Daybreak europe. Manus we have a feast of breaking news for you. First of all we have carlsberg, telling us they will raise the dividend due to strong cash flow. Kroner. Lion mist on thet topline sales for the full year. Increasing the dividend, organic Revenue Growth comes in at 2 . In terms of topline earnings, 8. 1 5 billion and the market looked for 8. 20 9 billion. Breaking news coming from all kinds of sectors. Full year 2016 sales coming in of line against the estimate 12. 9 billion. This is the important bit, the china transaction is expected to close in the Second Quarter in 2017, kind of in line with what we were hearing from analyst ahead of these numbers. Raymond james saying the deal in 2017. Ted to close this is part of an extensive approval process. Various closing dates have been and gone. Were also talking about consolidation were broadly in the sector. Dow chemical and monsanto, a lot to talk about their. Tinto underlying profit of 1. 5 billion. The big headline here is the share buyback. Last year they scrapped the progressive dividend. . 5 billion for worth of buyback over the course of 2017. So the underlying profit comes in ahead of the market. 81 . Ore so our rally of Capital Expenditure will be around 5 billion in 2017. We will have a conversation with the ceo, join that interview a little later at 7 10 a. M. The market was looking for ¥264. 1 billion, so a nice the for them. They talk about overall sales year on year with a slight drop on the ninemonth numbers for softbank. But a big beat on sprint and a blockbuster be for rio. Theresyngenta saying confident and giving us more on their target. Some people have been talking about whether we might get approval from european ,egulators and u. S. Regulators we have happen that. So that could be a source of some disappointment for some in the market. Whether youre talking about the dollar or stocks are yields, the fx market fluctuating overnight with all the questions hanging on the market. Manus i like that phrase you use, week or poor. The longest winning streak since november last year, it set battle between whats happening in the courts versus the fed. It could be the fed that drives the dollar. You have Oil Moving Higher and copper of 25 in the past year. Talking about potential strikes in chile. Just to underline whats happening with the oil price, extending the worst today slump in four weeks. Were concerned about u. S. Inventory increasing. We get Government Data later on today and Energy Stocks moving lower as a result. Manus Stephen Engle is getting standby to get us up to date on first word news. A version of the transpacific partnership, despite the u. S. Dropping its involvement. Saying plans will be up for discussion at a meeting next month in chile. There were a lot of hardfought gains that were achieved through intense negotiations in response in relation to the tpp. I know a number countries dont want to that those gains slip your fingers. Thats why for the focus on whether or not we could have a tpp 12 minus one. In other words, given the u. S. Does not want to be part of it. We will have a meeting in chile in march of this year to canvass all the options. Milani of trump is suing a british newspaper saying an inflammatory article deprived her of a chance to launch a lucrative brand. The 150 million suit against the publisher of the daily mail accused of london tabloid of causing tremendous harm to her reputation. The complaint prompted press questions about whether golf up in his family understand the ethical conflicts caused by interests. Promised a vote on the final deal with the european union. Heard ministration overcame an attempt of for her to give lawmakers more power to shape the final Brexit Agreement by 26 votes293. The final vote is today. Is reviving his fight to be Emmanuel Macron after two weeks struggling to contain the fallout from a financial scandal. He returned to the campaign trail yesterday in eastern france. He apologized to voters in an hourlong News Conference on monday. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. Anna thank you very much, Stephen Engle. Lets check out markets in asia. Shery ahn is standing by. Energyrelated stocks are on the move. Surprisingly choppy trading session is been for asian markets, as you mention with the boj now offering to buy bonds for the third time in a week. Concerns rising over the sustainability of qe there. The session just progressed around the day and the nikkei ends up. 5 . A different story for the cost beat. For the kospi surging more than 280 million in the month of february. The shanghai composite unchanged , although the hang seng is gaining. 