6 00 here in london. Lets get to the markets. We are without the volumes from the United States during yesterdays sessions. King date we had no trading in stocks or treasuries. We are getting back into those today. Msci asiapacific by 0. 4 . General picture in asia continues a positive one, continuing the best start since 2006. The dollar against the again , we saw the again being pushed up. Have halted five days of advances in the japanese currency partly because of what we heard from the japanese finance minister. Moves in fx markets are a problem. Price, over 70 a barrel, even though it is retreating. Fx is going to be a focus , what happens next with the pboc, that bank of japan, and the bank of korea. Traders have been spun into a whole new momentum. Record long positions on the euro. , two is a counterbalance sides to this market. The long positions are the longest we have seen. It is estonia focusing on bond purchases, they could end after september. Dramatize theover situation. The dollar has managed to turn it around for the first time in five days. It is coming back to that magical level of 120. Are we to bullish on the euro . We will discuss currencies in the next hour. We have the chairman of well pay. Anna heres Juliette Saly. Juliette well brent crude has o 70 for the first time in three years. Commodity rallies, supply cuts is running. Downrgan editing a wind that will start from the middle of the year. Russias government will turn on the fiscal taps in the biggest spending spree since Vladimir Putin last ran for reelection in 2012. The kremlin is considering a , they will provide a boost to spending on health care and education. Jinping told donald trump they should settle trade issues by opening markets. President xi made the comments during a phone conversation between the two leaders. Chinas central bank has boosted injections by open market for the most in two months. 42 billion on repurchase agreements on offset majorities. 93 billion is set to leave the Financial System as quarterly tax payments. The eu looks to remove south korea and United Arab Emirates a code of conduct recommended moving the countries on a great list. Grey list. Eufinance ministers approved the recommendation at a meeting next week. Global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. Having a look at markets here in asia, we are seeing a big rally in the hang seng index, up by 1. 3 in late trade. Stocks we have been watching in the session, the nikkei up by 1 , and the the hang seng up by 1. 1 . Australia close down by 0. 5 . We can see weakness coming from china airlines. We have crude oil at a threeyear high. Analysts are saying hedge funds are betting on a rally in crude prices that will hurt airlines. Tex are the front runner today. Are the front runner today. Techs are the front runner today. Juliette saly, live for us in singapore. This weekend marks President Trumps first year in office. Where we stand with his Campaign Promises and his positions globally. Todays theme is Foreign Policy. To the paris climate accord, the president has disrupted americans determine a seat. A look back on trumps first geopolitics,ct on we bring in Jodi Schneider in hong kong. The implications for trumps talktalk especially on north korea seems to have gone full circle. We seem back to a moment where there could be a potential for rapprochement. Jodi certainly the potential now. It has been a year where there has been a lot of confrontation, and the tension level particularly with north korea has risen steadily through the year. We start of the year with tough talks, then there were more sanctions. Every time there were sanctions the north would seem to respond. Kim would respond with missile tests and talk about his nuclear prowess. Then President Trump would respond, including in that very seminal speech to the united nations. And also and a lot of tweets, andalling him rocket man other more derogatory terms. It got personal. Now we are seeing things simmer down because the north and south have begun talking primarily over the olympics next month. It is still unclear if the u. S. Will enter into that. North korea is one of the prime Foreign Policy stories of President Trumps first year in office, and it has largely been a confrontational story. Anna how have trumps moves isolated the United States . I can think of Foreign Policy areas where europe is on a different page. Jodi thats right. Iran, anden both from it has come back again into that posture where the u. S. Is saying President Trump is giving an ultimatum to european countries, saying, if you dont make changes in the iran agreement, the u. S. May step away from that agreement, which would further isolate the United States. On the climate accord, the u. S. Alone, andto go it not remain with the european and other countries as heart of that. On issue after issue which has emboldened other leaders, including chinas leader to go into the space President Trump to lead by taking this america go it alone on so many foreignpolicy issues, from environment to the Nuclear Accord with iran. Schneider there with the latest on President Trumps Administration One year in. When we assess the highs and lows of the Trump Administration this shows not just the u. S. But european and emergingmarket stocks doing well during his presidency. Others say this was already underway when