they say that it was a lot more than half a million euros. she was paid 800,000 euros. not just his wife. according to this week, he paid 84,000 euros of the taxpayers money to two of his children who he also hired as parliamentary assistants. genie: many people are focusing on this and they are wondering what kind of repercussions it will have on his residential campaign. he is the front runner. >> things are looking pretty bad for francoise the own -- francois fillon. his campaign has been shot with a lead bullet and he is falling to the ground. the damage is done in terms of public opinion, the flawless, irreproachable candidate -- that is how he came across -- turns out he is perhaps lying to the public. that marks the end of his story. the paper agrees with his analysis. you see the question, can he hold on? will he make it to the presidential election? if you look at that cartoon it is a really good one by their cartoonist. they depicted his campaign as a plane. this is similar to the plane that crashed into the hudson a couple of years back. it was just made into

it does not seem to be affecting the euro. the euro does not seem to be undervalued. in 2010-2011alued relative to what fundamentals would suggest. does not seem to be that case at the moment. i would argue the opposite. slightly overvalued. so the market is relatively sanguine about prospects for the euro going forward. matt: the currency market. do you think the currency market is the smart money here, ste phen, or do the spread tell the better story? think there is lots of themes to focus on at the moment, and much of this is that jesting the surprise, the political shocks we had last year, so that is coming into markets at the moment. the big one i think is still the u.s. and the dollar. are we going to get the fiscal stimulus coming through in the u.s.? what is the implications of any changes in trade policy? europe is more of a tail risk, not a base case scenario here. the market is really more focused on those two main factors in the u.s., donald trump and the dollar. let's kind of put this all together. you think the euro is not undervalued. the problem with t

>> we think you short euro at the moment against the dollar and the euro yen is another interesting hedge going against the election. i describe it as a hedge but the central case is that le pen won't win. th that could increase especially investors are advised to have a cautious approach down the road. euro/yen is attractive since the markets are short yen which makes long positions in the currency attractive. so put spreads look attractive in the case of euro/yen at the moment. whafr >> what are the risks to the upside then for the euro? inflation data picking up, we could get a more hawkish ecb than markets are pricing in, and if we do clear some of these political risks, if the risk scenarios do not pan out, we could see the euro go higher, is that a possibility even given the path of the dollar now? >> you argue that the reason the euro is trading, and the wider spread in the eurozone bond markets relative to germany is that the eurozone data is coming in strong. inflation is recovering, sentiment is at multi-year highs, and growth data is at the highest in several years. so from tha

that would put the measure at euros -- million compared to the estimate of 968 million euros. china has reported financial sector -- as the new banking regulator. retiree.eplace the this appointment was announced internally to staff earlier today. credit suisse a need to find new who to serve clients generate as much as $750 million of revenue as -- at its u.k. subsidiaries. it has been warned that losing access to european markets would , which have to 50% a revenue base of $5 million. banks struggle to quantify brexit risks to their business because so many -- so much is unknown. that is your bloomberg business flash. anna? juliet, thank you. investors have been pouring over steve mnuchin's comments. the details of the new administration's plans remain thin ahead of trump's address to congress next week. the french election rattles on with no clear outcome inside. joining us with some market insights, mark, bloombergs macro strategist. it to see you this friday. what are the big takeaways from what munition was saying? important insight into the timing around fiscal stimulus

not for the euro. the ecb is not intervening in the markets, floating exchange rate, not influenced anything on the side of the europeans. in china, the chinese central bank in the past certainly has contributed to weakening begin -- the yen, but in a while they have lost more than one billion exchange reserves to stabilize the yen. sorry, the yuan. -- the the opposite actions of the people's bank of china are going in the other direction, so one should really argumentsin bringing which are related and based on sound facts and not on fantasy. tom: as you know, the european financial system has late to the party of restructuring out of the financial crisis. we are going to get a cash call from unicredit. we are going to get a massive capital rates in dilution from deutsche bank. what will occur in deutsche bank when they dilute shares? what will occur to deutsche bank when they bring in this needed cash? otmar: i would like to comment on deutsche bank and unicredit. what is true on the one hand, europe

the euro. let us get a bloomberg first word news. saide: donald trump has the process for coming up for the replacement for the affordable care act could stretch into next year. a longer timeframe than previously indicated. the comment came during an interview with bill o'reilly. trump: we will be putting it in fairly soon. i would like to say by the -- by the end of the year, at least the rudiments. from applecompanies to zinga have filed an impassioned brief. ninthief was filed in the circuit court of appeals and emphasizes the importance of immigrants in the economy and the society. technology the industry's growing opposition to the policy. indonesians economy. -- indonesia's economy. president'sting the growth target of 7% amid a slowdown in china and commodity prices even after the central bank cut rates several times last year. the new england patriots have pulled out one of the nfl's greatest comebacks to win the 51st super bowl. they trailed the atlanta falcons by 25 point going into the fourth quarter but managed to -- to31

