The 737 max grouting sends the company to its biggest defeat in with airbus. Manus warm welcome to bloomberg daybreak europe. Noouple of things about tariffs being rolled back and may be a ban on u. S. Companies selling their goods to huawei. There is more upside. According to jp morgan, 13 upside. There arent any bubbles here. There is 13 that left in the s p tank after the close of business on monday. You will not see a bubble until 3700, which they see possibly in the second half of the year. It is a great debate about whether these valuations are stretched or whether there is more miles in the tank. I know we have a cracking guest lineup to answer the question. Nejra a yearlong accelerated rally that jp morgan want to see. The recent rally has been led by the mega caps. The small caps have been underperforming. The putcall ratio has been dropping. Does that show that sentiment has got overextended . Most pessimistic in six months. In a lot of different indicators to look at and also asking the question again that we were asking yesterday when we heard from howard marks whether this is simply a liquidity driven rally or one simply based on fundamentals. Manus we showed that chart of the fed Balance Sheet and the s p 500. Irked, provoked. The yuan has broken a trade trend. What you have seen is a little bit of a rally in the yuan. We have a nice eight day chart which shows that first turnaround in a number of sessions. You cannot over read the strength of the yuan as being some big global picture. We dont have it, so lets just move along and talk about the s p 500. Not a problem. The s p 500 irked a little bit. The Huawei Technology story. The role back in tariffs, what do you need to deliver an upside . Inventories in the oil market were higher than the market expected. Nejra in terms of the global risk off, you see asian equities weaker for the first time in five sessions. Looking at dollaryen, the yen this week weakened past 1. For forfirst time10 1. 10 the first time in eight months. We touched 15 earlier this week, which is the highest since may. The last time we got to positive territory for the 10 year bun d yield. Yesterday, tuesday, there was an Options Market bet aiming at profiting from a move to 0 in yields. Futures at the moment our study. We are getting a lot of cash are steady. Getting back to our top story, the u. S. Tariffs on china staying put. Bloomberg sources say the Trump Administration is not likely to remove existing levees until after novembers president ial election. And he moved to do so will be contingent on beijing any move to do so will be contingent on beijings compliance. These tariffs will stay in place until there is a phase two. If the president gets a phase two quickly, he will consider releasing tariffs as part of the phase two. If not, there wont be any tariff relief. It has nothing to do with the election or anything else. Nejra joining us now is lucy macdonald, cio of Global Equities at Allianz Global Investors, and jinny yan, chief global economist at Icbc Standard Bank. Should we be at all surprised by this given the relationship between the u. S. And china . Lucy i think not at all. Everyone has anticipated that phase one of this a deal is probably the simplest of all the phases to come. Clearly, what we have seen is the pace and pressures on china will be kept. What this really was was an agreement to disagree. I think this kind of temporary truce is only really a handshake opportunity. Really, in terms of the disputes between the two sides, nothing really has been resolved and that is quite clear. Manus good morning. Lucy, let me bring you into the conversation. A lot of people would say we have traveled and arrived. We have had this rocking and rolling of markets since before christmas. Have you taken any more major risk predicated on phase one happening and an assumption that we do get a deal of substance this year . Shortterm, it is all in the price. We have a pretty good idea about what is going to be published today. Much as has been expected, so the two big drivers for the market, as you know, over the last few months have been the continuation of support from liquidity, the slightly better economic environment and this trade. That seems to us to be pretty well priced in. In, isif it is priced there risk more to the downside in terms of wanting to put some protection if, for example, the tariffs remaining in place have any more negative impact on china or the Global Economy . Lucy yes, unless you think there are other shortterm stimuli to come along. Taking a little bit of beta off the rally seems entirely logical. Manus i wrote down here this morning as i was reading through the stories, this could either be one of three different issues. Maximum pressure as you go into phase two, not rolling back the tariffs. Keeping a comfortable level of or just a big election banner for trump. Do you think it is a trifecta or something of the different something a little bit different . Jinny i think it is a mixture of all of what you said. The u. S. Has pinpointed where it might hurt china this year. 2020 is a hugely important year for china. It needs to double gdp and it has set that target already. It is going to be very difficult in the face of a slowing economy. We will get that gdp data. Q4 is likely to have slowed once again. This year is a tremendous opportunity, i guess, if one could call it that, for the u. S. To put pressure on china, and more pressure than perform than before perhaps. Nejra the message we got from the u. S. Administration is that this is nothing to do with the