nejra: fair enough.ome of us are expecting the banko central to trim ratios as early as this year. that would be following up on the two-percentage point cut last year. when is the right time this year in your view to resume that reduction? >> well, there is always time for everything and we are waiting for the right time before we can adjust to a lower level from the present level of 18%. first, we need to see that such a reduction in reserves will not impinge on domestic liquidity -- actually no, we want to make sure that we have a proper level of liquidity in the market so as not to complicate the monetary policy. we want to make sure prices remain stable and inflation remains firmly entrenched in the two to four inflation target of what the government and bsp. second, we have to sure there is tightness in the market. right now, there is little evidence of that tightness in the market. on a weekly basis, we see oversubscription. if we look at the growth of credit and liquidity, they are fairly reasona

nejra: yes.f we look at the full year net, as i said in the introduction, that was a beat at $3.70 billion. what's the explanation for that number? so, 2018 so -- mario: was a tough year. we had catastrophes above average. we had huge volatility in the markets. but nonetheless, we managed to perform and to deliver what we wanted to deliver by year-end. when we presented our three-year plan in 2016, we hinted to investors that we will be delivering high returns to our shareholders, dividends, because profit will be growing through the years, and we are glad to see we are respecting those policies. nejra: yes. now, also, as part of the restructuring you have overseen, mario, zurich has made a series of acquisitions in recent years, diversifying the business, rebalancing the weighting of corporate and retail clients. let me ask you what your next acquisition is. mario: [laughter] we don't know that yet. we are busy trying to make the positions we made as profitable as we wanted them to be. so far, t

i am nejra cehic. these are today's stories. , chair slide on extended trade. jay powell and president trump me for dinner monetary policy is not discussed. steve mnuchin also attends. .p reports after rivals nejra: good morning, welcome to "bloomberg daybreak: europe." we are a couple hours away from cash equity trading. it is a quiet session in asia. a lot of markets closed for the lunar new year. we are seeing gains in japan and australia, the msci up 0.4%. not much direction from s&p futures. the 10 year yield around the 271 handle. the dollar is fairly steady. the big story is in australia, the aussie dollar is reversing losses from earlier, but we have seen again after we did not see a dovish tilt, the aussie trading at 72.60. the banks have been rallying, 4.5% up. some seeing it as a soft touch from regulators, some of the worst news did not combat was expected, for example the breakup of the banks. ahead tomorrow. trump we are asking, will 's speech move markets? you can reach out to us on your

nejra: good morning. i'm nejra cehic. this is bloomberg daybreak: europe and these are today's top stories. going nowhere. the u.s. and china fail to narrow the gap on train issues. stocks fall with you as futures. shutdown averted. congress approved a spending package. trump is expected to sign the deal but could declare a national emergency to fund the wall. the u.k. parliament throws out theresa may's plan to renegotiate brexit, but time is running out. ♪ nejra: good morning and welcome to daybreak europe. just under two hours away from the start of cash equity trading in europe. you want to watch these numbers crossing the bloomberg right now. raising the dividend to nine euros per share versus eight euros, the estimate was 8.81. also an increase, raising the dividend to nine euros a share. in terms of the other numbers coming through, third-quarter net income comes in at 1.7 6 billion euros. that is in line with the estimate of 1.7 6 billion. 11.5 billion euros versus the estimate of 11.5 billion euros. that for your

nejra: this is bloomberg. ♪ nejra: "this is bloomberg best." i'm nejra cehic.undup of the week's most interesting earnings report. a slew of banks released results. we begin with a big miss from b.n.p. paribas. alix: bnp paribas brutal , quarter when it comes to their overall trading revenue, down 40%. their equity trading was abysmal, down 70%. >> if you look at our balance sheet, is very solid. on top of that, dividend of 3.5 euros or share, paid in cash. per share,ion euros paid in cash. it basically confirms we are well on track for our ambitions for 2020. philip: clearly better and more realistic than they were. but everything we've seen so far have been to investment banking. we see those problems elsewhere, ubs or deutsche. they haven't cut the targets within the retail business and , and that could be the risk going forward. economic downgrades across europe. hikes they were hoping for has not come through. there will be more downgrades to come on that front. ♪ nejra: ing reported fourth-quarter underlying the tax profits of 1.69 billion euros, beating

