tom keene is in new york. f inflation and growth from the bank of england and speak about the fed and rate hikes. tom: a day to get halfway back to normal. i am watching the bond market. i want to emphasize that our team has lined up three great interviews that have to do with the linkage of the volatility into the real world. the ceo of commerzbank, robert kaplan, and the guy from germany? francine: the difference between the europe and u.s.. big move on the chinese yuan. let's get to the first word news with taylor riggs. votes today on a two-year spending plan that would avert a government shutdown, the senate proposal would provide $300 million for defense and domestic spending. members of both parties get something they had wanted. mike pence says we will see when it comes to a meeting with north korea. he is in south korea for the opening ceremony of the winter olympics and says there may be a chance for an encounter with north korean officials. today lays england out how it expects the economy to perform

i am francine lacqua in london and tom keene is in new york. eillance and because there is a lack of economic data from the u.s., all eyes will be on those options. tom: we have politics as well. i would go back to what i missed yesterday, francine. you mentioned hsbc and those continued reductions from deutsche bank got my attention, maybe about what we do and how we moved during the summer months. francine: yes, this is 250 investment bankers being cut by deutsche bank. it was bloomberg's group we got yesterday and that has been picked off by the rest of the financial price this morning. the district to the bloomberg first word news with taylor riggs. taylor: in the u.k., theresa help if there tradeacklight on the deal. some believe that withholding billions of pounds from the eu could be necessary. president trump is open to tightening background checks for gun buyers. the white house says the president talked to john cornyn about his bill to improve compliance. republicans have long opposed gun-control bills, but the president has been discu

tom keene, off on a well-deserved president's day.nter cap that are going to retreat to hash out differences on brexit. it is starting to become clear what the prime in this the divorce to look like. the idea of cherry picking has come to the fore again. the prime minister made it clear to delegates she wants to stay close to the european union in some areas while breaking free in others. joining us now is bloomberg's london bureau chief. us, algebras investment chief executive. great to have you on the program. thing most significant the fact that if we do cherry pick, not call it cherry picking, angela merkel wouldn't be so against it? >> that was significant, mrs. merkel saying that it wouldn't be such a bad thing, or such an impossible thing, for britain to try to do this thing called cherry picking. really accepting that there has to be some sort of bespoke deal for britain. this is what theresa may said all along. europe saying in that is not possible. it is the single market or nothing. maybe we will know for sure at the end of

i'm francine lacqua, tom keene is in new york. up, shares are breaking away from correlation, quite a big move in yen. tom: francine, i love what you said in the opening about strategist struggle. that captures the zeitgeist. not bafflement but what is going on in the correlations of the market. it is amazing to see the vix do that round-trip from 50 down to average. francine: you're right. we will spend more time on that chart. let's get straight to the bloomberg first world news. reporter: starting in south florida, the highschooler who was arrested for a school shooting, was kicked out of school the previous year. the suspect was armed with a semiautomatic rifle and smoke grenades. he set off a fire along to draw students out of class. he was arrested a mile from the school. africa, ramaphosa will become president today and he is likely to be elected in permanent capacity on friday. who finallying zuma gave in to demands that he resign. his years in office were marred by scandal. president trump has surprised lawmakers by saying

tom keene is in new york.inking, but not on inflation. my bowtie was straight like the stock market until 2:00 yesterday. then we went of 300 to down 500 to keep the math simple. it was a tipping point today for the bond market. francine: we're talking about yields at 3%. a lot of people are saying it is not if but when. british consumers and businesses are feeling the squeeze of higher prices. the u.k. economy expanded less than previously estimated in the fourth quarter. gdp was revised downward to 4/10 of 1%. the drop in the pound following vote is driving prices pastor than -- faster than wages. senior ministers will be a ring today to force them to agree on a trade deal with the european union. the federal reserve governor says that the u.s. economy is in the best shape since the financial crisis. he spoke today in tokyo. he endorsed a gradual path for raising interest rates. president trump is promising to act quickly to prevent more school shootings. one of his solutions is letting teachers carry guns t

nejra cehic in for francine in london, i am tom keene in new york.eek. with your first news update, here's taylor riggs. taylor: according to an arrest report, a 19-year-old former student confessed to the deadly school shooting in florida. school cruz was in the for just six minutes and is accused of killing 17 people. he was ordered held without bond . about 1000 people turned out for a candlelight vigil last night where the names of the victims were red. -- read. the white house joined u.s. allies in blaming russia for a massive cyber attack last year. merck and maersk were among those hit. the attack shutdown computers for days and cost as much as $300 million. it is a sign that demand for american debt remains resilient. china increased its holdings of u.s. treasuries by the most since 2010 and now holds a little less than $1.2 trillion in u.s. debt, the largest non-american holder. regulators have killed a proposed chinese linked takeover of the chicago stock exchange. transaction would've been relatively small, and would have given 29% to a ch

