the eu and u.k. would try to get preferential access to the european markets and preserve the margins of preference, the preferential treatment it gets today. how much of that will be preserved, i don't know. that would depend a lot on the conversations between the two. what is important is that whatever happens there, we have to realize that the u.k. already does trade with the rest of the on wt a terms. that is already than arm and that's what exists today. it deals with china, the u.s., brazil and indonesia, all of that. that will not change. that is very important to bear in mind. what needs to be figure it out mostly is what happens to the trade relations between the u.k. and the eu and between the u.k. and those countries where the eu has preferential arrangements. tradeon the subject of relations, can we talk about trade relations between the u.s. under new president donald trump and the rest of the world? he is withdrawing from the tpp, and wants to renegotiate nafta and likes bilateral rathe

u.k. time. after the european close, rating updates set for germany and for greece an we'll get you to those on friday evening. and tomorrow morning, warren buffett is set to release the company's annual report and letter to shareholders. still to come, crude reality as doubts emerged about the true value. take a udi be forced to whole lot less? brexit's price tag, austria's chancellor touts the cost of leaving as 60 million injure res. and war of words. safran hits back at criticisms of its zodiac takeover. we speak to the company's chairman. this is bloomberg. ♪ anna: welcome back. this is "daybreak europe." hang seng, some weakness to the end of the trading week but that doesn't change the overall path which has been upward. let's get bloomberg business. >> thank you. vivendi forecast 2017 earnings below analyst estimates. this year the media company run by billionaire vincent bolari predicts a more than 5% increase in sales. that would put the measure at about 905 million euros, compared w

if the u.k. will leave the eu, it is important the rest of the eu form solid relationships going forward. more aboutll talk the u.k. and a moment. one of the stumbling blocks seems to be contributions to nato. tothe u.s. is committed nato, and we are hearing those messages, if they are committed, there does seem an expectation that europe will have to pay more. which economies can afford to pay more for defense? >> everyone will have to pay a little bit more. it will be done by gdp and population-weighted numbers. i imagine that's how it will fall. there is a point here. there is a price for everything, and europe will have to pay more going forward. anna: europe trying to get a handle on what the u.s. administration makes of it, to work with europe on? with those to deal old challenges like the greek crisis. roll your eyes, david. we are at their again. more conversations around greece taking place today in brussels. the second round of the third bailout, that kind of magnitude of things. do we

meanwhile, u.k. conservative party mp's have hit back at claims by the austrian chancellor that britain will charge 60 billion euros. in an interview with bloomberg yesterday, christian kern became the first to put a value on the theresaxit bill while may's office was muted. it sparked a fury of response from senior members of cabinet. in the u.s., jeff sessions has and obama administration order phasing out the use of private prisons. prison operators rose in after-hours trading. malaysian police has said a preliminary report shows a nerve agent was used in the murder of kim jong-nam. it was found on the victims face and eyes. he was murdered in a kuala lumpur airport. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. anna: let us turn our attention to french politics. marine le pen has laid out her foreign-policy vision in paris. she calls for a world based on nationstates. to ensure france's independence and the french pe

let me begin by saying this is not u.k. policy and not our policy, nor is it a measure that this government would consider. i have already made clear our thatty about the measures discriminate on grounds of nationality in ways that are divisive and wrong. president trump issued an executive order running citizens of seven countries from entering the u.s. for a period of 90 days. those countries of syria, iraq, and, somalia, yemen, libya, sudan. no order makes clear that u.s. visas will be issued to citizens of u.s. states, and anyone who has a visa will be denied entry. the immigration policy of the united states is, of course, a matter for the government, the united states, but on the face of it, this executive order has consequences for some british citizens. for this reason, i spoke yesterday to the u.s. my honorablen, and friend, the home secretary, has today spoken to general kelly, the secretary of homeland security. i am able to provide the following verifications. thateneral principle is all british passport holders

u.k. union momentarily. we have not heard much from the german unions and they are important. labor highs half of the executive board of awful. -- it is owned by at subsidiary of general motors. a have a huge state in what gets done is far as big strategy decision like a sale to be joe. you have the politicians. the economy minister said she will fly to paris to talk with the government there which owns a huge stake in pew show. angela merkel government said they have not made a decision an opinion on exactly how to decide on this. they have to talk to a number of people, they talk yesterday to the gm president in berlin. it will be interesting to see first.ide budgets i can tell you that the german government and the unions are not happy about how they found out. bloomberg roca story of couple days ago and that was the first they heard in berlin of this planned exposition -- acquisition. let's go to juliette saly. juliette: thank you. u.s. intelligence agencies and the fbi are conducting