he took office. How much credit does he take for not standing in the way for the global rally in stocks . I think economy growth is spreading through the planet. You look at that fantastic indicators showing that the deflation we are away from the pressure where we have been trapped. Why we havereason enjoyed this global rally in making the longest you dontave anna credit trump. This is a global story . Christophe it is a global story. Great this policy decision we have now. Manus you call this the greatest achievement and fiscal policy anna you mentioned it three or four times, you are clearly impressed by it. Stronger didnt get a dollar. We have the relationship between this collapse and the dollar, and it has been a collapse, a does that continue, and b, it does not correlate to a lower dollar doesnt lead to a higher value on stocks. Conundrum. It is a have explanations behind this. The fact is maybe to mitigate my answer, i would say for the time being, Economic Growth dynamics within the eurozone compared to for theonomy, time being the dynamics are stronger for the eurozone. The impact is on the other hand on the macro picture it will take more time to defuse a high economy growth because we need a revival in the investment cycle. With Interest Rates as low as they have been, you dont think we have seen enough investment in corporate spending on Capital Expenditure . What difference will tax cuts make on that . If money is already cheap, does tax cuts move the dial . Chirstophe yes. Risk asrisk, and reward if you take risk in a project, you deserve the reward. Anna do we risk overheating . Goldman sachs is talking about for rate hikes. The architect of the tax cuts have no clue about the consequences on the other situation we could have, which could happen in case of stronger markets creating a revival of the phillips curve, and we could stimulate inflation. Manus if that phillips curve reawakens, do you join janus yield, 2. 6 terms of in the bond market, is that a market concern . Are you beginning to position for shorter bonds and higher yields . Chirstophe it should become a market concern, especially for the response of the Federal Reserve. If we have a revival of inflation, the fed could decide to put pressure on equity markets. The road is not so smooth ahead. We could experience a bumpier road ahead because we have to find a new balance between higher earnings growth, Strong Economy growth, and potentially higher inflation. We have to find a new balance point. Manus we have a lot more to get to. Christophe donay, head of Asset Allocation and macro research, picted wealth management. He stays with us. If you are getting to go to can find us on your digital device. Debate, could end after september. We will discuss what this means for markets. Manus later in the show will talk about oil trading at its highest close in three years. This is bloomberg. It is singapore, 2 19 in the afternoon. Stocks are rising on msci asiapacific. Weakness has boosted global growth. What is in store . Anna in the u. K. , the eu with job bill suggesting that rebels on the tory benches would not take this week as an opportunity to rebel. Reports will be open after the holiday break. A little bit later on, the Canadian Foreign Affairs Minister and her u. S. Counterpart wrecks tillerson tillersont rex will cohost let go to the business flash. Based is tencent seeking to raise funds at about 17 billion evaluation for that video streaming business. According to people familiar with the matter, in the same thatas instagram, valuation would be almost six level in march. To the has slumped lowest level since december as continued their selloff amid scrutiny from global regulators. According to people familiar with the matter, china, which begin targeting the industry last yearsesque letting its clampdown on cryptos currency trading. Meanwhile, the chairman of the european securities and markets authority has issued a fresh warning over digital currency. Important characteristics of currency are not there. Whichextremely volatile, undermines, it is also not broadly accepted. People investing in these should be prepared to lose all of their money. Who haveacts people less good intentions. There might be brought or money laundering. Juliette of former Credit Suisse banker accused of taking millions has told a court that his growing losses took a toll on his health. His experience at the bank began well but became stressful in 2007 as he took on more assets. Can face up to 10 years in prison if convicted. Ecb should adjust its policy guidance before the summer and should not have problems ending their asset purchases after september. That is according to governor accounting minister. Lets get back to our guest. Christophe donay, head of Asset Allocation and macro research, picted wealth management. See that markets are primed for this kind of commentary. It is as if the market is positioned to jump on the hawkish commentary out of the ecb. Chirstophe the market is ready for that, that is for sure. Compared to the strength and dynamics of economic cycles, the banks will become more tighter. Banks will remain friendly. Manus are we overly aggressive in our assumption . We have the pboc looking at their currency, the japanese, the ecb sending these messages. Have we overreached . This is the euro, these are record long positions. The