i'm sending it over to tom keene. week's show, we have the former leader of the conservative party, iain duncan. "bloomberg surveillance" continues in the next hour. tom keene joins me out of new york. we will bring you that interview with john cryan. we will also talk about treasuries and jobs day. this is bloomberg. ♪ ♪ francine: treasuries tumbled. the u.s. 10 year yield hits the highest level in years. jobs figures are out today. pressure building. shares of deutsche bank suffered their biggest drop since july. we will be speaking to the ceo john cryan in a few hours. and rolling the dice. macao shares tumble. this is "bloomberg surveillance ," and i'm francine lacqua in london with tom keene in new york. tom: it is jobs day, but there is an extraordinary news day. whether it is the ballet or the tech earnings. yes, jobs day is a big deal. i like what you said about treasuries tumble, which just captures this lower price-lower yield a dynamic. we'll touch on china in a moment. francine: it is amazing that you saw

here's one for tom keene.he philadelphia eagles have won the super bowl after beating the new england patriots in minneapolis. stormgles produced a offensive game. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm nejra cehic. this is bloomberg. francine: thank you so much. it has been a good morning for markets, with equities extending their biggest selloff in two years as fears of interest rate rises grip investors. shares sank from japan to frankfurt. pointing to are lower open this morning. joining us for the latest is jordan rochester. avivawe will get to the chief executive officer later. there's nothing new and yet the market shifted. inwe had that big risk january. that was one of the best weeks in quite a while. we are seeing a reversal of that move. a lot of it has been accelerated. .t was already in motion the big question is, is that to startin wages going profitability? there's three ways to look at it. first is the profit situation of u.

. ♪ ♪ tom: i'm tom keene in new york. let me show you a chart.eveloped world. these are the five year five-year break evens. very low inflation in japan. the united kingdom. here is the united states with a little bit of a curve up. europe as well. jordan with us on that euro in between. what is that inflation factor in europe right now? jordan: it is higher. the recover we are -- recovery we are seeing is remarkable. growth expectations are off the charts. we are past the recovery phase and we are in expansion. in the u.s. and u.k., you will start seeing it in europe. the trajectory is higher, but it is slow. i think we will add tire, this of thatnal the end monetary policy of qb in june. a rate hike by the end of the year. flow is inom: if the a stronger europe, is it in the netherlands? or is it diffused out across europe? jordan: german bunds have started to go into positive territory. it is not the best yield it can get. i think you will see further normalization in europe to come. it is only when you start getting levels above u.s. that we

tom keene in london . -- i am in new york london, tom keene in new york.t they talked course thernings, of strength of the economy, and she asked about the recent market route and whether that can have an impact. know thatmportant to the market itself, the luxury market itself, is three times more dynamic than the mass market worldwide. grew byate it globally brands inviously for the market, they are a force with the tide, growing very fast . it is a more challenging environment. , thespecially in the u.s. u.s. market was pretty soft, but, you know, i have seen that throughout times in my life. it does not mean there will not be a gain in 2018. it really depends on how interesting, creative, innovative the quality of the attractare in order to consumers. the turbulenceve as we have seen on the market could potentially have an impact on the direct real economy, on negative growth? jean-paul: i am not an economist. the only thing i can say is that ofreal is great in case l'oreal hasbecause been very well-balanced. it is across all channels, croissant countri

mark: tom keene speaking with nouriel roubini from nyu school of business.ime for our latest business flash, the biggest stories in the news. after zynga says sales will -- astrazeneca says sales will rise in 2018 for the first time in four years as they released new product for diseases. they expect strong growth in china after an agreement with alibaba. merck is forecasting sorts -- sales for the full year 2% above average estimates as they reported fourth-quarter sales better than expected. they will use benefits from the tax-cut to boot grossed. -- boot grossed -- boost growth. mark: european trading, down for a fifth consecutive day, a similar picture than the one in the united states. some urge bond yields -- sovereign bond yields are rising. thets like anything versus dollar when it comes to currencies declining. the close is three minutes away. this is bloomberg. ♪ ♪ mark: from european headquarters in london, i am mark barton. here is our european stocks finished the session, every industry group on the stoxx 600 is lower with basic resources, come

tom keene is in new york. let's head over to germany. has announced its intention to sell shares in its asset management unit. the initial public offering will take place in the earliest available window. the move kicks off what is usually a four-week run-up to the ipo. it will only sell existing shares and doesn't plan to issue new ones. joining us is steven arons. he joins us from frankfurt. thank you for joining us again. when you look at the deutsche bank turnaround, how dependent is it on the ipo of this asset management unit, which you could say is the crown jewel for deutsche bank? steven: it is. interestingly enough, the turnaround is not really dependent on the ipo. ,hen they announced their plans in march last year, they were constrained by low capital, but they pulled off a capital increase last year, which has reassured investors about capital strength. the capital proceeds from the ipo of the asset management unit. it does show deutsche bank is continuing to deliver on the promises it made last year, especially against the b