u.k.'sto bring in reporter in london, a 75 page brexit paper, if you want detail will you be disappointed? >> it pretty much follows the 12 points theresa may set out in her brexit speech last month. there are a couple of points that provided a little bit more detail, and reiterate that slightly threatening tone she had, particularly toward the end of her speech. on financial markets, the government will seek the freest possible trade and financial markets with europe but also says "it is in the interest of the u.k. and e.u. that this should continue to avoid market have got ton." you remember that three quarters of currency in training and interest rate derivative trading happens in london. that is the u.k. saying, you need us as much as we need you. alix: they echoed that when it came to those citizens of the e.u. living in the u.k. and vice versa. what did they say? >> that is one point that could be joint -- quite troublesome for the government because a lot of labour and tory mps have

u.k. prime minister promises on article 50. parliament concludes later today. lendingd second biggest company will pay a higher dividend than expected, after reporting the first gain in annual profit since 2013. this is "bloomberg surveillance." we are expecting breaking news out of india. -- theanged the policy world bank of india changed its policy stands to neutral. the rupee -- i do not know if you have a chart. the rupee pared some gains as panel held rates steady. they are changing their policy stands to neutral from accommodative. this is a picture that may imply the rupee holding off for a couple of months, in terms of the gains we saw. we will get back to that shortly. first, this is the rest of your market. we are expecting a little bit of fluctuation in terms of some of the currency. european stocks gaining. asian stocks recovered a touch from early losses. this is the picture for the .ndian sensex it was lower as we were waiting for this r.b.i. decision. european stocks -- rio

u.k. government hits bac k after the chancellor tells bloomberg britain has a bill to settle. theresa may's ruling party scores a historic election victory. we have the latest. frexit fears. ubs, blackrock, and barclays meet marine le pen's team for answers on her economic plan. is a national front victory starting to look like a possible reality? obvious lays out a 2 billion pound plan. good morning, everyone. this is "bloomberg surveillance ." there's quite a lot going on in the markets. investors once again trying to adopt status quo as they are trying to figure out what happens next. it is a cautious tone at the end of a positive week for global stocks. next week we have a major speech from donald trump. a lot of industry and market participants probably waiting to hear what comes next in terms of his reflationary measures. tactically00 unchanged. i want to show you volatility. we are seeing a little movement when it comes to these yields. 12 54.05. one of the stress tests when it come

and u.k. this is u.s. over u.k. do you see that spread from a bond perspective? that record high, record low depending on which way you flip the spread? do you see that momentum continuing? the differential continuing? >> that spread is about done now. that's pricing the u.s. federal reserve being very active and the bank of england doing nothing. there is an argument to say that, if inflation stays at elevated levels, if sterling stays weak, the next move could be to raise interest rates. yieldsat means is gilt will take a little bit of that strain. anna: they are not mutually more, do you think? are they, do you think? >> the bank used to be very asymmetric. now it's clear the bank of england are very symmetrical. that means that they could well hike rates, and again take a step back,. look at the performance of the u.k. economy. at the moment is very strong. at the moment we have an emergency level of interest rates, and the u.k. is not an emergency. manus: i'm not going to argue one of monday morning, because i'm barely with it at all today. i'll go tentative

told yesterday is that lawmakers and the u.k. will not be able to say we don't like this deal you need to go back to the eu and renegotiate. they will have to either take it or leave it. if they were to leave it, that could put the u.k. in a difficult position where it has to revert to the wto terms for trade. mark: yesterday, they overwhelmingly backed the motion opposing the start or the indication of article 50. that vote sparked this reaction today from prime minister theresa may. the supreme court was very clear that the scottish parliament does not have a veto on the triggering of article 50. is going through the house obviously is giving the power to the government to trigger article 50. i would also remind him of this point because he constantly refers to the interests of scotland inside the european union. an independent scotland would not be in the european union . mark: we could be heading toward at least another independent referendum debate. opposition within scotland rages doesn't? it? nejra: yes, there has been a n