heaviest long position on the euro ever. I wonder, are we setting ourselves up for a fall here . Chirstophe i wouldnt say that. We come from a situation very stressful for the eurozone because we were on the verge of a collapse of the eurozone up you years ago. Now we are shifting away from this dramatic scenario. Things are improving for the eurozone. Dont forget that the current surplus, the current balance is in surplus for the eurozone. This is probably a situation why the euro is so strong. What kind of threat does a strong euro pose to european corporates . Chirstophe it is a good question, but i would say the , for the time being, the dynamics come from domestic demand. The domestic demand dynamics are a negative force. Drivers andtic , how do inal exports want to take exposure, how do i want to lift exposure . Gambitook at that as a for the domestic play, how do you position domestically . Rstophe i would say first , weou look at the dynamics experience an economic recovery. Thank you very much. Christophe donay, head of Asset Allocation and macro research, picted wealth management. He stays with us on the program. U. K. Inflation could be at a turning point. We will discuss that next. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Anna this is bloomberg daybreak europe. We have halted a fiveday advance of the japanese currency. The finance minister had some things to say about moves in fx. Lets check in on the Broader Market action currency. With nejra cehic. That asiaking at pacific. Futures at a record. Hang said hang seng headed for a record. China gaining by 0. 2 . Japan up by 1 . Weakness in australia but overall gains in equities. Lets have a look at the chart of dollar yen. The yen is weakening against the dollar for the first time in six days. Dollaryen has fallen toward a level that is seen as a threshold for japans manufacturers. We are seeing a reversal after comments from the finance minister saying that sudden moves in the currency could be a concern. At a twoyear high against the dollar, but what this is showing is dollar u. N. Questions towards when the pboc intervenes. The blue line is where the pboc has been keeping the yuan steady. , dont youent crude love it when it is at exactly 70 . It has dropped just below now. Yesterday i showed you the relative strength index. Nejra cehic on the markets. Here it u. K. Inflation data could be at a turning point, with last months meeting expected to drop downwards. Is drop in annual rate because of airfares. The headline inflation looks like it is about to fall. What about the core . That is what the whole world tells us we have to focus on. We are expecting core inflation to fall as well, and for similar reasons. The Exchange Rate has a profound impact on core inflation as well as headline inflation. While headline inflation is marching downward, we expect core inflation to do the same over the next year. Anna this is with fx being worked through . Where will inflation be in a years time . How low doesnt get . We are expecting most of that movement down. Headline inflation will be 2019. 2. 1 in 1q headline inflation is important because it affects peoples demands for wages. That is what the bank of england cares about that. Manus to what extent will carney be believed . Relief does it need to sustain for some time . Carney keeps going on with the tradeoff above target inflation, and stabilizing output gdp. This will push down on headline inflation. Keep an eye on the employment rate. England guided bank of policy is unemployment rate, that has been static, 4. 3 since july. Murray, thank you. Lets continue the conversation. Where do you stand on the u. K. Inflation story . It has a different dynamic to the other inflation stories we have been talking about. Wages are stagnant in the u. K. Are you expecting this inflation number to come down . Chirstophe it is going the opposite direction of the rest of the global economy. We said we are shifting away, the dynamics and global economies are improving everywhere. Except in the u. K. Because of brexit. Painful, socially, and economically because brexit thates a situation destroyed the economy dynamics. The cost is one million jobs. Anna the economy is still growing though. Manus i take your point. A million jobs is no mean number of jobs with a hard brexit. I know growth has dropped, we are at the bottom of the g7. The economy has not nosedived. It is a slow grind. Is that what we will live through . Anna or does it collapse around we justh 29, or do slowly grind . Chirstophe effectively the slowdown is lower than expected because a sudden break and the u. K. Economy because of brexit. In the meantime, we have a progressive slowdown. We could have reached a threshold affect causing it deterioration in the u. K. Economy. Got that backdrop. Your base case is still a hard brexit . Chirstophe it is hard brexit or nothing. The british pound not good for growth, but it will help the bank of england. This is the push and the pope. This is everything that could help mark carney. Risk and reward on the pound. ,hirstophe regarding the boe Monetary Policy is going in the opposite direction. Idea isther hand, the as a balance point, what we expect is a progressive anna the bank of england is watching productivity. Comments talking about productivity risk being on the upside. Productivity. T of we have one