nejra: welcome to surveillance. i'm nejra cehic and for francine lacqua. let's get a chicken on the market. six they of gains for your -- european equities. a lot of it has to do with oil and gas stocks of outperforming -- stocks outperformed to the upside after bps big beat. oil and gas giving a lift to most industry groups on the front foot. coming inrvices pmi at 51.2. the preliminary was 50.8. that data coming through and ahead of that we see the euro getting a two week low. down 0.2%. the services pmi is coming through and we should begin the competent number in the moment which we will bring u.s. soon as it crosses the screen. global growth concerns still on investors minds. we talk a lot about the fed in this hour as well. with all that mind, the 10 year yield gives us a good cease -- signal of risk. we are up one basis point. a look at australian assets today with that report on financials of banks. sticking with the u.s., make sure to catch our coverage of president trump state of the union. he will have all the latest from washington's big event.

nejra: great job.wbar something on italy because i spoke to the ceo of intel's a earlier -- inteza earlier. giving a big promise on dividends. our italian banks something you would look at as an opportunity? alberto: the national champions, like in spain, in italy you have wide valuations. in credit especially. we have banks which are compared to the government, compared to the risks that the country has in reality, they are very diversified. only half an italian bank and as a european bank for the other half. nteza makes most of the money from management and not lending. you have a mispricing with the risk of the country but more diversification. from a capital level, they are robust. you could argue that maybe they quickly asbound as the u.s. or china, but for the credits to be ok, you need growth to be positive. the pricing out of recession risks in europe is a big opportunity. we still like european credit. perhaps we were early in calling it long last year, but this year it is starting to perform.

nejra: good morning from europeans london headquarters. i am nejra cehic. i am manus cranny and these are the top stories. nejra: worse than expected results, the cfo says they are more concerned about the u.k. than china. >> we are certainly able to grow our u.k. business. we are cautious on outlook for credit given the lack of certainty on the direction of the u.k. economy. nejra: collision course talks between the u.s. and china resume in washington, but transatlantic relationships causing angst over car tariffs. as a delay isit raised again. legalfficials work on the text for the backstop. manus: it is "bloomberg daybreak: europe." let's get you a snapshot of the markets. , down sheit of oil iss, one cannot say what driving the pound it down. what does it mean for brexit? what does it mean for the landscape? we are in gods hands according -- is trade optimism between the u.s. and china, you might have car wars coming into play. nigeria's output is down. saudi exports are falling. i want to show you 10 year yields. this fascinates me with where we go. to

nejra: me nejra in london with tom keene in new york. -- i am nejra cehic in london with tom keene ineadlines coming brexit commenting on saying a no deal brexit should be avoided and in terms of what was discussed with angela merkel , saying japan has agreed to raise the level of that partnership and reached an agreement on intelligence sharing. tom: always interesting to see germany and japan meeting. here is viviana bank. . viviana: ralph northam meeting with senior advisers. fellowre calls from democrats to resign. he says it is not him in the picture. a report out today shedding light on allegations that huawei has been trying to steal u.s. trade secrets. an fbihatzker following investigation into its dealings with a chicago area starter. this ceo accuses huawei of trying to steal the glass he invented. >> they wanted to work with us on product negotiation. it would have been in contention. we wanted to let them know we are willing to work within the company within the limits of the law. if they steal technology, there will be recourse. viviana: president nicolas resistis bowing

