ralph hamers will be taking over at ubs.ot of questions about how the strategy will look going forward and how different it might look with leadership at the bank from an outsider, but also one that comes more from a retail banking arm and digital transformation. hamers has shown the ability to boost revenues. a 20% drop for the stoxx 600 bank index and 30% decline for ubs. in terms of what might have job, hehamers into the could get a pay raise. ing paid him about 2 million euros annually in recent years, including salary and a relatively small variable award. sergio ermotti received roughly $14 million for 2018. income comes in a little bit weaker than the estimates. end of euro 43 per share up 7%. but we are seeing is the solvency to ratio is up five points. the full-year net income is the right headline. full-year gross revenue at 103.5 billion euros es. we will speak to the ceo of ax./ don't miss that conversation. let's get to the broader markets. after we saw a record for u.s. stocks yesterday, we see a bit of a pullb

anna: ubs is searching for his next ceo. say the bank is searching internal and external candidates after being told about plans to step down. intar higher who joined october may not be among the front runners to take the top role, given his relatively brief tenure. markets and ib income jumped more than 50% in the fourth quarter of a helping revenue beats estimates. the bank reported record inflows at its asset management unit. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. let's talk about what is going on in thos eurozone economy. it fell after concerns around the economic growth. rate speculation of possible monetary easing. the next indication of the health of the eurozone will be gdp data from germany at 7:00 a.m. london time. they are expected to have grown 0.1% in the quarter, but some see a contraction, two straight contractions. a technical recession would be a further blow to the eurozone after wednesday showed the bi

. >> ubs chooses a new leader. >> now it is time for the next chapter for ubs. that chapter will be written by -- >> morgan stanley makes a bold move. >> i like real businesses real , clients, real revenues, real profits, they have got all of it. >> the imf predicts growth will rebound in 2020, but the director issues caution. >> it is shrinking. ecb's bill blaine as -- has his insight on challenges ahead. >> the sector has faced a lot of challenges, but overall domestic demand is significant and continues to be. >> it is all straight ahead on "bloomberg best." abigail: hello and welcome. i'm abigail doolittle. this is "bloomberg best," your weekly review of analysis and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. the human cost of the coronavirus continued mounting as the week began, with reported cases nearing 75,000. and as expected more and more , companies are cutting revenue forecasts in light of the outbreak. on monday the warning came from apple. ♪ >> apple is the latest company to issue

weigh in what does this mean for ubs?er: i think it is a choice that is rather surprising for ubs. over the past few years, they have tried to get the banking in order and they've played a key role in doing that appointing another retail bank where they have cut on commercial and retail banking, focusing more on the bread and butter retail and commercial banking, in retail in particular expanding outside in that line of business to capture more market share outside of that it is very interesting and i think probably the ing board of directors are kicking themselves with sort of a paid dispute back on the board where he was being underpaid due to other years that were not able to meet that, to that degree looking around to see what else was out there. >> as i understand, at ing, investing heavily in digital and bringing the bank forward into modern space do you think this is an indication of the kind of strategy and will that be welcomed by the community? >> ubs is previously under the previous regime of retail banking wea

nobody expected that news from ubs to come this quickly.ergio monte was on his way out, that was expected. we did not expect the news to come quite so quickly. ubs tracking up by .9%. what a fascinating day. that is european close. vonnie: we are getting a little bit of a selloff. otherwise, it is a factor of these deals and also poor earnings today, including with viacom. .9%,ve the s&p 500 down that is not even the worst performer of the three major indices. the 10 year yield .51. clearly treasury buying. at 1.51.r yield clearly treasury buying. crude oil was higher. it did rally but it rally even further after inventory showed less bills than the market anticipating. surfacet underneath the . the s&p is now down one point 2%. a huge move in the last few minutes. -- 1.2%. we will figure out what just went on. currency markets as well. , the story iseing e*trade financial getting bought and sending that stock soaring. also the miners are having a much better day today. , alsom prices higher other prices higher after a selloff. petroleum on

