Shareholder in daimler, the stock trading up 8 . We will watch daimler at the open in europe. And assets management. Deutsche kicks off its plans to ipo dwx. Will john cryan get enough of the units to keep his turnaround strategy on track . Thats the big story here in europe. That ipo is about four weeks away. Lets talk about where the fair values are. Looks like we will see a positive start in europe, up by around. 5 . Asia was positive around the overnight. I will show you what russia is doing, trading higher. You futures pointing positive for the start of trade. Lets show you what the gmm looks like. In russia, the market has opened and we are watching the ruble. It is the banks leading the charge. This is where it started friday afternoon, s p up 1. 6 , now feeding through into asia. The renminbi and aussie dollar, the yen. The dollar is trading lower. Lets show you what the second moves looks like. Bid, which isng a interesting in itself. Godl gold is up. Its a big week for the federal reserve. Jay powell appears tuesday and thursday, so we will start to get an understanding of what the fed will look like. Will it be a continuation of janet yellen . Are we going to see a powell push . All these questions need to be answered, so lets talk about where the bond markets are going. At the moment we are expecting an interesting day and week. Getally, lets move on and the first word news with juliette saly. Tryinge guy, china is to scrap term limits to what xi 2023. Ng rule beyond a constitutional provision bars the head of state for more than two consecutive terms of fice, but the communist party wants to change it. It has sparked a wave of reaction on social media, some comments supportive, others critical and mocking. North Koreas Kim Jongun has indicated he may be willing to hold talk to the u. S. , of the white house says it will see if the move represents the first step toward denuclearization. It comes after north korean delegates attending the closing ceremony of the Winter Olympics standing near a ivanka trump, and telling the south korean president at times should develop tween them, pyongyang, and washington. The Uks Labour Party has said it wants britain to seek a new customs agreement with the European Union after brexit. Leader Jeremy Corbyn is set to flesh out the details of the decision in a speech today. That piles pressure on Prime Minister theresa may, by leaving her at the mercy of rebels in her own conservative party, who also want to deal with the bloc. The former italian Prime Minister, matteo renzi, is urging politicians on all sides to combat violence ahead of next weekends elections after street battles between far left and far right activists. At a rally in rome, he says the clashes cast a shadow over the campaign, and sparked memories of the 1970s and 1980s when italy was scarred by motivated extremists. It is important for everyone not for a single fight to be here, to be against criminal violence. Because todaypy was a good day for roma, for italy. Juliette global news, 24 hours a day, powered by over 2700 journalists and analysts in more than 120 countries. This is bloomberg. Guy . Guy thanks, juliette. Treasury yields have retreated wem last years highs as await the first remarks from the new fed governor, Jerome Powell. And now weworn in, understand what he will be saying. He is the fed chair, not just the governor. Goldman sachs stocks plunged around 25 as the treasury yields hit 4. 5 . Joining us from singapore is mark cranfield, our mliv strategist. Morning. 4. 5 , that is a big move up from where we are now. So maybe we will get a big market reaction. This feels like a big tail risk to me but maybe it should be a small tail risk. Good morning. 4. 5 from where we are today in the 10 year they are talking about by the end of the year. That would be extraordinary. If you think of the move in the last six months or so, the 10 year yield has gone up less than 1 which already caused quite a big disruption to equity market. Sosaw about a 10 reversal you can imagine we got more than 150 basis points and im sure the chances of equities in america having a pretty hard landing would be very high. 25 decrease is not unreasonable under those circumstances. There are many people in the same camp. I dont think there are many people in goldmans side yet. Guy no, but it is modeled as a tail risk. An strategy notes have extreme amount of money around Something Like that. The point id like to make is 3 seems pretty hard at the moment. We are struggling with 3 , let alone 4. 5 . I think whats happening is people are beginning to see the Jerome Powell is an experienced central banker. He will not come into the speech this week as a complete person who was never spoken to markets. He knows his words will be carefully watched. He is probably going to take a middleoftheroader view, and markets will probably get a bit of relief. The treasury market in particular has probably overdone it, he will not be as hawkish as people fear. Theres also selling into the u. S. Dollar, which is a signal that hes not going to be anything other than a yesleoftheroad man, and he endorses Interest Rates every quarter, which is not really a big deal compared to what markets have had to deal with so far. Guy do you think we have gone through . Are we now pricing four . We were pricing three, but the market is migrating to four. I have heard some people talking about five now. I dont think four is fully priced in yet, but depending on what he says over the next few days, mr. Powell could tip the balance that way. I think we are just pricing in three, which is already a big shift. A year ago the fed said three hikes in the market was only going to price at 1. 