nejra? nejra: let's get the latest on brexit.han 50 days to go, the prime minister travels to dublin to discuss the issue of the irish border. yesterday, following tense meetings in brussels, they agreed to further talks by the end of the month. maria tadeo is in brussels for us today. good to see you. no concessions from the eu, but was there any good news for theresa may yesterday that she can bring back to the u.k. eventually? maria: good morning. no concessions, clear as day. but it wasn't a complete failure, especially if you take into account just 24 hours before she arrived, the head of the european council pretty much said brexiteers should go to hell. the two sides agreed to talk. and we know they will meet by the end of february. that in itself is good news for the prime minister and the u.k. the eu has said, as far as we're concerned, the negotiation is done. in terms of actual policy, they are still on a different page. the prime minister said she will deliver brexit on time. the eu will say we cannot ditch the backst

nejra: i'm nejra cehic in barcelona. manus: time for your business flash.s launched its first folding tablet phone after sensing is in the same. it's slightly bigger than the galaxy for. it's a bit more expensive to. cost 2600 dollars. the galaxy full comes in at just under 2000. giantan mired -- mining barrick has acquired thousand shares through a subsidiary and plans to table changes. gary goldberg says the move is, tote, a desperate attempt quell a current deal. gains near three-month high in the world's largest oil traders as prices could rally even further. opec columns outputs an american sanctions cause a shortage in the market. a surge in u.s. shale supply could drive prices lower in the fourth quarter. an exclusive talk with guy johnson. is quiteoducing area removed from the coast and quite remote from refining. they need pipelines to connected in those it was are being built. as is pipelines come on, some of when can we so the expansion is forecast will start to hit we should of a surgeon production. if the pipe what is there coming .an move it i

nejra: yes.w might that, if that were continues, impact your result going further out to this year? of howwell, it is a mix you shift investment in order to ensure that the processes are up to date going forward. it is about having the right tools and monitoring in place. and, it is a lot of work around clients. in the end, it is a mix of front office people that otherwise would also do commercial business. now they do that in the combination. it is a good way to work. the real effect on the cost side, you cannot really say. it is a mix of activities that people have to do. we are committed to finish this and continue the program that we started two years ago. cost has beenat blended into the pnl over the last year. nejra: you also said in the commentary that you see the need for further cost discipline, specifically how you will achieve that cost discipline. ralph: if you look at where we are in the cycle, we have basically already a quarter ago indicated we would be more cautious and selected a

nejra: good morning. i'm nejra cehic. this is bloomberg daybreak: europe. these are the top stories. chinese equity shirt off trade concerns after markets play catch-up after the lunar new year. japan shut for a holiday. china trade negotiations ratio -- resume in beijing. can a deal be reached in u.s. -- before the u.s. doubles tariffs? theresa may except the offer of more talks with labors jeremy corbyn as she tries to buy time to renegotiate her brexit deal. welcome to daybreak europe. two hours and the start of cash equities trading. pause a little bit of a in the rally and risk assets since we seen at the start of the year. global equities stopping last week after five weeks of gains. you're seeing u.s. futures struggling for direction. emerging-market rally, taking a bit of a pause for breath. dropping below the moving average. you will see how currencies are performing today. little bit of a pullback in the end. dollar-yen on the front foot. of ae seeing a little bit risk on today and it is at least showing up strongly in equities. meanwhile, oil ext

nejra: good morning from london, i am nejra cehic. mrs. "bloomberg daybreak: europe -- this is "bloomberg daybreak: europe." bank suffers its eighth straight revenue contraction. we speak to the cfo in a few minutes. make or break budget, india's prime minister tries a last ditch attempt to woo voters. good morning. welcome to "bloomberg daybreak: europe." let's get straight to the markets in asia. juliette saly has more for us. juliette: happy friday. pledging to double incomes by 2022. elsewhere, it is mixed in asia. we had disappointing numbers out of china, which has weighed into weakness. hong kong stocks tracking lower. china up by 1% despite disappointing data. let's look at the stocks we are watching, indian stocks in focus. jet airways on a tear today. it is getting close to the agreement with -- this is a solution, the bailout plan. we have seen the revenue for the 2016 inme since july hong kong under pressure. australian private health operator, the board recommending a $4 billion bid. they could increase their bid. investors ar