he just started at ubs.to prove that he can do the same things as what he did at credit suisse. i think he is still a potential successor for sergio ermotti but there are other internal candidates and ubs is looking externally. it is an asset gathering model. insurance companies do that as well. they manage assets. they have a wide range of possible candidates. they could approach someone from an asset manager or another wealth manager. is a widea -- there range of possible candidates. we need to see -- they are working on this now both internally and externally. thank you so much for joining us. always great to have you on. our intrepid european financial services reporter all over this story. rbs on to another bank in reporting fourth-quarter operating profits that beat estimates. the u.k. lender saying it will change its name to reflect alignment with a brand that delivers a majority of its business. ticeng us now is jonathan to talk more about this. reportld you rate rbs' compared to a lot of other europ

sergio looks like he is on his way out at ubs. ubs has begun a search for its ceo.ndications are the new cohead of wealth -- who has just joined from credit suisse -- is not one of the front winners. we will have more on this in a moment. this is bloomberg. ♪ guy: 30 seconds until the end of regular trading in europe. a negative day across europe but we have been firming for most of the day. the london market is down more than most. we will talk about the reasons why in just a moment. the stoxx 600 is looking like this. we are climbing back. we did not get back to flat but we are not far away. i want to talk about this story. this is the pound. we have seen a little bit of turbulence and we are getting more broking -- more breaking news over last couple minutes. there has been a briefing from the prime minister spokesperson saying the date of the 11th -- march 11 budget is by no means set in stone. he would not confirm that date. he would also not confirm when questioned the government will stick to the fiscal rules. this would add further fuel to the fire that has

ubs is at 2.5 trillion dollars.lso interesting because where does that leave the discount brokers? we have seen the schwab deal already. their assets pushed to a record for trillion dollars. there push for zero fees -- a trillion. push for zero fees paid off, but how do you make money with zero fees? we see james gorman, a former consultant, come out as a rainmaker. alix: why do investors not seem to like the deal? sonali: the shares are down a little bit, and that is because i think they may be worried about what this means for any potential buybacks, capital return in the shorter-term. this is a very big deal. is there regulatory overhang, integration questions? be?costly will that in the short-term, that might be tougher for shareholders. on the other hand, what does this mean for rival banks? what does it mean for goldman sachs, also trying to expand their wealth management business? now we have a different firm than what we knew about morgan stanley before. alix: so what do the other banks do? sonali: out of th

ubs saying they prefer these em stocks. to do with the fact that they think china did a relatively good job in containment, but they are also saying the recent declines in the msci asia-pacific means they have nice entry points. in europe, they are unsure yet what it means for the economic impact on europe and they say it could be material risk for the first half. that is why they are thinking that em is likely better than europe, especially if europe was to do these very aggressive containment measures similar to china. that could mean a big hit on growth. what they do like though is the stay-at-home stocks. thisg, commerce, i think makes a lot of sense, any of these food delivery companies. you have to stay at home, you are going to be ordering a lot of take out. anna e.: we certainly heard that from our colleagues over in hong kong. thank you very much. a morning call related to coronavirus. we also bought you -- brought you the mining sector and beyond. that cranny brought us story earlier in. we heard from airline comp

the very latest from ubs.oposition to credit suisse, nannette hechler-fayd'herbe is with nejra and myself. as far as ubs's proposition, explain to their and i how you differentiate em, your current status on em. nanette: emerging markets for us is not one aggregate that is having the same story, it is a compilation of very different stories. for example, there are countries that are oil importers. take india is a good example. these will be benefiting from a period when oil prices are low. in contrast, those that are oil exporters will obviously be hit. the same goes on a number of different areas. group, not a homogeneous is the key message from us. we like a number of countries very much and take exposure to them. for example, in latin america, we think at the moment that there is good value. in emerging markets, there is always this valuation advantage we are very attentive to. on the other side, in asia, because it has been the center of the outbreak, at least initially, we have taken a bit of a more neutr

armin peter, ubs global head of debt syndicate.is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on ."loomberg markets it is time for a look at some of the biggest business stories in the news right now. google may be on the verge of a major change in its relationship with news organizations. according to dow jones, google is negotiating about paying for content that would be used in a premium news product. dividendas slashed its and posted its first net loss in a decade. french automaker sales declined, plus income from its japanese partner nissan plunged. renault's full year operating in palm -- operating income dropped at a worse rate than expected at 30%. that is your bloomberg business flash. guy: as we come into the close, the ftse 100 for most of the afternoon has gone down. the dax envy -- the dax and the cac were in positive territory, but we are now beginning to fade. ftse down, cac down by 0.3%. the european close is coming up very shortly. we will ru

