Acceleration in investment since june as industrial output eats estimates beats estimates. Could a firmer recovery be underway . Treyew brexit e. U. Chief pulls no punches on his First Washington trip, cautioning President Trump about protectionism and shortterm thinking. We spoke about him exclusively on resetting relations. The objective of the visit is to try to reset the relationship,t ry to understand each other in relation at the moment and find Common Ground with the United States. We started on a positive note. Matt barclays is cutting around 100 senior jobs across corporate and Investment Bank as the lender looks to rein in costs. Morgan stanley plans to 80 dozens of staff at its wealth business in asia. Lets look first at futures. Even after the new record we hit yesterday, were looking at gains in futures, and fairly substantial gains at that. Dax futures up 0. 5 . U. S. Futures, not the same size but the same direction, green a rrows on the nasdaq, s p and dow jones futures. Anna, what do you see on the gmm . Anna lets have a look. Futures, flat to positive picture from u. S. Futures, and flat to positive across asian equity markets. You could say two different interpretations of the chinese data. The market is in two different directions. On the one hand, the gdp number broadly in line with estimates and Industrial Production rebounding nicely in the Fourth Quarter. All pretty positive. On the other hand, headlines like the lowest growth since 1990, maybe not easy to go out so party like it is 1990, muted gains in the asian session. The chinese currency on the move again. Gmm, what is going on with fixed income . We see news from the last 24 hours, meaning movement in the fixed income sovereign bond space. Year, selling off after the announcement they will raise money at the 20 year time horizon. As a result, a little repositioning. Lets get to our markets conversation with mark cudmore, Bloomberg Live managing editor in singapore. Lets get your initial response on the chinese number. The gdp side looking in line with estimates. A surprise. Maybe the intelligence this morning, around retail sales, Industrial Production, other measures . Data was strong, better than expected. What we care about here is Industrial Production and retail sales also matter, but less overall. The gdp number is kind of irrelevant. This number will keep slowing down. Twice asady over fast as the u. S. This is still a high level of growth for an economy that is exceptionally large, and you cannot compare to emerging markets, it does not make sense. The last time the u. S. Saw growth this past fast, it was a much smaller economy. Even if you dont believe the official number, still an exceptionally fast pace of growth, given the size of the economy. The Industrial Production, retail sales, fixed asset investments, all pretty strong overall, sending a message that pboc has done a good job managing the growth slowdown. Terms slow slowdown, in of the rate of deceleration is very moderate and overall positive for risk assets. Matt because we are talking about china and to you, i want to break in with a story about a company that supplies meat products. Bacon,ck provides pork, sounds delicious. They say fullyear adjusted pretax profit will be higher, and it is exports that continue to be strong. China has a lot to do with this story. Cranswick has been talking about china sales boosting their business for a while, so watch cranswick shares in the u. K. Back to the markets, asking you about the possibility the big e. M. Catalyst for the rally is gone. Marcus wong wrote about this on the mliv blog, saying things like the phase one trade deal that everyone has been waiting for, came and was not as great as people may be expected. Are you concerned a lot of the catalysts for the rally have passed . Mark im actually not too concerned. The post this morning was excellent. Marcus is very good and is the expert in this field, but overall i take a slightly different stance. People say the chinese trade deal has come and gone, where are the extra gains here . But not a wonderful deal, it means tensions will be controlled for the moment, or that is the narrative for the moment and no reason not to believe this. The other argument, the real rates easing we have seen in e. M. s, less of a tailwind. Thats not entirely true. Higher inflation means real yield rates continue lower, even though we havent seen nominal rates go lower. The overall environment in emerging market is positive, and generally emerging markets, equities, bonds and currencies can do well. There will be room for differentiation, but generally a year where the Asset Classes can perform well. Not talking so shortterm, as i rarely am, but in the next few months the environment remains positive for e. M. And i am not convinced the drivers have gone away. Matt you make a good point about differentiating the Chinese Market and other emerg ing markets. Amanda wang writing on the mliv blog, she sees increased leverage from the pboc and also buyers, of Retail Private funds coming back in ize, size, as a continuation to the rally in chinese stocks. Do you agree . Mark i do agree with that. I think theres a chance china has one of those positive tail risks. We could see those kind of chinese animal spirits back in the domestic retail market. There is a lot of potential, including domestic stimulus, the return of the retail environment and foreign inflows. Theres also a chance that the general theme of the last 6, 7 years in china has been the wealthy elite have been trying to get their money offshore. As we go