This is the stoxx 600. We see a little bit of pressure, down from 0. 6 . We saw a mixed session in asia trading. And we have this pressure on bond yields. Around the world. This served the boj into action to keep rates from getting out of whack. We have a good interview from our tim ross yesterday. 223. E, 1. 4 coming up on bloomberg surveillance, the speakers to the chief Financial Officer as the danish lender unveils a 1. 7 billion buyback plan. A little later, its the brexit show. We areb ack on were back on track and we discussed trade. We also discuss jobs and growth with roubini. The bank of japan has announced the first unlimited fixedrate bond purchase operation since july, seeking to assert control over the nations yield. The central bank offered to purchase 10 year notes over a fixed rate of 0. 1 and expanded purchases at the regular operation for the second time this week. The boj target for the 10 year yield is around 0 . Lester they offered to purchase an unlimited amount of debt. German chancellor Angela Merkels block. Antisocial democrats have secured after four hours of top level talks, the sister party of merkels sdu, said they are willing to compromise. The parties are closing in on a deadline to complete talks by sunday, though they have given themselves two more days of outstanding issues arise. Donald trump has decided to allow publication of a republican memo arguing the fbi that the surveillance powers in the russia pro and is unlikely to redact any of the contents of the document. That is according to a white house official. The move is likely to ratchet up the Robert Mueller investigation. Britains International Trade secretary has said the u. K. Must not enter into a new Customs Union with the eu. Liam foxs comments to bloomberg for new brexit red line theresa maysf negotiations. Fox also announced his support for the embattled Prime Minister. I wish more people could see the commitment she is showing to Britains National interest on this trip to china. Nejra bitcoin slumped to the lowest levels this year among mounting concerns over the viability of the biggest cryptocurrency. After reaching a record high of more than 19,500 in middecember, bitcoin has lost more than half its value. It has been weighed down to more expectations of government oversight globally as the acceptability of and the e susceptibility to hacking. Global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. Im nejra cehic. This is bloomberg. Francine lets kick it off with the markets. Global bond yields are under increasing pressure, sending the u. S. 10 year treasury to the highest level in four years. Investors will turn their attention to the u. S. Jobs report. The consensus among economists expect an increase of 180,000 in payroll. Joining us ahead of those payrolls, james foley. Great to speak to you this morning. What are you expecting from u. S. Jobs . Jane we did have the adp data earlier in the week. It raised market expectation above the printed market medium. But i think it is fair to say a lot of that focus will be taken by the average Earnings Data and fx. When we look at the hold of the g10 we have a situation where Wage Inflation remains the nine. Benign Wage Inflation has graded great gains for consumer spending. There has been relatively subdued cpi. Theme, not just for the u. S. Markets, but for the u. K. , australia and japan, etc. Francine what do you see treasuries doing within the next two to three weeks . We thought the boj and to adapt and adjust. Will others follow suit . Jane for months, you could say the bank of japan governor kuroda has been protesting against the perception in the market that the bank of japan could also be backing out of its huge quantitative easing program. It is asserted that that is not the case. This week we have seen the bank of japan put its money where its mouth is. Weve seen it 10 year yields drift higher. They wanted to put a lid on that. They are suggesting they want to carry on. Ecb officials suggest they need to maintain an accommodative policy stance. Inflation is still quite low. The market is really quite concerned. We can see this effect on yields and a lot of that concern is related to the u. S. , and the strength of the economy, part ly. The political situation is also playing at hand in the u. S. Market. The market is concerned that the tax bill was not properly funded, the infrastructure bill trump wants to promote this year might not be properly funded. We have a budget deficit, which was rising already in the u. S. On the back of demographics alone. You put this underfunded fiscal spending on top of it and it changes the dynamic and potentially that is not good for the dollar. Francine jane, what does it mean therefore, Going Forward . Does this mean more dollar weakness and if it does, what does that mean for fed policy . Jane well, again, if we do get dollar weakness, that will affect the inflation rates. We can see the fed wanting to engage in those Interest Rate hikes. We are not still convinced the fed will hike three times this year. I think if we try to work out the idea of the dollar and how far it can go this year. I think it is necessary to look at that in terms of looking at the euro as well. The euro is pretty strong. Fundamentals appear to have really strengthened over the last 12 months. But there is also political risk. With the euro being strong, in the way that is exacerbating the weakness of u. S. Fundamentals right now. Francine what is your favorite currency pairing right now . Is there something we should be watching out for that always will get top attention from investors . Jane well, the norwegian krone ticks that box. We have a central bank that became hawkish quite recently. That was quite interesting, too. Sweden, similar reasoning. Right now it is very interesting for foreign exchange. Perhaps, is surprised many of us this year. In the end, the bank of japan, will