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barb: yeah, there are, so we're working on an ube latte. whole foods has asked us to work on a matcha-green-tea latte. lemonis: who comes up with all the flavors you've come up with? barb: kurt does. so my very best friend, our family friend who's like a brother to me, and i call him my business partner, developed the coffee. lemonis: do you own 100% of the equity? barb: i own 100%, yes. lemonis: but you treat him like a partner? barb: of course, yeah. lemonis: but the paperwork -- barb: does not say that. lemonis: like, if you got hit by a bus, nobody would know other than you and him. barb: that's right. lemonis: okay. barb: this is kurt. lemonis: how are you doing, my friend? nice to meet you. kurt: nice to meet you. lemonis: how did you guys meet? kurt: got the entrepreneurial itch, and i opened my gym with her husband 16-ish years ago. barb: 16 years ago. kurt: so she came in every day and helped me for nothing. barb: the gym eventually closed down, but... lemonis: the gym lose a lot? kurt: total, probably half a million. lemonis: all

stephanie link, jon najarian, shannon saccocia, benn brent venn gel audio rob seechen of ubs dan greenhouse is back he's chief economist and strategist at solis management steve leishman alongside us helping us make sense of everything going on what the fed is thinking about all of this. the worst week for stocks since the financial crisis the vix surging, bond yields falling the even new lows. stephanie link, a minute ago the nasdaq was positive. it went from positive to down 1.5% in about ten minutes, if that. >> i know. >> what does that tell you about sort of where we are is that how a bottoming process happens? doong we are close >> i hope so i think people are very confused obviously. right? it is not surprising that the market went down because of this, because the virus has gotten so expanded the surprise has been the speed

we are joined now by mark haefele, ubs both management global chief investment officer -- ubs wealth management global chief investment officer. he joins us now. is it a market story? how do you think it will be factored in over the coming quarter? it is a market story based on fear causing a wider reaction in the economy. like everyone else, we are focused on what is the direct impact and how long it is going to last. i think in our analysis, while the number of cases has been rising, the death rate remains someively low, and despite cases breaking out in singapore, certainly a developed market, this remains contained, and therefore, we think it is more of a v-shaped reaction that some have talked about. guy: if this is a market risk story, why is the s&p up 2.5% over the last five days? why is the cac 40 up and the dax up even more? , it is think that there worth taking a little longer at the macro environment and some of the things we've seen since the beginning of the year. i think some of the forces that we saw last year are carrying through. when i talk to clients around the gl

so khan starts at ubs. the spy scandal erupts thiam is vindicated. after an investigation, they say he did not know or authorize the investigation. it didn't wash with everybody and the scandal continued. the question is, did he know what happened? is he being sacked because of the underperformance of the share price. the way it is being presented is that he left with the board's approval there is more to come out around this story next thursday, we get full year results and fourth quarter numbers. perhaps, they are concerned that actually his aggressive program of restructuring hasn't delivered the return of equity targeted at 14% he has promised. we'll wait and watch >> it is interesting that the stock is down even further under him, it lost about half its value. it appears investors were super thrilled with the job he had been doing >> absolutely. they will argue that the bank has a clearer objective. it is focused on the wealth management division and domestic swiss banking operation. there is clarity i

ubs begins its search for a successor for the chief executive. this west bank is said to be considering internal and store i external candidates. ♪ : welcome to bloomberg surveillance. sift through some contracting data, trying to figure out the impact of the coronavirus. the stoxx 600 for to much flat. u.s. 10 year yield kind of holding steady and we look at europe as we are having quite a lot of data today. germany not as bad as it could have been but we are expecting gdp for the eurozone as a whole. coming up, we speak with the cleveland fed president. that is an exclusive interview at 5:30 p.m. u.k. time. that's get to the first word news in new york city. >viviana: we begin with a chinese province of the epicenter of the coronavirus outbreak. it has reported almost 5000 more cases. confirming the nearly 15,000 reported yesterday which appears to be a one-off situation due to a new method of counting infections. china's revisions to the data is making it more difficult to gauge the true scope of the outbreak. the death toll was lowered by mor

