Anna a warm welcome to bloomberg daybreak europe. I manus cranny. Donald trump with his First Press Conference yesterday, seven days until his inauguration and this is what he managed to interview as the ,arkets, the trump trade because of the lack of detail, we have a great quote from oscar wilde, in matters of grave importance in terms of physical, style not sincerity. Ofhas delivered a lack detail, and thats what the market has latched onto. His Donald Trump Style this is the dollar index. You can saven, but the trump mania trade has faltered. Anna show me the details is the market of the message the message of the market. How much does he cut back on globalization and what kind of fiscal stimulus, more importantly. Was that an unfair expectation . He was dominated by russia and Donald Trumps business interests, as we know. Lets show you where we are on overnight interest. The dollar index reflecting the questioning of the trump trade, more so reflected in the dollar against the yen. The en increasing the yen increasing. Lows we are on a onemonth , the dollar atmosphere is poor and there is a lack of policy detail. Volatility rising two levels weve not seen since 2013. I want to get the war started, that was the line that provoked the mexican peso traders as well. Weve got the s p futures in here to show that health care was one of the sectors that was really on the move during the News Conference yesterday. Weakness expected for equity markets in the u. S. A quick line on some breaking news, thirdquarter sales from , saying itompany will be 5 . The estimate was 40 are sent. They talk about full your profits facing challenges. Of 2. 90 6estimate billion. Strong numbers from the Third Quarter there. Market,n to the luxury and lets go to first word news. Trumpsidentelect donald s picked for secretary of state has said china must be denied access to the artificial islands its built in the south china sea. During his confirmation hearing, Rex Tillerson said a failure to respond to the countrys action in the disputed waters had allowed it to keep pushing the envelope in the worlds once strong united states. To achieve stability that is foundational to peace and security in the between for sentry, American Leadership must not only be renewed, it must be asserted. We have many advantages on which to build. Andalliances are durable our allies are looking for a return of our leadership. Shery a move could hit the Agricultural Sector with a tubulin dollar fall in annual sales. Meanwhile the u. S. Is said to be prepared to ill a complaint with the wto alleging chinese subsidies are suppressing global prices of the metal. Volkswagen has taken a major step toward resolving the initial scandal and has pleaded guilty in the u. S. And agreed to pay 4. 3 Million Dollars in penalties. At the same time, prosecutors are charging five executives in germany. Admitting using false statements to import cars into america and obstructing injuries when authorities were suspicious of the emission levels from diesel engines. Clear, volkswagen new of these problems and the regulators expressed concern, volkswagen up is gated, and they ultimately lied. Shery south korean officials have been questioning Samsung Electronics vicechairman as a suspect in a bribery investigation. While the de facto head of the Samsung Group was why of expected be called in for questioning, the fact that he was identified as a suspect was a surprise. Prosecutors want to know whether samsung and other Companies May payments to a confidant of the peace president for political favors and access. Brazil has slashed its benchmark access rate in it unexpected move. The board move to lower the to 13 . K rate by. 75 the move was predicted by just four of the 48 analyst in a bloomberg survey. The decision comes as policymakers ratchet up their efforts to jumpstart the countries stagnant economy. The governor of the bank of england has said the eu faces a greater financials ability danger than britain if the country leaves the brought the block abruptly. Warning of the need for both as he was quizzed by u. K. Mps. If there was not such a in ourion put in place, view, we will have consequences. We will work to mitigate those consequences as much as possible. Consequences would be greater for europe and for the u. K. , but there would be consequences for the u. K. Shery a former swiss banker has become the first order to become jailed, he was given 28 weeks in prison and fined almost 89,000 u. S. Dollars after being charged with 16 counts including not intoting to authorities two Bank Accounts that were suspicious. One person whos denied any wrongdoing is at the heart of the trial. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. You can find more stories on the bloomberg at top. This is bloomberg. Manus breaking news coming in across the terminal on fast retailing. Netnd is better known , a nice comfortable beat. The market is looking for 54. 4 billion yen. Operating profit rose by 17 . They are nabbing the bargain hunters. Keeping prices low. The stores open in japan for more than he year fell into of the past three months, a 5 decline in december. Anna lets get the latest on the Market Action there. Good morning, juliette. If you look at this picture it looks mixed in asia. Thats what we have seen. The regional indexes tracking higher and holding on to the levels we have not seen since october last year, up for a fourth consecutive session. The regional index doing well today. Japan down by 1. 2 . The trump briefing starring a lot of risk aversion. Weighing into the nikkei 225 decision, down by 1. 