euro? hans: of course. i am not changing my opinion, last time we spoke there was the height about sterling depreciation and the eurosterling breaking, our view was eurosterling would break significantly lower. you showed the two-year sector of germany and you see that two-year shots are breaking ,ower, at the same time japanese investors are holding about 12% of the entire french monarch it, outstanding in the bond market. if you look at the volatility in the market segment, the japanese , they have seen significant losses in the fourth quarter because of what happening in the united states and they will reduce value at risk which means that they will sell euros and those positions. tom: take me to the derivative and the short-term paper space. we had this chart of francine just showed under german negative yields and the france germany spread, do you see in liquidity or a lack of trust in the short-term paper system of europe? it has a lothans: to do with position adjustment more than any

, euro gdp weakness, euro swissie weakness. this is a great way to look at a whole bunch of different pairs. you don't have to be based in one currency like you do with wcrs. fxc is one of my favorite screens look at currencies. guy: you almost get the feeling that -- stocks have been triggered here, or somebody has put a big program trade in. what you have seen as the euro going up against the pound, but not against the dollar, and it is also against the swiss franc, which is what you're looking against here. in some ways, that is a non-safety trade, which is interesting, that the swissie is a safe haven. it feels like someone has put something into the market here that is very specific to what they are trying to do. it will be interesting to see where the stocks were in the positioning's where. we will figure this out. let's get more details with nejra cehic. nejra: thanks. we are focusing heavily on the oil majors, namely bp, but also statoil and bnp paribas. that i want is you just highlight three stocks that may have slipp

my targets as far as euro-dollar are concerned, we could see the euro-dollar down into 95 into a parity type region. that's an area where i would look to buy the euro for the longer-term. i think it can certainly become undervalued. i'm not sure those valuation measures help us a great deal, but by the end of the trump residency, i think the euro will be back up in the 150 range and that's a good trade in the long-term. mark: how should we be positioned ahead of tomorrow's boe super thursday? some say bullish in the near term on inflation growth, that could be a boon for sterling? movement in sterling we have seen today reflects the market might be thinking that direction. the problem for me is any lushness is misplaced. i think the economy is going to suffer significantly, more significantly than the bank expects. i certainly don't think it is a done deal. therefore, i would say strength for now perhaps or at least in terms of reaction tomorrow. mark: what about political risk outside of the u.k.? being paidtention is to what's happening in france right now with the presidential electi

we will talk about the euro. this is my first chart. euro-dollar, clearly the blue line. the other line is italy, german. if you look at the height of the debt crisis, you would have seen the euro falling as bond yields rose. the right now the euro is rising. you see a lot of bond yields in the periphery rise. why this political risk reflected in the european single currency right now? marc: we've seen the political uncertainty about the elections in the netherlands, france and later this year in germany. people are concerned about the political. the euro is a different story. you can sell italian bonds and french bonds and you don't have to get out of the euro. if you sold u.s. treasuries, you would have to get out of the u.s. dollar. the u.s.-german spread is wide. i think the euro has been collecting higher since -- not so much since the beginning of this year, but since the federal reserve to raise interest rates in december. the upside correction is almost over. we might've peaked already and we are heading back down. we are about to sense off the recent high. i thin

weakness, but of course, a week euro is great -- a weak euro is great. is out- guy: toshiba with some of the details it is relating to the market. the rights down it is going to take in terms of the goodwill that is applied to the nuclear business, that write-down is 712.5 billion yen. this was a company that pivoted into the nuclear business, some would argue, just at the wrong moment. it is now affecting a nine-month net loss of ¥499.9 billion, so those details coming across the screen. we are now starting to get the details coming out. the vice-chairman is one that will certainly be leaving this business. we will not dwell on that for the moment. we will come back to that. talk about the ppp members and i have the metric on my wcrs screen. there is a danger that are actually, in an environment where the ecb says we are out for 2017, we are going to do what we are going to do and deliver upon it, the fed may end up being more hawkish than anticipated and the dollar may go from strength to strength. parity, there is plenty of calls out there as well. a

you are not back to the euro crisis. --we are not back to the euro crisis. there seems to be a fairly reasonable and rational caution in the markets if you look at the current spreads. i don't think you could say the markets are underpricing the risk, or they are getting too excited. david: talk about that spread with the peripherals. does that indicate we are not looking at a breakup of the e.u.? greg: it this point, as i said, are thatce --the odds le pen will not win. that whoever gets into the second round will beat her. but things can change that same things her way. it may leave a slightly different issue because if they do go to elections, the five-star momentous quite powerful. there is a chance they could emerge as the largest bloc in parliament. if italians were put to a vote to leave the euro, i am not sure at times would vote to leave. the pro-european sentiment in italy is not what it was 10, 15 years ago. that is a risk most of times would not take. jon: greg, great to have you with us. imagine trying to set monetary policy for fragmented polit