the severity and duration of the coronavirus outbreak may be unknown, but ubs strategies are confidente industry will be back up and running by the second quarter. >> the overriding message from ubs is simply don't count out base metal miners yet. that's because they say china will come back on the map in the second quarter and when it does it will be a sharp rebound. by then they said that thinking is that the coronavirus will have mostly washed out and with the chinese stimulus there will be a big boost to industry. and the biggest in a fishery will be base metals like copper and iron oh -- iron or. bhp and rio tinto over some of the pure play companies like fortescue. nejra: dani burger, thank you so much. jub is still with us. alarmed at this call? jub: you would look at the markets that are beaten up the most hopeful are and point .oward more cyclical assets the problem we have is that the visibility on the timing of when we get the rebound has been pretty low at this point. so running a balanced portfolio is right way to approach things. what could give you comfort in terms of ad

we understand that sergio ermotti of ubs wants to leave.n -- been confirmed through the bank. we understand they are looking at candidates internally and externally. the dynamic at ubs was fraught between the chairman and chief executive 12 to 18 months ago, but they seemed to have put those differences aside. interesting this is coming into the forefront. tom: a ramification on financial performance as well. viviana: we begin with the coronavirus outbreak, beginning to gauge -- difficult to gauge the true scope of it because of the data. another 4800 cases are confirmed. there are now than 63,000. u.s. officials are stepping up their criticism of china. now to a surprising rebuke of president donald trump by one of his most trusted cabinet members. saidney general barr presidential tweets make his job impossible and told abc news the commentary undercuts him. veto atrump vows to resolution to restrict his ability to wage war against iran. the senate approving the measure, and it is expected to be approved in the house. there are not enough

is paulso with us donovan, ubs global chief economist.room ember that in the modern age, there may be a tendency to overreact in terms of sentiment, in terms of police. the underlying economy going into this situation was actually looking reasonably solid. we are not seeing fear, and fear is the main economic driver in the united states and most of europe. if we were to see a pickup in fear, you would get a more severe economic impact in europe and the states. at the moment, the economic impact is still relatively contained. alix: what i don't get is why now. i understand italy happened over the weekend, but we have been dealing with the virus for weeks. so why now? is it more about really high valuations anyway, having utilities lead us to record highs last week? it's not like there was a not leave it for that to shift. is that more of it, as it actually just the virus? andrew: i think it is a combination. as you mentioned, we had been going into some of the highest valuations we have seen in the post crisis. that combined with something

what does that news tell us about which way ubs is going to be going next? caroline: this is absolutely a surprise pick to people inside and outside ubs to bring someone in without the wealth management experience. they have really built their franchise emphasizing that, and all of their strategic updates, etc. so it really was a surprise. i think we are all still trying to figure out executive what it means in terms of the shift in strategy. back to our discussion about the importance of digital in this era, they have been talking about what he did at ing in terms of their technology, and that was something that was appealing to them, but i think you are asking the right questions in terms of what it means for their future in both and is meant and whether we will see a shift there. vonnie: i'd like to thank all of our panelists for that wonderful discussion. now on the in bloomberg first word news. here's viviana hurtado. viviana: in germany, 11 people were killed in what authorities say might be a right wing terror attack. the gunman and his mother were am

haidi: let's bring in wayne gordon, executive director for commodities and fx at ubs wealth managementgreat to see. let me start by bringing up this chart on the bloomberg looking at the commodities crunch. unless you are a precious metal at this point it is looking pretty dire. broaderrt tracks the commodities index. industrial metals is there. copper has done particularly poorly. down about 6% year to date. do you see any meaningful recovery for anything in the commodity complex if we continue to wade through what the economic ramifications would be of a coronavirus epidemic or pandemic? wayne: hi. i i think the commodity markets more generally are pricing in particularly what other asset markets are not, and that is that the impacts of the virus extend well into the second quarter. onhink there is a real link the activity front, what we are seeing. clearly today we are in risk-off mode, oil prices are coming off. some of that could be related to the iranian turn. also gold prices is shifting higher. consequently we are in that risk-off mode today. in china, the activity signals are

ubs has talked about equity exceptionalism. we see asian stock higher today.own0 year treasury yields 30 basis points in 2020. the point is rates in commodity markets sending a different signal to equities. how fragile is the equity exceptionalism we are seeing right now in investors' mindsets? equities are not pricing in the worst case scenario. obviously we are not hoping for that. but i do think equities are priced for perfection mainly because of the liquidity from the financial system. it could be vulnerable, but i think if this coronavirus is going to be contained as markets ,xpect, and it is justified overall consensus is that it is going to be contained, but if not, equities could be vulnerable. we see the pboc flushing the system with liquidity. i asked my guest yesterday. the fed is pumping liquidity into the system. what is the risk from this amount of liquidity? reallymi of liquidity flooding into markets. risk could be people .eing too optimistic there is to be some correction at some point. -- as inew the markets said, i think equities have price

