He says that president elect Donald Thrump will fail. President legend donald trump will fail. And an exclusive interview with toyota chairman at 11 45 london time. Day ome to bloombergs break europe. m anna. Eric good to see you, george soros punched everybody i think one at a time. Whats the lineup today . Eric this is the first year in my experience that the World Economic meeting has extended to a full fourth day. Moments from now well hear from the Vice President of the e. U. Commission. Te they are morning, joe jimenez, the c. E. O. Of the giant drugmaker novartis. Cannot ignore obamacare, it means a lot to drugmakers. Back to you. Ana amazing that donald trump is not there yet he has such a presence at this event. Conversations about him extend to all corners. A couple minutes past 6 00 here in london. Lets throw up the charts and see whats happening outside of the davos world as well. Janet yellen talking about it being prudent to gradually adjust policy over time. She said the fed is not behind the curve. A move in may priced around 50 now. Itll price in to the 50 . Thats from 42 . Theres a couple of different dynamics driving the market. Theres a twoway risk in the dollar again. Yellen says shes not behind the curve but when thuff the treasury secretary elect, steve mu knew chin, he said trumps comment is not longterm policy. We have the data from china. The three bing things big things driving the market, mnuchins comments. China grew by 8 in the Fourth Quarter, accelerated for the first time in the final quarter. Its now up. 7 . Anna this being Inauguration Day perhaps peoples attention will be elsewhere. The dow locked in a 1. 1 range since december, the tightest trading range ever on the day the 45th president will be inaugurate. We got the gold price there for you, up. 2 . Time for some first world news. Cherie ann is standing by. Good morning. Donald trump promised to unify america as he prepares to move into the white house. Speeng the eve of his inauguration in washington, the president elect vowed to carry ut his campaign pledges to strengthen americas borders and the military. Its a movement that started, its a Movement Like weve never seen anywhere in the world, they say. Theres never been a Movement Like this. Its something very, very special. Were going to unify our country. Our phrase you all know it, half of you are wearing the hat, make America Great again. George so ross called donald trump, quote, a con man, and he will fail because his ideas are contradictory and the new White House Team will fight with each other. Right now, uncertainty is at peak and certainly the enemy of ongterm investment. I dont think the markets will do very well. Right now, theyre still celebrating. When reality comes, it will prevail. U. S. Sec retare treasury nominee Steve Mnuchin said hes willing to label china a currency manipulator if warned. That despite donald trump softening his stance on that. Janet yellen has backed a strategy for gradually raising interest ratings in a speech at stanford university. She argued the bank habit been behind the curve but admitted it cant afford to let the economy run too hot. As trump is set to enter the white house, yellen said fiscal policy is one of the many uncertainties the fed has to deal with. The u. K. Prime minister offered her strongest support yet for the city of london as brexit moves closer. Theresa mays comments come as they prepare to move staff abroad after u. K. Leaves the e. U. I Value Financial Services in the city of london and i want to ensure we keep Financial Services in the city of london i believe Global Britain will do just that. You can find more stories on the bloomberg app. This is bloomberg. Anna, manus. Anna lets go back to davos. Eric is standing by. Ive got a feeling he might talk brexit. Eric we might get there. The European CommissionVice President and commissioner for euro and social dialogue in the e. U. , great to see you. Good morning. Eric thank you for the early start. Lets begin with Inauguration Day in the United States. Donald trump will become the 45th president of the things he has said and the thing he is has said hes going to do, what encourages you the most, what are you most concerned about . Well, europe and u. S. Has a longstanding Strategic Partnership which dates for many decades and we think its very important to continue in the spirit of this Strategic Partnership and this is our message also to the u. S. , we are willing to continue to work closely together. Eric is that something you feel optimistic about or something youre concerned about . I cant tell. I think today is a day of the inauguration so we must see what the real first steps of the new administration will be and then well be able to tell. Eric you have to worry, i would imagine, about the kind of interfering roll that mr. Trump may play in european affairs. Hes already been calling on european institutions asking which is going to be the next country to lead the e. U. After the u. K. . What do you do about that . Clearly that kind of statements are not helpful, especially in a sense that after the british referendum, 27 Member States, leaders of 7 Member States said very clearly that they see e. U. As indispensable for other e. U. Country, other 27 e. U. Country, so clearly theres intention to Work Together and to make e. U. A success. Eric there is a voter backlash, you might say , in a number of. U. Country, not just britain, over the position that the e. U. Has taken, particularly on growth and stability. And you have elections approaching this year in france, you have elections in germany. An election coming up in the netherlands. Should the e. U. In retrospect have been more flexible on growth and stability . As regards growth in e. U. , e. U. s economy is ready for a number of years back to growth, this year we expect 1. 