i am francine lacqua in zurich with tom keene in new york.alk a lot less three, volatility and everyone is looking at the cpi numbers. i have not seen it like this for at least a couple of years. and then i look to the head of the elections. and of course, japan and the yen are hitting the stocks. tom: absolutely and combined with what we saw from the u.k. yesterday, i agree inflation from america will be closely watched. we talk a lot about international relations and the placement of the trump administration across all of the world economies, francine. tom, now let's get straight to the bloomberg first word news with taylor riggs. in israel,rting prime minister benjamin netanyahu denies he is guilty of any wrongdoing and insists he is the victim of a witchhunt. police recommended he be indicted for bribery, fraud and breach of trust. they say he traded his influence for favors. it is now up to the attorney general to decide whether to charge them. south africa is waiting for jacob zuma's next move. the congress says he needs to quit. if he

kathleen fisher with this, francine lacqua in london, tom keene here in new york.et's look at the carnage of fixed income. on the short-term basis, bring up the chart, apple and swiss francs debt down to dollars, make it three dollars. oh, it is terrible. to make three quarters of her percent yield and swiss francs. is from a peak of the summer and a half ago, this puppy is down 10%. it for corporate bonds? to a small coupon? is is a better place to be? >> the redeeming value of corporate scum that little extra spread you get over treasuries, which can be beneficial, certainly, if it is held in a much bigger portfolio. of the important component to that is being able to either utilize the long-duration or hedge it because as you point out, the price sensitivity is huge. you have a 30 year bond with three-quarter of a percent coupon? the rates go up a little bit, you are down 10%. that is not what a typical retail investor is really in it for. maybe a pension fund manager or insurance company, but that price sensitivity is exactly what the market is trying to run aw

i am tom keene in new york. here is taylor riggs.nsel robert mueller is ramping up the legal pressure against paul manafort. freshr has now filed fraud and tax charges against him. rick gates was also charged. they indicate plea negotiations would not work. -- have not worked. -- biggest package of sanctions against north korea according to reuters, which sites a senior government official. president trump is expected to talk about the sanctions in a speech today to a conservative congress. james mattis is warning against broader tariffs on steel and aluminum. he is calling for targeted tariffs and says broader action could antagonize u.s. allies. south korea, germany, and canada are among the biggest forces -- sources of imported steel. in australia, barnaby joyce has quit over a sexed scandal. joyce has been having a next her merit all fail -- extramarital affair. global news 24 hours a day, powered by more 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. francine: thank you so much. m

tom keene is in new york. we did have u.k. wage data 25 minutes ago. d up, but this is because of more jobs being filled by fewer nationals. tom: yeah, the dynamic there an dof course, inflation elevated a little bit. you are hiding the main story of the day. forget the markets. francine, are you wearing richard quinn this morning? francine: i should, shouldn't i? i went to quite a few fashion shows. i missed the one where her majesty the queen showed up. just my luck. my had never seen anything like it. twitter was alight with it. that is her majesty queen surrounded by the british fashion council. tom: congratulations to mr. quinn for that. we have been talking to vanessa freedman of the new york times, web the size milan among these different cities trying to emphasize fashion. but how do you compete with elizabeth the second at your fashion show? francine: you cannot compete. are going to have to put more spotlight on your local talent? let's get to the bloomberg first word news. area economyuro hit a speed bump on the way to faster growth. the purc

francine lacqua in london and i'm tom keene in new york.at debates with the gyrations in the fix. is it just about the short vix trade or more going on? one of the great debates on the buy side and investment management is the dynamic of everybody in the passive trade . there is passive investment and active investment. has that calculus changed the volatility of the market when we come under crisis? richard: some of the volatility we have seen in the last couple of days has been driven by some of these levered products and some of these inverse products in the etp market, but the vast majority of the volatility has been driven by short covering. if you look at the last 48 hours, we did see a big spike in etf activity and index activity. it went up roughly 20% to 30%. still by far the minority, but it did increase. one of the notable features over the last 28 hours is the orderly nature of the kleins. this is exactly what they were meant to do. you have seen the use of index products increase, but that has not caused the volatility. it allo

tom keene joins me from new york. and we will hear from andy halford at 10:30 a.m.omberg. ♪ francine: markets are next ahead of the fed chair's testimony in washington and treasuries grew 3%. pounds perers 12.50 share, sending shares surging to near two decade highs. and gaining traction. a two year suspension, we speak with the group's financial officer, andy halbert, this hour. this is bloomberg surveillance. and we are getting economic confidence out of the euro area. that is pretty much in line with estimates. tom: extraordinary news flow this morning. we have packed surveillance for the next five hours. in all of 2018, this is the busiest newsday i have seen so far. francine: i am looking forward to talking about comcast with you, now sitting the states for this sky takeover fight with some 31 billion pounds. it is so valuable that a lot of eeinge are sa counterbids. tom: we have a lot of coverage. for me it is fox, disney, comcast -- they all want sky for me, the real question for the global audience, is s ky considered a national asset in the united kingdom.