u.k. capital housing market underperform the rest of the country last year after brexit and tax increases weighed on investor demand. global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. this is bloomberg. manus: thank you. japan's exports disappointed. shipments for january, they rose 1.3%, well short of the expected 5%, a yawning trade deficit could see japan's trade growth worsen. mark, great to see you. ofk, a disappointing set numbers, but exports to the u.s. dropped by 6.6%. everything is grand and they will be able to make a good case for a bilateral trade deal with mr. trump when they sit down. >> i mean, that is definitely one part of it. they can say, look, you don't need to impose trade barriers or protectionist measures. our exports to the us is dropping. they still had a trade surplus, which is not great news. they are worried, saying the exports are not growing as much as they would like, implying they need further

taking the u.k. out of the european union has passed its first test in parliament where lawmakers agree to a lovely private minister start negotiations by the end of march. they backed theresa may by 498-114. approval warned the should not be mistaken for unconditional support to negotiate freely. the government will publish an outline of the brexit plans today. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . manus: we have equities. juliette saly standing by. i was asia taking the signaling? >> certainly the yen has weighed in on the mckay. juliette: weakness in a late trade, coming up from the korean won as well. the feds, not much new. fora lot of movement investors willing to dip their toes into the markets. quite a bit of weakness coming through hong kong down .7%. catch-up.ying hong kong was closed for lunar new year. their 76.43 after the trade balance beating expectations. we have

matt: u.k. lawmakers will begin a line by line debate today over legislation that would allow the prime minister to formally start brexit negotiations. the committee stage of the bill allows members of parliament to make changes and opposition mps have proposed more than 250 amendments. guy: it will be a big story. 58% of top u.k. business leaders are already feeling the effects of the vote to leave the eu on their businesses. the report says a hard brexit could hit supply chains. hitting manufacturers why is much as 30%. joining us now is michael. very nice to see you. is supply chain story interesting. it is a long story that you need to think about if you are managing a company. six months time, will that supplier work for me? is my supply chain going to be fully functioning. are we starting to get the affects of the brexit vote into that supply chain? although a large number of uncertainties remain. for the last 40 years, executives in the u.k., european and global companies have designed th

and the u.k. being on the same point in the economic cycle, which is an incredible point to make, and then the perception of a tightening of relations between the u.s. and the u.k. anna: the ecb is still carrying on with its quantitative easing plans at the moment. his mark carney definitely neutral? yesterday we saw him declining to confirm whether officials at the bank of england are still committed to that neutral claim. , in termsk of england ad aur positive view has re-tweaking of the assumptions in regard to employment. that's pushed out the time and potential of when the bank of england will move. i think sooner rather than later the market will come back to the idea that the economic fundamentals are stronger than people have anticipated post >> it. that means the august move from last year, the rate cut, perhaps that should be reversed and we should start to see the rates market price that in more seriously in the second half of the year. that's part of our positive story as well. anna: t

the u.k. out of the european union asked parliament. mp's warn the approval should not be mistaken for unconditional support. brexit minister david davis outlined his vision for the future in a white paper. he confirmed the u.k. will need both the single market and the customs union, which enable british exporters to trade tariff-free with the rest of the block. the bank of england left rates on qe unchanged yesterday. it upgraded its economic forecast and revealed that some policymakers are more concerned about inflation. mark carney said the central bank is ready to respond as the u.k. begins its formal exit from the european union. >> it will be the country's new relationship with the e.u. and the reforms that it catalyzes. these processes will have a significant bearing on inflation over the next few years. sebastian: smaller manufacturers warn of higher inflation. the collapse of the pound is driving up the cost of raw materials. costs rose at the quickest pace since 2011. the confederati

we should be proud in the u.k. that we have some of the highest animal welfare standards in the world -- indeed, one of the highest scores for animal protection in the world and leaving the e.u. will not change this. i can assure my right honorable friend that we are committed to maintaining and, where possible, improving animal welfare in the u.k. it ensuring our industry is not put at a competitive disadvantage. >> thank you, mr. speaker. last week, russia decriminalized domestic violence committed against women and children. i trust the government will encourage russia to rethink this aggressive approach, which federalize his domestic violence rate -- domestic violence. they are ratifying the federal convention with russia and way should be placed on ending gender-based violence. pm may: can i first of all say that i am proud that in this country we have strengthened the law on domestic violence against women and girls. we see this as a threat of the russian government. repealing existing legislation sends the w

the u.k.'s house of lords starts a detailed examination of prime minister theresa may's exit legislation today. a number of amendments are expected to be put forward, including one which would give parliament a binding vote on the final brexit deal. the pound is down against all its major peers after a report said may's office is preparing for sultan to call another independence referendum. the independent french presidential candidate emmanuel macron has won a third endorsement in a week on the suggesting he is favored to win the upcoming election. techcrunch is seen challenging francois fillon with the far right leader marine le pen expected to win the first ballot. she is currently expected to lose in the second round. the suspended president of south korea has denied involvement in wrongdoing according to the news agency. it sites are written comments to the constitutional court, which is holding its final hearing on her impeachment. park was suspended over a scandal about influence involvi