4 . The Rate Decision in about three hours, the taiwan taiex down. 2 . The new taiwan dollar weakening for a second consecutive session. Theres been this narrative that weaker yen currencys last quarter helped pick up inflation or cpi prices across asia. Take a look at the rupee in india, strengthening ahead of the r. B. I. Rate decision. Consensus is for a cut. Thats not the issue right now. The issue is, is that the last cut in this cycle for the r. B. I. . Thats what investors will be looking for in this session. Manus thank you very much, shery ahn. In the u. S. , theres an hourlong hearing in the federal Appeals Court to examine arguments for and against president trumps travel ban. These details from new york. It was a contentious and fastpaced hour of oral arguments for department of justice and Washington State loggers. They spoke for an hour, about 30 minutes for each side, to at theging the panel ninth Circuit Court of appeals in San Francisco. The panel was made up of one judge appointed by republican president s and to appointed by democratic once. It was ruled the judges interrupted him fairly often, it turns out you been swapped in a few hours before the hearing after the original lawyers for pulled out. A brief that was filed opposed his trunk immigrant ban. Im not sure im convincing the court, so i want to make one really key point with regard to the injunction. That is that it is overbroad and should be immediately stayed to the extent it is overbroad, even if the court thing sums applications of thinks some applications are overbroad. The attorney general was challenged on whether the band amount to religious discrimination gets muslims. The ninth circuit set will have a ruling soon on whether to reinstate donald trump travel ban or keep it frozen. Whatever the decision, the matter is likely to turn immediately to the u. S. Supreme court. Is a seniors economist, we will go around the world with you this morning. Lets start in the u. S. We were having a conversation about the market, how the spectacle as we see the courts in some cases at least against donald trump and his administration and what it means for the Investment Community. Manus was making a good point, does it tell us anything about how much pushback you will get in other areas of his agenda . Roads been a fairly bumpy for his few days in office. Dove yet to see the real when it comes to battle she will have to have in the house. He is a republican president and the republicans do control both houses, so it should be a relatively smooth ride, but this is donald trump were talking about. Manus lets try to translate that, because its not been a smooth ride for the dollar. Treasuries dont know whether it is feast or famine. When you look at what hes doing and trying to do to the dollar, is this recessing strong dollar policy, in your opinion . He might call himself a currency manipulator. Yearshe last two or three , i think its understandable that the countries in a time where growth has been sluggish would like their extra boost of weaker currency can provide. Obviously a stronger dollar makes it more difficult for the u. S. Of ans. Is a lot less open economy that several other so its probably less important to the u. S. But youre right, they dont know which way to turn. Anna as you point out, theres a great deal of uncertainty around how much of how much of his policy will be able to get through. There are two things. The fiscal boost can take two parts. Part of it can be tax reform or tax cuts which is a typical republican agenda. The other part is a boost to Infrastructure Spending, less typical of a republican administration. We are expecting a limited booze and limited fiscal that will coming gradually over the next couple of years. Probably at a time when u. S. Economy doesnt need it. You could argue that physical policy is appropriate in other nations where growth has been subdued. The u. S. Is probably not in that position. , this the reason i ask stripsou the amount of available in the market. A new record. The market believes the inflation story. They are a bit unsure. Do you believe the propensity for reflation in the market is with trump . Yes, and not just in the u. S. The relation story is a global one. There are two aspects, one of which is higher inflation and one is phenomenal growth. One of the things we have emphasized has been the triumph of reflation over deflation. I think that is what you are seeing at the moment. Some of the Inflation Numbers have been particularly high because of energy numbers. Anna two or three fed rate hikes you say this year. The fed might have to do more. As i said, the fiscal boost, if it comes, probably will be coming at a time when its needed in the u. S. It may put little more pressure on the fed. Anna thank you very much for your thoughts. Up, undering pressure, Prime Minister may keeps her brexit timeline, but what will inflation pressures mean for the bank of england timeframe . Cfo we will speak with the a little later this morning. This is bloomberg. Manus 2 19 in hong kong. The hang seng up. 4 . The markets are little brisker this morning. Shery ahn, good morning. Good morning. Abb has recorded reported fourthquarter income related to its solar business. Doubled butore than under analyst estimates. The company has been forced to fend off demand from investors to spin off its power grid position. Bob iger has said for the first time his willing to stay on as while disney ceo be on his current 10 year. Hes scheduled to retire in june next year but said he wont stay on if it is good for the company. He made the comment on a call. Ith investors the company has struggled to find a potential successor, the most recent air apparent abruptly stepped down in april last year. The Deutsche Bank managing directors where among more than 50 employees cut in the u. S. As the firm begin planned reductions in its trading division, according to people with knowledge of these decisions. Arnoldold they said was dismissed yesterday. The managers did not