there was a line from a ubs note that jumped out at me. there really isn't much of a bear case.te the coronavirus, which you can take as you may. that white line, the s&p 500, has taken on the return you would have gotten if you had a 10 year note since the coronavirus dominated the conversation. we saw a nice rally in bonds. but we are seeing investors want to get in on this rally, whether it is in the united states or china. i spoke with many investors who look at this as an opportunity to build up their exposure to emerging markets and china further on. haslinda: what is on the docket next week? >> next week is a relatively light week when it comes to economic data. we will be watching the rollout of the coronavirus and what it looks like from here. we will get the unemployment rate out of hong kong, exports from taiwan. earnings season continues to go on. we will need to hear from companies what the impact is of the coronavirus. quarter last great year, but says this quarter is a totally different story. that gives insight into how the coronavirus is impacting companies at t

ubs' chairman sat down with bloomberg on the sidelines of the summit.lieves the global economy will take a massive hit from the virus, and he says markets are underestimating the risk. has basically the view that the glass is half-full , the world will pass the stress test, it is a temporary one-quarter impact. baked into our projections. >> the g20, the language being used is about a potential coordinated response to a slowdown in the world as a result of this new black swan. what is the coordinated g20 response? 2019 was great. what is 2020? >> just to get the numbers right, likely in our estimates, this will bring global growth to .5%, which is a massive drop. it will bring chinese growth from 6% two -1.5%. the first time in postwar history where china will post a negative number for the first quarter. that requires response. the global number tells you it is not just china but very strongly impacting neighboring countries -- hong kong, singapore. the support that the rest of the world can give is to keep the door open for export and for trade. ,> wh

we speak to ubs. plus u.s. house speaker nancy pelosi comes out against huawei, warning against seating telecom infrastructure to china. we get reaction to that. and tesla turned our heads this week. look back at some of the biggest stories in tech. to our top story, u.s. equities headed into the holiday weekend on a positive note after the release of steady figures for retail cells and with investors continuing to weigh contrasting data from china on the spread of the coronavirus. the s&p 500 closed at record high after swinging between small gains and losses in friday's session. to discuss today's market performance and technology we are joined by laura kane of ubs. to kick us off, i want to take a look i am showing from my terminal. as you know, the trade of 2019 was u.s. versus the rest of the world. i was speaking with david kelly, the global cio of jp morgan asset management who was trying to make the case for over waiting international equities. are you still trying to overweight international equities o

abigail: ubs chooses a new leader. >> now it is time for the next chapter for ubs.apter will be written by rob thomas. abigail: morgan stanley makes a

joining us now is global head of debt syndicate at ubs.e have seen that kind of frenzied activity in the debt market as well. in terms of buyers, investment-grade debt, i was reading a little bit earlier int we saw 23, 20 $4 billion inflows last month. that makes it one of the biggest months ever. what's going on? yearvery busy start to the . particularly in europe. more than 230 billion of issuance, a number which we never had before. as you rightly say, this is down to the fact we seem very strong on inflows over the course of the past couple weeks, actually months, driven by very strong returns. anna: how much is the coronavirus making a difference? either to issuance or the money available to invest? this is clearly making a lot of people seek some relative safety. armin: it is definitely in the short term a game changer. we have seen slowdown the past week already. impact already in issuance. we saw it in the broader market as well from a performance perspective. hopefully in the medium to long-term we can return to what we have seen

ubs chairman axel weber sat down with bloomberg's manus cranny on the sidelines of the summit.lieves the global economy will take a massive hit from the virus, and he says markets are underestimating the risk. axel: the market has basically the view that the glass is half-full, the world will pass that stress test, it is a temporary one quarter impact on gdp and trade and we will move on from there and rebound. d into ours also pace projections. manus: the g20, the language being used is about a potential coordinated response to a slowdown in the world as a result of this new black swan. axel, what is a coordinated g20 response, 2020 style? if 2019 was rates, what is 2020? axel: just to get the numbers right, likely, in our estimates, this will bring global growth from 3.5% to .5%, which is a massive drop. it will bring chinese growth from 6% to -1.5%. it's the first time in postwar history where china will post a negative number for the first quarter. that requires a response. and the global number basically but very strongly impacting -- tells you it is not just china. it is