5. So to be pricing in three is quite a big change for the markets anyway. Four would be another big jump. Five is almost out of the question. Guy its a long way. We also get draghi. The momentum around europe is quite interesting at the moment. Does draghi need to win the market back . Does he need to put a more realistic spin on this . Defense seems to be that the ecb is looking at the exit. Im not entirely sure that is whats going on in frankfurt right now. I think you are right. I think theres another opportunity for the man whos is the head of the central bank to rain everything in and take the middleoftheroad approach. Sorts obviously some cour of discord, people are turning hawkish in the ecb. Mr. Draghi will probably say, look, lets be realistic. Theres a long way to go on this process. We have outlined a bond Purchase Plan decreasing over time. We will stick to that plan. There is no need to rush. Rate hikes are a very long way off, we dont need to adjust that, either. Theres no particular reason for mr. Draghi to panic, considering he has a longterm plan, which he can stick with. Also, there in mind that next year he is going to leave ecb, and he may like to see everything kept nice and tidy and calm until everyone knows his successor, which could be a hawk. Guy yeah. Interesting articles being written right now, is a view of the world. Different views in frankfurt. One at ecb, one at bundesbank. Thank you very much. Mark cranfield. Forcan follow the mliv go smart Market Analysis throughout the day. What have we got next . The mobile World Congress opening in barcelona. We have exclusive interviews coming from that event. Chief executives of bush telecom and seat. These things are being merged. What is a car show . What is a tech show . What is a telecom show . The venn diagram is blurred. All of that coming up. The market open is 19 minutes away. Guy 16 minutes until the start of european trading this monday morning. Lets talk about the telco sector and figure out whats going on. Executives are gathering in barcelona for the mobile World Congress. We spoke exclusively to the ceo of Deutsche Telekom about intramarket consolidation. He spoke to Caroline Hyde. Telekom is the biggest european telecommunication operator, and we have 11 markets in europe and intramarket congregation. We have congregation with upc, we are working on accommodation in the netherlands, where we are bringing mobile operators together. This is happening in europe, happening crossborder, and we are focusing on strengths in our position. Then we have the u. S. , which is a new position. We are growing at double digits, 19 quarters in a row. Planned,rea, no m a is more organic growth for the new areas. Caroline what about stopping m a in your home turf . What about liberty global, vodafone . You dont like it, are the regulators listening . I think it is totally unacceptable, this kind of deal, because it has created a new monopoly. It is dominating the tv market, will dominate the housing association, where they have a certain legal privilege. There is even domination in the cable infrastructure, while these guys are unregulated. I think it is totally unfair, and i am asking for fair competition. Caroline analysts think the deal will go through. Its too early to say. I just want to claim that is this deal is going to happen, we have to see a totally different landscape. But we will see when the deal is coming what the authorities might say. Caroline what about the u. S. . You were talking about the fact that there is no deal. What is the future for the United States . Growth is slowing. Totallyve is vented a totallyve invented a negative industry and away, Magenta Telecom has created the ontario proposition and for 19 quarters in a row we have grown at more than one million customers. Caroline but the growth is slowing. The only one gaining growth is us and we have a balance of new Customer Growth and profits and Free Cash Flow we are able to invest. Last year we bought more than 30 of the 600 megahertz spectrum. We need that, getting deep coverage across the country. Million and now we are going to 330 million, and this is a new era for tmobile in the u. S. Caroline will you buy more in that . I think now is the break. We will have spectrum coming at one point in time for new applications, but we have plenty to deploy. We are growing now organically in the market. Caroline tell me about the u. K. You have investments in people she in bt. Isnt brexit a headache . It is a headache. Shares due to the brexit duesion, due to the pound, to the tough regulation environment, we lost some value in depreciated. What they are doing, how they are taking the market, the convergence bringing together a good portfolio of content. I think this is a recipe for success and i in convinced we will see more stock. Guy the ceo of Deutsche Telekom speaking to Caroline Hyde at the mobile World Congress in barcelona. Also for nwc, we will speak to the ceo of seat. The mayor will join us at 8 30 a. M. U. K. Time. Look for that later. 12 minutes away from the market open. Up next, the stocks to watch at the open, including daimler and geely, facing a 3. 7 billion euros stake. What does that mean for the german car company . This is bloomberg. The open is 11 minutes away. Guy nine minutes until the start of trade. Deutsche bank has formally announced its intention to sell shares in its Asset Management division, at the earliest available window. It kicks off a fourweek run into an ipo. Existing shares held indirectly by Deutsche Bank, it doesnt plan to issue new ones. Lets talk to steve out of frankfurt. How does this work with john cryan . Well, its not critical for the capital buffer. However, it is critical to show to investors and the bank, and employees, that he can pull off the strategy he announced a year ago. He has had setbacks, he wanted to grow revenue. That hasnt worked out as planned. So ipoing this Asset Management unit, even ahead of schedule, that is going to be a big show that he has got the ability to leave the bank. Guy what does it mean for the Asset Management unit . The unit hadsaid repeatedly pointed to other Asset Managers partly owned