respond to a request for comment. Onmco has hired an advisor the ipo and pushes ahead to pursue the biggest share sell, according to a person familiar with the matter. Last month bloomberg reported the Investment Bank had been shortlisted as a potential advisor for the deal. A representative declined to comment. Response no immediate to a gmail seeking comment. At your Bloomberg Business flash. Anna thank you very much, shery ahn. Prime minister theresa may has kept her plan to trigger brexit on track after meeting with rebellion from some in her own party by promising a vote on the final deal with the european union. And the doe policymaker said if the u. K. Economy continues in its current trajectory, inflation may push her vote for a rate hike. Starting salaries for permanent staff grew at the fastest pace in nine months. Anna Stuart Robinson is still with us. More detail in the ongoing in parliament. Weve had a bit of an update. It could be rejected in parliament. Are we any closer to working out exactly how the process . Works how the process works . The schedule is still on track for being triggered by the end of march. You have to have the detail, and thats a planned two years, but it could be longer than that. That gets you to the whole insulation question. Lets stick with economics. Wages are rising, for those who fastestting, is the pace in nine months. Is this a cornerstone of what forbes is referring to is the , embodying the current forecast for inflation and growth . Is this part of the story . Is this part of the story . Shes more concerned about Consumer Price inflation which is already risen a bit. It is expected to rise a lot more above the 2 target. That is mainly what shes uncomfortable with. Stillressures are relatively modest in the u. K. You dont have that pressure building like you do perhaps in the united states. Its a Consumer Price story and the bank of england has inflation mandate. The policymakers react to that in say we have to Pay Attention to that. If Growth Continues and inflation rises, then it makes sense to have that debate. Anna does it we have to see higher Interest Rates . I dont think so. This may be the year when some of the brexit realities hit. The bank of england has been fairly explicit in saying we know the reasons for the rise of inflation is Commodity Prices and if we believe it to be a transient phenomena, and we will live through it if there are question marks about growth. So inflation will grow up, but there will not be a race to raise inflation rates. That will be debated if Growth Continues at the 2 pace and inflation rises toward 3 . Manus theres a piece talking about a cold currency war. The japanese and chinese did it this time last year. The bank of england lowering its natural rate of unemployment. Do you buy into that, a cold currency war erupting . Im not sure i do. Sterlingion you had in is really a brexit effect. Its completely change from the last 40 years. I dont think it is a policy manipulation. It crash priced . I would question that, simply because Political Uncertainty is something the currency markets hate. Wasould be remarkable if it as smooth as some have said. If you get those difficulties in negotiations, starling could fall further. Anna stay with us here on the program. Manus we will an exclusive conversation later in the day. 7 40 u. K. Time. This is bloomberg. Anna a very warm welcome back to bloomberg daybreak europe. Yen,ollar against the 112. 27. Lets get some breaking news, coming in line with estimates. You could say new drivers of growth to offset declines, the parisbased company counting on you there pe to replace falling revenue from its bestselling insulin products. Expected regulatory decisions for drugs to treat eczema and Rheumatoid Arthritis and also how well they do with a skin clearing drug. Fighting a legal battle over cholesterol lowering medicine in the united states, and mna has been disappointing. They have been courting at kelly and not long ago and that was a deal that when another way. A few more common coming through talking about m a, saying it must create shareholder value. Theyve tried a few times with this of course and also saying the Pharma Industry meeting was very reassuring, according to the sanofi ceo. Starting to carve out generic business for sale. These are comments coming through from a Conference Call with the ceo this morning. U. S. Landscape is very difficult to understand. Our exclusive interview is at 7 40 this morning u. K. Time. African company will post a fullyear loss per share in regard to the nigerian business. Look on your bloomberg are your mobile. You know the story. This is it. Our covern ipo, story. Anna the Boutique Firm was hired to advise on the aramco ipo. Other banks are still in the race to underwrite the 1 billion offer. Manus Deutsche Bank head , these are the reports in the wall street journal. To managing directors were dismissed yesterday. To add to the angst, the banks israeli ceo was detained on suspicion of misreporting about 146 million of transactions. We focus on brexit jobs. The city will lose 10,000 and global banks that relocate 1. 