brexit negotiator is faking a hard-line stance in rolling out a deal that would allow banks to continue operating freely across the block. that comes as the u.k. negotiates its post-brexit ties with the eu. cdu and sps -- spd have commented. merkel has said she wants explore terry talks to be by the end of this month and negotiations to take place after that. thegems were on show at palace and a gang seized a jeweled brush and a pair of earrings. the collection is a renowned exhibition of indian jewelry and precious stones. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. guy: thank you. let's talk about what happened yesterday with fed minutes. the fomc remains unconcerned about continuing flattening of the yield curve. the spread has narrowed to 50 basis points. at the lowest since october. let's talk about central banks and get an idea of what 2018 will bring. income. a fixed let me start with you.

cooking a deal is the job of michel barnier. we have a very dedicated organisation.ake the decision in march regarding the mandate we want to give to michel barnier to negotiate. after which, he will have to negotiate with your negotiator. and they will decide, and it depends on they will decide, and it depends on the proposals made by the uk, but for sure, full access for financial services to the single market is not feasible given the functioning of the single market so by definition, it's not full access. so in concrete terms, some form of passporting deal is off the table in these negotiations as for as you are concerned? i'm not the one to negotiate and i don't want to make those calls but it depends on what you are ready to put on the table in terms of preconditions. if you respect the preconditions to get access to the single market, it is visible but... if i have two wrapped up visible but... if i have two wrapped up the full philosophy, no... of the single market because it is not feasible because otherwise, that is the dismantling of the single market and

it is key to the british economy, but then michel barnier, who is the face and voice of the 27 eu membersaid that the city of london and the banks operating there will lose their passporting rights. that hasn't changed, so now it is a question for the british government and therefore the tory party to come together and decide what they want in order to have just one line. they go to brussels and say, ok, this is the kind of agreement. it is a total mess, isn't it? the new thing is that we now seem to be willing to pay to secure additional rights for our financial services, so we would have to pay a financial penalty. whether any of this can be sold in the british parliament or to the british people, i have no idea. but it is a fantastic mess. what is interesting to me is that, day by day, reality begins to intrude into these negotiations. so, the french are only too keen to take over our financial services. i can see mr macron rubbing his hands at this very moment. the fact is, this country, it's not mad, in my view, never has been and won't be now, and the conservative party, in theory,

things put her in quite a vulnerable position. leave the european union. the parameters set out by michel barnierhat you expected? i be what you expected ? i be what you expected? —— are they what they expected? expected? ofjustice, financial payments and the adoption of any new regulations. the adoption of any new regulations. get as smoothly transition as possible. possible. that that is a satisfactory position for the uk to be in? the first thing is to calm down. is to calm down. we are just at the beginning of the negotiations. beginning of the negotiations. such as negotiate trade deals with countries outside the eu. countries outside the eu. but this is the beginning of a process. is the beginning of a process. subject to the externaljurisdiction of the european court ofjustice. of the european court ofjustice. and that still remains the government's position. government's position. transition, then in my view that is worth doing. worth doing. disaffected with the prime minister's leadership? minister's leadership? still required to follow some of the obligations of membership. obligations

is lead negotiator michel barnier says the twenty the twenty seven other members must unanimously approved any such agreements u.k. prime minister theresa may faces rising discord within her conservative party as pro and anti breck's that factions jostle for influence and rival rival maneuvers that to succeed may as the leader of. the federal reserve's open market committee begins two days of meetings today it's the last f.o. and. the meeting run by outgoing chair janet yellen who is completing her four year term sell the reserve governor jay powell was selected by president trump to replace yellen and the u.s. senate has confirmed him to be the new chair there are a lot of questions about what it will take not only now but this year and going forward by the federal reserve regard to the economy plus other central barks are charting their own course while they stick to their plans admits some signs that an economic correction is on the horizon we'll get into it all the more with danielle de martino booth as the f o m c wraps up. and it has been just over a year into the trumpet ministratio

party's position, which is very divided on this particular issue, now we have the eu telling michel barnierir position is in what they will negotiate on. it is a negotiation. nobody goes into a negotiation knowing what the end will be. they knowing what the end will be. they know what they might want out of it. i think that is perhaps theresa may's problem here. there is never to cliett correction from her as to what she wants in the end. investors are desperate to know about that. -- clear direction. business bosses have different ways depending on what they do and how they operate in europe and elsewhere. until they know what the terms are and how this transition phase will work on what they can and cannot do during the transition phase, it is hard to know what to do. and very costly. they have factored it into semi— deals with their pricing of things. if that changes in any way the uncertainty will lead to cost lyness and a lack of investment. we have seen global growth figure suddenly investing —— italy to expense. it is a very important day in some respects. it is quite interesting. la