nejra: yes. went to see it seems that the reasoning behind it is cost records and also to do with regulation. reasonsto us how those are feeding into the types of job cuts we're likely to see in terms of what roles and where. bio: it mostly relates to the business trading. it, too that is heavy for the equity trading. what we understand now is that socgen is also looking at options for its cash equity business. that will be another way to alleviate pressure. say, shares are a little bit higher today, maybe the market rewarding perhaps some action being taken there that could be necessary. thank you so much. great to have you with us on the show. let's take a broader look at europe. gdp remains unchanged in the fourth quarter, this contributes to the slowdown in europe. mario draghi is expected to address this weakness. investors will be looking for any indication on the ecb's direction. the great too happy with us on the show. take on the eurozone economy right now. is it as bad as a lot of peopl

>> good morning from london, on nejra cehic. cranny at i'm manus the north africa summit in abu dhabi. this is bloomberg "daybreak: europe." these are today's top stories. deal ife's willing to the countries are near a trade agreement. optimism spreads across the globe with stocks in asia extending wall street's klein. an high-stakes gamble, theresa may and the e.u. had for an all or nothing last-minute brexit showdown. manus: a warm welcome to "daybreak: europe." let's get straight to the , a 20%g chemicals giant stake in this company. full-year adjusted ebitda matches estimates, that is the message. when it comes to the final quarter of the year, this is what the market will be focused on, the slowdown. we've seen the drop in fourth-quarter adjusted ebitda. fourth-quarter sales also a miss. , still robust demand around the world. we want to see what they said about guidance as we get into this later on. theyourself is a this and -- full-year sales is a miss on the fourth quarter. a little bit of pressure and a slowdown on the

nejra: good morning from london, i'm nejra cehic. manus: and i'm manus cranny, live in dubai. this is "daybreak: europe." bloomberg scoops, washington said to as beijing to guarantee is stable you in. hasial meeting, theresa may back to brussels and a last-ditch attempt to save her brexit deal. but theis not bullish, pound climbs to a two-week high. but turbulent year for the world's biggest commodity trader. fortescue strikes an optimistic note after profit falls. ♪ manus: it's 6:00 a.m. in london. it is that day, everyone will get their minutes. we have a big call, you're going to go to zero and possibly to inversion. urban's -- early balance sheet announcements and the short end of the curve. this is where you are at the moment. you thought you had been safe with a pivot to patients, but not according to bno. the fed may indicate the risk to the economy are higher than we are all thinking. let's have a look at the pound. a significant day, we rallied by 1%. abovein the highlands, when hundred 30, but the skew in terms of the options money, they are protecting themselves, no

nejra: thank you so much.ou stay with us for the hour. let's get to these markets. we did see the s&p 500 and in the green for the fourth day yesterday. it shrugged off comments about taxing buybacks on an equal footing with dividends. futures pointing higher today. higheryear yield ticks on a 271 handle. we have -- the economy and a good place. u.s. inflation data, the curve flattening yesterday. i'll be watching the euro as well at 7:00 because we get that fourth-quarter gdp data out of germany. it is crucial in filling out the picture about eurozone growth. right now, the euro holding up. bouncing back after it hit a fresh 2019 the yesterday. i know all eyes are on the dollar. goldman holding onto that short dollar goal. manus: there you go. that just about sums it up. they say the dollar itself will trade back to 93. you will not have an explosive growth scenario in the united states of america, or this major contraction. i popped in oil there for you. you have the u.s. imports from saudi arabia back down

nejra: i am nejra cehic. u.s.ntering a mild recession is seen by next year, he spoke with bloomberg earlier about fed policy and his global outlook. >> if you look at asia and components of chinese industrial in negativethey are territory. if you look at europe, italy went into recession a week ago. germany's numbers look like it will be in a recession in the next three to six months, and the u.s. has this positive stimulus from the tax cuts that a 250 billion dollar impact last year, and a $400 billion positive impact next year, but next year it will only be 150 billion. -250 next year, so i think economic activity will back half of 2019, and the middle of 2020 we are likely to be in a recession. and the conflict between democrats and republicans and congress, my guess is the democrats will not let trump stimulate going into an election year. the are saying he is taking economy hostage, and they will let him shoot it. i expect the u.s. in a mild recession by mid-2020. f inu gave powell an december and said he fai