2 percent. Elsewhere we have seen weakness in hong kong as well. The first drop the Hang Seng Indexes had in about six sessions in the broader index down as well for the first time in 11 sessions. Casino stocks coming under the most pressure. The australian and new zealand share markets have closed flat. Worth looking at the uptick in taiwan with a number of results coming through. Taiwan semiconductor coming quite a good boost for taiwan. The regional index Still Holding above water. Much therek you very from hong kong. Anna u. S. Director of National Intelligence said he told all caps that the leak of the classified report probably did not come from u. S. Spy agencies. James clapper said expressed his found this may on the claims appearing in the press. Manus comments came after trump mr. Had his first News Conference after winning the election. They looked at that nonsense that was released by maybe the intelligence agencies. Who knows. But maybe the intelligence agencies, which would be a tremendous blot on their record if they infected that. Because a thing like that should have never been written. It should never have been had and it should certainly have never been released. He also addressed his relationship with russia and the countrys president. Utin lifestyle trump, i consider that an asset, not a liability. Russia can help us fight isis, which number one is tricky. If you look, this administration created isis i leaving at the wrong time. Achieve currency strategist joins us here in the studio. And Stephanie Baker also with us this morning. Great to have both of you here with us on the program. Stephanie, he did not cover things that maybe simon and his , thingses wanted to see to do with fiscal stimulus and trade, but there was detail on russia and detail on his business interests. On the russian subject. This is not a story that is going to die and if he dismissed the dossier that was released and published by buzzfeed saying it was fake news and had a very Testy Exchange with a cnn reporter who tried to ask questions, since they have been one of the first news outlets to report on that. I think the interesting thing is that he managed to use that to deflect from the larger question of what is his policy going to be towards russia once he takes office. He finally accepted that russia was behind the hacking, but then flipped a few minutes later and said anyone couldve done it. His comments really contrasted with Rex Tillerson during his senate testimony, who took a much harder line on russia. Still did not manage to satisfy some of the senators like marco rubio the thought, dont you think russia is acting like a war criminal in syria . Of ifs raise questions they are on the same page. A remarkable comment by tillerson saying he had only spoken in general terms with donald trump about World Affairs and they had not really drill down. We are left wondering, where is russia policy going . How will they respond to the russian hacking . Manus the divergence between the propensity for tillerson to talk about policies and trump to say that is the shape of things to come. Of trade the qb terms with the dollar in the bond market. This had a real volatile impact in the markets. The drift continues lower this morning in terms of the dollar and perspective for the Day One Press conference . Next week, excuse me. Bothat was interesting was what was said and what was not said. Clearly what wasnt said, weve seen yields, and that has helped the dollar story lower. But there was a flip side. You mentioned clearly china and japan and mexico. Not once but twice. If you go back and look at what donald trump is had to say over the last 12 months or so, hes been very clear in his concerns about china, as a currency manipulator. Nation that gets an advance from what it does on the currency side. So you could say its been about trade and the advantages those nations get him and by the fact that he mention them several times, you could say hes been a target and he is promised to call china a currency manipulator. Maybe thats perhaps why we did yen anna the weaker reflecting the information. The other thing he mentioned was around his business interests. Thats what the press conference was supposed to be around in the first place. Is not divesting his ownership and is not using a blind trust, although there will be an independent ethics officer appointed. How much will this satisfy peoples concerns with the likes of people posting details on what he should or should not be doing in this situation . Far from some of the leading ethics experts, this is not going far enough to satisfy them. Really saying he needs to divest his holdings in anything short of that will not remove the issue, any possible interactions he has might be foreign partners trying to curry favor with him. Anna does it just smell wrong . If the rules dont say it, he might not do it. Henie hes think thinks hes going above and beyond what is required. For instance, one of the issues was is he in violation of the emoluments clause of the constitution which bars him from accepting foreign gifts are payments . What of the issues in relation to that is his hotel and foreign leaders booking himself in their has been question as to whether or not they are trying to curry favor with the president there. He said he will donate proceeds from that to the treasury as a way of going beyond that. How they will account for that is very unclear. There is no doubt that his business is very unique in terms of it is a branding and licensing business. As his lawyer said yesterday, he know that he owns trump tower and that these deals happen. They are tied to his name, so they are not easily disposed of. However, appointing and ethics advisor, how is that going to work . Who is going to pay for that . By just want to pick up on one of the things you mentioned, that the countries he specifically went after, a clergyman manipulator for china is one thing. One of the most immediate reactions, dollaryen is the highest since 2013. One expressive move of the pro the dollaryen. There is much more pressure on the currency. I absolutely agree. Even if you take my view with regard to currency, there is a little bit of an analogy to what with billironically, clinton in his first term there. If you remember in 1992, there was a rumor that he would target a currency integration. Inauguration, the mike benson comes out in mesa clear that