Funding deal, or have they kicked the immigration issue down the road . Value tops 100 billion. Shares surge in afterhours trading. We are less than half an hour till the start of cash trade. Lets take a look at where futures are indicating we could open this morning. Gains acrossg at the board and ftse futures are up. 4 . Ax futures indicated to open percent higher. The percent mispriced a little lower, but it looks like a positive day in europe this morning. Treasuries, ive got a threeday chart on my terminal. We have been hovering around the 2. 36 level. It looks like treasuries have been in a tight range the last three days of trading, but not low. 2. 63 is still a fairly high range. You can see the arrow there, the yield dropping a little today. Interesting action coming out of australia. Lets talk about that and the pound, which is on the move. The aussie market up. 7 , the s p pushing up 395 days without a five percent retracement. That is the longest run on record. Tells you a lot about this rally. The nikkei up by 1. 29 . Norway continues to climb, as well. The aussie dollar is trading lower, down by around. 5 . Commodities are generally lower, the commodities index is lower. Lets move you want to the commodities blocked to show you there. Iron ore trading down, the singapore contract down by 3. 4 . Crude is bid, then brent is bid, but iron ore trading lower. That is feeding into the aussie market. That will be interesting to see how that impacts the european open. Talking of trade that is dominating that boss. Lets look davos. Francine lacqua, what have you got . Francine thank you. We have a packed show. We will have a panel on the future of banks led by tom keene, speaking to mr. Corvettes and i will be doing a little later on this week, talking on a panel on easy money, Monetary Policy. We have seven heads of state addressing the congregation over the next couple of days, including president , due to talk on friday. Friday, we have the portuguese economy minister and carlos from the Mitsubishi Alliance and i have to say, i am looking snrward to speaking to mr. Gho about protectionism. We will also get a global view on the specter of protectionism with Joseph Stiglitz of columbia, university. Columbia university. Guy looking forward to that. Tom keenes panel will be something to focus on. We will be taking that live. Lets get a first word news update with juliette saly. Hasette donald trump slapped tariffs on imported solar panels and washing angering trade partners as he took his first protectionist move a year into his term. America will impose new duties of as much as 30 on foreignmade solar equipment while imported washing machines will see tariffs as high as 50 . China and south korea condemned the step calling them a misuse of trade measures. Signed a Government Spending bill that ends a threeday partial shutdown. Impasse broke after Senate Democrats accepted a deal from Mitch Mcconnell that will fund the government through february 8. In exchange, mcconnell agreed to address democratic demand that Congress Restore protection to young,portation undocumented immigrants brought to the uss children. Has maintainedan its massive monetary Stimulus Program and kept its price and Economic Forecast unchanged in a progress. Of it said Inflation Expectation had stopped falling. Governor kuroda sent said the central bank wasnt in a position to exit current policy after the board voted 81 to keep Interest Rates and asset personages purchases at level. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Juliette, thank you for that. The Economic Conditions in europe are right for the start of an exit from quantitative easing, at least according to the ceo of socgen. He spoke with Francine Lacqua earlier on. She started by asking if he was worried about the risk of increased protectionism. We all know there could be some decisions. Protectionism historically has not been good for trade and growth in the world. Francine if you look at some of the headwinds that a lot of the face banks face, you are talking for some settlements with authorities, there is an increase in Interest Rates which would affect markets, what do you worry about the most . Frederic i am optimistic for the european banking sector. Hopefully with this kind of growth, we should see the big beginning. Second, growth is good for banks. Flows and effectively, we are also seeing the end of the regulatory agenda. We are now able to focus on the Big Industrial transformation and i am very optimistic because when i see this world, yes it is fractured, at the same time, at the eurozone level, there is a big fraud project to further integrate. , good, positive momentum and i am optimistic for us. Ceo that was socgens speaking to Francine Lacqua. Next, we take you back to davos. It was announced yesterday, he would stay on another term as executive director. That is next. This is bloomberg. Welcome back to Bloomberg Markets, the european open. Lets kick off our interviews from that post talking about the future of the eurozone. Finance ministers around the region will focus on further monetary union. Francine lacqua is at the World Economic forum in davos with a guest. Francine thank you, matt. The portuguesey economy minister. Future oft onto the the eurozone in a second, but are you concerned that this week will mark the first protectionist move by President Trump and that would hurt economies such as yourself . This as disruptive to economies like the portuguese, but it is a sign we should be aware. In the case of portugal, we are doing the opposite. We are proud of being an open economy for trade and investment. In anyone who wants to live portugal. For solar panels, we are investing quite high in terms of attracting Foreign Investment for solar panels in portugal. We have some of the best conditions in the world and the panelsy we