michel barnier insisted, even last month, that uk had a binary choice between a single market norway canada—type trade deal, a point he rammed home with his graphic about britain's brexit choices. but the canada comparison isn't really that useful, and is already being undermined by people like emmanuel macron, who is saying, quite clearly, that britain could get something far more ambitious than canada's free—trade treaty. you will have your own solution. and my willigness. .. there will be a bespoke special solution for britain? sure, but i take these two references. because this "special way" should be consistent with the preservation of the single market and our collective interest. but if the eu is ready to concede a sliding scale of access, dependent on how closely the uk alliance with its rules, it's also used tough language in its guidelines about a level playing field. under these terms, it'll try to close off the possibility of a deregulated britain gaining a competitive advantage. what some brexiteers call a singapore model. singapore has a very authoritarian regime. and a

prime minister theresa may believes michel barnier is bluffing.ays there will be no special post rex a deal for financial services. they think barnier is faking about rolling out an agreement that will let banks move freely across the you -- the e.u. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. tom: we are going to do a brexit update later in the hour. i need to get caught up on the barnier battle in europe. francine has been watching that. futures up four. dow futures up 79, putting them at 24,987. huge emotional landmark. curve flattening to near record flatness, and the huge trend we have seen through late 2017, the euro does not tell me the story. oil is elevated, and there is the vix. we were at a 10 level just a few days ago. earlier, thatr that is an extraordinary level. anything below 8.6 is a huge deal. the two-year yield elevated up two basis points. i threw in bitcoin just aggravate francine. francine: thanks, it worked. what about the new year's resolution

nigel farage is actually talking to michel barnier.the same blue as the u.s., tom reed we will have to dig deeper. -- u.s., tom. we will have to dig deeper. tim: he is representing himself and has a radio show these days. he's interested creating drama. tom: wait a minute. you know what that will do to people. when you get your own radio show, that's a bad thing, mr. ross. tim: i love radio. particularly bloomberg radio. 25thit's our 20th -- anniversary. francine: we might send tom to figure out if he can talk to michelle barnier. on a serious point, if you look at the serious players, who does theresa may have to fear within her own cabinet? is boris johnson a viable alternative or is there no one who will challenge her at this point? rupert: i think theresa may will survive the year and i think there will be an agreement at the end of this year. i think the policy to reconcile the hammond vision and the boris incrementally is edging away from europe over time once the benefits of trade agreements are bankable. within that, there's a

right to negotiate a pact with third parties during the transition but the a use lead negotiator michel barnier says the twenty the twenty seven other members must unanimously approved any such agreements u.k. prime minister theresa may faces rising discord within her conservative party as pro and anti bracks that factions jostle for influence and rival rival maneuvers that to succeed may as the leader of. the federal reserve's open market committee begins two days of meetings today it's the last f.o. and. the meeting run by outgoing chair janet yellen who is completing her four year term federal reserve governor jay powell was selected by president trump to replace yellen and the u.s. senate has confirmed him to be the new chair there are a lot of questions about what it will take not only now but this year and going forward by the federal reserve with regard to the economy plus other central parts are charting their own course while they stick to their plans admits some signs that an economic correction is on the horizon we'll get into it all to morrow with danielle de martino booth at the f

i could turn around to michel barnier and say, 0k, around to michel barnier and say, ok, i will pay your events put—mac thing about this is that we are a fantastic country with a proud future as well asa country with a proud future as well as a proud past. i don't think we will be paying. some banks have previously said, we may have to look at relocating some of our staff and services into europe if they can't be any special arrangement. mr davies's response seems to be, there is no need to panic because european countries need london, need the city, so they won't want to damage it. another interesting thing in the hearing was the hard time mr davies got from jacob rees mogg over the fa ct got from jacob rees mogg over the fact that during this transition period, this two—year transition period, this two—year transition period, nothing much will change, including the fact that we will continue to take rulings from the european court of justice. jacob rees mogg said that leaves us like a vassal state. you get a sense that there real are tensions on the tory side about this transition pha