8 trillion euros of their assets to the continent after britain leaves the eu. The estimates come from a Research Group and these are the numbers coming from them this morning. Matt miller is standing by in berlin. A very good day to you. What have you got for us . Is the dollar trade systemically broken . The dollar trade has to do with the Asset Classes i will point out to you here. First i want to talk about the asian indexes. A few hours ago we were looking at losses are just barely gaining asian indexes. The starting to really climb. If you look at anything from the nikkei to the hang seng to the shanghai shenzhen, were looking at gains up. 5 or there about. On my screen of the last two days of the nikkei to 25 and you can see that we had come down into the end of the session yes or day in this morning were coming back up, despite some of the drag that we are seeing. One of the big drags has in the commodities trade. Oil is down again. It was all for two days in a row, the worst backtoback today decline in four weeks. . 41. I is down this is something you will want to watch because when we open here in europe, the oil produces a big heavy index swinging stocks. Gold is little changed, down about one dollar a detroit down. Some strike start to brew and compromise in south america. Currencies and the dollar trade. The yen continues to show some strength. It was at the last couple of days. You see weakness in the euro against the dollar and the pound trading at 1. 2508. I want to show you healthcare stocks. I know you guys were looking at what is going on with sanofi. I want to pull up this chart to show you where is it . Here it is. No, thats not it. In any case, sean spicer yesterday am having a little bit of an issue here. Sean spicer was talking about drug negotiations. This is something we thought the Trump Administration had decided to throw the Health Care Companies of bone on. The we just heard from sanofi ceo that the new u. S. Landscape is very difficult to understand. Thank you so much, matt miller. The rio tinto ceo says all assets for sale for the right price. A sign of a grossly undervalued currency. German chancellor Angela Merkel fired back last week and now others are weighing in. Yesterday saying the accusation that germany is exploiting the u. S. And other countries within undervalued current the is more than deceptive. If you had any mind at all, theyre all extorting currency manipulation. Does it have merit or not . Know, germany has been one of the main beneficiaries of the euro. If they still had the dortch mark, it would be a lot stronger. Saying that same as have been a currency manipulator. Its probably more or less appropriate for the eurozone overall, and thats where it should be. And the germans have been part of the contingent that has been questioning the need for such loose monetary policy. The bundesbank president went on in a newspaper conversation in germanys chop to talk about how it can in gets expansionary policy. What is the timeframe at the ecb . , theymario draghi said expect to fulfill their current qe program. Commite not prepared to taper. S likely they will rise 20. Lking about a economicnly of conditions remain as they are. Manus this is what the issue is, its breaking our mindset. We are addicted to 0 rates or negative rates. Talkme about grace to me about greece. A triptych of institutions that are unhappy. Renewed concerns, the same goal concerns about the imfs insistence on the need for continued ongoing austerity in greece. Its the same old story. Anna you mentioned the reflation trade earlier review said not just in the u. S. Context but more globally. How much is that contingent on oil staying above 50 . Its the ability to sustain this with opec and play. We forget quickly. A year ago, the oil price was half of what it is now at 27. Obviously if the oil price were to stabilize around 50, the inflationary boost gradually disappears in the annual comparison. The absence of specific knowledge on whats going to happen to oil supply and demand, it seems to be the most sensible assumption to make. We are blown away by this stat saying oil output in the u. S. Will search to the highest since 1970. Thank you so much for your time this morning, stewart robinson. Bank looksr national for its next growth spurt. We spoke about the lenders focus on asia and where they are seeking acquisitions. What we have done in , we are going for fullfledged branch licensing. Inhad in acquisition indonesia, one of the big economies among the top 20 with a promising future. Inve upgraded our presence singapore to make it our asian hub and weve upgraded our products. We have increased our staff in singapore. Also we have the office in vietnam and myanmar. What else could you be adding to that list in terms of new markets and new licenses they could perhaps make the asian strategy more complete . Fore dont is actively look acquisitions. We are not looking but if there is opportunity, perhaps we will look at it. If you had to rank them in , goingf rep priorities back to the banks strategic drive. Europe. Entioned its a highly developed market. You have big banks and all that. At a sickly anything that will complement our strategy, we are happy to look at. Yousef policy uncertainty around the new administration of donald trump. Were seeing him revisit the doddfrank legislation. As a key bank ceo in business today, what is your take on the new u. S. Presidency and what it could mean for the way you do business globally . We have an excellent relationship with many u. S. Banks. We