period where got everybody excited. Chirstophe this is another conundrum. ,robably the corporate sector if you have deterioration, assisting corporate margins for higher productivity. It is entering an optimization phase. Manus i know you go to see clients, you come to see us on a regular basis, how are your it u. K. Clients doing . Withhey written riven are theyark riven with fear . You have clients remaining quiet because they are happy to live in london or the so you have two opposite kind of reactions of clients. Anna thank you very much. Christophe donay, head of Asset Allocation and macro research, picted wealth management. When you travel to work reach for your radio dial. It is available in your london area. Manus coming up, a chinese seeking a billion dollars in a new round of funding. Why it is attracting investors. Anna oil is trading at its highest in three years as Money Managers boost their bullish bets. This is bloomberg. Manus live shot of new york. 1 43 a. M. Drop in dollar good for global stocks. Since trumpa year took office and the United States. A recap ofng you everything that has gone on in that year this week. Juliette saly has the top stories in the business flash. Chinese tencent backed startup is seeking to raise funds at a 17 value 17 alien valuation. The platform in the same vein as instagram are periscope is targeting 1 billion of financing. That would be six times the level of when it raise funds in march. Bitcoin has slumped to its lowest level since december as could do currencies continue their selloff. According to people with familiar with the matter, china is escalating its clampdown on cryptocurrency trading, targeting Online Platforms and mobile apps. The chairman of the european Securities Authority has issued a fresh warning of digital currencies. A currency, but the characteristics of currencies are not there. It is an extremely volatile value which undermines its use as a currency. It is not broadly accepted. People are that are investing and it should be prepared to lose all their money and it. It attracts people who have less good intentions. Or money laundering. A former Credit Suisse banker accused of taking millions to cover trading losses has told a court that stress from the financial crisis and his losses to go toll on his health. He said his experience at the bank started well but became stressful in 2007 as he took on more assets. The 54yearold faces 10 years in prison if convicted. That is your business flash. Anna lets pick up on one of itories, tencent expands its Video Streaming Service in southeast asia. That is according to people familiar with the matter. The platform, similar to instagram, is targeting around 1 billion of financing. Were joined from beijing. What does this say about the rising valuation across the chinese Tech Industry . David chinese investors have become confident, we saw a spell in 2016 where a lot of these Companies Get the jitters. There were fears of a chinese slowdown. These have recovered in the broader economy. Numbers are coming out on the tech side, with alibaba and tencent rising rapidly. The Smaller Companies are going along for the ride. Of a halo effect is there from tencent . Does that help . It certainly does. A lot of these Technology Companies are keen to get tencent or alibaba on board because that means you have a bigger echo system you can plug into. Having tencent is one of your key backers means you are more likely get plugged into the echo system and get an increase in the number of users you have got. App over is this video others that are available . David this was a bit of a sleeper hit. Lowerer base come from cities, not beijing or shanghai. It do ace where people stunts. Style people show their lives and experiences. , keyconomy developers areas of growth are those cities. This is a way to target those users and get more growth. Anna thank you very much for your thoughts. If you are a bloomberg customer and you are about to leave for work you can turn on tv. You can catch up at any time. You can follow the charts, and implements the conversation. Lets turn our attention to the oil markets. Hedge funds have increased their bullish bets on crude to their highest in more than a decade. That after brent crude traded above 70 a barrel for the First Time Since december, 2014. Christophe donay is our guest host this morning. Head of Asset Allocation and macro research, picted wealth management. Average 60 told 65. Funds the dollar is down, what is driving it, demand, the dollar . What is the alpha in oil . It is a combination of all those things. It has come into focus how successful opec has been. We have seen that glut above the fiveyear average. According to some analysts, it is a most gone in the United States. And we have seen demand lift the Energy Complex and help opec clear that glut. For the moment opec is saying they will not jump on these higher prices and cut back. They will stick with the plan. Far, the rhetoric is constant that they will stick with the plan to keep these cuts in place for the whole of this year. Weve heard that from the uae. Weve heard that from russia so far this year. Some analysts are skeptical. A few banks say when they meet in june they may look to revise and work out some exit strategy, but so far they are sticking with it. When we are talking about leveld we look at the 70 that