election. China a doesnt does china buy that . Jinny the reelection clearly is one of the factors. Probably not the only factor influencing how much pressure the u. S. Puts on china. At the current time, we are facing more sort of geopolitical pressures. I think for the u. S. , it is not just about how the Current Situation or sentiment is impacting on markets, but also how the global uncertainties unravel in the year ahead. Are more atues heart for china compared to the u. S. Manus the suppose it issue of disappointment this morning. We will talk more about yuan in a moment. We were almost expecting a movement on Interest Rates today from the pboc to tie together the idea of a growth rate getting back above 6 for china. Do you expect much more action and aggressive action from pboc this year . Lucy we expect it to remain supportive. But not that aggressive, because at the same time, we know that they are trying to improve the quality of the Balance Sheet of the country. It is difficult to do that if you are pumping liquidity too dramatically. Manus ok. Hold those thoughts. Lucy macdonald from Allianz Global Investors and jinny yan, chief china economist at Icbc Standard Bank stays with us. Lets get you up to speed with the first word news. The Trump Administration plans to restrict the medias ability to preprepare economic stories. At the moment, the u. S. Hosts a socalled where journalists could receive data at a time in a secure room, that way they can publish the stories right on schedule. Now, the administration is working on removing the computers from the room, making it more difficult to get the stories out on time. Europe is turning up the heat on iran in a bid to save a nuclear deal. Germany, france, the u. K. Have triggered formal actions against tehran for breaching restrictions on uranium enrichment. The eu has been struggling to hold a deal together since the u. S. Pulled out 20 months ago. Trading s biggest and it 2019 on a high note ended 2019 on a high note. Citigroup debt traders posted junk that was more than double expectations. The surge at both firms helps them notch up the biggest trading years since 2016. Boeing has lost the title of the Worlds Largest playmaker. The grounding of the 737 max has led to the companys biggest defeat and its 45 year rivalry with airbus. Deliveries tumbled to just 380 just last year, less than half of airbus. The european playmakers victories will was was its first since 2011 and only ins th since 1984. Global news 24 hours a day, onair and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Nejra thank you so much. Later on today, we speak to dallas fed president robert kaplan. He suggested a bit of volatility in Financial Markets resulting from geopolitical tensions might not be a bad thing. Dont miss that conversation at 3 30 p. M. London time. Manus coming up, we look at the yuans strength. This is bloomberg. Nejra this is bloomberg daybreak europe. Manus i am manus cranny in dubai. ,ets stay with the china because the central bank added liquidity. To help offset that squeeze in the year ahead, that is really for the Lunar New Year ahead holiday. Edging a, the yuan little bit lower today as we started the conversation. There is a chart that matters. Dani burger, wind me up. Dani i would love to. Over the past few days, it is clear that the yuan bears have been in full retreat. There has been a clear change in positioning. Over the past two days, volume in the onshore currency has spiked about 40 billion. That happened two days in a row. Last year, that level was only surpassed three times. With china getting its removal of the tag of a currency manipulator by the u. S. , it is clear that a lot of bears had to reevaluate where they stood. We saw this reflected in the Options Market. Even though there is a lot of movement around the yuan, this does not necessarily mean that strengthening is the track it will be on. For now, it is clear some traders had to make some big calls and that is reflected in the volume. Manus . Tracking theurger data on positioning. Lets stick with the theme on the yuan. Not everybody thinks the recent strength should be viewed as an economic indicator. The chief Economic Advisor of allianz says the currency strength is limited in what it says about the chinese economy and the rest of the world. We will be watching out for that more data that a little bit more data on friday. Lucy macdonald is with Allianz Global Investors. Jinny yans chief china economist over at icbc. Would a good combination to have you both here. Let me bring it to you. Dont read too much into this. I have written down, this is a consolidation in the yuan, not a trade tantrum this morning. For you, what is the most important outcome from the strengthening of the yuan for an equity portfolio . Perspective, it is just that it is no longer a risk on the tail risk, but i do think the timing of this strength around just ahead of deals does really point to his argument being right that it is managing to show that you are not managing to remove that status and allow the talks to have that favorable conclusion. So i think that is the main conclusion. Isra one thing he says that we should not count on the yuan as an economic predictor for china and the rest of the world. What are you looking at as an economic predictor . What sort of a form is it going to take . Jinny i think fiscal. Any sort of very aggressive Monetary Policy easing is unlikely from china. That tone has been set since the end of last year. Fiscal, we have already seen it, a lot of tax cuts. Also, special debt infrastructure has been issued. In the First Quarter already, we have seen nearly a trillion of quota. I think this is supportive of a going down the line and really to meet that growth target for this year. Manus you mentioned the magic word of infrastructure. We will dig deeper into that perhaps with lucy on the trade front. Lucy, can i ask you, the appreciation in the yuan, we looked at a couple of different markets, but this is the luxury goods in europe. I dont know whether we are correlating things for the sake of it. This is the yuan and luxury goods trade. 