nejra: good morning from bloomberg's european headquarters in the city of london. i am nejra cehic. manus: and i am manus cranny, live from dubai. this is "bloomberg daybreak: europe," and these are today's top stories. nejra: policy makers the 2019 as the end of the balance sheet runoff but not necessarily their rate hikes. thrivesa deal, market on trade optimism, but will enough progress be made to avoid new tariffs next week? there is optimism the brexit agreement is next week. barclays reports this morning. we will hear from jes staley on this. and the results. welcome to "bloomberg daybreak: europe." 6:00 a.m. in london. let's get the numbers. a number of telecoms companies reporting today. asnge and telefonica as well telecom italia. door to telecoms seeing 2019 at 23.9 billion euros, so that is a red headlines crossing the bloomberg. deutsche telekom's adjusted ebitda comes in at 5.6 5 billion 5.65 billion euros. they will propose a dividend versuse to 70 euro cents 65. dividend increase, that's a positive. fourth quarter adjusted ebitda missing. revenue coming in at 20.3 bil

nejra: good morning from new -- from the city of london, i'm nejra cehic. this is bloomberg daybreak: europe and these are today's top stories. nejra: timing is everything. the feds dovish pitted could recession past 2020. jay powell is coming around to a wait-and-see view. are pushed upets that are tweeting today the european and u.s. equity futures struggle for direction. warnings by the queue? nissan scraps plans to build a new car in the u.k. as theresa may renews efforts to find a plan b on brexit. good morning, everyone, and "daybreak europe." let's get to the ryanair numbers. confirming its 2019 profit guidance between 1% -- 1,000,000,002 1.1 billion euros. revenue comes up to 1.5 3 billion euros. the key here is the versus arter loss profit a year ago. ryanair saying it cannot rule out further cuts to airfares and guidance. basically, ryanair reporting a 19 point 6 million euros net loss in the third quarter and is expecting weaker fares. the passengers were offset by 6% decline in average fares due to excess winter capacity in europe. commentaryso

nejra: we absolutely are. bynificant climb down theresa may to appease some of the pro-european ministers in her cabinet payment we are hearing she will offer them a chance to vote on delaying brexit to avoid that no deal scenario on march 29, so a delay is on the table. the question is, is the momentum working? let's get into the markets, we are waiting on a couple of results to come through. we have the dollar in chinese equities. we've had this cracking run. it's the dollar index we are going to go with. conflicting signals coming through, muted inflation. if the power to direct markets or to deliver on the upside in terms of inflation? suggesting a restart of rate cuts and qe. that's putting a little bit of pressure on the dollar. let me show you what's happening with the other equity markets. goldman sachs saying you might see a little bit of a drawdown in the chinese market. if you see that you will get an opportunity to jump into these markets again. irish or, i bring your attention to that. goldman sac

nejra: and i am nejra cehic in barcelona.anus: let's say you an exclusive conversation with the ceo of standard chartered. they restructured the operations in markets including india and south korea. francine lacqua is joined by the ceo. very good day. good morning. i am delighted to be joined by bill winters. what you put at out to investors, $700 million of cost cuts by 2021, where is the bulk of it coming from? bill: the cost cuts are part of a broader plan. we are focusing on getting our returns above 10% by 2021, which we are well on the way to doing. it is now a superstrong bank. i cannot tell you how excited i am to be there. we are through the really hard restructuring we needed to do to get the bank clean. we need to take the next steps to complete our journey. you mentioned would be one part of that. this is $700 million over three years. basically allowing us to fund the substantial investment program that we have had for the past three years and will continue to have. francine: how do you actually look at it? now

