Behind me for the last 13 years in davos. I know we have some great coverage and panels. Speaking tomorrow with the barclays ceo, jes staley. We will be talking about the future of banking. Friday i will be moderating a panel on Monetary Policy and what comes after normalization. By ray dalio. Ed we are trying to figure out exactly what the davos men and last yearso wrong, and what they got so right. We are looking at some of the market calls they made last time. The dollar call was wrong and so was the price. Three. Re in day lets check out what is happening in the markets today. There is the stoxx 600, gaining for a third day after a third weekly gain. The best run since october. The euro, up by. 5 . There is a bit of relief now. Voting to enter negotiations on the common policy platform for germany. They have still got his final say on any coalition pack. There is another hurdle. This week, itins will be the sixth straight gain. The u. S. 10 year yield will change two point 56 . A vote is scheduled today, according to the Senate Majority leader. It could end the shutdown, just as it begins to take hold. It is unclear whether democrats will support this immigration deal. 1 5 ofnt crude is up by 1 . Russia,abia and pledging supply cuts will continue. Some banks protect the deal could come early. Lets get the bloomberg first word news with nejra cehic. Will buy back as much as 2. 1 billion. Within three years. The by that program will begin in march with the zurichbased lender starting a new dividend policy. Ermotti says he will target an increase of singledigit highgrowth each year. We are able to continue and refinance and retool our capital with our policies. The fact that we are announcing and we are by 8 , also announcing a Share Buyback program will partially be 2018. Ed in reporter opec and russia will comply with cuts before the end of the year, and signal the readiness to cooperate beyond that. In an exclusive joined interview, novak told bloomberg that russia is continue prepareo continue cooperating with opec, even after the cuts expire. Operation between our countries is long served. Regardless if it is in terms of the markets, or other areas. Our cooperation is based on the agreements we signed in china in september. Over the last 1. 5 years, we have shown a very successful we have shown a lot of success. We have had a successful run. Udi Authorities Say they are likely to recover more than 100 billion with Corruption Suspects in a probe that implicated dozens of billionaires. A Government Official has told bloomberg that talks the suspect held at the ritz carlton are expected to finish by the end of the month and those who do not reach deals will be handed over. Partnerctive coalition swallowed its misgivings and entered negotiations on a common policy platform. Willavarian allies coordinate on strategy today, allowing top candidate resumption of the grand coalition to begin as soon as tomorrow. Across the world hundreds of thousands took to the streets this weekend for the 2018 wome ns march. Much larger protests were held on saturday across america. President Donald Trumps inauguration. Global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. And this isehic bloomberg. Mark the u. S. Government shutdown has extended into a third today with the senate failing to broker a deal. It essentially began on saturday Government Officials stopped working. Turner,us now, cap mike Julian Chillingworth and leslie, associate feather at chatham house. Associate fellow at chatham house. Will this mode pass . I think it remains a bit of an open question, but if i had to vote now, i would say they did not have the votes. Democrats are looking at insurance that they will have, at least not in this bill, some vote to protect the socalled dreamers. They were young people brought here as children. But now they are either in the military or attended college that sort of thing. It looks like they do not have a very Firm Commitment yet on that. I would think they will probably hold out. Mark it is the intention for them to vote on immigration post february 8. Intention is not enough. We will see if it is enough for democrats, but that bruc represents a far step back from what position has been up to this point. Does the shutdown actually optic make it less likely that the president shows up . I think it is worth noting that his staff of the weekend made a point of pointing out that it would not be possible under the shutdown for the president to go. Interesting that they are laying the groundwork. I think it raises the question that the president could still go to switzerland for davos. The optics might be a little tricky, seeing the president in a swiss alps town while the government is shut down. But this president has been willing to do things that are not traditional. Up, what willshow he addressed . There are bets now on whether the shutdown will continue into thursday. The fact that we did not see an agreement over the weekend means both sides will probably dig in now. Mark who is winning the blame game . Right now it is putting much split, but it will affect a large number of people. There are many daily things americans like to a cobblers bush and they will not be able to do so. Public sentiment the shift as thosehutdown command democrats in particular will be more concerned to get a deal. But there is a hard hold on this. The dreamers have tremendous sympathy in the united states. Well over 80 of americans think it is important for them to have a deal. We are contributing to american society. T is a very tricky thing this is the point where democrats have leverage, so it is unclear where they will go. What path can he play . Ande remained in the wings was given very clear advice by the people around him that he should stay out of this and let it be seen as congress is to blame, not the fault of the president. I think he wanted to get into the game and i am certain he would like to go to davos. Last year president xi the stage. To go with the u. S. Government shutdown will be very bad optics and frankly, really bad. There is tremendous pressure to move forward. But from paying that so cautiously. I am skeptical. Atncine if you look markets, it seems a lot of them took the impasse in stride. At what point did they start becoming nervous about the shutdown . It looks very picturesque there. Davos never cold. And it looks to me like in terms of previous shutdowns, the market is taking it in its stride. I am sure you have seen these numbers as well. Over the last 25 years, it has been a pretty zerosum game. Investors will find a way of them getting back to work in it doesa solution, or not make that much of a difference because of the composition of the american economy. Latter. The and the other thing i saw was even during the longest shutdown within the last 25 years, you just saved a quarter of a point off of gdp. It is quite marginal. There is a little public support for a deal on the dreamers. Consequently, i think if democrats can broker that, then a deal can be done quickly. Reporter does it in pinch on tax reform. Nda post if we get over this hurdle, which it seems we will one day, what does it mean for the agenda host. Congress is going to have to come keep coming back to this and probably to look much more carefully at immigration. Bigger forward his plans, remember, we were looking for infrastructure in 2017 and we saw nothing and that was supposed to be at the center of trumps agenda. Be prospect that he will able to move forward on bigger items is looking like hell get. Ushed back it will not bode well for what he tries to do in the upcoming weeks and even months. How do you think the president , if he does show up, will be received by other World Leaders. We were looking back at what was said last year and a lot of the ceos were supporting donald trump during the week of his inauguration 12 months ago. And he want to come here strike a friendly tone . Or, will because mayhem. I think he wants to be wellreceived, the wellliked. You have the past cant reform which is very significant, Corporate Tax cuts that will be well received by the audience. He is traveling with his secretary of state, secretary of treasury, people who would like to be wellreceived. The question is as to what tone he will strike. He will want to be sure that his remarks play bigger and with a larger audience and get more attention than xis did last year. That would be a very important point. Mark leslie, thank you. Plentyth surveillance, coming up. Political breakthrough. Chancellor merkel gets the sdps backing behind coalition top. Is the stalemate end on the horizon . The swiss bank announcing a plan to purchase up to 2. 1 billion in stocks. Ermotti. From sergio this is bloomberg. David economic, finance and politics. This is bloomberg surveillance , and im mark barton in davos. Nejra sanofi has agreed to to adde bioverativ treatments for rare Blood Disorders to its portfolio. By their teeth guy guy guy guy bioverativ was spun off of biogen last year. Euros to2. 7 billion get complete control over the ecommerce business. Investors will receive 38 euros a share. Richement already us 25 . The ultrafast with generation of Wireless Technology will be a revolution of the industry. Bloomberg was told that the company will be able to analyze investments. Tomatoes to health care and will benefit from revenue sharing agreements. The ink in the u. S. Being in the u. S. Is great. It is a growing market. It is a market where the pace of the investment is something which is predictable. Is not something that is regulated as it is here. Reform, we have been getting the tailwind here. That is the Bloomberg Business flash. Angela merkel has moved forward in her bid to form a fourth Term Government. Agotiations were under tonig common policy platform. The possibility of a brexit deal that covers Financial Services, even. Get back to juliet. Leslie, if i could come back to you, another hurdle have got to be overcome. The final outcome in germany has got the voted for by the sdp. It was a very close vote. The social democrats are very worried that in the past forming a coalition has not been easy for them. It will be good either, going back to the polls. It seems possible, depending on and even talks end up, likely that it will pass. Europe needs germany back in the leadership role. It is strong, but remains complicated. I think it is fair to say iat in all honesty, and what think from a market perspective, we think a deal was always going to be done, but it will probably be not the ideal deal. Euro rose ahe bit. At what point does the euro bec high. Neither frances keen on the strength] in the euro. I am sure there will be efforts to talk it down. But as always with the currency, it is not necessarily the strength of one, but the weakness of the other. Particularly against the dollar. The trump talked a lot about seeing a dollar. The dollar is fairly weak. Euro will remain fairly robsust. Francine if we do have another grand coalition, what does it mean for the identity of these big parties . That is the compilation of those faces coming together. Of aill see more are grassroot person come to the top. Yeah. Y are always they are always going to be problems with individuals looking at how that will play for them Going Forward and yes, what space does it create . A decidedly political