7 you think germany by exports, 7 their economy to china. If you look at luxury goods, already tempted into these types of sectors on the yuans moves . Lucy well, we do have exposure to the sector, but the downward pressure from hong kong is still not over. Areas, some luxury shops are being closed, leases are not being renewed. It is still having an impact. It is not finished yet. So we need to bear that in mind. However, most of the growth is now coming through from china. I think we cannot forget hong kong. Nejra you have added to chinese equities as well as the end of last year. And how that based on meaningfully did you added to the . Them . Lucy well, because of the tensions we have had on trade, there have been more interesting opportunities opening up in domestic chinese equities, and specifically, for those areas where there is longterm structural growth in consumption. For us, that presented an opportunity, so we have added a couple of names, education, restaurants and leisure. Where we can see wellrun companies which have got good longterm structural opportunities, but were trading at interesting levels because of the trade tensions. Manus can i just ask you one final question . We debate quite a lot about the deleveraging and the kind of stimulus that push and pull within china. You mentioned stimulus. I just wondered to what extent we will see infrastructure at play in china this year from your perspective as ayou mentio . Jinny i think the key word for china this year will still be stable. While you ares trying to put a floor on or a limit on the amount of slow down, you are also not trying to over stimulate to the extent that you will start to create over leverage once again. Leveraging will still happen, but to the extent that the growth of leverage that matters, not really the overall amount of leverage. Overall amount of leverage, to be frank, is pretty high still. I think there is a fine balance between trying to maintain the level growth level of growth currently. The key where he is about consumption growth worry is about consumption growth. It is very difficult to see where that momentum will be this year. Manus ok. ,hank you very much, jinny yan chief china economist at Icbc Standard Bank. Lucy macdonald from Allianz Global Investors adding to the risk pile there. Coming up, record breaker. Jp morgan posted the best year for any u. S. Bank in history. Next up, Goldman Sachs reports today. No pressure. We take a closer look at the u. S. Financials. This is bloomberg. Manus this is bloomberg daybreak europe. I am manus cranny in dubai. Nejra staying with the u. S. Banks, jp morgans record performance in fixed income surpassed revenue estimates by a billion. 1 this came as a citigroups debt traders posted a jump of more than double what analysts were predicting. Today, it is a turn of Goldman Sachs to report. The obvious question is, is this as good as it gets . Executives on the call with the jp morgan said no. What is your take . Investors, wes dont put a very high multiple on it. The investors themselves dont have the visibility. They may think it is going to get better but they want to know. That is slightly different than other parts of business. We know that the end of last year, volumes went up because there was more conviction in markets as we got some better visibility on trade and a little bit of invisibility on the stability of Economic Growth. So that gave some more confidence in markets. There was more trading. We do not know what that will be in six months time. Manus lucy, in terms of differentiating between the banks, if you have got to out locate or two financials, if you have got to have financial exposure, how do you do that in 2020 . What is the best way to have financials exposure . Reallyeebased and keeping quite a certain amount of concern about spreads. There wasnt some opening up of spreads towards the end of last year there was some opening up of spreads toward the end of last year. Interest rates are low. We believe they will say low. Therefore, as i say, feebased, niche, you know, we like some alternative Asset Managers, we like some areas of reinsurance. But it is very specific. Banking, weerall really do not have much exposure to its. Nejra also what we learned from j. P. Morgan and citigroup is both expected one rate cut from the fed in 2020. Is that in line with your expectation . Do you expect further pressure on Interest Income . Lucy yes. We think Interest Rates this year will really not go very far so there may be one cut that will be small. Im not sure if it will make an actual difference to these businesses in terms of profitability. These companies surprising on the upside because they are still an important part of markets overall. But for us, their longterm growth is limited. Lucy stays with us. We have a little more to do. S p 500 index banks up nearly 26 on the year. It was good volatility. We will continue the debate. Iran dominates the final democratic debate before the iowa caucuses. The encounter will likely be remembered for an exchange between sanders and warren over whether a woman can win the election. More on the story. This is bloomberg. Nejra good morning from the city of london. We are live from dubai. This is bloomberg daybreak europe. These are todays top stories. Manus down day for global stocks. The u. S. Is expected to maintain china tariffs until after novembers election. Steve mnuchin says theres no Side Agreement ahead of the phase one signing today. Sachs, it isman their turn to report after j. P. Morgan delivered the best results in u. S. Banking history. In europe, ubs Wealth Management will embark on a sweeping round of job cuts. The crown flips. Boeing uses loses the title of the Worlds Largest playmaker grounding. 