the administration is going to target the lower dollaryen. Last administration to call china a currency manipulator. Maybe those numbers are a reflection of what could happen. Anna thank you so much for joining us, Stephanie Baker. Later we will speak to kellyanne conway, Senior Advisor to the president elect donald trump. That is at 12 25 u. K. Time. Anna and a hard brexit could be worse for europe than for britain, says mark carney. We break down his comments. Manus and a central bank slashes rates. The worst recession in the countrys history. Anna setting the tone after Donald Trumps press conference. We look ahead to what it could mean to u. S. Equities. This is bloomberg. London, to 6 22 in 22 in hong kong. 7 . Ang seng is down we are all meteorologists on bloomberg daybreak europe. Juliet can do the business flash for us. I think that is a polite way of saying it. Volume more than doubled the threemonth average. Its asias bestperforming stock this year of more than 280 after last years 90 plunge. Bloomberg data shows strong foreign interest with investors snapping up 217 million in shares since january 1. Consortium for Global Logistic properties, according to people with knowledge of the matter, the buyout firm has been speaking with banks and potential bidding partners about an offer for the singaporebased company that has a market value of 8. 5 billion. Assets in china, japan, the u. S. , and brazil and has asked for first round offers by early next month. Seeking vester backing for 13 billion offer, almost as much as its market value. Shareholders will be asked to into newhe conversion shares. This as the ceo attempts to turn around italys biggest bank after the stock dropped more than 45 last year. Thats your Bloomberg Business flash from hong kong. Thank you for clearing up the important meteorological details of the day. Lets get back to the central banking conversation. Mark carney has launched a new defense of the bank of england. Onon is still with us here bloomberg daybreak europe. Upgrades. T be which is great. This will affect the pound. My guess is probably not actually. If you look at todays performance, this is something manus has talked about. Over the course of the last 12 months, its reflected the other comments that mark carney made a couple of months ago on the reliance of the kindness of strangers. Manus the market disagrees with mark carney. He warned that brexit is a danger to the eu transition and agreed the consequences would be great. This,estion of the day is is theresa may a onewoman wrecking ball on the currency . She speaks and it drops like a stone. Given everything you know of history, is this building to a hard brexit . The reality is, looking at what is been said by theresa may so far, talking about where the red lines are. Suggest remaining in the single market. Then you have a waiting toward hard brexit and thats exactly what it is reflecting. If you want to look at the historical context, compare studies in the past 12 months to performance from november 1983 through 1985. That is what happened in. Some breaking news coming through on the Health Care Sector in the united states. Obama care repeal is a step , donald trump spent a lot of time yesterday talking about how hes going to set up plans about how they repeal obama care and replace it. He will get those moderate republicans to vote everything through. This is bloomberg. Wow, x1 has netflix . Hey, drop a beat. Show me orange is the new black wait, no, bloodline how about bojack, luke cage oh, dj tanner maybe show me lilyhammer stranger things, marseille, the fall in the same place as my basketball . Narcos, fearless, cooked the crown, marco polo, lost and found grace and frankie, hemlock grove, season one of. show me house of cards. Finally, you can now find all of netflix in the same place as all your other entertainment. On xfinity x1. Anything with a screen is a tv. Stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. You can even download from your x1 dvr and watch it offline. Only xfinity gives you more to stream to any screen. Download the xfinity tv app today. Anna welcome back, everybody. This is bloomberg daybreak europe. Its 3 30 in the afternoon in tokyo. The dollar weakness seen after the Trump Press Conference, the fiscal stimulus detail pointing toward some the comments that he is still making around trade. On the dollar,g it seems. 6 30 here in london. Lets look at some of the stories that have made it into this weeks edition. Manus volkswagen may have pleaded guilty in the emissions cheating in the u. S. , a story we brought to yesterday. It admitted to using false imports ofon vehicles and obstructing investigations. The prosecutors charged five sayinglkswagen employees they signed up for the script to duke regulators if questioned, delete documents and order disposal of hard drives. Anna next story is a fresh plea from the u. S. Finance ministry to avoid the need for preemptive angst on an interim agreement that delivers mutual market access, transitional arrangements to allow for enough time to implement the new relationship and access the talent. Manus and seeking investor backing for 13 billion euro rights issue, almost as much as the market value of the bank itself. Shareholders are meeting in rome today and will also vote on the conversion of every 10 shares after theew share stock lost almost half its value last year. Lets turn to the goal price because it is flirting with 1200 an ounce. Surged during his speech. We have the chart of the hour. Im on the edge of my seat. The story very interesting, and i love fascinating data, it tells the much larger story. Yearsrst quarter in three. The expectation of reflation, higher rates, stronger dollar, pressure on gold. With the election of donald trump, any political anxiety around the incoming administration, and some of the brexit news in the last few weeks. Love this chart on your bloomberg and get the extra context right here. What i have done is charted gold and 10 year treas