nejra, you have our guest host. nejra: let's get back to neil from allianz global investors.issue now that investors who might previously have been ignoring need to pay attention to? how does that impact portfolios? >> i would have said not. this is the biggest asia for -- issue for asia and south korea. for everybody else, particularly the u.s. market, they come more to it -- take shift to the european. given that your trades on earnings in america trades on 16 times earnings, that might not be a good shipped. >> we are talking about the u.s. market. the fed keeping an eye on a geopolitical risk, also balancing that against what's happening in the home market. we heard again from jerome powell yesterday. most notably on the balance sheet. confirming there is some sort of existence of a powell put. >> i think they thought the --ength of the u.s. economy i think they were rightly anticipating that with their moves. suddenly going, oh gosh, this is not really happening. what they are now seeing underneath it is the employment situation pulling people back in to the situation. t

nejra: key questions to be answered. much, bloomberg's commodity and energy senior reporter david springer in melbourne. let's check up on markets around the world. let's start with you. the global rally skipping india today, why? yeah, good morning to you, of course. inia has not participated the last 45 days, indian markets have stayed lower. i don't know if it has to do with one oil moving up and that factor not working, or the flows having slow down. there was money in the first week of february, since then, last days have slow down and flows have slow down. it is probably weighing down. we did not do too much, currently languishing of it. one more point before i give it back to you, is what is happening within the markets. one thing that is becoming a sellinglenders not collateral stock held by them. it happened with one of the largest media groups in the country, and now has happened with another your -- another. those stocks are up and about in the session. one hopes it is not become a norm, but for now, it is gre

nejra: the bank of england cuts growth outlook as brexit

nejra: do you plan to communicate that? nejra: yes we do. when it is agreed. we found it's good to be careful with the balance sheet. nejra: your reference point was fed. $1 trillion at the the reference point for when you and the reduction of the balance sheet. do you have a timeframe on that? nejra: there's a lot of uncertainty around the actual level. i said those public estimates appear reasonable. we will have to find equilibrium demand over -- nejra: so in light of ,esterday's housing figures what impact housing figures froy have in your timing on holding rates steady or do they have any impact. >> we said we're going to be patient and watch as the economy evolves and also as the evolving risk picture changes and how that affects -- how that will affect the outlook. we will look at a full range of data and include housing starts. anything that could affect our achievement of the doom mandate, principally growth and labor markets and inflation. looking at a wide range of data. that's one piece of it. it's one of many pieces. >> related to that, housing fi

nejra: theresa may hansteen northern ireland to try to bolster her brexit deal. can she find an alternative to the backstop? that conversation next, this is bloomberg. ♪

nejra: do you have partnerships with others in spain? others as well. nejra: more to come? >> sure.l. network sharing is a reality. nejra: you have contingency plans for brexit, including for the supply chain. what exactly are you doing? stockpiling equipment, for example? a financial and , it isonal standpoint unclear for us what is going to be the outcome, so we have different preparations. but we need to be ready. nejra: does that mean stockpiling equipment right now? >> it is making sure it is available in any scenario. deleveraging push is working. is debt now low enough for you to consider returning money to shareholders, either by buybacks or dividends? >> deleveraging has been an essential part of our strategy the last three years. we have been taking down by $12 billion in three years, roughly the size of the sale years ago. we have been reaching the highest levels of revenue in the last decade. we need to have intensive deleveraging. nejra: could we see buybacks or dividends soon? >> at this time we analyze all alternatives. nejra: if i could circle back to the huawei issu

nejra: earnings season rolls on as dozens of companies reported has top executives complaining.as been a good quarter. it has been a good year. numbers look well. dhivya: with strength across the board, north america was very

nejra: how likely is the prospect of no deal?hink it all depends on the decisions that are made by theresa may and others within her government. i would have imagined that knowing what she knows about the impact in our security and our economy that she should not even contemplate that. from speaking to people in the conservative party, there are those that say she is prepared to do that. there are others in government who are responsible, who will need to step up to the plate. i think we are to see that today in the vote in parliament. maybe that might happen in two weeks time. the clock is ticking. we are scarily close to that march 29 deadline. when we didn't have a plan about what was going to happen, about what our negotiating position was going to be, the it even come to an agreement about that until the laughter a year after triggering article 50. it is an atrocious mess. it is quick to take leadership from those in government to roll out no deal. -- rule out no deal. the prime minister is not doing a terrible job in terms