it maintain this accommodative policy stance . And will that undermine the yen . Its a very interesting picture throughout the g10 and other Currency Pairs this year. Francine jane foley there from Rabobank Group from the u. S. To china, the country is drafting a proposal to allow gambling on Hainan Island. This is an unprecedented move that could reshape gaming in chinas territories. The proposal comes as part of a wider plan to draw more hainan,tourists to which is facing a fiscal deficit. Joining us now is the head of bloombergs asia consumer coverage. Good morning. Just how unprecedented is this . Reporter good morning. This is really a very rare move. We saw the stock reaction because of that. This is so rare. Right now in china, they are only a couple territories, hong kong and macao, that actually allow gaming right now. Its only macao that we see physical casinos. So, any move to legalize gambling, as our sources say, could be very transformative for this region. I think right now we are hearing that things are in the early stages of planning at this point. They are considering Online Gaming, which would include sports betting, perhaps a lottery, but there is a roadmap that paves the way for casinos to open on Hainan Island. The is a big shocker and big news a lot of the stocks are reacting to. Francine how much damage would it do to macao . Reporter you know, huge i thek the key there is, if plan leads to the physical opening of a casino on hainan, you will see macao be directly threatened. Macaos industry is a 33 billion dollars industry, much larger than las vegas and use the american operators, like sands and mgm, really fueling that. All of these big players have increasingly shifted to attract the same kinds of demographics that hainan wants to attract, which is mainly families, holiday visitors, and tourists. You will see intense competition if this leads to casinos on the island. Francine oanh, i was reading up on hainan. It is roughly the size of switzerland. With a relaxed the rules on visas . Oanh that is right. This is part of a wholesale plan to really help the island with development and really encourage tourism on the island. Its a really Beautiful Island with sandy beaches. Currently, there are a lot of tourists. Most of them are chinese. It is really hard to get foreign touristss there. This plan would be to attract those kinds of tourists to the island. You know, whats interesting already is the island, of course, the provinces home to hna, which is the embattled chinese conglomerate which is under pressure because of the mounting debt woes. We sell one of the infrastructure units, the stock shot up because of the news today. Winnerd actually be a because it does have the infrastructure unitt there. There are plans to expand the airports. It is yet to be seen, some of this impact. Francine thank you so much, oanh ha, head of the Bloomberg Consumer asia coverage. We will have an interview with john cryan a little bit later on. At the moment, he is talking to reporters and analysts on a call actually, it is a televised call. You can follow it here. We have seen some of the takeaways, the 2018 cross target misses. You can see this morning, the shares dropping as much as 6 . Thats the most since july. Cryan thinks the bank is still too complex for some regulators, but the january performance was followed across the businesses. That is the latest from john cryan, but we will keep a close eye ahead of our interview later on. Now, sharing is caring. Does the bank unveiled the 1. 7 billion by back plan . Buyback plan . Andersen joins us for his first interview of the day. Francine economics, finance and politics. This is bloomberg surveillance , and im Francine Lacqua in london. Nejra Deutsche Bank has reported full year net revenue missing the lower analyst estimates. Fourthquarter net revenue was the lowest since 2010, driven down by a 27 slump in sales and trading revenue. He will bring you our interview with john cryan later. China is launching a proposal to allow gambling on Hainan Island in an unprecedented move that could reshape gaming in the chinese territories. According to people familiar with the talks, Government Agencies headed by president xi jinping are considering allowing Online Gaming and sports betting. China currently bans gambling and casinos on the mainland. Reasults reassured investors that investments were paying off. Includedid the profit a 789 billion benefit as a result of the new u. S. Tax law. Thats the Bloomberg Business flash. Francine thank you, nejra. Lets take it to the tech space. It was a massive day for the tech space, led by alphabet. bloomberg technologys emily chang follow the results from california. Emily im cupertino, california on apple parkway with tim cook, selling 77. 3 million iphones in a quarter with the average selling price at 800. That is below estimates, but the Company Brought in 88. 3 billion in revenues altogether. There to remain concerns over how well the iphone x is selling. Tim cook told me the iphone x is the most popular fun we have launched and every week it has been the most popular iphone in the world. Apple is about to bring back tens of billions of dollars in cash from overseas due to tax reform. I asked if that would impact the m a strategy at all, if they would consider buying bigger companies, like tesla or netflix. He told me, we acquired 19 companies in 2017, a Company Every two weeks. We look at companies, tiny to big. The key question is, would it improve the life of a customer, would it help us build better products . That is how we decide. Take away from that what you will. Also breaking now, alphabet earnings. I spoke with the alphabet cfo. Shares were down after hours, after fourthquarter profit missed estimates in part because of expenses and troubles at youtube. When i asked her about the share declines, porat told me, we are staying focused on longterm