dont see any change in that relationship going forward. And the relationship will always be maintained going forward. If you are Ader Bloomberg customer, watch the and you canv follow all of our chart and functions and message us directly. Watch us on your flatscreen television, but why not watch on your bloomberg and you get all this added functionality . Manus ive done enough inflation for one day. Anna up next, theresa may kept her plans to trigger brexit on track by promising a vote on the final eu deal. Manus and earnings from the shipping giant maersk. Iron ore prices rallied. We will break down the data, still to come in the program. This is bloomberg. Manus 1 48 a. M. In new york. Stocks in asia a little better, flat in the u. S. Shery ahn is with us for the business flash. Sanofi has said profit made drop as it per pursues new drivers of growth. The french drugmaker expects earnings per share excluding some items to down as much as 3 . The sanofi ceo will join us for the markets european open. Text that exclusive interview this morning at 7 40 u. K. Time. Global Economic Uncertainty is clouding the outlook, posting fourthquarter profit that came in below estimates. Net income more than doubled. Forecasts of almost 544 million. Bob iger has said he is willing to stay on as walt disneys ceo beyond his current tenure. Hes scheduled to retire in june of next year but said he will stay on if it is good for the company. A call the comment on with investors after disney reported lower sales and earnings for the last quarter. The most recent heir apparent coo tom staggs abruptly stepped down in april last year. Topped earnings estimates in his first quarterly results. It to an october spent all included some items, beating estimates of . 10. The Pizza Hut Division performed worse than expected. Even as it faces headwinds including currency fluctuations. Aramco has hired an advisor on , according to a person familiar with the matter. Last month, bloomberg reported that the new yorkbased Investment Bank had been shortlisted as a potential advisor for the deal. A representative declined to comment and the press office did not immediately respond to our email seeking comment. Thats a are bloomberg thats your Bloomberg Business flash. Anna the final vote on the brexit bill will be held in the house of commons later today. The Prime Minister has so far managed to keep her plans on track. Manus david jones confirmed the movement in parliament yesterday. We intend that the vote will cover not only the withdrawal arrangements but also the future relationship with the european union. Furthermore, i can confirm that the government will bring forward a motion on the final agreement to be approved by both houses of parliament before it is concluded and we expect and content that this will happen before the European ParliamentParliament Debates on the final vote. We will talk to someone whos bringing a case against the u. K. Government. Great to have you on the program this morning. Tell us exactly what you are arguing. Youre arguing that triggering article 50 is reversible. The first question is what happens when we trigger article 50, what rights do we lose . Remainble we were in the single market. The main purpose of the irish proceedings is to answer the question whether you can unilaterally, just because you want to, decide to withdraw from the article 50 process. No one is contemplating reversing article 50. We live in a fastchanging world. The dynamics have all been altered by the election to the presidency of donald trump and i think it is in the National Interest that we be able to have a look at a couple of years time whether we still want a brexit. The people will Tell Parliament whether they want to have a vote on the final deal, and if the people do Tell Parliament that they do want to vote, i think it is important that parliament understand that that is a possibility. Me, what does it really matter . , just go for readmission to the eu be a article 49. There is a process, an actual, Legal Process to go back. There is a process by which any state can apply to become a member of the european union, to reapply to become a member in our case, there are various hurdles that you might need to jump. Its a process that takes a lot of time. If we went for another there is a process. It may be that if we do leave now, in the future, we may want to rejoin. But that doesnt answer the point as to whether or not it remains our you collectively that we want to leave now. We are makingough a decision on monday and executing it on tuesday. Are making it decision that we will not execute until march 2019. That is a long time in politics over the weekend. Ewers seems more of a move to block brexit. Is it . No. I continue to think that remaining is in the best interest of the people of the country. This case is about the functioning of democracy. All it does is unlocked the door for the people to walk through if they want to. So i am a democrat, im not a fascist or someone who thinks we should rule by executive fears. I think the people should have the power to make that decision. Anna do you think it will go to the ecj . I think that is likely. Anna thank you very much. When we come back, we will talk about the drug sector. More on daybreak. Manus the battle for the van. The fight over travel restriction rages in court. Immigration policy hangs in the balance. Anna rio tinto posts his first profit since 2013 on the eye and or bounceback. 