today, it is 315 billion euros. that is 185 billion euros of value added in the space of 13 months. there is still quite a distance to climb to this level, the highs of may 2008 when it was worth 500 and 9 billion -- $509 billion. the index is 46% below that. top to bottom, by the way. , the valueion disappear over the space of 7.5 years. that is bigger than the size of one exxon mobil. last january, $131 billion. since then, anglo-american has risen by 521%. below the may% 2008 record. minors,rrection of 5868. vonnie: you get to have a second go. we are being reminded. we can still see the charts. the twoalking about different forecasts. >> it has been a topic you're talking about all dan i want to bring it to your attention because we have larry fink who has arranged from percent to 2% and yields are advancing, 2.4%. of thenlap says the end bond rally will be at 3%. we have a ways to go until that point and a lot of indicators this week. we willoming out and see it continue to fluctuate. vonnie: that is amazing and i love it. 5911. do not forget we are monitoring the conference ta

euro pound 84.756. to donald trump repeated contacts with russian intelligence officials according to the new york times, citing former and current american officials, they say phone records and intercepted calls showed dialogue with senior russian intelligence officials in the year before the election. let's introduce my guest for the ,ext half hour, paul kazarian glad he is with us come he makes investment in underperforming global solutions, situations, and mark gilbert, we are glad to hear you. trump, what, donald is priced in at the moment? we expecting to kickstart the economy or continued this trend through fiscal adjustment, spending, and taxation reform? paul: a lot, the mercenary aspect of the market have looked at it and said he is going to be -- as henations --pu is in almost everything else he deals with. francine: already priced in which meets at the moment, do you believe he needs to exceed expectations to move markets? spirits?tart animal paul: he needs to exceed expectations, a lot has

their income were 319 million euros to my down 41% from a year earlier but above the 350 million euro analyst estimates. the french lender announced plans for an ipo of its car leasing business. at the same time its deputy ceo told bloomberg why he is not concerned about the so-called frexit. seehat is the likelihood to in france leaving the eurozone or europe, we consider that so remote that we do not consider it at all. of course, you could see some positivity -- volatility on the market and we have always considered that [indiscernible] confirmed. senate has to jeff sessions as attorney general after more than a day of contentious debate. 52-47 vote in the republican-controlled chambers followed 30 straight hours of debate. alabama senator was too close to president trump, democrats said, and would not protect voting and civil rights. countered sessions will put enforcing the law above pop does politics. donaldrsuch has called trump's criticism of the judiciary after -- ovary order that blocked the immigration ban "disheartening and demoralizing." richard blumenthal told reporters

the euro has gone up 8% since we started. it has worked since we started. —— 1%. 8% since we started. it has worked since we started. -- 1%. thank you. i appreciate you coming in. let us move on. we have talked about currencies and apple and all that, so currencies and apple and all that, so let us talk about oil now. the saudi 0il minister has told the bbc that 0pec‘s historic agreement with non—0pec members to cut oil output could see the market balance out byjuly this year. the deal was reached in december after two years of difficult negotiation in a bid to slow the oil price. speaking to our chief international correspondent lyse doucet, khalid al—falih said oil producers had been working hard to stabilise the markets. saudi arabia has always produced in response to market demand. even in the last two years, our market strategy was to sell to customers who requested shipments for the next month to be scheduled. so every barrel of oil that leaves saudi arabia's shores has been sent out at the request of a custom

i need to talk about -- i get a lot of my euro stuff -- my euro updates, euro analysis from you. number one, i saw there's an olive oil shortage, which we may talk about in the chairs. big price spike. >> i missed that. i'll read into it. >> that brings me to italy. >> yes. >> i'm worried again about italy. worried about grease again. you saw bannon went over and pence went over with sharply differing stories on whether the trump administration loves the whole model of the eu or they don't. almost like a good cop/bad cop. >> i think so far that's not gob down brilliantly in europe. the tones from what mr. pence said about nato and the eu over the weekend do differ not just from what mr. bannon has been saying but the last things that president trump said. europe would love to see the same message now echoed clearly by president trump. there is a summit -- >> i don't know what europe wants. i saw what people in the uk wanted. i want to know your prediction on le pen. i want to know. >> i think it's interesting to see the way the odds have narrowed. if you stand back and look at it