6 growth,. s g. D. P. Is god levels, unemployment down to 2009 levels, what we need to do now first is really not to jeopardize this recovery, to continue with stimulating investment, with structural policies. With fiscal also we are put manager emphasis on growth so that people also feel all parts of society the benefits of this economic recovery. Eric weve heard a will the about that here at the World Economic forum, it sounds great and should be great but is it too little, too late . The financial crisis was almost a decade ago, hard to believe, but here we are eight almost 1 2 years later. Only now, only now are we talking about inclusive growth. Something is wrong with that. Well, clearly we have been dealing with financial and economic crisis overtaking this crisis but the consequences of this are still felt including the social consequences. We need to deal with those social consequences. It means both tax policy, shifting away tax burden from labor, special lowpaid labor, better targeted of targeting of social systems, making sure it addresses the most needy parts of society. Skills agenda which is important in terms of technological change. Dealing with youth unemployment. Youth guarantee we are providing in europe and a number of other things we can actually do and which were already doing. Eric in nearly, inclusive growth will blunt the sword of populism but lets talk about populism. Would you say populism is the greatest threat facing the integrity of the European Union . Well, we clearly see some kind of populist backlash. Its not limited to europe and and in a case we must see what the adequate response. Is in terms of economy, its first to continue with our policies to support economic recovery and second to deal social consequences to work toward inclues i world. These are two things we need to address the populist backlash. This is very much a conclusion which is felt also here in the World Economic forum. How do you engineer inclusive growth at a time when the European Central bank is still pursuing extraordinary monetary policies over the United States, theyre already beginning to raise Interest Rates. But the extraordinary Monetary Policy is what allowed people with capital to do so well in the years after the financial crisis. And in europe, those conditions are still present. As regards Monetary Policy, i must say that as European Commissioner, i must respect independence. Erik of course, of course. Im not talking about what you want the e. C. B. To do, its how to you create inclusive growth when theres still policies that exacerbate inequality . As regards low Interest Rate quantitative easing, among other things it also helps border wars, it helps in a sense Member States financing their budgets so theyre also side effects of this Monetary Policy which are actually stimulating the economy and with economic stimliss you also can better address social issues. Ric mr. Dombroski, such a pleasure, thank you. Hes Vice President of the European Commission. Manus that conversation, the challenge about inclusive growth, what does that mean 10 ears on, 8 1 2 years on. Chinas growth accelerated for the first time in two years for the final quarter of 2016. G. D. P. Increased 6. from a year earlier. Fouryear expangs of 6. was right in the official target range but the slowest since 1990678 Economic Stabilization s giving amid trade tensions. Toyotas chairman says he has full confidence in his companys prospects in america. Speaking exclusively to bloomberg, the comments came in the wake of criticism from president elect donald trump over the carmakers plans for a new plant in mexico. We were a bit surprised that our name was mentioned by mr. Trump. What hes trying to do is expand jobs and gain competitiveness of the u. S. Industries. We have many factories in the u. S. And weve been increasing the employment there so i believe our contribution in the u. S. Is quite significant. J. P. Morgans c. E. O. Has given them a 1 raise. Jamie diamond got an 8 million compensation package,. 7 more than a year earlier. They overtook wells fargo which stumbled because of a bogus Customer Account scandal. Thats youre Bloomberg Business flash. Anna a little breaking news on the brewing sector. Heineken saying they are in talks on a potential brazil deal with kirren who said around midnight u. K. Time that they have not decided anything on the sale of their brazilian operations but said its true they are in talks with heineken. Manus. That business in brazil is a loss making business. Is the riskn brazil theyre chasing. China is at the top of they have agenda, along with brexit and Inauguration Day. Those are the subjects that will dominate the conversation in davos where eric is stand big. Ic im here with inge beal, c. E. O. Of the Worlds Largest insurance market, lloyds. One thing ive