investments. Bets part of the business, we see growth and the cloud continues to power the growth forward. I am emily chang in cupertino, california. This is bloomberg. Francine lets talk banking in the subzero rate environment. Denmark unveiled a Buyback Program that generated extra cash. Denmark has had negative rates since 2012. Joining us now live from the chief is Financial Officer. Thank you for joining us. First of all, congratulations on your buyback. You also raised your dividend target. What are you most worried about for 2018 . Good morning and thank you for those kind words. Are 2018, Interest Rates the big unknowns in terms of the speed of change that we will see. We are also cognizant of the fact that some of our markets have seen very rapid price increases in the property markets were a number of years. Inhave seen operations grow norway and sweden and that is what we are monitoring closely. Especially vigilant around property markets. If i had to single out one area. On the other hand, we are confident in our positioning. Francine talk to me about, what do you see in the world that is making you so confident you can raise the dividend. You raise to the dividend policy, to higher than what you previously had. Does it mean you are confident in growth worldwide . Jacob well, when we look at the bank story, we also have to look internally, and not just at the outside world. We have been building a lot of capital for many years. That is also why we are doing the buyback, returning 93 of our earnings in 2017, which is obviously a very high pay out ratio in the context of what we are seeing elsewhere. Raising the dividend guidance for us is natural, reflecting the strong opposition we have had and giving us more flexible it in the future on dividends. We have tried to find a balance for stakeholders and obviously, raising the dividend policy shows some confidence in our earnings generation. Francine whats your i guess, how confident are you about your 2018 outlook . Last year you raise twice your full year outlook. Is 2018 going to be even better . Jacob we are obviously confident in our outlook. The 20 billion, we think that is a fair reflection going into the year. We also note that consensus is around that range. At the high end of that range. We think it reflects on balance the momentum of the business that we have seen in 2017. We are seeing a continued pickup in activity, expected here in 2018. Our core economies are doing well. We are a nordic bank with some exposure outside of the nordic region. Generally, we see a good macroeconomic environment, which feeds through to the way they guide us. There are small question marks around, what a property markets go, and where do rates go . Etc. Generally, it is a confident mood. Days in thely year. Francine how confident are you about the impact on your bank . It has been agreed, but has not been implement it within european rules. What impact are you expecting . Jacob it is one of the big unknowns. I will agree with that. When we look at the process from here, we are looking at an eu process that would last for a couple years, probably until 2021 and that will probably last until 2027. We are looking at a number of years out here with a final proposal that will probably be modified within the eu process. Given the excess Capital Position we have, which is more than 500 basis points at this stage, we are confident we can deal with any scenario that we finding a good balance with the shareholders as well. Quite confident in that. We are a very wellcapitalized bank. You see part of having that is making us very comfortable. Francine markets have been quite good for the banks during the last couple of months. What does that mean for danske, and is the trend stable . Jacob they are strong and they have been strong for a while, as you point out. Weve found levels that are historically lower. Keats not just a dans situation, generally a European Banking situation. We continue to fund ourselves as necessary through these levels and we are constantly looking to where we need to move on some issues to take advantage of the strong markets. Our funding needs are not what they have been in previous years. We have been thing Strong Deposit growth as well, which you see from our numbers. For us, its finding a mix of good local funding and also in the bond markets. Like other banks in previous years, when our level, it is becoming less of a deal went. Less of a tailwind. Francine when you look at your statement, talk to me about the job shifts. It would create more jobs, different jobs . Will this give new opportunities for customers . Jacob that is a good question. We are not very absolute around what happens to the number of people working for danske in the future because we believe that in the end, it is about the right capabilities and at the moment, you are seeing a major shift. As an example, we hired almost 3000 new people next year. And a lot of that is i. T. And Digital Skills being added. We see a shift in the work ski lls. And some of the more traditional banking experiences much becoming out. Theres a shift in the workforce in the coming years, as we have seen in previous years as well. For me, we worry less about the number and it is more about making the right conversation for the workforce. Francine are you involved in bitcoin . Will you be involved in bitcoin . Jacob no, we are not involved in bitcoin, as such. We know some banks have given an outright answer around bitcoin. We are advising our employees to refrain from it. But danske as such is not involved in the coin, no. Francine thank you so much for joining us, jacob aarupandersen , the chief Financial Officer of danske. Another red line. The u. K. Trade secretary says britain must enter a Customs Union with the eu after brexit. We bring you that interview next. We also talk about pound levels. Francine welcome to our weekly brexit show. Lets get