if you look at various euro pairs, euro-sterling is low. mark: why is the euro losing? richard: i think euro political risks are catching up what we have seen and the u.k. we have seen a massive fall in the pound since the brexit referendum but the european risks are coming to the fore. i think it is because of these political risks. mark: i was talking about an life earlier, the comment was about mr. harker and parker has spoken, three rate hikes this year. knewchard said, we already he was pretty hawkish. why was everyone jumping on the dollar bandwagon today, was that post holiday euphoria? richard: i think it was. i think risk have been reduced ahead of the long weekend and now that we have come through the other side you get a little bit of risk reinstatement. i think harker probably had a little bit to do with it but i do not see his comments as being a game changer for the march meeting. we still have probabilities far too low for that meeting. 43, 44, we are back at 38, what is going on? richard: i think it is partly to do with some of the harker comments. the m

it came in at 1.4 4 billion euros. the estimate was 1.6 3 billion euros. it was a resilient business. the q4 trading revenue rising. but the pretax profit is down by 36%. they are booking a few items as well. booking goodwill at their polish unit. restructuring costs in their belgium -- belgian and australian units. they are trying to get to or targeting levels. they are also talking about caustic calving and investment in technology. laying out the -- they are also anding about cost cutting investment in technology. missing estimates in the fourth quarter. manus: this is one of the big nordic oil companies out there. net loss in the fourth quarter. $40 million. taking on an impairment charge. fourth-quarter net loss for statoil. capital expenditure. ceo wants to bring it down. for exploration, spending about 1.5 billion euros -- $1.5 billion. the government is one of the biggest shareholders. positive be cash flow in 2017. those are the top line in the numbers. we will have a conversation exclusively with the statoil ceo. he will be joining the daybreak t

net income was 390 million euros, down 41% from a year earlier. themillion euro was estimate. at the same time, stephanie ceo told bloomberg why he's not concerned about a so-called brexit. >> [indiscernible] we consider that so remote, but you could see some volatility on ae market, and we have always contingency for that type of situation. >> boeing is said to be the front runner as singapore airlines closes in on it order for at least 35 wide-body aircraft. according to a person familiar with the merrier, wes -- of person familiar with the matter, it's supposed to take at least 19 of its planes. the aircraft will be valued at $13.8 billion, based on list prices before the discounts that are customary in the industry. singapore air and boeing declined to comment. british prime minister theresa may is a step closer to triggering brexit. that's as the uk's lower house of parliament gave approval to begin the formal process of leaving the eu boats-122 by 494 after lawmakers were promised a vote on a final deal to stave the conservative party. it now goes to the house of lords f

fixed income -- getting q4 equity trading at 428 million euros. the estimate was 559 euros. that looks a little like debt g. lighter than the estimate of 1.6 8 billion. a loss in the fourth quarter, 1.8 9 billion against estimated 1.3 2 billion. that net loss does look to be larger than had been estimated. this is a method that has been innovating thousands of dollars -- jobs. they paid a number of those. manus: go to top life go the editors are there. they're talking about the valuations of craig torres in deutsche bank rebounded from the lows. let's get to matt miller in frank first looking across the numbers with us. lighter.ing's look that is what bolsters the big five in the united states. is right. there are two important things to take away from this earnings report. the debt trading side, a little bit light, and the capital ratio, a little bit stronger than had been anticipated by analysts at resurveyed here at bloomberg news. that trading is going to be weaker. people will focus in on that. that's will a problem from john cryan. when we get the press conference, whi

that is therefore in line with the euro. you have parity turning euro towards the end of the year. >> we would like you to come back on, kind of give you a snapshot of all the research you put out. thank you very much. >>> abb shares sink iing -- not sure i would call it sinking, but lower 2%. they put an end to their near two-year decline on orders. >> abb delivered growth, which was a very, very important ambition that we had for a while. you might remember last time it was first quarter '15 we didn't grow. now we're back in. and we are putting now all the emphases to keep that and have a sustainable ambition to keep the order trend. >> how much visibility have you got for 2017 given that we have so much political risk going on. can you keep those large orders but also the base orders going? >> one thing we can keep is sustainable ambition to deliver orders. the world is full of uncertainties at the moment. we have volatility in every corner. it's something that we need to navigate through with a steady hand. our next leve

net income decreased to 183 million euros as loan-loss provisions surged to 290 million euros in the quarter. that was still above analyst estimates. we will be speaking to commerzbank's cfo. thyssenkrupp says fiscal first-quarter profit increased about 41% as steel prices recovered. earnings excluding one-time items rose to 329 million euros, beating estimates. germany's largest immigrant is trying to transform into a diversified industrial group and raise annual earnings to at least 2 billion euros. shares in nordstrom saw their biggest one-day gain in two months yesterday despite being lambasted on twitter by donald trump. the u.s. president slammed the company for dropping daughter yvonne got's brand -- ivanka's brand. that is the bloomberg business flash. francine. francine: the white house says donald trump has written to xi jinping. the u.s. president said he looks forward to a constructive relationship that benefits both countries but trump still hasn't set up a call with xi since he took office despite speaking on the phone with other world leaders. senate has confirmed jeff