picked up in my conversations, particularly with british bankers this week here in davos is there seems to be, or at least they seem to per see, somehow, brexit as less of a risk than they might have, say, even a few weeks ago. Has something changed . Its not really changed but they came but theresa may came out and gave more certainty not just to the u. K. But the whole world. For us it confirmed that staying member of a Single Market isnt a priority and is not going to happen. That means we have to go ahead with our contingency plans. It hasnt affected us that much, it was somewhat anticipated. For the insurers, we rely on being able to provide e. U. Business, passporting, were going to lose that licensing. So were going to be setting up a subsidiary somewhere else in the e. U. , a company that we had will remain in the e. U. , thats how well provide seamless coverage to our customers. Eric youve had conversations with heads of state here in davos about where that subsidiary is going to be. We have. Hopefully by the this quarter, well have chosen and then start working on it, it can take 12 to 18 months. Eric i can understand why you now, want to tell me right particularly if you havent decided, but are there ones you have ruled out . One we ruled out is malta. It looked like it would work for us but theres not enough, its not going to be the right location for lloyds. We write with such a Global Business that it felt that was wrong. Its more likely to be somewhere on the continent. Eric lloyds like other insurers have suffered from two factors. Low returns, terrible for your investment portfolio, and the pricing environment. How do those things lock now, particularly since weve seen an uptick in bond yield and a resurgence in risk asset prices. Whats been happen, because of the low yield, more and more capital want to invest, i think as the yield pick up, perhaps theyll find other attractive places to invest. Hopefully that will ease some of the pressure. The margins are being really squeezed. And at the moment, i mean, obviously were making estimates about the future profitability of underwriting. Were always saying, we think the claims will cost us x in the future and a big part of that is what were getting the price right. Right now it looks like margins are slim on the current year underwriting. Very slim. Eric Donald Trump Takes Office today. Hell be the 45th president of the United States. You do a lot of business in america. What do you think trump means for you . Jureblly usually insurance isnt high on a president s agenda. Eric in fact i havent heard him say one thing about insurers. But we do have a sort of special place in the u. S. Market, having been part of the sort of progression that the u. S. Has had over many, many, many years. Weve always been there and weve enjoyed a really healthy relationship with the u. S. Regulation for insurance tends to be at a state level. We dont imagine immediately theres going to be a major impact on insurance. Were usually low down on the priority list for any president. Obviously well keep a watchful eye. What were really interested is, if the economy starts to grow, businesses will perhaps want more insurance. It could be a great opportunity for lloyds. Eric thank you for spending time with me here at the World Economic forum. Safe trip back to london. Ats inga beale, c. E. O. Of lloyds, the world east largest insurance market. Anna thats eric in davos. Coming up today on bloomberg, well bring you special coverage of Donald Trumps inauguration as the 45th president of the United States of america. Thats at 3 00 p. M. U. K. Time. Manus were going to talk Trump Taking Office next on bloomberg. Manus its just gone 1 24 in the morning in washington, d. C. Where the world prepares for the inauguration of the president elect. His last tweet, keeping you up to date, thank you all for joining us at the Lincoln Memorial last night a very special evening. And of course lets make America Great. Hat was the slogan and what he reiterated again. Anna china, the second largest economy in the world, keeping an eye on this. Manus you get 6. 8 growth but what did you do to get that . 6. 7 for the whole year, the slowest growth since 1990, enviable for any other nation, but they got there via debt. They saw debt levels grow. The amount of loans in the economy grew by about 15 . Loan growth doubled the amount of growth. What does that come with . That comes with risk and that comes with the propensity for bubbles. If you look positively on the story you say, we have a year where growth has come through for the middle class and now the central bank can turn to neutral policy to try to deflate some of the debt bubbles. If youre a pessimist on china as george soros was and remains you wonder when this will all atch up with them. Manus trump said he would label this country a currency manipulator on tai one. Now hes stepped back. Theyre saying the conversation with china is still there. It doesnt sound like theyre going with currency manipulator on day one. Anna coming up, we bring you special coverage of Donald Trumps inauguration from 3 00 p. M. U. K. Time. Up next, we are going to be talking a little bit more about this in the United States. But also talk drug policies in the u. S. With the e. With the c. 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