tom keene joins me.e talking with larry summers and what we heard from jay powell and will be looking at the markets. sending --ks aren't are extending their loss. this is bloomberg. ♪ francine: the new fed chairman opens a new door to raising rates four times this year and global stocks dip. we will hear from larry summers on the new era at the fed. he's live from abu dhabi. theresa may is said to reject the draft of the brexit deal. there are just three weeks left to agree on the transition phase, and she is facing increasing pressure from rebels in her own party. tom, the team has battled the snow to get into work today. a lot of focus is on the weather, but actually, focus is on markets overall because of what jay powell said, and we are looking at moves as well. tom: we see the two year coming up as well. do you want to build a snowman? were you up singing all last night with the cherubs? francine: i was of all morning singing. when i woke up at 4:00 a.m. this morning, it was covered in snow. for ce

tom keene has the morning off.pay for his proposed transportation tunnels. he recently sold 20,000 flamethrowers. tesla has millions of dollars of bonds. is the company's inaugural after charming buyers in the convertible bond. joining us now to discuss all this is bloomberg's bonds reporter. meanthis success actually tesla's funding problems are behind them? >> not necessarily. the company will burn through its $4.2 billion of cash this year alone as it tries to ramp up production for the mass-market model threes. deal likely a single bond will not get rid of those issues. the demand for these bonds was amazing. 14 times oversubscribed. the demands for the bond was 14 times bigger than the supply. opportunity is an to sell a lot more. francine: is tesla the darling of the bond market? >> tesla has with a big cash flow problems it does not make it seem like a darling for bond investors and it has had. last year it sold junk bonds in august that of traded below the issue price and even till this day are still below.

today, tune into our colleagues tom keene and jon ferro from 7:00 to 9:00, and pimm fox joins tom from 10:00. it could be heard all across united states on sirius xm radio. live from new york, this is bloomberg. ♪ ♪ taylor: this is bloomberg daybreak. coming up at 9:00 on bloomberg, the open. jim paulsen. now to your bloomberg business flash. in france, a 10 year extension of the ceo has been for another four years, focusing on the automaker's partnership with nissan. meanwhile, renault he remains the second-in-command to take over. a record year for natural disaster claims is not keeping the company from raising dividends. europe's biggest insurable stick to their buyback plan. with one ofcontend the worst atlantic hurricane seasons in history. plus, california wildfires in the fourth quarter. the rush to see the disney marvel "black panther" is underway, expecting to take in a quarter billion dollars wide in the first weekend. it is likely to question long-held hollywood belief that movies with an entirely almost black cast cannot become global blockbusters. that is your bloomberg bu

tom keene and jonathan ferro are on every morning. pimm fox joins tom.n new york, boston, the bay area, all across the united states on serious satellite radio. live from new york, this is bloomberg. ♪ >> we are here in the enterprise green room. member of the senate budget committee. now, to your business flash. they will launch a proxy fight to replace the board. according to people familiar with the matter, they will replace the ceo. rubbermaid, crockpot, mr. coffey are some of the brands. the company that could disrupt hollywood is feeling the pressure. itspasses been warned long-term viability is in question. it has more than 2 million subscribers. the more members it adds, the faster it burns cash. china has waited 25 years. now the biggest oil buyer is getting its own contract. china will start lifting local currency in shanghai. that's a challenge to the dollar denomination. that is your number business flash. david: we have breaking news great the present has just signed that historic budget deal that was passed overnight by the congress. that m

you can tune in to our colleagues, tom keene.nce on the radio, you can hear them in new dc, livewashington from new york, this is bloomberg. ♪ >> coming up, head of global macro and asset allocation. ♪ if out and of youth, what men have sought since early on. now a group of leaders in tech and health care are seeking to find it or a modern-day version. cutting-edge biotechnology. leading this is a serial entrepreneur, including chairman and ceo and we welcome him to bloomberg. welcome. take us through this announcement. it is very exciting. a new biotech approach. >> to be clear, it is led by an amazing man. steve jobs of the biotech industry. bob and his team have been into bidding a technology in a biotech form a giant and bob found out early, 20 years ago, that the placenta is the richest source of stem cells. i think of it as a 3-d printer that manufactures your baby. for all of human history, we have discarded the placenta. he realized out of the placenta calm these stem cells and neurological cells. he has learned how to us

intou can you today, tune tom keene and jonathan ferro. they join the conversation at 9:00.be heard in new york, boston, and washington, this is bloomberg. ♪ ♪ >> this is "bloomberg daybreak" here in the hewlett-packard enterprise greenroom. coming up the cio. ♪ market,action in the the upside sell bond, the dollar. global us, eric stein, income portfolio manager, are you selling? guest: i am on with you so not right now. in the global macro strategy we take a long-term approach of the long and short around the world. we look at reports like this one but we are not daytraders. -- alix: the trend, sustained? slightly higher inflation environment, this was hyped up, what your previous guest, nathan sheets said is true. we are in for a slightly higher period of inflation. time,reakevens for some short duration strategic income for higher interest rates, we are in for an environment of more volatility in markets but also higher rates and inflation. david: the dollar is rallying on this info, what does it do to your view on the dollar going forward? have a long and short approach