further through time and the Chinese Market does not see this great collapse, managing the slowdown well, eventually some of that money might come back on shore. There in the background, that china has a lot of money offshore, and it can come back quickly when they see the environment turn more positive. Perhaps a catalyst for bringing more money back is a revival of animal spirits in the domestic market, which might come from the pbocs actions. Anna let me ask about the kind of responses to the question of the day this morning. The big tech rally in the u. S. Should investors be nervous about this one trillion Dollar Tech Club growing . We have a new member in the last 24 hours. The dominance of tech in the s p, is this something that worries you, or should it not in itself because for concern . Mark im not too worried. Of waystheres a couple to look at it. Obviously, 1 trillion is an arbitrary number. It is great for headlines, gets the market excited, extra focus, but its an arbitrary number. The bigger concern is the dependence of the stock market around the Technology Sector and just a few names really driving everything. Whenever any market is very dependent on key names, it is more vulnerable to something going wrong in those names. So its true to say that overall the u. S. Equity market it vulnerable to major disruption in the tech sector. However, i will say i dont see where that disruption is coming shortterm, and dont see any natural internal reasons for that trend to run oiuut of stea. Until a major shift on how the Technology Sector is viewed, some major change in regulation, i think tech will continue to drive the market higher. Matt the apple market cap, now the same size as the australian stock market, one headline that caught my eye overnight. Anna mark cudmore, thank you very much. You can join the debate on todays question, should investors be scared of the 1 trillion tech club. Reach out to us and the markets live team on your bloomberg. Next, we look at stocks to watch this morning, including casino, the french supermarket operator that cut domestic profit expectations and result resulting from domestic protests. This is bloomberg. Matt welcome back to Bloomberg Markets european open. We are a little more than 45 minutes from the start of cash trading across europe and in the u. K. The new e. U. Trey chief has accused President Trump of trade chief has accused President Trump of being obsessed with the u. S. Trade deficit, saying it will lead to higher costs for consumers. He gave us an excessive interview at the end of his threeday visit in washington. The objective is to try to reset the relationship, understand each other in relation of a number of things, and find Common Ground with the United States on issues. We started on a positive note. U. S. , European Union and japan signed onto a statement saying they wish to see an issue around technology transfer, for the Global Economy and the players in the future. Tho reform the wto. This is a positive agenda. You had a bilateral meeting with robert lighthizer. Did you receive any assurances they will not be new tariffs on the e. U. . We didnt get any assurances. I would not expect any assurances from mr. Lighthizer, who is someone i respect very much. Hes had a very big week, the statement with the European Union and japan, the deal between the United States and china yesterday, and of course the passing in the senate. A big week for him, and we will continue being in touch, to continue with our discussions. In terms of this big week, the threat of 25 tariffs on e. U. Has been out there for a while. Did you get any sense that is still a live threat . You said it barely came up. Where . It didnt come up often in questions asked by the administration or congress, or business organizations. But that doesnt mean it may not come up in the future. We have difficulties at the moment related to tariffs boeing,from airbus and and discussions around the digital tax agenda was important from the u. S. Point of view, and we are trying to work out solutions. The Washington Post had a story that in the days before he trump talks, T Administration had said you need to do this or we will slap a tariff. Did that happen . I dont think that happened. It was not raised with me during any meetings with the administration. How concerned are you that because the president has had two what could be considered wins on trade in the last week perhaps the administration has more leverage . Phase one has gotten done. We respect the fact there has trade, ind moment for relation to the United States and partners around the world in recent times, and now we want to build on some aspects of the deal the u. S. Has done with ofna, move in a common area alignment and cooperation for issues we share in relation to unfair trading practices, and hopefully we can identify common hopefully we can identify Common Ground in relation to a number of these. Hopefully we can identify common according to an independent congressional watchdog that says that the president should not have delayed the money that had been appropriated by congress. A key part of the impeachment case against President Trump. The Senate ApprovedPresident Trumps new freetrade agreement with mexico and canada that hands the president a major win ahead of his impeachment trial. The overhaul was a top legislative priority for trump. Senate Majority Leader Mitch Mcconnell called the vote, a rare moment of bipartisan cooperation. Global news 24 hours a day and on quick take powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna, matt . Anna