Uncertainty with access to finance and some uncertainty over what the relationship will be with our trading partners. The chinese president steals the spotlight at the devils forum. Debatetsche bank ceo our at 730. This hour, were going his first interview of the day. A warm welcome to you here on our flagship morning show. To thes get straight World Economic forum. It is great to see you. Hope you are draft up and ready for the lineup. What do we have to come . This is the coldest one in memory. We will speak to the Asset Management ceo about what we heard from theresa may and where the Single Market puts a lot of of the bank and the Asset Managers. Have thelater, we Credit Suisse ceo and the back of opec cuts. Thank you very much. Francine will be back shortly. We have plenty to talk about. Where we areou with various Asset Classes and the lingering concerns about what we do or dont know about trump. You have movement in the cold there is a and burnish mint of credentials. 1200 and high point of you are seeing volatility at a twomonth low. Is the longest winning streak since june of last year. That is no doubt about it the trump and brexit risks are rising. We are waiting to hear from theresa may and we will get to the points of what brexit means later today. Thank you. The u. K. Is likely to pull out a new tradingwith relationship. This is a message that theresa may is expected to deliver for brexit. This will come as a blow for business groups through europe. Consumers that have been the backbone of the brexit vote face headwinds, according to the governor who spoke in london. Mark carney says that he expects consumption to slow in the week ahead. Consumptionlow and ends up going faster than income reasont is a highlevel why we see some slowing in spending this year in the this is the core forecast. The japanese Prime Minister has urged asian nations to join the Transpacific Partnership. This goes counter to the trump opposition to the plan. Achieving this as the foundation will help us go agreements. Ter japan would like to be the standard bearer for the free trade regime. Deutsche bank may withhold bonuses from bankers, according to the new york post, who cited people. The paper said that 10 are expected to receive a bonus and the payments may be spread out over the next five years. Powered by 2600 journalists and analysts in 120 countries. At can find more stories bloomberg. Thank you very much. Lets get back to where the action happens for the rest of the week with martin gilbert. Take it away. Thank you so much. This is the coldest it has ever been. You talk about global trade you need a little cold to tell the truth a bit more. Xi. Esa may and which will you be listening to . Both are important to global trade. This is important for us in the Financial Services and we have indication coming down. Totheresa may says she wants forgo the Single Market. What does this mean for Asset Managers . For us, it will be ok and it harder for European Fund managers with structures. It will be more difficult for banks. Will there be new funds . Our structure is fine and banks will have to give some thoughts on the structure they will have in the Single Market. You are a banking ceo and today and be a speech will you head to europe . Out wheree to work you are going and you have to plan for the worst and hope for who do you think wins . Think it will go with hsbc and they are ok with that. As long as they operate the branch model system, they will make a decision. You can trade throughout europe from there. About were talking mergers and acquisitions and the. Pproach to look at have you been approached . Not yet. No. Independence and we are probably looking to see if we can do some mergers and acquisitions. Why . For you asians, at the moment. There is a tough time for six or means thereand this needs to be some mergers in this business. Would you buy or lease something in europe . Thathave always said america is the holy grail for Asset Managers. Ands a place you need to be Asset Managers are looking to tie up. There are questions about the inauguration. One i will get to and we will see what the inauguration is really like and it is pretty exciting. Do think there will be a rally on the back of taxctations with this repatriation . They are talking about doing the right things and the banks moves tod run with the do what he has been trying to for the last six years. I think that emerging markets are not going to benefit from see and i think we could imports fromnd emerging markets. You say that you are looking for an asset manager. Are you concerned about the regulation and paying more for assets . Has nothingncy imminent on the acquisition front and i think that we need a out how we arek going to achieve that. You have to be there. You think a donald Trump Presidency can make the United States or America Great again . At think the rest of the world will follow and i think that he will get Interest Rates going back up in the United States and it will be good for the economy and the rest of the follow and there will ,e some protectionist measures but not as bad. Thank you. Are you flying directly to the inauguration . Yes. I will hand it right to you in the studio. Here the highlights of the schedule forh a the First Chinese leader to address the World Economic forum. Delivers a major speech and the u. S. Reopens after the Martin Luther king day break. Bloomberg brings you full coverage of the Economic Forum keenehour with tom hosting a panel on the future of finance at 7 30. Tomorrow, we bring you a discussion on the crisis of the middle class. Treasuryr u. S. Secretary will be here on television and radio. Up next, we speak to the ubs chairman for his first interview of the day. Stay with us