you can tune into tom keene and jon ferro on the radio from 7:00 to 9:00.d all across the united states on sirius xm radio. this is bloomberg. ♪ ♪ kailey: this is "bloomberg daybreak." i am kailey leinz in the hewlett-packard enterprise green room. coming up, jim messina, former deputy white house chief of staff. now tear bloomberg business flash. -- now to your bloomberg business flash. -- million dollar bet against simmons. bridgwater disclosed the decision against the largest engineering company in a filing. simmons hasn't commented. it shares are down 6% this year. a private equity firm in a dutch forion fund -- making a bid -- would be a fund pggm minority: investor alongside apollo global management. the unit could be valued at more than $12 billion. disney has increased ticket prices at its theme parks. the world's largest entertainment company also said it would introduce 6-day to getting -- ticketing. that is your bloomberg business flash. david: if you are in the market to invest in companies, what does turmoil in equity markets mean for you and w

join tom keene and jonathan ferro on bloomberg radio.an hear them all across the united states on sirius xm radio. live from new york, this is bloomberg. ♪ kailey: this is bloomberg daybreak. coming up in the next hour, subadra rajappa, head of u.s. rate strategy at societe generale. now to your bloomberg business flash. spacex is set to launch another rocket today. the falcon nine will carry the spanish satellite that can generate high-resolution images of the earth, even if the area is covered by clouds. it will also employ two experimental satellites that will provide global internet access. when it comes to buying stocks, it is america's second for barclays. replaced america. in germany, the ceo of georgia force says the exchange has its sights set on a quarter of the cleared market next year. he has a strategy of learning business away from london. >> i believe the markets are oblique. we can live with different euro clearance. we can deal with different approaches here. frankly, the markets will sort this out finally. kailey: that

mark: alan greenspan speaking to bloomberg's tom keene at scarlet fu.of the charts where we look at the most telling charts of the day and what they mean for investors. the feature at the bottom of the screen, and kicking things off is christine. >> i am looking at goldman sachs because of its staggering forecast -- in six months moving to $80 per barrel. that is a 50% gain from current levels and the reason they cite a stronger demand reflected stronger growth in emerging economies. out,r oil reporter points that is not a bullish call on the oil market, it is also a bullish call on the global economy. my chart shows exactly the same. --looking at the positions and you notice the white line here towards the end of last year, that has picked up considerably. it is near record levels right now. at the same time, the expectations of growth in emerging markets has picked up. together they have risen the relationship between these 2 -- you can see a correlation chart is that the strongest level in the over two years. if we see goldman's prediction picks upro

spoke to bloombergs tom keene earlier today. >> it is the biggest bubble in history, to compare it tossippi bubble are the tax bubble. >> you are comparing bitcoin to tulips? >> much worse. it crashed by 60% compared to the peak of mid-december, it crashed 30% last week, and 10 today. the value of bitcoin is zero. >> crypto folks on twitter, it is a bloomberg summation of this culture and event, the question is crypto people say they can separate the crypto industry, blockchain, all the rest of it -- from the value of bitcoin. can you separate crypto from the price decay of bitcoin? >> know, first of all there are something like 1300 plus cryptocurrencies fields -- some are worse and have no intrinsic value like bitcoin. the coin is a bubble. there is a blockchain saying that could the revolutionary industry, but they have been around for 10 years and their only application is bitcoin or cryptocurrencies is a scam. have lots of other things -- you have applications with hundreds of millions using them, but after 10 years, what else can they offer? nothing. cryptocurrencies are a scam.

tune into tom keene and jonathan ferro and pimm fox from 9:00 to 10:00 to you can hear it in new yorkwashington, d.c., across the united states on sirius xm radio. live from new york, this is bloomberg. ♪ ♪ kailey: this is bloomberg daybreak. coming up in the next hour, brian belski. now to your bloomberg is this flash. it is the latest step in the remaking of the u.s. retail and health care industry. albertsons will buy right aid. 24y have a combined value of billion dollars. robertson shareholders will own 71% of the combined company. rite aid is still selling about 2000 stores to the alliance. call come has raised its bid for semiconductors to get support from shareholders. the offer is valued at $43 billion for qualcomm is fighting off a takeover attempt and has rejected a $121 billion offer from broadcom. home depot is cashing in on store salesith same rising more than expected in the fourth quarter and they were helped by hurricane recovery spending in the south in puerto rico. that is your bloomberg business flash. david: we now turn to wall street beat, were recovered three th

david: as you commute in today, you can listen to jonathan ferro and tom keene this morning.from new york, this is bloomberg. ♪ in the next hour, david rubenstein, carlyle group cochairman and cofounder. alix: covering three things wall street is looking at this morning. first up, joining that there and back club. dena powell makes the trip from goldman to d.c. to goldman. then boston billionaires soaring profits, putting billions more into the pockets of the johnson family. and finally, the $1300 phone call. investors thinking outside of the box with their pockets. joining us now is jason kelly. gina powell, we all know her. she had a prominent position at goldman before, went to the trump administration, and not coming back in a different edition. jason: this is not wholly unexpected. the reason there is a joke about the revolving door in government is because it's true. thats interesting here is dean of powell went down to do a pretty important job, seemingly advising the ivanka trump because she is close to the vodka and jerod. david: i think that is how she got into it.