the u.k. treasury has said rbs will provide 750 million pounds of initiative to boost competition in u.k. banking. ceo ross mcewen told the financial times that the bank may return to profit next year. rbs is scheduled to announce annual earnings on friday. the pboc says chinese banks had more than $3.8 trillion of wealth management products held off their balance sheets. that is a 30% increase from a year earlier. the central bank says this shadow banking outpaced the 10% growth in normal lending, raising risks for the broader economy. jpmorgan and bnp paribas have said foreign companies will sell more yuan bonds in china this year as the government started allowing the two banks to underwrite corporate notes. jpmorgan says it is having an active dialogue with global clients about possible issuance. b.n.p. paribas said it may expand its onshore debt capital markets team which now consists of three people after it gained wider access to the market. that is the bloomberg business flash. francin

she does not have been agreed u.k. vote. >> mr. speaker, as the prime minister niles, a lot of people watch prime minister's questions. so will she tell those viewers in scotland whether she intends to keep her word to scotland or not. >> we are ensuring that we are working closely with the scottish government and indeed with the administration as we take this matter forward. i would just remind the right honorable gentleman of two things. first of all, the supreme court was very clear the scottish parliament does not have the veto on the triggering. the bill is going through the house, obviously giving power to the government to trigger article xv. i would also remind him at this point because he can't refers to the interest of scotland inside the european union. an independent scotland would not be in the european union. >> mr. speaker, the people warmly welcomed the government's housing paper. will my right honorable friend confirm when it comes to providing more security for renters, building more affordable homes in helping pe

former u.k. prime minister uses his speech right here on bloomberg to call for a fight against brexit. we will speak exclusively to the x chief executive of sainsbury's's, justin king, in our brexit special show. ♪ mark: let's get the bloomberg business flash with sebastian salek. seb: former u.k. prime minister tony blair will urge opponents of brexit to fight to reverse britain's decision to leave the e.u. he will say people voted without knowledge of the true terms of brexit. as details become clear, it is their right to change their mind. our mission is to persuade them to do so. that speech at bloomberg london headquarters in the last -- next half hour. we will bring that to you live and then will speak exclusively to tony blair on "surveillance." allianz has announced a first ever share buyback. rough it beat estimates. meanwhile, pimco, which it owns, has had a positive start to the year. it was very strong, with further inflows. i think it is a very good time ,or active managed credit e

the new u.k. say trade agreements with non-eu countries will not come close to offsetting the impact of leaving the eu. the national institute of economic and social research critics that leaving the single market could lead to a long-term reduction in british trade up to 30%. they say increased trait tribute deals would boost trade by less than 3%. boostdeals would trade by less than 2%. that's practical over place ted budd, who had been in the role for one year. over attracted new fans the holidays. they beat estimates. they saw two .5 million more phones in the third quarter than the year before. 2.5 million more phones in the third quarter than the year before. vonnie: time for our bloomberg take. today, we look at the supreme court. president donald trump has nominated neil gorsuch and concerns that he will be [indiscernible] and will not be are to the left like previous republican nominees. to the left like previous republican nominees. until voluntary retirement or on the courtacancy has ra

u.k. his visit came as one poll showed himself thing back into third place in the countries tumultuous race for the palace. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. bloomberg. manus: thank you. we have had a conversation with and ceo.irman he sat down with john micklethwait. john asked him if he thinks opec will need to extend its production cuts past may. >> i'm convinced will have to do it. it is not really opec, it is also russia. we have [inaudible] what happened in september. real driving force was russia. russia for the first time in history and their leadership of vladimir putin accepted to make some cuts was the driver which for saudiargument arabia to change his policy. it is not really opec it -- opec. it is opec and the non-opec market. the inventories are quite high. it will be expanded beyond may. that was -- priorities will become plain. there is some good news for this industry. >> what about shale, does that