here on bloomberg. Seng is up and money is going in and it is 6 17 in london. Lets get a Bloomberg Business flash. General motors plans to announce 1 billion in u. S. Plans over several years and adding a thousand jobs. They say that there is accelerated pressure from the president elect. Rollsroyce holdings has agreed to pay a hundred 7 million. Will settlene maker the charges and that our claims that the representative bribed foreign officials. The sanctions are the biggest effort issued against the u. K. There has been an agreement to buy Clayton Williams energy to the acreage position with the shale formation. The assets have been coveted acquisition targets with the proximity to properties and that is your Bloomberg News flash. Thank you. Francine. Go back to thank you. Welcomeery pleased to we have heard from theresa may and she said she wants the u. K. To leave the market and renegotiate from scratch. Wait for the details. I think that it has been clear that it is hard to renegotiate and we have seen this for many and it should be we have thend European Market before we were compliant and comparable to European Regulation and my view has always been that you have to start somewhere new and it is pretty clear that this would be the status quo and i think they can negotiate many things, but it is important to renegotiate with the rest of the world and the europeans are in a campaign towards the end of the year with parallels and focuses on foreign relations. These elections you are talking about, the timeline of negotiation would be longer. Do you try to speak to your employees . Different, ifs you operate business. What is important for banks casee option now at a, in we do not have the access to European Markets and we dont ,ave this in the same fashion so we need to establish and we have done that and we have u. K. S to the there is no sense in talking about this now and the city of theon is a feature of options,nd we will get but lets see the final agreement. Access as we have market , i think the pressure is not high and it is to create the options. Are there clear winners and losers . With all of these things, it is not good to start discussing the interim regime, but there will be new regulations over many years and i imagine a feature of this being an agreement on the relationship and the speed with which we will get there. They will change european and british laws. They area time where looking for light touch regulation with banks and it is a different playing field. My expectation is less and i doal regulation not think there will be parts of. Frank drawn back. The crisis showed that they need we would notand want to go back on things that were changed. Longterm,um and there is a lot of capital and the further capital is not the it is a bit like monetary policy. The u. S. Government is going to put in more fiscal and structural policy and rebalance the regulatory side. We will talk about your time are you looking at costsharing . At the moment, you cannot grow with the Interest Rates and you cannot influence the revenues. The banks are consolidating and optimizing with joint ventures in many areas and it provides certain products. With cost synergy, you can look at the Market Infrastructure and the shared infrastructure with joints and these are ventures by the banks and, if banksf trading is high, working together can get that. Consolidation . What is the solution . Homework andne our it could be active. So, the fact that the major banks have reduced their balance direction ands a we will go organically. Where . And assets wealth the europeand consolidation with business unsure. More on china and the macro economy. Thank you for that. Back at. Vos and we will focus on brexit and the expected speech. That is today. This is bloomberg. Welcome back. What do you think will be the overarching theme here . Means thatow if that Central Banks will have these policies. There is more on structural growth. Nothing has really been done. First and foremost, the government will do a reduction of tax rates and infrastructure. Fedwill see more and the always takes other policies into they will need less stimulus with the actions taken by government. Draghi wanted to stay away from the election and he said not to ask for additional work and that it is up to government with europe facing deep political problems for all the elections that will happen with a tds of several elections to get to government. Politics is going to dominate for most of the year. Predict political outcomes and markets are not , so at predict and these politics was will be at the forefront of the economy. Thef you go diversion with federal reserve, does it mean dollar strikes . I dont think it means the meanand i think it would the economy would crumble and withorld is more coupled rate hikes this year and it will have an impact. The dollar will continue to it will depend on more tradey and impact andh a big the ultimate producer, which is china. We will see some problems. Chances thathe there is a big trade war between the United States and china . Difficulties with the Chinese People and they will willabout the agenda and start to work with asian and the chinese and wes in many areas and that hasoblems always been the case. The chinese president shows up for business. I have been in china and the first message is that the chinese are confident and their integratencrease in a Financial Center more and the and if they develop bond connection and china is deepening the markets. How do you stabilize . Fear that the Exchange Rate may have them lose confidence and they need part of market, so financial the markets have corrected and china is looking for stability in the markets and they have the tools to achieve it. They