produce the in portugal, we may export the solar energy because we have better conditions of production the north of europe. Francine you export them to the u. S. . If you do, you will have tariffs slapped on you. Productiont of the in portugal is for european markets and the portuguese market, which is growing. We have almost 20 of our consumption of energy in solar energy. Solar energy is going to play an important role. We already produce 65 of our electric energy from renewable sources and we want to include improve that and maybe export some energy with the new interconnections we are building with moroccos and that will surpass france. Francine growth is actually quite strong, one of the strongest in the world. Does protectionism hurt that . Real, ifrts becoming we see a trade war between china and the u. S. , what role can europe play in it . Manuel i think europe should have a clear message about being open for trade. We have to sign the treaty with canada, we are signing it with important there is an trade agreement with mexico and south america. There was a treaty with the u. S. Across the atlantic that will be a positive step. I dont know the conditions now, but europe should, in contrast, reaffirm itself as an open, leading economy because that will be important for trade, for growth and also for innovation and to reaffirm as a developed region in the world, as a leading region, that europe should aim to be. Francine how do you see brexit developing . Be an agreement and if there is a hard brexit, are there winners and losers in the portuguese economy . Manuel i think brexit is a sensitive topic and is mostly about not losing too much from brexit. That should be what we are iting at because i dont see as a Good Movement for overall europe, but we should contain the damage and guarantee that trade is going to still be open. An Important Community portuguese in of britain and vice versa. We have an open alliance with written. Francine you also have a favorable tax system. Francine from all over europe. We have an interesting tax for nonresidents if they moved to portugal in the first 10 years. This has attracted a lot of residents. It is growing at 20 this year and helping the economy. Francine can you attract certain parts of manufacturing away from the u. K. . If there was no agreement with the eu or penalizing agreement . We aree manuel seeing growth of 11 . In some manufacturing like the automobile and aeronautics, we are growing at more than 16 . This is coming from french, german investment and even chinese and indian investment. We are in tracking a tracking investment from all over the world. With brexit, we are attracting more of the shared services that are moving part of their activity to portugal. Britain,appening with but also happening with French Companies and german companies. We cannot related only to brexit, but i think brexit is making some Companies Want to have a stamp on europe and portugal offers competitive conditions. Francine one of the concerns is the bad loans at the banks. Are there any new incentives you are putting in place to deal with nonperforming loans . Manuel we are dealing with the Banking System to put them in the market by people who want to buy the credits, research firms. We also passed a series of laws that pat help restructuring. We will reduce the bad loans in the mediumterm. The growth we are adding, wishes above the european average and also the biggest growth in 18 years, is going to create better conditions for the firms to strive and get out of the nonperforming loans. Francine at the same time, you have to deal with a higher euro. I dont know if there is a level that becomes penalizing for the portuguese economy and if you think the ecb becomes more aggressive with qe, putting it down, is that policy that portugal needs or do you need more accommodative Monetary Policy . I think the qb should continue for some years still and i think there is no solid reason for devaluation of the euro. Evaluation of the euro. Have a 20 , we still in increase in exports to the u. S. And also the 40 increase in the number of tourists from the u. S. , which has to do with more connections, direct flights to the u. S. More than anything, but i think we are still competitive in our exports. South to the west and america, and other areas dependent on the dollar for the currency. Having an interesting boom in our exports in those areas. I think we have some margin of competitiveness. We should be aware of the stronger euro. Francine do you worry about your debt level . You have the Third Largest that gdp. On average to if ge ended this year early 2019, how much of an impact will that have on your efforts to reduce debt . Manuel we are worried about our debt level, of course, but we are one of the countries reducing more of their debt. In two years, we are reducing seven Percentage Points on the gdp of that, and we also reduced a lot of our deficit so now we lmost 3 of the gdp and of the growth of the economy is guaranteeing that we have the confidence of the investors. Our Interest Rate now is lower than that of italy, which means it came down a lot in the last two years and we now have improved a lot the conditions of portugal. But we are committed to continue reducing the deficit and to have stable reduction of the debt in the coming 10 years. Francine thank you for speaking to bloomberg tv. That was the portugal economy minister. I will have plenty more throughout the day. Guy francine, thank you. Francine lacqua joining us from davos. We are minutes from the market open. Next, we will look at some of the stocks we are watching at the open. That includes Renewable Energy stocks after the president s decision on solar. Plus, we will be looking at sky. That is next. The open is 10 minutes away. This is bloomberg. Seven minutes till the market open in europe. Will