2017 profit may fall in according to the management of both those companies. Anna Prime Minister may promised parliament a vote on the draft agreement. Manus it is daybreak europe, the flagship morning show. Anna we are just getting some numbers coming through from moeller maersk. That is what2016, were getting from the diversified business at the moment. That months ago as he said in the middle of january they are more likely to do that through a separate stock market listing than by selling them or forming short joint ventures according to the ceo of the company who spoke in the middle of january. It gave itself a twoyear deadline to separate its energy units which includes the rig operator maersk drilling. They are giving us their numbers. They see 1 billion worth of underlying Profit Improvement for the line in 2017. Interesting, the group will be focused on their transport activities after they managed after this two years to get rid of those other assets. Which will include maersk line, the Worlds Largest shipping company. The underlying profit rising more than one billion in 2017. The fullyear lost 1. 9 4 billion, an estimated profit of 962. There talking about an improvement in profit but the numbers for the fullyear seem to be missing estimates. Manus lets talk about the futures market in terms of equities. The dollar is on the move, dollaryen on the move, equities are set for a slightly better opening, yes indeed. Had ase up and rio tinto lovely be. Also talking about a share buyback. At that. 3 of 1 . This takes us into the risk radar which is the dollar is at. Look at the dollar. The longest winning streak for the dollar since november. We have managed to put on nearly. 9 of nearly 1 change. Anna a lot of Clinical Questions hanging over them. The dollaryen at well 12 112. Stepping up its bond purchases keeping that 10 year yield at zero. At 50 179. Extending the worst today slump in four weeks. Concerning the u. S. Inventories increasing. A surge in stock prices and Government Data and copper in focus as well. Manus anna is worried about the miners in chile. She is not worried. Goldman sachs are more worried about them. They are concerned about this market moving into deficit. That will squeeze the market higher. Up she pops and up she goes, that is copper up 25 . Anna lets get the Bloomberg Business flash. Shery a lawyer has told the San Francisco peers Appeals Court that the ban was well within the howards granted to him. That is as the Justice Department is seeking to reverse a Lower Court Ruling that put the executive order on hold. The judges are string both sides. Skeptical of the u. S. Government. A ruling will probably be made this week. Melania trump is suing a british newspaper saying a defamatory article in later retracted departure of the chance to launch a lucrative brand. The 150 Million Dollars suit against the publisher of the daily mail accused the london tabloid of causing tremendous harm to her reputation. Oh the complaint crafted fresh questions about whether donald trump and his family understand the ethical conflict created by mixing Public Service with commercial opportunities. His right to be [inaudible] after two weeks struggling to contain the fallout from a financial scandal. The former Prime Minister returned to the campaign trail by the formerked finance minister. He apologized to voters in an hourlong News Conference on monday. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. Of theets get a check markets. A bit of choppy trading and oneut the session, more hour to go for the hang seng index, up. 7 of 1 . We saw the pboc refrain for the fourth consecutive day from injecting liquidity. The markets gaining. The boj again offered to buy bonds for a third time this week, that said the japanese yen higher. That depress the jacket japanese market. The yen came down from those highs and we saw the nikkei and half a percent higher. A different story for the kospi. Down. Nsex is taiex down half a percent. January cpi data coming out of taiwan showing that increased by the most in almost a year. Were seeing the taiwan dollar losing ground for the second consecutive session. Downward pressure has given speculation that that is giving some strength to cpi numbers. The rupee strengthening ahead of the be a Rate Decision. Manus thank you for that roundup. We have had a slew of earnings through the morning. We had the numbers as anna brought them to you. These markets have a lot to digest. Thats bring in our next guest. When will get right to it. When you look at the delivery of these numbers over the past 24 hours, it has been a huge message in terms of cost cuts him the oil industry dealing them. Rump is one of how do you look at it, are we picking or pausing in the equity market story and that is the morning,e put this guest there is definitely a causing play. Theres a lot of uncertainty in terms of tax policy. It is a big unknown. The administration has promised that it is difficult to get any information that everyone is waiting and trying to work with the calculator in terms of how it adds to multinationals. In terms of taking one step back, we have seen a significant improvement through 2016 going through into 2017 