and theresa may believes michel barnier a is bluffing. she does not believe the eu's chief negotiator when he says there will be no special deal forexit settling. this wiki banks operating freely across the eu. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm emma chandra, this is bloomberg. alex? alix: it is time for our daybreak first take, where we discuss the top three stories of the morning. first is this monster global equities rally that we have been seeing, all of this synchronized global growth moving out of different fronts. and the chip problems at intel, what do you need to do to secure your phone? and we know it is called, but what about flight cancellations, train issues, and commodity prices? joining us now are carey price and lisa abramowicz. we will start with the global growth rally, but to me the highlight was hungry, selling , sellingebt -- hungary 10-year debt under 2%. it shows the risk on feel that we are seeing. crystallizes the whole story. i love that

government are busy trying to form a new government but what was very clear was that berlin is backing michel barnierongly. while they are looking to try and guide his approach on brexit ahead of this crucial eu summit of leaders in march there behind them as are the french. that is quite strong support. is this all games ahead of the serious stuff when the trade talks begin? that seems to be the belief here in london. thatrtainly we have seen the german government in particular has been pretty consistent all the way along and have not really been playing games at all. . they are quite literal when it comes to these kinds of negotiations. not said i think there is doubt that there has to be some kind of compromise all around. we have heard from other governments, i was in rome earlier this week and they were holding out some kind of olive branch if you like to the u.k. government in terms of the brexit deal but they were also saying that they want to hear more about concessions from the u.k. government. i think there's room for movement on all sides. mark: thanks a lot. the latest in the brexit machi

immigration period that's according to a new revised draft of negotiating guidelines drawn up by michel barnierthe guidelines would britain would have to extend free movement rights, and seek permission to hold on to eu trade deal benefits. donald tusk said he is still open to britain being a member of the uk, but urges the uk to be clearer about its message after brexit >> a survey by allianz shows the risk of regulatory changes and trade protectionism are significant concerns for uk firms, but cyberattacks are the top worry. >>> staying in europe, emanuel macron is heading to calais. later this week he'll meet with uk prime minister theresa may and the agenda is slightly contentious. back in 2003, the two countries signed a bilateral agreement that extended the french border into british territory, but the brexit vote has made that arrangement increasingly difficult now paris expects london to cover more of those migration costs. disagreements have become highly public. this is nothing new. >> the timing is contentious, in the context of the broader brexit negotiations for the french, to ask

status as europe's leading financial center that comes after the eu's chief brexit negotiator, michel barnier, warned there would be no special day for the city. >>> a report by recruiting firm morgan mckinley said brexit is to blame for a 37% drop in the number of new jobs available in london's financial sector. findings show the number of vacancies dropped by 1800 in december, compared to the same period last year the report says uncertainty over the status after brexit has left many city firms reluctant to hire >>> on to germany. the spd leader, martin schulz, says there are sheeveral hurdles to clear before forming a grand coalition with the cdu he said his party will take all time it needs. merkel appeared to back the views saying she sees a number of obstacles both parties will need to decide by today whether to move on to formal negotiations on establishing a new government. >>> in the u.s., a federal judge is supporting the trump administration's efforts to take control of the key financial regulator. the court has denied a request for an injunction that would prevent trump administra

why did michel barnier come out with that our heart is open?sic. but what he said was music to the ears of a small number of remain supporters who are seeking to reverse brexit. what they need is brussels to say, we would like to have you back and the reason why they need that is by the time of the autumn when we will have this deal, they want the british people to see two options — the new deal or the existing membership and they're talking about ways of defeating brexit. is this going to happen? i was speaking to a member of the cabinet who supported remain, who said you couldn't see it happening unless public opinion shifted dramatically. 60—40 in favour of remain, it not really shifting. one of the most most vocal supporters of brexit has been the tory backbencher jacob rees mogg. he was rewarded for his work in this area today by being appointed chairman of the party's influential european research group — a sort of internal lobbying grouping which works to push for a hard brexit. i spoke to him earlier and i put it to him that despite pre

. >> michel barnier insisted that british financial firms will not receive general passporting rights to do business in the single european market after brexit now he is conceding some could be treated equivalent to the eu after they leave next year barnier reiterate the once more that any free trade agreement struck between the two sides would not carry all the benefits of remaining in the customs union. >> translator: let me say this clearly. there is no revenge, no punishment you'll never see in my behavior any kind of punishment or revenge feeling, but only the mere fact that we want to stay in control of our rules and control how to implement them. as the united kingdom wants to retain its autonomous decisions, it has to respect ours >> barnier's comments come as phillip hammond and david davis travel to germany to secure a brexit deal. ahead of the trip the two ministers wrote a joint op-ed there a german newspaper they acknowledged barnier's stipulation about losing some benefits of eu membership but appealed to business leaders to embrace the most ambitious economic partnershi