actually happening in banking right now too, whether it's the morgan stanley deal today or the fact that ubsnnounced a new ceo, outside ceo that has a retail banking background what do you make of that what is it about this i guess as you put it emerging wealth customer that becomes so attractive so recently >> i'm surprised they didn't do it before. i've always believed in it the essence is at 70% of the financial services revenue is in the consumer side, and a huge percentage of that is from middle market upward so if you want to be a diversified financial institution, which i think you should be, you have to be in the middle market of the middle income consumer. it took a long time for some of the financial institutions to believe it >> how do you think about m&a in the space overall? b bsh bb&t suntrust, franklin, legg mason earlier this week. where should we look for m&a to happen with the fastest pace >> well, there's going to be more consolidation the large institutions really aren't able to do m&a, at least in the areas of which they are already operating. so it will be the smaller c

jason katz, ubs senior portfolio manager. peep us with the pup them.our top dogs when it comes to sectors in the market? >> we're taking a sort of a barbell approach. on one hand you want to look pro-cyclical. whether emerging markets gotten hit as a result of corona. or energy down 10% on the year. on one hand treasury inflation protection and. liz: we're getting closer to the 2% level. explain that, you talk about tips, treasury inflation protected securities. give us a sense why you like those and why you like energy? >> the fed has thrown the market a bone. in fact central banks around the world have by keeping rates so low, so long. we have pro-inflationary, fiscal and monetary policy the feds rethinking the whole fed target and inflation target. i do think a healthy modicum of inflation is in the offing although probably not this year. you will get a treat having a bit of inflation protection in the portfolio. as far as energy is concerned, having some exposure, if in fact the global economy is stablizing which we think it is and a group relative

this position -- how does this position ubs?it's hard to say how much it will change their approach or competitiveness. both of them do overlap in a lot of ways and we will have to see if there is a serious strategy change with the new ceo. this could obviously be a shock to the shares. but i can't imagine there will be any immediate impact on the performance of the bank. -- nejra: thank you both so much. the european equity portfolio manager at allie owns. -- allianz. what is your first take when you look at the european banking sector? >> it is a big shock for investors. the news we heard was that mr. tidjane thiam was getting support from investors. so i think you will see a shock in the markets. us, theyrtantly for will hear from the new ceo. nejra: what would you want to hear in terms of that front? continuation would be positive. they are moving away to a more visible, stable wealth management and parts of asset management. , expect that will be continued but investors will be watching eagerly. nejra: when you look at the

thank you for joining us the chief strategist from ubs.th us we'll be talking japan japan may also be headed for recession as the coronavirus threatens to disrupt the economy. we'll be back in a few moments [♪] think you need to buy expensive skincare products to see dramatic results? try olay skin care. just one jar of micro-sculpting cream has the hydrating power of 5 jars of a prestige cream, which helps plump skin cells and visibly smooth wrinkles. while new olay retinol24... provides visibly smoother, brighter skin. for dramatic skincare results, try olay. and now receive 25% off your purchase at olay.com brand power. helping you buy better. >>> welcome back to "street signs. i'm julianna tatelbaum >> and i'm joumanna bercetche. these are your headlines >> beijing reports a slowdown of new coronavirus cases. adidas and puma warn of the negative impact from the outbreak >>> good signal. posting a profit and outlook as europe's largest mobil operator looks to finally complete the $26 billion t-mobile/sprint merger >>> shares of iag fly

ubs is one of them. it has poached a team that manages $6 billion worth.er which looks after about $4 billion with is leaving for public. our chief finance editor joins us to talk a little more about this. when i talked to guests, especially when i talk to their pr people, this is the kind of thing people in the industry are whispering about a lot. >> absolutely. especially in the wealth management space, this is an area where everybody, not just goldman sachs, not just ubs, everybody sees it as an increasingly core part of their business and an increasing profit driver because so many other pieces of the business, the prophet stories have been somewhat questionable. matt: it is hard to make money anywhere else. >> we see everybody diving into wealth management, notably goldman sachs. matt: why -- i mean, goldman sachs is -- at least in new york, the pinnacle of the industry. why are they leaving goldman sachs to go to other places? are they not getting paid enough? is the pantry not very nice? must be the pantry. obviously, it has to do with whatever mone