she will be joined by tom keene a little later for the second two hours.with manus cranny for the next hour, live on london dab digital radio. this is bloomberg. ♪ ♪ ♪ show me the olympic winter games ♪ ♪ like i've never seen before. ♪ ♪ xfinity x1, yeah, i always know the scor♪. ♪ triple corks in 4k... lookin' so sick. ♪ ♪ stream live on every screen, every win, every trick. ♪ ♪ 2000 hours of coverage, get your mind blown. ♪ 50 olympic channels, yup, you're in the zone. ♪ ♪ and if there's something that you want to see, ♪ pick up that voice remote and just say "show me..." ♪ experience nbcuniversal's coverage of the olympic winter games like never before with xfinity. proud partner of team usa. digging deep. glencore says it will pay out almost $2 billion in dividends after the trading division posted the highest profit in decades. and our house, our rules. more than 60 of theresa may's own lawmakers send a message to the prime minister, pledging their support in return for a hard brexit. ♪ good morning, everyone and welcome

. ♪ tom: francine lacqua in london and i'm tim tom keene in new york.ee the opening in america and it is rocky. let me show you the intraday vix chart. i'm trouble with these levels this early in the morning. nevertheless here's the meltdown yesterday. to 40 and then all the way out to 43.97. i-44 print on the vix and moments. -- a 44 print on the vix in moments. let's get to our first word news with taylor riggs. taylor: vice president mike pence is not ruling out talks with north korean officials while he attends neolithic games in south korea. he told reporters that he would see what happens. he says that north korea must give up its nuclear weapon and ballistic missiles program. house republicans have introduced a tempe temporary spending measure that would keep the government funded through march 23. that would set up a confrontation with the senate where the plants probably would not have enough votes to pass. country's most powerful labor union has reached a landmark deal with employment. they give options to temporarily reduce working hours. the

she will be rejoined by tom keene. i am going to be going over to bloomberg radio.- anna edwards and i. this is bloomberg. ♪ ♪ the market prepares for a flood of bond auctions as treasuries reopened. the u.k. government is reportedly preparing to withhold billions in payments if the eu is not play ball on a trade. ceo.utgoing hsbc can his successor regain momentum? ♪ francine: good morning, everyone and welcome to "bloomberg surveillance."

"surveillance" with francine lacqua for the first hour, joined by tom keene in the second and third hoursecause matt is talking to he willautenschlaeger, not be on the team, but anna edwards will be joining me on the radio team and we will carry on about what is happening in these markets. this is bloomberg. ♪ francine: selloff takes a breath. the market moves both ways. we look at the eight dollar is there life on mars? there could be soon? ♪ good morning. this is "bloomberg surveillance. i'm francine lacqua in london. right now the stoxx 600 gaining.

then pimm fox will join tom keene from 9:00 to 10:00. that is on sirius xm radio.♪ i am taylor riggs in the hewlett-packard enterprise greenroom. the former chairman of the american conservative union. ♪ annualwarren buffett's letter is coming out tomorrow. some things you might address include succession, a windfall, and underlying challenges to the insurance operations, and a new health care venture with j.p. morgan and amazon. for more we welcome tom russo. he is a close buffet follower and a top work sure investor. thank you for being -- a top brookshire investor. having read, there is a lot that is the same. what are you looking at that will be different? move along the continuum is different. first it is more about charlie munger than warren buffett. it shows how the firm is preparing for succession. they will be entrusted with the thatimportant feature warren has deliver to berkshire, the design of compensation packages. hire has done a remarkable job of creating incentive packages. i understand that is not the primary responsibility for each of their divisi

tom keene in jon ferro -- and jon ferro.rd allradio can be across united states on sirius xm radio. this is bloomberg. ♪ taylor: this is "bloomberg daybreak." hewlett packet enterprise greenroom -- merrill lynch global head of commodities. ♪ now to your bloomberg business flash. qualcomm shareholders let broadcom by their company for cheaper price than they would like. a shareholder vote will help design the fate of the bed. one fund manager said investors are not happy with the price but they are ready to throw the towel in. china, -- over food delivery. according to persons familiar, alibaba has agreed to buy the .hares of the startup the e-commerce giant already had a 20% stake in the company. valued up to $6 billion last year. black panther keeps packing them in. the disney marvel superhero movie has become the only the fourth film to earn $100 million or more in its second weekend in theaters in north america. worldwide, like cap has taken in more than $700 million. that is your bloomberg business flash. david: we are g