euros. chire in a appointed the new head of the banking regulators. he'll replace someone who is etiring. it was announced earlier today. credit suisse may need to find new ways to help clients who generate as much as $750 million of revenue in the event of a hard brexit. losing access to european markets would endanger 10% to 15% of income at the two units which have a revenue base of as much as $500 billion. banks have strug told quantify brexit risk because so many unknowns around britain's future relationship with the inch u. that's your bloomberg business flash. anna: juliette, thank you. saudi's oil joint is worth enough to consume apple twice with some spare change left over. now they may have to set farl lot less. industry executive analysts and investors told bloomberg their analysis suggests aramco is worth no more than a half or maybe as little as a fifth of that amount. let's bring in will kennedy, editor of energies and ommodities for bloomberg news. good morning. so maybe not $

the euro is down 2.7%. there is a lot of schizophrenia in terms of conflicting ambitions and what america is saying. guy: this goes to the heart of the idea that the u.s. administration prefers bilateral. it does not like the multilateral rules-based system that operates. you can see it with nato, other international organizations as well, and i guess the e.u. gets lumped in with that concept. >> be careful what you wish for. the financial instability created by messing with the mind and the unity of europe is a very high-risk strategy. and awe are going to talk moment about the u.k. economy and i feel like we spent an awful lot of time talking about the u.k. in financial news, even though they have 25% less people than germany during what do you think about the state of the german economy right now? it does not look good if you have to rely on domestic consumption for germans, right? germans don't like to buy stuff. >> we are at the end of a very positive cycle right now. economy ise german doing what the

in england, they only get 25 to 26 euros per hour. the problem is, because of brexit, this unit is losing money yet again. it has been losing money for the past two decades, but if it had not been for the brexit vote and evaluation of the pound, they would have finally been able to claim a profit this year. because they have not, at least, that seems like one of the deciding factors, mary barra is looking to sell this units now. that is concern both politically and socially and that is why we are talking to the labor unions. guy. absolutely. still with us here in london, matt, william hobbs, head of investment strategy for barclays and joining us now on set as well, len mccluskey, general secretary of the union. good morning. >> good morning. guy: i had said this morning that maryborough was on -- that mary barra was on a charm offensive. nejra: i flew over to detroit last year to speak to the president of general motors. them, including that there had been no surprises. the channel of communication would be open to us, so it has come

euro-dollar. they are being covered, picked higher. five-year government notes in the united states of america again, the short positions. they are seeing a little bit of short covering all over that yellen speech yesterday, so the interest rate markets are definitely light. larry fink says he is confused. if he is confused, that does not help anybody, especially me. let us handed over to matt. matt: thanks very much, manus. i am delving in to what is going on in the banks and i'm looking at the euro stocks, bank index here, so you can see all of the 25 stocks are up, including the success -- including this company. we had a red hot headline that it was involved in subprime mortgages. biggestgricole, the gainer of the whole group, up 3.8% right now, even though the bank put out some operating tax profit before items number is that missed the estimates. the net number was better than street estimates and as a result , thatt and the tailwinds really pushing not only credit agricole, but all the bank

in the euro crisis 2011 and 2012, where we had terrible news, and the euro did not have -- did not go down that much. now is the real test. we have had tension around the smaller economies. we have had many rounds of discussion around greece, and the euro got less and less sensitive to the news from greece. but now we are having news from france and from italy. it is right at the core of the eurozone. if that newsbreak seen in the negative direction, it will have consequences. breaks in aews negative direction, it will have consequences. we have an insurance mechanism that holds the eurozone together. that in charge mechanism is resting on some degree of political consensus. if that political consensus breaks down, the insurance breaks down, we will have big problems. tom: jens nordvig, thank you so much. we will continue with abby joseph cohen and move to a focus on japan. this is great new technology. you can get my actual charts out or you can bring them right up here, bring up the previous segment. there is jens nordvig. . this is bloomberg. ♪ tom: good morning, everyone. sh

it's not hard to imagine the euro falling apart, is it? to go back to your question, let's imagine marine le pen becomes france's next president. she is very astute because she's not going to hold a referendum about belonging to the european union, because the french feel too much european to vote, to go for that. but what she will do is a referendum on the euro, and she's likely to win it. it's very unpopular in france? unpopular enough to tilt it to 51%. that would be the end. if it was on the euro in a number of european countries with greece being a possible example, germany, who knows? it's a false referendum because it is a kind of brexit referendum in the sense that if you have widespread discontent and people can think they can blame economic malaise on the euro and that will fix it, then of course they will vote against it. but that won't fix it. then you have to have politicians brave enough to say that, but that's rare. where does this leave britain? you could say that, in voting for brexit, the british have decided they will, a