nejra: let's talk about possible plans to go public.there a plan still to go public for arm in five years? currently owned by softbank. simon: we have been a private company for about two and a half years and it has given the opportunity to invest more than we could have. the plan is to go public again. we are talking roughly a five-year timeframe for another to use theprocess is time we have to make sure we are developing the technologies for the things that will drive growth in the technology sector and when we look after that, we think of 5g. it is still in the early stages. it will produce more sophisticated devices, autonomous vehicles, ai broadly as a technology that cuts across sectors. these are many areas where we are innovating. we will have products and they should be coming to fruition around that time frame. stephen: you are working on a lot of things. nejra: what specifically do you want to achieve before you get to that ipo? what is your top priority? simon: it is about diversification of how our technology is used. a lot

nejra cehic is in barcelona with a guest. thanks so much. the u.s.g -- casting little bit of a shadow. the u.s. has been pushing for some its allies to drop huawei -- ofhe development as 5g. his technology they'll be essential for ultimate factories as well as internet of things. with me is oranges deputy ceo. delighted to have you with me. let's talk about 5g. you on working out 5g services. in 2019, will be developing 5g and 70 cities in europe. it's very exciting. 19 is the very beginning. depending also on the availability of the license goes we knew the -- the -- of devices comic as many devices, we will be ahead on 2019. the u.s. has been urging allies to drop huawei from 5g implementation. they have always repeated tonight -- wrongdoing. -- denied wrongdoing. you making any preparations in the event that they are banned from 5g networks? is trying to doing reframe that security is a key element. we are taking care of this security. care oftaking customers. we need anr hand, agreement terminal to make sure different vendors. opportunity so we a

nejra: the state of the union is complicated. goes before the nation with a siege. >> he had a couple of key lines for the base i think everyone will remember. >> he did not spend a lot of time on trade. nejra: earnings season rolls on companiess of reporting and executives complaining. >> as has been a good quarter. it's been a good year. numbers look well. >> strength across the board.

let's go to nejra cehic with the markets. taking on our taking risk off the table.e a look at some of the asset classes, the euro is doing nothing at all. we look ahead to mario draghi, oil is slightly on the front steps. we are heading for a weekly gain on oil. , we did see session some outperformance for chinese stocks. table pretty much unchanged, even though there might be some help of a brexit deal. futures,ftse 100 higher. the u.s. stocks dropped yesterday. how are we looking today? let's take a look at how we are opening. futures are not gaining a whole lot of directionality. certainly not quite where we were on futures. directionality. the dax can take some time to get going. waiting for the cac 40 to open. we can get a fuller look. here comes the dax. flat. not a huge amount of action in the markets today. where is the directionality going to come from? president trump is going to be meeting with china's lead negotiator. that came into the markets yesterday. let's take a look at the industry group. just taking a look, we take a look at the defensive's. litt

--y are eager to see nejra: lyft go first. they don't want uber to dominate the story. lot abouting to see a uber on the ipo roadshow. shareholders are interested. fidelity is already an investor. it will be interesting to see what they end up continuing with. >> you are and investor. what did you see in the company back them? >> when we invested in the company, we have guys that look at the numbers. i look for relationships. has -- peopleft want to see lyft be successful. say great things about how they treat women and all of their employees and the people they ride with. i'm excited to see where the company goes. management, everybody there is really good. it's going to be really exciting. >> both are losing money. how do you see investors stomach in that? >> a lot of tech companies are not profitable. lyft is working toward increasing their margins. theirre trying to make market share in the u.s.. they don't spend as much money. expande trying to socially unconsciously. i think they are going to get there. they have to tell their story. they are expanding in cities a