u.k. statement from the primary mr.. >> here. p.m. may: thank you mr. speaker. before i turn to the european council, i am sure the whole house will want to join me in sending our congratulations to her majesty the queen as she marks her sapphire jubilee today. it is testament to her majesty's selfless devotion to the nation that she is not marketing her becoming the first monarch to rule 65 years but going on with the job she has dedicated her life. on behalf of the whole country, i am proud to offer her majesty our thanks for her long-lasting service. long may she continue to reign over us all. informalo last week's european council, britain is leaving the european union, but we're not leaving europe a global britain that stands tall will remain a britain that stands a good ally. we show how britain will continue to play a leading role long after we have left you -- the e.u. through the new an equal partnership we want to build with the e.u. first on migration. the discussion focused on

the u.k. government's brexit bill which gives prime minister teresa may to start the divorce from the eu will fleet a final round of debate. the opposition labor party with leader jeremy corbin ready to unleash a whip. he suggested that front benchers may not be sacked. saying he was quote a very lenient person. >> a shadow secretary of state and international climate change as well. >> first of all, i want to get your take on this survey. 100 of the biggest companies surveyed say brexit has had a negative impactb on their business. what should the government do? >> i was in a business in new yorksure last week. they make the hudson bay blankets. and the chief executive of that company had voted in the referendum to leave the eu. thee was the was absolutely unthinkable weicide move fords an increase in tariff. he thought we couldn't be serious. now the government must give real agerns on this point. because if they do income into play, then our businesses are go poog be at a real disadd vantag

as you say in see the u.k.. i do believe that the u.k. can and will be a tax haven. guy: ok. two quick questions. you said it would be a tragedy of france were to leave single currency. do you worry that by suggesting to the next breast -- french president that the first thing that should be done would be more austerity that you are playing toward a tragedy? that you are playing at the hands of someone like marine le pen? pierre: there was never a authority in france and there is no authority in france. they are doing it slowly. they are at the right point on the 3%. they must go on. it's a question of economically and politically you know getting more debt is not a factor of strengthening the economy. marine le pen is attached to the euro at this percent. they know it would be a tragedy and suicide are in guy: one final question. think the when do you accountants will return? the bailout auditors will be back in athens? meet themam going to wednesday. i can confirm that. we are all of us discussing in order to find a way so that we can conclude the review. this will be as fa

the other thing to remember is the u.k. is a services economy and these things are not that sensitive to changes in sterling. you have the problem with import costs and the desensitivity to the exchange rate. anna: looking at the politics of this, and you have to be mindful of that when working out your forecasts, parliament this week will be focused on the committee stage of brexit bill. we have three days of them trying to work out which amendments will be included in the final document they vote on on wednesday. does it get softer through this process? answers tos the these questions, but this is where the focus will be. >> i was surprised there was not more pushback in tehe commons. 2/3 of the commons are pro-eu. there was no additional information on a potential framework for migration between the u.k. and eu after brexit. whether or not we get a stronger push back when it comes to the upper house, they do not have a working majority there. i am not that optimistic. one thing i was hoping for was some gauge in what sor

over the next 24 months, we may see a slowdown in the u.k. economy. impact not only on the u.k. but elsewhere. that is why we have to be cautious. there is a huge amount of opportunities. we only hit 15% market share in europe. there are a massive amount of things that we continue to do. hopefully we are not going away. >> are you thinking about scrapping the u.k. domestic region? >> we are reviewing it. a lot of it depends on the open skies. >> this is something that we can do. it is relatively simple. if you look at our domestic u.k., we have three domestic routes on our network. it is a small part of our business. however, if we get close to the brexit and it seems this business is be want to stay in the, then we can, of course, open up a narrow certificate in the u.k. and operate under that. this is the contingency planning we are doing. >> neil solem there with bloomberg. let's check where markets are heading as we moved to the close. this is bloomberg. ♪ mark: live from london, the european close, with vonnie quinn. i'm mark barton. only one industry group rising today,

we should be proud in the u.k. pm may: my right honorable that we have some of the highest animal welfare standards in the world -- indeed, one of the highest scores for animal protection in the world and leaving the e.u. will not change this. i can assure my right honorable friend that we are committed to maintaining and, where possible, improving animal welfare in the u.k. it ensuring our industry is not put at a competitive disadvantage. >> thank you, mr. speaker. last week, russia decriminalized domestic violence committed against women and children. i trust the government will encourage russia to rethink this aggressive approach, which criminalizes domestic violence. they are ratifying the federal convention with russia and way should be placed on ending gender-based violence. pm may: can i first of all say that i am proud that in this country we have strengthened the law on domestic violence against women and girls. stepe this as a retrograde of the russian government. repealing existing legislation sends the