across the world in terms of manufacturing and Service Sectors well. One of the things were trying to focus on is the assessment of not just expectations but Economic Conditions and that supports a risk on Global Equity support as we go into 2017. Anna we will come back to that in a moment. Some breaking news coming through. , changing thenges chairman of the board of directors. More details coming through on this announcement. A change of chairman of the. Oard of directors he will step down as chairman agmcted effective at the. So interesting there. Lets get back to the conversation with wayne. Lot more tos not a it. Youre looking at some of the management in terms of the performance. Management and the on, when you look at political situation in the united states, the debate is this, as to whether you want to load up with a little bit more protection in terms of buying them on the bond markets. Are you a buyer of inflation strip sort hitting a record level . Technical trade, we can see certain areas of the Investment Community wanting to play this. We have had such a strong rally in global risk markets, and equity markets in particular that it would make some sense to trim some of that, the profit you have made to rotate into especially u. S. Fixed income markets. Highyield government bonds. You are capturing some of the uptick in inflation expectations. But youre not necessarily giving up or reducing your significant risk position that youre having from a Global Equity perspective. Is a technical trade. The worry is that you could eventually or potentially miss out on another leg up. So when does the pause turn into acceleration . I would suggest looking at both so it sides of the coin. Sentiment, the momentum seems to be in your favor to keep that risk on trade there. If you are shortterm or looking to reduce some of the risk profile with portfolios than the u. S. Bond markets due offer opportunities. Anna what are your expectations . Same janet under the yellen yellen, it does not sound like her. Fort we have been lower longer for so many years and once we got the results from the president ial election we look to some of the messages that we are being delivered preelection and some post. We would expect a more dynamic fed in terms of reasons to raise rates versus the years that we have had which is reasons not to raise rates. There is a shift in terms of not only the administration but the potential landscape for exhilarating economic growth. Corporation tax, the currency effect, the five build america story which is not just related to small mid cap america but also the flow that we would expect from nonus investors looking for and to increase their u. S. Exposure. Manus the underperformance is u. S. , relative to the were back to dollars. The stoxx 600 is in the white the purple. Is in how much additional exposure would you be prepared to take on europe since everyone is suggesting the ecb is there an Interest Rate differentials will widen and the ecb will remain committed to qe at least until september. Guest we did very well being overweight in the u. S. , we were cautious and are fully closed up as underweight. We are neutral in terms of developed tech and emergingmarket equities. That is a very nice part of the investment world to look at in terms of that when do you go overweight and the relative differential in terms of also Economic Conditions as well could play in terms of if you do see weakness , it europe versus the u. S. Could be a nice time to take some profit from the u. S. Perspective and within to europe in particular. Anna thank you very much. Coming up. Manus it will be a bright outlook. First quarter earnings beat estimates. Itscompany is keeping business. This is bloomberg. Anna welcome back. This is bloomberg daybreak europe. 717 if you are here in london. Lets talk about [inaudible] salesps to complete the of its general lamps business this fiscal year after siemens beat estimates. Us on the phone from munich for an exclusive interview. Give us update on the transparency for the business that remains after you have done the sale. Guest great to be with you this morning. We had a great start into the year with a strong set of numbers. We delivered 7. 5 comparable of evennd a strong 18 doubt. Bitda. The aftermarket is accelerating as well as a good set of numbers. Manus you are taking the brave new technological road and leaving those lightbulbs others. Wheres the real growth going to come to you especially in the choosingtion, you are a strategic direction. Tell me the geography that will bear the most fruit. Our the sale of our business you have a clearer profile of a Technology Company and we are playing into a couple of megatrends. Especially one that is of interest to everyone, thomas driving and conductivity. The remaining businesses are number 1, 2, or three in their respective industries. Example we were at the Consumer Electronics show in las vegas earlier this year and a,wcased our contribution to driving, particularly when it comes to later systems which if you think about a car, if you think about a, driving you have to replace the years in the eyes of the driver to have a car driven a thomas lee. A thomas lee. Anna they have grown up, talking about the spinoff of your business out of their business. They still own 17 of your company. Any sense as to when that will not be the case, are you looking to sell that down anytime soon . Commente appreciate the of our larger shareholder. You have seen the numbers especially in the last two years have evolved very well for the company. What siemens will ultimately do is a question you should pose to mr. Kaser and not me. Were happy with the current relationship we have with siemens. Know youat is good to have a couple working relationship. Lets talk about the issue that every ceo and cfo is dealing with which is keeping and i eye. Ng ann who is a president intent on a huge infrastructure spend. How can you fit in, where do you see the opportunity for your business in the u. S. , one of the consequences in terms of production, what are your thoughts question mark thoughts . Guest last year we generated. 