you can tune in to tom keene from 7:00 to 9:00 in new york and pimm fox joins them from 9:00 to 10:00they can be heard across the u.s. on sirius xm. this is bloomberg. ♪ ♪ alix: this is bloomberg daybreak. kailey: i am kailey leinz in the hewlett packer enterprise greener. coming up, chuck stevens, general motors cfo. david: return to wall street, where we cover three things, first, show me the volume. volatility should back up in the market, so who benefits from it? number two, a gunshot apple . with all that cash to be repatriated, where does they were not by bonds they were holding. and three, is it time to roll now? are the bargains out there this morning? kellyjoining us is jason from bloomberg. jason: good morning. alix: volatility front and center, a chart showing volatility for fx, treasuries, and equities, all picking up, but that white bar is the big street what our investment banks thinking today? jason: i looked at fourth-quarter earnings, specifically the sick numbers, which he spent time talking about, and goldman sachs is down 50%, versus the same quarter in 2016. deuts

as you commute in today, tune into tom keene and jonathan ferro on the radio.hear them in new boston, the bay area, all across the country. live from new york, this is bloomberg. ♪ >> this is bloomberg daybreak. up in the next hour, an exclusive interview with ilmars rimsevics, the latvian central bank governor. david: we are going to turn to wall street. three things that wall street is buzzing about this morning. bank of america looks to be staying in london, renewing its lease in the city. says hishorn greenlight capital has turned in its worst performance ever, despite all about volatility. and hits keep on coming for general electric. willys profits this year be toward the bottom of its reduced forecast. alix: that is the best headline ever. joining us now is an executive editor from bloomberg. bank of america saying they will still be in london. is that a vote of confidence in brexit or on a diversified were they are located? these are the big debates that are happening at all of the big banks. bank of america, is leaked out that they were considering som

alix: we want to head over to ferro,tom keene and jon interviewing bill gross on the better than estimatedme all of you worldwide, coast-to-coast, across all of america. and on bloomberg television. william gross of janet sanderson joins us now. bill, we finally see good wage growth. article he, we see a revision -- critically, we see a revision upward as well. will that be the break at condition that gets us to the 3% yield you have talked about as a critical point for the 10 year? bill: i think it is, tom. toyou factor in 2.9% year-over-year wage growth, and , which isin a 1% in probably normal to expect, going forward, you have 2% year-end labor costs and hopefully 2% inflation does not even factor into that area weak dollar over the past 12 months -- so yes, i think it basically means we are approaching that magical two at which the fed will continue -- let's put it this way -- will continue to raise rates. tom: well said. we know and you know we were to accommodative with vice chairman fisher. we have moved up, but we cannot get an inflation target, inflation-reduced fed fund targets

you can tune into our colleagues jonathan ferro and tom keene on the radio.them at 10:00. -- joins them at 10:00. live from new york, this is bloomberg. ♪ kailey: this is bloomberg daybreak. coming up later today on bloomberg markets, kevin hassett, chairman of the white house council of economic advisers. now to your bloomberg business flash. at&t says it is exploring a possible ipo of its minority interest in directv's latin american unit. the company filed a registration statement but there is no assurance at&t will tech -- take the state public. is signaling that they will be increasing on investing in startups such as uber. plans for ailed telecom operation in japan that would separate soft take into investing and telecommunication units. carlyle group posted fourth-quarter profits that beats estimates. the firm's holdings gained. well on ended the year its way toward a for him in your of raising $100 billion. that is your bloomberg business flash. david: friday's jobs numbers show the strongest wage growth we have had since the recession with the januar

and as you commute today, tune in to tom keene and jon ferro on radio and pimm fox joins at 9:00 a.m.be heard all across the u.s. on sirius xm. ♪ ♪ alix: this is bloomberg daybreak. taylor: i am taylor riggs. coming up, herman cain, former bank of england governor -- mervyn king, former bank of england governor. now to your bloomberg business flash. high-tech trial six years in the making in san francisco. opening statements are made in economy and hewlett-packard. prosecutors say economy could a value to write down of a $.8 billion a year after buying the british company. defense lawyers say the cfo is a scapegoat. consolidation in the semiconductor business. microchip technology is in advanced talks to buy microsoft a, a market value of $7.6 billion. more than one year ago, hasbro predicted that the movie black panther would be a monster hit. it did that by asking kids what they got in the results have brought in more toys for black panther than any other marvel character in a first full-length movie. the company said demand has led it to ramp up production. that issue bloomberg bus