hird in the u.k.. progress we have made. we like the balance of having a strong consumer business, particularly in the u.k., where we have a citadel position, if you will. balanced with the wholesale london andnchored in new york, but with a global presence -- we like the balance that gives to our profile as a company. i think it is a strategic advantage for barclays. thecine: still with us, cohead of ethics and rates, and chris wheeler at atlantic equities. what you make of barclays and u.k. banks in general? they are dealing with brexit, but not doing a bad job. with thechris: barclays results today, we see continuing actions around the business. they are still against the capital targets, getting through the south african or african disposal. we saw this from hsbc earlier in the week. we saw this from credit suisse and deutsche. .t is a bit like hsbc we are seeing with barclays and a platform that maybe we'll bring in decent returns this year and next year. it has been a long haul. francine: i know

u.k. time. anna: coming up, we will go live to malta where eu leaders are gathering for an informal summit. manus: we will continue to preview today's jobs report, the first under president trump's tenure. parenthe snapchat company is filing for its ipo. this is bloomberg. ♪ manus: it is 2:20 p.m. friday afternoon in hong kong. quarter seng is down a of 1%. chinese stocks are lower today and the central bank is making more moves to tighten monetary policy. anna: the pboc raised the interest rate. chinese manufacturing pmi for january shows a fall from december showing the lowest reading since september. what is the pboc trying to do? with this little bit of tightening we are seeing? good morning. a surprise move. the pboc went straight into market this morning with the tightening and it was a wake-up call. they are still looking at a tightening narrative. this is not your typical benchmark. is tightening liquidity. it says that the pboc has reached a point where they are confident enough to st

. [♪] >> announcer: as the u.k. parliament votes to leave the european union, bangs and markets may bear the burden. how will that affect your [vo] quickbooks introduces rodney. he has a new business teaching lessons. rodney wanted to know how his business was doing... ...so he got quickbooks. it organizes all his accounts, so he knows where he stands. ahhh...that's a profit. way to grow, rodney! visit quickbooks.com. dtry align junior probiotic.th digestive balance? so she can have a fraction dominating... status updating... hello-yellow-belt kind of day. get 24/7 digestive support with align junior. the #1 doctor recommended probiotic brand, now for kids. trish: the british parliament voting this week to give theresa may the official power to ditch the european union. gary: we are back with bob diamond. you spend some time in london as ceo of barclays. what do you make of the brexit situation? are you surprised it hasn't had more an impact in terms of asset prices? >> actually, i am. i love the fact that i can vot

our u.k. banking reporting team, we are joined by stephen roach, this is bloomberg. ♪ ♪ francine: guiding the market, the fed president says there will be not surprises on rates while voting member patrick are says gradual increases are prudent. shaping policy, the credit administration announces a crackdown on undocumented immigrants and says the new version of the travel ban is due soon. reinvigorating the campaign, macron races residential pushimo london, today's announcement from centrist rival could do rail them. -- derail him. i am francine lacqua in london and tom keene is in new york. not a huge move in the markets but a move that means we need to watch out a little bit and german yields and these u.s. equities, new record highs, and then the political things. tom: the euro at 104, breaking down like my bowtie, weaker euro is what we have but no other story in the united states of america then the new interpretation of what to do with illegal immigrants, this will be across all of

at 9:30 u.k. time, we get jobs and wage data. mortgage application data out of the u.s.. 90 minutes later, and still on that side of the atlantic, we get inflation numbers, so new york time, that is 7:00, and at 8:30 a.m. is always difficult to deal with multiple times, but i think we can handle it. there is a function on the bloomberg which makes it very easy. i was surprised about that function, but it is there. always discovering. always discovering. matt: i will check it out. guy: i think you would be interested of all people. steve mnuchin has expressed his desire to strengthen economic ties with the u.k.. this is the phone call with the chancellor of the exchequer. till with us, kokou agbo bloua from socgen. andu: a lot of the data information we are getting today seems to be more of a tedious pass to get a proper agreement and on the two, the likelihood of a proper hard recs it to be much lower today than it was a few months ago -- hard brexit seems to be much lower today than it was a few months ago. guy: let us talk abou

out of the u.k., u.k. industrial production rising the 1.1% in december, manufacturing have been a better than estimated performance in the fourth quarter. it means it rose by .2% in the fourth quarter, rather than being unchanged as previously estimated. they will do little to change the view that the economy is very much led by the services and by the consumer, which could be under pressure as inflation rises, putting a squeeze on real income, potentially in 2017. 90 minutes into the trading day u.s.e how is it looking, abigail? higher, stocks trading the dow jones, s&p 500 and nasdaq higher. day,ow jones for a second above that, so really some nice games pass that psychological milestone. the s&p 500 and nasdaq up for a fourth day, so a bullish street for stocks. top sector on the days energy. the first day since february 1, best 30 days since china way 24. this on the news that opec achieved 90% compliance for supply cut deals and a shift from the past. there has been a history of making deals and not