by banks, which have outperformed dws. As an example, it would make sense to at least partially flow to this unit. He said he wants Deutsche Bank to remain the majority shareholder, because it is still good to have a strong bank in the back. But independence from a bank can make strategic decisions, it will have currency for acquisitions. That is something he wants. It does make a big difference for the unit. Guy this is going to happen, right . Or do you think we will get another first of volatility and it will be put off . What about pricing . Well, we have heard people familiar with it say Deutsche Bank hopes to get as much as 2 billion euros for that. They could be a little less, but theres usually a discount in ipos, and some investors have expressed dissatisfaction with the complicated legal structure. Euros, and2 billion in terms of timing, they want it to happen within the next four weeks, but of course if markets crash, then it will be difficult to sell. By not announcing a definite date, they have kept that option open to reschedule. Guy thank you very much. Steven arons joining us out of frankfurt. Minutes away from the open. We have dealt with Deutsche Bank, lets talk about the stocks we are watching. Geely automotive is trading strongly in hong kong, taking a stake in daimler. How will that affect the open . Job eastern joins us from our stock steam. Geely is up strongly. What are we expecting from daimler . Daimler, the maker of mercedes, their stock rose slightly on the trade gate close, which the exchange opened early. We are expecting daimler shares to rise. It is obviously a huge stake, 7. 3 billion euros. But we are expecting daimler shares to rise as well. Guy i wonder if it came as a surprise to deutsches Management Team. Theres a profit warning out, which is interesting. How will the stock take that . It came out very negative, a profit warning. Run,s originally state they suffered very badly from the declining letter volume. Internet and the emergence of a number of new players in the market. Guy id argue they would always make up for that loss of the regular post, from the amazon effect. Really quickly, u. K. Energy supplies. There are new tariff restrictions being imposed which would limit the energy supplies. That should be announced today, a price cut until 2020 should be announced by theresa may. That is very negative for some countries, like british gas, ssc, eds energy that have large shares in the u. K. Market. We will be looking at those stocks today as well. Guy thanks. You can find the rest of what joe is writing about on first go on your bloomberg, and you can find it on your mobile as well. The fair value at the moment points around a. 5 gain for europe this morning, so we will get a positive start to the day. Individual stocks will remain interesting, Deutsche Bank and daimler, people look on them. Keep a lookout on them. Four minutes away. This is bloomberg. Guy the nikkei had a solid session. Following the solid session we had friday, the s p up 1. 6 . The fair values point to a positive start as well. Lets look at what we are expecting in europe. Their individual names out there. Diamond will be one and deutsches will be another. Lydia stocks to watch. The u. K. Energy stocks. , up by 0. 5 . The dax, up by 0. 7 . Lets show you some numbers. Market toecting the open higher. We look at a little bit more from the Market Makers in a moment, up 0. 2 . The ibex, up by 0. 7 . We will look at the spanish z stocks, and break them down. We look at the individual names in the german market. So, we are up, as. 3 topated, 0. 0. 6 . Consumer staples, a little bit of weakness there. The financials look to be trading pretty strongly as well. Deutsche bank, finally coming through. It will be interesting to see how the market digests that one 0. 5 . We are up by about markets are beginning to open a bit more. We now have the ftse working up to the election. As anticipated, up by 0. 5 . Lets look at the move screen. This is the picture at the moment. I think that is ericsson, an entire sector all trading higher. On the downside, the german stocks arent there yet. Downside, bank of ireland, talking about that earlier on daybreak. Foreign sectors trading a little bit softer this morning. Be talking about insurance a little bit later on with phoenix, the aggregation in the center. Lets stop about what we are looking for over the next 24 to 48 hour. European stocks are now open, but anticipating speeches coming up from ecb president mario draghi. And then we move onto the main event, fed chair Jerome Powell. Deliver his first statement to congress, starting tomorrow. The head of rates at aviva investors joins us now. Charlie, equity markets and rates markets are hanging on powells words. We have seen u. S. 10 years move up to about 3 . We have seen jitters within the equity space and it is interesting to see the market looking as this. What are you expecting to see from the pound . Charlie not a lot. If you put your mind back to when yellen took over one fo, the first shot across the bow has always been for continuity, to make sure that people believe in the consistency and ongoing, if you like, reliability of the fed. That does not mean that things will not evolve and change over time, but there is a strong fomc framework already in place. All the regional feds and economists and everything else. They are all of a mindset and are thoroughly trained in their jobs. Going to come and say, i think we are completely missing the point and we are behind the curve and we will raise rates five times this year . No. Guy no, but he could up the ante a little bit. Even a fraction is enough. Just north of 3 would create a little bit of momentum. That is a possibility. Charlie but equally, that would involve moving the dot plot, which is why i am referencing the original feds. They are feeding into the process. Things have not evolved that much since the last meeting. It is th