if they do not make the 4200 euros, the company would pay the difference. another proposal on the table, beingalth of drivers with on contract with uber. stephen: european shares are trading up during this midpoint of the trading session. mining companies are doing well. french banks are trading down. the french bank is suffering after results coming from the lender. net profits jumped 15% last year but still missed expectations. the french bank also announced to invest 3 billion euros into its digital operations. investors are not impressed. shares are at 3.5% in paris. helpedrgeon oil prices bp to double its profits last year, less than expected, though. the company raise the amount of payy it will be expected to in capital investment this year of over one billion -- capital investment this year of $1 billion. 25%, of theped by company hornby, after problems with its chinese suppliers. facebook are making a drive to tackle fake news during the french election campaign. news -- first draft helping find and verify news about the election. stories theyg disp

euro, he said germany's excessive surplus is a sign the euro is grossly undervalued. this is the euro-dollar, up by 2.7%, it comes after it slumped 6.4% in the fourth quarter, the worst performance since the first quarter of 2015. measures thefour euro is undervalued between 9% and 25%, purchasing power showing the euro remains the most undervalued among its eat-in peers but analysts say headwinds for the euro include the benign inflation outlook and dovish central bank, and rising political risk, the biggest gainer in europe is although -- 7.7%, 10% morep truck orders in the fourth quarter, european demand increasing, a market drop in north america using adjusted operating profit in the quarter rose by 24% with the margin widening to 649% of sales versus -- 5.7% and a forecast for north american truck market to 215,000 vehicles. francine: as he was saying, germany and japan has struck back about currency claims by the donald administration, he said japan and china cap the yen and you want the value -- yuan devalued. merkelabe and angela denied the charges, this comes

that, to me, is the big challenge for swissie euro. on swissie dollar, i anticipate what happens with the u.s. economy affects the currency move, not the other way around. bothine: james and jean say with us. it europe survive a le pen presidency? we focus on france and the future of the single currency. we talked policy, politics, and europe, next. ♪ francine: let's get straight to the bloomberg first word news. here is nejra cehic. japan, andh korea, the u.s. have requested a you and security council meeting over north korea's ballistic missile launch. missileg launched a yesterday which traveled around 500 kilometers before splashing down in the sea of japan. japan's economy has grown for a fourth quarter in a row, driven by exports. -- growth through december, even while domestic consumption was flat and minimal wage increases constrained consumer spending. the figures underline how important it is for prime minister shinzo abe to ease trade tensions with the trump administration. swiss voters have rejected a government plan to r

in the euro? >> we do all kinds of stress tests, but as you have said, are bank is mainly dutch at the moment, 80% of operating income is from that netherlands. and of course the lower pound as result of brexit will influence precision of the dutch economy. we have stress tests on that. but an accident is not a scenario we expect -- manus: one quick question going back to the business. you have one of the biggest shipping books in europe. any chance of pairing that back? >> we feel confident about that book. there were a lot of questions about energy, shipping, commodities. in thehown last year second half the year that were much less -- there were much less credit provisions for the book. i think we have shown that we can manage that. anna: thank you so much for your time today, joining us on the line from amsterdam. about what'll talk janet yellen said so far and what else she will say this week. this is bloomberg. ♪ feds: chair yellen says the risk -- supports raising rates. she warns it is u

in the price of the euro. the greek two-year about 10% -- 9% today, 72.6 basis points, in the green, between creditors and greece, yields falling elsewhere, commodities. we will talk about oil later. raisensurer plans to dividend payout. fourth-quarter profit declined more than estimated 29% on higher claims for natural -- companiesey like this are struggling with subdued demand and struggling in lowes, amid a five years of claims from natural catastrophes at the same time, ultralow interest rates curbing investment returns and shares little changed today, the little change over the last 12 months. pandora today, shares down as much as 7%, the biggest decline since february last year, this is the danish charm bracelet maker, is forecast lower profitability this year, higher gold and silver prices making jewelry production more ebidtave, you get a -- significantly lower. sales growth will decelerate this year, gold is trading at near a three-month high. investors at their head around the new donald trump compan

let us talk about the euro this morning. excuse my spelling -- euro wakes up. very tight range in asia. getting liquidity coming through into london now and we are starting to see a breakout below that, so you are starting to see a little bit of weakness creeping into the single currency. trading north of 106.46. had a fascinating start given where treasuries are an inflation is. all of that, something to think about. angela merkel's lawmakers have insisted the imf needs to be part of greece's bailout out after a political ally suggested thepe move a high without fund. athens and its creditors are intensifying efforts ahead of monday's euro area finance ministers meeting in brussels. joining us is a man who knows something about that meeting, those kinds of meetings. he joins us from athens. he is the former greek finance minister. good morning to you. does europe need the imf to still be on board with this? yani: well, the berlin government does because it has to the christian democrats in particular that no greek program. once you're committed politically to