90 Million Euros of revenue we have our full value chain in the country. We do production and r d. Of course, Infrastructure Spending will go up, we will benefit through our business through lighting and buildings and other construction. If that were to be coming we would be benefiting from it. Anna thank you very much. Joining us this morning on the phone from munich. We had the numbers from rio tinto. They are the worlds secondbiggest mining company. The first gain in annual profit in 2013. Will kennedy is our editor. Headline. Big red they deletedback, the progressive dividend. Give us the blowbyblow breakdown. They rewarded investors and paid a dividend that was higher than people were expecting. They launched halfbillion dollars and giving 70 of their underlying earnings back to investors. Smartws that this was the thing to do. It saved the money through the downside and now as the iron ore arees come back and Prices Higher than people thought they would be, they are able to be flexible and reward investors. In contrast with the oil industry which is stuck. You wrote ins what one of the stories this morning. It is a good rebound. Guest iron ore came roaring back 80 last year from gloom about china at the start of the year, it surprised him very. It is final to rio tinto. It provides 60 of their underlying ebitda. Anna shares rebounded to around 60 in i16 16. Jumping this year and we are in the second month. Guest is the iron ore rally sustainable . Manus is it . Guest people are feeling more optimistic about the chinese economy which is good for iron ore. Two questions. Will there be a supply response, will we see people expanding production and how high of inventories in china, there are signs their starting at high levels. Anna this is an example of one company doing well, rebounding. N the back of this this rally in commodities, are you saying that continue . Guest again we look at Global Economic trends, pmi is supported, we talked about maintaining that risk on approach from an equity perspective. We have initiated an improvement, an increase in Natural Resource from a tactical perspective as well. And from an Energy Producing perspective could also from the new Administration Point of view expect,we in cash when picking up on the china comments as well, i think there is also an element of people not being as pessimistic on china. If you look at some of the economic numbers official and unofficial, we have not seen the hard landing that everyone was expecting as quickly and as fast as was played in. Even if you think gdp is anywhere between 4. 5 to 6. 5 , that is good for 1. 4 billion person economy. I cane amount of gmp produce. From a chinese perspective that bleeds into emerging market risk as well. The world is still going round and still developing, still consuming, still manufacturing and it is important to ensure youre not missing out on some of those bigger trends with the focus we have had on developed market rates. Manus oil is off this morning and branch is down right. 9 of 1 . Down by. 9 of 1 . We were talking about this this morning. We could have made that mina bit thicker. U. S. Production is at its 1970. T level since shale 2. 0 kobe the big story in oil this year. Opec was optimistic about how shale would respond. They thought the industry was in trouble, that it would not come back. It is coming roaring back. Adding 50,000 barrels a day. They trail these wells cheaply. Opec may have a problem if this continues in the middle of the year. For going backy to the 1970s in terms of u. S. Oil production levels. Thank you for coming in. Northern trust asset management. Bloomberg markets european open is up next. They will speak to the sanofi cfo. He is someone who is struggling to understand the new landscape in the u. S. , donald trump has been vocal about that sector. Rio tinto will drive the commodity complex higher in london, by. 1 of 4 . And delivering an underlying profit of the gas 1 billion. Of 1 billion. Anna this is bloomberg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its 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. Comcast business. Built for security. Built for business. This is the european open. Your first trade of the caches session. I am guy johnson, imf london. Matt miller is in berlin. What are we watching this wednesday morning . The book breaks out. The bloomberg dollars but index trade out of its fiveweek downtrend. Can the greenback it back to its late 16 highs . A hard till to swallow. Center field looks for new ways. The u. S. Landscape