737 nejra asian equities having their first down day and five. U. S. And european futures are subdued. The 10 year treasury yield is steady after dropping three basis points yesterday. We get all the Market Action from around the world, manus. Manus we do indeed. Two key issues for the markets to debate. A rate cut from china. Story to struggle with. Juliette saly in singapore. Dani burger in london. Can i take it to you first of all, jewels . In terms of the Global Economy, we will focus in on south korea. How is the outlook . Juliette a few green shoots coming through today in terms of the jobs market. We did see unemployment pick up slightly to 3. 8 in december. When you look at the overall employment in south korea, it hit a record. Climbing to 61. 3 . This offers the president evidence that he is delivering on his pledge to provide more jobs ahead of the parliamentary election in april. The growth has relied on our time elderly workers entering the workforce. It masks the persistent losses you are seeing in retail and manufacturing. Bloomberg economics saying todays data shows that the jobs market in south korea is buoyant but all boats are not quite lifted. Nejra thank you so much. We were looking at rising bond yields in india on concerns around inflation, stagflation is the word. What are the dynamics today in the bond and equity markets . Hopefully we dont reach that stage. Good morning to you. The bond markets have cooled off a little bit. Equity markets are under pressure. Banks are correcting in the session today, leading the markets down. Not too many people would have thought that ahead of this trade deal, there would be large positions being taken. The news on the street is that there are large positions taken on the banking get we are watching for the next to see if they are recovering. The currency is flat. Equity markets are under pressure. Manus thank you. Lets finish it off with you, dani. A rally in junk bonds. Which hass single b been on fire. The yield of them, the spread has fallen to the lowest since 2007. The yield differential between the single bees and government bonds is something that like 295 basis points. That is not something we have seen in quite some time. He continues to shrink. We have a lot of big corporations borrowing in this space. It is rated one above the triple cs. Companies like sprint taking out debt in this area. It has been very attractive to investors, according to j. P. Morgan. This is where you want to be over Higher Quality brethren in the junk space. Valuations are still attractive here. Nejra thank you so much. Lets get to the first word news with one half in hong kong. U. S. Tariffs on china are staying put for now. The Trump Administration is likely to keep them in place until after the president ial election. Any relief is also contingent on beijings compliance. Treasury secretary Stephen Mnuchin moving the tariffs is contingent on the next date of the trade scale. These terms will stay in place until theres a phase two. If the president gets one quickly, he will consider releasing tariffs. If not, there wont be any tariff relief. It has nothing to do with the election or anything else. Due tou. S. And china are sign their trade deal today. The u. S. House is set to vote today on sending trumps articles of impeachment to the senate. Nancy pelosi will hold a News Conference at 10 00 in washington and will offer more details. The next step is the president s trial in the senate. The qualifying round began today for the us trillion open tennis tournament. The host city melbourne is enduring some of the worst air quality in the world. Australia is bushfires have led some to question playing tennis in such bad conditions. The germanic organizers tournament organizers say they are monitoring the situation. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Nejra thank you. The Trump Administration may restrict the media from preparing advance stories on market moving data such as the payroll numbers. The Labor Department hosts lockups were journalists receive the data in a secure room, right stories on computers disconnected from the internet, and only transmit them at the official release time. The u. S. May remove those. Manus youve got the democratic primaries, the other big shakeup. Iran dominated the final debate before the iowa caucuses. A smaller field of six made their case to be commanderinchief less than two weeks after the killing of a top iranian general. The encounter will likely be remembered for an exchange between Bernie Sanders and Elizabeth Warren over whether a woman can win the election. Can a woman be beat donald trump . Look at the men on the stage. Collectively, they have lost 10 elections. [laughter] the only people on the state to have one every single election that they have been in our the women. Amy and me. [applause] manus what a wonderful moment. This