. [♪] >> announcer: as the u.k. parliament votes to leave the european union, bangs and markets may bear the burden. how will that affect your ♪ across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. let us help grow your company's tomorrow - today at esd.ny.gov afoot and light-hearted i take to the open road. healthy, free, the world before me, the long brown path before me leading wherever i choose. the east and the west are mine. the north and the south are mine. all seems beautiful to me. trish: the british parliament voting this week to give theresa may the official power to ditch the european union. gary: we are back with bob diamond. you spend some time in london as ceo of barclays. what do you make of the brexit situation? are you surprised

that might be slightly worrying for some in the u.k.. what's interesting, powers will be taken away if the u.k. leaves. it hasn't really been specified which powers. that is soften the blow. northern ireland and scotland, they voted to remain. these are crucial points in this large document. >> here is some other headlines. in romania more protests have been taking place against the degrees -- decrees against corruption. the government's decrees could freeze dozens of officials jailed for corruption of the prime minister says he will press ahead with his decision. the russian president has arrived in budapest to meet the hungarian leader. he has been calling on the european union to lift sanctions on russia. sanctions travel bans, one u.s. tech giant is pleading for exceptions to that recent travel restriction. you have that story. >> talking trump again. microsoft has asked donald trump for an exemption to his contentious travel ban. the president has sent a proposal to the new administration requesting case-by-case reviews. corporation

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many u.k. equities have been boosted by the pounds fall since the june referendum has repatriated earnings rose in value. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm nejra cehic. this is bloomberg. francine: we getting some u.k. data. output largely beating estimates. this is industrial production. we were expecting 3.2%. we have 4%. manufacturing, it is 4%. construction output, we were expecting something negative and it is positive. all this for the month of december. there may be a little bit of seasonality. certainly all these figures, especially industrial output, posting a better water than first estimated. the pound of a touch on that. 1.2508. it could be that it is largely due to pound weakness, but certainly something the pro brexit will point to as making a success out of this country. my guest is one of europe's most influential politicians. he was elected to parliament at the age of 32. he's one of the most outspoken

is the u.k. spending 2% on defense? we're going to find out. michael fall lon, the u.k.'s secretary of diswill be joining us. ♪ tom: it is a beautiful washington, d.c. a beautiful early morning. coming up, jason furman. stanley fischer will be with us in the next hour. guy johnson is in london. i'm tom keene in washington. we say good morning. let's get to our first word news in new york. >> tom, guy, the interim chief to have securities and exchange commission may make it harder to open vexes into wall street wrong doing. looking to power to start investigations without getting approval from politically appointed commissioners. prup president trump is looking for someone to head the labor department. hisew pudsner has withdrawn nomination amid growing criticism from republicans. his ex-wife accused him of domestic abuse although she ater retracted her accusation. companies may be allowed to sell additional shares every 12-18 months. one analyst said the chinese market would be under too much liquidity pressure if secondary sales continue at the current pace. it is a th

where does the u.k. fall in that? where does the u.k. fall in that? sticking with the u.s., the review of the dodd-frank legislation, how positive in the short term is that for the u.s. economy and what are your longer-term thoughts on it? >> i'm not in sure that the economic benefit is as big as some suggest. it's not true that healthy u.s. businesses have failed to get loans. businesses that might justify a loan have been under scrutiny and maybe a repeal of dodd-frank will make it marginally easier, but i think the economic impact of her repeal of dodd-frank is not all that large. the big impacts on the banks. i think about a bank like goldman sachs or jpmorgan, before the crisis, there aspirations was 20% r.o.e.. since dodd-frank, they think nine is quite good. repeal of dodd-frank probably gets them up in the teens again. so the price may stay above one for the u.s. banks. it's a good thing for the banks because they will be able to make more money. it may be a bad thing long-term for the financial system if they overlap to get the high r.o.e. th