. >> lonnie, i'm going to talk to toe tom perez. how keen to close that chapter, would you like to move on? as you talk to voters and look what the policy platform is going to be in 2018, where does secrecy in the fisa courts factor in? >> well, look, i think both of those documents were fundamentally political documents and once we begin to see them for what they are, we can hopefully move on in this debate. i think the original republican memo exposed concerns regarding the fisa process. the democratic memo had responses to that, but more broadly you ask a great question, which is are voters going to care about policy agendas going into the fall? i certainly hope they -- i think the challenge for democrats going into november is it's not clear they have an ynd agenda a all. i'd be curious, because it seems to me that democrats thus far at least have been campaigning as the anti-trump party, which perhaps is a fine posture in some states, but more broadly i think the lack of an agenda is going to hurt them. yes, i think the policy issues ma

tom wolf will be getting a host of foods from massachusetts. directors from the zoos will have to keen out the stalls wearing eagles jersey. >> we'll take it all. there's the picture, you'll see it at the museum of art. the eagles win means free coffee at dunkin' donuts. if you're a perks member you can get free coffee when you pay with an enrolled dunkin' donuts car. lane johnson told fans back in july, i'm giving out beer to everybody if eagles win super bowl 52 in minneapolis, last night, bud light tweeted eagles of philadelphia emerged victorious join us with lane johnson an your 21 and old are friends at taverns along the parade rout to -- route, to raise one of the kingdom's light lagers. >> stay with "action news" 'we cover the super bowl victory.

right ok and tom the last word to you i mean you were. you were you were quite keen to for us to break down if you like the the language that we using fake news fake news incidentally was apparently one of the most. popular terms used the twenty seventeen. but the fact is journalists have long been incorporated into campaigns of propaganda or some might call it fake news it's down to the journalists then is it to to impose upon themselves a certain level of of ethics to which they should subscribe and live every day ideally yes we want journalists to be taking upon their responsibility to act ethically within their own value system but also subscribe to cause of ethics whereby they can be held accountable i want to see the same done by media organizations themselves and so the public can actually have a recourse and complain and ask for corrections if if mistakes are made absolutely but we also need to have you know facebook and and others taking their responsibilities much more seriously in terms of how their platforms operate and their transparency about what they

aged 30, keen to buy, but shut out of the market. this is my room. tomton is money down the drain, but the house prices are beyond him. it's absolutely mission impossible at the moment. there's not a chance of getting a deposit. it's such a cost and with utility bills and the cost of trains going to london, with my rent prices, it is unachievable and by friends are all around the same age and none of us are on the property ladder yet. the institute for fiscal studies looked at young people like tom aged 25— 3a on middle incomes up to £30,000 a yearfor a tom aged 25— 3a on middle incomes up to £30,000 a year for a household after tax. although most of them we re after tax. although most of them were couples with children. the number of young owners has dropped across britain, down to 44% in the north—east and cumbria, the smallest move, from 61% to 36% in east midlands. in london from 47% to just 20%. there's been a collapse in the homeownership rates of young adults across the country and its being concentrated on middle income families. if this continue

aged 30, keen to buy, but shut out of the market. this is my room. tomnting in brighton is money down the drain, but the house prices are beyond him. it's absolutely mission impossible at the moment. there's not a chance of getting a deposit. it's such a cost and with utility bills and the cost of trains going to london, with my rent prices, it's unachievable. my friends are all around the same age and none of us are on the property ladder yet. the institute for fiscal studies looked at young people like tom aged 25—34 on middle incomes up to around £30,000 a year for a household after tax, although most of them were couples with children. the number of young owners has dropped across britain, down to 44% in the north—east and cumbria, the smallest move, from 61% to 36% in east midlands. in london from 47% to just 20%. there's been a collapse in the homeownership rates of young adults across the country and its being concentrated on middle income families. if this continues into their later life they are going to be paying rent forfar longer, potentially

aged 30, keen to buy, but shut out of the market. so this is my room. tomre in brighton is money down the drain. but the house prices beyond him. it's completely out of reach. there is not a chance i will be able to get the deposit. it's such a cost and with utility bills, with the cost of trains going to london, with my rent prices, it is just unachievable. and my friends, they are all around the same age and none of us are on the property ladder yet. the institute for fiscal studies looked at young people aged 25 to sa on middle—incomes, at the moment, between 22,000 and 30,000 for a household after tax — in most cases, couples with children. two decades ago, 65% of those on middle incomes owned their own homes. that's dropped to just 27%. most of the rest are forced to rent. the huge increase in house prices is the reason why it has become so difficult. 20 years ago, a young family would need four times their income in order to buy. now, it's more like eight times, so, for increasing numbers, buying a home isjust a nonstarter. the government's help to bu

aged 30, keen to buy, but shut out of the market. so this is my room. tomey down the drain. but the house prices are beyond him. it's mission impossible at the moment, there's not a chance of being able to get the deposit. it's such a cost and with utility bills, with the cost of trains going to london, with my rent prices, it's just unachievable. and my friends, they are all around the same age, and none of us are on the property ladder yet. the institute for fiscal studies looked at young people like tom, aged 25—34, on middle incomes of around £22 to £30,000 a year fratricide after tax although most of them were couples with children, over two decades the number of young owners has dropped across britain from 5a to 44% in the north—east and cumbria, the smallest move, from 66% in east midlands, in london from 47 to just 20%. there's been a collapse in the home ownership rates of young adults across the country and it has been concentrated on middle income families. if this continues into their later life, they're going to be paying rent forfar longer, po