can use monetary and fiscal policy to get this going. On these the momentum nondomestic side and it depends and, in the end, most of what we will see is further integration in the free tode sound and asia is going become more dynamic. Was huge populist uprisings. Downgrade andt this came out yesterday. Optimistic about this year. Gloomy and mood is a problem in the he finds a more Dynamic Market with the there are rates and few things that get the economy from strength to strength. Areas of escalation it is an antiglobalization and that starts from scratch. I dont think it is true. People want cheap Consumer Products and electronics and to have tv producers and it is just the opposite of that. We have to accept globalization and it is to everyones benefit. This is going to impact negatively on the economy. Is a chance here and there will be more chances going ahead and we should not push ourselves and we should manage the risk. Is the riskou think coming out of the presidency . Many of these things will be implemented. Look at us at ubs and we have Market Access and we are on the and we can move capital within the group with europe, asia, and the business and this would be to the detriment of everyone. The chairman of ubs will have great interviews throughout the day. , we will have the ceo of dp. Thank you. Stability and the chinese say they do not want that. Hearing about the subject of globalization and the case for globalization needs to be articulated better in the context of what donald trump means for global trade. Coming up, a relatively calm market. We will head back in here nsa on the first interview of the day. Ahead of the speech in the eu. This is bloomberg. Welcome back. And guess what is making the front pages this morning . A 12 point plan and she ins she has no interest anything that leads us halfway in or halfway out. Person familiar said that she will expect britain to leave a Single Market and the links with the customs union. The next is the u. S. , the u. K. And brazil. Is size of the penalty according to agency partners. They said the cash performance was better than expected. We have been hearing from the chairman of ubs, who talked about what the president wanted question isnd the fillingthey will go in the cap left on the world stage. General motors plans to in plans andillion that is according to people familiar with the matter. They say that the investment is things approved before trump won the election. Agreed to pays 807 million into bribery will look at the the penalty of 500 Million Pounds is the biggest sanction ever issued against a company in the united kingdom. Noble energy has agreed to expand and the deal will create andsecond largest physician this had been a coveted acquisition. There is high oil content. That is the Bloomberg Business . To be clear, we were talking about rollsroyce earlier and 807 milliono pay into the allegations with the pride of a foreign officials. It is not clear which rollsroyce company theyre talking about now. The recentlk about may speech. Around theture the dollarrisk with downnd gold and it goes and it has started to reverse. This gives a sense of what is going on and it is a tight weeksl for the last six and it will be interesting to and it will beal an interesting trade towards what is goingnd on is clear and there is the iron ore market. The data withat the iron ore right now is quite high. Me and this one to is the incredible burst to the outside with the market well supplied. Something is going on and nobody can really explain it. People on the supply side thought. It will come back down. Maybe not in this one. It is a relatively calm market and it has dug a little bit deeper with volatility. Events and thek inauguration of donald trump with nothing to write home about. What is worth writing home about and itsixmonth timeline a u. S. Break and these lines have not correlated. The question now becomes where and, if you take a firminghow holdings are and before i let you go, the looking at median expectations and the Second Quarter of this year. Of course, will have everything you need to know. , we could be heading for the brexit with gold, the yen, and the bond market. Irony lost. Rallied and has there are shifts. I do like what we saw yesterday and we have an small amounts. Absolutely. This hasoticed is that made clear that immigration is a priority and there will be a hard brexit. Andle ask if this is new the Economic Data is holding. Headline andhis people ask what has changed. See and,interesting to here, thef the talk market has anticipated this. There is a lot of time to adjust with immigration as a hard line and it has been clear that this has been sacrificed and the headlines are just a ago of what we saw one week traders may not get any details and there will and it willt plan ultimately be a good thing. Courthave the supreme sets to come through and it ruling that goes against government. Andle are upset by trump the rest of the brexit speech today with asian equities off here. Definitely. We are approaching the Trump Inauguration and, especially after the press conference last any, trump did not outline concrete plans for stimulus and they bet this would deliver. He could deliver slower than expected. Andprice and the positivity trading andllar yen the ftse 100 with the basis back 20nd they can pull basis points. We have comments coming andugh with the chairman viewers talking about the subject of brexit. Highlighting what could be a gain from both sides in the stick negotiation. Will count as new news for markets around this conversation . If they say they are prepared not the market, is this qualifying as news . I think this is mostly priced in. This will not run for a couple of days. I think that th