kate: the euro zone economy is improving. in february, manufacturing and service activity grew at its strongest rate since april 2011, according to the month emi survey. a reading above 50 indicates growth, and you can see there was an activity spike last month to 56 for this month. the weaker euro helped offset the boost from orders abroad. france outstripped germany with its highest pmi in nearly six years. the strong economic growth could play a role in france's upcoming presidential election. the candidates will be tuning in to see how the economy fares. the data helped boost european markets, the dax leading with gains over 1.1%. and just really boosted by strong results in the mining industry. the ftse was dragged down by the banking sector. tray,ergy sectors pushing oil prices have risen about 2% after opec said it expects numbers to continue to climb with that agreement to scale back output and encourage other oil producers to limit their pumps. today,eadlines unexpected economic and political influence. the bank earn

euro stronger. a 108 handle on euro, elevated oil. american 53 up to 54. if you would, the idea of the 12.40. a bullback in equities. eel let francine talk about sterling because she is in london. francine: there you go. i'm in london. a little disappointing news from europe. daimler. european stocks lower. crude 54.16. tom: busy economic day. we're focused on london. nejra cehic will join us on the bank of london here. we go to jobs data tomorrow. tomorrow we get that productivity. that quarterly view. let's go to what was almost going to be my chart of the year but g.d.p. went up. this is the productivity boom. productivity boom in the green. down we go with this reduced productive fifment it is worldwide but certainly we can sigh that the efficiency of the american economy beckons back to the 1980 double recession level. francine: over near the u.k. we're hearing from mark carney later on with new inflation forecasts and this is his problem. since we had the brexit vote the economy has been holding steady. by many measures it has been better than expect

to 1.3 5 billion euros. but this is dependent on the absence of security events. there are some comments about whether they will or will not be expanding into the u.k. manus: there are still cautious and do not have that outlook, that robust outlook. there, a cost-cutting story relative to easyjet. we will be speaking to the cfo, who joins us for the first interview of the day. 5.at is on "daybreak" at 6:4 what is going on in the markets? what we know is this. the question from the market is this, is dodd frank, is that what donald trump is going to do? so far, the etf, money has flowed out nearly 1/4 of $1 billion since the start of the year. it has been a tough start, but what you have seen is global financials actually rally. s&p financials have the best two on friday.ths the investment bank went up by 4.23%, adding nearly $10 billion in market capital valuation. anna: also, the rising rates environment has been a story we have been talking about for a long time. all country financials are up by 38% year

losing billions of euros. >> there are many uncertainties. as the old saying goes, when one door closes, another one opens. >> we are stronger, our figures are rising. the good opportunity. europebiggest market in is the u.k.. and the head of the union says the government must fight to protect 4500 jobs. we arere not prepared not prepared to accept a single job loss here in britain. in eastern say france. carmaker's a modernizing the facility will increase its production capacity by 50,000 vehicles per year and protect jobs on the pipes. the craft heinz food group is trying to acquire unilever in what would be one of the biggest mergers in corporate history. billion, that is an 18% premium on its current share price. they did say it fundamentally undervalued the global reach of its rant. kraft says it will continue to pursue the anglo dutch group, which owns dozens of household .ames shares soared nearly 13.5% in london. at theings us to a look markets, wall street has that away from its record highs earlier this week, continuing the momentum

let me bring up the euro trade weighted chart. the basic idea is we have a further depreciation in place. do you just assume a structural depreciation in the euro over the next two to five years? george: we also have quite a negative forecast on the euro, but the difference with the pound, our big driver is the u.s. side, your side of the atlantic. we are very heavily focused on who trump will appoint to the fed, the composition of the new fed. he has the ability to change that dramatically over the next two months. also focused on the corporate tax return -- tax reform plan. thingseurozone side, should go smoothly, allowing for a taper by the ecb that the drake -- the big drive for the euro going lower is the u.s. that will make it a lot more asymmetric, a greater euro downside. assuming that does not happen, a big driver will be the u.s. tom: we have stopped talking about negative interest rates. the german two year rolls over again. bring up the chart, this is the two's and attends in germany -- germany.in the continued roll ov

the new bid for the drugmaker is 58 euros per share, two euros higher than cinven's offer earlier this week. that values stada at 3.6 billion euros with the supervisory board meeting today to discuss a possible deal. >>> volkswagen delivered nearly half a million vehicles in january, down 5% from the previous year. an executive for the automaker said the decline was solely due to special effects in china and noted positive trends in europe and the u.s. where deliveries rose by 4% and 17% respectively. and segro's full-year profit fell to 426 million pounds from 686 million pounds in 2015. the industrial warehouse developer reported higher earnings per share. let's talk more about european equities with the director of research at wisdom tree. good morning, victor. what is the case for european equities now. we're seeing so much political risk. a lot of money flowing into u.s. equities. is there room in investors portfolios for european equities? >> sure there is. they offer great value proposition. their dividend yields compare favorably to the bond yields in europe. the euro has deval