the trump trade story have an impact on the european markets this morning . The story out of asia seems to be a relaxed one. Lets join mark cudmore in singapore from our mliv team. Are you surprised markets arent picking up on this more . Mark there is complete complacency in the market around the trade risks at the moment. We did see equity markets surge after we got the end of the Government Shutdown in the u. S. , and there was expectation of a positive open. It does surprise me traders arent concerned about the trump tariffs at all. Especially since they are targeted at asia. That is one of the genuine risks of 2018. Overall, me and the traders were rebuffing they were rebuffing concerns in the market. The three pillars we always areat behind a bull market still there. Structurally, it remains a bullish outlook. The risk we agreed on is the trade war this year if trump tries to aggravate Asian Countries on their trade deficits. A few hours later, these tariffs are announced. I am concerned that it but it may be a slowmoving story. Matt what is the significance of solar panels and washing machines . At first glance, it doesnt look like that much of a shot. , this is thelook opening blow. If it ends here, no one will be worried. These are minor industries, some have worried about the impact on the gas industry and the coal industry, but that is on the margin. Overall, this is the fact that trump is getting more serious and his first major attempt to raise tariffs is against asia. It is focused against china and korea. People worry it may be about mexico and we havent resolved at the whole nafta situation. Is this a sign that trump is more worried about the shutdown news flow and might be getting more aggressive on the trade front . If it is an indication, it is worrying. It is if it is a oneoff salvo, we can move on. Guy 395 days without a 5 pull back, that is an amazing number. Mark even though i argue that the structural bull market inequities is solid, that doesnt mean we cant have whole backs. Because we havent had volatility in so likely so long, doesnt make it less likely. And Hedge Fund Managers have to take more volatility. They are compelled by their mandate to have certain volatility levels. People are being forced to take more risks and that means the market will be more sensitive to negative stories. So far, we have seen no sign of it that at some time this year, we will get more pullbacks. Beart mean the start of a market, but expect more volatility in 2018. Matt mark cudmore, bloomberg mliv strategist. Follow insights on your bloomberg. We will go back to davos for more. Startne minute until the of cash trading in europe. Lets talk about what is moving these markets and what you need to focus on. Modded these a little weaker. The iron or contract is weaker, but oil is bid. The dollar is trading 1. 22. That is where we are this moment. Lets get back to this board. Hero dollar, 1. 22 2022. 51. 122. 51. Oil recently well bid, but iron ore has come down. Backays without a 5 pull that isack for the s p, a recordbreaking run. Lets talk about the wei screen. Look at the fair values. Have thee the dax will strongest start, up by around 1 at the get go. The trump story, front and center with the protectionist move. Lets look at the numbers and show you what is going on. Lets get back to the monitor screen and get an idea. 7716, the ftse 100 is bid. Dax. 1 in the we expect other markets to do well out of the gate. There is the cac, up by. 4 . Strong performance coming through their, but i am waiting waiting tout i am see what the dax does. I bet up by. 5 . Up of greene sea out there. Financials bid, energies bid, materials look more mixed. In theory, it should be those with exposure to iron ore. Sky could be a story to watch out for. , whichr electrolux should be affected by the trump trade story. It produces a lot in mexico, so it may not be affected by the story. Health care turning more mixed now as markets settle down. Anerally, it looks like market that has come out reasonably strongly. The dax has yet to open, so we will see how industrials do there. Over to you. Consumero see your staples slice lit up. I want to mention in the top left corner, you can see 431 gainers, 85 losers. The breadth is overwhelmingly positive. Leaders, a lot of Consumer Staples there. Nestle is one of the leaders, hennessywas up there, could be a staple for certain parts of the population. Take a look at some of the losers here. By the way, you see the Energy Stocks there. Some of the losers, we see bhp. Illiton, rio tinto those with exposure to iron ore on the way down. Power. Addy we will talk about the u. K. Gambling stocks with one of our first word stocks reporters. Overwhelmingly, we have positive breadth here. Everyone up from Consumer Staples to oil stocks. Market is up today and you can see that reflected across the cotton that. I believe the dax is now open and we are seeing the dax up. 2 . The futures trade was pretty amazing. About. 9 . Were up now it looks like the dax is up. 8 . The german index doing quite well this morning. Guy it is interesting what is coming through this morning. It looks like mobile speakers, the blue proof Bluetooth Speakers seem to be a driver carried easyjet on the front foot following its update. Car for his laying off staff. These are the stocks we are seeing a decent bid coming through. All of those three stocks really are up strongly this morning. Fromjarvis joins us now our stocks team. We saw tesco coming out cutting jobs, the market likes what he hears. Paul it will be interesting to see how it pans out over the day. This announcement has been expected for some time. There are a lot of comparisons to be made between where carr tesco. S to laggard. A they have needed to do something for a long time. It is not surprising they would have this Huge Investment and