the eu's chief negotiator, michel barnier, outlined the proposal >> as part of the transition, the uk will be bound by the obligations stemming from all exiting eu international agreements for instance, for trade and aviation this is crucial for the good functioning of the single market and the customs union. we can agree on this in article 50 agreement between the eu and the uk but we cannot ensure that the uk keeps the benefits for this international agreement our partners around the world may have their own views on this >>> in italy the five star movement announced its list of candidates for the general elections. the party's mainstream rivals have been accusing it of inexperience ahead of that ballot in early march. according to latest poll, the five star movement is set to win the most votes as a single party but no one party is expected to win a majority and the center-right coalition headed by former prime minister silvio berlusconi looks to win the most votes in aggregate. i'm happy to say that steve sedgwick joins us from florence. how does italy's current economic situation

christmas, the war has broken out again >> how bad -- how antagonistic a move is this from the eu and michel barnierlearly both sides should all -- both sides and all companies should be preparing for every eventuali eventuality, shouldn't they? >> that's the argument you've heard from brussels yesterday when they were forced to make a comment. they said, look, you have the uk preparing for a no-deal scenario, pe pthey put aside 3 billion pounds to finance studies, why shouldn't we be warning british companies they also face ramifications in europe if this happens yes, that's true, but it's a bit of strong arming tactics by brussels they're very good at this in terms of negotiations. so it is trying to sort of get british industry to put pressure on the british government to be more accommodating in the negotiations so, yes, it is indeed exactly what i would expect the commission to be doing, but it's hard-ball tactics. >> in terms of the strength of the government right now in the uk, clearly theresa may ended on a high note, some of the positive developments in getting the eu negotiations taken a

all the 237 memb7 members of thr doing that through michel barnier, the brexit negotiator if it's a good rapport between the two leaders, that can only help it will encourage the french to look for ways of being constructive in the brexit negotiations, and avoiding the kind of train wreck that is -- that would be damaging to both countries. >> just on the final point, mr. macron clearly persuaded mrs. may to send armed forces to africa i wonder what is in it for the uk if it's a quid pro quo, what are the uk getting out of that >> it's more than us doing something for the french we have common interests in africa there are islamist tourists there, that can be a threat to the uk and france. we had terrorist attacks if britain is going to be a useful, relevant partner to france, it's good we're helping them in an area of high priority to them. equally the french will be sending more troops, part of the nato operation in eastern europe, estonia, which britain is leading there's a bit of quid pro quo going on here, but both countries are looking to support the other. >> terms of your vast ex

transition over the next few months the british side want it done by the end of march that's something michel barnierd at. given the deal could last up to 2020, does that change the ability for people like liam fox to make these trade deals in that time? >> that's still an open question definitely at the moment we cannot negotiate our own trade agreements, though we can scope them out during that time it's unclear and probably up for negotiations with the eu whether we can sign on the dotted line so even considering this kind of uncertainty, what really must be put in place first and foremost is ensuring we can take advantage of the agreements during this transition period that we are currently party to and then look at potential new deals that we could sign down the line >> dr. fox talked to mps eventually he said there is no agreement with those countries to roll over the deals that they have at the moment he said there is an agreement on process. is that good enough for your members? >> not at all. we need more clarity we need to know that discussions have already progressed. it's important that t

michelle barnier made that clear in a conference with eu ministers today. also defended the plan to have a brexit deal finalized by october. this is a major historic treaty, and it may take time for member state parliaments. it might take time for the bishop parliament -- ernest .

michel barnier will say nothing is agreed until everything is agreed, but we can talk about transitionwill not sign it. the one way i think about transition is it stops investment falling sharply. if we do not have a transition movement towards one in q1, firms will pare back their investment in the u.k. and increase it overseas. if we get movement towards a transition, we can continue along the tepid profile the u.k. has had. we avoid a downturn, rather than creating conditions for an upturn. ultimately, even with a two-year transition, what do you tell businesses? you say, at best i will give you two years visibility here? for business, how willing will they be to make investments in the u.k. with that sort of visibility? transitionnything, creates a floor from an economic perspective. , which inflation mystery we don't suffer from in this economy, we've got inflation, the wrong kind of inflation many people will say. you say wage growth is not going to accelerate in 2018. is that because we don't have a strong and robust economy to give the employee that ability to command higher wa