stuart kaiser of ubs investment bank stays with us. can find all of the charts we just used and more by running gtv on your terminal. centcan browse re features and save the charts. gtv . this is bloomberg. ♪ viviana: you are watching "bloomberg daybreak." foregin with a farewell bpce a bob dudley. the giant bucking the industry trend by posting quarterly profit that beat estimates, also raising its dividend. the company is planning $5 billion more in asset sales. bp says it received a nice bump from its in-house energy trading unit. shares of alphabet are falling. google reporting quarterly avenue that missed estimates. search advertising growth slowing down, plus sales numbers on youtube disappointed. to stem the spread of the coronavirus, macau taking new steps. almost four dozen casinos will be shut down for 15 days. so we'll movie theaters and some bars. a casino worker was confirmed to be a new virus patient. that is your bloomberg business flash. romaine: what's going on in macau? kind of a big deal here. we are seeing

matteo ramenghi is with us, cio for italy at ubs. it seems we are seeing a lot of european banks get near or can see the light at the end of the tunnel as far as a turnaround for their businesses. what do you think about the state of european banks? can you put them all in one bucket? matteo: well, i think we should keep in mind, the credit cycle in europe is still fairly young. -- still recovering from 2015, the nonperforming loans was a down, and there massive capital redeem driven by the ucb and market conditions. the banks today are in a much better place than in a few years ago, including the periphery. of course, earnings momentum is weak because interest rates are low and will probably stay low for a while, but the expectations on earnings have been coming down last year. what we see now, some positive surprises. anna: is it disappointing to look at data out of the eurozone in december and think of what that might mean for the banking sector? just as investors were looking of recovery ins europe and data suggesting arength, we

this is on a ceo change at ubs. being hamer is apparently named ceo of ubs.e currently is the ceo of ing. apparently going to be making the move from amsterdam to zurich. coming up on this program, a new arrival. democrats taking the stage in las vegas. but with the new target. we are going to discuss the latest. you're watching bloomberg. ♪ joe: the ninth democratic presidential debate takes place in nevada tonight. for the first time, our owner, michael bloomberg will be on the stage with his fellow candidates. although he is not competing in the state, he has been rising in the national polls. here is kevin cirilli. we all know him pretty well here at bloomberg, but for many americans watching the debate, this may be their first chance to see the candidate by many measures a second or third in a lot of the polls. the first time former new york city mayor michael bloomberg will make his debut. i am told by sources connected to the bernie sanders campaign that this is a welcome opportunity you for the democratic front-runner. bernie sanders can draw a contra

the ub ideal is on the wings but we have to see if the ecb approves it.uy a big u.s. banks, that is more uncertain, but whether they will buy a fintech company or wealth manager or wealth manager abroad , it will be interesting to see a goldman or jp morgan do an international deal. those are the kinds of deals we are expecting. francine: marcus, there was a lot of focus on the fact that intesa sao paulo did this -- intesa sanpaolo did this deal and it was a catalyst. marcus: it was a surprise but it was not a big deal. the biggest bond issue this year was from ubi. it shows you it was a bit of a bargain and everyone expected ubi to buy something like monte dei paschi or something bigger scale in italy. , in you go cross-border don't think european mergers yet. tom: i got eight things to go to and no time to do it. help me with the barclays soap opera. week and. staley's what is his margin? marcus: it is not good. it looks like the comeback on detail and perhaps they miss their man -- missed their man last time and hope to redeem themselves. the whistlebl

ubs had the idea of equity exceptionalism at the start of the week whereby equities cap gaining, butyear treasury yield down 30 basis points so far this year. seeing sort of a consensus view across asset classes. board, you arehe seeing strength in the yen, so strength in the yen meanwhile weakness in commodity currencies as they you want is weakening as well. the euro-yen's to hitting a 2017 low. we've got the industrial production data causing concern, and you have deutsche bank expecting a slight contraction for germany in the quote -- in the fourth quarter as the coronavirus is expected to exacerbate an industrial flood. then you have called changing on the euros as well. credit asset called downgrading its forecast on wednesday following similar moves by jp morgan. wti absolutely flat right now. it has been pushed around a little bit by coronavirus headlines, but interestingly, oil has been fairly strong this week. as i say, today, that risk on tone we have seen so far all this week has changed. that tone has shifted. the question you have to ask yourself now actually is -- will