is what donald trump and the media wants. Anybody who knows me knows that it is incomprehensible that i would think that a woman cannot be president of the united states. Manus there you go. Lets see. Lets bring it to you. What a great line, 10 people on the stage, 10 men have lost the elections in the past. What is the biggest risk as we hit Election Year . Early toaid, far too protect myself a risk. What are you doing when we think about the 2020 election . Upit is too early to come with any scenarios or conclusions. What we are doing is looking and areng when the risks forward, when they are likely to be enacted or whether they are which are real but have a small probability of occurring, they could offer opportunities. Within health care, that is one where we think the universal provision of health care is a very small likelihood, whoever wins the election. It has been a big fear towards the Health Care Sector and being priced into some stocks. We think that is probably an opportunity. Thats it. Seeing stocks and making assessment of whether that is rational. Nejra in terms of what is priced into stocks, we sit at the start of 2020 asking questions like, are we in a bubble . Has the melt up gone too far . We were talking about that the recent rally has been met by megacaps. Small caps have been underperforming. You say this is a classic late cycle environment. Where do you find the best opportunities when you dont see that much breadth in the market . U. S. , there are still areas Like Health Care that look to us as if there is opportunity. Within cyclical areas, although they have rebounded, there is still more upside. Even with technology, which is the only sector to beat last year, there are still areas which are not looking valued. As far as concerns over valuation, it is not a huge concern when you look at multiples and the valuation against other opportunities. There is still a yield inequities of over 2 . You are still seeing some growth. Results, weto those will see how much growth we get. There were some. Manus that is what state street suggested to me this morning. You might be paying up on some multiples that maybe look rich to us. It is still one of the strongest markets for them. Where are you as you start the year for value . We were looking at this chart, growth posted its best week versus value since 2011. If growth, if you are looking at 2 maybe, consensus for growth is 1. 8 in the u. S. Look at growth versus value. What does this say, how do you want to position . Has been some recovery in value towards the end of last year. Growth has started off again fast this year. When you look at the valuation of those styles, more opportunities within the value area. It does depend in many cases on growth recovery. I think its worth looking and worth the extreme end of growth, being more cautious. Even in the midrange, there are still opportunities where you are getting some valuation opportunity and some decent growth. Nejra are you expecting earnings and 2020 to justify what some are calling a liquidity driven rally . It certainly has lucy it certainly has been. Last year, it was driven by the turnaround in the fed. We know that earnings were slightly down. The Fourth Quarter will be slightly down as well. On the other hand, the previous year, it was driven by earnings. This year, it looks like neither of them are going to go very far. The Interest Rate environment will remain supportive but not a huge boost. Earnings will stabilize but you will not get a big rebound. Overall, it looks like a pretty flat from both of those major stimulus is to the market. Manus do you believe in the consumer . Back to back respondent data before christmas in terms of Consumer Spending and the resilience. Think about it. Rates are low. Is a fairly big bulwark. How strong is the consumer . How much consumer exposure do want to take . Lucy it is always selective. The Consumer Sentiment is still fairly positive. Interest rates are the big determiner of that. Employment is very healthy. While the labor markets are healthy, Interest Rates are low. Fair. Ntiment is, its you would expect consumers to keep going. Against that, it is still very high levels of debt in some areas. That is still the case in the u. S. Grace mcdonnell stays with us. Speaking of Interest Rates in the u. S. , later on today, we speak to robert cap went. M. Dont miss that conversation at 3 30 p. M. London time. Manus coming up, job cuts in asia and europe. Cuts down Wealth Management teams around the world. More on the story. Manus this is bloomberg daybreak europe. Heres what you need to know today. Ubs Wealth Management has begun cutting jobs across asia and europe. Heres dani burger. Dani according to people familiar, everyone from directors to assistants are at risk of losing their jobs at ubs Wealth Management. Ramadi only gave him 60 days to devise a turnaround plan for the unit. We are seeing the effects of that. People familiar told us that up to 20 of jobs are on the line in europe. In asia, they will be reducing different management players. The goal is to book clients and more direct contact with the asset manager and those decisions need to happen quicker. The thought is, reducing the headcount will court costs and lead to quick decisions being made. The restructuring will start with asia and then moved to europe, then the middle east and africa is well. The ultrarich unit is also not in existence, according to people familiar. Those clients will be spread out among the other units at ubs. We dont have the exact number. Ubs has not released that. We have