they are led by michel barnier. i think he is doing job. talking aboutwere the italian elections.xpecting them to be disruptive as others. what kind of coalition are you looking at? >> first of all, there were a couple political parties, the five-star movement, the league, which had been pleading for steps to take out of the eurozone. maybe by calling a referendum. this has vanished. defeat, and aen positive move economically and politically throughout europe they must a perceived that is no longer a winning proposition. we now have a convergence of all parties on accepting the european context. to be fair, we have a convergence among global parties to issue promises, particularly that aretters inconsistent and belonging to the eurozone because they tear away all the fiscal and financial parameters. as recent polls show, citizens do not seem to be impressed. they do not believe these promises. if we look at the financial markets, the spread between italian bonds and german bonds, that is still high because italy is up relative to spain, which is not normal. but it has been unaffec

today, we get the eu giving marching orders to michel barnier. his negotiating brief.t you want from the transition. what is your message when it comes to transitions? miles: ultimately, you need it as soon as possible. the greater the clarity, the sooner the clarity. the greater sense of direction we are going in, the better for customers, clients, shareholders, and employees. manus: you made the point that the eu needs to step up their vision on what they want in a new relationship with the u.k. afterward. from the rhetoric we have had lately, i can only go off the rhetoric, it is the emphasis that it's up to you the u.k. to define what you want. i assume is off the table. is that your base case assumption and why do you think it is up -- why do you think it is not more up to you to define the relationship than the eu? miles: it's quite clear from the u.k. side and the conversations we have had in brussels that is off the table. the question is, what do you replace that with? that depends on are you privatizing politics or privatizing the economics -- prioritizing th

. -- believesmeans michel barnier eight is buffing when he said there is no deal for financial servicesor officials have think the chief brexit negotiator is faking a hard-line stance and drawing out a deal that will allow banks to continue operating freely across the globe. tot comes as the u.k. plans negotiate its post-brexit ties with the european union. merkelchancellor angela and the coalition parker had said the chances of successful conclusions to their talks have improve. she wants export tory talks to be included by the middle of this month and formal negotiations to take place after that. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . share markets showing us how you start a new year. the nikkei coming back online with a gain of 3.3%. the best gain in over a year. the best start to a trading year since 1996. also good gains in late trade led by the likes of tencent. of 1%. 300 closed by .4 jpmorgan upgrading its forecast for china growth from 6.5 to 6.7%. in term

michelle barnier made that clear in a conference with eu ministers today. she also defended the plan to have a brexit deal finalized by october. this is a major historic treaty, and it may take time for member state parliaments. it might take time for the bishop parliament -- ernest . i want to make sure we have that time, because we have to have that time period available. we cannot go to close to the end of the year. it does not matter if we are passed by a week or so but we wanted by the end of october. mark: david davis pushed back against the october deadline. he wants the deal finalized over the last three months of the year. the you will have no say during the transition period. four months after hurricane maria struck puerto rico officials say thousands more are still living in hotels. reimbursements from feeema have begun to run out, and many say they cannot afford temporary housing without assistance. maria completely destroyed more than 70,000 homes and damaged 300,000 more. the agency says the program will end march 20. in galveston, texas, offi

michel barnier has been trying to talk for months of about what relationship u.k. wants. cabinet is still debating how close britain should stay to the block. care or do people -- the level of pound, which i have a my charts, they just want to know the economy is ok. stephen: i think it's fair to say that they are not going to look at negotiations deal by deal. the nature of negotiation is that it is a negotiation and you do not know what the endpoint will be. that positions will shake the final outcome is often a misleading stance to take. said that sterling is the pressure valve that this is than playing out and that's true. is another thing going on. sterling against dollar has been rallying as a function of dollar weakness. dollar rate is pretty much the same as it was at the beginning of the referendum. against euro it is still much weaker than before the referendum. there's a lot of different moving parts here. it means from the point of view of dollar earners, the tailwind to earnings is no longer there. dollar weakness is a modest headwind. what the final outcome

michel barnier is key here. it's interesting to think of tusk. no brexit and that's increasingly becoming the case. he is talking about the u.k. changing its mind. when we talk about the possibility of a general election there is also a possibility of the u.k. changing its mind. are seeing the general public increasingly in favor of a second referendum. will that come? it seems very unlikely in january. this is going to be a year with a lot of detail to go through and we could see a significant shift over the course of this time. francine: we are also seeing philip hammond taking some questions. we are looking to see whether he answers anything on brexit and his vision. if you look at the next prime minister who is that and you think we could have a general election by the end of the year? this would be almost a disaster for brexit negotiations. >> i have to say i lean towards a gradual painful move towards a deal. there will be a transitional agreement agreed in principle in march. i think there is the capacity to drop back into the hard brexit.