we are focused on, one of our columnists wrote that the decline in inventories and the United States, the drawdown, he says it is less clear outside of the United States. It has more to do with the baseline rising. How important is it that opec sticks with the plan with the nonopec agreement . Chirstophe it is a matter of balance between supply and demand. I was a demand is increasing. U. S. , as an example, the investment cycle has reactivated. Ist we should expect creating a balance between increasing demand. What we expect is price around 65 per barrel. Anna how quickly our analysts having to readjust their forecasts to keep pace with the movements . Goldman sachs is saying there is upside risk. Most people came into the year feeling bullish and optimistic about oil, but the strength and speed of the rally has taken people by surprise, and i am not sure people soected us to get to 70 quickly. Some people are bearish because balances looking to build, but we have had a cold winter that has boosted demand. Balances looking to we will see those forecasts rise, i think. Manus thank you very much. Lets talk about global Central Banks. They are a sharp reminder that Monetary Policy planning carries the potential to ruin markets. The bank of japan bond purchases may be strengthening recent hawkish comments from the ecb. One thing that struck me this the break evens, is breaking higher. This brings the broader conversation to, what happens next in the theater of Central Banks . Hurt policy moves from the bank of it could irk policy moves from the bank of japan. Chirstophe i think markets should be more focused on banks which are becoming more synchronized. At the time being, Central Banks are decent connived. We have the fed tightening. All Central Banks are converging toward the same policy. Here tightening Interest Rates that is more to what the part of doing, is that that hawkishness . Chirstophe Central Banks and the boj should begin to talk more about it. On the other hand, what we governments to take budget policy and fiscal. Olicy the u. S. Government took the , we should follow the u. S. Xample we could create a balance within creating ac policy participation. Is christophe donay, head of Asset Allocation and macro research, picted wealth management. Next, we will talk about the first year of the and what itstration means to global boardrooms. And where the u. K. Investment story is right now. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Manus good morning from bloombergs new european headquarters. Anna this is bloomberg daybreak europe, and these are todays top stories. On, asian stocks march higher containing their best start since 2006. Manus chinese video sharing startup is seeking valuation in the company at 17 billion. Manus welcome to the show. 7 00 a. M. In london. Asian equities had their best start to the years since 2006. That is carrying through. The dollar has managed to turn around. Weakness in the dollar should boost global stocks. Withst had a conversation christophe donay, head of Asset Allocation and macro research, picted wealth management, saying the tax changes in the United States is the best thing he has ever seen. Will sterling strength in any way stop the march of the ftse. The dax is up 18. 5 points at the moment. We are seeing momentum in these markets slightly higher. Data. Waiting for german anna were waiting for german inflation data. We got a statement from ep bp. The headline is that it is going 1. 7 billion dollar posttax nonoperating charged that is covered within the existing Financial Framework according to the company. The charges from significantly higher claims, and the continuing effect of the fifth circuits ruling that is in. Elation to a legal ruling keep an eye on bp. For the eu harmonized number, that is up by 1. 6 in line with the estimate. Theres nothing to see here with the german inflation story. We dont deviate. We got asian stocks marching higher, having their best start to the years since 2006. We see the japanese stock market doing nicely, closing near a high. We are back in business with the necessary volume today. We see a bit of a change in direction on the yen. Fx are a problem, that has people thinking are we going to see intervention on the boj around the currency. Dipping below the 70 mark. The momentum has been upwards. Manus what does that do to the bond market . From the pricing of oil, when does it hit the consumer and the expectations that are breaking out in japan . Inflation expectations are rising in japan. That could mean more Aggressive Movement from the bank of japan. , youre goingon to see inflation rise in japan up from 0. 