spectrum is not an issue, but the bigger question is, can strike that coalition . And germany will be feeling it now. The importance of moving forward. Macron giving the interview, who and he is talking about a deal that covers Financial Services june 23, 2016. Is there to much hope priced into sterling right now . Yeah. Follow this. If you inteare interest of , they had tok. Find him within the Single Market. This morning they are talking about a norwegian style deal. That is essentially signing of the eu without the same rights as being a number. A lot of the right wing of the conservative party. Leslie but still sterling rises. Deemed note the hardliners, but they were the ones that were sticking to their stance. Britain gets nothing. If you want to be in the Single Market, you have to play by the rules. Is the showing that within europe they are not as hard and as united as they were during the first phase of the negotiations. Like he isinly looks extending his hand to britain. , that will play across the other Member States is hard to tell. What does that mean for Financial Services . We saw a Little Movement on the pound. Macron seems to be offering a deal with the open market and a trade deal. How important is it for the success of brexit that Financial Services get safeguarded . Peopleink that most within the Financial Services sector see this as vitally important. It isndon and the u. K. Hard to come to some kind of conclusion. Financial services, it is absolutely essential. Is talkook now, there of britain remaining within the single customs union. A lot of negative pushback. Is that really brexit . But protection is crucial and access is crucial. Mark i am meeting with the house of lords this weekend fireworks are definitely expected. Shares are lower today at ubs. We hear from sergio ermotti. This is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Politics. This is bloomberg surveillance here in davos. 10 degrees. Mark barton is in london. Mark, we have good coverage ahead from pretty specialdavos, interviews. Angela merkel is showing up be believe President Trump is still due to attend thursday and friday. We have president macron. We also have great panels, andking with jes staley, they will be talking about the future of finance. And friday we will be speaking i will be moderating a panel with ray dalia. Talking about the future of Monetary Policy. Lets get straight to the bloomberg first word news. Back as much as 2. 1 billion of stock over three years and merge it with two Wealth Management businesses. The zurichbased lender is starting a new dividend policy. Ermotti will return excess capital through purchases. We are able to continue and refinance our capital return policy. The fact that we are announcing an increase of our dividends by 8 and announced a Share Buyback program that will be partially be executed in 2018. Russia have reaffirmed that they will clear theybal glut, signalling y are ready to cooperate beyond that. Alexander novak told bloomberg that russia is prepared to cooperate with opec, even after the cuts expire. Cooperation between our country is long serving. Regardless of whether it is in terms of the markets, from other areas. The cooperation is based on the agreements we have signed china back in 2016 in september. We have had a successful run. Saudi Authorities Say they are likely to recover more than 100 billion in Government Officials have told bloomberg that talks at the ritzcarlton are expected to wrap up by the end of the month and those who do not reach deals will be referred to prosecutors. Angela merkel has moved forward in her bid to form a fourth Term Government. That is as the suspected Coalition Partner agrees to follow the common platform. Aimed at allow talks resumption of the grand coalition to begin as soon as tomorrow. Global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. I am torsten mullerotvos. I am nejra cehic. Ubs, buyinget to back to . 1 billion of stock over three years. The program will start in march and he plans to combine the b anks to Wealth Management businesses. He spoke to manus cranny in zurich. The fact that we are announcing an increase of our announcedy 8 , and we a Share Buyback program that will be executed in 2018. I would say it is the highlight of this announcement. Mark the Share Buyback is something that have asked you about. What is that . Is that getting ahead of the u. S. Tiers . Is it resetting the capital . It is difficult to be around all of our u. S. Peers. Capitalgned with our requirements and needs for growth. They got not very flexible. We are practicing an opportunity to complement it with Share Buybacks. When is this in response to. Margin pressure . I dont think it is a rational response. I think it is a proactive move we do and the evolution within the last five or six years. We went through changes and restructuring. Limits growth, focusing on their own growth. And over the last couple years we have started this both internally and externally to communicate and have our business is working closer together. Our products and services are working together. Now we go to the next step of our growth. We have one chief operating officer of operations. We will streamline, but this is a story of growth and how we can do better. To us to, it is up achieve our cost targets. Matt if i live in todays story, is this a ermotti reboot . It is a reboot of the operating system. How did the Investment Bank do . Has been facing a very challenging year. Think that i am very happy. 16 have located capital with about 20 billions. Very obnoxious job. Am pleased to see. O, we are able to compensate weve been talking but a neutral positive, no