so ubs says that february is likely to be much worse. we are getting the peak of the virus. all of these are anecdotal individual cases, so it is easy to brush off, but the data is compelling when you look at the whole. as a so far, about 180 companies on their conference call for earnings have mentioned coronavirus risk. that is $10 trillion of the u.s. market cap saying they are concerned. by far, the majority have said this is something they are monitoring. the effects will be small and manageable. a smaller amount said there will be drastic impacts from the virus on earnings, but the amount is growing. that has analysts concerned that it is not just in supply chain anymore, it is the virus spreading and infecting the supply and demand picture. alix: thank you so much, bloomberg's dani burger. announcements happening here in london, bear with me as we have a loudspeaker going. several democratic candidates will meet in south carolina for a last encounter, before the primary on saturday. joining us from charleston is kevin cirilli, bloomberg's chief washington corresponden

ubs saying the best is yet to come jpmorgan saying the 5% pullback last month was a buying opportunityo should you just buy it joining us now is matthew boss and matt, this morning on the bell erased a lot of that opportunity or did it? >> look, i think there's a premium for compounding quality and that's what i think nike is. we upgrade d the stock to an overweight back in december of '18. you had had a 20% pullback at that time, but i think what's interesting here, you've had almost a 10% pullback in the stock. the stock's trading at a 1.5 peg, mid to high teens, but that's an ago rhythm the company is managing to the bottom line they're reinvesting the gross profit doll ars. they could be earning more on the bottom line. you're going to hear from the new ceo this week and we'll see some of the new product that's really the backdrop for the next two years so i think there's a lot of reasons to be optimistic about nike from here >> that said, b i believe your price target is $111 it's not nothing, but why not set your sights even higher? >> i want to see some of the new product this w

a stake in the china ride sharing king pen and then sold to grab in 2018 they got a 27.5 stake and ubeer losing businesses and exchanging for them ownership stake in leaders that they had a hand in creating because they move out of the market. if you look at the moves as a whole, uber suddenly and steadily become a more domestically focused business with a portfolio of international holdings that feels like others that we like isc interactive or soft bank i think they could be huge winners like when the stake happened in alibaba. in the short-term they're pairing back to focus on profitability. meanwhile it doesn't hurt that we're hearing rumors of consolidation in the domestic foot delivery. uber has been a black hole but it is more val automobile for grub hub merges with door dash of course grub hub denied the possibility and did it again last week but these gave uber stock a major boost. so into the quarter there are already meaningful improvement we didn't know how meaningful. when they reported on thursday night -- i hate to use this overused cliche but it did shoot the lights on.

. >> today it's micron making this big surge on ubs upgrade thank you very much, robert. they put a $75 target on it, scott. ambarella, which does systems on a chip, these guys are up from, i think, 50 into the 70s like that, up 12% on the year and that was with all the issues of, well, is apple going to have to cut back and not be building as many of these phones if, indeed, they can't get the fox con factories open, because they were using those factories to make masks instead of to make apple products and things like this there are so many stocks in the semi space that people are just riding if you think they're not selling apple and the fang names, they're certainly not selling these semi names buyers, one side of the screen, nothing on the other side. >> i also think what's happening is that the maga stocks right now are trading with the behavior, i'm going to borrow what jim cramer has said about apple. he has said own it, don't trade it i think you can make stocks we sit here, talking about trading tactical opportunities in other names i think that's fair. you can

ubs has lost. morgan stanley as well.ay advisors the last couple of years advisors really want to break out on their own, take their clients with them. but for goldman here's the issue . they want to increase their advisor count by 30% so 250 advisors. this conflicts with that plan. breaking consumer and wealth revenue. posted record read revenue in the last quarter of that segment. this keeps up with that plan. alix: it also came up for me. there been so many people leaving already. what part of this normal stuff and what part of it is goldman and their shift more market stuff? >> they are trying to grow that business. let me put the numbers into perspective, morgan stanley their wealth businesses more than 2.5 trillion dollars whereas at goldman they have 551 billion dollars of assets under supervision in the wealth business. $10 billion moves the needle when you put it that way. the bigger firms could probably stomach that a little more than goldman. this is happening across the industry so it's hard to say that this i