5 . The fly in the global inflation ointment is india where it could truck. Where it could drop. You are seeing inflation back toward zero. It is that deflationary impulse coming to an end. You are seeing some relief from yesterdays selloff in the bond market. Bund market. Mr. Hansen at the ecb talking to that end, it is whether the rhetoric will come through from the various protagonists on the ecb bond buying program. When do we reset the language . Anna were seeing this around will talk about global themes of the one year of the Trump Administration. To be on the barclays board, and sits on a number of boards globally. What his board room take . s first get gonette brent crude has to 70 for the first time in three years. Rallies, theity view that opec will end its supply cuts early is spreading, with j. P. Morgan predicting a wind down starting in the middle of the year. Russias government is discussing a proposal to turn on the fiscal taps. People with three knowledge of the matter, the kremlin is considering a plan that will raise expenditure on transportation and rose by 30 over the next three years and provide a boost of 20 to spending in health care on health care and education. Xi jinping has told donald trump that the two countries should settle trade issues by opening markets and cooperation. President xi made the comments during a phone conversation. President xi called for joint efforts on talks on the korean peninsula. Chinas central bank has boosted injections by opening Market Operations to the most in two months to counter seasonal liquidity. 93 billion is set to leave the system. 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. We are seeing the stock market rally continue in asia. The regional index is at a record high. Have a look at the hang seng. Yesterday it broke a winning streak, but it is back with a vengeance and set to close at a record high. Of stocks we are watching in the region, chinese fundses, a lot of hedge a 36 bas purchase of stake in these companies its going to boost its bottom line. Anna Juliette Saly there live in singapore. This weekend marks Donald Trumps first year in the white house. He took office promising a full rework of u. S. Trade pacts. He has made progress in some areas, and less in others. , chairman, mike rake worldpay. When we look back on the first year of the Trump Administration, has it been everything you thought it would be . Mike im not sure i would put it like that. It has been a twitter year. The high rates of tax in the United States created dollar, and on the arlington buy back shares. That is a positive step to get a more sensible approach to Corporate Taxation. That has fiscal implications for the United States, but that is something that would be welcomed. Said the last guest Corporate Tax cuts are the greatest achievement in a decade in terms of economic policy. Assets,lling stock and but from a perspective of, where do i base myself, do you think this tax change has consequences for European Companies looking toward america now as perhaps an alternative destination . My personal view is that the American Market is so large and important that even if the taxes are high and regulation is intense, people are willing to invest in there. Reducing the tax rates levels the playing field. There are consequences, you see nonorgan eight you nonus organizations having to been written down. That is a noncash item. Anna were seeing higher Interest Rates, we talk about whether we will see three or four hikes from the Federal Reserve and the United States, you mentioned how companies have not been investing. Does the tax conversation change that . Do we see more investment globally and Capital Expenditure . Sayinge do seem to be the u. K. , are growing strongly. That has an impact on inflation. That may have an impact on bond markets. You can see increased Interest Rates. On the other hand, most people feel Interest Rates and a Central Banks are progressively we need to see in the united Infrastructure Investment is necessary. The funding to that will be important. Manus this time last year we were talking about trump. He has tweeted a lot, as you said. Settings been no war for the United States. Nafta, this is where it looks as though President Trump make dump this trade pact. Could trade wars be a bigger risk to the market . Mike absolutely. Aboutf us are worried protectionism. The nafta issue. All of these issues are important for global trade. It, you stand back from politically people are left behind by that process particularly in the west. Balancing that to maintain open markets is critically important. Anna you have been close to the banking sector. Barclays is where you were on the board. How do you look at the strategy of barclays and what they are trying to deliver now . It is two years since i left of barclays. It is very important for the u. K. We have a major bank that has Corporate Retail and investment capabilities. King a lot of progress has been made in the bank in terms of what they are trying to do. They have narrowed down. There is a lot of positives there, but it takes time and capital. There is uncertainty with litigation. Time for the share price to adjust. Shareholders sometimes lose patients. Patience. Will shareholders allow him a latitude of time . Mike i am biased on this. Think barclays has done a fantastic job. It is a tough and difficult job. They are doing the right things that are necessary. It does take time. I hope shareholders will respect that. Much, thank you very mike mike rake, chairman, worldpay. He stays with us. Is bloomberg daybreak europe. Lets get a quick check on the markets. We were without the u. S. Yesterday with Martin Luther king day. Yield year german bond opening without enormous amounts of movement. S p futures pointing a little higher. The euro, interesting moves happening in the markets. Yesterday we talked about dollar weakness, and the euro was in the ascendancy. Quickly is the ecb going to change its guidance . Then we see a retreat from that position in the market. Manus between friday and