leighann gerrans with first word news in london. Lets get your stocks to watch from around the newsroom. Annmarie hordern is focused on the latest from bayer. Our Equities Team covering casino, the french grocer. And focusing on richemont. How will investors take the results, looking at what they have said about hong kong in particular . Kong had a severe impact on sales. It led to store closures and was tourists at bay, but offset by stronger demand in the u. S. And in europe in particular, so it is likely to be taken positively by the markets. Matt annemarie, what is the story on bayer . Annmarie they might be putting these cancer claims for aroundup weedkiller finally behind them. They could be weeks away from settling more than 75,000 of these claims, according to the mediator, who says he is cautiously optimistic they can get it done in a month. The stock is preparing for a higher open. Anna they did say claims are surging according to the mediator as well. On the French Grocery player, what is the story from casino . There was a dense news flow last night. The company unveiled fourthquarter sales. Not good news. The first big profit warning in france because of the strikes that have been paralyzing the country, ever since december 5. The company cut the full year ebit growth forecast from 10 to the protests. We will see the Market Reaction this morning. We are not expecting the shares higher or lower. Casino shares were soft,. In addition to that, the casinos Parent Company under creditor protection rallied. The bondholders had a vote on the Restructuring Plan and did not support the debt deal, which may also weigh on sentiment. One last positive, the company stripped out leader price, so that asset divestment may help the shares a bit. Back to you. Matt thanks so much for joining us. Get the latest stock stories from our equity team by typing first go on your bloomberg terminal, and get first word news in the bloomberg mobile app. Week before the World Economic forum in davos, and we will bring you the biggest names in banking as more than 115 billionaires to send on the normallysnowy, not so much this year, snowy swiss town. Do not miss our coverage. Even without good skiing, it will be a fascinating meeting. David solomon, james gorman, brian moynihan, michael corbat, all coming out of davos next week. This is bloomberg. Matt welcome back anna welcome back. 25 minutes to go before the start of equity trading in europe, but futures point higher. U. S. Futures look more muted, although a little momentum, up 0. 2 on the major indexes stateside right now. Chinas gdp growth held at 6 last quarter. They economy stabilized after slowing to the weakest pace in almost three decades, with policy support stopping deterioration. Joining us with a look at the Global Growth story, were d of privatee hea Capital Markets at ubs. Just to get your initial thoughts about the state of Global Growth and the state of the chinese economy, a little bit . We had gdp numbers from china. Our colleague in asia was saying it really doesnt matter that this is the slowest pace since 1990, since this is a much bigger economy. Your initial thoughts on the role china plates at this point . I think there is some truth to that, growing superfast and even though its now growing slower, it is obviously still a Strong Economy and a market everybody wants to capture. Its a big driver for the economy. You put that in the context of more geopolitical tension and veryseems averted, that is conducive to the market. Matt you point out in your note that we have much less uncertainty in 2020. I wonder if thats going to be enough to continue driving the price of risk assets higher, or if you need more of a catalyst . Isabelle i think its a fair comment. I think two things at this point. A lot of what we have seen in 20182019 has been driven by uncertainty, and some of that uncertainty has gone away. What we will be watching for, what are the consequences . People are riskon on u. S. Stocks, but what are the impacts, until the trade agreement was signed, what were the impacts on the economy . People will watch for that before they make further conclusions. Anna isabel, thank you. Isabelle toledanokoutsouris, more with you as we talk about the low yieldeturn in a environment. It is the week before davos, and we will bring you the biggest names in technology and other sectors. Dont miss walltowall coverage. Bloomberg radio is also available on your mobile device, and dab Digital Radio in the london area. They will also have the best of davos. This is bloomberg. Matt welcome back to Bloomberg Markets european open. 30 minutes away from the start of cash equity trading across the continent and in the u. K. I am matt miller in berlin alongside anna edwards in london. Anna lets get a look at what you should be watching out for for the next week. On monday, u. S. Markets are closed for Martin Luther king day, but a very busy day ahead on tuesday, the beginning of trumps impeachment trial. Netflix earnings and the World Economic forum in davos, all of that to look forward to. Matt maybe you want to catch the davos coverage that we have until friday. Ceos coming of out of davos. Rateursday, the latest ecb decision and president Christine Lagarde will unveil the scope of the Central Banks strategic review. Blackstone and apollo delivered a simple message to the sec this week, private markets are here to stay. They said less liquid investments perform much better than stocks and private equity produces bigger gains with less volatility than publicly traded shares. Isabelle toledanokoutsour