a former u.k. prime minister flames theresa may's brexit strategy, accusing her promising the undeliverable. is he right? more on that next. the interview with the ceo of starbucks as the company prepares to enter the italian market. we quiz howard schultz on his approach to taxes, a big issue for that company lately. and, it is billed as the world largest private equity venture capital event right here in berlin. we are at the international conference. all that and more to come. this is bloomberg. ♪ guy: welcome back. you're watching the european open. we are 14 minutes into equity market trading in europe. we have totive -- the dow has had 12 sessions, and we keep going. at the moment, a fairly flat open in the states, so it will be interesting to see how that one trades its way through. which stocks are moving the market? i can attest to that. let us go to nejra cehic and find out what is going on. pretty bigre seeing moves in individual stocks, as you can see, starting with this company. that

and the u.k. what we've seen over the last week is a shift away from that and towards the multiple political events in europe. i think that is catching the markets' attention. that is potentially where concerns are starting to rise. francine: so it is not a concern on brexit or what a trump administration will bring with it. simon: that is how we started the year, but now we're in the wait and see mode. we've not had the extremes of policy that perhaps people were thinking about. to me, we've seen a shift in focus. people have talked a little about perhaps what is happening on the currency side, but we've not seen the extremes of moves in the bond market we've seen perhaps back in december. francine: richard, has anything shifted in the markets? richard: i don't think it has. i think the markets are looking for the theme that is going to drive them forward this year. i think there's also uncertainty about the situation in the united states. president trump has taken all the limelight with his poli

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u.k. time. we will talk to the ceo here on daybreak. elon musk has said he still plans to deliver his mass-market electric sedan in july. the company said the model three electric sedan remains on schedule and reach production of 5000 units per week by the end of the year. reasserts his on the timing should help ease concerns over whether the company can overcome its long history of product delays as well as the impending departure of cfo jason wheeler who joined the company from google. handing on the day-to-day running of nissan. with renaultlds and mitsubishi motors. his longtime boss will focus on revamping struggling affiliate mitsubishi motors. that's your bloomberg business flash. for: thank you much everything you need to know about the corporate agenda. u.s. oil rose after an industry report showed u.s. stockpiles fell. u.s. government figures out today may show the first contraction this year. program, it of the said i was trying hard to find some assets on the move and oil is the only one that qualifies this morning, up .9% o

. [♪] >> announcer: as the u.k. parliament votes to leave the european union, bangs and markets may bear the burden. how will that affect your trish: the british parliament voting this week to give theresa may the official power to ditch the european union. gary: we are back with bob diamond. you spend some time in london as ceo of barclays. what do you make of the brexit situation? are you surprised it hasn't d more an impact in terms of asset prices? >> actually, i am. i love the fact that i can vote in the u.k. as well as the u.s. my family was there long enough that we had passports in the u.k. as well as the u.s. i voted to leave and i was wrong. but i have to say it's bench more calm post that decision than i would have expected. i think the financial services industry in london will be a dominant financial services industry, by think it will be smaller. i think the biggest beneficiary of that financial center is not paris or dublin. i think it's new york. the bismght s. firms doing bert than the european firm

mark: the u.k. has scheduled to vote on the article 50 hill which would give theresa may the authority to trigger the brexit process. one number talked about the future of the country's trade with the eu. >> the truth is that while britain is seeking the maximum possible access to the single market for goods and services, and while we hope the fact we have a trade deficit and important financial center will count in our favor, the government has chosen, and i respect this decision, not to make the economy the priority. mark: for the latest on the article 50 debate, let's go to westminster. former chancellor george osborne's comments highlight the division within parliament, within the conservative party itself on this very sensitive subject. what these rather acidic remarks illustrate is not so , ih the opposition to brexit think most mps see this as a done deal but to the direction be takingy seems to the brexit -- a hard brexit, leaving the single market. there's a great deal of uncertainty as to

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u.k. investor optimism toward u.s. equities is not unusually high, but that contrasts with boy and sentiments on the other side of the atlantic. is that because the u.k. investors can see the potential in the u.s., or because the investors are overestimating it? >> i think it's generally recognized by investors that u.s. equities are fairly rich in valuation. certainly more attractive valuations can be found elsewhere, in the eurozone for example, but also in the u.k. in some asian markets, emerging markets have become more buoyant. on the back half of the year, capital inflows, an encouraging picture there. it's not a surprise that investors in the u.k. are not focusing on the u.s. from a global and geopolitical perspective, they do, but not in terms of target investments. manus: let's pick up on the global theme. this is the msci all country world index. we're within a nip of an all-time high, but it is getting incredibly -- if you believe, if you could any value in it at all, potentiall