appreciatede euro against the dollar by nearly 2 . To a certain extent we are seeing a drawback. Itselflar has turned around for the first time in five days. Anna lets that a business flash from Juliette Saly. According to people with familiar with the matter, the platform in the same vein as instagram is targeting 1 billion of financing. That would be six times the level it managed when it last raised funds in march. Bitcoin has slumped to its lowest level since december as cryptocurrencies continue their selloff amid scrutiny from global regulators. According to people familiar with the matter, china is escalating its clampdown on the currency trading, targeting Online Platforms and mobile apps that offer exchange like services. That is your Bloomberg Business flash. Is that iske the chairman, worldpay. We are talking about the pound and this huge momentum of relief. Weve gone to the first hurdle before christmas. This is a Gathering Force between the spanish, the dutch, the italians, im talking about the trade deal that might be a plus. As abusiveoing to be as sterling markets suggest that the moment . Efis it all going to be as fusive as sterling . I think the potential costs and disruption and risks of brexit are higher than we thought. I think getting to the first stage to assess trade is a port. There is an expectation that hopefully common sense will prevail. My personal view, and many people in business believe we ought to try to find a way to stay in the Single Market because that will minimize disruption and assist investment, and have a proper period to negotiate. Anna do you see anybody in the u. K. Arguing for that . It is difficult to figure out what the labour party once. Mike i think there is a similarity in the view on dealing in a pragmatic way. Politicians should speak for themselves. The cbi is saying we need to stand back, having got to the stage where we can discuss trades, to have a proper discuss it discussion. Weight for the free it to happen with minimal damage. Financial services and banking seem to have gone up on the register. An abrupt u. K. Exit would be a shock, but i want to focus on one of his lines in the story. Where are we in this debate . Europeious people around , they do not want the risk. They do not want the global Financial Systemic risk as the barnier says no to passporting. How do you look at the landscape of Financial Services . Mike we had to understand that everyone around the world is frustrated and does not understand why we decided to leave the European Union. U. K. Is still important, a country of 65 Million People. Banking is extremely important. The wholesale market is extremely important. Many across the European Union sensiblee to see some resolutions to these issues. This is not just a question, if handled badly for negative implications, there will be costs whatever happens, but there are negative implications for the European Union and the world as a whole. Is it a hollow threat that there is a block to the deal . Mike no. There are still 400 40 Million People without us. Economies are growing. They have the ability to create some of the financial structures need, but it would be a loss to not retain the skills of london. Most people agree we will retain an important Financial Service in need, but it would be a london, the question is what will its role be . It is absolutely clear that legally we will not have the passport. Banks are making the contingency plans they need to to continue to trade post brexit. All this clamoring that went on in the british media about nigel farage, how destructive if at all destructive would another referendum be . Mike thats beyond my pay grade. Parliament voted, and that is our Democratic Institution that we should leave the European Union. They must make any decision over the cost of the implications. Parliament should take its responsibilities. This is an irreversible decision that has been made. The terms are becoming clearer day by day, and their costs to us from that, as opposed to the benefits that some believe exists. Is there anything that can be done to make the u. K. Mark competitive . Done to make the u. K. More competitive . We have low unemployment, low inflation, low wage economy. We have not had enough investment to deal with that. Absolutely if we leave the European Union, the need to improve our productivity becomes absolutely critical and urgent. Manus that comes through from one of the bank of england officials. Banks are responsible in part. Is that a reasonable . Ate encouraging investment the moment in the u. K. , we go from one of the fastestgrowing to one of the slowest growing, that is a reaction to uncertainty, inflation, political uncertainty. The sooner we can deal with that the better. Thank you so much for joining us. Mike rake, chairman, worldpay. For this do it program. The european open is next. We will talk to jim oneill later. This is bloomberg. Tuesday morning, good morning. Welcome to Bloomberg Markets the european open. Im guy johnson alongside matt miller. Castrate less than 30 minutes away. Trade less than 30 minutes away. We have conflicting commodities above 70rude closes a barrel for the first time in three years. Barclays warns iron ore could collapse to 50 a ton. What are the implications for global inflation . Asia marches
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