nejra: a disappointing release from abn amro.e dutch lender hit by an increase in bad loans and additional costs related to money laundering prevention, covering the banks plan to increase the dividend. what reassurance can you give to shareholders that you will be increasing the dividend at any point after keeping it unchanged in today's release? clifford: this year, we have paid out 62% profit, our policy is 50% target, and an additional amount depending on where we are in capital. so for 2018, we paid 52%, up on 50% last year. what i can say is we are well-placed to consider additional distributions for 2019, and we clearly make decisions for the dividend at the end of the year, which is about in one year's time. caroline: it was a strong finish for under armour, as shares as sharesid profits jumped after its release of fourth-quarter earnings showed solid profits. it looks as though there is relief about the turnaround effort going on. sarah: last year was a story were under armour ended up with huge amount of bloated invento

nejra: that -- anna: that is certainly a big talking point, the potential for consolidation in the germanking industry. let's talk about something that is not getting together, but breaking up. that is airbus with its flagship project that was the superjumbo. euros,st of 463 million they have made what some lenders have called -- investors have called the painful decision to cease production of this aircraft. they are going to stop and they put a bit of a timescale on that, putting a-380 into retirement essentially. they will have to announce the loss of a major new order of wide-body a-350's. that order has been reduced. over in the take cockpit over at airbus. we was speaking -- be speaking to the management -- we will be speaking to the management at airbus later on. revenue roseer's by 4% in the fourth quarter to fall in line with analyst estimates. they also posted falling profits but said it will post profits for the full year. joining us on the phone to talk about earnings is thomas blades, the ceo of bilfinger. let me ask if you're happy with the numbers as they stand in the fourt

nejra and manus spoke to the ceo. we'll see more throughout the day. anna: thanks very much.ting stories in the markets, the stoxx 600 entire he -- entirely flat. another blow for britain. nissan scrapped plans to build a new model at its plant in sunderland. ongoing doubts about the u.k. split from the eu factored into the decision, although there were other factors. what does this mean for theresa may as she launches a group today to work on her plan b, the so-called alternative arrangement? joining us is, thomas. having a bloke -- and the thomas. this -- howow is big a blow is this? emma: certainly a blow to theresa may, partly because she was offering guarantees to nissan about the future. nissaner that letter, announced it would continue investing in the u.k. to some extent, it suggests it's no longer for the car company. could lose quite a lot. it's interesting to note in the northeast, there has been polls in recent months that suggested a slight change of heart about brexit since the referendum. so this comes with just 53 the day andgo until brexit theresa may trying

nejra: president trump just concluding his press conference in hanoi. a number of interesting headlines. no joint statement from the north koreans and the americans. trump says he did not commit to another summit with kim jong-un. let's check what is happening in the markets. thank you to the european market open. we are seven minutes away from the start of trading. we have seen asian equity markets shaken by the failure to reach any kind of joint statement and weakness in the south korean currency as a result. that presso wear conference was taken place -- taking place. bloomberg's white house reporter is with us. we will try and talk over the noise. it seems these talks fell apart on the question of sanctions. saying talkstrump ended abruptly with north korean leader kim jong-un over the issue of sanctions. he said sometimes you just have to walk away. mike pompeo joined president trump, and both of them said they remain optimistic and ultimately they will get to some type of deal. the rhetoric heading into their talks was very positive, with the pres

for now, let's get a look at the markets with nejra cehic. ejra: we're seeing equity markets on the back foot, the stoxx 600 down. we are also seeing u.s. futures gathered steam. you are seeing air france away on travel and leisure stocks. rio tinto has given some boost but most stocks are in the red. 2.64 is where we are. we are seeing some of those safe haven bids. at 1.3le-based -- rate 280. eurosterling dropping to a two-year low following the prospect could get a delay to brexit. also, we're showing you some headlines on norway's wealth fund buying stocks in the fourth quarter amid a slump. see a significant loss to the portfolio, $57 billion loss on the portfolio. now it's get bloomberg first word news. >> jay powell says a healthy economy is facing quote crosscurrents and conflicting signals. the labor market still have room to pull in workers. his immersed the banking committee showed no bias to the committee hikes or cuts. >> the outlook for the u.s. economy is a positive one, a favorable one. the predominant risks to the economy are