it represents a 5000-6000 euro increase per pilot. the company says it will be staffing 40 new claims with employees who are not part of the labor agreement to make that some of the funds. the can strike over three years of cost the airline close to a half alien euros. the latest strike in november alone cost the flagship carrier $100 million although it still managed to post record profits of 1.7 billion euros last year. batons says it must continue with cost-cutting measures to compete with budget airline. and despite agreeing on the wage proposal several other labor issues remain, meaning or structure possible in the month ahead. kate: passengers flying to germany could still experience problems on thursday. ground crew's plan to strike as part of a separate, ongoing dispute about pay. airlines are warning of possible delays or cancellations on thursday. greece is seeing the light at the end of the tunnel on austerity. athens international creditors are deadlocked over the next tranche of bailout funds but hope to reach a deal befo

he will have to pay a fine of 512,000 euros. the judges in the case concluded up duke had deliberately set a structure, it was an related sports institute set up with his business partner. the court concluded they used fictitious accounting to embezzle public money and run events all over spain and matured -- madrid and valencia and embezzled money about to 6 million euros. anchor: i imagine the image of the spanish royal family has very much taken a battering as a result of this case. >> it certainly has. there was considerable damage. this investigation has gone on for about 10 years. this was one of the main reasons why the former king was forced to abdicate. such aularity fell to degree, partly because he was considered to have shielded his son and daughter from some of these allegations. now the current king has done his best to have a process of damage limitation. first of all, he has thrown out the former duke and duchess from public events with the royal family. he also stripped them of the limitedtle and has their role

the price for night is around 2300 euros. it looks like a normal, upscale hotel room and the dining room and lobby are also reminiscent of luxurious accommodations. but you would be hard-pressed to find the hotel's permanent address because it is inside a new train. the sleeper train of the west japan railway. our concept is a hotel like train traveling through japan's scenic beauty. starting in june, the twilight express will travel seven routes through central western japan. tickets through september are already sold out. despite the high prices. anchor: back over now to sarah. sarah: a quick reminder of the top stories before we go. malaysian authorities say the half-brother of the north korean leader was poisoned with a deadly nerve agent. kim jong-nam died after he was attacked by two women at the kuala lumpur airport last week. u.s. president donald trump has attacked the media again in an address to an annual gathering of conservative activists. he told them fake news was the enemy of the people. you are up-to-date on

it offers a three course meal with a glass of wine for 12.5 euros. food --own for copious it was named among france's finest. it came as a complete surprise. >> the local radio called and asked, did you know that you've received a star? what star? a star in the michelin guide. we just laughed. we thought it was a joke. >> it turned out it was not a joke, but a mistake. michelin at that we a star to the cafe instead of another restaurant with the same name. they got overwhelmed with booking calls. >> everything is homemade. has nothing in common with michelin star cuisine but is still a good place to remember. >> i don't regret coming here. the food is good. good value for the money. really. >> it is good. honestly come i don't think it deserves a star. says itther restaurant is not bothered by the error at all. >> they do that every day. we rather liked it. i wish the other restaurants all the best and i'm happy they got so much attention. >> the restaurant has invited the cafe staff to come and experience a genuine michelin star dinner. >> nothing w

greeks want to stay in the euro. the ecb and the people in control are not going to force anyone out. it is not like a nightclub bouncer kicking people out. anna: thank you. manus: mike, thank you very much. mike bell from j.p. morgan. stocks get a little bit frisky on the upside this morning. anna: nick clegg is on a little later. this is bloomberg. ♪ [ alarm clock beeping ] weather. ♪ [ laughter ] cartoons. wait for it. [ cat screech ] [ laughter ] ♪ [ screaming ] [ laughter ] make everyday awesome with the power of xfinity x1... hi grandma! and the fastest internet. [ girl screaming ] [ laughter ] i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. com

the eight euro up. .- the euro up alix: a record low continuing today. negative almost 89 basis points. gold catching a bit of a bid up why five dollars. highest level since july, 2015. there -- at of a fee little bit of safety there. >> the president is going to address congress on tuesday. today, we heard from secretary mnuchin. he will have the tax bill through, he hopes, by august. joining us now, head of the global fixed income ethics and commodities group. i love your title. left in theime segment? we will see. bob is also with us. need tolk about what we hear, want to hear from the president. frames want to hear tom -- time frames. what are the deliverable dates? how is he going to prioritize? there is a lot talked about in infrastructure spend. they lookwhat will like, what will they mean for corporations, individuals? what will the impact be? there are things we need prioritized and we need deliverable dates. we are starting to hear some of that today. : how much detail to the markets need to hear? bob: they will not give him a pass at this. new