at worst she loses a vote in the house of commons on the final deal that is struck with michel barnierexit party? there are none. i tell you why, setting up a new political party in this country, getting it establish, getting the name known, getting people to understand what it stands for, is an incredibly difficult thing to do. i know. i spent 25 years of my life trying to do it with ukip. ukip, has had its good moments and going through one of its bad moments. people know it is the party that wa nts to ta ke people know it is the party that wants to take us out of the european union and the party that dares to talk about the immigration issue and says we need to have controls, i wa nt says we need to have controls, i want a reformed ukip, when it comes to brexit a lot of pressure needs to be applied. nigel farage, thank you very much. thank you. research published today has shown 80% of britain's sex workers have been a victim of crime in the last five years and almost a0% of those surveyed would not report crimes to the police. it's part of a two year study which will finish later t

the former ukip leader says michel barnier did not understand that ‘open door immigration' was a keyxit. i really don't think he gets it. and what i suggested to him that might be something to do with open—door immigration within the european union is a look of incredulity as to say surely wasn't it outside the eu migration that was the issue. he didn't understand that. i also got the impression. i understand the government want to do their best to trade and everything else i don't think anybody has been to see him to make that point. there are fears of an environmental disaster in the east china sea, as a tanker continues to leak oil, two days after colliding with a cargo ship. chinese officials have told state media the vessel, which is on fire, is in danger of exploding and sinking. south korean planes and an american aircraft have joined the search for 32 crew members, who have been missing since the incident happened 160 miles off the coast of shanghai. robin brant reports. for two nights, the fire has burned. dark black smoke feeding off the cargo, of almost a million barrels o

michelle bonnier is loving. senior official say that they don't believe the eu chief negotiator when they say there will be no special post-brexit deal for financial services and they think that barniers faking about what will allow banks to keep operating freely across the eu. powered by 2700 journalists and analysts in more than 120 countries. i'm emma chandra. coming up, a new twist in the very public break between president trump and steve bannon. responses, rebukes, what it means for the gop and potentially markets. next. this is bloomberg. this is bloomberg. ♪ is bloomberg. ♪ mark: live from london, i'm mark barton. york, i'md from new vonnie quinn. another public twist in the very public rate between donald trump and mark bennett -- steve bannon. for cease and has been sent to the publish ller of "fire and fury. -- publisher of "fire and. ." josh, also the author of a book about steve bannon, the devil's ."rgain thanks for joining. first off, it's not clear if this season and desist letter will result in the book not being published later in the month. >> it's hard for me to imagine that would happen. the book comes out next week and there are already copies at booksellers. it

directives for the negotiators, for michel barnier. michel barnier.ion—making. decision—making. you take all the rules and have no say. say. into it, but having no influence over it? yes, precisely. have said in the last few days, ruled taker, a vassal state. ruled taker, a vassal state. next year when the uk formally leaves the eu. leaves the eu. gives them time to negotiate and sort out that future relationship. sort out that future relationship. that is the key thing, giving the space to do that. space to do that. we will be hearing from michel barnier shortly. from michel barnier shortly. just outlining where we are at the moment? moment? commission in a few minutes per time. time. also, importantly, about how rigidly he may stick to this. he may stick to this. directives from the 27 eu countries to him. to him. his room for manoeuvre is pretty limited. pretty limited. like a brexit bill of tens of billions. billions. there was argument about that and ultimately the uk agreed. that and ultimately the uk agreed. have given michel barnier that he ha

we will show you michel barnier. will show you michel barnier. pictures as he came into the room todayls and negotiate the terms for this transition. this transition. negotiating trade deals while the transition period is on. transition period is on. areas where the british government will be able to negotiate. will be able to negotiate. the rules of the european court of justice. the grammy awards in new york last night. night. including best record, alan and song of the year. of the year. also two awards for ed sheeran —— bruno mars. sheeran —— bruno mars. 24 carat tragic, bruno mars. tragic, bruno mars. who took on six grammys including the big three. the big three. record, album and song of the year. song of the year. one reason and one reason only and that is love. that is love. platform to highlight notjust one but many of the issues of the day. but many of the issues of the day. with the movement to end sexual misconduct and gender inequality. misconduct and gender inequality. there's still a lot to be done, is in there? in there? a safe workplace, so i think the time is up. sta