learned that it looks like about 500 jobs are on the line. Manus thank you very much. To the bond markets. We have german bond yields just creeping back towards that plimsoll line. Positive territory for the first time in eight months. Is it a sign, what does it say . Investors are growing more buoyant about the state of europes largest economy. , fullng the numbers figures are due at 9 00 this money. Lisa Mcdonald Joins us. Lucy macdonald joins us. The german bund yield in itself is idiosyncratic of a repricing of bond markets. That big rush to bonds at the end of last year, taking us way down. This is more about Global Recovery and maybe stability. Is that is what is happening in the repricing of the bond market in the first instance . Lucy it shows that there is more risk in the world. Weve seen that in the strength of equities. Those two things are not surprising. Markets, having fewer assets on negative yield is healthy. We dont feel very comfortable in that environment. ,t is a positive development reflecting what we are seeing in the underlying stabilization of Economic Growth and profits but also in the concerns about trade which have stabilized. Nejra its interesting. This week, conversations have started to begin again in the market about the 10year bund yield getting to zero. There was an object market that aimed at profiting from that move. Citigroup recommending bearish trades and boots. You look at the tenure boom tracking and yield increase in expectations. Nothing too huge. 1. 3 . Is that a risk that is alive and well for you as an be investor . How is it affecting your strategy . Lucy it is a risk this year. Stronger growth, you are marketg very tight labor in most of the developed economies. There is more of a risk. However, we want more positive inflation. We have some ways to go before it becomes a problem. It will come back onto investors radar screen again. Risk lucy, where is the of inflation popping up more aggressively . Geographically, for you. Come slightly in the u. S. The biggest area is the u. K. We have extremely tight labor markets here. We had a fiscal boost which is going to be appearing this year. Have a changeover the central bank. The expectation is still supportive Monetary Policy. All of those things suggest more of a move to the upside and more pressure within a very inflation prone economy. Nejra our guest stays with us. Lets get the Bloomberg Business flash from hong kong. Promoted stanley has 130 executives to managing director. That marks the smallest wave of annual promotions to the firm since 2002. It has tightened entry to its highest rates. Goldman sachs is of the same. President trump is adding pressure on apple to unlock an iphone that belong to a terrorist. He says the u. S. Helps apple on trade and other issues, so apple should help the u. S. Apple rejects the assertion that it hasnt helped answer that has provided gigabytes of data from cloud backup. That is your Bloomberg Business flash. Thank you very much. Coming up, money managers, mergers. That didnt go very well come a didnt . Well, did it . Nejra this is bloomberg daybreak europe. It is time to take a look at some European Asset managers. Theres details you need to know when your morning cup. Dani burger has those. Dani specifically, jeffries is looking at a monday and ews. It is valued at 21 higher than where it currently is. A big bullish call. They say that these european continental managers look stronger than that of those in the u. K. Specifically, they say they are undervalued. A monday is traveling at a three times a discount to its peers. Clearly, a by case here. Theres a good kicker for a monday specifically saying that there could be some m a in the space. It is looking at different companies. Jeffrey says it has sufficient capital to return a 5 special dividend. Saying it is the strongest franchise in europe. Nejra thank you so much. Lucy macdonald is still with us. Take withi want to Asset Managers is what we learned about blackrock yesterday in terms of the bigger moves into est and joining the climate 100 plus action. Was that a game changer for you . What does it mean for you was an asset manager . An asset manager of that size getting with the program is good for getting more response from the investing companies. The interesting thing is, they are massive and active. Within actives, they are talking about divesting, taking account of these climate risks. That is positive. Within passive, it is more of a deep in you cant be as europe because of the number of companies you have to deal with. Their size on the shareholder register for investing will mean that their concerns will be listened to. A combination of disinvesting in some and engaging. They are in a very strong position to be able to do that. Surely goodness. Nejra they have size and swag. Thank you for a much for being our guest this morning. Lucy macdonald, cio for Global Equities at allianz investors. That is it from they were i this morning. Waking up to equity markets which really have gotten small challenges to deal with. The world back in the tariffs. No side deal according to mnuchin. Daybreak europe the market open will continue this debate for markets in europe. This is bloomberg. Good morning oh no, here comes the neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Anna good morning. We are live from our European Headquarters in the city of london. Say no need tot fear, European CentralBank Officials dismiss concerns of a recession. The devil will be in the data later this morning. The cast trade is less than an hour away. Matt dutybound